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Slide Description Work History 1 Military – Aviation maintenance and supply Commercial - Manufacturing/Produc

Table of Contents. Slide Description Work History 1 Military – Aviation maintenance and supply Commercial - Manufacturing/Production and Distribution Competencies and Expertise 3 -4 Value Added Services (VAS) 5 Innovation

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Slide Description Work History 1 Military – Aviation maintenance and supply Commercial - Manufacturing/Produc

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  1. Table of Contents • SlideDescription • Work History • 1 Military – Aviation maintenance and supply • Commercial - Manufacturing/Production and Distribution • Competencies and Expertise • 3 -4 Value Added Services (VAS) • 5 Innovation • 6 Multi-Project Portfolio Management (RPM) / Critical Path Management (PERT) • Expertise and Philosophies • Supply - “right material, right price” • 7 Sourcing • 8 Supply Base Management (SQM, SRM) • 9 Cash Management • 10 Total Cost of Ownership (TCO) • Demand – “right quantity, right time” • 11 Synchronize Demand and Supply (S,I&OP) • 12 Inventory Management and Control • 13 Product Lifecycle Management • Logistics – “right place, right quality” • 14 Worldwide Networks • 15 Transportation, Traffic and Trade • 16 Fulfillment • 17 Continual Improvement Process (CIP) • 18 Matrix Management • 19 Financial Management • 20 Management Information Systems (MIS) • 21 Summary

  2. Aviation Aerospace Engineer, Saint Louis University Engineering Technologies, Georgia Southern University United States Army Commissioned Officer Aviation Branch Logistician Certification Contracting Officers Representative Airframe and Powerplant (A&P) license Commercial Airplane and Helicopter Pilots License

  3. Manufacturing and Distribution Assembly Silicon wafer processing and packaging Component (OEM) Hearing Aid micro-electromechanicals Cell Phone microphones Consumer (CPG) Modems , Hubs , Routers Enterprise Surface Mount Technologies Medical Imaging Displays Commercial / Industrial representative work Internet Service Providers Not to scale

  4. Value Added Services (VAS) Software download and programming Assembly and Configure To Order Integration Wiring / Cabling FDA CFR 820 Med class II Network /Telco representative work

  5. Value Added Services (VAS) Reverse Logistics Troubleshooting and Repair Service/Warranty inventory planning and management Project and Program management Purchasing and Purchase Order management Inventory consolidation and staging Logistics –Transportation and Customs clearance

  6. Innovation Postponement 1.) Disassociate hardware from software 2.) Assemblies -PROM/Flash/connectors, etc. 3.) Regionalization –power, manuals, etc. Configure To Order (CTO) Factory Management System (FMS) 1 – 2 – 3 – 4 – 5 – 6 – 7 – 8 – 9 – 10 – 11 – 13 – 14 FMS Centralized QA Power (AC 110/ 115/230) Hardware Hardware Software Software Completion Centers EMEA Asia Americas

  7. Multi-Project Portfolio Management (RPM) Critical Path Management (PERT)

  8. Sourcing Supplier Qualification • Technically Capable • Affordable (see slide 10 - eye chart )) • Stable • Financials • Employee turn over –Management and Direct Labor • Politics –Country, State, Region (State, Province, City) • Sophistication • Quality systems • Management Information Systems • Equipment • Facility • Integrity • Transparency • Ease of doing business • Fit and scalability • % loading • % New business of Total • Facility • Staff availability–technical, cost, reliability • Sociably responsible

  9. Supplier Base Management Supplier Relationship Management (SRM) Supplier Quality Management (SQM) • Contract SOW • RFP, RFQ, RFI • Terms & Conditions (T&C’s) • Attainment, change management • T&C compliance • Quality Systems • Reverse Logistics • Trade Compliance • Roadmaps • Incremental expenses • Traceability • Technical Qualification • Audit • Standards • Corrective Action Request (CAR) • BOM management • Quality Systems • Returned Material Authorization (RMA) • Regulatory Compliance (CE, RoHS, UL) • Roadmaps • Engineering Change • Traceability Supplier Report Card

  10. Cash Management “Cost vs. Ownership vs. Supplier Relationships” Tax 3PL FTZ / FTA T&C’s Consign Distributors F/X Currency

