The document discusses concepts related to supply chain management including lean approaches, postponement, order penetration points, and value offering points. It provides examples of how companies have implemented postponement strategies to improve service levels and reduce costs. It also discusses standard versus specialized products and how decoupling points can be used to configure supply chains.
A simple, straight forward set of 25 slides which provides the basics of S&OP (Sales & Operations Planning) from concept to implementation. (Used to introduce and discuss S&OP concepts with clients and prospective clients.) S&OP is also know as IBF or IBP (IBF = Integrated Business Forecasting; IBP = Integrated Business Planning)
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This highly comprehensive presentation with over 470+ slides covers 30 common frameworks, models, methodologies and tools for business process improvement that are being used in manufacturing and service industries and the public sector.
A detailed summary presented in the simple what-why-how format with key concepts and principles are provided for each business process improvement framework.
The frameworks in this deck span across Strategy Deployment, Organization & Governance, Marketing & Sales, Quality Management, Change Management, and Operations.
INCLUDED FRAMEWORKS & METHODOLOGIES:
1. Business Model Canvas
2. Design Thinking
3. Customer Journey Mapping
4. Balanced Scorecard
5. Hoshin Kanri
6. Xerox Benchmarking Model
7. Kano Model
8. Cost of Quality Model
9. Total Quality Management Model
10. Baldrige Excellence Framework
11. EFQM Excellence Model
12. Shingo Model for Operational Excellence
13. ISO 9001:2015 Quality Management System
14. Business Process Reengineering
15. Six Sigma
16. 8D Problem Solving Process
17. 5S Principles
18. Visual Management
19. Kaizen
20. Eight Wastes of Lean
21. Lean Manufacturing System (TPS)
22. Value Stream Mapping
23. PDCA Problem Solving Process
24. Root Cause Analysis (RCA)
25. Standard Work
26. Total Productive Maintenance
27. Gemba Walk
28. Training Within Industry (TWI)
29. ADKAR® Model for Individual Change
30. Kotter’s Change Management Model
The level of detail varies by framework, depending on the nature of the business process improvement model. Examples and templates are provided.
Alternatively, these slides can be used to complement your in-house training materials.
The world is changing – how about your Operations Strategy?
The world is changing rapidly – same goes for your customers and suppliers. You are required to constantly improve your operations. Is optimising your current operating model sufficient or do you need to rethink?
A great Operations Strategy is what makes the sum of all operational capabilities of your business a competitive advantage.
Does your Operations Strategy fit in relation to environmental changes or changes in future customer demand?
A simple, straight forward set of 25 slides which provides the basics of S&OP (Sales & Operations Planning) from concept to implementation. (Used to introduce and discuss S&OP concepts with clients and prospective clients.) S&OP is also know as IBF or IBP (IBF = Integrated Business Forecasting; IBP = Integrated Business Planning)
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
This highly comprehensive presentation with over 470+ slides covers 30 common frameworks, models, methodologies and tools for business process improvement that are being used in manufacturing and service industries and the public sector.
A detailed summary presented in the simple what-why-how format with key concepts and principles are provided for each business process improvement framework.
The frameworks in this deck span across Strategy Deployment, Organization & Governance, Marketing & Sales, Quality Management, Change Management, and Operations.
INCLUDED FRAMEWORKS & METHODOLOGIES:
1. Business Model Canvas
2. Design Thinking
3. Customer Journey Mapping
4. Balanced Scorecard
5. Hoshin Kanri
6. Xerox Benchmarking Model
7. Kano Model
8. Cost of Quality Model
9. Total Quality Management Model
10. Baldrige Excellence Framework
11. EFQM Excellence Model
12. Shingo Model for Operational Excellence
13. ISO 9001:2015 Quality Management System
14. Business Process Reengineering
15. Six Sigma
16. 8D Problem Solving Process
17. 5S Principles
18. Visual Management
19. Kaizen
20. Eight Wastes of Lean
21. Lean Manufacturing System (TPS)
22. Value Stream Mapping
23. PDCA Problem Solving Process
24. Root Cause Analysis (RCA)
25. Standard Work
26. Total Productive Maintenance
27. Gemba Walk
28. Training Within Industry (TWI)
29. ADKAR® Model for Individual Change
30. Kotter’s Change Management Model
The level of detail varies by framework, depending on the nature of the business process improvement model. Examples and templates are provided.
