26 Jan 2021
Having a robust closed-loop planning system with reliable processes and reporting structure quickly helps organisations to identify and solve supply chain issues which may not become visible until it is too late.
In this blog, I share five potential - yet common - problems which tend to go unnoticed and then present themselves like a massive pimple on your forehead hours before you are about to hit the town for a night out.
Many of these surprises can be avoided by having in place consistent and non-conflicting performance indicators which are there to monitor the performance of your processes. Using these indicators is similar to the warning lights on your dashboard, when the engine management light or the low oil light comes on for example, this tells us there is something wrong with the vehicle’s system and we investigate the cause. The same approach applies for the performance indicators used to monitor your manufacturing processes.
Of course, just having the performance indicators in place doesn’t mean that they will be reviewed, which is why you also need a regular cadence for reviewing execution of your plans, along with associated performance. Some examples of how this would work are.
There are many more metrics you can measure beside these, but the main consideration is only measure what you are going to review and act on, do not measure for the sake of measuring. Looking for the failure points in your processes by using good measures and then fixing these is a sure-fire way to close the loop and reduce the number of surprises throughout your supply chain.
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