  11. Total Cost of Ownership (TCO) • PO versus Supplier Agreement • Price • Discounts • Net Payment terms • Credit terms • Warrantee / Guarantee • Quality Assurance • Return Material Authorization (RMA) terms • Repair, replace • Stock rotation, exchange, credit • INCO Terms • Freight Terms • Forecast terms • Back order terms • Quantity (MEQ, MOQ) • Service level (Fill rate/OTD) commitment • Order Fulfillment (O/F) scheduling/release • Sample policy • Proto., TMS., 1st WMS. run terms • Design-in suppliers (1st and 3rd party) • Original Design Manufacturers (ODM/DOF) • PO acknowledgement terms • Cancelation terms • Advanced Shipping Notification (ASN) • Supplier warehousing • Supplier’s supplier management • Logistics (merge, drop ship, in transit trade) • Packaging and palletizing • Consolidation (ship with, pack with) • Value Add Services (distributors, 3PL’s) • Kitting (supplier, distributor, 3PL) • Stock keeping unit locations (SKUL) • Consigning and Consignment • Vendor/buyer managed inventories • Insurance terms • Part Change Notification (PCN) policies • Engineering Change Order (ECO) terms • Corrective Action Response (CAR) terms • Failure Mode and Effect (FMEA) terms • Approved Vendor Lists (AVL) • TMDE terms • Fixture, form, template, & screens costs • Harmonized Tariff Classification (HTC) • Economic Zones (FTZ, LMW, Free Port) • Foreign Trade Agreement (FTA) • Foreign Currency Exchange (F/X) • Controlled currency management • Management Information Systems (MIS)

  12. Planning/Scheduling Sales, Inventory & Operations Planning (S,I & OP) forecast Demand Supply Horizon (Days) 120 90 60 30 60 90 120 30 Inventory Availability Cash ($)

  13. Inventory Management and Control Inventory Balanced Scorecard Gross Inventory ($) Service Levels COGS / PPV Risk / Strategy Invested Capital and Lifecycle Continuum Obsolete Reserves “SLOB” Slow Gross Inventory ($) Within Financial plan

  14. Product Lifecycle Management Affordability for Profitability -the over “Arching” consideration 1. Design for manufacturability 2. Accessibility of material Concept –> engineering drawings/bill of materials (BOM), software specifications -> prototype -> source -> engineering build -> 1st mfg build Ramp to production -> service & support -> re-engineering for savings 2nd source for savings and scalability -> design out -> last time buy last production run -> end of life buy for service support -> End Of Life Saint Louis, Missouri Gateway Arch 13

  15. Worldwide Networks (2) (JV) Distribution Centers (5) Warehouses (22) Stock Keeping Locations (>50)

  16. Transportation, Traffic and Trade (Inbound, Outbound, Reverse) Pack, break, ‘pack with’, ‘ship with’, ‘invoice as’ Dock to Dock Dock to Stores End User drop ship Vendor drop ship Inter-company drop ship Virtual consolidation Merge in transit 3 and 4 party in transit sale Wholly off shore trade Importer of Record Representative Import/Export Agent Customer consignment Vendor consignment Free Trade Zone Special Processing Zone Special Export Zone Free Port Bonded warehouse Bonded Carrier Limited Manufacturing Warehouse Pallet, consolidate, stack, wrap, cross-dock, break, Container (FCL, LCL) Sea Rail Intermodal Truck (TL, LTL) Air (freight, parcel)

  17. Fulfillment Manufacturing Warehouse / Distribution Center 3PL Channels and VAR’s (VMI/Consignment) e-Commerce/end user/engineer Manufacturers / Retailers

  18. 6Sigma – Statistical Process Controls (SPC) Goal / Objective Gap Key Performance Indicator (KPI) Pareto Analysis A B C D Corrective Action or Process Improvement LEAN systems and process re-engineering

  19. Business Process Owners WMS QA PLN TMS CS PO LOG BOM General Management WMS QA PLN TMS CS PO LOG BOM General Management WMS QA PLN TMS CS PO LOG BOM General Management QA WMS PLN TMS CS PO LOG BOM Subject Matter Experts

  20. Operating Plan % Sales FY Budget SG&A 3% Sales$1M Department A 40% - 1.2% Sales $400K Department B 20% - 0.6% Sales $200K Department C 20% - 0.6% Sales $200K Department D 10% - 1.0% Sales $100K Hold % Sales during shortfalls, justify budget increase during revenue gain Transportation spend consistent % Sales MRO consistent % Sales Facility fixed

  21. Enterprise Resource Planning (ERP) Global Customs Compliance Shipping Barcode, Shop Floor Management (SFM)

  22. Twenty continual years study, training and practice in Supply Chain Management A career solely dedicated to Supply Chain Management spanning aviation maintenance and electrical, electronic and micro-electromechanical manufacturing and distribution -including FDA CFR 820 Class II medical devices Expert in Global, multi-site operations and recognized authority in Multinational Corporations (MNC) international trade for both procurement and fulfillment Global competence acquired though living and working in Latin America, Europe, Asia and the US developing supply and customer bases Repeated and documented successes developing maximum efficiencies, minimum operating expenses, lowest total cost of ownership (TCO) and maximum profitability A certain, immediate contributor and trustable advisor for your business’ Supply Chain Management needs. Brad Knechtel SUPPLY CHAIN MANAGEMENT Email: Brad_Knechtel@yahoo.com | Phone +1 (815) 578-9352 | Fax: +1 (509) 692-4917 | Address: 5187 Grape Leaf, Las Vegas, NV 89141

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