Vision— APICS Puget Sound Chapter is the leading source of professional development for the Washington State Supply Chain and Operations community.
Mission— Serve Supply Chain and Operations professionals and the business community through educational experiences that will add value to our members and business partners
APICS Puget Sound Chapter
40 Lake Bellevue, Suite 100
Connect with APICS Puget Sound on LinkedIn, Facebook, and Twitter
APICS-PS will be ending it fiscal year June 30, 2017, and therefore will have a election of officers for the Board of Directors. A nominating committee is in place and has selected candidates for the upcoming election. As a reminder, all APICS members (current membership ID + APICS-PS members) are eligible to vote for the positions of President, Vice-President, and Secretary. All other BOD positions are appointed 2-year assignments.
Currently, APICS-PS has a key initiative entitled, “Voice of the Customer,” underway. This initiative seeks to understand from both APICS members and non-members how this chapter can better serve the needs of both individuals and companies. Because of this initiative, we now have an active survey process in place the occurs after every event that is offered. Survey results have indicated that the quality content of both tours and Professional Development Meeting speakers has been very satisfactory. The recent lean tour of Qualtiel in Everett was rated overall as very satisfactory, and mention was made of the impressive Lean progress that we demonstrated. I encourage all readers of this newsletter to feel free to contact me with any ideas, needs, or comments of how APICS can provide service to you or your company.
As many of you are aware, the Legacy Certificated in Production and Inventory Management (CPIM) is being changed from 5-sections and 5-tests to just 2-Modules and 2- tests beginning in October 2017. It is worth noting here that if anyone currently has passed the BSCM test, this qualifies as having passed the Module I test in the new 2-Module CPIM certification. There will be one more Legacy BSCM class offered between June-October 2017, and the new Module II class will be offered in October 2017. So, is it realistic to Achieve the CPIM certification by January 2018, by completing these two tests.
The newest APICS certification, Certified in Logistics, Transportation & Distribution (CLTD) course is offered in May of 2017 and offers 40 hours of instruction (4 Saturdays in May, and 1 Saturday in June), that will prepare the participant for the certification test. Both the CLTD and the Certified Supply Chain Professional (CSCP) courses offer a comprehensive on-line learning system that offers a pre-test, quizzes for each section of the courseware, a post-test, and numerous Operations Management tools. People that have taken the 40 hours classes coupled with the on-line learning system have a high success rate of passing the certification test. If your job is in the area of logistics, transportation or distribution, the CLDT material will give you a visualization of the end to end supply chain.
Finally, Kocer Engineering & Consulting in partnership with APICS-PS is offering a 5 part Lean workshop beginning May 9th. This workshop will include principles from Lean, Theory of Constraints (TOC), and 6-sigma. This hands-on simulation workshop is necessary for anyone working in a company which has or is implementing Lean Manufacturing.
Click here for the HOME PAGE President's Update
APICS Puget Sound Chapter is a partner with APICS, a not-for-profit international educational organization respected throughout the world for its education and professional certification programs. With more than 70,000 individual and corporate members in 20,000 companies worldwide, APICS is dedicated to using education to improve the business bottom line.
Dennis Obermeier, MEM, CPIM, CIRM, CSCP, CLTD, PMP, Jonah
APICS Puget Sound – engaging the “Voice of the Customer”
As many of you have noticed by now, the APICS Puget Sound Board of Directors has recently initiated a “Voice of the Customer” project, as one means to better engage with the ‘customer’ (i.e. Members) and gain a better, more insightful understanding of how the Puget Sound local chapter can add greater value to the local membership.
This initiative was originally identified as an outcome from the 2016 creation of a first-ever Strategic Marketing Plan (well, or at least, a long, long time since the last one!) And as one of the critical, strategic ‘first steps’ identified in the Marketing Plan – was to get to know the customer, and what the customer’s needs might actually be.
