Leader Strategy SessionDuPont, Houston & Austin

Conducted by:CenTex OpEx Consortium

Martin Nazareth Aug 2014

Executive Summary

Two three-hour Leader Strategy Sessions were conducted on August 21st (Houston) and August 22nd (Austin). The focus of both sessions was Supply Chain Management. Sixteen leaders from seven organizations participated in the sessions. The session agenda included:

• Introduction

• Focus Topic Presentation

• Leader Discussion on Sub-topics I – VI

• Consortium Business & Open Forum

The topic was introduced using a presentation to clarify the scope of the discussion. Six sub-topics were chosen for discussionbased on typical problems faced in executing operational excellence.

Leaders from different organizations shared their successes and lessons learned indicating what works and what to avoid. Live discussion and feedback forms revealed an extremely positive feedback.

The session concluded with announcements of the next few events of the Consortium and training sessions available for complimentary seats:

– Leader Strategy Sessions: Supply Chain Management : Aug 21, 2014 — Houston, Aug 22, 2014 — Austin/Georgetown

– Sep 25, 2014: Benchmarking Session — Focus: Material Flow & Warehouse Excellence — Location: Omron, Houston

– Leader Strategy Sessions: Topic: Strategic Planning for 2015: Oct 16, 2014 — Houston, Oct 17, 1014, Austin/Georgetown

– Feb 4, 2015: Benchmarking Session — Focus: Toyota’s Kaizen Process — Location: Toyota, San Antonio

– Training Complimentary Seats for Members:

• Sep 9 – 10, 2014: Integrated Management System — Location: Houston (Facilitator Training)

• Sep 11, 2014: Enterprise Transformation for Leaders — Location: Houston (Leader Training)

• Sep 12, 2014: Strategic Metrics for Leaders — Location: Houston (Leader Training)

• Webinar — Advanced Process Excellence: Aug 28: Flow Charts & Failure Modes & Effects Analysis

• Webinar — Back-to-Basics of OpEx Webinar Series: Aug 29: Workplace Organization (5S)

• Webinar — Product Development Process Webinar Series: Aug 26: Preliminary Assessment & Requirements

• Webinar — Theory of Constraints Webinar Series: Aug 25, 2014: Foundations of TOC (pre-requisite for sequential series)

