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- Push System
What is a Thrust System? Push System, also called production to stock, is the concept of stocking products based on demand forecasts. It is largely the opposite of Pull System. Production of Push System to American type stock, Pull System< We can think of /a> as Japanese type production to order. Stages of Propulsion System Propulsion System stages are as follows; Demand Forecast: Future orders are estimated based on data such as past orders, current conjuncture and market trends. Production Planning: According to the demand forecasts, it is planned which product will be produced, with what priority and in what quantity. Storage: Produced products are distributed in appropriate quantities to appropriate regions, based on the initial demand analysis. Stock tracking and Reporting: In order to evaluate the Push System Effectiveness, data is regularly collected from every stage of the process and reported in detail. Continuous Improvement: Revisions that need to be made based on the data collected are discussed with all stakeholders and necessary tactical and strategic revisions are made. Push System and Pull System Comparison Since there cannot be a single truth at this point, it would be correct to decide according to the comparison table below. Related articles Pull System Kanban Card Order Cycle Time< /a> Lead Time / Delivery Time Why and How to use the Material Code? JIT - Just-In-Time JIC - Just In Case JIS – Just In Sequence EOQ - Economic Order Quantity EOS - Economy of Scale Economy of Scope Minimum Stock Consignment Stock Safety Stock StopGap / Temporary Measure ROP - ReOrder Point / Order Trigger Point VMI - Vendor Managed Inventory / Supplier Managed Inventory Bullwhip Effect (Whiplash, Whipsaw) Beer Game / Beer Distribution Game Kaizen - Always For Good Photos Cover photo: https://www.linkedin.com/pulse/s4-hana-ppds- push-vs-pull-manufacturing-which-best-you-o%C4%9Fuz-%C3%A7i%C3%A7ek/
- The Madmen Who Took Over the Mental Hospital: The story of Carlos Ghosn
Continue the story In this article, we will continue the life story of Carlos Ghosn, one of the most successful CEOs in the world. You can access the first part of the story from the link below; Carlos Ghosn, Man of Plans and Goals The Crazy People Who Take Over the Mental Hospital... Renault & Nissan & Successful CEO of Mitsubishi Alliance, Carlos Ghosn, is detained in Japan on November 19, 2018. Carlos Ghosn, who was 65 years old at the time, lost his confidence in Japanese justice after a while and believed that he would end his life innocently in Japanese prisons. Carlos Ghosn, who was making preparations for the merger of Nissan under Renault, became the victim of a plan initiated months ago by Nissan, which did not want this union, and his life changed irreversibly. Although he himself had major mistakes in the process, this process would not benefit any of the parties. Carlos Ghosn Side - Root Cause: Discomfort About His Income Although Carlos Ghosn was the highest-paid person in Japan, he saw that he was paid much less when comparing himself with the world's leading automakers. Because Ghosn was trying to make Nissan a large company not only in Japan, but worldwide. And he was quite successful in this, as everyone admitted. In Ghosn's words, it was not easily acceptable for a large company in a prideful country like Japan to have a foreigner come and save them. They did this not willingly, but out of necessity. Although Carlos Ghosn received an offer from GM, he did not find it right to leave Nissan, which was struggling with serious problems, and had to reject the offer. Ghosn had brought the Alliance to such a point that Renault & Nissan & As if the Mitsubishi partnership was not enough, he dreamed of adding Fiat Chrysler to this Alliance and being at the head of an Alliance where 14+ million vehicles are produced annually. Being a kind of Global CEO... But despite this, the fact that he was not paid as much as the CEOs who managed a single company around the world and managed a much more complex structure than them was wearing him out. Ghosn's financial sources of income Chairman of Nissan Chairman and CEO of Renault Chairman of Mitsubishi Thus, his annual income reached 10-15 million dollars. As such, he was the highest-paid person in Japan. But he was low compared to other CEOs in the Fortune 500. Carlos Ghosn constantly argued that the salary he received was low. Alliance members were also afraid of Ghosn's criticism and worried that Ghosn could leave his post at any time. Alliance members were trying to make Ghosn happy by compensating for his criticism from different areas. At this point, Greg Kelly's role is thought to be [#20]. Ghosn sought to be the biggest and the best. And that was the beginning of the end. Root Reason on Nissan Side: Transformation of Alliance into Merger Although French State's share [SO1] Although Nissan's share is the same, The law enacted in 2015[SO2 Although ] gave 2 voting rights to the French State, Nissan did not have any voting rights. According to Ghosn, the first discomfort on Nissan's side started at this point. By 2018, Nissan, realizing that Renault would now evolve into Merger, believed that the way to prevent this was to get rid of Ghosn. They are trying to prevent the Alliance from falling into Merger, including the last day when Carlos Ghosn was captured, but when they realize that they are at a point of no return, they are forced to take action through Ghosn. Power Poisoning and Change in Carlos Ghosn Carlos Ghosn began to experience changes in different areas over time, from his clothing to his family. He seemed to have some kind of power poisoning. Carlos Ghosn remained at the head of this union for so long that he began to see himself as bigger than this union and even felt like it was his own. In fact, he was doing all these unconsciously, thinking that he had the right to do so. The birthday celebration at the Versailes palace was the final nail in his coffin. See: Youtube: Party like a King: Carlos Ghosn's Versailles gala video raises eyebrows< /a> Accusations Against Him The accusations against Ghosn were mainly based on his failure to report his income between 2011 and 2018 and the fact that an amount of approximately 5 million USD was taken from Nissan and transferred to his family companies. In fact, he reported his income between 2011 and 2018 by consulting his own Japanese advisors. Hari Nada is believed to be the key person in the lawsuit against Carlos Ghosn [#20]. In Andy Palmer's words, for successful leaders who devote their whole lives to their work, Personal and Legal domains sometimes intertwine. This meant that sometimes there was confusion as to which expense belonged to the business and which expense belonged to the private sector. For example, he uses Nissan's plane for his private trips and holidays. And he saw this as his right because he was not given a salary increase. Similarly, some of