How the CPIM Helps Improve Day-to-Day Operations

Today’s supply chains are more complex than ever before. This complexity arises from several factors, some that have existed throughout time and some that are unique to this era. From extreme weather to a global health crisis – today’s market is perpetually subject to volatility. This is only compounded by shifting consumer expectations and demands, with one-day delivery and personalized offers becoming the norm for many suppliers.

Technological advances make it easier for suppliers to satisfy this shifting demand but can also be challenging for those who struggle to keep up with the times. The key to success in this digital era? An understanding of the systems, methodologies, and concepts that are connected to on-demand order fulfillment, near-instant delivery, and increased demand.

A CPIM education provides a framework and tools for synchronizing, optimizing, and continuously improving an organization’s end-to-end supply chain. It is a key prerequisite to embarking on an enterprise resource planning (ERP) system implementation.

With a CPIM education, supply chain professionals master Lean, Six Sigma, Theory of Constraints, and project management concepts. They also study many components of the Manufacturing Planning and Control hierarchy of demand and supply planning and execution, all combined to provide enhanced visibility and control. CPIM stresses the value of a consistent use of terms, as defined by APICS, the global standard for the entire Supply Chain Body of Knowledge. The certification is a key to individual and enterprise success through excellence in supply chain management.

A better grasp of ERP systems

If run properly, ERP systems can generate major benefits and provide valuable insights for inventory management and production teams. The CPIM provides supply chain professionals with a greater understanding of ERP systems, enabling them to optimize their organization’s systems to reap maximum benefits.

Just take Jensen Precast for example. Previously operating under a decentralized ERP system, Jensen Precast struggled under the weight of siloed plant operations. This resulted in less-than-optimal processes and a lack of visibility across the organization. Jeff Friedman, chief operations officer at Jensen Precast says, “We made a commitment to our owners, employees, and customers to improve our business by adopting ASCM best practices and APICS education.”

Using their newfound knowledge, Jensen Precast employees identified constrained work centers in the production environment and calculated the ERP system to identify the limiting factors at play. Now, Jensen Precast enjoys a nearly 50% decrease in slow-moving inventory and a record rise in production and sales levels. Plus, employees can now use the ERP system to its full capacity with a renewed sense of visibility.

Strategies that improve visibility and control

While ERP systems help supply chain professionals optimize inventory management and production processes, many workers still need to adopt the right strategy for using the system to its full potential. One of these strategies is Kanban. As a tried and true pull system, Kanban has been a foundational practice many supply chain professionals have relied on throughout decades of changes in the industry.

Kanban optimizes production and inventory management cycles for efficiency and cost savings by ensuring an organization only has the supplies and resources on hand needed to fulfill an immediate task or order. Infused with a strategy known as just-in-time inventory, Kanban’s principles often rest on ordering what’s needed when it’s needed. That way, a company doesn’t hold safety stock and operates continuously at low inventory levels, ultimately lowering carrying costs and increasing efficiency. Kanban, and therefore the CPIM, equates to ROI.

Data-driven decision-making

Another tool in a CPIM student’s box is the ability to make data-driven decisions. The APICS body of knowledge equips individuals with the principles and models necessary to take a critical approach to data. Using this data, individuals determine value and improve processes, which is particularly crucial in an increasingly uncertain global landscape.

While some things will always be uncertain, one thing is for sure – inventory is determined by demand. One way to increase agility is to look critically at the factors determining inventory and production and find a way to anticipate them. “Demand” in-and-of-itself doesn’t tell us much. CPIM urges supply chain professionals to look closer. How many items will sell without promotional or seasonal surges and ebbs? How many units will sell with promotional discounts? In an era where e-commerce eclipses traditional commerce, how many returns can be expected?

All of these elements factor into an organization’s inventory management. CPIM won’t tell individuals what the number of returns will be or how many people will buy what they’re selling. CPIM can, however, equip individuals with the knowledge to determine how these factors are calculated and why it matters. Having this understanding makes it easier to approach day-to-day operations critically and forecast inventory management more accurately.