Alternatively, these slides can be used to complement your in-house training materials.
The world is changing – how about your Operations Strategy?
The world is changing rapidly – same goes for your customers and suppliers. You are required to constantly improve your operations. Is optimising your current operating model sufficient or do you need to rethink?
A great Operations Strategy is what makes the sum of all operational capabilities of your business a competitive advantage.
Does your Operations Strategy fit in relation to environmental changes or changes in future customer demand?
Sales and Operations Planning (S&OP) OverviewMichael Ryan
Improved revenues, business performance, and customer satisfactions are outcomes of a strong Sales and Operations Planning (S&OP) process.
S&OP can be applied to a variety of industries, from cosmetics to aftermarket parts manufacturers.
Value stream mapping is a practical and highly effective way to learn to see and resolve disconnects, redundancies, and gaps in how work gets done.
This VSM project template helps you and your project team to put together a "storyboard" for effective presentation to your key stakeholders. It includes four key phases:
1) Define and pick product/service family
2) Create a current state map
3) Develop a future state map
4) Develop an implementation plan
This document consists of a VSM project template in Powerpoint format and a set of Excel templates comprising VSM charter, Results table, Implementation Plan and common VSM icons.
What is Value Stream Mapping?
History:
What is Value?
What is a Value Stream?
Different things flow through the Stream:
Reason for Mapping & Analysis :
Objectives:
Team Members and Roles in VSM Study Project:
How to create a Value Stream Mapping?:
Value Stream Mapping Process with example
Step 1 - Gather Data and Information:
Step 2 - Create a Current State Map
VSM Study Symbols:
Collecting Data and Time Studies in VSM Study:
Examples of data required in this study:
Process Steps in VSM Study:
Analysis of the Current State Map:
Step 3 – Future State Map & Action Plans:
Creating an Ideal and Future State
Analysis of Future State Map:
Step 4 – Execute the Plan:
Step 5 – Align & Analysis of Current and Future State:
Keys Points for Successful VSM Study:
Mouhcine NAHAL
Sales & Operations Planning (S&OP): An IntroductionSteelwedge
Do you know the secret to a successful Sales and Operations Planning process?
Your ability to troubleshoot issues, plan for unexpected events, and maintain a reliable, single set of planning numbers is drastically affected by people, process and technology.
Educate your colleagues or refresh your own skills with the new introduction to S&OP presentation.
For more information about S&OP and how Steelwedge can help your business, please visit: http://www.steelwedge.com/resources/sales-and-operations-planning-intro/
Helping CFOs, COOs, and Supply Chain Heads of diverse blue-chip manufacturing organizations improve working capital, budgeting, planning, and risk management through inventory optimization analytics
Recorded webinar: http://bit.ly/1uVqMJC
Subscribe: http://www.ksmartin.com/subscribe
Purchase the book: http://www.bit.ly/VSM
These are slides from a webinar done with APICS Heartland on the topic of Value Stream Mapping.
This webinar covers:
• How to use value stream mapping as an organizational transformation & leadership alignment tool
• How to plan for a value stream mapping activity
• The mechanics of mapping, including key metrics
for office/service/knowledge work
• How to create an actionable Value Stream Transformation Plan
Sales & Operations Planning is popularly known as S&OP and is a process which has evolved from SCM. It looks at balancing demand with supply and can be applied in most of the industries. The phase- wise process is depicted in the presentation
Sales and Operations Planning (S&OP) OverviewMichael Ryan
Improved revenues, business performance, and customer satisfactions are outcomes of a strong Sales and Operations Planning (S&OP) process.
S&OP can be applied to a variety of industries, from cosmetics to aftermarket parts manufacturers.
Value stream mapping is a practical and highly effective way to learn to see and resolve disconnects, redundancies, and gaps in how work gets done.
