Strategic Management of Resources

Presented By:
Vincent Gaspersz, CMQ/OE, CQE, CQA, CSSBB/MBB, CFPIM, QMS-A
Professor in Total Quality and Operations Management, Program MM Universitas Trisakti
Doktor Teknik Sistem dan Manajemen Industri, Institut Teknologi Bandung (ITB)
Doctor of Science in Management of Engineering and Technology, SCUPS
APICS Certified Fellow in Production and Inventory Management (CFPIM)
International Quality Federation (IQF) Six Sigma Master Black Belt (SSMBB)
American Society for Quality (ASQ) Certified Six Sigma Black Belt (CSSBB)
American Society for Quality (ASQ) Certified Manager of Quality/Organizational Excellence (CMQ/OE)
American Society for Quality (ASQ) Certified Quality Engineer (CQE)
American Society for Quality (ASQ) Certified Quality Auditor (CQA)
RABQSA Quality Management System Auditor (QMS-A)

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Building the CPIM Programme

Strategic Management of Resources
Philosophies

Strategies
Product Demand

Master
Planning
of
Resources

Internal Resource

Targets
Material Plan

Detailed
Scheduling
&
Planning

External Resource

Capacity Plan

Supplier Plan

Execution
&
Conrol
of
Operations

BASICS of SUPPLY CHAIN MANAGEMENT

Fundamentals of Operations Management
Fundamentals of Manufacturing Control
Fundamentals of Planning
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Fundamentals of Inventory Control

THE CPIM PROGRAM

The CPIM program: an overview
The CPIM program consists of 5 individual
modules:
Entry module:
Basics of Supply Chain Management:
terminology and basic concepts related to
managing the complete flow of materials from
suppliers to customers.
Business process modules:
Master Planning of Resources, Detailed
Scheduling and Planning, Execution and
Control of Operations: available methodologies
and techniques to drive processes and the
application of these techniques.
Capstone module:
Strategic Management of Resources: choosing
the appropriate methodologies and techniques
for specific needs and an appreciation for the
integrated nature of operations.

Strategic Management
of
Resources
Philosophies

Master Planing
of
Resources

Strategies

Detailed
Scheduling
and
Planning

Targets

Execution
and
Control
of
Operations

Basics of Supply Chain Management

Concept

Terminology

Equations

Minimize Production Cost

Minimize Inventory Investment
Maximize Customer Service

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Module 5: Strategic Management of Resources

Key Concepts
Capability Analysis
Communication
Configuration
Cost Manager
Continues improvement
Change Manager
Information technology
ERP / MRP II
Information systems
Infrastructure decisions
Integration
Human resources
JIT
Life cycle
Measurement management
Market
Operations management
Product decisions
Project Manager
QFD
SCM
SCOR
Strategy alignment
Taguchi Methods
TQM

Explores the relationship of existing and emerging processes and technologies to

manufacturing strategy and the functions related to operations planning and control. For
maximum comprehension of course content students should be familiar with the
information and concepts presented in the other CPIM modules before taking this
course.

Aligning the Resources with the Strategic Plan:

Competitive market issues
Factors affecting required facilities
Structure of the supply chain
Choices of information technology
Organizational design and human resources policies

Configuring and Integrating the Operating Processes

to Support the Strategic Plan:
The priority planning processes
The capacity planning processes
Design and development processes
Cost management processes

Implementing change:
Evaluating and managing projects
Measuring organizational performance
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ManagingPrepared
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organization

Strategic Mgmt of Resources (SMR)

Major Topics
Aligning Resources with
the Strategic Plan
Configuring and
Integrating the Operating
Processes to Support the
Strategic Plan

Class Sessions
1.
2.
3.
4.
5.
6.
7.
8.
9.

