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Other Added - Supply Chain Agilit - Inducing World Class Performance for the 21st Century
Incentives to Help Your Business Save Money on your Energy Bills ost. Each company will be developed uniquely to suit its particular needs, but one characteristic will fit them all--they will all be agile.You’ve probably seen the adverts about businesses and energy efficiency. They usually concentrate on the environmental benefits – namely, if we use less energy, we pump less harmful gases into the environment. Obviously this is a worthy reason in itself. But, there are other motivations for businesses to monitor their energy usage and stop wastage – for instance, saving on bills.Paying less on energy bills brings immediate savings to the bottom line. According to the Carbon Trust, a 20% saving in energy usage – realistically achievable by most businesses – can have the same positive effect as a 5% increase in sales. And, the bonus: because saving energy does lead to a healthier environment, there are government incentives to make investment in energy efficiency more attractive.Carbon Trust loans The Carbon Trust is a non-for-profit company set up and funded by the government to help the UK meet its international climate change obligations.If you’re a small or medium-sized enterprise based in England or Wales, you could borrow ?5,000 to ?100,000 unsecured and interest-free to fund upgrades in elements such as lighting, heating and insulation. In Northern Ireland, all businesses that have been trading for 12 months or more may be eligible for an unsecured, interest-free loan of up to ?200,000.Enhanced Capital Allowances The Enhanced Capital Allowance scheme makes investments in energy saving equipment more cost-efficient.Capital allowances on plant and machinery are usually set at 25% a year on a reducing balance basis. In comparison, Enhanced Capital Allowances allow businesses to write off 100% of the cost of energy saving equipment against their taxable profits within the first investment year. As a business, you can claim this allowance on income tax or corporation tax returns.Knowing more about the incentives the government is offering could mean your business saves up to a third on your initial investment into energy saving measures. It can also mean your payback periods are shorter – we’ve calculated that you could recover the investment cost in as little as 12 to 18 months. From there on in, your business reaps the rewards. The environment does too. Becoming agile means competing and leading in the next century. Companies require an overhaul of their infrastructures to be able to introduce and build new products quickly and accurately, but also need an acculturation process fueled by heavy involvement. It takes time to enact changes of major proportions, and it takes careful planning. How do you get your arms around this? Our Approach: A Comprehensive, Systematic Master Plan is Required A comprehensive and systematic master plan is needed to effectively manage a large-scale effort. Our Supply Chain Development Model(TM) provides state-of-the-art technical application tools and emphasizes a continuous improvement approach. This exclusive management transformation program creates a master plan that systematically enacts supply chain agility. It encompasses the full supply chain from customer through production, assembly, supply, warehousing, and distribution. The Supply Chain Development Model TM At the heart of our supply chain management program is the supply chain development model. Managing large-scale change requires a comprehensive master plan as well as manageable stag Ball Valve History & Mystery BackgroundHere is a light hearted history and trivia on the ball valve. Read it and you will never take your natural gas or electricity for granted again, ok so maybe you will…Ball Valve mystery? The humble ball valve has a checkered history and somewhat murky origins. It may not be cloak and dagger stuff, but it’s not without mystery… Take a look around to see where the ball valve is indispensable. For example, the ball valve is crucial to the petroleum industry, water, electric power, chemical, paper, pharmaceuticals, food, steel and other fields. If it seems we could not get a long without the ball valve, it's probably true! Given the importance of the ball valve today, it's a mystery why it took so long to invent.Ball Valve history does not go back to ancient Greece or the American revolution or does it? The modern ball vale was invented in 1967 or about 1957 according to different sources. Who cares when the ball valve was invented? Besides the patented owner, probably not many people. Still the ball valve was major advancement over plug valves used in the 20th century. The earliest ball valves were commercially available around 1967. For ancient parallels, the ruins of Pompeii turned up a bronze tapered plug quarter turn valve that resembles to the ball valve today. How’s that for a ball valve mystery?Ball Valve Birth PainsBall Valve researchers point to a spherical ball-type valve patented in 1871 led to the invention of today's ball valve. This ball valve was an all brass valve- brass ball and brass seats. Apparently this ball valve didn't storm the market and was not mentioned in valve catalogs of the late 1800's While today's ball valve is quite a recent invention, the idea for this ball valve has been around about 125 years. The first resilient seated ball valve patent was issued in April,1945. Legend has it the company’s marketing department