Components and Benefits of Demand Driven Materials Requirements Planning (DDMRP)

Demand driven materials requirements planning (DDMRP) is a planning and execution method that protects and promotes how relevant information flows throughout the establishment. DDMRP utilizes some of the most important aspects of materials requirements planning and distribution requirements planning with also some aspects of lean manufacturing and Theory of Constraints being applied as well. With these elements being conducted together, DDMRP can effectively boost and increase efficiency within a manufacturing operation. With demand driven materials requirements planning (DDMRP), there are various components and benefits associated with the planning and execution method.

Components and Benefits of Demand Driven Materials Requirements Planning (DDMRP) 

Components of demand driven materials requirements planning (DDMRP):

• Strategic Inventory Planning - Strategic inventory planning pertains mainly toward where decoupling points are placed.
• Buffer Profiles - Buffer profiles and levels determines how much protection is needed at certain decoupling points.
• Adjustments - This component defines the level of protection needed based on operating parameters, market changes, or planned events for the future.
• Demand Driven Planning - This is the process in which supply orders, purchase orders, manufacturing orders, and stock transfer orders are generated for production.
• Collaborative Execution - The components takes care of the process in which a DDMRP system can properly manage supply orders.

Some of the benefits associated with DDMRP include the following:

• Improved Customer Service - With DDMRP, you can expect to achieve a much higher percentage in terms of customer service and on time fill rate performance.
• Correct-Size Inventory - Minimize your inventory through drastic reductions while also improving overall customer service.
• Lowering Overall Cost - Lowering cost related to expedite activity and false signaling. These include partial ship, cross-ships, schedule break ins, and more.

Another form of gaining thorough insight within your manufacturing operation is advanced planning and scheduling software. This software has become a top choice for manufacturing operations around the globe.

Advanced Planning & Scheduling Software 

Advanced Planning and Scheduling (APS) software has become a must for modern-day manufacturing operations due to customer demand for increased product mix and fast delivery combined with downward cost pressures. APS can be quickly integrated with a ERP/MRP software to fill gaps where these system lack planning and scheduling flexibility and accuracy. Advanced Planning and Scheduling (APS) helps planners save time while providing greater agility in updating ever-changing priorities, production schedules, and inventory plans.

• Create optimized schedules balancing production efficiency and delivery performance
• Maximize output on bottleneck resources to increase revenue
• Synchronize supply with demand to reduce inventories
• Provide company-wide visibility to capacity
• Enable scenario data-driven decision making

Implementation of Advanced Planning and Scheduling (APS) software will take your manufacturing operations to the next level of production efficiency, taking advantage of the operational data you already have in your ERP.