Effective supplier integration in a multi project organization
The case for how to improve projects’ on time delivery in global manufacturing enterprises by effective selection and integration of suppliers into projects
This keynote will address a very common issue in any manufacturing industry – how to manage a project on time, which assumes setting a challenging but realistic project launch date target. The author blends in his experience from different industries trying to argue the case for existence of some systemic common failures in selecting and integrating a supplier in a project which will result in delays. As Milos’ main experience is related to New Product Development projects (NPD) his argumentation will predominantly have NPD challenges in mind; however the message should be considered universally – be valid for any project type.
The main issue issues related to suppliers’ involvement in projects can be split into the following categories:
- Lack of understanding of project objectives (by customer project team) and identification of the need for a certain supplier with certain capabilities to be part of that project
- Lack of knowledge of suppliers (current or potential) and their capabilities
- Complexity of managing a supplier in a matrix structure (commodity strategy vs. BU strategy)
- Slow and bureaucratic way of selecting new suppliers
- Poor communication with supplier during the project
- Lack of project governance leads to lack of clear responsibilities and deliverables
- Accepting supplier quotes and promises for granted – project plan failures
The second part of this paper wants to address the remedies leading to more effective supplier integration in projects. The following will be discussed:
- Supplier selection process must include specific requirements from suppliers as partners in that project
- Supplier must be sub-categorized according to its capabilities
- Invisible boundary between the project team and the supplier must be destroyed
- Communication lines with the supplier must be clear from project start. Purchasing must not be the middle between the engineers otherwise the message will be lost in translation.
- Improved project delivery strategy implies that you work with selected development partners on developing the product and in parallel you engage with you preferred manufacturing partner who will scale up production
- Early sourcing strategy leads to making early sourcing decisions and helps integrate suppliers from the very beginning of the project
Milos Tipsarevic MSc. CEng IMechE, London UK 10:15 - 11:15
Independent Management Consultant and Project Manager
Milos is recognized as a highly strategic and analytical Project Manager and management consultant with strengths in improving revenue and profitability by delivering creative and innovative New Product Development Projects (NPD), enhancing processes to shorten lead times by implementing Kaizen, Agile and Lean Six Sigma methodologies and introducing cost saving initiatives on a global basis by influencing suppliers to apply new tools and techniques.
Milos has had over 20 years of work experience from the automotive, logistics and energy transformation industries. He worked for Ford, Visteon, CHEP and Danfoss. This keynote will deliver his blended experience of managing supplier base in projects from all 4 companies. Throughout his career his main area of responsibility was in new product development arena but he also has had a distinguished experience in working with suppliers and working on improvement of supply chain capabilities (quality improvement etc.).
In his capacity as a Ford and later Visteon product development engineer he worked with large tier 1 and tier 2 suppliers who were partners in development of new technologies and products. He later joined CHEP as a global engineering manager where he was responsible for outsourced development of plastic packaging. In his position of a senior consultant in Danfoss Milos was engaged in helping improve time to market in New Product Development (NPD) projects and was also responsible for improving integration of suppliers in NPD.
Milos is currently working as an independent management consultant advising clients on product development and supply chain issues. Milos holds Master’s Degree in Advanced Mechanical Engineering from Imperial College in London UK and he has been a Chartered Engineer with the Institution of Mechanical Engineers since 1999. He lives in London.