partnership the news - asqasq.org/cs/2016/03/the-partnership-news-spring-2016.pdf · presentation...
TRANSCRIPT
Spring 2016 Volume 23 Issue 2
The Partnership News is the official publication of the ASQ Customer-Supplier Division.
Articles, information, and suggestions should be addressed to: Steve MacDougall [email protected]
Inquiries should be directed to: ASQ 600 North Plankinton Ave. Milwaukee, WI 53203 800-248-1946 (USA and Canada) 414-272-8575 (International) 414-272-1734 (Fax) www.asq.org
ThePartnershipnewsFrom the Chair Greetings Customer-Supplier Division Members!
Let me start by expressing my gratitude and appreciation for the leadership of my immediate predecessor, Shawn Armstrong. Shawn’s example has set a high standard and left me with really big shoes to step into! Now that he has passed me the baton (the “fun stick” as he referred to it) I am very excited and honored to serve and guide CSD these next two years. While I’m designated as CSD chair, all ASQ divisions have an “office of the chair” that includes the current chair, past chair, and incoming chair roles. I’m very pleased that Stephanie Parker—our incoming chair—is joining us as the three of us preside over the mission of the Mighty CSD!
If you have been around CSD for a long time, you might remember my previous service as CSD chair from 1997–1998. I’m still here, enthusiastic about the opportunities ahead of us! For those of you who weren’t members back then, you might be interested to learn I am more of a “customer guy” (follow me on twitter@csmguy) rather than a “supplier quality” guy. My customer perspective provides me a razor’s focus to be sure CSD is dialed into our members’ needs. Creating and delivering member value is what the Customer-Supplier Division is all about. Please let me know when we are doing a great job, as well as when you feel we need to improve ([email protected])!
One of my hopes for 2016 is that many CSD members will actively participate and fully engage with what CSD has to offer you. Past member surveys have indicated that networking with like-minded professionals is one of the most important aspects of CSD membership. This year I encourage each of you to participate in CSD opportunities for face-to-face networking. Here is what we have coming up in 2016:
• ASQ World Conference in Milwaukee, WI, May 16 –18, asq.org/wcqi (members invited to CSD business meeting, May 15)
• 3rd Annual Joint Technical Communities Conference, Orange County, CA, September 15 – 16, http://asqtcconference.com/
• Fall course offerings (locations TBD, timing, October and November, asq.org/csdtraining)
Each of these venues provides fabulous opportunities for learning. The networking is the icing on the cake. The contacts you make will help your career today and become treasured colleagues in the years ahead!
We are also on the lookout for new voices for supplier quality. If you have a useful story (a case study or article) to share with your CSD colleagues, please contact our newsletter editor, Steve MacDougall ([email protected]). If you are interested in speaking, we might still have a slot or two for the September conference. Please
continued on page 2
2
CSD Volunteer OpportunitiesWe have lots of opportunities—defined and ad-hoc—that might be a great way for you to expand your network, learn, and have a great time! Here are a few of our member leader roles that might be a great place for you to get your start with us:
Division Internet Liaison serves by monitoring the division website for relevance, accuracy, and vitality. Opportunity to assist with other electronic communication vehicles, including social media.
Chair – Marketing serves by developing and executing marketing plans for CSD offerings including the annual Joint Technical Communities Conference (TCC). Also will collaborate with ASQ and division team members to promote and communicate CSD’s courses and roadshows.
Chair – Roadshows serves as the lead project manager, interacting with division, ASQ, and external suppliers to ensure successful setup and implementation of CSD Roadshow program each year.
Interested? Contact [email protected] for more information!
contact Chris Riegel ([email protected]) for more info.
In summary, I hope you’ll find ways to engage fully with what CSD offers. There are other channels for tapping into our resources. We’ll explore those in more detail in a future column. Next time, I’ll continue to brag about some more of my fabulous member leader teammates. I can’t stress enough what a privilege it is to work with CSD’s volunteer leaders!
Warm Regards,
Jeff Israel Customer-Supplier Division Chair
May 2016 WCQI HighlightsComing to Milwaukee for the 2016 Would Conference for Quality Improvement? Here are some opportunities to capitalize on your Customer-Supplier Division membership:
1. Sunday, May 15, CSD Business Meeting (all members welcome), 2:00 p.m. – 5:00 p.m.
2. Sunday – Wednesday, May 15 – 18, CSD Booth (#540) in the WCQI Exhibit Hall. Drop by and connect with your CSD leaders and find out why they call us the “Mighty CSD”!
