Supply Chain Job Demands and Top Ranked Programs

Supply Chain, Job Demands, and Top Ranked Programs Arizona Marketing Education Association Winter Conference January 25 -27, 2018 Sedona, Arizona Cheryl Dalsin © 2016 APICS Confidential and Proprietary APICS Certified Supply Chain Professional™ (CSCP) Learning System Version 3. 3, 2015 Edition

Meeting Agenda: Today’s Objective: ▪ Introduce you to Supply Chain Career Pathways ▪ Share activities that can be used in your classroom. Program Presentation: • What is Supply Chain Management • Job/Talent Demands • 2018 Top Ranked SCM Program’s • Supply Chain STEM Program • High School Cell phone game video/demo • Paper Airplane Demo (time permitting) ▪ Questions 2 © 2016 APICS Confidential and Proprietary

What is Supply Chain Management? https: //www. youtube. com 3 © 2016 APICS Confidential

The Supply Chain Talent Shortage § US Bureau Labor & Statistics: logistics jobs to grow ~26% between 2010 -2020 § Demand for SC professionals exceeds supply by 6: 1 – 9: 1 § Top gap factors: changing skill requirements*, aging workforce, lack of talent pipeline development *leadership, strategic thinking, innovation, high level analytic and technological capabilities § DHL warns supply chain sector over looming talent gap crisis”, www. supplychaindigital. com 7/26/2017 § Employment experts predict a "perfect storm" of unfilled employment needs within the global electronics supply chain § Although high wages (SCM’s earn ~$79, 000 annually) and strong job satisfaction levels within the field, awareness and interest remains low. § A variety of soft and hard skills are needed within the industry § 4 Modern supply chain work force talent gap requires both hard, soft skills, www. supplychaindive. com, 3/27/2017 © 2016 APICS Confidential and Proprietary

Contributing Factors § Supply chain managers are looking to science, technology, engineering, and math (STEM) graduates to fill new supply chain roles—but it’s a tough sell. “Most supply chain leaders would love to hire engineering grads from top schools, but a job in the supply chain at a manufacturer is pretty low on their list, ” Benjamin Dollar (Deloitte Consulting) says. “There’s not enough sex appeal. ” § Supply Chain Talent Crisis Looms, CIO Journal, 6/25/2015 § A recent article by Amy Clark postulated four reasons for the supply chain talent shortage: § The Industry Is Expanding Faster than Workers Are Becoming Qualified § The Qualifications Needed for Supply Chain Careers Are Expanding § There’s an Education Shortage and Companies Have Trouble Gauging a Good Supply Chain Mind § Supply Chain Has an Image Problem – ”students stumble into supply from engineering or business” § 5 Four Reasons for the Supply Chain Talent Shortage, Part 1, sdcexec. com, 2/1/2016 © 2016 APICS Confidential and Proprietary

6 © 2016 APICS Confidential and Proprietary

Top Ranked Undergraduate SCM Programs US News & World Report 2018 1. Michigan State University 2. MIT 3. University of Tennessee 4. Arizona State University 5. Penn State 6. Ohio State 7. Univ. of Michigan 8. Carnegie Mellon 9. Univ. of Texas Austin 10. Purdue 11. Univ. of Pennsylvania 12. Univ. of Maryland 7 © 2016 APICS Confidential and Proprietary Top Ranked Nationwide SCM Program in our own backyard!!

University Perspectives (2016): ASU and MSU § Most college freshman don’t know what supply chain management is § As recently as three years ago, ASU had less than 25 freshman choose SCM even though ASU graduates over 300 SCM majors per year § MSU graduates over 400 SCM majors per year, but, similar to ASU, students often don’t find SCM until they are already on campus § Most ASU and MSU students have at least 2 internships § Firms are offering internships to freshman to gain “first mover” advantage § Most ASU graduating students have 2 -4 job offers six months before they graduate § The average starting salary for MSU undergraduates is over $60, 000 § MBA students are often “career switchers” seeking supply chain degrees after working in STEM related careers (e. g. , engineering) ▪ Conclusion: We need to make kids aware of and excited for Supply Chain Management (SCM)! 8 © 2016 APICS Confidential and Proprietary

