1. Supply Chain Management
Improving the Processes
Presented by
John Paulson,
Supply Chain and ERP Systems Consultant
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
2. John Paulson,
Supply Chain and ERP Systems Consultant
Over 15 years in manufacturing operations management with leading Northwest companies including
Panasonic Television, Panasonic/AKEI CD-ROM, SpaceLabs, Gretag Systems, and Data I/O.
John is the Founder of Columbia Tech Consulting, Inc. providing solutions consulting services in ERP,
supply chain, information systems including operational assessments, and process and systems
alignment and optimization to some of the nations leading companies.
Since 1997, John has consulted on 27+ ERP and Supply Chain engagements improving systems and
processes.
John’s expertise in supply chain and ERP systems consulting have been requested by, and provided to,
national consulting firms as; Accenture, Ernst and Young, Cap Gemini, Delta Cubed, Panex Consulting,
Premier Consulting, AMX International, Foothills Consulting, Rapidigm Consulting, The Hunter Group,
Jagwire Group, PCM Solutions, Systems Management Inc., Versa Tech, PCI, and many more
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
3. John has provided consulting assistance to;
Columbia Tech Consulting, Inc.
4. Where to start?
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
5. Many times, it often starts with the constant complaints…
System issues
Information not readily available
Manual processes everywhere
Excessive manual reports generated
Limited integration of information
Ineffective collaboration with interfacing departments
Product not available to ship
Parts are short for work orders
MRP providing inaccurate numbers
Part expedites are excessive
Inventory dollars climbing
The list goes on..
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
6. Supply chain issues can appear
in a variety of places
• Key performance indicators
• Customer feed-back survey,
• ‘Top 5 Pain Points’ survey from departments
• Market analysis
• Benchmarking analysis
• Profit and loss analysis, and more
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
7. It begins with leadership building organizational
support for the supply chain improvement initiative
• Carefully choose the right person to lead, and promote the
initiative. This person ideally will be the spokesperson, facilitator,
project manager.
•Identify the executive sponsors /process owners by function.
These people will have the most to win, or lose, based on the
results / success of the initiative. They will support their individual
teams.
Columbia Tech Consulting, Inc.
8. Check your business tool box
Open the company toolbox to see what tools you have.
Take an inventory of the resources and knowledge you have in your
organization. You may be surprised of the talent, and their knowledge
of improvement tools who you may want to consider tapping into, to
leverage for your organizations process improvement initiative.
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
9. Tools to look for include;
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
10. Could use a few more tools?
That’s OK. This is where your organization will begin the journey
to learn very effective, powerful tools that will assist in your
supply chain improvement initiative
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
11. A Continuous Improvement Program..
can transform your organization into a continual learning
organization, and continual improvement organization.
And, fill up the company toolbox.
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
12. Why an improvement program?
In business, there is only one choice, change faster and more
effectively then your competition, or you may find your company
out of the game.
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
13. Why not just make change as the problems arise?
First, the approach of an improvement program is;
1) To make change that would not have happened unless someone
had taken the initiative.
2) To make change that will have a significant long term positive
impact.
3) A simple, yet controlled, effective methodology for continual
learning and operational improvements.
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
14. Process Improvement Methodology
An accelerated process improvement methodology that is unique,
simple, yet powerful and cost effective.
A streamlined, improvement methodology approach that is a
vehicle for learning the tools and methodology while working the
improvement project, real-time.
A ‘Just-in-Time’ approach to transferring the learning into action.
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
15. Process Improvement Methodology
.
The most important aspect of this program is that the intent for this
is to be a continual program of learning and continual
improvement to the organization.
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
16. Accelerated Methodology Benefits
Utilizing the accelerated methodology approach, the tools are quickly learned
and practiced in ‘real-time’ during projects, for accelerated results.
