- Analysis – Pers Dev
- Analysis – Supply Chain
- Curriculum Vitae (CV)
- Idea Basket
- Lessons Learned
- Other Topics
- Personal Development
- Supply Chain
In order to be well planned tomorrow, today and yesterday must be properly and well reported. The KPI (Key Performance Indicators) system is not sufficiently valued by procurement units. The instant situation is reported from the system and it is observed that it is possible to see the current situation, to check it according to it and then to act on it. This system has insufficient and incomplete aspects.
The concentration of high budget buyers is generally based on personal preferences rather than on a system. The inclusion of this (such as the ABC Analysis) in the system will be of great benefit in terms of using time efficiently and focusing on the right suppliers.
Key Performance Indicator Reports are comparable reports that translate information into goals, include targets, approach, and tendency to the target, provide micro-macrostructures to see macro-microstructures, provide performance motivation, inform about what we do not know and/or do not realize.
It enables automatic Key Performance Indicators to be automated as long as they can be reported as needed, not for a long period of time at the end of the term, and provides immediate control (both in terms of computer technology and presentation stability).
Of course, KPIs do not have to cover everything. Simple and effective.
Since KPIs are also projections of the strategy, they should show a common goal with other groups. For example, the purchasing department would like to keep the minimum stock amount excess, but the cost control unit wants the minimum stock amount to be at a minimum to keep the expenses to a minimum. By combining these two goals, it will be of great benefit to establish a KPI system that will reduce the cost of holding stock and at the same time ensure that the goods are at stake.
A simple and understandable KPI system with a targeted, measurable and achievable target from the value will positively affect the procurement unit. For example, the appearance of several designated target displays in the work environment will affect motivation and performance positively.
Sample KPI titles and objectives;
- Percentage of purchases based on supplier classes (Preferred, approved, etc.)
- What kind of companies are mostly working with
- Open order amount per period
- Seller performance
- Amount of pending waiting for the period, total periodical receiving rate
- Increase cash flow contribution
- The period-based stock amount, total periodical receiving rate,
- Increase cash flow contribution
- Order response time
- Seller response performance
- Delivered on the agreed date
- Supplier performance delivery performance
- Purchase amount per product group
- Which groups will be given more importance
- Number of active suppliers per period
- Minimum stock amount per product group
- Stoke holding cost performance
- Number of suppliers evaluated on a periodic basis
- The attention of the purchasing department to the evaluation
- Supplier performance trend chart
- Control of the progress of the scores of the suppliers according to the seasonal curve
The quality control units are the backbone of the companies together with the human resources unit on the formation of company culture.
Central and site inspections are usually carried out by quality control inspectors who do not have experience with purchasing. The purchasing unit, which has undergone several checks, can know the questions that may arise and/or can bend the answers.
In addition to checking compliance with procedures, such audits need to go through as well as buying ideas. Procedures should be updated at specific times because time is changing and new logic and ideas are emerging. Experiences in purchasing units and the central quality control group should be shared during these inspections to determine what can be improved and treatment. Without rhythmic development, the company can not make profits.
The lessons learned need to be written during these inspections, not at the end of the construction site. That is why the root cause of the problem can be understood when the system is more alive, the problem can be understood completely, the chaining effects can be calculated, can be understood why so far a solution could not find and some solutions can be tried. The lessons learned at the end of the project are not lessons because there is no lesson in the real sense as the chaining effects of a system that is not currently alive can not be accounted for. Applying learned lessons that not go down roots, is not a solution, just a move. Rapid resolution of problems that are not fully understood due to the root causes negative chain effects in the long run. It is necessary to ask a minimum of “5 Questions Why” for each problem and do this while the system is still alive.
Washington D.C. The Jefferson Memorial event in “Why Ask Five Times” is a nice example (http://www.ideachampions.com/weblogs/archives/2011/05/some_years_ago.shtml) (Marcum, 2004);
US Department of Parks and Monuments Washington D.C. About the Jefferson Memorial, the problem of stone wear. Because of the weary stones, the maintenance staff was wasting time, the tourists coming to the region were disturbed by a neglected view, and both the complaints and the maintenance costs were increasing.
Other monuments built in the same period were in a healthy state. Authorities began asking questions;
- Why the question => Why is this monument more worn, even though it was built in the same period as other monuments in the nearby area?
- Excessive cleaning materials used due to pigeon decay
- Why is the question => Why do pigeons come to this monument more than other monuments?
- Highly intensive spider population
- Cause question => What is the reason why the spider population is intense?
- Propeller drive
- Why the question => What is the reason for the propeller drive?
- Due to the DNA, they come in a swarm at sunset,
- Why question => If we open the lights a few hours later, will the problem be solved?
In the end, the problem is solved by adding 2 additional hours of lighting, without additional material/equipment and the addition of staff. As a result, the cost of cleaning supplies and cleaning personnel falls.
This valuable information that is accumulated in the center needs to be shared with employees in all purchasing units. All learned lessons can be arranged into topics within a separate main menu within the ERP system. Easy accessibility under the hand creates curiosity and is read by users occasionally. This, in turn, leads to the creation of accurate perspectives on the future by taking lessons from the past.
Procedures and learning lessons are included in the program of adaptation to newcomers to work, and it is necessary for the current working friends to be taught at regular intervals and their ideas have taken.
It would be very helpful to have a central inspection unit in the central quality control unit or to have a period of experience in a different type of project (energy, construction, etc.) with intensive purchasing. As mentioned above, the point of view should not only be the control of the system but also the form of development. In addition, procurement units in projects should be informed about this point of view.
- Marcum, D. (2004). İşGüdü. (Osman Deniztekin, Çev.) İstanbul, Türkiye: Varlık Yayınları.