Good leaders inspire people to have confidence in them.

Great leaders inspire people to have confidence in themselves.

Cultural Change

Cultural Change

I am committed to being teachable and driven to create an environment of continuous improvement.

To implement lean or anything associated with business process improvement requires leaders who are honest with themselves and the people they lead

What I am finding out is that people in general are comfortable with not changing, they are happy with the “status quo” its easer not having to confront or challenge current practice.

Teachable Spirit

At he heart of any change is the individual with a teachable spirit, without it change will not happen because the individual believes his or her way is best. The basic principle of continuous improvement is that perfection is pursued and not achieved. If perfection is achieved it is short lived due to changes in technology, material and customer requirements.

Breaking Records

World records are achievements of perfection but records were meant to be broken, history has proven this time and time again.
Individuals who set out to break these records challenged the status quo by confronting the methods of achieving a new world record by becoming faster and stronger.

“An organization that lacks leaders with teachable spirits cannot achieve cultural change”
Joe Perillo

Real Time Cost Data Help Increase Revenues

Operational leaders are relentless in driving efficiencies into an organization and cutting costs. Without real time data you will always be reviewing the past. Not having immediate access to their actual costs does not allow for immediate decisions to redirect or make adjustments.


Real time cost management can give you a competitive advantage to significantly boost the bottom line.

Access to real time cost figures enables:

New sales opportunities to be evaluated for decisions that will help win the most profitable business with increased margins
Timely decisions by sales and operations planning teams of how to price and when to be aggressive
Improved production flow and the prioritization of orders in the factory to optimize revenues while minimizing costs
Help manage inventory cost by keeping the correct amount at the right place at the right time
Help focus on the higher cost processes for continuous improvement priorities
A cost management capability gives visibility into operational costs allowing the opportunity to improve margins and increase revenue.

Leadership Attributes in Good Times and Bad

Leadership Attributes in Good Times and Bad

During this time of recession we have seen our share of articles claiming what leadership skills work best during a down economy. In my opinion I believe leaders need to have certain skills sets no matter what the economic condition is.

I have listed six of the leadership attributes that will benefit any organization during good times and bad.

1. The ability to generate and maintain a vision that will keep everyone focused during rough times as well as good times. During bad time it will help create possibilities rather than a return to past practices that seemed safe. In good times a shared vision will maintain focus on the prize. There is a saying “the enemy of the best is always the good” There are many good things we do throughout our day but are the best thing we could be doing.

2. The ability to inspire individuals to rise above the crisis. This is the opportunity to become better by using every opportunity to learn and grow stronger.

3. It has been said that character is far more important than technical expertise. A leader with integrity gives him or her ability to be honest with themselves and the team they lead in order to move ahead.

4. A leader must create an environment that allows people to take initiative that will improve their work. They must feel safe to fail if you expect them to make improvements. If they feel you expect only perfection they will never attempt any process improvement.

5. A leader must provide the direction and support allowing the organization to provide value to the customer and prosperity for the company.

6. Leaders must be able to duplicate themselves through mentoring this requires a leader to be open and willing to share knowledge. A leader must also create an environment that allows individuals opportunities to develop their skills.

It is clear that the supply chain does not end at purchasing and inventory management. Supply chain management SCM encompasses all of operations to include planning, engineering, manufacturing, logistics and service. One can view the extended supply chain from the suppliers all the way through to the customer. An additional element to SCM is Lean Enterprise. Incorporating continuous improvement to SCM is a perfect union to meet the customer’s requirement. By viewing the customer’s requirements through the value and non value added perspective we can continually improve every link within the supply chain.

I keep a section of chain on my desk as a visual tool. When someone ask what it’s for I will ask them to try to push the chain keeping it straight and properly spaced. It quickly becomes obvious that it’s almost impossible. The chain needs to be pulled for it to remain straight and properly spaced. In lean terms this is called the pull system. The customer pulls and the supply chain reacts to the demand. Making sure demand is met at the right time in the right quantity is the basis of supply chain excellence SCE.

Just like increased cash flow is a result of lower inventory the same holds true in reduced lead time through operational excellence will result in improved customer performance, increased flexibility and response time.

