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Monthly Archives: January 2015

Price with a meaning..

31 Saturday Jan 2015

Posted by mkastley in RVA Updates

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CEPQ, customer experienced product quality, Price with a meaning

price with a meaning

When talking about the price of a service or product we all know the maxim ‘you get what you pay for’. Of course there is no reality to this! No matter how low the price, if it doesn’t do what it says on the tin or is actually very poor doing it, then its expensive!!

When I worked for IKEA the big statement when designing, sourcing, working with factories and communicating with customers was ‘low price with a meaning‘. Just to have a cheap product with poor functionality, design, quality and ethically unsound has no meaning!! Everything has to have a value no matter the price.

How can organisations achieve low price with a meaning? As with all things it requires the virtuous circle of the following:

The Price: Achieving a low price requires a concentration on high volume, with a high degree of industrialisation to secure the most efficient production process. Raw materials are secured in terms of sourcing, specification, availability and all within a transparent supply chain..

Supply Chain Agility: A forecast and order planning system that shrinks the distance between the point of sales and the factory. Regular shipments with stock having a status of evil! Implementing a supplier matrix set up of 70-30. Split the sourcing between two factories, securing high production utilisation at the 70% factory and the rest as a security back up at a newer supplier being developed for future business.

Secure Product Quality: Please see my previous  article CEPQ – Customer Experienced Product Quality

Socially and Environmentally Assured: Secure the following basics:

  • Transparent and well supervised supply base including sub suppliers and contractors to the direct vendor factories.
  • Secure legal, clean and efficient factory supply.
  • Well managed labour in the supply chain – no child labour, no excessive hours etc..
  • A legal and well paid workforce securing an efficient and motivated factory.

The Product Design: See my previous LinkedIn article Democratic Design..

Everything that is made and supplied must have a meaning. It should be part of a company’s intrinsic value whether they are in the low volume/high price or the mass volume competitive market. Its all part of Good Business Growth…

Whatever the market, products have to be competitive, design and quality assured, produced and supplied by companies that care! As Apple Inc and IKEA have proven; customers buy why and not always the what !!

Buyers need to assure further down the supply chain….

23 Friday Jan 2015

Posted by mkastley in RVA Updates

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good business growth, sub suppliers, supply chain responsibility

Linkedin sub supplierTransparency and management custody down the supply chain are very important in today’s business – from avoiding horsemeat in processed food to eliminating clothing production in structurally dangerous factories. Knowing where products come from is paramount to secure:

  • Final user accountability (the guilt free purchase for Mrs Jones)
  • Legal compliance
  • Quality, service, code of conduct and price assurance

Sub suppliers (organisations supplying the direct suppliers) need to be managed and assured by Retailers, Traders and Producers. This has been and still is a daunting prospect, especially when the numbers involved take a steep exponential curve across various geographical locations. Typically a retail company’s vendor base can move from a hundred direct suppliers to thousands of sub suppliers. However, no matter the numbers and logistics involved, this issue need to be addressed and secured with the following:

  • Be a major part of the buyer- supplier relationship management
  • The Supplier takes responsibility for their suppliers
  • The Buyer is clear on the sub supplier requirements i.e adherence to its own specification or industry standards.
  • The Buyer has a regularly updated database of suppliers and sub suppliers..

To manage and handle sub suppliers in a practical and concise way Buyers should consider:

  1. The sub supplier requirements are a ‘lite version’ of their full code of conduct, quality specification and delivery conditions – secure the absolutes of customer, legal and company demands eg child labour, working hours, process control and tolerances etc..
  2. The Buyer and Supplier agree on the mechanics of how sub suppliers shall be checked and managed. eg auditing, verification material, designated factories and follow up reporting.
  3. The Buying Team add Sub Supplier management to their visit and meeting agendas with their vendor base.
  4. Where practicable, the buyer follows an industry standard to make it more manageable for the suppliers and the rest of their customer base.
  5. It should not just be an ethical requirement but also include quality assurance, production planning and price development.

The auto and aerospace industry have been working with and down their supply chain for many decades. They are working in high value, scientific/engineering industries with limited number of sub suppliers. The challenges in a consumer led, general merchandising, clothing and food supply industries are certainly different and probably not so exacting as science and engineering but they are no less important.

