DFT is based on a set of applied mathematical tools that are used to connect processes in a flow and link it to daily changes in demand.
DFT is intended to provide an alternative to schedule-push manufacturing which primarily uses a sales plan and forecast to determine a production schedule.
DFT uses applied mathematical methods to link raw and in-process materials with units of time and production resources in order to create a continuous flow in the factory.
The objective is to link factory processes together in a flow and drive it to customer demand instead of to an internal forecast that is inherently inaccurate.
In the early years, DFT was regarded as a method for "just-in-time" (JIT), which advocated manufacturing processes driven to actual customer demand via Kanban.
Later, it has come to be seen as a lean manufacturing method that allows factories to implement techniques such as one-piece flow, TAKT-based line design, Kanban material management and demand-driven production.
In this way, it is similar original concept of Just-in-Time (JIT) that was first deployed in Japanese manufacturers using a foundation of total quality management.
As a result, In-Progress and Finished inventories are all but eliminated, converted permanently into cash at full market value through much faster response to customer orders.
DFT offers “The ability to accommodate a range of volumes for any product, any day, based on the direction of actual customer demand”.
It takes the form of a diagram, usually created in pen and paper or whiteboard and formalized with a visualization program such as Microsoft PowerPoint or Visio.
The SoE usually takes the form of a table with the product code, process ID, task description and sequence, required work and set-up time for machines and labour, and quality check criteria.
In an MRP systems environment, the SoE represents a drill-down from the routing that provides a tabular view of the Product Synchronization at the process level.
In contrast to Toyota Production System, and many other lean manufacturing derivatives, a DFT line is designed for variable output rates according to daily demand.
Takt time is typically used to calculate the "line design" or number and disposition of physical resources required to produce a given mix and volume of products that changes on a daily basis according to customer demand.
Uniquely to DFT Takt time is constant, based on a fixed mix and product volume which is set for factory design purposes 2 to 5 years into the future.
Those not required to meet the Daily Rate (Dr) are free to spend quality time in training and continuous improvement activities.
As a result, In-Progress and Finished inventories are all but eliminated, converted permanently into cash at full market value through much faster response to customer orders.
It uses "flex fences" to set the upper and lower boundaries of supply against a definition of the current daily rate of demand.
Order policies, purchasing, inventory and production capacity will all be set against these flex fence boundaries, so these calculations will sit at the heart of operations planning.
The lack of system tools and clash with conventional MRP planning routine are primary reason why demand-based management has not had the same level of adoption experienced by the rest of the DFT principles.
This is reflected in the lead-time or replenishment time for finished product and will affect the level of inventory that is held to buffer response requirements.
Demand flow technology is applicable in a wide range of product environments and has been successfully deployed in many different industries.
[15] Demand Flow Technology, if applied correctly, can unify financial and customer objectives in a holistic approach to managing operating capital and growing a business.
Demand flow techniques have been widely applied to the factory, yet have failed to gain widespread acceptance in corporate management.
Major ERP/MRP vendors have largely ignored the advantages of Demand Flow techniques, or been acquired before their products have had a chance to gain market share.
There are powerful advantages to quality and capability in performing this work, but success usually depends on management commitment to change beyond the narrow actions of a DFT implementation.