Pages

June 30, 2020

July - Management Knowledge Revision

Online MBA Management Theory Handbook 



July  (Economics, Engineering Economics, & Managerial Ethics)

1st Week  ( 1 to 5 July)

Economic Theory of Production and Production Cost
Economic Analysis of Different Competitive Conditions.

Wages and the Labor Market - Samuelson and Nordhaus 

Capital, Interest and Profits - Review Notes
Markets and Economic Efficiency - Review Notes

Economic Role of Government and Its Expenditure


Alternative Economic Systems - Review Notes
Theory of Economic Growth

2nd week  ( 8 to 12 July)

International Trade Theory and Issues
Exchange Rates: Markets Regulation and International Financial System

Supply Behavior/Decisions of Firm in Competitive Markets
Introduction to Engineering Economics


Engineering Economy or Engineering Economics: Economic Decision Making by Engineers
Time Value of Money - Time Value of Money Calculations


Cash Flow Estimation for Expenditure Proposals
Required Rate of Return - Cost of Capital  - Required Rate of Return for Investment or Expenditure Proposal..


Depreciation and Other Related Issues
NPV - IRR and Other Summary Project Assessment Measures



3rd week  (15 to 19 July)


Income Expansion Projects
Cost Reduction Projects


Replacement Decisons
Expected Values and Risk of Project Revenues and Costs


Present-Worth Comparisons
Rate-of-Return Calculations

18 July

Equivalent Annual-Worth Comparisons
Replacement Analysis


Replacement Problem - Engineering Economy Analysis...
Machine Selection Problem for an Engineer - Engine...

4th week

Depreciation and Income Tax Considerations
Sensitivity Analysis

Structural Analysis of Alternatives
Engineering Economic Analysis - Subject Update - Recent Case Studies

Business Ethics Revision Starts


Business Ethics – Introduction
Moral Standards and Moral Judgments – Approaches



Business System - Free Markets - Ethics
Ethics in the Market Place and Distribution System

Ethics in the Factory
Ethics in the Supply Chain







To August - Management Knowledge Revision


Industrial Engineers support Engineers and Managers in Efficiency Improvement of Products, Processes and Systems



Industrial Engineering ONLINE Course



One Year MBA Knowledge Revision Plan


January  - February  - March  - April  - May   -   June

July  - August     - September  - October  - November  - December



Updated 30 June 2020,  10 July 2016






June 29, 2020

Financial - Cost and Management Accounting - Subject Update Articles




                                      Narayana Rao K.V.S.S. on Cover Page of Business Today 
October 22 - November 6, 1997



2020

Video Lectures on Financial Accounting by Prof. Elbarrad
https://www.youtube.com/channel/UCXQAlFxCIlihCazcGq65wBA


Cost Effective Supply Chain
Brand owners require effective processes for collecting and managing cost data from manufacturing partners, item suppliers and logistics partners at the individual item and bill-of-material (BOM) levels. E2open’s Cost Management application enables multi-tier cost capture and management by providing a single view of BOMs, cost forecasting and rebate management. The result is efficient, optimized processes and lower supply chain costs.
https://www.e2open.com/intelligent-applications/supply-management/cost-management/

2019

Bain and Company
______________

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Save-to-transform as a catalyst for embracing digital disruption
Deloitte's 2019 Global Cost Survey
Cost-management remains a strong imperative around the world.
https://www2.deloitte.com/us/en/pages/operations/articles/global-cost-management-survey.html

Strategic Cost Transformation - Capgemini

https://www.capgemini.com/wp-content/uploads/2017/07/Strategic_Cost_Transformation.pdf

Manufacturing cost transformation

Situation
Our client, which primarily serves coal power generators, faced a unique set of market challenges driven by fossil fuel price and regulatory uncertainty:
https://www.strategyand.pwc.com/power-utilities/infrastructure-mining/casestudy/cost-transformation

Cost Transformation


We help you embark on major cost reduction—without losing focus on profitable growth.
https://www.atkearney.com/operations-performance-transformation/cost-transformation

IBM: Cost transformation for the digital era


In the new digital era, the classical dichotomy of grow and invest, or reduce costs has changed and it’s no longer an either/or choice. Organizations have new opportunities to identify cost take-out, rethink operational efficiency and fund growth from the inside out.
https://www.ibm.com/thought-leadership/institute-business-value/report/cognitive-cost

How do you take your enterprise cost reduction strategy from alienating to engaging?
https://consulting.ey.com/take-enterprise-cost-reduction-strategy-alienating-engaging/


February 5, 2019

IMA Releases Enhanced Management Accounting Competency Framework for Professionals in the Digital Age


IMA® (Institute of Management Accountants) has released its enhanced Management Accounting Competency Framework. The updated Framework reflects the skills management accountants will need to remain relevant and be future-ready.
https://www.imanet.org/about-ima/news-and-media-relations/press-releases/2019/2/5/ima-releases-enhanced-management-accounting-competency-framework?ssopc=1

IMA Management Accounting Competency Framework 


Strategy, Planning & Performance
The competencies required to envision the future, lead the strategic planning process, guide decisions, manage risk, and monitor performance.

Reporting & Control
The competencies required to measure and report an organization’s performance in compliance with relevant standards and regulations.

Technology & Analytics
The competencies required to manage technology and analyze data to enhance organizational success.

Business Acumen & Operations
The competencies required to contribute as a cross-functional business partner to transform company-wide operations.

Leadership
The competencies required to collaborate with others and inspire teams to achieve organizational goals.

Professional Ethics & Values
The competencies required to demonstrate the professional values, ethical behavior, and legal compliance essential to a sustainable business model.
Download full framework from https://www.imanet.org/career-resources/management-accounting-competencies?ssopc=1

2018

Strategic Cost Transformation

by Dr. Reginald Tomas Lee
Publisher: Business Expert Press
Release Date: December 2018
https://www.oreilly.com/library/view/strategic-cost-transformation/9781631578809/

Virtual Issue on Empirical Management Accounting Research

Journal of Accounting Research, August 2018
Margaret A. Abernethy
University of Melbourne, Department of Accounting
Dennis Campbell
Harvard University - Accounting & Control Unit

Review of empirical papers published in JAR over the past 10 years examining management accounting and control systems in organizational contexts that are complex, ambiguous and where performance is difficult to measure. These papers use a variety of newer economic models of organization culture, relational contracts and related theories from sociology and psychology to provide a direction to management accounting.

