TOCICO

Demand driven MRP & sales and operations planning is discussed. The demand driven adaptive enterprise (DDAE) model incorporates four prerequisites for relevant information: 1) It has three relevant and linked ranges – the operational, tactical and strategic; 2) It features a flow-based operating model called the Demand Driven Operating Model (DDOM); 3) It has tactical reconciliation with the Demand Driven S&OP process; and 4) It has a suite of flow-based metrics that cuts across and connects all three relevant ranges. DDOM works in make-to-availability, make-to-order, engineer-to-order, and assemble-to-order and combination environments. The demand-driven models link operations to tactical plans to strategic plans. Tactical planning has always been the missing link in the planning horizon. DDOM bridges between operations and strategic planning. Linking strategy to operations at the organization’s control points is essential as it measures from what you plan to what you can actually do to what was actually done. One is looking for reliability, stability and velocity in the plant across three relevant ranges: planning, scheduling and execution. Adapting the demand driven operating model (DD S&OP) includes: demand driven materials and supply chain planning & execution; demand driven resource scheduling; demand driven finance & smart metrics; demand driven S&OP; and strategic thinking processes & demand driven operating models. DDOM ends the forecast distortion; the cost/flow conflict, and aligns strategy (planning), tactics (scheduling) and execution to link system flow to market demand. The end result is ROI maximization. Stemcell case study is provided to illustrate the significant and rapid organization results plus the impact of falling back into the cost-world thinking. Video length: . PDF: slides.