Smith, Debra - A vertically Integrated Supply Chain Case

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About this Conference Video: This presentation is a follow-up on the LaTourneau Technologies (LT) presentation given by Dan Eckerman at the last conference. This is my view of what we did versus what Dan presented which was his view. Debra provided an overview of the steel mill and what they build (oil rigs, large heavy equipment loaders). The vertically integrated supply chain with control points and strategic buffers was described. Education provided included a two-week Jonah course. Lessons learned i.e. control points in sales, engineering, front end and back end production, etc. with respect to the bottleneck capacity, measures, portfolio management, etc. were also discussed. The current design for critical chain, drum buffer rope, and the replenishment solution was described. A description of actively synchronized replenishment (ASR) was provided. These concepts were discussed for internal constraints, industry downturn and economic downturn (recession) environments. (44 minutes)

About the Presenter:

Debra Smith: Debra Smith: Co-author of The Theory of Constraints and Its Implications for Management Accounting, (Noreen, Smith, Mackey North River Press, 1995) a grant study co-funded by the Institute of Management Accountants Foundation for Applied Research and Price Waterhouse; The author of The Measurement Nightmare. (St. Lucie Press, 2000); a co-author of The Theory of Constraints Handbook (McGraw Hill, 2010) and co-author of Demand Driven Performance – Using Smart Metrics (McGraw Hill 2013). She is the co-founder and a Partner of Constraints Management Group (CMG), a services and technology company specializing in pull based manufacturing, materials and project management systems for mid-range and large manufacturers.

Clients, past and present, include Unilever, LeTourneau Technologies, Boeing, Intel, Erickson Air-Crane, Siemens, IBM, Wellman Products Group, The Charles Machine Works (Ditch Witch), Avigilon and Oregon Freeze Dry. Debra is a certified public accountant and is also a certified expert in all disciplines of the Theory of Constraints and was elected to the founding board of the Theory of Constraint International Certification Organization. She served for six years before retiring. Prior to founding CMG Debra spent seven years as an associate professor teaching management accounting at both the University of Washington and the University of Puget Sound; nine years in industry and a CFO and a Director of finance and three years in public accounting with Deloitte. Ms. Smith is recognized internationally as an authority on both The Theory of Constraints and Management Accounting and is a noted speaker on both subjects. She has been the featured speaker at National Conventions for APICS, IMA and TOCICO as well presenting internationally in the United States, United Kingdom, Europe and South Africa.

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