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In the 1950s, a method called Material Requirements Planning (or “MRP”) changed the world of manufacturing forever. But times have changed—customer tolerance times are 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), Version 3 presents 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 in the New Normal. Using an innovative multi-echelon “Position, Protect and Pull” approach, 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. It 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. This book is THE definitive work on DDMRP, and will be required as courseware for all those taking the Certified Demand Driven Planner (CDDP) Program.New Features in Version 3Full color, with the use in specific, consistent, and focused ways to clearly and effectively highlight planning, execution, and model reconfiguration priorities.Expanded Appendix E, looking at the most recent innovations of DDMRP.Revised graphics scattered throughout the book.

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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 Certified Demand Driven Planner (CDDP) Program.FeaturesTHE authoritative work on the emerging DDMRP methodology.Provides a clear, concise, and compelling explanation of the breakdown of conventional planning systems.Includes immersive and extensive examples that bring DDMRP to life across multiple industries, including vertically integrated supply chains, fast-moving consumer goods (FMCG), heavy fabrication and assembly, and retail and wholesale distribution.Features over 300 graphical figures.Ptak and Smith are world renowned leaders in the fields of MRP, Theory of Contraints (TOC), Quality Improvement, and Supply Chain Management.

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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.  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). 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???

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In the 1950s, a method called Material Requirements Planning (or “MRP”) changed the world of manufacturing forever. But times have changed—customer tolerance times are 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), Version 2 presents 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 in the New Normal.         Using an innovative multi-echelon “Position, Protect and Pull” approach, 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. It 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. This book is THE definitive work on DDMRP, and will be required as courseware for all those taking the Certified Demand Driven Planner (CDDP) Program.  New Features in Version 2Completely new Chapter 13, introducing the Demand Driven Adaptive Enterprise (DDAE) ModelNew Appendix E: The Innovations of DDMRPNew and revised graphics scattered throughout the book  

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OverviewAt the heart of most supply chains lies a planning tool called Material Requirements Planning (MRP). Invented in the 1950s, codifed in the 1960s and commercialized in the 1970s, MRP became THE way of life for supply order generation and synchronization throughout the world. Yet the people 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 their career.What if there was one fatal flaw in MRP that makes it distort the relevant information that planners, companies, and supply chains are desperately seeking? What if correcting this one fatal flaw would allow the promise of MRP to be attained and the bullwhip to be effectively mitigated? Precisely Wrong: Why Conventional Planning Fails and How to Fix It will expose this fatal flaw and trace its impact to everyday situations encountered by planners and buyers and the larger supply chain.Additionally, an elegant solution to overcome this flaw will be revealed. 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.  This work goes beyond the planning mechanisms of an organization and shows a roadmap for all levels to drive adaptation, protect and promote the flow of relevant information, and survive and thrive in the today’s complex and volatile environment.FeaturesProvides an unique and simple view of the core problem underlying these systems, enabling a company to see a clear and relevant planning picture.Gives companies an essential description of the most known and pervasive issue in supply chain called the “bullwhip  effect”, and how it relates to the core problem.For more information, videos, and more, visit the officialPrecisely Wrong website at www.preciselywrong.com.  

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