Logistics and
Supply Chain
Management
TOPIC 14: PEOPLE MANAGEMENT MS BING HAN
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Learning Objectives
1. Describe the characteristics of a SC manager.
2. Describe the vital role people play as a bridge or barrier to SC collaboration.
3. Explain how to cultivate a culture of empowerment. Discuss the ABCs of empowerment.
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Learning Objectives
4. Explain the importance of investing in employee capabilities through training, especially in the areas of cross training and teaming.
5. Discuss why developing and integrating human and technological resources is critical to developing world-class processes.
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People Management
We know how to invest in technology and machinery, but we’re at a loss when it comes to investing in people.
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The Supply Chain Manager
What are the characteristics
What skills and mind-
of the person in the middle?
set does a true supply
chain manager need?
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The Supply Chain Manager
True supply chain managers are defined by mindset and skill set.
◦Strong functional skills
◦Holistic thinker
◦Analyses trade-offs rigorously ◦Builds collaborative relationships ◦Executes with discipline ◦Exemplifies leadership ◦Embraces change
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Recruitment
Termination
Discipline
Human Resources Management
The functions of HRM
Employment legislation
Performance appraisal
Career planning
Trade unions
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The Most Valuable Asset?
If you leave us our money, our buildings, and our brands, but take away our people, the Company will fail. But if you take away our money, our buildings, and our brands, but leave us our people, we will rebuild the whole thing in a decade.
– . Deupree, CEO Procter & Gamble, 1947
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Great Management Lies 1.Employees are our most valuable asset
Employees are our most valuable asset
2.I have an open-door policy
3.You could earn more money under the new plan 4.We’re reorganising to better serve our customers 5.The future is bright
6.We reward risk takers
7.Performance will be rewarded
8.We don’t shoot the messenger
9.Training is a high priority
10.I haven’t heard any rumours
11.We’ll review your performance in six months 12.Our people are the best
13.Your input is important to us
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Investing in Employee Capabilities
Education…must reach everyone and it will have to go all through life. If you stop, you become obsolete, you cease to be competitive.
The obsolescence curve has compressed, estimates the amount of investment that must be made in acquiring new skills to avoid obsolescence.
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P&G Leadership Development Attributes
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and Supply Chain
Deere offers over 50 courses to Deere employees and employees at first and second tier suppliers.
In addition to upgrading skill sets, these professional development classes bring managers together in a learning environment where they can build relationships.
This Photo by Unknown Author is licensed under CC BY-SA
EBU6609 LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Deere & Company Training Courses
Advanced EDI
Advanced Product Quality Planning
Apples and Oranges
Application of ABC Data
Benchmarking
Business Report Writing
Cash Flow Analysis
Cell Manufacturing
Compensation Strategies and Incentives for CI Conflict Resolution: Team Operating Skills Continuous Process Improvement Continuous Process Improvement (Advanced) Continuous Quality Improvement
Cost/Price Analysis
Creative Focus
Finance for the Non-Financial Manager Group Problem Solving
Interviewing Techniques
Introduction to ISO/QS 9000 Inventory Management
ISO/QS-9000 Internal Auditor/Team Training ISO/QS-9000 Quality System Documentation Job Instruction Workshop
Leadership Skills
Mistake Proofing
Presentation Skills
Preventive Maintenance for Cycle Time Reduction
Preventing Discrimination and Sexual Harassment
Process Mapping
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Example: Deere & Company Training Courses
Customer Service—A Strategy for the Future Customer Service II
Cycle Time Reduction
Decision Focus
Design of Experiments
Developing Communication for Increased
Collaboration
Developing Employees
Developing High Performance Teams Effective Facilitation
Effective Job Skills
Facilitator Skills
Failure Mode & Effects Analysis
Root Cause Analysis Setup Reduction Teaching Techniques Team Effectiveness Team Effectiveness II
Team Focus
Team Problem Solving
Time Management
Win-Win Negotiations
Working in a Changing Environment World Class Manufacturing Writing Skills
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Management Training
In addition to problem solving and role specific training, managers should receive training in the following:
Overview of the organisation focusing on its history, culture, and objectives.
Review of customers, their needs, wants, and success factors. Analysis of key suppliers, including their competencies and
capacities.
Exercises in communication, teamwork, and paradigm shifts.
Specific instruction regarding the firm’s performance measurement and reward system.
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Training Program Problems
Management training is a large investment by a company.
◦Managers often change employment after only 3 to 5 years.
Job rotation and manager trainee programs delay time between hire and permanent job placement.
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Cross-Training
Cross-functional workers emerged with Lean manufacturing principles.
Toyota, the inventor of Lean, seeks to develop world-class process capabilities based on development and integration of people and technology.
