managing the enterprise supply chain industrial engineering management xi e-book

Industrial Engineering Management Systems Approach to the Enterprise Vision

L | C | LOGISTICS ENTERPRISE SUPPLY CHAIN MANUFACTURING & COMMERCIAL LOGISTICS OPERATIONS …._____ _ PROCESS INNOVATION-OPTIMIZATION & ENGINEERING PROJECTS MANAGEMENT….

Industrial Engineering Management E-Book

INDUSTRIAL ENGINEERING MANAGEMENT FUNDAMENTALS AND HOW IT WORKS

March 2015

Expertise in Process Engineering Optimization Solutions & Industrial Engineering Projects Management

Supply Chain Manufacturing & DC Facilities Logistics Operations Planning Management

Chapter XI Managing the Enterprise Supply Chain

Systems Approach to the Enterprise Vision


On Business the quest for revenue, costs, margins, service rate, competency and growth

From all the existing corporate business objectives, the main priority goes to the objectives regarding “generate revenues at the lowest production-marketing–sales-distribution and operational corporate administration cost with the highest operational margins possible”

These set of objectives does not go alone but in parallel with the objectives regarding “best Industry competitive level, customers and/or clients’ service rate, brand image, finish goods quality perception, optimal geographic numerical trade coverage; including hypermarkets, supermarkets, mini-marts, convenient stores, traditional mum and pap trading shops, concessionaires, wholesalers and stockiest”



The sense of competency and the need to continuously grow, determines the corporate leadership focus on strategies, and their implementation based on sound policies and operating instructions or company rules and regulations

On Corporate Management Power

Many, have reached the upper management level after a short and unsuccessful time in the middle management; at times the selection process is corrupted by cultural values and yet their survival depends on the strength from others



To make a life career on your own, to be a professional and to be good at it, requires more than good luck and lot’s of friends in the high corporate levels, although many make a good start in that way, specially while fresh after graduation

The best way to promote your way up to the corporate level is to dedicate your time to master all the skills required to do your job as a professional, and then, when you feel you are ready for your next professional life challenge, look-up for a better job opportunity anywhere else and continue learning



Be loyal to your profession and the rest comes along by itself, otherwise be prepare to fight for corporate power, and get deeply involved politically, with the support of a corporate godfather; be ready for betrayals, and swimming with the sharks, surviving power struggles; for status and financial benefits; unless of course you are born a boss in the family business Don’t forget that it takes many years to master the technical details and to gain the hands on experiences required to finally make the right management decisions affecting the Enterprise; unfortunately before you know it; old age will catch-up with you and suddenly, to the mind of some lucky ones in power, you are already too old to be in the action, of course; before that, you were too young without technical skills, experienced, and suddenly age is the problem; like beauty to many



Operations

Functional organization charts will provide the system’s logic and linkage to all its system components

Few have the courage, mental attitude and life balance to take in their hands the responsibility required to run an operation

Besides having the basic technical background, good education and social values, only a few never give up

Operations are as dynamic as the win and the seawaters movements, yet endlessly deep as the entire universe space



There are production cycles, sales seasonality, holidays seasons, but the continuous changes and demands for higher productivity, competitive prices, new packaging designs, product formulations, the introduction of new technologies, equipment and improvements in the corporation to improve their ability to remain competitive, is the force behind all new events and developments to happen

It is essential to understand the entire system to be able to coordinate all on going projects, come up with new creative proposal, monitor the entire operation, inspect the current facilities status, measure key ratios and check that all index point to the desired direction as per the annual business plan



Continuously reviewing the effect caused by implemented strategies and seeing that objectives are met within the time planned within all expected constraints and most important make sure everyone in the team knows what they are doing

When it comes to deal with top, middle and junior managers, supervisors, coordinators foreman, operators, admin and IT staff as well as other technical people regardless of rank, title and whatever other ownership rights they might have, remember that you are always talking to a professional with ego, pride, sensibility and a desire to be praised-recognized for the good job they believe they have been doing at all times



Talk to the job as best as you understand it, and don’t focus on the person’s personality, physical appearance and body language, because when you are dealing with someone regarding the operational cycle activities, you are doing your job, by means of communicating and learning the activities status, seen that all actions are within the planned schedule

Operations specifications most be well documented and described as operational processes, together with all related job descriptions and job candidate’s profile, besides a clear description of functional goals, objectives and required strategies to be able to implement all actions by means of projects or policies and establish the system that consistently achieve the corporate goals and objectives

All operation technical specifications most be updated in a systematic manner, so that all measurements are accurate



Middle Management

The job is to secure and guarantee that the operational cycle is completed without disturbances, over and over, time after time and of course to get involved in new developments, and other projects and skill development programs

