Page 409 - Orlicky's Material Requirements Planning

388 PART 4 Looking Backward and Forward

FIGURE 22-2

Demand-driven MRP.

Demand-Driven MRP
(DDMRP)

Material Distribution
Requirements Requirements Lean Theory of Innovation
Planning (MRP) Planning (DRP) Constraints

Demand-driven MRP is a dynamic and effective demand-driven solution to
answer the challenges of today’s manufacturing landscape. Through innovative
approaches in inventory and product structure analysis, new demand-driven planning
rules and integrated execution tactics, DDMRP is designed to tie material availability
and supply directly to actual consumption throughout the bills of material (BOMs).
When used holistically across a supply chain, it removes the cascading and compound-
ing disruptions that most supply chains face. Additionally, this approach is a prerequi-
site to using and sustaining pull-based scheduling and execution methods such as lean
and DBR effectively in more complex manufacturing environments. DDMRP has a
unique way to incorporate required elements of strategic planning in the sales and oper-
ations plan with little exposure to the variability and volatility experienced with tradi-
tional forecasting techniques.
Many readers might look at the suggested solution and see a staggering amount of
suggested change. The irony is that much of the solution is already known and accepted.
These elements have not been packaged together with the key innovations that will
enable demand-driven manufacturing for the global manufacturing and supply land-
scape of the twenty-first century. The following chapters will describe the package and
introduce these new innovations. Demand-driven MRP is focused around critical parts
called strategically replenished parts. These strategically replenished parts often will
“drive” the system and thus requirements for all parts (stocked and nonstocked).

THE FIVE PRIMARY COMPONENTS
OF DEMAND-DRIVEN MRP

Each of these five components will be explored in depth in the five chapters that follow.
All are necessary to remove the undesirable MRP conflict symptoms and compromises
and open the door to agility. Ignoring any of these components will reduce the value of
the solution dramatically in most environments.