Delivering life-saving goods to people

in need
APICS MAGAZINE

Total quality management and supply

chain strategy
Taking a progressive approach to operations
3D printing finds new purpose and potential
OPTIMIZED PRODUCTION SCHEDULING/TOTAL QUALITY MANAGEMENT

F E W E R L I N E S, M O R E

PRODUCTION SMART SCHEDULING

MAKES IT POSSIBLE
September/October 2017 | Vol 27, Num 5
SEPTEMBER/OCTOBER 2017
 Join APICS in vibrant San Antonio for
the premier supply chain conference!

Featuring 65+ education sessions, youll have

the opportunity to explore forward-thinking
topics covering end-to-end supply chain,
logistics and operations management.

Learn more and register at apics.org/2017

#APICS2017

Sponsored by
FEATURES September/October, Volume 27, Number 5

26
From Soap to Hope: Simple Solutions
to Complex Problems
APICS Interview
Read about how the Global Soap Project is changing the world.

32
Demolish Silos in Total Quality
Management
By Victor E. Sower, PhD, CQE; Kenneth W. Green Jr., DBA; and
Pamela J. Zelbst, PhD, PMP
Enhance competitiveness and improve customer satisfaction with
these tips.

36
COVER STORY
Reinventing the Production
Scheduling Wheel
By Peter L. King, CSCP; Alan H. Nal; and Jaci Souza
Gain an inside view of how one company saved labor costs and
optimized processes.

42
Evolved Operations Enable
Progressive Supply Chain
Management
By Michael D. Ford, CFPIM, CSCP, CQA, CRE, CQE, CPSM
Break away from traditional supply chain approaches.

48
Where 3D Printing and Mainstream
Manufacturing Converge
APICS Interview
How is 3D printing shaping todays global marketplace?

APICS magazine (ISSN 1056-0017) is published bimonthly by APICS, 8430 West Bryn Mawr Ave., Suite 1000,
Chicago, IL 60631-3439. Phone: 773-867-1777. Canada Post International Publications Mail (Canadian Distribution)
Sales Agreement No. 571423. Periodicals postage paid at Chicago, IL, and additional mailing offices. Subscriptions:
$20 per year for U.S. members, $40 per year for international members, $93 nonmembers. Copyright 2017 by
APICS. All rights reserved. Printed in the United States of America. POSTMASTER: Send address changes to:
APICS, 8430 West Bryn Mawr Ave., Suite 1000, Chicago, IL 60631-3439.

2 September/October 2017
 DEPARTMENTS

4 Editorial Staff and Board of Directors

6 From the CEO

7 From the Editor

8 APICS Update
Page 15
9 Supply Chain Matters
With any planning and
replenishment strategy, 10 Corporate Spotlight
there are complex risks
and issues to manage. 12 Industry Tools
Page 21
14 Career Launch

15 Sales and Operations Planning

16 Executive View

17 Customer Experience

18 Enterprise Insights
Page 18
19 Working Green

20 Professional Development

21 Lean Culture

22 Management Perspective

23 Relevant Research

54 Case Study

56 Lessons Learned

apics.org/magazine 3
EDITORIAL STAFF AND BOARD OF DIRECTORS

EDITORIAL APICS BOARD OF DIRECTORS

Editor-in-Chief Chair of the Board
Jennifer Proctor Steve Georgevitch
Senior Managing Editor Chair-Elect
Elizabeth Rennie William Householder
Associate Editor Treasurer-Secretary
Jennifer Storelli Keith Connolly
Marketing Manager, Digital Content Directors
Jamie Luedtke Antonio Galvao Costa, CSCP
Mark Holmes, CTL
Paul Pittman, PhD, CSCP, CFPIM
DESIGN
Clark Ponthier, CPIM
Bates Creative Shari Ruelas, CPIM, CSCP
Marco Ugarte, Ph.D., CPIM, CSCP, CQIA
Michael Wasson, CSCP
ADVERTISING George Yarusavage, CPIM, CTL
Tom Lasch Ginny Youngblood, PhD, CSCP, CPIM, SCOR-P
tlasch@larichadv.com
440-247-1060
APICS CORPORATE
Chief Executive Officer
EDITORIAL ADVISORY BOARD Abe Eshkenazi, CSCP, CPA, CAE
Richard E. Crandall, PhD, CFPIM, CIRM, CSCP
Magazine Contact
Appalachian State University
editorial@apics.org
Philip E. Quigley, CFPIM, PMP apics.org/magazine
Chapman University
California State University at Fullerton
APICS
Randall Schaefer, CPIM
Randall Schaefer Consulting 8430 W. Bryn Mawr Ave.
Suite 1000
Chicago, IL 60631-3439
Publication in APICS magazine does not constitute an endorsement of Phone: 800-444-2742 or 773-867-1777
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advertisement represent an endorsement by APICS or the magazine. editorial@apics.org
All articles represent the viewpoints of the authors and are not apics.org
necessarily those of the magazine or the publisher. Letters to the
editor will be published at the discretion of the editor.

Canada Post International Publications Mail Product (Canadian

Distribution) Sales Agreement No. 1220055

Subscriptions: Digital copies of APICS magazine are circulated to all

members of APICS as part of their membership fee. U.S. members
can purchase a one-year print subscription for $20, and international
members can purchase a one-year print subscription for $40. For all
others, the subscription rate is $93 annually. To subscribe, call APICS
customer service at 800-444-2742 or +1-773-867-1777.

Single copies may be ordered for $8 each when shipped within the
United States or $12 each when shipped internationally. Please contact
APICS Customer Service for more information.

Printed in the United States of America

4 September/October 2017
DRIVING
VISIBILITY IN
A WORLD OF
COMPLEXITY

An optimized
supply chain
doesnt just
happen.

It is planned.

Worldwide Headquarters: 800.762.5207

EMEA Headquarters: +44 (0) 121 629 7866 www.logility.com
FROM THE CEO
APICS Celebrates
60 Years
B
ack in 1957, a group of 20 production control managers in
the U.S. Midwest gathered to form the American Production
and Inventory Control Society. This is the humble begin-
ning of the global supply chain management association you know
today as APICS.
Through the hard work of these dedicated individuals, the
organization established an administrative office within two years
and expanded internationally into Canada within four years. In
a decade, the group had expanded its reach into more countries;
established a headquarters in Washington, D.C.; and started pub-
lishing the APICS Dictionary. Some of you might even remember
some of these achievements.
As you know, the story doesnt stop there. The following years
brought with them the release of the APICS Certified in Production
and Inventory Management (CPIM) and APICS Certified Supply
Chain Professional designations, the launch of APICS magazine and
the associations first website, the organization of student chapters,
and a move to our current headquarters in Chicago.
As APICS has hit each of these milestones, it has never stopped
evolving. We continue to bring our members new offerings that
meet their professional needs. Just last year, APICS launched the
Certified in Logistics, Transportation and Distribution designa-
tion to help our members expand their knowledge and demonstrate
mastery in these areas. And you can bet that APICS wont stop
evolving in the years to come. Were currently in the process
of launching the revised APICS CPIM program and updating
the Supply Chain Operations Reference model to incorporate
emerging drivers of supply chain success, including big data,
omnichannel and automation.
Of course, none of this would be possible without the partici-
pation and support of you, our members. You all have been a part
6 September/October 2017
of advancing supply chain, logistics and
operations management and have helped
us make great strides to stay on the cutting
edge of our profession. On behalf of APICS,
I wholeheartedly thank you for your contin-
ued support and look forward to celebrating
many more milestones with you.
Commemorate and collaborate
at APICS 2017
Well be kicking off a year-long celebration
of our diamond anniversary at APICS 2017,
which will take place October 15-17 in San
Antonio. Members can visit a video booth
to talk about some of their favorite APICS
memories. Individuals who are unable to
attend the conference can share their memo-
ries through our 60th anniversary Facebook
page. Well also be starting a 12-month
giving program, beginning with our new
charitable partnership with Blessings in a
Backpack. (See APICS Update on page 8
for more information.)
In addition, conference attendees will
learn from some inspiring leaders. John
Mackey, cofounder and CEO of Whole
Foods Market, will talk about conscious
leadership and share insights about how
leaders can engage their employees. Derreck
Kayongo, CEO of the National Center for
Civil and Human Rights and founder of
the Global Soap Project, will share his story
about how a seemingly small idea and a
passion for helping others can improve the
lives of millions of people around the world.
(Read Senior Managing Editor Elizabeth
Rennies interview with Kayongo, From
Soap to Hope: Simple Solutions to Complex
Problems, on page 26 to learn more.)
Well also continue the recognition
throughout the year, building up to our
APICS 2018 homecoming conference in
Chicago. Heres to a year of looking back
and many more years of looking forward to
the evolution of supply chain management.
Abe Eshkenazi, CSCP, CPA, CAE
Chief Executive Officer

Chop Away at Your
Daily Routine
M
aking your mark professionally is a significant under-
taking. It demands long workdays; a clear focus on both
business and personal objectives; cultivating relation-
ships, often with colleagues on the other side of the world; and
much more.
In my 13 years at APICS, I have talked to many supply chain
professionals striving to move closer toward their ambitions
while preserving a work-life balance. For anyone, it can be tough
to gather the energy necessary to keep up with the latest knowl-
edge, form new partnerships and make meaningful contributions
to the field.
Reading APICS magazine is a great place to start. This award-
winning member benefit delivers essential supply chain management
research, insights, case studies and concepts to keep you in tune
with current trends and innovations. Take, for example, this issues
Relevant Research, by Dick Crandall, PhD, CFPIM, CIRM, CSCP.
He provides an in-depth analysis (page 23) of how Industry 4.0 is
transforming the marketplace by connecting the internet of things
with manufacturing techniques.
And for an interesting take on production and inventory
management, check out our cover story, Reinventing the Production
Scheduling Wheel, beginning on page 36. The authors use a real-
world implementation to demonstrate how this tool can simplify
changeovers, optimize frequencies, and enhance overall equipment
effectiveness and throughput capacity.
As you read these and other articles in this issue, I know you
will find something that motivates you to step away from your
desk for a few minutes and share your discovery with a coworker.
This type of face-to-face exchange is a valuable learning opportu-
nity for your colleague and a proven method for reinforcing your
newfound knowledge, as you become a teacher to others.
FROM THE EDITOR
Now, take a moment to imagine how
that dual-benefit grows exponentially when
you connect with 2,000 fellow supply chain
management professionals from 50 different
countries at an event like APICS 2017. In
our hectic digital world with podcasts,
videos, webinars and blogs right at our
fingertips its easy to forget the power
of immersing ourselves in live action.
As Stephen Covey writes in The Seven
Habits of Highly Effective People, you
have to sharpen your saw once in a while.
This means honing and enriching the most
important asset you possess you. Covey
uses the historic analogy of a woodcutter
who becomes less and less productive as his
blade dulls with continual use. The solu-
tion, of course, is to stop and sharpen it.
Likewise, breaking away from the everyday
to enhance your skills is an essential invest-
ment in your career and organization.
APICS 2017 offers unparalleled edu-
cation, strategies and thought leadership
through more than 60 educational ses-
sions. In addition, keynote speakers John
Mackey, cofounder and CEO of Whole
Foods Market, and inspiring entrepre-
neur Derreck Kayongo whose APICS
magazine interview starts on page 26
will illustrate the countless ways that supply
chain managers are advancing economies
and improving peoples lives. And as always,
there will be many entertaining networking
activities and an expo hall full of the latest
saw sharpeners to explore.
Dont miss this unique opportunity to
gain some truly pioneering perspectives
and techniques. Its an incredible way to
stay razor-sharp.
Elizabeth Rennie
Senior Managing Editor
apics.org/magazine 7
APICS UPDATE
APICS Future of Supply
Chains Research Grant
Recipients Announced
T
he APICS Future of Supply Chains Research Grants exam-
ine the influence of emerging trends on supply chains
and value networks. Applications were reviewed by the
Research Subcommittee of the APICS Research, Innovation &
Strategy Committee (RISC), and funding was awarded to four
projects. The criteria for evaluating proposals included relevance
to the program theme, rigor of methods and analysis, meaning-
ful advancement of the supply chain body of knowledge, and the
potential to contribute to related disciplines.
Grant awardees include the following:
Leveraging Big Data to Enhance Firm Manufacturing and
Sustainability Performance. Principle researcher: Amrou
Awaysheh. Goal: to understand the relationship between sus-
tainability and manufacturing performance.
Blockchain Technologys Contributions to Supply Chain
Business and Sustainability Value. Principle researchers: Sara
Saberi and Joseph Sarkis. Goal: to investigate sustainable supply
chain networks integrated with blockchain technology, incorpo-
rating social and environmental issues.
The Intelligent Supply Chain: Developing a Maturity Model
for Digitization and Visibility. Principle researchers: Nada
Sanders and Morgan Swink. Goal: to explain what it means to be
a digital supply chain within the context of a firms supply chain
business model.
Supply Chain Analytics and the Evolving Work of Supply
Chain Managers. Principle researchers: Enno Siemsen and John
Aloysius. Goal: to understand the synthesis of automated system
recommendations with independent managerial judgment.
Visit the Thinking Supply Chain blog at apics.org/blog for news
about this exciting research.
APICS Dictionary App Gets New Name and Updates
The APICS Learn It app now is the APICS Dictionary app,
featuring flashcard database updates as well as corrections of
minor inconsistencies with, and enhanced alignment to, APICS
certification exams. Content for the new two-module Certified in
Production and Inventory Management (CPIM) exam also has
been added. While APICS transitions its CPIM program from
the legacy five-module system to the new two-module system,
flashcards for both will be available. Individuals preparing for
the new exams should select flashcard categories CPIM: Part 1
and CPIM: Part 2. The legacy CPIM categories will be available
through 2018.
Download the updated APICS Dictionary app for free through
the App Store or Google Play.
8 September/October 2017
APICS Celebrates 60 years
During APICS 2017 in San Antonio,
APICS will kick off a yearlong celebration
of its 60th anniversary. The festivities will
culminate at APICS 2018 in Chicago a
homecoming for the Chicago-based organ-
ization. The celebration will highlight the
Memorabilia such as this brochure from the
1965 establishment of the APICS Educational
and Research Foundation will be shared
alongside member submissions to the 60th
anniversary website.
evolution of supply chain organizations,
the revolution of the profession and the
transformation of global networks.
At APICS 2017, members will have the
opportunity to share their favorite APICS
memories in a video-recording booth or test
their knowledge of APICS and supply chain
trivia. The conference also will host the first
event of APICSs 12 months of giving back.
Attendees can volunteer to help assemble
backpacks filled with nutritious food for
donation to children in need in San Antonio
in partnership with Blessings in a Backpack.
Members also are invited to participate on
the APICS 60th anniversary Facebook page.
Nominate supply chain innovators for rec-
ognition, share stories and photos of APICS
experiences, and follow content specially
curated for the event. A commemorative
book featuring member contributions will
be published following APICS 2018.
To learn more about the APICS
60th anniversary celebrations, visit
apics.org/anniversary.
Jennifer Storelli SUPPLY CHAIN MATTERS

Distributing Goods and A Day with Curt Reynolds, CTL

Supply Chain Advice 7:30 a.m.
After arriving at work, I greet my
team members, grab a cup of
water, review my daily agenda, and
Q: What led you to a career in supply chain? prioritize my tasks and projects for
the day and week.
I started at Iowa State University (ISU) as an architecture major.
During my freshman year, I realized that I didnt have the passion or
8 a.m.
patience for the freehand drawing involved in the architecture field, Curt Reynolds, CTL
I head to my supply chain and
Director of Logistics
so I went to ISUs College of Business and took several business distribution team meeting to Johnsonville Sausage
review progress on our continuous
courses. I found a transportation and logistics course particularly
improvement projects and savings
interesting. After talking with my instructor, who later became my goals compared with the previous
advisor, I declared the subject as my major. months and year-to-date results.

