Practical Supply Chain Management. An Operational Approach

Kevin M. Moriarty

Melville NY

Sept 9th, 2014

AGENDAMature systemsManaging the changeSupply Chain NetworksProcess improvement programsEfficient & Effective methodsVertical & Horizontal Integration.Building a Slender Enterprise

(not just Lean Manufacturing) Getting the most “Value” out of your Supply

ChainExploiting partnership & long term relationship value.Future technologies

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Personal - BioHeld senior management positions with a number of New York Corporations and has served as a senior

executive, Vice President and General Manager for several Long Island high tech manufacturing companies throughout his career.

A full time faculty member at Stony Brook University’s College of Engineering and Applied Sciences. In the Department of Technology and Society. Teaching graduate and undergraduate courses in the Technological Systems Management and Global Operations Management programs since 1997.

Also an active member of the teaching staff of Dowling College’s, School of Business teaching graduate MBA and undergraduate business courses.

Recently (2014) joined the Board of Directors of APICS NYC-LI chapter as the VP of Marketing.

Managed company operations with over $150 million in annual sales and over 300 employees. Executive management positions with companies which are considered leaders in the industrial automation, controls and instrumentation industries, such as

AFC Industries, General Manager.Thermo Fisher, Vice President of Operation.Festo Corp, Vice President of North American Operations.Siemens Communication Corporation Plant Manager.Dayton T. Brown Inc., Plant Manager & Business Unit Manager

B.S.in Engineering from New York Institute of Technology M.B.A. from Dowling College.

 

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Mature Supply Chain Systems

The MATURE SCM SYSTEM Years or even decades of evolution

Bin Cards, re-order cards, bin/box systems, min/max, etc.

Purchasing, Inventory Control, Material Control separate departments.

Introduction of Computer Systems MRP, MRPII, DRP, CRM & ERP

JD Edwards, SAP, Oracle, MAPICS, DataWorks, etc.

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MANAGING CHANGE Manual to computerized systems

A deficient base creates a defective system. Don’t start with a poor foundation.

Re-order Point to KANBAN Systems Pull vs Push process (TRY TO PUSH A ROPE)

Make to Order vs Process Production

The introduction of automation Bar Codes, RFID, WIFI, Web based systems.

Buyers & Planners vs Buyer/Planners

MANAGING CHANGE continued

COMPUTER TECHNOLOGIES

Conversions; - Garbage in garbage out. - BOM’s are critical. SAP, JD Edwards,

Oracle, & DataWorks. - Routings and structures. - Lean concepts; eliminate waste &

create value!

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Embrace Change, COMPUTER TECHNOLOGIES are not the only

solutions??

Innovation; - Open channels of communication. - Empowerment. - Brainstorming. - Reward new ideas. - Lean concepts; eliminate waste &

create value!

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MANAGING CHANGE continued

SUPPLY CHAIN NETWORKS Supply Chain Networks

ConsortiumsBuy clubsWholesalers, Distributers, Manufactures, etc.

Logistics & TransportationNegotiations – who does it now?Matrix organizations – centralized SCM

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Performance measures, metricsInventory turns. Why is this important???Terms & Conditions, (ThermoFisher, discounts, but

verify) FOB who owns the product when (damage & ins.) 10/2/net30, etc.. (10DAYS, 2%, otherwise 30days) Product cycle times and net 60???

What is productivity? Dollars, hours, value.

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PROCESS IMPROVEMENTS

Effective & Efficient

Effective – doing the “Right Things”Efficient – doing them “Right”

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INTEGRATIONS; Vertical & Horizontal

Vertical; suppliers and customers.

Horizontal; competition, & parallel markets.

Always perform due diligence on make or buy decision.

Cost vs Savings $$$ Value; lead times, customer service levels, & quality. Profitability volume index, “covering overhead”.

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THE SLENDER ORGANIZATION

Not just Lean - The Lean Enterprise.

More than direct labor, Lean Manufacturing.

Support functions, Accounting, Sales, Customer Service, Planning, etc.

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Maximizing SCM

Getting the most value from; Suppliers Vendors Agents Consultants CUSTOMERS

Clear; scope, direction, objectives and communications

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PARTNERSHIPS & LONG TERM RELATIONSHIPS Exploit (Capitalize) on value creation relationships!

It’s not always just - $ MONEY $

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FUTURE TECHNOLOGIES

Virtual inventories ???

Amazon; drown deliveries???

Others???

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CONCLUSION

Question & Answer