the houses he lived in also belonged to the company. These included a luxury residence in Hawaii. Additionally, a yacht was purchased for the company. In his own words, he said, "These do not belong to me, they ultimately belong to the company." But it was never welcomed that the company used its financial power for its own luxurious life. He crossed the line so much that he celebrated his Marie Antoinette-themed birthday with his family at the Palace of Versailles. Against this accusation, he argued that this was actually a celebration of the 30th anniversary of the Alliance and coincided with his 60th birthday. However, no one from either Renault or Nissan went to that celebration. See: Youtube: Party like a King: Carlos Ghosn's Versailles gala video raises eyebrows< /a> The stress on Nissan's side was increasing day by day. Ghosn's management style seemed to be more dictatorial. Over time, it began to lose its initial image. It was thought that he no longer deserved his old power. On top of all this, the main stress point on the Japanese side was that it wanted to fully merge Renault and Nissan, which in a sense meant Renault's complete dominance of Nissan. His aim was to increase the French power in Nissan and Mitsubishi as much as possible. This increased the tension especially within Nissan day by day. And ultimately, it paved the way for his capture in 2018. Collection of Evidence During the collection of evidence for the "Kali 10 Compensation Investigation Report" in the case filed against Ghosn, he disguised himself with the code name "Nectarine" and worked hand in hand with Ghosn. Hari Nada played the critical role [#20]. Stating that he was threatened by prosecutors to provide evidence, Hari Nada, in a way, sold out his boss to protect himself. He is worried that if Renault and Nissan go through a full merger (Merger), as Ghosn has been planning for years, he will not be promoted like other employees at Renault. Hari Nada was seen by Nissan's top executives as the key person to prevent this merger. Hari Nada, who made a deal with both prosecutors and Nissan officials, fit the profile of someone who sold out his boss for his own future. But eventually, instead of promotion, he was demoted and put on passive duty. Ghosn believes that this conspiracy against him was planned and put into action at least 12 months in advance. Judging by Hari Nada's statements, this period seems even longer. The evidence collection process leading to Carlos Ghosn's capture is detailed in the article below; https://www. nytimes.com/2021/01/31/business/nissan-carlos-ghosn-hari-nada.html Carlos Ghosn's Capture and Detention Process Ghosn, who was completely unaware of the investigation against him, was detained by police forces who entered his plane as soon as he landed at Tokyo Airport on November 19, 2018, with his Golfstream G150 private plane number N155AN [#10]. When he was taken into custody, he was interrogated without his lawyer. After being detained for approximately 108 days, he was released under the following conditions and a certain bail; He cannot leave the country He will be under constant official surveillance -- He will be monitored by cameras in the hotel where he is located -- 2 Officers will follow him physically at all times Except for custom control [SO3] Cannot use the Internet 15+ Years [SO4] imprisonment was requested. In his words, “They will leave me there until I die[SO5] ” it said On November 19, 2018, the day Ghosn was captured, although Nissan had search warrants only for Ghosn's campuses in Japan, his campuses in other countries were also entered as a "Nissan Official". All his documents, computers and hard disks were collected at the entered locations. Greg Kelly Although it was not covered long in the media, Ghosn and Greg Kelly were arrested in Japan because they were held responsible for underreporting Ghosn's income. Kelly had been with Nissan for over 30 years [#06]. His inclusion in the subject is as follows; Like Ghosn, he is also invited to Japan. A visit to Japan is put on his calendar by his manager's assistant. Since he does not understand why this is happening, he calls Hari Nada and asks. Although Kelly says that he needs neck fusion surgery and that this meeting can be held online, Hari Nada insists that he come. He even says that a charter flight will be arranged for him, not a scheduled one. Kelly obliges and leaves. As soon as you get off the plane, you are picked up by a minibus. On the road, the vehicle is blocked and taken into custody by law enforcement officers. A 3-day trip turns into 3.5 years of prison life [#06]. His family learned about Kelly's capture when they heard the news on the radio that "Carlos Ghosn and a Maerikan citizen were captured" [#06]. He later learns that Kelly Ghosn is also in the same detention center [#06]. Greg Kelly spends 37 days in the detention center with very poor conditions and is interrogated for hours every day for 32 days [#06]. At the end of the 37th day, he is put under house arrest on bail. He stays there with his wife until the case is concluded [#06]. Although such cases are completed within 2 years in Japan, Kelly's case did not even start for 2 years [#06]. Greg Kelly is being released on March 3, 2022. According to Greg Kelly, Nissan officials were against Merger from the very beginning. And a significant number of senior executives felt that Carlos Ghosn was essentially damaging the Alliance [#06]. According to the information provided by Greg Kelly, a group of mid-level managers at Nissan Japan expressed their discomfort with Ghosn in a very limited group about 3 years ago and took action. They based the idea of salvation on Ghosn's departure and collected evidence for this and contacted prosecutors [#06]. According to Greg Kelly, losing someone like Carlos Ghosn was not in Nissan's best interest. Using such a man even as a consultant had serious advantages in terms of Nissan's contact with the environment, future plans and organizational capability development. In fact, having Carlos Ghosn as a spokesperson for Nissan was extremely valuable for Nissan. But Nissan did not do these things and chose to fight it [#07]. From the first day until the day he was released, even though he did not understand the Japanese system and was afraid, Greg Kelly believed that he would be released because the case did not involve a crime [#07]. After Greg Kelly was released, he and his wife went on a trip of about a year in his car. They meet with the people who supported them on this trip and express their gratitude. And he even has the opportunity to see his 2.5-year-old grandchild, who was born while he was in custody, during this trip [#07]. Greg Kelly, who summarizes the events he experienced with the word "Tragic", does not plan to return to the automotive industry again. Greg Kelly, who has great respect for Carlos Ghosn even today, is preparing a book about his years with Nissan [#07]. Escape Plan For someone who was 64 years