Transcript Financial Model for Boeing, WD

Quantigate Advisors
Operations Strategy and Supply Chain Management
Business Advisory Services
Major Headlines
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Our mission and vision
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Our people
 Experience and background
 Demographics and profile
 Key attributes
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Our expertise
 Projects
 Training and seminars
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Our qualifications
 Articles and publications
 Patents
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Becoming a Quantigate Advisor
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Contact information
Our Mission And Vision
The foundation of Quantigate Advisors has been built based on an
uncompromising commitment to the success of our clients. This
commitment and our mission is consistently communicated and practiced
at all levels within Quantigate Advisors.
Our mission
Quite simply: we want to help our clients. Our success is measured by
the results of our projects, and ultimately by the success of our clients. We
feel so strongly about our mission that we offer all our clients the option to
enter performance-based fee arrangements, where no fees are paid unless
certain objectives are met within a pre-determined date.
Our Vision
Our ultimate vision is to be recognized and respected as the premier
consulting company specializing in operation strategy and supply chain
management.
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Our People
Experience and background
Quantigate Advisors possess a wide range of experiences and backgrounds. We are a
diverse group and an interesting mix of people, to say the least. Our collective past covers:
nuclear power plant designer, financial and operation analyst at numerous manufacturing
companies, operation strategist, professor of visual and performing arts, big-5 managers and
senior managers, AT Kearney senior manager, logistics and transportation managers,
business planners, marketing managers, warehouse and distribution managers, inventory
analysts, general manager of transportation, etc. Even though everyone at Quantigate
Advisors is unique, two things we all have in common are our passion for work as
demonstrated by our past successes and more importantly, our uncompromising
commitment to create value for our current clients.
Demographics and profile
An average Quantigate Advisor possesses:
• 15 years of work experience
• Advanced degree from top university programs; concentrations ranging from MBA and
MS in Information Technology to PhD. in Operations
Key attributes
Quantigate Advisors professionals are motivated and dedicated to the client’s success.
Although we are highly educated and possess significant real work experience, personal
commitment and positive attitudes are often cited as the most important and admirable
attributes.
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Our Expertise
As a management consulting firm, we help our clients develop and
implement operation strategy and streamline supply chains. Our
advisors bring industry and consulting experiences that create real,
measurable and sustainable value.
To demonstrate our unyielding commitment to the success of our
clients, we encourage our clients to enter performance-based fee
arrangements, where payments are linked to clearly set objectives.
What we do can be broken down into two broad categories: projects
and training/seminars.
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Our Expertise
Projects
We concentrate in operation strategy and supply chain management
especially for manufacturing companies. We assess our client’s industry,
business and operations to identify improvement opportunities. On a day-today basis, our work involves performing various analyses and developing
models, as well as helping our clients implementing specific
recommendations and strategies.
Our projects span all the links of the supply chain including:
• product introduction and rationalization
• sourcing and purchasing
• lean manufacturing
• transportation and distribution logistics
Each of these are discussed in the following pages.
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Our Expertise
Product introduction and rationalization
• In your organization, is there an effective, consistent and well-understood
new product introduction process?
• In your organization, is there an effective, consistent and well-understood
obsolescence process?
• How do you know if you are offering the right mix of products?
• What new products does the market need?
• Will a new product cause cannibalization of sales of other products?
• What are the proper prices for your products?
Is your product volume and/or mix causing unnecessary complexity to your
manufacturing operations?
• Are your marketing, manufacturing and distribution organizations
streamlined?
These are the questions that must be asked by any organization that wants to
streamline supply chain. The answers to these questions are of the utmost
significance since they consequently impact sourcing, manufacturing and
distribution decisions.
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Our Expertise
Strategic sourcing and procurement
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Do you have the right suppliers providing you the right components?
Should a part be single sourced or does it make sense to have multiple suppliers?
Does your organization have a consistent and pragmatic process for evaluating suppliers and vendors?
Does your organization have a long-term strategic partnership with the key suppliers? What does a “longterm strategic partnership” mean in your organization?
Should an operation be outsourced?