But first middle managers have to know the system in great detail and not just as a general concept or as explained by academics back in school, where all assumptions are a dream with plenty of time to discuss each theoretical case study

Operations requires you to make a decision based on the best information available on hand and mix of your best experiences and common sense, plus a bit of sixth sense



Use your job ownership responsibility, sense of urgency and have the guts to make that decision and make it happen now

Always be prepared for the worst scenario, even if it means loosing your job, be a professional and fair to the company

Secure a full technical knowledge in all subjects related to the enterprise business and industry, learn each operation and make a full assessment of it in the most detail possible to be able to foresee further improvements or faults within the operation system specifications design in place



There is always the risk to get involved in human resources related activities from subordinate’s emotional situations or other staff personal conflicts, and when this happen the evaluation of the situations and the actions taken are often based on emotions and not from rational judgments and off the main enterprise priority objective as mentioned before

From all the existing corporate business objectives, the main priority goes to the objectives regarding “generate revenues at the lowest production-marketing–sales-distribution and operational corporate administration cost with the highest operational margins possible”



Supervisors, coordinators, foreman, intensive and skilled Labor

The most important objective and related issues in the mind of a supervisor, coordinator, foreman, admin staff, intensive and skilled labor is to keep the enterprise finished goods flowing at all times throughout the system as per planned production or delivery schedules to customers in all distribution channels

90% of their job’s attention is to fulfill this objective;

9% is to be dedicated to manage difficult situations, finding best solutions on hand and making those effective decisions with actions geared to keep the system within the process specifications



The last 1% is to be dedicated to take care of any dispute among their subordinates, regarding discrepancies due to personality conflicts, differences in character and emotions as well as other personal issues leading to dislike or hate among people in conflict, otherwise their involvement will lead to the firing of the people in conflict or it will amplify further among them the existing emotional problem

Such situations are best to be reported and passed over to the Human Resources Department to be cleared through the enterprise rules and regulation policies. In this way people will be disciplined, warned or fired from the enterprise



What the supervisors are to do at all times is to make sure that each process component, within their area of inspection works as per their well-documented process specification

That all equipment works in perfect conditions, that required data is available, reliable, in real time and easy to retrieve and update.

All required materials are to meet the quality specifications as per design, as well as scheduled volumes in full and on time, with highest acceptance yields and production rates as per specifications



When any system component such as equipment, materials, information or others fail to deliver as per specifications, or anyone fails to perform within standard productivity rates;

it is the supervisor responsibility to make decisions to correct it with effective actions; technical staff, skilled labor, intensive labor and other related staffs are to be committed and perform as per the job specifications

Supervisors, coordinators, foreman and admin staffs have to know by heart their system process specifications and their components link sequences



They have to know everyone involved in every step of their process, and be a master in every related job task, technically, operational, data source integrity, and administrative documents flow,

as it is in this way that the supervisor or direct subordinates can take an effective role in the inspection activities,

issue standard reports to all concerned parties,

in full descriptive details and within the expected shift time frame,

focused on the objective, situation, complication, resolution, and action taken or recommended to middle management



Administration Staff

With the advancements on office automation processes by means of ERP software systems or specialized business software applications, the admin staff jobs have become technical, requiring complete business process knowledge

Good skills in customer service communications and a positive working attitude to render service in full and on time to the entire enterprise computer system network

It is essential that the administration staff understand the complete business process cycle, and working schedule to take responsibility on the accuracy and integrity of the data



When the staff lacks knowledge on the documents data processing mechanics, it is hard to detect the bugs in the system; falling in the guessing game of trying to locate the cause of inconsistencies coming from the computer system

Some problems occur at the Data Base level, while others comes from the data process sequence linkages and others as result of software patches side effect

The feedback given by the admin staff to the computer analyst is very important as most often the analyst do not know the enterprise system

Most computer software systems often lack full documents data processing requirements and some patches are made to the standard software,

or some adjustments are made to the software settings to closely meet the enterprise documents data processing requirements, creating data inconsistencies



Union’s disputes and life in the front line

Worker’s Union Disputes are always the result of some of the company’s unattended gaps found in the Human Resources department,

or within the bottom list of priorities discussed by top and middle management, except almost daily, among skilled and non skilled workers and some other admin staff

The first company’s priority is to avoid at all cost to have a union within, but if it is too late for that, then make the best out of it and have harmony, peace and a productive day

And if that is not possible, then get ride of them at all cost



The union key demands are easily met by closing most of those company gaps before there is any dispute with the Union,

while their bulk of demands are just to fill-up the list and to be used as a tool to dispute and negotiate between the company’s lawyers and management, the government’s labor court-labor relations department and its members Picking a fight with the Union is devastating, dangerous, time consuming and very expensive,

besides the risk of loosing everything if there is ever some kind of outsiders extortionist mafia group behind the company workers union leaders, or other government political groups behind them



