By Rafael M. Pefianco MPM FAAPM

Planning even a small project can be quite difficult. Imagine you are at the stage where you are trying to estimate if your project can be completed by the target date set by your boss. You are just beginning to get feedback from some of the players involved and you have rough estimates of how long the individual project tasks are going to take. But the boss wants an estimate for when the project might be completed before the end of the day and he keeps changing the parameters.

Basic Project Management Class

Using Openproj at RMP Consultancy

OpenProj screen

Planning by hand using a calculator or even with a spreadsheet can be very difficult and repetitive. You have to contend with issues such as a day being only eight hours long, having a five day working week, and having special holidays all over the calendar. If the boss changed some parameter in the middle of your analysis, you would have to repeat so many calculations.

OpenProj

Since most of us already have computers, surely there is a software application around that can help in planning your project. Of course there is. MS Project can do the job. The only problem is that is quite expensive and your boss might not yet be ready to buy the software. Is there a cheaper solution? Of course there is. This is where OpenProj by Serena Software comes in. It is better than cheap. It is Free and Legal.

During our Project Management Courses, I encourage my students to bring their notebooks or laptops with OpenProj installed. I can guide them on how to use the software to analyze their existing projects or get them started in planning their new projects.

OpenProj by Serena Software is an open source application for desktop use. It is free and legal software that is easily downloadable. It is often used as a replacement for the pricey Microsoft Project. OpenProj has equivalent functionality and a user interface similar to Microsoft Project. It even opens existing MS Project files. I have often used OpenProj to create Gantts Chart and PERT charts. Of course Microsoft Project has a lot more functionality, but for most office projects OpenProj is enough.

Rafael M. Pefianco MPM FAAPM

Rafael M. Pefianco is a highly respected practitioner in management training. He has worked both in the government and private sectors. He is an International trainer whose passion is to enable Filipino professionals to reach world class levels by sharing the insights he has gathered working and teaching abroad and in the Philippines. He is a Mechanical Engineer by training, Master in Project Management and a Fellow of the American Academy of Project Management. Please click [Background of Raffy Pefianco] to read more about him.

1 Jun 2012, Friday, Basic Project Management – Cebu,

2 Jun 2012, Saturday, Basic Warehouse Operations and Inventory Control – Cebu,

5 Jun 2012, Tuesday, Fundamentals of Warehouse Management (A Lean Approach),

6 Jun 2012, Wednesday, Advanced Supervisory Skills: Tools and Techniques to Get the Work Done,

7 Jun 2012, Thursday, Office Improvement: Tools and Techniques,

27 Jun 2012, Wednesday, Basic Project Management,

Good problem solving and decision making are important skills for all supervisors and managers. The tools and techniques taught in this workshop will help you solve many business problems and make informed decisions. They will also give you a clear framework from which to build your solutions. The tools covered in this workshop start from the simple to the more complex. Used correctly these tools and techniques will help you map out an implementation plan to solve problems and make decisions.

• Learn key steps in problem solving and decision making
• Learn how to apply a variety of decision making strategies
• Understand how to select and implement the best solution
• Increase your confidence in making decisions and implementing solutions

1. Problem Solving Techniques
• Mind Maps
• Affinity Diagrams
• Cause and Effect Diagrams
• 5 Whys
• Process Mapping
• PDCA – The Deming Cycle
2. Decision Making Tools
• Brainstorming
• 5W1H
• Pareto Analysis
• PM Analysis
• De Bono’s Six Thinking Hats

This seminar is is ideal for managers, supervisors, team leaders, and potential leaders in the company.

Rafael M. Pefianco MPM FAAPM

Rafael M. Pefianco is a highly respected practitioner in management training. He has worked both in the government and private sectors. He is an International trainer whose passion is to enable Filipino professionals to reach world class levels by sharing the insights he has gathered working and teaching abroad and in the Philippines. He is a Mechanical Engineer by training, Master in Project Management and a Fellow of the American Academyy of Project Management. Please click [Background of Raffy Pefianco] to read more about him.