Align Resources w/Strategic Plans

Choices Affecting Ops Structure
Choices Affecting Ops Infrastructure
Configuring & Integrating Op Processes
Supply Chain Management
Configuring & Integrating Design and
Develop & Cost Mgmt Processes
Project Management
Measurement Management
Change Management

Implementing Change
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Session 1: Aligning Resources with Strategic Plans

Objectives:
1. Recognize the need for integration of the manufacturing process with the
company strategy
2. Identify considerations to make in developing strategy
3. Understand organizational strategy selection
4. Explain how resources can be aligned with strategic market objectives
5. Determine the importance of customer requirements in product design
and development
6. Describe the strategic importance of Just-in-Time (JIT) and total quality
management (TQM)
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A Corporate Strategy Model

VISION
MISSION
ORGANIZATIONAL OBJECTIVES
ENVIRONMENTAL SCANNING
INTERNAL STRENGTH AND WEAKNESS ANALYSIS
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CORPORATE
STRATEGY

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Strategic Planning Cycle - PDSA

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VISION, MISSION, GOALS AND OBJECTIVES

CORPORATE STRATEGY

First Major Level

BUSINESS STRATEGY
1. Price leadership (low cost operations, effective SCM, standardized process, etc)
2. Product differentiation (high-quality products, easily adaptable processes)

Second Major Level

3. Customer focus (responsive delivery, process flow, customized for targeted market segment)

FUNCTIONAL STRATEGY
1.
2.
3.
4.

Third Major Strategy

Financial strategy
Product development strategy
Operations strategy
Marketing strategy

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OPERATIONS STRATEGY
Operations Strategy is the content and process of
activities, directed toward distinctive operations
competence, that evaluate potential impacts of
situations and alternatives in structured time
dimensions and integrate a pattern of decisions to
balance the resource commitments, output
requirements, and risk in various focused
transformation efforts.
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FOUR ELEMENTS OF OPERATIONS STRATEGY

1. Method for evaluating the impact of activitiesmethods to
evaluate the impacts of activities and accommodate higher
levels of uncertainty
2. Definition of time dimensions (time horizon and time fences)
the clear definition of time dimensions, including the time
horizon and time fences, that permit the specification of periods
within which actions must be taken
3. A mechanism for integrating decisions regarding other
functional area strategies
4. Focused transformation efforts
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FOCUS OF AN OPERATIONS STRATEGY

1. Process-focused strategythis strategy is applied in companies that
produce wide-ranging customized products or services at low volumes.
This strategy is suited to less complex, less capital-intense technologies.
2. Product- or service-focused strategythis strategy is applied in
companies that produce a narrow range of standardized products or
services at high volumes. It is concerned with making materials or
sequencing value added activities through integrated work centers.
3. Customer-focused strategywith the strong emergence of total quality
management (TQM), this strategy is applied when it is important to
integrate the voice of the customer throughout the processes in the
company. These could include consideration of customer needs from the
design stage until after the sale and including after-sale services.
These three focuses require different management approaches,
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employee skills, and resource intensities!

FINANCIAL STRATEGY
Financial Strategy of the firm is concerned with the planned use of financial resources and their integration with the
business plan. Relevant financial strategies must include new scorecards that take into account the changing
economy and the global market. Simple, quantitative performance indicators should drive the financial strategy.
These performance indicators include: customer service, inventory turns, quality, etc.

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PRODUCT DEVELOPMENT STRATEGY

The product development plans are concerned
with the dominant technologies employed by the
business and the way the evolve over time. If
technology trends can be identified, they will
drive product and process changes and guide
product improvement, cost reduction, and newproduct proposals.
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Waste in Product Development

Waste Category
Defective Products
Over Production
Excessive Inventories

Example

Implication

drawing or code errors

work does not match customer needs

excessive changes, scrap

rework, scrap, warranty

working w/ incomplete requirements

not using standard parts and subs
extra software features
projects desired future business
work-in-process exceeds capacity
partially done work

queue time drives lead-time

no re-use of knowledge
drives supply chain variation
long lead-time, rework
investment not realized

Excessive Motion

excessive engineering changes

requirements change impact design
moving info from one person/group to another

barriers to adding value

capacity consumed by rework

Excessive Processing

unnecessary items specified

too many approvals required
too much paperwork

ineffective use of skills

no decision rules
drives rework and inflexibility

excessive approvals and controls

process monuments
task switching on multiple projects

queue time, work-a rounds

batch processing, no flow

workload capacity
excessive multi-tasking
delays due to reviews/approvals/testing
deployment/staffing/workload
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project sits for next event

not cost effective
inefficiencies built-in

Transportation

Waiting

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Design For Six Sigma Application