This prioritization comes straight from the APICS Marketing Leadership handbook (i.e. the ‘playbook’), which provides the following guidance to local chapters, when developing a Marketing Plan:
“(Marketing) involves thoughtful analysis and a deep understanding of the environment in which you operate. An effective marketing effort first defines what the “market” (i.e. “customer”) looks like, which enables chapter leaders to better understand how to attract and retain members…”
And from our own APICS Operations nomenclature, comes this very straightforward APICS Dictionary definition of the “Voice of the Customer”:
“Customer descriptions in words for the functions and features customers desire for goods and services”
So basically – we want to hear from you! We want your descriptions, your words, your input and feedback for what a local chapter should look like to you.
And thus - over the past few weeks, and in the weeks still to come – we are reaching out to YOU, and providing as many opportunities as possible, for you to provide your input.
Some of the ways we are doing that: an All-Member satisfaction survey, a Board of Directors roundtable, 1:1 dialogue with company membership representatives, follow-up surveys after Tours, PDMs, etc…, and a few things still to come.
We have already received some amazing feedback, that will most definitely shape and guide what the Puget Sound chapter looks like going forward. And we look forward to even more ideas – and then acting on those ideas – for the benefit of all our local membership.
Thanks for your support, involvement and membership!
Operations Strategy and Implementation Advisor
When three Western students won a prestigious case competition, were awarded $600 for the effort, and then decided to take this money and pay it forward by donating it to WWU APICS (their student professional organization), it might be considered extraordinary. But for these three, it was only the beginning of an amazing example of the power and reach of seemingly small, positive actions.
Business strategic partners, companies and managers in the MSCM/OPS network, and anyone that would like to honor and encourage acts of giving back and philanthropy from young professionals - please join us by making a contribution. Any amount helps. All donations are tax deductible (WWU Foundation is a 501(c)3) and are eligible for corporate matches if your organization offers this benefit. Thank you!!
APICS CERTIFIED SUPPLY CHAIN PROFESSIONAL (CSCP)
5 all day classes! Dates - 5 Saturdays in April
*Check our website for next scheduled CSCP Course offerings: Check Here
The APICS CSCP program helps you demonstrate your knowledge and organizational skills for developing more streamlined operations.
Since its launch in 2006, more than 19,000 professionals in 82 countries have earned the APICS CSCP designation.
The APICS CSCP designation
Only one comprehensive exam is required to pass and earn your CSCP certification designation.
APICS CERTIFIED PRODUCTION INVENTORY MANAGEMENT (CPIM)
The APICS Certified in Production and Inventory Management (CPIM) program provides you with the ability to understand and evaluate production and inventory activities within a company's global operations.
CPIM Course Upcoming:
*Check our website for next scheduled CPIM Course offerings Check Here
APICS CERTIFIED IN LOGISTICS, TRANSPORTATION, AND DISTRIBUTION (CLTD)
Lean Six Sigma TOC Training Series
5 Sessions 4 hrs each from 7.30am to 11.30am | Team-Oriented, Interactive
"Certification" will be recieved by each participant upon completion.
Learning by Doing! Application "Hands On" Classroom Enviroment.
May 09, 2017
7:30 AM - 11:30 AM
CenterPoint Corporate Park
05/09 Lean Interactive Simulation Workshop | 05/23 Work Area Org. 6s & Setup Reduction, TOC | 06/06 Process Mapping & Elimination of Waste | 06/20 Continuous Improvement, Toyota Kata & Kaizen | 06/29 Problem Solving and Desicion Making
*Check our APICS Puget Sound for scheduled date in MEETING/EVENT INFORMATION to reserve your spot.
Dan Kocer, PE
APICS Director of Events, and President of Kocer Consulting+Engineering
I’m sure you have some stories about ERP implementations and lost inventory, inability to ship, invoices that won’t generate, long days, late nights, aggravations, and bosses that might not be patient or understanding . . . and months or years spent preparing for the pleasure or horror of “go-live”.
Post implementation, the typical story is getting the new system functional, then improved until the new system is just like the old system. A lot of effort from a lot of people, but not necessarily a lot of improvements.
And after all that effort, it is typical that you still have to do work-arounds, or perhaps data dumps into excel so you can calculate your actual business worth because you can’t get what you need from your business system.