2015

Cost Transformation Model of CGMA

http://www.cgma.org/Resources/Tools/pages/cost-transformation-model.aspx

Cost Transformation - Tata Steel Europe Case Study

http://www.cgma.org/Resources/Tools/Documents/Cost_Transformation_COL_TATA.PDF


2014

May 2014
Corporate and Integrated Reporting
HBS working paper
http://hbswk.hbs.edu/item/7502.html


Jan 2014
Environmental Accounting - ACCA
http://www.accaglobal.com/zw/en/student/acca-qual-student-journey/qual-resource/acca-qualification/f5/technical-articles/Env-MA.html


2009

How to Cut Cost Strategically

Harvard Business Review
Published on 22 Sep 2009
Cesare Mainardi, managing director of Booz & Company, details how executives should cut costs--but often dont.
______________

______________


1997

Effective Management of Future Costs through New Product Target Costing

Effective cost management must start at the design stage. As much as 90-95% of a product's costs are added in the design process. That is why effective cost management programs focus on design and manufacturing. The primary cost management method to control cost during design is a combination of target costing and value engineering.
Target Costing and Value Engineering - Robin Cooper - 1997
https://nraoiekc.blogspot.com/2019/07/target-costing-and-value-engineering.html
Value Analysis and Engineering - Online Book



Financial, Cost and Management Accounting - Review Notes List




Updated on 28 July 2019,  29 May 2019,  10 December 2015













June 28, 2020

2.9 Million Cumulative Page Views Registered on 28 June 2020



28 June 2020
2.9 million


28 June 2018
2.41 Million Page Views Registered on 28 June 2018

At 10.38 pm IST
2,418,131 page views


28 June 2014

Million Page Views Registered on 28 June 2014

At 9.09 pm Indian Standard Time

http://nraomtr.blogspot.com  registered 1,000,000 page views

____________________




____________________

Million Page Views for the Blog - Top Posts
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____________________

Audience - Country Breakup
80% global audience

____________________




____________________

Got a message from Google+ that the photos are awesome.

Updated on 28 June 2018, 28 June 2014

Brain Stilling - Brain Storming for Effective Decisions




Brain stilling is allowing unconscious mind to work on the problem. The unconscious mind provides intuitive solutions. Brain stilling is also used to understand the others' viewpoint with full concentration on the description provided. Ability to suspend judgment till the other person presents his view completely is important. Top managers need to cultivate the ability to combine intelligences of many people. Spirituality scholars with focus on management even talk of utilizing the universal intelligence in decision making.

Brain storming is a group creativity enhancing technique. In this technique, the members of the group are provided continuous stimulation in the form of ideas presented by others. Some of these ideas may provide the stimulus to bring forth new ideas. Every idea is recorded without any evaluation to encourage further participation by others. Top managers will get the benefit of conscious effort by many in the organization by holding brain storming sessions. The brain storming sessions can be followed by individual suggestions that are communicated after providing more time for external search and individual thinking. There is scope for intuitive suggestions also when time is provided to many for thinking.

After brain storming, some time can be given for brain stilling to allow time for the unconscious to bring out from the depths of one's mind and brain some thing interesting that is of use to solve the problem under investigation.


Meditation and Brain Stilling

Patanjali

The definition of meditation (or yoga) by Patanjali as “restriction (or stilling) of the fluctuations of the mind” (cf, Woods, 1927/2003, p. xxx, 8).

According to Patanjali, five types of fluctuations of mind should be overcome in order to attain concentration (meditation): (1) veridical cognition on the basis of perception, logical reasoning, and verbal communication, (2) illusory imagination, (3) linguistic conceptualizations, (4) sleep, and (5) memory (Woods, 1927/2003; Rao, 2011, p. xxx, 17ff). These fluctuations corresponds to, roughly speaking, the full range of mental states which the mind may pass through during normal life activity as they are described in modern psychology.

Although different schools of meditation use specific techniques and procedures (Focused Attention, Open Monitoring, Nondual Awarenes etc., cf, Josipovic, 2014), the ultimate aim always includes some form of “restriction (or stilling) of the fluctuations of the mind.”

Meditation is a whole-brain (body) activity and needs characterization in terms of whole brain dynamics. The research strategy might follow the non-reductionist proposal of Edelman (2003) and Edelman and Tononi (2000 p. 18f) and concentrate on the brain processes, not just the brain areas, that support consciousness, and examine what kind of neural interactions may explain the fundamental properties of consciousness such as phenomenological unity, differentiation, variability and informativeness, that may reveal characteristics conforming to the phenomenological descriptions of the target states (e.g., rest vs. various forms and states of meditation).

Front. Psychol., 03 July 2015 | https://doi.org/10.3389/fpsyg.2015.00915
Patanjali and neuroscientific research on meditation
Klaus B. Bærentsen*
Department of Psychology and Behavioral Sciences, University of Aarhus, Aarhus, Denmark
https://www.frontiersin.org/articles/10.3389/fpsyg.2015.00915/full

Joseph Goldstein - Insight Meditation Society, USA
Updated on 14 May 2019, 3 April 2017

Behavioral Issues in Operations Management

#AtoZChallenge 2019 badge


Online MBA Management Theory Handbook 






The subject "Organizational Behavior" discusses behavioral issues related to organizations and their management.

The textbook on the subject by Fred Luthans covers the following topics under the major areas.

Cognitive Processes


Perception and Attribution
Personality and Attitudes
Motivational Needs and Processes
Positive Psychology Insights: Optimism, Emotional Intelligence and Self Efficacy


Dynamics of Organizational Behavior


Communication
Decision Making
Stress and Conflict
Power and Politics
Groups and Teams


Managing Organizational Behavior


Managing Performance through Job Design and Goal Setting
Behavioral Performance Management
Effective Leadership Process

Operating departments employ the maximum man power in organizations generally. Therefore issues of people behavior have to be understood by them to select, train, and direct people effectively and efficiently. All the above behavioral issues are relevant in operations management and business education programs include the subject of organizational behavior as a core course.

As an illustration, the issue of downward communication can be examined.

Downward Communication


Luthans cited Katz and Kahn and gave five basic purposes of downward communication.

1. To give specific directives and instructions related to tasks and jobs.
2. To give information about organizational procedures and practices.
3. To provide information about the rationale of the job.
4. To tell subordinates about their performance (give feedback)
5. To provide ideological information to facilitate the indoctrination of goals.

Luthans says, managers are undertaking only the first two types of communication. Such a practice is having negative effect. Communicating the ideology of the organization (mission and vision), explaining the role of the job in the vision achievement and feedback about job performance greatly benefit the organization. Visionary Leadership for Operations Management explains how aligned vision is important dimension for effective organizational performance. In the downward communication, concern for the task, concern for people and mechanism to align vision are to be there.

Summary of each chapter of Organizational Behavior is available in:
Organizational Behavior Book by Fred Luthans - Review Notes



The Human Factor in Works Management - 1912


Operations management began in the later years of 19th century as shop management and works management. It is interesting to note that issues related to managing men were treated as the most important area in management and early papers presented in American Society of Mechanical Engineers were in the area of managing men. In 1912, James Hartnell, a member of ASME authored the book, The Human Factor in Works Management. He covered two topics, The value of Habit and The inertial of Habit in that book.

The human factor in works management
by Hartness, James, 1861-1934
Publication date 1912
https://archive.org/details/humanfactorinwo01hartgoog/page/n7


THE PSYCHOLOGY OF MANAGEMENT 

The Function of the Mind in Determining,Teaching and Installing Methods of Least Waste
BY
L. M. GILBRETH, M. L.
STURGIS & WALTON COMPANY
1914

CONTENTS

CHAPTER I DESCRIPTION AND GENERAL OUTLINE OF THE PSYCHOLOGY OF MANAGEMENT

Definition of Psychology of Management Importance of the Subject Purpose of this Book
Definition of Management The Three Types of Management Possible Psychological Studies
of Management Plan of Psychological Study Here Used Underlying Ideas or Divisions of
Scientific Management Outline of Method of Investigation Conclusions to be Reached.