Pre-registration is required. Please email seminars@rmpconsultancy.com or call Chili Tel (632) 697 0767 Tel (632) 579-0233 Mobile (Globe) 0917-882-5578 Mobile (Smart) 0920-918-7358 for more information. A registration form can be downloaded from our website at http://rmpconsultancy.com/en/downloads/. Kindly email the registration form to seminars@rmpconsultancy.com.

Call or Email Chili Pefianco

Email seminars@rmpconsultancy.com Visit us www.rmpconsultancy.com
Telephone:(632) 697 0767 Tel (632) 579-0233
Mobile (Globe) 0917-882-5578
Mobile (Smart) 0920-918-7358

Keep up to date and subscribe now to the RMP Consultancy Training Newsletter. Please opt-in at http://rmpconsultancy.com/en/. You can un-subscribe anytime.

Assessments of human potential are difficult, no matter how well designed and appropriate the performance planning and appraisal system is. In order to be effective, the appraisal system should be individualized, subjective, qualitative and oriented towards problem-solving. It should be based on clearly specified and measurable standards and indicators of performance. Since what is being appraised is performance and not personality, personality traits which are not relevant to job performance should be excluded from the appraisal framework.

During this 1-day seminar, participants will learn the concepts and best practices involved in creating an effective performance appraisal process for their organization. The modules covered are extremely practical and will enhance their HR and management skills allowing them to better cope with the ever changing challenges of the global business environment. The activities for each of the modules consist of lectures, case studies and experiential exercises.

Upon completion of this program you should be able to:
Recognize the importance of having a performance review process for employees
Understand how to work with employees to set performance standards and goals
Develop skills in observing and giving feedback, listening and asking questions for improved performance

This seminar has been specially designed for management executives and HR personnel who would like to be aligned with the current industry standards and trends.

• Basics of Performance Appraisal
• What is Performance Appraisal?
• The Concerns for Performance Appraisal
• What Makes Performance Appraisal a Defensible Process?
• The Tendency of Stereotyping
• The Performance Management Cycle
• Goal Setting
• Feedback & Communication
• Preparing for Appraisal
• Conducting a Performance Appraisal
• Carrot & Whip
• The Dilemma
• Work Performance
• Penalties
• Rewards & Recognition

Pre-registration is required. Please email seminars@rmpconsultancy.com or call Chili Tel (632) 697 0767 Tel (632) 579-0233 Mobile (Globe) 0917-882-5578 Mobile (Smart) 0920-918-7358 for more information. A registration form can be downloaded from our website at http://rmpconsultancy.com/en/downloads/. Kindly email the registration form to seminars@rmpconsultancy.com.

Call or Email Chili Pefianco

Email seminars@rmpconsultancy.com Visit us www.rmpconsultancy.com
Telephone:(632) 697 0767 Tel (632) 579-0233
Mobile (Globe) 0917-882-5578
Mobile (Smart) 0920-918-7358

Keep up to date and subscribe now to the RMP Consultancy Training Newsletter. Please opt-in at http://rmpconsultancy.com/en/. You can un-subscribe anytime.

By Rafael M. Pefianco MPM FAAPM

It is hard to imagine a business that does not need or cannot be improved. In our interconnected society we are getting used to instant communications and instant gratification.

Do you want to know where your best friend is right now? Check her latest tweet.

Do you want to see the latest episode of your favorite TV show? Just download it and skip all the annoying and time consuming advertisements.

What this interconnectedness means is that our customers are becoming used to and even expect perfect customer service all the time and every time. You just cannot afford a misstep. I have even seen customers in a fastfood restaurant walk away when the server is slow or cannot communicate clearly and quickly. This might already be happening to you. Your loyal customer just might move to the competition to get the service she expects and believes to deserve. You need to constantly improve your business to keep ahead of the competition.

Many structured approaches have been developed for process improvement. The solutions might be software or hardware based. Or, they might be in optimizing the steps or processes we use in our everyday business. At RMP Consultancy, we have been focused on LEAN and Six Sigma Methods as our primary approaches.

Whichever method you choose to use, the fundamental problem solving concepts require the following:

• Identify the goals
• Analyze the present state
• Develop a problem solving process
• Construct a plan
• Execute the plan

Measure the results

As a problem-solving process, the PDCA Cycle can be a very useful guide or approach. It outlines the steps needed to systematically and incrementally introduce improvements and measure their effectiveness.