Participants

Organization First Name Last Name

Axion Nathan Byman

Axion Tristan McLerran

Dupont Jennifer Lai

DuPont John Osby

Enflite Ravi Vemulapalli

Entegris/ATMI Cindy Palko

MIC Group Denise Kiel

MIC Group Marijn van den Elsen

Omron Oilfield & Marine, Inc. Melissa Barnes

Omron Oilfield & Marine, Inc. Chris Glazier

Omron Oilfield & Marine, Inc. Ralph Lehmann

Omron Oilfield & Marine, Inc. Tom O'Reilly

Omron Oilfield & Marine, Inc. Richard Ray

Omron Oilfield & Marine, Inc. Scott Townsend

OpEx Solutions Martin Nazareth

OpEx Solutions Vivian Sullivan

Topics Covered

Supply Chain Management Overview

Introduction

Sharing of Knowledge & Experience Discussion Topics

Consortium Business & Open Forum

Adjourn

Agenda – Leader Exchange Event

Note: Austin event began ½ hour later

12:30 – 12:45 Introduction

12:45 – 12:10 Focus Topic Presentation

12:10 – 1:30 Leader Discussion on Sub-topic I

1:30 – 1:50 Leader Discussion on Sub-topic II

1:50 – 2:00 Break

2:00 – 2:20 Leader Discussion on Sub-topic III

2:20 – 2:40 Leader Discussion on Sub-topic IV

2:40 – 3:00 Leader Discussion on Sub-topic V

3:00 – 3:20 Leader Discussion on Sub-topic VI

3:20 – 3:30 Consortium Business & Open Forum

3:30 Adjourn

Leader Strategy Session (LSS) Objectives

Learn by sharing

Enterprise transformation

Successful Strategies

TransformMetrics

Motivating people

Extending enterprise

Topics Covered

Supply Chain Management Overview

Introduction

Sharing of Knowledge & Experience Discussion Topics

Consortium Business & Open Forum

Adjourn

Supply Chain Management

Supply Demand

OTD, Quality,

Cost, Capacity

Production

Control

Make/Buy,

Requirement, changes,

dunnage, Lead time,

Inventory

Metrics

Topics Covered

Supply Chain Management Overview

Introduction

Sharing of Knowledge & Experience Discussion Topics

Consortium Business & Open Forum

Adjourn

Topics

• Sub-topic I: What are the most significant issues caused by your

suppliers?

• Sub-topic II: What are your strategies to develop stable and

capable suppliers?

• Sub-topic III: What are the key metrics you are using to select,

develop and monitor your suppliers?

• Sub topic IV: What are you doing to be a good customer with

quality designs, requirements, sourcing on time, reviews, …?

• Sub topic V: What continuous improvement activities do you

conduct with your extended enterprise and what results do you

expect?

• Sub topic VI: What other topics in SCM are most important to your

organization?

Sub-topic I: Most significant issues caused

by your suppliers?

Houston Session

• Late deliveries

• Damaged parts

• Late updates on deliveries

• Inadequate lead times

• Quality – non-compliant

• Missed shipments

• Missing documents

• Inadequate capacity

• Labor shortage at peak

Austin Session

• On time delivery

• Quality

• Communication

• Logistics

• Capacity

• Changes from supplier, material,

measurement,…

• Process

• Paperwork, documentation

Sub-topic II: Strategies to develop stableand capable suppliers?

Houston Session

• Secondary/multiple sources

• SCM strategic issue

• Back to Basics of Operational

Excellence training

• Vendor day

• Report card

• Supplier development

• Share forecast info

• A and B suppliers – grow,

maintain, exit

– Critical few objectives

– Six-month review and develop

next few objectives

Houston Session (cont’d.)

• Visit suppliers and have VSM review

• Engineering drawings

• Interim reviews

• Front loading

• Commitment assurance

• Certifications

• Financial stability verification

• Internal verification template before

sending info to enhance accuracy

• Capacity verification & risk analysis

• Stage gate (PDP) on-boarding and

launching of new programs and

suppliers

Sub-topic II: Strategies to develop stableand capable suppliers?

Austin Session

• Category management teams for

supplier development– SQE, Purchasing, Plant Quality

• Supplier goals

• Supplier competition

• Responsiveness and

communication with standard

processes

• Scorecard – joint

• Strategic roadmap alignment

• Formal NPI (new product

introduction) process

Sub-topic III: Key metrics to select, develop and monitor suppliers?

Houston Session

• Quality

• Delivery

• Price

• Service – responsiveness

• Lead time

• Stocking levels

• Capacity – initial

• Field service (service after sale)

• Financial health

• Safety

• Qualifications and certifications

Austin Session

• Financial strength

• Technical capability

• Capability survey– Process

• Capacity

• OTD

• Quality

• Location

• Certifications

Sub-topic IV: Actions or steps to be a good customer?

Houston Session

Communication – timely

Pay on time

Provide accurate and timely

designs, drawings and

specifications

Minimize number of changes

Understand part numbers and

mapping

Accessibility

Provide help

Planning and scheduling

Problem solve together

Taking suggestions

Alignment of product/service

Houston Session (cont’d.)

• Advance visibility - forecast

• Minimize expediting – hot

• Integrity

• Fair

• Win-win

• Receive constructive feedback

• Positive feedback

• Establish relationship

• Supplier bonus for quality and

delivery

Sub-topic IV: Actions or steps to be a good customer?

