Date: 19.10.2018 Name: Dušan Okénka Job title: owner, head coach

STRATEGIC AND OPERATIVE PROCUREMENT

IN PRAXIS

X-TRAINING

opened courses

closed courses

team potential unlocking

management trainings

leadership trainings

logistic trainings

purchasing trainings

X-CONSULTING

process analysis and development

company vision and mission

company values

grading scales creation

business model

audit of logistic department

mentoring

X-UNI

cooperation with universities

teaching of logistics

new Bc. programme development

lifelong learning development

X-SHARE

knowledge and experience sharing

logistics and purchasing publications

active participation in conferences

cooperation with logistics gurus

teacher

translator

sales

representative

controller

logistic

manager

chemist

au pair

freight

forwarder

operator

purchaser

accountant

translator

translator

customs

agent

dispatcher

electrician

expedition

clerk

facility

manager

accountant

photographer

financial

advisor

financial advisor

graphic designer

HR assistant

HR coordinator

mortage

specialist

internal

auditor

IT analyst

IT consultant design engineer

sales

representative

laborer

kulturní

referent

quality auditor

call center

manager

wage

accountant

warehouse

worker

broker

lecturer

marketing worker

technician

logistician

professional

dealer specialist

officer

personal

consultant

production

planner

insurance

advisor

policeman

fire-prevention

officer

reception

technicien

process

engineer

designer operational

manager

real

estate

broker editor

referent

revizní

technik

calculator forklift dricer

secretary

service

technician

social

worker

ISO specialist

risk specialist

building

manager

statistician

system

administrator

team

leader

technical worker

pharmaceutical

representative

maintenance

technician

technologist

credit

specialist

teacher

underwritter

sales

manager

store

manager

webmaster

co-driver

sales

representative buyer

HR coordinator

enterpreneur

IT analyst service

technician

graphic designer

dispatcher secretary

calculator

warehouse

lector

statistician

freight

forwarder

logistician

warehouse

worker

dispatcher

businessman

cost

accountant

technician

expedition

clerk

INTERSECTION What do have those people in common?

• all of them are currently working as professionals in the logistic (purchase) department

• all of them today set up and manage supply chains What are the other common attributes shared by them?

• approx. 2-3% of them have logistic (purchasing) background

• approx. 2-3% of them owns some book about logistics

• more than 50% had at most one or none logistic experience from the previous employment

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OE PP MRP ORM ASN MR RMS OFP TMP P FPS E C C

Panel analysis of the main company process

EXAMPLE Company is producing enamel parts which are made in pairs for Porsche Panamera Two day workshop – process mapping.

Lecturer: „Is there anything important that happened during night shift, what should I be aware of?“ Logistician: „Once again, they haven‘t produced what has been planned.“ Lecturer : „The reason behind it?“

Logistician : „Franta has forgotten to change the tool.“ Lecturer : „How do you want to solve it?“ Logistician : „I think we are going to organise a Saturday shift, and Franta will loose his bonus.“ Lecturer : „Are we going to implement some system measures?“ Logistician : „I don‘t understand the question....“

PLAN: REALITY 700 left parts/ 700 right parts 1.000 left parts / 400 right parts

GRAPHICS PRODUCTION

productivity PLAN: 1.400 REALITY: 1.400 RESULT: 100 %

PLAN REALITY PLAN REALITY PLAN REALITY

production plan deviation PLAN: 1.400 REALITY: 1.100

CUSTOMER order vs. delivery PLAN: 1.400 REALITY: 800

RESULT: 78 %

RESULT: 57 %

HOW MANY PEOPLE ARE SOLVING

THIS PROBLEM?

WAREHOUSE DISPO PRODUCTION

PLANNING EXPEDITION

SHIFT LEADER 2

SHIFT LEADER 1

MAINTENANCE WORKER

LOGISTIC MAINTENANCE

FORWARDER

CUSTOMER

SUPPLIER

SHIFT QUALITY

QUALITY

??

??

??

??

