Reported DDMRP implementation results across a wide range of industries, either in make to order (MTO), make to stock (MTS) or mixed strategies (MTO/MTS), can be summarized as follows:
10 to 50% service level improvement, without increasing the overall working capital
30 to 60% inventory reduction, including work in progress, without negative impact on service levels
20 to 80% overall lead time reduction
Companies that implemented DDMRP report as well the following positive impacts:
Reduction of last minute changes to the production schedule, and reduction of the overall variability in operations
Reduction of minimum order quantities and production lot sizes
Empowerment of shop floor operators and higher motivation in planning teams
DDMRP methodology helps to protect operational execution from inherently wrong forecasts: all the above reported results were achieved without increasing forecast accuracy.
If your are interested to know more about DDMRP implementations, we can provide you with a wide range of case studies and video interviews.