6811265 supply chain management vg

Prepared by: Vincent Gaspersz 1

SUPPLY CHAIN MANAGEMENTPresented By:

Vincent GasperszAPICS CFPIM

ASQ CMQ/OE, CQE, CQA, CSSBBIQF SSMBB

RABQSA QMS AuditorLean Six Sigma Master Black Belt


ObjectivesUnderstand global sourcing and distribution and other international issues of managing the supply chainExplain the strategic relationship among aliancesmembers of the supply chainRecognize how the choices and development of information technology affect the supply chain


Supply Chain Management

Supply chain management is the integration of the flow of all activities throughout improved supply chain relationships to achieve a sustainable competitive advantage.The supply chain includes: management of information systems, sourcing and procurement, production scheduling, demand fulfillment, cash flow, inventory management, warehousing, customer service, after market disposition of packaging and materials.


A Model of SCM

CustomerSatisfaction/value/Profitability/CompetitiveAdvantage

*Products**Services*

*Information**Financial**Demand*Forecasts*

MarketingSalesR&D

ForecastingProductionPurchasingLogistics

ISFinance

CSR

InterfunctionalCoordination

SupplyChainFlows

The Supply ChainThe Global Environment

Supplier’s Supplier Supplier Focal FirmCustomer’s Customer Customer


Supply Chain

Customers

Warehousing Transportation Vendors/plants/ports

Transportation

Factory

Transportation Warehousing Transportation

Information

flows


Evolution of Logistics Toward Supply Chain

Activity fragmentation to 1960 Activity Integration 1960 to 1990 2000+Demand forecastingPurchasingRequirements planningProduction planningManufacturing inventoryWarehousingMaterial handlingPackagingFinished good inventoryDistribution planningOrder processingTransportationCustomer serviceStrategic planningInformation servicesMarketing/salesFinance

Purchasing/MaterialsManagement

PhysicalDistribution

SCM

Logistics


The Activity Mix

Sourceof supply

Plants/operations Customers

Physical Supply Physical Distribution

Business Logistics

TransportationInventory maintenanceOrder ProcessingAcquisitionProtective packagingWarehousingMaterials handlingInformation maintenanceSupply scheduling

TransportationInventory maintenanceOrder ProcessingProduct schedulingProtective packagingWarehousingMaterials handlingInformation maintenance


The Critical Customer Service Loop

InventoryMaintenanceor supply

Transportation Customers

Customer order processing


Supply Chain Management Concepts

Market/industry analysis characteristics: they are defect free, just-in-time (JIT), use internal (supplier) engineering resources, provide the best total cost for company, have the best new technology and innovation cycles, they are generally first in marketplace with new improvements.Value chain mapping with critical standard of measure: best/fastest cycle time, best-usage practices vs. best-industry o best-technologies practices, best/lowest total cost, including process, transportation, and handling costs.Total cost of ownership (TCO) of the supply delivery system is the sum total of all the cost associated with every activity of the supply stream.


Internal Function of Supply Chain Management

Managing the different processes used in transforming the inputs provided by the supplier network.Production scheduling, which translates orders into actual production tasks.


External Function of Supply Chain Management

Selecting the right suppliersMaking sure the suppliers meet performance expectationsEmploying the appropriate contractual mechanismsMaintaining a good relationship with the suppliersActing as liaison between suppliers and other internal members


TIME-BASED COMPETITION

Earlier introduction of new productsHigher profitsIncreased market shareControl of inventory and overhead costsIncreased customer satisfactionDecrease in stored inventoryIncreased inventory flowLess reworkFaster company growthHigher product quality


Steps to Reducing Cycle Time

Establish a cycle-time reduction teamDevelop an understanding of the given supply chain process and current cycle time performanceIdentify opportunities for cycle-time reductionDevelop and implement recommendations for cycle-time reductionMeasure process cycle-time performanceConduct continuous improvement efforts for process cycle-time reduction efforts


Supply Chain ManagersUnderstand the best technology to use Can determine costKnow how to use, store, valuate, and improve a company productKnow which supplier has the best resourcesBenchmark with other customersHave clear and measurable business goalsDeliver the best products, costs, and processesHave a supply strategy


Customer Relationship Management (CRM)

Identify the most important customersDistribute value differently to customer based upon importanceCompete by broadening the scope of business with selected customersFocus on company’s ability to fulfill strategic needs of customersCompete by innovating ways to create new value for the customersDevelop a set of metrics to measure customer perfomance


Innovative Customer/Supplier Relationship and Agreements

Vendor-managed inventory (VMI)Quick response program (QRP)Virtual corporationOn-site vendor/customer representative


(Suppler Evaluation)


Quantitative Criteria and Weights


Supplier ImprovementA supplier may be audited before or during the contract, and the audit may include many of the following items:

• Management• Resource Management• Communication• Manufacture• Inspection Procedures• Design Control• Quality Planning• Purchasing• Quality Control• Quality Coordination• Data Systems• Quality Results


Supplier Improvement in the Real World

Honda Motors• Partnered with Parker Hannifin Corp

• Honda engineers worked over six Parker plants making basic efficiency changes saving Parker over $1.6 million a year.