This VSM project template helps you and your project team to put together a "storyboard" for effective presentation to your key stakeholders. It includes four key phases:
1) Define and pick product/service family
2) Create a current state map
3) Develop a future state map
4) Develop an implementation plan
This document consists of a VSM project template in Powerpoint format and a set of Excel templates comprising VSM charter, Results table, Implementation Plan and common VSM icons.
What is Value Stream Mapping?
History:
What is Value?
What is a Value Stream?
Different things flow through the Stream:
Reason for Mapping & Analysis :
Objectives:
Team Members and Roles in VSM Study Project:
How to create a Value Stream Mapping?:
Value Stream Mapping Process with example
Step 1 - Gather Data and Information:
Step 2 - Create a Current State Map
VSM Study Symbols:
Collecting Data and Time Studies in VSM Study:
Examples of data required in this study:
Process Steps in VSM Study:
Analysis of the Current State Map:
Step 3 – Future State Map & Action Plans:
Creating an Ideal and Future State
Analysis of Future State Map:
Step 4 – Execute the Plan:
Step 5 – Align & Analysis of Current and Future State:
Keys Points for Successful VSM Study:
Mouhcine NAHAL
Sales & Operations Planning (S&OP): An IntroductionSteelwedge
Do you know the secret to a successful Sales and Operations Planning process?
Your ability to troubleshoot issues, plan for unexpected events, and maintain a reliable, single set of planning numbers is drastically affected by people, process and technology.
Educate your colleagues or refresh your own skills with the new introduction to S&OP presentation.
For more information about S&OP and how Steelwedge can help your business, please visit: http://www.steelwedge.com/resources/sales-and-operations-planning-intro/
Helping CFOs, COOs, and Supply Chain Heads of diverse blue-chip manufacturing organizations improve working capital, budgeting, planning, and risk management through inventory optimization analytics
Recorded webinar: http://bit.ly/1uVqMJC
Subscribe: http://www.ksmartin.com/subscribe
Purchase the book: http://www.bit.ly/VSM
These are slides from a webinar done with APICS Heartland on the topic of Value Stream Mapping.
This webinar covers:
• How to use value stream mapping as an organizational transformation & leadership alignment tool
• How to plan for a value stream mapping activity
• The mechanics of mapping, including key metrics
for office/service/knowledge work
• How to create an actionable Value Stream Transformation Plan
Sales & Operations Planning is popularly known as S&OP and is a process which has evolved from SCM. It looks at balancing demand with supply and can be applied in most of the industries. The phase- wise process is depicted in the presentation
Job-shop manufacturing environment requires planning of schedules for the systems of low-volume having numerous variations. For a job-shop scheduling, ‘k’ number of operations and ‘n’ number of jobs on ‘m’ number of machines processed through an assured objective function to be minimized (makespan). This paper presents a capable genetic algorithm for the job-shop scheduling problems among operating parameters such as random population generation with a population size of 50, operation based chromosome structure, tournament selection as selection scheme, 2-point random crossover with probability 80%, 2-point mutation with probability 20%, elitism, repairing of chromosomes and no. of iteration is 1000. An algorithm is programmed for job shop scheduling problem using MATLAB 2009 a 7.8. The proposed genetic algorithm with certain operating parameters is applied to the two case studies taken from literature. The results also show that genetic algorithm is the best optimization technique for solving the scheduling problems of job shop manufacturing systems evolving shortest processing time and transportation time due to its implications to more practical and integrated problems.
The power of decoupling by Chad Smith.
Presented during the 37th annual SAPICS conference and exhibition held at Sun City, South Africa from May 31 to 2 June 2015.
Coop Dagligvaruhandel är ett affärsområde inom Kooperativa Förbundet (KF). Coop bedriver dagligvaruhandel inom butikskedjorna Coop Forum, Coop Extra, Coop Konsum, Coop Nära samt Mataffären.se och Daglivs
I recently spoke at the BPO India Forum event on the topic of Workforce productivity & the role of services workforce in BPOs in driving end consumer experience. I have suggested an approach for organizations to achieve significant improvements in service delivery while keeping costs constant, thereby allowing the BPO to achieve non-linear growth.
