If you don’t get your supply chain right….boy are you in a hole
To paraphrase the great Bill Shankly:
“Supply chains are not just a matter of life and death, they are more important than that!”
A business can very quickly starve itself of revenue if it fails to get its products through to the end consumer, whether because of poor forecasting, unexpected bump in demand or logistics issues. In this news report Marks & Spencer suffered a decline in sales due to poor supply chain management.
http://www.bbc.co.uk/news/business-17737970
When we look at world class businesses – we see exceptional and appropriate supply chain management. The issue of appropriateness is crucial – world class is NOT the same as best practice. I have seen many companies adopt what we probably would think of a best practice – lean operations – and become anorexic, having insufficient supplies to sustain their market demand, having insufficient capacity to respond to changing needs of the market and having nowhere to turn in the event of black swan events.
Sustainable Supply Chain Management – the MBA experience part one
In applying for this project support I was driven by a long time passion and interest in how technology can support student – centered learning. I have been involved with various e-learning projects since 1997.
The class is a small elective with 6 students, two of whom already had iPad2. Although we actively promoted the iPad project I don’t believe it was an incentive to sign up for the class, merely a benefit once enrolled.
Students have used Curatr (an App we have won awards with on other courses at USD) Pages and Keynote, Puffin browser, Evernote and iAnnotate. So far their favorite app is Evernote which allows flexible and synchronized note taking (available on all theri devices) and audio recording.
The students have a field project to complete and in just over a week I will post more about how the iPad supported that process.
Recent research – Quality of Learning in an online blended environment
“Developing a forensic approach to process improvement: the relationship between curriculum and impact in front line operator education” Simon Croom & Alan Betts
Abstract
This is a short version of a paper we have published in the Journal of Education in Business. We concluded that the use of e-learning via online learning management support and associated media had a positive impact on learner retention and their application of the concepts and tools in the program
Introduction
Illeris (2003) contends that all learning implies an integration of external interaction processes (such as the social and workplace environmental conditions faced by the learner) and internal psychological processes (i.e. an individual’s behavioral and cognitive processes). Illeris states that ‘many learning theories only deal with one of these processes, yet [it seems evident to me] that both processes must be actively involved if learning is to take place’.
The relationship between the external and internal reflects in essence the action research approach to learning (Rowley, 2003), which is best explained by the Kolb learning cycle (1984). Nonaka & Takeuchi’s influential work (1995) further reinforces the significance of the combination of external and internal processes surrounding workplace (or organizational) learning.
In respect of the distinctive nature of post-experience adult learning, Knowles’ (1984a; 1984b) developed a theory of andragogy specifically for adult learning, which makes the following assumptions about the design of learning:
(1) Adults need to know why they need to learn something
(2) Adults need to learn experientially,
(3) Adults approach learning as problem-solving, and
(4) Adults learn best when the topic is of immediate value.
In practical terms, andragogy means that instruction for adults needs to focus more on the process and less on the content being taught (Eskerod 2010). Such strategies as case studies, role playing, simulations, and self-evaluation are most useful. Instructors adopt a role of facilitator or resource rather than lecturer or grader.
The advent of e-learning and learning management systems (LMS) employing internet delivery has opened up new opportunities for educators, and it has been shown that a strong relationship exists between effective learning management systems and sustainable organizational learning.
Methodology
Our objectives were:
- to identify the impact of a range of forensic tools and methods in terms of learner application
- to compare alternative curricula in the development of forensic capability as demonstrated through action learning projects
This study was conducted as a direct result of our involvement in two executive education programs. Both client organizations were financial services providers of similar heritage, size, structure and operational characteristics.
Our primary objective in conducting this study was to evaluate the impact of curriculum on outcomes.
The unit of analysis for this study was a ‘cohort’, that is, a single group of learners following the same course of study. Typically a cohort would consist of 15-20 participants. In this study we had 38 cohorts, 22 from Organization A and 16 from Organization B.
Analysis of the data involved recording exactly which forensic methods were applied and conducting an assessment of the accuracy and extent of their use through tutor evaluation. A list of the tools used by each cohort was tabulated in the first instance and then summarized by organization. Secondly, all project submissions were assessed for level of accuracy, appropriateness of application and consistency of interpretation by two experienced teachers of operations management. One of the assessors had involvement in the delivery of the programs; the other assessor was not involved in delivery. All assessments were marked by both teachers using their agreed rating system. Finally the use of individual forensic methods was assessed in order to identify any difference in capabilities between cohorts from the two organizations.