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Cross-Training: Lessons from Toyota
1. Requires heavy investment in problem solving skills.
2. Requires broad job descriptions.
◦ At NUMMI ( Motor Manufacturing Inc., JV between Toyota and GM), the number of job descriptions was reduced from 200 to 3.
3. Requires management to empower employees with the authority and responsibility necessary to make real decisions that make an impact.
◦ Jidoka – man and machine system; the authority to stop the production system when problems are identified.
4. Requires management to develop collegial relations with the workforce.
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Cross-Experienced Management Team
Goal is to provide managers an understanding of roles and challenges inherent in diverse value-added activities throughout the company.
Many companies have developed multi-year manager trainee programs that include job rotation, providing trainees with extended experience within various functional areas.
◦ Helps to build relationships, reducing barriers to cross-functional cooperation.
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Job Rotation Programs
Develops an appreciation for the needs and wants of customers
Become familiar with products and value-added process
Gain perspective of different functional areas and how the functional areas work or don’t work together
Establish relationships, improving future decision making, reducing barriers to collaborative initiatives
Develop appreciation for workers that make the product or interface with customers
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Job Rotation Programs
Job rotation can continue after initial hiring.
Communicates that the company is serious about systems thinking and teamwork.
Improves cross-functional communication.
Can be accomplished with assignment to cross-functional task forces and project teams.
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Types of Teams (1)
Type of Team
Advisory Councils
Capital Equipment
Cost Reduction
Team Objectives
Senior-level steering committees, customer advisory boards, and supplier councils – provide feedback, expedite communication, and garner commitment for key initiatives.
Design and acquire needed equipment. Several tasks must be performed to meet key objectives: 1) determine specifications, 2) select a supplier, 3) conduct negotiations, and 4) install and maintain equipment.
Develop the expertise and relationships needed to establish a strategy for managing the acquisition of important commodities over time. They also investigate and select one or more sources for a given material or service.
Take many forms and consist of many different players. Sourced inputs represent 50-80 percent of the cost of good sold suggesting that considerable effort be targeted at improving both supplier relations and supplier processes.
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Types of Teams (2)
Type of Team
Customer Relationship
Cycle-time Reduction
Information Systems
Inventory Control
Problem Solving
Team Objectives
Work to build relationships and understand specific customer needs as well as to respond to customer inquiries and resolve customer problems. These teams increasingly work to design tailored services for the most important customers.
Responsible for reducing time at key processes. The increased use of collaborative planning, forecasting, and replenishment and vendor-managed replenishment has made inclusion of outside representatives valuable.
Determine information needs of the firm and design the information systems to provide this information. Information system specialists run the team but they need the input from the areas where information is either collected or used.
Seek to reduce inventory levels while providing an uninterrupted flow of materials. Sourcing, Operations, and Marketing work to develop dock-to-stock, lean-materials, and coordinated promotions/replenishment systems
Numerous ad hoc teams or task forces are used to solve specific problems, drive the adoption of new technologies, or implement a strategic initiative. These teams are
almost always dissolved upon completion of the specific task.
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Types of Teams (3)
Type of Team
Team Objectives
Product Development
Reduce time needed to bring a product from concept to market. Consist of representatives from Marketing, Production, Purchasing, Engineering, and Quality as well as representatives form both customers and suppliers.
Quality Improvement
Work to improve the quality of products and processes. Members come from Production, Purchasing, Quality Assurance, and Engineering as well as supplier and customer representatives to assure accurate quality definition.
Supplier Development
Help suppliers upgrade process engineering, manufacturing, and quality capabilities. These teams consist of representatives from selected suppliers as well as from Production, sourcing, Quality Assurance, and Engineering.
Value Analysis
Study a product or process and all of its components to determine how to lower cost or improve quality. These teams often include representatives from Engineering, Marketing, Operations, and Purchasing.
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Advantages and Disadvantages of Teams
Advantages
Decision Ownership
Leveraged Diversity
Faster Task Completion
Better Organisational Understanding
Disadvantages
The Never-ending Debate
Groupthink Social Loafing Peer Pressure
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Factors Impacting Team Dynamics
Availability of Resources
Clarity of Team Objectives
Commitment of Members to the Team
Complexity of Team Assignment/Task
Executive Management Support
Functional/Technical Skills of Team Members
Open and Honest Team Communication
Organisational Experience with Teams
Overall Organisational Support for Team Success
Performance Feedback and Information Support
Measures Used for Team and Team Members
Supplier Involvement
Team Autonomy/Mandate
Team Cohesiveness
Team Leadership
Team Longevity
Team Member Personalities
Team Process Skills of Team Members Team Reward Structure
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Team Design Process
Identify a well-defined goal that can be clearly articulated and communicated.
Identify the variety of expertise and experience required to accomplish teams goals.
Define time commitment required.
Identify people with the right knowledge, experience,
and complementary working styles.
Determine whether individuals can be freed from current tasks and whether their participation will add more value to the firm than those tasks.
