This document provides an overview of managing an enterprise supply chain from an industrial engineering perspective. It discusses topics such as generating revenue with low costs and high margins, competitive objectives, competency and growth strategies. It also covers various levels of management including operations, middle management, supervisors, and administration staff. Challenges with unions and ways to address human resource gaps to prevent union disputes are also examined. The document emphasizes understanding the entire enterprise system and focusing on objectives of keeping finished goods flowing through the supply chain.

1. Industrial Engineering Management Systems Approach to the Enterprise Vision
L | C | LOGISTICS
ENTERPRISE SUPPLY CHAIN MANUFACTURING & COMMERCIAL LOGISTICS OPERATIONS ….
_____ _ PROCESS INNOVATION-OPTIMIZATION & ENGINEERING PROJECTS MANAGEMENT….
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INDUSTRIAL ENGINEERING MANAGEMENT FUNDAMENTALS AND HOW IT WORKS
March 2015
Expertise in Process Engineering Optimization Solutions & Industrial Engineering Projects Management
Supply Chain Manufacturing & DC Facilities Logistics Operations Planning Management
Chapter XI Managing the Enterprise Supply Chain

2. Systems Approach to the Enterprise Vision
Chapter XI Managing the Enterprise Supply Chain
On Business the quest for revenue, costs, margins, service rate, competency and growth
From all the existing corporate business objectives, the main priority goes
to the objectives regarding “generate revenues at the lowest production-
marketing–sales-distribution and operational corporate administration
cost with the highest operational margins possible”
These set of objectives does not go alone but in parallel with the objectives
regarding “best Industry competitive level, customers and/or clients’ service
rate, brand image, finish goods quality perception, optimal geographic
numerical trade coverage; including hypermarkets, supermarkets, mini-
marts, convenient stores, traditional mum and pap trading shops,
concessionaires, wholesalers and stockiest”

3. Systems Approach to the Enterprise Vision
Chapter XI Managing the Enterprise Supply Chain
The sense of competency and the need to continuously grow, determines the
corporate leadership focus on strategies, and their implementation based on
sound policies and operating instructions or company rules and regulations
On Corporate Management Power
Many, have reached the upper management level after a short and
unsuccessful time in the middle management; at times the selection process
is corrupted by cultural values and yet their survival depends on the strength
from others

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To make a life career on your own, to be a professional and to be good at
it, requires more than good luck and lot’s of friends in the high corporate
levels, although many make a good start in that way, specially while fresh
after graduation
The best way to promote your way up to the corporate level is to
dedicate your time to master all the skills required to do your job as a
professional, and then, when you feel you are ready for your next
professional life challenge, look-up for a better job opportunity anywhere
else and continue learning

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Be loyal to your profession and the rest comes along by itself, otherwise be
prepare to fight for corporate power, and get deeply involved politically,
with the support of a corporate godfather; be ready for betrayals, and
swimming with the sharks, surviving power struggles; for status and financial
benefits; unless of course you are born a boss in the family business
Don’t forget that it takes many years to master the technical details and to
gain the hands on experiences required to finally make the right
management decisions affecting the Enterprise; unfortunately before you
know it; old age will catch-up with you and suddenly, to the mind of some
lucky ones in power, you are already too old to be in the action, of course;
before that, you were too young without technical skills, experienced, and
suddenly age is the problem; like beauty to many

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Operations
Functional organization charts will provide the system’s logic and linkage
to all its system components
Few have the courage, mental attitude and life balance to take in their
hands the responsibility required to run an operation
Besides having the basic technical background, good education and social
values, only a few never give up
Operations are as dynamic as the win and the seawaters movements, yet
endlessly deep as the entire universe space

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There are production cycles, sales seasonality, holidays seasons, but the
continuous changes and demands for higher productivity, competitive
prices, new packaging designs, product formulations, the introduction of
new technologies, equipment and improvements in the corporation to
improve their ability to remain competitive, is the force behind all new
events and developments to happen
It is essential to understand the entire system to be able to coordinate all
on going projects, come up with new creative proposal, monitor the
entire operation, inspect the current facilities status, measure key ratios
and check that all index point to the desired direction as per the annual
business plan

