IDEAscope #1
Why is IDEA interested in DDMRP?
DDMRP IN BRIEFS
DDMRP, Demand Driven Material Resource Planning, is a method popularised by the work of Carol Ptak and Chad Smith, “Orlicky Material Requirement Planning” and deployed under the authority of the Demand Driven Institute.
This method concerns the planning and execution of flows based on actual consumption (demand). This approach has the great merit of bringing innovation to a field that has been based on the same fundamentals for 50 years.
The principle is simple and aims to reconcile two ways of conceiving of one’s logistics:
- The MRP approach, a so-called classic approach which, on the basis of production forecasts, aims to manage its stocks, based on MRP calculations,
- Just-in-time, which aims to manage upstream capacities to meet actual downstream consumption, based on LEAN principles.
The first depends on the accuracy of the forecasts, the second on the stability of the production of standard products.
How can we deal with a sector where forecasts are imprecise, the nomenclature is constantly changing and production is unstable?
DDMRP aims to free itself from forecast accuracy and to provide a self-regulating mechanism for buffers. The precise location of this buffer is a key step, it aims to protect from the effects of different types of variability and unforeseen events (which can be called nervousness). DDMRP, organised around these visually managed buffer(s), then serves the proper execution of production flows in a nervous environment.
WHY IS IDEA INTERESTED IN DDMRP?
An intuition: understand to better support
IDEA, in its missions, operates at different levels: from pure execution, through management, to the complete design of logistics flows. Mastering the principles of DDMRP for our teams is therefore essential if we want to support customers who are involved or will wish to be involved in the DDMRP process.
A reference: thinking with a partner to go furtherThe AGILEA agency is a leading player in the field of DDMRP. As the bearer of a complete training offer, AGILEA also has feedback on concrete achievements. In addition, its applied research activity is ambitious, particularly in the field of simulation and modelling, which is the focus of IDEA's innovation roadmap.
A state of mind: jointly building the solutions of the futureWith its customers and expert partners, IDEA co-builds the supply-chain solutions of tomorrow. DDMRP should enable us to better understand the efficiency issues in the value flow of our customers, regardless of our level of intervention. Solutions and applications have yet to be devised together and, as such, DDMRP is identified as one of the key areas of innovation by IDEA.
THE NEXT STEP: DISCOVER DDMRP THROUGH PLAY
Let us identify together the potentialities of this approach in the territory of Nantes/Saint-Nazaire through a DDMRP day, led jointly with AGILEA and organised on one of IDEA’s Nantes-area sites.
This day will be organised around a general presentation, a testimony, a "serious game" sequence and a debriefing.
Meet us Tuesday 25 September in Nantes, by invitation only limited to the number of places available.
Feel free to contact us if you are interested in the subject or if you have any feedback in the field!