could not envision a use for the valve and it was not manufactured. Oh well, that’s the way the ball valve bounces...Given the huge reliance on the ball valve today, it's a mystery why it took so long for people to invent and use the ball valve. A supply chain is the stream of processes of moving goods from the customer order through the raw materials stage, supply, production, and distribution of products to the customer. All organizations have supply chains of varying degrees, depending upon the size of the organization and the type of product manufactured. These networks obtain supplies and components, change these materials into finished products and then distribute them to the customer. Managing the chain of events in this process is what is known as supply chain management. Effective management must take into account coordinating all the different pieces of this chain as quickly as possible without losing any of the quality or customer satisfaction, while still keeping costs down. The first step is obtaining a customer order, followed by production, storage and distribution of products and supplies to the customer site. Customer satisfaction is paramount. Included in this supply chain process are customer orders, order processing, inventory, scheduling, transportation, storage, and customer service. A necessity in coordinating all these activities is the information service network. In addition, key to the success of a supply chain is the speed in which these activities can be accomplished and the realization that customer needs and customer satisfaction are the very reasons for the network. Reduced inventories, lower operating costs, product availability and customer satisfaction are all benefits which grow out of effective supply chain management. The decisions associated with supply chain management cover both the long-term and short-term. Strategic decisions deal with corporate policies, and look at overall design and supply chain structure. Operational decisions are those dealing with every day activities and problems of an organization. These decisions must take into account the strategic decisions already in place. Therefore, an organization must structure the supply chain through long-term analysis and at the same time focus on the day-to-day activities. Furthermore, market demands, customer service, transport considerations, and pricing constraints all must be understood in order to structure the supply chain effectively. These are all factors, which change constantly and sometimes unexpectedly, and an organization must realize this fact and be prepared to structure the supply chain accordingly. Structuring the supply chain requires an understanding of the demand patterns, service level requirements, distance considerations, cost elements and other related factors. It is easy to see that these factors are highly variable in nature and this variability needs to be considered during the supply chain analysis process. Moreover, the interplay of these complex considerations could have a significant bearing on the outcome of the supply chain analysis process. The Challenge In today's world, competing is taking on new dimensions. A global resegmentation of markets is imposing stiff foreign and domestic competition on worldwide economies. The ability to compete is being determined by the degree of responsiveness to customers and key markets: how fast you deliver, how good the quality is, what the price is, and what value the customer perceives he is getting. Markets are demanding quick customizing of products. Over the next ten years, worldwide manufacturers will be faced with stiffer competition in most markets. Clearly the pressure is on to be the best, nothing less. They must concentrate on satisfying the demands of the market: designing and building the best quality product in the shortest time possible. Taking dramatic steps to become agile in the supply chain is necessary to be a manufacturing contender in the next century. Organizations must focus on moving information and products quickly through retail, distribution, assembly, manufacture, and supply. All physical and logical events within the supply chain must be enacted swiftly, accurately, and effectively. The faster materials, information, and decisions flow through an organization's supply chain, the faster it can respond to the demands of the market. The keys are flow and time. The next ten years will emphasize radical development of the corporate supply chain infrastructure, inducing major changes to the organization. The focus will be on quickly introducing new customerized high quality products and delivering them with unprecedented lead times. The end result will be a new effective organization capable of making swift decisions, and manufacturing and delivering products with high velocity. Large scale changes in the way we operate in the office, in the factory, with our suppliers, and how we market and move products to the end customer are required to achieve this degree of performance. Those successfully emerging from this radical transformation will be the winners and leaders: quick, and resourceful enterprises. These enterprises will be world-class competitors, organized to respond to a dynamic market with precision and unprecedented speed and agility in delivery and new product introduction. They will be capable of achieving world class quality, with substantially less nonvalue-added cost. Each company will be developed uniquely to suit its particular needs, but one characteristic will fit them all--they will all be