what things do leaders do?

Personal Responsibility. - “Enron and 9/11 marked the end of an era of individual freedom and the beginning of personal responsibility. You lead today by building teams and placing others first. It’s not about you.”
Simplify Constantly. “I use Jack [Welch] as my example here. Every leader needs to clearly explain the top three things the organization is working on. If you can’t, then you’re not leading well.”
Understand Breadth, Depth, and Context. “The most important thing I’ve learned since becoming a manager is context. It’s how your company fits in with the world and how you respond to it.”
The importance of alignment and time management. “There is no real magic to being a good leader. But at the end of every week, you have to spend your time around the things that are really important: setting priorities, measuring outcomes, and rewarding them.”
Leaders learn constantly and also have to learn how to teach. “A leader’s primary role is to teach. People who work with you don’t have to agree with you, but they have to feel you’re willing to share what you’ve learned.”
Stay true to your own style. “Leadership is an intense journey into yourself. You can use your own style to get anything done. It’s about being self-aware. Every morning, I look in the mirror and say, ‘I could have done three things better yesterday.’ “
Manage by setting boundaries with freedom in the middle. “The boundaries are commitment, passion, trust, and teamwork. Within those guidelines, there’s plenty of freedom. But no one can cross those four boundaries.”
Stay disciplined and detailed. “Good leaders are never afraid to intervene personally on things that are important. Michael Dell can tell you how many computers were shipped from Singapore yesterday.”
Leave a few things unsaid. “I may know an answer, but I’ll often let the team find its own way. Sometimes, being an active listener is much more effective than ending a meeting with me enumerating 17 actions.”
Like people. “Today, it’s employment at will. Nobody’s here who doesn’t want to be here. So it’s critical to understand people, to always be fair, and to want the best in them. And when it doesn’t work, they need to know it’s not personal.”

Ten Habits of Incompetent Managers"

1. Bias against action: "There are always plenty of reasons not to take a decision, reasons to wait for more information, more options, more opinions. But real leaders display a consistent bias for action. People who don’t make mistakes generally don’t make anything."
2. Secrecy: "….If you treat employees like children, they will behave that way — which means trouble. If you treat them like adults, they may just respond likewise. Very few matters in business must remain confidential and good managers can identify those easily…. Secrets make companies political, anxious and full of distrust."
3. Over-sensitivity: "An inability to be direct and honest with staff is a critical warning sign. Can your manager see a problem, address it headlong and move on? If not, problems won’t get resolved, they’ll grow…… Interestingly, secrecy and over-sensitivity almost always travel together. They are a bias against honesty."
4. Love of procedure: "Managers who cleave to the rule book, to points of order and who refer to colleagues by their titles have forgotten that rules and processes exist to expedite business, not ritualize it."
5. Preference for weak candidates: "…Who did our manager want to hire? The junior. She felt threatened by the super-competent manager and hadn’t the confidence to know that you must always hire people smarter than yourself."
6. Focus on small tasks
7. Allergy to deadlines: "A deadline is a commitment. The manager who cannot set, and stick to deadlines, cannot honor commitments. A failure to set and meet deadlines also means that no one can ever feel a true sense of achievement."
8. Inability to hire former employees: "… Every good manager has alumni, eager to join the team again; if they don’t, smell a rat."
9. Addiction to consultants: "A common — but expensive — way to put off making decisions is to hire consultants who can recommend several alternatives."
10. Long hours: "In my experience, bad managers work very long hours. They think this is a brand of heroism but it is probably the single biggest hallmark of incompetence. To work effectively, you must prioritize and you must pace yourself. The manager who boasts of late nights, early mornings and no time off cannot manage himself so you’d better not let him manage anyone else

self destruct

Some people will not allow themselves to succeed
It’s a very real situation. I initially had the notion, “I can teach anyone!” I would take even the most difficult people and I would find a way to turn them around. I would find ways to reach even the most unreachable people. I’ve said many times, “I can reach this manager, I can turn them around, and I can make the difference.” This is not a realistic view. You are not going to succeed in training everyone. The simple truth is, not everyone will succeed. Those who do not succeed will fail because they simply did not want to succeed.
Realizing and accepting that some managers cannot be trained and will not succeed can be very difficult, especially if you’re a trainer first and a people manager second. It can be very difficult to accept. Knowing “when to say when” is the key. Once you give a manager the tools, explain how to us them, and provide feedback and follow-up, you have done your part. It is the manager’s responsibility to take these tools and use them. At least ninety percent of a manager’s development is the responsibility of that manager. As the trainer/developer you are only responsible for the initial five percent (the explanation of expectations and the tools) and the continued training accounting for approximately an additional five percent. The development in-between is that manager’s responsibility.
What do you do when someone is not succeeding? Some of us go back and retrain, we rethink ourselves, and we do more work than we should trying to salvage what we can. We believe we can take anyone and turn them into a success. It is entirely possible if that person wants to succeed; they must be willing to do what needs to be done to succeed. If they will not, they will not succeed. And you can either continue to frustrate yourself and others within your organization, or you can realize their lack of commitment and focus your energies on other matters.
Discovering someone is not going to make it within an organization is not a failure. It’s a success. The moment you finally say to yourself, “I’ve done what I can,” can be a moment of relief. Freeing yourself from the draining task of retraining individuals that were not committed in the beginning is a great success. The simple fact that person did not succeed is not your failure. It is your success to realize your energies are worth much more invested in those who will take you and your organization to the next level.

care continued.

Most managers miss a very important opportunity to build their team. If you ask the average employee what is important to him, he will probably start with his family, his interests, things outside of work. His job will definitely be one of the things he mentions but pay attention to what else is said. If you know your employee’s daughter, husband, or wife is the most important thing in his or her life, do you know that person’s name? Do you know some interesting fact about that person? How can you convince your people to care about your ideas, your work, your initiatives, if you cannot take the time to care about what is most important to them? If Ratna’s daughter had an incredibly important talent test, did you take the time to ask how it went?
Take the time to care about your people and they’ll pay you back ten fold.

accoutability at work

One of the biggest mistakes managers can make is to continuously frustrate their employees by not holding them accountable.
Believe it or not, it can frustrate your employees as much as it does to you. Accountability is the key to achieving results and helping identify the opportunities in your organization. Holding employees accountable helps them to know the satisfaction of achieving a goal and performing to standard (or above!)
If you find yourself addressing the same issues in the same manner time and time again, you might have an issue with accountability.
The same is true if you don’t see your employees and your organization moving forward. The first step is to identify in which areas you find yourself and your team stagnant. Everyone will easily choose at least one area in which they would like to see improvement. To master accountability, choose this one area and focus on it first. Once you see the results, you’ll be inspired to approach all performance issues with a keen focus on accountability.
The Hallmarks of Accountability
Understood Goals - the employee must understand what the team is trying to achieve
Buy in - employees must believe in the goal and be a part of the success
Benchmarks and a Quantifiable Result - employees need milestones and a result that can be measured
Dual Feedback - feedback from the supervisor to the employee and from the employee to the supervisor
Evaluation - once a goal is accomplished, celebrate the success

To be successful, the manager must also hold themselves accountable to following through with accountability. One of the biggest failures is to start the process and not follow through with it. This causes the employee to lose respect for the process and to question a supervisor’s commitment, which can undermine the entire organization. Once accountability becomes a part of your management style and organization, you will see improved results and more satisfied employees.

care

It is critical for your people to feel you connect with them on more than a professional level, and before I get you concerned about what’s appropriate, let me explain. Every good manager knows employees want to feel valued. Many management courses teach the importance of ‘knowing you people’. What’s important to your people? What motivates them outside the workplace? Is it a desire to their children get into a good college? To finish a couse ? What excites and motivates your people?
This is the perfect time of year to find this out. To ask your people about their goals for 2008 in their own lives. What do they hope to achieve? To accomplish? Take this knowledge and let it help you to be a better manager. Let your people you know you care about them not only as employees but as people. Find a way to help them achieve these goals. A book on training?
What can you do to show your peopleyou care about the things that matter to them?

situational leadership???????

Those of us who propogate situational leadership will no doubt know one of the biggest and most often made mistakes is to consider someones commitment and directional level in one situation to be the same across all situations. I made this mistake very recently. And I made it with myself. My commitment to managing my time and my skill set managing my time are both exceptional. I require little direction and I have a great enthusiasm. However, I don’t have the same level of skill or commitment to managing others’ time.
I discovered I wasn’t committed, I wasn’t enthusiastic, and I didn’t have the skill set I thought I did. I had made the mistake of assuming I was great at managing others’ time since I was an excellent manager of my time. I was wrong. I immediately began seeking insight into my opportunity. And a side product of being a learner (has anyone discovered that strength?), my side product was my increased excitement as I learned more.
The lesson is to remember it’s “situational” leadership and “in every instance” leadership. (ha ha)

success: a thought that flashed & i penned.

Success breeds success. Nothing is as sweet as success. It is the journey through pain, agony, hard work, planning, strategy and bits of luck that cultivates what is known as success.
The difference between success and failure is wafer thin.
The greatest success principle I have come across is “learn from the experts”. Don’t reinvent the wheel. If you want to succeed find out what other successful people are doing and do the same things until you commence to reap similar results. Most successful people have on comman trait i.e. they are “very well organized” and in order to be so they use their time very well. They are highly productive and get more work done than average people for a similar period of time. These successful people are high performers with qualities to be both capable and efficient. They do things right in the right way at the right time with the right approach having the right attitude and aptitude. As a result their contributions in the spheres of work are far more than an average individuals .

what it takes to win

World-class performance requires a company strategy that will encompass both quality and productivity improvements that don't stop until perfection is reached or at least there is a pursuit in the direction of excellence benchmarking “Best in Class”. As this can be achieved when people work together, it can't be automated or programmed. It is a continuous process that feeds on the synergism of human teamwork focused on satisfying all of the pie that encompasses customer’s price, quality, delivery and service want.

To a large number of misinformed professionals today, JIT is a quick delivery system thriving on an unsuspecting supply base or an inventory management system.

Quality is promoted under various TQM banners, which completely ignores productivity concerns. The goodness of quality will not win customers at noncompetitive prices. Team building has been promoted as a way to create a mystical problem solving, money-saving force that can operate in a near vacuum. (Such programs usually die in a few years/months for lack of leadership from disappointed/not-interested leaders in the management chain.) Many of the JIT productivity elements, like group technology cells, setup reduction and pull system, have been implemented in isolation of one another, resulting in partially effective islands of change. In fact, it's been fouled up so completely that I've started calling the original strategy REAL JIT to differentiate it from the smorgasbord that's out there today. It’s a real SNAFU for all present proponents of the concept. One needs to see what’s boiling in the pot to really comprehend the status of JIT.

Whatever you call it the most important thing to remember is that the winning process is like a good recipe. All of the proper ingredients in the right proportions, properly blended and nurtured in the right environment are necessary. If you decide to omit something that doesn't appeal to you or that you're afraid to try (Our volumes are much too low to try mixed-model scheduling.), then you won't get what you expected. But, whose fault is that?

The REAL JIT Recipe

First, you need a strategic envelope that will guide all of the tactical decisions that will be necessary as you move to world-class performance. That strategy must simultaneously encompass the essence of customer satisfaction: best quality, lowest prices, fastest delivery and regal service. While tactical elements can be implemented sequentially, the biggest mistake most companies make is failure to adopt the total strategy up front. That's why I use a coin to describe the JIT Strategy. It has two facets, the productivity and quality sides, but the two are part of the same whole and cannot be separated.

