Time to Revisit Your Constraints

    We talk a lot about constraints management in our work with customers who are implementing Demand-Driven Manufacturing (DDM) in their facilities. That’s because constraints management is fundamental for synchronizing the pace of production and keeping the demand (orders) flowing throughout the shop floor. But, our focus is naturally on physical constraints, e.g., that piece of equipment or workstation that is preventing you from delivering on time or offering

FAQ: Can I Use Demand-Driven Manufacturing in a Make-to-Stock Environment?

Demand-Driven Manufacturing seems like it was made for Make/Assemble-to-Order and Engineer-to-Order environments. It’s true that Demand-Driven Manufacturing can be beneficial for manufacturers who already produce goods based on customer demand because it improves their responsiveness to customers and lowers lead and cycle times. Demand-Driven Manufacturing is a method of manufacturing where production is based on actual customer orders (demand) rather than a forecast. But what about Make-to-Stock environments? These manufacturers

5 Keys to Manufacturing Transformation

Almost every manufacturer we talk to these days is in the process of implementing (or planning to implement) some sort of change in the way they approach operations: Theory of Constraints (TOC), Lean, Six Sigma, just to name a few. Our focus on demand-driven manufacturing tools and applications has given us a front-row seat to their efforts. Related post: Is Demand Manufacturing Lean? While the devil may be in the

Peace on Earth and Goodwill Between Sales and Production

The decorations. The music. The food. The holiday season is a time of cheer and goodwill for many people. Nevertheless, there are two groups who may find each other especially trying this time of year: sales and production. That’s because this isn’t just the holiday season; it’s also the end of the fiscal year for many organizations. While everyone else has visions of sugarplums dancing in their heads, sales has

FAQ: What is the Difference Between Pull Manufacturing and Demand-Driven Manufacturing?

        I often talk about pull manufacturing and Demand-Driven Manufacturing as though they are one and the same. That’s because, in my mind, they are. However, after reading through a couple of online articles this afternoon, it’s clear not everyone sees it that way. In fact, some of the various ways pull manufacturing is described on the Internet can be a bit confusing. In pull manufacturing, replenishment

3 Prerequisites to a Modern Demand-Driven Supply Chain

In 2010, Gartner estimated that manufacturers outsourced about 70% of the products they make to other manufacturers. I haven’t seen a recent statistic, but that still feels about right. So, it only makes sense that, for most manufacturers, implementing modern demand-driven or pull-manufacturing techniques will require collaboration with many partners across the entire supply chain. Before you can collaborate with your supply chain partners, you need to get your own