Dinesh Divekar
Business Mentor, Consultant And Trainer
Nashbramhall
Learning & Teaching Fellow (retired)
Pon1965
Construction

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Can Production department work under Supply Chain? or it must be a separate department?
From Pakistan, Lahore
Dear Saad Masood,

Supply Chain Management is end-to-end process. We need to connect supplier's suppliers to the customers. The chain is as below:

Supplier's supplier --> supplier --> procurement --> production --> warehouse --> Distributors or dealers (if any) --> Customer or end user

Making production manager to report Head SCM is quite novel concept. I don't find anything wrong in that. In fact it would bring seamlessness in the operations. Head SCM will be able to identify delay in operations and inventory blockage in every process or sub-process.

On the flip side, you need to have Head SCM who knows the operations very well. Secondly, he must be very good at mathematical and statistical methods as well. Thirdly, overall he needs to be mature person. Else this model may be a flop also.

I request you to raise this query in another networking forum World's Largest Professional Network | LinkedIn In this group, there are several forums like "Supply Chain Today", "Procurement Professionals", "SCM Experts" etc. You will get replies from SCM experts.

Ok...

Dinesh V Divekar

Beware of false knowledge; it is more dangerous than ignorance.

From India, Bangalore
Never come across such reporting of production under Supply chain. what Divekar told above sounds good idea. Pon
From India, Lucknow
Dear Saad
Dinesh has given you an excellent response. May I know what prompted you to raise this question? Do you have a Supply Chain Manager in Your organisation? Is (s)he senior in rank compared to the Operation's Manager. Without knowing your organisation structure it is difficult to give you a concrete answer.
Kindly take a look at OPERATIONS DIRECTOR / SUPPLY CHAIN MANAGER JOB VACANCY found at Executive Jobs, Management Jobs & Executive Recruitment

From United Kingdom
Dear Rajesh,

There are two issues in your post, one is your choice of words and second is your viewpoint.

If you read correctly then you will find that Mr Simhan has not given any advice as such. Rather he has asked clarifying questions and he has given few links. Therefore, you could have been little less haughty while giving your this post.

Coming to your viewpoint. In fact I also did not see Production reporting to Head SCM. But then this is what innovation is. What we did in past if we continue to do that then probably I would say that we have not matured as such. If you take stock of the industry then you would find that production processes have improved lot.

A real supply chain demands study of every process and finding out how to reduce cycle time and blockage of inventory at any stage, be it inventory of raw materials or inventory of finished goods.

Secondly, you have written that "What will happens if SCM head pressurize and Production head will give excuse that production done but will take 15 days for qualiy check.". Of course much depends on the type of industry and type of product however, after production if it were to take 15 days for quality check, then I would say that company's production processes are in infancy. They are yet to come to terms with the challenges of 21st century. I have spoken with many SCM experts. They were of the view that barring few exceptions, India is way behind in SCM. We still have vendors and they are yet to become our suppliers. Against this backdrop, the example that you quoted is befitting one for run of the mill company.

In my previous post I have written that to adopt this model, the Head SCM has to show lot of maturity. In addition to this now let me say that if this model were to be adopted then that organisation also should be mature enough. Those who have production processes of 20th century have no room to adopt this model.

Mr Rajesh, the world has moved ahead in a big way. Now buyers are asking commitment of their suppliers for non-stoppage of production line. The automotive industry has shown to the world, how SCM can evolve. Then what is wrong if we adopt this model?

Lastly, why we should not be first-mover in doing something? Why we should always imitate practices of Japanese or Americans or Europeans? Why not to give try and find whether we can serve our customers better or sustain competition? Dismissal of any idea summarily without its evaluation, how far is it justified?

In the last year a long article was published in Economic Times about Wipro Technologies. This IT major adopted Toyota Production System (TPS) in software development. Hitherto software engineers had frowned adopting any method that was from manufacturing industry. But then Wipro defied the industry trend and took first-mover advantage. Who is reaping benefits now? It's Wipro and not those who doubt innovative practices!

Thanks,

Dinesh V Divekar

From India, Bangalore
Dear nashbramhall,
Actually i'm designing an organizational structure of a company dealing in Bakery Products. They have a production department, rather, a whole factory of production of bakery products. Right now their is only a production manager. That is why i was asking about the role of SCM & Production.
as per my knowledge, under SC Dept, there are following departments
Procurement, Store, Warehouse, Distributors & Retail
Now you suggest here!

From Pakistan, Lahore
Thank you Saadfor clarifying the situation. As shown in the link given in my previous post, it's quite acceptable to do what you intend to do. As you are creating a new position which is higher than the present Operations manager, you write the job specification accordingly. I hope the new position that you create is such that the person holding it reports directly to the CEO.
I hope people understand the need for giving all the information at the outset, from following this thread.

From United Kingdom
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