The All-in-One Demand Driven Material Requirements Planning Page
what is ddmrp?
Demand Driven Material Requirements Planning is a formal multi-echelon planning and execution method to protect and promote the flow of relevant information through the establishment and management of strategically placed decoupling point stock buffers. DDMRP combines some of the still relevant aspects of Material Requirements Planning (MRP) and Distribution Requirements Planning (DRP) with the pull and visibility emphases found in Lean and the Theory of Constraints and the variability reduction emphasis of Six Sigma. These elements are successfully blended through key points of innovation in the DDMRP method. DDMRP is the supply order generation and management engine of a Demand Driven Operating Model (DDOM). DDMRP can best be summarized as...
Position, Protect and Pull
WHAT ARE COMPANIES SAYING?
AN ANIMATED VIEW OF DDMRP
A BRIEF INTRODUCTION TO DDMRP
AN IN-DEPTH INTRODUCTION TO DDMRP
What are people saying about DDMRP?
Demand Driven Material Requirements Planning (DDMRP) is NOT a silver bullet. DDMRP is based on sound flow-based principles to provide planning and execution performance improvements in variable environments where customer tolerance times are dramatically shorter than cumulative lead times (a situation that is very common today). It is really that simple. DDMRP is a methodology that gives people a step by step blueprint that is transparent, easy to interpret, intuitive, consistent, and sustainable.
Our article "DDMRP - Built for People not Perfection" discusses each of these important characteristics one by one. Take me to the article on LinkedIn
the FIVE COMPONENTS of ddmrp
Demand Driven Material Requirements Planning has five sequential components. This figure illustrates these components, their sequence and how they relate to the mantra, “position, protect and pull.” The first three components essentially define the initial and evolving configuration of a demand driven material requirements planning model. The final two elements define the day-to-day operation of the method. DDMRP is most common the start of an organization's transformation to a Demand Driven Adaptive Enterprise.
Strategic Inventory Positioning
Strategic Inventory Positioning will determine where the decoupling points are placed.
Buffer Profiles and Levels
Buffer Profiles and Levels will determine the amount of protection at those decoupling points.
Dynamic Adjustments define how that level of protection flexes up or down based on operating parameters, market changes and/or planned or known future events.
Demand Driven Planning
Demand Driven Planning is the process by which supply orders (purchase orders, manufacturing orders and stock transfer orders) are generated
Visible and Collaborative Execution
Visible and Collaborative Execution is the process by which a DDMRP system manages open supply orders.
The INNOVATIONS OF DDMRP
Planning personnel are understandably skeptical at first. As they should be. They have been burned over and over again by new planning “solutions”. The number one question we get is, “What is so different and unique about DDMRP?”
The DDMRP Innovation Series comes in four parts and details the four big innovations that allow DDMRP to be so special.
WHY IS IT CALLED DDMRP?
Many people initially scoff at the name “Demand Driven Material Requirements Planning” and claim it is just clever branding or “MRP III”.
So, is DDMRP just a marketing gimmick? No, the name is technically descriptive and accurate. We explain exactly why in this article.
Typical ddmrp results AND CASE STUDIES
Demand Driven Material Requirements Planning is a proven method across a wide array of industries. It is quickly being adopted by a wide variety of leading companies across the world. It is intuitive, pragmatic and transparent. It is nothing short of a revolution in supply chain planning.
Visit the Case Study page to see results from many companies across a wide array of industries.
GETTING STARTED WITH DDMRP
Getting started with DDMRP is relatively easy. It is the natural starting point for a company's transition into a Demand Driven Adaptive Enterprise (moving from Stage 1 to Stage 2 on the DDAE Development Path). Below are few simple suggestions.
Get the Book!
Released in July 2016, Demand Driven Material Requirements Planning is THE authoritative work on the DDMRP method. Version 2 was released in 2018.
The Demand Driven Planner Program is a must for anyone responsible for starting, sustaining and improving a DDMRP implementation.
If you have questions about getting started with DDMRP we are happy to answer questions!
Using an innovative multi-echelon Position, Protect, and Pull methodology, DDMRP helps plan and manage inventories and materials in today s more complex supply scenarios, with attention being paid to ownership, the market, engineering, sales, and the supply base. This method enables a company to decouple forecast error from supply order generation and build in line to actual market requirements, and promotes better and quicker decisions and actions at the planning and execution level. DDMRP is already in use by MAJOR Global 1000 companies. Demand Driven Material Requirements Planning is THE definitive work on DDMRP, and will be required as courseware for all those taking the Demand Driven Planner (DDP) Program.
New in Version 2
•New & Revised Graphics
•A New Chapter 13 Introducing the Demand Driven Adaptive Enterprise (DDAE) Model
•A New Appendix E
Thinking about replenishment with SAP S/4HANA or SAP ERP? In this E-Bite, you’ll discover how demand-driven replenishment (DDR) changes the game! All the classic MRP elements are present—classifications, stock positioning, lead time, and buffers—see how SAP S/4HANA recalculates these elements using DDR to reduce demand-supply variability. With information on planned innovations for DDR, you’ll get that competitive edge.
What if there was one fatal flaw in MRP that makes it completely incapable of conveying relevant information? What if correcting this one fatal flaw allowed the promise of MRP to be attained? Precisely Wrong: Why Conventional Planning Systems Fail will reveal this fatal flaw and trace its impact to everyday situations encountered by planners and buyers. Additionally, an elegant solution to overcome this flaw will be discovered. Readers will walk away with a new depth of understanding about conventional planning systems and a list of things they can begin to implement the very next day.
Demand-Driven Supply Chain Management is the go-to source for industry supply chain/operations executives and students. It describes, in a readable but rigorous manner, the 'what, how and why' of the demand-driven SCM process. The key themes in the book are: what is demand-driven? why is demand-driven so effective? how to operate a demand-driven supply chain? and how to adopt the demand-driven process in your company? The book has been written in such a way that it doesn't require reading from cover to cover. Readers can quickly grasp the essential concepts from one of numerous self-contained sections that present the book's key concepts from different perspectives.
DDMRP COMPLIANT SOFTWARE
The DDMRP compliance criteria by the Demand Driven Institute is intended to ensure that a software has enough features and/or functions to implement, sustain and even improve a DDMRP implementation. See the growing list of compliant software on DDMRP Software Compliance page.
THE HISTORY OF DDMRP
While much has been written about Demand Driven Material Requirements Planning (DDMRP) since its release to the public in Orlicky’s Material Requirements Planning 3rd edition in 2011, very little has been written about the story and team behind it. In this series Chad Smith, co-founder of the Demand Driven Institute chronicles the experiences and environments which led to the body of knowledge that we see today in DDMRP.
Part 4: DDMRP Takes Shape (Coming Soon)
Part 5: Articulation and Refinement (Coming Soon)