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SUPPLY CHAIN ALIGNMENT CHALLENGE
Supply Chain Management has become the common cry in business today, we often hear that we must manage the supply chain from "the supplier's supplier to our customer's customer." This is an interesting thought and on the surface, one would say that it is the correct approach. This total approach to Supply Chain Management is correct and vitally important. Today most companies relate this End-To-End supply chain management thinking to these eight key business processes:
The answer is to review and understand your processes and determine if they are in total alignment. This review needs to be done without bias and most important be driven from the eyes of the customers. For example, you may continuously be fighting supplier late deliveries and your improvement is to work on your supply base blaming them for the issues. However if you looked at this in your End-To-End review you may find that Customer Service is continuously booking orders inside your total lead time requirements often putting your supply base in lead time jeopardy. Looking at this same issue from the Customer Services point of view, the lead-time they are promising to the customer is a lead-time that puts you in a competitive arena with your competition. Another example might be that your factory is constantly behind schedule, they blame a combination of planning, and purchasing for this continues situation, however when you investigate you find that the factory flow has no flow at all and completion dates ignored. So obviously, this should lead a company away from the blame game and into working on the correct problem. A company can continually go up and down the key eight-supply chain processes looking for that one magic bullet that will make all issues disappear. This can become a costly and fruitless effort. Concentrating of individual links in the supply chain will never produce a strong and profitable chain. Companies should think about this as an alignment improvement effort. This effort should embrace all eight segments simultaneously starting from meeting the customer's needs and working down all the remaining segments. A suggestion would be to invest in a End-To-End Supply Chain Assessment. This will result in providing a comprehensive road map allowing you to concentrate on correcting the entire supply chain alignment. Please don't hesitate to call or email Marino Associates for more information on are assessment process. Dan Marino Marino Associates, LLC 860-623-2521 Office 860-558-8564 Cell www.dmarinoassociates.com
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This presentation along with a multi level management brainstorming session can assist you in:
Integration of Leadership and Management
21st Century Operational Excellence The traditional definition of Leadership and Management is that Management is about arranging and telling and Leadership is about nurturing and enhancing. This may have been the correct definition and organizational model in the past, however company's operating in the 21st Century cannot afford to have managers that have difficulties in leading or leaders that cannot manage. Some important facts about the status of manufacturing in the U.S. Manufacturing is driving productivity growth in the U.S. economy, increasing at two and half times the rate of the service sector. Companies with fewer than 100 employees make up more than 94 percent of all U.S. manufactures. These facts make it obvious that manufacturing is still thriving in the U.S. However, a key to its continued success is their ability to become agile in all aspects of the organization. Driving this agility is not only automation, specialized software, or new product innovation. It is the unrelenting drive for operations excellence through a combination of leadership and management skills. Today more than ever building the manager/leader model is a critical component for the achievement of company goals, visions, and strategies. The manager/leader needs to be involved in energizing people to do new things, to take up new challenges and learn to see the value vs. the non-value in every process from "Quote - To Cash". Companies cannot afford to have organization levels not consisting of excellent manager/leaders; they need to start with dynamic top-level leaders that establish a culture and business climate, which is transferable throughout all levels of the management team. The existing rules for what a manager is vs. a leader is insufficient for the new-millennium workplace and just as important how companies need to address the new 21st century business challenges. The manager/leader needs to focus on collaboration, agility, providing value and internal and external customer service. Daily the manager/leader should ask the question:
Can you imagine if in every level of your organization you had an exceptional manager/leader, the dynamics would be fantastic. Companies should concentrate on working with every manager at every level adding the following leadership skills
This is difficult, the manager/leader will need to prioritize their day, work to a plan have consistency in their schedule and one very important point is learn to say no to request to attend meetings that are time wasters or to become involved with time wasting activities. Showing this type of dedication to your team and their issues will demonstrate a sense of importance, teamwork and it will demonstrate the dedication necessary to achieve excellence. The challenge for the manager/leader will be:
I believe that a leader needs to continually search for the "Rallying Cry" what issue, change, or need can he or she use to motivate a team into action that stimulates a driving desire to achieve results, which in turn instills pride and a senses of accomplishment throughout the organization. Once the "Rallying Cry" is establish the leader then becomes an entrench manager working not at the thousand foot level but at the one inch level. Companies are continuously working on improvements; they may be in the process of implementing Lean principals, implementing new software, acquisitions, plant relocations etc. With these efforts taking place, it becomes imperative that they transform the key members of the organization into a combination of a leader that can create the correct vision of the future, can motivate people to engage in that vision, and assist in the management an delivery of the vision. Developing and changing an organization is not a simple process. It takes time, training, convincing and rewarding. People transformation is very difficult. Some can easily make the transformation some will need to be coached and developed. Dan Marino Senior Partner Marino Associates, LLC 860-623-2521 Call and schedule a Process and Organization Assessment, this assessment will assist in development of an agile and profit driven company. Senior Managers responsible for achieving their company's goals and objectives, must have an answer for the continuously ask question, "What is it going to take to get ahead and stay ahead of your competition and increase profitability"?
