Creating Demand

Demand-Driven Manufacturing Overview

Demand-driven manufacturing is a production approach that aligns manufacturing processes directly with real-time customer demand, rather than relying on forecasts or push-based methods. It focuses on reducing waste, improving responsiveness, and enhancing flexibility by leveraging data and technology to match production closely with market needs. Key features include:

• Real-Time Demand Signals: Uses actual customer orders and market data to guide production decisions.

• Reduced Inventory Levels: Minimizes excess stock and carrying costs by producing only what is needed.

• Improved Lead Times: Increases speed to market by reducing bottlenecks and optimizing workflows.

• Agility and Flexibility: Enables quick response to changing customer preferences and market dynamics.

• Cost Efficiency: Lowers production costs through efficient resource use and waste reduction.

This approach is particularly effective in industries with high variability in demand or where customization is a competitive advantage.

Our approach to using Demand-Driven Manufacturing

The primary customer in our Demand-Driven Manufacturing system is the design team. They play a critical role in initiating the production process by specifying the components needed for their designs, a step commonly referred to as "Creating Demand." This process involves evaluating design requirements, selecting appropriate materials, and ensuring that the necessary parts are either purchased or manufactured to meet project specifications.

Creating demand is more than just ordering parts; it requires a deep understanding of the design's functional needs, material properties, and manufacturing capabilities. This collaboration between design and manufacturing is essential for maintaining efficiency, reducing lead times, and ensuring product quality.

The following sections will provide a detailed overview of the demand creation process, broken down by the different types of part demands, including:

• Purchased Parts: Commercial-off-the-shelf (COTS) components that can be readily sourced.

• Custom Parts: Specialized components requiring unique specifications or fabrication.

• Modified Parts: COTS components that need adjustments before use.

By clearly defining the requirements for each part type, this approach ensures streamlined communication, accurate procurement, and effective production planning, aligning engineering goals with manufacturing capabilities.