100927 Principles and Trends SCMandB Process Management
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Transcript of 100927 Principles and Trends SCMandB Process Management
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Focused Consultancy, Measurable Benefits
www.mobius.eu
Principles and Trends inSupply Chain Management andBusiness Process Management
Amsterdam, 1 October, 2010
Prof. Dr. ir. Hendrik Vanmaele
mailto:[email protected]:[email protected] -
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AGENDA
Supply Chain Management today
Process Organization
From Process Mapping to Business ProcessManagement
Corporate Performance Management
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Supply ChainDefinition
A supply chain contains these elements:
Suppliers deliver inflow of Raw materials / Intermediates / finished products
Goods for production or distribution Consume raw materials and supply chain resources
Clients consume OUTFLOW of Intermediates / finished products
Assets add value throughout the supply chain Production / Inventory / Transport
Organization a framework for planning and control
supplie
rs
client
s
Production Finishing Distribution
FORECAST INFORMATION
MATERIAL FLOW INFORMATION
ORDER INFORMATION
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Supply Chain Management is a framework for :
Managing all mentioned supply chain elements Providing information transparency throughout the supply chain
Planning and controlling business processes within the supply chain
With the objective to obtain : Agile, flexible and reliable satisfaction of market demand
Support for all the objectives of the organization
Continuous improvement of all processes Integrated optimization yielding better results than the local optimization of individual
processes
Suppliers
Clients
MATERIAL FLOW INFORMATION
FORECAST INFORMATION
ORDER INFORMATION
Supply Chain ManagementDefinition
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Supply Chain Management
Focus concepts : End-to-end process integration,
Information transparency and consolidation,
Segmentation based on requirements
Todays challenges Segment Focused supply chain solutions
Multi-echelon end-to-end supply chain optimization
Integrated planning approach
Product life cycle management
Strategy implementation (KPIs)
Collaborativeness (CPFR)
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SCM framework systems & processes
Master planning Rough Cut Capacity PlanDemand
PlanningPurchasing &
MRP
Production & distributionplanning
ATP & DemandFulfillment
Strategic Network Planning
Sales & Operations Planning
Scheduling Transport plan
At each level: determine priorities / control capacity / solve conflicts
Lang
term
Mid
term
Short
term
suppliers
Clients
Raw material Semi finished
finishedEDC
Production Finishing Distribution Sales
WIP WIP Transit
finishedRDC
Purchase
CODP
Network design Portfolio design
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Demand Managementgeneral process overview
Management interests
Supporting services
Core processes
Process Performance Management:
Performance & KPI reportingMgmt coordination:
S&OP CycleFinancial coordination:
Pricing & Payment terms
Organization
People in the Demand Management Team
Customer Portfolio Demand channels
Service setting
Article Portfolio Product generation planning Product lifecycle planning Product classification
Order promising& order execution
Influencing demand Proactive Reactive
FCST Consumption / ATP Order fulfillment
Systems and algorithms for demand Management
Demand Planning Demand Planning coordination
Generating the demand plan- sales judgments- forecasting- collaboration
Validating the demand plan Interaction with S&OP cycle Publishing the demand plan
- planning and MPS- management
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Overview
Statistical
FC
Market
Intell.
correction
Hierarch.
approval
Unconstr.
Sales
FC
S&OP
Preparation
Scenario
calculation
S&OP
meeting
Demand
&Supply
Plan
consensus
Consensus
Demand
& Supply
plan
Demand
&Supply
Plan
translation
Prod.
plan
Financial
Plan
Supply
previewSupply
analysis
Financial
preview
Data collection
& purification
Data collection
& purificationFinancial
analysis
S&OP cycle
Demand & Supply plan measurement
& reporting
Sales
planData collection
& purification
Demand
Supply
Finance
Sales and Operations Planninggeneral process overview
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AGENDA
Supply Chain Management today
Process Organization
From Process Mapping to Business ProcessManagement
Corporate Performance Management
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From a Functional towards a Process Oriented OrganisationTraditional Organization
Partner
Customer
Functional SILOs within organization
Characteristics
Limited process ownership (hierarchical management decides) High (uncontrollable) lead times
Non value adding activities (inefficiency, waste)
Limited integration with other partners
Isolated operational strategies
Limited economy of scales
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From a Functional towards a Process Oriented OrganizationProcess Oriented Organization
Customer
Partner
Characteristics
Quick response time : short and predictable lead times
High degree of accuracy
Integration with different partners (customer, supplier,)
Participative decision structure
Standardization of repetitive work
Integrated system / consolidated management of data
Optimal use of resources
Flexible organization
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Process Management
Business Process Management starts from the processes but has animpact on organization, manpower and ICT.