Q: What are your primary responsibilities at your current job, 9 a.m.

I plan for the logistics team
and how do they enable you to make a difference? meeting with my direct reports
I am responsible for domestic and international transportation, which we at Johnsonville call
third-party-logistics warehouse management, deployment planning members to review our key
priorities for the week.
and coaching the logistics team. My team and I developed a logistics
strategy for Johnsonville that will help drive profitable growth and 9:30 a.m.
provide a point of differentiation for our customers. I join the logistics project team
meeting to review the progress
made toward achieving our cost-
Q: What is the greatest career challenge youve encountered so far? savings goals and discuss any
I worked in the oilseed processing business, and we had to ship challenges that we need to address.
vegetable oil products in our private tank cars from North Dakota
to our customer in the eastern United States. We experienced 10:30 a.m.
inconsistent transit times with the two Class I railroads, which One of my members and I meet
one-on-one to discuss important
resulted in poor delivery service and demurrage costs and adversely topics and development plans.
affected our tank car fleet utilization results and costs. To resolve this
issue, we developed and implemented a just-in-time rail shipment 1 p.m.
program. We executed a request for proposal with three Class I At a new-product-testing meeting,
I help the team review our
railroads from the Chicago gateway to our customers plant and distribution plan and costs.
negotiated rates tied to transit time performance on that rail
lane. After we chose our partners, we formed a quality improvement 2 p.m.
team [that] analyzed train schedules and transit times and hired a I meet with the purchasing and
transportation teams to determine
third-party-logistics rail service management company to proactively
if there are additional opportunities
track tank car shipments to minimize delays and analyze transit and for our company to control
tank car cycle times. In addition, we developed an incentive plan for and reduce inbound less-than-
truckload freight spend on direct
our customer to unload our tank cars within three days. The results
materials from our suppliers.
of this collaborative program saved our customer $75,000 annually.
3:30 p.m.
Q: How are you using your supply chain superpowers to give back? In preparation for my monthly
I have a lot of passion for coaching and developing others to help supply chain leaders meeting, I
review performance metrics for
them reach their full potentials. I work with my team members to gaps and determine root causes
provide specific development opportunities to learn and grow both and corrective actions to drive Jennifer Storelli is
improvement efforts. associate editor for
personally and professionally. APICS magazine. She
may be contacted at
5 p.m. editorial@apics.org.
Q: What advice do you have for supply chain management Before we wrap up for the day, I talk
professionals? briefly with our companys supply
Have a passion for what you do, and look for opportunities to gain chain project manager about the We encourage you
data we need for another project. to share your career
new experiences that will challenge you to learn and help you grow stories. Visit apics.org/
both personally and professionally. supplychainmatters.

apics.org/magazine 9
CORPORATE SPOTLIGHT
Cultivating Supply
Chain Excellence with
APICS Education
S
yngenta is an agriculture company that aims to heighten
global food security by helping farmers make better use of
resources. Through innovative crop solutions, Syngentas
28,000 employees in more than 90 countries work to transform how
food is grown, rescue land from degradation, enhance biodiversity
and revitalize rural communities.
Recently, Syngenta Latin America supply chain leaders per-
formed a series of assessments with the goal of taking their supply
chain to the next level. Team members wanted to bring indus-
try-recognized supply chain knowledge to their organization to
motivate team members, ensure everyone was speaking a common
language, and help enhance internal supply chain processes and
connections within different functional areas. In addition, they
identified an urgent need to optimize responsiveness to demand
and resource allocation.
Syngenta decision makers selected APICS Certified in Production
and Inventory Management (CPIM) education to help them address
these needs. The solution includes broad-scope supply chain training
via self-study, internal learning groups and APICS partner support.
All of these options are made available to employees regardless of
organization hierarchy, and all expenses are covered by Syngenta.
Each module of the CPIM education is a three-month experi-
ence based on the following pillars. First, executives expect about
70 percent of the total knowledge to be acquired through self-study
in order to demonstrate the participants personal dedication. It
requires a lot of discipline and commitment to take the time to do
the reading, solve the text problems and get additional material to
test if the information is understood, explains Casimiro Batista,
a demand planner.
Luciana Bevilaqua, senior project manager, adds: I believe that
all knowledge especially through self-study helps with making
the best decisions, raising the performance of end-to-end analysis
and critical thinking. APICS has helped me better understand
supply chain trade-offs and how supply chain correlations work.
Internal learning groups compose another 20 percent of the
APICS education. In numerous different locations, teams of
employees from various business functions meet biweekly during
work hours to discuss the CPIM material, meanwhile breaking
down organizational silos. Ingrid Cohen, a planning and fore-
casting coordinator, notes that APICS certification is valuable
even for those not in the supply chain organization. It is a pro-
gram that provides a very interesting perspective about what must
happen in terms of supply chain to guarantee demand fulfillment,
she says. The more we understand, the better options we find to
do the job.
10 September/October 2017
Through three-hour APICS partner
classes, teachers share concepts, practical
case studies and personal experiences. Both
online courses and face-to-face programs
in So Paulo and Buenos Aires, Brazil
are available. All partner classes take place
during work hours.
The class tools also facilitate learning.
The workbooks are easy to read, the exam-
ples are clear, and the sequence of how each
lesson is developed contributes to my under-
standing of the topic, says Jose Aguilar, an
Having a training
program based on
APICS education
is transforming our
processes and
peoples capabilities.
inventory coordinator. APICS has had a
very positive impact on my personal life and
has made me more curious about how to
apply this new knowledge to my professional
role. Im eager to keep on going!
In addition, students use an online
knowledge-sharing platform designed by
Syngenta called Learning and Exchange
Accelerating Progress (LEAP). Participants
post questions, and anyone in the commu-
nity can share advice. LEAP also is used for
uploading relevant reading materials.
The remaining 10 percent of knowledge
is gained through mentoring. The Syngenta
mentorship program is coordinated by a
member of the Latin American supply chain
team who has earned the CPIM designation.
Employees agree that the initiative has
improved company operations. Having a
training program based on APICS education
is transforming our processes and peoples
capabilities, says Reynaldo Cabezas, strategy
and design project manager. He adds that he
and his colleagues are better able to harmo-
nize concepts in the organization and now
are speaking a single, common language.
Proven personal growth
The supply chain training program began
in August 2015 with 52 candidates. Then,

Members of Syngentas Latin American supply chain organization
participate in APICS CPIM internal learning groups.
a second wave was launched in March 2016 with 56 candidates.
Participants have included Syngenta employees in Argentina,
Brazil, Chile, Colombia, Panama, Mexico and Uruguay who
represent the finance, forecasting, international trade, planning,
Elizabeth Rennie
procurement, production, scheduling and
supply chain functions.
The results are notable, with 90 per-
cent of participants passing the CPIM
exams. In addition, the program has
proven to be an excellent engagement
tool that has become part of the company
culture. Diego Ocampo, a logistics leader
in Colombia, says, The APICS course is a
great learning opportunity [that] allowed
me to internalize company knowledge and
processes [and] provided me with a wider
vision from the logistics perspective about
the impact that we have on the business.
Many employees who are not yet
involved are asking to enroll because they
see APICS education as a clear way to
advance in their careers. Indeed, exec-
utives have noticed heightened morale
and greater levels of commitment among
the participants, with many employees
sharing very positive feedback about
the program. My personal experience
with APICS was amazing, says Maria
Elizabeth Rennie is
Fernanda Lollato, a key performance senior managing editor
indicator analyst. It has given me a great for APICS magazine. She
opportunity to understand important may be contacted at
editorial@apics.org.
connections and specific points within the
supply chain, its a great source of ideas
To comment on this
to my day-to-day work, and its a really article, send a message
important milestone to my career. to feedback@apics.org.
apics.org/magazine 11
INDUSTRY TOOLS
Distribution
SSI SCHAEFER introduced the SSI Carrier,
a compact, overhead conveying system
designed to meet the demands of e-commerce
distribution and returned goods. The system
contains a universal carrier, circulating
conveyor, accumulation conveyor and
switches alongside workstations for loading
and unloading carrier units. An overhead
[1] carrier transports hanging goods, pockets
or pouches on rollers at rates as fast as
10,000 carriers per hour, with radio fre-
quency identification tag on each carrier.
The tool distributes flow evenly, eliminates
declines and uses 10 percent less space for
multiple levels of inventory processing. [1]
Enterprise management
1EDISource launched PartnerXchange
(PX), a web-based solution for electronic
data interchange (EDI) business trans-
actions. The solution uses EDI workflow
intelligence technology to examine data for
pending workflow needs and exchanges,
alert users when documents need to be
[2] sent to trading partners, and prevent the
bypassing of necessary steps in order to
achieve compliance with trading partners.
A web-accessible, customizable inter-
face includes a summary dashboard with
key transaction status widgets, access to
program tools, data downloads, configu-
ration alerts and other settings. Common
and major EDI transaction sets and types
are exchanged and translated for improved
operational efficiency, accuracy, trading
partner management and data accessibility.
Lighting
Rockwell Automation introduced the
[3] Allen-Bradley GuardShield L-B 450 Safety
Light Curtain system. The flexible trans-
ceiver design employs plug-in modules that
establish a units function as a customizable
transmitter or receiver. Five-pin plug ins are
used for basic on-off functionality, or eight-
pin plug ins can be used for manual and
automatic restarts. Advanced function set-
tings can be configured through dual in-line
package switches on the plug-in module. An
active protective field senses the length of the
transceiver, reducing inactive sensing areas
[4] and making the module ideal for hand and
12 September/October 2017
finger detection. Its compact design, flexible
mounting kits and built-in alignment enable
quick and easy installation. [2]
Shop floor
CIMCOOL, a Milacron brand, released
a series of MILPRO Process oils formulated
for slide-way, hydraulic and gear oil appli-
cations. The clear-colored lubricating oils
reduce friction on machine tool slide-ways,
provide uniform oil film for smooth table
motion and reduce metal-to-metal wear for
trouble-free lubrication. The hydraulic oils
transmit power, provide lubrication and pro-
tect gear systems, and the gear oils are used
for differential gears and standard transmis-
sion applications for lubrication and cooling
while offering extreme temperature and pres-
sure protection to prevent wear, pitting and
damage. All fluids have tested successfully for
metalworking fluid compatibility. [3]
HARTING North America, part of
HARTING Technology Group, released
its Han Pneumatic Module Metal contacts,
which can be plugged and unplugged
through 10,000 mating cycles. The pneu-
matic module withstands pressures from
the entire low pressure range up to 10 bars
and is available in variants with two or three
plug slots. The Han Pneumatic Module
Metal solution is equipped with metal con-
tacts instead of plastic ones and can be used
with various HARTING connector series for
streamlined flexible production processes,
high mating cycles, and increased cost- and
space-saving opportunities. [4]
Klein Tools introduced its Heavy-Duty
Wire Stripper. Designed specifically for
stripping, cutting and twisting 10-18
American Wire Gauge (AWG) solid and
12-20 AWG stranded wires, the tool
features precision-ground stripping holes,
induction-hardened cutting knives for
longer life and a thick knurled jaw for
twisting as many as three wires at once.
Forged from U.S.-made proprietary steel for
strength and durability, the tool is four times
stronger than existing Klein wire strip-
pers. Additionally, the wire stripper has a
hot-riveted joint that ensures smooth action
without a handle wobble, Klein-Kurve