old (b:1954) in 2018, staying in prison for 15+ years meant ending his life there. Ghosn was in complete despair. He believed that there would be no fair trial in Japan. Because even the first interrogation was not done in the presence of a lawyer. And he was forced to escape. For this reason, he started looking for someone who could secretly smuggle him out of the country illegally. The team, consisting of former police officers and soldiers, worked on the vulnerabilities of the airports. The leader of the team was Michael Taylor, a retired American special forces officer. He moved to Lebanon during the Lebanese civil war, where he met his wife Lamia and developed close relations, especially with the Christian people [#08]. Michael Taylor was the right name for the job. Micheal Taylor and his team, including his son, came to Japan in '. Kidnapping someone who was well known throughout the country was a very risky operation. The first thing they found was that the team tracking Carlos Ghosn, who had traces of traveling around Japan, abandoned him immediately after he entered the hotel. This lit a light for the team. Escape plan activated [SO6] received. Ghosn started going to the Grand Hyatt hotel regularly. This place had many entrances and exits. Then he went to Shinagawa station, which is one of Tokyo's main hubs and where you can easily mingle with the public. Then he went to Osaka, the 2nd largest city in Japan, by high-speed train. His next stop was Kansai Airport, Osaka's main airport. Here he entered a large music box. The reason why Kansai Airport was chosen was that the X-Ray device was too large for the music box to enter. The plane landed at Istanbul Atatürk Airport after a journey of approximately 12 hours. Here, the representative of the company where the plane was rented transferred him to another plane going to Lünan. After the incident emerged, Turkey detained 4 pilots and some officials. Ghosn is in Lebanon When he escaped from Japan, he had no phone number, email address or any documents with him. He had spoken to all of them. Ghosn said in a statement, "I ran away from injustice, not justice." He was going to say. As soon as he arrives, a press conference [SO7] and defended himself. Japan issues Red Notice about Ghosn[SO8] . However, Lebanon has a structure that does not extradite its citizens. However, these accusations of the Japanese courts could turn into a lawsuit in Lebanon. Ghosn did not raise any objections at this point, on the contrary, he wanted to defend himself in a court he trusted. The time when Ghosn came to Lebanon coincided with the times when the country was in turmoil. While once he could go anywhere in the world he wanted, now he seemed trapped in a place like Lebanon, which was plagued by internal turmoil and had almost collapsed. Although Ghosn is a Lebanese citizen and resides in Lebanon, Nissan filed the case file[SO9] Sent to France. It also issued a red notice about him. Lebanon then confiscated Carlos Ghosn's passport and banned him from leaving Lebanon. According to Ghosn, the majority of the files in the case were stolen from his office in Lebanon with the organization of Nissan officials. Due to the court case opened in France, French prosecutors are contacting Ghosn and want to meet him. Ghosn also wants to meet with them and they come together in Lebanon and hold a 3-day meeting in the presence of Lebanese officials. Authorities demand that Ghosn be tried in France, but this required cooperation with Lebanese authorities since Ghosn was tried with a Red Notice. However, just at that time, Ghosn learned that there was a new and secret investigation and arrest warrant against him in a newspaper in America. Just on the eve of the elections in France. Ghosn realized that there was a hidden agenda here and did not agree to a deal [#05]. The Team That Kidnapped Ghosn Is Captured Upon the red notice issued by Japan, American authorities captured Michael Taylor and his son in May 2020 and handed them over to Japan. While Michael received 2 years in prison, his son received 20 months in prison. It is thought that Taylor was given 1 million dollars for this work and the payment was made through different channels such as bank transfer and Bitcoin. Ghosn Files Countersuit After collecting evidence for a certain period of time, Carlos Ghosn is suing Nissan for a record compensation of $1 Billion [#25]. Ghosn states that even if Nissan gives up its case, it will not go back on its path and will do its best to get its reputation back. Ghosn accuses 11 people and 3 companies in his lawsuit [#25]; Nissan Law Firm Latham & Watkins Phoinos Investments, a subsidiary of Nissan, purchased the house in Beirut The Situation of the Alliance After the Departure of Carlos Ghosn After the long-term successful cooperation of Renault and Nissan, and on the eve of Mitsubishi joining this alliance, the Alliance management said that Ghosn's appointment as the head of this union was essential for the healthy process and appointed Ghosn as the head of the union. Thus, this Renault & Nissan & Mitsubishi Alliance became the world's largest automotive group create-post?referralInfo=sidebar&lang=tr#_msocom_10" target="_blank">[SO10] [#05]. But only 4 months later, the said lawsuit was filed [SO11] and Ghosn was let down. With Ghosn's departure, the Alliance suffered a serious collapse. The biggest reason for this was the loss of trust. After Ghosn in Nissan Renault & Nissan partnership experienced a decrease in value of approximately 33 Billion Dollars after this operation [#22]. Nissan management, which changed the important points of the management, established a team with zero or little industry experience, which cannot be compared with the previous one [#22]. In addition, two valuable senior executives at Nissan went to Hyundai and Jeep [#22]; José Muñoz – Hyundai COO Christian Meunier – Jeep CEO What is being talked about in the market is that Renault will reduce its share in this partnership from 42% to 15% before Nissan's value decreases further [#22]. Renault has recently been looking for new Chinese partners [#22]. Ghosn's Self-Criticism Looking back, Ghosn could have founded and developed a company in this field in 2009, when Tesla was just developing in the hands of Elon Musk. It is very likely that he would have been successful, or at least he would not have lived through these days. In summary... Burning a quilt for fleas... I think this move, undertaken by one of the world's most established automotive companies, just to get rid of the CEO of the Alliance it founded, is a wrong operation that has exceeded its purpose beyond its imagination and has not benefited it at all. Imagine what the company that did this to its CEO, who took Nissan out of bankruptcy, placed it among the leading companies in the world, and made billions of dollars in profit, could do to its other staff and genius stakeholders... Apparently, the huge Nissan could not think of this... This is also a yellow