QAD Business Process

Advanced Planning and Proper Costing in the Same Product Structure

Wed, 20 Aug 2008 14:09:00 GMT

Using a well-thought out Product Structure (BOM) and Costing Process, a client with large Remanufacturing product lines can achieve complex material planning for cores, used parts, and new parts, while still properly costing each level of the BOM.

Value stream map and frank discussion improves global supply chain

Thu, 29 May 2008 14:46:00 GMT

During a Supply Chain workshop with a client this past week, the subject of Firming requirements on a Supplier Schedule became a hot topic of discussion, and I thought it would be worthwhile to discuss this in general terms in this week's blog. In this client’s environment, the supplier is an intercompany supplier that is based in Asia and is supplying its US-based sister company. This particular client is a Tier 1 automotive supplier and they are using Supplier Schedules and Customer Schedules to communicate demand and execute shipments between the companies. Historically, the Asia-based supplying company required a 3-week Firm period (not inclusive of shipping lead time), as this ensured 100% compliance to schedule. The main driver for this requirement was the fact that responsibility for premium freight charges between Asia and the US was historically a very parochial issue. During the workshop, a value stream mapping exercise illustrated the negative impacts of the firm period on the stability of the supply chain. Additionally, a frank discussion of the over irrelevance of ownership of the premium freight costs within the larger corporate structure allowed us to eliminate the Firm period and create a more flexible and stable supply chain. This is another good example of the benefits of thinking in terms of process and the entire organization’s value stream.

Process, Process, Process

Mon, 31 Mar 2008 17:25:00 GMT

I could think of no better way to begin a new blog on Business Process Design than to quickly preach the importance of Process, especially in light of the fact that software functionality and gee-whiz technology seems to get people's attention. The true measure of a world-class company is its Processes, whether they are supported and enabled through the latest and greatest software functionality or through simple manual constructs (e.g. kanban loops with visual signals). Too often, Companies want to automate or enable a bad Process through software in the hopes of improving business results. Though there may be some overhead elimination in such an approach, the true result is that the Company is simply executing a bad Process quickly. Instead, all Companies should focus their efforts on first designing best-in-class business Processes and only then begin attempts at automation. Without a doubt, the functionality afforded to us today by modern software applications is amazing and should be exploited whenever and wherever possible. However, if the software is simply automating a bad or sub-optimal process, the transformational power and value of the technology investment will not be realized.