To a great extent, business success is a result of effective management of operations and resources. That is the focus of APICS — the association for operations management — an international organization with more than 40,000 members.
APICS is focused on education and professional development. Offering certifications in production and inventory management for manufacturing and distribution specialists and supply chain management (Certified Supply Chain Professional) which is valuable to professionals in fields as diverse as health care, retail, insurance, services, and logistics, APICS is dedicated to helping members and their companies better manage operations and get the most from all resources — people, equipment and facilities, materials, funds and trading partners.
APICS chapters throughout the world offer a professional development meeting that consists of either a presentation on an operations management topic or a plant tour. Recent topics in our local chapter include lean operations and six sigma quality, "green" energy management, capacity management, and the logistics infrastructure in China, among others.
The group also tours local plants and discusses the products, markets, and operations. At each of these companies, members are usually given a tour of the production areas and warehouses, learn about the company business and operations, and discuss their challenges and successes.
As an education-oriented association, APICS also offers classes on a wide range of operations management topics. There are programs leading to certification for individuals and others focused on operational improvements such as lean manufacturing and global sourcing. CPIM certification classes are offered through local chapters and colleges, and all classes and workshops are available on-site at host companies in the area, and at public scheduled sessions.
APICS members come from plant and warehouse operations, procurement, customer service, general management, logistics, information technology, and other business areas. The association publishes a magazine for members and offers a weekly newsletter to all (members and non-members) highlighting operations management issues in the news. For more information and to sign up for the newsletter, visit www.apics.org Many local chapters also publish newsletters with local activity schedules and items of interest.
APICS offers business professionals the opportunity to learn best practices in operations and resource management, enhance job performance and career advancement through education and certification programs, and helps companies advance productivity, innovation and competitive success.
Dave Turbide, CFPIM, CMfgE, CIRM, CSCP, is president of the Granite State chapter of APICS and vice president for education. More information can be found at www.daveturbide.com.
Showing posts with label Lean. Show all posts
Showing posts with label Lean. Show all posts
Thursday, July 22, 2010
Monday, February 8, 2010
Is it Supply Chain or Value Chain?
In this week’s AMR Research First Thing Monday email (February 8, 2010) Kevin O’Mara discussed the term “Supply Chain” versus “Value Chain” and whether the latter may be more appropriate these days. Specific terminology like this is intended to enhance communication and define specific ideas, processes, or programs. This kind of hair-splitting, however, might have the opposite effect. I’m reminded of the transition from MRP to ERP as the suppliers tried to position their products as newer and more modern than traditional MRP which, at the time, was already decades old.
After the release of elaborate definitions by analysts and the expenditure of lots of marketing dollars by suppliers, the new term came into common use. The truth, however, is that ERP was just a new term for what already existed – an evolutionary descendent of the technology approach of combining business applications to include more of the enterprise in a synergistic, collaborative whole. It appeared for a time that “Supply Chain” might replace ERP as the standard term for this kind of system but it doesn’t seem to have gotten the attention and backing of a critical mass of marketers.
In any case, the APICS Dictionary (11th edition, available online for members at www.apics.org) defines the two terms this way:
SUPPLY CHAIN: The global network used to deliver products and services from raw materials to end customers through an engineered flow of information, physical distribution, and cash.
VALUE CHAIN: The functions within a company that add value to the goods or services that the organization sells to customers and for which it receives payment.
Given these definitions, I believe that supply chain is a more appropriate term to describe the systems and processes. I don’t even object to using Supply Chain or Supply Chain Management (SCM) as a replacement for ERP to describe the systems we use to keep all this together and functioning effectively. Personally, I have been using the term “Enterprise Systems” to try to side-step the whole acronym debate.
Nevertheless, Supply Chain professionals are focused on enhancing the value-adding activities within the chain and eliminating those that do not add value. Most people view that as a “Lean” focus because the term Just-In-Time is considered hopelessly passé. Read more articles by Dave Turbide at www.daveturbide.com
After the release of elaborate definitions by analysts and the expenditure of lots of marketing dollars by suppliers, the new term came into common use. The truth, however, is that ERP was just a new term for what already existed – an evolutionary descendent of the technology approach of combining business applications to include more of the enterprise in a synergistic, collaborative whole. It appeared for a time that “Supply Chain” might replace ERP as the standard term for this kind of system but it doesn’t seem to have gotten the attention and backing of a critical mass of marketers.
In any case, the APICS Dictionary (11th edition, available online for members at www.apics.org) defines the two terms this way:
SUPPLY CHAIN: The global network used to deliver products and services from raw materials to end customers through an engineered flow of information, physical distribution, and cash.
VALUE CHAIN: The functions within a company that add value to the goods or services that the organization sells to customers and for which it receives payment.
