© The Delos Partnership 2007 page 1
Integrated Enterprise Integrated Enterprise LeadershipLeadership
Implementation
© The Delos Partnership 2007 page 2
Integrated Enterprise Integrated Enterprise LeadershipLeadership
AACCTTIIOONN
AACCTTIIOONN
Week 1 Week 2 Week 3 Week 4
InnovationReview
InnovationReview
CustomerDemandReview
CustomerDemandReview
SupplyPlan
Review
SupplyPlan
Review
PriorityReview
PriorityReview
Stage 1Stage 1
Stage 2Stage 2
SeniorTeam
Review
SeniorTeam
Review
Stage 5Stage 5
Stage 7Stage 7
Stage 3Stage 3
SupportReview
SupportReview
Stage 6Stage 6
Stage 4Stage 4
© The Delos Partnership 2007 page 3
Integrated Enterprise Leadership Integrated Enterprise Leadership ImplementationImplementation
AUDIT
Workshopforkey
people
Organiseand
createTeams
UnderstandAnd prepare
Workshop(s)FacilitationFor Design
Team(s)
Develop
Pilot andrun
7 Stageprocess
Extend to wholebusiness and
refine
Implement
Month 1 Month 2 Month 3
© The Delos Partnership 2007 page 4
The MechanicsThe Mechanics1. Assessment of current practice2. Cost/Benefit Analysis3. Educate the management team4. Organise and assign resources 5. Workshop(s) for Project Team and Task Teams
Define: Families - process vs. product Volume and unit of measure Planning horizon Performance measurement and accountabilities
Define process steps - monthly timetable, review groups, agenda
6. Pilot one family or one business then rapidly add the rest7. Evolve the process
© The Delos Partnership 2007 page 5
Stage One - AwarenessStage One - Awareness
AUDIT
WorkshopForKey
people
Organiseand
CreateTeams
UnderstandAnd prepare
Workshop(s)For
Team(s)
Develop and Extend
Pilot andRun
7 stageprocess
Extend to wholeBusiness and
Refine
Implement
Month 1 Month 2 Month 3Awareness
© The Delos Partnership 2007 page 6
Cost/Benefit analysisCost/Benefit analysis
Year 1 Year 2 Year 3
Cash Flow Benefit
£ 3.55 m £ 3.55 m
Costs £ 1.55 m £ 0.17 m £ 0.17m
Net Benefit - £ 1.55 m + £ 3.38 m + 3.38 M
Assuming 12 month implementation cycle
© The Delos Partnership 2007 page 7
Benefits Seen by some companiesBenefits Seen by some companies
Customer service• ICI Agrochemicals from 60 % to 95 % plus
• Cray Valley from 40 % to 95 %
• Sanofi Aventis Tablet plant 50 % to 95 %
• Interbake from 90 % to 98 %
• Scott’s from 91.7 % to 97.8% on all products
• Cast-Fab and Eclipse held high customer service levels while sales increased by 40 %
• Levi’s from 80 % to > 95 %
© The Delos Partnership 2007 page 8
Benefits Seen by some companiesBenefits Seen by some companies
Inventory• ICI Agrochemicals reduced Finished Goods inventory by 30 % [£ 27 mn]
• Cray Valley by 30 %
• AGFA from 120 days to 40 days
• Amcor cut inventory by 40 %
• Coca-Cola reduced inventory by 56 %
• Scotts reduced inventory by $ 100 m or 33 %
• Levi Strauss EMEA 30 %
© The Delos Partnership 2007 page 9
Benefits Seen by some companiesBenefits Seen by some companies
Planning Performance• Forecast accuracy improved at Sara Lee
• Forecast Accuracy at Coca Cola improved by 9.7 %
• Production Plan performance by family of at least 95 % achieved by AGFA, Amcor, Cast-Fab, Coca Cola midi, ICI Agrochemicals, Cray Valley. Norse Dairy Systems
• Supplier Delivery performance of 95 % plus achieved by most companies
• Levi Strauss Forecast Accuracy by 35 %
© The Delos Partnership 2007 page 10
Initial EducationInitial Education• Principles of Integrated Enterprise Leadership
One set of numbers Teamwork Common sense It’s a formal process not a meeting Strategic not operational
• Build the understanding of a broad group of the impact on the business
Reorganise some existing processes Improving and formalising communication Longer term view, and not fire-fighting Integration of all business processes
© The Delos Partnership 2007 page 11
Stage Two- OrganisationStage Two- Organisation
AUDIT
WorkshopForKey
people
Organiseand
CreateTeams
UnderstandAnd prepare
Workshop(s)For
Team(s)
Develop and Extend
Pilot andRun
7 stageprocess
Extend to wholeBusiness and
Refine
Implement
Month 1 Month 2 Month 3
Organisation
© The Delos Partnership 2007 page 12
Implementation ResourcesImplementation Resources Executive Sponsor Project Leader
Responsible for implementation Full-time Continuing role
Process Step owners Responsible for process development Continuing role
Integration Team – cross process Process ‘Design Teams’ with cross functional
membership
© The Delos Partnership 2007 page 13
Process Step OwnersProcess Step Owners
SENIORTEAM REVIEW
PRIORITY PROCESS
INNOVATION
CUSTOMERS
SUPPLIERS
SUPPORT ACTIVITIES
© The Delos Partnership 2007 page 14
Role of Process OwnersRole of Process Owners
•Ensure full development of the process•Chair the process meetings •Develop process in line with workshops
Inputs/outputs Performance measures Team members
•Keep to the plan•Long term process development•Provide enthusiasm and knowledge for ideas
© The Delos Partnership 2007 page 15
Process OwnersProcess Owners
• It is impossible to evolve the process without someone to supervise and manage the process who makes the connection between the technical teams and the supporting functions
• This process owner is not necessarily the person who is most expert in a particular function, but they must be able to understand the requirements and how to use the technology in the day to day business
• This person must be sufficiently respected within the organisation to be able to make decisions. They must be best placed to develop and put in place new and simpler processes, and to negotiate the balance between operational objectives and technical requirements.
