Education is Key to Resource Management

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.

Up, Down, Turn Around

When the economy is in a down cycle, business professionals basically know what to do: Reduce production, thin out inventories, cut back on expenses, and so on. If they are slow to react to the downward trend, it will take longer to consume existing inventories, and costs will be higher than people would like until employees can get them back in balance with sales.

Returning production and inventory to an up cycle often is the more difficult process. Once caught with extra inventories and expenses on the way down, people naturally are reluctant to ramp up costs during recovery. The impacts of this slow reaction time are shortages and lengthening lead times, which can lead to lost business. As existing customers become frustrated and seek better service elsewhere, more agile competitors can end up increasing market share.

The purpose of forecasting is to provide a view of demand against which team members can build an operating plan during the sales and operations planning process. If the demand projection is wrong -- in either direction -- the operating plan will not provide the right products, in the right quantities, at the right times. The business will be unable to deliver adequate customer service.   Consider these suggestions:

-- Weigh the risk of too much inventory and higher costs against the risk of losing sales and customers due to shortages and delays.  Measure or estimate the forecast error via a straightforward formula that calculates the proper amount of safety stock based on desired service levels and lead time (a factor of forecast accuracy).

-- Lead time is a critical element of forecast flexibility and having extra finished-goods inventory is not always effective. If an organization can make products on demand in a very short time, then the inventory buffer should be at the major assembly, module, or critical-component level.

-- Take into account your supply chain partners since their flexibility and responsiveness in the distribution network will have a direct bearing on your ability to respond to changing demand and forecast inaccuracies.

-- Finally, understand the risks associated with responding to an expected change in the business level and manage those risks appropriately. Keep a close eye on inventory, but don't ignore the impact of lead time on your ability to be flexible and responsive.

Read more about fostering flexibility and responsiveness during unpredictable times at www.daveturbide.com