Supply Chain Process Improvement Methodology V1

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John Paulson presents an accelerated methodology to process improvements in the supply chain.

Supply Chain Process Improvement Methodology V1

  1. 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. 2. John Paulson, Supply Chain and ERP Systems ConsultantOver 15 years in manufacturing operations management with leading Northwest companies includingPanasonic 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 systemsalignment and optimization to some of the nations leading companies.Since 1997, John has consulted on 27+ ERP and Supply Chain engagements improving systems andprocesses.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. 3. John has provided consulting assistance to; Columbia Tech Consulting, Inc.
  4. 4. Where to start? John Paulson, Columbia Tech Consulting, Inc. Cell 503-819-0190, Email jpaulson@columbiatci.com
  5. 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. 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. 7. It begins with leadership building organizationalsupport for the supply chain improvement initiative• Carefully choose the right person to lead, and promote theinitiative. 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 theresults / success of the initiative. They will support their individualteams. Columbia Tech Consulting, Inc.
  8. 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 yourorganization. You may be surprised of the talent, and their knowledgeof 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. 9. Tools to look for include; John Paulson, Columbia Tech Consulting, Inc. Cell 503-819-0190, Email jpaulson@columbiatci.com
  10. 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. 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. 12. Why an improvement program? In business, there is only one choice, change faster and moreeffectively 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. 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. 14. Process Improvement MethodologyAn accelerated process improvement methodology that is unique, simple, yet powerful and cost effective. A streamlined, improvement methodology approach that is avehicle 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. 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. 16. Accelerated Methodology BenefitsUtilizing 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. 17. Process Improvement Methodology Define Monitor Plan Continuous Implement Improvement Analyze Measure Develop Test Columbia Tech Consulting, Inc.
  18. 18. Process Improvement Methodology Initial methodology & tools training, identify / prioritize critical Educate, processes/systems to improve, analyze current performance / initial assessments, Steering CommitteeDefine & 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. 19. 1st Step Leadership First, leadership takes the step to address the areas that needimprovement at a high level, and drive the supply chain improvementinitiative 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. 20. 2nd Step Understand the Supply Chain End-to-End FlowDevelopment of the process flow map is a must for the beginning of asupply chain improvements initiative. This is the basis of the existingprocesses, and identifying critical points of constraint, bottlenecks, andidentification of primary and secondary areas for improvement.. John Paulson, Columbia Tech Consulting, Inc. Cell 503-819-0190, Email jpaulson@columbiatci.com
  21. 21. 3rd Step Define the ProblemSupply 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 onbusiness objectives. There are tools that can be used during this particularstage 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. 22. 4th Step Plan the ProjectThe Steering Committee identifies what to accomplish in the improvementof the process. This could be as simple as stating ‘Improve on-timeshipments to 95%’ for example. Identify the process owner, and team.Develop the project charter to include; purpose of the document, projectbackground (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. 23. 5th Step AnalyzeAt this stage, the project team takes over to study the process flow, baselinedata collection, identify the internal/external customers, understand therequirements, 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. 24. 6th Step Develop SolutionThe team will plan the solution, develop the risk analysis, and developthe cost/benefit analysis. The solution may include identifying ‘bestpractices’, and a benchmark study. Once a potential solution has beenidentified to test, a Steering Committee review and approval will berequired to move forward with solution test. It is possible, depending onthe complexity of the project, the solution approval process could belimited to the process owner at this stage. John Paulson, Columbia Tech Consulting, Inc. Cell 503-819-0190, Email jpaulson@columbiatci.com
  25. 25. 7th Step Test Solution, and LearnIt is more important for the organization to understand the entire process is a learningprocess, as is with the testing stage. The testing stage is a learning process first andforemost. If the solution does not pass with the predicted results, that is OK. Theteam most likely learned something very valuable. It is human nature to become veryfrustrated if a test does not result with what was predicted. Again, the approach tothe 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 mayhappen several times which is OK, expect it, and learn from it.Once the test passed with predicted results, a ‘proof of concept’ demonstration maybe a next step for the Steering Committee approval, or at minimum, process ownerapproval. John Paulson, Columbia Tech Consulting, Inc. Cell 503-819-0190, Email jpaulson@columbiatci.com
  26. 26. 8th Step Measure the SolutionOnce the test past predicted results, measure the results, confirmbenefits meet the defined success criteria, document analysis, obtainapproval from process owner and Steering Committee to implement. John Paulson, Columbia Tech Consulting, Inc. Cell 503-819-0190, Email jpaulson@columbiatci.com
  27. 27. 9th Step Implement the SolutionAdopt the solution; train people of the process, update standard operatingprocedures, update process flow chart, plan cut-over from old process tonew process, communicate change.Depending on the complexity of the change, the cut-over process and plancould be a project in itself to manage John Paulson, Columbia Tech Consulting, Inc. Cell 503-819-0190, Email jpaulson@columbiatci.com
  28. 28. 10th Step Monitor the ProcessMonitor the process for continual improvement opportunities. John Paulson, Columbia Tech Consulting, Inc. Cell 503-819-0190, Email jpaulson@columbiatci.com
  29. 29. Process Improvement Tools John Paulson, Columbia Tech Consulting, Inc. Cell 503-819-0190, Email jpaulson@columbiatci.com
  30. 30. Methodologies and Tools John Paulson, Columbia Tech Consulting, Inc. Cell 503-819-0190, Email jpaulson@columbiatci.com
  31. 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 PlanPareto Diagrams Histograms 40 30 Control / Trend Charts 20 Scrap Rate 0.25 10 0.2 0 0 0 0 0 0 0 0 0 0.15 0 .3 .2 .5 .6 .9 .8 .1 .4 .0 -21 -22 -22 -21 -21 -22 -23 -23 -24 23 .50- .10 .00 .30 .40 .70 .60 .90 .20 .80 .70 21 22 22 21 21 22 22 23 23 23 0.1 0.05 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. 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 BackgroundHistogram 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 0 0 0 0 0 0 0 0 .3 .2 .5 .6 .9 .8 .1 .4 .0 -21 -22 -22 -21 -21 -22 -23 -23 -24 23 .50- .10 .00 .30 .40 .70 .60 .90 .20 .80 .70 21 22 22 21 21 22 22 23 23 23 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. 33. When identifying processes to improve..Keep in mind;• Eliminating problems that have a negative impact on customerexpectations• 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. 34. ConclusionThe concept I have introduced; an accelerated process improvementmethodology utilizing improvement tools that will move your supply chainprocess improvement initiatives forward, and your organization forward.A methodology, unique from traditional process improvement consultingservices, that focuses on organizational learning in a ‘learn on the project’approach, while improving processes, and the supply chain, on a continualbasis. John Paulson, Columbia Tech Consulting, Inc. Cell 503-819-0190, Email jpaulson@columbiatci.com
  35. 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.

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