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Continuously reviewing the effect caused by implemented strategies and
seeing that objectives are met within the time planned within all expected
constraints and most important make sure everyone in the team knows
what they are doing
When it comes to deal with top, middle and junior managers, supervisors,
coordinators foreman, operators, admin and IT staff as well as other
technical people regardless of rank, title and whatever other ownership
rights they might have, remember that you are always talking to a
professional with ego, pride, sensibility and a desire to be praised-
recognized for the good job they believe they have been doing at all times

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Talk to the job as best as you understand it, and don’t focus on the person’s
personality, physical appearance and body language, because when you are
dealing with someone regarding the operational cycle activities, you are
doing your job, by means of communicating and learning the activities
status, seen that all actions are within the planned schedule
Operations specifications most be well documented and described as
operational processes, together with all related job descriptions and job
candidate’s profile, besides a clear description of functional goals, objectives
and required strategies to be able to implement all actions by means of
projects or policies and establish the system that consistently achieve the
corporate goals and objectives
All operation technical specifications most be updated in a systematic
manner, so that all measurements are accurate

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Middle Management
The job is to secure and guarantee that the operational cycle is completed
without disturbances, over and over, time after time and of course to get
involved in new developments, and other projects and skill development
programs
But first middle managers have to know the system in great detail and not
just as a general concept or as explained by academics back in school,
where all assumptions are a dream with plenty of time to discuss each
theoretical case study
Operations requires you to make a decision based on the best information
available on hand and mix of your best experiences and common sense,
plus a bit of sixth sense

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Use your job ownership responsibility, sense of urgency and have the guts
to make that decision and make it happen now
Always be prepared for the worst scenario, even if it means loosing your
job, be a professional and fair to the company
Secure a full technical knowledge in all subjects related to the enterprise
business and industry, learn each operation and make a full assessment of
it in the most detail possible to be able to foresee further improvements or
faults within the operation system specifications design in place

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There is always the risk to get involved in human resources related activities
from subordinate’s emotional situations or other staff personal conflicts,
and when this happen the evaluation of the situations and the actions taken
are often based on emotions and not from rational judgments and off the
main enterprise priority objective as mentioned before
From all the existing corporate business objectives, the main priority goes to
the objectives regarding “generate revenues at the lowest production-
marketing–sales-distribution and operational corporate administration cost
with the highest operational margins possible”

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Supervisors, coordinators, foreman, intensive and skilled Labor
The most important objective and related issues in the mind of a supervisor,
coordinator, foreman, admin staff, intensive and skilled labor is to keep the
enterprise finished goods flowing at all times throughout the system as per
planned production or delivery schedules to customers in all distribution
channels
90% of their job’s attention is to fulfill this objective;
9% is to be dedicated to manage difficult situations, finding best solutions on
hand and making those effective decisions with actions geared to keep the
system within the process specifications

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The last 1% is to be dedicated to take care of any dispute among their
subordinates, regarding discrepancies due to personality conflicts,
differences in character and emotions as well as other personal issues
leading to dislike or hate among people in conflict, otherwise their
involvement will lead to the firing of the people in conflict or it will amplify
further among them the existing emotional problem
Such situations are best to be reported and passed over to the Human
Resources Department to be cleared through the enterprise rules and
regulation policies. In this way people will be disciplined, warned or fired
from the enterprise

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What the supervisors are to do at all times is to make sure that each
process component, within their area of inspection works as per their
well-documented process specification
That all equipment works in perfect conditions, that required data is
available, reliable, in real time and easy to retrieve and update.
All required materials are to meet the quality specifications as per
design, as well as scheduled volumes in full and on time, with highest
acceptance yields and production rates as per specifications

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When any system component such as equipment, materials, information or
others fail to deliver as per specifications, or anyone fails to perform within
standard productivity rates;
it is the supervisor responsibility to make decisions to correct it with
effective actions; technical staff, skilled labor, intensive labor and other
related staffs are to be committed and perform as per the job specifications
Supervisors, coordinators, foreman and admin staffs have to know by heart
their system process specifications and their components link sequences

