Change management's value changes (increases) as one evolves forward with supply chain work. In a siloed organization, the meaning of change management is quite different than in a supply-chain-focused business or, to put it another way, in a business that is using the supply chain as a business lever.
Objectives of this presentation are
(1)to give one an understanding of what "is" change management (definition)
(2)why it is becoming important to some folk to leverage the supply chain
(3)what is a "coach," or what is the concept of coach
(4)the use of this concept of "coach" in or on a supply chain environ
(5)close with some business examples of how the management of change, using the concept of "coach," delivers business benefits to the supply chain members.
We will look at this process of change management two ways: one, from the perspective of product-process-linkages/integration or of a new product or process being introduced in a company; secondly, from the viewpoint of within "a business" and moving toward looking across a supply chain.
•change (Webster's New Collegiate)—to make different in some particular; to make radically different; to give different course, po sition, or direction; to replace with another.
•management (also Webster !s)—to handle or direct with a degree of skill; to alter by manipulation; to succeed in accomplishing; too direct or carry on business or affairs; to achieve one's purpose. Combining the two we have change management, the directing/handling of the act of making something different to accomplish one's purpose. Applying this to business, we would interpret the "purpose" as "making money." The more efficient and effective we are at managing change, the better we will do financially in the marketplace. If we can maintain product differentiation, we are unique in the marketplace. Now if we can create demand for this different product, we have a winner. If we develop new processes to make this product, we have another leg up on competition. And finally, if we can create a unique supply chain (more logistically efficient) to get the product from dirt to the ultimate consumer—what a combination!!!
• coach (Webster)—one who instructs or trains players in the funda mentals of a competitive sport (change management) and directs team strategy.
Let's start at the beginning before leaping to the supply chain. Figure Shows the supply chain council's representation of a supply chain model they call the Supply Chain Organizational Reference Model (SCOR).
Foundational to this model is the individual company itself, and let's start there. Prior to supply chain thinking, "change management" was necessary and an integral part of the MRP II crusade of the 1970s. This idea of managing change and focusing the organization to make it happen almost flawlessly was a foundational element of Oliver Wight's ABCD Checklist and became an in-process measure of a company's performance in attaining organizational excellence in executing the three outputs of the company's S&OP process: the production plan, sales plan, and inventory plan. Like IRA, BOM, and data integrity, change management was foundational if a company wanted to optimize its performance, especially if speed to market was a key strategy.
This process of change management within a company was important both for a product change, to introduce new product or change some characteristics of the product to enhance its value to the customer/consumer, and also for a process change. An example of this would be a manufacturing process change within the factory to increase value (lower cost) or enhance appeal to the consumer.
Everything we have talked about, to this point, is internal to the company. Maybe there was some help from key suppliers, but in the end the results happened within the company. In the company there would be some type of project manager/facilitator/expediter to ensure every facet of the change was executed on time with efficiency and within budget cost. This change agent was tasked with integration of this work across multiple functions within a company to ensure success, helping to link these functional silos within the organization toward a common goal—managing the change. Many of you who have been in a role like this know the task is huge. Many a good person is still lying alongside the road to success trying to get a single company focused against this type of a goal. Going back to the SCOR model, the company is just one link in the supply chain. Let's multiply this by the number of companies in a normal supply chain and add the complexities of cultural differences and the added complexity of linking the individual links together. Before we discuss this, let's take a few minutes
and review the basic components of a supply chain and how it works.
To Be Continued
For balance of this article, click on the below link:
Need help in bringing this training to your company, may I
suggest that you forward this Web page to your leader. If you do,
we'll send you our Power-Point presentation, "7-Rules for Surviving in an Entirely New Economy."
To open the
"Forward to" form:
To stay current on Lean Management Basics and
Best Practices, subscribe to our weekly MBBP Bulletin... and we'll send you
presentation, "Introduction to Kaizen Based Lean Manufacturing™." All at no cost of course.
personal information will never
be disclosed to any third party.
what one of our 13,000 plus subscribers
wrote about the MBBP Newsletter:
"Great manufacturing articles. Thanks for the insights. I often share portions of your articles
with my staff and they too enjoy them and fine aspects where they can
integrate points into their individual areas of responsibilities. Thanks
Kerry B. Stephenson. President. KALCO
to Basics" Training for anyone ... anywhere ... anytime
6003 Dassia Way, Oceanside, CA 92056
West Coast: 760-945-5596