Assess. Plan. Results. Sysco Distribution Continuous Improvement Process: Continuous Improvement Thinking Methodology. Sysco Talent Management
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1 Assess Plan Measure Execute Sysco Distribution Continuous Improvement Process: Continuous Improvement Thinking Methodology
2 What is the Sysco Distribution Continuous Improvement Process? The objective of the Sysco Distribution Continuous Improvement Process is to create a standard management approach which is consistent across all operating companies. It will drive continuous improvement across the three key dimensions of safety, cost, and service/quality by Creating a clear & consistent point of view on the 10 key measures of Establishing minimum standards for each metric along with detailed improvement plans Instituting a uniform planning process across all operating companies Creating a framework to capture best practices and share them across the enterprise Building tools and dashboards which align metrics to the priorities of the business Embedding a consistent methodology to evaluate, track, and report on Adapting tactical plans to meeting operating objectives Each VPO is expected to engage their team to develop and regularly update a detailed operating plan which improves business. 2
3 Sysco s operational discipline is grounded in a simple 4-step process that we will flawlessly execute Figure out what we need to change going forward Evaluate what, if anything, needs to change going forward Determine if we stay with our existing plan or change course Assess Plan Define what we are going to do Set priorities for improvement Create SMART goals for tactical improvement Determine resources required Determine if we met our expectations Track progress on operational and financial KPIs Measure Execute Do what we said we were going to do Follow standard processes Implement best practices Lead change 3
4 Existing best practices have been documented to drive across key dimensions Safety Injury frequency Accident frequency Cost Service & Quality Fleet cost per mile Facility cost per piece Routing efficiency Cases per mile Driver Off-load rate Errors per 1,000 pieces Inbound warehouse Pieces/man-hour Outbound warehouse Pieces/man-hour Operational shrink Cost per piece 4
5 Plans will be created at the OpCo level and tie to underlying and financial KPIs Assess Measure Plan Execute Planning lies at the heart of RVPO and VPO roles and is central to understanding and influencing operations The Sysco Distribution Operating Plan is the framework for RVPO s and VPOs to build a consistent tactical planning culture within their organization All plans should tie to and support underlying operations KPIs 5
6 PLAN OpCos will follow a structured approach to planning by using the Sysco Distribution Operating Plan worksheets The operating plan worksheets will revolve around the 10 key areas of the business The key areas of the business are compared against the no debate minimum policies to determine where there are initial areas of focus List the true underlying issues/problems that are driving the problem to be solved. The issues and/or problems identified in this area must always be evidenced through verifiable sources. This could include observations, reports, research, 5 whys analysis, and more List the key opportunities identified in the root cause analysis Assign a specific person(s) who is responsible for the timely implementation of all the specific steps designed to address this root cause. This person(s) is responsible for achieving the stated goal and, in most cases, they should not be the VPO Identify the time when the goal should be met List the dates scheduled for follow-up. This could be a progress review and/or final results review This section must specifically describe what will be done to address the action. It should written as a narrative that describes in detail what the owner will actually need to do to get the desired impact, as well as the magnitude of the impact Where We are Now - use the Scorecard or another report to see your average over the most recent periods Any additional comments Insert the progress review date 6
7 Standard operating practices will drive productivity, high service levels and safety across the Sysco network Assess Measure Plan Execute Standard operating practices reduce variability and increase productivity which results in improved safety, lower cost, and higher service levels No Debate practices Non-negotiable standards that all OpCos must adhere to Best practices Things to consider in moving past minimum standards to achieve operational excellence Currently being identified across the Sysco network and will form the basis of the Sysco Way of the future 7
8 A common set of KPIs and dashboards will be used to evaluate and run the business Assess Measure Plan Execute Standard KPIs and dashboards have been created to drive consistency in how Sysco OpCos measure and think about These dashboards cover the most important KPIs and provide a balanced view of the operational of the business Driving in the future will require all Sysco operations leaders to take a data-driven approach to management and improvement 8
9 MEASURE The Distribution Services dashboard can be used to see progress on each of the 10 key metrics 9 To be updated w/ columns for period to date and target 1. 1 Injury frequency 2. 2 Accident frequency 3. 3 Fleet cost per mile 4. 4 Facility cost per piece 5. 5 Routing efficiency Driver 7. 7 Inbound warehouse 8. 8 Outbound warehouse Operational shrink 10. Errors per 1,000 pieces
10 A standard meeting cadence will be instituted to discuss and assess our Assess Plan A common cadence of dialogues will be implemented which cascade upward from the supervisor to the VP of Field Operations The expectation at each level is for the participants of that dialogue to be able to speak to their and present their plans for improvement Measure Execute Feedback on improvement plans will cascade downward to create a cycle of continuous improvement 10
11 ASSESS Performance dialogues will occur at all levels of the organization Leader Participants Frequency >Daily Daily 1-3 per week Weekly Monthly VP Field Operations RVPOs & select VPOs A Monthly RVP market review RVPO VPOs B Weekly & Monthly OpCo review VPO Delivery & warehouse managers C VPO staff meetings Delivery & warehouse managers Frontline supervisors D Department Meetings e Frontline supervisor Selectors, Drivers, Forklift operators, etc. E Post & discuss frontline operator 11
12 ASSESS Standard agendas and KPIs will be used in discussions VPO MONTHLY PROCESS 1 Review 2 Compare to targets 3 Assess root cause/ opportunity for improvements 4 Create a targeted list of actions and changes to plan 5 Update goals on Operating Plan worksheet and follow-up as necessary Review operational and financial across each of the 10 standards Total distribution services Warehouse Transportation Above/met goal Missed goal, but above minimum standard Identify opportunities to further increase to best of Sysco or best of industry Root cause on why goals were not met and identify opportunities to drive toward goals Actions Maintenance Below minimum standard Root cause on why minimum standard was not hit 12
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