1. Satisfy the customer’s real needs not wants
– For effective supply chain management, the real customers’
needs must be satisfied, not their wants.
2. Understand how the real world works
- The more quickly information moves, the more value it has.
The same fact is true for supply chain management.
- Being able to execute quickly can remove the need to
forecast.
- Material will expand to fill the space provided.
3. Have a complete integrated system
– A complete system includes both planning and execution
management.
– Plan will change but to fail to plan in planning to fail.
– Changes and variability are expected events. The more
quickly an enterprise can react, the less cost is incurred by the
operation.
– System effectiveness is inversely proportional to the
complexity.
4. Accurate data
- Without accurate data, the best hardware and software will be
nothing but a big money pit and provide no return on
investment.
5. Manage cycle time
– Cycle time is the amount of time that elapses between material
entering and exiting a production facility.
– Do not release orders to the floor unless all material and capacity is
available to run it.
6. Eliminate nonvalue-added activity
- It is not say that every implementation should embrace “industry
best practices” if these processes do not help the enterprise achieve
its goals.
- Keep implementation costs down rather than driving higher return
on investment.
- Eliminating nonvalue-added activity means that one shouldn’t
automate bad process.
7. Fully qualified People
- What business are they themselves in?
- Where does their work fit into the total business?
- Who are your customers? What do your customers need?
- Who are your suppliers? What are their problems?
- What are their tools (system, data, machinery)? How
well do they use them?
- Who is on their team?
- Who are not yet fully qualified?