3. Monday, May 15, CSD-Sponsored Session at WCQI, M18, 1:30 p.m. – 2:30 pm. “Supplier Quality Management: A Complete Approach,” presented by Ed Cook.
4. Division Officer Meet and Greet: Monday and/or Tuesday evening. Location and time TBA.
Hope you will join us! Please send Jeff Israel an email for questions or more information at [email protected].
From the Editor
3
Being a Great Customer for Your Suppliersby Kevin O’Marah
Note: This article first appeared February 2014, on scmworld.com. It is reprinted here with permission.
http://www.scmworld.com/columns/beyond-supply-chain/being-a-great-customer-for-your-suppliers/
An article I wrote last year on the nasty, brutish tactics of some old-school purchasing folks has proved to be a favourite among the many suppliers I’ve run into since. The angle was all about being a better customer. Since then the pace of supplier consolidation has, if anything, increased, just as the need to accelerate innovation has exploded. The life-or-death struggle in supply chain is increasingly away from worrying only about pleasing the customer and toward cozying up to the supplier.
Expertise Is Worth More Than MoneyOur latest research report digs into the question of how the best companies work with suppliers to bring better products to market faster. No surprise, of course, that harsh, divisive tactics meant to commoditise suppliers, pitting them against each other for ever thinner margins, works badly when technology, design or creative problem solving is called for.
Consider, for instance, the engineering expertise required for “the world’s first electronic limited
slip differential designed for the front transaxle of a front-wheel drive vehicle”. This is typical of what BorgWarner, a highly advanced tier-1 automotive supplier, sells to its OEM customers—in this case, Volkswagen. Suppose BorgWarner feels slighted or cheated by VW. Who loses?
The same can be asked of the increasingly specialised expertise attached to essential materials or components from semiconductors
(don’t annoy Intel or Qualcomm) and packaging (be careful how you treat Rexam and Aptar). And even where the technology isn’t necessarily rocket science, suppliers still must sync up with your new product development and launch cycles tightly enough to hit ever smaller market windows with adequate volumes. Orchestration is an especially apt metaphor for best practice engaging suppliers in new product development.
continued on page 4
Customer of Choice behaviours: orchestrating innovation
Spend facetime on
supplier sites
Measureand reward
success
Givefeedback andkeep suppliers
in the loop
Consider theimpact of your
actions
Accept someof the risk
Live up to yourcommitments
Speak withone voice
Involvesuppliers earlyand give them
scope
CUSTOMEROF CHOICE
FOR SUPPLIERINNOVATIONS
Tackle IPissues
upfront
Share strategicinformation
TRUST
TRUST
Copyright © 2014 SCM World (scmworld.com). Reproduced with permission.
4
Trust Is EverythingResearch we did on collaboration last year identified a key breakdown with inter-company relations. Mid-level supply chain practitioners saw minimal difficulty with trust in collaborative supply chain work, while SVPs and above said lack of trust was the biggest problem by a wide margin. The difference boils down to awareness at these more senior levels that co-developed value, especially intellectual property, needs to be split up. Open-handed joint problem solving might thus end up making one party rich while the other just gets paid, unless IP issues get tackled upfront.
Extensive research on this topic conducted by a Detroit-based academic, John Henke, demonstrates very clearly the value of maintaining good working relations with suppliers in the auto industry. The precision and long time horizon of the data set shows first how Japanese auto makers leveraged customer-of-choice behaviours to elicit superior innovation from North American suppliers, and then how U.S. OEMs gradually caught up.
Today, for instance, Ford tops Toyota, Honda and Nissan in both “supplier willingness to invest in new technology in anticipation of new business” and “supplier willingness to share new technology without the assurance of a purchase order”. Is it a coincidence that Ford has finally
made Gartner’s Supply Chain Top 25 or that Toyota dropped out a few years back? Maybe not.
Customers Don’t Always Know BestOne of the big issues in supply chain today is burgeoning complexity driven by digitally empowered consumers. Retailers are getting pounded in this process and most are reacting by shoving pain back up the chain on to suppliers. In my view, the worst thing we could all do is jump
unquestioningly through every hoop our customers tell us to.
