Supply Chain Process Improvement Methodology V1

Columbia Tech Consulting, Inc.

Supply Chain Management

Improving the Processes

John Paulson,

Cell 503-819-0190,

Email [email protected]

John Paulson, Supply Chain and ERP Systems Consultant

Presented by


John Paulson, Supply Chain and ERP Systems Consultant

Over 15 years in manufacturing operations management with leading Northwest companies including

Panasonic Television, Panasonic/AKEI CD-ROM, SpaceLabs, Gretag Systems, and Data I/O.

John is the Founder of Columbia Tech Consulting, Inc. providing solutions consulting services in ERP,

supply chain, information systems including operational assessments, and process and systems

alignment and optimization to some of the nations leading companies.

John’s expertise in supply chain and ERP systems consulting have been requested by, and provided to,

national consulting firms as; Accenture, Ernst and Young, Cap Gemini, Delta Cubed, Panex Consulting,

Premier Consulting, AMX International, Foothills Consulting, Rapidigm Consulting, The Hunter Group,

Jagwire Group, PCM Solutions, Systems Management Inc., Versa Tech, PCI, and many more

Since 1997, John has consulted on 27+ ERP and Supply Chain engagements improving systems and

processes.

John Paulson,

Cell 503-819-0190,



John has provided consulting assistance to;


Where to start?

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Cell 503-819-0190,



System issues

Information not readily available

Manual processes everywhere

Excessive manual reports generated

Limited integration of information

Ineffective collaboration with interfacing departments

Product not available to ship

Parts are short for work orders

MRP providing inaccurate numbers

Part expedites are excessive

Inventory dollars climbing

The list goes on..

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Cell 503-819-0190,


Many times, it often starts with the constant complaints…

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Cell 503-819-0190,


• Key performance indicators

• Customer feed-back survey,

• ‘Top 5 Pain Points’ survey from departments

• Market analysis

• Benchmarking analysis

• Profit and loss analysis, and more

Supply chain issues can appear

in a variety of places


It begins with leadership building organizational

support for the supply chain improvement initiative

• Carefully choose the right person to lead, and promote the

initiative. This person ideally will be the spokesperson, facilitator,

project manager.

•Identify the executive sponsors /process owners by function.

These people will have the most to win, or lose, based on the

results / success of the initiative. They will support their individual

teams.


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Check your business tool box

Open the company toolbox to see what tools you have.

Take an inventory of the resources and knowledge you have in your

organization. You may be surprised of the talent, and their knowledge

of improvement tools who you may want to consider tapping into, to

leverage for your organizations process improvement initiative.


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Tools to look for include;


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Could use a few more tools?

That’s OK. This is where your organization will begin the journey

to learn very effective, powerful tools that will assist in your

supply chain improvement initiative


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A Continuous Improvement Program..

can transform your organization into a continual learning

organization, and continual improvement organization.

And, fill up the company toolbox.


Why an improvement program?

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Cell 503-819-0190,


In business, there is only one choice, change faster and more

effectively then your competition, or you may find your company

out of the game.


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First, the approach of an improvement program is;

1) To make change that would not have happened unless someone

had taken the initiative.

2) To make change that will have a significant long term positive

impact.

3) A simple, yet controlled, effective methodology for continual

learning and operational improvements.

Why not just make change as the problems arise?


Process Improvement Methodology

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An accelerated process improvement methodology that is unique,

simple, yet powerful and cost effective.

A streamlined, improvement methodology approach that is a

vehicle for learning the tools and methodology while working the

improvement project, real-time.

A ‘Just-in-Time’ approach to transferring the learning into action.



John Paulson,

Cell 503-819-0190,


.

The most important aspect of this program is that the intent for this

is to be a continual program of learning and continual

improvement to the organization.


Accelerated Methodology Benefits

Utilizing the accelerated methodology approach, the tools are quickly learned

and practiced in ‘real-time’ during projects, for accelerated results.