The Sales & Operations Planning process is a perfect tool for the executive leadership to review all the links of the supply chain enabling the team to make the decisions that will meet current and future demand in the most efficient cost effective manner. This requires an executive team that is led by a CEO that is informed about each link of the supply chain.

These are all areas that impact both the top line and bottom line. It doesn’t matter what type of business you’re in, removing waste from your process will help you meet your customer’s requirements faster, better and at a lower cost.

"Joe Perillo had a vision for the future of brake caliper production. It included the expansion of supply solutions through tooling up castings and coordinated buys. This methodology proved to be smart business practice and put Cardone in a position to grow profitably."
— John Strong, Production Manager Mfg Engineer, worked indirectly for Giuseppe at Cardone Ind.

“Joe brought to the DVIRC a rich and strong manufacturing background with a passion towards Lean Manufacturing. Combining Joe's quick study of Lean and his excellent interpersonal skills, Joe quickly became one of our leading consultants. Some people do a job just to get it done, Joe gets the job done with care - a big difference!”
— Barry Miller , President/COO, DVIRC managed Joe indirectly at DVIRC

"Joe is largely responsible for helping our company achieve the difficult task of bringing lean manufacturing methods into a pharmaceutical R&D environment. A large component of this task deals with cultural issues and working with various personality types and the ways in which they react to change. This is the area where Joe's skills shine the brightest. He has very high emotional intelligence and is extremely competent at working with "difficult" individuals and coaxing them through change. His high level of integrity is another attribute that contributes to his capabilities in this regard"
— Andrew Reaume President & CEO at Melior Discovery, Inc was Joe's client

"I had the honor of working with Joe for several years and found him to be an exceptional leader. He has a "get-things-done" attitude and refuses to let off the accelerator until the project is complete. He was able to use his transferable skills in a variety of different projects and organizations to produce excellent results, all while teaching and developing the people that work for him."
— Russ Schinzing, GM DMR Electronics Detroit Diesel Director of Operations - Electronics, managed Joe at Cardone Ind.

"Joe Perillo and I worked together at several clients to improve the productivity of their operations. Specifically, Joe facilitated events designed to systematically promote rapid change. Joe was a master at this, as he was always able to guide the clients to make significant changes, yielding significant results, with the clients owning the change and its aftermath. Clients liked working with Joe, as did I. He combines intelligence, hard work, and a good sense of humor. I recommend him highly."
— Harold Floyd, Business Solution Advisor, DVIRC, worked with Joe at DVIRC

"In all my years of working with Joe I have always found him to be a very positive and motivational force within his team and the business. He has never been found wanting when requested to attack a challenge or a task with the energy, motivation or intellect necessary for success."
— Russell Eggert, Director, worked with Joe at Cardone Industries

"Joe is a great guy to work with and we miss having him at DVIRC. He is a strong team player, stand out leader and all around, the type of person you want to work on a project with. The Skill sets Joe can offer make him a key player and a world class performer"
— Chris Scafario, Marketing Manager, DVIRC, worked with Joe at DVIRC

"Vision without action is merely a dream;Action without vision just passes the time;Vision with action can change the world." Author Unknown

As with any organization a vision statement can give direction and purpose.
Most companies have a vision statement that covers the purpose and direction of the entire organization but in most cases we overlook the opportunity to create a vision at the operational level.

The operational vision statement can give clarity and create a greater focus on standard operational elements.

The purpose of the Operations Vision provides three main areas of focus.
As with any visioning process it provides leadership the ability to communicate what is important to the organization along with how everyone involved can contribute to achieving the goals of the organization.

Second, the Operations Vision creates a picture that is visible to everyone and keeps everyone going in the same direction.
It is a known fact that as individuals we can easily become distracted with a multitude of projects. They may be good but are they the best thing we could be doing with the limited resources. An operational vision statement can provide the immediate redirection and a quick assessment if a project is in alignment with the operational vision.