Revolutionizing the day-to-day

With the CPIM providing supply chain professionals with a better understanding of systems, methodologies, and concepts, day-to-day operations become no-brainers and efficiency becomes the norm. This rings particularly vital as the supply chain industry faces unprecedented levels of uncertainty and unforeseen changes each day. By returning to the foundational knowledge that stems from a CPIM education, individuals can not only face challenges head-on but redefine what a successful operation looks like.

Want to jump-start your CPIM certification process and start making a real impact in day-to-day operations? Get started today. Expert instructor-led CPIM classes start in the Milwaukee area in September! Learn more...

How Process Mapping Helps with “Brain Drain”

Are you worried about losing the knowledge of your retiring workforce? The Manufacturing Institute reported in 2019 that, “Manufacturing firms are particularly concerned about brain drain (i.e., the loss of institutional and technical knowledge) with 97 percent of firms expressing at least some concern about brain drain and almost half of firms indicating that they were “very concerned” about the issue.

One approach to combatting the real challenge of a retiring workforce is to create detailed process maps as a future reference to ensure continuity in your operations.

At APICS Milwaukee our mission is to serve supply chain professionals at all stages of their careers. We know that understanding the basics of process mapping is important for continuous improvement efforts and to ensure you don’t lose valuable knowledge when teammates retire.

Below we’ve shared five simple steps to get you started mapping your current state:

  1. Walk the process. Start closest to the customer and move upstream – using already created written notes or procedures is acceptable
  2. Use paper and pen to draw the process flow
  3. Post information at each process step
  4. Identify associated exhibits for additional detail
  5. Calculate lead and value added times

You can see a very simple example of a purchasing process map below.

Once you have documented your current state, you should feel less of a disruption when your team changes. But you don’t want to stop there! You’ll next want to leverage your current state process map to identify waste to be eliminated. Then you can create a more efficient and lean future state process map.  

Consider these seven forms of waste:

  1. Overproduction – making more than needed at this time
  2. Transportation – moving materials
  3. Inventory – excess stock of raw materials, in process materials, or finished goods
  4. Motion – that does not add value
  5. Correction – rework or scrap
  6. Over processing – redundant activities
  7. Waiting Time – idle time, waiting for materials, people, tools, machine  repairs

Once you’ve identified waste and outlined how you want to improve your processes, you should develop a work plan to keep you on track with achieving your goals, typically resulting in reduced costs, increased capacity and revenue growth. Your work plan should include:

  • Activities with dates and accountable parties

  • Measurable goals

  • Practical completion dates

  • Meet at least monthly to review status

We hope this will help you get started mapping your processes! Looking for more information on the basics of process mapping? Join us next week Tuesday (6/16) for a virtual Supply Chain Workshop taught by an expert APICS Instructor on the topic. This event is free for APICS Milwaukee members.

APICS Milwaukee is the premier professional association for supply chain management, helping over 180 Milwaukee area companies represented by our members, with educational and networking opportunities.  Learn more about how we do this on our website at www.apicsmilw.org.

Waukesha Manufacturer Teams up with MaskForce

Photo Source: Husco.com First MaskForce face masks move down the production line in Waukesha, WI

Are masks being worn at your company? Masks are key to many manufacturers maintaining safe operations during the COVID-19 pandemic.

APICS Milwaukee is proud to share about a local Milwaukee manufacturer, Husco International, which specializes in high performance hydraulic and electro-mechanical components, and their efforts in the development of a consortium called MaskForce that’s now producing a newly developed reusable face mask.

The following excerpt from the National Association of Manufacturers tells the story of how it started.

“It started on a Saturday morning when a Wisconsin doctor knocked on his neighbors’ doors, asking for mask donations. Four weeks later, dozens of local organizations had collaborated to design a comfortable, reusable, high-performance mask. Now, the “MaskForce” is rolling out its products across the state and in neighboring regions.

Here’s how it happened: One of the doctor’s neighbors happened to be Pat Masterson, vice president of corporate manufacturing at automotive and mobile equipment manufacturer Husco. Masterson soon brought his company’s resources to solving the problem, but they knew they needed more.

