SMR notes

Prepared by: Vincent Gaspersz 1

Strategic Management of ResourcesPresented By:

Vincent Gaspersz, CMQ/OE, CQE, CQA, CSSBB/MBB, CFPIM, QMS-A

Professor in Total Quality and Operations Management, Program MM Universitas TrisaktiDoktor Teknik Sistem dan Manajemen Industri, Institut Teknologi Bandung (ITB)

Doctor of Science in Management of Engineering and Technology, SCUPSAPICS Certified Fellow in Production and Inventory Management (CFPIM)

International Quality Federation (IQF) Six Sigma Master Black Belt (SSMBB)American Society for Quality (ASQ) Certified Six Sigma Black Belt (CSSBB)

American Society for Quality (ASQ) Certified Manager of Quality/Organizational Excellence (CMQ/OE)American Society for Quality (ASQ) Certified Quality Engineer (CQE)American Society for Quality (ASQ) Certified Quality Auditor (CQA)

RABQSA Quality Management System Auditor (QMS-A)


BASICS of SUPPLY CHAIN MANAGEMENT

Philosophies Strategies Targets

Strategic Management of Resources

Product Demand

Internal Resource

External Resource

Material Plan

Capacity Plan

Supplier Plan

MasterMasterPlanning Planning

of of ResourcesResources

ExecutionExecution&&

ConrolConrolof of

OperationsOperations

DetailedDetailedSchedulingScheduling

&&PlanningPlanning

Fundamentals of Operations Management

Fundamentals of Manufacturing Control

Fundamentals of Planning

Fundamentals of Inventory Control

Building the CPIM Programme


Philosophies Strategies Targets

Strategic Managementof

Resources

DetailedScheduling

andPlanning

Executionand

Controlof

Operations

Basics of Supply Chain ManagementConcept Terminology Equations

Master Planingof

Resources

The CPIM program: an overviewThe CPIM program consists of 5 individual modules:

Entry module:Basics of Supply Chain Management: terminology and basic concepts related to managing the complete flow of materials from suppliers to customers.

Business process modules:Master Planning of Resources, Detailed Scheduling and Planning, Execution and Control of Operations: available methodologies and techniques to drive processes and the application of these techniques.

Capstone module:Strategic Management of Resources: choosing the appropriate methodologies and techniques for specific needs and an appreciation for the integrated nature of operations.

Minimize Production Cost Minimize Inventory InvestmentMaximize Customer Service

THE CPIM PROGRAM


Module 5: Strategic Management of ResourcesExplores the relationship of existing and emerging processes and technologies to manufacturing strategy and the functions related to operations planning and control. For maximum comprehension of course content students should be familiar with the information and concepts presented in the other CPIM modules before taking this course.

Aligning the Resources with the Strategic Plan:Competitive market issuesFactors affecting required facilitiesStructure of the supply chainChoices of information technologyOrganizational design and human resources policies

Configuring and Integrating the Operating Processesto Support the Strategic Plan:

The priority planning processesThe capacity planning processesDesign and development processesCost management processes

Implementing change:Evaluating and managing projectsMeasuring organizational performanceManaging change in an organization

Key ConceptsCapability AnalysisCommunicationConfigurationCost ManagerContinues improvementChange ManagerInformation technologyERP / MRP IIInformation systemsInfrastructure decisionsIntegrationHuman resources JITLife cycleMeasurement managementMarketOperations managementProduct decisionsProject ManagerQFDSCMSCORStrategy alignmentTaguchi MethodsTQM


Strategic Mgmt of Resources (SMR)

Major TopicsAligning Resources with the Strategic Plan

Configuring and Integrating the Operating Processes to Support the Strategic Plan

Implementing Change

Class Sessions1. Align Resources w/Strategic Plans2. Choices Affecting Ops Structure3. Choices Affecting Ops Infrastructure4. Configuring & Integrating Op Processes5. Supply Chain Management6. Configuring & Integrating Design and

Develop & Cost Mgmt Processes7. Project Management8. Measurement Management9. Change Management