Are you getting the best prices without sacrificing quality?
How do you communicate to your suppliers?
What suppliers are causing you to carry excess inventory?
What suppliers are causing you shortage or stock-stock out situations?
Is your organization aware of where the money is being spent?
What are the “spent” categories in your organization?
Which spent category represents the biggest improvement opportunity?
Direct material cost typically makes up approximately half of total cost - by developing long-term strategic
partnerships with suppliers, we can help our clients reduce costs without sacrificing quality. This means
achieving the lowest overall company cost, not simply the best pricing. In addition to price, we define the
lowest overall cost as a function of several factors, such as: lead time, product quality, attribute(s), design
and technical support, if applicable.
Direct material cost is usually the largest bucket, there are, however abundant opportunities to reduce
other indirect and overhead costs. We help our clients identify and implement these cost savings by
evaluating feasibility of consolidation, outsourcing and contract negotiations.
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Our Expertise
Lean manufacturing
• What is the true capacity of your organization?
• What is the optimal batch size for each of your processes?
• What is the optimal sequence of parts?
• Is your inventory level where it should be?
• Is the layout of your facility optimal?
• Is your organization aware of the dynamics of bottleneck(s)?
• What is the effect of variability in set up time, cycle time and down time?
• Do you have the right number of resources allocated to the proper operations?
• Should one-piece flow be considered in your facilities?
• Has your organization reaped the benefits from going through a kaizen event?
• Is everyone in your organization fully aware of the benefits and possible shortfalls of
pull vs. push?
• Are kanbans used effectively in your organization?
• What type(s) of kanbans are best suited for your environment?
We bring extensive, hands-on experience in setting and implementing the lean
manufacturing techniques derived mostly from Toyota Production System and various
statistical methods.
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Our Expertise
Transportation and distribution logistics
• Does your organization have correct distribution network configuration?
• Is your network optimized to met customer service requirements?
• How do you select the best mode of transportation?
Transportation and distribution frequently represent major and relatively rapid opportunities to reduce
overall costs, improve customer service and gain competitive advantage. Our approach generally
involves performing network optimization, what-if scenarios and sensitivity analyses to determine
the proper number and locations of distribution centers and inventory levels.
Training and seminars
In addition to project work, we also provide on-site training covering supply chain concepts and
practices, especially as it relates to lean manufacturing. Approximately half the class is conducted
as a seminar and the other half devoted to practical hands-on experiments to enhance and enforce
learning. Depending on the level of detail desired, the classes can be configured to as short as a
four-hour high-level overview or up to a five-day detailed review.
The topics cover key supply chain concepts such as:
• Little’s Law: relationship between WIP, throughput and cycle time
• Pull vs. push (concept and actual on-hand practice); one-piece flow
• Adverse impact of variability
• Queuing effect
• Local vs. global optimization
• Proper batch size determination
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Our Qualifications
Our former clients and employers include: Westinghouse, Ford, Boeing, GE,
Kennametal, Honeywell, Philips, K Line America, KPMG and AT Kearney. We
have helped these companies in their efforts to reduce cycle time, reduce
inventory, reduce transportation costs, reduce material costs, increase throughput
and ultimately improve their bottom line. In addition to our deep knowledge and
supply chain management experience, we have numerous white papers and a
patent currently under review.
Articles and publications
The following is a sample of topics and short descriptions of white papers
available within our library. Any organization interested in learning more should
send an email to: [email protected] with “Articles and publications” as the
subject line.
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Our Qualifications
Derivations of APICS’ EOQ (Economic Order Quantity) Formula
The widely used APICS formula for economic order quantity is discussed in greatly detail and comments are
made on the embedded assumptions and the consequent possible short falls. To effectively and properly use
the EOQ formula, how it was derived must first be fully understood. It is very easy to get lured into blindly
plugging in numbers and making imprudent decisions based on the outcome. In this article, the EOQ formula
is derived so the reader is fully aware how the formula came about. The assumptions made and the inherent
short falls are also fully explained. Several pragmatic remedies are suggested as well as other comments to
help modify the formula to provide truly meaningful output.