Establish a Solid Content Creation Plan with 3-D Content MappingPardot
Learn how 3-D content mapping helps you create a thorough content marketing plan. Learn about:
- Message types, including persona identification
- Implementation of marketing content resources
- Getting the most from your content resource efforts
Add Fuel to Your Campaign Fires with 3-D Content MappingPardot
Marketing automation experts Micky Long (Vice President, Arketi Group) and Derek Grant (SVP of Sales, Pardot) give you an in-depth look at taking your content from one-dimensional to 3D in this hour-long, information-packed webinar.
Innovative Outsourcing Deal Structures by Trowbridge Group Innovative Outsourcing Deal Structures by Trowbridge Group Innovative Outsourcing Deal Structures by Trowbridge Group, Ben Trowbridge, CEO & Managing Partner, Trowbridge Group, outsourcing, innovative, January 25, 2005
Teradata Demand Chain Management (DCM): Version 4Teradata
Teradata Demand Chain Management provide you with improved customer service levels, optimized inventory assortments and promotion management, fast ROI, and power and scalability. Learn more about what this newest version of DCM provides businesses. Includes screen shots and solution details. For more information, go to http://www.teradata.com/t/products-and-services/teradata-demand-chain/.
A presentation on what MRO customers are looking for in 2009. Includes demongraphics on how a company can judge has efficient and effective they are at buying MRO materials
Conferencia Simultánea CISCO / Logicalis
León Grekin, Director Financial Services - Cisco Systems, Inc.
12º Congreso Internacional de Tecnología para el Negocio Financiero
Achieving Dialogue In The Age Of The Omni-Channel CustomerG3 Communications
"Blast" marketing strategies of the past are no longer sufficient to engage today's customers and foster loyalty. Typical campaign response rates have plummeted while customer opt-out rates have ascended, limiting your ability to converse with even your most valuable customers. New automated dialogue strategies can help retailers create a seamless experience across all channels and engage with each of their customers as individuals, connecting every customer communication - outbound, inbound, marketing, sales or service - into an ongoing dialogue where customer insight and understanding forms the basis for each and every interaction.
4C Associates has the insight, technology and experience to drive rapid profit improvement.
We offer specialist consulting, technology and managed services to transform your costs. We apply industry and functional expertise to deliver exceptional benefits.
Accpac to QuickBooks Conversion Navigating the Transition with Online Account...PaulBryant58
This article provides a comprehensive guide on how to
effectively manage the convert Accpac to QuickBooks , with a particular focus on utilizing online accounting services to streamline the process.
Skye Residences | Extended Stay Residences Near Toronto Airportmarketingjdass
Experience unparalleled EXTENDED STAY and comfort at Skye Residences located just minutes from Toronto Airport. Discover sophisticated accommodations tailored for discerning travelers.
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Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Taurus Zodiac Sign_ Personality Traits and Sign Dates.pptxmy Pandit
Explore the world of the Taurus zodiac sign. Learn about their stability, determination, and appreciation for beauty. Discover how Taureans' grounded nature and hardworking mindset define their unique personality.
Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...
Push & pull v1.0-c
1. As fo 2009.09.
Lean SCL Approach Differentiation is our pride!
Enterprise now demands New Approaches for Business Innovaion that are dynamically appealing and practically executing.
It is an important part of doing business. Lean Enterprise Consulting can differentiate your company form the competition.
린 공급망 물류 접근방법
2. Page 2
Postponement & Delayed Differentiation
Storage media manufacturer found that being able to offer CD/DVD media in many formats, speed, and
packaging options was a competitive advantage. With a low-cost supplier in Taiwan they have
implemented “Postponement Centers” in the U.S. that give them the ability to fulfill demand in a package
to order scenario.
