【正文】 ales is quoting unrealistic delivery dates ? Excessive material shortage ? You are planning production you don’t have the capacity to meet ? Frequent schedule changes from mktg. ? Service parts forecasts are not recognized when planning Is this causing . . . ? missed revenue targets ? lower profits ? inability to accurately predict revenue ? Is the VP Finance concerned? ? losing customer orders ? losing customer credibility ? losing market share ? Is the VP Sales impacted? What if there were a way for you to . . . ? give sales access to mfg. schedules while they enter orders ? notify planners/buyers in advance of potential shortages ? estimate bottleneck resource loads before finalizing schedule ? show marketing the effect of a proposed schedule change ? include marketing’s service part forecast in production planning 23 Pain Sheet Pain: Inventory Investment is too High Job Title: VP Finance, Gen Mfr. (SIC 35) Our Product: Symix Mfg. Software Potential Reasons Impact Capabilities Is it because. . . Excessive obsolete inventory Inaccurate stores and WIP inventory Manufacturing is building things it no longer needs Purchasing buys long lead time materials based on their own forecasts Is this causing . . . excessive WIP inventory pressure to reduce production costs pressure to cust back production pressure to reduce purchases shortages which impact shipments Is the VP Mfg. impacted? missed customer delivery dates pressure to sell what you have inability to meet sales goals Is the VP Sales affected? What if there were a way for you to . . . Easily identify, locate and quantify obsolete inventory Easily audit and verify inventory levels Reevaluate production plans daily Find all Pos supplying unneeded material 24 Job Title: CEO Pain: Eroding Profits Reasons: Missed Shipments Weaving the Pain Chain Job Title: VP Manufacturing Pain: Missed Shipments Reasons: Shortages Job Title: Materials Mgr. Pain: Shortages Reasons: Inaccurate inventory Order changes Uncontrolled ECNs 25 Organizational “Pain Chain” Example CEO Pain: Stock price is down R1: Profits are down R2: Customer erosion CFO Pain: Profits are down R1: Revenue down R2: Cost of Mfg. up VP MARKETING Pain: Customer erosion R1: Can’t fill orders R2: Can’t sell substitute products to customers VP MANUFACTURING Pain: Cost of Mfg. up R1: Orders for products they don’t have R2: Not selling products they do have VP SALES Pain: Not meeting revenue goals R1: Salespeople taking orders they can’t fulfill R2: Can’t offer substitutes to customers DIRECTOR OF MIS Pain: Unhappy line VPs R1: Can’t deliver needed applications on time MGR. APPLIC. DEVELOP. Pain: Can’t deliver needed applications on time R1: Legacy applications still on mainframe R2: Applications are not flexible to change with business Specific capabilities of seller’s products and services will enable this person to deal with these issues, thus effecting a “beneficiary chain” up to the top of the anization. 26 Case Study “Pain Chain” Title: Pain: R1: R2: For your fictious prospect anization, create a “pain chain” between a minimum of four job titles. One of them should be a decision maker and a minimum of one of them a direct user of your products or services. Align a minimum of two specific capabilities of your offering with the reasons of the direct user(s). Title: Pain: R1: R2: Title: Pain: R1: R2: Title: Pain: R1: R2: Title: Pain: R1: R2: Title: Pain: R1: R2: Title: Pain: R1: R2: 27 Reference Story Format ? SITUATION – The situation must include the person’s job title and industry ? CRITICAL ISSUE – The critical issue is the pain of the person above. (Anxiety words and phrases are very powerful here.) ? REASONS – The business reasons for the critical issue are biased to your product. ? VISION – In the words of your customer the capabilities he/she/they needed to solve their problem “He/She/They told us they needed . . .” ? __ PROVIDED – If the “solution” is described properly above, all we have to do here is say that we (our product/pany) gave them those capabilities. ? RESULT – Specific measurement is best! 28 Reference Story ? SITUATION – Materials Manager, power supply mfg. pany ? CRITICAL ISSUE – Difficulty controlling shortages ? REASONS – Frequent engineering changes and two different bills of material (one for engineering and one for manufacturing) ? VISION – He told us he needed to be the control point for implementing engineering changes. This would allow him to simulate the impact in advance of the change. He also needed both engrg. and mfg. to operate from the same bill of material. ? __ PROVIDED – We provided him with those capabilities ? RESULT – Over three years he has had no more than 18 parts short at one time out of 3500 parts. 29 What’s It Worth to Reduce Inventory? ? Cash Inventory requires and ties up cash – Cash needlessly tied up in inventory reduces cash reserves or requires additional debt. ? Profit Carrying costs reduce profits – Carrying costs increase operating costs, which reduce profits. – Carrying costs include: ? Storage facility costs ? Staffing and handling costs ? Insu