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Demand Driven Performance [Anglais] [Relié]

Debra Smith , Chad Smith

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Description de l'ouvrage

20 décembre 2013

Implement demand driven smart metrics to drive dramatic gains in flow and improve ROI performance

What if the objective of minimizing unit product cost that is hard coded into all reporting and measurement systems is simply “bad math” that drives decisions and actions that destroy ROI?

In today’s volatile, globally competitive environment, new decision-making tools are required to monitor, measure, and improve total organizational performance. Adherence to “old” operational rules, tools, and behaviors is killing competitiveness in most enterprises. A fundamental shift is required.

Cowritten by internationally recognized experts in the field, Demand Driven Performance explains why current measurement forms must be replaced. The authors present a demand driven blueprint and the smart metrics to maximize flow and ROI.

“The methods described in this book worked in one of the most complex manufacturing operations that you can imagine with very effective results.” —From the Foreword by Dan Eckermann, former President and CEO, LeTourneau Technologies, Inc.

This practical, timely guide offers:

  • The case against conventional unit-cost-focused metrics, and proof of their negative effects
  • The new rules needed to succeed in the complex and volatile global demand and supply landscape
  • Historical perspectives on flow, cost, and rise and demise of management accounting
  • The evolution of flow and ROI as strategy
  • A case study—the Boeing Dreamliner
  • Instructions on how to design and implement a demand driven information system
  • The smart metrics required to sustain and drive improvements in demand driven operating models

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Biographie de l'auteur

Debra A. Smith, CPA, EMBA, is a cofounder and partner with Constraints Management Group, LLC, a services and technology company specializing in pull-based manufacturing, materials, and project management systems for midrange and large manufacturers. She began her career in public accounting with Touche Ross (now Deloitte Touche), moved to the private sector where she worked as both a controller and a VP of finance for two different publicly traded firms, and then spent seven years as an accounting professor where her research focused on the role of metrics in process improvement. Ms. Smith began working with Dr. Eli Goldratt in 1990. She was elected to the founding Board of Directors of the Theory of Constraints International Certification Organization, serving five years and is certified in all TOC disciplines. Ms. Smith has been active in the Institute of Management Accounting (IMA) and APICS and a keynote speaker on three continents. She is a coauthor of The Theory of Constraints and Its Implications for Management Accounting, the recipient of the 1993 IMA and Price Waterhouse applied research grant, a contributing author for The Theory of Constraints Handbook, and the author of The Measurement Nightmare. Ms. Smith has been at the forefront of developing and articulating smart metrics.

Chad Smith is a partner with the Demand Driven Institute and is a cofounder and Managing Partner of Constraints Management Group, LLC. He has been at the forefront of developing and articulating the blueprint for planning and execution in the twenty-first century—Demand Driven MRP (DDMRP). Mr. Smith is the coauthor of Orlicky’s Materials Requirement Planning, Third Edition and serves as the Program Director of the Certified Demand Driven Planner (CDDP) Program for the International Supply Chain Education Alliance (ISCEA). He is a frequent consultant to large multinational manufacturing and supply chain companies. Mr. Smith is an internationally recognized expert in the Theory of Constraints and is a contributing author for The Theory of Constraints Handbook.


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Amazon.com: 5.0 étoiles sur 5  11 commentaires
4 internautes sur 4 ont trouvé ce commentaire utile 
5.0 étoiles sur 5 A new "Deep Truth" for management with profound implications on how companies must be run. 15 novembre 2013
Par David Poveda - Publié sur Amazon.com
Format:Format Kindle
This is one of the most important management and operations book that I have read in almost 30 years of experience in manufacturing, 16 of them as a consultant in the field. The authors propose a fundamental change in the mindset of almost all top managers, who devote their efforts to increase profits by reducing costs.

The new "Deep Truth", as called by the authors, should be that management must strive and focus their attention in achieving the fastest possible speed of flow of relevant materials and information, as proposed by the First Law of Manufacturing/Operations. This is the real road to profits, growth and sustainability, in an more uncertain, variable and volatile global business environment.

This profound change in the way how companies should be viewed (non-linear, complex, adaptive systems) and managed, implies fundamental changes in operations, information systems, KPI, sales offer design, etc. Smart Metrics derives from this fact.

The authors also present a methodology for operations scheduling and execution that, in my opinion, sets a new frontier.

