A DDMRP Success Story at Ingelec
Location: Casablanca, Morocco
Industry: Electrical Supply and Components
After completing the DDI training courses: Demand Driven Planner at Agilea and Demand Driven Supply Chain Fundamentals at Ecole Central de Lyon, Hassan HAYOUN, supply chain director of the Moroccan company Ingelec started a DDMRP pilot with his team of planners on 1750 finished product SKUs. Ingelec manufactures electrical equipment in Casablanca with 1100 employees.
The rate of availability of finished products has increased in six months from 82% to 95% with a decrease of 220 SKUs on the alert report per day to 76 SKUs today. The 20% decrease in stock allowed the removal of a 2000 square meters of storage space while the average OEE of the 100 machines in the injection shop increased from 76% to 83%.
Thanks to the development of the Skill Buffer approach, all the members of the Supply Chain team mastered the management of the Stock Buffers and in each of the 5 Ingelec production sites, 3 employees know how to manage the DDMRP inventory alerts.
Comments on DDMRP from Ingelec team members
“The DDMRP methodology has strengthened teamwork between supply, planning, scheduling and storing activities. There are now few changes to the schedule (execution level) after daily analysis of buffer status by line managers and the shop is guided to make parts by physical stock alerts. Following the DDMRP implementation, stockouts of finished products are now one-fourth of the previous demonstrated level. Relations between the site managers have improved due to better management of the common materials between the sites.”
“There are less emergencies, less stress and less chaos; before we found ourselves at work until 8 pm and now regularly leave at 6 pm.”
“We have become independent and autonomous from our manager which has increased the positive visibility and perception of supply chain positions. Everyone is talking about the supply chain department now and we feel useful. We no longer use forecasts and we better manage the priorities of sales people.”
Going Beyond DDMRP
With the goal of deploying the DDAE project across the entire enterprise, starting with the implementation of the DDS&OP process, the Supply Chain Director participated in the public workshop "The Fresh Connection A DDS&OP Experience" on Wednesday, March 15, 2019 in Tangier with other manufacturers who were familiar with the S & OP process but had not yet set up a DDMRP project.
The workshop was so informative about the link between DDMRP and DDS&OP that Hassan immediately (that evening) brought together the Ingelec management committee to organize this workshop with them in Casablanca the next Monday.
After the simulation the team had these comments:
“These simulations allowed us to promote our DDMRP project across departments in order to facilitate its implementation. I look forward to also launching DDMRP as soon as possible on supplies and to see the good results.”
“I am delighted to have participated in this workshop and to have lived this experience. The workshop was rich in learning, via an easy-to-use teaching tool, allowing, in a short time, to understand how DDMRP works.”
“I am convinced that the implementation of DDAE within our company, will allow us to better manage our physical flows, avoid stockouts and shutdown of the production lines, and will optimize inventory levels.”
“These improvements will undoubtedly have a positive impact on the profitability of all the company's activities and, of course, on its Working Capital.”