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Abhishek Singh
IIM Kashipur
What do Companies look for?
 Resourcefulness: Ability to apply theoretical
knowledge
 Command over subject
 Knowledge of buzzing concepts. Eg: RFID
 Knowledge of the concerned industry
 Problem solving attitude
A framework of problem solving
 Identify the problem
 Specify the criteria based on which the
solutions will be evaluated
 Find out the possible solutions
 Choose the best one based on the criteria (If
multiple criteria are involved use linear
programming)
 Implement the solution
Statistical Process Control
Control Charts Pareto Analysis
Cause and Effect
Diagrams
Scatter Diagram Process Flowchart Process Capability
Quality Function
Deployment(QFD)
House of Quality
Failure Mode Effect
Analysis(FEMA)
Failure
Mode
Cause of
Failure
Effect of
Failure
Corrective
Action
Stale low moisture content
expired shelf life
poor packaging
tastes bad
won’t crunch
thrown out
lost sales
add moisture
 cure longer
better package seal
shorter shelf life
Broken too thin
too brittle
rough handling
rough use
poor packaging
can’t dip
poor display
injures mouth
chocking
perceived as old
lost sales
change recipe
change process
change packaging
Too Salty outdated receipt
process not in control
uneven distribution of salt
eat less
drink more
health hazard
lost sales
experiment with recipe
experiment with process
introduce low salt version
Project Management
Project Management
Steps:
• Define activities
• Sequence activities
• Estimate time
• Develop schedule
Techniques:
• Gant Chart
• CPM/PERT
Project Management
Gant Chart CPM/PERT
Service Blueprinting
Facility Layout
Process Layout
Product Layout
Fixed Position Layout
Forecasting
Time Series
Moving
Average
Naïve
Forecast
Simple
moving
average
Weighted
moving
average
Exponential
Smoothing
Regression
Supply Chain
Procurement
&
Outsourcing
Strategies
Aggregate
Planning
Supply
Contracts
Kaizen
Inventory Management
Elements of
Inventory
Management
Inventory
Control
Systems
Continuous
system (fixed
order-quantity)
Periodic
system (fixed-
timeperiod)
Economic
Order
Quantity(EOQ)
Models
Re-order Point
Order Quantity
for Periodic
Inventory
System
Role of Inventory
Improve Matching of Supply
and Demand
Improved Forecasting
Reduce Material Flow Time
Reduce Waiting Time
Reduce Buffer Inventory
Economies of Scale
Supply / Demand
Variability
Seasonal
Variability
Cycle Inventory Safety Inventory
Figure Error! No text of
Seasonal Inventory
Inventory Management
 Types of Inventory
 Inventory Control System
 Continuous system (fixed order-quantity)
 Periodic system (fixed-time period)
 EOQ
 Reorder Point
 Safety Stock
 Two bin system
 Lot Size
 Kanban
Sales and Operations Planning
Process
Copyright 2011 John Wiley & Sons, Inc.
Data Envelopment Analysis
(DEA)
Value Stream Mapping (VSM)
Customer Satisfaction Strategies
Actual Performance
Providing satisfiers
(performance needs) can keep
you in a market
Providing delighters (unknown exciting
characteristics) can get you market leadership.
CustomerSatisfaction
Very Satisfied
Very Unsatisfied
PerformsVeryPoorly
You are “OK if
you don’t
provide them.
PerformsVeryWell
redial button on telephone receiver; spare change holders/
soft drink holders in automobiles; one-touch recording
button on some VCRs;
Customer Satisfaction
Strategies – Kano Model
Supply Chain: Manufacturing Example
Cereal
Manufacturer
Flour
Processor
Polyethylene
Bag
Manufacturer
Chemical
Processor
Farmer
Oil
Company
Forest
Lumber
Provider
Corrugated
Manufacturer
Grocery
Distributor
Retail
Grocer
Consumer
1st Tier
Supplier
2nd Tier
Supplier
2nd Tier
Customer
1st Tier
Customer
3rd Tier
Supplier
3rd Tier
Customer
(Material) Products and Services
Finance
Information
Demand
Supply
Upstream
Internal
Downstream
Focal
Company
A Sample Supply Chain
BENCHMARKING SUPPLYCHAIN USING
FINANCIAL DATA
Total Length of the Chain Days of Raw Material (DRM)+ Days in
Work In Process + Days in Finished
Goods
Supply Chain Inefficiency
Ratio:
Supply Chain Management Cost (SCC) /
Net Sales (NS)
SCC = DC + INV * ICC
Supply Chain Working
Capital Productivity:
Net Sales (NS) / Supply chain Working
Capital (SWC)
SWC = INV +AR–AP
Kraljic’s Supply Matrix
Toyota’s Seven Waste
30
 Transportation
 Inventory
 Motion
 Waiting Time
 Overproduction
 Over Processing
 Defects
(T I M W O O D)
TYPES OF ACTIVITIES
Value-added
 Anything that directly adds value to the product
or services as seen or experienced by the
customer
Non-value added
 Waste (should be eliminated)
Necessary non-value added
 Non-value added, but necessary and hard to
eliminate (e.g., planning, scheduling,
purchasing, quality control, etc.)