agile. Becoming agile means competing and leading in the next century. Companies require an overhaul of their infrastructures to be able to introduce and build new products quickly and accurately, but also need an acculturation process fueled by heavy involvement. It takes time to enact changes of major proportions, and it takes careful planning. How do you get your arms around this? Our Approach: A Comprehensive, Systematic Master Plan is Required A comprehensive and systematic master plan is needed to effectively manage a large-scale effort. Our Supply Chain Development Model(TM) provides state-of-the-art technical application tools and emphasizes a continuous improvement approach. This exclusive management transformation program creates a master plan that systematically enacts supply chain agility. It encompasses the full supply chain from customer through production, assembly, supply, warehousing, and distribution. The Supply Chain Development Model TM At the heart of our supply chain management program is the supply chain development model. Managing large-scale change requires a comprehensive master plan as well as manageable stage Climbing Up the Ladder as a Professional in Copywriting tion that customer needs and customer satisfaction are the very reasons for the network. Reduced inventories, lower operating costs, product availability and customer satisfaction are all benefits which grow out of effective supply chain management.There are individuals who are naturally born with creative hands. Some may not but aspires to be a writer in the complex world of advertising. If you belong to those who do not have innate gift for writing yet dreams of becoming a good copywriter, you can do so and work like a pro.All you need to have is the willingness to become professional in copywriting and some of the following:Degree.It will be an advantage on your part if you have a degree which is somehow related to writing – like journalism or communication courses. Having so, you will have a grasp of what field of work you are entering. If you have not been so serious with your college degree, then it is about time to put importance into it and a little work on your “writing adrenaline,” it will be needed wherein you will have to learn to love writing not just like it.On the other hand, if you do not have a degree yet you aspire to enter the copywriting world then you are likely to become a professional if you first have great passion for writing. However, nowadays most advertising agencies accept copywriters with a degree. Hence it is recommended that you start with taking specialty short-term courses which deal with becoming a copywriter. Then you can work on getting a degree.Effective Work under Pressure.In the world of advertising, you are working in a fast-paced environment where a deadline is extremely important and the quality of work is essential. Everything and everyone is on a run.A professional copywriter is able to come up with good advertising materials amidst tight schedules, clutter in the work environment or perhaps in his personal life as well.You are a pro in copywriting if you are able to work in a hell-like environment and yet you know how to make a person that is your target audience, respond with the quality of your work.Work with Passion.Work is never work if you learn how to have fun. Most often than not, good-quality work are revealed if you love what you are doing. You can be considered a professional in copywriting if you learn to be passionate with your work.Your duty is to persuade people that they can get great benefits with what you are introducing to them. It is your work as a copywriter to “sell,” by making your audience understand that they nee The decisions associated with supply chain management cover both the long-term and short-term. Strategic decisions deal with corporate policies, and look at overall design and supply chain structure. Operational decisions are those dealing with every day activities and problems of an organization. These decisions must take into account the strategic decisions already in place. Therefore, an organization must structure the supply chain through long-term analysis and at the same time focus on the day-to-day activities. Furthermore, market demands, customer service, transport considerations, and pricing constraints all must be understood in order to structure the supply chain effectively. These are all factors, which change constantly and sometimes unexpectedly, and an organization must realize this fact and be prepared to structure the supply chain accordingly. Structuring the supply chain requires an understanding of the demand patterns, service level requirements, distance considerations, cost elements and other related factors. It is easy to see that these factors are highly variable in nature and this variability needs to be considered during the supply chain analysis process. Moreover, the interplay of these complex considerations could have a significant bearing on the outcome of the supply chain analysis process. The Challenge In today's world, competing is taking on new dimensions. A global resegmentation of markets is imposing stiff foreign and domestic competition on worldwide economies. The ability to compete is being determined by the degree of responsiveness to customers and key markets: how fast you deliver, how good the quality is, what the price is, and what value the customer perceives he is getting. Markets are demanding quick customizing of products. Over the next ten years, worldwide manufacturers will be faced with