Thirdly, the vision statement is a tool that is used to assess whether capital investments, continuous improvement initiatives, and projects are within the scope of the company's direction and align the divisional goals with the corporate goals.
In conclusion, the vision statement assists in differentiating initiatives that do not support the direction and redirects resources to the ones that do.
It is important that the operational vision support the overall organizational goals but as we look at the elements of an operational vision we can easily see that these key elements easily align with any corporate vision.

Listed are the top 9 elements of a standard manufacturing operation:

Operations Vision Elements:

1. Safety
2. Quality
3. Cost
4. Continuous Improvement “Lean Principles”
5. Flexibility
6. Delivery
7. Supply Chain Management
8. Manufacturing Lead-time & flow management
9. Management/Labor Relations

Vision Element (including the description) Examples

1. Safety:
“Safety is our highest value. By maximizing the participation of our most valuable assets, our people we will seek out and correct all unsafe situations with zero recordable injury incident rate being the only acceptable goal. This value is embedded in our organization by being part of our culture. Every employee and its contractors, is expected to be an active facilitator of this culture”.

2. Quality:
Besides the primary goal of meeting the needs of our customers, the organization will also meet these objectives;
· Safely delivering a quality product and service.
· Fully involving our employees.
· Provide quality leadership in our industry.
· Practicing a participative management style.
· Maintaining adherence to the requirements of any internal and external certifications

3. Cost:
We will evaluate and apply true cost analysis on individual projects. We will use cost containment and cost reduction strategies across the entire supply chain using lean principles.

4. Continuous Improvement “Lean Principles”
We will establish a continuous improvement culture throughout the organization at all employee levels. Implantation will be done through training, certification and hand on training.

5. Flexibility:
We will develop flexibility through cross training at all levels throughout the organization. This will give the organization the competitive edge by redeploying resources as our business requirements change giving the company a faster response time to our customers’ needs.

6. Delivery:
We will support logistics delivery goals by focusing on speed and responsiveness in all business processes’ (dock-to-dock). We measure time as the primary basis of operational metrics. We will do the right things faster!

7. Supply Chain Management:
Our Supply Chain will operate in an environment devoted to a philosophy of Continuous Improvement, providing accurate storage of materials purchased in the right quantities, at the lowest cost. Our Supply Chain will receive and deliver those materials in a cost-efficient and customer-focused manner throughout the entire operation.

8. Manufacturing Lead time & Flow Management: (Examples)
· For standard products, we can receive an order today and ship tomorrow. During the busy season, this requires stocking and forecasting. During the slow season, we can make-to-order and ship the next day.
· For routine and simple custom or non-standard products (reoccurring exceptions from standard), we can ship within one week.
· For custom and unique products, we can respond to customers with shipment commitment within five days.
· In short, the marketplace recognizes the organization as the leader in delivery performance.

9. Management/Labor Relations:
The organization is committed to excellence when providing a safe work environment in a professional, caring, and consistent manner.
To encourage and support our employees; recognizing that through their high standards, creativity, and commitment, the operations will perform at the highest level of excellence in providing products and services to our customers.

Joe Perillo

Transforming your Business through Supply Chain Excellence
You may have heard the term “Operational Excellence” this term has been used to refocus a business when cost, lead time, quality or any other operational function was not meeting specific goals. It was also used as a motivation for operations that performed well in spite of the external tough economic times.
Supply chain excellence (SCE) is not much different. The goal of supply chain excellence is to focus the organization on reducing inventory, lead-times along with improved planning cycles and inventory turns. SCE is also improving inventory accuracy and visibility. When an organization is focused SCE they have to include the extended supply chain, meaning they have to look beyond just the four walls of their business. This requires you to look beyond your tier one supplier. An example is looking at a steel mill that supplies steel to the service center that process’ the steel that you eventually purchase for your manufacturing needs.
Understanding this extended supply chain will enable you to begin to your journey of supply chain excellence.
“For every action there is a reaction”
In my own experience when cutting inventory without fully understanding the impact on the extended supply chain resulted in major debacle. The outcome was lost production and ultimately lost sales because we failed to fully understand the extended supply chain and the impact on our business.
“Fear of Proper Planning”
Do not be afraid to include your supply partners in your forecast planning. They have insight into areas that you may have never considered.
“21st century planning”
In this day and age the resources that are available for proper planning give any organization no excuse for poor planning. The Sales & Operations Planning is a process of bringing together a cross functional team that has visibility across the entire organization in meeting customer demand in the most efficient and profitable way. This process is nothing new, but will still have organizations planning their day to day operations in silos. This type of planning gives no visibility across the organization or the extended supply chain.
“Voice of the Customer”
Who is listing to the customer? We sometimes overlook the obvious that the customer is part of the extended supply chain. They are the reason why a company exists but we so often treat them as if they exist because of us. The customer can provide vital data that will help reduce inventory and lead time.
“Win Win”
The approach for both suppliers and customers should always be a “win win” opportunity. It’s amazing the attention you get when there is gain to be shared for both sides.