Productivity Principles

The productivity strategy requires that we abandon the traditional approach of trying to out-guess the customer to compensate for a slow manufacturing process and replace it with an immediate response, build-to-order process. To do that, we have to eliminate every wasteful, time-consuming practice and investment in the business that doesn't add value for the customer to get truly lean and mean. The ultimate goal is to produce one-at-a-time, in any flavor with near-zero lead-time. Obviously, this cannot be achieved in one step, so the guiding principle for this strategy is one of continuous improvement, which, in turn, can only be accomplished by the nurturing of all the human brainpower in the company. These improvements will lead to the elimination of all the contingency investments we've made, just in case something might go wrong. Finally, because so much of our traditional approach to business has been short-term oriented (as demonstrated by the instant-return and break-through schools of wishful thinking), we must recognize that this is a major cultural change, which can only be achieved as part of an evolutionary, long-term strategy.

AGILE MANUFACTURING

1. Introduction
Manufacturing sector is on the verge of a major paradigm shift. This shift will move us away from mass production, way beyond lean manufacturing, into a world of Agile Manufacturing. Furthermore, at this point in time, Agile Manufacturing is not well understood and the conceptual aspects are still being defined. Agile Manufacturing is viewed as another programme of the month, and to use the term Agile Manufacturing as just another way of describing lean production, flexible manufacturing .
Many companies today are under going transformations - reengineering business processes, flattening hierarchies, empowering people, implementing lean production concepts, etc. The laundry list is almost endless. But none of these massive transformations, on their own or taken collectively, constitutes the implementation of Agile Manufacturing. What Agile Manufacturing really represents is the potential for a quantum leap forward in manufacturing. Instead of just chasing after the Japanese by copying their techniques in a prescriptive fashion, or implementing our own prescriptions, in Agile Manufacturing we should be trying to achieve a competitive lead by doing something that our competitors are not doing or intending to do in the near future. This I believe is will be our cutting edge…………………
Agile Manufacturing is something that many of our business houses have yet to fully comprehend, never mind implement. Agile Manufacturing is likely to be the way business will be conducted in the next century. It is not yet a reality. Our challenge is to make it a reality, first by more fully defining the conceptual aspects, and secondly by venturing into the frontier of sucessfull implementation.
In this paper we will examine some of the key issues relevant to the development of Agile Manufacturing. Owing to space limitations a very brief overview of Agile Manufacturing.
2. Definition and Concepts
The problem with a new idea such as Agile Manufacturing is the lack of a good sound definition and a set of concepts that most people would agree upon.
Agile Manufacturing should primarily be seen as a business concept. Its aim is quite simple - to put our company way ahead of our primary competitors. In Agile Manufacturing our aim is to develop agile properties. We will then use this agility for competitive advantage, by being able to rapidly respond to changes occurring in the market environment and through our ability to use and exploit a fundamental resource -knowledge.
One fundamental idea in the exploitation of this resource is the idea of using technologies to lever the skills and knowledge of our people. We need to bring our people together, in dynamic teams formed around clearly identified market opportunities, so that it becomes possible to lever one another's knowledge. Through these processes we should seek to achieve the transformation of knowledge and ideas into new products and services, as well as improvements to our existing products and services.
The concept of Agile Manufacturing is also built around the synthesis of a number of enterprises that each have some core skills or competencies which they bring to a joint venturing operation, which is based on using each partners facilities and resources. For this reason, these joint venture enterprises are called virtual corporations, because they do not own significant capital resources of their own. This, it is believed, will help them to be agile, as they can be formed and changed very rapidly.
Central to the ability to form these joint ventures is the deployment of advanced information technologies and the development of highly nimble organisational structures to support highly skilled, knowledgeable and empowered people.
Agile Manufacturing enterprises are expected to be capable of rapidly responding to changes in customer demand. They should be able to take advantage of the windows of opportunities that, from time to time, appear in the market place. With Agile Manufacturing we should also develop new ways of interacting with our customers and suppliers. Our customers will not only be able to gain access to our products and services, but will also be able to easily assess and exploit our competencies, so enabling them to use these competencies to achieve the things that they are seeking.
3. Some Key Issues in Agile Manufacturing
3.1 The "I am a Horse" Syndrome
There is an old saying that hanging a sign on a cow that says "I am a horse" does not make it a horse. There is a real danger that Agile Manufacturing will fall prey to the unfortunate tendency in manufacturing circles to follow fashion and to relabel everything with a new fashionable label. The dangers in this are two fold. First, it will give Agile Manufacturing a bad reputation. Second, instead of getting to grips with the profound implications and issues raised by Agile Manufacturing, management will only acquire a superficial understanding, which leaves them vulnerable to those competitors that take Agile Manufacturing seriously. Of course this is good news for the competitors!
One sure way to fail with Agile Manufacturing is to hang a new sign up. Get smart, resist the temptation, and put the paint brush away.
3.2 The Existing Culture of Manufacturing
One of the important things that is likely to hold us back from making a quantum leap forward and exploring this new frontier of Agile Manufacturing, is the baggage of our traditions, conventions and our accepted values and beliefs. A key success factor is, without any doubt, the ability to master both the soft and hard issues in change management. However, if we are to achieve agility in our manufacturing enterprises, we should first try to fully understand the nature of our existing cultures, values, and traditions. We need to achieve this understanding, because we need to begin to recognise and come to terms with the fact that much of what we have taken for granted, probably no longer applies in the world of Agile Manufacturing. Achieving this understanding is the first step in facing up to the pain of consigning our existing culture to the garbage can of historically redundant ideas.
3.3 Understanding Agility
Agility is defined in dictionaries as quick moving, nimble and active. This is clearly not the same as flexibility which implies adaptability and versatility. Agility and flexibility are therefore different things.
Leanness (as in lean manufacturing ) is also a different concept to agility. Sometimes the terms lean and agile are used interchangeably, but this is not appropriate. The term lean is used because lean manufacturing is concerned with doing everything with less . In other words, the excess of wasteful activities, unnecessary inventory, long lead times, etc are cut away through the application of just-in-time manufacturing, concurrent engineering, overhead cost reduction, improved supplier and customer relationships, total quality management, etc.
We can also consider CIM in the same light. When we link computers across applications, across functions and across enterprises we do not achieve agility. We might achieve a necessary condition for agility, that is, rapid communications and the exchange and reuse use of data, but we do not achieve agility.
Thus agility is not the same as flexibility, leanness or CIM. Understanding this point is very important. But if agility is none of these things, then what is it? This is a good question, and not one easily answered. Yet most of us would recognise agility if we saw it.
For example, we would not say the a Sumo wrestler was agile. Nor would we think that 50 Sumo wrestlers, tied together by a complex web of chains and ropes, all pulling in different directions, as agile. Quite the contrary. We would see them as lumbering, slow and unresponsive. However, we would all recognise a ballet dancer as agile. We would also think of a stage full of ballet dancers as agile, because what binds them together is something quite different.
This analogy between Sumo wrestlers and ballet dancers is very relevant to understanding the property of agility. Many of our corporations, to varying degrees, resemble Sumo wrestlers, tied together, but all pulling in different directions. If we want to develop agile properties, we need to understand what causes agility and what hinders agility. Only when we have developed this understanding can we begin to think about designing an agile enterprise. For, when we have such an understanding of the causes of agility, we can start to audit out current situation, and identify what needs to be changed.
4. Remarks
We have spent much time copying the Japanese. Now we may be about to teach the Japanese something. For a change, Indian manufacturing industry is realising that it has very little to gain, in the long term, by copying what other people are doing. There is now a growing realisation that global preeminence in manufacturing can only be achieved through innovation. We can learn from others, but in a highly competitive world we can only become world leaders if we develop new ideas that take us beyond the state-of-the-art. Basically, the issue is, should we adopt lean manufacturing in our own enterprises, i.e. should we mimic the Japanese, or should we do something different and better?
Without doubt there are a significant number of people who believe that we have to adopt lean manufacturing. But in adopting this approach we run the risk of forever chasing after a moving target. The Japanese will keep innovating. Thus, adopting lean manufacturing can only be a short term measure aimed doing something to close the competitive gap. In the longer term, if we want to catch up with and overtake the Japanese, lean manufacturing is not the answer. What we need to do, is something which the Japanese cannot do. That something may well be Agile Manufacturing.

THE COACHING PROCESS

I. Before The Coaching Session
A. Step One: Define expectations for the job.
• Is there a job description?
• Have expectations of good performance been communicated? How? When?
• Are you confident that the employee knows what is expected?

B. Step Two: Observe performance. Have you conferred with other managers or operations personnel with whom this person is likely to work? Do you have specific behaviors to support the ratings and agrees on the appraisal form?

C. Step Three: Review goals established from previous coaching sessions, if applicable. Were the goals achieved? Were goals not achieved? Are there any developmental areas established in the last review? Remember that the coaching process is ongoing; performance is reviewed daily, weekly, quarterly. There should be no surprises during the review. One should not save all the problems occurring in the previous 12 months and unload them during the coaching session. It is hoped that most problems are addressed when they occur.

D. Step Four: Allow the employee to prepare a self-appraisal. Meet with the employee one or two weeks prior to the coaching session. The following communication is suggested:

“Ganesh, we have scheduled your coaching session for next week. I would like you to complete an appraisal of how you see your performance as it relates to the skill areas on the form. I’d also like you to identify skill areas that you feel identify your major strengths plus any skill areas where you feel additional development may be necessary. Be prepared to discuss the progress in previous goals or developmental areas established in our last review. Finally, identify at least two goals for the coming 12-month period. We will also be talking about your career development. Please complete the form I will provide. Our goal is to compare our forms so that I can objectively discuss your performance.” (Ensure form is understood and how skill ratings are evaluated—clear up perceptions from the beginning).

II. Opening The Appraisal Meeting

A. Step Five: The following verbal and nonverbal skills are important when setting the proper climate factors for the evaluation.

1. The goal of the coaching session is to maintain a relaxed mood so that proper communication and trust will occur. This relaxed mood is related to how you present your communication in both the verbal and nonverbal sense. It is important to realize that this is not a “military inquisition.” You are conducting a business meeting to provide feedback to your employee on job performance. Above all, be yourself.

2. The following nonverbals are important:

a. Eye Contact. Look directly at the employee when speaking; nod your head; smile when appropriate; display interest.
b. Nearness. Sit at a close, comfortable distance. Avoid sitting behind large desks.
c. Posture. Sit straight; be attentive; maintain a symmetrical posture with employee.

3. The following verbals are important:

a. Small Talk. “Break the ice” initially; talk about family, a recent happening. Each employee is different; use whatever approach will build rapport and reduce nervousness. Some employees prefer a direct “strictly business approach.”
b. Prods. Acknowledge listening. “Uh huh…I see…Hmmm…Go on…Tell me more about that.” Use open-ended questions like why, how, when, where; get employee to talk.
c. Speak Positively. Compliment; show appreciation; acknowledge where appropriate.

III. The Coaching Session Begins

A. Step Six: State purpose and objectives of the appraisal.

1. The primary purpose of a coaching session is four-fold:

• Provide feedback on performance
• Increase job satisfaction and productivity
• Help strengthen the employee’s skill areas
• Develop a career plan

The following open communication is suggested:

“Gnesh, we have both had an opportunity to complete our appraisal forms.”
“The best way to conduct this meeting is to have you present your self-appraisal first by reviewing each skill area one at a time. Once you have done this, I would like you to identify the skill areas you feel may need additional development. While you are doing this, I will be listening and recording some notes. Where appropriate, I may ask you question to clarify your responses.”