31
Necessary, nonvalue-added
activities
 Planning
 Scheduling
 Purchasing
 Quality Inspection
 Process/equipment changeover
 Equipment preventive maintenance/repair
 Others?
Can these be eliminated?
32
Bullwhip Effect
The bullwhip effect is a phenomenon observed in supply chains where the
demand variability increases as one moves up the supply chain from
customers towards to distributors to manufacturers.
At P&G, diaper orders issued by
distributors have a degree of
variability that cannot be
explained by consumer
fluctuations alone
At Hewlett-Packard, the orders
placed to the printer division by
resellers have much bigger swings
and variations that customer
demands
Bullwhip effect refers to the phenomenon where orders to the supplier tend
to have larger variance than sales to the buyer (i.e., information distortion)
and the distortion propagates upstream in an amplified form (i.e., variance
amplification).
Reasons for Bullwhip
Measuring Supply Chain
Performance
Assets committed to inventory
Inventory turnover
Average aggregate value of
inventory
Performance Measurement
Systems
 Balanced Scorecard (Kaplan/Norton,1992)
 The Performance Prism (Neely et al., 2002)
 Skandia’s Navigator Edvinsson / Marlone, 1997)
Sourcing Strategies
Regression
 The technique is used to find the equation that
represents the relationship between the
dependent and independent variables and
what proportion due to independent variables.
 Can be used to find out the cause of some
problems when the underlying relationship
among different variables is not known
Useful Websites
 madehow.com
 how products are made
 repository of how things are made in short
 Referenceforbusiness.com
 Encyclopedia of company history
 For fundas of management
 http://www.ibef.org/industry
 For snapshot of an industry including the key
figures
 A readymade ppt of the industry
Food for Thought…
 Some amount of dexterity in marketing and HR is also
required
 Hence a visiting company will expect a complete
solution from your side not just in operations.
 Show them that you have a command over theory
 Show them that you can work with unstructured
problems
 Concepts is your home turf. You cannot not
compromise on that
 You are also expected to know the industry in and out.
Knowledge of recent issues is a must.
 Know key terms in an industry. For eg API in a
pharmaceutical industry
Operations for JIT interview preparation

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Operations for JIT interview preparation

  • 2. What do Companies look for?  Resourcefulness: Ability to apply theoretical knowledge  Command over subject  Knowledge of buzzing concepts. Eg: RFID  Knowledge of the concerned industry  Problem solving attitude
  • 3. A framework of problem solving  Identify the problem  Specify the criteria based on which the solutions will be evaluated  Find out the possible solutions  Choose the best one based on the criteria (If multiple criteria are involved use linear programming)  Implement the solution
  • 4. Statistical Process Control Control Charts Pareto Analysis Cause and Effect Diagrams Scatter Diagram Process Flowchart Process Capability
  • 7.
  • 8. Failure Mode Effect Analysis(FEMA) Failure Mode Cause of Failure Effect of Failure Corrective Action Stale low moisture content expired shelf life poor packaging tastes bad won’t crunch thrown out lost sales add moisture  cure longer better package seal shorter shelf life Broken too thin too brittle rough handling rough use poor packaging can’t dip poor display injures mouth chocking perceived as old lost sales change recipe change process change packaging Too Salty outdated receipt process not in control uneven distribution of salt eat less drink more health hazard lost sales experiment with recipe experiment with process introduce low salt version
  • 10. Project Management Steps: • Define activities • Sequence activities • Estimate time • Develop schedule Techniques: • Gant Chart • CPM/PERT
  • 20. Inventory Management Elements of Inventory Management Inventory Control Systems Continuous system (fixed order-quantity) Periodic system (fixed- timeperiod) Economic Order Quantity(EOQ) Models Re-order Point Order Quantity for Periodic Inventory System
  • 21. Role of Inventory Improve Matching of Supply and Demand Improved Forecasting Reduce Material Flow Time Reduce Waiting Time Reduce Buffer Inventory Economies of Scale Supply / Demand Variability Seasonal Variability Cycle Inventory Safety Inventory Figure Error! No text of Seasonal Inventory
  • 22. Inventory Management  Types of Inventory  Inventory Control System  Continuous system (fixed order-quantity)  Periodic system (fixed-time period)  EOQ  Reorder Point  Safety Stock  Two bin system  Lot Size  Kanban
  • 23. Sales and Operations Planning Process Copyright 2011 John Wiley & Sons, Inc.
