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Stream 3 – Operations Management
Dave Hinchman, CPIM
DEVELOPING A LEADING EDGE OPERATIONS & SUPPLY CHAIN STRATEGY IN A GLOBAL ENVIRONMENT
DEVELOPING A LEADING EDGE OPERATIONS & SUPPLY CHAIN STRATEGY IN A GLOBAL ENVIRONMENT
• Paramount to your business success. – What has worked in the past, probably will not tomorrow. – Facing changing business needs, mounting competition,
expanding markets, extended supply chains – you need fresh perspective on how to develop your plan.
• This presentation will help lead you - how to develop your winning strategy
My Background
• Current: Principal, Hinchman Consulting, LLC (John Deere Retired - 39yrs) – –APICS CPIM Instructor, APICS Corporate Finance Committee
• Prior: Led John Deere’s Quality & Production System for Supply Chain, Order Fulfillment and Lean Manufacturing globally.
• Previous Leadership positions: Operations, Mfg Engineering, Supply Management, IT SAP, Production Planning, and Order Fulfillment.
• Lead & Teach: APICS CPIM across JD, Operations & Supply chain courses globally, APICS Corporate Advisory Board, Speaker & Workshop leader at several International conferences including past several APICS International conferences, APICS 2015 Shanghai, IBF London & Amsterdam, SAPICS Sun City 2015 & 2016.
• Education: BS Industrial Engineering - Illinois, MBA Iowa, CPIM, JD Six Sigma Black Belt, Executive Education - MIT, Dartmouth, & Purdue
Issues with Current plan
– Focused on Business plan, • Forget their Supply chain & Operations plan
– What worked today, not tomorrow• Things change, products, competition, trade
agreements, demand shifts
– Focused on Main Operation in Home Market
– Each function works independently
– Done once & never revisited
Strategy Approach
• Use logic & data– Take emotion out
• Engagement – Everyone included & All agree on how to win
• Strategy event – Pre-Work
– 2-day workshop
– Mandatory - all functional decision makers
– Off site
Pre-Work - Demand
• ID Markets & Needs– What & where you need to compete on
• Demand Planning – Demand Lead time by region by product – each demand stream
– Demand curves - In season vs Out of season
Pre-Work - Supply
• Supply Planning
– Flexibility & Constraints – Man, Machine, Material
– Operations & Supply chain MCT maps
– Policy Alignment • Master Schedule, Customer Order, Supplier Order Change, &
Engineering Change
Pre-Work – Demand/Supply
• Speed– MCT maps with DLT for project/region
• Flexibility – Peak to Valley ratio maps
Pictures are worth a thousand words
Operation & Supply Chain Strategy Event – Day 1
• Set the tone – Senior Leader
• Decide on what you need to compete
• Analyze Pre-work data– Understand, Look for issues, What needs to change to win
• Let it soak overnight with Team building event
Operation & Supply Chain Strategy Event – Day 2
• Debrief Day 1, Identify Key Learnings
• Agree - What needs to be done
• Solutions & Prioritize- Cost/Benefit
• Short Term & Long Term projects to solve
• Priorities & Right function(s) to lead
Operation & Supply Chain Strategy Event
• Deliverables before you leave– All decision makers Agree on a plan to win
– Follow-up plan with “What by When by Who”
– Tie-in to your S&OP process to report out
– Set Date for next year’s event to revisit & fine-tune
• Celebrate your successful event