Use of Statistics in Supply Chain Management: Demand Pattern Recognition
Even with the most sophisticated off the shelf supply chain packages, timing of the demands is often ignored or
not fully accounted for. As a hypothetical example, consider the following two sets of 12 monthly demands:
Scenario 1:
120, 110, 100, 90, 80, 70, 60, 50, 40, 30, 20, 10
Scenario 2:
10, 20, 30, 40, 50, 60, 70, 80, 90, 100, 110, 120
Although the arithmetic average (65) and the standard deviation (36) are the same for both scenarios, these
two demands behave very differently and should not be treated the same way. However, simply plugging
numbers into the classic APICS inventory level calculation yields 124 as the proper level of inventory (assuming
95% customer service level and one month lead time). If the output from standard APICS calculation is blindly
implemented, scenario 2 will soon result in shortage (which in turn results in unhappy customers and
manufacturing expedite requests) and scenario 1 will inevitably result in excess inventory (and possibly
obsolescence). In this white paper, we offer an alternative to the classic calculation, which can be inadequate
at times. In addition, a technique for detecting certain patterns is also presented.
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Our Qualifications
Local vs. Global Optimization: Heuristics
In a network of multiple processes, improvement made on a single process may
actually have an adverse impact on the whole. In this paper, such a case is
presented as well as several techniques for identifying such instances. Examples
of possible adverse impact of achieving local optimization in real life are also
provided.
Factory Simulation
This material is intended to be a training/seminar material and is best to have one
of our advisors talk it through. In this presentation, key supply chain concepts are
covered including:
• Little’s Law: relationship between WIP, throughput and cycle time
• Pull vs. push (concept and actual on-hand practice)
• One-piece flow
• Adverse impact of variability
• Set up time variability
• Down time variability
• Cycle time variability
• Queuing effect
• Local vs. global optimization
• Proper batch size determination
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Our Qualifications
Other topics currently in progress
Fallacy of Commonly Used Performance Metrics
In this article, we offer the right set of metrics that will drive the desired/right behavior in your
organization.
Appropriateness of Normal Distribution Assumption
The circumstances where normal distribution assumption is / is not appropriate are
discussed as well as the impact on real life applications.
Patents
Transportation Optimizer
Transportation and distribution are often overlooked areas. They frequently represent major
and relatively rapid opportunities a client can employ to reduce overall costs, improve
customer service and gain competitive advantage. A transportation model has been
developed to minimize an organization’s transportation cost. Based on a destination zip
code and the weight to be shipped, the model selects the best mode and the right box sizes.
This model is currently going through a patent protection process. Any organization
interested in a demonstration of this model should send an email to: [email protected]
with “Transportation Optimizer” as the subject line.
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Becoming a Quantigate Advisor
We are not a typical consulting firm, and being a part of Quantigate Advisors is
not a typical career. Our advisors make a difference — both on projects for
clients and internally in helping shape firm's direction and culture. The single
most important attribute for success at Quantigate is commitment to our
client’s success. Those who share this uncompromising attitude along with
excellence in their line of expertise will go far within our firm.
• Our goal is to recruit those who possess both competency and positive
demeanor. We want our people to stay and grow with us, and we want our
advisors to collectively tackle the challenges and celebrate the successes.
• Our work involves extensive travel and long work hours. However, we
believe sense of accomplishment from helping our clients become leaner and
more efficient makes it all worthwhile.
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Contact Information
Interested in finding out more about our services?
Thank you for taking your time to explore our world of Quantigate Advisors.
If you want to hear more about our services and how Quantigate can make a difference, please
contact us:
Quantigate Advisors
1505 N. Maplewood , Suite 2
Chicago, IL 60622
Phone: (908) 803-0158
Email: admin.quantigate.com
URL: www.quantigate.com
Want more about a career with Quantigate?
If you want to make a positive difference by becoming a Quantigate Advisor, and feel that you meet
our requirements, you are encouraged to apply. For further inquiries and resumes, send an email or
regular mail to the address listed above.:
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