MAXIMIZE YOUR SUPPLY CHAIN ROI

WITH LEAN SIX SIGMA

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AGENDA+ Housekeeping

+ Introductions

+ Roundtable Discussion: How is maximum ROI achieved when Lean Six Sigma methods are applied to supply chain automation projects?

+ Q&A

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HOUSEKEEPINGTo submit a question:

Type in your question here

Click Send

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PROJECT & IT MANAGEMENT

WORKFLOWAUTOMATION

DIGITAL ENGAGEMENT

Manage your organization’s projects, professional workforce and IT costs.

Real time productivity optimization, collaboration, and functional automation across your organization’s value chain.

Effectively engage with your customers, prospects and community via the web and mobile technologies.

UPLAND PRODUCT FAMILY

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POWERSTEERING AND ULTRIVA PRESENCE IN MANUFACTURING

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TODAY’S SPEAKERS

Thomas R. CutlerManufacturing JournalistTom founded TR Cutler, Inc., the largest manufacturing communication firm worldwide, as well as the Manufacturing Media Consortium. Tom serves on the advisory and editorial boards of publications focusing on material handling, automation, safety, quality, and lean manufacturing best-practices and has authored over 5,000 articles related to all aspects of manufacturing.

Randy ClarkDirector of Six Sigma, Upland SoftwareRandy is a Black Belt and Executive Master Black Belt-trained, three-year Examiner of Malcolm Baldrige National Quality Award. Randy possesses 20+ years as practitioner and leader in Continuous Improvement efforts with companies like Pitney Bowes and Whirlpool.

Frank KapperGeneral Manager, Ultriva by UplandFrank has 30+ years of experience architecting, directing, and managing successful enterprise and division-level information technology and business systems transformation initiatives in mission critical environments. He is a proven innovator in the application of advanced IT systems and process improvement methodologies to drive sustainable bottom-line improvement and growth.

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A $1-per-hour wage increase for the typical U.S. warehouse and distributioncenter employee would be equal to jacking up the annual rent on a 500,000-square-foot industrial property by 37%

$1-an-hour rise in wages would add about $1 million in annual labor costs for a500-employee facility. That added cost is equivalent to a $2.08-per-square-footrent increase for a large building. The average U.S. industrial rent is about $5.65per square foot.

Source: CBRE Group Inc.

RIPPLE EFFECT OF INCREASING LABOR COSTS

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$11.82

$14.90

$18.02

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

$18.00

$20.00

2016 Avg. Wage p/hr. for DC/WarehouseWorker

Projected 2018 Avg. Wage p/hr. forDC/Warehouse Worker

Projected 2020 Avg. Wage p/hr. forDC/Warehouse Worker

Hourly Wages Impact Affordability Index

Source: Bureau of Labor Statistics, Department of Commerce, and TR Cutler, Inc. Logistics Supply Chain Executive Survey March 2016 ©

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Source: Bureau of Labor Statistics, Department of Commerce, and TR Cutler, Inc. Logistics Supply Chain Executive Survey March 2016 ©

20%

35%

48%

0%

10%

20%

30%

40%

50%

60%

2016 2018 2020

Labor Costs as Percentage of Supply Chain Expenses

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Do you experience inventory spikes and fluctuations in your supply chain?

+ Yes

+ No

POLL QUESTION

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78%

22%

Balancing Labor Expenses Against Inventory Spikes and Fluctuations

supply chain professionals currently experience significantfluctuations in warehouse volumesupply chain professionals do not report inventory spikes

Source: Bureau of Labor Statistics, Department of Commerce, and TR Cutler, Inc. Logistics Supply Chain Executive Survey March 2016 ©

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73%

27%

Balancing Labor Expenses Against Inventory Spikes and Fluctuations

supply chain professionals report they do not have aviable solution when inventory spikes arisesupply chain professionals report a strategic plan is inplace to accommodate inventory spikes

Source: Bureau of Labor Statistics, Department of Commerce, and TR Cutler, Inc. Logistics Supply Chain Executive Survey March 2016 ©

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WHAT ARE SOME MAIN OBJECTIVES OF SUPPLY CHAIN AUTOMATION INITIATIVES?

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WHAT IS THE TYPICAL SCOPE OF A SUPPLY CHAIN AUTOMATION PROJECT?

WHAT TYPES OF RESOURCES ARE INVOLVED?

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POLL QUESTIONHow are you tracking Supply Chain Management and / or Lean Six Sigma (LSS) programs today?

+ Spreadsheets / Custom-built application+ Microsoft Project / SharePoint+ Microsoft Project Server+ Project Portfolio Management (PPM) solution+ I’m not tracking them today

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WHAT ARE SOME OF THE CHALLENGES ASSOCIATED WITH THESE TOOLS?

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WHAT ARE SOME OF THE PROBLEMS MANUFACTURING FIRMS ENCOUNTER WHEN DEPLOYING THESE SYSTEMS?

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IMPLEMENTATION PROBLEM AREAS+ Business goals & objectives not clearly communicated or understood

+ Lack of accountability for status and outcomes

+ Missed due dates and long cycle times

+ Lack of tools and disciplined methodology

+ Re-inventing the wheel

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HOW CAN PROJECT PORTFOLIO MANAGEMENT TOOLS HELP IMPROVE THIS PROCESS?

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GOALS & ACCOUNTABILITY

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GOALS & ACCOUNTABILITY

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GOALS & ACCOUNTABILITY

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MISSED DUE DATES & LONG CYCLE TIMES

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DISCIPLINED METHODOLOGY

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RE-INVENTING THE WHEEL

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HOW IS THE RETURN ON INVESTMENT ON SCM AUTOMATION INITIATIVES BEING TRACKED AND REPORTED TODAY?

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SUMMARY LEVEL INVENTORY SAVINGS ANALYSIS

S/X Ratio is the product of the Standard Deviation / Mean

calculation, which shows Variability of Consumption for the part within

the historical demand period.

Current vs. Projected

Inventory Values & Turns for items in the IOT study

Inventory Savings = $2.3M, or a 71.52% improvement

Inventory turns show a 2.5x improvement

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Ultriva can perform what-if scenarios by

changing Lead Time, Lot Size,

and Safety Stock

Opportunity to reduce on-hand inventory in the

system

$560K in savings for a single part

ITEM LEVEL INVENTORY SAVINGS ANALYSIS

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PROVIDE ACTIONABLE BUSINESS INTELLIGENCE

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MONITOR SUPPLIER PERFORMANCE

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Pre-Ultrivaon-time delivery

performance

Post-Ultrivaon-time deliveryperformance

SUPPLIER ON-TIME DELIVERY PERFORMANCE PRE VS. POST ULTRIVA

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Thank you! And now for

questions and

answers

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+ By email: info@uplandsoftware.com

+ Through our websites: + www.powersteering.com+ www.ultriva.com

+ By phone: 855-944-PLAN (7526) - Toll free in US and Canada

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