Improvements in Parker products directly related to Honda’s developmental help

• Decreased cylinder line travel from 19 days to 5 minutes• Reorganized production process to decrease scrap from 5% to 2% and

increase output per man-hour by 30%

Areas Honda helped to improve do not all involve parts supplied to Honda

Why help suppliers improve areas that do not directly affect the company?“We want suppliers to be better companies because, ultimately, that

makes us a better company,” Richard Mayo, Honda purchasing executive


More Supplier Improvement in the Real World

Dell and Wal-Mart both use exclusive collaborations with suppliers to optimize efficiencies and cost.In particular, they share proprietary information (confidential financial data) to help improve their suppliers ability to meet future needs


Supplier Certification, Partnerships, and Alliances

The certification process described by the Customer/Supplier Technical Committee of ASQ is:

1. The customer and supplier shall have agreed upon specifications.2. The supplier shall have no product-related lot rejections for a

significant period of time.3. The supplier shall have no product-related lot rejections for a

stated period of time.4. The supplier shall have no nonproduct-related incidents for a

stated period of time.5. The supplier shall have a fully documented quality system, such as

ISO 9001.6. The supplier shall have successfully passed an on-site system

evaluation.7. The supplier must conduct inspections and tests, including

laboratory results and/or statistical process control (SPC).8. The supplier shall have the ability to provide timely inspection and

test data


Supplier LogisticsTraditional customer/supplier relationships have involved some assessment of incoming quality via source or incoming inspection. The supplier’s quality was not trusted and was monitored. This approach led to inefficient use of resources, late discovery of problems, inflated inventories, lengthy cycle times, etc.Ship-to-stock (STS) activities are part of the newer customer-supplier partnership. STS has three phases:

1. Candidacy: Review of the supplier’s past quality history, unique requirements, other background data, STS agreement criteria

2. Qualification: The supplier is surveyed as to adequacy and adherence to process controls and adequacy of the quality system.

3. Maintenance: System, process, and product audits, and any necessary related inspections.


Ship-to-stock AdvantagesMutual purchaser/supplier trustReduced inventory levelsReduced purchaser testing time and expenseReduced incoming rejectsReplacement of inspection activities with auditsEnhanced supplier quality responsibilitySupplier quality reputationIf all of the controls are in place for successful Ship-to-stock, a transition to just-in-time (JIT) is possibleJIT procurement focuses on rigid: Forecasting, Scheduling, Inventory cost control, Freight and transportation cost control


Ship-to-stock in the Real WorldShip-to-Stock

• Praxair MRC has developed, in partnership with customers, ship-to-stock systems and agreements. This allows Praxair MRC to deliver sputtering targets directly into a customer's production line without the need for any incoming inspection on the part of the customer. This capability provides the customer with improved Cost of Operations, reduced cycle time and is indicative of the excellent quality history from Praxair MRC products at the customer site.

• The ship-to-stock agreement also defines specific goals in terms of SPC (Cpk values, etc.) and definitions on major and minor changes.

• Products shipped to customer sites under this agreement can be specifically identified with labels and highlighted on relevant documents (packaging slips, etc.).


Lean PurchasingAn approach to purchasing that requires long-term agreements with few suppliers

Lean Purchasing Advantages:Lean Purchasing Advantages:•• Reduces the need for central warehousing and storageReduces the need for central warehousing and storage•• More personal relationship with suppliersMore personal relationship with suppliers•• LongLong--term relationships that help to certify suppliersterm relationships that help to certify suppliers•• Receiving inspection is reduced and in some cases eliminatedReceiving inspection is reduced and in some cases eliminated• Lowered variety in suppliers• Reliable delivery schedules• High quality materials used• Reduced waste


Benefits of Single-Source Supplier

Simpler traceabilityAbility to focus on processReduction in freight costsElimination of paperwork and excess handlingA more table schedule for suppliersA true feeling of alliance, communication, and mutual trust


Demands on Purchasing of LeanReduced number of suppliersStable and good communication throughout a firmLocating suppliers nearbyLong-term relationshipsHelping suppliers to increase quality


Differences between Lean and Traditional Purchasing

Lean PurchasingSmaller lot sizesMore frequent deliveriesNo rejection from the supplierLong-term contractsBuyer decides delivery scheduleInnovation encouragedMinimal paper workLess formal communication

TraditionalRelatively large lot sizesLess deliveries at higher quantities2% rejection from supplierLowest price is main objectiveTime consuming, formal paperworkFormal communication


Why organizations use Lean Purchasing

Reduce wasteIncreased cycle timesHigher quality in productsFewer suppliersReduction in warehousesDependable delivery


The End

Smarter:

• Shorter Cycle Time

• Smoother processes

• Simpler rules or procedures

SMARTERSpecific GoalsMeasurableAchievableResult-orientedTimelyEmpowermentReward & Recognition

Contact:Vincent GasperszPhone: 0251-332933 or

0813-1940-6433E-mail: [email protected]


