Change is a Constant. Effective Lean Operations when Sourcing Globally

Transcription

1 Effective Lean Operations when Sourcing Globally Steve Shiffer PMP Change is a Constant Since the 1970s Mt Material ilrequirements Planning Manufacturing Resource Planning Just In Time Lean Manufacturing Outsourcing Advanced Planning and Scheduling SupplyChain Optimization Supply Chain Risk Management Though the road's been rocky it sure feels good to me. Bob Marley 1

2 The Pain Chain Facing necessary change Latent Pain Admitted Pain Vision of a Solution Embracing Lean Enterprise We have transformed our operations Inventory as a liability not an asset Quality built in From push to pull Smaller supply bases 2

3 Embracing Lean Enterprise Our journey continues Shorter product development cycles Dock to line material delivery Focus on core competencies Develop and manage a broader supply base Collaborative relationships with suppliers Global Sourcing We embraced it because the rewards were huge Cost Quality Technology 3

4 Conflicting Objectives Lean Operations Global Sourcing Conflict Reduce Process Variability Best Cost & Technology Increased Variables Lower Inventories Lower Unit Costs Higher Inventories Frequent Deliveries Reduced Capital Requirements Container Deliveries Fill the gap Making it all Work Inventory 3PL warehouses Better S&OP processes Stronger quality assurance We re winning at the handoffs! 4

5 A New World of Challenges Global Sourcing Geographic and cultural differences Long supply chains Higher inventories Relationship Tropical Storms 1990 to Atlantic Basin Activity ACE Major Hurricanes Hurricanes Named Storms Average Since Source: NOAA 5

6 Political Risk 2012 Evaluating Risk A Vulnerability or a Threat With a. Likelihood that an event will happen The event will have an impact on operations Estimate Time to detect and recover DegreeStuntCityexten.mp4 6

7 Risk Profile Must be Understood Countermeasures must be prioritized The Supply Chain Risk Leadership Council Five Disciplines of Risk Management Preparedness, Continuity, and Recovery Planning Regulatory and Security Supply Chain Resiliency Risk Assessment and Monitoring Supply Chain Incident Detection and Crisis Management. 7

8 What to Prepare For? 100% Certainty 100% Uncertain 100% Certainty No Event Event Occurs Understand what you know and don t overstate what you think you know Resiliency The ability to return to the original form after bi being bent, compressed or stretched. t This encompasses Agility and speed Preparedness Information flow Cross trained workforce 8

9 Resiliency is an Antidote to Risk Understand your risk profile Determine your risk tolerance Develop the appropriate countermeasures Crisis Management Reactive Measures Reactive measures to mitigate Have a playbook Everyone knows their role Risk management Proactive measures Eliminate/reduce the likelihood Mitigate impacts 9

10 Reactive Measures Have a Playbook for crisis management Emergency contact tinformation Process Team members Roles and responsibilities Systems utilized Then declare victory and hand backto normaloperationsoperations Proactive Resiliency Key Countermeasures Give OEMs and suppliers a strong incentive Know your supplier s sources Strong quality assurance program Dashboard to monitor performance Swift and effective action Comprehensive database on incidents 10

11 Best Practices in Resiliency Differentiators i from the best of the best: Ability to move work or workers Dual and parallel sourcing Supplier relationship and monitoring Design for resiliency Cost Benefit of Mitigation Cost of Disruption Cost of Mitigation Concept from Jan Husdal, (2005) 11

12 Counterfeiting An imitation of a genuine article with the intent to deceive or defraud Types: Used sold as new Relabeled to appear to be more valuable Rejects sold as good product Totally different product in packaging of genuine product Counterfeiting Counterfeiting is a multi-billion dollar business Counterfeiting is global Counterfeiters are constantly adapting to countermeasures Over 1,800 cases of counterfeiting discovered

13 US Senate DoD Report Conclusions Conclusion 1: China is the dominant source country for counterfeit electronic parts that are infiltrating the defense supply chain. Conclusion 2: The Chinese government has failed to take steps to stop counterfeiting operations that are carried out openly in that country. Conclusion 3: The Department of Defense lacks knowledge of the scope and impact of counterfeit parts on critical defense systems. Conclusion 4: The use of counterfeit electronic parts in defense systems can compromise performance and reliability, risk national security, and endanger the safety of military personnel. DoD Report Conclusions Conclusion 6: The defense industry s reliance on unvetted independent distributors to supply electronic parts for critical military applications results in unacceptable risks to national security and the safety of U.S. military personnel Conclusion 7: Weaknesses in the testing regime for electronic parts create vulnerabilities that are exploited by counterfeiters. Conclusion 8: The defense industry routinely failed to report cases of suspect counterfeit parts, putting the integrity of the defense supply chain at risk. 13

14 Counterfeit Mitigation From industry leaders Strong relationships with suppliers Multi tier visibility Monitor constantly Effective testing regime No workarounds Design anti counterfeitingmeasures into products Share information In a Brave New World We have made great strides Events with the potential to impact our supply chains are difficult to measure Developing resiliency is a journey 14

15 The Big Picture Strong Corporate Strategy Process Supply Chain Strategy Supply Chain Execution Monitor Results Industry Leaders Market driven: Focus on customer requirements Alignment of lead times from source to delivery Emphasis on globalization 15

16 Industry Leaders Reliable: Coordinated dintegration between businesses and functions Provides adequate capacity, scalability, speed and responsiveness Establishes capacity ahead of demand Effectively addresses complexity to significantly reduce risk Thank You! 16