Session 1: Aligning Resources with Strategic Plans

Objectives:1. Recognize the need for integration of the manufacturing process with the

company strategy2. Identify considerations to make in developing strategy3. Understand organizational strategy selection4. Explain how resources can be aligned with strategic market objectives5. Determine the importance of customer requirements in product design

and development6. Describe the strategic importance of Just-in-Time (JIT) and total quality

management (TQM)


A Corporate Strategy Model

VISION

MISSION

ORGANIZATIONAL OBJECTIVES

ENVIRONMENTAL SCANNING

INTERNAL STRENGTH AND WEAKNESS ANALYSIS

CORPORATE STRATEGY



Strategic Planning Cycle - PDSA


CORPORATE STRATEGY First Major Level

BUSINESS STRATEGY1. Price leadership (low cost operations, effective SCM, standardized process, etc)2. Product differentiation (high-quality products, easily adaptable processes)3. Customer focus (responsive delivery, process flow, customized for targeted market segment)

Second Major Level

FUNCTIONAL STRATEGY1. Financial strategy2. Product development strategy3. Operations strategy4. Marketing strategy

Third Major Strategy

VISION, MISSION, GOALS AND OBJECTIVES


OPERATIONS STRATEGY

Operations Strategy is the content and process of activities, directed toward distinctive operations competence, that evaluate potential impacts of situations and alternatives in structured time dimensions and integrate a pattern of decisions to balance the resource commitments, output requirements, and risk in various focused transformation efforts.


FOUR ELEMENTS OF OPERATIONS STRATEGY

1. Method for evaluating the impact of activities—methods to evaluate the impacts of activities and accommodate higher levels of uncertainty

2. Definition of time dimensions (time horizon and time fences)—the clear definition of time dimensions, including the time horizon and time fences, that permit the specification of periods within which actions must be taken

3. A mechanism for integrating decisions regarding other functional area strategies

4. Focused transformation efforts


FOCUS OF AN OPERATIONS STRATEGY

1. Process-focused strategy—this strategy is applied in companies that produce wide-ranging customized products or services at low volumes. This strategy is suited to less complex, less capital-intense technologies.

2. Product- or service-focused strategy—this strategy is applied in companies that produce a narrow range of standardized products or services at high volumes. It is concerned with making materials or sequencing value added activities through integrated work centers.

3. Customer-focused strategy—with the strong emergence of total quality management (TQM), this strategy is applied when it is important to integrate the “voice of the customer” throughout the processes in the company. These could include consideration of customer needs from the design stage until after the sale and including after-sale services.

These three focuses require different management approaches, employee skills, and resource intensities!


FINANCIAL STRATEGYFinancial Strategy of the firm is concerned with the planned use of financial resources and their integration with the business plan. Relevant financial strategies must include new “scorecards” that take into account the changing economy and the global market. Simple, quantitative performance indicators should drive the financial strategy. These performance indicators include: customer service, inventory turns, quality, etc.


PRODUCT DEVELOPMENT STRATEGY

The product development plans are concerned with the dominant technologies employed by the business and the way the evolve over time. If technology trends can be identified, they will drive product and process changes and guide product improvement, cost reduction, and new-product proposals.


Waste in Product DevelopmentWaste Category Example Implication

Defective Products

Excessive Inventories

Excessive Motion

Excessive Processing

Transportation

Waiting

Over Production

• excessive engineering changes• requirements change impact design• moving info from one person/group to another

• projects ≠ desired future business• work-in-process exceeds capacity• partially done work

• working w/ incomplete requirements• not using standard parts and subs• extra software features

• drawing or code errors• work does not match customer needs

• unnecessary items specified• too many approvals required• too much “paperwork”• excessive approvals and controls• process monuments• task switching on multiple projects

• workload ≠ capacity• excessive multi-tasking• delays due to reviews/approvals/testingdeployment/staffing/workload

• project sits for next ‘event’• not cost effective • inefficiencies built-in

• queue time, work-a rounds• batch processing, no flow

• ineffective use of skills• no decision rules• drives rework and inflexibility

• barriers to adding value• capacity consumed by rework

• long lead-time, rework• investment not realized

• queue time drives lead-time• no re-use of knowledge• drives supply chain variation