Through word of mouth, the project’s team developed into a 25-member consortium that included local education groups, industrial manufacturers and frontline medical and emergency response personnel. After the group hammered out some concepts, Husco led the design of a high-volume, injection-molded prototype using medical-grade materials.”

At this point, the MaskForce is producing around 1,000 masks per day at Husco’s headquarters in Waukesha, WI, with the goal of ramping up daily production to 10,000.  Currently, it has completed 10,000 of its initial 30,000 production run.

Per Husco, unlike most face masks which are designed to be discarded after a single use, the MaskForce product can be sanitized and re-used. Made of medical grade silicone and polypropylene, the final design is soft, comfortable, and provides a low pressure facial seal. The MaskForce team tested hundreds of suitable materials and collaborated with multiple university labs, medical professionals and first responders before finalizing the production design. Husco leaders shared their thoughts on the MaskForce effort.

“Among our core values is practical innovation, which drives us to consistently and creatively push the boundary of what is possible to create immediate value,” said Austin Ramirez, Chief Executive Officer of Husco, which is leading the MaskForce consortium. “MaskForce is both an example of American manufacturing ingenuity and the good that can be accomplished when multiple stakeholders collaborate to serve the community. I am grateful to all the MaskForce collaborators for their time, expertise, and goodwill.”

 “Among our core collaborators, no one blinked an eye when it came to using our collective expertise during this time of need,” said Austin Schmitt, Vice President at Husco. “From the start, we endeavored to create something better, with the necessary comfort, fit, and functionality needed, supported by a high-volume production process to get the masks into the hands of first responders as quickly as possible. MaskForce accomplished in four weeks what would typically take months or even years.”

The mask is priced close to cost, with any profits in 2020 reinvested back into the community. In addition to accelerating production of the current model, a smaller form-factor mask is under development. The MaskForce face mask is temporarily authorized pursuant to an FDA emergency use authorization and is actively pursuing NIOSH N95 certification.

For more information visit: https://www.maskforce1.com/.

Congratulations Husco International on a great example of innovation and collaboration to meet the needs of the community!

APICS Milwaukee is the premier professional association for supply chain management, helping over 180 Milwaukee area companies represented by our members, with educational and networking opportunities.  Learn more about how we do this on our website at www.apicsmilw.org.

Rapid Supplier Identification Using Automation – Fives Steps to be More Agile

Guest Author: William Crane, CSCP, CEO of IndustryStar


Have you needed to adjust your suppliers quickly during this pandemic?

Many supply chain professionals have felt the fragility of their supply chains. As they strive to adjust their supply base to bend not break; time is a luxury they can’t afford.

Supply chain leaders are now required to select and source alternative suppliers in a compressed, more stressed market environment. Moving forward, managers will have to re-evaluate their supplier selection process and criteria, as traditional approaches with a heavy emphasis on low piece cost has resulted in too much risk.  

Manufacturers heavily reliant on high-risk low-cost country global sourcing will need to identify domestic alternative suppliers to combat volatile tariffs and fluctuating delivery times. High industry spend concentrations in financially distressed suppliers will lead to supplier cash flow constraints and resulting bankruptcies forcing manufacturers to re-source.

In planning for similar future disruptions, supply chain leaders will need to seek out alternative suppliers to simply mitigate risk, e.g., different regions, shorter distances, and dual sources. Supply risks and their consequences have become glaringly apparent with the US-China tariffs, COVID-19 pandemic and 2020 recession.

Preparedness fosters agility. We’ve outlined five key steps below to help you be better equipped moving forward to adjust suppliers quickly if needed.

  1. Earlier Identification of Risk in Secondary and Tertiary Suppliers. For example, a Tier I supplier of handlebars can experience cash flow issues, due to the rapid motorcycle sales slowdown at OEM Harley-Davidson, which then results in little to no invoice payments to a Tier II supplier of powder coating for the handlebars. As supplier invoices can range from Net 30 to 90 days, a 60 day drop in revenues for the supply base can quickly wreak havoc. Supplier available funds to restart and maintain high manufacturing fixed costs in raw materials, parts, and people are stretched thin. One at risk supplier, like the Tier II supplier of powder coating can quickly halt production not only at the Tier I supplier of handlebars but also at OEM Harley-Davidson.

