Strategies for Improving Business Performance                           November, 2014

Welcome

First, we hope you had a very Happy Thanksgiving!  What could be more important than remembering to thank your employees, co-workers, managers, mentors, customers, suppliers etc.  Also, it is a great time of the year to take a step back from the "rat race" to think about your strategy and to enjoy time with colleagues, family and friends. 

This month, our feature articles focus on how to evaluate whether a point kaizen or systemic change is right for your organization and the 5 key metrics for a successful SIOP (sales, inventory and operations planning) implementation.  We are always interested in your feedback, so please send it our way.

If you are interested in improving your organization's supply chain management results, selecting and/or implementing the optimal ERP system for business success, providing training, coaching and change management for your leaders or becoming a lean organization, please contact us. You are also able to access our archives with countless articles for improving your performance.   

You might consider kicking off the New Year by diving into the APICS CSCP class for education on the end-to-end supply chain.  The APICS Inland Empire chapter is starting classes on Saturday, January 10th.  Learn more and register.
 
Point Kaizen vs. Systemic Change

By Andy Pattantyus, CPIM 

 

Ultimately, the goal of a lean initiative is to produce more output at a higher quality with shorter lead time using fewer resources. Not all lean initiatives accomplish these goals. A common reason for disappointment is management's lack of clear goals, combined with a failure to understand the difference between point kaizen and systemic change. 

Kaizen is the Japanese word for continuous improvement. Point Kaizen refers to an intensive transformation event where a single workcell is overhauled and "made lean" in the span of a few days. Many folks believe that Lean is Point Kaizen, but really it is only part of the initiative. 

 

Let's say a Point Kaizen event is scheduled. On the appointed days, consultants and workers gather and work feverishly for several days to improve a workcell. Five Ss are performed on 

 

Read the rest of the article

 

SIOP Metrics: 5 Key Baseline Measurements

By By Lisa Anderson, MBA, CSCP

 

Which metrics are most crucial for SIOP (sometimes referred to as S&OP or sales and operations planning)?  The simple answer is that it is those metrics most vital to running your business.

 

SIOP aligns not only demand with supply but it also aligns the various business units and functional areas on one plan.  Therefore, there are standard metrics which are key to SIOP including:

 

1.Sales revenues - certainly one of the key elements of SIOP is to forecast demand.

2.Inventory turns  - how quickly you are turning your inventory will have a direct impact on cash flow

3.Service levels - this metric will measure how well you satisfy your customers from on-time delivery, complete orders, etc. This is sometimes measured by the "perfect order".

4. Lead time  - the shorter your lead times vs. competition, the more likely you'll be able to grow sales, assuming all else is equal. 
The ACA Group:
Additional Resources
The ACA Group Partner Spotlight
 
Focused on "Supply Side" management, a strategy for improving profitability and competitive advantage.

Jim Strong is an independent consultant and trainer. He has over 20 years management and consulting experience, and has product and process knowledge in pharmaceuticals, electronics, plastic and rubber molding, metal fabrication, and aerospace products. more


Service Focus:
Companies are turning to supply chain management to deliver bottom line business results. 

Our view of the supply chain is from our supplier's supplier to our customer's customer inclusive of all elements in-between. It's no wonder executives are turning to their supply chain leaders to find out how to:
  • Compress lead times
  • Elevate service and delight customers
  • Improve margins & profitability
  • Accelerate cash flow
  • Increase productivity and profitability
We also have countless articles on achieving these types of results. Grab a few tips on our articles page and Lisa Anderson's 

UPCOMING EVENTS
January 9, 2015
Corona, Calif.

May 2, 2015
Corona, Calif.

 

The ACA Group is an alliance of operations and supply chain management experts who partner with organizations to improve business performance

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