M4SC Overview slides - Supply Chain Council

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Copyright © Supply Chain Council. 2006. All rights reserved. Attribute Reliability Responsiveness Flexibility Cost Assets Metric (level 1) Perfect Order Fulfillment Order Fulfillment Cycle Time Ups. Supply Chain Flexibility Supply Chain Mgmt Cost Cash-to-Cash Cycle Time Copyright © Supply Chain Council. 2006. All rights reserved. Copyright © Supply Chain Council. 2006. All rights reserved. Operations Supply Chain Purchasing Logistics Warehousing Responsible Accountable Supported Responsible Accountable Supported Responsible Accountable Supported Responsible Accountable Supported Copyright © Supply Chain Council. 2006. All rights reserved. S1 S1 S1 Company 98% 14 days 62 days 10.1% 22 days Parity 92% 8 days 80 days 10.8% 45 days Adv 96% 6 days 62 days 10.4% 30 days Our Company Shared Insights SCOR Seminar | Superior 98% 4 days 40 days 10.2% 20 days Parity Gap -6% 6 days -18 days -0.7% -23 days Req Gap 8 days Shared Insights SCOR Seminar | 80% Shared Insights SCOR Seminar | APJ Warehouse US Warehouse EU Warehouse D1 D1 D1 SR2 SR2 DR2 DR2 DR2 S1 S1 S1 D1 D1 D1 SR2 SR2 DR2 DR2 DR2 DR2 S1 S1 S1 D1 D1 D1 SR2 SR2 DR2 DR2 DR2 DR2 Shared Insights SCOR Seminar | 20 33 43 56 Copyright © Supply Chain Council. 2006. All rights reserved. OEM Supplier (D1) Commercial Customer (S2) Refrigerant Supplier (D1) Commercial Distribution (P4, D2) Copyright © Supply Chain Council. 2006. All rights reserved. Copyright © Supply Chain Council. 2006. All rights reserved. Copyright © Supply Chain Council. 2006. All rights reserved. Controls Plant (P3, S1, M1) Basic Units (P1, P2, P3, S1, M1, M2) Electronics Supplier (D1) Motor Supplier (D1) Retail Distribution (P4, D1) Shared Insights SCOR Seminar | Retail Customers (S1) Shared Insights SCOR Seminar | Shared Insights SCOR Seminar | Shared Insights SCOR Seminar | 18 1 50 62 D1 Electronics Supplier D2.1 Process Inquiry & Quote Supply- Chain Big Air Small Air Comm’l Overall Rating 120 180 300 Copyright © Supply Chain Council. 2006. All rights reserved. D1 Motor Supplier Supplier D1 OEM Supplier D1 Ref rigerant Supplier Copyright © Supply Chain Council. 2006. All rights reserved. D2.2 Receive, Configure, Enter and Validate Order M2.1 Schedule Production Activities D2.3 Reserve Resources & Determine Delivery Date D2.15 Invoice Copyright © Supply Chain Council. 2006. All rights reserved. Perfect Order Fulfillment Copyright © Supply Chain Council. 2006. All rights reserved. Criteria Weight P2 S1 M2.2 Revenue & Rank 1 2 3 Issue Sourced/In-‐Process Product D2.4 20% Basic Units Consolidate Orders D2.14 Install Product 0.2 0.4 0.6 P1 P3 M1 M2 Order Fulfillment Cycle Time S1.4 M2.3 Gross Margin & Rank 2 1 3 Transfer Product 20% P4 Produce and Test D2.5 Build Loads D2.13 Receive & Verify Product by Customer D2 0.4 0.2 0.6 Commercial Distribution Our Company Supply Chain Flexibility Number of SKU’s & Rank 1 2 3 S1 M2.4 Package D2.6 Route Shipments D2.12 Ship Product 20% 0.2 0.4 0.6 Controls Plant Unit Volume & Rank 1 2 3 20% 0.2 0.4 0.6 Strategic Value & Rank 0.6 Shared Insights SCOR Seminar | P3 M1 P4 D1 Retail Distribution 1 2 3 S2 20% Commercial Customer 0.2 0.4 Customer Shared Insights SCOR Seminar | M2.5 Stage Finished Product D2.7 Select Carriers & Rate Shipments D2.11 Load Product & Generate Shipping Documentation M2.6 Release Finished Product to Deliver D2.9 Pick Product D2.10 Pack Product Shared Insights SCOR Seminar | Supply Chain Mgmt Cost Cash-to-Cash Cycle Time Shared Insights SCOR Seminar | S1 19 Retail Customers D2.8 Receive Product from Source or Make 37 51 68 Attribute Reliability Responsiveness Flexibility Cost Assets Metric (level 1) Perfect Order Fulfillment Order Fulfillment Cycle Time Ups. Supply Chain Flexibility Supply Chain Mgmt Cost Cash-to-Cash Cycle Time Copyright © Supply Chain Council. 