comfort grip handles, and both 6-32 and
8-32 bolt shearing holes suitable for electri-
cal and trade work. [5]
LDT Dosiertechniks expanded its
DOSEURO product range to include the
RAPIDA motor inverter solution. The
RAPIDA system motor frequency varies from
6 to 60 hertz to give a proportional flow rate
between 10 and 100 percent pump capacity.
The frequency can be set at the motor, on
an integrated liquid crystal display or remotely
via a 4-20mA signal. Other features include
easy adjustment of flow rate; a level sensor to
automatically stop the pump; and an alarm
that monitors voltage, temperature and load
capacity. An application can be programmed
to operate in batch control mode for periods
of time from 1 to 9,999 minutes, and existing
pumps are easily retrofitted on site. [6]
Steerprop unveiled its CRP ECO LM propul-
sor featuring permanent magnet technology
from The Switch, a Yaskawa company. A ver-
tical motor enables the propulsor to sit inside
a vessel hull along with the auxiliary electric
systems and instrumentation, allowing for
simplified installation, maintenance and reli-
ability. The motor can be placed on top of the
thruster for a compact unit size and increased
efficiency, promoting lower operational
costs and efficient hydrodynamics. The
combination contra-rotating propeller and
permanent magnet motor uses as much
as 25 percent less fuel than traditional
electric alternatives and promotes efficiency
throughout the entire speed range. Suitable
for harsh environment operations including
icebreaking, the tool has received the highest
ice classification.
Waukesha Cherry-Burrell, an SPX FLOW
brand, released the Universal Twin Screw
Series Pump. Screw rotors made from
Waukesha 88 non-galling alloy enable tight
internal clearance for increased efficiency,
resulting in efficient pump performance and
higher flow rates with low inlet pressure.
Ideal for food and beverage, dairy, pharma-
ceutical, cosmetics and chemical process
industries, the pump handles multiple pro-
cess duties; offers bidirectional flow capacity
without modification; and reduces the
Featuring the latest products and services from supply chain management companies
number of pumps, valves and controls neces-
sary for installation. Twin-screw operation
reduces pressure fluctuations and operating
noise. The solution accommodates both
clean-in-place and steam-in-place cleaning
and features high-strength bearings. [7]
Tracking and labeling
FourKites launched a real-time temperature-
and location-tracking solution for shippers.
[5]
Shipment temperatures can be monitored
more accurately to ensure temperatures
remain within specified safe ranges, and
reduce spoilage, operational costs and one-
time spot buys. The solution relays load
temperatures and location data every 15
minutes from telematics and temperature
tracking manufacturers, connecting carriers
and shippers. It also features customizable
notifications if temperatures fall out of a
set range and visualization and analysis tools
for reviewing individual and aggregate load
temperatures for trend spotting and bench-
marking in operational improvements. [8] [6]
Transportation
Kinedyne LLC introduced THE E-HOOK
wall-mounted, freight-loading storage
solution for linear, flexible and hard-to-
stow cargo. With a working load limit of
300 pounds, users can mount the solution
to any vertically installed A-Track, E-Track
or logistic post wall systems. An eye-loop
at the outer end and clear zinc-plated steel
with slip-resistant orange vinyl coating in [7]
the cradle area offer additional cargo stabil-
ity and security. Multiple hooks can be used
at different heights to accommodate longer
cargo or items with contoured shapes and
securely store cargo while increasing worker
safety by reducing tripping hazards.
[8]
Send media releases to editorial@apics.org.
High-resolution, color photographs are encouraged.
apics.org/magazine 13
CAREER LAUNCH
Maximize Your
Conference Investment
A
ttending supply chain management conferences is potentially
one of the greatest investments you can make in yourself as a
young professional. Youll learn about the current state of the
field and related trends; develop and expand your professional net-
work; acquire new skills; and discover innovative ideas, technologies
and approaches. You may even get the opportunity to identify a great
career opportunity. But to fully realize these benefits, you need a game
plan. Bringing a stack of business cards and just hoping for the best is
not enough. Multiple days of speakers, sessions and conversations can
leave your head spinning. To avoid becoming overwhelmed, prepara-
tion is key. Here are some tips to help.
Before the conference
Have a goal. Why are you attending? Perhaps you want to sit in on a
workshop about a topic that is critical to your career. Or maybe you
want to network with peers, supply chain experts and influencers,
or your dream employer. The more specific your objectives, the
more you can maximize the value.
Do your homework. The conference website should list keynote
Rex Magadia works speakers, educational sessions, presenters and companies attending
in transportation and well in advance. Based on the goals you defined previously (the
logistics at the Academy
of Art University in
why), create an outline of the who, what, when and where. Lets
San Francisco. He was say you are hoping to acquire a new job with a particular business
the APICS L. L. Waters (why). You then should determine which company representatives
Scholar and currently is
will be in attendance (who), the sessions they are presenting (what),
pursuing his Master of
Business Administration and the times (when) and locations of the sessions (where). Or,
degree in global supply
chain management.
consider setting up a specific appointment with someone from the
Magadia may be company to ensure you have the opportunity to make a connection.
contacted at rexryan. Know your elevator pitch. This should succinctly convey
magadia@gmail.com.
who you are, what you do and why you are attending the confer-
ence (your goals). A well-developed pitch, in tandem with your
To comment on this
article, send a message business card, can help you quickly and effectively present your
to feedback@apics.org. expertise and credentials.
14 September/October 2017
Rex Magadia
During the conference
Contribute. Delivering a presentation or
facilitating a session provide a platform
upon which to be heard and give you
visibility among the thousands of attend-
ees. They also make it easier for people to
approach you and vice versa.
Focus on quality conversations. Unless
you are a networking superstar, its difficult
to keep up your enthusiasm when engaging
so many people in such a short period of
time. By taking a more targeted approach
for instance, specifically approaching
someone who is aligned with your game
plan you will enjoy more meaningful,
in-depth discussions. Keep in mind that a
quality dialog requires you to be genuinely
curious. Some of the best conversations
you have at a conference will stem from
asking the right questions at the right time.
Take notes. A ton of new information
is going to be coming your way. Be sure to
write down the ideas, concepts, techniques
and skills that you hear about. Similarly,
take notes about your conversations. These
records will help you develop your profes-
sional network post-conference and give you
specific talking points to keep the conversa-
tion going off the conference floor.
Attend the social events. These more
relaxed settings can help you get to know
your peers and even superiors on a more
personal level. Be genuine and open, and
you will find that others return the favor.
After the conference
Follow up intelligently. Your time and
effort at a conference can only fully manifest
themselves if you follow up with the indi-
viduals you connected with at the event.
Be specific in your post-conference out-
reach, and include reference points to jog
peoples memories and content and ques-
tions relevant to your on-site discussions.
Share what youve learned. Sharing
Illustration: iStock/Cecilie Arcurs
takeaways is valuable to your coworkers,
colleagues and classmates and also helps
you reinforce your new skills and knowl-
edge to ensure that your investment in the
conference pays dividends long after you
return to your desk.
 Patrick Bower
S&OP, Lean and Six
Sigma: a Powerful Trio
O
ne of my master planners recently asked me: Are lean and
six sigma supportive of each other? And how do they work
within a sales and operations planning (S&OP) process
model? Despite its thorny nature, I loved the inquiry.
In recent years, S&OP reached critical mass while lean and six
sigma faded in, out and then back in to vogue. As organizations
superficially cycled through training and implementation, many
supply chain managers, including me, cynically referred to lean and
six sigma as the program of the month. But I was wrong to think
that way, and these questions made me probe my own skepticism.
To really get to the bottom of it all, lets start with lean. According
to the APICS Dictionary, lean refers to a philosophy that emphasizes
minimizing the use of resources and identifying and eliminating
non-value-adding activities. Furthermore, lean principles and practices
facilitate the simplification of processes and the relentless removal of
waste created by overburden and unevenness in workloads.
For those of us with a deep understanding of S&OP, the terms
overburden and unevenness likely stand out in the previous
definition. Clearly, lean concepts and S&OP have a common goal:
a stable and predictable plan. Lean achieves this through simplifi-
cation and waste reduction; S&OP focuses on balancing supply and
demand in the long view by eliminating overburdened and uneven
workloads. Taking that a step further, S&OP is a culling, measuring
and decision-making process model that helps drive out supply
chain waste such as overproduction, excess inventory, unnecessary
movement and more. These are all examples of waste made visible
Illustration: iStock/NUMAX3D
via typical S&OP metrics.
Now, lets consider where six sigma fits in. The APICS Dictionary
reports that six sigma furnishes tools for the improvement of
business processes, and six sigma projects follow a defined sequence
of steps with specific value targets, such as removing the causes of
defects, decreasing variability, reducing process cycle times, cutting
costs, improving customer satisfaction and increasing profits. Of
SALES AND OPERATIONS PLANNING
course, these are all areas of great interest in
S&OP as well.
Real-world purpose
In my companys S&OP-centric environ-
ment, we are realizing the benefits of the
proper and judicious use of lean and six
sigma. They are leveraged in a surgical
manner to target improvements in critical
process areas. Then, we use S&OP to assess
and monitor the initiatives and maintain
advancements through control measures.
For example, we applied lean concepts to
streamline our order-to-floor and floor-to-
door processes, cutting our order-processing
time in half. In each step, we evaluated detailed
data and process maps to determine which
operations could be eliminated, improved
or sped up. We also pushed to enable elec-
tronic data interchange partnerships with our
customers, which reduced order fulfillment
time by a full day. Lean techniques helped us
improve our on-time-in-full delivery metrics
by 7 percentage points within a year, simply
because orders got out the door faster.
For manufacturing, our goal was to become
more agile through batch-size reduction,
without the pain of lost capacity. We
increased line efficiency with lean tools that
reduced the nonproductive time typically
associated with changeovers or unplanned
line stoppages. SMED (single-minute
exchange of die) cut changeover periods
and aligned economic order quantities
with minimum order quantities to reduce
component inventory hold and risk.
In these lean projects, S&OP helped us
communicate the changes to stakeholders.
Additionally, we found ourselves using six
sigma techniques such as root cause analysis,
fishbone diagrams and the five whys to
Patrick Bower is senior
further enhance the initiatives. Moreover, director of global supply
our use of such techniques let us identify chain planning and cus-
problems and target solutions down to the tomer service for Combe.
He is responsible for the
shift level at a retailers receiving distribu- companys sales and
tion point. We also apply six-sigma-esque operations planning pro-
cess, order management,
root cause analysis to demand planning, and third-party logistics
examining each departure from expected management. Bower
forecast accuracy results. We look for miss- may be contacted at
plbowerone@yahoo.com.
ing data, abnormal events, bad adjustments
or erroneous statistical forecasts. So far, we
To comment on this
have reduced forecast error by 70 percent article, send a message
amazing results by any measure. to feedback@apics.org.
apics.org/magazine 15
EXECUTIVE VIEW
Competition Is the
Key to Supply Chain
Success
C
ompetition is the soul of capitalism. Without competition,
growth and improvement are impossible. Those organi-
zations that are successful in the long run know how to
compete in their markets. Innovation, team spirit and perseverance
are direct results of that expertise.
Humans seem hardwired to compete. Who among us hasnt
wanted to be the best at one time or another (or all the time)? Many
behavioral experts believe that competition is an outgrowth of our
need to protect ourselves and our families. As civilization advanced,
this circle expanded to include our tribes, city-states and nations.
As humans evolve, we can hope that extreme competition (vio-
lence) will become obsolete. Then, we can focus on more peaceful
methods of satisfying the need for competition, such as sports,
instead. In this arena, we compete as teams and individuals against
Gary A. Smith, CFPIM, others. We also compete against ourselves as part of a training regi-
CSCP, CLTD, is vice pres- men. Even spectators get in on the game in their own ways.
ident of the division of
supply logistics for New Businesspeople, of course, compete economically. Individuals,
York City Transit. He may departments and entire organizations vie for promotions, budgets and
be contacted at gary.
smith@nyct.com. market share as we grow our careers and companies. Nowhere is this
clearer than in supply chain management. But competition is good
This article was prepared
for supply chains, and heres why:
by the author, acting in Competition is validation. Some years ago, I visited a company
his personal capacity. whose owner said that his product was in search of a market. He
The views and opinions
expressed in this article told me he had no competitors and that his product was unique. Six
are the author's own months later, he was out of business. One of the amazing things about
and do not constitute,
nor necessarily reflect,
capitalism is that, if there is profit in an idea, it will become a reality.
a statement of official If you have competitors, it means that others see value in the same
policy or position of the idea. Therefore, when you enter a new market, having competitors is
authors employer.
actually good. Remember, there is no such thing as a totally new idea.
If something is worthwhile, other people are working on it too.
To comment on this
article, send a message
This also is true with public-sector supply chains. When my
to feedback@apics.org. staff realized that our dock-to-stock time was too high, we looked
16 September/October 2017
Gary A. Smith, CFPIM, CSCP, CLTD
for benchmarks in the industry and found
several ways to cut our processing time. So
far, we have reduced it by 30 percent.
Competition spurs innovation. As new
ideas develop and then are refined and
improved, even better ideas emerge. Just
look at the innovations in smartphones and
computing in general. In the early 2000s,
driverless cars were a fantasy; now we have
Google, Uber and Tesla three companies
that didnt even exist 25 years ago making
them a reality.
Competition develops focus. As organiza-
tions compete, they focus on the problem at
hand. This drives an internal need to improve
and win. People cooperate, achieve synergies
and have higher rates of success when they
are focused on a common task. In this way,
cooperation is a byproduct of competition.
Competition fights complacency.
When competition drives an organization,
there simply is no time for complacency. Back
in the 1980s, there were two companies that
dominated computing: Wang Laboratories
and Digital Equipment Corporation. Both are
long gone now. Why? Because both were com-
placent in their markets and failed to see the
big changes coming. Complacency has driven
many such companies out of business.
Competition educates. In this department,
I have avoided discussing the negatives of
competition. (Sure, it can bring out the worst
in some people.) Instead, I have focused on
competitions positive, growth-fueled side.
But both types serve as great educational
tools. We learn from the positive and nega-
tive lessons and advance.
As philosopher George Santayana wrote,
Those who cannot remember the past are
condemned to repeat it. When we compete,
we learn; and when we learn, we grow. In
my professional life, I like to take this a step
further: When I hire and promote, I look
for people who are competitive. These
professionals have learned that, through
competition, they can succeed. They want
to be the best, and they want to work for the
Photo: iStock/erhui1979
best. These are the type of people I strive to
lead and follow.
 Annette Franz
Preventive Care
Cures the Employee-
Retention Bug
T
he phrase employee retention makes many managers a little
queasy and it ought to. Turnover is costly in a variety of ways,
not the least of which is its impact on the customer experience.
According to Gallup: Engaged employees are involved in, enthu-
siastic about and committed to their work. Gallups extensive
research shows that employee engagement is strongly connected
to business outcomes essential to an organizations financial suc-
cess, such as productivity, profitability and customer engagement.
Engaged employees support the innovation, growth and revenue
that their companies need.
Unfortunately, employee engagement is dismally low, hovering
around 32 percent, based on Gallups recent survey findings. Look
around your workplace. Would it surprise you to know that seven
out of 10 people you see are basically just showing up for work and
doing only the minimal job requirements? They are either compla-
cent or actively looking for another position. Meanwhile, a recent
Fast Company article said, You should plan on switching jobs
every three years for the rest of your life. With advice like that, its
no wonder that retention is so difficult.
Its true that staying in one place too long can indeed be a disservice
to both employee and employer. The employee only is exposed to how
one specific business operates and lacks the broader, more diverse
perspective that can be gained from working for a variety of organ-
izations. The employer loses out on the innovation and creativity that
often come from fresh blood. Still, the costs associated with constantly
Photo: iStock/IndypendenZ
hiring, training and developing new people are sky-high. There also
is a serious impact on the customer experience every time a more
seasoned employee is lost and a new one starts all over again. But if
you consider the What if we train employees and they leave? What
if we dont train them and they stay adage, those outlays have to be
absorbed either way. You may as well figure out a way to keep them
engaged and passionate about their work.
CUSTOMER EXPERIENCE
The employee experience
To keep great employees longer, company
leaders must focus on the employee experi-
ence. There are many components of a great
employee experience, but the key factors
ultimately driving retention are as follows:
Growth opportunities: If you have ambi-
tious employees (and if theyre leaving
every three years, then they are ambitious),
you must give them a clear career-
development plan and execute on it.
Professional development: Ongoing
education and training about the latest
and greatest trends, challenges, products,
methodologies, innovations and thinking
are essential. Professional development
activities should focus on both the indus-
try as a whole and on elements that are
relevant to an employees particular role.
People who arent learning and being chal-
lenged become stagnant and will end up
getting left behind (or leaving you behind).
Recognition: Make sure employees know
how their work contributes to the overall
vision of the business, that their work
matters and that their contributions are
of utmost importance.
Leadership: Be a leader who cares, is well
respected and trusted, communicates
clearly and honestly, and encourages and
facilitates the development and growth
of employees.
Oftentimes, companies dont find out until
its too late why employees are leaving.
Human resources professionals are keen
to conduct exit interviews presumably
for the benefit of the company and for
the employees who remain. But wouldnt
it be wonderful to conduct stay inter-
views instead? Although exit interviews
are basically postmortems, stay interviews
are like wellness visits. They focus on what
current employees enjoy about working for
the company, any aches and pains theyre
experiencing, and ways to promote healthier
and long-lived professional experiences in
the future.
Annette Franz is founder
Remember, theres really nothing you can and CEO of CX Journey.
do once an employee is walking out the door. She may be contacted at
cxjourney@gmail.com.
Current employees must stay engaged if they
are to meaningfully contribute, professionally
To comment on this
succeed, and help transform your organiza- article, send a message
tion and its culture. to feedback@apics.org.
apics.org/magazine 17
ENTERPRISE INSIGHTS
Asking the Right
Business Questions
S
everal years ago, I visited a manufacturing company that
was just putting the finishing touches on an impressive,
highly automated warehouse. Meanwhile, another area
of the company was involved in a lean manufacturing initiative
that promised to greatly reduce the amount of inventory that the
company would have on hand at any given time. Of course, after
successful completion of the lean project, it was quite likely that
this expensive, new warehouse would not really be needed.
Is this a classic case of poor communication across departmental
boundaries? Yes, of course. Is it also a case of executive management
not keeping their eyes on the entire business? Again, yes. Admittedly,
this was a large company with many plants and divisions but thats
no excuse. The executive team has a duty to consider any conflicts or
lack of synchronization that could harm overall business performance.
Timing was a factor here as well. A construction project takes
a long while to complete, and it is not that unusual for markets
and needs to change between the time that a multiyear project
is authorized and when it reaches completion. However, build-
Dave Turbide, CFPIM, ing this no-longer-needed warehouse cannot be excused due to
CIRM, CSCP, CMfgE, is a a market or business change because the organization was still
New Hampshire-based
independent consultant healthy and growing.
and freelance writer and The real problem was that leaders asked the wrong questions.
president of the APICS
Granite State Chapter.
When inventory levels rose to the point where existing warehous-
He also is a Certified ing and material-handling capabilities were becoming inadequate,
in Production and executives asked, What should we do to be able to handle this
Inventory Management
and Certified Supply increased inventory? What they should have asked was, What
Chain Professional can we do to prevent inventory growth or perhaps even reduce
master instructor and
The Fresh Connection
inventory so we dont need another warehouse?
trainer. Turbide may be Years later, I worked with another business that had to maintain six
contacted at dave@ to 12 months of inventory for low-volume products because workers
daveturbide.com.
were only able to make them once or twice a year. To help resolve these
production constraints, the company had placed an order for an
To comment on this
article, send a message
expensive machine and even planned to purchase a new warehouse.
to feedback@apics.org. However, my team and I recognized the nature of their products
18 September/October 2017
Dave Turbide, CFPIM, CIRM, CSCP, CMfgE
and processes, and we were able to develop
different production-scheduling guidelines
for high- and low-volume products that
eliminated constraints by shortening lead
times and adding flexibility. With the more
flexible scheduling system, the organiza-
tion now could economically produce
Many professionals get
stuck in a rut of solving
surface problems instead
of digging down to their
root causes.
low-volume products five or six times per
year, eliminated concerns about product
shelf life and shipped consistently fresher
products to customers. As a result, the
business postponed the machine purchase
and shelved plans for the warehouse.
Breaking from the normal approach
Many professionals get stuck in a rut
of solving surface problems instead of
digging down to their root causes. Too
much inventory? Find a place to put it. Not
enough production capacity? Add more.
Problem-solving techniques such as cause-
and-effect analysis and the five whys lead
us to the heart of an issue. Asking the right
questions makes it possible to identify key
factors and avoid wasting precious resources
on futile solutions.
If inventory is growing, ask why. Rising
inventory levels with no increase in business
volume is an obvious red flag that is easily
detected by watching inventory turns. If
business is expected to double in the next
five years, that does not necessarily mean
that inventory must double as well.
Its always smart to look beyond the
obvious. Performance improvement does
not come from just doing more of the same
thing. Instead, take a step back and ask why
Illustration: iStock/erhui1979
five times and dont settle for the simple
answers. Breaking through basic assump-
tions enables you to identify and resolve the
real problems at hand.
 Antonio Galvao, CSCP, CLTD, and Mike Dries WORKING GREEN

emissions compared with a 2005 base-

line. Future Ready Singapore reported
that Kimberly-Clark has observed
tangible results from its sustainability
initiatives, such as cost savings associ-
ated with energy conservation, reduction
in water consumption, and cutting down
its use of fiber and packaging.
The item goes on to say that the most
visible result of the companys sustaina-
bility efforts lies in talent acquisition and
retention. Lisa Morden, Kimberly-Clarks
senior director of global sustainability, says
in the story, I often have new employees at
Fundamental Ways various levels of the organization approach
me and say that the work we do in sustain-

to Fight Waste and ability and the importance we place on

it is why they find it appealing to work at

Inefficiency
Kimberly-Clark.