• Significant service
improvements
• 27-point increase in
Better service,
current business
Without
model postponement,
service levels
OTIF goals would
• $Millions in service require very large
penalties eliminated Diskette
Inventory
• Product line turned Value inventories.
profitable
• 5% increase in Current
revenue Diskette
• 20% reduction in Optimized
Postponement
total inventory
investment
Service Level
• Significant reduction Line Item Fill Rate:
71% 98%
in total supply chain On-time In-full Rate: 49%* 91%
cost
3. What Should Your Supply Chain Be? Differentiation is our pride!
• Customer interface
– lead time vs frequency of demand
• Efficiency
– demand volatility vs margin
• New products
– market life vs design time
• Economies of scale
– market size per plant vs transport % of price
• Power position
– importance of supplier to customer vs customer to supplier
• Decoupling point
– market lead time vs production lead time
Focus and Essence! 3
4. The “dilemma of operations planning” Differentiation is our pride!
Focus and Essence! 4
5. The “dilemma of logistics management” Differentiation is our pride!
Level Service Quality
Service Quality
Inventory
Inventory
Focus and Essence! 5
6. Elements of the SCM Concept Differentiation is our pride!
Elements of Upstream SCM Elements of Downstream SCM
• Sourcing strategies • Inventory & warehouse management
• Multivs. Single sourcing • Synchronized production
• Strategic partnerships • Demand Management
• Supplier development • Third party logistics
• Vendor Managed Inventories • Direct distribution
(VMI) • Efficient Consumer Response
• JIT deliveries and supplies • Postponement
• Open Calculations • Continuous Replenishment
• Joint product development • Cross Docking
• Technology Management • POS
Focus and Essence! 6
7. The Demand-Supply Chain Differentiation is our pride!
Order Penetration Point (OPP)
•Determines supplier response, i.e.,
how and when is the product
allocated to the customer
•Determines the economics of the
supplier
Value Offering Point (VOP)
•Defines customer decision
making, i.e., how and when is
customer demand allocated to
the supplier
•Defines the economics of the
customer
Focus and Essence! 7
8. Order Penetration Point (OPP) Differentiation is our pride!
The OPP is the point in the SC at which customer demand is allocated to the product.
Focus and Essence! 8
9. Value Offering Point (VOP) Differentiation is our pride!
The VOP define show and why the customer makes the purchase decision.
Focus and Essence! 9
12. Standard vs Special Differentiation is our pride!
The Products are Different
•Low variability •High variability
•High volume for •Low volume for each
each variant variant
•Low price •High price
•Small size •Bigger size (typical)
•Impulsive purchase/ •Investment
supplement
Focus and Essence! 12
13. Standard vs Special Differentiation is our pride!
Example: BeoDirect
• Value from “Instant
Acquisition”
• Impluse purchase/gifts
• Plug and Play
• Volume Flexibility
• Flow/Kanban
• Quality and Speed
• Automatic Scheduling
• Capacity Leveling
Focus and Essence! 13
14. Standard vs Special Differentiation is our pride!
Example: B1 Configured
• Value from Modification
(mood) and “Instant
Acquisition”
• Volume Flexibility
• Postponement
• Quality and Punctuality
• Forecast Driven
• Capacity Leveling
Focus and Essence! 14
15. Standard vs Special Differentiation is our pride!
Example: Custom
• Value through
customization
• Home installation
• Individualization
• Variant Flexibility
• Postponement
• Quality and Punctuality
• Surpluses Capacity
(quick assembly)
Focus and Essence! 15
16. Standard vs Special Differentiation is our pride!
VOP and OPP – 5 Basic Steps
1. Identify the customer´s demand chains.
(Note that a customer can have a number of different demand chains)
2. Define the potential linkage points for the supplier to the customer
demand chains.
What are the potential VOP´s?
3. Identify your extended supply chains
4. Define the potential linkage points for the customer to the supply
chains.
What are the potential OPPs?
5. Try out the possible configurations and evaluate the cost and benefit
for your self and the customer.
Are there win-win solutions?
Focus and Essence! 16
17. Standard vs Special Differentiation is our pride!
Case: Dell´s Direct Model
Focus and Essence! 17
18. Standard vs Special Differentiation is our pride!
Case: Baxter´s ValueLink
Focus and Essence! 18
19. Standard vs Special Differentiation is our pride!
Before: Transactional business
Transactional business: supplier offers spare parts and maintenance services
as requested by customer
Demand chain
Maintenance Inventory mgmt
Purchasing
planning / maintenance
Local service Regional
Manufacturing
center supply center
Supply chain
• Customer’s VOP located at purchasing, 3 demand types
• Supplier’s performance measured in lead-time, on-time delivery etc.