Austin Session

Communication

Timely PO

Forecasts

Changes

Prioritization

Paying and agreed upon

payment terms

Make being a good customer

an initiative

Preferred customer

Sub-topic V: CI activities with your supplier and results expected?

Houston Session

• Safety on site

• Quality improvements

• SABR (semi-annual bus. review) event

• Visit and help supplier with CI

• Invest in making the suppliers better

• Offer training events

• Vendor day – show metrics

• Promotions – bonding events and

sponsorships

• Updates, revisions, technical

improvements (barcoding), beta testing

• Financial bailing out

• Kaizen participation

• Share new ideas

Austin Session

• Supplier process development

• Kaizens

• Training

• Expected improved:– On time delivery

– Quality

– Scorecard

– Quality management system

Sub-topic VI: Other important SCM topics?

Houston Session

• Hedging the metal market

• Outlook of SCM

• Make or buy

• Total cost analysis

• Overhead absorptions

• Competitive advantage

• Planning and forecasting

• Visibility and accountabilty

• Off-shoring, resourcing, next-

dooring

• Logistics

• How do your get new talent

interested– Trades

Austin Session:

• Cost reduction – landed cost– Total cost of ownership

• Sub-tier management

• Vendor managed inventory

• Make or buy decisions– Competitive advantage

• Secondary sources

• Personnel management – turnover

• Location

• Risk management

Topics Covered

Supply Chain Management Overview

Introduction

Sharing of Knowledge & Experience Discussion Topics

Consortium Business & Open Forum

Adjourn

Announcements — COC Events

— Leader Strategy SessionFocus: Strategic Planning for 2015

Oct 16, 2014 Houston, TX

Oct 17, 2014 Austin, TX

— Nov 19, 2014: Benchmarking SessionFocus: TBD

Location: TBD

— Sep 25, 2014: Benchmarking SessionFocus: Material Flow and Warehouse Excellence

Location: Omron, Houston

— Leader Strategy SessionFocus: Annual Strategy Execution

Jan 27, 2015 Austin, TX

Jan 28, 2015 Houston, TX

Announcements — Training Courses

Please note that COC Members may use their unused

complimentary training seats for any of these courses.

• Leader Training Week, Sep 9-12, 2014

– Integrated Management System

– Enterprise Transformation for Leaders

– Strategic Metrics for Leaders

Location TBD

Customized working sessions to help organizations solve issues

they may have in different areas

• Setup Reduction

• Engineering Process Analysis

• Failure Modes and Effects Analysis

• Capacity Analysis

• System Review

Announcements — Live Webinars

Please note that COC Members may use their unused

complimentary training seats for any of these webinar

series. All series restart in August.

• Advanced Process Excellence Series

Aug 28: Flow Charts & Failure Modes & Effects Analysis

• Back-to-Basics of OpEx Series

Aug 29: Workplace Organization (5S)

• Product Development Process Series

Aug 26: Preliminary Assessment & Requirements

• Theory of Constraints (TOC)

Aug 25, 2014: Foundations of TOC (Restart of Sequential Series)

Upcoming Professional Org. Events

AME Jacksonville 2014

ANNUAL CONFERENCE & EXPO

November 10 - 14, 2014

Jacksonville, FL

Publication Opportunities

Industrial Engineer is a practitioner magazine, not a journal. As

such, content is more geared toward the “real-world” and less technical

than journals.

– Submissions should range from 2,000 to 3,500 words, be non-

copyrighted, original work, and include practical ways to help our

readers make improvements in their professional lives. IIE prefers

submissions written in third-person narrative that concentrate on

process, not products. Articles that focus on future trends, thought

leadership and/or that take a how-to tone are more likely to be

accepted. Graphics, charts and photos are encouraged but not

mandatory.

– Deadlines are two months in advance. So anything received by April 1

could be considered for June, etc.

Topics Covered

Supply Chain Management Overview

Introduction

Sharing of Knowledge & Experience Discussion Topics

Consortium Business & Open Forum

Adjourn