4
The Power of Decoupling
What Is Decoupling?
The “Decoupled Explosion”
Restoring the Promise of Planning
Decoupling Point Success Factors
Can Conventional Planning Decouple?
Mitigating the Bullwhip Effect
Summary
CHAPTER 5
Demand Driven Material Requirements Planning
The Components of DDMRP
DDMRP Results
Summary
CHAPTER 6
The Quest for More Relevant Information
Striving for Coherence
Prerequisites for Relevant Information
Convention’s Failure with the Prerequisites
Summary
CHAPTER 7
The Demand Driven Adaptive Enterprise Model
The DDAE Model
The DDAE Model and Relevant Information
Adaptive Sales and Operations Planning
The DDAE Development Path
Software Implications
Summary
APPENDIX A
Simulating DDMRP Performance Against Lean and MRP II
By Dr. Romain Miclo, Dr. Matthieu Lauras, Dr. Franck Fontanili, Dr. Jacques Lamothe, and Dr. Steven A. Melnyk
Overview
Research Methodology
Developing the Simulation Model
Simulation Practices
The Experimental Design
Data Generation
Method of Analysis
Analysis and Results
About the Authors: The Research and Review Team
APPENDIX B
An Inquiry into Queue Dynamics and Lead Times in Supply Chains
By Alfredo Angrisani
Opening a Pandora’s Box
Summary
About the Author
APPENDIX C
Why the Demand Driven Adaptive Enterprise Model Is Disruptive
By David Poveda
Defining Disruptive
The DDAE Model as Disruptive
Additional Insights About the DDAE Model
About the Author
APPENDIX D
Demand Driven Answers for Accountants
By Debra Smith and Chad Smith
Introduction
About the Questions
Webinar Questions from the Audience
About the Authors
APPENDIX E
The Story Behind Demand Driven Material Requirements Planning
By Chad Smith
Oregon Freeze Dry: The Lightbulb Moment
The Charles Machine Works: The Power of Decoupling
Jamestown Container Companies: Bringing the Solution to the Customer
Roseburg Forest Products: The Power of Vertical Integration and Shared Materials
LeTourneau Technologies, Inc.: Modern Buffer Design, Decoupled Lead Time, and the Matrix BOM Analysis
The Meeting: A Problem and Solution Come Together
Unilever: Prioritized Share, the Hybrid, Planned Adjustments, and the Birth of DDS&OP
Notes
Index
It has pleased me to have the opportunity to write the Foreword for this book. I have been fortunate to work with many outstanding people over the last 50 years. I would consider Carol and Chad to be right at the top of that group. What they have contributed to the field of supply chain management with demand driven material requirements planning (DDMRP) is probably the most significant improvement in the field in decades. MRP was made possible in the ’60s because of the power of the computer. DDMRP is now possible because of the power of the innovation that Carol and Chad have introduced. Carol and Chad are truly “thought leaders”
Having helped companies implement MRP and taught thousands of people about master scheduling, I have known for a long time that there were issues with the traditional planning systems. People have had to perform too many work-arounds utilizing spreadsheets to obtain reasonable results. Carol and Chad have found the solution to this problem and explain it extremely well in this book.
This is an important piece of work. We need to understand why the approaches that we believed in for so long were flawed. Be prepared to be amazed by the explanations in this book. I love the title that they have chosen for this book, Precisely Wrong. It says it all.
They have not stopped with just the development