Supply Chain STEM

APICS Supply Chain STEM’s Story Starts with 1 Volunteer……. • CSCMP Teaching Innovations Award (‘ 13) • SCM World Power of Profession Talent Finalist (Jan’ 15) • SC Industry Recognitions • Supply Chain Brain (’ 15) • Supply Chain Navigator (‘ 15) • Supply Chain Mgmt Review (‘ 16) • Supply Chain Matters Blog (‘ 16) • Spend Matters part 1 & part 2 (‘ 17) • TIME Magazine (‘ 15) • Intel Shark Tank Winner: Create Non-Profit (‘ 15) • APICS: Bringing Supply Chain STEM to Market (‘ 16) • ASAE Power of A Gold Award Winner (‘ 17) 10 © 2016 APICS Confidential and Proprietary

Our K-12 Outreach is Hands on Fun! Elementary School Middle School High School Experiential

STEM and Supply Chain Work together…. Supply Chain + Source Make Deliver Reuse/Recycle STEM Science Technology Engineering Math ……. . to make things happen! 12 © 2016 APICS Confidential and Proprietary Sock Puppets Kindergarten Perspective

Proven By Pilot Metrics (K-8 th) Outstanding! 96% Say teachers students learned about SC ~700 Students Love It! Say volunteers >90% Student Engagement 13 © 2016 APICS Confidential and Proprietary Awesome! Say students

5 th Grade 14 © 2016 APICS Confidential and Proprietary

Fun for Supply Chain Professionals Too! “Went awesome! The kids learned a lot and the activity was very applicable and interesting. ” “The program was very easy to follow” “The Cell Phone Game was “The kids love it, teachers LOVE it, and I LOVE it. It’s a Win-Win! a fun and interesting way to introduce the supply chain process to high school students” Cell Phone and Paper Airplane Games at APICS 2017 15 © 2016 APICS Confidential and Proprietary

High School Cell Phone Game https: //axia. broad. msu. edu/stem/ 16 © 2016 APICS

Website

We Need Your Help! www. apics. org/stem 18 © 2016 APICS Confidential and Proprietary

Paper Airplane Activity Contents: Web View Downloadable at www. apics. org/stem under “STEM ACTIVITIES”

Record Impact With Survey Impact Survey Progress to Goal # students reached (incremental dial)

Questions?

Backup Demo: Paper Airplane Activity

Team Setup ▪ The class should divide into teams of about 5 -7 students/team. ▪ Each team should be seated at their own table – and separated from the other teams. ▪ Ensure there is sufficient room to flight test – launching the airplanes towards a wall (away from students, and not towards other teams). ▪ Each team member starts as a design engineer. 23 © 2016 APICS Confidential and Proprietary

Game Instructions ▪ Each team member will design their own prototype plane that meets the design criteria (white paper). ▪ Plane must have at least 5 folds. ▪ Each team will pick one winning prototype design. ▪ Plane must be able to fly at least 5 feet. ▪ The winning design for each team will go into high volume manufacturing (HVM). ▪ Each team will make one golden image of their winning design (white paper). 24 © 2016 APICS Confidential and Proprietary Engineering Design Criteria Winning Design Picked & Golden Image Made in 5 Minutes

Ex: Basic Plane Model – but be creative Work 1 Work 2 Fold up in half long way. Fold first corner down on each side. Work 3 Work 4 Second fold of wing in each side. Third fold of each wing on each side. Place in finished goods inventory. 25 © 2016 APICS Confidential and Proprietary

Teams picks their winning design. 5 minutes to test, discuss and select winner 26

Game Day! Today’s focus areas: 1. Assembly Line Manufacturing 2. Metrics Team Set Up ▪ Get back into your original teams ▪ Each team member will have 3 minutes to create a replica of the design win from Day 1 ▪ The “Best” replica will be reserved as the “Golden Image” for quality validation 27 © 2016 APICS Confidential and Proprietary

Group and Materials Group: ▪ 4 -6 Manufacturing Engineers ▪ 1 Quality Engineer Materials: ▪ Paper Sheets for making planes (8 ½ x 11) – Unique color paper/team recommended ▪ Pencils ▪ Scoring sheets ▪ Timer 28 © 2016 APICS Confidential and Proprietary