Ideal for ‘Quick Hit’ target areas for immediate improvement
Provides for quality control / management approval at stages of the projects
Reduced time / cost in employee methodology and tools training, on and off-site
JIT approach to methodology training
Organizational and employee growth in knowledge gained from the process and tools
Project is owned by the teams
Consulting, training, subject matter expertise support on a ‘as-needed’ basis
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
17. Process Improvement Methodology
Define
Monitor Plan
Continuous
Implement Improvement Analyze
Measure Develop
Test
Columbia Tech Consulting, Inc.
18. Process Improvement Methodology
Initial methodology & tools training, identify / prioritize critical
Educate, processes/systems to improve,
analyze current performance / initial assessments, Steering Committee
Define & Plan Process Owners
develop team resources / Project Charter
Analyze Understand requirements, expectations, gaps, process flow,
internal/external customers. Problem statement worksheet. Identify Cause Project Leads
Develop Plan the solution. Risk analysis.
Project Leads
Cost / Benefit analysis Steering Committee approval
Did not pass
expected
results
Pilot test solution / Proof of concept, document
Test results, any problems and unexpected Project Leads
observations, make adjustments as necessary
Project Leads
Measure and study the results. Compare with Steering committee approval
Measure
prediction. Document analysis / results Q/A
Project Leads
Adopt solution. Update SOPs
Implement
Train solution Project Leads
Monitor Continual improvement monitoring Project Leads
Identify new improvements to propose
Columbia Tech Consulting, Inc.
19. 1st Step
Leadership
First, leadership takes the step to address the areas that need
improvement at a high level, and drive the supply chain improvement
initiative message to the organization, along with freeing up resources
to move the initiative forward. Leadership identifies the supply chain
improvement Steering Committee, and executive sponsors/process
owners to take the lead.
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
20. 2nd Step
Understand the Supply Chain
End-to-End Flow
Development of the process flow map is a must for the beginning of a
supply chain improvements initiative. This is the basis of the existing
processes, and identifying critical points of constraint, bottlenecks, and
identification of primary and secondary areas for improvement..
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
21. 3rd Step
Define the Problem
Supply chain issues can show up in a variety of places;
• Key performance indicators
• Customer feed-back survey,
• ‘Top 5 Pain Points’ survey from departments
• Market analysis
• Benchmarking analysis
• Profit and loss analysis, and more.
The Steering Committee identifies the processes to improve based on
business objectives. There are tools that can be used during this particular
stage to identify and validate the critical processes to focus on.
Train team on methodology, roles, responsibilities, expectations.
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
22. 4th Step
Plan the Project
The Steering Committee identifies what to accomplish in the improvement
of the process. This could be as simple as stating ‘Improve on-time
shipments to 95%’ for example. Identify the process owner, and team.
Develop the project charter to include; purpose of the document, project
background (problem definition, analysis, etc.) , project objectives, goals,
approach, scope, assumptions, cost, project team resource requirements,
roles, responsibilities, project governance, time-line, etc.
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
23. 5th Step
Analyze
At this stage, the project team takes over to study the process flow, baseline
data collection, identify the internal/external customers, understand the
requirements, develop a gap analysis, identify root cause to the problem.
Develop the problem statement.
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
24. 6th Step
Develop Solution
The team will plan the solution, develop the risk analysis, and develop
the cost/benefit analysis. The solution may include identifying ‘best
practices’, and a benchmark study. Once a potential solution has been
identified to test, a Steering Committee review and approval will be
required to move forward with solution test. It is possible, depending on
the complexity of the project, the solution approval process could be
limited to the process owner at this stage.
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
25. 7th Step
Test Solution, and Learn
It is more important for the organization to understand the entire process is a learning
process, as is with the testing stage. The testing stage is a learning process first and
foremost. If the solution does not pass with the predicted results, that is OK. The
team most likely learned something very valuable. It is human nature to become very
frustrated if a test does not result with what was predicted. Again, the approach to
the improvement process is a learning approach, with the goal to improve.
If the test failed, the team will cycle back to the solution stage. This cycle may
happen several times which is OK, expect it, and learn from it.