stiffer competition in most markets. Clearly the pressure is on to be the best, nothing less. They must concentrate on satisfying the demands of the market: designing and building the best quality product in the shortest time possible. Taking dramatic steps to become agile in the supply chain is necessary to be a manufacturing contender in the next century. Organizations must focus on moving information and products quickly through retail, distribution, assembly, manufacture, and supply. All physical and logical events within the supply chain must be enacted swiftly, accurately, and effectively. The faster materials, information, and decisions flow through an organization's supply chain, the faster it can respond to the demands of the market. The keys are flow and time. The next ten years will emphasize radical development of the corporate supply chain infrastructure, inducing major changes to the organization. The focus will be on quickly introducing new customerized high quality products and delivering them with unprecedented lead times. The end result will be a new effective organization capable of making swift decisions, and manufacturing and delivering products with high velocity. Large scale changes in the way we operate in the office, in the factory, with our suppliers, and how we market and move products to the end customer are required to achieve this degree of performance. Those successfully emerging from this radical transformation will be the winners and leaders: quick, and resourceful enterprises. These enterprises will be world-class competitors, organized to respond to a dynamic market with precision and unprecedented speed and agility in delivery and new product introduction. They will be capable of achieving world class quality, with substantially less nonvalue-added cost. Each company will be developed uniquely to suit its particular needs, but one characteristic will fit them all--they will all be agile. Becoming agile means competing and leading in the next century. Companies require an overhaul of their infrastructures to be able to introduce and build new products quickly and accurately, but also need an acculturation process fueled by heavy involvement. It takes time to enact changes of major proportions, and it takes careful planning. How do you get your arms around this? Our Approach: A Comprehensive, Systematic Master Plan is Required A comprehensive and systematic master plan is needed to effectively manage a large-scale effort. Our Supply Chain Development Model(TM) provides state-of-the-art technical application tools and emphasizes a continuous improvement approach. This exclusive management transformation program creates a master plan that systematically enacts supply chain agility. It encompasses the full supply chain from customer through production, assembly, supply, warehousing, and distribution. The Supply Chain Development Model TM At the heart of our supply chain management program is the supply chain development model. Managing large-scale change requires a comprehensive master plan as well as manageable stag Have You Lost Control Of Your Career? at these factors are highly variable in nature and this variability needs to be considered during the supply chain analysis process. Moreover, the interplay of these complex considerations could have a significant bearing on the outcome of the supply chain analysis process.Have you lost it? Your career, I mean... Well it's time to find it and take control to create the excitement, fulfillment and success that is meant for you!Where do you start to regain control? Start here...What are you doing today to manage your career? What does it mean to manage your career and not have it managed for you? How can you take the reins and direct your career?These are great questions that successful people ask themselves every day. Because you see, managing your career is part of your day to day activities. Each meeting you attend, each conference call you lead or participate in, each one-on-one interaction are all steps to managing your career.Where you spend your time and who you spend your time with will either position you to stay put or move forward. This gets to some of the more tactical ways in which you manage your career.From a strategic perspective, are you on the path that brings you the greatest amount of energy and satisfaction? Are you moving toward your vision of success in your chosen field or profession? Or someone else’s?To begin to regain control, it starts with your vision for success in your life. Every professional has a strategy for what their next 1, 3 and 5 year plan will be for their career. But is this vision leading towards your definition of success for your life or towards what is expected? If they are one in the same, congratulations! If they are not, that’s ok too! The mere awareness of it enables you to look at it with different eyes and to take inspired action to bring it more in line with who you are and what you want.Talking with someone you know and trust or journaling can help to capture your thoughts. You could also consider meditation or visualization techniques. Clarity in this area can have a profound affect on your actions and sense of accomplishment. So give it the time and focus it deserves.Remember how exciting is it with each new position or promotion to start something new? You get to bring all that you are to this new adventure – creativity, innovation and growth. What would it be like to have that same excitement and challenge in creating and driving your career? Are there new people