What is DDMRP?
DDMRP is an innovative method for multi-echelon Supply Chain Planning & Execution. DDMRP integrates the best of MRP, DRP, Lean, 6 Sigma and the Theory of Constraints, outperforming formal planning methods (MRP or Lean based).
In the book Orlicky's Material Requirements Planning, George Plossl states the first law of manufacturing:
”All benefits will be directly related to the speed of flow of information and materials.” Plossl’s law is of course still valid, but with a small caveat: the flow of information and materials must be relevant.
DDMRP is built on the principle that performing supply chains are driven by the flow of relevant information and true demand signals.
DDMRP enhances the resilience of the supply chain by preventing the volatility to be passed up and down through the supply chain, and it achieves it by applying a very pragmatic and strategic approach to inventories:
Position: where does it make strategically sense to have inventory?
Protect: how do we protect these positions to prevent volatility to be passed up and down?
Pull: how do we manage the supply order generation to ensure it responds to real market demand?
DDMRP copes global supply chain network complexity, increasing responsiveness to true demand signals, by decoupling the supply order generation process from inherently wrong forecasts.
Furthermore, as perfectly described in Patrick Rigoni article, DDMRP is a necessary condition for Industry 4.0 to deliver on its promise.