BOOKS FOR THOSE INTERESTED IN DEMAND DRIVEN
This list is in order of publishing date starting with the most recent.
Orlicky's Material Requirements Planning, Fourth Edition (Ptak and Smith, McGraw Hill, 2023)
The most recent collaboration from Carol Ptak and Chad Smith, Cofounders of the Demand Driven Institute.
Streamlined and reorganized, this fourth edition brings clarity and focus to the prerequisites, choices, inputs, outputs, latest techniques and challenges associated with modern MRP systems across a variety of industries including project, custom, batch, repetitive and continuous process manufacturers. Included is the latest evolution of MRP logic including the increasingly popular DDMRP derivative and its components.
The volatile, uncertain, complex, and ambiguous (VUCA) world is here to stay, and it is wreaking havoc on manufacturers, distributors, and supply chains throughout the world. Companies are failing at a faster rate than ever because they are failing to adapt to this highly dynamic and risky environment. A new rule has emerged – adapt or die. But how to drive adaptation when conventional tools and processes are failing to keep pace with these challenges?
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In this groundbreaking text, Dick Ling, the father of Sales and Operations Planning, teams up with Demand Driven thought leaders Carol Ptak and Chad Smith to introduce Adaptive Sales and Operations Planning, an effective bi-directional bridge between strategy and operations enabling adaptation at all levels of the organization in the VUCA world. A step-by-step path to prepare, implement and sustain this robust S&OP process is detailed in over 300 pages of content and nearly 150 graphical displays.
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Adaptive Sales and Operations Planning completes the Demand Driven Adaptive Enterprise framework and restores the original promise of Sales and Operations Planning for modern circumstances.
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Demand-driven replenishment (DDR) is now part of standard SAP S/4HANA, so what does that mean for you? From system configuration to the SAP Fiori apps used for planning and execution, this E-Bite shows you each stage of a DDR project. You’ll see how SAP S/4HANA takes the classic MRP elements—classifications, stock positioning, lead time, and buffers—and recalculates them using DDR for lower variability. Improve your materials planning accuracy!
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Discover how DDR minimizes demand-supply variability
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Explore SAP Fiori apps for stock positioning, lead time, and more
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Preview your DDR configuration in SAP S/4HANA
Getting ready for DDMRP? Dive into SAP IBP for demand-driven replenishment, and incorporate its innovative practices into your SAP ERP setup. Learn how you can determine buffer size and locations, calculate net flow position to protect throughput, and plan and manage execution in SAP ERP. Preview your implementation project, and architect your demand-driven enterprise!
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Discover how SAP IBP handles demand-driven replenishment
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See how to position buffers, protect throughput, and pull materials in SAP ERP
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Envision your demand-driven enterprise with SAP IBP
Demand Driven Material Requirements Planning (Version 3) (Ptak and Smith, Industrial Press, 2019)
In the 1950s, a planning method was conceived called Material Requirements Planning (or MRP). MRP changed the world of manufacturing forever. But times have changed customer tolerance times are much shorter, product variety and complexity has increased, and supply chains have spread around the world. MRP is dramatically failing in this New Normal. Demand Driven Material Requirements Planning (DDMRP) is a practical, proven, and emerging method for supply chain planning and execution that effectively brings the 1950s concept into the modern era. The foundation of DDMRP is based upon the connection between the creation, protection, and acceleration of the flow of relevant materials and information to drive returns on asset performance.
Using an innovative multi-echelon Position, Protect, and Pull methodology, DDMRP helps plan and manage inventories and materials in today s more complex supply scenarios, with attention being paid to ownership, the market, engineering, sales, and the supply base. This method enables a company to decouple forecast error from supply order generation and build in line to actual market requirements, and promotes better and quicker decisions and actions at the planning and execution level. DDMRP is already in use by MAJOR Global 1000 companies. Demand Driven Material Requirements Planning is THE definitive work on DDMRP, and will be required as courseware for all those taking the Demand Driven Planner (DDP) Program.
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New in Version 3
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Full color, with the use in specific, consistent, and focused ways to clearly and effectively highlight planning, execution, and model reconfiguration priorities.
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Expanded Appendix E, looking at the most recent innovations of DDMRP.
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Revised graphics scattered throughout the book.
Despite spending enormous sums on technology and improvement methods, most businesses are under siege. The inability to drive adaptation to an increasingly more volatile, uncertain, complex, and ambiguous (“VUCA”) set of circumstances has resulted in an unprecedented rate of failure across organizations of all shapes and sizes. Worse yet, the necessary component to break the cycle is being distorted by antiquated models, methods, rules, and tools held over from decades past. Industry is stuck in a rut, and that rut is getting deeper and deeper.
