1 DDMRP Case Studies from the Demand Driven Ins7tute All material and content © copyright 2014 Demand Driven Ins7tute. All rights reserved. Cer7fied Demand Driven Planner (CDDP) is a trademark of the ISCEA
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1
DDMRP Case Studies from the Demand Driven Ins7tute
All material and content © copyright 2014 Demand Driven Ins7tute. All rights reserved. Cer7fied Demand Driven Planner (CDDP) is a trademark of the ISCEA
2 All material and content © copyright 2012 Demand Driven Ins7tute. All rights reserved. Cer7fied Demand Driven Planner (CDDP) is a trademark of the ISCEA
Oregon Freeze Dry Case Study
Mountain House Division: • Sales increased 20% • Customer Fill Rate improved from 79% to 99.6%
• 60% reduc*on in inventory
Industrial Ingredient Division: • 60% reduc7on in make to order lead 7me
• 100% On-‐Time-‐Delivery • 20% reduc7on in inventory
Raw Material No out of stock
Reduced inventory $2.5M+
3 All material and content © copyright 2013 Demand Driven Ins7tute. All rights reserved. Cer7fied Demand Driven Planner (CDDP) is a trademark of the ISCEA
4 All material and content © copyright 2012 Demand Driven Ins7tute. All rights reserved. Cer7fied Demand Driven Planner (CDDP) is a trademark of the ISCEA
LeTourneau Case Study
MRP
DDMRP
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C
Steel Products
Component Supply (H/
L)
Offshore Products
Mining Products
C
C
Suppliers
Drilling Systems
Forestry Products
C
C
Synchroniza7on and Flow Challenge
C = Customer = Remote Location
Supply Variability
Distortions & amplification in
demand requirements reverberate backward
Demand / Information Variability
End Item Assembly inherits the amplifying upstream variability.
Lead Time before DDMRP
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SP CS
OP
MP
C
C
Suppliers
C = Customer
DS
FP
C
C
= Remote Location
= Time Buffer = Strategic Replenishment Buffers
C
DDMRP Design
7
Stock-‐outs reduced by over 66%!
0
100
200
300
400
500
600
700
Dec '01 Dec '02 Dec '03 Dec '04 Dec '05 Dec '06 Dec '07 Dec '08 Sep'09A
$Millions
Longview Inv Longview TR
0
100
200
300
400
500
600
700
Dec '01 Dec '02 Dec '03 Dec '04 Dec '05 Dec '06 Dec '07 Dec '08 Sep
$Millions
Houston Inv Houston TR
High Inventories Shortages Massive Expedites
Low Inventories High Service Fewer Expedites
DDMRP (Longview) vs. MRP (Houston)
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Before Demand Driven – FMCG Example (soap)
9
Raw
Pack
Mix Room
Pack 1
Pack 2
Pack 3
DC
DC
DC
DC 50+ Days
Planned Orders (MRP) Purchase Orders
Manufacturing Orders
Expedites/ Schedule Break-ins
Before Demand Driven – FMCG Example (soap)
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DDMRP Design – FMCG Example (soap)
All material and content © copyright 2013 Demand Driven Ins7tute. All rights reserved. Cer7fied Demand Driven Planner (CDDP) is a trademark of the ISCEA
Raw
Pack
Mix Room
Pack 1
Pack 2
Pack 3
DC
DC
DC
DC 9 Days
HUB
3-8 Days
Manufacturing Orders Stock Transfer Orders
Purchase Orders
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Immediate Results for Materials – FMCG (soap)
300 Materials are buffered without increase in RPW inventory. This is accomplished with 18% less total
RPW.
Dampened the bull whip, now opera*ng more effec*vely, with less
working capital
Before
After Replenishment lead time has been reduced 82% to 9 days from 50 days,
becoming Responsive
Finished Goods dropped 45+% with consistent services level at
or above 99.7%
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