ASCI Ethics Management Program

Given the importance of industry participants consistently demonstrating ethical behaviour in building credibility and establishing an enduring professional framework, the importance of a comprehensive and robust Ethics Management Program for the industry cannot be understated.

Together with Industry Risk Review and Body of Knowledge, the ASCI Ethics Management Program is a core component of the ASCI Professional Accreditation Scheme. Under this scheme, individuals register as professionals and practitioners. It is the only program of its kind in the supply chain domain in Australia.

The ASCI Ethics Management Program is unique as it consists of the ASCI Code of Ethics which is supported by a comprehensive complaints management process that allows complaints to be submitted by external parties regarding breaches of ethical behaviour or business practices of a registrant. The process enables the complaint to be heard, with equitable rights of appeal for the individual in accordance with the legislation. The scheme also includes scope for a sanction or penalty and supportive remediation processes.

With its in-depth work on Professional Accreditation Scheme supported by the Ethics Management, Industry Risk Review and Technical Review Committees and rigour in the registration process, ASCI clearly differentiates itself as a Professional Accreditation Body, rather than simply being an traditional industry peak body.

Upon registration, candidates are required to commit and submit to the Ethics Management Program which ensures full commitment from the registrant and oversight and educational support by the ASCI Ethics Committee.

The details of the ASCI Ethics Management Program is available on the ASCI website at https://www.asci.org.au/ethics-committee

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Be a Supply Chain Ambassador

Japanese Business Colleagues

Guest Blog: ASCM CEO Abe Eshkenazi, CSCP, CPA, CAE

“In the first three months of 2019, employees got so much more work done that they smashed productivity forecasts,” writes Alexia Fernández Campbell for Vox Media. “That’s great for businesses (they earn more money) and for the economy (GDP grows faster). The problem is that companies aren’t rewarding their employees for the extra hard work.”

A recent Gallup World Poll bears out the author’s conclusions, finding that 85% of workers are displeased with their jobs.

As I read this article and considered that unfortunate statistic, I couldn’t help but reflect on ASCM’s brand new 2019 Supply Chain Salary and Career Survey Report. With so many people feeling underappreciated and underpaid — in fact, there were a record number of strikes in the United States last year — this survey reveals that supply chain salaries are on the rise and industry professionals truly love their jobs.

The median supply chain salary in 2018 was $80,000, a 3% increase over 2017. Even more importantly, an overwhelming majority of respondents say they are very or extremely satisfied in their jobs.

This report confirms what all of us at ASCM and every supply chain professional already know: Supply chain careers are rewarding, both professionally and personally. We at ASCM are also proud to discover that the median salary for people with at least one APICS certification is 25% higher than those without. And, in addition to the power of APICS education to advance careers, our initiatives related to women in supply chain are paying off: The gap between men’s and women’s salaries is narrowing, especially for professionals under 40, where the difference is less than $1,000.

Put the findings to work

As we continue to face a vast talent gap, this report highlights numerous opportunities to attract more people to the supply chain. But ASCM can’t do it alone; we need your help.

Begin by talking to the young people in your life about why you are passionate about what you do. Describe your job and how it has a positive influence on the entire business, the lives of your customers and the communities in which they live.

Explain why you look forward to staying in supply chain for years to come (93% of respondents believe they will stay in the field; 44% say they definitely will).

And tell them about the work-life balance you enjoy (nearly all respondents receive holiday pay, and the majority receive three weeks or more paid time off, as well as flexible work schedules).

Then, take a moment to download the survey and post it in your social channels. Share something that you’re especially excited about with the hashtag #lovemyjob. As more and more people outside the industry experience our enthusiasm, they will see that supply chain professionals are highly sought after by employers, make a difference at our organisations and have truly fulfilling careers.

To find out more about APICS certification, visit Australasian Supply Chain Institute – the Premier Channel Partner – for Australian Semester schedules and prices.

Lean into value streams for happier customers

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Imagine you could achieve:

  • 1,000 discrete insights to improve processes and supply chain outcomes
  • US$1.8 million in operating cost savings
  • 52% increase in lean capability review scores
  • Positive effects on the customer experience, operational capabilities, compliance, and the bottom line

Well that’s what has happened at Johnson & Johnson (JnJ) whose idea it was to break from some of the existing inertia where people believe that lean was not really applicable to them or was really just for the sake of generating some cost improvements.

JnJ wanted to build competency in using lean as an approach to create value. You see, they already had goals and objectives and things they wanted to do to create value for customers. But what they needed was a potent methodology and approach to attack these problems to help achieve those goals and objectives.

Lean, they felt, fit that bill because it helped marry up the goal and then to create an approach to define, measure, analyse, improve and control that problem.

Although the overarching emphasis of these lean projects was on waste reduction in end-to-end value streams, many of the initiatives paid specific attention to value and process enhancement.

The value stream consists of all the activities or processes necessary to deliver a product or service to the customer. Value stream mapping is a technique using flow charts to identify the key elements and activities in the process and flow of information. In value stream mapping, each activity is identified as either a value- or non-value-adding activity. Lean management seeks to minimize and eliminate non-value-adding activities from all processes.

