HAMPTON, N.H., July 20, 2017 (GLOBE NEWSWIRE) -- “Because consumers now demand ‘instant gratification’ and have mind-boggling amounts of choice, manufacturing today is driven by demand. To be successful, a manufacturer must have the right products and materials – and enough supply on hand – to fulfill customer expectations,” says Dick Lilly, founder and Chairman of LillyWorks, and well-known developer of highly popular scheduling systems for manufacturers of all sizes.
According to the Demand Driven Institute, “Becoming Demand Driven requires a fundamental shift from the centrality of supply and cost-based operational methods to a centrality of actual demand and flow-based methods.”
“Running out of inventory items at the worst possible time – a common result of executing a plan based on forecasting– is eliminated by the DDMRP features we’ve added to our Protected Flow Manufacturing (TM) software,” Mr. Lilly said. “The new DDMRP features, which are embedded in our ERP system and can work in tandem with any existing ERP system already installed, make sure the manufacturer never runs out of critical inventory items.
“Unlike old-fashioned MRP,” he added, “DDMRP does not try to predict the timing of future supply and demand. Its re-supply recommendations are based on actual consumption rather than forecast. In this way, you are always making more of the items people are actually buying and purchasing materials used to make those items, without the need for midcourse corrections due to variances from forecast.”
Even in an environment where actual demand varies greatly from forecast, DDMRP makes sure that you have enough on hand of each item and enough re-supply on order, both of which together comprise your pipeline. DDMRP also makes sure you never have too much of either.
Mr. Lilly explained, “More than ‘Enough’ replenishment items in the pipeline is too much. If you do not have too much of any single item, much less cash will be tied up in total inventory of all DDMRP-replenished items.”
Protected Flow Manufacturing™ now incorporating Demand Driven MRP simulates the effect of issues concerning resource capacity and material availability that are likely to occur in the future. It uses bill of material, production routing, available capacity and inventory data to present solutions that allow the user to prevent those issues from occurring.
Together, execution and predictive capabilities enable custom, make-to-order manufacturers, and now make-to-stock manufacturers, to deliver to their customers when originally promised.
“This not only improves the company’s reputation for on-time delivery, it also improves productivity and profitability. We’re seeing potential improvements in value-added margin of 10% or more. Imagine, a small change in your operations leveraging a 10% increase in your revenues – all to the bottom-line!” Mr. Lilly said.
About LillyWorks
The Lilly family has been innovating software for manufacturing companies since 1960. LillyWorks serves only manufacturing companies. Fully aware that the needs of manufacturers have changed since last century and that MRP II functionality is no longer good enough, LillyWorks puts Manufacturing Back in ERP™. Lilly Works is headquartered at 4 Merrill Industrial Drive, Hampton, NH 03842. Telephone 603-926-9696 or visit www.lillyworks.com.