No one demanded mobile phones, personal computers or even automobiles until Motorola, IBM and Ford made them happen. Instead of slavishly chasing demand for marching orders, maybe it’s time to look upstream and see what our suppliers have to offer. Don’t be surprised if the best among them have more to teach than to learn.
Copyright © 2014 SCM World (scmworld.com). Reproduced with permission.
About the Author Kevin O’Marah leads SCM World’s content team and cutting-edge, practitioner-driven supply chain research. O’Marah also co-chairs the SCM World Executive Advisory Board, a group of 15 C-level practitioners from the world’s leading brands dedicated to improving the practice of supply chain management.
A research fellow at the Stanford Graduate School of Business, he helps to shape the direction of supply chain teaching for the next generation of business leaders. Prior to SCM World, he served as group vice president for supply chain at Gartner following the 2009 acquisition of AMR Research, where he was chief strategy officer. In his 10-year career at AMR, he created the Supply Chain Top 25, wrote over 400 published articles and reports and led a six-year dialogue with business leaders and luminaries such as Bill Clinton, Colin Powell, Michael Eisner and T. Boone Pickens.
O’Marah holds a bachelor of arts in economics from Boston College, a master of science in industrial relations from Oxford University and an MBA from Stanford University. He is based in Boston, MA, and travels to London frequently.
5
Reduce Risk, Improve Performance Through Enhanced Supplier RelationshipsBy Douglas A. Smock, Robert A. Rudzki, and Steve Rogers
Note: This article is from a presentation at the 92nd Annual International Supply Management Conference, May 2007, Las Vegas, NV. It is printed here with permission.
Abstract. The ability to effectively work with and manage suppliers is an element of growing importance in creating and sustaining competitive edge. As we state repeatedly in our new book, On-Demand Supply Management: World Class Strategies, Practices and Technology, in order to drive performance and manage the growing risks of global and complex supply bases, companies must develop strong people and processes that are enabled by technology.
Too often the issue is that technology is viewed as the answer for weak processes and people skills. Instead, these three elements must extend all along the classic strategic sourcing process to deliver results with manageable risk levels.
Introduction. While the current supply media headlines are devoted to the responsiveness, agility and risk management needed to control cost and meet customer expectations, it is the people and the processes that provide discipline and quality along the full strategic sourcing process continuum.
Supplier Selection. Too many companies view the choice of bidding tool as the primary step in the supplier selection process,
expecting the outcome from the reverse auction or request for proposal to be the right one for the business. Supplier selection begins long before the tool is determined, incorporating the basic policies governing how the company views its suppliers along with the segmentation of the supply base to understand which suppliers are truly strategic. Only then should the decision of how to go to market be taken. The choice between auctions, traditional bidding or face-to-face negotiation has to follow, not lead, the supply strategy. Technology, far beyond RFX tools, plays a key role in this effort—from spend analysis to figure just who you are buying from, to market analysis to decide which suppliers to approach, to optimization tools that enable those suppliers to provide additional value and innovation to what would otherwise be a routine bidding event. One tool does not fit all jobs.
Supplier Management. Once the suppliers are selected, the challenge quickly becomes ensuring that the promised value coming out of their selection actually finds its way into your company and its products/services. For most suppliers, performance management is important—and technology-based scorecards and contract management systems, when well implemented, make a huge difference but require discipline and rigor to implement.
However, supplier management also must include working the people interface because it is the people that make decisions to support (or not) and execute the initiatives suppliers offer. Technology can also enable these aspects by connecting the people that matter and providing diagnostic relationship questionnaires that force thinking and engagement—even during serious disagreements. The keys are that:
1. Supplier management must include both performance and people aspects.
2. E-tools are not a substitute for personal interaction—especially with strategic suppliers.
Value Mining. All of the above can provide some advantage but only for a period of time—a short one at that if your competitors are strong. The key to ongoing advantage is finding value beyond the existing products and specifications. This is where specialized e-tools can enable should cost analysis, joint product design and marketplace on-demand responsiveness to customer need changes and demand volatility. (On-demand here has nothing to do with software pricing approaches, so don’t be confused—it is about meeting customer requirements quickly and accurately and proactively finding customer needs ahead of your competition.)
continued on page 6
6
Book References
Smock, Douglas A., Rudzki, Robert A., Rogers, Stephen C.; On-Demand Supply Management: World Class Strategies, Practices and Technology; J. Ross Publishing, Ft. Lauderdale, FL, 2007.