• excessive changes, scrap• rework, scrap, warranty


Design For Six Sigma Application

Phase 2Concept

Phase 1Pre-concept

Phase 3Product

Definition

Phase 4DetailedDesign

Phase 5Integration

& TestValidation

Phase 6Production &

Operation

Customers’Need

TECHNICALREQUIREMENTS

LIST

Manufacturing ProcessControl

Design for Six Sigma

Product Development Process

Lean Product Development Supplier Rationalization

Quality Improvement

Cycle Time and Cost Reduction

Business Objectives


MARKETING STRATEGY

Marketing strategy, like all functional strategies, is derived from the corporate strategy. Four of the most important issues dealt with in marketing strategy are:

1. Determining the market segment plan (Select the product market area, Identify the needs of potential customers, Match needs with market segment characteristics, Profile each segment)

2. Developing market niches (Niches are based on a common set of customers with a common set of preferences—in today’s environment, marketing strategy is focused on market niches)

3. Completing a competitive analysis (look at three forces: The existing competitive rivalry, The bargaining power of both suppliers and buyers, The threat of new entrants or substitutes in the product or service market)

4. Increasing the market share (Often the larger the market share, the greater the profitability of the firm)


CHARACTERISTICS THAT CREATE A COMPETITIVE ADVANTAGE

A firm can compete on one or a combination of the following, although an organization can effectively focus on only one or two at a time.

• Price (lowest price)• Quality• Delivery speed• Delivery reliability• Flexibility• Product design—technology, features/option, range• Service—after-sale and internal• Note: for the strategic advantages listed here, superiority is determined in

comparison to competitors in the same market niche.


THE WAY TO ACHIEVE COMPETITIVE ADVANTAGE

• TOTAL QUALITY MANAGEMENT (TQM)• LEAN ENTERPRISE (LEAN MANUFACTURING)• SIX SIGMA• LEAN SIX-SIGMA (LEAN-SIGMA)• ETC


ISO 9000:2000

Quality Initiatives

Statistical Quality Control

Continuous Improvement/Kaizen

Malcolm Baldrige National Quality AwardTotal Productive Maintenance

Supply Chain Management

Quality CirclesISO 9000 Standards

ReengineeringTheory of Constraints

Lean ManufacturingSix Sigma Quality

Lean Sigma??????

ISO 9000:2000






The End

Smarter:

• Shorter Cycle Time

• Smoother processes

• Simpler rules or procedures

SMARTERSpecific GoalsMeasurableAchievableResult-orientedTimelyEmpowermentReward & Recognition

Contact:Vincent GasperszPhone: 0251-332933 or

0813-1940-6433E-mail: [email protected]



BIODATAProf. Dr. Vincent Gaspersz, CQE, CQA, CMQ/OE, CSSBB/MBB, CFPIM, QMS-AProfessor (Guru Besar) Total Quality and Operations Management pada Program Magister Manajemen (S2) dan Doktor (S3) Universitas Trisakti, Juli 2002-sekarangMagister Sains Statistika Terapan IPB, Sep 1983- June 1985Doktor Teknik Sistem dan Manajemen Industri ITB, Jan 1988- Sep 1991Doctor of Science in Management of Engineering and Technology, Southern California University for Professional Studies, 1998-2000American Society for Quality (ASQ) Certified Manager of Quality and Organizational Excellence (CMQOE), USA, March 2006American Society for Quality (ASQ) Certified Quality Engineer, June 2006International Quality Federation (IQF) Six Sigma Master Black Belt, USA, August 2005ASQ Certified Six Sigma Black Belt, Certified Quality Auditor, RABQSA QMS AudiorCertified Quality Auditor (CIQA), Novo Quality Services (NQS) – Singapore, Sep 1994Certified Fellow in Production and Inventory Management (CFPIM), the American Production and Inventory Control Society (APICS) – USA, April 1998 Anggota Senior dari the American Society for Quality No. 00749775 sejak Feb 1994 -sekarangAnggota Senior dari the American Production and Inventory Control Society No. 1023620 sejak June 1995-sekarang


BIODATAPengalaman dalam Bidang Konsultasi dan Pelatihan di Industri (Perusahaan)

1. Menjadi Koordinator Pelatihan merangkap Instruktur dan Konsultan dalamBidang Manajemen Industri dan Kualitas pada Pusat Pelatihan Salim Group, 1991 - 1992.

