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Surviving Supply Chain Integration: Strategies for Small Manufacturers (2000)

Chapter: Appendix B: Capability Mapping

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Suggested Citation:"Appendix B: Capability Mapping." National Research Council. 2000. Surviving Supply Chain Integration: Strategies for Small Manufacturers. Washington, DC: The National Academies Press. doi: 10.17226/6369.
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APPENDIX B
Capability Mapping

Capability mapping is a technique that can be used by supply chain participants to lay out, in an organized way, all of the critical functions, processes, and capabilities required to design, build, distribute, sell, and support the end product. The committee suggests that small and medium-sized manufacturing enterprises (SMEs) first map key individual processes and then superimpose them on one supply chain map. Maps of requirements can be overlaid with the actual capabilities of each participant to identify gaps (deficiencies in capabilities and capacities) systematically in the supply chain. These potential problem areas are candidates for careful data gathering, monitoring, and remedial action. Similar techniques can be used to create flow charts that map material flow requirements, capabilities, and deficiencies / gaps. Technological requirements, advances, and impacts can be mapped in a similar manner. Capability mapping can also be useful for systematically assessing candidates (both suppliers and customers) for participation in a supply chain, as well as for self-assessment by an SME.

Attempts to map, integrate, and manage all functions and process links are impractical, especially for SMEs. Some capabilities, functions, processes, and links are more important than others, and it is crucial to identify the most significant ones and prioritize the allocation of scarce resources accordingly. The following are examples of capability mapping parameters:

Suggested Citation:"Appendix B: Capability Mapping." National Research Council. 2000. Surviving Supply Chain Integration: Strategies for Small Manufacturers. Washington, DC: The National Academies Press. doi: 10.17226/6369.
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Capability requirements for product and process suppliers:

  • demonstrated financial strength commensurate with the risk involved in becoming part of the supply chain

  • ability to provide consistently high quality products and services

  • effective and reliable process control systems throughout its own enterprise and throughout its own supply chains

  • compliance with accepted industry standards for quality assessment and quality maintenance (e.g., IQ 9000)

  • compliance with accepted industry standards for manufacturing enterprise performance (e.g., ISO 9000)

  • compliance with applicable state and federal regulations

  • validated process technologies appropriate for the products and services being supplied

  • consistent on-time delivery

  • ability to react with short lead times without incurring excessive costs or degrading quality

  • ability to design and fabricate prototypes quickly and accurately to meet requirements for product realization programs

  • use of appropriate data and information management systems that can effectively communicate with customers' and suppliers' systems and provide the information required to participate effectively in the supply chain.

  • ability to produce the required products and/or services at competitive costs

  • emphasis on employee learning and a well implemented training program

Unique capability requirements for product providers:

  • ability to provide special insight into uses for their products and methods for adapting them to nonstandard applications

  • product planning, design, and development capabilities that, although focused on creating and updating the supplier's own line of products, can be modified or adapted for nonstandard applications

  • ability to provide after-sales support appropriate for dealing with unique or proprietary products.

Unique capability requirements for process suppliers:

  • ability to guide customer product design decisions to reduce process costs and improve quality

  • ability to provide process design capability to meet customer needs

Suggested Citation:"Appendix B: Capability Mapping." National Research Council. 2000. Surviving Supply Chain Integration: Strategies for Small Manufacturers. Washington, DC: The National Academies Press. doi: 10.17226/6369.
×
Page 124
Suggested Citation:"Appendix B: Capability Mapping." National Research Council. 2000. Surviving Supply Chain Integration: Strategies for Small Manufacturers. Washington, DC: The National Academies Press. doi: 10.17226/6369.
×
Page 125
Next: Appendix C: Biographical Sketches of Committee Members »
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The managed flow of goods and information from raw material to final sale also known as a "supply chain" affects everything--from the U.S. gross domestic product to where you can buy your jeans. The nature of a company's supply chain has a significant effect on its success or failure--as in the success of Dell Computer's make-to-order system and the failure of General Motor's vertical integration during the 1998 United Auto Workers strike.

Supply Chain Integration looks at this crucial component of business at a time when product design, manufacture, and delivery are changing radically and globally. This book explores the benefits of continuously improving the relationship between the firm, its suppliers, and its customers to ensure the highest added value.

This book identifies the state-of-the-art developments that contribute to the success of vertical tiers of suppliers and relates these developments to the capabilities that small and medium-sized manufacturers must have to be viable participants in this system. Strategies for attaining these capabilities through manufacturing extension centers and other technical assistance providers at the national, state, and local level are suggested.

This book identifies action steps for small and medium-sized manufacturers--the "seed corn" of business start-up and development--to improve supply chain management. The book examines supply chain models from consultant firms, universities, manufacturers, and associations. Topics include the roles of suppliers and other supply chain participants, the rise of outsourcing, the importance of information management, the natural tension between buyer and seller, sources of assistance to small and medium-sized firms, and a host of other issues.

Supply Chain Integration will be of interest to industry policymakers, economists, researchers, business leaders, and forward-thinking executives.

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