PRODUCTION

4:30 46

THE RESULT

• 25 – 30 people involved

• at least 5 hours is taking the communication in order to organise replacement production

• unhappy customer

• in case of recurrent problems demotivation of the employees => risk of loosing authority of the local management

• as a result there is decreasing level of the company culture

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OE PP MRP ORM ASN MR RMS OFP TMP P FPS E C C

Panel analysis of the main company process

RESULTS

Logistic gap

• customer is forcing us to adopt the process integration (information interface)

• inside of the company there is rapidly diminishing performance (ignorance of internal customer as well as of possibilities of the modern logistics)

50 %

75 %

100 %

25 %

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OE PP MRP ORM ASN MR RMS OFP TMP P FPS E C C

REASONS

• In the departments of logistics and procurement are working people without theoretical background

(education – unsuitable structure, non-existent disciplines of logistics and procurement)

• decrease of employees quality

• lack of quality leadership

• cooperation of strategic and operative procurement

Cooperation of strategic and operative procurement

Bratislava

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OE PP MRP ORM ASN MR RMS OFP TMP P FPS E C C

TRANSPORT STRATEGY (PREFERED INCOTERMS)

CONTRACT KNOWLEDGE (PURCHASED CAPACITIES)

DEEP KNOWLEDGE OF SUPPLIER (LOG. & PROC.ORG.STRUCT.)

PACKAGINGS AND PACK.INSTRUCTION INCL. LABEL

INFORMATION FLOWS (CALL OFF, ASN)

POSSIBILITIES OF SETTING UP THE CALL OFF

ORGANISATION STRUCTURE OF THE PROJECT

APPROVED PRE-SERIAL PROGRAM INCL. PRICES

APPROVED BACK UP STRATEGY

REVERSE FLOWS OF RETURNABLE PACKAG. AND RECLAMATION

PROJECT

PRE-SERIAL PHASE

SERIAL PHASE – INFORMATION FLOWS

SERIAL PHASE – MATERIAL FLOWS

BACK UP STRATEGY

THE SOLUTION DOES EXIST

THE SOLUTION DOES EXIST

THE ONLY STRATEGY, WHICH HAS POTENTIAL TO SUCCEED, IS THE EFFORT TO ACTIVELY CREATE THE FUTURE. -- Petr Pernica

CLEAR FUTURE (CLEAR VISION)

50 %

75 %

100 %

25 %

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OE PP MRP ORM ASN MR RMS OFP TMP P FPS E C C

DEFINE THE LOGISTIC CONCEPT AS A PART OF THE CONTRACT

Logistic concept is document, which describes the logistic processes in its complexity the split

of responsibility between suppliers and customer. It is worked out by the procurement

department. It is based on the Project Lastenheft (Project assignment).

According our experience we recommend following structure of the logistic concept:

1. Introduction

Project name, project duration, planned quantity of the cars

Milestones of the project (VFF, PVS, 0S, SOP, ME, EOP)

quantity of planned variants

2. Organisation structure of the logistic department

management

customer care

procurement (operative purchasing)

warehouse management

3. Calculation basis

number of shifts per week / maximal quantity of shifts during the week

calculated number of working days/year

calculation of inbound flows

calculated percentage for repairs of special packaging’s

calculated financial costs

4. Information flows

Basic set up of systems processing EDI data (LAB,...)

Basic set up of calculation material requirements

Basic set up of systems – procurement

Order liability – customer, key suppliers

Basic set of the systems – suppliers call off

ASN set up

5. Material flows

general scheme of material flow (suppliers structure, warehouse concept, expedition)

provision of special packagings and reasonable care of them

packaging instructions

delivery point

provision of packaging for the inbound material + present of packaging accounts

packaging instructions – suppliers

6. Production organisation

site of production

production planning

general description of production process 7. Transport concept

transportation order

Transport of returnable packagings

organization of loading and unloading

documentation

8. Logistic claims

reaction time, general course in proceeding of logistic claim

used documentation

claim evidence

9. Emergency concept

back-up server, back-up data storage, back-up EDI systems (so called data mirroring)

transport

packaging

SUMMARY

THE DEFINITION OF INSANITY IS DOING THE SAME THING OVER AND OVER AGAIN, AND EXPECTING DIFFERENT RESULTS. -- ALBERT EINSTEIN

supply chains are managed by people, which has not been educated in the field

low personal quality is further diluted with new, incoming projects

the outcome of such circumstancies is drastically low performance of logistic processes, resulting in redundant workforce requirements

Different approach – active moulding of the future

processes redesign, respecting the golden rule „Do it just once“

connect strategic a operative procurement

Define the logistic concept as a part of purchase strategy

active commitment to the education of the new generation of professionals (middle and high schools)

SUMMARY

Date: 22.10.2018 Name: Dušan Okénka Job title: business manager, head coach