CHAPTER II

INDIVIDUALITY

Definition of Individuality Place of Individuality in Psychology Individuality Under Tradi-
tional Management Individuality Under Transitory Management Individuality Under Scientific
Management Selection of Workers Separating Output Recording Output Separately Individual Tasks Individual Instruction Cards Individual Teaching Individual Incentives Individual Welfare Summary: (a) Effect of Individuality upon Work; (b) Effect of Individuality upon Worker.

CHAPTER III

FUNCTIONALIZATION

Definition of Functionalization Psychological Use of Functionalization Functionalization
in Traditional Management Functionalization Under Transitory Management Functionaliza-
tion Under Scientific Management Separating the Planning From the Performing Functional-
ized Foremanship The Function of Order of Work and Route Clerk The Function of In-
struction Card Clerk > The Function of Time and Cost Clerk The Function of Disciplinarian
The Function of Gang Boss The Function of Speed Boss The Function of Repair Boss
The Function of Inspector Functionalizing the Worker Functionalizing the Work Itself
Summary: (a) Effect of Functionalization upon the Work; (b) Effect of Functionalization upon
the Worker.

CHAPTER IV

MEASUREMENT

Definition of Measurement Importance of Measurement in Psychology Relation of Measurement in Psychology to Measurement in Management Importance of Measurement in Management Measurement in Traditional Management Measurement in Transitory Management

Measurement in Scientific Management Qualifications of the Observer Methods of
Observation 'Definitions of Motion Study and Time Study Methods of Motion Study and
Time Study Summary: (a) Effect of Measurement on the Work ; (b) Effect of Measurement
on the Worker; (c) Future Results to be Expected; (d) First Step Toward Obtaining These
Results.

CHAPTER V

ANALYSIS AND SYNTHESIS

Definition of Analysis Definition of Synthesis

Use of Analysis and Synthesis by Psychology

Importance of Analysis and Synthesis in Management Place in Traditional Management
Place in Transitory Management Place in Scientific Management The Work of the Analyst

Determining Factor in Amount of Analysis Field of Pyschology in Analysis Qualifications
of an Analyst Worker's Interest in AnalysisThe Work of the Synthesist Results of Synthesist's Work The Task Discussion of the Name " Task " Definition of " Task " in Scientific Management Field of Application of the Task Idea Qualifications of the Synthesist
Summary: (a) Effect of Analysis and Synthesis on the Work; (b) Effect of Analysis and Syn-
thesis on the Worker.

CHAPTER VI

STANDARDIZATION

Definition of Standardization Relation of the Standard to the Task and the Incentive Relation of the Standard to Psychology Purpose of Standardization Standardization Under Tradtional Management Standarization Under Transitory Management Value of Systems Standardization Under Scientific Management

Relation of Standard to Measurement Scope of Standardization Under Scientific Management

Permanence of Results Needs of Standardization Likened to Needs in Field of Spelling -
Standard Nomenclature Advantages of Mnemonic Symbols Standard Phraseology The
Standard Man Standard Means of Conveying Information Definition of the Instruction Card

Detailed Description of the Instruction Card Value of Standard Surroundings Necessity for
Proper Placing of the Worker Standard Equipment Standard Tools and Devices Standard
Clothing Standard Methods Rest from Fatigue Standardization of Work with Animals
Standard Quality Standard "Method of Attack" 'Summary: (a) Effect of Standardiza-
tion on the Work; (b) Effect of Standardization on the Worker; (c) Progress of Standardization
Assured.

CHAPTER VII

RECORDS AND PROGRAMMES

Definition of Record Records Under Traditional Management Records Under Transitory
Management Records Under Scientific Management Criterion of Records Records of Work
and Workers Records of Initiative Records of Good Behavior Records of Achievement
Records of " Exceptions " Posting of Records

Summary of Results of Records to Work and Worker Definition of Programme Programmes Under Traditional Management Programmes Under Transitory Management 'Programmes Under Scientific Management Programmes and Routing Possibility of Prophecy Under Scientific Management Summary of Results of Programmes to Work and Worker

Relation Between Records and Programmes Types of Records and Programmes Interrelation of Types Illustrations of Complexity of Relations Possibilities of Eliminating Waste
Derivation of the Programme Summary: (a) Effect of Relations Between Records and Pro-
grammes on the Work; (b) Effect on the Worker.

CHAPTER VIII

TEACHING

Definition of Teaching Teaching Under Traditional Management Faults Due to Lack of
Standards Teaching Under Transitory Manageagement Teaching Under Scientific Management

Importance of Teaching Conforming of Teaching to Psychological Laws Conservation
of Valuable Elements of Traditional and Transitory Management Scope of Teaching Source
of Teaching Methods of Teaching Instruction Cards as Teachers Systems as Teachers
Drawings, Charts, Plans and Photographs Functional Foremen as Teachers Object Lessons as Teachers Training the Senses Forming Good Habits Importance of Teaching
Right Motions First Stimulating Attention Forming Associations Educating the Memory

Cultivating the Imagination Developing the Judgment Utilizing Suggestion Utilizing Native Reactions Developing the Will Adaptability of Teaching Provision of Places for
Teaching Measurement of Teaching Relation of Teaching to Academic Training and Vocational Guidance Summary: (a) Result of Teaching in the Work; (b) Result of Teaching to
the Worker; (c) Results to be Expected in the Future.

CHAPTER IX

INCENTIVES

Definition of Incentive Importance of Incentives Direct and Indirect Incentives Definition of Reward Definition of Punishment Nature of Direct Incentives The Reward Under Traditional Management The Punishment Under Traditional Management The Direct Incentive Under Traditional Management Incentives Under Transitory Management Rewards
Under Scientific Management Promotion and Pay Relation of Wages and Bonus Day
Work Piece Work Task Wage - Gain Sharing Premium Plan Profit Sharing Differential Rate Piece Task Work with a Bonus Differential Bonus Three Rate Three Rate with Increased Rate Other Rewards Negative and Positive Punishments Fines and Their Disposal Assignment to Less Pleasant Work Discharge and Its Elimination Use of Direct Incentives Summary: (a) Effect of Incen-
tives upon the Work; (b) Effect of Incentives upon the Worker.

CHAPTER X

WELFARE

Definition of Welfare " Welfare " and "Welfare Work" Welfare Under Traditional Management Welfare Work Under Traditional Management Welfare Under Transitory Management Welfare Work Under Transitory Management Welfare Under Scientific Management Physical Improvement Mental Development Moral Development Interrelation of Physical, Mental and Moral Development Welfare Work Under Scientific Management Summary: (a) Result of Welfare to the Work; (b) Result of
Welfare to the Worker.

