Saturday, September 26, 2009

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.

Saturday, September 19, 2009

"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

Wednesday, September 9, 2009

"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