Given these definitions, I believe that supply chain is a more appropriate term to describe the systems and processes. I don’t even object to using Supply Chain or Supply Chain Management (SCM) as a replacement for ERP to describe the systems we use to keep all this together and functioning effectively. Personally, I have been using the term “Enterprise Systems” to try to side-step the whole acronym debate.
Nevertheless, Supply Chain professionals are focused on enhancing the value-adding activities within the chain and eliminating those that do not add value. Most people view that as a “Lean” focus because the term Just-In-Time is considered hopelessly passé. Read more articles by Dave Turbide at www.daveturbide.com
Friday, December 4, 2009
The Lean Supply Chain
We are used to talking about Lean in the context of Lean Manufacturing and the techniques that are used to achieve Lean within our own plant – things like 5-S, Poka-Yoke and Kaizen. But how does Lean extend beyond the plant?
Extending Lean makes logical sense. Once we trim our own operations, reduce lead time and improve responsiveness, the path to further improvement leads outside of our own doors to the suppliers, customers, warehouses, transportation providers, and other supporting entities. Those entities can help get materials to us sooner and more in line with our needs and they can help speed products through the distribution chain to the end customer.
Some aspects of Lean naturally extend beyond our own four walls. Kanban replenishment, for example, works best when the suppliers are linked in to receive and respond to replenishment triggers directly. In most cases, this involves a blanket purchase agreement and a mechanism to signal releases (electronic kanban) directly to the supplier. However, other techniques that support Lean within the plant are not easily moved out into the broader world.
It's important not to confuse the techniques with the philosophy. Lean is a focus on adding value and eliminating those activities that don't add value (waste). Lean principles can be applied far beyond the plant floor – throughout the enterprise in such areas as customer service, administration and engineering – and throughout the supply chain. But the specific techniques used within the plant may or may not apply, or may need major rethinking to generate the kinds of improvements that we might expect and demand.
Applying Lean principles to the supply chain means enlisting trading partners in our efforts to drive out waste – it's not something we do by ourselves. The path to Lean in the supply chain can be summed up as CO-CO-CO-Collaboration
CO-operate: Establish the kind of close relationship with trading partners that will foster real cooperation to drive waste out of all activities both internal to the partner's operation and ‘in the seams' where product and information move between organizations. There has to be a certain level of trust between partners to enable such cooperation
CO-mmunicate: Open communication is the key to close cooperation. Electronic kanban is one example of communication on an operational level, but there also must be communication on a management and process improvement level to open new doors to waste elimination.
CO-ordinate: Collaboration is most visible in coordinated activities – smooth hand-offs of data and materials supported by joint efforts to link information and activities to eliminate delays, errors, miscommunication, or surprises.
All this adds up to collaboration, which the dictionary defines as working together, especially in a joint effort. Lean transformation within the plant can pay big dividends but the benefits of extending Lean thinking through the supply chain can be huge. To find out more about Lean Manufacturing visit www.daveturbide.com
Extending Lean makes logical sense. Once we trim our own operations, reduce lead time and improve responsiveness, the path to further improvement leads outside of our own doors to the suppliers, customers, warehouses, transportation providers, and other supporting entities. Those entities can help get materials to us sooner and more in line with our needs and they can help speed products through the distribution chain to the end customer.
Some aspects of Lean naturally extend beyond our own four walls. Kanban replenishment, for example, works best when the suppliers are linked in to receive and respond to replenishment triggers directly. In most cases, this involves a blanket purchase agreement and a mechanism to signal releases (electronic kanban) directly to the supplier. However, other techniques that support Lean within the plant are not easily moved out into the broader world.
It's important not to confuse the techniques with the philosophy. Lean is a focus on adding value and eliminating those activities that don't add value (waste). Lean principles can be applied far beyond the plant floor – throughout the enterprise in such areas as customer service, administration and engineering – and throughout the supply chain. But the specific techniques used within the plant may or may not apply, or may need major rethinking to generate the kinds of improvements that we might expect and demand.
Applying Lean principles to the supply chain means enlisting trading partners in our efforts to drive out waste – it's not something we do by ourselves. The path to Lean in the supply chain can be summed up as CO-CO-CO-Collaboration
CO-operate: Establish the kind of close relationship with trading partners that will foster real cooperation to drive waste out of all activities both internal to the partner's operation and ‘in the seams' where product and information move between organizations. There has to be a certain level of trust between partners to enable such cooperation
CO-mmunicate: Open communication is the key to close cooperation. Electronic kanban is one example of communication on an operational level, but there also must be communication on a management and process improvement level to open new doors to waste elimination.
CO-ordinate: Collaboration is most visible in coordinated activities – smooth hand-offs of data and materials supported by joint efforts to link information and activities to eliminate delays, errors, miscommunication, or surprises.
All this adds up to collaboration, which the dictionary defines as working together, especially in a joint effort. Lean transformation within the plant can pay big dividends but the benefits of extending Lean thinking through the supply chain can be huge. To find out more about Lean Manufacturing visit www.daveturbide.com
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