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They have to know everyone involved in every step of their process,
and be a master in every related job task, technically, operational, data
source integrity, and administrative documents flow,
as it is in this way that the supervisor or direct subordinates can take an
effective role in the inspection activities,
issue standard reports to all concerned parties,
in full descriptive details and within the expected shift time frame,
focused on the objective, situation, complication, resolution, and action
taken or recommended to middle management

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Chapter XI Managing the Enterprise Supply Chain
Administration Staff
With the advancements on office automation processes by means of ERP
software systems or specialized business software applications, the admin
staff jobs have become technical, requiring complete business process
knowledge
Good skills in customer service communications and a positive working
attitude to render service in full and on time to the entire enterprise
computer system network
It is essential that the administration staff understand the complete business
process cycle, and working schedule to take responsibility on the accuracy
and integrity of the data

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Chapter XI Managing the Enterprise Supply Chain
When the staff lacks knowledge on the documents data processing
mechanics, it is hard to detect the bugs in the system; falling in the guessing
game of trying to locate the cause of inconsistencies coming from the
computer system
Some problems occur at the Data Base level, while others comes from the
data process sequence linkages and others as result of software patches side
effect
The feedback given by the admin staff to the computer analyst is very
important as most often the analyst do not know the enterprise system
Most computer software systems often lack full documents data processing
requirements and some patches are made to the standard software,
or some adjustments are made to the software settings to closely meet the
enterprise documents data processing requirements, creating data
inconsistencies

20. Systems Approach to the Enterprise Vision
Chapter XI Managing the Enterprise Supply Chain
Union’s disputes and life in the front line
Worker’s Union Disputes are always the result of some of the company’s
unattended gaps found in the Human Resources department,
or within the bottom list of priorities discussed by top and middle
management, except almost daily, among skilled and non skilled workers and
some other admin staff
The first company’s priority is to avoid at all cost to have a union within, but if
it is too late for that, then make the best out of it and have harmony, peace
and a productive day
And if that is not possible, then get ride of them at all cost

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The union key demands are easily met by closing most of those company
gaps before there is any dispute with the Union,
while their bulk of demands are just to fill-up the list and to be used as a
tool to dispute and negotiate between the company’s lawyers and
management, the government’s labor court-labor relations department
and its members
Picking a fight with the Union is devastating, dangerous, time consuming
and very expensive,
besides the risk of loosing everything if there is ever some kind of
outsiders extortionist mafia group behind the company workers union
leaders, or other government political groups behind them

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The government labor court-labor relations department will always find
the company at fault and search for mistakes to favor the union workers,
regardless of the legalities involved and all the problems created to the
company by the union workers with or without cause
The local police will certainly do little to prosecute vandalism and sabotage
made by the bad union member guys
At the most they will keep the company gates guarded to prevent violence
on the streets but nothing else within the company premises

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Union members can take aggression and violence into their hands when
things doesn’t go their way, specially the threat to other non-union
members when they refuse to join them
Fighting the union requires a clear mind to justify all actions taken in line
with the labor law, against the union workers and those actions need to
be as transparent as glass
It also requires having the best labor lawyers available on hand and to
prepare with evidence and document each extortion, or sabotage case
with formal company documents

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Chapter XI Managing the Enterprise Supply Chain
But before the union takes over the workers soul and heart let’s look for
the company’s Human Resources management gaps within the following
criteria’s
•job security
–provides the perception that the company is financially stable, with sales
growth and good corporate brand image
–have a permanent job position rather than a temporary one
-job re-structuring is always an open option to reduce labor
•job satisfaction
–sense of belonging, added responsibility and achieving a set of personal
goals on quality, quantity and cost reductions

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•job enrichment
–job improvement awareness through skills developments,
positive attitude, self respect and sense of job ownership
•remuneration
–industry market benefits, salaries and wages
–over time and annual company performance bonus
-company’s annual productivity awards
•social environment
–dressing code culture, food court, communication
–politeness, friendliness and accepted social manners

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•security, safety, sanitation and health
–facilities sanitation standards
–good manufacturing practices
communication
–company events (manufacturing, marketing-sales)
–general social and sport events
–company’s policies, rules and regulations
•management
–functional organization
–clear line of command and job profile
–company moral values
–productivity targets

