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Business impacts
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:
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10 to 50% service level improvement, without increasing the overall working capital
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30 to 60% inventory reduction, including work in progress, without negative impact on service levels
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20 to 80% overall lead time reduction
Companies that implemented DDMRP report as well the following positive impacts:
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Reduction of last minute changes to the production schedule, and reduction of the overall variability in operations
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Reduction of minimum order quantities and production lot sizes
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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.