Stream 3 – Operations Management

Dave Hinchman, CPIM

DEVELOPING A LEADING EDGE OPERATIONS & SUPPLY CHAIN STRATEGY IN A GLOBAL ENVIRONMENT

DEVELOPING A LEADING EDGE OPERATIONS & SUPPLY CHAIN STRATEGY IN A GLOBAL ENVIRONMENT

• Paramount to your business success. – What has worked in the past, probably will not tomorrow. – Facing changing business needs, mounting competition,

expanding markets, extended supply chains – you need fresh perspective on how to develop your plan.

• This presentation will help lead you - how to develop your winning strategy

My Background

• Current: Principal, Hinchman Consulting, LLC (John Deere Retired - 39yrs) – –APICS CPIM Instructor, APICS Corporate Finance Committee

• Prior: Led John Deere’s Quality & Production System for Supply Chain, Order Fulfillment and Lean Manufacturing globally.

• Previous Leadership positions: Operations, Mfg Engineering, Supply Management, IT SAP, Production Planning, and Order Fulfillment.

• Lead & Teach: APICS CPIM across JD, Operations & Supply chain courses globally, APICS Corporate Advisory Board, Speaker & Workshop leader at several International conferences including past several APICS International conferences, APICS 2015 Shanghai, IBF London & Amsterdam, SAPICS Sun City 2015 & 2016.

• Education: BS Industrial Engineering - Illinois, MBA Iowa, CPIM, JD Six Sigma Black Belt, Executive Education - MIT, Dartmouth, & Purdue

Issues with Current plan

– Focused on Business plan, • Forget their Supply chain & Operations plan

– What worked today, not tomorrow• Things change, products, competition, trade

agreements, demand shifts

– Focused on Main Operation in Home Market

– Each function works independently

– Done once & never revisited

Strategy Approach

• Use logic & data– Take emotion out

• Engagement – Everyone included & All agree on how to win

• Strategy event – Pre-Work

– 2-day workshop

– Mandatory - all functional decision makers

– Off site

Pre-Work - Demand

• ID Markets & Needs– What & where you need to compete on

• Demand Planning – Demand Lead time by region by product – each demand stream

– Demand curves - In season vs Out of season

Pre-Work - Supply

• Supply Planning

– Flexibility & Constraints – Man, Machine, Material

– Operations & Supply chain MCT maps

– Policy Alignment • Master Schedule, Customer Order, Supplier Order Change, &

Engineering Change

Pre-Work – Demand/Supply

• Speed– MCT maps with DLT for project/region

• Flexibility – Peak to Valley ratio maps

Pictures are worth a thousand words

Operation & Supply Chain Strategy Event – Day 1

• Set the tone – Senior Leader

• Decide on what you need to compete

• Analyze Pre-work data– Understand, Look for issues, What needs to change to win

• Let it soak overnight with Team building event

Operation & Supply Chain Strategy Event – Day 2

• Debrief Day 1, Identify Key Learnings

• Agree - What needs to be done

• Solutions & Prioritize- Cost/Benefit

• Short Term & Long Term projects to solve

• Priorities & Right function(s) to lead

Operation & Supply Chain Strategy Event

• Deliverables before you leave– All decision makers Agree on a plan to win

– Follow-up plan with “What by When by Who”

– Tie-in to your S&OP process to report out

– Set Date for next year’s event to revisit & fine-tune

• Celebrate your successful event

DEVELOPING A LEADING EDGE OPERATIONS & SUPPLY CHAIN STRATEGY IN A GLOBAL ENVIRONMENT

• Hopefully, you now have better insight into “How to develop your winning strategy”– It will work!

• Questions?