2006. All rights reserved. Copyright © Supply Chain Council. 2006. All rights reserved. Copyright © Supply Chain Council. 2006. All rights reserved. Copyright © Supply Chain Council. 2006. All rights reserved. Company Parity Adv 98% 14 days 62 days 10.1% 22 days Superior Parity Gap Req Gap Shared Insights SCOR Seminar | Shared Insights SCOR Seminar | Shared Insights SCOR Seminar | Shared Insights SCOR Seminar | 28 40 60 70 Reliability Responsiveness Flexibility Cost Asset Management Big Airco Copyright © Supply Chain Council. 2006. All rights reserved. Copyright © Supply Chain Council. 2006. All rights reserved. Copyright © Supply Chain Council. 2006. All rights reserved. Scope Migration Approach Timing Project Risks & C omplexity Cost Value Processes supported • S1, D1 • Immediate • Medium Risk • Medium Complexity • $500K Copyright © Supply Chain Council. 2006. All rights reserved. Small Airco Business Groups • FH9: _x__ • FM: _x__ • FD: ____ Comm’l Objectives • Reduce Cycle time by direct shipping from factory to commercial customers Analysis Issue • Order Cycle Time, SCM Cost % Revenue • Complete Critical Direct inbound links • Create local DC • Move new procurement to store at local DC • Drain Regional DC • Close/Sell Assets Geography • Sweden: _x__ • Belgium: _x__ • France: _x__ • Eliminates a net 1.5% of SC M cost as % of revenue; 2 Days OC T Shared Insights SCOR Seminar | Shared Insights SCOR Seminar | Shared Insights SCOR Seminar | Functions/Groups Integrated Logistics Integrated Procurement Shared Insights SCOR Seminar | 32 42 55 71 Resolving Issues: the “Project” Project Charter Outline Example: ComfyCo Supply Chain Priority: ComfyCo Scorecard Identify Competitive Requirements Section Subsection Content/Reason Introduction Context Understanding of Document Overview Scope Supply-Chains Considered Business Objectives Metrics Project Objectives Five-Phase Deliverables Project Methodology SCOR Project Roadmap Approach Schedule Timeline, Meetings Deliverables Detailed Deliverables Risk Level Program Management Key Areas 1 Budget Cost Organization Chart and Responsibilities Benefits Measures of Success, Analysis Communication Who, How, Why, What, When Parity, Advantage, Superior minus equals Level 2 We now link strategy, Parity Median of performance, and benchmark Statistical Sample to identify performance Advantage Midpoint of Parity required of strategy and Superior Superior 90 th percentile of population • Continuing Information on our Example Company, what are the distinct supply-chains Geography – Customer or Market Channel Supply-Chain Retail Commercial Definition Matrix Big-Box Internet Commercial Commercial Retailer Direct Building Major Acct Product Basic Geographic Context Big AirCo x x Small Airco x x Custom Industrial x Standard Industrial x x Geo Map of ComfyCo (US) ComfyCo Major Level 2 Entities processes Major Suppliers Basic Flow Indication Customer Entities Supply-Chain Selection Decision Matrix Competitive • Procedure Performance Requirements • Prioritize supply chain Attribute or Category performance requirements for each relevant customer/market channel S A S • Within a channel you get 1 superior (S), 1 advantage (A), and two parity (P) Process Team • Each unique combination of • The ComfyCo “Commercial” Supply-Chain has been A P A ratings defines Your Supply Chain Strategy for the prioritized by sponsor for improvement. channel P S P • Think of the rating as a desired state, NOT where Tiger Team you want to improve the P P P most SWAT Team ComfyCo Thread Diagram Optimization