“Leadership through Influence and not Influence Through leadership”

I believe the Bible has many lessons on leadership and it provides the ultimate example of the greatest leader known to mankind “Jesus”. Jesus is God who became a man to die for our sins but He was also the example for us to follow. In the span of three years He led twelve men and changed the world. Two thousand years ago Jesus taught servant leadership, those same examples He taught then apply to the challenges we face today as leaders.
Sheep Are Led
Oh come, let us worship and bow down; let us kneel before the Lord our Maker. For he is our God, and we are the people of His pasture, and the sheep of His hand.
--Psalm 95:6-7
Cattle are driven; sheep are led; and our Lord compares His people to sheep, and not cattle.
It is especially important that we know the law of the leader--that he can lead others only as far as he himself has gone....
The 21 Irrefutable Laws of Leadership by John Maxwell. In the first law–the law of the lid, John Maxwell talks about that there is a lid on a person’s leadership ability and this lid determines his level of effectiveness. The lower a person’s ability to lead, the lower the lid on his leadership ability, and the lower his effectiveness. On the contrary, the higher the leadership ability, the greater the effectiveness. Your leadership ability always determines your effectiveness.
The leader must have the experience and believe in the mission if he wants to lead or he will find himself in the impossible position of trying to drive his people to change. For this reason he should seek to develop his own ability before he attempts to lead others....
If he tries to lead them through a task or challenge which he has not actually experienced nor does he look to create an environment that allows others to rise up and lead the team through the challenges he is destined to fail. In his frustration he may attempt to drive them; and scarcely anything is so disheartening as the sight of an angry and confused leader using threats in a futile attempt to persuade them to go on beyond the point to which he himself has attained....
The law of the leader tells us it is better to cultivate our character as a servant leader than our voices. It is better to know that our hearts and minds are in the right place than the position or title we hold, if our hearts and mind are in the right place this is the foundation of true leadership. I believe in leadership through influence and not influence through leadership.
There is a saying, “it is more impressive to see a flock of sheep following a lion rather than a lion following a flock of sheep”.
We cannot take our people beyond where we ourselves have not been, and it becomes vitally important that we be leaders of character in the highest sense of that term.
Joe Perillo

“The Purpose of the S&OP Process”
Lean is about continuous improvement, elimination of waste and sustainability by establishing process’ and standards. The S&OP process is a “lean tool” in the form of a process that will help reduce and control raw material & finished goods inventory, reduce or eliminate unnecessary overtime, control lead time when business is increasing or decreasing and manage our capacity better without turning away sales orders. All of these factors, if not controlled or go unchecked will erode your bottom line.

I was asked join my current company by the President & CEO as the Director of Supply Chain, Logistics and Lean Office. In this role my challenge was to help change the culture to a more professionally managed organization. In doing so I have introduced several objectives that will help an organization achieve these goals and allow for profitable growth. The S&OP process is not a small side project it is a vital part of the business because it involves every aspect of your business, from Sales, Finance, HR, Manufacturing, Supply and Service and will chart the course of direction for any growing organization.

Without direct support from the executive leadership the S&OP process will not be successful. It requires full participation at all levels if it is treated as a onetime exercise or people feel they have the option to not contribute or get involved, it will not be successful.