The global bottom line

I
Although voluntarily purging waste delivers
magine starting each workday by putting a match to a fistful of both economic and environmental benefits,
money thousands of dollars up in smoke. It certainly wouldnt there also is a trend today among govern-
make good business sense. And yet, countless companies do ments to mandate waste reduction. By
exactly that through myriad kinds of waste. 2021, for instance, Singapore will require
Supply chain management professionals from businesses large companies doing business in the prosper-
and small and across a wide range of economic sectors continue ous island nation to report their packaging
to redouble their efforts to purge waste from their operations.
They recognize that doing so is essential to operating a sustainable
enterprise. Waste not, want not, as the old saying goes.
Sustainability douses
Viewed from a waste-reduction perspective, sustainability is a the flames of inefficiency Antonio Galvao, CSCP,
CLTD, is the vice presi-
must have, not just a nice to have. The nice-to-have perspective often that threaten every dent of global logistics
is based on the mistaken belief that adopting sustainable business building efficiencies
practices necessarily requires incremental costs. All the time, we are organizations profits. at Johnson Controls.
He may be contacted at
learning that the opposite is actually true. More and more supply antonio.galvao@jci.com.
chain management professionals today are recognizing the solid data and submit packaging-reduction
business case for sustainability because they see its clear connection plans. According to Singapores National The views and opinions
to the elimination of costly waste. Sustainability douses the flames of Environment Agency, unless aggressive expressed in this article
are those of the author
inefficiency that threaten every organizations profits. action is taken to reduce waste, Singapores and do not necessarily
Furthermore, best-in-class companies continue to identify one and only landfill will be filled by 2035. reflect the official
policy or position of
creative ways to improve the efficiency of their operations. They Indeed, with the worlds population Johnson Controls.
go beyond reducing water and energy consumption, diverting expected to increase by roughly one-third
manufacturing waste from landfills, and improving occupational by 2050, Singapores forward thinking
Mike Dries is a retired
safety all excellent aims in their own right to some truly on this issue makes a lot of sense. Waste, business journalist and
innovative sustainability programs. on the other hand, makes no sense no corporate communi-
Photo: iStock/FotoCuisinette

cations executive now

For example, consumer packaged goods giant Kimberly-Clark matter how you look at it. working as a freelance
recently announced the progress it has made toward achiev- writer. He may be
ing its sustainability goals, pointing out that it has diverted 95 contacted at mjdries23@
gmail.com.
percent of its manufacturing waste from landfills and diverted
5,000 metric tons of post-consumer waste through partnership
To comment on this
programs around the world. The maker of Scott and Kleenex article, send a message
also has achieved a 16.8 percent reduction in greenhouse gas to feedback@apics.org.

apics.org/magazine 19
PROFESSIONAL DEVELOPMENT
Understanding
Noncompete Agreements
I
n todays job market, noncompete agreements are becoming increas-
ingly common. Employers are using them to protect intellectual
property, discourage workers from going to a direct competitor
and prevent employees from leaving to start a similar business.
Furthermore, gone are the days of noncompetes only being used for
key executive positions and product-design and -development roles;
employers now apply noncompetes to all kinds of business functions
and to full-time, temporary and even hourly employees.
The employees side
Unfortunately, many employees sign noncompetes without taking the
necessary precautions. The result can be long, costly legal battles after
a breach of contract. Common mistakes include neglecting to read a
noncompete fully before signing it, not seeking legal counsel to learn
about the agreement prior to signing and simply forgetting about the
noncompete when searching for a new position.
Just last year, a consumer packaged goods (CPG) company was
seeking to hire a senior vice president of supply chain. The finalist
candidate assured the interviewers that he had never signed a
noncompete with his current employer. Yet, after the offer was
Rodney Apple is founder extended, it was discovered that he was either mistaken or being
and president of SCM knowingly dishonest. His current employer refused to waive the
Talent Group, a supply
chain recruiting and noncompete, so the CPG business unwilling to take the legal
executive search firm. He risk withdrew the job offer.
has served as the APICS
career coach since 2014 You can avoid this and other unfortunate noncompete situations
and routinely contributes by following these tips and best practices:
supply chain career
Never sign a job offer with a noncompete on the spot, and be
development content
for members. Apple may wary of any business that pressures you to sign then and there
be contacted at rapple@ or refuses to let you take a copy of the agreement with you to
scmtalent.com.
review prior to signing.
Read every detail of a job offer and anything else an employer asks
To comment on this
article, send a message
you to sign especially the fine print. Some organizations separate
to feedback@apics.org. noncompete covenants; others embed them into an offer letter.
20 September/October 2017
Rodney Apple
Look for specifics. Agreements that con-
tain specifics, such as the names of compa-
nies you cannot work for, are preferred to
agreements that are very broad in scope.
Ensure that the length of the restric-
tion within the noncompete is fair. Six
months to one year is standard
and reasonable.
Gain an understanding of what would
happen if the company changes owner-
ship or if you are laid off or terminated
because of downsizing.
Make sure the geographic limitations
are sensible.
If you have any hesitations, engage an
employment lawyer who can answer your
legal questions, help you understand the
documentation wording and prepare you
to negotiate.
The employers side
Companies make noncompete mistakes as
well. Some use an agreement that was not
authored by a legal expert or incorporate too
many restrictions that wont hold up in a court
of law. Others do not have noncompetes at all.
Yet the worst mistake a business can
make is using noncompetes with the aim
of improving employee retention. Consider
a retailer that required its hourly ware-
house associates to sign noncompetes that
restricted them from joining a competitor
for 18 months after separation from the
company. Similarly oppressive limits were
put in place at a popular American fast-
food chain. Sandwich makers were forced
to sign noncompetes that restricted them
from working for a competitor for two years
and within a three-mile radius of any of the
companys 2,000-plus restaurants. This case
drew the attention of the federal govern-
ment, and an investigation was launched
that led to a class-action lawsuit being filed
against the chain by former employees.
Im no lawyer, but I have to imagine that
people who spend their days unloading
boxes or assembling sandwiches are not
Photo: iStock/FangXiaNuo
going to be privy to key trade secrets. There
were ulterior motives behind these ridicu-
lous noncompetes, and the public relations
nightmares the businesses faced as a result
make it clear that this employee-retention
tactic seriously backfired.
 Ron Crabtree, CIRM, SCOR-P, MLSSBB
Pull System Triggers
Optimal Planning and
Replenishment
M
any years ago, when I was an automotive industry plant
materials manager, I faced a big challenge. My companys
enterprise resources planning (ERP) system was failing
us miserably with regard to our expendable packaging. Although
we had initially been very successful at implementing a fully
integrated ERP system driven by forecasts, material requirements
planning and bills of material, it was discovered that pallets, corru-
gated boxes, dunnage and other packaging items were essentially
impossible to plan for.
These were things that demanded a tremendous amount of space
to store and endless surprise expediting headaches when we would
suddenly run out. For example, large corrugated boxes had a lead
time of six to eight weeks. During these periods, it always seemed
like we were tripping over piles and piles of boxes; then, a few days
later, we found ourselves expediting again.
A lean approach saves the day
We tackled the problem by adopting a lean pull system. First, for
pallets, we brought in local supplier candidates and verified that
they could handle our worst-case volume scenarios. We figured out
that they could ramp up in four or five days. A visual-management
system was implemented for each type of pallet, with a quantity
equaling a full week of maximum usage. The pallet supplier made
Illustration: iStock/roccomontoya
deliveries every 48 hours and, after unloading, counted the empty
spaces. This count became the authorization to replenish. This sys-
tem required zero ERP and, better yet, the supplier did all the work.
We never ran out of pallets again, and we never had more than a
five-day supply.
The corrugated boxes and internal dunnage were more prob-
lematic. The suppliers were much farther away, they had six-week
lead times, and piecemeal daily logistics was too costly. Although
LEAN CULTURE
the suppliers could not do much about the
lead times, they did agree to maintain
a four-week inventory buffer at their
warehouses, which augmented the two-
week buffer at our own facility. For each
type of packaging, we designed space for
a standard number of stacks or bundles,
making up about a two-week supply at
full volume. We then counted the empty
spaces and faxed the counts to the vendors
every five days. This pull-system trigger
became delivery authorization for the fol-
lowing week. Again, we never ran out again
and enjoyed the benefits of having no more
than two weeks of stock on hand.
Still
There is a downside to every situation. Ours
came in the form of forgetting to establish
a formal process to stop the new lean pull
system at the end of model-year production.
In the automotive industry, when a model
is discontinued and a new one introduced,
it is rare for the new parts to use the same
packaging. Because we failed to involve our
vendors in the wind-down plan, we ended
up destroying many weeks worth of pack-
aging. Although this did not get me fired,
it did teach me a valuable lesson.
With any planning and replenishment
strategy, there are complex risks and issues
to manage. ERP, working as designed, is a
zero-inventory solution. With ERP, you plan,
produce or buy exactly what is needed to
ship to customers. Absent errors or vari-
ances, when the customer stops ordering,
you stop planning, and the system should
net inventory to zero after the last shipment
is made. Pull systems are not zero-inventory Ron Crabtree, CIRM,
SCOR-P, MLSSBB, is
solutions. They require buffer inventories chief executive officer
to allow adequate time to signal replenish- of MetaOps, a master
MetaExpert and an
ment from suppliers and are triggered only organizational transfor-
by consumption. Thats a critical difference. mation architect. He is
Moreover, while using pull is simple and the author or coauthor
of five books about oper-
effective, it is a poor solution in an environ-
ational excellence and
ment of frequent engineering changes or that the online magazine at
MetaOpsMagazine.com.
has other instabilities in design or supply. Crabtree also teaches,
If considering a pull system design, be presents and consults.
sure to perform a failure mode effects anal- He may be contacted at
rcrabtree@metaops.com.
ysis. Most businesses will find that pull is
appropriate for certain kinds of items, while
To comment on this
ERP is essential for others. Dont force fit article, send a message
anything into the wrong approach. to feedback@apics.org.
apics.org/magazine 21
MANAGEMENT PERSPECTIVE
Smart Leaders Enable
Collaborative Design
S
panish clothing and accessories retailer Zara has been men-
tioned in this department frequently in the past few years.
The company is famous for being able to receive an idea
from a retail store manager and, as little as two weeks later, have the
new product available for purchase. This continuous flow of new
designs rather than characteristic seasonal releases is trans-
forming the fast-fashion industry.
Zara is breaking the rules of retail, and it continues to report
rising profits as a result. Businesses of all types and sizes can learn
from Zaras success. In fact, the lessons are very straightforward.
They are, however, difficult to implement.
Mismatched aims
Todays supply chain management professionals know that con-
sumers want high-quality, reliable and increasingly customized
products and they want them quickly. This means the creative
The creative process must be integrated
into the supply chain process early on
in order to enable simultaneous design-
and-build activities.
Philip E. Quigley, CFPIM,
PMP, is senior project process must be integrated into the supply chain process early on in
manager at Ingram
Micro and an adjunct order to enable simultaneous design-and-build activities. But how
professor in the depart- can a typical manufacturer and its supply chain accomplish this very
ment of management
at California State
challenging goal in the real world?
University, Fullerton. He To begin to answer that question, consider this story from former
may be contacted at aerospace and defense (A&D) business McDonnell Douglas. Back in
pquigley@fullerton.edu.
the 1990s, before its merger with Boeing, company decision makers
launched a total quality management (TQM) and just-in-time (JIT)
To comment on this
article, send a message
effort to address welding problems, vendor-management issues, and
to feedback@apics.org. equipment maintenance and setup challenges. The business was
22 September/October 2017
Philip E. Quigley, CFPIM, PMP
having some success, and professionals on
the supply chain side of things were pleased.
But one day, the sales and marketing
leaders came to them and said: Its nice
that youre doing TQM and JIT, but that
doesnt really help us. Our current custom-
ers are demanding that we deliver a finished
customized rocket in 12 months, not 24. We
need you spending your time on figuring
out how to do that and helping us win
future contracts in this highly competitive
A&D marketplace.
The supply chain folks simply couldnt
wrap their heads around this. Twenty-four
months had always been just fine. Why the
sudden change? They decided to just stick
with the 24-month model and told their
colleagues to live with it.
Clearly, there was zero consensus
among those in senior management. And
it didnt take long for this discord to set in
motion the ultimate collapse of the TQM
and JIT initiatives.
Critical leadership
McDonnell Douglas decision makers didnt
spend enough time together achieving
thoughtful contemplation and clear plan-
ning about the purpose of the change they
aimed to implement. Their real objectives
should have been giving the customers what
they wanted and being more competitive
in the marketplace. Then, they should have
walked back, step-by-step, to the start of
their processes and figured out how to enable
fast, customized operations from the start.
Importantly, this tactic would have required
bringing everyone together to collaborate on
the design of any new deliverable.
The failure of an A&D company in the 90s
has an interesting lesson for todays supply
chain management professionals: The differ-
ence between success and failure often comes
down to leadership. Executives must remem-
ber to take a hard look at the current state of
affairs in order to identify strengths and weak-
nesses. They must identify where changes
Photo: iStock/Tinpixels
can succeed, not just survive, and then force
themselves to grind through the daily battles
and issues of making those changes work. Just
as Zara breaks the rules of retail, supply chain
management leaders must break down silos
and support cooperation and consensus.
 Richard E. Crandall, PhD, CFPIM, CIRM, CSCP
Upgrading Smart
Manufacturing with
Industry 4.0
T
he face of manufacturing has evolved over the course of cen-
turies from the days of handmade goods to the adoption of
water- and steam-powered machines, the invention of mass
production, the introduction of electronic automation, and now
beyond. (See sidebar.) Companies that have not kept up with these
industry transitions throughout the years often have been forced to
close their doors. The ones that evolve survive and thrive.
Today, the benchmark for companies to keep up with is Industry
4.0. This is a state in which manufacturing systems and the objects
they create go beyond simply being connected to also communicating,
analyzing and using collected information to drive further intelligence
action and execute a physical-to-digital-to-physical transition. It repre-
sents an integration of the internet of things (IOT) and relevant physi-
cal technologies, including analytics, additive manufacturing, robotics,
artificial intelligence and cognitive technologies, advanced materials,
and augmented reality (Sniderman, Mahto and Cotteleer 2016).
Illustration: iStock/a-image
A survey by The MPI Group (2017) found that manufacturing
companies have significantly increased their understanding of
Industry 4.0, IOT and related programs in the past year. For exam-
ple, 29 percent of respondents indicated a significant company-wide
understanding of IOT, up from 5 percent in 2016. Similarly, only
8 percent of respondents said their companies didnt have any
understanding of IOT, which was down from 24 percent.
RELEVANT RESEARCH
The path to 4.0
As the prevalence of IOT increases, experts
advise that the adoption of Industry 4.0 is
necessary for business survival. However,
moving an organization toward smart manu-
facturing is a multi-faceted project, regardless
of company size. In a large business with
multiple facilities, the process could take
months or even years to complete.
Here are 10 steps to get started with
this task.
1. Make the decision to go ahead. Key
stakeholders must agree that the project
to implement smart manufacturing is
important even essential to the
companys future. Otherwise, the initi-
ative will not have proper support.
2. Select the team members. The project
team should include a cross-section of
the company, with representatives from
manufacturing, accounting, engineering,
human resources and marketing. All parts
of the business have a role to play.
3. Perform a cost-benefit analysis. This
step is as much about identifying future
expectations as it is quantifying known
costs and benefits. Some costs will be
difficult to estimate, and some of the
benefits will be even less tangible. As a
result, this type of analysis will require
frequent revision and updating.
4. Select an outside expert to guide the
project. If there is insufficient knowl-
edge or experience within the company,
it is important to find outside help to
guide the project team. Because it will be
a long-term commitment, the selection
of the right adviser is an important step.
5. Design the project phases. All projects of
any magnitude can be planned in phases
so that each step can be evaluated and, if
necessary, adjustments can be made.
6. Select the technology. This is the critical
step in project planning and the one
that is the most challenging because of
the newness of the technology and the
paucity of successful implementations.
Selecting the hardware, software and sys-
tems design for a smart manufacturing
installation will fully test the knowledge
and determination of the project team.
7. Modify the infrastructure. Major
changes may be required to upgrade to
apics.org/magazine 23
RELEVANT RESEARCH