The answer to that question is of course, "Excellent Results in all phases of your operation". Most companies today are face with domestic and global competitive pressures. To compete in a new world economy companies are forced into strategies that continue to put downward pressure on their prices, which in turn puts equal pressure on their profits. Pricing becomes a key profit driver in today's economic environment. Business can use a variety of pricing strategies when selling a product or service. Pricing can be used to defend an existing market from new entrants, to increase market share with a market or to enter a new market. Business may benefit from lowering or raising prices, depending on the needs and behaviors of customers in a particular market. Finding the right pricing strategy is an important element in running a successful business and maximizing profits. It is all too common that companies leave considerable money on the table due to miss guided discounting strategies, neglecting to charge for specials, expedited deliveries, and by no real strategy for pricing individual customers and products. Companies should consider a pricing assessment exercise, they need to review the competition from a pricing advantage or disadvantage standpoint, review and price their advantages in technology, advantages in their service level, advantages in their quality and ability to delight the customer. This is not an easy process; companies may lose customers shopping only for low cost suppliers. However, with pricing set at new levels the remaining customers and new customers will add more to a company's bottom line and provide a more consistent revenue stream. If pricing is set at, the correct levels companies must then strive to uncover ways to reduce cost as a weapon against profit erosion. One of the most aggressive approaches in reducing cost is to implement a Lean approach to running and managing your business, this Lean Thinking needs to be throughout the complete value chain from Sales through to the delivery of the product. Best in class Lean companies are realizing financial and operation advantages over their competition. They are:
A Lean Business Approach is a major shift in how an organization manages their business from Quote to Cash. It is a comprehensive and aggressive study of all your current processes and the alignment of these processes. Marino Associates assist companies with the process of rethinking, radical redesign, and alignment of processes to achieve dramatic improvements in the critical measures of performance such as:
Our process starts with a detailed and comprehensive 5 - Day Assessment, during this assessment we will:
This assessment results in a comprehensive report outlining our findings and suggestions for improvement. We then spend a day reviewing this report with the senior management team and outlining a path forward. During the assessment, we often uncover areas that can immediately be improved. These improvements can generate savings that cover the cost of the program. Once the assessment and report out is complete a company has a road map they can follow to begin the development and implementation of a Formal Lean Manufacturing Program. No Company is safe, there is no such thing as a solid, or even substantial, lead over one's competitors. Too much is changing for anyone to be complacent. Moreover, the "Champ to Chump" cycles are growing even shorter." Let Marino Associates take the mystery out of Lean Manufacturing, let us assist you in customizing a program that is right for you and fits your budget and culture. There is a great deal of detail, planning, organizing, measuring, education and change that must be done to achieve Lean Business Excellence let our seasoned and experience consultants assist you down the Lean Path. For additional information about our Lean Assessment Process and workshops contact Dan Marino at Danam333@aol.com; phone 860-623-2521 or visit www.dmarinoassociates.com Presentation focuses on the following
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