in your circle as a result of the new job? Does this bring you closer to an area of interest that you’d lik The Challenge In today's world, competing is taking on new dimensions. A global resegmentation of markets is imposing stiff foreign and domestic competition on worldwide economies. The ability to compete is being determined by the degree of responsiveness to customers and key markets: how fast you deliver, how good the quality is, what the price is, and what value the customer perceives he is getting. Markets are demanding quick customizing of products. Over the next ten years, worldwide manufacturers will be faced with stiffer competition in most markets. Clearly the pressure is on to be the best, nothing less. They must concentrate on satisfying the demands of the market: designing and building the best quality product in the shortest time possible. Taking dramatic steps to become agile in the supply chain is necessary to be a manufacturing contender in the next century. Organizations must focus on moving information and products quickly through retail, distribution, assembly, manufacture, and supply. All physical and logical events within the supply chain must be enacted swiftly, accurately, and effectively. The faster materials, information, and decisions flow through an organization's supply chain, the faster it can respond to the demands of the market. The keys are flow and time. The next ten years will emphasize radical development of the corporate supply chain infrastructure, inducing major changes to the organization. The focus will be on quickly introducing new customerized high quality products and delivering them with unprecedented lead times. The end result will be a new effective organization capable of making swift decisions, and manufacturing and delivering products with high velocity. Large scale changes in the way we operate in the office, in the factory, with our suppliers, and how we market and move products to the end customer are required to achieve this degree of performance. Those successfully emerging from this radical transformation will be the winners and leaders: quick, and resourceful enterprises. These enterprises will be world-class competitors, organized to respond to a dynamic market with precision and unprecedented speed and agility in delivery and new product introduction. They will be capable of achieving world class quality, with substantially less nonvalue-added cost. Each company will be developed uniquely to suit its particular needs, but one characteristic will fit them all--they will all be agile. Becoming agile means competing and leading in the next century. Companies require an overhaul of their infrastructures to be able to introduce and build new products quickly and accurately, but also need an acculturation process fueled by heavy involvement. It takes time to enact changes of major proportions, and it takes careful planning. How do you get your arms around this? Our Approach: A Comprehensive, Systematic Master Plan is Required A comprehensive and systematic master plan is needed to effectively manage a large-scale effort. Our Supply Chain Development Model(TM) provides state-of-the-art technical application tools and emphasizes a continuous improvement approach. This exclusive management transformation program creates a master plan that systematically enacts supply chain agility. It encompasses the full supply chain from customer through production, assembly, supply, warehousing, and distribution. The Supply Chain Development Model TM At the heart of our supply chain management program is the supply chain development model. Managing large-scale change requires a comprehensive master plan as well as manageable stag How to Learn More about the People Who Work for You ical and logical events within the supply chain must be enacted swiftly, accurately, and effectively. The faster materials, information, and decisions flow through an organization's supply chain, the faster it can respond to the demands of the market. The keys are flow and time.Sharon is a manager in a retail store. Phil has just become a foreman on the shop floor of a large manufacturer. Chris has just been promoted to team leader. They've all heard that they'll do better if they learn about the people who work for them. They just don't know how.Show up a lot.Management is a contact sport. You can't do it by remote control or by email. You've got to get out and spend time with your people.When you spend time with your people, you learn what they can do. It's one thing to read a report comparing your subordinates' test results in different areas or checking out their work history for ideas about what they do well. It's quite another to watch one of them struggle to master a task, or deal with a customer.Seeing your people in action helps you learn about them. You learn what they can do and not do. You learn what they're good at. You can correct bad behavior before it becomes a habit. If you show up a lot you can catch them doing things right so you can encourage good behavior.Showing up a lot helps your people learn about you. Every time you show up you have the opportunity to tell your people what really matters. Just don't try to tell them too much.Craft two or three short messages that you can repeat over and over. Apply your messages to the situations you find. Use every encounter to counsel, correct, instruct and encourage.Develop a system.You'll find it easier to learn about your people if you have a simple system that will help you determine what behavior of yours is most