Example Issues Team Fishbone 1. Multiple Product touch factory to Warehouse 22. No visibility on order load when replenishing Planning 2. Highly variable demand from channels inventory Level 2 Notation 3. Channel config constantly changes 23. No demand visibility to reflect to suppliers Processes 4. One chance per day to ship for critical parts 5. Channel not ready for delivery 24. Not understanding what are priority build orders 6. Losing priority shipments 25. Configuration errors by customer 7. Takes a lot of time to enter channel orders Basic 26. No visibility to channel of inventory for sales 8. Duplicate effort entering channel orders Process Flow w/channel 27. Inventory too high AND too low because forecasting errors 9. Factory locks schedule for 3 days, no flexibility for demand change 28. Ability to expedite critical parts for key customers 10. Multiple-touch on OEM material from Asia 29. Long transit time from factory to warehouse 11. Logistics providers not aligned to our priorities 30. Losing inventory in warehouse for key customers 12. Factory doesn’t always build to plan, sometimes to capacity 31. Uneven workload on warehouse staff – high in AM, idle rest of day Problem Business is, there 13. Selling what we don’t is have, and not selling already a Problem Key Entities Context what we do 32. Damage to material receiving at warehouse during peak shipping 14. Takes forever to schedule an order to inventory 33. Duplicate builds if boxes not tagged correctly to end-cust Basic 15. No visibility on inbound material for order planning 34. Poor scheduling of staff for shipping – sometimes too many, sometimes too few 16. Chasing down inventory for order planning Problem takes a long time – manual 35. Factory adherence to schedule builds 17. Inventory picture for order planning not 36. Some products run out of inventory always accurate locations at WHSE – overbuild Partitioning 18. Configuration of Airco unit – can’t always 37. Supplier complaints about inaccurate manufacturing and must ’çlean’orders forecasting 19. Only one person in order management who 38. Extra costs due to excess RAW in understands configuration rules demurrage 20. Errors in re-keying quotes to orders 39. Too few key workers in factory for complex configurations 21. Time taken to re-key quote to to order 40. No way to get orders dropped when factory idle Weighted Result Ranking Pareto Process Worksheet 1 Interviewees: Accountable Companies don’t manage with Projects Captured SCOR Level-3 Model Practices Benchmarking Transaction Productivity Analysis Status SCOR Efficiency Yield Practices Vol Time Elapsed RASCI Analysis Level And Subsequent 3 Identification of nextstep Analysis Focus Level 4 Input(s) - Highlight Primary Input Step 1 2 3 4 Process Steps (>4 5 and
M4SC: Layered Management Business Strategy Feedback Drives Supply Chain Strategy Segment business into supply chains, determine performance Drives Feedback Optimize network for strategic performance requirements Supply Chain Network Feedback Drives Supply Chain Process Manage processes towards strategic network goals Drives Feedback Supply Chain Resources Continuously align resources to meet process goals © 2010 Supply Chain Council. ALL RIGHTS RESERVED. | 2013 M4SC – Getting Started | 5 | 22 March 2013
Page 1 and 2: M4SC Overview: Getting Started © 2
Page 3: Addressing Issues • SCC has had a
Page 7 and 8: Simplification & Organization throu
Page 9 and 10: M4SC Structure • Process Layer
Page 11 and 12: M4SC Introduction Series Webinar 1
Page 13 and 14: M4SC Volunteer Education & Research
Page 15 and 16: About Supply Chain Council • Form
Page 17: MANY THANKS! © 2010 Supply Chain C

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