Once the test passed with predicted results, a ‘proof of concept’ demonstration may
be a next step for the Steering Committee approval, or at minimum, process owner
approval.
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
26. 8th Step
Measure the Solution
Once the test past predicted results, measure the results, confirm
benefits meet the defined success criteria, document analysis, obtain
approval from process owner and Steering Committee to implement.
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
27. 9th Step
Implement the Solution
Adopt the solution; train people of the process, update standard operating
procedures, update process flow chart, plan cut-over from old process to
new process, communicate change.
Depending on the complexity of the change, the cut-over process and plan
could be a project in itself to manage
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
28. 10th Step
Monitor the Process
Monitor the process for continual improvement opportunities.
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
29. Process Improvement Tools
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
30. Methodologies and Tools
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
31. Problem Solving Tools
Scatter Chart
Problem
Check Sheets
Statement
Area/Facility: Kaizen Type: Kaizen #: Date:
Problem
Description
Flow Chart Product:
Clean Lubricate Tighten
Filled Out By:
Inspect
Brief
Background Scatter Diagrams
Problem
Analysis
Brainstorming
Locate the
Point of Cause Fishbone
Analysis
Standard process / Frequency
Standard Performed
Zone Location Procedure Criteria
Week
procedure check
Shift
Day
Time By
5 Why’s
Cause & Effect
Investigation
Fishbone Diagram
Root Cause
Corrective
Action Plan
Pareto Diagrams Histograms
40
30
Control / Trend Charts
20
Scrap Rate
0.25
10
0.2
0
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0.15 0
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21
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0.1
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Team Goal:
1 2 3 4 5 6 7 8 9 10 11 12
Month
John Paulson, 31 Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
32. Problem Solving Tools Cause & Effect Diagram
Flow chart
MANL
Date: Practical Problem Solving Section:
Problem: Cause & Effect Investigation:
MAN METHOD
Problem Description:
Brief Background (History): Problem
Statement
Problem
Description
Brief
Background
Histogram Problem
Analysis
Brainstorming
Locate the
Point of Cause Fishbone
Analysis
Standard process /
procedure check
5 Why’s
Cause & Effect
5 Whys – Root Cause
Investigation
Root Cause
Corrective
Action Plan
Problem Analysis: MACHINE MATERIAL ENVIRONMENT
40
Why Why Why Why Why
30
20
Therefore Therefore Therefore Therefore Therefore
10 Root Cause & Potential Solution:
0
0
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Scope of
Point of Cause: Plan Solution: Good Maybe X No Good Control
Resource Relevance Pay-Back Buy-In
Standard Check:
Implementation Plan & Schedule: WEEK #
Task # Task Who 1 2 3 4 5
T/M T/M
T/M Brain storm
T/M
T/M T/M
T/M T/M
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
33. When identifying processes to improve..
Keep in mind;
• Eliminating problems that have a negative impact on customer
expectations
• Cost reduction while maintaining or improving quality
• Flexibility focus in operations / supply chain
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
34. Conclusion
The concept I have introduced; an accelerated process improvement
methodology utilizing improvement tools that will move your supply chain
process improvement initiatives forward, and your organization forward.
A methodology, unique from traditional process improvement consulting
services, that focuses on organizational learning in a ‘learn on the project’
approach, while improving processes, and the supply chain, on a continual
basis.
John Paulson, Columbia Tech Consulting, Inc.
Cell 503-819-0190,
Email jpaulson@columbiatci.com
35. John presents this methodology and tools in an easy to
understand approach including real world case studies of
significant improvements to operations at leading companies.
For more information regarding this presentation, methodology,
and tools used, contact John Paulson.
John provides assistance in planning, training, process consulting,
and facilitating your organizations improvement initiative.
John Paulson, Independent Consultant
Cell: 503-819-0190
Email: jpaulson@columbiatci.com
Columbia Tech Consulting, Inc.