driving to the effective enterprise with kpi's michael hennessey director, solution consulting, qad...

of 27 /27
Driving to the Effective Enterprise With KPI's Michael Hennessey Director, Solution Consulting, QAD Explore 2012

Author: theresa-caldwell

Post on 22-Dec-2015

214 views

Category:

Documents


0 download

Embed Size (px)

TRANSCRIPT

  • Slide 1
  • Driving to the Effective Enterprise With KPI's Michael Hennessey Director, Solution Consulting, QAD Explore 2012
  • Slide 2
  • 2 The following is intended to outline QADs general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QADs products remains at the sole discretion of QAD. Safe Harbor Statement Driving to the Effective Enterprise with KPI's
  • Slide 3
  • 3 Session overview -Learn how QAD's KPI's, Metrics, best practices and analytical tools can help monitor and drive to the effective enterprise. Speaker -Michael Hennessey Focus -Concept and details around QADs KPI framework Objectives -Alignment of customer business objectives with Key Performance Indicators -Provides KPI framework for identifying best practices -Establishes a closed-loop monitoring on performance improvement with a dashboard and metrics Overview Driving to the Effective Enterprise with KPI's
  • Slide 4
  • 4 Where every business process is working at peak efficiency and perfectly aligned to the companys strategic goals. The Effective Enterprise Driving to the Effective Enterprise with KPI's
  • Slide 5
  • 5 Five essential questions to ask about an organization: What is our mission? Who is our customer? What does the customer value? What are our results? What is our plan? Peter Drucker The First Questions: Driving to the Effective Enterprise with KPI's
  • Slide 6
  • 6 Our mission is to "Be the best in the eyes of our customers, employees and shareholders. American Standard Undisputed Marketplace Leadership. Hershey We will be the easiest pharmacy retailer for customers to use. CVS Workforce diversity gives us access to a world of different ideas and perspectives. XXX XXX is committed to maintaining a corporate culture where men and women of all ages, races, physical abilities, preferences and backgrounds are treated with dignity and respect. At XXX XXX we recognize that when diversity is valued and respected the results are improved service, customer satisfaction and a positive community image. We believe our employees make a world of difference and work to maintain an environment where diversity and inclusion is a critical component of our success. Our Diversity Vision To build a high performing environment where individual differences and contributions of employees, customers and business partners are respected and valued, the result of which is a business organization where fairness, trust and integrity govern relationships and the way we do business. What is Our Mission? Examples Driving to the Effective Enterprise with KPI's
  • Slide 7
  • 7 Delivering the Effective Enterprise Driving to the Effective Enterprise with KPI's Plan Design Operational Model Do Implement Operational Model Check Measure Results, Monitor Performance Act Refine & Strive for Improvement The Deming Model Certainly we want good results, but management by results is not the way to get good resultswork on the causes of results
  • Slide 8
  • 8 KPIs monitor the effectiveness of end-to- end business processes Business processes can involve many departments and business units in an organization. They help focus Business Operations to achieve the overall strategic goals of a company or corporation. Complacency can be prevented and value optimized for the end customer Why KPIs? Driving to the Effective Enterprise with KPI's
  • Slide 9
  • 9 Measures like service levels, inventory, utilization and cash-flow averaged across the business, dont give a clear indication as to where the problems lie and what drives Value. Applying a cookie-cutter model to different processes results in averaging The good processes compensate for the bad, and the bad bring down the good. Align Metrics to the Value Chain Driving to the Effective Enterprise with KPI's
  • Slide 10
  • 10 Align KPIs with deliberately chosen performance results. Spend time working out the performance results to align KPIs with, before you worry about what the KPIs themselves will be. Establish KPIs that monitor: -The most important outputs that the organization exists to produce -The greatest influences in support of the results the organization exists to achieve. -The results of critically important steps in the business process, the in-process drivers of its outputs. Align KPIs Driving to the Effective Enterprise with KPI's