Product Development Process

Phase 1
Pre-concept

Phase 2
Concept

Phase 3
Product
Definition

Phase 4
Detailed
Design

Phase 5
Integration
& Test
Validation

Phase 6
Production &
Operation

CustomersNeed

Cycle Time and Cost Reduction

Business
Objectives

TECHNICAL
REQUIREMENTS
LIST

Lean Product Development

Supplier Rationalization

Design for Six Sigma

Manufacturing Process
Control

Quality Improvement
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MARKETING STRATEGY
Marketing strategy, like all functional strategies, is derived from the corporate
strategy. Four of the most important issues dealt with in marketing strategy
are:
1. Determining the market segment plan (Select the product market area,
Identify the needs of potential customers, Match needs with market segment
characteristics, Profile each segment)
2. Developing market niches (Niches are based on a common set of
customers with a common set of preferencesin todays environment,
marketing strategy is focused on market niches)
3. Completing a competitive analysis (look at three forces: The existing
competitive rivalry, The bargaining power of both suppliers and buyers, The
threat of new entrants or substitutes in the product or service market)
4. Increasing the market share (Often the larger the market share, the greater
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the profitability of the firm)

CHARACTERISTICS THAT CREATE A COMPETITIVE ADVANTAGE

A firm can compete on one or a combination of the following, although an

organization can effectively focus on only one or two at a time.
Price (lowest price)
Quality
Delivery speed
Delivery reliability
Flexibility
Product designtechnology, features/option, range
Serviceafter-sale and internal
Note: for the strategic advantages listed here, superiority is determined in
comparison to competitors in the same market niche.
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THE WAY TO ACHIEVE COMPETITIVE ADVANTAGE

TOTAL QUALITY MANAGEMENT (TQM)

LEAN ENTERPRISE (LEAN MANUFACTURING)
SIX SIGMA
LEAN SIX-SIGMA (LEAN-SIGMA)
ETC

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Quality Initiatives
??????
Lean Sigma
Six Sigma Quality
Lean Manufacturing
ISO9000:2000
9000:2000
ISO
Supply Chain Management
Total Productive Maintenance
Malcolm Baldrige National Quality Award

Theory of Constraints
Reengineering
Continuous Improvement/Kaizen
ISO 9000 Standards
Quality Circles
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Statistical Quality Control

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Contact:

The End

Vincent Gaspersz
Phone: 0251-332933 or
0813-1940-6433
E-mail: vincentgaspersz@yahoo.com

SMARTER
Specific Goals
Measurable
Achievable
Result-oriented
Timely
Empowerment
Reward & Recognition

Smarter:
Shorter Cycle Time
Smoother processes
Simpler rules or procedures

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BIODATA
9 Prof. Dr. Vincent Gaspersz, CQE, CQA, CMQ/OE, CSSBB/MBB, CFPIM, QMS-A
9 Professor (Guru Besar) Total Quality and Operations Management pada Program
Magister Manajemen (S2) dan Doktor (S3) Universitas Trisakti, Juli 2002-sekarang
9 Magister Sains Statistika Terapan IPB, Sep 1983- June 1985
9 Doktor Teknik Sistem dan Manajemen Industri ITB, Jan 1988- Sep 1991
9 Doctor of Science in Management of Engineering and Technology, Southern California
University for Professional Studies, 1998-2000
9 American Society for Quality (ASQ) Certified Manager of Quality and Organizational
Excellence (CMQOE), USA, March 2006
9 American Society for Quality (ASQ) Certified Quality Engineer, June 2006
9 International Quality Federation (IQF) Six Sigma Master Black Belt, USA, August 2005
9 ASQ Certified Six Sigma Black Belt, Certified Quality Auditor, RABQSA QMS Audior
9 Certified Quality Auditor (CIQA), Novo Quality Services (NQS) Singapore, Sep 1994
9 Certified Fellow in Production and Inventory Management (CFPIM), the American
Production and Inventory Control Society (APICS) USA, April 1998
9 Anggota Senior dari the American Society for Quality No. 00749775 sejak Feb 1994 sekarang
9 Anggota Senior dari the American Production and Inventory Control Society No.
1023620 sejak June 1995-sekarang
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BIODATA
Pengalaman dalam Bidang Konsultasi dan Pelatihan di Industri (Perusahaan)