The Plan–Do–Check–Act (PDCA) Cycle is the problem-solving process developed by Walter Shewhart, an American statistician sometimes called the father of statistical quality control. It was also called the Shewhart Cycle by W. Edwards Deming and subsequently called the Deming Cycle by other writers.

1. Plan the process improvement work
2. Do the planned work
3. Check whether the improvements are working
4. Act to modify the process based on the lessons learned
5. Repeat until desired results are achieved

PDCA is your guide in your journey to achieve incremental improvement, or Kaizen as it is called in Japanese. It is part of the overall total quality management (TQM) process. It may not be as elegant as a high impact innovation, but it is a steady way to improve your business. Use it.

Raffy Pefianco has a wide experience in retail, distribution and manufacturing management having run or consulted for chains of specialty stores for many years. He is currently focused on providing training and consulting to several of the largest companies in the Philippines and regularly runs public and in-house seminars on supply chain management.

By Rafael M. Pefianco MPM FAAPM

Running out of cash to buy profitable inventory is one of the biggest problems many small businesses experience. Purchasing too much and slow moving inventory will negatively impact your cash flows and profits. Excess inventory consumes administrative and physical resources, and continuously decreases in value as it sits idle in your warehouse. This article discusses some of the issues associated with excess inventory and its solutions.

Excess inventory needs to be avoided in order to free up cash that could be invested in more cash generating product lines. One of the biggest problems many small businesses experience is running out of cash. Excess and slow moving inventory negatively impacts your cash flows and profits. It consumes administrative and physical resources, and continuously decreases in value as it sits idle in your warehouse.

Many inventory problems are the result of having too much inventory or simply the wrong type of inventory. These problems are typically the result of not accurately tracking current demand and not accurately forecasting future demand. If your staff do not track inventory accurately, you could end up running out of highly saleable merchandize and fill up the store with non-moving or excess items.

If your forecast for future demand is too high, you end up tying up too much of your cash flow into unneeded inventory. On the other hand, if you underestimate the sales volume and an item turns out to be a best seller, you could end up over-ordering to catch up with the demand.

Avoiding excess inventory is especially important for businesses that offer seasonal products, which include home accessories, clothing and holiday or gift items. Since these types of products have a shorter shelf life, they are typically hard to sell once they are no longer seasonable or fashionable.

Nonmoving stocks simply take up space, take up people’s time, tie up cash and resources without giving a return. In today’s economic climate, companies need to maintain their inventory as LEAN as possible.

The amount of inventory you need to have depends on many factors including the type of business you are in, the length of your supply chain, your product lead times and of course the demand for the products.

In this business model, you buy cheap, hold the inventory for a long time and then sell at a great profit. I knew an importer who specialized in closeouts. Closeouts are products which have been marked down heavily and are available from the manufacturer’s warehouses if you buy by the container load. Yes, this importer was able to retail at greatly discounted prices and still make a huge profit (making business almost impossible for his competitors) but, as an unintended consequence, his retail stores developed a reputation for selling old and soon-to-expire stock.

If you are in the surplus store business, your big profit margins can more than make up for the additional holding cost you incur. Are you in the surplus store business?

On the other hand, if you are a typical retail store, where you need to react more closely to fads and fashion, the surplus store model will not work for you.

In this business model, you want to keep slow moving inventory at the minimum possible and have the cash to keep your inventory current. Too much slow moving inventory will result in cash flow problems and loss of selling space.

You will want to develop a system that tracks your inventory closely so that you can determine which products really make a profit for you and which ones have begun to slow down and need to be removed from you store.

