Entropy Busters^TM Series

Entropy Busters^TM 

Volume 1 | Number 5 | December 2018

My passion is helping clients – Reshape and Transform their Supply Chain Management Strategy, Design, and shifting their paradigms on process sustainability.   

I utilize my Entropy Busters^TM, Inventory Is Evil!, and Unlock the Art of Change methodologies to achieve sustainable results. Improving Customer Service, while Increasing Inventory Velocity and profitability.

 

Let's discuss my Entropy Busters^TM  methodology.  One of your top priorities needs to be the elimination of Entropy within your Supply Chain.

But what is Entropy?  Besides the 2^ndLaw of Thermodynamics…

 

en · tro · py   /'entr?pe/ noun.

Lack of order or predictability; gradual decline into disorder.

 

When driving down the country road, it's the unkept house, the barn, or even the neighbor's yard.  But how does this fit into my supply chain?

Not having, following or timely processes for:

• Cycle counting
• Updating supplier lead-times
  • min/multi,
  • pricing,
  • etc.
• Being certain buyer and planners have Zero unplanned demand at the end of each work day.
• Having a process to fix data accuracy as the errors occur.
  • Aged PO's,
  • stranded purchase requisition's,
  • aged work orders,
  • etc.

 The Team comes to work every day and they're working within silos, even within supply chain management.  There is not process to get them on the same page, paragraph or even verse.

 

Everyone is working hard.  However, inventory is still too high, there are too many surprise stock outs and service to the customer is too low.

 

Individually, each of these might not sound like a contributing factor, however, the combined probability of error wreaks havoc to your supply chain Organization and processes.  How do you know when there is an Entropy problem?  When the process is managing you and you're not managing the process.

 

en · tro · py   bust · ers^TM   /'entr?pe 'b?st?r / noun.

 

Person or persons that breaks, destroy, or overpowers the lack of order, predictability or gradual decline into disorder.

How is this fixed…?  What are these processes?

 

It's about

• Utilizing Visual Daily Management -VDM, where you can see if you're in control or where the "Pain" point is.
• Building a Cadence to the daily update reviews.
• Being a Zealot and having many more zealots, to be certain the cadence of visual management doesn't slip.

 Here are some examples of visual processes:

• Different color Kanban bins for different lines,
  • From across the plant you can determine if one is out of place.
• Daily production and/or process reviews with cross functional team members, working out the details for the next 72 hours…
  • If the review takes more then 15/mins, it's broken…
• Daily Green / Red VDM reviewing supply chain management data; unplanned demand, aged PO's, aged requisition's,  etc.
• Being certain everyone on the Team has a role to play…
  • They are part of the solution.

If you build this closed loop process, and you don't "fool" yourself with the completeness.

• Your surprises will significantly reduce
• And the Team will be more focused, will be working "smarter" and morale will increase.

Thanks in advance for your time. As always, thanks for being a loyal client. Looking forward to helping you and your team again soon.

Carpe diem,

Art Koch

Arthur Koch Management Consulting, LLC

info@arthurkochmgt.com

+1 (336) 260-9441

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