light for anyone working as an expat in Japan. If the Japanese Government investigates the psychological consequences of this incident, I believe it will encounter reports with very tragic headlines. The best words explaining the process come from lawyer Ravinder Passi, one of the closest witnesses of the events: "The madmen who took over the mental hospital..." [#23] As for Ghosn; Ghosn is currently fighting against Nissan in Lebanon, while continuing his consultancy and other activities. He does not plan to return to the automotive industry as CEO, but says he will continue to support it. He especially says that Lebanon needs support. Who knows, maybe one day we may see Carlos Ghosn as a minister or Prime Minister in Lebanon... Books and Movies About Carlos Ghosn Books about Carlos Ghosn 2007-12 - Carlos Ghosn / Shift 2021-06 - Hans Greimel / Collision Course: Carlos Ghosn and the Culture Wars That Upended an Auto Empire 2021-09 - Carlos Ghosn / Broken Alliances: Inside the Rise and Fall of a Global Automotive Empire 2022-08 - Nick Kostov / Boundless: The Rise, Fall, and Escape of Carlos Ghosn Movies about Carlos Ghosn 2021 - Carlos Ghosn: The Last Flight 2022 - Fugitive CEO: The Carlos Ghosn Story 2023 - Wanted: The Escape of Carlos Ghosn Resources #01 - [Youtube] Inside Carlos Ghosn's Unbelievable, Daring Escape #02 - [Youtube] The Wild Story of How Nissan's CEO Became A Wanted Fugitive #03 - [Youtube] Carlos Ghosn Discusses Arrest, EVs, And $1B Lawsuit Against Nissan | FORBES INTERVIEW #04 - [Youtube] Carlos Ghosn: the rise and fall of a superstar CEO | FT Film #05 - [Youtube] Full Interview: Former Renault-Nissan boss Carlos Ghosn | CNBC International #06 - [Youtube] Carlos Ghosn & the Biggest Scandal In Japanese Business History Part 1 - Episode #90 with Greg Kelly #07 - [Youtube} Carlos Ghosn's Escape and the Aftermath (Part 2) - Episode #91 with Greg Kelly #08 - [Article] The Tokyo Job: Inside Carlos Ghosn's Escape to Beirut #09 - [Article] Carlos Ghosn Was Too Big Not to Fail in Japan #10 - [Article] Inside the Takedown That Put Carlos Ghosn in Jail #11 - [Article] Renault uncover €11mn in questionable expenses linked to ex-CEO Ghosn #12 - [Article] SEC Charges Nissan, Former CEO, and Former Director with Fraudulently Concealing from Investors More Than $140 Millions of Compensation and Retirement Benefits #13 - [Article] 2 Americans Get Prison Over Nissan Executive's Escape From Japan in a Box #14 - [Article List] The New York Times / Carlos Ghosn #15 - [Wikipedia] Jean-Dominique Senardok #16 - https://alliancernm.com/home-alliance/about-the-alliance/ #17 - [News] French Finance Minister Maire: Ghosn must face justice like everyone else #18 - Wanted: The Escape of Carlos Ghosn review – this twisty, dramatic tale will leave you agog #19 - [Article] Saving the Business Without Losing the Company #20 - [Article] How a High-Ranking Nissan Executive Escaped His Own Trap #21 - [News] Hari Nada / Nissan #22 - [Article] Documents Surface Supporting Kelly's, Ghosn's View of Nissan Overthrow #23 - [Article] BBC News / The downfall of Nissan's Carlos Ghosn: An insider's view #24 - [Article] MoneyControl / Nissan executive Hari Nada's great escape #25 - [Article] Ghosn's billion dollar quest for Nissan coup justice Photos Cover photo: https://www.businesslive.co.za/bd/world/2019-03-21-carlos-ghosns-legacy-of-dubious-deals-and -unbridled-power/ [Youtube] Inside Carlos Ghosn’s Unbelievable, Daring Escape
- Slow Moving Materials
What is Slow Moving Materials? Slow Moving Materials, which defines the “S: Slow” part of the FSN Analysis, is one of the largest volume and finance costs of Inventory Management. Slow Moving Materials refer to materials that remain motionless in the stocks of a business for a long time and do not add value to the business. Slow Moving Materials / Main problems caused by immobile materials/products; Additional volume requirement = idle investment per m3, Finance spent on idle materials = Opportunity Cost, Financial loss as a result of idle material/product becoming out of date, Idle material becoming a parasitic stock and creating physical hazards, Man/hour cost as a result of relocating the idle material/product multiple times to make room for others, etc. Ways to prevent Slow Moving Materials Effective inventory control planning Performing regular analysis -- Demand Rate Analysis -- FSN Analysis -- Pareto Analysis / ABC Analysis< /p> -- XYZ Analysis / RRS Analysis< /p> -- DIO - Days Inventory Outstanding< /p> -- DSI - Days Sales of Inventory / Average Age of Inventory -- HML Analysis Working more closely with sales or production units Gradual reduction of stock levels. In this way, revealing hidden problems, such as decreasing water in a river shows the problems at the bottom. Looking for ways to speed up the inventory cycle Creating awareness that the survival of the business depends on the dtok cycle
- XYZ Analysis / RRS Analysis
What is XYZ Analysis? XYZ Analysis is a Demand Forecast Analysis that takes into account statistical data as a continuation of ABC Analysis (Pareto Analysis). In other words, it adds a horizontal, statistical dimension to ABC Analysis, which operates vertically. Determines how to act according to product demand fluctuations. How is XYZ Analysis done? ABC Analysis is done, The period intervals to be analyzed are determined, Standard Deviation of the specified period is calculated, Coefficient Variation is found => Standard Deviation / Period Average, XYZ Grouping is done (Percentages can be revised according to need); X: <=10 Y: > 10% & <=25 Z: > 25% In the presentation below, how to do it is explained in detail visually and a sample document is provided; [Youtube] ABCSupplyChain / ABC XYZ Analysis for Inventory Management: Example in Excel (Full Tutorial) ABC-XYZ Quandrant Some Benefits of XYZ Analysis Gives direction on which products to focus on Helps keep inventory costs to a minimum on a periodic basis Reduces the possibility of being out of stock Helps use production capacity efficiently My related articles KPI - Key Performance Indicators< /p> Supplier Portfolio Analysis Pareto Analysis / ABC Analysis Kraljic Portfolio Analysis SWOT Analysis Resources [Article] LeanDna / From ABC to XYZ: Understanding the XYZ Analysis [Article] Oliver Horse / Using ABC-XYZ analysis to optimize your forecast in SAP APO [Youtube] ABCSupplyChain / ABC XYZ Analysis for Inventory Management: Example in Excel (Full Tutorial) [Youtube] Lokad / ABC XYZ Analysis - Supply Chain in 3 minutes
- SWOT Analysis
