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Subject:
From:
Joyce Koo <[log in to unmask]>
Reply To:
TechNet E-Mail Forum <[log in to unmask]>, Joyce Koo <[log in to unmask]>
Date:
Fri, 17 Sep 2010 15:03:14 -0400
Content-Type:
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http://www.autoblog.com/2009/01/01/just-in-time-supply-lines-could-fall-victim-to-financial-crisis/

-----Original Message-----
From: TechNet [mailto:[log in to unmask]] On Behalf Of Terry Baker
Sent: Friday, September 17, 2010 2:59 PM
To: [log in to unmask]
Subject: Re: [TN] Response to Ahne

Sorry folks, the "blue" highlights did not show up, I edited out Ahne's  
original email. 
Terry. 
 
In a message dated 9/17/2010 12:21:28 P.M. Eastern Daylight Time,  
[log in to unmask] writes:

Ahne, I  had a chance to think about your questions, see my responses below 
  
in blue. 


Supply chain: Do you mean the chain that stretches  from the design  
engineer
and the manufacturing engineer of the  product to the design engineer  and 
the manufacturing engineer of the  part or material needed? Plus all  those
necessary pieces in between?  (Can you say DFM?) 
 

My   dissertation was 
limited to a tiny, tiny part of the supply chain, that  being  the actual 
supply of 
parts to the manufacturer, and the  ability to remain AGILE,  despite 
extremely volatile demand. It was  necessary to limit it thusly due to  the 
fact 
that otherwise you  cannot get your arms around the subject, and show  any 
relationships.  

What conflict occurs is that we follow (generally) a  business  model of 
reduced inventory, reduction of cost, long distance Lower  cost  region 
outsourcing, and expect yet to keep domestic demand met  with customer  
satisfaction 
as a requisite which means that delivery  to the customer has to be  on 
time. 
My theory in industry is very  basic which says as volatility of demand  
increases so does the need  for AGILITY in communication to keep the supply 
chain  flowing and  meeting the demand of the customer. That is one tactic 
in a 
war to   keep customers satisfied, yet at the same time keep your company 
solvent  with an  efficient supply chain. 


However you are right! The  entire process must be  looked at in aggregate 
with multiple  cross-functional teams and concurrent  design engineering, 
to 
achieve  simultaneous goals of efficient supply chain with  customer  
satisfaction. We have paradigms of servicing the customer, and we  have  
paradigms of 
supply chain efficiency. What I am saying is that  the two paradigms  have 
to 
be combined to produce a GREATER truth in  supply chain efficiency.  
Otherwise we end up with a board (or a  product) that looks great from a 
design  
phase, but if your demand is  VOLATILE, you cannot keep the quality, nor 
the  
supply, nor the  flexibility agile enough to satisfy the customer. This is 
much more  
an  application of Michael Porter's "value chain" in which everyone  is 
involved to  make sure that the end customer ends up with an on  time, 
quality 
product, and  you end up with a quality robust, agile  product which can be 
flexible in  quantity and design, as the final  product goes through the 
life 
cycle from  introduction, growth,  maturity, and decline. Many companies 
have 
lost their  shirts in one  of the cycles due to a product that does not 
have the 
ability to move with  overall agility. Lean concepts are fine, but only go  
so far, Total  quality and business management principles are much more  
applicable,  and ultimately however you have to deal with the unknown, and 
design   and produce with a model of business that allows you to deal with 
all   
environments, and all types of demand. 

This is just the tip of the  iceberg. My goodness  you are so right, 
EVERYONE has to be involved,  and not only that: We have a  tendency to 
compartmentalize people and  give them conflicting goals of cost  
reduction, customer  
satisfaction, and those priorities all have to mesh  together.  

The real mind blower is, NONE of those people  should compromise  in their 
goals. Of course we do, but to really drive a  product you  have to achieve 
not a compromise of goals but goals which are  built  in to the product so 
that 
they are all achievable. And then as the   product moves through the life 
cycle, the process must be ongoing and  creative.  I have been in 
situations 
where this does not happen, and  its not very pretty. 
It looks great when we create it, we have problems  when  we implement it, 
and then when we outsource it, we have all  kinds of  intercultural 
communication problems which make it even  more  challenging!

Its good to be talking with you. The  survey  was admittedly a compromise I 
apologize. It became tedious,  but  with language if you change the 
questions 
too much then you get  more  interpretation. That is why survey research is 
so limited, and  then when  you do case study research you can lose 
objective view,   actually that's part of a case study or action research. 
 

However  I thank  
you immensely for your time, your feedback, and your  knowledge you have  
imparted to me. I truly believe knowledge is  power, and brings us out of 
the  
darkness. 

Respectfully,  

Terry B. Baker (814)-329-7357
Doctoral   Candidate
University of Maryland University College 
3501  University  Blvd.   East
Adelphi, MD 20783 USA 
Phone:  800-888-UMUC  (8682)
Tom Mierzwa  (Chair, Doctoral  Program)
Monica Graham  (Admissions and Advisory  Contact)





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