CRM
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AGENDA
Supply Chain Management today
Process Organization
From Process Mapping to Business ProcessManagement
Corporate Performance Management
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Process Management as EnablerStrategic Context
Mission / Vision
Objectives
Processes/Projects
Performance indicators
Where are we going ?
What do we need toaccomplish to get there?
How can we accomplishthose objectives?
Are we accomplishing whatwe need to accomplish ?
data source
Who should ensure theseobjectives are being realized?
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Process Mapping and Design
Process design is the single definition of businessprocesses aiming at:
Initial effort to evolve to a process oriented organization.
Eliminating all activities without added value.
Supporting the introduction of new systems.
Applied techniques:
Graphical representation of the process by means of Flowcharts.
Data flow diagrams (input/output).
Result:
Process definitions with related flow charts and
procedures.
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Process Mapping and Design
P M
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Process ManagementIngredients
PROC
ORG
ISAON
IC
POP
Customer
P M
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Process ManagementIngredients - Organisation
D ep ar tm en t A D ep ar tm en t B
Process
ORGANISATION
Steering
Committee
werkgroepenNew Projects
Processes
Implementation
& Monitor ing
Prioritize,decide,manage
(Lean) Daily
Management
Proj ect Plans
BPM Prog ram Off iceManagement
Process Mgr
ProcessCoordinator
Process Own ers
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AGENDA
Supply Chain Management today
Process Organization
From Process Mapping to Business ProcessManagement
Corporate Performance Management
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What is performance measurement ?A definition
What is performance measurement ?
Theprocessof developingmeasurable indicatorsthat canbe systematically tracked to assess progress made in achievingpredeterminedgoalsand using such indicators to assess
progress in achieving these goals
The process that supports thedecision makingprocess bygenerating indicators of how well the () system is achieving thedesired or expected outcomes
Financial andnon-financialcomprehensive manner tomonitor organisational progress
S i i h h
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Starting with the strategyObjectives
Objectives link the mission/vision to the desiredresults
Strategicobjectives
Operationalobjectives
Critical success factors
What is our ambition ?What are our long term goals ?
How will we realize them ?
What do we need to do ?
S i i h h
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Starting with the strategyObjectives
Objectives should be SMART to be effective
Specific: precise about what has to be achieved
Measurable: clear on how to quantify the realization of the
objective
Agreed or achievable: realistic expectations
Relevant: to the organization and to whom it is assigned
Time-based: start or finish date
T l ti t t i t ti
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Translating strategy into actionProcesses and projects
Strategy does not realize itself, initiatives are necessary
Initiatives consists of activities that transform inputs into outputwhich realize a certain effect
Initiatives take the shape of:
permanent activities (processes)
temporary activities (projects)
Organizations start with a given set of projects and processes:
Are we doing what we should be doing ?
Is what were doing, what we should be doing?
Inputs Activities Outputs Effects
D fi i f i di
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Defining performance indicatorsWhat are performance indicators ?
Performance indicators are numerical representations of
phenomena that should be controlled
Performance indicators are derived from objectives
They measure the degree of realization of an objective
Performance indicators quantify phenomena
They can take different shapes Numbers
Rankings
Categories (Yes /No)
Different ways exist for measuring the data
Observe
Extract from a recording
Ask
D fi i f i di t
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Defining performance indicatorsGolden rules
Criteria for a good performance indicator Does it measure the objective
Does it measure team rather than individual performance
Can it be translated into action
Does it have a clear polarity
Do we have a mix of leading and lagging indicators
Can we avoid unwanted effects or manipulation
Does the value of the information outweigh the effort of collecting it
B l d d
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Balanced scorecard2nd generation balanced scorecard: Strategy maps
Defining how the organization will distinguish itself in order to
realize its mission/vision
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Q & A