• Supplier’s OPP typically located at local service center to meet strict
lead-time requirements, large inventories at local level
Focus and Essence! 19
20. Standard vs Special Differentiation is our pride!
Current: Maintenance service agreement
Increased supplier responsibility: customer’s maintenance planning and
operations outsourced to supplier
Demand chain
Maintenance Inventory mgmt
Purchasing
planning / maintenance
Local service Regional
supply center Manufacturing
center
Supply chain
• Customer’s VOP located at maintenance planning: reduces work (less
unplanned production shutdowns, smaller spare part consumption)
and allows customer to take advantage of supplier’s expertise
• Supplier’s changed role. => Supplier’s performance measured in
process uptime
• However, supplier’s OPP has not been moved
Focus and Essence! 20
21. Standard vs Special Differentiation is our pride!
Future: New opportunities to benefit operationally (1/3)
Opportunity to increase supplier’s operational efficiency
Demand chain
Maintenance Inventory mgmt
/ maintenance Purchasing
planning
Local service Regional
supply center Manufacturing
center
Supply chain
• The reduced number of emergencies, earlier access to demand
information and new performance measures provide the supplier
with an opportunity to move the OPP upstream to the regional
supply center or even to manufacturing
• The operational efficiency comes from reduced inventories
Focus and Essence! 21
22. Standard vs Special Differentiation is our pride!
Future: New opportunities to benefit operationally (2/3)
• Moving the OPP is not the only opportunity
• Planning and organizing the customer’s maintenance operations offers an
opportunity to affect demand
– equipment and part standardization increases inventory efficiency and
reduces risk of stocking the wrong product
• Demand information being passed on by the supplier’s own experts improves
quality of demand information
– fewer errors mean reduced hassle for both customer and supplier
• Moving of the VOP brings an opportunity to increase service and operational
efficiency simultaneously
• However, the supplier needs to develop its supply chain management skills to
be able to realize the opportunity
– supplier needs to actively change performance measures
– supplier needs to learn how to utilize earlier, more accurate demand
information
– supplier needs to assess the time-criticality of its equipment and spare
parts and organize warehousing accordingly
– supplier needs to actively promote equipment standardization
Focus and Essence! 22
23. Standard vs Special Differentiation is our pride!
Future: New opportunities to benefit operationally (3/3)
OPPORTUNITY REQUIRED MANAGEMENT ACTIONS BENEFIT
Change
performance
measures Process
Utilise increased optimisation
planning
possibilities
Efficiency
Capture earlier
access to Easier to meet
demand the targets
Moving VOP information
backwards Use demand
information to
Customer
improve planning
Capture better service
accuracy
quality of
demand
information
Less errors
Reduce
SKU’s to be
Use supplier’s
controlled
possibility to
influence to
demand
Focus and Essence! 23
25. Push/Pull View Differentiation is our pride!
• Supply chain processes fall into one of two categories depending on the
timing of their execution relative to customer demand
– Pull: execution is initiated in response to a customer order(reactive)
– Push: execution is initiated in anticipation of customer orders(speculative)
– Push/pull boundary separates push processes from pull processes
Focus and Essence! 25
26. Push/Pull View Differentiation is our pride!
Focus and Essence! 26
27. Definitions from APICS Dictionary, 11th Edition Differentiation is our pride!
• “decoupling points : The locations in the product structure or distribution
network where inventory is placed to create independence between
processes or entities. Selection of decoupling points is a strategic decision
that determines customer lead times and inventory investment. See: control
points.”
• “control points : In the theory of constraints, strategic locations in the
logical product structure … Detailed scheduling instructions are planned,
implemented, and monitored at these locations…”
• “order penetration point : The key variable in a logistics configuration;
the point (in time) at which a product becomes earmarked for a particular
customer. Downstream from this point, the system is driven by customer
orders; upstream processes are driven by forecasts and plans. Syn: principle
of postponement.”
• “postponement : A product design strategy that shifts product
differentiation closer to the consumer by postponing identity changes, such
as assembly or packaging, to the last possible supply chain location.”
Focus and Essence! 27
28. Types of Supply Chain Model(or Production Process) Differentiation is our pride!
“i”
Basic linear production
Example?
