Process Improvement 101

You’ve seen it too often; dreadfully boring PowerPoint presentations killing audience participation.  Or one assertive executive forcing his or her view on how business processes and SAP should work. How about company projects to improve the Supply Chain based on which VP yells the loudest? All these methods are incredibly outdated and as technology and processes become more and more sophisticated you need to capitalize on your best...

There are a few ways to create a world class supply chain. When I talk about Supply Chain I’m starting at the Sales and Operations Plan and integrating all key functions to make that plan a success. Oliver Wight I’ve recently completed participating in a project based on the principals of the Oliver Wight system of Sales and Operational Planning excellence.  What I admire about this methodology is that it is a very holistic approach...

A few areas I have experience with. Master Data – It all starts here. The Master data process must insure that data input is 100% accurate and efficient. Sales and Operations Planning Smoothing – The Sales plan will blow down to your demand affecting master scheduling, capacity, and subsequently MRP and Shop floor control. MRP Exception Message measurements – Exception messages indicate that there is an exception to...

Company’s resources must work towards the same goals. Once the Key Performance Indicators are in place, people throughout the company will share the same vision and have overlapping common goals. Executives must share their vision and expectations to all levels of the company. Because the supply chain is a set of subsequent processes it is absolutely essential that excellent communication information exchange be maintained to...

Companies are in business to make money and a profit. In order to do both, company executives must be able to define performance measurements and have clear performance indicators. Key Performance indicators in the Supply Chain include: Percentage of quality rejects. Forecast Bias Forecast Accuracy Total Inventory Level Inventory turns Inventory days of supply Production to schedule Delivery to schedule (procurement) Exception...

ERP (Enterprise resource planning) systems integrate and automate business practices including Finance, Sales, Operations, Warehouse and any other aspects of a company engaged in manufacturing products or services. SCM (Supply chain management) network includes MRP planning, sourcing, procurement, inventory, production, associated master data and all logistics management activities. The primary objective of supply chain management is...