“After you present your assessment, I will present my assessment of the skill areas. We will address the skill areas where we have agreement first, followed by the skill rating where we differ. We will openly discuss these areas in an effort to reach consensus.”

“Finally, We will review previous accomplishments/goals established during the last review. We will then set the necessary goals to strengthen any developmental areas. Do you have any questions, Mary? (Allow time for response). Okay, let’s proceed…”

Note: You will find this approach to be quite effective. There is a higher level of commitment when the employee is allowed to participate. They will generally identify developmental areas first and tend to underrate their skills.

B. Step Seven: Techniques for presenting information

The following techniques may prove helpful in presenting information during the performance appraisal. You may reference the attachment entitled “Cause and Effect Relations in Three Types of Appraisal Interviews.” (C.O.R.E. Corp., 1987)

At this point of the appraisal, the employee has presented his or her assessment. There will be areas of agreement and (perhaps) disagreement. The areas of agreement are easy; the challenge comes in communicating areas of disagreement in such a way that the employee will accept your recommendations. The following approaches, or combinations thereof, may be helpful:

1. The Tell-and-Sell Technique. This is used to persuade an employee to improve. This may be used nicely in skill areas where both parties have agreement. The employee is aware of developmental areas and wishes to correct them. You provide evidence and counsel on how the employee can change behavior for the better.

2. The Tell-and Listen Technique. The employee is defensive and may disagree with an aspect of the evaluation. Use listening rather than selling skills. People will change if defensive feelings are released. Make a statement to the employee about the behavior; allow employee to comment; ask probing questions; summarize feelings. Once both parties understand each other, then agree on a way to correct.

3. The Problem Solving Technique. A helper of sorts. The employee does not recognize a problem in behavior or asks for your assistance in correcting. You will jointly analyze the problem together; probe for reasons; ask questions; make and ask for suggestions. Essentially, you jointly solve the problems together and develop an action plan to correct it.

Note: These techniques may work in tandem; that is, a tell-and-listen technique may work into problem solving. Or, a tell-and-listen may work into a tell-and-sell if there is no agreement. It all depends. (See attachment 3)


D. Step Eight: Discuss Career Development Goals

This is perhaps the most important part of the coaching session. It is time to focus on the person and their career needs and aspirations. Before you move to pure goal setting, ask these questions of the employee.

How can I improve my effectiveness of a supervisor in helping you be successful in the job?

How would you describe success in your current role?

What part of your job do you enjoy most and why?

What part of your job are your struggling with the most and why?

What skills, knowledge or abilities do we need to strengthen?

Looking down the road, let’s say three years or so, what do you think would be the perfect role for you? Why?
Given you stated desires and growth objectives, what steps can we take today and what resources can we provide to you to your personal and professional objectives with the company?
How do you suggest we approach this process from here? Let me suggest you capture these ideas we just discussed and let’s establish a personal development plan for you moving forward.
It is important to close the interview on a positive note. Set the date for the next review and set up a monitoring system for goal achievement. Advise the employee that you will be transferring information to a new form, and they will be allowed to offer comments.

C. Step Nine: Set goals and develop action plan

You have now reviewed the forms, discussed ratings, agreed on some initial action and hopefully engaged in some career discussions. Once you have reviewed each skill area and reached some form of consensus, you are ready to establish developmental goals. Do not be disappointed if the employee does not agree with your recommendations despite all of these wonderful strategies. You may have to change the focus and simply provide direction on what you expect. Try and turn things into a positive format by demonstrating your sincere willingness to help them strengthen any developmental areas. (See constructive Conversation Catalysts in attachment 1).

1. Allow the employee to discuss the goals they had set prior to the evaluation. Have the employee explain:

• What is their goal (in specific terms)?
• How can it be achieved?
• When do they expect to achieve it?
• Why it is important to their continued success?

2. Once the employee identifies the goals (some may not), then proceed with an explanation of your goals. Avoid directive phrases such as “you will.” Use phrases like “I would like,” “How do you feel about?” “What is your best estimate, Mary, on when we can achieve this?” If they agree, terrific. If not, present your goals. (Refer to attachment 2 entitled “Checklist for Setting Good Objectives.” All goals should satisfy the four-step criteria established above, see attachment 5).


E. Step Ten: Set date for next review and Deliver what you promise

Monitor performance regularly to ensure goals are achieved. Don’t wait until next year. Performance is evaluated daily. It has been said that feedback is the breakfast of champions!

reflections

 failures in life are people who don’t try
 Success is how well we do compared to what we are capable of.
 Positive thinking with" effort” increases the probability of success.
 Negative thinking with “effort” decreases the probability of success
 Positive thinking backed with positive actions comes with positive believing.
 Good leaders look to create more good leaders unlike leaders with inferiority Complexes who are afraid that they may loose the chair&position
. People with high self esteem & self confidence create more leaders.
 Synergy is greater than energy.
 Can v motivate people ? No. bcos it is an action
 Why do people get demotivated?
 Who motivates the motivator?
 The greatest motivator is “ belief”
 If u believe u cannot do it then you do justify that you can’t do it & vice versa.
 Losers don’t like to do things, winners too don’t like to do things but do it.
 Winners always put in the extra effort even when it hurts
 Winners always put in 200%.
 Winners always compete against themselves.
 Values are taught in the formative years.
 Culture in an organization goes –TOP DOWN.
 We need to turn our weakness into our strengths.
 Losers always rationalize.
 Bigger the problem bigger the opportunity.
 Ability without dependability is a liability.
 Only crackpots watch out for Jackpots.
 Parenting & Leadership are not popularity contest.
 People who never learn to obey can never learn to command.
 Empathy is –I feel what u feel, sympathy is-I understand what u feel.

ps of power
 Position power
 Personality power
 Power that comes based on principles & character.

Leader has to make Decisions.
3CS OF Decision
 Decision of command
 Decision of consultation
 Decision of consensus
Communication -3levels of communication.
 Physical-appearance
 Intellectual
 Emotional-unsaid.
Never laugh at anyone’s dreams; people who don’t have dreams don’t have much
Talk slow but think quickly
When u lose don’t lose the lesson
Remember the 3RS:
RESPECT FOR SELF
RESPECT FOR OTHERS
RESPONSIBILITY FOR YOUR ACTIONS.

THE KEY TO EVERTYTHING IS PATIENCE: U GET THE CHICKEN BY HATCHING
NOT SMASHING IT
LIFE IS A JOURNEY NOT A GUIDED TOUR.
NEVER LET FEAR OF STRIKING OUT GET IN UR WAY.
TO HANDLE UR SELF USE UR HEAD TO HANDLE OTHERS USE UR HEART.

thanks a million to my dear friend rajanish nayak for this piece of information.

transition

“ The number one charecteristic of students who later become
heads of companies is the ability to withstand uncertainty”

The transition from college to your first professional job can be an exciting yet emotional and stressful experience. You will be required to meet challenges, make adaptations, and deal with a number of decisions and frustrations during this process. Understanding the transition process itself can help reduce the stress you experience and hopefully enable you to feel a greater sense of control over your life as a new professional.
As you make your transition, keep in mind that there are two transitions occurring at the same time.
• Your professional transition - learning the ropes of your new job.
• Your personal transition - adjusting to life out of school and on your own.
The Transition Process
There are three basic stages in any transition.
Separation: End of college and end of being a college student
The first stage of transition is marked by some type of ending. In your case, it is the completion of college marked by the ritual of graduation. During this stage you may:
• Experience reality
• Feel a need to reflect on your college years in order to make sense of it all
• Resist letting go of this phase of your life that you have come to know so well
• Experience how to cope with the changes that are implicit in professional life
Temporary Disorientation: Beginning full-time employment and becoming a new professional
In this second stage, the process of letting go may bring feelings of disorientation. You know that you are on the threshold of something new but have little or no idea what it looks like. The good news is that this disorientation is only temporary. Being aware of this can enable you manage it better. Included in this stage is your first year on the job where you must:
• Learn the norms of your employer's culture
• Shift your own perceptions and behaviors as you adapt to your new work environment
• Fine tune your adaptation strategies so that you begin to feel you fit in
• Begin to gain a feeling of competence as one of the group
Connection: Completing your first year on the job and becoming a fully integrated professional
In the final stage of transition, you will feel increasingly comfortable in your new environment. The newness and strangeness wears off and you experience the feeling of having more control again. During this stage you will:
• Continue to settle-in with purposeful intention
• Feel less resistive and more accepting to additional changes
• Take more control of how you accommodate the demands of your work
• Be better able to seek balance between all aspects of your life
It Takes More Than Book Learning
No matter what your field, the transition from college to work involves moving into a new culture where people will dress, communicate differently and be recognized for behaviors unlike those expected of you while in college. Just as you had to develop new skills and strategies for being successful at College life, you will again have to discover new skills and strategies for being successful in your new work and living environments.
Acceptance into your new work environment has to be earned and evolves over time. This is why the first year on the job can be a critical one. Unfortunately, employers of new graduates often complain that their new professionals are naive and immature. Why? Because they are perceived to:
• Hang on to their college behaviors too long
• Try to behave like a seasoned professional too soon
While college generally prepares you for many of the task-related aspects required for your job, it may not prepare you for the non-task related aspects such as how to:
• Fit into the new culture
• Earn respect and credibility
• Learn the informal structure
• Understand the policies and practices of the organization
• Discover the unwritten expectations
• Build effective working relationships
• Become accepted as a team member
• Understand the power and reward structures
• Learn how to accomplish things
Basic First Year Strategies
Be aware of your first year tasks.
The first step to success is an understanding of the big picture that provides you with tasks typical of your first year.
Learn the culture.
Every organization has a unique culture and set of rules and norms about how things are done and how people behave. Take time to learn about and understand the culture and politics of your organization. What is the basic mission and philosophy? What do people expect of you? Observe how people communicate with each other. Find ways to fit in to the existing culture. You can't begin to make changes in the culture until you have been accepted into it.
Maintain a good impression.
In the beginning you may feel like you are in a fishbowl and all eyes are on you. They may well be! People will watch you and try to assess your skills and abilities. Everything you do early will be more visible and its impact. Be aware of your attitude and keep your "best self" forward as much as possible.
Learn the art of being new.
Being new requires different ways of thinking. Instead of thinking you have to stop being "new" as soon as possible, understand that being new is an important part of your transition process. Your primary tasks are to learn about the organization and become accepted by your colleagues.
Manage your expectations.
Identify and understand your own expectations. Often a new graduate's expectations do not match their new reality and then disappointment can result. Regularly give your expectations a reality check and adjust them as needed.
Become a savvy subordinate.
The most important person is your boss. The boss-subordinate relationship is likely to be different from any you have had before. It is your boss that sets your agenda and supporting him or her should be a primary task.
Seek out mentors.
Whether a mentoring relationship develops informally or formally, mentors can be a big help during your first year.
Making a successful transition is your responsibility. Awareness of the three transition stages, Separation, Temporary Disorientation, and Connection will help you recognize where you are, accept it as part of the process and manage it more successfully.

manufacturing - dull, dirty & with no glamour

. It is tough for manufacturing to compete for talent because of this smokestack stereotype. Although most of us were neophytes regarding advanced manufacturing, we expected to see wonders rather than drudgery. After all, this was advanced manufacturing. And in many respects our expectations were fulfilled. We saw chip fabrication lines - as antiseptic as operating rooms - whose life cycle is four years. We saw auto plants as clean as cafeterias where robots outnumbered human workers. So much for dirty. We repeatedly saw production runs of single units . We also saw long production runs in process, but the trend was clearly toward rapidly reconfigurable production and shorter, customer-responsive runs. The dull stereotype is therefore also outdated. We saw plants where the latest technology is hand fitted in buildings that are not much altered from fifty years ago. So our preconceptions of what ‘advanced’ means were challenged, too.
Opportunities for increasing profit are deeply explored. The relentless way in which profit incentives drive technological innovation in the private manufacturing sector explains much of the widening gap between that sector and the defense sector, in the use of automation technology and best management practices. Enterprise resource planning, lean manufacturing practices, just-in-time inventory control models, and the outsourcing of non-core capabilities were commonplace in the firms visited. Reliance on web-based capabilities, some which link manufacturers with their customers and suppliers, and others uniting global networks of production units, was a notable trend.
and an understanding that successful manufacturers integrate people, processes and technology to rapidly turn materials into finished products that address customer needs.
As problematic as manufacturing is, we report rapid consolidation of advances in materials, processing, management and information. We see renewed productivity and new marvels. That is the ascending baseline.

