barcode using vb.net Core Discipline 3: Design Your Organization for Performance in Software

Creation ECC200 in Software Core Discipline 3: Design Your Organization for Performance

CHAPTER 3 Core Discipline 3: Design Your Organization for Performance
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tor responsible for each of the core plan, source, make, deliver, and return processes and a well-qualified set of individuals within each group. The skills within the organization reflected the company s strategic imperatives: a demand-management process that could react quickly to current market conditions, a supply base that could provide palmOne with the best value in the materials and services it procures, and ongoing improvements in cost-effectiveness, quality, and customer service. palmOne s approach is a good example of how to establish the importance of your supply chain organization to ensure that it gets the resources it needs. The best way to gain support and respect for the supply chain as a strategic asset is to prove that it already is one. Simply put, results talk.
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Focus on the Skills You Need
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Clearly, balancing the competencies you need with the competencies you have is Clearly, balancing critical to executing your strategy. But what the competencies happens when the demand for skills outstrips the supply Should you change the you need with the structure of your organization, change your competencies you strategy, or accept the imbalance Common sense tells us that compa- have is critical to nies with well-trained, knowledgeable people can operate more efficiently, seize executing your market opportunities more readily, and strategy. weather economic downturns more effectively. And despite claims to the contrary, state-of-the-art systems and tools that support supply chain management are no replacement for human beings. Although they provide a degree of decision support that was not possible even a few years ago, these systems demand sophisticated users. In fact, today s new knowledge economy requires a new type of supply chain professional one who can quickly assimilate volumes of information and use it to make sound decisions. In effect, the bar has been raised, not lowered.12 Simply put, behind every world-class supply chain are world-class people. The same total cost of ownership principles that apply to your material assets also apply to your human assets. Procter & Gamble (P&G) is a case in point. P&G built an organization that merges manufacturing, engineering, purchasing, and customer service.13 The company sees these functions as an integrated system whose principal purpose is to move materials from suppliers to customers while adding value along the way.
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Strategic Supply Chain Management
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P&G hires highly qualified, flexible people and pays them well, reasoning that it will get more for its money than by hiring lower-cost people with limited skills and higher turnover. In short, a more expensive workforce provides a lower total cost of ownership. New technologies such as the Internet are transforming traditional business funcAs you design your tions. But it s important to remember, as you design your organization, that techorganization, keep nologies don t deliver success people do. in mind that To get the most out of new technology, you ll want to find and develop people who technologies don t understand how to leverage it to improve deliver success operations and the performance of such routine activities as purchasing, customer people do. service, and logistics management. Advanced Fibre Communications, Inc. (AFC), understands this well. The Petaluma, California based telecommunications equipment manufacturer is the leading provider of broadband access solutions for the global telecommunications industry. And, although AFC had enjoyed eight years of steady growth, it still operated like a startup when Jeff Rosen joined the company in 2000 as vice president of operations. The organization was set up to be effective in a startup mode, explains Rosen, but the processes in place were increasingly strained. Everything was done manually, and there was no focus on building processes and systems that would allow the company to scale. 14 AFC s focus on tactics and day-to-day execution was wholly consistent with the company s strategy for many years. However, the market was changing, the strategy was changing, and the supply chain had to adapt to new business imperatives immediate product availability, high service levels, and higher product margins. Rosen knew that he had to upgrade his organization and the systems used for supply chain planning and execution. He also knew, though, that he had to prove himself before he could get approval to make broad changes to his team. Thus he developed a plan to get some wins and put something on the table to get attention. His first efforts targeted the procurement group, where he replaced some people with more experienced commodity managers. These new hires were tasked with building cost models for key materials, restructuring the supply base, and negotiating with existing vendors to secure better pricing. Rosen avoided making very senior hires. Reasonably experienced was fine for what we needed, he explained.
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