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.
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 at the start of an organization’s transformation to a Demand Driven Adaptive Enterprise.
- Get a perspective of how DDMRP buffers support various demand patterns over time
- Enable ‘what if’ analysis of the impact of various buffer parameters
- Lead time
- Minimum Order Quantity
- Buffer Zone Adjustments
- Planned Adjustment Factor
Analysis of multi-level environments
- Various end products pulling against shared intermediate and purchased parts
- Distribution networks with forwarding locations, DCs, and central buffer
Companies that implement Replenishment + ® see huge leaps in return on invested capital (ROI) through 4 aspects:
- Increased service levels
- Increased sales
- The total reduction of inventories
- Cost reductions associated with supply chain management
The Demand Driven Planner (DDP)™
The Demand Driven Planner (DDP)™ Program is designed for planning, purchasing, and supply chain personnel responsible for implementing and maintaining a DDMRP implementation. Designed by the leading authorities on DDMRP at the Demand Driven Institute, the Demand Driven Planner program is comprised of 13 modules of in-depth DDMRP education. The DDP Program is THE official preparatory course for the Demand Driven Planner Professional (DDPP)™ certification exam.
Note: Each participant of the DDP will receive a certificate of completion from the Demand Driven Institute.
- Co-Founder, Yagna Entrepreneur Success Services LLP.
- Practitioner – TOC, DDMRP, Simplicity
- 29 Years of Industry Experience
- Facilitated TOC adoption since 2009 in a wide variety of environments (Godrej & Boyce, Forbes Engineering, Kirloskar Brothers, Ashok Piramal Group, Wipro Lighting, Kohli Industries, Bullows Paint Equipments, SMI Coated Products)
- Implemented DDMRP using Excel
- PGDM (IIM, Bangalore), BE – Mechanical (MNIT, Jaipur)
- Works out of Pune, India.
request for assessment
Though Yagna strongly believes that every company has the potential to earn much more throughput from the existing investment but still it necessarily insists on conducting assessments before embarking on the TOC Implementation journey.
It not only creates a buy-in on the problems and the direction of the solution but also confirms that there is a good enough business case for both the parties to move to the next step of Adoption.