What problems do you have with your ERP system? How are you dealing with whatever makes your production processes unique? How are you satisfying a unique customer demand? Are there new regulatory requirements you are struggling to meet? BOM change management? NPI and forecasting process?
20-some years ago, in an APICS class, the instructor shared that on average companies do an ERP implementation every 5 years. I didn’t believe it, and yet over the years I’ve participated in 4 implementations, and currently looking to upgrade a current ERP system to a new version, but on a new platform so validation will be needed.
I truly believe if you are not busy with an implementation, you should be working to make sure you are getting all you can out of your system. What are your work-arounds? How do you systemize and fool-proof? What gaps need bridged?
Would you like to be involved with a group of people who would like to share how they have used their ERP system to solve MRP or Logistics problems, or who have problems and are looking for possible solutions? Interested? If so, contact me at ERP.MRP.and.Logistics@gmail.com and let me know what your interests are, and part of the Seattle Metro (or elsewhere) area you are in. For those responding, we could set a meeting up at a Starbucks, at a local business, or via Skype.
I am very excited to hook up with like-minded folks, drop me a line if you are interested!
Nancy Miller, CPIM, CSCP
Director of Finance, APICS Puget Sound Chapter
Some customer value propositions (CVP) utilize radical innovation with new technologies supported by strategies of business models, organizational, and supply chain along with cross-functions to achieve desired business goals. For the competitive model of CVP, profit formula, key resources, and key processes (Johnson, Christensen, & Kagermann, 2008) to be successful amidst dealing with complexities within environment operate and answer the voice of the customer (VOC), requires business strategy and organizational alignment of supply chain (and other business functions) to execute results (CSCP APICS, 2016).
Amazon, recently was granted a patent for on demand manufacturing of clothing (Aminpour, et al., 2017), "By aggregating orders from various geographic locations and coordinating apparel assembly processes on a large scale, the networked environment provides new ways to increase efficiency in apparel manufacturing" (Gupta, 2017; Rey, 2017; Sharma, 2017). While data and system automation will aide decision making and flow; even so, risks still exists amongst the execution of strategies and tactics needing to be tackled include sales and operations (S&OP) alignment, integration, reliability and agility responsiveness of business functions to deliver inventory just-in-time (JIT) as demonstrated by fashion brands, such as H&M and Zara, succeed with differentiation and timely speed to market.
Amazon answering the VOC implementing this new clothing manufacturing patent will be incorporating a business model with extreme high level of networks of complexity. This will require innovations of cross-functional integration, resiliency, responsiveness, adaptive and intelligent operations, supply chains, and logistics. Alignment of management enabling flow will be critical as identified by Supply Chain Operations Reference (SCOR) Model of six primary processes of Plan, Source, Make, Deliver, Return, and Enable (APICS Supply Chain Council, 2015). As driven by velocity of "all benefits are directly proportionate to the speed of flow of RELEVANT information and materials" (Smith & Smith, 2013; Smith, Ptak, & Ling, 2017) meeting customer demand with large scale mass customization, once the customer places the order.
For Amazon to be successful responding to demands of VOC within this competitive environment, will require systemic thinking, strategic innovation, focusing on constraints for leverage point solutions along with the right supply chain strategy design and execution. As APICS CEO, Eshkenazi (2014) asserted the need to utilize and continuously develop capabilities beyond innovation of new product or supply chain strategy to incorporate ability to implement for competitive advantage. Citing Deloitte’s Marchese and Liam, “Business model innovations can have much greater impacts for supply chains in areas such as reinventing networks, processes, services, and channels”.
New business model innovations managing complexity with responsiveness to customer base demand, working capital, and contribution margin amidst complex system relies on coherence and alignment of purpose of all its parts for success, as noted by Smith, Ptak, and Ling (2017). Amazon in this complex business case where relevantly parts are applied can gain additional benefits from industry implemented applications such as the "Demand Driven Adaptive Enterprise Model" (DDAE). The DDAE Model "spans the operational, tactical and strategic ranges of an organization allowing it to continuously and successfully adapt to the complex and volatile market conditions we see today. It combines the fundamental principle flow management with the emerging new sciences of complex adaptive systems (CAS). DDAE is the way that successful businesses will work in the 21st Century" (Smith et al., 2017).