  • 26. Customer Satisfaction Strategies Actual Performance Providing satisfiers (performance needs) can keep you in a market Providing delighters (unknown exciting characteristics) can get you market leadership. CustomerSatisfaction Very Satisfied Very Unsatisfied PerformsVeryPoorly You are “OK if you don’t provide them. PerformsVeryWell redial button on telephone receiver; spare change holders/ soft drink holders in automobiles; one-touch recording button on some VCRs; Customer Satisfaction Strategies – Kano Model
  • 27. Supply Chain: Manufacturing Example Cereal Manufacturer Flour Processor Polyethylene Bag Manufacturer Chemical Processor Farmer Oil Company Forest Lumber Provider Corrugated Manufacturer Grocery Distributor Retail Grocer Consumer 1st Tier Supplier 2nd Tier Supplier 2nd Tier Customer 1st Tier Customer 3rd Tier Supplier 3rd Tier Customer (Material) Products and Services Finance Information Demand Supply Upstream Internal Downstream Focal Company A Sample Supply Chain
  • 28. BENCHMARKING SUPPLYCHAIN USING FINANCIAL DATA Total Length of the Chain Days of Raw Material (DRM)+ Days in Work In Process + Days in Finished Goods Supply Chain Inefficiency Ratio: Supply Chain Management Cost (SCC) / Net Sales (NS) SCC = DC + INV * ICC Supply Chain Working Capital Productivity: Net Sales (NS) / Supply chain Working Capital (SWC) SWC = INV +AR–AP
  • 30. Toyota’s Seven Waste 30  Transportation  Inventory  Motion  Waiting Time  Overproduction  Over Processing  Defects (T I M W O O D)
  • 31. TYPES OF ACTIVITIES Value-added  Anything that directly adds value to the product or services as seen or experienced by the customer Non-value added  Waste (should be eliminated) Necessary non-value added  Non-value added, but necessary and hard to eliminate (e.g., planning, scheduling, purchasing, quality control, etc.) 31
  • 32. Necessary, nonvalue-added activities  Planning  Scheduling  Purchasing  Quality Inspection  Process/equipment changeover  Equipment preventive maintenance/repair  Others? Can these be eliminated? 32
  • 33. Bullwhip Effect The bullwhip effect is a phenomenon observed in supply chains where the demand variability increases as one moves up the supply chain from customers towards to distributors to manufacturers. At P&G, diaper orders issued by distributors have a degree of variability that cannot be explained by consumer fluctuations alone At Hewlett-Packard, the orders placed to the printer division by resellers have much bigger swings and variations that customer demands Bullwhip effect refers to the phenomenon where orders to the supplier tend to have larger variance than sales to the buyer (i.e., information distortion) and the distortion propagates upstream in an amplified form (i.e., variance amplification).
  • 35. Measuring Supply Chain Performance Assets committed to inventory Inventory turnover Average aggregate value of inventory
  • 36. Performance Measurement Systems  Balanced Scorecard (Kaplan/Norton,1992)  The Performance Prism (Neely et al., 2002)  Skandia’s Navigator Edvinsson / Marlone, 1997)
  • 38. Regression  The technique is used to find the equation that represents the relationship between the dependent and independent variables and what proportion due to independent variables.  Can be used to find out the cause of some problems when the underlying relationship among different variables is not known
  • 39. Useful Websites  madehow.com  how products are made  repository of how things are made in short  Referenceforbusiness.com  Encyclopedia of company history  For fundas of management  http://www.ibef.org/industry  For snapshot of an industry including the key figures  A readymade ppt of the industry
  • 40. Food for Thought…  Some amount of dexterity in marketing and HR is also required  Hence a visiting company will expect a complete solution from your side not just in operations.  Show them that you have a command over theory  Show them that you can work with unstructured problems  Concepts is your home turf. You cannot not compromise on that  You are also expected to know the industry in and out. Knowledge of recent issues is a must.  Know key terms in an industry. For eg API in a pharmaceutical industry