Demand Driven MRP

An innovative method of materials planning and execution, activated only by confirmed customer orders

Assessment – Proof of Value
Proof of Concept + Pilot
Adoption

REQUEST FOR ASSESSMENT OF YOUR COMPANY

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.

DDMRP Simulation

Evaluate the results that you would obtain in terms of service level and inventory turnover operating your supply chain under Demand Driven MRP to know the benefits of this alternative.

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
- Variability
- 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

Replenishment + ® is an inventory and materials management software designed to enable a pull system based on real demand, using the Demand Driven MRP methodology. This is the first software in the world fully compatible with DDMRP.

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.

Deepak Nagar (DDPP – Endorsed Instructor)

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.