4P Model of The Toyota Way

Berawal dari buku yg baru diberikan ke saya oleh seorang senior manager ditempat saya bekerja saat ini, The Toyota Way, memuat tentang model 4P yang menjadi dasar dari sebuah Tag yang kita sering dengar “THE TOYOTA WAY”.
Apa saja ke-P tersebut? berikut saya coba salin dari buku untuk saling berbagi kepada pembaca blog ini.

- Philosophy
Di tingkat paling fundamental, para pemimpin Toyota melihat perusahaan sebagai sebuah sarana untuk memberi nilai tambah bagi pelanggan, masyarakat, komunitas dan juga karyawannya. Ini bukan omong kosong politik yang naif. Ini nyata. Ini dapat ditelusuri kembali pada diri pendiri perusahaan, Sakichi Toyoda, dan keinginannya untuk menemukan mesin pintal guna membuat hidup menjadi lebih mudah bagi para wanita di komunitas pedesaan tempat ia dibesarkan. Hal ini terus berlangsung ketika Sakichi meminta anaknya, Kichiro Toyoda, untuk memberikan kontribusinya sendiri kepada dunia dengan memulai sebuah perusahaan mobil. Hal ini berbekas pada diri semua pemimpin Toyota saat ini dan menjadi fondasi bagi semua prinsip lain.
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PROSES YANG BENAR AKAN MENGHASILKAN HASIL YANG BENAR

“Process flow” berarti mengurangi, hingga menjadi nol, waktu yang terbuang di mana proyek kerja tidak berjalan, menunggu seseorang untuk mengerjakannya. Merancang ulang proses yang mengalir pada umumnya akan menghasilkan produk atau proyek yang diselesaikan dalam waktu sepersepuluh dari waktu sebelumnya.
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HISTORY OF PROCUREMENT

History

Prior to 1900, purchasing was recognized as an independent function by many railroad organizations, but not in most other industries.

Prior to World War I, purchasing was regarded as primarily clerical.

During World War I & II – The function increased due to the importance of obtaining raw materials, supplies, and services needed to keep the factories and mines operating.

1950s & 1960s – Purchasing continued to gain stature as the techniques for performing the function became more refined and as the number of trained professionals increased. The emphasis became more managerial. With introduction of major public bodies and intergovernmental organizations, such as United Nations, procurement becomes a well-recognized science.

1970s & 1980s – More emphasis was placed on purchasing strategy as the ability to obtain needed items from suppliers at realistic prices increased.

1983 – In September 1983, Harvard Business Review published a ground-breaking article by Peter Kraljic on purchasing strategy that is widely cited today as the beginning of the transformation of the function from “purchasing,” something that is viewed as highly tactical to procurement or supply management, something that is viewed as very strategic to the business.

1990s – Procurement starts to become more integrated into the overall corporate strategy and a broad-based transformation of the business function is ignited, fueled strongly by the development of supply management software solutions which help automate the source-to-settle process.

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Sourcing Strategies & Procurement Processes

connect

Connectivity

Not long ago, purchase function was seen to be a desk job, monotonous paper work, dull and passive and more of an administrative function. The purchase managements were the fall guys whose only aim was to keep feeding shop floor and avoiding stock out situation.

Today the situation has changed totally. Procurement function is considered to be a strategic initiative and seen to be adding value to entire business process. Profile of the procurement managers has changed and expectations from these managers are different.

Modern day procurement managers manage procurement and sourcing function both at strategic and operational levels. They are proactively engaged in building supplier networks, estimating, controlling and reducing costs besides performing other functions and ensuring service levels. Their job functions are increasing becoming cross functional together with supply chain and manufacturing functions.

Procurement process and paper work is today managed by the ERP systems which drive the procurement business process.

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Inventory Classification – ABC Classification, Advantages & Disadvantages

Aenergy-classification-symbolBC Classification

Inventory in any organization can run in thousands of part numbers or classifications and millions of part numbers in quantity. Therefore inventory is required to be classified with some logic to be able to manage the same.

In most of the organizations inventory is categorized according to ABC Classification Method, which is based on pareto principle. Here the inventory is classified based on the value of the units. The principle applied here is based on 80/20 principles. Accordingly the classification can be as under:

A Category Items Comprise 20% of SKU & Contribute to 80% of $ spend. B Category Items Comprise 30% of SKU & Contribute to 15% of $ spend. C Category Items Comprise 50% of SKU & Contribute to 5% of $ spend.

The above is only an illustration and the actual numbers as well as percentages can vary.

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