Round 1: How many Planes should we make? In looking at our historical data, we see that our customers have been wanting us to build more and more planes each month. Management has decided that demand is probably going to increase substantially in the month of October. We want to be sure we can meet this increased demand while making money. Each plane sells for $20. 00! To be safe, we will make as many as we can. Month Demand May 7 planes June 9 planes July 12 planes August 15 planes September 20 planes October ? 29 © 2016 APICS Confidential and Proprietary

Push Method-Round 1 Goal: make as MANY airplanes as you can. Manufacturing Engineering Team – all members must have unique roles and must repeat their step for each plane. ▪ As soon as you finish your step pass it to the next person as quickly as possible; if they are working on another one that’s okay, set it on their workstation and keep going with your step! ▪ When the plane is complete the last production engineer will give it to the quality engineer. 5 minutes! Quality Engineer ▪ Will visually inspects each plane against the Golden Image: pass/fail When the Clock has Stopped: ▪ Quality Engineer will test passing planes and calculate team metrics. ▪ Each plane sells for $20. 00 and the WIP cost is $5. 00/plane ▪ Winning Team: The most quality planes at the end of the round ▪ Have fun! 30 © 2016 APICS Confidential and Proprietary

Time to do a flight test! ▪ Move to your team’s test area ▪ Test only the planes that pass visual inspection ▪ Keep track of the # of planes that pass the 5 ft. flight test. These are “good” planes. ▪ Complete your team’s metric sheet 31 © 2016 APICS Confidential and Proprietary

Round 1: Metrics Metric Definition # Good # Planes built correctly (Flyable and pass visible inspection) % Good # good planes / total planes built Average Lead Time time it took to build good planes / total good planes built WIP # unfinished planes Productivity # good planes / 5 minutes WIP cost # of unfinished planes x $5 (WIP cost/plane) Profit (# Flyable planes x Sales price) –WIP cost 32 © 2016 APICS Confidential and Proprietary Round #1 # Engineers / Round #2

What did we observe in Round #1? ▪ ▪ 33 Were there any problems? Did any planes build up at a certain location? (bottleneck) Were there any quality issues? How would you make the next round better? © 2016 APICS Confidential and Proprietary

Questions?

What is LEAN? ▪ Steps to drive process efficiency by eliminating waste Defects Transporting 35 Overproduction Excess Inventory © 2016 APICS Confidential and Proprietary Waiting Excess Motion Unused Talent Extra Processing

Lean Method-Round 2 For this round, your goal is to maximize profit without sacrificing the quality of the planes. Excess WIP is a problem – we don’t want any. Engineering Team – take two minutes to reconfigure your teams to support your “LEAN” process. ▪ There will now be a staging area to prevent overproduction. – Each person on each team will get a post-it. – You will only be allowed to produce your part of the plane when your post-it note is not covered by WIP. Quality Engineer will enforce these rules. Once time is up… Quality Engineer will inspect your planes and calculate your metrics. ▪ Sales price for each plane is $20. 00 ▪ WIP cost per unit is $5. 00. 36 © 2016 APICS Confidential and Proprietary 5 minutes!

Time to do a flight test! ▪ Go back to your test area ▪

Round 2: Metrics Metric Definition # Good # Planes built correctly (Flyable and pass visible inspection) % Good # good planes / total planes built Average Lead Time time it took to build good planes / total good planes built WIP # unfinished planes Productivity # good planes / 5 minutes WIP cost # of unfinished planes x $5 (WIP cost/plane) Profit (# Flyable planes x Sales price) –WIP cost 38 © 2016 APICS Confidential and Proprietary Round #1 # Engineers / Round #2

Round 2: Follow-up ▪ Which production method would you choose for your company? Why? ▪ Which team made the most profit? ▪ How did the changes we made with resource-leveling and WIP change our metrics results? ▪ How did our quality improve? ▪ Did you see any areas where STEM was involved? 39 © 2016 APICS Confidential and Proprietary

Activity Summary ▪ We learned about Supply Chain using Paper Airplanes! – Source – Make – Deliver – Reuse/Recycle ▪ We learned about Science, Technology, Engineering & Math too! – Science: Optimize your paper airplane flight distance – Technology: Mass Production of Automobiles – Engineering: Improving the production of paper airplanes (LEAN) – Math: Calculating Metrics ▪ What else did you learn today that was new? ▪ Did you have FUN? 40 © 2016 APICS Confidential and Proprietary