DEFINITION.
Advanced manufacturing is not an industry but a series of processes. ‘manufacturing’ has been defined as “science and technology, process development and production, to make a component and manage it through its life cycle,” while their definition of ‘advanced manufacturing’ excludes ‘production.’ It’s a reasonable research view. What’s left?
• Materials organization
• Computational organization
• Research and development prototyping: Hardware, Models, Processes
• Process development, including unique production equipment
One could argue that science and technology plus process development is undeniably advanced but not (at least not necessarily) manufacturing. Laboratory researchers acknowledge the fact that what they mean by ‘production’ is traditional industrial ‘manufacturing’. On the other hand, the third and fourth ‘advanced’ subcategories - prototyping and process development - can be accomplished on factory floors as well as in laboratories. Costs of such research can then more readily be recovered from revenues associated with products, leading to greater economic efficiency.
In the perspective of industrial consultants, what is ‘advanced’ has everything to do with production, but focuses outside of milling, joining and assembly processes traditionally associated with the term ‘manufacturing’. In this view, ‘advanced’ manufacturing leverages information technology in the supply chain by generating an integrated approach toward supply chain ‘synthesis’ (vice ‘management’) oriented to developing positive ‘flow’ rather than ‘links.’ ‘Warehousing’ gives way to ‘materials handling integration.’
Of course, from fabrication managers in high technology industries, one also hears that manufacturing applications and technology come down to the unchanging two basic components for production--people and materials.

CURRENT CONDITIONS. Advanced manufacturing occurs in many widely differentiated sectors of the economy. We observed manufacturing management and production practices in the auto, pharmaceutical, electronics and electrical equipment assembly, jet engine, construction equipment, and semiconductor sectors. In the defense sector, we observed manufacture of helicopters, munitions, aircraft and ships.
The behavior and strategy of the observed companies varied greatly. Some were clearly struggling to make any revenue and profit, while a few were expanding and producing at near capacity. Most were looking for new products or product differentiation, strategic alliances and partnerships, or novel marketing strategies to pull ahead in the current economy. Additionally, all were focused on cost-cutting efficiencies to improve their ability to compete. Such endeavors include out-sourcing or alternatively increased vertical integration, supply chain integration and Enterprise Resource Planning (ERP), and just-in-time and lean manufacturing.
.
Manufacturing employment consists of almost entirely high-skill, technology-intensive jobs with wages well above the service sector. The notion of poorly educated blue-collar workers laboring in dangerous jobs in dank, smoke-belching factories is a bygone image. Reality is more likely to be clean rooms and pharmaceutical laboratories, and brightly lit, clean, environmentally friendly production facilities employing advanced automation, robotics, and information technology. This is particularly evident in companies’ efforts to acquire both ISO 9000 (quality) and 14000 (environmental) certifications. Today approximately 72% of U.S. exports are manufactured goods. Manufacturing leads all industry sectors with e-commerce shipments that account for 12% ($485 billion) of the total value of all manufacturing shipments.
In 2000, manufacturers performed 75% of U.S. R&D activities, while providing 66% of the funding. Many companies reduced R&D investments in 2001 due to the soft economy. However, a few recognized the opportunity by increasing investment in new technologies and facilities to be positioned for the recovery.

productivity and Information Technology. Information technology and information management systems are credited with the strong economy-wide growth and high productivity (> 3% per annum) of the mid and late 1990s. High productivity was especially important to the manufacturing industry where it generally equated to lower unit costs in production, and therefore, increased revenues and profits. In fact, manufacturing productivity averaged a 4.3% growth rate over the period 1996-1999. Although productivity had fallen precipitously during 2000, data from the fourth quarter of 2001 and the first quarter of 2002 indicate that productivity is rebounding.
Availability of Skilled Labor. The majority of companies visited expressed concern with their ability to hire skilled labor. Given the recession, none noted any shortage of applicants. However, almost without exception they were frustrated by applicants’ lack of specific skills required for their industry. Most stated that applicants lacked the mechanical aptitude, knowledge, and technical background in basic math and sciences to propel their company in this highly competitive globalized economy. In the case of defense companies, the pool of qualified applicants was further reduced by drug testing and security requirements. A few companies placed equal emphasis on an applicant’s ability to perform in a team environment or alternatively, with minimal supervision. Job tender statistics such as 2 in 30, 1 in 60 or even 1 in 100 were commonplace among the companies visited.
To address the skills shortage, many companies developed targeted education and training outreach programs to improve basic skills and enlarge the pool of potential applicants. Partnerships, to include internships, were developed with local high schools, trade schools, and colleges and universities to educate and train students for employment. In some cases, companies developed their own in-house training and certification programs for specific skills, such as welding and pipefitting. These companies screened initial applicants for “employability” and then placed them into in-house training programs prior to assigning them to a manufacturing activity. No statistics were offered to validate the success of these initiatives, nor was there any quantification of return on investment, but all felt these managerial practices were both necessary and profitable in terms of “growing” the basic employee skills for their industry.
Automation and Robotics. Many companies sought to mitigate manpower shortfalls while simultaneously improving productivity and reducing costs by increasing the levels of automation and robotics in their manufacturing processes. High-speed machine tools under computer numerical control (CNC) continue to revolutionize manufacturing. More capable bits and cutters, and multi-axial machines, allow machining of ever larger components without repositioning. Variability continues to drop and quality and labor productivity to rise. Linked by the web, quality can be remotely controlled, which leverages engineering expertise. We saw robotics commonly employed for repetitive tasks such as auto body welding. This did substantially reduce manpower requirements on the floor as one or a few employees could operate and oversee several robotic manufacturing cells. However, the remaining employees needed even greater technical knowledge and skill. Not only were they expected to set-up and oversee robotic cells, but in many cases they were the first line of maintenance should the robots break down or the line stop. Employees who were capable of meeting these new challenges became that much more valuable to the companies and in return, could command higher levels of compensation.
Aging Workforce. Many of the companies visited faced the related issue of an aging workforce. The situation was particularly acute in defense and unionized facilities. Managers at one defense aircraft company quoted the average age of their manufacturing workforce to be 55 years; those at a defense munitions plant quoted their workforce at between 48-52 years. By contrast, those at a commercial, non-union semiconductor facility estimated their manufacturing workforce to be between 26-30 years.
The effects of aging are compounded when companies outsource their personnel surge requirements. U.S. firms often obtain surge workers as temps through manpower companies. In Japan, expatriate third generation Japanese descendents, recruited abroad for the purpose, can fill the gap. In both systems, a cohort of young, second-class workers are cycled in and out, and trained, yet are not expected to count on a career, advancement, or even a permanent position.
An aging workforce is a very experienced and skilled group of employees with comparatively higher levels of pay and benefits. This two-edged sword engenders higher relative levels of productivity with concomitant higher direct labor costs. An even greater concern is that their knowledge will be lost when they retire. Without the ability to systematically transfer knowledge to younger employees and facing the difficulty in hiring skilled labor, these companies may soon be facing a shortfall in their manufacturing capabilities.
All of this places a fundamental limitation on a company’s ability to surge production. Most of the companies visited had significant excess capacity with facilities that could accommodate expanded production if required. However, to surge with a new manufacturing line or extra shifts would require an increase in manufacturing personnel which for the reasons cited above would not appear practicable in the short term.





CHALLENGES AND RESPONSES. manufacturers need to address several challenges in order to maintain competitive advantage. Adapting to the increasing effects of globalization and commercializing advanced technology requires constant fine-tuning. Adaptability is the key to generating and sustaining a competitive advantage in a global market. “Manufacturing in the information age will bring new ideas and innovations to the marketplace rapidly and effectively. Individuals and teams will learn new skills rapidly because of advanced network-based learning, computer-based communication across extended enterprises, enhanced communications between people and machines, and improvements in the transaction and alliance infrastructure.”
The National Research Council (NRC) report from which this quote is drawn noted several grand challenges to the future of advanced manufacturing, which we used as a baseline for our study. The following paragraphs discuss our view of the challenges facing advanced manufacturing based on our domestic and international travel. In this new age, one key to the success of an advanced manufacturing firm is the ability of its senior leadership to leverage information to maintain a competitive advantage.
Concurrency. The first challenge is to achieve concurrency in all operations. That is, manufacturers should plan, develop, and implement in parallel, vice sequentially. Concurrent processing will bring together all elements of a product process from “cradle-to-grave.” Increased use of networked processes and equipment will be required to transfer information and experience. This will make it possible to reduce product time to market, promote innovation, and improve quality. In order to meet this challenge and realize these improvements, U.S. manufacturing industries should address several items:
(1) Development or purchase of intelligent collaboration systems. Information sharing is the biggest priority if companies want to plan, develop, and implement in parallel. Without real-time information flow, successful concurrency is not possible. Collaboration hardware and software is an enabling tool to meet this challenge.
(2) Identification and acquisition of technologies to convert information into knowledge for effective decision-making. The vast quantities of information available now and in the future are becoming overwhelming for decision makers. Firms should use technology to assist in converting information to knowledge for management use.
(3) System synthesis, modeling, and simulation for all manufacturing operations should be accomplished. In order to achieve concurrency, it is necessary for all operations to peacefully coexist and to share information on a timely and accurate basis. However, some tradeoffs may have to occur. Understanding each system process and being able to model and simulate the process allows for understanding the existing complex interactions. Use of models and simulations would allow management to try new proposed operations to improve efficiency and competitive advantage.
(4) System development to provide the ability to achieve concurrency (once the processes and interactions between them are understood). Companies should identify, develop, and/or acquire adaptable, readily reconfigurable, integrated equipment, processes, and systems. Flexibility will be the key to maintaining competitive advantage in the future for advanced manufacturers. Flexible systems and processes, designed for rapid change, will provide advanced manufacturers the edge they need to rapidly respond to a changing market while maintaining concurrency in their processes.