In my experience, the toughest part of implementing sub supplier management is the initial denial – ‘its not our responsibility and the numbers involved are huge, it cannot be done’. However, it can be achieved through a practical approach and management relationship between the buyer and direct supplier. The acceptance on the importance and responsibility to manage further down the chain secures the business for all stakeholders, including the final user – Mrs Jones!!

Can we help you and your business to secure further down the supply chain!! Please contact us for an initial discussion..

Mark K. Astley Robert Vernon Associates Ltd.

Quality is defined by customer experience..

13 Tuesday Jan 2015

Posted by mkastley in RVA Updates

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CEPQ, customer experienced product quality, Quality Drivers, Robert Vernon Associates, RVA

CEPQ_LinkedIn Banner

When boiling down to the main parameters for a business to succeed, it has to secure the following; competitiveness, availability, sustainability, good product design and quality. This means a customer offer that provides a well designed, competitively priced product on the store/warehouse shelves, supplied by a company that cares about society and the environment. And of course great product quality?

How can a company move quality further into the business, engaging all operations and not just the Technicians and Quality Managers. Quality is an essential part of good business growth..

Over the last 30 years there have been many quality improvement programmes and concepts developed and implemented. This has seen the use of science/maths equations, black/green/yellow belts and manuals full of procedures and directives. These improvement programmes have made great strides in improving service and product quality. However, they have been and are essentially the tools for quality technicians and managers.

As a business driver Quality needs to be concise and standardised for a more holistic understanding and participation by everybody. This starts with understanding the customer, it is only their experience of a product/service quality that determines success or failure. The best  approach to customer quality I have worked with are the following 4 definitions of Customer Experienced Product Quality – CEPQ:

  1. Durability and Function: What is the performance of the material and components to secure that the product does ‘what it says on the tin’.
  2. Safe to Use: What shall be the product’s chemical and substance content. What is the security of small and loose parts.
  3. Well Designed Product: Clear design briefs and specifications. If the product is part of a range, is it modular e.g. correct dimensions, consistent and true colour/shades.
  4. Customer Friendly: What is the after use appearance, are the buttons, switches etc convenient. Is the packaging sufficient and recyclable. Assembly and installation is easy for the customer.

Using the above 4 CEPQ headings, a company can devise their own points to secure according to their customer’s profile, operational and product range requirements. Once devised, these CEPQ points are then used as integral inputs for design/development, manufacturing and quality assurance management.

Irrespective of which Quality management systems a company employs i.e. ISO 9000, Six Sigma, TQM, Lean Manufacturing etc. – Quality is defined by the customer experience. Therefore CEPQ shall drive all these systems and similiar used in the supply chain.

Everything is connected; achieving a competitive price, secured availability at point of sale and a sustainability for the product and the company is difficult without assured quality. Implementing and securing good Customer Experienced Product Quality is vital to secure for any company’s Good Business Growth..

RVA helps business to achieve Good Business Growth, please contact us for further details and discussions on how we can work together.. Mark K. Astley – Robert Vernon Associates Ltd.

Democratic Design for Good Business Growth…

05 Monday Jan 2015

Posted by mkastley in RVA Updates

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40 dollar chair, action, Apple Inc., democratic Design, good business growth, Robert Vernon Associates

Democratic Design_aIt starts with designing a great product at a low price. There is skill in designing an architect’s chair for 4000 dollars, but the greater skill is in designing a chair of fantastic form and function for 40 dollars!!

Democratic Design is all about giving the majority of us in the Developed world a great quality product at a low price. Good form and function should not only be for the rich.

In the Developing world Democratic Design is about using the right sustainable materials and production techniques that secures good working conditions, wages and environmental security.

The drivers to secure democratic design are:

Design: Adapted to high volume and efficient production with innovative design – aiming to achieve a low priced product.

Raw Materials: Choosing the right materials and processing techniques to secure a sustainable and low cost supply.

Production: Safe and compliant working conditions with no danger to the environment. An efficient and effective factory.

Quality: Conforms to the requirements and specifications.

Installation: Good final assembly and installation techniques at the product’s point of use – a vital step in the design process.

It is not an easy path to take. Its about achieving a balance in the above drivers. It’s not always evident in cheap brands and is never apparent in the exclusive high price designer products. The big name fashion designers are celebrated on the cat walks and in glossy magazines, but the real heroes of design are those that can achieve Democratic Design.

If you would like to know more about this and Good Business Growth, please contact us for an initials discussion on how we can help your business..

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