Supply Chain Manager - Rev Job Shadow

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James A. Cinglie Purchasing Manager – Global Trim & Fabric 915 E. 32 nd Street, Holland, MI 49423 Automotive Products Seats Door Panels Headliners / Pkg Trays Floor Consoles Johnson Controls Quick Facts 3 Divisions: - Building Efficiency - Power Solutions Automotive Interiors HQ in Milwaukee, WI $28 Billion in Sales 150 Countries 142,000 employees “Supply Chain Manager”

What is a typical day?: 

What is a typical day? Working in my office Holding or Attending meetings Visiting factories (Travelling) Making telephone calls In Supply Chain Management, every day brings new challenges and experiences

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What are the responsibilities of a Supply Chain Manager ? Manage the supply chain Evaluate and communicate supplier metrics Quality (PPM) Delivery Responsiveness Sustainability Human Rights Request price quotes Analyze price comparisons Determine best options for transportation Select suppliers Negotiate prices for raw materials Negotiate long-term supply agreements Negotiate technology license agreements Negotiate agreements on cost models Pull in new innovations Manage risk avoidance* Learn how each purchased part is produced* Create aligned strategies and update as global conditions change*

What is a Supply Chain?: 

What is a Supply Chain? The path that materials or ingredients have to take to become a specific final product. Copyright © 2011 State of California Power Solutions Chain Automotive Experience Chain

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What is a Global Supply Chain ? Is this the total picture or is there another level of supply chain that exists? (Think Cow…)

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Why do we need a strategy to manage Supply Chains ? 1. Avoid Disruptions 2. Save Money

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What is a strategy and how does it work?

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What can disrupt a Global Supply Chain ? Lybia Civil War Japan Earthquake Thailand Floods

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How does a Supply Chain Manager save money ?

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Why is a Supply Chain strategy important? ACTIVITY 1 We need five volunteers please…

Supply Chain Process: 

Supply Chain Process Person #1 Adds one washer to each bolt. Person #2 Adds one nut to hold on the washer. Person #3 Adds two washers after the nut. Person #4 Adds two more nuts after the two washers. Person #5 Prepares product to ship to customers Inventory costs: Each Bolt = $2.5 Million Each Washer = $0.500 Mil Each nut = $0.350 Million Key Metrics Quality Defect: Any part or assembly dropped Goal: Produce as many parts as possible

Supply Chain Process – Attempt #1: 

Supply Chain Process – Attempt #1 Person #1 Adds one washer to each bolt. Person #2 Adds one nut to hold on the washer. Person #3 Adds two washers after the nut. Person #4 Adds two more nuts after the two washers. Person #5 Prepares product to ship to customers Inventory costs: Each Bolt = $2,500,000 x ___ = _______________ Each Washer = $500,000 x __ = _______________ Each nut = $350,000 x __ = _________________ TOTAL INVENTORY COST __________________ “Push + Bottlenecks” Key Metrics Time: 60 days (seconds) Output ___ Total Inventory Cost Scrap ___

Supply Chain Process – Attempt #2: 

Supply Chain Process – Attempt #2 Person #1 Adds one washer to each bolt. Person #2 Adds one nut to hold on the washer. Person #3 Adds two washers, then one additional nut. Person #4 Adds one final nut. Person #5 Prepares product to ship to customers “Pull + Bottlenecks” Inventory costs: Each Bolt = $2,500,000 x ___ = _______________ Each Washer = $500,000 x __ = _______________ Each nut = $350,000 x __ = _________________ TOTAL INVENTORY COST __________________ Key Metrics Time: 60 days (seconds) Output ___ Total Inventory Cost Scrap ___

Supply Chain Process – Attempt #3: 

Supply Chain Process – Attempt #3 Person #1 Adds one washer to each bolt. Person #2 Adds one nut to hold on the washer. Person #5 Prepares product to ship to customers “Pull + Bottlenecks + Disruption” Inventory costs: Each Bolt = $2,500,000 x ___ = _______________ Each Washer = $500,000 x __ = _______________ Each nut = $350,000 x __ = _________________ TOTAL INVENTORY COST __________________ Key Metrics Time: 60 days (seconds) Output ___ Total Inventory Cost Scrap ___ Person #3 Adds two washers, then one additional nut. Person #4 Adds one final nut.

