Here, I would like to share my view of total supply chain management. It consist of overall supply chain from beginning to the end.
This is a very interesting topic to know about.... It could mainly apply to manufacturing as an overall.
Below is a mind map of the total supply chain management. The resolution might not be that good. If you need a pdf copy or a mind map copy (using simple mind apps format), please email me.
And here are the outline. If you need a well formatted word file or PDF file, please email me.
Total Supply Chain Management
o What is supply chain management
It is a management knowledge
It is a chain, from beginning to the end
It is a full stretch of knowledge from getting the supply to the buyer
o What are the topics in supply chain management
Sourcing
• Supplier & potential supplier
• Supplier selection
• Terms & conditions
o Pricing
o Invoicing
o Payment terms
• Quality requirement
• Types of suppliers
o Direct manufacturer
o Distributorship
o Representatives
o Overall
B2B
Design
• From R&D
• The purpose
• Where use application
Logistics
• Freight management
o Freight in
o Freight out
o Types of freight
Air
Ocean
Road
• Warehousing
o Receiving
o Storage
o Outgoing
o Return of goods
o 3PL
• Customs
• Trade & Compliance
Procurement
• Direct materials & indirect materials
o What is direct materials
o What is indirect materials
• PO placement
• When to buy
• Product quality
• How many to buy
• Types of procurement
o Buy to forecast
o Buy to PO
• Types of materials model
o Consigned
Full or partial
Pros & Cons
o Turnkey
Full or partial
Pros & Cons
o Buy/Sell
o Drop ship
o Customer managed
o High value
o Attrition
Material costing
• Standard pack
• EAU
• Negotiation
• Distribution
• Consolidation pricing for negotiation
o By material itself
o By supplier
o By mother company
o By total spend
• Types of cost optimization
o Annual re-pricing
o Rebate
o Many more creative ways
Materials planning
• What type of attrition
• What is required
o When to bring in
o When to use
ERP
• Will be discussed in another topic
Production Planning
• Function
o Build the product in the shortest time possible
o Optimize capacity & ship out once completed building
o When to build
o When to ship
o Minimize waste
o Counter check ineffeciency
• Resolve capacity constraints
• Types of build
o Build to forecast
o Build to PO
• Forecast
Inventory management
• Keep the lowest possible inventory
o Pros & cons
• Ties up cash
• Expiry date
• A balanced model?
• Inventory tracking & reporting
Reverse Logistics
• What is this?
o Return & Repair
o Upgrades
o Rework
o Refurbishment
o Warehousing & safekeeping
• Value added services
• Usually, the cost is high
o Why is total supply chain management so important?
It is a chain
• All are inter-related
Impact as an overall
To discuss more
o Areas not covered here
Quality
• Quality management system
o Quality standards
ISO
Aerospace
FDA
Medical
Military
Telco
• Incoming Quality
Engineering
• R&D
• Process
• Manufacturing
• Supplier quality
• Facility
• Test
• Industrial engineering
Production
Supplier quality management
Finance
• Account Payable
• Account Receiveable
• Bad debts
• Returns
• Rebates
Customer management
Customer quotation
Customer contract
IT
HR
Customs
Trade & compliance
This is an example of how a quotation process is for contract manufacturing environment.
There are multiple systems used in the market for contract manufacturers. Some of them are using off the shelf product to carry out a quote. While others may have developed internal system to manage this process. Of course there are pros & cons for these 2 options. Can you list a few?
The below picture suggest the first part of the quotation process flow. The second part of the quotation process is actually listed in my earlier blog, named "new business buy off".
There might be technical terms used. Please email me if you have any questions. This could be a basic start for you to learn how to know the whole quotation process works in an EMS industry.
Just one additional note, this process can also be used for any major ECO (engineering change order) re-quote.
Hope this helps you understand a little bit more on the quotation process in an EMS industry. As usual, I appreciate your feedback & comments. If you need a PDF copy, please email me.
Thanks.
Best regards,
Ronald Gan
Throughout my working life in an EMS industry, I have seen a few well managed warehouse. However, I have also seen such many poorly managed warehouses.
I have taken the opportunity to look into one of the warehouses and would like to share them with you.