For instance, a customer-facing, collaborative project that reduces the overstock and subsequent destruction of seasonal products may not result in momentous cost savings for the manufacturer given the specific terms of sale, but it could create value for the customer. Similarly, a compliance-oriented project may seek to assess historic non-compliance.

How did they learn the methodology?

APICS Certified in Production & Inventory Management (APICS CPIM). JnJ picked individuals who they thought had the drive and had the interest and applying some of these tools. They knew that the results were going to be there. They just need a couple of people to be the first to kind of “jump out on the dance floor” and help them demonstrate the value of this methodology.

They invested in APICS CPIM training and were there every step along the way as the individuals achieved their certifications. From there, they were able to share their stories and were able to share the results and the impact with their immediate team. It’s amazing what first hand results you can achieve using this approach.

JnJ used the APICS Body of Knowledge with a more principled approach. So, in addition to the tools and the concepts and the practices that you would employ to attack a problem or an opportunity, they wanted to use some of the body of knowledge and the principles to give a sense of what value is and how to go about pursuing it.

Did you know that lean management:

  • is applied not only in production but across the entire enterprise
  • has broad applications in the service industries
  • involves the systematic identification and elimination of waste throughout the entire value stream
  • includes time and inventory in its measurements
  • offers a one-piece flow of the product or service.

According to APICS, there are seven categories of waste:

  • overproduction—producing in excess or too early
  • waiting—queuing delays around production areas
  • transportation—unneeded movement of materials in and outside the facility
  • processing—poor process design
  • movement—staff activities that do not add value
  • inventory—idle stock accumulating cost without necessarily providing value
  • defective units—scrapping or reworking products and components.

These and other aspects to the methodology were learned and applied to the JnJ business during the APICS training. It was wonderful to see the impact that APICS had on their confidence and their competencies!

If you would like to know more about this case study, visit the APICS website here and watch the video featuring an exclusive interview with Michael Morand, CFPIM, supply chain manager at Johnson & Johnson Health Care Systems from which this blog has been transcribed.

If you are an Australian company wanting the same results for your organisation, contact Australasian Supply Chain Institute today at enquiries@asci.org.au for quotations and study options.

 

 

 

Are we ready for Industry 4.0?

Guest Blog: Rob Stummer, CEO, Australasia, SYSPRO

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With all the discussion around Industry 4.0, how ready are we for it in this region and how many manufacturers have fully embraced it? It’s widely agreed that manufacturing has experienced a decade of productivity stagnation and demand fragmentation and the fact is that this level of innovation is long overdue. It’s been proven that the Australasian organisations that have taken Industry 4.0 innovation to scale beyond the pilot phase have experienced unprecedented increases in efficiency with minimal loss of employees.

The main issue reported by McKinsey and the World Economic Forum is that most companies appear to be stuck in the pilot phase and despite all the research and evidence saying that it will lead to a sizeable increase in global wealth production, benefiting people throughout society, the Australia and New Zealand governments have not done enough to help its advancement.

Globally it is having an impact globally across multiple sectors, simplifying things by streamlining processes, reducing human labour, fostering global interconnectedness and leading to unlimited possibilities. But is Australasia really ready for Industry 4.0?

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Automation won’t take jobs

There has been a lot of scaremongering about the risk to jobs due to automation, but technology and changing consumer preferences are driving the demand for new skills and jobs. In many cases, these emerging technologies have improved processes without shedding jobs and have made businesses more competitive than they have ever been, resulting in lower prices for consumers, higher wages for employees or higher profits, leading to increased demand and more jobs.

The previous industrial revolutions have shown us that, in the long run, technology and other labour market changes have been positive for many employees, removing the jobs that nobody wants to do as they can be unpleasant, physically exhausting and dangerous or boring and repetitive.

In smart factories, the emphasis will be on adding value, and up-skilled workers will be highly sought after for their specialist knowledge and ability to innovate.

Will bots take over the world?

There are a lot of myths surrounding AI, and science fiction movies often portray it as robots with human-like characteristics taking control and using their super-intelligence against us. There’s no doubt that AI does raise a whole host of complex questions, and that the current way the industry does certain things will become defunct.

We can’t ignore the fact that the Australian manufacturers that are leveraging AI have made their companies far more efficient and productive. This is a trend that their leaders see as inexorable, and the pressure on them to adapt and compete is huge.

Automation is essential

Automation is working extremely well in several different manufacturing scenarios, particularly when finite precision is needed, in challenging or dangerous work environments, where repetition happens and when personalisation and configuration are required.

So, what does automation look like in practice in an industrial environment? There are many tasks that could be carried out by a robot; not only would they be more efficient, but also the employees could then focus on more complex work.

The real benefits of automation are what makes it truly worth the investment, including increased efficiency, reduced costs, improved safety and wellbeing for employees, due to avoiding monotony and a clear competitive advantage over manufacturers that choose not to automate. Automation is clearly the future of Australasian manufacturing and its influence will only increase as competition from China and other developing Asian nations grows.

Rob Stummer is CEO, Australasia, SYSPRO