Supply Chain Process – Attempt #4: 

Supply Chain Process – Attempt #4 Person #1 Adds one washer to each bolt. Adds one nut to hold on the washer. Person #2 Adds one washer to each bolt. Adds one nut to hold on the washer. Person #3 Adds two washers and one nut after the washers. Person #4 Adds two washers and one nut after the washers. Person #5 Adds final nut to each and prepares product to ship to customers “Pull + Disruption Strategy” Inventory costs: Each Bolt = $2,500,000 x ___ = _______________ Each Washer = $500,000 x __ = _______________ Each nut = $350,000 x __ = _________________ TOTAL INVENTORY COST __________________ Key Metrics Time: 60 days (seconds) Output ___ Total Inventory Cost Scrap ___

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Is this your dream job? Did you really DREAM of managing supply chains ? Middle School High School College Today “keep all options OPEN”

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Career Path High School Undergrad (BA) G raduate (MBA)

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What classes did you need ? ( psssst …will I ever use any of this school stuff?) Math English Science History etc Calculate Savings Compare Prices Financial Reports Negotiate Pay  Write Contracts Exec Presentations Important Memos …even emails Materials Mfg Processes Communication Int’l Business Company Culture Questions? “Learning how to learn is most important” Never stop learning. Problem Solving Skills

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Should I learn a foreign language? Copyright © 2007-2011 Muses3, LLC. All Rights Reserved Why not two…?

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Questions about education?

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Wha t is an example of problem solving skills ? ACTIVITY 2 We need three volunteers please…

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Comparing Prices

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Comparing Prices Price: $2.99 Price: $3.49 Price: $0.25 Which bag is the best price?

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Comparing Prices Price: $2.99 Net Wt: 4.5oz Price: $3.49 Net Wt: 5oz Price: $0.25 Net Wt: 2.8oz Why does the weight of each bag matter?

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Comparing Prices Price: $2.99 Net Wt: 4.5oz Price: $3.49 Net Wt: 5oz Price: $0.25 Net Wt: 2.8oz $2.99/4.5oz = $1.51 per oz $3.49/5oz = $1.43 per oz $0.25/2.8oz = $11.20 per oz

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What are the responsibilities of a Supply Chain Manager ? Manage the supply chain Evaluate and communicate supplier metrics Quality (PPM) Delivery (On time & Complete) Responsiveness (Minutes, Hours, Days) Sustainability (Materials & Financial Health) Human Rights (Global Citizen) Request price quotes Analyze price comparisons Determine best options for transportation Determine Make versus Buy Select suppliers Negotiate prices for raw materials Negotiate long-term supply agreements Negotiate technology license agreements Negotiate agreements on cost models Pull in new innovations Manage risk avoidance* Learn how each purchased part is produced* Create aligned strategies and update as global conditions change*

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Questions…?

Time for one more…?: 

Time for one more…?

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Where does it come from…? How do I think strategically…? ACTIVITY 3 Entire class…!

In-sourcing a process: 

Your company purchases sheets of fabric pre-cut pieces to the size needed. There is a cutting machine available to purchase for $500,000. Is there a lower cost to buy the machine and cut yourself or keep buying pre-cut sheets? Performing an activity yourself that you used to purchase is called in-sourcing or vertical integration. “in-house” In-sourcing a process

In-sourcing a process: 

Question #1: What do we buy today? In-sourcing a process

In-sourcing a process: 

Question #2: What is our new Unit of Measure, and how do we calculate the new price? In-sourcing a process Pre-Cut Sheet Un-Cut Roll

In-sourcing a process: 

Convert mm to inches: 1550mm /25.4 = 61.02 Convert mm to inches: 2832mm /25.4 = 111.49 Convert inches to yards: 111.49/36 = 3.10 Divide price per sheet by yards per sheet: $19.57 / 3.10 = $6.32 per yard In-sourcing a process Was there an easier way to calculate?

In-sourcing a process: 

Question #3: Now that we know the price, how much should we propose the manufacturer reduce their price? In-sourcing a process Pre-Cut Sheet Un-Cut Roll