Human/Technical Integration. A second challenge is to integrate human and technical resources to enhance workforce performance and satisfaction. Even though technology is rapidly improving and automation is becoming increasingly popular, firms cannot fully remove humans from manufacturing. During both domestic and international company visits, we saw that humans still do some tasks that machines cannot (usually that require specific dexterity), while machines handled tasks that humans cannot (movement of heavy objects – although usually with human guidance). However, we also viewed several processes where humans performed routine and often repetitive tasks where the use of technical resources could have improved the process. Therefore, better integration of human and technical resources is necessary to further improve manufacturing operations. In order to meet this challenge, manufacturers should address:
(1) Development and/or acquisition of intelligent collaboration systems. Similar to the concurrency challenge, information sharing is the biggest priority. Without real-time information flow, successful human-technical integration is not possible. Collaboration hardware and software is an enabling tool to meet this challenge.
(2) Identification and acquisition of technologies to convert information into knowledge for effective decision-making. Both human and technological systems require information to operate. Machines are becoming increasingly able to learn by action. Providing a capability for both human and machine to convert information to knowledge will provide tremendous benefits to the company.
(3) Synthesis, modeling, and simulation of human-machine interfaces for all manufacturing operations. Once a firm defines, models, and simulates tasks, they can develop various options for improving the human-technical interface. The models and simulations allow for evaluating those options for determination of whether human or technological improvements are the best solution.
(4) Development of new educational and training methods to enable rapid assimilation of knowledge. As previously stated, the quantity of information available to workers is increasing tremendously. However, we constantly heard that industry has been hard-hit to find labor with the required knowledge and skills. For example, owing to the need for specific knowledge and skills, the semiconductor industry has thousands of jobs that are going unfilled. Workers must be educated and trained to use information systems in order to rapidly assimilate information and transform it into useful knowledge. Industry must take on this challenge to educate and train, or there will be an increasing shortage of qualified workers.
(5) Knowledge transfer from an aging work force. One of the recurring trends encountered during our industry visits was the increasing age of the workforce. As noted above, some companies had average workforce ages of over 55 years old. As these older workers finally retire, the loss of knowledge could be high. The manufacturing industry must anticipate this occurrence, and take action to retrieve that knowledge from the older workers and transfer it to a younger work force when required.
Information into Knowledge. Advanced manufacturers are dependent on information technology already, and will become more so in the future. This third challenge addresses the need to value, capture, and "instantaneously" transform information gathered from a vast array of diverse sources into useful knowledge for making effective decisions. For organizations to be truly successful in the information era and maintain their competitive advantage, they will have to learn how to “develop knowledge, procure knowledge, protect knowledge, and manage people with knowledge.” In order to accomplish this, manufacturers should provide for:
(1) Synthesis, modeling, and simulation for all manufacturing operations. Once a firm understands all operations and models them, effects of changes to any process or operation can be easily determined and disseminated quickly to all users.
(2) Identification and acquisition of technologies to convert information into knowledge for effective decision-making. As seen by the overwhelming effects of electronic mail on some workers, workers need technology to help deal with the vast amounts of information now available to them. Management must identify technology to collate information from different sources, deconflict that information, and transform it into knowledge useful to a company’s workers.
(3) Development of new educational and training methods that enable the rapid assimilation of knowledge. Once a firm uses technology to transform information into knowledge, workers must be educated and trained to rapidly respond to what this tells them. That is, the workers need to be educated and trained on how to act rapidly on the knowledge transferred to them in order to take advantage of the technology. If workers cannot react rapidly, the investment in the technology may be wasted.
Rapidly Reconfigurable Systems. A fourth challenge to advanced manufacturing is to design, develop, and implement reconfigurable manufacturing enterprises to rapidly respond to changing needs and opportunities. The globalized marketplace changes rapidly. Manufacturers must be able to quickly and efficiently reconfigure their products and processes to take advantage of the changing marketplace and attain or maintain their competitive advantage. In order to do this, manufacturers should address:
(1) Synthesis, modeling, and simulation for all manufacturing operations. Once a company understands and models all operations, effects of changes to any process or operation can be quickly and easily determined. When operations must change, companies can use the models and simulations to determine the optimum reconfiguration for the new process.
(2) Design, development and acquisition of readily reconfigurable, adaptable, and integrated equipment, processes, and systems. Rapidly changing customer needs, market opportunities, and information technologies drive the need for a company to be able to rapidly reconfigure and respond to changes. It is too costly in terms of both time and money to develop, design, and acquire new equipment, processes, and systems for every change. However, as seen during our industry visits, particularly to machine tool manufacturers, systems and equipment now exist that firms use interchangeably in a process. Flexible fixturing is one example of where interconnected equipment can be rapidly changed out (mixed and matched) to accommodate changing requirements. This equipment can then be immediately reprogrammed via its connectivity to the other machines and be fully ready for the new task.
Environmental. Manufacturing of products generally requires transforming of raw materials into some intermediate or finished product. This process also typically produces some form and quantity of waste. With the growing world population and increase in manufacturing products, the strain on the global ecosystem is increasing. Therefore, reduction of production waste and minimization of product environmental impact to "near zero" are big long-term challenges for manufacturing. Manufacturers are striving to develop cost-effective, competitive products and processes that don’t harm the environment. Recycling and reduction of waste were the two most often cited examples of process improvements during our industry visits. However, manufacturers still face significant environmental challenges and should address the following:
(1) Synthesis, modeling, and simulation for all manufacturing operations. Modeling of manufacturing processes would provide a cost-effective method on analyzing risks and benefits to the environment of possible process/product changes. A goal would be to create and maintain a database of useful and accurate environmental assessments. This database could prove useful and cost-beneficial for further product/process developments as well as for regulatory defense.
(2) Production with Near-Zero Waste. In order to manufacture products with near-zero waste, it will be necessary to understand the product process from “cradle-to-grave.” Only after understanding the entire process can an environmental evaluation be truly creditable. Manufacturers should consider use of advanced technologies in recycling and waste production. Additionally, recycling should be addressed to the maximum extent. The most environmentally successful firms visited were those who had developed recycling programs to use their production waste as resource materials for additional products and processes. The most common application was the use of production waste for energy. This not only reduced required waste disposal, but also provided for reduction of energy consumption from outside sources.
(3) Environmentally Friendly Production. A growing trend among visited companies was for meeting ISO 14000 standards for environmental processes. Manufacturers with a environmentally friendly attitude tend to make more efficient use of their resources through product waste re-use, recycling, and more efficient processes that reduce waste generation. One good example is the use of powdered-coat painting of parts. One particular company’s use of powder-coating versus liquid painting of products reduced product waste from seventy-seven 55-gallon drums of hazardous waste per year to five 55-gallon drums of waste per year. Manufacturers with an environmentally friendly production process and attitude are more likely to have a competitive advantage over their competitors by reducing the environmental costs associated with their products.

OUTLOOK
Economic. Since 1969, “there have been six economic downturns in manufacturing that have lasted, on average, about 10 months. Output fell about 9 percent and employment declined 7.5 percent (employment declined by about 1.5 million) during the typical economic downturn.” One of the most interesting observations made is that every economic downturn since 1969 was preceded by a surge in energy prices. Examples include: the Arab oil embargo—1973, turmoil in the Middle East, Iranian revolution—1980s, Iraq’s invasion of Kuwait—1990, and the energy price spike in 2000.
While all sectors of the economy are affected by rising energy costs, the manufacturing sector is particularly vulnerable to surges in energy costs. “Manufacturing makes up 28 percent of the nation’s overall energy demand, more than any other sector.”
Fluctuations in oil and natural gas prices create serious challenges in U.S. manufacturing. One such challenge is the difficulty manufacturers face in adjusting pricing strategies to compensate for spikes in energy costs. This challenge generates a rippling effect for employment, overall production, and economic growth in general. The manufacturing sector will remain vulnerable to fluctuations in energy prices in the foreseeable future unless alternative, price-stable, forms of energy become available industry-wide.
“Globalization has greatly increased the range and intensity of international political, economic, and social interactions.” Generally speaking, manufacturers are more connected to the international economy than the rest of the U.S. economy—65 percent of U.S. manufacturing output produced in 1999 was for international trade. This is significant in that if the U.S. dollar is strong, the price of U.S. exports in markets overseas will be more expensive, resulting in decreased international demand for U.S. output. “Manufacturing operates in a global marketplace where prices are determined by supply and demand relationships and firms are price takers, not price setters.” This truism will have more severe ramifications in the future as more and more newly developed countries gain economic power.
“The nature of manufacturing enterprises will evolve in response to changes in the technological, political, and economic climate.” Most of the executives we spoke with during our visits would agree that companies providing goods and services to consumers in the future must continue to emphasize the relationship between quality, service, and price. This means that companies must continue pursuing innovative ways to customize products (being agile), reduce product delivery time, and reduce costs consistent with consumer expectations.
Human Resources. The manufacturing workforce will be as diverse as the global economy.” People will continue to play a vital role in shaping the future of manufacturing. Competition will be fierce globally and firms able to adapt to meet the rapidly changing needs of the market will prosper. “Expanding productivity growth in the U.S. economy will require workers with higher levels of skills and knowledge to keep pace with the rapid technological changes.”
In the future, “sustaining competitive advantages will depend on a company’s ability to value and capture practical know-how or knowledge.” Capturing practical know-how involves capturing the constant parameters used to make decisions. This involves developing knowledge management systems that give a company’s workforce a wide range of capabilities in their manufacturing sector. The primary issues with knowledge systems will be related to a firm’s current and future capabilities. Knowledge management systems will be seen as methods of creating organizational synergy that cannot be easily duplicated by competitors.
Processes. The future of manufacturing is moving toward concurrent engineering. Manufacturing is different from other industries (for example, the service sector) in that, generally speaking, there is not a lot of personal contact between the consumer of the product and the people actually producing or assembling the product. And “despite the rapid growth of information technology, firms still spend more money on old-fashioned capital equipment, such as drills and welding machines, than they do on computers, telephones, and other information gadgets.” Information technology will have its biggest future impact for manufacturing in the areas of planning, developing, and organizing. Technological advances in these areas should generate sufficient efficiencies allowing companies to respond to consumer needs, while at the same time reducing production delivery time and costs.

GOVERNMENT GOALS AND ROLES. The health of the. advanced manufacturing industry affects both the economic and military elements of national power, and is therefore a national security issue. Consequently, the Government should assume an appropriate role supporting the stability and vitality of this industry. The government should establish and enforce manufacturing policies in three key areas that directly affect the health of the industry: promoting the availability of skilled labor, encouraging manufacturing process improvements, and stimulating the research and development technology base.
Success in manufacturing largely depends on the quality and skill of the workforce. A common concern expressed by managers of both domestic and international firms is the shortage of personnel trained in science and engineering disciplines. To ensure an adequate pool of science and engineering workers in the., government policies need to provide better incentives for students to enter the science and engineering areas of study. Given that the. must increase the skilled labor supply, several policies can help relieve the skilled labor shortage. More. students simply must graduate from science and technology (S&T) programs. The government should provide targeted incentives such as tax breaks or interest-free loans to entice domestic students to seek S&T education and training. S&T education is an investment in human capital and is essential to the vitality of a networked economy. The government should work in close partnership with industry to identify emerging skills that merit targeted financial incentives. Furthermore, manufacturers should be rewarded for providing internships to science and engineering graduate students.Government policies should also encourage highly qualified foreign graduate students to stay in the. after graduation. Immigration policies should provide more flexibility for. industry to recruit the best and brightest from other nations. . companies can help to identify and sponsor outstanding foreign undergraduate, graduate and doctoral students. Exemplary foreign students should be given preferred consideration for. citizenship after graduation. The government would have several years prior to graduation to complete any required background checks on foreign students.
Another. workforce issue is aging, particularly among union manufacturers. The aging trend will create a major knowledge and leadership void in the next decade as the workforce enters retirement. Young skilled workers are seeking employment in other industries. This demographic trend will make. manufacturers more dependent on immigrants to supplement the shortage of domestic workers. To ensure the. has a sufficient labor force, immigration policies need to provide. firms with greater flexibility to draw from the global workforce.
Manufacturing process improvements enhance competitiveness, but they often require significant capital investments. Government policies should provide economic incentives to encourage these investments. Fiscal policies, such as tax breaks for efficient processes or faster capital equipment depreciation schedules, can energize companies to implement process improvements and capital upgrades. Promoting international free trade agreements also gives manufacturers the ability to leverage market forces to improve manufacturing posture. Potential leverage areas are foreign research and development (R&D) efforts and the available pool of well-trained, skilled workers overseas.
R&D is the fuel for technology innovation. Since advanced research requires tremendous resources and time before yielding useful products, only governments and large multinational companies have the financial resources to support meaningful advanced research. Government has the greatest influence in this area through policies that sponsor advanced research across a broad spectrum of science and technology areas. Organizations such as the National Institutes of Science and Technology (NIST), National Science Foundation (NSF), and Defense Advanced Research Projects Agency (DARPA) should expand their efforts to develop advanced manufacturing processes.
One R&D area in need of government support is flexible manufacturing. Flexible manufacturing will enable the mass customization of products and create new market opportunities in the commercial sector. Flexible manufacturing processes can provide the. advanced manufacturing sector with continued world leadership, while providing DoD with assured access to affordable, customized war fighting systems.

benchmarking supply chains

INRODUCTION

In today’s economy we must make an attempt to shed the flab and be lean & trim. In the present

era of increased competition companies are forced to think about the options of cost reduction

and improving the customer focus. In other words this has stimulated the search of efficiency and

effectiveness in the business processes. Although it seems to be simple, the supply chain and the

logistics constitute around 10% of the whole GDP of the world. Studies reveal that logistics &

distribution cost is next to material cost in the cost hierarchy.

