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Practical Supply Chain Management.

Practical Supply Chain Management. An Operational Approach. Kevin M. Moriarty Melville NY Sept 9 th , 2014. A GENDA. Mature systems Managing the change Supply Chain Networks Process improvement programs Efficient & Effective methods Vertical & Horizontal Integration.

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Practical Supply Chain Management.

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  1. Practical Supply Chain Management. An Operational Approach Kevin M. Moriarty Melville NY Sept 9th, 2014

  2. AGENDA • Mature systems • Managing the change • Supply Chain Networks • Process improvement programs • Efficient & Effective methods • Vertical & Horizontal Integration. • Building a Slender Enterprise (not just Lean Manufacturing) • Getting the most “Value” out of your Supply Chain • Exploiting partnership & long term relationship value. • Future technologies 2

  3. Personal - Bio • Held 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. 3

  4. 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. 4

  5. 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 5

  6. MANAGING CHANGEcontinued • 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! 6

  7. MANAGING CHANGEcontinued • 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! 7

  8. SUPPLY CHAIN NETWORKS • Supply Chain Networks • Consortiums • Buy clubs • Wholesalers, Distributers, Manufactures, etc. • Logistics & Transportation • Negotiations – who does it now? • Matrix organizations – centralized SCM 8

  9. PROCESS IMPROVEMENTS • Performance measures, metrics • Inventory 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. 9

  10. Effective & Efficient • Effective – doing the “Right Things” • Efficient – doing them “Right” 10

  11. 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”. 11

  12. THE SLENDER ORGANIZATION Not just Lean - The Lean Enterprise. More than direct labor, Lean Manufacturing. Support functions, • Accounting, Sales, Customer Service, Planning, etc. 12

  13. Maximizing SCM Getting the most value from; • Suppliers • Vendors • Agents • Consultants • CUSTOMERS Clear; scope, direction, objectives and communications 13

  14. PARTNERSHIPS & LONG TERM RELATIONSHIPS Exploit (Capitalize) on value creation relationships! It’s not always just - $ MONEY $ 14

  15. FUTURE TECHNOLOGIES Virtual inventories ??? Amazon; drown deliveries??? Others??? 15

  16. CONCLUSIONQuestion & Answer 16

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