A must read for any manager, of any level, of any company.
2 internautes sur 2 ont trouvé ce commentaire utile 
5.0 étoiles sur 5 If you are in charge of a supply chain, you really need to read this book! 22 février 2014
Par Bill McKelvey - Publié sur Amazon.com
Format:Relié
There are many amazingly good things in this book. The chapter about Boeing is wonderful. All of you should read it. So are Chapters 10 and 11, which apply complexity science to supply chains. And then there are all the others!
As supply chains get longer, more diversified, multi-country, more time-sensitive, and more complex, focusing on the "average" becomes less functional, if not misleading and meaningless. Why? Most stages of a company's supply chain may be maxing out on efficiency--they don't need attention.
Most managers focus on these efficiencies and gloat over how well most of their logistic path is working. Wrong! What Nassim Taleb calls The Black Swan could be lurking. What is this? There could be one or more stages already highly inefficient for various reasons, or are about to go haywire. This is why Debra and Chad focus on "Pareto Management" in their book.
For some amount of energy, time, and money spent on improving the performance of a supply chain, the best results come from identifying the points in a supply chain that are the least efficient--kill off the Black Swans. Focus on finding the worst performing stage in your supply chain first. Then focus on the second worst, and so on.
How good is your company at finding the places in a supply chain where a "perfect storm" of seemingly random events have combined to create a terrible inefficiency--or are about to stop the flow of your supply chain?
Debra and Chad have written their book to tell you how to the perfect storms of supply-chain management. Given the complexity and uncertainties of modern supply chains, learning about Pareto Management from their book is essential to efficient management and survival in our increasingly competitive worldwide business sectors. What they say will really help anyone in charge of a supply chain.
As Research Professor of Strategic Organizing and Complexity Science at UCLA, I find this book highly relevant to better management, especially of supply chains.
1 internautes sur 1 ont trouvé ce commentaire utile 
5.0 étoiles sur 5 for a better flow this books requires a leaner text with a larger appendix 21 avril 2014
Par Utkan Uluçay - Publié sur Amazon.com
Format:Relié
As an industrial engineer M.Sc. and CDDP by Chad Smith I admit my view is not %100 objective.
If you are familiar to "new normal concept" either by reading or understanding or experiencing then I may safely tell you that this book could have been shorter.
If you are not familiar to "demand driven model concept" I may tell you that this book could have been longer to let you comprehend the concept.
I have read Theory of Constraints Handbook, Orlycky's 3rd ed, Measurement Nightmare, Throughput Accounting,.. and aware of new normal. I suggest you to read free white papers provided in demanddriveninstitute website before buying this book. I certainly suggest you to buy the book anyway but reading those papers before would prepare your mind for this challanging book.
Authors could have inserted their related chapter from Theory of Constraints to enrich the appendix at the end of book..
I do like the historical context starting with Taylor to today ending with Boeing case.
I do like the scientific approach to explain the new normal.
I do like linear (newtonian) and nonlinear system comparison. Evolution starts with linear, progresses as complex adaptive systems and ends with chaos !...
I definitely surprised to witness so many physics professors contributing to understand the world in a cascaded and evolutionary manner. I have never thought Newton from this aspect. I have never connected Einstein, Heisenberg, Bohr, ... with my business ever before. Now I can understand Goldratt as the father of Theory of constraints since he was another physics professor ...
I have impressed with Chapter 10 and 11 deeply.
I wish there are more examples in Chapter 11. I would like to read more about aligning priorities arising from different points.
Go for demanddriven webinars after the book and have your chance to ask your questions to Chad & Debra online...
1 internautes sur 1 ont trouvé ce commentaire utile 
5.0 étoiles sur 5 This is it peoples! If you want your sales and operations deliveries maximized don't think twice. Get this book! 24 février 2014
Par R. Kopf - Publié sur Amazon.com
Format:Relié|Achat vérifié
Forget what you know... Just open your mind... And see for yourself this is really it! The knowledge you need.
Do you want to understand how to get it right in any sales / delivery operation? then get this book. I can say unquestionably the authors of this book are two of the smartest people you will encounter on the subject of maximizing sales and operational throughput. "Cash Velocity" or Inventory Turns or ROI. Do you want to make the most money possible? Read this book.
Why are you here? You are on Amazon because you know you can select an item, you place an order, you know you will receive your item, on time, at the best price. and it will be as advertised. If any of those elements are missing you will not order again. How many operations suffer from missing one of these elements. It's Amazon being dependable what makes you come back. If you are involved in a manufacturing organization and must support sales through delivery you understand how critical it is to perform. What is masked too often is how to make gains that improve the bottom line and support top line growth. The strategies here make it pretty clear. This is the culmination of years of research, solutions tested, solutions realized and select companies are reaping the reward for applying this smarter approach. I can't say enough how relevant this book is to any organization wanting to get it right. Have you read Goldratt's Books on Theory of Constraints? This is the applied science of all that work. It is the bomb diggity as my kids would say. I am the manager of continuous improvement at a factory in Colorado. I've been exposed to manufacturing for over 50 years. whoopdedoo! lol my dad started a manufacturing business still operating today. I've worked directly in manufacturing for 35 years. not that shabby lol. Yes there are smart people in this world but are they using the right information to make decisions? I've seen first hand the mistakes made without a smart strategy. It is so frustrating to suffer as a result of bad decisions. I've also watched a similar company to ours apply this knowledge and have a strategy and do extremely well. So I am doing everything in my power to get others to see how relevant these concepts are. This book breaks down what a complex problem into smaller problems that make the overall problem easier to solve. Think RISC Processing for Operations. It considers measurement of "Flow" as the basis for true cost measurement. Note I have zero affiliation with the authors. I discovered them through my ERP system as it made reference to the authors technology. I have done my own research to believe unquestionably they know their stuff. Feel free to ask me any questions with respect to the journey I've been on and how I am convinced this is the best of the best as a set of solutions I can find.
1 internautes sur 1 ont trouvé ce commentaire utile 
5.0 étoiles sur 5 A "MUST READ" for any forward thinking manufacturing facility! 9 décembre 2013
Par Walter Browning - Publié sur Amazon.com
Format:Format Kindle
This book hits it right on the mark! It is intelligently written, and logical in flow. It deals with a subject that should be embraced with open arms by any forward thinkers in management and planning. This is the concept of the future for any manufacturing facility interesting in growth and increased return on investment. Want to be the leader in your industy? This will lay out the path.
Simple, sound logic, backed by solid mathematics, with easily understood metrics. Read it now, apply your new knowledge, and watch your company prosper into the future.
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