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Cell 503-819-0190,


Ideal for ‘Quick Hit’ target areas for immediate improvement

Provides for quality control / management approval at stages of the projects

Reduced time / cost in employee methodology and tools training, on and off-site

JIT approach to methodology training

Organizational and employee growth in knowledge gained from the process and tools

Project is owned by the teams

Consulting, training, subject matter expertise support on a ‘as-needed’ basis



Define

Plan

Analyze

Develop

Test

Measure

Implement

Monitor

Continuous

Improvement



Initial methodology & tools training, identify / prioritize critical

processes/systems to improve,

analyze current performance / initial assessments,

develop team resources / Project Charter

Understand requirements, expectations, gaps, process flow,

internal/external customers. Problem statement worksheet. Identify Cause

Plan the solution. Risk analysis.

Cost / Benefit analysis

Project Leads

Steering Committee

Process Owners

Pilot test solution / Proof of concept, document

results, any problems and unexpected

observations, make adjustments as necessary

Measure and study the results. Compare with

prediction. Document analysis / results

Adopt solution. Update SOPs

Continual improvement monitoring

Identify new improvements to propose

Train solution

Project Leads

Project Leads

Steering Committee approval

Project Leads

Steering committee approval

Q/A

Project Leads

Project Leads

Project Leads

Did not pass

expected

results

Educate,

Define & Plan

Analyze

Develop

Test

Measure

Implement

Monitor


1st Step

Leadership

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Cell 503-819-0190,


First, leadership takes the step to address the areas that need

improvement at a high level, and drive the supply chain improvement

initiative message to the organization, along with freeing up resources

to move the initiative forward. Leadership identifies the supply chain

improvement Steering Committee, and executive sponsors/process

owners to take the lead.


2nd StepUnderstand the Supply Chain

End-to-End Flow

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Cell 503-819-0190,


Development of the process flow map is a must for the beginning of a

supply chain improvements initiative. This is the basis of the existing

processes, and identifying critical points of constraint, bottlenecks, and

identification of primary and secondary areas for improvement..


3rd StepDefine the Problem

John Paulson,

Cell 503-819-0190,


Supply chain issues can show up in a variety of places;

• Key performance indicators

• Customer feed-back survey,

• ‘Top 5 Pain Points’ survey from departments

• Market analysis

• Benchmarking analysis

• Profit and loss analysis, and more.

The Steering Committee identifies the processes to improve based on

business objectives. There are tools that can be used during this particular

stage to identify and validate the critical processes to focus on.

Train team on methodology, roles, responsibilities, expectations.


4th StepPlan the Project

John Paulson,

Cell 503-819-0190,


The Steering Committee identifies what to accomplish in the improvement

of the process. This could be as simple as stating ‘Improve on-time

shipments to 95%’ for example. Identify the process owner, and team.

Develop the project charter to include; purpose of the document, project

background (problem definition, analysis, etc.) , project objectives, goals,

approach, scope, assumptions, cost, project team resource requirements,

roles, responsibilities, project governance, time-line, etc.


5th StepAnalyze

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Cell 503-819-0190,


At this stage, the project team takes over to study the process flow, baseline

data collection, identify the internal/external customers, understand the

requirements, develop a gap analysis, identify root cause to the problem.

Develop the problem statement.


6th StepDevelop Solution

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Cell 503-819-0190,


The team will plan the solution, develop the risk analysis, and develop

the cost/benefit analysis. The solution may include identifying ‘best

practices’, and a benchmark study. Once a potential solution has been

identified to test, a Steering Committee review and approval will be

required to move forward with solution test. It is possible, depending on

the complexity of the project, the solution approval process could be

limited to the process owner at this stage.


7th StepTest Solution, and Learn

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Cell 503-819-0190,


It is more important for the organization to understand the entire process is a learning

process, as is with the testing stage. The testing stage is a learning process first and

foremost. If the solution does not pass with the predicted results, that is OK. The

team most likely learned something very valuable. It is human nature to become very

frustrated if a test does not result with what was predicted. Again, the approach to

the improvement process is a learning approach, with the goal to improve.

If the test failed, the team will cycle back to the solution stage. This cycle may

happen several times which is OK, expect it, and learn from it.

Once the test passed with predicted results, a ‘proof of concept’ demonstration may

be a next step for the Steering Committee approval, or at minimum, process owner

approval.