• Mark Down. Run a special sale. Many of the larger stores go through regular “inventory sales” promotions. Slow moving stocks simply do not generate the revenue to cover the cost of the space they consume and you are better off knocking down the price to move it. Be careful not to run the promos too long, though. Your customers could get used to them and simply wait for you to go on sale and ignore your other merchandize. Too many deep-discount sales could also hurt your store’s image, especially if you are a higher-end retailer.
• Bundle or Cross-Merchandize. Bundle your slow moving products with fast movers at a discounted price. You might pick up some impulse sales, as some customers will value the discount they are gaining by making the purchase.
• Move it to a different location. If you have a multi-store operation. Slow moving stocks might be better sellers at another location. The cost of moving the stock could well be less than just having it sit in the warehouse.
• Sell it to a surplus store operation. There are now many operations that specialize in buying entire lines of non-moving or even obsolete merchandize. These are usually auction houses that can convert your junk into cash.
• Donate it to charity. When all else fails, why not donate it to charity. Perhaps your items were really intended for some other person who could really use the help. You could also generate community goodwill for your business.

We’ve all heard the saying “an ounce of prevention is worth a pound of cure.” Prevention is the best solution to preventing excess inventory. Your staff will need the following skill sets:

• Inventory Management – using the proper tools and techniques to analyze which items to purchase at what price and quantity and time in order to make a profit. Determine the lead times time and the optimal safety stock.
• Inventory Control – using the proper tools and techniques to accurately count and manage the items after you have purchased them.
• Forecasting – Determining the ideal inventory level based on historical sales patterns and on forecasting future sales.
• Purchasing – using the proper tools and techniques to accurately compute and compare suppliers to determine who gives you lowest total cost ownership.

Nonmoving stocks simply take up space, take up people’s time, tie up cash and resources without giving a return. In today’s economic climate, companies need to maintain their inventory as LEAN as possible. The answer lies is in preventing excess inventory. The power to do this is in the hands of your staff who analyze your inventory. With the proper tools and applying the right techniques, they can prevent or at least reduce the amount of excess inventory you have in you warehouse.

Raffy Pefianco has a wide experience in retail, distribution and manufacturing management having run or consulted for chains of specialty stores for many years. He is currently focused on providing training and consulting to several of the largest companies in the Philippines and regularly runs public and in-house seminars on supply chain management.

Maria Cecilia L. Diaz de Rivera, CPA, MBA

By Rafael M. Pefianco MPM FAAPM

This advanced seminar teaches warehouse and inventory personnel, team leaders, supervisors and managers the advanced tools and techniques for operating and managing the warehouse. You will learn how LEAN principles have been successfully applied to improve warehouse operations. LEAN includes tools and techniques such as Just-in-Time, Kaizen, 5S, Visual Controls, Value Stream Mapping, and Poka-Yoke that can improve your operations.

Lean is about doing more with fewer resources. The ultimate goal of Lean is the elimination of waste within your production areas, warehouses and in the office. It is a proven management philosophy derived mostly from the Toyota Production System (TPS). Lean companies use fewer materials, less time, less energy and less space. They are driven by customer demand, minimize inventory and use the most effective and economical way to manufacture, store and deliver their products or services.

Lean is not new. Some of its tools and techniques have been around for many years. Many of these concepts were taught to me in Engineering School in the UK and on the shop floors in Germany and Japan. The phrase “lean production” was coined by MIT MBA student and IMVP researcher, John Krafcik, to identify the Toyota methods. The term has since grown to represent a particular set of ideas and methods, which when combined are referred to as Lean.

Lean focuses on eliminating waste at every level of an organization. It does not matter whether you are a one person company or a multinational company employing thousands. Lean can provide significant improvements to your business.

This advanced seminar teaches warehouse and inventory personnel, team leaders, supervisors and managers the advanced tools and techniques for improving warehouse operations.

• Achieving Effective Warehouse Operations
• Overview of Warehouse Operations
• Key Metrics for Warehouse Performance
• Improving Warehouse Operations
• Improving Warehouse Layout
• Pareto Principle
• ABC Classification in the Warehouse
• VED
• FSN
• LEAN Tools to Improve Warehouse Operations
• Introduction to LEAN Principles
• The Just-in-Time Warehouse
• Mapping the Product Flow
• Mapping Document Flow
• Poka Yoke and Error Proofing
• Kaizen and Continuous Improvement
• PDCA Cycle
• Standardized Work
• Maintaining the Warehouse
• Analyzing the Warehouse Facilities Requirements
• Failure Modes and Effects Analysis (FMEA)
• Risk Management
• SWOT /TOWS Analysis
• Implementing 5S Successfully in the Warehouse
• 5S Overview
• Sample 5S Audit Sheets
• Visual Controls in Warehouse Operations

This advanced seminar has been specially designed for

• Warehouse and Inventory personnel
• Team leaders
• Supervisors
• Managers

This is a highly interactive seminar with short lectures, activity-based learning, workshops and games.

