Position, protecT, pull & aDAPT

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Demand driven Strategy related articles

 

Precisely Wrong Number Versus Approximately Right Ranges

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By Chad Smith,

 

The Demand Driven Adaptive Enterprise (DDAE) Model solves a huge problem for modern supply chains by creating the missing link between an effective S&OP process and a realistic translation of its output to the operating model.

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The Demand Driven Adaptive Enterprise

By Chad Smith, Carol Ptak and Dick Ling

 

The Demand Driven Adaptive Enterprise (DDAE) Model spans the operational, tactical and strategic ranges of an organization allowing it to continuously and successfully adapt to the complex and volatile supply chains we see today.  It combines the fundamental principles of flow management with the emerging new science of complex adaptive systems (CAS).  It is the way that successful businesses will work in the 21st Century.  

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The Cost of Trying to Control Cost

By Debra Smith and Chad Smith

 

The Boeing Dreamliner is a perfect example of how outdated assumptions and inappropriate metrics can lead to strategies with disastrous bottom line implications.   Excerpted from the book Demand Driven Performance – Using Smart Metrics (Smith and Smith, McGraw-Hill, 2013) this case provides three key lessons that businesses should pay attention to in today’s complex and volatile circumstances.

You Can Do This - A CEO's Perspective

By Dan Eckermann

 

From the Foreword of Demand Driven Performance – Using Smart Metrics, Dan Eckermann explains how the Demand Driven methods helped turn around an American manufacturing icon.  As President and CEO of LeTourneau Technologies, Inc. (LTI) Dan guided the implementation of these tactics across one of the most complicated and volatile environments in manufacturing and supply chain.

Demand Driven Answers for Accountants

By Debra Smith and Chad Smith

 

Debra Smith and Chad Smith, the authors of Demand Driven Performance – Using Smart Metrics answer questions from Certified Management Accountants (CMAs) about the concepts in their new book and the implications for industry in general and Finance and Accounting organizations specifically.

The New Adaptive Enterprise

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By Alfonso Bustamente

The critical aspects driving the need to look at organizations differently are explored in this paper providing the foundation and justification for the Demand Driven Adaptive Enterprise model.

Demand Driven operations Related articles

 

Simulating DDMRP Results

Looking for a Best Practice in Food Distribution

By Sebastián González

This paper describes the simulated performance in a Colombian food distribution company of various inventory management models against a current forecast push method. Alternate methods include (Q, R) Model - EOQ, (R, S) Model, TOC and DDMRP.

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The Power of Decoupling

By Chad Smith

See an in-depth diagnosis behind the need for flow and the disastrous compromises conventional MPS-MRP systems force planning personnel into every day.  Unlock the critical but elusive secret to immediate and dramatically better supply chain performance.

The Reign of Flow: A New Path

By Carol Ptak and Alfonso Navarro Bustamente

Explore the key failing components of the MPS-MRP conventional approaches in protecting and promoting flow.

Just How Mean Can an Average Be? 

A Visual Inquiry On Queue Dynamics And Lead Times in Supply Chains

By Alfredo Angrisani

 

Correct sizing of lead times is always crucial as you deal with just any part of a supply chain, but setting them as single, fixed, numbers can be wildly misleading as variability comes in- even at small doses. The presentation uses a simulator to demonstrate the devastating effects of variability when combined with resource saturation and points to robust ways to definitively solve this issue.

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Demand Driven Symbols Download Pack

We have put together a PowerPoint file that contains many of the symbols and formats we used in the book to create demand driven designs.  Now your designs can look just like ours!  The file is an unsecured PowerPoint file.  We are placing these symbols and format in the public domain to support the Demand Driven Community.

Lean Finds a Friend in DDMRP

By Carol Ptak and Chad Smith

 

MRP advocates and Lean advocates have been at odds for years.  Is it as simple as push versus pull?  What if they both have a common objective but are locked in a chronic conflict that obscures and distorts their ability to see it?  See how DDMRP provides the bridge that ends the chronic conflict and secures the common objective - FLOW.

Setting DDMRP Buffers for Discontinuous Demand

By Dr. Patrick Rigoni

In many industries, sales for a product do not happen daily. This is often the case when the customer is not the final consumer of the goods. Even high volume products are sold and shipped intermittently when the customer is a wholesaler or distributor. The resulting sales pattern is then discontinuous.

S&OP Versus Pull Based Models: A Chronic Conflict?

By Carol Ptak and Alfonso Navarro Bustamente

Bridge the gap between Sales and Operations Planning and pull based methods with DDMRP.

The REAL Story Behind the Bullwhip

By Chad Smith

Most people that deal with material requirements planning (MRP) systems on a daily basis know that something is and has been VERY wrong for many years.  But do we really understand what the real issue is and just how devastating the problem becomes for supply chain management in general?

recommended Articles

The DDMRP Innovation Series

by Chad Smith

 

This is a four part series breaking down the key innovations that make DDMRP a real game changer.

Part #1: Decoupled Lead Time

Part #2: The Net Flow Equation

Part #3: Decoupled Explosion

Part #4: Relative Priority

 

The Biology of Corporate Survival

by Martin Reeves, Simon Levin and Daichi Ueda

 

This article appeared in the January-February 2016 issue of the Harvard Business Review Magazine.  This article does an excellent job of explaining the rise in business failure rates and the emerging science of complex adaptive systems as it applies to companies.

Manufacturing Excellence without Forecast-Driven MRP

by Martin Alexander

 

Martin Alexander, Business Improvement Engineer explains how Stannah Stairlifts has used DDMRP to take their supply chain to the next level.  Pages 44-45 of the article "Manufacturing Excellence without Forecast-Driven MRP" in Logistics and Transport Focus Magazine.

What's Wrong with Supply Chain Metrics?

by Debra Smith and Chad Smith

 

This is the first article in a three part series appearing in the Institute of Management Accountants' Strategic Finance Magazine October 2013 edition.  The article deals with the problematic assumptions behind rules that hurting most companies in today's more volatile and complex environments.

Becoming Demand Driven

by Debra Smith and Chad Smith

 

This is the second article in a three part series appearing in the Institute of Management Accountants' Strategic Finance Magazine November 2013 edition. The article deals with the introduction of the Demand Driven Operating Model.

Staying Demand Driven

by Debra Smith and Chad Smith

 

This is the third article in a three part series appearing in the Institute of Management Accountants' Strategic Finance Magazine December 2013 edition. The article deals with the introduction of Smart Metrics to ensure the ability to sustain and improvement the Demand Driven Operating Model.