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Where does common sense turn into common nonsense in organizations? Today, companies lack an effective framework to consistently apply and integrate common sense principles at ALL levels (strategic, tactical, and operational).
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This book reveals a new management framework rooted in science, mathematics, economics and most importantly, common sense. It enables an unprecedented level of visibility across resources, products, levels and time ranges to quickly and effectively produce the relevant information that companies are desperately seeking, and is the pre-requisite for surviving and thriving in the VUCA world. That new framework is called the Demand Driven Adaptive Enterprise (DDAE) model.
The DDAE model will not be embraced by everyone, as it challenges conventional practice and systems. Unfortunately, many of those people and organizations are living on borrowed time. So, is your organization ready for something new???
At the heart of most supply chains lies a planning tool called Material Requirements Planning (MRP). Invented in the 1950s, codified in the 1960s and commercialized in the 1970s, MRP became THE way of life for supply order generation and synchronization. What used to take teams of people weeks to plan could be done overnight with incredible precision. Yet planners and buyers that interact with MRP everyday know that something is very wrong. They may not be able to explain exactly why but they know that if they did exactly what MRP told them to do, it would have disastrous consequences for their company and for their career.
What if there was one fatal flaw in MRP that makes it completely incapable of conveying relevant information? What if correcting this one fatal flaw allowed the promise of MRP to be attained? Precisely Wrong: Why Conventional Planning Systems Fail will reveal this fatal flaw and trace its impact to everyday situations encountered by planners and buyers. Additionally, an elegant solution to overcome this flaw will be discovered. Readers will walk away with a new depth of understanding about conventional planning systems and a list of things they can begin to implement the very next day.
Many manufacturing and distribution companies are moving from the traditional 'forecast push MRP' to demand-driven supply chain management (SCM). Demand-driven SCM is an 'end-to-end' supply chain planning and replenishment process that enables companies to achieve their planned service levels from up to half the average level of inventory and requiring significantly less throughput capacity - irrespective of the level of demand volatility or lead-time length.
Demand-Driven Supply Chain Management is the go-to source for industry supply chain/operations executives and students. It describes, in a readable but rigorous manner, the 'what, how and why' of the demand-driven SCM process. The key themes in the book are: what is demand-driven? why is demand-driven so effective? how to operate a demand-driven supply chain? and how to adopt the demand-driven process in your company? The book has been written in such a way that it doesn't require reading from cover to cover. Readers can quickly grasp the essential concepts from one of numerous self-contained sections that present the book's key concepts from different perspectives.
The Missing Links – A Demand Driven Supply Chain Detective Novel (Mondon, Industrial Press, 2016)
This utterly unique how-to supply chain management work is written as mystery to help engage readers. It fills the need for an accessible work on supply chain management skills that helps strengthen, improve, and adapt the management of industries to meet the swiftly changing needs of a global market.
The Missing Links follows a small furniture company whose owner has died under suspicious circumstances, leaving his musician daughter in charge. The business newcomer encounters a multitude of problems–high work-in-progress inventory, unsafe working conditions, conflicts between two in-house factions, longstanding customers beginning to withdraw their business, and increased competition. Can the factory ever be profitable again?
The work follows the journey of the company to utilize industry standards, including total quality, lean, total productive maintenance, flow management, as well as the newest demand driven methodologies that are changing modern supply chain management. “Clues” dispersed throughout the manuscript point readers in the direction of an affiliated website where they will find 33 appendices of charts, forms, and additional improvement information that can be customized, regardless of size of the company, or industry. Download an interview with the author Caroline Mondon.
Demand Driven Performance Using Smart Metrics (Smith and Smith, McGraw-Hill, 2014)
What if the objective of minimizing unit product cost that is hard coded into all reporting and measurement systems is simply "bad math" that drives decisions and actions that destroy ROI?
In today's volatile, globally competitive environment, new decision-making tools are required to monitor, measure, and improve total organizational performance. Adherence to "old" operational rules, tools, and behaviors is killing competitiveness in most enterprises. A fundamental shift is required. Cowritten by internationally recognized experts in the field, Demand Driven Performance explains why current measurement forms must be replaced. The authors present a demand driven blueprint and the smart metrics to maximize flow and ROI. This book is the official text book of the Demand Driven Leader (DDL) Program.
Orlicky’s Material Requirements Planning 3/E (Ptak and Smith, McGraw-Hill, 2011)
The book that started it all. The third edition of Orlicky's Materials Requirements Planning is the ultimate planning and execution resource. The book explains the history of MRP, what it is today and what it must become to help enable the agile supply chains that today's complex and demanding world requires. The authoring team of Carol Ptak and Chad Smith have taken their wealth of collective experiences and provided the blueprint for the transformation of integrated planning and execution called Demand Driven MRP (DDMRP).
