Archive for November, 2013

The gender gap in Supply Chain professional

November 21st, 2013


The 2013 Annual Survey of the Canadian Supply Chain Professional asked respondent about their compensation, their working conditions, their industries and the companies that employ them, and this year 2,177 people across the country responded. The survey was conducted on behalf of the industries three leading magazines MM&D, PurchasingB2B, and CT&L—and SCMA, formerly PMAC. The statistics are considered accurate +/- 2.1 percent, 19 times out of 20.
Perception versus reality
The majority of male respondents—79 percent to be exact—believe their female counterparts are receiving equal pay for equal work. By contrast, 55 percent of female respondents say women aren’t paid the same.
It turns out the women are right. For men, the 2013 overall average salary is $94,492 (which represents a 3.6 percent increase from the $91,181 they made in 2012). For women, the average salary is $77,842, which is 3.7 percent higher than the $75,033 they earned last year.
This means women earn only 88.6 percent of the overall average industry salary and 82.4 percent of what their male co-workers get.

Among MM&D Readers, in 2013 men take home $99,580 while women earn 83.3 percent of that figure, which is even lower than the industry average. Their mean salary is $82,930.

It doesn’t even matter how long a woman has been in the supply chain field. In every stage of their careers, women make less than men. For those just getting their start in the industry—employed five years or less—the mean salary for women is $59,849, and for men it’s $65,479, a difference of $5,630. This is a significant step back from gains made by this cohort in 2012 when the salary difference in this group was only $437 ($56,127 for men and $55,690 for women).

Those in the next stage of their careers (employed in supply chain for between six and 10 years) also saw the wage gap jump from a difference of $3,864 in 2012 to a $6,318 difference in 2013. In 2013 men in this group earn $76,517 while the women earn $70,253. In 2012 the men earned $71,395 and the women,$67,531.
Conclusion: Pay equity is guaranteed in Section 11 of the Canadian Human Rights Act. If it has been enshrined in law as a human right, why will women soon be forced to bargain for it?

The scope of MRP in manufacturing

November 7th, 2013

The basic functions of an MRP system include: inventory control, bill of material, processing, and elementary scheduling. MRP helps organizations to maintain low inventory levels. It is used to plan manufacturing, purchasing and delivering activities.
“Manufacturing organizations, whatever their products, face the same daily practical problem – that customers want products to be available in a shorter time than it takes to make them. This means that some level of planning is required.”
Companies need to control the types and quantities of materials they purchase, plan which products are to be produced and in what quantities and ensure that they are able to meet current and future customer demand, all at the lowest possible cost. Making a bad decision in any of these areas will make the company lose money. A few examples are given below:
• If a company purchases insufficient quantities of an item used in manufacturing (or the wrong item) it may be unable to meet contract obligations to supply products on time.
• If a company purchases excessive quantities of an item, money is wasted – the excess quantity ties up cash while it remains as stock and may never even be used at all.
• Beginning production of an order at the wrong time can cause customer deadlines to be missed.
MRP is a tool to deal with these problems. It provides answers for several questions:
• What items are required?
• How many are required?
• When are they required?
MRP can be applied both to items that are purchased from outside suppliers and to sub-assemblies, produced internally, that are components of more complex items.
The data that must be considered include:
• The end item (or items) being created. This is sometimes called Independent Demand, or Level “0” on BOM .
• How much is required at a time.
• When the quantities are required to meet demand.
• Shelf life of stored materials.
• Inventory status records. Records of net materials available for use already in stock (on hand) and materials on order from suppliers.
• Bills of materials. Details of the materials, components and sub-assemblies required to make each product.
• Planning Data. This includes all the restraints and directions to produce the end items. This includes such items as: Routing, Labor and Machine Standards, Quality and Testing Standards, Pull/Work Cell and Push commands, Lot sizing techniques (i.e. Fixed Lot Size, Lot-For-Lot, Economic Order Quantity), Scrap Percentages, and other inputs.
There are two outputs and a variety of messages/reports:
• Output 1 is the “Recommended Production Schedule” which lays out a detailed schedule of the required minimum start and completion dates, with quantities, for each step of the Routing and Bill Of Material required to satisfy the demand from the Master Production schedule(MPS).
• Output 2 is the “Recommended Purchasing Schedule”. This lays out both the dates that the purchased items should be received into the facility AND the dates that the purchase order or Blanket Order Release should occur to match the production schedules.
Messages and Reports:
• Purchase Order- An order to a supplier to provide materials.
• Reschedule notices. These recommend cancelling, increasing, delaying or speeding up existing orders.