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:

 

• 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.