“The essence of strategy is choosing what not to do.” –Peter Drucker What is SWOT Analysis? SWOT Analysis, which is a type of analysis that can be applied to almost all areas of business and private life, Strengths & Weaknesses & It consists of the initials of the words Opportunities and Threats. It is a type of analysis that is useful for evaluating the internal and external factors as a whole, together with the current situation, and for tactical/strategic decisions to be taken in the future. Internal Factor - Strengths: Includes advantageous aspects, resources, abilities and general strong points. Internal Factor - Weaknesses: Includes areas of development, shortcomings and disadvantages compared to competitors/alternatives. External Factors - Opportunities: Potential advantages in the external environment for growth and development. External Factors - Threats: These are factors that arise from the external environment and can negatively affect the performance of the organization. Below is the SWOT Analysis Quandrant Example Main Areas of Use of SWOT Analysis Supplier comparison Market Analysis Investment Analysis Benchmarking Strategy creation and evaluation Integration into new developments Data analysis Market positioning Resource planning Capacity analysis Cost analysis Risk management Value analysis etc. How to Perform SWOT Analysis? Preparation Phase: Purposes and definitions are made. Meetings: Topics are determined with the participation of all relevant parties. SWOT Stages are detailed: Detailed study is carried out on each of the 4 aspects. Transformation of the analysis into a Quadrant: The collected information is entered into the Quadrant and the picture emerges. Analysis Evaluation:By evaluating the analysis performed, the objectivity of the analysis is ensured. Strategy development:The strategy creation/development process is carried out within the framework of analysis. Implementation: Decisions taken during the process are put into practice. Monitoring and Evaluation: The processes and results of the decisions taken are checked at specified intervals. Risks of SWOT Analysis Subjectivity: If the analysis is done with subjective opinions, the results may be unrealistic. Outdated Data:Analysis performed with old or misleading data may lead to errors. Analysis Paralysis: Too much analysis can delay or stop decision making. Oversimplification: Simplifying complex problems can be misleading. Prejudices:Pre-existing biases can disrupt the objectivity of the analysis. Overlooking Variables: Failure to include all relevant factors in the analysis may paint an incomplete picture. Strategic Inaction: Failure to put the results of the analysis into action may result in loss of effort. Over Focus: Excessive focus on some factors in the SWOT Analysis may lead to overlooking other important elements. My related articles KPI - Key Performance Indicators< /p> Supplier Portfolio Analysis Pareto / ABC Analysis / XYZ Analysis< /p> Kraljic Portfolio Analysis Resources Chat Based AI Tools: ChatGPT & BARD https://en.wikipedia.org/wiki/SWOT_analysis [Youtube] SWOT Analysis - What is SWOT? Definition, Examples and How to Do a SWOT Analysis [Youtube] SWOT Analysis | Definition, Examples, Process, and Uses
- Pull System / Pull System
What is the Pull System? Pull System is a Lean Manufacturing method that refers to the production of the relevant material only when needed and delivering it to the desired point. is a concept. It aims to reduce unnecessary stocks and minimize waste. It is also referred to as stockless production or Zero Inventory. Just-in-Time System It is an example of a Pull System. Kanban Card is also one of the tools of this system. How Does the Pull System Work? Creates customer demand. The created demand is transferred to the production unit. Inventory control is carried out. The amount in inventory is delivered, Production is triggered for the order block specified in the Kanban Card, If there is more demand than what is in stock, this is also added to the order block in the Kanban Card, Demand is generated, The product is delivered to the customer, Stock is replenished by placing the block specified in the Kanban Card back into stock, The demand analysis is updated and the order block specified in the Kanban Card is revised when necessary. Purposes of the Pull System Getting rid of unnecessary stock space costs by eliminating excess stock, Alleviating the financial burden caused by unnecessary stock, Starting with the goal of Zero Stock, ensuring that the problems in the production processes are seen more clearly, thus reducing the costs even further, Increasing quality by optimizing production processes, As a result of all this, ensuring sustainability. Pull System and Push System Comparison My related articles Kanban Card Order Cycle Time< /a> Lead Time / Delivery Time Why and How to use the Material Code? JIT - Just-In-Time JIC - Just In Case JIS – Just In Sequence EOQ - Economic Order Quantity EOS - Economy of Scale Economy of Scope Minimum Stock Consignment Stock Safety Stock StopGap / Temporary Measure ROP - ReOrder Point / Order Trigger Point VMI - Vendor Managed Inventory / Supplier Managed Inventory Bullwhip Effect (Whiplash, Whipsaw) Beer Game / Beer Distribution Game Kaizen - Always For Good Resources Wikipedia / Pull System Youtube / Fishbowl / Manufacturing: Push or Pull? - Whiteboard Wednesday Supply Chain Articles / Kanban Card
- Packout Quantity and Pitch Time
What is the Pack-out Quantity? Pack-out Quantity refers to the number of units of a product or material in a particular package or box. It is used in Pitch Time Calculation. What is Pitch Time? Calculates the time required per operation. Pitch Time = Takt Time x Pack-out Quantity To explain with an example; Takt Duration: 36 seconds Pack-out Quantity: 20 pieces Pitch Value: 720 seconds Resources Youtube / WHAT ARE TAKT TIME AND PITCH TIME? Lean.org / Pack-Out Quantity SigmaCenter / Takt Time, Pitch Value, Cycle Time, Lead Time Textilespedia / Pitch Time and Pitch Diagram https://www.scribd.com/ document/529621068/How-to-calculate-Basic-Pitch-Time https://www.researchgate.net/figure/Fig-2-Pitch-Diagram-1-Production-target-per-hour-with-8-operators-No-of-Operator_fig1_349704512 https://www.lean.org/lexicon-terms/pitch/ https://blog.gembaacademy.com/2009/08/10/one_point_lesson_takt_image / https://apparelresources.com/business-news /manufacturing/great-knowledge-divide-measure-time/
- Takt Time
