Art Koch’s Profit Chain® Tips
The Supply Chain Revolution: Unlocking the Sustainable Profit Chain
Volume 5 | Number 23 | December 2024

I’m going to do my What’s Inside the Book series slightly differently this month. Here I cover three chapters – what you’ll find in Chapters 10, 11 and 12! It’s all about the phases of Entropy Busters®.

Entropy Busters® Phase I – Overcoming Denial

Entropy Busters® Phase II – Making Progress

Operational Excellence Driven by Visual Daily Management and the Same Page

Entropy Busters® Phase III – People Matter

Team Building, Empowerment, Establishing Community, and Having Fun

Chapters 10, 11, and 12 focus on the three phases of Entropy Busters®, which aim to improve operational efficiency, empower teams, and create sustainable processes in supply chain management (SCM). These chapters break down the methodology into actionable steps to combat organizational entropy, enhance communication, and foster team engagement.

Chapter 10: Phase I – Overcoming Denial

• Phase I involves breaking through organizational denial and getting leadership involved in daily operations to address root causes.
• Leaders must adopt participative leadership, streamline KPIs, and motivate the team by finding a “common enemy” like inefficiencies or high inventory costs.
• Focus on setting a foundation for problem-solving using simple tools like Plan-Do-Check-Act (PDCA) and Pareto charts to begin tackling supply chain issues.

Chapter 11: Phase II – Making Progress

• Phase II emphasizes Visual Daily Management (VDM), which creates transparency and improves communication across departments.
• Daily meetings focused on key performance indicators (KPIs) keep everyone aligned and accountable, fostering faster problem resolution.
• Establishing Gemba walks (shop-floor visits) and a regular meeting cadence helps to maintain focus and move toward long-term strategic goals.

Chapter 12: Phase III – People Matter

• Phase III focuses on team empowerment, creating a supportive environment, and maintaining process integrity.
• Building a strong team culture is critical, with strategies such as encouraging healthy competition, celebrating successes, and assigning roles to every team member.
• Visual Daily Management continues to play a key role in ensuring data accuracy and process control, further driving sustainable success.

Watch the video below for Chapters 10, 11 and 12: The 3 Phases of Entropy Busters®!

Carpe Diem,

Art Koch