“I recently was reading a Supply Chain Daily.com article that referenced an Article in Metal Miner by Lisa Reisman 1960’s comparison of the steel mill actions of today. (Editor’s Note, here is the link to that post entitled Steel Industry Musings from the 1960 Recession) I loved it! I did a similar comparison although not as in depth as Lisa's, mine was just a 5-year trend. The actions were not much different in what happened in both demand and pricing. In several discussions with my CFO we tossed around the notion of the mills might be playing with collusion during these desperate times. I then came across “The Commodity Bulls are Back in Town—A Return to Commodity Price Inflation an article by Jason Busch from Spend Matters. It even referenced a white paper on the events of possible collusion evidence from the late 19th Century Basque Iron and Steel Industry. I guess you could say the steel industry is both cyclical and predictable by their past actions during economic turmoil.
Over the past 18 months I have introduced my company to historical trend analysis in both our own sales data along with commodities that impact our business. “They’re hooked”! You might think that this would be the norm but this was not the case. Profit and sales backlog dollars were the main focus of any historical tracking. By collecting this data and analyzing the trends we were able to make better decisions and subsequently we were able to decrease cost and inventory which increased cash flow."

“Proper Sales Forecasting & the Importance of it”
Proper forecasting makes a difference in both the bottom line and the top line. The impact will affect profitability, inventory, and supplier/customers relationships. As an owner or sales leader failure to accurately forecast sales on both sides of the spectrum can cause the organization to fail in their preparation of the extended supply chain. Forecasting sales under or over will impact both the top line and bottom line as well as place a strain on suppliers and customer relations.
Forecasting is not a perfect science they need to be accurate enough so the operational team can make the necessary decisions in meeting customer demand while still maintaining profitability.
These are the five areas of focus when preparing to complete a forecast:
1. Historical sales data that show family a product mix
2. Sales force interaction with the customers that feed back to the organization
3. Feed back and review of the regular sales and customer interaction at the Sales & Operations Planning (S&OP) meeting
4. Accountability from the ownership or sales manager down to the sales team
5. Standardized sales process
Historical Sales Data – Monitoring incoming sales order is one of the most important process steps in an accurate forecast. Without historical sales data you are not able to see trends, seasonal spikes and product mix changes. Properly measured past sales data will give you predictability, without it you are flying blind.
Proper forecasting is also impacted by the sales cycle this requires regular communications between the supplier and the customer. Long sales cycle can impact your forecast due to changes that can occur during the time span of the last order. Change is constant and with out regular communication valuable data can be missed that will impact the sales forecast.
Sales force interaction with the customer - Sales people need to build strong relationships with both potential and existing customers. Additionally the sales person needs to understand the customer’s needs and in some cases they need to guide the customer in finding the right service or product that meets their requirements. This will require asking some difficult questions at times but if the sales person has built an honest relationship this will not be as difficult. We need to understand that the sales team has a major role in an accurate forecast by providing information captured on sales calls and in sales meeting with the customer.
S&OP review – Setting up regular meeting to review Sales & Operations Planning meetings is an important factor when monitoring a sales forecast for accuracy. Establishing a sales forecast is not a “set it and forget it” process, it requires monthly review of both the actual sales trend and any unforeseen spikes or drop off’s in sales. At times you will be required to re-forecast based on these trends.
Accountability from the ownership or sales manager down to the sales team – Without accountability no one will own the sales forecast. This requires makes person responsible to make sure the data that is provided is true and accurate with the ability to back up the data with facts. Without the ownership the forecast is most likely not going to provide the proper guidance to prepare for customer demand. This does not mean that the sales manager has to do this alone, an accurate sales forecast requires input from operations as much as the historical data and the feedback from the sales force.
Standardized Sales Process – The entire sales division needs to understand and follow a standard sales process along with understanding the process and purpose of a quote activity report, potential sales prospect, prospect, qualified prospect and closeable prospect these are just a few terms that are required from the sales team. The data from this activity will provide feedback in preparing an accurate forecast. Without this information it would be compared to driving a car forward by looking in the rearview mirror. At some point you’re going to crash.
Sales leaders must make it clear that these requirements are mandatory if you want an accurate sales forecast. Let’s face it an accurate sales forecast will give operations the information they need to meet customer demand and do it profitably. This gives the sales force increased leverage when they are trying to expand market share or keep existing customers satisfied.
Proper forecasting makes the entire supply chain process function smoother which satisfies the customer the suppliers and the individual teams that provide the serve or manufacture products. It is the responsibility of the sales manager to set up a standardized system that present the sales team in the best light giving them a chance to make a good first impression.