likely to get the results you want. When I was putting together my first supervisory skills training program over twenty years ago, I went looking for a system that was both sophisticated and easy to use without requiring you to go back to the book or administer paper-and-pencil tests.The system outlined in Tony Alessandra and Michael O'Connor's book The Platinum Rule meets those tests. The book lays out a simple system that will help you classify folks based on their Social Style. All you need to do is observe whether they make decisions fast or slow and whether they're more naturally relationship oriented or task oriented.With those simple judgments, you'll be able to make some key decisions. You'll know whether what you can The next ten years will emphasize radical development of the corporate supply chain infrastructure, inducing major changes to the organization. The focus will be on quickly introducing new customerized high quality products and delivering them with unprecedented lead times. The end result will be a new effective organization capable of making swift decisions, and manufacturing and delivering products with high velocity. Large scale changes in the way we operate in the office, in the factory, with our suppliers, and how we market and move products to the end customer are required to achieve this degree of performance. Those successfully emerging from this radical transformation will be the winners and leaders: quick, and resourceful enterprises. These enterprises will be world-class competitors, organized to respond to a dynamic market with precision and unprecedented speed and agility in delivery and new product introduction. They will be capable of achieving world class quality, with substantially less nonvalue-added cost. Each company will be developed uniquely to suit its particular needs, but one characteristic will fit them all--they will all be agile. Becoming agile means competing and leading in the next century. Companies require an overhaul of their infrastructures to be able to introduce and build new products quickly and accurately, but also need an acculturation process fueled by heavy involvement. It takes time to enact changes of major proportions, and it takes careful planning. How do you get your arms around this? Our Approach: A Comprehensive, Systematic Master Plan is Required A comprehensive and systematic master plan is needed to effectively manage a large-scale effort. Our Supply Chain Development Model(TM) provides state-of-the-art technical application tools and emphasizes a continuous improvement approach. This exclusive management transformation program creates a master plan that systematically enacts supply chain agility. It encompasses the full supply chain from customer through production, assembly, supply, warehousing, and distribution. The Supply Chain Development Model TM At the heart of our supply chain management program is the supply chain development model. Managing large-scale change requires a comprehensive master plan as well as manageable stag Following-Up 10 at a Time ost. Each company will be developed uniquely to suit its particular needs, but one characteristic will fit them all--they will all be agile.Now that you have your list, you will be ready to go. You should also have a reason to call each of the people on the list. For example, I put on a breakfast seminar and wanted to invite my top customers to the event. This gave me a good excuse to send an email, and follow-up with a phone call. Even if the person was not in the office, I left a message to call me back. The event was a good reason to call and also to see if there was anyone they thought might want to attend. It made getting a referral much easier. I now had a touch point with my customer and I also got a couple of referrals. I asked permission to use my customers name when sending the invitation and also used the phone to follow-up with the lead.When you are doing your calls, you have to discipline yourself in order to do it consistently everyday. You can make it easier on yourself by placing your time to email and call on your schedule. Only you can make the calls and only you can make sure you follow-through. It is very easy to let your ten calls a day slip through the cracks because something more important has come up or you have scheduled another appointment. The only way this will work is if you are persistent with yourself and you make the time and have it on your schedule.For every ten people on your list, you may only get one or two referrals. But if you are calling ten a day, that is a total of ten referrals a week. Each of these people will need to be called and you will have to slot these referrals into your calling schedule. This does not mean you are restricted to only call ten as the referrals might be "hot". You need to make sure you do not overdo the calls as it will then become more of a chore than a way to get more business. Becoming agile means competing and leading in the next century. Companies require an overhaul of their infrastructures to be able to introduce and build new products quickly and accurately, but also need an acculturation process fueled by heavy involvement. It takes time to enact changes of major proportions, and it takes careful planning. How do you get your arms around this? Our Approach: A Comprehensive, Systematic Master Plan is Required A comprehensive and systematic master plan is needed to effectively manage a large-scale effort. Our Supply Chain Development Model(TM) provides state-of-the-art technical application tools and