Abhishek Singh

IIM Kashipur

What do Companies look for?

Resourcefulness: Ability to apply theoretical

knowledge

Command over subject

Knowledge of buzzing concepts. Eg: RFID

Knowledge of the concerned industry

Problem solving attitude

A framework of problem solving

Identify the problem

Specify the criteria based on which the

solutions will be evaluated

Find out the possible solutions

Choose the best one based on the criteria (If

multiple criteria are involved use linear

programming)

Implement the solution

Statistical Process Control

Control Charts Pareto AnalysisCause and Effect

Diagrams

Scatter Diagram Process Flowchart Process Capability

Quality Function

Deployment(QFD)

House of Quality

Failure Mode Effect

Analysis(FEMA)

Failure

Mode

Cause of

Failure

Effect of

Failure

Corrective

Action

Stale low moisture content

expired shelf life

poor packaging

tastes bad

won’t crunch

thrown out

lost sales

add moisture

cure longer

better package seal

shorter shelf life

Broken too thin

too brittle

rough handling

rough use

poor packaging

can’t dip

poor display

injures mouth

chocking

perceived as old

lost sales

change recipe

change process

change packaging

Too Salty outdated receipt

process not in control

uneven distribution of salt

eat less

drink more

health hazard

lost sales

experiment with recipe

experiment with process

introduce low salt version

Project Management

Project Management

Steps:

• Define activities

• Sequence activities

• Estimate time

• Develop schedule

Techniques:

• Gant Chart

• CPM/PERT

Project Management

Gant Chart CPM/PERT

Service Blueprinting

Facility Layout

Process Layout

Product Layout

Fixed Position Layout

Forecasting

Time Series

Moving Average

Naïve Forecast

Simple moving average

Weighted moving average

Exponential Smoothing

Regression

Supply Chain

Procurement &

Outsourcing Strategies

Aggregate Planning

Supply Contracts

Kaizen

Inventory Management

Elements of Inventory

Management

Inventory Control

Systems

Continuous system (fixed

order-quantity)

Periodic system (fixed-

timeperiod)

Economic Order

Quantity(EOQ) Models

Re-order Point

Order Quantity for Periodic Inventory System

Role of Inventory

Improve Matching of Supply

and Demand

Improved Forecasting

Reduce Material Flow Time

Reduce Waiting Time

Reduce Buffer Inventory

Economies of ScaleSupply / Demand

Variability

Seasonal

Variability

Cycle Inventory Safety Inventory

Figure Error! No text of

Seasonal Inventory

Inventory Management

Types of Inventory

Inventory Control System

Continuous system (fixed order-quantity)

Periodic system (fixed-time period)

EOQ

Reorder Point

Safety Stock

Two bin system

Lot Size

Kanban

Sales and Operations Planning

Process

Copyright 2011 John Wiley & Sons, Inc.

Data Envelopment Analysis

(DEA)

Value Stream Mapping (VSM)

Customer Satisfaction Strategies

Actual Performance

Providing satisfiers

(performance needs) can keep

you in a market

Providing delighters (unknown exciting

characteristics) can get you market leadership.

Cu

sto

me

r S

ati

sfa

cti

on

Very Satisfied

Very Unsatisfied

Perf

orm

s V

ery

Po

orl

y

You are “OK if

you don’t

provide them.

Perf

orm

s V

ery

Well

redial button on telephone receiver; spare change holders/

soft drink holders in automobiles; one-touch recording

button on some VCRs;

Customer Satisfaction

Strategies – Kano Model

Supply Chain: Manufacturing Example

Cereal

Manufacturer

Flour

Processor

Polyethylene

Bag

Manufacturer

Chemical

Processor

Farmer

Oil

Company

ForestLumber

Provider

Corrugated

Manufacturer

Grocery

Distributor

Retail

GrocerConsumer

1st Tier

Supplier

2nd Tier

Supplier2nd Tier

Customer

1st Tier

Customer

3rd Tier

Supplier3rd Tier

Customer

(Material) Products and Services

Finance

Information

Demand

Supply

Upstream

Internal

Downstream

Focal Company

A Sample Supply Chain

BENCHMARKING SUPPLYCHAIN USING

FINANCIAL DATA

Total Length of the Chain Days of Raw Material (DRM)+ Days in

Work In Process + Days in Finished

Goods

Supply Chain Inefficiency

Ratio:

Supply Chain Management Cost (SCC) /

Net Sales (NS)

SCC = DC + INV * ICC

Supply Chain Working

Capital Productivity:

Net Sales (NS) / Supply chain Working

Capital (SWC)

SWC = INV +AR–AP

Kraljic’s Supply Matrix

Toyota’s Seven Waste30

Transportation

Inventory

Motion

Waiting Time

Overproduction

Over Processing

Defects

(T I M W O O D)

TYPES OF ACTIVITIES

Value-added Anything that directly adds value to the product

or services as seen or experienced by the customer

Non-value added Waste (should be eliminated)

Necessary non-value added Non-value added, but necessary and hard to

eliminate (e.g., planning, scheduling, purchasing, quality control, etc.)

31

Necessary, nonvalue-added

activities

Planning

Scheduling

Purchasing

Quality Inspection

Process/equipment changeover

Equipment preventive maintenance/repair

Others?

Can these be eliminated?

32

Bullwhip Effect

The bullwhip effect is a phenomenon observed in supply chains where the

demand variability increases as one moves up the supply chain from

customers towards to distributors to manufacturers.

At P&G, diaper orders issued by

distributors have a degree of

variability that cannot be

explained by consumer

fluctuations alone

At Hewlett-Packard, the orders

placed to the printer division by

resellers have much bigger swings

and variations that customer

demands

Bullwhip effect refers to the phenomenon where orders to the supplier tend

to have larger variance than sales to the buyer (i.e., information distortion)

and the distortion propagates upstream in an amplified form (i.e., variance

amplification).

Reasons for Bullwhip

Measuring Supply Chain

Performance

Assets committed to inventory

Inventory turnover

Average aggregate value of inventory

Performance Measurement

Systems

Balanced Scorecard (Kaplan/Norton,1992)

The Performance Prism (Neely et al., 2002)

Skandia’s Navigator Edvinsson / Marlone, 1997)

Sourcing Strategies

Regression

The technique is used to find the equation that

represents the relationship between the

dependent and independent variables and

what proportion due to independent variables.

Can be used to find out the cause of some

problems when the underlying relationship

among different variables is not known

Useful Websites

madehow.comhow products are made

repository of how things are made in short

Referenceforbusiness.comEncyclopedia of company history

For fundas of management

http://www.ibef.org/industryFor snapshot of an industry including the key

figures

A readymade ppt of the industry

Food for Thought…

Some amount of dexterity in marketing and HR is also required

Hence a visiting company will expect a complete solution from your side not just in operations.

Show them that you have a command over theory

Show them that you can work with unstructured problems

Concepts is your home turf. You cannot not compromise on that

You are also expected to know the industry in and out. Knowledge of recent issues is a must.

Know key terms in an industry. For eg API in a pharmaceutical industry