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???

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 (DDMRP0) 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 3 Full 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.

A complete revision of the industry-standard book on materials requirements standards for manufacturing This fully revised and updated edition of the landmark work on material requirements planning (MRP) focuses on the new rules required to effectively support a manufacturing operation using MRP systems in the twenty-first century. You will get all-new coverage of demand-driven material requirements planning (DDMRP) along with complete implementation steps. Orlicky's Material Requirements Planning, Fourth Edition offers proven solutions that help you gain the competitive edge through strategic lead time reductions, substantial reductions in total inventory investment, and significant increases in service levels. This guide is an indispensable tool for manufacturing practitioners and anyone preparing for CPIM certification. Completely revised to follow process flow combining MRP, MRPII, ERP and DDRP Provides step-by-step guidance on setting up and running a successful MRP process Written by a pair of manufacturing and materials experts

""The definitive reference for the next generation of manufacturing practitioners and leaders."" -- From the Foreword by Dave Turbide, CFPIM, CMfgE, CIRM, CSCP

""Finally, MRP has been brought into our new age where, in order to fight for increased share and profitability, manufacturers must not only cope with market volatility and supply chain variability, they must embrace it as a competitive weapon."" -- Bob Reary, Fellow-level Certificate, APICS

A fully revised and updated edition of the landmark work on material requirements planning (MRP), "Orlicky's Material Requirements Planning," Third Edition focuses on the new rules required to effectively support a manufacturing operation using MRP systems in the twenty-first century. This authoritative resource offers proven solutions that help you gain the competitive edge through strategic lead time reductions, substantial reductions in total inventory investment, and significant increases in service levels. This is an indispensable tool for manufacturing practitioners and anyone preparing for CPIM certification.

Coverage includes: Inventory in a manufacturing environment Principles of MRP MRP system Processing logic Lot sizing System records and files Product definition Master production schedule Inventory planning and control system System effectiveness Industry effect on MRP Project manufacturing Remanufacturing Process industry application Repetitive manufacturing application Sales and operations planning Evolution of MRP and planning systems Demand driven MRP (DDMRP) logic Strategic inventory positioning Dynamic buffers Demand driven planning Highly visible and collaborative execution DDMRP performance reporting and analytics DDMRP future

Building on the pioneering work of Joseph Orlicky, this new edition of the classic text on material requirements planning (MRP) reveals the next evolutionary step for materials and supply chain synchronization in the modern manufacturing landscape.

"Orlicky's Material Requirements Planning," Third Edition reviews the poor business results embedded in many of today's manufacturing systems, discusses the core problems causing these results, explains an alternative pull structure for planning and controlling materials flow, and presents results from actual implementations.

This thoroughly updated edition offers comprehensive coverage of MRP, describes the current state of the MRP application, and identifies the fundamental changes required to achieve sustainable success given the current global circumstances and technology options. This state-of-the art guide articulates the next generation of MRP logic--demand driven MRP (DDMRP)--and provides a roadmap for the near and distant future for this critical manufacturing management tool.

Carol Ptak is currently a partner with the Demand Driven Institute, and was most recently at Pacific Lutheran University as Visiting Professor and Distinguished Executive in Residence. Previously, she was vice president and global industry executive for manufacturing and distribution industries at PeopleSoft where she developed the concept of demand driven manufacturing (DDM). Ms. Ptak spent four years at IBM Corporation culminating in the position of global SMB segment executive.

Chad Smith is cofounder and managing partner of Constraints Management Group, a services and technology company specializing in pull-based manufacturing, materials, and project management systems for mid-range and large manufacturers. He has been at the forefront of developing and articulating demand driven MRP and is also an internationally recognized expert on the theory of constraints (TOC).

Carol and Chad founded the Demand Driven Institute, an organization devoted to the proliferation and further development of demand driven strategies and tactics in industry.