Response into all facets of our business operations. It cannot
be done as a cosmetic change or as just a different way of
processing orders and shipping them to customers quicker.
Ames began seriously considering the changes
necessary to meet our major customers' escalating Quick Response
requirements about two years ago. After initial discussions and
strategic planning, we established the following objectives for
our Quick Response Project:
• Develop Quick Response (QR) capability
as soon and as completely as possible so that we can meet or
exceed current and anticipated customer requirements for
improved service.
• Condense the total cycle time from
ordering of raw material to delivery to customer's
point-of-sale to meet consumer demands.
• Become recognized as a proactive leader
in QR capability within our industry and in our marketplace.
• Be the Low Cost—Best Quality—Preferred
Service company in our industry.
• Build strong business partner
relationships with our customers and with our vendors.
• Develop an effective long-term design
for the company, its business practices and its support
systems, while meeting the short-term, pressing requirements
of our customers completely and on-time.
• Position the company for growth and
profitability for the next ten years at least.
We also defined the following areas we should
concentrate upon primarily, as well as the underlying design
strategies to support our project objectives:
• Manufacturing: reengineer our
manufacturing processes, plant layouts, production scheduling,
material movement, and support systems and services
— Implement very intensive and dynamic
short-term planning, combined with flexibility in
manufacturing and the ability to manufacture to meet
requirements by SKU on a timely basis.
— Reassess, rearrange and relocate
operations and facilities to support true JIT/Quick Response
operations.
• Distribution: reevaluate our
distribution policies and practices, warehouse locations, and
transportation arrangements
— Determine the best network of
distribution centers, private fleet trucking, and
common-carrier alliances to meet our QR delivery and
profitability goals.
— Reorganize the layout of storage and
handling space and improve material flow, control systems, and
procedures to increase speed and accuracy in all aspects of
the warehousing/shipping process.
• Administrative: review and improve all
support functions, systems, and procedures to complement
operations and promote QR service
— Develop a QR business systems design
that ingrains QR methods throughout the company's operations,
and positions Ames as a true QR supplier.
— Evaluate all information systems for
their consistency with and ability to support QR operations
extremely well—those that do not must be replaced (or
reworked completely to bring them to the required level).
• Education & Employee Relations: implement new and
inno-
vative Human Resources programs to prepare
for QR effectiveness
— Make all employees fully aware of the
benefits from and requirements for QR operations. Educate,
Educate, Educate!
— Empower our employees to make the
changes required in their work environment that will enable
them to reach and maintain the quintessential QR standards and
objectives.
— Implement a comprehensive Change
Facilitation process to prepare all employees for the process
of dramatic and continuous change.
• Electronic Communications: extend and
improve current data communications with our customers and
vendors, and within our own organization
— Upgrade and extend our EDI systems to
include all of the new business transactions that will promote
and support trading partnerships with our customers (to meet
their known present and anticipated future requirements, and
to be able to offer them even more services proactively).
— Implement a full range of EDI
transactions with our vendors to facilitate trading
partnerships with them (to generate the kind of benefits for
us that our customers are working toward, and to build
excellent supply-pipeline-management capabilities).
— Upgrade and extend intra-company communications to
provide the means for fast, easy communication of all relevant
information among all elements of the company.