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•on labor union leader’s ideologies
–psychological paths {political, fanatical, terrorist tactics}
-moved by the idea of getting “people’s appreciation, respect, authority
and a moment in their historical time”
-their ideals never change and never die in their life time
-remuneration, skills improvement, career development and job
improvement are not in their personal priority list
-after achieving some of their personal objectives, they still don’t stop
their quest for the “people’s appreciation, respect, authority and a
moment in their historical time”
-to many a surprise is that most of the union committee members are
good workers with consistently high annual evaluation score records,
and positive attitude but left inside the gaps made by the company’s HR
and top management

28. Systems Approach to the Enterprise Vision
Chapter XI Managing the Enterprise Supply Chain
Fighting the worker’s union with few selective and effective strategies,
requires first to have the middle management team fully united and,
together with the top management, to become one single team as fast as
possible before engaging in any labor negotiations,
and then, the middle management requires technically to be trained as fast
as possible in group negotiations, and body language psychology with, a bit
of “drama acting” or play role acting,
to be able to deceive the opponent union’s committee members, labor
department officers, as well as all other company staff in order to keep full
secrecy of all internal arrangements to fight the union

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The rules of engagement are such that there are no rules but the
following ideas, which can help during the long run fight
-seat tight for the following months and focus on production and
productivity improvements consistently and continuous
-take all precaution measurements to prevent sabotage, fire and the
worst that can happen to equipment by technician’s and skilled union
members, as well as waste of valuable materials created with intention
during production runs
-check the HR gaps list and selectively go on to narrow it
-find a good knowledgeable labor lawyer with enough time to go to the
labor court and the labor relations department as and when required to
meet the union committee and talk

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- check the company rules and regulations, make sure they are all legal
as per the labor law and apply all of them as required with strict
execution to all signed union members
-identify the union committee members and its organizers, as well as all
sympathizers and signed union members, they are the front line target
of workers to be paid off and out
-hunt for their working mistakes, on purpose “accidents” and acts of
sabotage and vandalism with all company’s assets, and when found
them, take firm action promptly
-cut all means to provide extra income to all union members such as
over time, annual bonus, salaries and wages above government
recommendation, permanent job positions, etc.

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-during any union talks never commit, accept or reject any point in their
agenda, go strictly by the law and within the law as clear as it can be
interpreted
-follow the labor law strictly during any negotiation with the labor
department and the union, accepting point in the agenda within the clear
boundaries of the labor law only to show some concession, flexibility and
will to negotiate
-use force to fight back the union member bully’s, such as the local police,
the security guards and other private detectives to locate the whereabouts
of all the bad guys threatening other non-union workers

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-remove from the company premises all the union member bully’s with full
salaries and wages being paid as regular employees, and get them to check-
in daily, for as long as it can be, in the process negotiate to pay them off
and out
-transfer all union committee members to one single working area and
keep a close watch on them to hunt for their mistakes, and act upon them
as soon as all evidences and reports are ready in company stationary
documents
-negotiate with all the union organizers to pay them off and send them out
with their own self resignation as soon as they give signal of a weakening
position

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-reduce all non-skilled signed union members and replace them with sub-
contractor workers, improved working processes, electric and mechanical
equipment, IT support, automation equipment and hire higher qualified
managers, supervisors, foreman and skilled workers
-upgrade all skilled workers left behind due to HR gaps regardless whether
they are signed or not union members
-recruit union signed skilled worker to resign from the union get HR
involved to improve their status and clear the gap

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When it is all over, perhaps not completely over, but to a reasonable
extend, the company HR has already changed for good and at an incredible
speed,
which any re-engineering project couldn’t have achieved in such a short
period of time
Life in the front line will never be the same, and the middle management by
then would have shown their character, tolerance and adaptability upper
limit,
also they would have shown their level of competence regarding decision-
making ability and resilience to stress and management pressure

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Chapter XI Managing the Enterprise Supply Chain
Picking a fight with the Union is devastating, dangerous, time consuming
and very expensive, besides the risk of loosing everything,
but letting the union to manage the company is the worst scenario and
that cannot let happen
Working in the front life requires physical stamina and a positive mental
attitude with a clear mind focused on the job commitments made to the
company
when anyone joins to be part of it as professionals, labor, technicians,
admin staff, foreman, supervisor, middle and upper management level

