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2019 ipsm conference_03_orhon anit

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Orhon Anit presentation for IPSM First International Conference in Procurement and Supply Chain
June 5-6, Kyiv, Ukraine

Published in: Business
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2019 ipsm conference_03_orhon anit

  1. 1. DELIVERING WHAT CUSTOMERS WANT !!!
  2. 2. • WITH Z E RO DEFECTS • AVAILABLE A S W A N T E D • IF POSSIBLE, WITH Z E RO L E A D - T I M E S • IN NEEDED Q UA N T I T Y • AT LOWER C O S T S and….. CUSTOMERS CARE ABOUT A PRODUCT
  3. 3. General Management Order Processing Purchasing Production Distribution Accounting /MIS Maintenance & Engineering Human Resources Quality Assurance Materials Management Management and Strategic Processes Primary Processes Support Processes Market Market
  4. 4.  Increase customer service  Decrease plant costs  Decrease inventory investment Demand Supply Closed Loop Communication Customers Plant Suppliers
  5. 5. THE STRATEGIC DISCONNECT A MARKETING VP SAYS: “MY COMPETITION IS THE MANUFACTURING” 95% OF ALL MARKETING-MANUFACTURING RELATIONSHIPS ARE ADVERSARIAL, DUE TO: • SILO ORGANIZATIONS, • LEFT BRAIN versus RIGHT BRAIN, • UNENLIGHTED LEADERSHIP, • etc.,
  6. 6. MARKETING • MORE PRODUCT OFFERINGS • ADDITIONAL LINE EXTENSIONS • MORE CHOICE FOR CUSTOMER MANUFACTURING • “THE LOW-COST PRODUCER”
  7. 7. MEASUREMENT GAP MEASURING MANUFACTURING PERFOMANCE: • OVERHEAD ABSORPTION, • INVENTORY INVESTMENTS, • EFFICIENTIES and UTILIZATION FACTORS, • THROUGHPUT, etc.,
  8. 8. CHANGE !!! • IT IS NOT TERRIBLY DIFFICULT TO CHANGE THE MARKETING STRATEGY • CHANGING MANUFACTURING STRATEGY IS MUCH MORE DIFFICULT. • IT USUALLY REQUIRES CHANGING MANUFACTURING AND OPERATIONS INFRASTRUCTURE… EQUIPMENT, BRICK AND MORTAR.
  9. 9. ✓ BUDGET ✓ “THREE MONTH ROLLING FORECAST” ✓ INVENTORY INVESTMENTS ✓ INVENTORY TURNS ✓ CAPACITY UTILIZATION ✓ ROI MEASURE SALES PERFORMANCE VERSUS
  10. 10. Sales Manufacturing Finance Engineering • Focused product line • Long development time • High customer service • Short, stable lead times • Broad product lines • No missed deliveries • Minimum investment • Low inventories • Low capital equipment and overhead • Low per-unit cost • Level stable schedules • Stable employment • Adequate inventories and capital • Sufficient lead timesStrategic planning must fit all conflicting goals together into one plan
  11. 11. Good News • QUALITY FUNCTION DEPLOYMENT: DERIVE THE BUSINESS AND MARKETING DIRECTLY FROM “the voice of the customer”. • SALES & OPERATIONS, PLANNING: THIS ALLOWS MANAGEMENT, WORKING IN CROSS FUNCTIONAL TEAMS TO CONTINUOUSLY BALANCE DEMAND and SUPPLY, so that the customers can be satisfied in the most effective and efficient way.
  12. 12. • CURRENT CUSTOMERS • NEW CUSTOMERS • ECONOMY • COMPETITITON • NEW PRODUCTS • PRICING • BIDS • PROMOTIONS • MANAGEMENT DIRECTIVE • HISTORY • OTHER Forecasts that are • REASONED • REALISTIC • REVIEWED FREQUENTLY • REPRESENT THE TOTAL DEMAND
  13. 13. • Vendor Awareness of Responsibilities → Co- makership • Reduced Testing → Reduced QA Lead Times → Reduced Costs • JIT Receipts → Reduced Inventories → Efficient Warehouse Utilization → Reduced Inventory Holding Costs → Motivated Warehouse Staff
  14. 14. .. and • Increased Flexibility Towards Your Customers → Increased Sales Dollars → Increased Share Holder Value → Faster ROI
  15. 15. YOU DO • Understand Processes, Service Limitation of Your Vendor • Not Push Stock Into Their Warehouse • Make Them Your Partners • Trust them YOUR VENDOR DOES • Make Achievable Commitments • Understand Your Customer Service Objectives • Trust You
  16. 16. YOU DO • Make Achievable Commitments • Understand Marketing Constraints, Competing World, Altering Demand • Trust Them YOUR CUSTOMER DOES • Understand Your Service Limitations • Issue Reliable Projections • Understand Your Objective for Efficient Use of Resources • Trust You
  17. 17. → ATTITUDE → COMMITMENT → FAITH → PATIENCE → DETERMINATION ▪ Customer is Right ▪ Do It Regardless ▪ It Will Work ▪ To Do It Right ▪ CONTINUOUS IMPROVEMENT
  18. 18. • Top Management Commitment • Organization Operates as a Team • Horizontal Communications at all Levels • Delegation of Authority • Encouragement of Flexibility • Effective Training & Recognition • Hustle & Urgency • Lean & Keen Staffing
  19. 19. ▪ Flatten your Organization ▪ Empower Satisfiers ▪ Re-distribute Work ▪ Fight the Traditional Thinking ▪ Compress Time oLead Times oThru-put Time oQA Release Time oUn-released Shipments oSMED oEtc
  20. 20. “To improve is to Change; to be Perfect, is to Change Often.” Sir Winston Churchill
  21. 21. • Change your Customer Service to Customer Satisfaction; and ultimately to !! • Increase your Service Level without Adding Costs • Get you into the Loop of Continuous Improvement
  22. 22. BECOMING means to be: • The Preferred Supplier in World Markets • The Capital Magnet in Financial Markets • Sought After Place of Employment • The Business of Choice by the Community
  23. 23. 🙂

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