Developing requisite strategic capabilities of business systems resources being value-added is offered in what APICS Overview (APICS, 2017) represents as, “We develop people, people improve supply chains, supply chains improve companies and the whole world economy benefits. Together with our members, partners and customers, we are united in our commitment to global supply chain excellence, innovation and resilience—achieved one person and one supply chain at a time”.
Amazon seems to be doing a lot of things right entering this new business model manufacturing clothing journey, aided with innovative technical know-how, having previously established relevant value creation resource capabilities and channels needed to be in place. Critical industry challenges and tests will persist within this business ecosystem clothing venture is grasping expansion of CVP and the job to be done (Johnson et al., 2008) on an aggregate to individual customized levels analysis, explored and examined with the "networks of actors that weave in and out of national borders as well as micro-, meso-, and macro-levels of interaction and analysis" (Kaartemo, Akaka, & Vargo, 2017).
While delivering along this demand driven road their customers will be hiring Amazon to fulfill, necessitates need for market responsiveness and undertake continually developing requisite “Supply Chain Leadership for Business Success” (Eshkenazi, 2014). In order for these leaders to contribute to Amazon's success, an ever emerging drive to compel developing sustainability of systems alignment, coherence, agility, and reliability to answer VOC demand, while following through as noted by Eshkenazi (2014) with engaging in strategies for recognition of innovations importance, adopting disruptive technologies early, and using analytics extensively will contribute to higher revenue growth than industry average, as found by 79 percent of businesses with superior supply chain value capture capabilities.
Aminpour, S. R., Barnet, A. T., Liang, N. Y., Alexander, A. N., Wilson, J. R., & Mata, J. G. (2017). U.S. Patent No. 9,623,578. Washington, DC: U.S. Patent and Trademark Office. Retrievied from http://patft.uspto.gov/netacgi/nph-Parser?Sect2=PTO1&Sect2=HITOFF&p=1&u=/netahtml/PTO/search-bool.html&r=1&f=G&l=50&d=PALL&RefSrch=yes&Query=PN/9623578
APICS. (2017). APICS Overview. Retrieved from http://www.apics.org/about/overview
APICS Supply Chain Council. (2015). SCOR: Supply Chain Operations Reference Model: Quick Reference Guide, Version 11.0. Retrieved from http://www.apics.org/docs/default-source/scc-non-research/apicsscc_scor_quick_reference_guide.pdf
CSCP APICS. (2016). CSCP APICS Exam Study Guide Manuals. Retrieved from http://www.learncscp.com/course-components/
Eshkenazi, A. (2014). Supply Chain Leadership for Business Success. Retrieved from http://www.apics.org/apics-for-individuals/apics-magazine-home/magazine-detail-page/2014/04/18/supply-chain-leadership-for-business-success
Gupta, R. (2017). Amazon.com, Inc. (NASDAQ:AMZN) Awarded Patent for New On-Demand Cloting. Retrieved from https://www.libraryforsmartinvestors.com/2017/04/amazon-com-inc-nasdaqamzn-awarded-patent-new-demand-clothing/41370794.htm
Johnson, M. W., Christensen, C. W., & Kagermann, H. (2008). "Reinventing your business model." Harvard Business Review 86(12): 57-68. Retrieved from https://scholar.google.com/scholar?hl=en&q=Reinventing+your+business+model&btnG=&as_sdt=1%2C48&as_sdtp=
Kaartemo, V., Akaka, M. A., & Vargo, S. L. (2017). A Service-Ecosystem Perspective on Value Creation: Implications for International Business. Value Creation in International Business, Springer: 131-149. Retrieved from https://www.researchgate.net/profile/Valtteri_Kaartemo/publication/309759209_A_Service-Ecosystem_Perspective_on_Value_Creation_Implications_for_International_Business/links/5829ce5508ae004f74adf7ee.pdf
Rey, J. D. (2017). Amazon won a patent for an on-demand clothing manufacturing warehouse. Retrieved from https://www.recode.net/2017/4/18/15338984/amazon-on-demand-clothing-apparel-manufacturing-patent-warehouse-3d
Sharma, R. (2017). Amazon Wins Patent for On-Demand Clothes Manufacturing (AMZN). Retrieved from http://www.investopedia.com/news/amazon-wins-patent-ondemand-clothes-manufacturing-amzn/#ixzz4exwJdgmY
Smith, C., Ptak, C., & Ling, D. (2017). The Demand Driven Adaptive Enterprise Model: The Case for a New System of Enterprise Management. Retrieved from http://media.wix.com/ugd/af37d3_208120e93be24f78a30881306faee7e4.pdf
Smith, D. and Smith, C.(2013). Demand Driven Performance: Using Smart Metrics, McGraw Hill Professional.