BIODATAProf. Dr. Vincent Gaspersz, CQE, CQA, CMQ/OE, CSSBB/MBB, CFPIM, QMS-AProfessor (Guru Besar) Total Quality and Operations Management pada Program Magister Manajemen (S2) dan Doktor (S3) Universitas Trisakti, Juli 2002-sekarangMagister Sains Statistika Terapan IPB, Sep 1983- June 1985Doktor Teknik Sistem dan Manajemen Industri ITB, Jan 1988- Sep 1991Doctor of Science in Management of Engineering and Technology, Southern California University for Professional Studies, 1998-2000American Society for Quality (ASQ) Certified Manager of Quality and Organizational Excellence (CMQOE), USA, March 2006American Society for Quality (ASQ) Certified Quality Engineer, June 2006International Quality Federation (IQF) Six Sigma Master Black Belt, USA, August 2005ASQ Certified Six Sigma Black Belt, Certified Quality Auditor, RABQSA QMS AudiorCertified Quality Auditor (CIQA), Novo Quality Services (NQS) – Singapore, Sep 1994Certified Fellow in Production and Inventory Management (CFPIM), the American Production and Inventory Control Society (APICS) – USA, April 1998 Anggota Senior dari the American Society for Quality No. 00749775 sejak Feb 1994 -sekarangAnggota Senior dari the American Production and Inventory Control Society No. 1023620 sejak June 1995-sekarang


BIODATAPengalaman dalam Bidang Konsultasi dan Pelatihan di Industri (Perusahaan)

1. Menjadi Koordinator Pelatihan merangkap Instruktur dan Konsultan dalamBidang Manajemen Industri dan Kualitas pada Pusat Pelatihan Salim Group, 1991 - 1992.

2. Menjadi Manajer merangkap Instruktur dan Konsultan dalam Bidang ManajemenIndustri dan Kualitas pada Pusat Pelatihan Gajah Tunggal Group, 1992 - 1996.

3. Menjadi Instruktur dan Konsultan Utama dari Gramedia Pro-Q, LembagaPelatihan dan Konsultasi Kelompok GRAMEDIA, Jakarta, Sejak 1997 - 2003

4. Bekerja sebagai Instruktur dan Konsultan Profesional Mandiri (Independent Instructor and Consultant) dalam Bidang Manajemen Industri dan Kualitas sejakJuni 1996 – 2003 di Indonesia

5. Principal Consultant & Senior Coach dalam bidang Strategic Planning, Lean Enterprise, Quality Management System, and Integrated Performance Management System of MBNQA, Lean, Six Sigma and Balanced Scorecard, yang bertempat tinggal di Vancouver, Canada, 2003 – 2005.


BIODATAPengalaman Keterlibatan dalam Industri:1. Sebagai Anggota Tim ISO 9000 pada Perusahaan-Perusahaan dalam Lingkup Gajah Tunggal Group 1994 -

1996 Untuk Membantu: PT Gajah Tunggal, PT Filamendo Sakti, dan PT Gajah Tunggal Prakarsa. Perusahaan-perusahaan ini telah memperoleh sertifikat ISO 9002.

2. Membantu Mengintegrasikan Total Quality Management (TQM) dengan ISO 9002 pada PT Erna DjuliawatiPlymill, Kalimantan Barat, 1997.

3. Membantu Pembenahan Sistem Produksi pada PT Intinusa Rimbasari, 1998.4. Membantu Meningkatkan Efisiensi Industri Melalui Pembenahan Standard Operating Procedures (SOP) pada

PT Indah Kiat Pulp & Paper Tbk, 1998.5. Membantu menetapkan sistem manajemen industri dan kualitas pada PT Citra Serayu Mas Woodworking

Industries, 1999-20006. Membantu Perumusan Metode Pengukuran dan Evaluasi Teknologi Pertamina, 2001; dan Penyusunan Buku

Pengukuran Indeks Produktivitas Pertamina, 2002. 7. Menjadi Instruktur dalam Berbagai Topik Manajemen Kualitas dan Strategik pada Pusat Pelatihan Pertamina,

Jakarta sejak: 2000-sekarang.8. Sebagai Pembicara (Instruktur) Tamu pada Lembaga-lembaga: LPPM, Kursus Kader Pimpinan Pertamina-

Yayasan Patra Cendekia, Pusdiklat Pemda DKI Jaya, PT Astra International Tbk, PT Showa Indonesia Manufacturing, PT Asuransi Astra Buana, PT PLN UBS P3B Jawa-Bali, PT Telkom, PT Pertamina (Korporat), Badan Pendidikan dan Pelatihan PT Pertamina, PT Indah Kiat Pulp and Paper, PT BRI (Bank RakyatIndonesia), PT Semen Gresik, dan berbagai seminar publik maupun in-house (dalam perusahaan) sejak 1996 –sekarang.

9. Menjadi Direktur Lean Enterprise dan TQM pada Garibaldi Industries, Inc., Canada, 2003 – 2004.10. Principal Consultant dari Penaga Consult, Perusahaan Training dan Konsultansi di Canada, Malaysia dan

Indonesia, 2005-sekarang

6811265 supply chain management vg

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