march 13-14 • san francisco, ca developing a collaborative ......drum-buffer-rope and theory of...

JPK

Gro

up

Business Forecasting & Analytics Forum

March 13-14 • San Francisco, CA

Developing a Collaborative Integrated Planning Process

March 13, 12:45pm

Dorothea Grimes-Farrow is an operations and product development leader who

has held senior level supply chain, NPI, PLM, and solutions design

accountability in a broad range of businesses for divisions of Cisco Systems,

Avaya Communications, Alcatel-Lucent and Bell Laboratories. Dorothea began

her career at Bell Laboratories doing research in learning and cognition

applicable to machine learning, User Interface and Human Factors design.

With a keen interest in product development and fulfillment, Dorothea

transitioned into challenging leadership roles in engineering and supply chain.

At Cisco Systems, she managed NPI and PLM for a $4B product portfolio that

included the most successful product of its type in the company's history.

View presentation online at:

www.jpkgroupsummits.com/attendee3

Dorothea Grimes-Farrow – Maine Pointe

Drive transformational performance improvement decisions

© 2017 Maine Pointe│All Rights Reserved│Confidential© 2017 Maine Pointe│All Rights Reserved│Confidential

ACKNOWLEDGEMENTS

References

APICS professional

association for

supply chain

management

Shmula.com, Shmula

Goes Camping:

Drum-Buffer-Rope

and Theory of

Constraints 2013

Thread Punter,

Stages of Supply

Chain Management

Evolution, 2013

►


March 13 – 14, 2017

Developing a Collaborative Integrated

Planning Process

Dorothea Grimes-Farrow,

Operations Specialist Consultant,

Maine Pointe

© 2017 Maine Pointe│All Rights Reserved│Confidential

Bring the Value Chain into a unified planning operating

model to drive transformational performance

improvement decisions.

2

Deliver cross-enterprise alignment

of planning and execution

processes to improve

predictability and financial performanc

e while managing risk

Enable collaborative,

cross-functional business decision

making across the product lifecycles

Harmonize financial and operational processes

with customer demand


Most organizations recognize these issues but

need help implementing the change

3

The Right Approach

A pragmatic and results-driven approach that helps the

organization move up the maturity curve to achieve Total

Value Optimization™ in a measurable way

The Challenge

Silo procurement, manufacturing, logistics and fulfillment

operations

The Solution

Break through functional boundaries, eliminate inefficiencies

& enhance value


Total Value Optimization Pyramid™

4

Beyond a focus on cost, to strategic

Value Creation

Value Proposition

• What services deliver the

greatest value to customers

at the lowest cost to

business through Total Value

Optimization™

Results-Driven Approach

• Value proposition is pragmatic,

measurable and focused on

strategic value

© 2017 Maine Pointe│All Rights Reserved│Confidential 5

Stages of Supply Chain Management Evolution

Source: Thread Punter, Stages of Supply

Chain Management Evolution, 2013


CASE EXAMPLES

Developing collaborative integrated processes

DISCLAIMER: The company names used in the

examples that follow are made up names and do not

represent or refer to any known company.


Strengthen S&OP and alignment to Inventory processes

7

$7.50 B publicly traded company that develops, manufactures, and markets mobility specialty

products for a variety of uses and industries. A Company, Inc., serves a competitive public and

private global market.

Situation

Significant Issues

‒ $550 M legacy inventory not turning

‒ Ineffective sales and operations

planning (S&OP) processes with little

sales and marketing ownership

‒ High operating costs

‒ Plans lacked an effective Management

Operating System

Significant challenges

‒ C-Suite and functional turnover

‒ Entrenched, siloed functional organizations

‒ Lacks coordination to achieve strategic

business goals across functions or

geographies

‒ Incomplete integration of a large acquisition

‒ Over-reliance on technology differentiation in

a market becoming increasingly commoditized

through global competition

Solution

• Designed and implemented an operating model that defined clear functional responsibility and

goals for inventory reduction

• Categorized inventory by movement – Runners, Repeaters, Strangers. Deployed a new

inventory model and order policies to shape demand toward preferred products

• Instituted new processes redesigning S&OP and clarified roles and responsibilities, improving

responsiveness to real demand, and eliminating builds from phantom demand

• Incented Product Marketing and Supply Chain to shared forecasting risks

• Integrated key performance indicators (KPIs) across the value chain

Results • Reduced legacy inventory by $50 M in 90 days, with a another $100 M projected by year-end

CS102


Implement platform for Supply Chain

transition to Software

8

Hardware company, Inc., is a $10 B global high technology company with number 1 or 2 marketshare in

their business sectors. Long viewed as the bellwether in the industry, company designs and markets

internet products and services. Made up of five (5) units that together earn most of their revenue from

hardware offerings.