The demand for professional facilities managers is growing fast here in the Philippines. So many buildings are sprouting all over Metro Manila and in the provinces and all these building will need to be managed properly. Just the other week, my wife Chili and I were facilitating a project management seminar in Cagayan de Oro City and we noticed that the city was like a gigantic construction site with so many malls and buildings being constructed. Surely this is a sign that the country is getting its act together.

The question that came to our minds was “Who is going to manage all these properties? What skills do they need?”

Last February 2012, we were able to run a small workshop at RMP Consultancy precisely for Facilities Managers. The workshop was facilitated by Flor Glinoga, Phd, who herself was once a facilities manager for the Development Academy of the Philippines. Attended by several seasoned facilities managers from several companies, the workshop highlighted the need for expertise in several disciplines including best practices for air-conditioning, handling of pipe works, internet connectivity and smart buildings, dealing with contractors and vendors, and how to keep tenants happy.

Dr. Glinoga was able to introduce several advanced methodologies including failure mode effect analysis (FMEA) as a framework for getting the big picture of what your building or facility requires in terms of care and maintenance.

RMP consultancy will be running this very valuable workshop again on 26 Apr 2012 Thursday 9:00 AM – 5:00 PM and on 24 May 2012 Thursday 9:00 AM – 5:00 PM. Call or email us now to join this learning event.

Participants to the “Effective Facilites Management” seminar held last February 2012 at RMP Consultancy led by Dr. Flor Glinoga (fourth from the right) and Rafael Pefianco MPM FAAPM (right).

Click 26 Apr 2012 Thursday 9:00 AM – 5:00 PM for seminar details.


Click 24 May 2012 Thursday 9:00 AM – 5:00 PM for seminar details.


RMP Training Room
Room 204 Languages International Bldg, 926 Arnaiz Ave, San Lorenzo
Makati City, Philippines

This one-day comprehensive course will teach you the techniques and best practices used by leading facilities managers to run a safe, cost-effective, and employee-friendly environment. This course is comprehensive, in-depth, and packed with need-to-know information you can use immediately you return to your office. [Read More]

Pre-registration is required. Please email seminars@rmpconsultancy.com or call Chili Tel (632) 697 0767 Tel (632) 579-0233 Mobile (Globe) 0917-882-5578 Mobile (Smart) 0920-918-7358 for more information. A registration form can be downloaded from our website at http://rmpconsultancy.com/en/downloads/. Kindly email the registration form to seminars@rmpconsultancy.com.

Website: www.allianceconsulting.biz.

Cebu Contact: Mr. Ederlindo Ed Cojuangco II
Community Manager, Alliance Consulting
EMail: ec@allianceconsulting.biz
Landline: (032) 410 6454
Mobile: (0906) 471 4823

RMP and Exponentia Konsult will be offering more seminars in Davao City this summer and later into 2012. Please contact Mr. Mel Papa, Business Development Unit Head at (0923) 923 2232 exponentiakonsult@gmail.com for more information.

Thank you for reading the RMP Consultancy Training Newsletter. Make sure you receive articles and updates from us. please opt-in at http://rmpconsultancy.com/en/. You can un-subscribe anytime.

Last 12 and 13 April, 2012 Raffy Pefianco MPM FAAPM conducted the Effective Inventory Planning and Management seminar at the Regency Inn Hotel in Davao City. Forty Seven participants from various companies located in the Davao area attended the workshop. The workshop was very successful and very many topics and issues regarding proper inventory management planning and management were discussed.

Raffy Pefianco conducts Davao Inventory Seminar

The two-day workshop was organized by Exponential Konsult, the local event partner of RMP Consultancy in Davao City.

Exponentia Konsult Davao City

This was a hands on and interactive workshop where the participants were required to use their laptop computers and spreadsheet applications in order to complete the comprehensive inventory exercises. These exercises included computing the economic order quantities for ordering inventory, calculation inventory turns, and forecasting inventory. Raffy introduced the participants to the special functions found in MS Excel that can make inventory computations for multiple SKUs a lot easier.