Chapter summaries are being prepared for Lilian Gilbreth's Book

1. The Role of of the Mind - Psychology in Productivity Management - Scientific Management - Lilian Gilbreth
https://nraoiekc.blogspot.com/2019/04/the-role-of-of-mind-psychology-in.html


Introduction to Organizational Behavior - Online Book

May - Management Knowledge Revision - Cost and Management Accounting and Organizational Behavior

Updated on 19 May 2019, 2 April 2019









Zero-Based Productivity Management

Online MBA Management Theory Handbook 



Last Post of Operations Management A to Z Articles - 2019 A to Z Blogging Articles

_____________

_____________

Zero-Based Productivity - Cost Savings


When implemented throughout the enterprise, zero-based productivity can not only create a fit-for-purpose cost structure but also free up funds to invest in strategic growth initiatives. When zero-based productivity is rolled out as an overarching philosophy to promote a high-performance culture, an organization can achieve cost savings of 10 to 40 percent (depending on the spending area) while allocating more resources to strategic priorities. - McKinsey Consultants


Zero-Based Productivity Management


McKinsey consultants provided the concept of zero-based productivity based on zero-based budgeting to provide a new direction to productivity management.

The idea of zero-based productivity proposed by them has application in planning, organizing, resourcing, directing, and control, the five functions of management.

Budgeting basically is planning. The consultants published an article explaining its role in organizing. Resources have to removed from low value generating activities and have to be allocated to new strategic initiatives. That is the main theme of zero-based productivity. The culture of the organization needs to be changed. Culture is basically behavior and hence it is part of directing function of management. The whole exercise is aimed at increasing effectiveness and efficiency. Hence control action is required to see that new plans are implemented through new organizations, newly acquired or modified resources, new behavior or processes. Also measurement of results has to be done and to take feedback based action to move the enterprise in the desired direction.


Zero-based Productivity - Basic Concept

Zero-based productivity: The power of informed choices

July 2018  Article

In this article, the first in a series, we examine the distinctive elements of zero-based productivity.

When implemented throughout the enterprise, zero-based productivity can not only create a fit-for-purpose cost structure but also free up funds to invest in strategic growth initiatives. When zero-based productivity is rolled out as an overarching philosophy to promote a high-performance culture, an organization can achieve cost savings of 10 to 40 percent (depending on the spending area) while allocating more resources to strategic priorities.

Internal and external benchmarks, from relevant peers as well as across internal markets and functions, are used to intelligently challenge current spending levels. These comparisons provide business leaders with the perspective to gauge the full potential savings available to their company and turn that potential into year-over-year targets for each function and market. 

Zero-based productivity is an exercise to realign a company’s profit-and-loss statement with its strategic priorities. The organizaton may decide to operate  with a smaller cost base or by redirect spending to more productive investments. The structural and cultural elements of zero-based productivity help to guide organizations and their management teams to achieve performance improvements. The journey toward productivity is more than a planning and budgeting activity, Executives should view it as a significant mind-set shift initiative that requires change management and system improvements to help employees deliver more than they ever thought possible.

About the author(s)
Søren Fritzen is a senior partner in McKinsey’s Copenhagen office; Matt Jochim is a partner in the London office; Carey Mignerey is a partner in the Atlanta office; and Mita Sen is an associate partner in the Zurich office.
https://www.mckinsey.com/business-functions/operations/our-insights/zero-based-productivity-the-power-of-informed-choices


Building the zero-based culture
November 2018  Article
By Ronald Falcon, Hanspeter Hueter, Matthew Maloney, and Abhishek Shirali

ZBB evolves into zero-based productivity (ZBP), a performance-improvement dynamo that transforms the entire enterprise—achieving the ideal of fact-based, data-driven decisions that boost sales, reduce waste, and accelerate improvement year after year.

Zero-based productivity—Marketing



Zero-based productivity—Marketing: Measure, allocate, and invest marketing dollars more effectively
August 2018  Article
By Jeff Jacobs, Roberto Longo, Mita Sen, and Björn Time

Marketing is a function for consumer engagement,sales and revenue. Its costs can account for more than 10 percent of revenues in many consumer-facing businesses and this cost has to be understood and spent wisely. Waste in marketing cost has to be identified and eliminated.


Zero-based Productivity - Organization Redesign


Zero-based productivity—Organization: Using zero-based principles to forge a purpose-built organization
December 2018| Article
By Onno Boer, Shaun Callaghan, Mita Sen, and Alexander Thiel


McKinsey consultants have published a series of articles on zero-based productivity. This article is on zero-based organization.

Using zero-based principles as a lens to assess organization combines planning for  effectiveness  and efficiency. With this approach, companies can capture significant efficiencies while upgrading capabilities and increasing effectiveness across functions. These principles also can ensure that the highest-value roles within the organization are clearly identified and staffed with the most qualified workers.

Traditional approaches to operations can miss opportunities to harness technology to boost efficiency. Assuming the current organizational structure as a starting point  can hinder efforts to improve efficiency and reduce costs. Zero-basing organization, using  zero-based principles as a lens to reshape organizational structure and operations, can unleash greater productivity. In the zero based organized structure,  enterprise ensures that staff and resources are allocated to the highest-value areas of the business.


Zero-based Productivity - The Supply Chain Redesign



Zero-based productivity: Going granular and end-to-end across the supply chain
March 2019  Article
By Matt Jochim, Rehana Khanam, Cecilia Martensson, and Curt Mueller


By undertaking zero-based productivity improvement programes in supply chain, businesses have achieved overall cost savings of up to 50 percent. Rigorous productivity management and the right productivity improvement methods and techniques have to be in place to capture and sustain this level of improvement.
https://www.mckinsey.com/business-functions/operations/our-insights/zero-based-productivity-going-granular-and-end-to-end-across-the-supply-chain



Related article

Productivity Management in Operations Management






Low Inventory Lean Production and Service System



The word lean system was coined in the context of inventory held as work in process or progress by companies. Lean systems hold less inventory in comparison to bulk inventory systems. Toyota initiated the lean inventory or JIT inventory system. They made many modifications to their production system to develop a low inventory that delivered products at less cost at lower production batch quantities.

Now, we explain that lean enterprises deliver maximum performance and minimum resource consumption. A win win situation for the consumer, producer and therefore the society (economy).

The lean enterprise concept was developed by Toyota through a trial and error method to produce automobiles at low volume with high productivity. In Japan, others copied slowly as they learned about the system and implemented its practices. As Japanese companies started producing in various other countries, the practices started diffusing.

IMVP, a research study on automobile industry, codified the Japanese production and enterprise system into the concept of Lean Production System and Enterprise.


__________________


___________________



PWC - Companies have scope to reduce their working capital

PWC's Annual Global Working Capital Study - 2018/19

1.3 trillion Euros can be released by global listed companies by improving working capital management.