Focus and Essence! 28
29. Types of Supply Chain Model(or Production Process) Differentiation is our pride!
“T”
Many simple product or
packaging variations or
distribution points
Low variety of products
Example?
Focus and Essence! 29
30. Types of Supply Chain Model(or Production Process) Differentiation is our pride!
“V”
Many end products
Few raw materials
Example?
Focus and Essence! 30
31. Types of Supply Chain Model(or Production Process) Differentiation is our pride!
“A”
Few end products
Many raw materials
and sub-assemblies
Example?
Focus and Essence! 31
32. Types of Supply Chain Model(or Production Process) Differentiation is our pride!
“X”
Many end products
Many raw materials
and sub-assemblies
Example?
Focus and Essence! 32
33. Types of Supply Chain Model(or Production Process) Differentiation is our pride!
Which One?
Focus and Essence! 33
34. Generic Customer Order Decoupling Points Differentiation is our pride!
Focus and Essence! 34
35. Generic Customer Order Decoupling Points Differentiation is our pride!
Focus and Essence! 35
36. Tradeoffs Differentiation is our pride!
Focus and Essence! 36
37. A familiar example – MTS vs ATO Differentiation is our pride!
Example 1
Focus and Essence! 37
38. A familiar example – MTS vs ATO Differentiation is our pride!
Example 2
Focus and Essence! 38
39. A familiar example – MTS vs ATO Differentiation is our pride!
Example 3
Focus and Essence! 39
40. A familiar example – MTS vs ATO Differentiation is our pride!
Example 4
Camco – Montreal (owned by GE Canada)
Washers, Dryers, and Dishwashers
450 models, $500 million sales
1980’s : 1990’s :
120 day planning horizon, 60 days frozen Make-to-Order project
Growing inventories Kanban project
75% fill rate 95% customer satisfaction
Labor-intensive forecast process 30 families, less detailed forecast
120 day production cycle 3 day order turnaround
12 week supply of elec wires (external 3 day supply of elec wires (external
supply) supply)
2004: still Canada’s #1 appliance maker, and #1 supplier of GE dryers; inventory turns
were about 12 (vs sales), and the company credits their Six Sigma program for reduced
quality costs and enabling other changes
Focus and Essence! 40
42. Types of CODP model Differentiation is our pride!
Concurrent CODPs per product or product-market combination
Focus and Essence! 42
43. Types of CODP model Differentiation is our pride!
Multiple CODPs per product component
Focus and Essence! 43
44. Types of CODP model Differentiation is our pride!
Multiple CODPs per level of customer commitment
Focus and Essence! 44
45. Types of CODP model Differentiation is our pride!
Multiple CODPs per interface in the chain network
Focus and Essence! 45
46. Types of CODP model Differentiation is our pride!
Example of a chain network configuration with multiple CODPs in dairy
Focus and Essence! 46
47. Types of CODP model Differentiation is our pride!
Example of a chain network configuration in Parquet Industry
Focus and Essence! 47
48. Types of CODP model Differentiation is our pride!
Example of a chain network configuration in Parquet Industry
Focus and Essence! 48
49. Types of CODP model Differentiation is our pride!
Example of TFT-LCD manufacturing process
Focus and Essence! 49
50. Types of CODP model Differentiation is our pride!
Example of Details in a Control Model with CODP
Focus and Essence! 50
51. Types of CODP model Differentiation is our pride!
The challenge of mass customization for the wood furniture sector in Quebec
(Lihra et al., 2005; Poulin et al., 2006)
Popularizing Varietizing Accessorizing Configuring Tailoring Servicing Adjusting Monitoring
Retailing Component
Distribution Packaging Finishing Assembling Supply Engineering Design
manuf.
Sale-2O
Ship-2O
Pack-2O
Finish-2O
Assembly-2O
Make-2O
Supply-2O
Engineer-2O
Design-2O
Focus and Essence! 51
52. CODP and customer order lead-time in MTS/ATO/MTO Differentiation is our pride!
Focus and Essence! 52
53. Postponement Differentiation is our pride!
Focus and Essence! 53