Inventory Calculation

The participants were also able to draw simplified value stream maps of their operations in order to identify bottleneck areas and areas where process improvements might be made in order to reduce inventory costs. Using only Manila paper, pencils, marker and crayons, the participants were taught how to analyze the flow of their operations and identify possible solutions.

The culminating event of the two day seminar was an inventory planning simulation exercise where the participants had to forecast demand using all the tools and concepts previously taught. This special simulation was designed by Raffy Pefianco precisely to mimic what happens in the real world and it allows the participants to use the analytical and forecasting tools they just learned. This exercise was a lot of fun as the participants realized how easily they can make mistakes as they fall back into their old forecasting and ordering habits when they abandon analysis and go back to “eye-balling” demand.

Forecasting Inventory

Inventory Class Davao

You can see many more photos of this seminar (and many of our other seminars) at our Fan Page on www.facebook.com/RMPConsultancy. Find your friends and tag them at this site.

RMP and Exponentia Konsult will be offering more seminars in Davao City this summer and later into 2012. Please contact Mr. Mel Papa, Business Development Unit Head at (0923) 923 2232 exponentiakonsult@gmail.com for more information.

RMP Consultancy will also be conducting supply chain and management seminars in Cebu City this summer and later into 2012. The seminars are organized by our local events partner Mr. Ederlindo Ed Cojuangco II, Community Manager of Alliance Consulting. You can contact Ed at ec@allianceconsulting.biz (032) 410 6454 and mobile no. (0906) 471 4823. Their website is www. allianceconsulting.biz.

Alliance Consulting

Pre-registration is required. Please email seminars@rmpconsultancy.com
or call Chili at Tel (632) 697 0767 Tel (632) 579-0233 Mobile (Globe) 0917-882-5578 Mobile (Smart) 0920-918-7358 for more information. A registration form can be downloaded from our website at http://rmpconsultancy.com/en/downloads/. Kindly email the registration form to seminars@rmpconsultancy.com

If you wish to continue receiving the RMP Consultancy Training Newsletter please opt-in at http://rmpconsultancy.com/en/. You can un-subscribe anytime.

Managing inventory effectively is vital for a company to survive. In today’s increasingly competitive business environment profit margins are often razor thin and bottom lines are very tight. What is the best strategy to grow or maybe even just survive in this environment? Effective Inventory Management is the answer.

I remember a friend of mine who told me that year ago, making money was like picking apples from a tree. He was making US$1 per kilo just moving freight in those days. Today, the companies that are still in that industry are fighting over US$.05 per kilo. That is how thin profit margins have become. (Obviously, my friend retired very rich and got out of the business before it became so cut-throat.)

I keep hearing about cost cutting initiatives focused on staff reduction as a surefire way of reducing cost. Some companies promote the use of the back side of printed pages as a cost cutting measure. While these strategies are good, often very little attention is paid to the mountains of slow moving inventory that has consumed all the resources of the company. When you really think about it, those non-moving stocks could be eating up 90 percent of the company’s resources, while the cost cutting initiatives are focused only on the remaining 10%. Surely, the significant savings may be found in the larger 90%. Shouldn’t it?

Effective Inventory Management is about planning how much of what products to buy in order to make a profit using the resources at hand. Inventory Control on the other hand is about managing what is already in the warehouse.

Effective Inventory Management is planning what stocks to put in the warehouse so that we make money. The last thing we want is for them to sit there and slowly deteriorate. Effective Inventory Management is about tracking what our customers really want, calculating the optimum quantities to order and setting the lowest safety stock possible. It is about calculating which stocks make money for us and which ones are just dragging us down.

Since computers have become readily available, analyzing our inventory data can be easily done on a regular basis. With the correct analysis, we should be able to track better which of our stocks are selling well, which ones are no longer popular. We should be able forecast our needs better.

Managing inventory effectively well is truly vital for a company to survive.

RMP Consultancy regularly conducts training seminars on the “Basics of Effective Inventory Management”. Check http://rmpconsultancy.com/en/events/ for the next seminar date.