Why this course matters
Many industrial companies live with the same paradox: too much inventory in some materials and critical stock-outs in others. The result is a reactive operation — constant urgencies, expedited purchases, production stoppages, excess working capital and conflicts between production, planning, supply chain and procurement.
This course helps participants understand and apply practical demand-driven inventory management — combining Kanban, DDMRP and visual flow control to create systems that are more stable, flexible and aligned with operational reality.
The core problem
Traditional MRP and forecast-based systems assume a stable, predictable world. Industrial operations rarely are. When demand varies, lead times fluctuate and internal reliability is inconsistent, the result is always the same: wrong inventory, in the wrong place, at the wrong time.
Pain points this course helps resolve
- Frequent stock-outs of critical materials
- Excess inventory in low-turnover SKUs
- Low visibility of material shortage risk
- Planning over-reliant on unreliable forecasts
- Weak connection between production, procurement and supply chain
- Recurring urgencies and special expeditions
- High inventory levels without real improvement in service level
- Difficulty managing demand, lead time and production variability
Who this course is for
Designed for professionals who need to transform inventory management into a more visual, collaborative and demand-driven system.
- Plant Managers and Operations Managers
- Supply Chain Managers and Planning Managers
- Production Managers and Continuous Improvement Leaders
- Procurement Managers and Warehouse/Logistics Leaders
- Industrial Engineers involved in inventory reduction or flow improvement projects
What you will learn
- Understand the limitations of traditional forecast-only or MRP-only models
- Differentiate Kanban, traditional safety stock and DDMRP
- Identify materials critical to production flow
- Assess demand variability, lead time, consumption and operational reliability
- Define visual and dynamic buffers to protect flow
- Apply red/amber/green logic to facilitate daily operational decisions
- Create data-driven inventory review routines
- Improve collaboration between production, procurement, planning and supply chain
- Reduce stock-outs without unnecessarily increasing inventory
- Design a simple Kanban or DDMRP pilot in one area of your company
The DDMRP buffer zones
One of the most powerful elements of DDMRP is the visual buffer logic — a simple red/amber/green system that makes inventory decisions intuitive for any operator or planner.
Red Zone — Replenish now
Stock below safety threshold. Replenishment required immediately.
Amber Zone — Monitor closely
Stock in normal operating range. Plan replenishment.
Green Zone — Adequate
Stock at desired level. No replenishment needed.
Course structure
Module 1
Foundations of Inventory Flow
- Inventory as a protection against variability
- Flow, stock and availability — the real relationship
- Impact on cash flow, service level and efficiency
- Why MRP alone is not enough
Module 2
Kanban Fundamentals
- What Kanban is and when to apply it
- Pull vs push systems
- Kanban cards, supermarkets and visual replenishment
- Basic Kanban sizing and common errors
Module 3
Introduction to DDMRP
- What DDMRP is and why it works
- MRP vs Kanban vs DDMRP
- Dynamic buffers concept
- Red, amber and green zones
Module 4
Buffer Positioning & Segmentation
- Identifying strategic materials
- Criticality, lead time, variability
- SKU classification and buffer placement
- Avoiding over-protection
Module 5
Flow Control & Daily Management
- Visual inventory dashboards
- Daily and weekly review routines
- Integrating alerts into operations meetings
- Connection with Tier Meetings
Module 6
Practical Application
- Select a critical material family
- Diagnose current replenishment model
- Identify gaps and causes
- Design a pilot proposal
Duration and format
| Component | Duration |
|---|
| Theory / Conceptual Learning | 6–8 hours |
| Practical Application | 6–10 hours |
| Reflection & Gap Assessment | Included in modules |
| Practical Assignment | Final deliverable |
| Total Recommended Duration | 12–18 hours |
Format: Short practical course — theory, practical exercises, structured reflection and application in real or simulated context. Available blended or on-site.
Practical deliverables
- List of critical materials classified by criticality, consumption, variability and lead time
- Diagnosis of current replenishment model and main gaps
- Proposed Kanban, buffer or DDMRP pilot design
- Implementation plan with owners, review frequency and KPIs
- Recommendations for sustaining through visual management routines
Expected outcomes
↑
Greater visibility over inventory risk and critical material availability
↓
Reduced stock-outs in critical materials without increasing overall inventory
↓
Lower dependency on urgencies and expedited orders
↑
Better alignment between operations, procurement and supply chain
↓
Reduced excess in low-turnover materials
↑
Greater production flow stability
↑
Faster, data-driven decisions
✓
A practical Kanban or DDMRP pilot ready to implement
How this course connects with Operational Excellence
Demand-driven inventory management is directly linked to operational excellence. Without materials available at the right time, production stops. With excess inventory, cash flow suffers. This course connects inventory management with:
Visual Daily Management
Inventory alerts in Tier meetings
Systems Thinking
Flow management across functions
TPM
Equipment reliability affects buffers
Problem Solving
Root cause analysis of stock-outs
Hoshin Kanri
Linked to strategic priorities
Digital Operations
Data-driven replenishment
Waste Reduction
Excess inventory as waste
OpEx Certification
Complements the 12-month programme
