THE DEMAND DRIVEN OPERATING MODEL (DDOM)
A Demand Driven Operating Model (DDOM) is a supply order generation, operational scheduling and execution model utilizing actual demand in combination with strategic decoupling and control points and stock, time and capacity buffers in order to create a predictable and agile system that promotes and protects the flow of relevant information and materials within the operational relevant range (hourly, daily and weekly). A DDOM’s key parameters are set through the Demand Driven Sales & Operations Planning (DDS&OP) process to meet the stated business and market objectives while minimizing working capital and expedite-related expenses.
The Demand Driven Operating Model is the flow-based operating model used by a Demand Driven Adaptive Enterprise. The DDOM is designed around four basic elements.
Paces to Actual Demand
The Demand Driven Operating Model uses only actual demand for supply order generation. There are no planned orders and no Master Production Schedule!
Strategic Control Points
The Demand Driven Operating Model uses strategically placed control points for scheduling and resource and order synchronization.
Strategic Decoupling Points
The Demand Driven Operating Model uses strategically placed decoupling points to compress lead times, shorten planning horizons and dampen demand and supply variability.
Dynamic Buffering
The Demand Driven Operating Model protects its decoupling and control points through dynamic stock, time and capacity buffers
Carol Ptak and Chad Smith of the Demand Driven Institute walk through the three components of a Demand Driven Operating Model - Demand Driven Material Requirements Planning, Demand Driven Scheduling and Demand Driven Execution.
The Demand Driven Operating Model has three basic components that work in concert. Demand Driven MRP (DDMRP) provides supply order generation and management signals. Demand Driven Capacity Scheduling provides resource scheduling synchronization. Demand Driven Execution is about real-time order and buffer management.
DDOM EDUCATION OFFERINGS
DDI offers several educational programs that deal with the DDOM. Starting with introductory level offerings and progressing to advanced technical offerings for practitioners and managers.
DDI Co-Branded Simulations and Workshops
For all levels.
For Planners, Buyers, Schedulers, Planning and Purchasing Managers.
For Planners, Buyers, and Managers in a distribution entity.
For Schedulers and manufacturing management.
For management level individuals in Operations, Engineering, and Finance.