Identify a skilled leader.
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Working Styles
Quick Starter – highly energetic, sees an opportunity and quickly mobilises energy.
Fact Finder – very meticulous and oriented toward detail and analysis.
Follow-through – determined and focused on carrying out a task to its completion.
Implementer – very task oriented, with a particular penchant for hands on work.
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Requirements for Team Building
Common Goal – Successful teams possess a common goal
Leadership – Successful teams are led by well- respected managers who understand team dynamics
Communication – Open, constructive communication is fundamental to team success
Cooperation – Effective teams sometimes require compromise
Specific Roles – Team members understand their role and responsibilities
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Requirements for Team Building
Measurement – Clear and precise performance measures facilitate success
Individual Responsibility – Each member accountable for individual and team performance
Resources – Adequate resources/information is available
Time – Chemistry emerges as team members spend quality time working together
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Team Development Process
1.Forming – determines team membership.
2.Storming – establishes direction, purpose, roles, responsibilities, and rewards for both the overall team and each team member.
3.Norming – establishes team rules and procedures, helping teams to synchronise their activities.
4.Performing – identification of problems and opportunities, establishing a plan of attack, and then implementing the plan. A well-designed, well-trained team often finds that performing is the easiest part of the team process.
5.Adjourning – up-front definition of key milestones and a specific ending point in terms of outputs and a target completion date.
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Team Measurement Measurement drives behaviour
Teams require the correct balance between team based measures and individual measures.
Emphasising team outcomes can lead to social loafing and a loss of individual motivation.
Emphasising individual outcomes can undermine team performance.
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Establishing an Empowerment Culture
An empowerment culture precedes the creation of knowledge workers and the learning organisation.
Knowledge workers recognise opportunities, analyse problems, and proactively move to find creative solutions.
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Pathway to Empowerment
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Leadership – the 7 Rights
1. Get the right people
2. Communicate the right expectations
3. Provide the right training
4. Measure the right things
5. Reward the right behaviour
6. Support with the right resources
7. Give them the right opportunity (i.e., get out of the way).
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Goal Setting
Aggressive and systematic goal setting drives out complacency, helping to sustain momentum of an empowered workforce.
Failure cannot be punished, it must be used as a learning experience.
Managers must work with employees to facilitate goal attainment.
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Communication and Teamwork
Managers must communicate expectations, corrections, and praise.
Managers must recognise team members for their contributions toward overall success.
Recognition and empowerment increased motivation and commitment.
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ABCs of Empowerment
Affirmation – positive reinforcement to the workforce making them feel truly valued.
Belonging – employees must feel a sense of community and commitment.
Competence – the company must invest in employee capabilities throughout the organisation.
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Employee-Oriented Companies
Services for employees — e.g., a gym & health-related programs
Benefits & salaries suggest company cares about employees Company asks for employees opinions & input for decisions Treat each person as an individual
Employees understand their position & are knowledgeable Company continuously trains & updates skills of employees Employees are happy doing their job
Allowing employees to advance & grow in the organisation
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Employee-Oriented Companies
Meetings are more like town hall discussions Management is openly willing to receive feedback Trains employees beyond job requirements Company is generous with benefits
Fair level of pay — competitive level
Provides services to employees that are not job related Work space is clean, user friendly
Employees use updated equipment
Well run human resource department — easy access to services
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Employee Satisfaction Factors
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Employee Satisfaction Factors
Characteristic
Employee Perceptions of Characteristic
Compensation
Hallmark of a great company to work for. Workers want to be treated fairly and they regard a company’s financial package as the acid test of fairness. Great companies have learned to combine salary, bonuses, stock options, insurance programs, and the company retirement plan into a comprehensive package that communicates a concern for their employees’ well being.
Family Friendly
Need to make work fit within a holistic lifestyle. The goal is to balance work with personal and family needs. Companies are responding with an assortment of services and benefits including family counseling, savings bonds for children, college tuition grants, parental leaves, time off to attend parent- teacher conferences, and lactation rooms for new mothers.
Facilities
Well-designed workplace that is safe and aesthetically pleasing. Convenience of on-site childcare, on-site medical care, or on-site concierge services. Some companies offer massages, dry cleaning, travel services, and pet care. Employees also value access to exercise programs and fitness facilities.
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Employee Satisfaction Factors
Characteristic
Employee Perceptions of Characteristic
Accommodating Workplace
Flexibility is an important perk. Opportunity to schedule their own hours, shorter workweeks, telecommuting, and flexible-time programs all allow workers to balance work and family obligations. Paid vacations and opportunities to take time off without pay also provide for personal renewal.
Enabling Culture
Desire to work for an ethical company. Employees feel it is important to work for a company that promotes diversity, is environmentally sensitive, and is involved in the community. Paid time for charity or volunteer work is particularly attractive.
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