© The Delos Partnership 2007 page 16
Roles of Process TeamsRoles of Process Teams• Review current processes• Review software and data aspects
Develop families Develop rationale for horizon Develop links to MPS, financials, etc.
• Develop data• Develop roles and responsibilities• Document procedures• Review linkages to other steps and existing business
meetings• Identify and define Key Performance Indicators• Review behavioural requirements
Honesty, trust Real team work
© The Delos Partnership 2007 page 17
Process Team RoleProcess Team Role
VISION
VISION
STRATEGY
STRATEGY
PROCESSTEAMS
WORKINGSOFTWARE
DETAILEDPOLICIES
ANDPROCEDURES
DETAILEDROLES
CULTURE
DETAILED
KPIS
FORECASTING
CUSTOMERSERVICE
© The Delos Partnership 2007 page 18
Stage Three - KnowledgeStage Three - Knowledge
AUDIT
WorkshopForKey
people
Organiseand
CreateTeams
UnderstandAnd prepare
Workshop(s)For
Team(s)
Develop and Extend
Pilot andRun
7 stageprocess
Extend to wholeBusiness and
Refine
Implement
Month 1 Month 2 Month 3
Knowledge
© The Delos Partnership 2007 page 19
Cascade educationCascade education
ProcessOwners
INNOVATION
CUSTOMERS
PRIORITy
Process Users
SENIORTEAM
EXTERNALEXPERTISE
SUPPORT
SUPPLIERS
© The Delos Partnership 2007 page 20
Internal Education and Workshop(s)Internal Education and Workshop(s)
• Objectives Get everyone to the same level of understanding
It is a process not a meeting It is strategic not short term firefighting It needs honesty, trust etc.
Design the process steps Innovation Review Demand Review Supply Review Support Review and Priority Review Senior Management Review
Review links to existing activities Review culture issues and measures
© The Delos Partnership 2007 page 21
Framework for Process ReviewFramework for Process Review
ProcessInputs Outputs
People
Culture Measures
System
© The Delos Partnership 2007 page 22
Framework for Process ReviewFramework for Process Review
Process NameProcess NameInputsInputs Purpose/AgendaPurpose/Agenda OutputsOutputs
PeoplePeople Desired CultureDesired Culture MeasuresMeasures
Systems to support this stepSystems to support this step
Link to otherLink to other
ProcessesProcesses
© The Delos Partnership 2007 page 23
Cascade educationCascade education
ProcessOwners
INNOVATION
CUSTOMERS
PRIORITy
Process Users
SENIORTEAM
SUPPORT
SUPPLIERS
© The Delos Partnership 2007 page 24
Internal Education and TrainingInternal Education and Training
• Objectives Everyone understands the new process Clarify process and culture changes Training in use of systems Understanding of Performance Measures Clarify links between functions and process steps
• Outcome Understanding of all aspects of Integrated Enterprise
Leadership Readiness for new ways of working
© The Delos Partnership 2007 page 25
Internal EducationInternal Education• Carried out by Process Owner• Supported by expert as necessary• Explain to everybody why• Engage in new ways of workingFormality
Agendas Agreed timetable
• Reinforce culture• Explain Performance Measures
© The Delos Partnership 2007 page 26
R&T Top Level R&T Top Level ProcessProcess
Categorise to identify operations Related Projects
Update central document showing project status and
impact on operations
Convert project data into
operations impact
R&T Project Managers
Collate/generate new ideas for R&T projects
Review progress
To Operations Innovation
To Customer Demand Planning
To Supply Planning Phase
© The Delos Partnership 2007 page 27
R&T R&T PROFORMAPROFORMA
• Changes since previous cycle must be highlighted
Project Description Part Number Affected Change Embodiment Point MRP Status
HVOF All with Chrome Change process - assume same load Jan-06 no action until 05
High Speed Machining Jobs on profiler assume all runs on profiler half Jan-05 no action until Jun04
Project Description Resource Affected Impact MRP Status
Project Description Project Owner Start Date Estimated Application DateHVOF JT - velizy Oct-03 Jan-06High Speed Machining CS - Glos Jan-03 Jan-05
Projects with Ops content:
Impact on Ops:
© The Delos Partnership 2007 page 28
Integrated Enterprise Leadership Integrated Enterprise Leadership ImplementationImplementation
AUDIT
Workshopforkey
people
Organiseand
createTeams
UnderstandAnd prepare
Workshop(s)For Design
Team(s)
Develop
Pilot andrun
7 Stageprocess
Extend to wholebusiness and
refine
Implement
Month 1 Month 2 Month 3
© The Delos Partnership 2007 page 29
Pilot the processPilot the process
