Demand Driven Material Requirements Planning (DDMRP), Version 2. Carol Ptak
certification programs that elevate supply chain excellence, innovation, and resilience.
For terms that are new with the advent of DDMRP, the authors have created a dictionary specific to DDMRP. This dictionary can be found in Appendix D of this book. Translated versions of this dictionary in multiple languages can be found in the download section at www.demanddriveninstitute.com.
This is not a book about the intricacies of traditional Materials Requirements Planning (MRP). In 2011, at the request of McGraw-Hill, the authors wrote Orlicky’s Material Requirements Planning, third edition. That book was 542 pages and provided an expansive view of conventional planning tactics that were born in the 1950s, codified in the 1960s, and commercialized in the 1970s. That book also devoted nearly 100 pages to an emerging alternative method of formal planning and execution—Demand Driven Material Requirements Planning (DDMRP). This book is entirely about that alternative method.
This book will provide an extensive blueprint for DDMRP. It is the authors’ intention that this text will serve the same purpose as the first MRP book written by Joe Orlicky in 1975 by ushering in a new era in planning and execution methodology, rules, and tools. The body of knowledge of this alternative method is advancing rapidly and gaining acceptance worldwide. The authors hope that this book will open the door for many other books on specific aspects, applications, and extensions of this method.
Contact the authors at [email protected].
Chad Smith
Chad Smith is the coauthor (with Carol Ptak) of the third edition of Orlicky’s Material Requirements Planning and the coauthor (with Debra Smith) of Demand Driven Performance: Using Smart Metrics. He is a cofounder of and partner in the Demand Driven Institute, an organization dedicated to proliferating demand driven methods throughout the world. Mr. Smith serves as the Program Director of the International Supply Chain Education Alliance’s Certified Demand Driven Planner Program.
In 1997, Mr. Smith cofounded Constraints Management Group (CMG), a services and technology company specializing in demand driven manufacturing, materials, and project management systems for midrange and large manufacturers. He served as Managing Partner of CMG from 1998 to 2015. Clients, past and present, include Unilever, LeTourneau Technologies, Boeing, Intel, Erickson Air-Crane, Siemens, IBM, The Charles Machine Works (Ditch Witch), and Oregon Freeze Dry. Mr. Smith is also a certified expert in all disciplines of the Theory of Constraints, studying directly under the tutelage of the late Dr. Eli Goldratt.
Chad Smith makes his home in Wenatchee, Washington, with his wife, Sarah, and two daughters, Sophia and Lily.
Carol Ptak
Carol Ptak is currently a partner with the Demand Driven Institute and was previously a Visiting Professor and Distinguished Executive in Residence at Pacific Lutheran University. Before going to academia she was Vice President and Global Industry Executive for Manufacturing and Distribution Industries at PeopleSoft, where she developed the concept of demand driven manufacturing. Ms. Ptak spent four years at IBM Corporation, culminating in the position of Global SMB Segment Executive.
A leading authority in the use of ERP and supply chain tools to drive improved bottom-line performance, Ms. Ptak has an expertise that is well grounded in four decades of practical experience as a successful practitioner, consultant, and educator in manufacturing operations. Her pragmatic approach to complex issues and her dynamic presentation style make her a person in high demand worldwide on the subject of how to leverage these tools and achieve sustainable success.
Ms. Ptak holds an MBA from Rochester Institute of Technology and completed the EMPO program at Stanford University. She is a frequent educator at the university level and presents at many key technical conferences around the world, including conferences in South Africa, France, Israel, Australia, Ireland, and the Netherlands and 11 APICS International Conferences. She is the author of numerous articles and the books Orlicky’s Material Requirements Planning, third edition, with Chad Smith; MRP and Beyond; ERP: Tools, Techniques, and Applications for Integrating the Supply Chain; Theory H.O.W.: How Organizations Could Work with Harold Cavallaro; and Necessary but Not Sufficient with Eli Goldratt and Eli Schragenheim. Together with Dean Gilliam, she updated Quantum Leap, originally written by John Constanza. Ms. Ptak has lent her name to the internationally coveted Ptak Prize for Supply Chain Excellence that is awarded annually by ISCEA, the International Supply Chain Education Alliance.
Ms. Ptak is certified through APICS at the fellow level (CFPIM) and was certified in Integrated Resource Management (CIRM) with the first group internationally. Ms. Ptak was the President and CEO of APICS for the year 2000. Prior to her election as APICS President, she served at the Society in a variety of positions.
If I have seen further, it is by standing on the shoulders of giants. SIR ISAAC NEWTON TO ROBERT HOOKE, FEBRUARY 5, 1676
This book is truly built on the shoulders of many giants. From the original work of the practitioners who developed MRP, including Joe Orlicky, George Plossl, Richard (Dick) Ling, and Ollie Wight, to the great thinkers behind Lean, Six Sigma, and Theory of Constraints—Taiichi Ohno, W. Edwards Deming, and Eliyahu Goldratt. The authors have stood on the shoulders of these giants to unite these different theories and methodologies and take a leap forward—into a future of planning with relevant visibility that mitigates the volatile, uncertain, and variable world that seems impossible to plan. We have known many of these giants personally and wish to express our appreciation to them.
Collectively the authors would like to thank the International Supply Chain Education Alliance (ISCEA) and members of the Demand Driven Institute Global Affiliate Network for a great partnership in bringing demand driven concepts to the mainstream throughout the world. Additionally, the authors would like to thank various members of the APICS community for their amazing input and support in trying to restore the promise and effectiveness of formal planning. Those people include Keith Launchbury, Ken Titmuss, Bob Reary, and Abe Eshkenazi.
The authors would like to point out particular individuals who have made a lasting contribution to the demand driven body of knowledge. These people include Greg Cass, Debra Smith, Erik Bush, David Poveda, Dick Ling, Paddy Ramaiyengar, Kirk Black, Caroline Mondon, and Laurent Vigouroux.
The authors would like to highlight a few individuals and organizations that have been instrumental in spreading the DDMRP message. Caroline Mondon and the Fapics organization led an amazing charge in France. Philippe Bornert, Bernard Milian, and the whole Agilea team have been instrumental in supporting that charge in France. Ken Titmuss and the SAPICS organization brought these concepts to Africa. David Poveda was instrumental in starting a massive proliferation in South America.
Chad Smith would like thank his wife, Sarah, and two daughters, Sophia and Lily, for putting up with the prolonged absences and locked office door. The support and love of these three people has kept him going. Additionally, Chad would like to thank Carmine Mainiero and Nick Mantenuto for their dedication in bringing demand driven concepts to a global giant in the world of fast-moving consumer goods; what a learning experience! Chad would also like to acknowledge the team at Demand Driven Technologies and its CEO, Erik Bush, in believing in bringing real and sustainable results to customers. Chad would additionally like to thank the team at Constraints Management Group, LLC, for an amazing journey for nearly 20 years. Finally,