Below is just a quick overview:
• Warehouse Readiness
o Receiving
Resource
• Receiving
o Critical
o Main purpose
Receive goods in less than 30 minutes per truck
• How to shorten?
Cleaer trucks
o Expedited materials
Special process to handle this
o IDM
o MRO parts
o Process flow
• Expedite team
o Who?
o Process flow?
• Sorting process
o Abnormality
How to handle?
• Use "Banking" concept
o Normal process
Provide training & guide
• How to allocate
• What do you have now?
o Can you hire temp staffs?
o Fork Lift
Driver/operator
Battery
Process flow
• Normal
• Expedited
• Must provide proper guide & process flow
o People know what to do
o IQA
Resource
• Do we have enough people?
Process flow
• Normal
• Expedite
• People know what to do
If IQA lack, it will snowball
Process flow
• Normal
• Expedited
o Store
How to store?
• Can the current resource complete the work?
o If no, please establish new process flow
• Place to store
o WMS
• Process flow
o Kitting
Major challenge
Resource
• 2 shifts
o Morning shift
Clear all expedited kitting
o Night shift
Clear normal kitting
• Get enough people
Process flow & expectation
• Finish the activities the same day
o No overflow
o The goal?
Warehouse operates normally
Full support of production
• Normal demand
• Expedited process
o MUST Adhere to
5S
QBwM
Zero defect
No excuse
Ask yourself this question
• Can or cannot do?
• Want or don't want to
I hope you enjoy the above article.
I appreciate your feedback and comments.
If you would like to know more, please let me know.
Best regards,
Ronald Gan
This is the training that I have provided previously on account management in an EMS industry.
Just to share what are the topics involved in account management.
Below is the list of items as above, in text form:
Account Management Overview & Training
o Company internal Definition
Find from Intranet
o Roles & Responsibilities
o Organization
Customer
Hierarchy
o Trainings proposed
Usual HR Training
Mandatory Training Required by COO
• Cornerstone
o Search "Training Market Sector"
RFQ Explanation
• How to use the system?
• How to smartly quote
• What is this for?
• Items to take note
Software & Tools
• IBM
o Planning Analytics
o TM1
• Power BI
• Microsoft Dynamics 365
o Use of CRM
Customer Contacts
Customer Organization
Set opportunities for RFQ
Trigger NPS
• VPN
• Web based
• Citrix
• Microsoft Office Tools
Company Intranet navigation
NPS
o Topics to discuss
Miller Heimann
• Green sheet
• Blue Sheet
CRM
CVN
Customer Review
• What is this?
• Format
o In Share point
• Purpose
• Attendees
o Who needs to attend?
o Who may attend?
• What do you need to do?
o Prepare
o Peer review
o Review with Senior Director
o Review with VP & MSVP
o Anticipate questions
o Access to Power BI
o Access to IBM Planning Analytics (Web1)
o Know how to navigate
P&L
• Details
• How to obtain the file
Quotation
• Process Flow
• Ownership
o New
o Existing
• OIL
• Format
o Customer
o Internal
Finance
• TM1
o What is this for?
• Planning Analytics
o What is this for?
Pricing File
Contract
Financial Forecast
• Site level
• Market sector level
Inventory E&O
Branding & Marketing
• Self read
• Company presentations
o Self learnt
o Expectations
Make mistakes & learn from that
• Avoid repeating the mistakes
Pay attention to details
Stand back & think
Methodology
• Self learning
o Self explore
Purpose
• Multiple ways
• Think out of the box
• Challenge the status quo
• Questions & Answers after reading the materials
• Daily 1 hours of calibration session
o 10 am
o 3.30 pm
• Practie yourself
o Be hands on
o Don't worry to make mistakes
o Purpose
Learning curve
Overview
Share what is the R&R
Knows what is CM
• And know when to push back
• Ownership
• Responsibility
Gather previous CMs' experience
Know what is important to CM team
o Characteristics
Open
Resourceful
Always ready
Independent
Leader
• Make hard decisions
Strategic
People manager
When in trouble
• Always come with proposals/solutions
Salesman
• Buyoff & agreement
Pay attention to details
Think & strategize
7 habits
Story teller
It has been a long time since I have written about this topic. I would like to share more on this topic with more details. I noticed that my previous article does not have lots of details.