“Seek the council and companionship of one whom is wiser than you and pay their expenses along the way”

-An Old Italian Proverb-

In a career than spans 24 years I have worked in many capacities within manufacturing and technical operations. I have experience in both private and publicly held large companies. These areas include Management Analysts, Supply Chain Management & Logistics, Production Planning, Original Equipment Manufacturing, Remanufacturing, Advanced Lean Enterprise and Airline Industry Technical Operations. During this time I was directly responsible in leading diverse union operations from front line to senior operations management. I have been directly involved in the qualification and certification process of ISO9001, ISO140001 and TS16949. My management style is derived from the servant leadership model. My passion is continuous improvement and business process development with people being the core focus.

Joe Perillo’s Specialties:

• Management Analysts
• Lean Enterprise Techniques & Implantation
• Lean Manufacturing Training & Development
• RemanufacturingSupply Chain Management Business Process Improvement
• Change Management
• Strategic Planning
• Value Stream Mapping
• Organizational Leadership Development & Training
• Material Cost Reduction Strategies

Industry Strengths:

• Automotive Parts Remanufacture and ManufacturingIndustrial
• Original Equipment Manufacturing
• Commercial and Military Aviation Technical Operations

« Twenty four years of experience across a myriad of industries in Supply Chain Management, Original Equipment Manufacturing, Remanufacturing, Advanced Lean Manufacturing Specialist and Airline Industry Technical Operations. Fourteen (14) years diverse union operations senior management experience in commercial aviation, automotive, and compaction equipment manufacturing industries

« Master Black Belt in Lean Manufacturing, NIST Certified Lean Enterprise Champion and former DVIRC Consultant with myriad successes in lean enterprise implementations resulting in significant cost savings, production efficiency, increased capacity and green initiative waste reduction.

« Proficient in the comprehensive ISO9001, ISO140001 and TS16949 qualification and certification process. Advanced Product Quality Planning, Failure Mode Effect Analysis, Production Parts Approval Process and Six Sigma (DMAIC) Define, Measure, Analyze, Improve, Control methods

« Accomplished Director of Supply Chain and Logistics, Management Analysts, Strategic Business Planning, International sourcing, achieved $350,000+ cost avoidance savings strategy and led team in the development of a part number modeling system enabling the ability to trend sales history within the first six months being hired

Characteristics of a Great Leader

Visionaries that inspire people to do great things
Patience- “Do what is right and it will happen”
Discipline yourself and your team to stay steadfast and on course in support of the vision and in pursuit of the mission.
Challenging themselves and the team out of their comfort zone to pursue opportunities that will help us grow.
Proper handling of Insecurities- Know what your weaknesses are and surround yourself with a team that makes up for those limitations.
People will Follow leaders because of their good character & influence and not leaders who only have influence because of their title

The 7 Attributes of a Successful Business
1. Leadership—Examines how senior executives guide the organization and how the organization addresses its responsibilities to the public and practices good citizenship.
2. Strategic planning—Examines how the organization sets strategic directions and how it determines key action plans.
3. Customer and market focus—Examines how the organization determines requirements and expectations of customers and markets; builds relationships with customers; and acquires, satisfies, and retains customers.
4. Measurement, analysis, and knowledge management—Examines the management, effective use, analysis, and improvement of data and information to support key organization processes and the organization’s performance management system.
5. Workforce focus—Examines how the organization enables its workforce to develop its full potential and how the workforce is aligned with the organization’s objectives.
6. Process management—Examines aspects of how key production/delivery and support processes are designed, managed, and improved.
7. Results—Examines the organization’s performance and improvement in its key business areas: customer satisfaction, financial and marketplace performance, human resources, supplier and partner performance, operational performance, and governance and social responsibility. The category also examines how the organization performs relative to competitors.