Richard Lefrandt, DBA (ABD), MEM, CSCP, PMP, Jonah
APICS: What’s In It For Me?
Take a moment and check out the APICS Programs CSCP, CPIM, CLTD, and SCOR to find out best fit(s) for enhancing your career and improving your companies bottom-line.
For Instructor Led APICS Certification Course Offerings by APICS Puget Sound Chapter Check Here
World-Renowed APICS Programs:
Make or Buy? What About Transfer Price? It Depends.
By Hank “It Depends” Barr, CFPIM, CSCP, CLTD
We wrap up Hank’s first article on Cost Management by comparing Make or Buy profit opportunities between bottleneck and non-bottleneck operations.
Scenario: Cost accounting has determined overhead at all departments to be $140/hour. One end item gets sold every day, generating $6,000,000 in profit.
Now consider the following “opportunity” to sell a component product to a customer for $300. You can make the product for $100 in materials using 3 hours of labor but you need to use the constrained (bottleneck) resource to produce it. Or, you can outsource it for a mere $200. What should you do?
If using the bottleneck resource, you should “Buy it” because 3 hours of work on the constraint costs the organization approximately $750,100 of throughput ($6,000,000 / 24 hours = $250,000 / hr X 3 hours plus $100 of materials), not merely the $520 estimated by traditional cost accounting methods.
Again, if you have unused (non-pacesetter, extra, excess, protective) capacity already in-house, then use it to make things that will sell. The incremental cost will probably only be materials and the result in the case of a sale will be more revenue (contribution to overhead and profit) than the cost of those materials. In the case of an internal transfer, the result will be better utilization of your fixed assets and better return on total investment. (Incidentally, I hope you do have extra or protective capacity in-house, but that’s another article!)
- Assignments of most costs to time periods or events are arbitrary (even if in accordance with GAAP and IRS) and became relatively fixed at the time when you acquired the resource or asset (land, buildings, machinery, information systems, people’s services, etc.).
- Know where your revenue flow bottleneck is.
- Marginal cash flow cost at the non-bottleneck is usually only materials.
- A transfer is not a sale (even if your software labels it as such) and does not generate real profit.
- Using your non-bottleneck capacity to generate income from sales (not transfers) will generate cash flow and profits for you.
Hank Barr, CFPIM, CSCP is the Director of Education for the Puget Sound chapter of APICS and a retired Air Force Supply & Logistics officer. He is an active speaker and has taught Operations Management at several universities in the Pacific Northwest. Hank can be reached at HANKBARR@COMCAST.NET or 253 549-5035.
March 21, 10:30 -12:45 2017 Everett, WA
Qualitel - Presentation, Lunch and Site Tour of Qualitel Business and Operations
Sponsored by Qualitel, Kocer Consulting+ Engineering, and APICS Puget Sound
"Thanks again to Qualitel personnel for the great tour, and a special thanks to Roger Nelson for setting it up and giving a great presentation. It is truly amazing how a company can meet the stringent needs of the aerospace, medical, and government sectors and maintain high morale and retention".
