supply chain management pdf
In a recent article, I focus on the question of the operation of any organization has much to offer in terms of allowing the management of know what works and what needs to be addressed. Once you've agreed on this, the following questions generally relate to what to do and how. The key to success is make executives visibility into the operation to focus can be placed on issues that 1) the field and 2) can be controlled and affected. Monitoring factors current and future performance will be much more effective than monitoring the implementation of decisions taken in the past. For example, controlling the buying process to buy only what you need when you need to affect the bottom line much more than paying attention to the utilization rate of a fixed asset that was purchased and paid for some time. Three steps can be used to facilitate this monitoring process of the key issues for improving performance:
– Important measure few performance criteria
– Analyze results and recommend actions
– Implement Focused Improvement Activities
Measurement activities should be addressed the themes of the life of the line that must be met for the organization to survive. They also have to be based on facts, without emotional influence, so that process owners can objectively evaluate their performance and identify issues. Selecting a few key measures that tie directly to success is focus attention on the factors affecting success and allow people to get a quick background picture of current performance. Using the details of such metrics for provide more detailed information on specific performance is fine, but more important is that the right message is received by the appropriate people by far higher level. To focus on the following areas:
Customer Value: This is the most important area for any organization. What the customer value is seen as the only thing that is important for the organization. Having everyone understand how their actions relate to what the customer wants allowing them to re-evaluate what they do so they can focus on removing non-value added waste. One way to think of value-added activities is to consider if an element can appear on the invoice for the activity in question. If not, then its value must be questioned. Suggested measures include collection here on time, total time of orders, complaints about the quality / performance, and repeat business or customer loss. These indicators should be at the customer level rather than departmental level as the customer sees an organization, not a group of departments, some that work well and others do not.
The operating performance: Flexible operational will enable the organization to adapt to changes in demand without having to make big sacrifices to do so. By making a connection between what the operation no (current supply) and what to do (actual demand), participants can begin to understand which of their activities are wasteful and are an added value. Suggested measures in this area include the total operating performance (as defined in deliveries to customers, not additions to the inventory) time lead processing (quoted in cash), non-capital (inventory, supplies, etc., not fixed assets), and the ability to make changes to the calendar.
Financial: cash. Let people know what is happening with the money in the organization on a regular basis (weekly or daily) and let them know how they affect the flow cash. Once employees understand this and see its impact, which probably will focus more on making good decisions. Obviously, this information should be presented in accordance with the policy of sharing corporate information, but most people can relate their activities with the money spent, the more it can affect the result. Some suggestions include cash flow – arrivals and departures, spending trends in terms of shipments, and comparisons with the plan complies with the differences in volume. Simply indicate the baseline is usually ineffective because people can not relate their actions to this extent.
Too often metrics are created, detailed and advertising have little effect on performance improvement. To be effective, it is important to improve visibility for drivers operating executive, replacing "gut-feel" decisions "based on fact" decisions and educate everyone in the organization about the operational life conductors of the line of action. When making a direct connection between performance metrics and actions of individuals, the positive results of the improvements are possible.
They are the best in its class?
Profit in Sustainability #2 – Carbon Efficient Supply Chain Nov 18 2009