The Demand Driven Adaptive Enterprise. Carol Ptak
The Demand
Driven Adaptive
Enterprise
Carol Ptak and Chad Smith
INDUSTRIAL PRESS, INC.
Industrial Press, Inc.
32 Haviland Street, Suite 3
South Norwalk, Connecticut 06854
Phone: 203-956-5593
Toll-Free in USA: 888-528-7852
Fax: 203-354-9391
Author: Carol Ptak and Chad Smith
Title: The Demand Driven Adaptive Enterprise
Library of Congress Control Number: 2018959515
© by Industrial Press, Inc.
All rights reserved. Published in 2018.
Printed in the United States of America.
ISBN (print): 978-0-8311-3635-2
ISBN (ePUB): 978-0-8311-9495-6
ISBN (eMOBI): 978-0-8311-9496-3
ISBN (ePDF): 978-0-8311-9494-9
Editorial Director: Judy Bass
Copy Editor: Janice Gold
Compositor: Patricia Wallenburg, TypeWriting
Cover Designer: Janet Romano-Murray
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Limits of Liability and Disclaimer of Warranty The author and publisher make no warranty of any kind, expressed or implied, with regard to the documentation contained in this book. All rights reserved.
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Contents
About the Demand Driven Institute
Striving for Coherence and Resiliency
Flow as an Objective and Purpose for Systems and Subsystems
A New Appreciation for the Bullwhip Effect
The Prerequisites for Relevant Information
Prerequisite #1: Understanding Relevant Ranges
Prerequisite #2: Tactical Reconciliation Between Relevant Ranges
Prerequisite #3: A Flow-Based Operating Model
Prerequisite #4: Flow-Based Metrics
Convention’s Failure with the Four Prerequisites
Is Your Organization Ready for Flow?
Summary
CHAPTER 3
The Demand Driven Adaptive Enterprise Model
The Three Components of the DDAE Model
What’s Behind the DDAE Name?
Summary
CHAPTER 4
The Demand Driven Operating Model
DDOM Element #1: Strategic Decoupling Points
DDOM Element #2: Strategic Control Points
DDOM Element #3: Dynamic Buffering
DDOM Element #4: Pacing to Actual Demand
The Operational Relevant Range
Operational Flow-Based Metrics
Summary
CHAPTER 5
Demand Driven Sales and Operations Planning
The Tactical Relevant Range
The Elements of Demand Driven Sales & Operations Planning
Tactical Metrics
Summary
CHAPTER 6
Adaptive Sales and Operations Planning
What Is Sales & Operations Planning?
The Strategic Relevant Range
Adaptive S&OP Starting Assumptions
The Seven Steps of Adaptive S&OP
Strategic Metrics
Summary
CHAPTER 7
Closing the Loop with the DDAE Model
A Model Built for Relevant Information
A Model Built for Complex Adaptive Systems
Demand Driven Project Management