The three items of working capital that need to be managed

1. Inventory
2. Assets Receivable
3. Assets Payable

Inventory Reduction Methods and Techniques


Lean and Agile Supply Chain Strategies
Global Coordination (Supply chain management activity)
Forecasting techniques
Production planning
Inventory tracking (Use of IoT and RFIDs)
Balancing Cost, Cash and Service Level Considerations
Inventory parameters and controls defining target stocks (SMED, Poka Yoke)
Inventory Replenish Methodologies (Kanban)

Lean Systems in Practice
Lean System in Lantech - 2004 Onwards
https://nraomtr.blogspot.com/2014/02/lean-system-in-lantech-2004-onwards.html

The Lean Revolution in Lantech - 1992-2003 - Womack and Jones
http://nraomtr.blogspot.com/2014/02/the-lean-revolution-in-lantech-1992-2003.html

Popular Post of A to Z April 2019 Blogging


Industrial Engineering and Operations Management - Distinction and Combination
https://nraomtr.blogspot.com/2019/04/industrial-engineering-and-operations.html


Updated on 20 May 2019, 13 April 2019

Youthful Organization


Maintaining Youth of the Organization and Preventing Old Age

“Like people and plants, organizations have a life cycle. They have a green and supple youth, a time of flourishing strength, and a gnarled old age. But organizations differ from people and plants in that their cycle isn't even approximately predictable.  An organization may go from youth to old age in two or three decades, or it may last for centuries."  John W. Gardner in 1965 October Issue of  Harper's.

So keeping an  organization youthful is a top management challenge.

Comparing an organization to an animal in biological terms is useful. But as we see now-a-days, the average productive age of humans has increased and some individuals are running marathon at age 71 at almost with the same time that they recorded at the age of 21, organization can maintain their strength and energy for many many years. There are certain organizations who completed 100 years of their existence and still going strong. Of course there are many examples of company closures and mergers who far outnumber the 100 year old organizations. That is why maintaining a youthful organization that can research the market, develop new products, produce them, sell them and service them with the same vigor as it was doing in its earlier years.


Actively hiring young employees periodically is way for maintaining the youthful organization. The company must be ready to train young people for front line operating jobs, supervisory positions and manager level positions.

One example is,  Starbucks  engaging its supply chain in partnership with LeadersUp, a new workforce intermediary, to increase the hiring of  youth. LeadersUp  offers multiple services: identifying barriers to youth employment across the supply chain, designing employer-led interventions (training, on-the-job mentoring, and organization redesign to create career pathways for opportunity youth), and measuring the return on investment of youth hiring activities.






Crises in a Developing Organization
by Gordon L. LippittWarren H. Schmidt
Harvard Business Review, NOVEMBER 1967
https://hbr.org/1967/11/crises-in-a-developing-organization


Life Cycle Models of the Organization


The Greiner Model - Larry E. Greiner

Cameron and Whetton Model

Ainsworth - Land Model

Noel Tichy's Model

Source: Designing Effective Organizations: Traditional and Transformational Views
David K. Banner, T. Elaine Gagné
SAGE, 1995 - Business & Economics - 480 pages

This book on organization theory adopts a distinctive stance. In contrast to the traditional rational approach, it develops a transformational perspective which focuses on the organizational world as a projection of each organizational member's consciousness. While covering all the basic topics of organization theory, the author's approach reflects today's changing management paradigms.
https://books.google.co.in/books?id=RVjyaVvEGHoC



The Effective Organization: Forces and Forms

Magazine: Winter 1991 January 15, 1991
Henry Mintzberg
https://sloanreview.mit.edu/article/the-effective-organization-forces-and-forms/

This article builds a framework and proposes that the effective organization has to solve a jigsaw puzzle with LEGO pieces. The organizations experience forces and it has to redesign itself to survive and prosper under the action of these forces. It is a powerful framework by which to diagnose and deal with the problems organizations face according to the author..

First is the force for direction
Next is the force for efficiency,
Across from the force for efficiency is that for proficiency
Below efficiency is the force for concentration
At the bottom right is the force for innovation
Finally, two forces called catalytic: cooperation and competition.

Forms or Configurations

The entrepreneurial form - direction
The machine form - efficiency,
The professional form - proficiency
The adbocracy form -  concentration
The diversified form - innovation
Ideological and the political forms


Experience shows that the dominant force sometimes dominates to the point of undermining all the others. For example, the quest for efficiency in a machine organization can almost totally suppress the capacity for innovation, while in an adhocracy the need for some modicum of efficiency often gets suppressed. This phenomenon is termed contamination

Each configuration is capable of driving itself out of control. That is to say, each contains the seeds of its own destruction.

Truly effective organizations do not exist in pure form. What keeps a configuration effective is not only the dominance of a single force but also the constraining effects of other forces. This is termed containment.

Combination is a mixture of pureforms.

The authors said in a sample of 123 companies, in just over half the cases—sixty-six, the students felt that a single form fitted best. Twenty-five entrepreneurial, thirteen machine, eleven diversified, nine adhocracy, and eight professional organizations were observed. The rest were termed  combinations—seventeen different ones in all. Diversified machines were the most common (nine), followed by innovative professionals (eight), entrepreneurial professionals (six), and entrepreneurial machines (five).7


Top Management Challenges


This article is part of #AtoZChallenge 2017 for Blogging Posts. My Theme for the Challenge is Top Management Challenges - Full List of Articles  http://nraomtr.blogspot.com/2016/12/a-to-z-2017-blogging-challenge-top.html


To Know More About A to Z Blogging Challenge

June 22, 2020

Evolution of Marketing Management

Browse Online MBA Management Theory Handbook 



Following (and citing) Frederick Winslow Taylor’s (1903, 1911) influential work on scientific management, which discussed efficiently organizing manufacturing tasks for mass production, Shaw (1914, 1916) described the problem of efficiently organizing marketing functions for mass distribution.

“The first era, from 1900 to 1957, dealt with the emergence of the marketing discipline,  when the traditional schools of thought emerged.” The “modern era” was said to have begun after publication of Wroe Alderson’s (1957) revolutionary book, which resulted in “a proliferation of schools of marketing thought”.

Edward D. Jones of Michigan State University in 1902, James S. Hagerty at The Ohio State  University in 1902-03, and George M. Fisk at the University of Illinois in 1903-04, up to Ralph Starr Butler’s “Principles of Marketing” type course at the University of Wisconsin in 1910-11; that Butler published a textbook titled Marketing Methods in 1914, when his chronology ends.

Butler’s, 1914 book would have started his “pioneering period”, a publication that Maynard credited as the first textbook with the term “marketing” in its title.

Kotler and Keller (2003) is one of the few marketing writers to describe both Ansoff and Porter’s approaches to corporate strategy; however, he treats growth (Ansoff, 1965; Porter, 1985) and generic (Kotler and Keller, 2003) strategies independently and makes no attempt at reconciling the incongruities between them.

Early marketing strategy concepts

Before marketing strategy developed as an off-shoot of marketing management in the 1970s, even before marketing management emerged as a school of thought in the 1960s to replace the traditional approaches to marketing (Bartels, 1988; Sheth et al., 1988; Shaw and Jones, 2005), a few isolated concepts were developed in the 1950s literature that form the core of modern marketing strategy. These seminal concepts include: Borden’s (1957, 1964) expression of the “marketing mix,” Smith’s (1956) development of “product differentiation” and “market segmentation” as alternative marketing
strategies, Dean’s (1951) conception of “skimming” and “penetration” as alternative pricing (that he extended to the whole marketing mix) strategies, and Forrester’s (1959) description of the “product life cycle (PLC).”