Forensic Tools
Table 1 below lists the tools & methods included in both organisations’ curriculum:
|
Organisation A |
Organisation B |
| Layout Diagrams | Layout Diagrams |
| Process Flow Charts | Process Flow Charts |
| Work Flow Analysis | Work Flow Analysis |
| Volume-Variety Matrix | Volume-Variety Matrix |
| SPC Control Charts | SPC Control Charts |
| Experimental Design | Experimental Design |
| Capacity Utilisation | Capacity Utilisation |
| Throughput Efficiency (T/E) | Throughput Efficiency (T/E) |
| Supply Chain Mapping | |
| ServQual (adapted) Gap Model | |
| Process Capability | Process Capability |
| Causal Maps | Causal Maps |
| Service Blueprinting | |
| Polar/Radar Representation of Strategic Imperatives | Polar/Radar Representation of Strategic Imperatives |
| Importance-Performance Matrix | Importance-Performance Matrix |
Table 1: Content of Curriculum – Tools and Methods
Elements of Curriculum Design
There are various definitions of the term curriculum, the one preferred in this paper is that of Neagley, Ross & Evans, (1967): “All the planned experiences provided by the [institution] to assist the [learners] in attaining the designated learning outcomes to the best of their abilities.” Thus, curriculum embodies the total learning experience, the process of learning and the application of learning.
Findings
We used the terminal group project submissions as the basis for our data analysis. The remit for both groups of participants was similar – to undertake an analysis of a process and propose improvements as a direct result of their investigation. We were able to identify both the methods employed and the consequent improvements for each of the projects undertaken.
In total we analysed 38 cohorts’ reports, 22 undertaken by Organization A participants and 16 by Organization B participants. In table 3 we summarize the frequency distribution of the forensic tools used.
|
Organization A |
Organization B |
| Volume-Variety Matrix 90%Polar/Radar Representation of Strategic Imperatives 75%Importance-Performance Matrix 53%Process Flow Charts 48%Process Capability 18%Layout Diagrams 15%Work Flow Analysis 8%Capacity Utilisation 4%
Throughput Efficiency (T/E) 2% Experimental Design 1%
|
Volume-Variety Matrix 97%Polar/Radar Representation of Strategic Imperatives 87%Importance-Performance Matrix 82%Process Flow Charts 67%ServQual (adapted) Gap Model 38%Layout Diagrams 27%Supply Chain Mapping 21%Process Capability 17%
Capacity Utilisation 13% Work Flow Analysis 8% Throughput Efficiency (T/E) 3% Service Blueprinting 2%
|
Table 3 – Forensic Methods – Frequency of Use by Cohorts
For many participants the notion of using analytical, quantitative approaches was particularly challenging due to their lack of numerical capability or simply lack of confidence in applying such methods.
Evaluation
We found three significant difference’s between the two organizations:
Firstly, all of Organization B’s projects had clear evaluation of the financial impact of recommendations, and linked improvements to customer service. In the Organization A projects only 25% of the projects had a clear financial data associated with improvements.
Secondly, the link between existing performance metrics, process changes and performance improvements on non-financial criteria was significantly different between the two organisations. Again, all of the Organization B projects provided clear associations between improvements and performance, while only 72% of Organization A’s proposal contained such information.
Finally, the clarity of argument applied to the proposed improvements was significantly different between the two organisations. This is partly reflected in the grades awarded but was further reinforced by the extent to which each project proposal had actually been implemented.
We thus contended that the differences in progress could be a reflection the degree of clarity in the technical arguments. To test this proposition we spoke to a small sample of sponsoring managers in both organisations in order to identify other factors preventing implementation. While this was an opportunistic process and thus lacks some statistical significance in our findings, we did conclude that both organisations faced similar levels of exogenous inhibitors (lack of funding, impending technological changes and constraints through work practice and existing systems).
Conclusion
Many front line operatives are resistant to the use of ‘forensic’ or technical tools and methods and do not demonstrate an aptitude to utilize such tools unless given technical instruction. The collection of learning experiences for developing such technical competence is critical to the effectiveness of educational and training programs even though some authors have claimed that there is no ‘one right way’ to develop process improvement competencies (Upton & Kim, 1998).
From our study of two development programs we found a significant and valuable difference in learning outcomes did exist, which we ascribed to the curriculum differences between the programs.
It is our conclusion that the level of technical competence demonstrated by participants was greater where the curriculum included on-line learning support and workshops that are scheduled over a longer timescale (see also Alonso et al 2005; Ruiz et al 2006). We also concluded that the effectiveness of the application of learned skills in action learning situations was greater under such circumstances.
