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Quick Response Logistics
Who is Bill Gaw?
And why should we listen to him?

Quick Response Logistics

Auditing Manufacturing Systems 


PART IV. 


Where to Focus?

Which processes must be reviewed? Here is a list of the processes most companies focus on:

• Customer service and order entry.

— Improving timely response to customer's needs.

— Determining the easiest way to place customer orders and receive product.

— Using available-to-promise information to match customer and promise shipment due date—100% of the time.

— Reducing order entry cycle time and extraneous data entry.

— Reducing multiple handling of orders and the number of times an order is handled.

— Reducing order entry complexity and steps.

— Reducing the amount of paperwork required to process an order.

— Using EDI to tie into the customer planning infor­mation.

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• Distribution and warehousing.

— Reducing finished goods inventory without sacri­ficing customer on time performance, reducing product availability, and increasing distribution costs and expenses.

— Reducing handling of finished goods and move­ment of the product.

— Reducing the amount of "buffer" and safety stock inventory.

— Keeping finished good's inventory accuracy at a high quality level with no tolerance.

— Reducing distribution and warehouse costs and expenses.

— Increasing visibility of inventories through manufacturing.

— Providing a flexible network to handle both antici­pated or sudden changes in demand.

— Improving warehouse productivity and reducing storage space.

— Reducing cycle time to process customer orders and shipments.

— Reducing the order quantity to the plant.

— Moving to a time-phased replenishment planning system with customer visibility versus only a reorder point system with large lot sizes.

Sales/Marketing effectiveness.

— Improving demand forecasting.

— Revising roles and responsibilities, and prioritiz­ing value-adding activities.

— Removing incentives in the sales compensation system that inject bias into the forecast and de­mand planning.

— Removing complexity from the forecasting sys­tem.

— Assigning accountability and responsibility for tracking the sales forecast versus actual customer demand and explaining all out-of-tolerance condi­tions.

— Having Sales/Marketing review all demands monthly and determining a root cause for all out-of-tolerance conditions.

— Regularly visiting the manufacturing plants and developing a better understanding of the manu­facturing process.

— Replacing the forecasting system with customer demand information.

— Better prioritization of selling activities and work­ing closer with the customer to determine cus­tomer expectations.

— Aligning sales with market focus, business and manufacturing strategy.

— Reducing paperwork.

— Better explanation of new products to the cus­tomer.

— Better focus on key market influences.

— Increasing net selling time by x%.

— Increasing sales by x% over the current budget.

— Having more timely information on the customer, market and competition.

— Participating in a monthly Partnership meeting with distribution, planning and manufacturing.

Product development.

— Ensuring the main objective is to get to the "voice of the customer" and translate that information into product definition.

— Reducing the time and cost to bring new products to the market by 50%.

— Improving concurrent development of new prod­ucts.

— Using the Quality Function Deployment concepts and tools.

— A new product development process that is simple and understood.

— New product development process that has mile­stones defined. They are used to gatekeep and ensure all required deliverables are on time.

— Reducing the time to generate bills of material and product documentation.

— Improving on time of new product deliverables used internally.

— Implementing an engineering capacity planning system.

— Improving engineering productivity by 30%.

— Increasing interaction with the business teams.

— Improving the quality of the documentation uti­lized by the users.

— Ensuring new products are driven by the needs of the marketplace and not by technical wizardry.

 

To be Continued


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