sorting, kitting, staging, and delivery to the assembly line.
An associated problem was that the on-time availability of
components at the assembly line was 99.38 percent.
Although this might seem good at first glance, it’s actually
on the poor side for an assembly plant and has considerable
cost implications.
The team began by brainstorming several ideas, looking
for ways to increase not only throughput but also parts
availability and overall efficiency. The questions then were,
which of the ideas would work, and what would be the best
way to implement them? To answer those questions, the
members consulted some books, articles, and other documents, and then combined that information with their past
experiences and the theoretical knowledge provided by
their formal educations. Using all of those resources, the
team developed the following solution.
Approximately 20,000 components and raw materials
were being stored in the warehouse. But only 0.5 percent of
those items were delivered just-in-time to the assembly line
after having been picked from a dedicated storage zone. For
the rest, a pull system was used, where assembly workers
issued internal orders in the MRP (materials resource plan-
ning) system in batches (usually in full pallets); warehouse
workers picked those materials from their storage locations
and then delivered them to the line. This practice resulted in
a significant amount of inventory positioned in the assem-
bly area but provided little protection from stock-outs.
most up-to-date optimization methods. For example, plenty
of mathematical optimization methods exist in the supply
chain literature. Many of them are fairly easy to implement on
spreadsheets and offer strong support for supply chain managers’ decision making. However, failure to attract people
with the right technical knowledge means that these optimization methods may not be fully put into practice, which
means lost opportunities for the supply chain organization.
It should also be noted that today’s competitive environment requires that supply chain professionals not only be
experts in their own field but also have an idea about
what’s happening elsewhere. A sound supply chain education, preferably supplemented with a background in another discipline, such as engineering, finance, accounting, marketing, and so forth, will enrich the field. Since attracting
and retaining talent is not an easy task, supply chain executives should not fail to consider retention incentives to
keep talent in the profession. The fast-paced and challenging—not to mention exciting and fulfilling—nature of the
supply chain profession should be marketed among
younger generations to attract them to the discipline.
2. Provide opportunities for continuous learning. Due
to the ever-changing nature of the discipline, it is of utmost
importance for supply chain professionals to be dedicated
learners. 14 In addition to formal education, regular expo-
sure to what is happening in the supply chain field through
attending events such as conferences, seminars, and work-
shops (both within and outside of their industry) is a must.
