DDMRP Materials Management in the Forging Industry

Implementation of the demand-driven operating model at ulma forged solutions s.coop.

Nowadays, companies are experiencing difficulties in materials management because they are using methodologies developed for other production goals with very different characteristics and needs. Based on this observation, ULMA FORJA S.COOP. has undertaken a project called “Analysis of the order delivery planning system.” The objective has been to examine the way the order and delivery processes are planned out through periodic meetings with the company’s management.

DDAE (Demand Driven Adaptive Enterprise) Philosophy

Becoming a demand-driven organization (DDAE) is a drastic change from a conventional model, which focuses on unit cost and forecasting, to one that focuses on flow and demand.

  • DDMRP (Demand Driven Material Requirements Planning)
  • DDAE (Demand Driven Adaptive Enterprise)

There are five steps to this changeover. The first two, accepting the new scenario and focusing on flow and its implications for ROI, were completed during this first phase of analysis. The main conclusions were that the flow of material and information are not linked, are not aligned to demand, and are not dynamic, while at the same time decisions are focused on local and not global objectives.

In response to that, the company decided to push ahead with further work and propose a new project to embark on the “Implementation of the Demand-Aligned Operating Model at ULMA Forged Solutions”; that is, an implementation of DDMRP as a methodology for materials management.

In keeping with the DDAE philosophy, this project is designed to move forward by taking the following steps:

  • Three: Designing an operational model that is focused on flow
  • Four: Implementing a demand-driven model in the organization
  • Five: Using smart operating indicators and keeping the operating model aligned with demand