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OTHER TOPICS OF INTEREST
On Goals Revenue Vs Cost Vs Productivity Vs Infrastructure Vs Technology
Vs Industry
On Objectives Financial Ratios, Performance Indicators, Business Development
Programs
On Strategies Market Segment, Market Channels, Market Share, New
Platforms
Organization Enterprise Resources Planning Vs (Matrix, Functional, Modular)
Operations Flow Total Supply Chain Operational Flow, Proceedings, Rules &
Regulations
MIS & B2B ERP General Business Software, Web site Technology, Intranet,
Internet

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E-Vendors Electronic documents handling networking &
Efficient Consumer Response
E-Customers Electronic documents handling networking &
Efficient Consumer Response
Inventory Planning Back to back PO's, Rolling Forecast base PO's,
PO's life cycle Concept
SQE & IQA Manufacturing Processes Auditing, material's BOM
specifications, feedback
Freight Forwarding Import + Export Custom Clearance, Sea & Air
carriers, land transport tariffs
Cross-dock Center Excess stocks Vs Continuous replenishment
operations break-even point
Distribution Center Service level Vs Warehousing and Distribution
operations break-even point
Layout Design Distribution Center, Ambient – Chilled – Frozen –
Clean Room Factory Raw Materials Warehouses,
Ambient – Chilled – Frozen – Clean Room Finished
Goods Warehouses, Retail Warehouses,
Ambient – Chilled – Frozen Depots

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Storage Systems Pallet Racking Selective – Drive in – Push Back – Continuous
Flow – Double Deep, Multi tier shelving systems, Mezzanine
Floors
Conveyor Systems Pick to light, Consolidation flows, Telescopic, Multi level
feeders
Co-packing Kitting, sorting, size grouping and re-packing within an
assembly line mode
City Deliveries Delivery routes mapping, schedule planning, road auditing,
and vehicles’ specs
Inter City Deliveries National Distribution transportation break-even point
routing, vehicles’ specs
Warehouse Network Multiple DC's and warehouses National Distribution break
even point
Storage Layout Ambient temperature, freezer, chilled, air conditioned, bulk
& item picking
Storage Systems VNA, selective, drive-in, life flow, multi-tier shelving, flow
racks, block stack

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Picking Systems Loose case, loose item, full pallet, pick to light, pick to conveyor,
sorting
Marshaling Dispatch lines, dockyard traffic control, checking, documents
control
Receiving Receiving line traffic control, inspection, document control, put
away
Trucks parking yard trucks traffic control,
Materials Handling Men driven electric vehicles, conveyors, forklift trucks, barcode
scanners
Integrated Costing Fixed & Variable activity base cost structure spread sheets
Integrated Pricing Volume & Added value activity base price structure spread
sheets

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Chapter XI Managing the Enterprise Supply Chain
3rd
party Operators Contractual bases, hiring situations, minimum
operational specifications
Budget Planning Revenue Forecasting, Fixed Assets & Manpower
Investments, Cash flow
Operations Research Supply Chain System Objectives Simulation, modeling,
analysis, projections
Prospective Planning Strategic Decisions in the Business Process, Rise and fall
of an Enterprise
Professionals Profile Assessment, career style, academic background and
experience
Professional Services Consultancy rules of engagement, diagnosis, findings,
actions

41. Industrial Engineering Management Systems Approach to the Enterprise Vision
L | C | LOGISTICS
ENTERPRISE SUPPLY CHAIN MANUFACTURING & COMMERCIAL LOGISTICS OPERATIONS ….
_____ _ PROCESS INNOVATION-OPTIMIZATION & ENGINEERING PROJECTS MANAGEMENT….
Industrial Engineering Management E-Book
INDUSTRIAL ENGINEERING MANAGEMENT FUNDAMENTALS AND HOW IT WORKS
March 2015
Expertise in Process Engineering Optimization Solutions & Industrial Engineering Projects Management
Supply Chain Manufacturing & DC Facilities Logistics Operations Planning Management
THANK YOU
Chapter XI Managing the Enterprise Supply Chain