Industry 1.0 to 4.0: the Evolution of Smart Factories

For centuries, goods including food, clothing, houses and
weaponry were manufactured by hand or with the help of work
animals. By the beginning of the 19th century, though, manu-
facturing began to change dramatically with the introduction of
Industry 1.0, and operations rapidly developed from there. Here
is an overview of that evolution.
Industry 1.0
In the 1800s, water- and steam-powered machines were developed
to aid workers. As production capabilities increased, business
also grew from individual cottage owners taking care of their
own and maybe their neighbors needs to organizations with
owners, managers and employees serving customers.
Industry 3.0
In the last few decades of the 20th century, the invention and
manufacture of electronic devices, such as the transistor and, later,
integrated circuit chips, made it possible to more fully automate
individual machines to supplement or replace operators. This period
also spawned the development of software systems to capitalize
on the electronic hardware. Integrated systems, such as material
requirements planning, were superseded by enterprise resources
planning tools that enabled humans to plan, schedule and track
product flows through the factory. Pressure to reduce costs caused
many manufacturers to move component and assembly operations
to low-cost countries. The extended geographic dispersion resulted
in the formalization of the concept of supply chain management.

Industry 2.0 Industry 4.0

By the beginning of the 20th century, electricity became the
primary source of power. It was easier to use than water and
steam and enabled businesses to concentrate power sources
to individual machines. Eventually machines were designed with
their own power sources, making them more portable.
This period also saw the development of a number of manage-
ment programs that made it possible to increase the efficiency
and effectiveness of manufacturing facilities. Division of labor,
where each worker does a part of the total job, increased produc-
tivity. Mass production of goods using assembly lines became
commonplace. American mechanical engineer Frederick Taylor
introduced approaches of studying jobs to optimize worker and
workplace methods. Lastly, just-in-time and lean manufacturing
principles further refined the way in which manufacturing compa-
nies could improve their quality and output.
In the 21st century, Industry 4.0 connects the internet of things
(IOT) with manufacturing techniques to enable systems to share
information, analyze it and use it to guide intelligent actions. It
also incorporates cutting-edge technologies including addi-
tive manufacturing, robotics, artificial intelligence and other
cognitive technologies, advanced materials, and augmented
reality, according to the article Industry 4.0 and Manufacturing
Ecosystems by Deloitte University Press.
The development of new technology has been a primary driver of
the movement to Industry 4.0. Some of the programs first developed
during the later stages of the 20th century, such as manufactur-
ing execution systems, shop floor control and product life cycle
management, were farsighted concepts that lacked the technology
needed to make their complete implementation possible. Now,
Industry 4.0 can help these programs reach their full potential.

Industry 4.0. At the macro level, the supply chain design may
require modifications, the organizational structure may have to
be realigned, and strategic objectives may need rethinking. At
the micro level, policies, procedures and job descriptions will
need review and refinement.
8. Cultivate the internal culture. The project will not be successful
until employees understand and accept the new environment in
which they will work. Management must carefully explain the
objectives of the program and the effects on people in order to
gain their confidence.
9. Establish relationships with external participants. It is
important to explain to key customers and suppliers how
the smart-manufacturing program will benefit them and to
prepare them for any changes that will affect them.
10. Begin the implementation. At some point, the changes begin.
Those responsible for managing the project should monitor the
progress and adjust as necessary.
Why upgrade?
A survey of manufacturers that have already
completed this process found that the
adoption of Industry 4.0 can help improve
product quality; increase speed of opera-
tions; decrease manufacturing costs; and
improve maintenance and uptime, agility
and responsiveness, the quality of informa-
tion used for product decisions, and safety
(The MPI Group 2017). In addition to these
short-term benefits, MESA International
notes that Industry 4.0 users will gain
longer-term benefits, such as increased
revenues, more innovation and improved
customer experiences (Almada-Lobo
2017). The increased abilities provided by
Industry 4.0 including better product

24 September/October 2017

quality, lower overall costs, the potential for higher product mix
and improved customer experience enable participating compa-
nies to become suppliers of choice. In addition, these abilities create
opportunities for companies to grow their customer bases into
larger markets, build customized and high-margin products, and
offer intelligent services to accompany those products. The extreme
visibility provided by Industry 4.0 gives companies better feedback
about their research and development investments. By extension,
this deeper insight into data and production can help companies
provide better customer service and even offer customers the oppor-
tunity to monitor project progress in real time.
To achieve these benefits, companies must be pioneers, as there
are not many success cases to use as guides. At this point, very few
companies have fully implemented smart manufacturing, although
General Electric (GE) and Siemens have made strides in this area.
GE invested more than $100 million in technology company Pivotal
to help create GEs industrial internet and data lake (The Connected
Planet n.d.). Through this technology, a turbine on a plane in the
As the prevalence of IOT increases, experts
advise that the adoption of Industry 4.0 is
necessary for business survival.
air can transmit data to GE and the airline operating the plane, for
example. The data lake offers 2,000 times faster data analysis than
previous systems and is 10 times cheaper to operate, The Connected
Planet reports.
GE also offers Predix, a distributed application and services plat-
form for developing, managing and monetizing industrial internet
applications. The system is set up to facilitate machine-to-machine
communications, analyze large industrial data sets, and manage
industrial asset performance. According to GE, the platform
can improve visibility of asset health and performance; uptime,
through optimized and predictive maintenance; operator intelli-
gence and control; and data-driven insights that can help optimize
manufacturing, scheduling and logistics.
Pitney Bowes chose to implement GEs Predix platform to help the
digital commerce, business intelligence, mailing and shipping com-
pany meet its goals of focusing on predictive maintenance instead
of break-fix service contracts, optimizing customer operations of
machines, and gaining the ability to accommodate top-priority jobs
and meet critical service-level agreements through adaptive and
dynamic real-time capacity scheduling. Although there is still much
to be done to implement and utilize the platform to its full potential,
the companies report that they are well on their way to operational-
izing Pitney Bowess IOT vision.
Siemens offers Mindsphere, which the company describes as a
cloud-based IOT operating system. The platform connects machines
and physical infrastructure with the digital world and even third-
party apps to gather and analyze data. Siemens says Mindspeheres
Richard E. Crandall, PhD, CFPIM, CIRM, CSCP
insights can help reduce downtime, increase
output and utilize assets more effectively.
Other challenges to upgrading to Industry
4.0 include difficulties in identifying oppor-
tunities and benefits; adapting existing
technologies to Industry 4.0; incorporating
smart devices to provide desired intelligence;
providing network capabilities; assuring
network, device and data security; and,
ultimately, changing company procedures.
These obstacles are only short-term ones that
will be overcome as businesses learn more
about smart manufacturing, Industry 4.0 and
automation in general. However, the poten-
tial short-term and long-term payoffs open
companies to a world of possibilities that will
keep them competitive as industry evolves.
References
1. Almada-Lobo, Francisco. 2017. The
Business Value of Industry 4.0. Where
Manufacturing Meets IT, May 24. http://blog.
mesa.org/2017/05/the-business-value-of-
2.
industry-40.html.
Sniderman, Brenna, Monika Mahto
and Mark Cotteleer. 2016. Industry
4.0 and Manufacturing Ecosystems.
Deloitte University Press, February
22. https://dupress.deloitte.com/
content/dam/dup-us-en/articles/
manufacturing-ecosystems-exploring-
world-connected-enterprises/DUP_2898_
Industry4.0ManufacturingEcosystems.pdf.
3. The Connected Planet. n.d. General Electrics
Industry 4.0 Vision. The Connected
Planet. http://www.theconnectedplanet.net/
general-electrics-industry-4-0-vision/?_sm_
au_=inVqpDW2rq2DH4H8.
4. The MPI Group. 2017. What a Difference a
Year Makes: Manufacturers from around the
World Are Now Profiting from the Internet
of Things (Are You?) The MPI Group, May.
Richard E. Crandall, PhD,
For a list of more than 80 annotated CFPIM, CIRM, CSCP, is
references about this topic, contact a professor emeritus
at Appalachian State
the author at crandllre@appstate.edu. University in Boone,
North Carolina. He
is the lead author of
Principles of Supply
Chain Management.
Crandall may be con-
tacted at crandllre@
appstate.edu.
To comment on this
article, send a message
to feedback@apics.org.
apics.org/magazine 25
26 September/October 2017
apics.org/magazine 27
From
SO A P HOPE to

Editors note: According to the World Health Organization, 2.4 billion people do
not have access to clean sanitation, and 1.8 million children die every year
because their immune systems are not strong enough to battle diseases
many of which could easily be prevented with soap. In fact, simple hand-
washing cuts morbidity rates by nearly 50 percent. Sicknesses related to
contaminated water supplies and poor hygiene most often plague poor, war-
torn regions or those in the wake of a natural disaster.
Derreck Kayongo, himself a Ugandan war refugee, started the Global Soap
Project (GSP) to help vulnerable communities fight disease. Each year, the GSP
delivers more than 10 million bars of soap to people in need. Now, as the CEO of
the National Center for Civil and Human Rights, Kayongo continues to fight for
human rights around the globe with a focus on safeguarding marketplaces,
businesses and economies. Elizabeth Rennie, APICS magazine senior managing
editor, recently spoke with him about his work and the plans for his general
session speech at APICS 2017.
Derreck Kayongo
Founder, Global Soap Project
CEO, National Center for Civil and Human Rights

Rennie: Why is the GSPs work so important to
you personally?
Kayongo: My father was a soap maker back home in
Uganda, so I grew up around soap. Then we had a war
that turned me into a refugee, and during that time I
realized that soap is so important because we didnt
have it. Most people dont know how powerful soap
is until you see diseases like diarrhea, cholera and
typhoid, which are related to hygiene. But soap really is
one of the most important inventions by humankind.
So, then I came to the United States and saw a hotel
throwing away soap, and I just realized how inter-
connected the issues were. ... Those events helped me
understand that there was an idea there that could be
used to provide soap something so basic to people
who need it. So, thats how I happened upon the idea.
But just having an idea is not enough. You then have
to have a particular skill set. So I went to school in the
U.S. and learned a little bit about how [nongovern-
mental organizations] work. I needed to know how to
build a board, to raise money and to build a factory. It
took me about 10 years to construct the idea and make
things happen.
Rennie: How does the project work? How did you
establish the key players, and what are the steps
involved with getting a used bar of soap from a hotel
through the purification and packaging processes
and out to the people who need it?
Kayongo: Looking at cost of production, I figured
that, rather than building a smaller factory in every
state, we had to do a couple things. One was to [deter-
mine] the highest concentrations of hotels and
those happen to be in Las Vegas and Orlando. Those
two cities have the largest collection of hotel rooms
and therefore the largest amount of recyclable soap. We
built factories in those two locations. In doing that, we
partnered with hotels that offered us space to build
our factories.
After we got the locations locked in, we looked
at how to pick up the soap from every hotel room
and get it to the factories. It was important to us to
work with the managers and meet the housekeepers
who would collect the soap. The soap from the hotel
room has to be separated from the other trash, and
the argument was that they wouldnt want to do that
because its too much work. We had to help them
understand the power of what we were doing so they
could buy in. Most of the housekeepers come from
those parts of the world that were taking the soap to
they come from Africa, from Eastern Europe, from
Latin America so once they knew that the soap was
being taken there, they were all in.
Once the soap got from the hotels to the factory, the
issue was then taking the soap, once you have recycled it,
to the people who need it. For us it was very simple. Every
trucker who delivers into Las Vegas goes back out empty,
right? So the idea was that, rather than having the trucks
go back empty, tell us how much space you have. We
were able to give them a tax break, so they were able to
write off the cost of transportation because we are a non-
profit. So, that was very, very important. In fact, the first

28 September/October 2017
 A hotel hears about the Moistened soap filaments are run
Global Soap Project (GSP). through a screen to remove particulates
and molded into bars of soap.

A sample is removed from

The hotel registers as a
each production batch and
partner at globalsoap.org.
tested for quality.

The hotel is contacted by a GSP Bars are cut, visually inspected

representative and given instructions and packaged into boxes for shipment.
about collecting and sending soap.

The hotel mails its soap to the The soap is picked up for
GSP plant in recycled boxes. shipment to partners.

At GSP, soap is sorted, cleared The soap is shipped to vulnerable

of debris and placed into bins. populations around the globe.