• Choose one product family or business area• Run through the full seven step process for one or two
months• Review success of each step and refine/improve• Review impact on rollout• Finalise software and data requirements• Build enthusiasm for the ideas
Rolling business plan Long term view not fire fighting Improved communication Fewer ad hoc meetings
© The Delos Partnership 2007 page 30
Extend the process to the whole Extend the process to the whole businessbusiness
• Make Integrated Enterprise Leadership the business process
• Move to new process as soon as possible For all product families For all business units For all functions/processes
• Avoid the permanent project syndrome
© The Delos Partnership 2007 page 31
Step Five - CompetencyStep Five - Competency
AUDIT
WorkshopForKey
people
Organiseand
CreateTeams
UnderstandAnd prepare
Workshop(s)For
Team(s)
Develop and Extend
Pilot andRun
7 stageprocess
Extend to wholeBusiness and
Refine
Implement
Month 1 Month 2 Month 3
PrepareBudget
from IELProcess
Competency
© The Delos Partnership 2007 page 32
Global Integrated Enterprise Global Integrated Enterprise Leadership Leadership
1. Create Global Team, with local people2. Create a generic model or template3. Create local teams – local ownership4. Adapt the generic model to local
environment5. Pilot locally6. Aggregate and carry out a global pilot7. Operate the global process
© The Delos Partnership 2007 page 33
Global Integrated Enterprise Global Integrated Enterprise LeadershipLeadership
TemplateTemplate
Global TeamGlobal Team
Local ModelLocal Model Local ModelLocal ModelLocal ModelLocal Model
Local TeamLocal Team Local TeamLocal TeamLocal TeamLocal Team
© The Delos Partnership 2007 page 34
Multi-Level Integrated Enterprise PlanningMulti-Level Integrated Enterprise Planning
Week 1 Week 2 Week 3 Week 4
DemandPlanning
DemandPlanning
DemandPlanning
DemandPlanning
DemandPlanningCustomer
New ActivityReview
Innovation
Innovation
SupplyReview
SupplyReview
SupplyReview
SupplyReview
FinancialPriorities
ConsolidatedRecocniliation
FinancialPriorities
CorporateReview
SeniorTeam
Review
GLOBAL
LOCAL
LEVEL 1Country/Market
LEVEL 2Region/Business
Unit
LEVEL 3Europe/
Global HQ
© The Delos Partnership 2007 page 35
Cascade education – Cascade education – globally and locallyglobally and locally
LocalLocal
ProcessOwners
SENIOR TEAM
INNOVATION
CUSTOMERS
PRIORITy
SUPPORT
SUPPLIERS
Process Users
GlobalGlobal
© The Delos Partnership 2007 page 36
The global challengesThe global challenges
• Discipline across the organisation
• Common systems
• Common definitions
• Single source of information
• Timing of meetings
• Timeliness
• Leadership
© The Delos Partnership 2007 page 37
Implementation – the key issuesImplementation – the key issues
• Commitment of top team• One single agenda – apart from running the
business• Availability of data and data formats• Resources to implement• No conflicting initiatives• Willingness to link into budget
© The Delos Partnership 2007 page 38
Integrated Enterprise LeadershipIntegrated Enterprise Leadership
Success depends on:
• Commitment from the Top Team• Everyone’s understanding
It is organised common sense It is a process not a meeting
• Preparation of the process• Desire to make it work• Seeing this as the way to make the budget
© The Delos Partnership 2007 page 39
Critical Success FactorsCritical Success Factors
• Leadership from the top• Simplicity of approach• Education led by example• Early Pilot and rapid roll out
Delay is the enemy of success• Enthusiasm, dedication and knowledge of the
Executive Sponsor and Project Leader• Avoiding initiatives
© The Delos Partnership 2007 page 40
Senior Management’s roleSenior Management’s role
• Show real enthusiasm• Lead the knowledge transfer process• Insist on everyone's participation• Make sure clear decisions are made and
immediately communicated• Ensure that all the right participants attend• Persevere with desire for integration
Be a participant, not a spectator
© The Delos Partnership 2007 page 41
Leadership Leadership Leadership Leadership
Simplification Simplification Simplification Simplification
Control Control Control Control
UnderstandingUnderstandingUnderstandingUnderstanding
Progress to LeadershipProgress to Leadership
ChaosChaosChaosChaos
Process ImprovementProcess Improvement
People Impro
vement
People Impro
vement
Systems ImprovementSystems Improvement
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