The three significant elements of the curriculum that contributed to these benefits were: the provision of intensive structured support in the form of on-line tutorials supporting core techniques, incorporation of project-based coaching and the involvement of an action-oriented approach to learning.
Bill McDonough co-author of Cradle to Cradle
An engaging insight into Cradle to Cradle, the environmental impact of design and a vision of ‘good’ design. Specifically discusses supply chain…
Worth the time to watch, probably several times.
Why is Good Service Important, yet hard to get?
World class service organization are exceptionally good at repeating the experience. Most service organizations, however, fail to grasp the complex dynamics of poor service – both internally and externally. Here’s a structural model we often use to help elaborate on the drivers and consequences of service delivery issues:
One of the golden rules is:
‘Customer Satisfaction is less than or equal to employee satisfaction‘
This is significant. Delivering great service requires employees to be motivated, to want to give that exceptional experience for which customers will come back time and again. Without a motivated workforce, good service is just not going to happen. However, there is one exception. When employees take pity on customers, they can deliver great service!
A second powerful tool is this:
The Complaint Value Chain highlights the connection between poor service experience and recovery. Even when customers are unhappy and complain, if you can recover the situation by resolving the complaint and satisfying the customer, the result can even by greater satisfaction than if there had been no complaint! Drawing attention to the organization’s willingness to resolve a problem and put effort into listening to the customer, treating their concerns as important and validating their views will make the customer feel positive about their experience – and often tell others how pleased they were. It has been said – ‘To err is human, to recover is divine!’…One can see that it can be profitable too!
This week I have taken two groups of students to Cinepolis in Del Mar, CA a VIP (luxury) cinema experience. The company is a Mexican family owned business with $4bn revenue. Rather than reviewing the experience through my eyes, I welcome my students to post comments….
Why engage students? What do we mean ‘social learning’?
Over the last two years the University of San Diego has been intimately involved with our partner HT2 in the development of Curatr, a social oriented e-learning creation system. My previous post highlighted the award we won in November and now here’s some insight into the logic behind the new version 2 of Curatr featuring Ben Betts, our e-learning guru.
In my iPad project at USD we are about to embark on a major deployment of Curatr and I will be posting more about this as we evolve the course!
From Supply Chains to Value Network Management – In a connected world, it is more about who is connecting to who(m) than how great UPS are!
I’m typing this blog posting on my iPhone, thanks to the many wonderous things embedded in the product and in the cloud to which it is connected. I often do this, but today I am pondering the massive network of relationships, assets and resources that lie behind what I am doing. In other words, the supply chain (or ‘value network’, if you will) that lies behind my experience is of immense fascination to me. I watched this video with interest too, just to realise the range of patents and nature of those patents in my iPhone (and iPad). See also the recent success of Apple in their action with Motorola.
I teach a course called Value Network Management and have been doing so for 11 years – ever since Dr David Burt approached me to write the capstone course for our MS in Supply Chain Management on the basis that my PhD and other research had focused on the strategic importance of supply chain relationships in innovation. That journey has led to the point where we could seriously contend that supply chain spread beyond simple physical and financial resource structures and interaction to embrace the power of collective innovation, the significance of trust as the conduit of competitive advantage and the impact of personality upon strategic success.
Value Networks are essentially the networks that emerge from human relationships, collaborative innovation, joint purpose and are founded on the power of open, co-dependent and creative relationships. They are often to be found in situations where the parties to a relationship see the benefits of working together, sharing risks and rewards, and through a ‘visionary’ approach to trusting one another. Naturally, this gets classified as something of a utopian ideal, when the reality of most relationships is more dystopian!
I have frequently been accused of being idealistic or even naive in my views of the importance of collaboration:
“Business is dog eat dog’; “you academics live in a rarefied, detached world – it’s every one for themselves”……
But I am not an idealist – I recognize that not all business relationships could even aspire to some collaborative, trusting state. One reason is that many organizations are founded on checks, balances, risk aversion and simple fear of releasing human creativity. The other is that there is a sufficient incidence of disordered personalities in senior positions who are merely self seeking and lacking conscience – which naturally gets in the way of collaboration and undermines trust.
However, when you find great partnerships between organizations, you begin to see the economic power such collaboration brings in the partnership. My good friend Robert Porter Lynch is the guru in this field – his writing and work on collaborative partnerships really shows how organizations can gain significant market share, profitability and growth through building value networks.
We will soon be expanding our work in this area, more of which I will certainly post as it evolves.
