Demand Driven Material Requirements Planning

In the 1950s, a method called Material Requirements Planning (or “MRP”) changed the world of manufacturing forever. But times have changed—customer tolerance times are shorter, product variety and complexity has increased, and supply chains have spread around the world. MRP is dramatically failing in this “New Normal.” Demand Driven Material Requirements Planning (DDMRP), Version 2 presents a practical, proven, and emerging method for supply chain planning and execution that effectively brings the 1950s concept into the modern era. The foundation of DDMRP is based upon the connection between the creation, protection, and acceleration of the flow of relevant materials and information to drive returns on asset performance in the New Normal. Using an innovative multi-echelon “Position, Protect and Pull” approach, 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. It 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. This book is THE definitive work on DDMRP, and will be required as courseware for all those taking the Certified Demand Driven Planner (CDDP) Program.