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BPTF Architecture Overview - Value Chain Group

BPTF Architecture Overview - Value Chain Group

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Table4TopProcessImprovementPrioritiesTheexecutiveteamestimatedpotentialroughcutsavingsusingaverageresultsfromothercompaniesblendedwiththeirnewknowledgeofthemagnitudeoftheirgapstobestpractice.Theydiscoveredthattheirpotentialsavingsweretoolargetobeignored.TheyweremotivatedtoapointofcommitmentforfundingacomprehensiveprojecttodevelopbestpracticeprocessdesignsandsolutionroadmapsforIBPandIPC.Toavoidlosingfocusandspreadingtheirresourcestoothin,theydecidedtoaddressthe“OrdertoCash”processafterthecompletionoftheIBPandIPCinitiatives.KeyPerformanceMeasurementACCCurrent<strong>Value</strong>ImprovementPotentialEstimatedBenefitIncreasedForecastAccuracy 66% 1825% $500kIncreasedSalesRevenue $200M 1015% $20MIncreasedOnTimDelivery 87% 1050% $3MInventoryReduction $75M 1864% $20MSafetyStockReduction $8M 1145% $2MIncreasedProductivity $45M 3045% $15MTable5BenchmarkResultsComparison(CourtesyofOliverWight)ACCconductedaplanningsessionduringwhichformal<strong>BPTF</strong>programgoalsandobjectiveswereestablishedasabaselinetoassesstheirprogress.Theprojectteamreviewedexistingprocessdocumentationandprocessknowledgeacrossasampleofthe20SBU’s.ThefindingsweretranslatedintotheframeworktocontextualizeACC’s<strong>BPTF</strong>baseline.Coreteammemberswerethenprovidedrigorous,detailedprocesseducationfromtheoutsideprocessexperts,andweretrainedontheframeworkstructureandintegratedmethodology.Theydeterminedanddocumentedvaluechainsegmentation,establishedimprovementprioritiesandcreatedaprojectcharterforexecutiveapproval.Twodesignteams,oneforIBPandoneforIPC,thenmovedintoaseriesofdesignworkshopstoestablishcriticaldesignparameters,suchasplanninghorizon,planningproductfamilies,timefences,performancemeasuresandtolerances,lotsizesandleadtimes.Theythenturnedtoa<strong>BPTF</strong>XRMcontainingOliverWightprocessdesigntemplates.TheyutilizedClassAenablingIntegratedBusinessPlanningandIntegratedPlanningandControlprocessflowdiagramsandsupportingdocumentationasthestartingpointsfortheirdesigns.Ratherthanstartingwithablanksheetofpaper,thedesignteamswereabletobeginwithanarchivedflowchartscompletelyintegratedwiththeOliverWightClassAconceptsandprincipleslearnedduringdesignteameducationandwithcompletelyintegratedinputsandoutputsatthevariouslevelsofdetail.Theirfocusmovedimmediatelytosimplemodificationsofthearchiveddesignstobetterrepresenttheirspecificbusinessesandbusinesschallenges.Theresultingredesignforeachbusinessprocesswas,asaresult,completedamatterofafewdaysandreadiedforendtoendtesting.Copyright©2010<strong>Value</strong><strong>Chain</strong><strong>Group</strong>allrightsreserved|PartIIIPractical<strong>BPTF</strong>Application20

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