emphasizes a continuous improvement approach. This exclusive management transformation program creates a master plan that systematically enacts supply chain agility. It encompasses the full supply chain from customer through production, assembly, supply, warehousing, and distribution. The Supply Chain Development Model TM At the heart of our supply chain management program is the supply chain development model. Managing large-scale change requires a comprehensive master plan as well as manageable stages in order to successfully accomplish the work. The integrated model provides that plus more. It is the shell for a master plan to manage a large-scale transition of capability in your company. It consists of three dimensions. · First Dimension: The Closed Loop · Second Dimension: Six Keyholes · Third Dimension: Performance Drivers For Success First Dimension: The Closed Loop Large-scale change requires managing the effort in phases or stages to effectively control progress. The first dimension consists of four stages, looped as a continuous process: (1) Diagnosis and Concept Development, (2) Detailed Action Planning, (3) Building Capabilities, and (4) Performance Results. The following describes each of the stages: Stage 1, Diagnostics and Concept Development, assesses the supply-chain competitiveness of the organization and builds a vision the desired supply chain. The evaluation begins with a diagnosis and comparison of business objectives against existing capabilities and performance. A rigorous diagnostic effort in all supply chain keyholes, production, supply, inventory location, transportation, and information, reveals where the existing supply chain can achieve immediate competitive advantage. A vision of where the company should be is developed with respect to the five performance drivers: velocity, flexibility, quality, cost and service. The performance gap between today’s performance and that of the vision is identified, and recommendations are made on which keyholes to leverage to obtain world class performance. This could be a strategic combination of one or several keyholes: production, supply, inventory, location, transportation, and information. An action plan is developed to close the performance gap for those keyholes to be leveraged. Supply chain simulation models are developed where appropriate for extensive analysis and comparison of alternatives. Stage 2, Detailed Action Planning, is the engineering phase that further develops the master plan in detail that is created in Stage 1. This effort focuses on the specific keyholes to be leveraged: any combination of production, supply, inventory, location, transportation and information. During this phase, the long-term supply-chain structure is designed in detail using new process and information technologies, organization structure, suppliers, inventory stocking policies, modes of transportation, new locations of plants and distribution centers. The focus is to streamline product, part and information flow, create operational flexibility, induce velocity of parts products and information, improve quality of performance, reduce overall cost and substantially improve customer service. This effort positions the company for long-term world-class supply chain performance. Stage 3, Building Capabilities, is the stage of the effort when detailed plans to achieve world-class supply chain agility and performance are executed. New technology, capital, people, and resources are effected through team building and high involvement activity. New plant and distribution locations are leased or constructed, master contracts with new component and transportation suppliers are signed and implemented, new equipment and information technology are purchased and implemented, and new inventory stocking policies are executed where required to achieve world class performance. Stage 4 Performance Results, is the stage when results of the plan are measured for performance success of the five drivers: velocity, flexibility, quality, cost and service. The master plan is a continuous closed loop process, and once performance drivers are assessed, the major activity returns to stage 1 for further diagnosis and development. This allows each company to select certain keyholes to leverage initially and work on others in subsequent iterations of the closed loop. Second Dimension: Six Keyholes To develop and implement supply chain agility, there must be an optimal balance in six key areas. The second dimension consists of six keyholes to be assessed and leveraged either individually or in combination.: · Production · Supply · Inventory · Location · Transportation, and · Information The following describes each of the keyholes: 1. Production Strategic decisions regarding production focus on what customers want and the market demands. This first stage in developing supply chain agility takes into consideration what and how many products to produce, and what, if any, parts or components should be produced at which plants or outsourced to capable suppliers. These strategic decisions regarding production must also focus on capacity, quality and volume of goods, keeping in mind that customer demand and satisfaction must be met. Operational decisions, on the other hand, focus on scheduling workloads, maintenance of equipment and meeting immediate client/market demands. Quality control and workload balancing are issues which need to be considered when making these decisions. 2. Supply Next, an organization must determine wh
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