2. Menjadi Manajer merangkap Instruktur dan Konsultan dalam Bidang ManajemenIndustri dan Kualitas pada Pusat Pelatihan Gajah Tunggal Group, 1992 - 1996.

3. Menjadi Instruktur dan Konsultan Utama dari Gramedia Pro-Q, LembagaPelatihan dan Konsultasi Kelompok GRAMEDIA, Jakarta, Sejak 1997 - 2003

4. Bekerja sebagai Instruktur dan Konsultan Profesional Mandiri (Independent Instructor and Consultant) dalam Bidang Manajemen Industri dan Kualitas sejakJuni 1996 – 2003 di Indonesia

5. Principal Consultant & Senior Coach dalam bidang Strategic Planning, Lean Enterprise, Quality Management System, and Integrated Performance Management System of MBNQA, Lean, Six Sigma and Balanced Scorecard, yang bertempat tinggal di Vancouver, Canada, 2003 – 2005.


BIODATAPengalaman Keterlibatan dalam Industri:1. Sebagai Anggota Tim ISO 9000 pada Perusahaan-Perusahaan dalam Lingkup Gajah Tunggal Group 1994 -

1996 Untuk Membantu: PT Gajah Tunggal, PT Filamendo Sakti, dan PT Gajah Tunggal Prakarsa. Perusahaan-perusahaan ini telah memperoleh sertifikat ISO 9002.

2. Membantu Mengintegrasikan Total Quality Management (TQM) dengan ISO 9002 pada PT Erna DjuliawatiPlymill, Kalimantan Barat, 1997.

3. Membantu Pembenahan Sistem Produksi pada PT Intinusa Rimbasari, 1998.4. Membantu Meningkatkan Efisiensi Industri Melalui Pembenahan Standard Operating Procedures (SOP) pada

PT Indah Kiat Pulp & Paper Tbk, 1998.5. Membantu menetapkan sistem manajemen industri dan kualitas pada PT Citra Serayu Mas Woodworking

Industries, 1999-20006. Membantu Perumusan Metode Pengukuran dan Evaluasi Teknologi Pertamina, 2001; dan Penyusunan Buku

Pengukuran Indeks Produktivitas Pertamina, 2002. 7. Menjadi Instruktur dalam Berbagai Topik Manajemen Kualitas dan Strategik pada Pusat Pelatihan Pertamina,

Jakarta sejak: 2000-sekarang.8. Sebagai Pembicara (Instruktur) Tamu pada Lembaga-lembaga: LPPM, Kursus Kader Pimpinan Pertamina-

Yayasan Patra Cendekia, Pusdiklat Pemda DKI Jaya, PT Astra International Tbk, PT Showa Indonesia Manufacturing, PT Asuransi Astra Buana, PT PLN UBS P3B Jawa-Bali, PT Telkom, PT Pertamina (Korporat), Badan Pendidikan dan Pelatihan PT Pertamina, PT Indah Kiat Pulp and Paper, PT BRI (Bank RakyatIndonesia), PT Semen Gresik, dan berbagai seminar publik maupun in-house (dalam perusahaan) sejak 1996 –sekarang.

9. Menjadi Direktur Lean Enterprise dan TQM pada Garibaldi Industries, Inc., Canada, 2003 – 2004.10. Principal Consultant dari Penaga Consult, Perusahaan Training dan Konsultansi di Canada, Malaysia dan

Indonesia, 2005-sekarang

SMR notes

Documents

sigma black

focused strategythis

certified

certified

total quality

inventory

detailed scheduling

total quality