"Takt time is the heartbeat of a lean system." -Jim Womack What is Takt Duration? Takt Time refers to the total time required to complete a product or service. It is especially used in Just-in-Time processes. Lead Time > Order Cycle Time > Takt Time Takt Duration History Takt is a German term for a clear time interval, such as musical meter. Takt time was first used as a production management tool in the German aircraft industry in the 1930s. Takt was the time interval during which the aircraft was advanced to the next production station. This concept began to be used within Toyota in the 1950s and was widely used among Toyota suppliers from the late 1960s. How to Calculate Takt Time? Step-1 - Determination of Working Time: The total working time required to complete the job is calculated. This account includes man/hour and physical transactions. The complexity of the job should also be taken into account when making this calculation. Step-2 - Converting Working Time to Seconds: Since Takt Time is usually calculated in seconds, the time is converted to seconds. For example; If the total duration of a job is 1 hour, it is calculated as 1 hour x 60 minutes x 60 seconds = 3,600 seconds. Step-3 - Determining the Demand Amount: When calculating the Takt Time, the daily production target or demand amount of the production line is also calculated. Step-4 – Final Calculation - Takt Time Calculation: Takt Time = Working Time (seconds) / Demand Amount Sample Calculation: Total run time: 3,600 seconds = 1 hour Daily demand: 100 items Takt Time = 3,600 seconds / 100 items = 36 seconds According to the above calculation, 1 unit of product is produced every 36 seconds. This is considered the Takt Time of the business process. Where and How to Use Takt Time? Production: Takt Time is used to optimize production processes and ensure that products are produced at the specified speed. Completing the work on the production line at equal time intervals increases efficiency and ensures that products reach customers faster. Supply Chain: Takt Time can be used in Supply Chain Management to optimize the speed of transportation and distribution of goods. Construction: In Construction Projects, Takt Duration Man/Hour calculation is used. Risks in Takt Time Calculation Complexity: Application of Takt Time can cause business processes to be unnecessarily separated or combined, ultimately becoming more complex. This complexity of processes can also lead to management difficulties. Human Factor: Workers' productivity and motivation can affect the success of Takt Time implementation. Workers may feel overly stressed when they have to work faster. Cost Increases: Implementation of Takt Time may require investment to optimize business processes. These investments may cause initial costs to increase. Lack of Flexibility: Takt Time aims to complete business processes at a certain pace. This can make business processes less flexible and make it harder to adapt to changing conditions. Training and Implementation Challenges: It is important to implement Takt Time correctly and teach this concept to employees. Training and implementation difficulties can hinder success. Quality Issues: Since Takt Time aims to speed up business processes, quality control may become difficult. Precautions must be taken to maintain quality. Resistance and Acceptance Issues: There may be resistance to implementing Takt Time within the business. It may take time for employees and managers to accept and adopt this change. Comparison with Unit Man/Hour Unit Man/Hour calculation calculates the labor required to do a job. This period does not include the time the relevant product or job waits independently of the worker. Takt time isa refers to the total time required to complete a product or service, including Unit Man/Hour Calculation. My related articles Order Cycle Time< /a> Lead Time / Delivery Time Why and How to use the Material Code? JIT - Just-In-Time JIC - Just In Case JIS – Just In Sequence EOQ - Economic Order Quantity EOS - Economy of Scale Economy of Scope Minimum Stock Consignment Stock Safety Stock StopGap / Temporary Measure ROP - ReOrder Point / Order Trigger Point VMI - Vendor Managed Inventory / Supplier Managed Inventory Bullwhip Effect (Whiplash, Whipsaw) Beer Game / Beer Distribution Game Kaizen - Always For Good Resources Chat Based AI Tools: ChatGPT & BARD Youtube / How to measure TAKT TIME and CYCLE TIME? The Lean Manufacturing Guide Takt Time vs Cycle Time - Cashier's Metaphor Deloitte / Strategic Supply Management Youtube / CYCLE TIME - TAKT TIME - LEAD TIME SigmaCenter / Takt Time, Pitch Value, Cycle Time, Lead Time What is Construction Account / Man Hour Account? Planning Engineer Blog / What is Man Hour? Yalin Institute / What is Takt Time? Beyond Lean / Takt Time Photos Cover photo: Beyond Lean / Takt Time< /p>
- Lead Time / Delivery Time
What is the Lead Time? Lead Time / Delivery Time includes all processes from receiving the order from the customer to delivery to the customer. In this sense, Order Cycle Time. Lead Time / Delivery Time has a very high importance for the institution as it is directly related to how the institution appears in terms of the service the customer receives. What is meant by customer here may be perceived as a "Real Customer" in E-Commerce companies, and as an internal customer in Construction and other project-based companies. Order Cycle Time< Since it includes /a> related article If you read it at , you will not repeat yourself. Graphic: https://blog.packsend.com .au/order-cycle-time What needs to be done to achieve shorter Lead Time / Delivery Time Analyzing Processes: First, existing processes are analyzed in detail to determine which steps extend and delay the processing time. (See: Wikipedia / Business Process Re-Engineering) Efficiency Improvement: The necessary steps to make your processes more efficient are determined, the workflow is rearranged and unnecessary processes are eliminated to increase efficiency. Supply Chain Collaboration: It would be beneficial to optimize each stage of the chain by establishing closer cooperation with suppliers. Correct and Adequate Technology Use: In addition to using appropriate technology and software to support business processes, automation and data analytics can also make processes faster. Workforce Training: Training of personnel is one of the decisive points for the healthy progress of the processes. Being well trained will enable them to understand the processes better and solve any problems that may arise or make correct notifications. As a factory worker said to his boss when retiring; “You paid for the work I did with my hands for 25 years. However, you could have used my brain for the same amount of time, and for free.” (Marcum, 2004). Supplier Diversity: It will always be beneficial to work with multiple suppliers in order to make the supply chain more resilient. (See: Sourcing) Demand Forecast Improvement:Better demand forecasts help in stock reduction and speeding up processes. Performance Measurement: Regular monitoring of processes and performance measurement provide significant assistance in identifying improvement opportunities. (See: KPI) Continuous Improvement: Constantly reviewing processes and looking for improvement opportunities, optimizing your business processes is not a process, it requires a continuous effort. (See: Kaizen) My related articles Order Cycle Time< /a> Why and How to use the Material Code? JIT - Just-In-Time JIC - Just In Case JIS – Just In Sequence EOQ - Economic Order Quantity EOS - Economy of Scale Economy of Scope Minimum Stock Consignment Stock Safety Stock StopGap / Temporary Measure ROP - ReOrder Point / Order Trigger Point VMI - Vendor Managed Inventory / Supplier Managed Inventory Bullwhip Effect (Whiplash, Whipsaw) Beer Game / Beer Distribution Game Kaizen - Always For Good Resources Chat Based AI Tools: ChatGPT & BARD Deloitte / Strategic Supply Management Wikipedia / Lead Time Youtube / CYCLE TIME - TAKT TIME - LEAD TIME SigmaCenter / Takt Time, Pitch Value, Cycle Time, Lead Time Makers Consulting / What is Lead Time, Cycle Time in KPI Measurements ? Marcum, Dave. 2004.BusinessMotive. [trans.] Osman Deniztekin. Istanbul: Varlık Publications, 2004. p. 280. ISBN 978-975-434-275-8. Photos Cover photo: Packsend / Order Cycle Time