Soap is grouped and mixed

Partners send reports to the GSP
with water to make it the
about distribution and hygiene education.
correct consistency.

year we also got $1 million in in-kind maritime transpor-
tation services because so many of the ships that bring
stuff into the U.S. also go back empty. So, that soap was
transported at the price of zero dollars because we were
offering this value proposition for the transporters.
So our supply chain was based on this cleverness, which
we carried through all the way. That is my mantra: Before
you put money out to solve a problem, ask yourself if you
are being creative about it, if you are being clever about
it. Money can be spent all the time, but you dont have
to spend money all the time. Sometimes the only way to
understand that is by being very poor and knowing that
you do not have the money to spend.
Rennie: What do you see as the GSPs greatest
accomplishments?
Kayongo: Weve reduced sanitation diseases by 40
percent we did that in Malawi, for example. But,
more importantly, we also have changed peoples
mindsets about waste. Hotels are not in the business
of recycling; theyre in the business of giving you a
beautiful room and a beautiful experience. But we put
more value to their work. Now they can be proud of
saying to their clients, When you leave this hotel,
youre not going to leave trash behind and affect the
environment, and were even using the trash you give
to empower other aspects of our humanity.
Rennie: What advice do you have for supply chain
management professionals particularly young
professionals hoping to make their work as meaningful
as possible?

apics.org/magazine 29
From
SO A P HOPE to
Kayongo: Do your work. Do it very well. Be clever
about things. You dont always have to use the most
expensive solution to every problem. Weve proven that
thats wasteful. You see corporations spending a lot of
money to solve a very simple problem. Why? Because
they dont spend time in thought processes; they dont
spend time in rewarding those employees out there who
are quiet but are very, very smart, and they dont have
time to play the office politics. They are not very vocal,
but they are very smart, and we overlook them.
Nobody knew that a small Ugandan boy would come
to the U.S., which is very loud and very noisy, and
invent an idea of recycling used soap to the tune of 10
million bars of soap every year from more than 5,000
hotels. We are providing that soap to people all over
the world, and their diseases are going away. So, never
underestimate the power of small ideas in the mar-
ketplace. They are the key to gargantuan, Herculean
problem-solving.
Rennie: Tell me about the work that youre doing today
as the CEO of the Center for Civil and Human Rights.
Kayongo: I usually say that the key to mathematics
is multiplication tables. If you can multiply, it is easy
to do math because then you can do fractions; you
can do division. The key to chemistry is the periodic
table. If you dont know the periodic table, its very
hard to understand compounds and gases and all that
30 September/October 2017
stuff. The key to human beings, the key to humanity,
is rights. If human beings dont have rights, its hard
for them to create and build and construct and expand
the marketplace. So, for me, as a child who had lost his
rights because of Idi Amin and war, I looked at how
human beings can actually destroy a whole country,
destroy its marketplace, destroy its businesses, destroy
its economy. The key to why people dont have soap is
because we abuse their rights, we destroy their coun-
tries, we destroy their lives by taking away their rights.
So, by coming to the Center for Civil Human Rights,
I am trying to do for humanity what multiplication
tables do for math: get to the root cause.
Rennie: What do APICS 2017 attendees have to look
forward to during your keynote speech?
Kayongo: You know, one of the things I want them to
think about is what makes a good business. Is it how
wealthy you are? Is it how good your idea is? Beyond
good business and all of those ideas, I want them to
think about understanding the importance of human-
ity and the role of their work in serving humanity. If
you just think money is the only reason why you do
business, you are doing the wrong thing, and eventu-
ally it becomes so disinteresting that you dont get the
full value behind it.
I also want them to understand the power of
freedom in business. Its very, very hard for you to
be successful if [the country you do business in] has
poor policies. Being a socially involved business in
your community creates more opportunities for people
to remember who you are and, therefore, they always
subscribe to your business. Its easy to get clientele by
being involved in the community and that doesnt
mean fake involvement. You dont just come in there
and do fake stuff and say, Oh, were going to build a
little school here. No, it has to be at the core of your
mission statement. Youve got to really live it.
Elizabeth Rennie is senior managing editor for APICS
magazine. She may be contacted at editorial@apics.org.
To comment on this article, send a message to feedback@apics.org.
apics.org/magazine 31
 DEMOLISH
SILOS
IN TOTAL QUALITY MANAGEMENT
By Victor E. Sower, PhD, CQE; Kenneth W. Green Jr., DBA;
and Pamela J. Zelbst, PhD, PMP

32 September/October 2017
S upply chain managers know that the integrated nature of 21st
century supply chains requires the breaking down of operational
silos to build a connected, effective entity. Different players
within the supply chain must be aware of each others functions and
activities and how these connect to their own roles. In this way, the
entire supply chain can ensure that it is working toward a common
goal and cooperating on the best way to reach it.

Similarly, when integrating total quality manage-
ment (TQM) with supply chain strategy, supply chain
professionals must connect all of the components of
the strategy to ensure that it is as successful as possible.
TQM is a management approach that seeks long-term
supply chain success through customer satisfaction,
and, appropriately, it happens to be about breaking
down silos among individuals. According to the APICS
Dictionary, TQM is based on the participation of all
members of an organization in improving processes,
goods, services and the culture in which they work.
In order to maximize effectiveness, though, the entire
supply chain and not just the individual members of
an organization must embrace the system plan and
fully participate in improvement efforts. This bridges
TQM which focuses on the immediate customer
and supply chain management strategy which
focuses on satisfying the ultimate customer.
Along the same lines, research suggests that the inte-
gration of TQM and supply chain management strategy
will strengthen the organizational competitiveness of a
supply chain and improve customer satisfaction. This is
because TQM is a vehicle for making sure the voice of
the customer is incorporated into strategy.
THE TEAM TRIFECTA
The three components of TQM also must work with each
other to produce a successful supply chain management
strategy. In their article Relationship between JIT and
TQM: Practices and Performance, researchers Barbara B.
Flynn, Sadao Sakakibara and Roger G. Schroeder suggest
that there are three core dimensions to TQM:
1. Customer focus encourages the inclusion of cus-
tomer needs and assesses the organizations success in
meeting them.
2. Product design focuses on product improvement
by designing for efficient and reliable engineering
and manufacturing, incorporating interfunctional
design efforts, and focusing on new product quality.
This also involves trial runs, extensive prototyping
and rounds of design modifications prior to releas-
ing the final product.
3. Statistical process control (SPC) is the use of sta-
tistical data charts to inform operators, which enables
them to better handle the variability of the manufac-
turing process.
If these three facets each operate in a silo, they cannot
contribute as much of a competitive advantage to a
supply chain management strategy. One might expect
that incorporating the voice of the customer in strategy
would result in the formulation of better strategic plans
and provide feedback about the effects of those plans
as they are implemented. However, this often is not the
case. Researchers at Sam Houston State University in
Huntsville, Texas, and Southern Arkansas University in
Magnolia, Arkansas, found that, when connecting TQM
and supply chain management strategy, customer focus
alone does not sufficiently provide the actionable infor-
mation necessary to drive the methodology.
However, when product design and SPC are added as
intermediaries, actionable information is produced to
inform supply chain management strategy, the research-
ers note. The relationship between customer focus
and product design is straightforward: It is essential to
consider the voice of the customer when creating a new

apics.org/magazine 33
 DEMOLISH SILOS
IN TOTAL QUALITY MANAGEMENT
product or service in order to ensure that it meets cus-
tomer needs. Product design transforms the voice of the
customer from raw data into actionable insights about
whether customer needs are being met.
The relationship between customer focus and SPC
requires a deeper look. Although SPC can effectively
assess the state of process control with no need for
customer input, it is impossible to assess how well the
in-control process meets customer needs without
knowing what the customer requires.
Consider that a variation in quality can result
in rejected product, which in turn causes delayed
shipments, missed deadlines and increased expenses.
If the defective product is detected after shipment,
companies have to factor in extra transportation and
disposition costs as well as customer dissatisfaction.
If the defect is not detected, additional liabilities
may be incurred when the product fails the ultimate
customer in the supply chain. SPC can transform the
voice of the customer from customer focus to in-control
processes that are centered on customer requirements
and quality control. In this way, customer focus pro-
vides the raw data for SPC, which transforms these
Product
design
Customer
focus
Statistical
process
control
Figure 1: Relationships among the three components of TQM and supply chain management strategy
34 September/October 2017
insights into actionable data for supply chain manage-
ment strategy.
The combination of these three components of
TQM informs a successful supply chain management
strategy and helps ensure that the ultimate customer is
properly served.
THE RISKS OF SKIPPING TQM
Unfortunately, empirical research shows that not many
companies focus on TQM or supply chain management
strategy, and even fewer integrate all of the components
of TQM with that strategy. This begs the question, Are
these approaches necessary?
Consider the cautionary tale of Toyota Motor Corp.
In the 1990s, Toyota was a leader in the TQM space.
The automaker encouraged its suppliers to adopt TQM
methods so that all members of its supply chain could
focus on ultimate-customer satisfaction. This emphasis
on continuous improvement helped the company build
its market share.
However, prior to 2010, Toyota changed its approach
to focus on quantity instead of quality in an attempt to
Supply chain
management
strategy
become the worlds number-one automaker. By early
2010, the company had recalled 5.3 million vehicles,
its U.S. sales dropped 16 percent in the first month of
2010, and its stock lost $21 billion in value in a single
week, according to the Time Magazine article Toyotas
Flawed Focus on Quantity Over Quality. The recalls
were spurred by a problematic floor mat that could
slip and cause the gas pedal to stick and an issue with
the gas pedal mechanism itself, both of which could
cause dangerous and unexpected acceleration. The
article author, Bill Saporito, reports that these issues
also spurred legal trouble for the company, including a
class-action lawsuit, fines from the U.S. Department of
Transportation and a public admonishment from then
U.S. Secretary of Transportation Ray LaHood noting
that consumers should stop driving Toyotas.
Akio Toyoda, president of Toyota, explained the
issue to the U.S. Congress in February 2010: Toyota
has, for the past few years, been expanding its busi-
ness rapidly. Quite frankly, I fear the pace at which
we have grown may have been too quick. I would like
to point out here that Toyotas priority has tradition-
ally been the following: first, safety; second, quality;
and third, volume. These priorities became con-
fused, and we were not able to stop, think and make
improvements as much as we were able to before,
and our basic stance to listen to customers voices
to make better products has weakened somewhat.
We pursued growth over the speed at which we were
able to develop our people and our organization, and
we should sincerely be mindful of that. I regret that
this has resulted in the safety issues described in the
recalls we face today.
Following these issues, Toyota decided to return to its
TQM and supply chain management strategy approach,
but the rebuilding has been difficult and taken some
time. Seven years later, J.D. Power and Associates ranked
Toyota 13th overall in initial quality. This experience
showed Toyota, and those who follow its story, that
TQM is crucial. Now, implementation of supply chain
management strategy, enabled by the three components
of TQM, may be the companys best hope of regaining
its former position in the marketplace.
Rival automaker Hyundai resolved to learn from
Toyotas lesson and in 2012 announced that it was going
to focus on quality instead of sales numbers, according
TQM is a vehicle for
making sure the voice
of the customer is
incorporated into strategy.
to Financial Times. Today, J.D. Power and Associates
ranks it sixth overall in initial quality.
As customers and consumers expect higher-quality
products and excellent customer service, its imperative
to integrate TQM into supply chain strategy, not silo it
and make it a lower-priority item. As these anecdotes
show, the consequences of skipping quality controls hurt
business and brand reputation, which is counterpro-
ductive to efforts to satisfy the end consumer. Instead,
companies must heed and incorporate the voice of
the customer from the start and weave it into the core
aspects of TQM to support a strategy that will ultimately
meet the consumers needs.
Victor E. Sower, PhD, CQE, is a distinguished professor
emeritus of management at Sam Houston State University in
Huntsville, Texas. He may be contacted at sowerv@shsu.edu.
Kenneth W. Green Jr., DBA, is the LeMay professor of manage-
ment at Southern Arkansas University in Magnolia, Arkansas.
He may be contacted at kwgreen@saumag.edu.
Pamela J. Zelbst, PhD, PMP, is a professor of supply chain man-
agement and the director of the Sower Business Technology
Laboratory and the Center for Innovation and Technology
at Sam Houston State University. She may be contacted at
mgt_pjz@shsu.edu.
To comment on this article, send a message to feedback@apics.org.
apics.org/magazine 35
 REINVE
THE PRODUCTION

36 September/October 2017
E NTING
SCHEDULING

WHEEL
By Peter L. King, CSCP; Alan H. Nal; and Jaci Souza

apics.org/magazine 37
REINVENTING
THE PRODUCTION SCHEDULING
WHEEL
F
or supply chains to be fully effective,
manufacturing links must be stable, pre-
dictable, agile and responsive. One way to
accomplish these goals is with product
wheels. These scheduling tools organize
the variety of products made on any asset in order
to optimize campaign lengths and sequences and
therefore improve throughput and customer fill rate
while reducing cost and inventory.
Product wheels can be applied to a major piece of
process equipment for instance, a resin reactor, a paint
mixer, a polymer extruder or a ketchup homogenizer
or to an entire line, such as one for shampoo bottling or
potato chip packaging. With product wheels, production
is arranged in fixed, repeatable cycles to provide stability
and predictability. Likewise, the overall cycle time is fixed
based on business priorities. For example, if the business
strategy is to be agile and responsive, very short wheels
can be designed. If cost is the main driver, wheel cycle
time can be based on the optimum balance between
changeover cost and inventory cost.
With product wheels, high-volume products are made
every cycle, and lower-volume products may be made
End of Wheel Time
One Cycle
Product A
Breathing
Room A Inventory goes down and is closer to the desired mix,
H Changeover
G Overall lead times are reduced, which makes the man-
Batches
B the supply chain.
F The repeatability and predictability enable better long-
Campaign
E (spoke)
C
D
Changeover
Figure 1: Sample product wheel
38 September/October 2017
every second or fourth cycle. The point is to make each
product only as frequently as the run length will justify
the changeover.
Product wheels are designed from forecasts, but actual
operation centers around lean consumption-based
replenishment (in other words, pull). Therefore, on
any specific cycle, some campaigns (or spokes) will be
larger than designed and some smaller. At these points,
the wheel is said to breathe. Although the pluses and
minuses will generally balance each other out, its wise
to design some extra breathing room into each cycle to
allow for cycles that have more increases than decreases.
(See Figure 1.)
Make-to-order (MTO) products can coexist with
make-to-stock products on the same wheel. When
ordered, MTO items are produced at a predetermined
slot on the wheel where they are most compatible
with their neighbors. The sequence is fixed for each
cycle and designed to give the shortest or least expen-
sive path through all the products to be made on a
particular cycle.
The benefits of product wheels generally include
the following:
Changeovers are simplified because fewer parameters
must be adjusted.
By setting the ideal cycle frequency for lower-volume
products, the total number of changeovers is reduced.
Overall equipment effectiveness and throughput
capacity increase.
Production is leveled, eliminating peaks and valleys
in the schedule.
so customer delivery performance (fill rate) goes up.
Overtime goes down. In some cases, lines are com-
pletely idled.
ufacturing operation a more responsive, agile link in
range supply chain planning.
Scheduling chaos and churn are reduced or eliminated.
The product wheel
concept in action
Nutraceutical manufacturer Natures Bounty has sig-
nificantly improved throughput at one of its packaging
sites by using a product wheel scheduling optimization
Grouping the products run on a line
dramatically reduced the number of
bottle sizes the most time-consuming
changeover parameter.
process. The increased throughput enables the business
to run all needed products on 20 percent fewer packaging
lines, is saving 15 percent in direct manufacturing labor,
and has made scheduling more stable and predictable.
Impressively, all of this was achieved with no capital
investment. These successes have driven Natures Bounty
to apply product wheels to other packaging sites and
move the concept upstream to manufacturing as well.
Natures Bounty is a global manufacturer with $3 bil-
lion in annual sales. The company has six plants in North
America where tablets, capsules and gelcaps are manufac-
tured and four packaging operations. Company leaders
first decided to apply product wheels to the Deerfield
Beach, Florida, packaging site to improve scheduling
stability, line operability and overall equipment effec-
tiveness. They engaged value chain solution provider
Zinata to teach them the product wheel methodology,
guide them through design and implementation, and
coach them through the initial operation.
Because a main feature of product wheels is the opti-
mization of changeovers, Natures Bounty professionals
first needed to understand what parameters would vary
on a changeover. They found as many as 14 possibilities,
including bottle diameter, height and color; cap type;
allergen content; whether the item is retailed as individ-
ual bottles or bundled in pairs or triples; and so forth.
A spreadsheet of all 700 products and their relevant
parameters was created to organize the variety.
With that understanding, it was possible to group all
products into families with similar changeover char-
acteristics and then allocate each family to a specific
packaging line. With guidance from a team leader, a
planning manager and a setup mechanic, the change-
over parameters were listed in order of difficulty and
then grouped. Natures Bounty found that grouping
the products run on a given line dramatically reduced
the number of bottle sizes the most time-consuming
changeover parameter and contributed several
points of overall equipment effectiveness improvement.
On Line 4, for example, which had traditionally run as
many as 10 bottle sizes a month, only two sizes are run
now that the product wheel schedule has been imple-
mented. Line 9 had been running seven sizes and now is
down to one, so it no longer experiences a size change or
any of the rail and height modifications that normally
would accompany that.
The next step was to determine the overall cycle time
for the lines. In a plant with several lines, each can run
a different overall cycle if the product volumes and
other considerations warrant it. In this case, the cycle
times were set so that the higher-volume products on
a line would run an eight-hour campaign per cycle (or
something close to that). Of the running lines, one had
a one-week wheel, several had two-week wheels, and a
few had four-week wheels.
Then, Natures Bounty professionals designed each cycle.
If a line runs its higher-volume products on a one-week
A Bounty of
Scheduling Advances
Since implementing product wheels at Natures
Bounty, schedulers are enjoying considerable
progress. Because they now receive a workbench
of orders to be packaged over two-week periods
each Monday, they have eliminated the need to
process individual order-by-order tasks. They also
have found that they no longer need a massive
mental library of key information. Working with a
set of orders as a group and then scheduling
each line to the product wheel as a whole
means that 90-95 percent of orders require
no adjustment when entering a line. It also
leaves more time for them to handle exceptions,
emergencies and improvements.
apics.org/magazine 39
REINVENTING
THE PRODUCTION SCHEDULING