The government labor court-labor relations department will always find the company at fault and search for mistakes to favor the union workers,

regardless of the legalities involved and all the problems created to the company by the union workers with or without cause

The local police will certainly do little to prosecute vandalism and sabotage made by the bad union member guys

At the most they will keep the company gates guarded to prevent violence on the streets but nothing else within the company premises



Union members can take aggression and violence into their hands when things doesn’t go their way, specially the threat to other non-union members when they refuse to join them

Fighting the union requires a clear mind to justify all actions taken in line with the labor law, against the union workers and those actions need to be as transparent as glass

It also requires having the best labor lawyers available on hand and to prepare with evidence and document each extortion, or sabotage case with formal company documents



But before the union takes over the workers soul and heart let’s look for the company’s Human Resources management gaps within the following criteria’s

•job security–provides the perception that the company is financially stable, with sales growth and good corporate brand image

–have a permanent job position rather than a temporary one-job re-structuring is always an open option to reduce labor •job satisfaction–sense of belonging, added responsibility and achieving a set of personal goals on quality, quantity and cost reductions



•job enrichment–job improvement awareness through skills developments, positive attitude, self respect and sense of job ownership •remuneration–industry market benefits, salaries and wages–over time and annual company performance bonus-company’s annual productivity awards •social environment–dressing code culture, food court, communication –politeness, friendliness and accepted social manners



•security, safety, sanitation and health–facilities sanitation standards–good manufacturing practices communication–company events (manufacturing, marketing-sales)–general social and sport events–company’s policies, rules and regulations •management–functional organization–clear line of command and job profile–company moral values–productivity targets



•on labor union leader’s ideologies–psychological paths {political, fanatical, terrorist tactics}-moved by the idea of getting “people’s appreciation, respect, authority and a moment in their historical time”

-their ideals never change and never die in their life time-remuneration, skills improvement, career development and job improvement are not in their personal priority list-after achieving some of their personal objectives, they still don’t stop their quest for the “people’s appreciation, respect, authority and a moment in their historical time”

-to many a surprise is that most of the union committee members are good workers with consistently high annual evaluation score records, and positive attitude but left inside the gaps made by the company’s HR and top management



Fighting the worker’s union with few selective and effective strategies, requires first to have the middle management team fully united and,

together with the top management, to become one single team as fast as possible before engaging in any labor negotiations,

and then, the middle management requires technically to be trained as fast as possible in group negotiations, and body language psychology with, a bit of “drama acting” or play role acting,

to be able to deceive the opponent union’s committee members, labor department officers, as well as all other company staff in order to keep full secrecy of all internal arrangements to fight the union



The rules of engagement are such that there are no rules but the following ideas, which can help during the long run fight -seat tight for the following months and focus on production and productivity improvements consistently and continuous -take all precaution measurements to prevent sabotage, fire and the worst that can happen to equipment by technician’s and skilled union members, as well as waste of valuable materials created with intention during production runs

-check the HR gaps list and selectively go on to narrow it -find a good knowledgeable labor lawyer with enough time to go to the labor court and the labor relations department as and when required to meet the union committee and talk



- check the company rules and regulations, make sure they are all legal as per the labor law and apply all of them as required with strict execution to all signed union members -identify the union committee members and its organizers, as well as all sympathizers and signed union members, they are the front line target of workers to be paid off and out -hunt for their working mistakes, on purpose “accidents” and acts of sabotage and vandalism with all company’s assets, and when found them, take firm action promptly

-cut all means to provide extra income to all union members such as over time, annual bonus, salaries and wages above government recommendation, permanent job positions, etc.



-during any union talks never commit, accept or reject any point in their agenda, go strictly by the law and within the law as clear as it can be interpreted -follow the labor law strictly during any negotiation with the labor department and the union, accepting point in the agenda within the clear boundaries of the labor law only to show some concession, flexibility and will to negotiate -use force to fight back the union member bully’s, such as the local police, the security guards and other private detectives to locate the whereabouts of all the bad guys threatening other non-union workers



-remove from the company premises all the union member bully’s with full salaries and wages being paid as regular employees, and get them to check-in daily, for as long as it can be, in the process negotiate to pay them off and out

-transfer all union committee members to one single working area and keep a close watch on them to hunt for their mistakes, and act upon them as soon as all evidences and reports are ready in company stationary documents -negotiate with all the union organizers to pay them off and send them out with their own self resignation as soon as they give signal of a weakening position



-reduce all non-skilled signed union members and replace them with sub-contractor workers, improved working processes, electric and mechanical equipment, IT support, automation equipment and hire higher qualified managers, supervisors, foreman and skilled workers -upgrade all skilled workers left behind due to HR gaps regardless whether they are signed or not union members