- Order Cycle Time
"Time is the scarcest resource, and unless it is managed, nothing else can be managed." -Peter Drucker What is Order Cycle Time? Order Cycle Time refers to the Order processing process. The processes of taking the order from the customer and delivering it to the customer are excluded from this. The purpose of Order Cycle Time Tracking is to shorten this time as much as possible and to respond faster to internal/external customers, as well as to reveal the disruption points in the process more clearly. Generally used in the manufacturing sector, Takt Time and Lead Time. Order Cycle Time measures the time it takes to process an internal/external customer's order. This includes the supply of goods required for production and production. Takt Time only measures the production process. Lead Time measures the time needed from the internal/external customer's order to delivery. Graphic: https://blog.packsend.com .au/order-cycle-time Benefits of Shortening Order Cycle Time Higher Increased Customer Satisfaction:Fast order processing and delivery times increase customer satisfaction and encourage customer loyalty. Inventory Management and Cost Reduction: Short order cycle time can reduce inventory costs because less inventory will be needed. Competitive Advantage: Faster delivery gives the organization a competitive advantage and can help it stand out in the market. Higher Customer Satisfaction: Fast order processing and delivery times enable internal/external customers' orders to be fulfilled quickly, increasing satisfaction and encouraging customer loyalty. Improve Inventory Management and Control: Short Order Cycle Time is important to improve inventory management and control. Faster order processing times enable better tracking and management of stocks. Financial Advantage: Short Order Cycle Time, less inventory and less waiting time reduce operating costs. This relieves the institution financially. Production and Planning Improvement: Order Cycle Time can be used to improve production and planning processes. It ensures that products are produced on the required schedule. (See: JIT - Just in Time and JIS – Just In Sequence) Continuous Improvement: Order Cycle Time can be used as part of continuous improvement efforts. Businesses can become more efficient by constantly monitoring this period and applying improvement strategies. Risk Reduction: Faster delivery enables unexpected delays and issues in supply chain processes to be quickly addressed. This helps businesses reduce risks. What are the Risks of Shortening Order Cycle Time? Stock Shortage: Shortening the order cycle time too quickly may result in insufficient stocks. This may lead to difficulties in fulfilling orders and customer dissatisfaction. Operational Challenges: Rapid processing and delivery of orders can create operational challenges. This process may need to be managed and well planned in terms of labor, equipment and logistics. High Operational Costs: Shortening the Order Cycle Time requires faster work. This may increase the operational costs of the business. Additional costs such as urgent transportation or employment of additional personnel may arise, especially for fast delivery. Supply Chain Issues: There is a risk that other players within the supply chain (suppliers, carriers, subcontractors, etc.) may not be able to keep up with expediting the process. This can lead to supply chain incompatibilities. Quality Control Issues: Rapid delivery processes can complicate quality control processes or cause them to be overlooked. This may result in poor product or service quality. Fluctuations in Customer Demand: Shortening order cycle time may require becoming more sensitive to fluctuations in customer demand. This can lead to resource waste due to demand imbalance. (See: Bullwhip Effect (Whiplash) , Whipsaw) ) Need for Sufficient and Accurate Information: Accurate data and information are needed to optimize order cycle time. This information can be difficult to access or analyze accurately. Business Process Reorganization: Reducing order cycle time may require business process reorganization (Business Process Re-Engineering). This may encounter resistance within the organization. Customer Expectations: Fast delivery and short order cycle time can raise customers' expectations. Therefore, it can be difficult to consistently provide this level of service. Technology and Infrastructure: Technology and infrastructure investments may be required to accelerate processes. These investments may increase costs. My related articles 1. Why and How to use the Material Code? 2. JIT - Just-In-Time /a> 3. JIC - Just In Case 4. JIS – Just In Sequence / Full During 5. EOQ - Economic Order Quantity 6. EOS - Economy of Scale 7. Economy of Scope 8. Minimum Stock 9. Consignment Stock 10. Safety Stock 11. StopGap / Temporary Measure 12. ROP - ReOrder Point / Order Trigger Point 13. VMI - Vendor Managed Inventory / Supplier Managed Inventory 14. Bullwhip Effect (Whiplash) , Whipsaw) 15. Beer Game / Beer Distribution Game Resources Chat Based AI Tools: ChatGPT & BARD https://www.lean.org.tr/cevrim -surah-cycle-time-what is it/ https://www.donusumdanismanlik.com/takt-time-nedir -how-to-calculate/ Youtube / CYCLE TIME - TAKT TIME - LEAD TIME SigmaCenter / Takt Time, Pitch Value, Cycle Time, Lead Time Makers Consulting / What is Lead Time, Cycle Time in KPI Measurements ? Thomas / Order Cycle Time: Definition, Formula, and Improvement < /p> Wikipedia / Takt Time Wikipedia / Lead Time Packsend / Order Cycle Time Photos Cover photo:
- JIS – Just In Sequence
"The art of JIS lies in perfect coordination between suppliers and production lines." -Richard Johnson What is Just in Sequence? Just in Sequence (JIS) refers to the supply of materials in accordance with the production sequence. Essentially Just in Time Although it works on the same logic, it takes it a step further by ensuring that suppliers deliver products and in the correct order. Just in Sequence (JIS) is widely used especially in complex production models such as the automotive industry. It is also called In-Line-Vehicle-Sequencing. In this sense, for Ford's suppliers, In Line Vehicle Sequencing Process (ILVS). Benefits of Just in Sequence Reducing Inventory Costs: JIS ensures that materials and components are supplied only when they are needed. This reduces the need to hold excess stock and lowers inventory costs. Increasing Production Efficiency: Arriving of materials in the correct order and on time contributes to the uninterrupted and orderly production processes. This increases production efficiency. Improving Product Quality: JIS ensures that product