With Levitt’s (1965) classic HBR article: “Exploit the product life cycle,” the PLC entered the rapid growth stage of its own life cycle. Subsequently, numerous literature reviews and meta-analyses have appeared summarizing the extant PLC literature and analyzing its strengths and weaknesses (e.g. Buzzell, 1966; Dhalla and Yuspeh, 1976; Polli and Cook, 1969; Smallwood, 1973); with one of the most comprehensive analyses in a book by Wasson (1974) and a special section in the Journal of Marketing guest edited by Day (1981). The PLC has both supporters and critics.








Edward David Jones
First  Professor of Marketing
Taught first university course in marketing. 1902
https://books.google.co.in/books?id=7t3GBQAAQBAJ&pg=PT30#v=onepage&q&f=false


History of sales methodologies
https://www.membrain.com/blog/a-brief-history-of-modern-sales-methodologies-for-sales-leaders


History of Marketing
https://en.wikipedia.org/wiki/History_of_marketing


Hans Domizlaff, 1939, Brand Technology, 22 laws of advertising
http://wikipedia.qwika.com/de2en/Hans_Domizlaff


The Rise of Marketing and Market Research
H. Berghoff, P. Scranton, U. Spiekermann
Springer, 29-Oct-2012 - History - 312 pages
This volume serves up a combination of broad questions, theoretical approaches, and manifold case studies to explore how people have sought to understand markets and thereby reduce risk, whether they have approached this challenge with a practical view based on their own business acumen or used the tools of scholarship.
https://books.google.co.in/books?id=UYBAAaJi50IC


Rowntree and the Marketing Revolution, 1862-1969
Robert Fitzgerald
Cambridge University Press, 2006 - Business & Economics - 768 pages
Rowntree and the Marketing Revolution, 1862-1969 is a major study in the history of marketing in economic development, in addition to being a history of a well-known international company. Marketing history remains a neglected field of study, yet Rowntree's commercial success has been the direct result of applied marketing methods and major advances in product development, branding and advertising. It is surprising that marketing and mass consumption has been so neglected; yet Rowntree was a marketing pioneer. The company had in addition a prominent role in questioning managerial organization, business culture, industrial relations, restrictive practices, and multinational business. This book offers a comprehensive account of a company and its industry, but pursues themes and seeks to answer areas of debate, illuminating the ways in which marketing contributed to the growth of an enterprise.
https://books.google.co.in/books?id=EqIQbwHYn-AC


Old School: 5 Killer Examples of Content Marketing in History
by Shayla Ebsen on 04/01/2013
https://mediashower.com/blog/old-school-5-killer-examples-of-content-marketing-in-history/

1904: Jell-O recipe book

1907
J.L. Stearns of Elmore Country was marketing here yesterday.
https://www.newspapers.com/clip/30672437/j_l_stearns_marketing_1907saved/


ECONOMIC ADVERTISING
Vol. 1, No. 1,  September, 1908
https://archive.org/details/marketing1909toro/page/n4

Advertising - An Essay in 1909
https://nraomtr.blogspot.com/2019/07/advertising-essay-in-1909.html


1910
Scientific Management in Marketing
https://books.google.co.in/books?id=_q-NSAm-vqgC&pg=PA41#v=onepage&q&f=false


1914
Definition of Marketing by Butler
https://books.google.co.in/books?id=IAs4_LSzUJMC&pg=PA15#v=onepage&q&f=false

1916
Western Australia Wheat Marketing Act
https://www.legislation.wa.gov.au/legislation/statutes.nsf/law_a143870.html

1918
Marketing Methods (1918) by Ralph Starr Butler

1920
The elements of marketing,
Author: Paul Terry Cherington
Publisher: New York, The Macmillan Company, 1920
https://archive.org/details/elementsofmarket00cheriala/page/n6



Brand Management 1931

The story of  brand management began on May 13, 1931, with an internal memorandum from Neil McElroy (1904-1972),  who had come to P&G in 1925 right after his graduation from Harvard College. While working on the advertising campaign for Camay soap, in a now-famous memo, he argued that more concentrated attention should be paid to Camay, and by extension to other P&G brands as well. In addition to having a person in charge of each brand, there should be a substantial team of people devoted to thinking about every aspect of marketing it. This dedicated group should attend to one brand and it alone. The new unit should include a brand assistant, several "check-up people," and others with very specific tasks.

The concern of these managers would be the brand, which would be marketed as if it were a separate business. In this way the qualities of every brand would be distinguished from those of every other. In ad campaigns, Camay and Ivory would be targeted to different consumer markets, and therefore would become less competitive with each other. Over the years, "product differentiation," as business people came to call it, would develop into a key element of marketing.

McElroy's memo made good sense to P&G management, and its proposals were approved up the corporate hierarchy and endorsed with enthusiasm by President Deupree.

Thus was born the modern system of brand management.
https://hbswk.hbs.edu/archive/american-business-1920-2000-how-it-worked-pg-changing-the-face-of-consumer-marketing

Kotler 1967

Philip Kotler published his first edition of "Marketing Management" in 1967.

First Edition

Kotler's big idea in 1967 was that companies ought to be driven by customers and markets, rather than by the intuition of marketing executives. He went on to bring analytical thinking into the marketing field to add to the rich description of markets.

Kotler's stated that  marketing needed more logical processes for making decisions and he based his textbook on ideas synthesized from economics, behavioral science, management theory and mathematics.

Kotler had been trained as an economist at the University of Chicago and MIT. As a result, he introduced mathematical models to help companies allocate marketing resources, including setting the size and goals of the sales force. The companies need a process for making decisions about how many salespeople to hire, how much to spend on advertising, how much to spend on sale promotion which was not available. Kotler filled the gap.

Kotler's original goal was to write a textbook to use in his own classes but  he was delighted and surprised to see his become a big success.

Kotler joined the Kellogg School faculty in 1962 and is now the  Distinguished Professor of International Marketing.
https://nraomtr.blogspot.com/2015/01/philip-kotler-prefaces-to-marketing.html



Marketing Theory: Philosophy of Science Perspectives
Ronald F. Bush, Shelby D. Hunt
Marketing Classics Press, 15-Oct-2011 - Business & Economics
https://books.google.co.in/books?id=W4phEfAbHBQC


Updated on 22 June 2020,  25 December 2019,  5 August 2019, 20 July 2019



June 19, 2020

Demand Driven MRP - DDMRP - Material Requirement Planning

Online MBA Management Theory Handbook 



Supply Chain Redesign and Performance Improvement - Zero-Based Productivity Management of Supply Chain - McKinsey Way Supply Chain Industrial Engineering

DDMRP provides theory and software for combining MRP/ERP with various improvement methods that attacked inventory to improve inventory productivity and reduce cost of production-distribution system - supply chain.