WHEEL

cycle, its medium-volume products every second cycle
and its lower-volume products every fourth cycle, then
there are four unique cycles on that line, which all repeat
every four weeks.
Optimizing the sequence of each cycle came next.
The objective was to group products by similar charac-
teristics to minimize the number of aspects that needed
to be adjusted on any changeover.
Taking another look at Line 4: It was noted that this
line has two bottle sizes: 400 cubic centimeters (cc) and
500 cc. To simplify changeovers, the 400 cc bottles were
grouped together, and the 500 cc bottles were grouped
together. The cycle started with the 500 cc bottles
because the setup mechanics found it easier to recon-
figure the line to adjust from larger to smaller bottles.
Next, bottle types were grouped because their different
forms require a slight rail adjustment. Bottle colors were
next, with sequencing priority size, type, desiccant,
color and so on determined by the team leader, plan-
ning manager and setup mechanic.
When determining the overall wheel cycle time and
frequency of the lower-volume products, the main goals
were reasonably long campaign lengths and avoiding
excessive inventories. Natures Bounty professionals
worked to determine each product campaign, deciding
if it would run monthly, biweekly or weekly. To ensure
that the product wheel can realistically be followed,
all run times are based on demonstrated run rates and
current line overall equipment effectiveness factors.
In the end, the results at Natures Bounty were striking.
The planning and scheduling professionals have found
the new process to be much more stable and predictable

APICS EXTRA LIVE WEBINAR

Maximized Scheduling at Natures Bounty
with the Product Wheel Accelerator
Presented by: Date:
Alan H. Nall October 26, 2017
Principal Consultant Time:
Zinata 1 p.m. Central
Peter L. King, CSCP
Founder and President, Lean Dynamics
Principle Consultant, Zinata
Attend this APICS Extra Live webinar to discover how nutraceutical manufacturer Natures Bounty developed macro-based
tools to enable the simple, straightforward use of scheduling product wheels. The presenter will illustrate how the product
wheel accelerator
n supports a superior scheduling process by integrating product wheel concepts and parameters with enterprise
resources planning systems
n enables planners and schedulers to simplify tasks by scheduling in groups, making key information more visible
n provides access to more accurate and useful data, giving better supply chain visibility
n can become a key resource for rapid decision-making.

Register at apics.org/extralive.

40 September/October 2017
because most of the production now follows standard
patterns. This provides more time to focus on rush
orders and other disruptions and thus can enable better
decision-making. The product wheels led to an overall
equipment effectiveness uptick of 12 points, which rep-
resented a 34 percent increase in throughput. As noted
previously, it now is possible to get the same production
from 20 percent fewer packaging lines, which saves 15
percent in direct manufacturing labor costs. Best of all,
these savings were realized simply by optimizing sched-
uling processes.

Peter L. King, CSCP, is founder and president of Lean

Dynamics and a principle consultant at Zinata. Previously,
he spent 42 years at DuPont focusing on the development
and application of lean concepts to process manufactur-
ing and global supply chains. King may be contacted at
peter.king@zinata.com.

Alan H. Nall is a principal consultant with Zinata, specializing

in manufacturing improvement and program and project man-
agement. He formerly worked at Eli Lilly, Procter and Gamble,
and DuPont. Nall may be contacted at alan.nall@zinata.com.

Jaci Souza is a packaging director working in integrated

business planning at Natures Bounty. Prior to that, she
was a packaging manager. She may can be contacted at
jsouza@nbty.com.

To comment on this article, send a message to feedback@apics.org.

Authors Peter L. King, CSCP, and Jaci Souza will

present Wheel of Fortune: Operational Benefits
of Product Wheel Scheduling at APICS 2017 this
October in San Antonio. To learn more and register
for the conference, visit apicsconference.org.

Attend the APICS Extra Live webinar Maximized

Scheduling at Natures Bounty with the Product
Wheel Accelerator to learn more about the Natures
Bounty case study and discover how the team imple-
mented a macro-based product wheel accelerator
to take the solution even further. Register today at
apics.org/extralive.

apics.org/magazine 41
 EVOLVED OPERATIONS ENABLE PROGRESSIVE

SUPPLY CHAIN
MANAGEMENT
By Michael D. Ford, CFPIM, CSCP, CQA, CRE, CQE, CPSM

Most professionals will agree that a standardized

approach to supply chain management should produce
high volumes of a standardized product. However, this
often results in localized optimization, where a particular
node in the internal or external supply chain is driven
toward behavior that causes pain upstream or
downstream. This method also fails to address
customers desires for flexibility in terms of product
variety. Companies and consumers alike expect special
treatment, but a historical high-productivity business
model is too rigid to accommodate this. To best meet
market demands, the supply chain field needs a more
evolved operations tactic.

42 September/October 2017
apics.org/magazine 43
 Customers first
In todays high-customization marketplace, the main
objective of each employee, department, division and
corporate entity needs to be customer satisfaction.
Although the approach to this will differ based on
industry segment, organizations should strive to pro-
vide the nine Rs:
The perfect shipment includes the right quantity
and right quality of the right item.
The perfect delivery arrives at the right time to the
right person at the right place.
The perfect customer experience includes the right
price, the right documentation and the right level
of customer service.
Achieving the nine Rs likely will require changes in
workplace culture as well as how each functional area
operates and measures performance. Consider the
following examples:
Production activity
Traditional approach: Production floor activity
strives for high productivity, typically defined as high
utilization rates. This approach results in overpro-
duction, lack of attention to the production schedule
and an indifference to quality. For example, operators
may cherry-pick the easier orders, such as projects
that have a quick setup process or include long pro-
duction runs, to improve piece-count performance.
Workers also may delay machine maintenance to
avoid downtime, which often leads to breakdowns
that result in longer, more expensive, unplanned
periods of downtime.
Evolved approach: Instead, production employees should
focus on adhering to the production schedule, producing
quality items and satisfying the needs of downstream
operations. If a work center is inactive, then operators
there should concentrate on preventive maintenance,
activities related to the five Ss or quality initiatives or
offer assistance to centers with too much work.
Production control
Traditional approach: Many of the traditional metrics
used to measure production control are dysfunctional.
For example, the number of exception messages is
believed to gauge how well a planner handles emer-
gency situations. The reality is that this may ref lect
that a planner ignored a planned order release mes-
sage, resulting in an expedited order in the material
44 September/October 2017
requirements planning (MRP) system. Similarly, eval-
uating planners in terms of the number of MRP order
releases could create a disincentive to reclassify items
as floor stock and more easily control them via order
point, kanban or the two-bin system.
Evolved approach: Allow planners to do their job:
planning (not expediting). In addition, planners
should strive toward lean approaches, such as pull sys-
tems, that do not require the excessive administrative
efforts associated with documented work orders.
Inventory management
Traditional approach: One dysfunctional metric asso-
ciated with warehouses is space utilization. This metric
merely drives an incentive to fill up the stockroom
with excess inventory. Another is number of items
outsourced, which encourages planners to outsource
as many items as possible. Without seeing the total
picture, this metric can drive up lead times and result
in a warehouse stuffed with inventory.
Evolved approach: Inventory management has
opportunities to streamline stockroom operations
while improving customer service and reducing costs.
Instead of focusing on pick rates, companies should
work toward delivering the perfect order. In addition,
improvements in record accuracy, or the right quantity
of the right item in the right location, will enable a
business to reduce stock levels, as planners and buyers
can be assured that the system quantity is correct. This
also will reduce the need for just-in-case inventory.
Marketing and sales
Traditional approaches:
1. The historical tactic of marketing and sales pro-
fessionals is to have everything available for sale:
infinite quantities, options, colors, packaging sizes
and so on. The customer promise is that every item
is available for immediate shipping. However, the
reality is that 100 percent customer service is an
unrealistic objective. The costs associated with such
a target could drive a company out of business.
2. Sales teams usually focus on generating revenue.
3. The optimal sales approach is to work toward beat-
ing the forecast. However, companies that reward
salespeople for doing this are providing a financial
incentive to create low-ball forecasts, which could
result in not enough supply of purchased goods,
floor capacity, cash flow and other assets.
 Right
Quantity
PERFECT
SHIPMENT
Right Right Right
Item Quality Place
Figure 1: The Nine Rs.
Evolved approaches:
1. A more reasonable goal recognizes the trade-offs
associated with 100 percent customer service versus
inventory holdings, overtime, air freight expediting
and other costs.
2. Sales teams should focus on generating profit.
3. The goal for sales teams should be focused on meet-
ing the forecast, as there are drawbacks to being over
or under forecast.
Procurement
Traditional approach: The traditional metric of
number of vendors per buyer is thought to measure
a purchasing agents workload. However, this instead
provides a disincentive toward reducing the supplier
base. Similarly, measuring the number of purchase
orders placed or the number of purchase order line
items is a disincentive toward blanket releases or
annual purchase agreements. Third, purchase price
variance is a metric that can inspire volume when
the solution is to purchase in bulk to obtain a lower
price. However, this can result in excessive inventory
holdings, which may incur revision change, technical
obsolescence or shelf-life depreciation. In the end,
any so-called savings from a bulk purchase result in a
higher total cost.
Evolved approach: Procurement should focus on
strategic partnerships and long-term relationships with
a focused supplier base. Rather than beating up vendors,
purchasing professionals should view them as partners
and work with them. In addition, an emphasis should be
put on satisfying internal customers, such as the receiving
department and colleagues on the shop floor, by ensuring
that the right goods arrive at the right time. Happy inter-
nal customers create happy external customers.
Right Right
Time Price
PERFECT PERFECT
DELIVERY EXPERIENCE
Right
Right Right
Customer
Person Documentation
Service Level
Engineering
Traditional approaches:
1. The engineering department typically focuses on
product inspection and working with the shop
f loor to develop statistical process control. This
sometimes results in focusing on quality during the
inspection stage, rather than earlier in the process.
2. The tradition is to set time standards on engineer-
ing, but this encourages employees to speed up their
work and does not recognize the wide variability of
working paces among employees.
Evolved approaches:
1. Engineers should focus on building quality into a
process. In addition, they should avoid excessive
design changes. Engineers also should employ the
house of quality method to ensure that all product
attributes are directly translated from customer
requirements. A concurrent engineering team with
cross-functional representatives from purchasing,
finance, production and sales could help reduce
time to market for new product introductions
and ensure that products are designed for efficient
sourcing, manufacturing, assembly, transportation
and reverse logistics.
2. Companies should move toward an enhanced
approach that focuses on attaining a rate-based
schedule tied to marketplace demand, rather than
one centered around standards and utilizations.
Accounting
Traditional approach: Accounting teams have a tendency
to apply a number of financial metrics to manufacturing
operations. The financial concept of full costing or absorp-
tion costing is one such self-defeating metric, although
it still is considered a generally accepted accounting
apics.org/magazine 45
 AN OPERATIONS IMPROVEMENT CASE STUDY
A regional distribution center in upstate New York supplies
goods to retail outlets throughout the state. This particular dis-
tribution center largely consists of labor operations, and there
is minimal use of automated storage and retrieval systems. As
a result, the company had focused on achieving low costs and
driving productivity through the hard work of its employees.
Distribution center leaders strictly defined the workforce
as follows:
Receivers, who unload trucks and put away products, were mea-
sured by individual performance in terms of receipts per hour.
Order selectors, who pick products for customer orders, were
measured by cases picked per hour.
Loaders, who load orders onto trucks, were measured by the
number of cases loaded per hour.
Management believed such individual performance metrics
would motivate employees to be productive, which, in turn,
would result in lower costs. However, these metrics actually
drove up operational costs. Products were put away in the wrong
locations simply due to the fact that receivers were in a hurry.
Plus, because they were measured by volume, these profession-
als would put away an entire truckload of a product that was
already in stock, ignoring a pallet of a previously out-of-stock
item because prioritizing this item type would hurt their rates.
The effect was similar on selectors, who, as a result of their
goal metrics, would pick the wrong product or wrong quantity.
Loaders would hastily throw cases onto trucks, resulting in dam-
age. If an error was caught before a truck left the distribution
center, loaders would have to rework the load, which resulted in
late shipments and deliveries.
Upon noticing these effects, managers called for a meeting of
all warehouse personnel to discuss the quality issues of missed
picks, damage and customer returns, which had totaled $2.8
million in a single fiscal quarter. A consultant suggested getting
rid of the individual performance metrics, which were driving
the wrong behavior. One manager replied that if they stopped
measuring picks per hour, they would go out of business. The
consultant immediately retorted, You mean to tell me youd go
out of business if you didnt have $2.8 million in quality losses
every quarter?
The solution to this challenge is to have the distribution
center hone in on the nine Rs of a perfect order. If a business
can ensure that the right quantity and the right quality of the
right item are delivered to the right person at the right place
and the right time for the right price and with the right docu-
mentation and right level of customer service, then customers
will be satisfied.

principle. This technique amortizes all overhead
costs both fixed and variable among the items
produced within an accounting period, resulting in
overproduction to reduce overhead per unit cost.
Evolved approach: For internal decision-making,
the lean approaches of ABC, throughput or variable
accounting allocate variable costs to units produced
but consider fixed overhead to be an expense in
the time period. This recognition of fixed costs as
occurring regardless of production levels eliminates
the incentive to overproduce.
Management
Traditional approach: Management traditionally
follows a top-down structure filled with layers of
bureaucracy. This often results in
costly middle management activities that do little
to add value
decision delays due to excessive meetings
and committees
a disconnect between management, operations
and the marketplace
communication barriers among functional areas.
Evolved approach: A flat, horizontal management
structure can empower employees. Managers then
adopt a bottom-up philosophy of supporting workers
by ensuring they have the resources they need. A sign
that this approach is successful is when a manager can
take a two-week vacation without needing to check his
or her email every five minutes. Although some people
could feel threatened by this, enlightened professionals
recognize that they have followed the right path. Allowing
employees to handle their own workloads enables manag-
ers to focus on higher-level strategic activities.
The evolving world of supply chain management will
result in a more holistic, integrated focus on serving
customers profitably while reducing overall costs. The
best approaches ensure that employees, departments
and organizations are rewarded based on their contri-
butions to the performance of the entire supply chain,
rather than adherence to seemingly arbitrary metrics.
Michael D. Ford, CFPIM, CSCP, CQA, CRE, CQE, CPSM, is
principal of TQM Works Consulting and an adjunct professor
at Penn State University. He specializes in delivering training
that he describes as edu-taining and has presented more
than 5,000 hours of training via classroom instruction,
workshops, seminars, webinars and conference sessions
across the United States, Canada, Nigeria and South Africa.
Ford may be contacted at michaeldford@earthlink.net.
To comment on this article, send a message to feedback@apics.org.

