Supply Chain leaders need to fully comprehend how things work when trying to make essential changes and to bypass risky implementation that could result in an unintentional outcome, as Laura Cecere mentioned. How to implement a successful DDMRP process?
1. First, you should educate your people, including your top-level leaders
Your leaders must thoroughly comprehend the method and impact of DDMRP within your enterprise so you can completely back it up.
2. Focus on speed and quality of implementation
Cost, time and quality are three elements to manage a project. The right amount of resources with good quality design and implementation will determine the success of a DDMRP application with high Return of Investment (ROI)
3. It is vital a strong leader sponsoring the project.
This person should be visible at all levels in the enterprise and someone who can solve obstacles, and above all, the passionate one who engaged with what he/she is undertaking.
4. All sections should be engaged and collaborate to be successful
Start a re-alignment to this modern-efficient way of doing business, and to concentrate on enhancing the flow of significant material and info; deploy these collaborative actions when everybody recognises the purpose and goals of this implementation.
5. Put into effect the new policies and tactics of working
A strong leadership will be required to re-educate, educate and train the people; however, in the long run, you need to make sure one and all are enthusiastically following the new aspects of running the business; meaning, to re-aligning the benefit and in doing so, you would need to count on both top management support and HR as well. Finally, strong leadership will be required.
6. Modify the incentive configuration
Implement your DDMRP first as a pilot project to lessen the impact it could have; and from there, go softly introducing it all across the enterprise. Make it clear that no plant manager can manipulate the volumes received while operating time frame, as the DDMRP metrics will spot it right away and take charge and measure of it whilst running because this system is quite transparent. Now, the change is from a unit cost to a flow and quantity focus, to take your plan to the max of sellable goods with a minimum quantity of stock and WIP
7. Focus on consistency metrics first
No matter if you have the best processes set down; if your staff does not go along, it won’t work. The DDMRP framework encompasses: reliability, stability, speed and velocity, and tactical metrics, being reliability the first implemented at the beginning of the process because it assesses the way workers engage or not with it and the market expectancy.
8. Clean up your master data
Before implementing DDMRP, it is essential to clean up your planning master data to properly maintain the system, as people will be using it to do the planning.
9. Go through DDMRP step by step:
• Running a pilot procedure as a first step.
• Certify that pilot purposes are clear and well settled to everyone.
• Explain exactly how the different factors fall together: planning, scheduling, execution, DDS&OP, financial and non-financial Metrics.
10. You better deactivate your legacy planning system.
DDMRP wouldn’t be running in parallel to traditional planning operation. It would be better to work with the new system right away.
What do we take away? Leaders should fully understand the repercussions of becoming DDMRP user, and the need for a framework to set up these principles all through your company. The success depends on the efficient operation of it, whilst taking the better advantages of this organising system.
Dave Food
Prophetic Technology
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