assembly processes are regular. This helps reduce errors and increase product quality. Improving Delivery Times: Suppliers are coordinated more tightly to deliver products in the correct order and on time. This enables improved delivery times to the customer. Stock Value Reduction: JIS Approach encourages faster turnover of stocks. This helps companies reduce stock values. Strengthening Supplier Relationships: JIS requires closer collaboration with Suppliers. It contributes to the development of long-term relationships and monitoring the performance of suppliers. Easier Production Planning: Arriving materials and components in the correct order makes production planning more predictable. Risks of Just in Sequence Supply Chain Risks: JIS, Requires tighter coordination throughout the supply chain than Just in Time (JIT). Therefore, any error or disruption in the supply chain can negatively affect production processes like dominoes. Demand Changes: Unexpected demand changes can complicate JIS implementation. If demand increases or decreases, material supply on the production line must keep pace with these changes. Long Supply Chain: JIS can become more complex in international supply chains. Long distances and customs clearance may cause deliveries to be delayed. Data and Information Security: JIS Application, JIT. This may increase data security risks. Supplier Diversity: Working with multiple suppliers can help spread risks. However, supplier diversity will also complicate coordination. My related articles 1. Why and How to use the Material Code? 2. JIT - Just-In-Time /a> 3. JIC - Just In Case 4. EOQ - Economic Order Quantity 5. EOS - Economy of Scale 6. Economy of Scope 7. Minimum Stock 8. Consignment Stock 9. Safety Stock 10. StopGap / Temporary Measure 11. ROP - ReOrder Point / Order Trigger Point 12. VMI - Vendor Managed Inventory / Supplier Managed Inventory 13. Bullwhip Effect (Whiplash) , Whipsaw) 14. Beer Game / Beer Distribution Game Resources Chat Based AI Tools: ChatGPT & BARD https://en.wikipedia.org/wiki/Just_in_sequence https://www.suppcomm.ford.com/europe/Documents/ ILVS_Brochure.pdf https://www.youtube.com/watch?v= IMvdqia7fHQ&pp=ygUKSklUIHZzIEpJUw%3D%3D https://tulip.co/blog/just-in-sequence-vs-just-in-time/#:~:text=The%20difference%20between%20Just%20in%20Sequence%20and% 20Just%20in%20Time&text=JIS%20takes%20the%20JIT%20methodology,sequence%20to%20assemble%20various%20parts.
- Economies of Scope
"The power of economies of scope is having multiple arrows in your quiver." -Meg Whitman, Former CEO of HP. What is Economies of Scope? Economies of Scope refers to the ability of a business to increase its profitability by using its common resources more efficiently through diversification while producing products or services. For example: The gas station also has a convenience store, The cafe also sells cups and thermoses, Building a Business Center by a construction company with its own investment, The health center, which specializes in a single field, begins to provide services in all fields through diversification, etc. Economies of Scope / History of Scope Economics Economies of Scope Foundations of the concept Industrial Revolution (1760-1840), railway and telegraph It extends to mergers of companies. Economies of Scope / Good practices in Scope Economics IKEA: While it was initially a furniture store, over time it transformed into a store where you can buy all household products Tchibo: Its journey started in 1949 with the sale of coffee via mail, then it opened coffee shops, produced coffee machines, and eventually expanded to the sale of personal products. Amazon: While it was initially a bookseller, it later provides services in many areas such as cloud computing and artificial intelligence, as well as electronic commerce. Apple: Expanding with the ecosystem logic from the beginning, producing computers, music players, phones, tablets and watches, respectively. Benefits of Economies of Scope Cost Savings: Using the same resources in the production of different products and services provides cost savings. Efficiency: Optimizing operational processes increases efficiency and ultimately profitability. Diversification: Using different products and services on the same infrastructure helps the company diversify its portfolio. This increases sales. Market Expansion: Expertise in many areas allows the company to gain easier access to different markets. Competitive Advantage: Companies that can use the same resources in more than one area may have an advantage over their competitors that focus on a single product or service. Customer Satisfaction: When customers are offered more than one product and/or service under one roof, customer satisfaction generally increases. Risk Reduction: Product diversification generally reduces the financial risks of institutions. Supply Chain Optimization: Especially in Purchasing and Logistics processes, using common suppliers for different products and services can increase operational efficiency. Risks of Economies of Scope Increase in Complexity: Using the same infrastructure for different products or services can increase the complexity of business processes. Loss of Focus: Focusing on too many products or services can lead to a decrease in performance in the company's core business. High Initial Cost: The ability of various products or services to use the same resources brings about serious initial investment costs. Return on Investment Risk: High initial costs may also negatively affect the rate of return on investment. Quality Risk: When the same resources are used in more than one area, product or service quality may decrease. Process Improvement Challenge: In complex systems with many products or services, process improvements can become more difficult. Supply Chain Challenges: Where common suppliers are used, problems with one supplier can affect the entire product or service range. Loss of Strategic Flexibility: Common infrastructure and resources can make it difficult for the company to quickly adapt to strategic changes. Comparison of Economies of Scope and Economies of Scale My related articles EOS - Economies of Scale EOQ - Economic Order Quantity Why and How to use the Material Code? ROP - ReOrder Point / Order Trigger Point Minimum Stock VMI - Vendor Managed Inventory / Supplier Managed Inventory Consignment Stock Safety Stock StopGap / Temporary Measure Bullwhip Effect (Whiplash, Whipsaw) Resources Chat Based AI Tools: ChatGPT & BARD https://en.wikipedia.org/wiki/Economies_of_scope https://www.youtube.com/shorts/5ZgmJO3rutQ https://byjus.com /commerce/difference-between-economies-of-scale-and-economies-of-scope/ https://www.jstor.org/stable/1815729 https://www.investopedia.com/terms/e/economiesofscope.asp< /a> https://www.youtube.com/watch?v=mxOzprN59k8< /p> https://www.youtube.com/watch?v=zWgIW5n5sMA< /p> https://www.youtube.com/watch?v=UPcR-PqRwuo< /a> Photos · Cover photo: https ://www.vskills.in/certification/blog/economies-of-scope/