Earlier identification of risk by the Tier I supplier of the Tier II supplier’s cash flow issues and swift remediation could have avoided costly manufacturing disruption throughout the supply chain. When proactive actions to remediate supplier issues break down, the Tier I supplier may be forced to rapidly identify, qualify and ultimately resource a supplier.

  1. Shift from an Event to Cycle Mindset. World-class supply chains must continuously identify suppliers to maintain a healthy supply base to account for normal and unforeseen exits of preferred suppliers. The problem with supplier selection though is that it is often described as a cumbersome manually – driven process that requires enormous amounts of time, of which we do not have.

Many supply chain managers describe the supplier identification process as the “event” bottleneck to strategic sourcing. However, it is a bottleneck that is completely unnecessary and easily overcome with already proven tools. Intelligent software productivity tools and supporting data services are empowering supply chain professionals to automate the supplier identification process. Automation is freeing up professional’s time from the tactical to enable them to focus on more impactful work such as supplier relationships and strategic sourcing.

  1. Accelerating with Intelligent Software. Cloud-based supplier search intelligent software can provide unified information and inputs to identify suppliers faster, more strategically and with more resilience. These self-service software tools allow professionals to gain access to powerful advanced search tools and vetted existing supplier data. Technology capabilities can include advanced supplier search filtering by countries and artificial intelligence (AI) that make supplier recommendations based on your unique industry supply needs further accelerate results.

Newer software technologies that allow users to add data e.g. suppliers, manufacturing processes and contact information solves the problem of having to document your supplier data in offline manual analysis tools such as Microsoft Excel. Further, intelligent software that tracks your supplier interactions and makes supplier recommendations to you based on your unique requirements can be akin to adding a team member to support you on your path to success.  

  1. Collaborating with Productivity Tools. Identifying suppliers is only part of the bottleneck challenge, once we have our data, we need a place to put it. Typically, we store our supplier lists, capability data and notes in manual note pads or our heads.

Today, leading supply chain professionals are collaborating real-time on the same critical supply needs e.g. identifying suppliers with a specific welding capability, using collaborative software productivity tools. These more agile ways of working allow more work to be done by multiple team members at the same time. Further, software that allows for teams to build supplier lists, add custom data, track supplier statuses, and document interaction notes enables teams to accelerate the supplier identification to sourcing award process.

  1. Enhancing with Data Services. There is no one source for all supplier data. Further, as suppliers are always changing, e.g. financials, capabilities, services, your approach to continuously acquire quality data is just as important as your initial search. Traditionally, we are left to utilize multiple software, website and database tools and aggregate our research into manual analysis tools e.g. Microsoft Excel. This approach can work fine, but it is slow, expensive, and prone to human error.

Select software companies also have service offerings that can quickly acquire, clean and enter ideal data that is tailored to meet your specific needs. Digitizing, consolidating, and acquiring supplier data are key capabilities to enable supplier identification speed. Scanners to convert paper documents to digital records, automation software to upload data and machine learning to quality check data are a few examples of technology tools that can reduce your supplier data management time. Supporting data services should free up your time while saving you money versus acquiring data by throwing people at the challenge.

Preparedness Fosters Greater Agility

We are in the first quarter of a long game as global markets remain volatile and key input variables of the pandemic, recession, and tariffs remain unknown. To combat these headwinds, we must proactively document our supplier lists by spend category, prioritize high-risk suppliers, and identify backup suppliers to foster greater supply chain resiliency. Documenting your supplier lists by supply need and identifying and qualifying backup suppliers is a proven strategy for reducing ongoing supply risk.

We cannot predict specific supplier issues or suppliers we may need to resource. However, we can control the speed at which we address future supply needs and issues by anticipating downstream risks, shifting to a cycle mindset and leveraging technology to be more agile.  