DDMRP - SUPPLY CHAIN MRP & TECHNOLOGY FOR A DEMAND DRIVEN WORLD


The mantra of DDMRP is “position, protect, and pull”.  The planning and execution steps of  DDMRP are:


  • Strategic inventory positioning
  • Buffer profiles and levels
  • Dynamic adjustments
  • Demand driven planning
  • Visible and collaborative execution.

The five steps of DDMRP
Jakob Björklund,  Oct 12, 2018
https://blog.ifsworld.com/2018/10/the-five-steps-of-ddmrp/


About DDMRP


The term “demand driven” was introduced by PeopleSoft in 2002.  In 2007, American Manufacturing Research gave the term a re-birth by using it as a part of their “Demand Driven Value Network”.

In 2011, Orlicky’s Material Requirements Planning (Ptak and Smith) published the first blueprint of Demand Driven Material Requirements Planning positioning it as a new demand/supply management logic.
https://www.demanddriventech.com/ddmrp-for-beginners/

Demand Driven MRP supply chain software


Our Demand Driven MRP supply chain software provides next generation materials, inventory and production control planning and execution applications for global manufacturers and wholesale distributors who need to align inventory to true market demand, compress lead times, improve service levels and increase visibility across the supply chain.

It is compatible with any enterprise ERP solution.

https://www.demanddriventech.com/


MEIO (enabling DDMRP concepts) - OMP Plus optimizes inventory 

Multi-Echelon Inventory Optimization (MEIO) calculates optimal safety stock values at every echelon of the supply chain for Make-To-Stock items. To do so, MEIO extends the single-echelon safety stock logic using desired service levels, observed demand patterns, forecast and lead times, as well as their variability.
https://ompartners.com/en/planning-functions/MEIO


What is Demand-Driven MRP?



______________

______________


You can see the presentation in:
https://www.slideshare.net/openobject/demand-driven-material-requirements-planning-ddmrp


Demand-Driven MRP in Short (DD MRP) has been introduced into SAP S/4 HANA with its 1709 Release.

14 March 2019

Key Points about DD MRP

It’s Available in SAP From 1709
DD MRP works on Buffer level Stock.
It captures Spikes in Demand
It’s only for selected Materials (high variability)
Stock-outs & overstock will be controlled
It supports MTS, MTO & ATO
It’s a Combination of Pull & Push
It’s not order based planning
It’s not an auto driven tool requires manual interventions.
It requires a lot of calculations and trails.
At the moment it won’t support Fashion, Retail, VC Model

Key Parameters of DDMRP


Identification of material
Maintaining Buffers
Adoption of Sudden Spikes
Manual Interventions
Visible and Collaborative Execution

https://blogs.sap.com/2019/03/24/demand-driven-mrp-part-i-over-view/

SAP S4 HANA Logistics training Demo with explanation on DDMRP
Parminder singh
Published on 5 Jul 2018
_____________

_____________

Detailed Information about DDMRP on Demand Driven Institute Web site

What is ddmrp?
The FIVE COMPONENTS of ddmrp
The INNOVATIONS OF DDMRP
WHY IS IT CALLED DDMRP?
Typical ddmrp results AND CASE STUDIES
GETTING STARTED WITH DDMRP
DDMRP Books
DDMRP COMPLIANT SOFTWARE
THE HISTORY OF DDMRP
https://www.demanddriveninstitute.com/ddmrp
https://www.demanddrivenmrp.com/
FaceBook Page:  https://www.facebook.com/ddmrp/

Ravi Tulsayan - Certified Demand Driven Planning Instructor in India
https://www.facebook.com/kvssnrao/posts/10219996706934337


Global Consultants on DDMRP


Accenture

A road map to demand-driven material requirements planning
JANUARY 15, 2019
https://www.accenture.com/us-en/insights/technology/demand-driven-material-sap

OCTOBER 30, 2018
Humans & machines: New supply chain planning team
Applied Intelligence, the application of intelligent technology and human ingenuity to solve complex challenges. - Architecting the supply chain of the future.
A lean and reliable approach, where boundaries between planning and supply chain execution diminish—we call it “Plani-cution.” Concepts like demand-driven MRP provide a path to run the supply chain solely on sales orders in real time with great automation potential.
https://www.accenture.com/us-en/insights/strategy/supply-chain-humans-machines

Deloitte


A new approach to supply chain management


When it comes to designing supply chains today, it is no longer a  one-off exercise to determine the network. Now its is dynamic engineering and optimization of  the structure as a result of  predictions of  capacities, materials availabilities and demands globally. Planning  dynamically seeks for new disruptions and tries to counterbalance impacts. Intelligent planning algorithms are developed and they do the real time planning. On the shop floor,  the traditional MRP logic is being questioned and introduction of demand driven steering mechanisms is taking plae. Supply chains are composed of  automatic transport and warehousing systems. Modern supply chain management is based on a strong and independent supply chain governance that supports self-organization and powerful IT.

To do this on a real-time basis and efficiently,  standard ERP tools are combined  with new technology. Big data architecture complements the classical ERP landscape and makes use of IoT and AI technologies. Process mining helps to identify the relevant use cases that determine the future architecture. Systems and software are now developed in an agile way through consistent architecture cuts. IT really develops towards OT (Operations Technology).
https://www2.deloitte.com/de/de/pages/operations/articles/digital-supply-chain-management.html

Deloitte Exponential Supply Chain (DESC)


SAP S/4HANA includes new key applications to improve the supply chain dramatically. These modules and others are included in the Deloitte Exponential Supply Chain (DESC), powered by SAP S/4HANA® Enterprise Management. DESC is an SAP®-certified BAiO solution that provides a set of preconfigured business scenarios that can help your organization develop a vision and evolve fast to meet new business demands.

 DESC can show you the “art of the possible” for leveraging SAP S/4HANA supply chain functions.


  • Planning: MRP Live, demand-driven, detailed scheduling
  • The Advanced Available-to-Promise (ATP) function
  • Embedded Warehouse Management (EWM) 


https://www2.deloitte.com/ch/en/pages/technology/solutions/sap-s-4-hana-logistics.html


February 23, 2017
A holistic and transformative approach: demand-driven planning and forecasting
https://consulting.ey.com/demand-driven-planning-forecasting/

KPMG


8 June 2018

How demand-driven is your supply chain? In most cases, the honest answer to that is: not as demand-driven as we’d like it to be.
Demand-driven supply chains correlate to growth
Beginners to Leader in Demand-driven supply chain implementation to reap big increases in profit margins
https://home.kpmg/xx/en/home/insights/2018/06/top-of-mind-2018-supply-chain.html

2016
KPMG’s report, Demand-driven supply chain 2.0 – a direct link to profitability, looks at how rising customer expectations are driving a new approach to the supply chain, based upon increased flexibility and agility.
You can download the report
https://home.kpmg/au/en/home/insights/2016/04/demand-driven-supply-chain-2-0.html