-recruit union signed skilled worker to resign from the union get HR involved to improve their status and clear the gap



When it is all over, perhaps not completely over, but to a reasonable extend, the company HR has already changed for good and at an incredible speed,

which any re-engineering project couldn’t have achieved in such a short period of time Life in the front line will never be the same, and the middle management by then would have shown their character, tolerance and adaptability upper limit,

also they would have shown their level of competence regarding decision-making ability and resilience to stress and management pressure



Picking a fight with the Union is devastating, dangerous, time consuming and very expensive, besides the risk of loosing everything,

but letting the union to manage the company is the worst scenario and that cannot let happen

Working in the front life requires physical stamina and a positive mental attitude with a clear mind focused on the job commitments made to the company

when anyone joins to be part of it as professionals, labor, technicians, admin staff, foreman, supervisor, middle and upper management level



OTHER TOPICS OF INTEREST

On Goals Revenue Vs Cost Vs Productivity Vs Infrastructure Vs Technology Vs Industry

On Objectives Financial Ratios, Performance Indicators, Business Development Programs

On Strategies Market Segment, Market Channels, Market Share, New Platforms

Organization Enterprise Resources Planning Vs (Matrix, Functional, Modular)

Operations Flow Total Supply Chain Operational Flow, Proceedings, Rules & Regulations

MIS & B2B ERP General Business Software, Web site Technology, Intranet, Internet



E-Vendors Electronic documents handling networking & Efficient Consumer Response

E-Customers Electronic documents handling networking & Efficient Consumer Response

Inventory Planning Back to back PO's, Rolling Forecast base PO's, PO's life cycle Concept

SQE & IQA Manufacturing Processes Auditing, material's BOM specifications, feedback

Freight Forwarding Import + Export Custom Clearance, Sea & Air carriers, land transport tariffs

Cross-dock Center Excess stocks Vs Continuous replenishment operations break-even point

Distribution Center Service level Vs Warehousing and Distribution operations break-even point

Layout Design Distribution Center, Ambient – Chilled – Frozen – Clean Room Factory Raw Materials Warehouses, Ambient – Chilled – Frozen – Clean Room Finished

Goods Warehouses, Retail Warehouses, Ambient – Chilled – Frozen Depots



Storage Systems Pallet Racking Selective – Drive in – Push Back – Continuous Flow – Double Deep, Multi tier shelving systems, Mezzanine Floors

Conveyor Systems Pick to light, Consolidation flows, Telescopic, Multi level feeders

Co-packing Kitting, sorting, size grouping and re-packing within an assembly line mode

City Deliveries Delivery routes mapping, schedule planning, road auditing, and vehicles’ specs

Inter City Deliveries National Distribution transportation break-even point routing, vehicles’ specs

Warehouse Network Multiple DC's and warehouses National Distribution break even point

Storage Layout Ambient temperature, freezer, chilled, air conditioned, bulk & item picking Storage Systems VNA, selective, drive-in, life flow, multi-tier shelving, flow

racks, block stack



Picking Systems Loose case, loose item, full pallet, pick to light, pick to conveyor, sorting

Marshaling Dispatch lines, dockyard traffic control, checking, documents control

Receiving Receiving line traffic control, inspection, document control, put away

Trucks parking yard trucks traffic control,Materials Handling Men driven electric vehicles, conveyors, forklift trucks, barcode

scanners Integrated Costing Fixed & Variable activity base cost structure spread sheets Integrated Pricing Volume & Added value activity base price structure spread

sheets



3rd party Operators Contractual bases, hiring situations, minimum operational specifications

Budget Planning Revenue Forecasting, Fixed Assets & Manpower Investments, Cash flow

Operations Research Supply Chain System Objectives Simulation, modeling, analysis, projections

Prospective Planning Strategic Decisions in the Business Process, Rise and fall of an Enterprise

Professionals Profile Assessment, career style, academic background and experience

Professional Services Consultancy rules of engagement, diagnosis, findings, actions

Industrial Engineering Management Systems Approach to the Enterprise Vision

L | C | LOGISTICS ENTERPRISE SUPPLY CHAIN MANUFACTURING & COMMERCIAL LOGISTICS OPERATIONS ….

_____ _ PROCESS INNOVATION-OPTIMIZATION & ENGINEERING PROJECTS MANAGEMENT….

Industrial Engineering Management E-Book

INDUSTRIAL ENGINEERING MANAGEMENT FUNDAMENTALS AND HOW IT WORKS

March 2015

Expertise in Process Engineering Optimization Solutions & Industrial Engineering Projects Management

Supply Chain Manufacturing & DC Facilities Logistics Operations Planning Management

THANK YOU


managing the enterprise supply chain industrial engineering management xi e-book

Engineering

enterprise visionchapter

corporate management

middle management

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corporate godfather

upper management level

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