Pan Pacific Symposium Conference Proceedings

Single Enterprise Methodology

Authors: Charles Barnhart, Sr.
Company: Charlie Barnhart & Associates LLC (CBA)
Date Published: 2/11/2014   Conference: Pan Pacific Symposium

Abstract: The Single Enterprise Methodology (SEM) as developed by CBA is a process whereby the current and future manufacturing needs of an OEM are compared and contrasted against all potential supply alternatives to determine which, in what combination, would provide the most holistically cost-efficient solution.

In the SEM the entire system of needs and alternatives are viewed as an interdependent whole (i.e. a single enterprise) vs. a collection of non-integrated separate elements. Additionally, the SEM differs from other supply-design methodologies as it starts with a “blank sheet of paper” rather than an assessment of current processes or organizational skill-sets, i.e. a fresh look at the possibilities from a cost/risk benefit perspective rather than an operational analysis of legacy practices or skill-sets.

In OUTLINE form the SEM includes the following 10 steps:

1. Statement of current and future needs (enterprise wide definition and timeline)

2. Analysis of inter-dependencies of needs (summary of network nodes)

3. Compilation of alternatives (a listing of all possible approaches for each need)

4. Cost analysis of alternatives (what each costs on a risk adjusted basis)

5. Baseline of lowest cost alternatives (establishment of lowest possible cost)

6. Supply-map of lowest cost alternatives (what would this supply-solution look like)

7. Optimize supply-map for Total Cost of Ownership (duties, off-sets, logistics, etc.)

8. Optimize supply-map for Corporate Social Responsibility (carbon-footprint, etc.)

9. Gap analysis of current versus required resources (current process/skill-sets)

10. Implementation plan and timeline (who would do what, when, where, at what cost, to what benefit?)

Historically, the SEM as taught by CBA is executed as an ongoing project under the coordination of an internal Project Director and typically is integrated into and becomes the backbone of the enterprise level outsourcing initiative.

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