Traditionally logistics and transportation is considered as a function, which enables the company

to transport its goods, by cheap and effective modes of transport. By the emergence of the

concept of Supply Chain Management the entire business process of logistics has been redefined.

The Logistics - one of the essential components of supply chain management encompasses

distribution, transportation and inventory management. Logistics is the art of moving material,

people and information from one location to another in an effective and timely manner. It commands

functions of "store" and "move". Through logistics the right product or right service is delivered at

the right time to the right customer.

The concept of Supply Chain Management has received significant attention globally.

To analyze an SCM framework a three-tier framework consisting of

1) Supply Chain Structure,

2) Supply Chain Business Processes and

3) Supply Chain Management Components.

(refer Figure 2) provide the theoretical and functional basis for this paper in their articles.

The services rendered by "carriers", the ubiquitous transporter’s of components in the Bethora-Goa are

analyzed using this network.

In this paper the new unique system of distributing "top end shied & “Bottom end shield” to various

vendors are benchmarked for the distribution networks. Top end shields and bottom end shields are the aluminum die

cast motor covers of any ceiling fan. In Crompton Greaves fan division at Bethora there are 23varieties of top end shield

&bottom end shields that are to be machined and then powder coated in 17 different colors assembled along

with 350 other components which have 59 runner variants and a item muster of over 10000 items which must be

assembled into ceiling fans as per customer requirement or as per standard finished good list bar coded and then

transported to 23 branches all over India and also to export customers all over the globe. The milk run for these

component originates in the die casting section and runs through the machining vendors and then to the powder coating

vendors and finally to the feeder section of the Crompton Greaves feeder facility and finally to the shop floor where about

4.57 fans are produced per minute in each of the four production lines which have been precisely balanced for manpower,

& capacity utilization using “Maynard Operation Sequence Technique”. Any slippage in planning & coordination will

lead to idle shop floor and inability to meet customer requirement or low service level.

In this paper we identify various SCM elements in the logistics and then identify how these SCM

elements can be benchmarked for the various managerial purposes.

The “Carriers” Ubiquitous transporters.

In bethora there are around 8 vendors that work Just like a well-oiled Olympic relay team to

process top end shields & bottom end shields for fans. They collect, sort, process, and transport

the components to the respective destinations. They do this with absolutely bare minimum

documentation* and yet rarely has it happened that a run has been stopped on the shop floor at Crompton Greaves.

Material is moved in metal container called pallets. The components originate in the die casting

department and are sent to vendors for machining and then powder coating. The effectiveness of the

process can be ascertained by knowing that there is an occurrence of no mistakes.

In house outgoing Process:

Die casting of components is a 3 shift operation. The logistics is carried out between 8 am to 5 pm.

The die cast components are moved to the dispatch section in pallets on non motorized hand pallet trucks.

Stage 1 sorting takes place here. The components are sorted and arranged in a count free manner in the pallet. The security

guard cross checks the stack of components & permits the loading of the pallet in the waiting vehicle by signing the

“ materials requisition format”. A forklift loads the pallet in the vehicle which speeds up the entire process of dispatch.

The loaded vehicle moves towards the parking bay situated just before the exit point and the “carrier” moves

to the store window with “materials requisition format”. An annexure is prepared based on the security guard

attested quantity and is duly authorized. The carrier proceeds with these documents and moves the vehicle to

the main exit gate. The documentations are cross checked as per norm and the vehicle is let out to proceed to

the machining vendor. This entire cycle takes a mean time of 32 minutes whereas the bench mark time taken

initially was 45 minutes.


fig 1a & fig:1b



SUPPLY CHAIN STRUCTURE






1.0 Supply Chain Structure

Supply Chain Structure is a network, which consists of various members of the network and the links between the members. To

identify the supply chain structure three structural aspects should be considered: 1) The members 2) the structural

dimension and 3) types of process links across the supply chain.



1.1 Member Identification Of The Supply Chain Of vendors

The members of the supply chain are identified as primary and supporting members. Primary members include the

business units, which actually perform operations and/or managerial activities in the business activities in the business

process designed to produce a specific output for a particular customer or market. Supporting members are business units,

which simply provide resources, knowledge, utilities or assets for the primary members of the supply chain.

1.1a Primary Members

The analysis of the Supply Chain of components entirely focuses on the network flow of components- from despatch to

the respective vendors. The primary members of the distribution supply chain are identified as follows (refer Figure 3):

• Collection of the components


• Sorting done by the dispatch section reporting to QUALIY Assurance.


• Transportation using the various modes of transport like rickshaws, geeps, tempos &trucks


• Delivery to the vendors.


















The components are picked up from the dispatch section. The collection time depends on a) the vendor process chain

required to cater to both upstream & down stream processes that are required to satisfy customer need that is picked up

from the SSR (DOMESTIC+EXPORT). b). The process time at all process points in the vendor base .c) requirement

priority d) the schedule of production plan in house.

e) Availability of other components that are required to form kit in stores.

f) Distance of the requirement from the factory.

g) Availability in die casting section

h) Availability of raw materials & dies in the die casting section.












• The components carry only A symbol (not name) of the processing vendor in colour code apart from an alphanumeric number .
Channel /net work design : figure 4.a.1.

fig:4a2 :







figure 4.a.3

A minimum number close to 12000components are transported on a day from the die casting to the respective vendors.

The charge for this service is just Rs0.25 per component. The components carry only

• An alphanumeric number to identify it to the die

Each component has an alpha numeric number.

After the components are unloaded at the machining vendor they are sorted according to the machine

head between 10.15 am and 10:45 a.m. They are loaded in crates after machining operation. And moved to the

dispatch bay of the vendor and then picked up by the leg 2 carrier who delivers them to the powder coating

vendor .At the powder coater factor they are resorted for color and model.

The network design of the distribution system is given in the figure 4a1 ,4a2 &4a3. Channel/Network design

gives the forward distribution network from source to destination, while the Reverse Channel/Network gives

the backward distribution network from the destination to source.


1.1b Supporting Members

The supporting members in this supply chain are identified as the rickshaw, tempo drivers and the vendors with their own

means of supporting their logistics needs. .

The precise timing and the frequency of the system aid the vendors to be exact in maintaining the schedule.

1.2 The Structural Dimension

There are three structural dimensions for describing, analyzing and managing the supply chain: 1) horizontal structure,

2) Vertical structure and 3) horizontal position. The vertical structure indicates the number of suppliers within each tier

and the horizontal structure indicates the number of suppliers across the supply chain. The horizontal positioning

describes the location and the relation between the point-of-origin and the end user.

1.2a The Horizontal Structure

The service rendered by the carriers has two tiers of suppliers and three tiers of customers. Here the component is treated

as a product for consideration. (Refer Figure 5) The tier 1 suppliers are the die casting setup that supplies the raw material

components. The components are collected by the carriers and the focal organization of the supply chain includes the

sorting and transportation. The distribution part is the first tier of consumers followed by the powder coater who are the

tier 2 consumer and finally end consumers.


• Powder coater implies 4 separate powder coaters involved in the special process of finishing.
• End consumer refers to the feeder section of Crompton Greaves assembly facility.

1.2b The Vertical Structure

The vertical structure of the carriers is the wide clientele of their service. There are about 12000 components transported

by them in a day. There may be an addition or deduction as per the seasonality or the time in the month. This accumulates

to a change of around one thousand to three thousand five hundred components day. The tier 1 consumers of the

components include the machining vendors who deliver the components to their respective production work heads.

Their plan of action is to machine the components & keep track of the powder coater destined to which each component

is assigned. This is attained by the superb cognitive memory structure. Refer figure 6 on the next page.












Sorting refers to the activity of assigning item type to certain pallet and arranging in a way that it is in line with the

schedule at the production facility of Crompton Greaves which will pull the requirement from the powder coater who will

in turn pull in from the machining vendor who will synchronize with the carrier who in turn will be the recipient of the

components from tier 1 supplier (die casting section).









1.3 Types of Business Process Links

In this supply chain concept of vendors the level of integration is situational and varies from process to process. Since

there is no written agenda behind the boundaries of action of the process and its constraints it can’t be strictly demarcated.

But the business process links are well managed, even if there are some discrepancies, which can be avoided by further

refining run this system. The focus is to identify the number of process links, which are to be managed effectively. The

character of these links and the contextual setting affect the amount and the type of the relationships optimal for a focal

Organization. The emphasis is given for the closer relationships and partnerships that are implemented with key suppliers

or customers in the case of large corporations. As companies focus on fewer suppliers, the vertical structure becomes

narrower. Managing all the relationships, as partnerships would be time consuming for the organization.

Supply Chain with many tier 1 customers or suppliers require much of the company’s resources and the limit the number

of process links that can be integrated and closely managed. Different types of business process links can be identified:

1) managed process links, 2) monitored process links, 3) not managed process links and 4) non-member process links.



1.3a Managed Process Links

The process integration with the focal organization and the suppliers are decided by the managed process links. The

carrier service forms the managed process link of the distribution system. The bottleneck constraints for this process link

are 1) Weather, 2) Delay in loading of components on to the carriers due to unavailability of forklift truck. 3) material

produced but child items not in SAP hence documents not being able to be processed immediately 4) Traffic congestion

Outside die casting shop due to poor traffic handling by security guards 5) distribution not clearly informed by buyer to

die casting .6) festivals 7) unavailability security guards. Here the system of carriers can be compared with

“Service to order” and “just in time” philosophy.

. The logistics service is rendered for Crompton Greaves as & when required.

NO plan for the extra additional run in advance. There is an approximate variation of around 1000 to 3500 components

every day. The space allocation for its carriage is not pre-planned, as the exact variation is not known for them. The just

in time philosophy reduces the unnecessary burden of the large carriers and reduces wastage of space.




1.3b Monitored Process Links

Monitored process links are not as critical as the managed process links. Here they include 1) Material Handling

Considerations, 2) Packaging& palletisation and 3) Flexibility. Though these factors don’t contribute directly for the

process, they have a significant role in this system. The component is handled under the consideration that small impact

won’t create significant damage to it. There is a secondary packaging provided for each of the components is the hood of

the vehicle it is placed in. There is a buffer provided for this type of activities in case of transportation delays.