About the Author

William Crane, CSCP, CEO of IndustryStar, an Ann Arbor, Michigan-based on-demand supply chain services and software technology company that partners with leaders to reduce the cost, time, and risk of bringing new product ideas to production and beyond. William is a trusted advisor in supply chain with demonstrated results starting, launching, and enhancing procurement, logistics, supplier quality, and manufacturing organizations.

His work has appeared frequently in the American Production and Inventory Control Society (APICS), Institute for Supply Management (ISM), Council of Supply Chain Management Professionals (CSCMP) and Sourcing Industry Group (SIG), among others. William’s passion for bringing technologies to market that have a positive impact on the world can be found via his blog Supply Chain for Tomorrow’s Technology.

William is also Host of the Supply Chain Innovation podcast where he interviews top industry change-makers to uncover strategies, tactics, and tools to expedite, optimize, and de-risk supply chain operations. William may be contacted at [email protected]

Manufacturers Responses to COVID-19 Disruption

Photo: Lake Shore Park, Milwaukee by Tony Stuczynski on Unsplash

What measures has your company taken in response to the COVID-19 disruption? Are you looking to reshoring suppliers or investing in more automation?  

Per Thomas Industrial April 2020 Survey, 25% of U.S. manufacturers are considering expanding industrial automation as a result of COVID-19, while one in five already has automated systems in place. Additionally, 64% of manufacturers reported they were likely to bring manufacturing production and sourcing back to North America.

Highlights from the Thomas Industrial Survey on the impact of COVID-19 on North American Manufacturing included:

  • Manufacturers Report Significant Jump in COVID-19-Related Impacts: 89% of our respondents reported they felt impacts from COVID-19 in April, compared to only 45% in March. 41% of surveyed manufacturers expect a decrease in demand for their products and services.

  • Two Biggest Concerns Are Reduced Market Demand and Disrupted Cash Flow: Many reported staffing issues due to challenges in maintaining social distancing and PPE supply, as well.

  • Manufacturers Restructure: 44% have already experienced or are planning layoffs, but 31% are hiring. One in seven companies pivoted to COVID-19-related manufacturing.

  • Stronger Reshoring Interest Compared to March: Two-thirds of the companies stated they are likely to reshore; of those companies, 20% stated they are extremely likely to reshore, compared to only 9% in March.

  • Companies Remain Optimistic About the Future: 91% of respondents believe that North American manufacturing can recover from this pandemic.

  • Shifts in Talent Needs: 56% of manufacturing companies have not laid off employees due to COVID-19 and 30% of companies are actively hiring.

  • Non-essential Business Shutdown Impacts Demand: 64% of manufacturers report their business is affected by the shutdown orders impacting other non-essential businesses, with the transportation (77%), automotive (75%), construction (70%), and agricultural (69%) sectors most drastically affected. 

  • Relief Efforts: 15% of the companies surveyed report they shifted to produce supplies related to COVID-19 relief efforts; medical and healthcare, agricultural, and automotive manufacturers are leading the charge to produce PPE.

  • In-demand Materials: In order to stabilize supply and keep production on schedule, manufacturers reported the most vital items to be personal protective equipment (42%), metals (37%), fabricated materials (29%), and machining tools and parts (27%).

Click here to view the full report of the "Thomas Industrial Survey: COVID-19’s Impact on North American Manufacturers."

Looking for more information on managing risk within your supply chains? Join us next week Tuesday, May 26th, for Supply Chain Risk Management Workshop taught by Chuck Nemer, CSCP, a supply chain management expert providing world-class training for corporations seeking supply chain training to better improve their supply chain performance, and students in APICS programs.

In this introduction to risk management, Chuck will cover the basics of risk management including how to identify, assess and mitigate risks. We'll also review how to manage in an environment of risk. This workshop is based on the work and advice of Greg Schlegel of the Supply Chain Risk Management Consortium.

APICS Milwaukee is the premier professional association for supply chain management, helping over 180 Milwaukee area companies represented by our members, with educational and networking opportunities.