46 September/October 2017
INSPIRE THE NEXT GENERATION OF SUPPLY
CHAIN PROFESSIONALS
With the help of volunteers like you, we can beat the future supply chain talent shortage. This
program engages K-12 students with science, tech, engineering, and math concepts plus supply
chain management. It also demonstrates the promising career paths available.

HELP US REACH OUR GOAL: Over 100,000 students by 2020 through the Supply Chain STEM
Educational Outreach Program.

Get involved: apics.org/stem

apics.org/magazine 47
48 September/October 2017
Editors note: As 3D printing
continues its shift from prototyping
tool to an actual means of production,
forward-thinking manufacturers are looking
for ways to incorporate the technology into
their workflows. Doing so requires software and
management solutions that can handle a wide variety
of 3D printing processes.
SAPs 3D printing software, SAP Distributed
Manufacturing, enables digital transformation across
the extended supply chain. The solution helps users
connect with 3D printing companies, original equipment
manufacturers and related service providers.
Importantly, the software also helps determine when its
appropriate to use 3D printing in an operation and when
traditional production makes more sense.
Gil Perez is the senior vice president of digital assets
and internet of things at SAP, where he is responsible
for the development and commercializing of a range
of SAP tools. APICS magazine Senior Managing
Editor Elizabeth Rennie recently interviewed
Perez to learn more about 3D printing and
how its influencing supply chain
professionals globally.

apics.org/magazine 49
 WHERE 3D PRINTING A
 ND M
 AINSTREAM
MANUFACTURING CONVERGE

Gil Perez
Senior Vice President, Digital Assets and Internet of Things
SAP

Rennie: How would you describe the current state of

3D printing technology?
Perez: 3D printing is rapidly becoming cost effective.
That plus more consistency in quality means its emerg-
ing as a viable alternative to traditional manufacturing.
Were currently in a transition from prototyping to
mainstream industrial, which is why SAP has been so
focused on this area. In fact, by 2020, the 3D printing
market is expected to hit $21 billion, marking a 187
percent growth rate compared with 2016.

Rennie: How is the transition to digital manufacturing

changing the rules of the game in supply chains around
the world?
Perez: Were in an evolve-or-die market.
Companies need to adapt to changing customer
demands to grow their businesses. Being constrained
by an inflexible supply chain or outdated manufactur-
ing processes will prevent them from thriving in our
increasingly customer-centric world.

Rennie: How is 3D printing leading to positive

results for SAP clients? Can you share some real-
world examples?

50 September/October 2017
 3D PRINTING PRIMER
According to the APICS Dictionary, 3D printing, also known as additive manufacturing, is the
process of layering materials to make products and components using computer data. 3D
printing begins with a virtual model typically made using computer-aided design or a 3D
scanner of the object that is going to be produced. Then, the design is prepared for printing
using a process called slicing. This separates the 3D model into hundreds or thousands of
horizontal layers. Each one is like a slice of the finished object. The thicker the layers, the faster
the builds. Products with thinner layers take longer to make, but these types of layers produce
finer resolution and layer lines. Thickness is governed by the material, the desired resolution of
the finished project, the technology being used and the project timeline. Some printers melt
materials plastics, rubber, sandstone, metals or alloys and lay them onto the print
platform. Some use lasers to selectively melt materials at high temperatures. Once a part is
sliced, then it is oriented for build. It gets fed into the 3D printer, which reads each 2D slice and,
finally, produces the 3D object.

Perez: In the aerospace and defense field, companies are
using 3D printing to manufacture various items from
aircraft seats to fuel engine nozzles. Moog is leading
the way with 3D printed metal parts for the aerospace
and defense industry. The innovative parts are reduc-
ing airplane weight and lowering fuel costs across the
board. UPS is collaborating with SAP to expand
service offerings to [be] a logistics, transportation, and
3D-printing and on-demand manufacturing provider.
Jabil Circuit, which is a U.S.-based global manufacturing
services company, is using SAP [tools] to understand
the cost, supply chain dependencies and availability
to manufacture 3D printed parts versus going with
traditional manufacturing. The [leaders] are devel-
oping a distributed, on-demand manufacturing service
of certified parts and rightsizing their connected digital
supply chain across the companys 120 manufacturing
plants globally. This is creating new efficiencies and cost
savings as well as allowing Jabil to accelerate the growth
of a new business unit focused on 3D printing.
Rennie: What lessons are these clients learning about
3D printing along the way?
Perez: First off, its important for manufacturers to under-
stand that not every asset should be 3D printed. From a
technical perspective, not all 3D materials are printable.
Some polymers arent even available in 3D printing mate-
rials. Further, larger parts or things that require detailed
craftsmanship cant be printed for logistical reasons.
Rennie: As 3D printing moves beyond industrial
prototyping to larger-scale manufacturing processes,
what are the most important developments and trends
for supply chain professionals to monitor?
Perez: Theres a rapidly increasing demand for per-
sonalized products. People dont want to just buy a
pair of shoes; they want them customized and deliv-
ered to their doorsteps in a timely manner. Were at a
time when people expect immediate gratification and
efficiency when making a customized purchase. If its
going to take several weeks to receive the product, they
just wont buy it. 3D printing enables businesses to
deliver custom products and to respond to consumer
demand for faster delivery of customized products.
As 3D printing continues to move into mainstream
manufacturing, it is going to significantly stream-
line supply chains. Connecting 3D printing to the
manufacturing line can dramatically improve speed
and efficiency [and] help manufacturers optimize
production, achieve cost savings and reduce complex
issues within the extended supply chain. Its enabling
companies to have a truly distributed manufacturing
model. There have been a lot of advancements in 3D
printing in the shoe industry specifically. In the 2016
Rio de Janeiro Olympics, sprinter Allyson Felix wore
Nikes Zoom Superfly Flyknit track and field shoes,
which were 3D printed specifically for her feet. After
several iterations, the finished product was precisely
contoured to her exact size and running stride.

apics.org/magazine 51
 WHERE 3D PRINTING A
 ND M
 AINSTREAM
MANUFACTURING CONVERGE
Businesses should monitor trends like this that are
making national news and influencing what consumers
expect from goods.
In fact, global footwear production and consump-
tion trends are continuing to increase. Yet, at the
same time, we are seeing a decline in the production
of footwear in China. And where is the production
going? To a long list of countries India, Brazil
and many more. The driving force for this shift is an
optimization of the supply chain and inventory levels
and also customer needs for personalization and the
immediate gratification of same-day delivery.
So, this overall shift in consumer footwear is not
driven by 3D printing only, yet it is accelerating the shift
and will become a key enabler across multiple industries.
Rennie: Do you think a 3D printer will ever be
able to perform on a level that can compete with
mass production?
Perez: 3D printing cannot compete with mass pro-
duction, but thats not the intention. Mass production
will always be there, but were going to start seeing
Connecting 3D printing to
the manufacturing line
can dramatically improve
speed and efficiency.
more hybrid solutions. For example, you might get a
mass-produced laptop but have its outer shell custom-
ized to your liking. Were looking forward to seeing
more companies finding synergy between the two. So,
if youre making up to 1,000 parts annually, it makes
sense to evaluate 3D printing. But if youre making
more than that, youll want to mass produce.
Rennie: So, if 3D printing is giving manufacturers new
production options and giving customers more options
and a new kind of control over the products they buy
what does all of this mean for supply chain professionals?
52 September/October 2017
Perez: Companies now are able to offer complete
personalization. For example, 3D printing is having a
huge impact in health care, where customization and
timeliness are incredibly important. Companies are
printing things like special parts for life-saving devices
and prosthetic limbs and knee and hip implants to
fit a patients exact bone structure and body type. If
someone needs a hip replacement, an artificial hip can
be custom designed and printed to fit that individu-
als specific body type. 3D printing actually is more
efficient than mass production in instances like this
when devices can be printed on an as-needed basis and
customized perfectly to the individual who needs it.
The desire for, and the availability of, completely
customized products will have a huge impact on the
extended supply chain. Well see more organizations
leveraging 3D printing technology in the last leg of their
supply chain operations. For example, if people want
headphones customized to fit their ears perfectly, the
headphone parts might be mass produced in a large
facility and then shipped to a local UPS store where there
is on-demand, 3D printing capability. Then the final parts
the ear buds themselves can be printed, assembled
and shipped to the individual customers from there.
Rennie: Can 3D printing bring about more sustainable
and socially responsible operations?
Perez: There are two ways I think this has potential.
First, 3D printing will enable distributed manufacturing
across the globe, which will reduce transportation miles
and resources. For example, if you have a plant in South
Africa producing a product needed in the United States,
you can have the product printed in San Francisco and
shipped a shorter distance. Further, 3D printing could
be used to reduce waste globally. Some scientists believe
that household recycled plastic could be used as 3D
printing material for household printers. In this manner,
3D printing could be a way to reduce the amount of
plastic sitting in landfills and oceans around the globe.
While were still years away from having 3D printers as
household products, this is an exciting vision.
Elizabeth Rennie is senior managing editor for APICS
magazine. She may be contacted at editorial@apics.org.
To comment on this article, send a message to feedback@apics.org.
Introducing the new CPIM Version 6.0
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Only 2 examsCPIM Part 1 NEW CPIM Learning System Completed CPIM BSCM?
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apics.org/magazine 53
CASE STUDY

Building a Better The results

This collaboration between Dorner and

Conveyor Solution ETM resulted in the launch of Dorners

Universal Drive in 2016. The new system
enables conveyor drives that are less expen-
sive with double the speed range and 60
Challenge: Reduce gearbox inefficiency for conveyor systems percent higher energy efficiency compared
Solution: Electric Torque Machines direct drive motor with conventional AC gear motors. Dorner
Company: Dorner Manufacturing also reduced its drive system types from 42
Headquarters: Hartland, Wisconsin different motor and gear combinations to a
Operation: Conveyor manufacturing single ETM direct drive motor because the
wide speed range and superior load-carrying
The challenge
Conveyors move both large and small objects at relatively slow
speeds, sometimes with frequent starts and stops. Conveyor drives,
the motorized systems that move conveyor belts, require high torque
to meet the acceleration and load-carrying capacity requirements of
each conveyor. However, conventional motors produce insufficient
low-speed torque to enable direct drive for conveyors, so a gearbox is
needed to match high motor speeds to slow conveyor speeds.
Dorner Conveyor found that gearboxes add cost and complexity
to conveyor systems, including several additional moving parts
and lubricant seals, all of which are prone to failure. For instance,
the worm gears used in conveyors are relatively inexpensive and
notoriously inefficient. In fact, as much as 80 percent of the energy
in these motors can be lost as heat. As a leader in the industry,
Dorner set out to find a better method.
ETM Engineer Phil Rullman fabricates a
The solution research and development version of ETMs
Dorner found that Electric Torque Machines (ETMs) advanced direct drive motor.
direct drive motor improved on these challenges posed by conven-
tional motors. The direct drive technology originally was developed capacity of the motor covers all speeds,
for electric vehicles and now has been adapted for use in conveyor loads and mounting positions.
systems. We started work in 2007, looking at a broad variety of ETM technology has simplified our
applications, and determined that our competitive advantages conveyor drive package offering, cut our
direct drive with low cost, high efficiency, small size, low weight stock-keeping-unit (SKU) count almost in
and high reliability were a great fit for applications with less than half and cut our costs considerably, says
1,000 rotations per minute, explains ETM Chief Technical Officer James Lubow, Dorners packaging con-
Thomas Janecek. Then we realized that this same characteristic veyance product manager. The simplified
eight or more times higher torque at low speeds was a perfect design and SKU reduction is beneficial for
match for conveyors and other material-handling equipment. our customers as they are stocking fewer
ETMs technology incorporates as many as 10 times more electro- service parts and can use this universally
magnetic poles, which are used to drive the rotary motion, than across our largest conveyor line. With many
conventional motors of the same size. This enables the direct drive customers running their plants 24/7, we
motor to produce a high level of torque at low speeds. As a result, the expect them to benefit greatly from this
APICS magazine motor quickly and smoothly transitions conveyors from a stationary reliable system.
welcomes case study
submissions. Send
position to full operating speed.
a message to In addition, ETMs direct drive motor moves Dorners conveyor
editorial@apics.org for belts at speeds of 10 to 500 rotations per minute without any gear-
more information.
ing, which gives Dorner the opportunity to reduce the number of
motor and gear combinations, decrease the drive system size and
To comment on this
article, send a message
weight, and improve the energy efficiency of the drive system.
to feedback@apics.org.

54 September/October 2017
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apics.org/magazine 55
LESSONS LEARNED
Control Unruly Parts
Lists with Kitting
I
once had a long-term consulting assignment with a man-
ufacturer of large-vehicle chassis. The chassis were sold
to motor-home manufacturers that would add the bodies
and interior accessories. Each chassis consisted of the frame,
engine, axle, transmission, brakes, electricals and anything else
necessary for safe and legal driving.
Although the motor-home manufacturers engineers were bril-
liant at creating beautiful interior layouts, they did not understand
steel stresses, braking to weight and horsepower ratios, how a par-
ticular interior works with the chassis that was purchased for it, or
much of anything else technical that made the motor homes func-
tion properly. As a result, the assembled motor homes sometimes
could not be sold until repair parts were procured and installed. It
usually was a minor fix perhaps a newly installed interior caused
a sink drain pipe to interfere with the muffler but it still would
require as many as two dozen parts to resolve.
Of course, the luxurious interior was the key selling point, so our
customers were not about to change those. It was up to us to modify
the chassis. This process began with our engineers creating a list of
parts and an instruction sheet to send to the customer. Then, the
necessary items were ordered through the chassis makers repair
parts sales operation.
Randall Schaefer, Unfortunately, this is where things screeched to a halt. The repair
CPIM, is an industrial
philosopher and retired
parts sales employees could not differentiate a routine order to repair
consultant. He may an aging motor home from a repair order that was needed to sell a new
be contacted at one. Furthermore, if any of the parts were unavailable, partials would be
randallschaefer@att.net.
shipped, which did the motor-home manufacturer very little good
particularly when the last part finally arrived and those previously deliv-
To comment on this
article, send a message
ered had gotten lost along the way. Likewise, sometimes the customer
to feedback@apics.org. would fail to include a part on the order, so the chassis maker would show
56 September/October 2017
Randall Schaefer, CPIM
the entire order as shipped while the motor-
home manufacturer could not fix the problems.
After studying all the issues at hand, I
decided to design a new process. Instead of
sending the newly developed list of repair
parts to the customer, it would be sent to me.
Meanwhile, I taught a repair parts professional
how to assign a kit part number to each group
of parts. She would work with the customer to
forecast how many of each kit number might
be required and then enter the forecast amount
into our enterprise resources planning system.
She expedited the components, and the stock-
room workers picked the parts, packaged the
kits and stocked them in anticipation.
Now, our customer could order just one
part number, and all the necessary parts
would arrive in one package. Never again
did the company have to deal with an unus-
able partial order.
Eventually, the customer would finish all
the fixes and let the repair parts person know
that the particular kit was no longer needed.
She would inform the stockroom, and any
remaining kits would be unpackaged and the
individual parts restocked. In the end, the
cost of this process was less than the previous
picking, packaging and shipping of multiple
partials and, better yet, the chassis and
motor-home manufacturers loved it.
Illustration: Terry Colon
Have you learned a lesson at work that you
would like to share with APICS magazine
readers? Submit an article of approximately
750 words that teaches, enlightens or amuses
to editorial@apics.org.
Imagine the possibilities,
realize the potential.

From meow to wow. At Oliver Wight, we believe passion is

the key to achieving roaring success. By taming talent and
inspiring your people to lead change from within, well help
you transform your business into the King of the Jungle.

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 Thank you for being part of
the APICS community!
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and looking ahead to a bright future!

58 September/October 2017