1. Menjadi Koordinator Pelatihan merangkap Instruktur dan Konsultan dalam

Bidang Manajemen Industri dan Kualitas pada Pusat Pelatihan Salim Group,
1991 - 1992.
2. Menjadi Manajer merangkap Instruktur dan Konsultan dalam Bidang Manajemen
Industri dan Kualitas pada Pusat Pelatihan Gajah Tunggal Group, 1992 - 1996.
3. Menjadi Instruktur dan Konsultan Utama dari Gramedia Pro-Q, Lembaga
Pelatihan dan Konsultasi Kelompok GRAMEDIA, Jakarta, Sejak 1997 - 2003
4. Bekerja sebagai Instruktur dan Konsultan Profesional Mandiri (Independent
Instructor and Consultant) dalam Bidang Manajemen Industri dan Kualitas sejak
Juni 1996 2003 di Indonesia
5. Principal Consultant & Senior Coach dalam bidang Strategic Planning, Lean
Enterprise, Quality Management System, and Integrated Performance
Management System of MBNQA, Lean, Six Sigma and Balanced Scorecard,
yang bertempat tinggal di Vancouver, Canada, 2003 2005.
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BIODATA
Pengalaman Keterlibatan dalam Industri:
1.

Sebagai Anggota Tim ISO 9000 pada Perusahaan-Perusahaan dalam Lingkup Gajah Tunggal Group 1994 1996 Untuk Membantu: PT Gajah Tunggal, PT Filamendo Sakti, dan PT Gajah Tunggal Prakarsa. Perusahaanperusahaan ini telah memperoleh sertifikat ISO 9002.
2. Membantu Mengintegrasikan Total Quality Management (TQM) dengan ISO 9002 pada PT Erna Djuliawati
Plymill, Kalimantan Barat, 1997.
3. Membantu Pembenahan Sistem Produksi pada PT Intinusa Rimbasari, 1998.
4. Membantu Meningkatkan Efisiensi Industri Melalui Pembenahan Standard Operating Procedures (SOP) pada
PT Indah Kiat Pulp & Paper Tbk, 1998.
5. Membantu menetapkan sistem manajemen industri dan kualitas pada PT Citra Serayu Mas Woodworking
Industries, 1999-2000
6. Membantu Perumusan Metode Pengukuran dan Evaluasi Teknologi Pertamina, 2001; dan Penyusunan Buku
Pengukuran Indeks Produktivitas Pertamina, 2002.
7. Menjadi Instruktur dalam Berbagai Topik Manajemen Kualitas dan Strategik pada Pusat Pelatihan Pertamina,
Jakarta sejak: 2000-sekarang.
8. Sebagai Pembicara (Instruktur) Tamu pada Lembaga-lembaga: LPPM, Kursus Kader Pimpinan PertaminaYayasan Patra Cendekia, Pusdiklat Pemda DKI Jaya, PT Astra International Tbk, PT Showa Indonesia
Manufacturing, PT Asuransi Astra Buana, PT PLN UBS P3B Jawa-Bali, PT Telkom, PT Pertamina (Korporat),
Badan Pendidikan dan Pelatihan PT Pertamina, PT Indah Kiat Pulp and Paper, PT BRI (Bank Rakyat
Indonesia), PT Semen Gresik, dan berbagai seminar publik maupun in-house (dalam perusahaan) sejak 1996
sekarang.
9. Menjadi Direktur Lean Enterprise dan TQM pada Garibaldi Industries, Inc., Canada, 2003 2004.
10. Principal Consultant dari Penaga Consult, Perusahaan Training dan Konsultansi di Canada, Malaysia dan
Indonesia, 2005-sekarang
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