About the Authors
Douglas A. Smock [email protected]
Robert A. Rudzki President, Greybeard Advisors LLC Former SVP and CPO, Bayer Corp. 412-874-8410; [email protected]
Steve Rogers Senior Consultant The Cincinnati Consulting Consortium 513-232-9297; 513-324-9545; [email protected]
Risk Management. Supply management best practices (global sourcing, sole sourcing, supplier rationalization, etc.) have driven cost and quality improvement but at the same time have dramatically increased a range of supply risks (financial, trade management, SOX, on-time delivery, quality, corporate reputation and so forth). Again, technology provides tools to manage these risks at levels unheard of just five years ago, but only if people are rigorous and disciplined in using them. Managing risk, more than any of the other aspects, requires strong people and well-defined and understood processes to be in place to implement technology solutions in order to protect the business.
Doing Versus Talking. All of this sounds nice, but the ability to justify the people upgrade approaches (hiring, retaining and training/growing), the process implementation efforts (change management) and the technology solutions (software is not cheap) are critical to ultimate competitive edge. It starts with two business cases—the first is fundamental: the business case as to why supply management is critical to the future of your company. This often fuels the people and process effort. The second is the business case for the technology investment made to enable the first business case. Once you have made the case, then the measurement of results becomes vital—both to justify the investments but more importantly to understand whether true value and competitive advantage are flowing into your company. The business impacts of strong supplier relationship management—both for performance and for ongoing breakthrough opportunities—need to come through and, when they don’t, you will need to adjust your plan to make sure they do.
7
3rd Annual Joint Technical Communities Conference (JTCC)Preconference Courses: September 12 – 14, 2016 Conference: September 15 – 16, 2016
Hotel Irvine | Irvine, CA
Expanding Member Value You are invited to join us at the Annual Joint Technical Communities Conference (JTCC) in Southern California, September 15 – 16, 2016. The JTCC will expand your reach and your depth of knowledge.
This conference provides the quality community with the opportunity to gather, delivers an understanding of and access to quality tools and techniques both locally and globally, and expands the growth of quality through collaboration and innovation in a forum that provides value to our members.
Visit our website today, www.asqtcconference.com, to see the conference agenda and the course offerings.
Members are participating from the following divisions and sections:
• ASQ Region 7 (Southern California) • Aviation, Space, & Defense Division • Customer Supplier Division • Energy and Environmental Division • Quality Management Division • Software Division • Statistics Division
The session foci are based on division priorities and are designed to:
• Increase development and access to division QBoKs through tools and leadership content
• Energize 21st century quality leaders through communication, knowledge sharing, and quality stories
• Expand our technical knowledge globally to encourage quality worldwide
Special topics will include:
• Innovation • Changes in the ISO standards • The business case for quality • Global ASQ • ASQ’s social responsibility program • The division’s focus on QBoK and what
it means to members • Other division-specific topics as selected
by the member leaders of each division
SAVE THE DATE
600 N. Plankinton Ave., Milwaukee, WI 53201-3005
Non-Profit Org.U.S. Postage
PAIDMilwaukee, WI
Permit No. 5419
2016 Customer-Supplier Division Officers and Committee ChairsChairJeff Israel SatisFaction Strategies, LLC [email protected]
Incoming ChairStephanie Parker Boon Edam, Inc. [email protected]
Immediate Past Chair and Nominating Committee ChairShawn A. Armstrong Grace Bio-Labs [email protected]
TreasurerPamela L. Carvell Pfizer Inc. [email protected]
SecretaryUrsula Williams Brooks Automation, Inc. [email protected]
Audit Committee ChairRebecca Carroll Quanta Computer Nashville [email protected]
Membership Committee Chair and VoC ChairEdward Kendrick Sr. Quality Promoters [email protected]
QBoK ChairJeff Jaswa [email protected]
Conference Chair and ASQ Standards Committee RepresentativeChris Riegel Amsted Rail Company [email protected]
Social Responsibility ChairAimee Siegler Benchmark Electronics [email protected]
Education Committee ChairMaria V. Stoletova Integrated Quality Strategies [email protected]
Newsletter EditorSteve MacDougall Honeywell Aerospace [email protected]
Examining Committee ChairRichard A. Gould [email protected]
Please consider the environment. Do you really need a paper copy of this newsletter? Please send a message to [email protected] with “Electronic Only” in the subject line.