  • Slide 11
  • 11 QAD KPIs & Business Performance Driving to the Effective Enterprise with KPI's Return on Net Assets Net Income Net Assets Revenue Costs Working Capital Fixed Assets COGS R&D SG&A Distribution Inventory Receivables Cash Growth & Profitability Capital Utilization
  • Slide 12
  • QAD Key Performance Indicators (KPIs) Driving to the Effective Enterprise with KPI's Growth & ProfitabilityCapital Utilization
  • Slide 13
  • 13 Inventory Effectiveness - KPI Driving to the Effective Enterprise with KPI's Description: Inventory Effectiveness measures the process of having the right part at the right place at the right time, with minimal investment to ensure that deliveries meet the customer requirements.
  • Slide 14
  • 14 Sub-Metrics: Inventory Effectiveness Driving to the Effective Enterprise with KPI's Forecast Accuracy Inventory Accuracy Supplier Delivery Performance Requirements Plan Accuracy Unplanned Downtime Schedule Achievement Excess Safety Stock Obsolete Inventory Production Plan Accuracy Certainly we want good results, but management by results is not the way to get good resultswork on the causes of results
  • Slide 15
  • 15 Business Strategies to Improve Metrics Driving to the Effective Enterprise with KPI's Inventory Accuracy Inventory Turns Safety Stock Level Forecast Accuracy Production Plan Accuracy Unplanned Maintenance Requirements Plan Accuracy Inventory Turns Production Plan Accuracy Obsolete Inventory Ratio Forecast Accuracy Requirements Plan Accuracy Safety Stock Utilize Industry Forecast Data Deploy Forecast Review Process Deploy S&OP Feedback Loop Solicit Varied Input Leverage Sophisticated Forecasting Systems Leverage Sophisticated Forecasting Systems Historical Data
  • Slide 16
  • 16 Strategy Enablers Within QAD Applications Driving to the Effective Enterprise with KPI's Leverage Sophisticated Forecasting Systems QAD Demand Management QAD Customer Relationship Management QAD Forecasting Application QAD Quote Management QAD BI, Browse, Reports
  • Slide 17
  • 17 Operational metrics and browses -at the operational level Alerts and reports -at a tactical level Business intelligence dashboards etc. -in aggregate And good consulting services to help customers ensure alignment... QAD Tools - Analytics Driving to the Effective Enterprise with KPI's
  • Slide 18
  • 18 Op Metrics Inventory Metrics Driving to the Effective Enterprise with KPI's
  • Slide 19
  • 19 Alerts & Reports (Condition Out of Tolerance) Driving to the Effective Enterprise with KPI's
  • Slide 20
  • 20 QAD BI 3.x Dashboard Example Driving to the Effective Enterprise with KPI's
  • Slide 21
  • 21 QAD BI 3.x - Inventory Dashboard Example Driving to the Effective Enterprise with KPI's
  • Slide 22
  • 22 QAD BI Roadmap Driving to the Effective Enterprise with KPI's BI 3.7 Sept BI 3.5 exists BI 3.6 March Future 2013+ to be determined
  • Slide 23
  • 23 Customer Strategy: -Develop and maintain a competitive edge through constant technical product innovation 30% + of revenue should be derived from new products incorporating new technologies. KPI: Technology Vitality Index Measures the revenue generated from new product sales (new product = introduced in last 4 years How measured: Using QAD BI 3 Customer Example Driving to the Effective Enterprise with KPI's
  • Slide 24
  • 24 The value of performance measurement is evident in how it has transformed performance Choose a goal Make your goal measurable by teasing out the performance result(s) it implies Name and describe your selected measure Define exactly how to calculate your measures values Interpret what your measure is saying, and understand why its saying that Summary Driving to the Effective Enterprise with KPI's
  • Slide 25
  • 25 Many people are on a quest to find the perfect performance measures or KPIs. Buy-in matters more than the perfect KPI Collaborate to choose a few reasonably good KPIs that they feel confident in Start with QAD standard offerings & use the tools available to refine existing or create new Engage QAD Services to help Make a Start Driving to the Effective Enterprise with KPI's It is wrong to suppose that if you cant measure it, you cant manage it a costly myth W. Edwards Deming
  • Slide 26
  • 26 Michael A. Hennessey Director, Solution Consulting, QAD [email protected] Questions & Answers Driving to the Effective Enterprise with KPI's
  • Slide 27
  • www.qad.com QAD Inc 2012 27