Supplier Partnership


An organization spends a substantial portion of every sales on the purchase of raw materials, components, and services. Therefore, supplier quality can substantially affect the overall cost of a product or service. One of the keys to obtaining high-quality products and services is for the customer to work with suppliers in a partnering atmosphere to achieve the same quality level as attained within the organization.

Customers and suppliers have the same goal—to satisfy the end user. The better the supplier’s quality, the better the supplier’s long-term position, because the customer will have better quality. Because both the customer and the supplier have limited resources, they must work together as partners to maximize their return on investment.

There have been a number of forces that have changed supplier reltions. Prior to the 1980s, procurement divisions were typically based on price, thereby awarding contracts to the lowest bidder. As a result, quality and timely delivery were sacrificed. It is stopped because price has no basis without quality. In addition, single suppliers for each item help develop a long-term relationship of loyalty and trust. These actions will lead to improved products and services.

Another factor changing supplier relations was the introduction of the just-in-time (JIT) concept. It calls for raw materials and components to reach the production operation in small quantities when they are needed and not before. The benefit of JIT is that inventory-related costs are kept to a minimum. Procurement lots are small and delivery is frequent. As a result, the supplier will have many more process setups, thus becoming a JIT organization itself. The supplier must drastically reduce setup time or its costs will increase. Because there is little or no inventory, the quality of incoming materials must be very good or the production line will be shut down. To be successful, JIT requires exceptional quality and reduced setup times.

The practice of continuous process improvement has also caused many suppliers to develop partnerships with their customers.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

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Locking Customers in


Winners care about their clients’ businesses. They take specific steps to become more intimately involved. They share information and knowledge and pass on leads. They are always on the look out for ways of ‘adding value’ or helping customers to solve their problems.

 

They lock out competitors by integrating their own systems and processes with those of their customers. They may become involved in joint planning and the development of their client’s services. Relationships they forge grow into formal partnerships with joint and mutual objectives, shared rewards and savings, commitments to specific and measurable performance improvements, open book accounting and simple, quick, low-level dispute resolution procedures.

 

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Impact of Time-based Competition on Employees


The level of financial performance improvements achieved by companies as they become time-based competitors is difficult to match with conventional cost-cutting techniques. For example, the improvements are completely out of the range of what is achievable by the following methods:

  • Cutting direct labor wages through renegotiation or going offshore.
  • Reducing overheads by de-layering management structures and/or narrowing the line of products and services offered
  • Automation short of the
  • ‘people-less’ factory
  • Obtaining superior economies of scale.

The only way to achieve this degree of performance improvement is by transforming the company into a time-based competitor. Furthermore, the transformation must be made before a competitor makes it.

 

Probably as important, and maybe even more important than the profit improvements, though, are the intangible rewards to the organization of being a time-based competitor. People like to believe they are winners. Growth and improvements in financial indicators clearly tell an organization and the world that that they are winners.

 

Competitors of time-based competitors are often frustrated by their inability to match the growth and returns of their rivals. But they may misjudge the competitive factors contributing to their difficulties. Many complain that their industry is one where no one can make money because of cut-throat competition by companies that do not know how to make money. On two points they are correct: the competition is cut-throat and it is their throats that are being cut. This is the classic case of the retreating competition not understanding the strategy and capability of the advancing competitor.

 

Management should look to time-based competition not only as a source of above-average returns but also as opportunity to make their people feel like winners.

 

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Six Sigma


Six Sigma is a statistical measure used to ensure quality of products and services. The six sigma academy has developed a break through strategy consisting of measure, analyze, improve and control, that allows companies to make exceptional bottom-line improvements. In addition to the material and labor savings, which flow directly to the bottom line, a company engaged in six sigma can expect to see:

a. Improved customer satisfaction

b. Reduced cycle time

c. Increased productivity, Reduction in total defect

d. Improved process flow.

Implementing, six sigma program in manufacturing means more than delivering defect-free product after final test or inspection. It also entails concurrently maintaining in process yields around 99.9999998 percent, defective rates below 0.002 parts per million and virtually eradicating defects, rework and scrap. Other six sigma characteristics include operating processes under statistical control, controlling input process variables, rather than the usual output product variables, maximizing equipment uptime and optimizing cycle time. In a six sigma organization, employees assess their job functions with respect to how they improve the organization. They define their goals and quantify where they are currently, their status quo. Then they work to minimize the gap and achieve six sigma by a certain date.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

Change or Change Management?


Our ability to deal with mega theme dramatic change is the subject of the next trend. Perhaps the single most important indicator for corporate success in the near future is the attitude of the company culture about change. The willingness of a structure to set itself up for change, to regard itself as a testing ground with daily battles, not just those that occur every planning period, is one of the best litmus paper indicators of eventual success or failure.

Today’s information explosion is just beginning. The growing list of mergers, alliances and joint ventures and the rapid deployment of technology are producing change at a velocity that even the seasoned players in businesses can’t surmise. The challenge for businesses will not be in how we manufacture or market change but how we manage it.

The days of the large-scale, vertically integrated corporation are numbered. The trend is toward smaller enterprises with increasing specialization of products are services: the upcoming approach is 50 people are the maximum for the company; if the staff gets above 50 people the company will be cut in two. There is no place to hide in a firm of 50 people. These small companies know what’s happening in their marketplace and with their competitors—they’re not from the marketplace.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight

Why we fail?


The results we intended occur, and we label the result a success. Failure, on the other hand, denotes an undesired outcome. The results we were looking for didn’t come through. To replace failure with success, we need to understand the way that different actions yield different results. In a sense, it’s simple as discarding actions and underlying thought patterns that lead to undesired results and replacing them with deeds and thoughts that lead to the right outcome. Of course, in practice, it’s much easier to say than to do.

Actions result from patterns of thought, and these patterns often form in order to justify the actions that are expected of us. In other words, it’s a cycle. The need for certain action dictates the development of a way of thinking, and that way of thinking leads to the desired actions. Now, if the results of those actions become undesirable, then it follows that you need to change the thought patterns.

Do people really tailor their thinking to accommodate their actions? In some ways this process can be very detrimental; for example, when we alter our beliefs so we can get away with doing things we were brought up to believe are wrong. Yes, our beliefs are fashioned by society, by our environment and culture, but anyone who denies that an individual can radically change his or her way of thinking is seriously underestimating the power we can exercise over our minds.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight

Niche and Technology


Within each industry, each organization tries in some way to find a niche that distinguishes it from its composition. It may do this in the products or services it offers (price, quantity, quality, location, convenience, service, etc.) or in the way it offers them. Noting the ways in which an organization attempts to distinguish itself is useful, both for understanding its place in its environment (and predicting its chances of survival and prosperity) and for understanding the impact these differences may have on the people, things, activities, and space within the organization.

Technology, to a large extent, can be related to the industry a company chooses to enter. Technology means the knowledge, skill, and things required to accomplish specific kinds of work. The technology required in a bank differs greatly from that required in a grocery store, or a chemical plant, or an insurance company. Many internal factors are influenced significantly by the technological requirements of the organization. Consider the impact on the people hired, the things and space required, and their cost, as well as the work to be done and how it is divided.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please contact www.asifjmir.com, Line of Sight

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