NEECOM ANNUAL FALL CONFERENCE 2019

1. NEECOM ANNUAL FALL CONFERENCE 2019 COPING WITH THE SPEED OF CHANGE

2. Speed Of Change 2010-2019 2010- Apple debuts the I- Pad, Scientist create synthetic life, Robotic manipulation of non-rigid objects 2011- Consumer Level robotics are booming, first commercial spaceport built, USB 3.0 available 2012-Windos 8 is released, Nintendo launches the Wii U, Quad Core Smart Phones and Tablets 2013-Highly touch sensors start appearing , first gene therapy in the Western world, Xbox is launched 2014-Goggle glass is launched to the public, average internet connection is broadband, increased automation in retail environment , smart watches become a must have item 2015-Self regulating artificial heart, Windows 10 is released, Electric cars reach 1 million in sales 2016-The mining industry is highly automated, robotic use increase in the agricultural sector, High Definition becomes the norm 2017-Web connected video devices exceed the global population, wireless implantable devices for health sector are available 2018-2019-3-D printing becomes mainstream, LED’s start to dominate the lighting industry, use of cell phones and tablets sky rockets, driverless cars start to become a reality 2019 EDI continues its advancements estimated that it will grow to 5.9 billion by 2025

3. FACTORS CAUSING THE PERFECT STORM OF CHANGE People Places Technology The capacity for people to connect , share, learn and trade Is increasing exponentially both virtually and in real places through technology and rapid growth At 100 qubits a single quantum computer processor would, theoretically, be more powerful than all the supercomputers on the planet combined.

4. Worldwide Information Technology (IT) spending

5. Rate of Change “When the rate of change outside exceeds the rate of change inside, the end is in sight” Jack Welch

6. Customer Expectations over time

7. Regardless of what life cycle companies are in I typically get asked by Senior Management very similar questions What will it take to improve the alignment of strategy and execution? What will it take to improve processes and systems in all areas? What will it take to improve the ability of employees to embrace change? How can we improve the process of coping with change in all departments? How can we eliminate the amount of change and the speed of change? What systems can I purchase to improve my capability to manage change? Do we need more complicated and detailed processes and systems to manage change?

8. THE CHALLENGE FOR MANUFACTURING COMPANIES IN THE 21ST CENTURY IS TO EMBRACE AND MANGE CHANGE IN ALL ITS FORMS: Volatility - this change is unexpected or unstable and may be of unknown duration, but it is not necessarily hard to understand. Uncertainty - despite a lack of information, the event's basic cause and effect are known. Change is possible but not a given. Complexity - The change has many interconnected parts and variables. Some information is available and is predictable, but the volume or nature of it can be overwhelming to process. Ambiguity - This is change where no precedent exists: you face "unknown unknowns."

9. AGILITY AND SPEED PREDICTION AND FORECASTING ARE BECOMING INCREASINGLY DIFFICULT AND ESSENTIALLY A WASTE OF TIME

10. In a VUCA world… Constant Change with Rapid Response Rapid Response Rapid Response through being Agile Agile Simple Processes Agilethrough Simple Processes

11. UNDERSTANDING WHERE TO LOOK IS IMPORTANT: Review and simplification of over complicated processes Review over complicated systems should begin, often driven by incorrect assumptions during implementing systems, Review redundant processing and checking the checker by developing responsibility requirements Review and eliminate redundant transactions in all areas Reduce cycle times and lead-times in all areas • Eliminate excess purchase order approvals steps • Eliminate review, quotes, lead time checks before placing purchase orders • Provide product lead time matrix's for the sales and order entry areas this will reduce lead time and eliminate checking the checkers • Utilize Available To Promise and Capable To Promise logic

12. Change Activates

13. Supply Chain Management Volatility Product Supplier Factory Distributor Retailer Customer Orders

14. LITE the VUCA in the Supply Chain L Lean your supply chain processes I Identify your constraints T Time and Technology Exception based management E

15. Embrace VUCA As A Competitive Weapon LEAN SUPPLY CHAIN Demand volatility refers to unpredictable rate of changes affecting the demand side of a supply chain and can result in the bullwhip concept: Simplify and Excel In The Following: • Capacity Buffer Strategy requires close alignment with subcontractors • Reduce total supply chain cycle time • Postponement • Collaborative and fast flow of information among the supply chain players

16. SUPPLY CHAIN TOOLS LEAN SUPPLY CHAIN Supply Chain analysis (value mapping) Continuous information flow Vendor Managed Inventories Kanban EDI Value Stream Mapping FMEA Kanban Demand Pull Standard Work LEAN TOOLS Mistake Proofing Poka-Yoke TPM Equipment Reliability One Piece Flow Production 5S Visual Management

17. Lean Supply Chain Process Select Agile And Simple Direction LEAN SUPPLY CHAIN

18. Identify the constraints in your supply chain IDENTIFY CONSTRAINTS Demand Supplier Work Center Labor Information Talent

19. Risk in the talent pool IDENTIFY CONSTRAINTS T-shaped employees vs. I shape employees I-Shape employees have expertise in their area but cannot collaborate across multiple areas T-Shape employees have deep expertise in one area and a working understanding across disciplines, which gives them insight into the bigger picture. IDEO’s CEO, Tim Brown

20. Manage volatility with fast reaction times and technological solutions TIME AND TECHNOLOGY Volatility – can best be describe as an environment in continuous change and attempting to manage in a business environment of non-predictable trends and repeatable patterns equals volatility • Rapid change in parts availability • Rapid change in price • Rapid change in currency • Rapid geopolitical change • Rapid global customer expansion

21. LITE the VUCA in the Supply Chain L Lean your supply chain processes I Identify your constraints T Time and Technology Exception based management E

22. Why should we… Only 9% of the fortune 500 companies that existed in 1955 are on the list today The average life span of an S&P 500 company has decreased from 67 to 15 years in the last century We need to shift from the traditional management by objective to management driven by purpose The relevance of supply chain management cannot be understated

23. Warning Kodak Blockbuster Compaq, Digital, Prime Borders Books NEXT ?

24. Leonardo Da Vinci