1.3c Not Managed Process Links

These are the process links, which are not in direct relation with the distribution of components. They include the quality

check at out going stage & advance count by security or the count free system of material moving system. It also includes

the collection activity by the end customer who rejects the powder-coated component that is fully processed. These

activities are not in the direct control of the materials management executives and hence are non-managed process links.

The quality and the customer satisfaction of the distribution service are affected by these secondary links.



1.3d Non-Member Process Links

They are defined as the competitors for the existing system of distribution. Since the distribution network and the service

of the carrier’s don’t have any competitors the non-member process links is irrelevant at this context.






















2.0 Supply Chain of Business Processes

Identification and the management of the constituent processes are the prerequisites for the successful SCM. When we

emphasize on the constituent processes we have to define the same. They are defined as the activities designed for action

with a focus on the end-customers and on the dynamic management of product flows, information flows, cash flows, and

the flow of knowledge or ideas.




Considering the supply chain management we have eight key inter-firm processes:

Customer relationship management;

Customer service management;

Demand management;

Order fulfillment;

Manufacturing flow management

Procurement;

Product development & Commercialization;

Returns;


2.1Customer relationship management

It identifies key customer target markets and develops and implements programs with key customers. Key customer target

markets for the carriers are the end users of the cycle. They include the stores, production and logistics. The time of

delivery of the components is between 8.am to 5 pm. to the end customers. Once the material is fed on to lines the

empty crates of plastic are collected and shipped back to tier 2 consumers (powder coating vendors).. The service levels

for this level is maintained constant even if there are minor changes in service levels for the level 1 customers as they can

adjust accordingly and serve the end customers








2.2Customer Service Management

Customer Service Management provides the single source of customer information, real time information system with

current order, production and distribution information. In the case of carriers this information is real time. They plan for

their day-to-day collection on the basis of the information they already have. Though in each vendor set up there is a

chance of variation of 5 to 7 product changes/colour changes their system can accommodate that change in the

transported volume.



2.3Demand Management

Demand management balances customer requirements with supply capabilities. Though the distribution system is capable

of handling the major variation of the demand, always there are precautions for the additional supply. They arrange for

more number of runs for the handling of such situations from the nearer zones of action. The seasonal variation in the

quantity of components carried is also accommodated by the size of the vehicles.


2.4Order Fulfillment

The first priority of any service is to provide timely and accurate delivery with a high degree of order fulfillment. For the

end customers the order fulfillment is 100%. Around 8 carriers deliver 12000 components everyday for 320 days a year

and take the empty crates & pallets back. They make one mistake in 12 months. This means there is 0.26error on every

million transactions. This is thus a six sigma performance for the percentage of correctness.


2.5 Manufacturing Flow Management

It includes the customer-based service with flexible distribution systems, also in this case with the right flexibility of the

timings. In case of the carriers this issue arises when a vendor is temporarily unable to process the components. They

collect the details of the change in advance and respond for the change as and when needed.










2.6 Procurement

Procurement focuses on the management of the relationship with the suppliers. Here the components are procured from

the tier 1 supplier that is die-casting. The supplier relationships are maintained by the setting up of the base near the

factory. Here each carrier is entitled to collect components as per scheduled production of the linking tier 2 supplier and

customers.. He takes care of the procurement issues. The “pick and pack” concept is used where the secondary packing

of the component is done by the carrier. The details the is identified by the color coding system on the

component i.e. each machining vendor has its color code similarly the powder coating vendor has its alphabetical

identification.


2.7 Product Development and Commercialization

Since the component doesn’t focus on the product development it doesn’t need any significant mention here. Some of the

vendors having other business interests use the sides of carriers for small levels of promotion. This could fetch some

additional mileage for their other products. One machining vendor has added ice cream production and distribution to his

business portfolio and uses the sides of the vehicle for small levels of communication to the consumers by advertising on

the sides of the vehicle.



2.8 Returns

The cheaper and the effective distribution attract a lot of vendors especially in other component groups for the fan

manufacture to adopt this “carrier” philosophy. Exact timing and the quality of service rendered by them have contributed

for the success of this distribution system. As a result of implementation of this model a vendor with

manufacturing facility in Hyderabad has set up a godown in Goa to cater to requirement of plastic components a

and decorative add-on and has implemented this model for runs between his production facility godown &

feeder section of Bethora.












BENCHMARKING

Benchmarking “carrier” Distribution System, for other vendor –factory logistics especially in engineering industry.

The challenges for vendor –factory logistics can be analyzed on the basis of costs, efficiency, inventory levels and the

service levels.

Improving supply chain efficiency and effective-ness are the ongoing challenges for any industry.


3.0 Issues under consideration for vendor –factory logistics include:

• Rising logistics costs.

• Increased responsiveness of the vendor –factory logistics Supply Chain. Their supply chain has become more

demand-driven, with order-to-delivery cycles dropping

• Decreasing Inventory Levels.

• Focus on “Perfect Order” Service Metrics. Components of the “perfect order” are – order completeness, on-time

delivery, damage-free orders and invoice accuracy. They are viewed by buyers as important customer service

metrics.

• Low Accuracy in forecasting the demand and supply requirements.

Emerging supply chain challenges for most companies

1. Improving on-shelf Availability of Products: On-shelf availability is becoming a critical issue for

manufacturers.

2. Synchronizing Data: The current system for exchanging data to produce inefficiencies in supply chain

including order errors, invoice discrepancies, delays in item introductions and out-of- stocks

3. Increasing the Flexibility of Ordering and delivering: Most end customers say they are looking

for increased flexibility in ordering and delivering. With the shortening of order-to-delivery cycles,

manufacturers will continue to face additional pressure on their supply chains and resources







4. Improving Internal Cross-Functional Collaboration: Collaboration with external partners is hampered by

manufacturers’ own ability to collaborate internally – especially between the Logistics, quality assurance,

manufacturing and Sales/Marketing functions.


Customer teams are helping companies to improve the alignment and integration between different functions. These teams

are cross functional by design and seek to balance cost and service tradeoffs by collaborating internally and externally.

Why Measure the Performance of Logistics?

Measuring and monitoring logistics costs helps companies improve profitability by assessing the value of various business

transactions with customers and suppliers. Measuring the performance of the logistics operations is a key step toward

reducing costly inefficiencies and maximizing opportunities for growth.

Logistics measurement is also critical from a cost-savings standpoint. For an average company, logistics costs represent

more than 10 percent of net sales. Measuring and monitoring these costs helps to achieve the following goals:

• Improving profitability by reducing operating and administrative costs


• Improving profitability by carefully assessing the value of company activities with customers and suppliers.

• Increasing revenue growth by providing the level of customer service that keeps current customers satisfied while

attracting new ones.

• Identifying differentiating product and service offerings that will improve customer service as well as revenue

opportunities.

• Determining whether or not significant operational improvements are necessary.

3.1Logistics Costs

As end customers push more responsibility down the supply chain to manufacturers and the demand for shorter order-to-

delivery cycles increases, logistics costs for manufacturers continue to rise. The decrease in logistics expenses was

primarily accomplished through:

• Big loading bay equipped with forklift

• More direct-from-plant delivery or o/o transactions

• Moving processing centers closer to customers

• Increasing order and shipment sizes

The Largest Logistics Costs are in Product Distribution and Material Processing and Conversion. Other functions

companies included in their logistics management were Customer Service, Planning, Forecasting and scheduling and

Information Processing.

The possible reasons for the significant increase in logistics costs include:

• A more dynamic supply chain, with decreased response time to end customer’s required delivery appointments.

• Higher service level expectations from retailers in terms of on-time delivery and order completeness

• Conflicting incentives and insufficient and inaccurate information between trading partners, resulting in a number

of operational inefficiencies.

• Increased array of customized supply chain services offered by manufacturers.

In the case of “carrier” the logistic costs essentially include the cost of transportation by road. Though they have a

dynamic supply chain system in force which serves the entire network of customers, they are able satisfy the higher level

of service at nominal rates.

This is achieved by the Cost-cutting initiatives projected as follows:

• Collection and transportation of components in standard large sized crates & pallets that enable the carriers

to reduce the effort and rates of transport. Though they are low cost crates they are the best means of carrying

the components.


• Implementing low cost information exchange by simple and robust coding systems specific to the

Components enable positive recall.

• Transportation of the components Direct-from-die-casting to destined vendor eliminates the use of

Intermediate warehouses and hence the corresponding warehousing costs.

In some cases the transportation is done by the third party, & hence avoid maintaining redundant

during the periods of low demand.








3.2 Supply Chain Responsiveness

The growing need for a more responsive supply chain has also contributed to increased logistics costs. In many cases, the

retailers have stepped up demand for more frequent and on-time deliveries. Some end customers have even implemented

late delivery charges and other supply chain penalties for manufacturers.

In recent years, the order-to-delivery cycle has dropped drastically. The order-to-delivery cycle is defined as the elapsed

time from receipt of customer order to delivery of product to the customer’s designated location. Although the order-to-

delivery cycle is shortening and the supply chain is becoming increasingly responsive

Considering vendor to factory logistics, some possible root causes for the drop in on-time delivery include:

• Congestion at customer’s factory affecting receiving turnaround.

• Over-scheduling at receiving point on certain days due to lack of visibility on inbound loads and resulting impact

on dock operations.

• Space shortages at factory requiring use of outside warehousing


Considering the distribution of the components, the following methods they practice rate their supply chain

responsiveness at its best.

• The three level of the sorting they follow, i.e., one from the originating minor sector(die casting) to the major

Sector (collection), the next from the major sector (sorting sector) to the destined minor sector(machining vendor)

and the last at the minor sector (powder coater) based at the destination makes them to avoid the use of

warehousing and hence the related complexity.

• The collection and sorting system have been implemented, enable them to optimize the scheduling of

distribution.

In the sorting method they use only the required color &type of components meant for the destinations in the

final sort sector are transported to that sector. This reduces the effort and time in sorting and hence avoids the

redundancy.








3.3 Inventory Levels

Considering logistics scenario, the inventory location in various aspects plays an important role in determining the profits

in the balance sheets. The prime concerns in this issue include the storage of

• goods at plant warehouse

• goods at distribution center

• goods at overflow facility

Most of the companies are tackling this issue by implementing customer-focused logistics policies. They are essentially

focusing on the change of their logistics network.

The prime considerations include bigger and better shipping points for the company and making the shipments directly

from the plant. This would cut down the storage costs and the inventory holding costs drastically. They are also going for

service-to-order profiles for the transport. Custom made solutions are made, based on the customer requirements


Current strategies employed for the distribution include:

• A “centralized” distribution center location strategy, with distribution centers farther away from customers
or
• Move distribution centers closer to customers and implementing a “decentralized” strategy.

Considering the distribution strategies followed, they follow decentralized collection and distribution; and semi-

centralized sorting at pre-defined major sectors. These major sectors are selected based on the volume of the components

dealt in that particular vendor. This has helped to move the distribution centers closer to the end customers thus

improving the customer service quality as the response time is lowered. Since in the network tier 1 customers are closer

to the end consumer, even if there is a delay in the supply of the components to them, they are able to exactly identify the

time lag and adjust the final distribution process so that they can deliver the components within the appointment time.

This effect can be identified as an adaptive feedback with real time information system which the companies involved in

the logistics of components that can easily benchmark for their distribution processes.












3.4 Perfect Order Components

Perfect Order components in the distribution and logistic industry are based on the bottlenecks for the customer service

which are identified from the key indicators in the logistic industry like the Damages/returns, On-time delivery, Order

completeness, Order cycle time and the Transaction costs. These factors essentially determine the efficiency and

effectiveness of the delivery made.

