Sunday, September 10, 2006

One Minute Manager - Ken Blanchard


This topic is not directly related to SCM. It is a people management topic. But since people management is relevant in any industry or profession, I take the liberty to post this topic under this blog.


Key Concepts of One Minute Management

  • People who feel good about themselves produce good results.
  • Help people reach their full potential. Catch them doing something right.
  • The best minute I spend is the one I invest in people.
  • Feedback is the breakfast of champions.
  • Everyone is a potential winner. Some people are disguised as losers.
  • Don't let their appearances fool you.
  • Do one minute goal setting in not more than 250 words on a single sheet of paper.
  • Take a minute, look at your goals, look at your performance. See if your behaviour matches your goals.
  • We are not just our behaviour. We are the person managing our behaviour.
  • Goals begin behaviours. Consequences maintain behaviours.
  • Praise in public when people do the right things and Reprimand in private when people do something wrong. Do both praising and reprimanding immediately and don't wait till the annual appraisals.

Concepts from "The Goal"

Throughput: It is the rate at which the system generates money through sales.

Inventory: It is all the money the system has invested in purchasing things it intends to sell.

Operational Expense: It is all the money the system spends in order to turn inventory into throughput.

Bottleneck: It is any resource whose capacity is equal to or less than the demand placed upon it.

Non-Bottleneck: It is any resource whose capacity is greater than demand placed upon it.

"Balance Flow not Capacity."

Flow through Bottleneck = Market Demand

Bottleneck will determine throughput. E.g. Herbie the fat kid on the hike.

Saturday, September 02, 2006

Concepts Relevant to SCM

Hi Guys,

I have been going through quite a few web sites and reading material on various concepts which are relevant for providing good SCM Consulting. I am listing down some of the concepts as well as good books which explain these concepts. Do add to this list based on your experience.

1) Lean
2) Theory of Constraints (TOC)
3) Six Sigma
4) Business Process Reengineering
5) TQM
6) Kaizen (Continuous Improvement)
7) Kanban (Pull System)
8) Demand Driven Supply Chain (DDSN)

Some relevant books are Lean Thinking by James P Womack, The Goal by Eliyahu Goldratt, Reengineering the Corporation by Hammer and Champy.


Thursday, August 24, 2006

MIT Supply Chain 2020

Have you guys gone through proceedings from this project that MIT and Zaragoza are working on? I have gone through few phases only and their findings are quite interesting and informative. Let me know if we should discuss any topic from this through email group (let’s not use blog for discussions)\


s a l I l

Supply Chain Standards

Anybody on the project where client has used the SCM standards that Prashant mentioned? I will check more on this and it would be quite interesting to know how theory is used in implementing supply chain software or methods.



Monday, August 21, 2006

Definition of SCM

Hi Johan,

I like your definition. It is practical and covers all the processes in SCM. You have covered all the Planning and Execution components. One thing that I would like to add is the Key Performance Indicators (KPI's). I like to call it Supply Chain Analytics.

1) Define Key Performance Indicators for the Supply Chain (Fill Rates, Service Levels, etc)
2) Supply Chain Planning
3) Supply Chain Execution
4) Measure performance as per the KPIs set in step 1.


Sunday, August 20, 2006

Definition of SCM?

There are as many definitions of SCM as there are books about the topic. In our recently finished SCM course at my MBA here in Spain, the Professor chose to use the definition according to the SCOR model which encompasses Source, Make, Deliver Return for 2 levels up and down in the supply chain.

Although this is a good definition, in my view it is too vague. I prefer a more hands-on approach covering which processes are really included. In my opinion, these are:
- Supply Chain Configuration/Design
- Sales and Operations Planning (which includes both Sales/Demand Forecasting and RCCP)
- Master Scheduling
- Production Planning
- Scheduling

What are your opinions?

Friday, August 04, 2006

Memorable Quote by Peter Drucker

Here's a memorable quote by the Father of Modern Management:

"There is nothing quite so useless as doing with great efficiency what should not be done at all."

- Classic Drucker

Neccessary but not sufficient - Goldratt


I had been trying to find this book for quite some time. Was able to get it from a online store last week. I think it is a must read for all IT professionals in general and for ERP and SCM professionals in particular.

If we go by the 80/20 rule, this book tells us exactly what are the things that we should really be focusing on when we create or implement ERP or SCM software. The best thing about Goldratt books is that even though they use fictional scenarious, we can immediately correlate them with our real life experiences, customers and projects.

This is a book that all of us must have in our collection.


Thursday, August 03, 2006

Standards and Models in SCM


Been a long time since did any posting on this blog. Since I joined Patni have been reading about lots of standards and models that are in use in SCM projects.

Here are some standards which I think will last for quite some time, as they have been tried and tested on quite a few big projects:

1) Supply Chain Operations Reference Model (SCOR) - This is a generic model which has been established by the Supply Chain Council (SCC) and is gaining a lot of acceptance.

2) Rosettanet - This is a standard for exchanging data between 2 applications. This standard is primarily for hi tech industry like computers, electornics, telecommunication, etc. Many Fortune 100 companies like Motorola, etc are using this.

3) Voluntary Interindustry Commerce Standard (VICS) for CPFR implementations - This standard is gaining wide acceptance for many CPFR implementations.

Do let me know if you have come across any new ones that are catching on in the market.