Qualitel is a contract manufacturer of mission-critical electronics, specializing in a full range of high-mix, low-volume, and high-reliability products and services. Qualitel manufactures electronics with complex Surface Mount Technology (SMT), Ball Grid Array, and Fine Pitch Technology for the aerospace, medical and life sciences, industrial, and military markets.
Along with an overview presentation about Qualitel products, history, culture and direction, on this tour, attendees were able to see:
• Manufacturing for medical, aerospace, military and industrial in one building
• Lean manufacturing
• FDA and ITAR registered facility
• State-of-the-art automation
• Extensive engineering, manufacturing and logistical services
• A culture of quality and service
Dan Kocer, PE
President of Kocer Consulting + Engineering, and Board Member for APICS Puget Sound
Update From your Director of Membership –
Greetings from your director of membership! It’s been a pleasure serving you this past year, but in all honesty – I feel I haven’t given you all you deserve. As you can imagine, it’s difficult to balance work, family, and volunteering. As our president mentions in his report, we have taken on a new initiative called The Voice Of the Customer (VOC). Our hope is to identify your needs as members of APICS-PS and how we can better serve you.
One option we’ve discussed (in addition to our PDM’s and shop tours) are having quarterly networking gatherings, and others are to bring attention to our members that achieve one of the APICS certifications, in a more timely manner of course… I would also like to know what you would like to see from your chapter volunteer leaders. If you have an opinion to share, or a suggestion for us to consider, email me at: firstname.lastname@example.org.
Student Chapter updates:
WWU: I would like to recognize and extend WWU members congratulations. APICS-PS is encouraged by the accomplishments within the supply chain community we support. The Viking Fund (see link in Recognition section) provides an opportunity to partner in strengthen capabilities of those entering supply chain careers, making positive contribution to incoming enterprise work force.
CWU: I recently met with their faculty leadership. We have plans to continue to grow and be more involved with this chapter.
UW: While no official Student Chapter currently exists, they do have a Supply Chain Club that participates in regional competitions. We have begun conversations to see how we can be more involved.
The students from all these chapters are always on the lookout for mentors and/or internship opportunities. If you are interested in supporting them in any capacity – let me know!
Join me in congratulating the following members that have achieved certification in the last 6 months:
Tom Zistatsis, CPIM
Download the free APICS Learn It app to access more than 4,500 terms and definitions from the APICS Dictionary, view the term of the day, and improve your APICS vocabulary with a game of flashcards.
• Over 4,500 terms and definitions from the APICS Dictionary
This useful app is available Free for Smart Phones or Google Store.
This app allows the user to search for any term in the APICS Dictionary and then displays the definition. The Term of the Day can be selected, which displays the full definition.
When the Flashcard option is selected, a category, such as Basics of Supply Chain Management, can be selected. A number of flashcards can be selected and then the choice of picking the term first or the definition first is offered. If the term first is selected, the user is asked if the definition is correct or incorrect. At the conclusion of the exercise, a score is given.
If the definition is asked first, the term is then displayed with the option of selecting correct or incorrect. Again a score is given at the end of the number of questions selected.
This App is useful when preparing for any of the CPIM or CSCP tests. It can be a real asset when taking practice test questions and coming across a term that is not fully understood.
This App can also be useful in the work place when there is a need to clarify a term being used in the Operations Management Body of Knowledge.
APICS 2017 Conferences and Events
Attend an APICS Event
Make this the year you expand your knowledge and help improve overall supply chain operations. APICS offers end-to-end supply chain, logistics and operations management conferences, seminars and events to help you advance your career and your company’s performance.
Make your plans to be at the end-to-end supply chain conference of the year—APICS 2017!
APICS 2017 is the conference for professionals from all sides of the value chain, where you’ll gain relevant knowledge, foster relationships, explore trends, debate challenges and heighten efficiency. You and 2,000 professionals from more than 50 countries will experience a world-class education program that will take your career and your organization’s supply chain to new heights. Don’t miss it!
APICS is the premier professional association for supply chain and operations management