Situation

Solution

Results

• Built and gained alignment on a platform that Supply Chain could build a 2020 cross functional plan.

• Redirected strategies; provided a foundation that would guide investments

CS103

Hardware

Company

Inc.

Significant Issues

• No single source of truth for SW timeline

• Source data dispersed and siloed within the

equivalent of $7 B revenue

• Suppliers receive mixed messages about

software revenue adoption curve

Challenges

• Grow recurring revenue through

software and cloud technology.

• Supply chain operations is where

hardware –to-software revenue shifts

will be executed .

• No common understanding of how fast,

how big, how soon revenue transition

will occur

• Supply chain operations processes are

hardware focused

• Conducted a 360 degree analysis, identified the total revenue breakdown by business

• Aligned software revenue definition seven-deep

• Validated software roadmap against business readiness and market adoption

• Served as a liaison between data stewards; found every finance lead working on the same problem

• Identified data stewards and built consensus for data governance


Implement Operating Model for Total Value Optimization

9

X Inc. and Y Inc., merged to form Joint Company, Inc., medical supply distribution organization.

Joint-co is made up of seven (7) units that together provide diversified product offerings in it’s market

sector. The company has global locations in North America, India, and Western Europe.

Situation

Solution

Results

CS103

Joint –Co,

Inc.

Achieved 20% breakthrough productivity

Challenges

Joint Co., needs 20%

productivity

improvement to meet

its fiscal budget

needs to retool and

increase headcount

by 100 persons

Issues

• Joint-co seven units are meeting their functional performance

metrics but are not optimized at the business level

• X Inc., has a get it done by any means culture even though it

often results in unintentional & intentional redundancy

• Y Inc., believes that their business is too unique to fit into any

one operating model

• Joint-co has no operating model that enables them to baseline

true productivity.

• Characterized work that people did by the service it provided

• Rated services based on total value to customers

• Developed processes, scorecards and templates to evaluate and prioritize services against their

total value contribution

• Revised service level offerings across all categories to ensure consistent or improved ROI

• Used hackathons to collect input from people closest to the work

• Adopted Operating Model: What services will be delivered, by whom, and how will we co-operate.


Situation

Solution

1. Every infrastructure has a bottleneck

2. Demand > service capacity

3. Throughput is dependent on the throughput of the bottleneck.

4. To maximize output, a system must keep the bottleneck producing at 100%

capacity at a high level of productivity

5. Non-bottleneck processes should be working at less than 100% capacity, so as

to not over-burden the bottleneck with large batches of work-in-process

Results The Theory of Constraints: Systems-wide awareness.

CS103

LEARNINGS

Source: Shmula.com, Shmula Goes Camping: Drum-Buffer-Rope and

Theory of Constraints 2013


An integrated change management approach that implements and

accelerates sustainable results


Change is not a Straight Line Process


From Awareness to

Quiet ownership

Change hurts – Indecision kills


ORCI TECHNIQUE: “WHAT? ITS NOT MY DECISION?”

Owner, Responsible, Consulted and, Informed

Roles and accountabilities are placed appropriately, understood and accepted by all

involved, and that outcomes at the lowest level are linked to outcomes at the highest

level.

OWNER –Ultimately accountable for results; sign-off & deciding vote; process owner

and coordinator of the entire effort. Only one “O” assigned to a function.

RESPONSIBLE –Assist “O” achieve the outcome. May be two or more “R” personswhose degree of accountability is determined by designated “O.”

CONSULTED –Must be brought into the process before a final decision or actiontaken either as a SME or stakeholder.

INFORMED – Must be kept informed on progress; either as a stakeholdercollaborative courtesy.


Thank you.

Dorothea Grimes-Farrow

march 13-14 • san francisco, ca developing a collaborative ......drum-buffer-rope and theory of...

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