Infographic: Demand-driven supply chain 2.0
26 October 2016
KPMG International’s latest paper, Demand-driven supply chain 2.0: a direct link to profitability, looks at how rising expectations are driving a new approach to the supply chain, based upon increased flexibility and agility. The infographic presents significant benefits possible
https://home.kpmg/vn/en/home/insights/2016/04/demand-driven-supply-chain-infographic.html

2019


SAP Blogs on DDMRP


February 10, 2019
DDMRP for IBP-Inventory
https://blogs.sap.com/2019/02/10/ddmrp-for-ibp-inventory/

February 17, 2019
S/4HANA Demand Driven MRP (DDMRP) Functionality
Lingaiah Vanam
https://blogs.sap.com/2019/02/17/s4hana-demand-driven-mrp-ddmrp-functionality/

March 19, 2019
Demand Driven Replenishment DDMRP in S/4 HANA- Configuration Setup
https://blogs.sap.com/2019/03/19/demand-driven-replenishment-ddmrp-in-s4-hana-configuration-setup/

March 24, 2019
Demand-Driven MRP – Part I: Over View
https://blogs.sap.com/2019/03/24/demand-driven-mrp-part-i-over-view/

April 28, 2019
Demand Driven Replenishment in SAP S/4 HANA-Buffer Determination and Execution
https://blogs.sap.com/2019/04/28/demand-driven-replenishment-in-sap-s4-hana/

Other Articles on DDMRP

JANUARY 15, 2019

Accenture - A road map to demand-driven material requirements planning

Through DDMRP’s breakthrough methodology, combined with the power of SAP S/4HANA, we’ve seen clients achieve tangible supply-chain improvement that benefitted the broader business.
https://www.accenture.com/us-en/insights/technology/demand-driven-material-sap

2018

July 11, 2018
ATLANTA--(BUSINESS WIRE)--Demand Driven Technologies (DD Tech), the leading provider of Demand Driven MRP compliant supply chain solutions, today released a series of new innovations for their Replenishment+® NetSuite (R+NS) supply chain solution. Natively-built for Oracle NetSuite, the innovations enable manufacturers and distributors to have unprecedented visibility into supply chain execution and improvement in inventory management.

“These new innovations bring powerful Demand Driven MRP principles to our native NetSuite solution, making supply chain planning and execution easier and more efficient”
https://www.businesswire.com/news/home/20180711005412/en/Demand-Driven-Technologies-Releases-New-Supply-Chain


Michelin Selects Demand Driven Technologies Replenishment+ to Improve Supply Chain Planning and Execution
BY BUSINESS WIRE
JUNE 12, 2018
http://www.sys-con.com/node/4280311

Why Successful Supply Chain Digitalisation will have to include Demand Driven MRP
March 26, 2018
Simon Eagle
Supply Chain Transformation at Rotork
https://www.linkedin.com/pulse/why-successful-supply-chain-digitalisation-demand-driven-simon-eagle/


OPEN ACCESS
Effective production planning for purchased part under long lead time and uncertain demand: MRP Vs demand-driven MRP
IOP Conference Series: Materials Science and Engineering, Volume 337, conference 1, 2018
https://iopscience.iop.org/article/10.1088/1757-899X/337/1/012055/meta


2017

Demand-Driven Supply Chain Management: Transformational Performance Improvement
Simon Eagle
Kogan Page Publishers, 03-Apr-2017 - Business & Economics - 280 pages
Many manufacturing and distribution companies are moving from the traditional 'forecast push MRP' to demand-driven supply chain management (SCM). Demand-driven SCM is an 'end-to-end' supply chain planning and replenishment process that enables companies to achieve their planned service levels from up to half the average level of inventory and requiring significantly less throughput capacity - irrespective of the level of demand volatility or lead-time length.

Demand-Driven Supply Chain Management is the go-to source for industry supply chain/operations executives and students. It describes the 'what, how and why' of the demand-driven SCM process. The key themes in the book are: what is demand-driven? why is demand-driven so effective? how to operate a demand-driven supply chain? and how to adopt the demand-driven process in your company? Readers can quickly grasp the essential concepts from one of numerous self-contained sections that present the book's key concepts from different perspectives. Online resources available include full-colour figures.
https://books.google.co.in/books?id=RkqFDgAAQBAJ

Demand-Driven Material Requirements Planning (DDMRP) – The new paradigm in Supply Chain Planning
Today’s challenges in supply chain planning
https://www.camelot-itlab.com/en/company/press-releases/press-articles/demand-driven-material-requirements-planning-ddmrp-the-new-paradigm-in-supply-chain-planning/

Posts by Rui Pedro Dantas in SAP Blogs in 2016 on DDMRP


Demand-Driven MRP – Part I: Introduction
https://blogs.sap.com/2016/06/20/demand-driven-mrp-part-i-introduction/

Demand-Driven MRP – Part II: Why is DDMRP needed?
https://blogs.sap.com/2016/08/01/demand-driven-mrp-part-ii-why-is-ddmrp-needed/

Demand-Driven MRP – Part III: Strategic Inventory Positioning
https://blogs.sap.com/2016/08/22/demand-driven-mrp-part-iii-strategic-inventory-positioning/

Demand-Driven MRP – Part IV: Buffers
https://blogs.sap.com/2016/08/31/demand-driven-mrp-part-iv-buffers/

Demand-Driven MRP – Part V: Buffer Adjustments
https://blogs.sap.com/2016/09/12/demand-driven-mrp-part-v-buffer-adjustments/

Demand-Driven MRP – Part VI: Planning
https://blogs.sap.com/2017/01/16/demand-driven-mrp-part-vi-planning/


2015

Interpreting and Applying Demand Driven MRP: A Case Study

PhD thesis by Mathias Ihme
Nottingham Trend University, 2015
irep.ntu.ac.uk/27704/1/Mathias.Ihme-2015.pdf



DDMRP Research Papers and Theses


2019
Demand Driven MRP: assessment of a new approach to materials management
Romain Miclo, Matthieu Lauras, Franck Fontanili, Jacques Lamothe
International Journal of Production Research
Volume 57, 2019 - Issue 1
We evaluate its effectiveness relative to two other widely accepted approaches – MRP II and Kanban/Lean production – through a series of structured computer simulation experiments. The results strongly indicate that DDMRP does represent a superior approach – one that warrants further academic study.

2018
Material management without forecasting: From MRP to demand driven MRP
Alaitz Kortabarria, Unai Apaolaza, Aitor Lizarralde, Itxaso Amorrortu
Journal of Industrial Engineering and Management
Vol 11, No 4 (2018)

The present analyzes the implementation of DDMRP in a real company. The results clearly show that using DDMRP the company increased visibility in the supply chain. In addition, the inventory level was reduced by 52.53% while material consumption was increased by 8.7%. These results were achieved while maintaining the high service level.
Download the paper from:
http://www.jiem.org/index.php/jiem/article/view/2654


Books

P.226
https://books.google.co.in/books?id=RkqFDgAAQBAJ&printsec=frontcover#v=onepage&q&f=false
2017

Updated on 19 June 2020, 30 May 2019, 26 May 2019