The Odette SCM Project Group has developed recommendations for selected SCM building blocks by bringing together the know-how and experience of OEMs and major suppliers. This recommendation describes the SCM building block “Demand Capacity Planning” (DCP). It incorporates the business process model, functionalities and the respective data elements/messages. The aim of the recommendation is to set a de facto standard for DCP in the automotive industry and to establish a basis for interoperability of DCP applications from different software providers and marketplaces.

The goal of Demand Capacity Planning (DCP) is to prevent significant capacity shortfalls or under-utilisation. The emphasis is on avoiding potentially serious misalignments beyond the time horizon covered in existing production planning systems. Therefore DCP is positioned as a complement to existing ERP-systems.

A key element in DCP is the detection of potential misalignments (capacity shortfalls or under-utilisation) early enough to take preventive actions.

The proposed concept with its systematic, integrated and fast process and collaborative elements leads to earlier and more reliable detection of capacity issues and will allow the supplier to better adapt his capacity to the fluctuations of demand.

The drivers for standardisation of the basic functionality and processes of DCP are:

• Suppliers want to avoid having to implement individual solutions with every customer and want to see consolidated demands for capacity planning
• Customers want to minimise the effort for roll-out of the DCP process to their suppliers
• From the standpoint of a single company, the implementation of individual DCP systems with all relevant business partners is very time consuming and inefficient.

The development of the ODETTE DCP recommendation was supported by the following companies:

DaimlerChrysler, GM/Opel, PSA Peugeot Citroën, Renault, Volvo Cars, Bosch, Faurecia, Siemens VDO and Trèves