8th StepMeasure the Solution

John Paulson,

Cell 503-819-0190,


Once the test past predicted results, measure the results, confirm

benefits meet the defined success criteria, document analysis, obtain

approval from process owner and Steering Committee to implement.


9th StepImplement the Solution

John Paulson,

Cell 503-819-0190,


Adopt the solution; train people of the process, update standard operating

procedures, update process flow chart, plan cut-over from old process to

new process, communicate change.

Depending on the complexity of the change, the cut-over process and plan

could be a project in itself to manage


10th StepMonitor the Process

John Paulson,

Cell 503-819-0190,


Monitor the process for continual improvement opportunities.


Process Improvement Tools

John Paulson,

Cell 503-819-0190,



Methodologies and Tools

John Paulson,

Cell 503-819-0190,


Columbia Tech Consulting, Inc.31

Problem

Statement

Problem

Description

Brief

Background

Problem

Analysis

Standard process /

procedure check

Brainstorming

Cause & Effect

Investigation

Root Cause

Corrective

Action Plan

Fishbone

Analysis

5 Why’s

Locate the

Point of Cause

Flow ChartArea/Facility: Kaizen Type: Kaizen #: Date:

Product: Filled Out By:

Tighten

Sh

ift

Day

Week

Standard

Time

Performed

By

Frequency

Zone Location Procedure Criteria

Clean Lubricate Inspect

Check Sheets

Pareto Diagrams

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40

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Scrap Rate

Month

0.25

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1 2 3 4 5 6 7 8 9 10 11 12

Team Goal:

Scrap Rate

Month

0.25

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1 2 3 4 5 6 7 8 9 10 11 12

Team Goal:

Scatter Diagrams

Scatter Chart

Fishbone Diagram

Control / Trend Charts

Histograms

Problem Solving Tools

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Cell 503-819-0190,



Problem Solving Tools

Date: Section:

Good Maybe No GoodScope of

ControlResource Relevance Pay-Back Buy-In

Task # Who 1 2 3 4 5

T/M T/M

T/M T/M

T/M T/M

T/M T/M

WEEK #

Task

Problem:

Problem Description:

Brief Background (History):

Problem Analysis:

Standard Check:

Point of Cause:

Cause & Effect Investigation:

Root Cause & Potential Solution:

Implementation Plan & Schedule:

XPlan Solution:

MANL

Practical Problem Solving

MATERIALMACHINE

METHODMAN

ENVIRONMENTMATERIALMACHINE

METHODMAN

ENVIRONMENT

Therefore

Why

Therefore

Why

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Why

Cause & Effect Diagram

5 Whys – Root Cause

Brain storm

Flow chart

Histogram

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Problem

Statement

Problem

Description

Brief

Background

Problem

Analysis

Standard process /

procedure check

Brainstorming

Cause & Effect

Investigation

Root Cause

Corrective

Action Plan

Fishbone

Analysis

5 Why’s

Locate the

Point of Cause

John Paulson,

Cell 503-819-0190,



When identifying processes to improve..

John Paulson,

Cell 503-819-0190,


Keep in mind;

• Eliminating problems that have a negative impact on customer

expectations

• Cost reduction while maintaining or improving quality

• Flexibility focus in operations / supply chain


The concept I have introduced; an accelerated process improvement

methodology utilizing improvement tools that will move your supply chain

process improvement initiatives forward, and your organization forward.

A methodology, unique from traditional process improvement consulting

services, that focuses on organizational learning in a ‘learn on the project’

approach, while improving processes, and the supply chain, on a continual

basis.

Conclusion

John Paulson,

Cell 503-819-0190,



John presents this methodology and tools in an easy to

understand approach including real world case studies of

significant improvements to operations at leading companies.

John Paulson, Independent Consultant

Cell: 503-819-0190

Email: [email protected]

For more information regarding this presentation, methodology,

and tools used, contact John Paulson.

John provides assistance in planning, training, process consulting,

and facilitating your organizations improvement initiative.

Supply Chain Process Improvement Methodology V1

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Transcript of Supply Chain Process Improvement Methodology V1