As mentioned previously, 4M is:
I have the opportunity to make a good info gathering of an EMS company, before getting into the SWOT analysis. The above graphic is how I draft my work using a mind mapping tool called Simple Mind.
Generally, information gathering is more difficult to do, when compare to SWOT analysis. You will need to have full information before a proper SWOT analysis could be done, as well as preparing for a way to counter the SWOT.
Hopefully you will enjoy.
Company XXX SWOT - Info gathering
Topics
BD
Program management
• Extremely weak
• No proper training
o Hit the ground running
• Very junior
• Does not really serve the full purpose of this team
Strategy
• Nvr change
• Arrogant
• Want to grow to usd X B
o Did not know what to give & take
Quotation
• Know how
o Not many really understand the details
o Not many encouraged to explore variations
o Not many knows really how the format works
• Succession plan
o Slow
o Not ready
• Highly secretive
o Too many fat hidden in the costing file
• Only good for PCBA
o HLA, system build & System integration is not well costed
o Distribution & Direct Fulfillment is not well costed
o Reverse Logistics is over priced
• Excel file
o Macro written by one person
o No back up plan
• CBOM weaknesses
• Overall process weaknesses
Finance
Senior management
• Poor succession plan
• Very biase
• Perception
• All of them have their own agenda
Engineering in manufacturing
• 90% of them are weak in these areas
o Experience
o Exposure
o Skills
o Knowledge
o Language
Spoken
Written
o Problem solving skills
o Integrity
Problem solving
• Weak like hell
o At working level
o At senior level
o Just want to get over it
• No standard way
Quality
• Very poor
o Don't know how to manage the situation
Fail to solve a complex problem systematically
• Bad mentality
• Significant escapees
o R&D
o Manufacturing
• Majority of the team is weak
• There is no proper & systematic problem solving tools being used
• Most of the times, failed to even identify the "Problem Statement"
o Jump directly to root cause
Overall Integrity
• Very lack of integrity
• No professionalisme
• All based on personal perception
• Top management can do what they like
o Will get their "watch dogs" to run the dirty work for them
Spread news
Influence
De-fame
Gather information
Benefits
• Only good for senior management - Director & above level
o Always there will be food & drinking sessions at top level
Using company's money for "personal agenda"?
• Lousy medical coverage
Customers visits
• Very good
• Systematic
• Senior management's involvement
• Flexible
• Utilize MH Green Sheet
• Excellent salesmanship
CRM tools
• Ms Dynamics 365
• IBM cognos
• IBM TM1
• Miller Heiman
o Blue sheet
o Green sheet
o Used at all level
Standard language
• Power BI
• Annual customer survey
o Customer is getting annoyed by this survey
o No proper actions taken
No change
• Customer review
• Great tools, BUT
o Not many people knows how to really use it
For the real purpose of self improvement
Engineering R&D - focus in APAC
• Poor succession plan
• Not qualified as senior management
o Poor in managing customers
o Unable to manage situation
• Charges are extremely high
• Lack of business people that is able to quote based on what the customer wants
• Very inexperience
o Too young
• Always over charge
• Don't know how to be flexible
• Refuse to accept the fact that they are weak
o Still thinks they are the best
• Arrogant
Succession plan - weak
• Functional / Department head
• GM
• Senior level
o Questionable
• Operations Directors that are capable
• Not based on how good a person is
o Based on how much top management likes the person
Secret projects
• Way too many
• Too secretive
Internal politics
• Among regions
o Massive
• Personal gains & agenda
• At top level
• Very unhealthy
• Worst I have ever seen
• Always in a blame game
Supply Chain
• It is a big political mess in this group
• Very weak
o The team thinks they are very good
That is because they were never exposed to real good SCM team
• Leadership sucks in APAC
• There is no proper plan & long term goals
o Don't have the know how
• Sub teams
o Costing
o Sourcing
o Procurement
o MRO
o Logistics
o Warehousing
o Materials system
• ERP system used is really outdated
Travels
• Senior level travel in business class
• Hit the ground & start to work
o No time for rest
Pay & package
• Lower than industrial standards
• Lower than competitor
• Extremely lousy package in APAC region
• Package is very good only for Director & above level
Work hours
• No flexibility in APAC region
• Very calculative
