1 © The Delos Partnership 2004 Supply Chain Workshop – 21/22 April 2004 Starting the journey.

1 © The Delos Partnership 2004

Supply Chain Workshop Supply Chain Workshop – 21/22 April 2004– 21/22 April 2004

Starting the journey


MGG Supply Chain MGG Supply Chain ImprovementImprovement

NOW

FUTUREThe picture for changeThe picture for changeThe journey aheadThe journey ahead

Clever

Competent

Control

Processes

Information

MGG will have a world class integrated Supply Chain of

Internal / External sites.

- Excellent Customer Service

- Lowest Cost of Goods

- Compliance Safety & Quality

MGG will have a world class integrated Supply Chain of

Internal / External sites.

- Excellent Customer Service

- Lowest Cost of Goods

- Compliance Safety & Quality

Loosely connected sites, level of process definition

- variable service

- competitive cost of goods

- compliance with Safety & Quality

Loosely connected sites, level of process definition

- variable service

- competitive cost of goods

- compliance with Safety & Quality

People


Objectives for WorkshopObjectives for Workshop

1. A practical Common vision and how it can be achieved - quickly

2. Excitement at what is possible – which leads to motivation

3. Actions that will say how to get Control

4. How to apply Lean/Agile

5. Commitment to becoming World Class


The Delos ModelThe Delos Model

InnovationInnovation

VisionVision

StrategyStrategy

PrioritisationPrioritisation

DemandDemand

SupportSupport

SupplySupply


Workshop OutlineWorkshop Outline

1. Intro exercise• Familiarisation• Scene setting• Objectives

2. Establish a vision• Organisation [ e.g. connected companies with joined up thinking and processes]• Information systems• Culture• Measures and targets

3. Describe the processes for the supply chain and how they should work; application of Lean, Agile and Quality concepts

• Innovation, Demand and Supply• Culture• Information and systems• Measures

4. Action Plan• Short term/Medium Term/Long Term• How to prevent failure• Who/What/When/Where/How


VisionVision

Define how the overall organisation should look – e.g.

• Virtual Centre• Locally global• Common processes• Culture of honesty, trust and realism• Linked information systems• Extraordinary levels of performance

Carried out in workshop groups


MGG Supply Chain VisionMGG Supply Chain Vision

MEASURED BY

EXCELLENT CUSTOMER SERVICES On-Time in Full 3rd Party.

On-Time in Full Group

Back Orders

Lead Time

99%

99%

1%

4 wks

LOWEST COST OF GOODS Overhead / 1000 Production

Overhead / Pack

Cost of Sales

Material Cost

Stock Write-Off as % of Sales

3€

0.1€

< x %

?

<0.1%

QUALITY Batches Right First Time

Recalls

Regulatory Audit Success

Cost of Batches Rejected

Customer Complaints

99.99%

0

10.0%

<3 ppm

HSE Lost time accidents

Frequency

HSE Incidents

X

<Y


Merck Benchmark – Merck Benchmark – Inventory TurnsInventory Turns

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

Aceto

Perrig

o

Mer

ck K

GaAAnd

rx

Chatte

mSico

r

Ranba

xy Barr

Leine

r Hea

lth P

rodu

cts

Dr Red

dy's

Myla

n

Stada

Endo

Ivax

Teva

Wat

son

Chiron

King

Scher

ing

Fores

t

Source : annual reports and Hoover.com


Describe the processesDescribe the processes

Outline how each local site should work and global interaction

• Information systems– Integrated– Simple links across geography

• Ways of working– Material and Capacity planning– Service Level offering

• Culture– Honesty– Realism– Trust


Process definition formatProcess definition format

1. Introduction

2. Description

3. Breakout group [s]

4. Feedback

5. Record decisions and activities


What is a Supply Chain ?What is a Supply Chain ?

STRATEGIC PLANS.

OPERATIONAL PLANS.

DEMAND PLANNING

SUPPLY PLANNING

SUPPLIER MANAGEMENT.

CONTRACTS.

TRANSPORTATION.

MAKE PLANNING.

CAPACITY PLANNING.

MATERIAL MANAGEMENT.

LEAN MANUFACTURING.

WAREHOUSE MANAGEMENT.

TRANSPORT MANAGEMENT.

DOCUMENTATION.

RELATIONSHIP MANAGEMENT.

CUSTOMER ORDER MANAGEMENT.

REVENUE MANAGEMENT.

MEASUREMENT

INFORMATION

PEOPLE

PLANPLAN

PROCESSPROCESS

BUYBUY MAKEMAKE MOVEMOVE SELLSELL


A Global modelA Global model

Week 1 Week 2 Week 3 Week 4

DemandPlanning

DemandPlanning

DemandPlanning

DemandPlanning

DemandPlanningCustomer

New ActivityReview

Innovation

Innovation

SupplyReview

SupplyReview

SupplyReview

SupplyReview

Financial/Priorities

ConsolidatedRecocniliation

Financial/Priorities

CorporateReview

SeniorTeam

Review

GLOBAL

LOCAL

LEVEL 1Country/Market

LEVEL 2Region/Business

Unit

LEVEL 3Europe/

Global HQ


Describe the processesDescribe the processes


VisionVision

StrategyStrategy


DemandDemand

SupportSupport

SupplySupply


VisionVision

StrategyStrategy


DemandDemand

SupportSupport

SupplySupply


VisionVision

StrategyStrategy


DemandDemand

SupportSupport

SupplySupply

United KingdomUnited Kingdom

IrelandIreland GermanyGermany


VisionVision

StrategyStrategy


DemandDemand

SupportSupport

SupplySupply

SpainSpain


VisionVision

StrategyStrategy


DemandDemand

SupportSupport

SupplySupply

FranceFrance


VisionVision

StrategyStrategy


DemandDemand

SupportSupport

SupplySupply

AustraliaAustralia


Framework for Process Framework for Process ReviewReview

ProcessProcess

InputsInputs PurposePurpose OutputsOutputs

PeoplePeople Desired CultureDesired Culture MeasuresMeasures

Link to otherLink to other

ProcessesProcesses


Prepare an Action planPrepare an Action plan

1. Define the actions required2. Allocate activities to be undertaken on

return3. Identify resources required4. Identify short term gains5. Identify longer term activities6. Agree outline implementation plan for

each site


Delos Change JourneyDelos Change Journey

MobiliseMobilise DesignDesign CommunicateCommunicate ReviewReviewUnderstandUnderstand

AASSSSEESSSS

AASSSSEESSSS

EDUCATIONSTRATEGY & DESIGN

DEFINE & MEASURE BENEFITS

ORGANISATIONSYSTEMS

WorldClass

LocalClass


Process to get thereProcess to get there

1. Prepare the workshop• 3 days on site to familiarise with MGG• Tailor Material

2. Carry out workshop• 21/22 April – offsite with social event

overnight

1 © The Delos Partnership 2004 Supply Chain Workshop – 21/22 April 2004 Starting the journey.

Documents

Transcript of 1 © The Delos Partnership 2004 Supply Chain Workshop – 21/22 April 2004 Starting the journey.