In the network the Perfect Order components are identified and are incorporated into their process to meet their perfect

service requirements and demands.


• By providing the primary and secondary packaging facility; and also by the bulk transportation the risk of

damages and returns are minimized.

• Unwanted storage is avoided and hence the components are promptly delivered at their best quality to the end customer.

• The network focus on the direct delivery instead of storing at intermediate point reduces the time delays within

the distribution network.

• The customized focus of the network where the component are able to identify the originating dies and the end

customers, provide a competitive advantage in the accurate end-to-end distribution of the components.

• The low cycle time for the whole distribution for the components enables them to avoid the deterioration of the

quality of the components . The inherent knowledge of the loading patterns & systems and

transportation network help them to achieve the current 6-sigma level of service performance.























































Productivity figures before model implementation.













































Productivity figures after model implementation.






































OPPORTUNITIES & PIFALLS

Opportunities
Opportunity 1: supply chain management design

According to this product designs should be evaluated not only on functionality and performance, but also on the resulting cost and service implications that they would have throughout the products supply chain.
Opportunity 2: Integrated Databases all through the supply chain

Effective Operational control of the supply chain requires centralized co-ordination of key data from the many entities. Key data would include order forecast, inventory status at alllocations, backlogs, production plans, supplier delivery schedules and pipeline inventory. The databases should be linked for easy retrieval of accurate information quickly from any point. Advancement in information technology has enabled the integration of databases between companies. The trend towards stronger vendor - vendee relationships certainly supports the need for database integration between different companies in an expanded supply chain.

Opportunity 3: Integrated Control and Planning Support Systems

Production planning and inventory control decisions at one site in supply chain affect decisions at other sites. The decisions taken on multiple sites should not be made independently; a system approach should be taken.
Opportunity 4: Institute Supply Chain Performance Measurement

There is a need for performance metrics, these should take the supply chain perspective and consider inventory measures across the supply chain and total response time instead of individual sites lead times. Instead of each entity being responsible for its own set of metrics, all entities should take ownership of the supply chain metrics. All the sites should be held accountable for the overall performance and customer service levels. Operations managers should measure performance regularly and frequently. Manufacturers should understand the needs of stakeholders that affect or are affected by the supply chain. This kind of understanding results in better targets and updating efficiencies, and exposing opportunities outside the supply chain.











Pitfalls
Pitfall 1: No Supply Chain Metrics

The supply chain's overall performance depends on the performance of all the vendors, and generally each vendor has its own management teams each with its own objectives and mission. The objectives of vendors may have little to do with supply chains overall objectives and worse they may conflict. The result is that vendors in order to meet their goals may result in inefficiencies in this supply chain. It is seen that many companies are facing this kind of problem, as they do not have performance measure or a metric system for the entire supply chain. Metrics of any kind then used must be for customer satisfaction.

Pitfall 2: Inadequate definition of Customer service factor

A performance of supply chain must ultimately be measured by its responsiveness to customers. There are different definitions of responsiveness. Most companies measure the average line item fill rate (percentage of item request shipped prior to customer due dates).

A customer order usually consists of multiple line items; for example, a fan dealer/branch may order base model, decorative, sub economy model in one order. As dealers /branches replenish their stock, these items therefore can be transported individually without hampering business depending upon their availability. In these cases line items fill rate is good indicator of customer service. In some other cases customers can demand a single shipment of all items, example customers who need spare parts to carry out a repair job, in these circumstances it is important to measure the till rate in terms of comp1eted orders.

Pitfall 3: Inaccurate Information and Poor Coordination

When customers/branches place orders, they want to know when their products will arrive. They may also want updated order delivery status, especially when the order is late. Proper attention should be paid to provide customers with timely and accurate updates on the status of late orders. The consequence dissatisfaction, confusion and loss of goodwill will be inevitable otherwise.

Most companies claim standard response times to customers, although these may not resemble actual response times. And most companies quote delivery dates, but too often companies cannot systematically retrieve the information they need to set the delivery date: it takes them too long to deliver the quote, let alone the product especially in non-trade business.

Companies should track deliver performance and keep customers appraised of their order status. For fulfillment of this the company requires accurate information at all the nodes.

The databases at different operating vendors that describe system environment, inventory backlog status, future production plans, and so on, are usually not linked. This sometimes happens even on a single site. Consequently, retrieving this information can be a tedious, lengthy manual process.

Delays in information retrieval and transmission make it impossible to quote accurate delivery dates to customers, as discussed in pitfall 3. They also discourage /prohibit short production planning cycles, leading to gross forecast errors and inventory and backorder accumulation. are even more difficult and tedious.

If customer orders consist of multiple items that are supplied by different divisions, and if customers demand receipt of all items at the same time, the company will use a merging center. The products will be delivered to the customers as soon as they all arrive. Obviously, tight co-ordination among the supplying divisions is important. It is useful to give the divisions a target date. Unfortunately, generating a target date can take a long time and arbitrarily generated target dates are often ignored. Lack of co-ordination results in excessive delays, and ultimately, poor customer service. At the same time inventory builds up at the merging center.

Another consequence of poor co-ordination is that some divisions habitually expedite deliveries, which is unnecessary and costly. These products sit in the warehouse for weeks until last product comes in. It is ironic when the latest division uses the slowest mode of if customer orders consist of multiple items that are supplied by different divisions, and if customers demand receipt of all items at the same time, the company will use a merging center. The products will be delivered to the customers as soon as they all arrive. Obviously, tight co-ordination among the supplying divisions is important. It is useful to give the divisions a target date. Unfortunately, generating a target date can take a long time and arbitrarily generated target dates are often ignored. Lack of co-ordination results in excessive delays, and ultimately, poor customer service At the same time inventory builds up at the merging center.

Pitfall 4: Ignoring the Impact of Uncertainties

There are many sources of uncertainties in a supply chain: supplier lead time and delivery performance, quality supplier lead time and delivery performance, quality of incoming materials, manufacturing process time (including machine downtimes, process yields, and reworks), transit times and demand. To reduce the impact of these uncertainties, supply their sources and the magnitude of their impact. More and more companies are concerned with quality control and keep good statistics on incoming material quality and imperfections in the manufacturing process. The emphasis on just in time manufacturing has led to increased monitoring of supplier delivery performance. Little is known, however, about transit times specifically the lead-time from distribution to customers. Many companies only track their delivery or delivery performance by tracing an order from placement date to delivery date.

Some companies respond well to uncertainties, but they fail to work on ways to eliminate them. A classic example is that of purchasing managers who routinely modify their inventory stocking policies for purchased parts to avoid stock outs during manufacturing but do nothing to improve their suppliers delivery performance, one of the root causes of the problem.

Pitfall 5: Simple Inventory Stocking Policies

This is a dynamic process; the uncertainties are constantly changing Some suppliers become more reliable in both delivery and quality, others become less re1iable. Demand for some items becomes predictable as products mature; demand for others becomes unpredictable. Inventory needs for some components stabilize as multiple products use common parts. Inventory stocking policies should be periodically adjusted to reflect such changes. Companies commonly use a generic stocking policy that is all. A stock keeping unit (SKUs) has three weeks of safety stocks, B SKUs have four weeks and so on. Simple analysis reveals that the company could reduce forty percent of its inventory investment while maintaining the same level of customer service just by linking stocking policies of the uncertainties that require inventory in the first place.


If customer orders consist of multiple items that are supplied by different divisions, and if customers demand receipt of all items at the same time, the company will use a merging center. The products will be delivered to the customers as soon as they all arrive. Obviously, tight co-ordination among the supplying divisions is important. It is useful to give the divisions a target date. Unfortunately, generating a target date can take a long time, and arbitrarily generated target dates are often ignored. Lack of co-ordination results in excessive delays, and ultimately, poor customer service. At the same time inventory builds up at the merging center.

Another consequence of poor co-ordination is that some divisions habitually expedite deliveries, which is unnecessary and costly. A manufacturer found that most of its divisions use air-freight to deliver their products to the merging center, each believing that it is the division holding up the order. These products sit in the merging center for weeks until last product comes in. It is ironic when the latest division uses the slowest mode of transportation.

Pitfall 6: Incomplete Delivery Methods Analysis

Changing the mode of transportation can significantly affect inventory investment and service performance. However, transportation decisions are often based on economic considerations that do not take into account these important operational factors, which leads to reducing overall costs. These savings would come from inventory reduction in the transportation pipeline and shorter delivery lead times to the distribution centers. The distribution centers would need less safety stocks to provide the same level of customer service.

Sometimes manufacturers in order to reduce transportation cost through single filled container/large trucks, had to increase their delivery lead times which demands for higher safety stock level increasing inventory holding cost which generally offsets the savings from 'economical' container deliveries.

Pitfall 7: Organizational Barriers

Usually entities of a supply chain belong to different departments within a company, each department having its own performance measures and evaluation responsibilities. Organizational Barriers that may inhibit co-ordinated inventory control to include differences in objectives and performance metrics, disagreements on inventory ownership's, and unwillingness to commit resources to help someone else.

Pitfall 8: Incomplete Supply Chain

Going beyond the internal supply chain by including external suppliers and customers often exposes new opportunities for improving internal operations. Manufacturers commonly view their immediate "Customers such as retailers or other manufacturers as the end of the supply chain. Manufacturers with the hierarchy of distribution centers concentrate on inventory cost and service only upto the major distribution centers. Manufacturers often have service targets in the form of fill rate, the fraction of customer demands met without delay, but good service to dealers does not necessarily translate into good service to customers, manufacturers who do not consider the entire supply chain will have operational inefficiencies. Using fill rates as service targets is problematic; customers have their own inventory control systems. For them, an 85%service factor, with highly variant delays for the remaining 15% would probably be worse than a 0% off the shelf fill rate with a reliable re-supply time of one week. Understandhng the dealers' inventory control systems is the only way for the manufacturer to accurately set internal service targets.

Another benefit for incorporating customer into the supply chain comes from sharing information. By knowing the customer’s inventory levels, the manufacturer can respond accordingly. Similarly customer’s who have access to the manufacturers' inventory status can respond to market changes more promptly.

Customer’s inventory control system determines to a large extent, their re-order patterns, i.e. frequency, size and composition. Hence, understanding their inventory control system would also improve the distribution networks ability to forecast demand.

















































Conclusions

In this paper the understanding of the extensive supply chain framework has been increased by applying the framework in

a case environment.

The critical points considered for this case are Chain of Business Processes: customer relationship management,

Customer Service Management, Demand Management, Order Fulfillment, Procurement and Returns.

These points have been analyzed by studying the service network of the carriers of bethora whose salient features include

Transportation Strategy, inventory Strategy and Location Strategy.

Following the framework analysis a benchmarking study was done on the logistics of vendor-factory to identify critical

areas the where improvements could be made. The benchmarking study focused on parameters like logistics costs,

responsiveness of the Supply Chain, Inventory Levels, Perfect Order components of the logistics network. The

Benchmarking study has provided us with information on the critical aspects of a logistics network of a company. The

study has highlighted the significance of an efficient logistic network on the operational and strategic frontiers of an

organization.

To increase the usefulness of this framework for both academic and managerial purposes further development may

be needed as per the supply chain.

Organizations are undergoing a change and the performance measures of achieving goals objectives are rapidly becoming

things of the past, there is only on criteria today that is ‘Customer Satisfaction' this has created an atmosphere where,

organizations are not competing with one another but the competition is between the supply chains.

We have seen that supply chains are very complex and many companies are vulnerable to the pitfalls described above. By

listing out these, I hope that more supply chain managers will be able to avoid them and will make use of the abundant

opportunities that are open to them.