KLU. Building a Maturity Model. A Maturity Model

Transcription

1 KLU Building a Maturity Model A Maturity Model

2 WHAT ARE MATURITY MODELS? Maturity means ripeness and describes the transition from an initial to a more advanced state of a process, project, etc. Maturity Models reflect the degree to which key processes or activities are (should be) defined, managed, or executed effectively. Purpose of maturity models Descriptive: As-Is Assessments wrt. given criteria Prescriptive: Identify desirable maturity levels and guidelines on improvement measures Comparative: Internal of external benchmarking Source: Underlying assumption: A higher level of maturity will result in a better company performance. Source: Boughzala, I. and de Vreede, G. (2012). A collaboration maturity model: Development and exploratory applications. 45th Hawaii International Conference on System Sciences, Maui, HI, 2012, pp

3 MATURITY CRITERIA AND LEVELS Majority of maturity models consist of 5 (cumulative) levels (stages) From low (0 or 1) to high (4, 5, or even 6) Number of levels can vary Criteria on each stage should be distinct, in particular, on the highest stage Logical progression through stages (cumulative) Requirements that are NEW on each stage must be clear Source: 3

4 MATURITY MODEL FRAMEWORK Model development Who is the audience? (internal, external) - Apply: Why? How? - Involve: Who? - Achieve: What? - Define maturity levels (top-down, bottom-up) Test for relevance and rigor - Model construction and model instruments for validity and reliability) Resources to maintain model s use and growth - Track interventions longitudinally - Necessary for continued relevance What is the focus of the model? - Domain specific or general Who are the stakeholders to assist the model development? - Academia, industry, nonprofits, or government Determine dimensions, subdimensions, and key aspects - mutually exclusive and collectively exhaustive Determine instrument/s and methods used in assessing - Quantitative and qualitative methods Model made available for use - Entities must be independent from the model development Applicable for general audience - Standardization and global acceptance Source: de Bruin, T., Rosemann, M., Freeze, R., and Kulkarni, U. (2005) Understanding the Main Phases of Developing a Maturity Assessment Model 4

5 MATURITY MODEL FOR CPFR & S&OP S&OP (internal collaboration) cross-functional and integrated tactical planning to align all relevant plans for the business (internal horizontal collaboration) bridging strategic and operational plans CPFR (external collaboration) extends ECR principles enables trading partners to improve operational efficiency through a structured process of collaboration Source: Wagner, S., Ullrich, K., Transchel, S. (2014). The game plan for aligning the organization, Business Horizons, 57, pp

6 MATURITY MODEL FOR S&OP AND CPFR Scope: Many companies continually struggle with misaligned organizational plans and costly discrepancies between supply and demand. On the one hand, due to non-aligned internal cross-functional areas, but also vertically between suppliers and customers S&OP and CPFR are not all-or-nothing approaches. Firms should continually improve the coordination and alignment process. Develop a formal and structured model to assess the performance of an S&OP and an CPFR process Stakeholders: Academics, S&OP Experts, Practitioners 6

7 MATURITY MODEL FOR S&OP (DIMENSIONS, SUBDIMENSIONS, AND MATURITY LEVELS) Source: Wagner, S., Ullrich, K., Transchel, S. (2014). The game plan for aligning the organization, Business Horizons, 57, pp

8 DIMENSION, SUB-DIMENSIONS, AND KEY ASPECTS Source: Ullrich, K.K. Performance Measurement of Sales and Operations Planning Processes -A Business Process Analysis-, Master Thesis, Kuehne Logistics University,

9 CHARACTERISTICS OF ALL MATURITY LEVELS Source: Ullrich, K.K. Performance Measurement of Sales and Operations Planning Processes -A Business Process Analysis-, Master Thesis, Kuehne Logistics University,

10 DESIGNING SURVEY QUESTIONS EXAMPLE: COLLABORATION & ALIGNMENT Question about the importance of this dimension Source: Ullrich, K.K. Performance Measurement of Sales and Operations Planning Processes -A Business Process Analysis-, Master Thesis, Kuehne Logistics University,

11 ASSESSMENT OF CURRENT S&OP PROCESSES Results from a survey study in the process industry (sent to 300 firms (e.g., Bayer, GlaxoSmithKline), 88 respondents (29.3%)) Source: Wagner, S., Ullrich, K., Transchel, S. (2014). The game plan for aligning the organization, Business Horizons, 57, pp

12 MATURITY ASSESSMENT OF COLLABORATIVE PLANNING FORECASTING & REPLENISHMENT (CPFR) What is CPFR? CPFR is a business practice that combines the intelligence of multiple trading partners in the planning and fulfillment of customer demand. (VICS, 1999) CPFR extends ECR principles in following way: Information systems for capturing and transferring POS, inventory, and other demand & supply information between trading partners Formalized sales forecasting and order forecasting processes Formalized exception handling processes Feedback systems to monitor and improve supply chain performance Source: Voluntary Interindustry Commerce Solutions. 1999b. Roadmap to CPFR : The Case Studies 12

13 CPFR MATURITY MODEL Supply Chain Collaboration People & Organization Dimensions Information Technology Process Efficiency: Planning & Forecasting Process Efficiency: Replenishment 13

14 DIMENSION 1: SUPPLY CHAIN COLLABORATION Supply Chain Collaboration People & Organization Information Technology Process Efficiency: Planning & Forecasting Process Efficiency: Replenishment 14

15 DIMENSION 1: SUPPLY CHAIN COLLABORATION Team Spirit and Rules of the Game Supply Chain Collaboration Collaborative Strategy Top Management Commitment Trust Formalization of Collaboration Agreement Scope of CPFR Relationship Metrics for CPFR Relationship Empowerment Communication Strategy Risk vs. Synergy Opportunism vs Reliability Interfirm vs. Interpersonal Trust 15

16 CPFR MATURITY MODEL 16

17 MATURITY MODEL FOR COLLABORATION ISSUES IN SUPPLY CHAINS TO REDUCE WASTE/SHRINKAGE. 17

18 INSIGHTS FROM THE PREVIOUS WORKSHOP What best describes your approach? 18

19 INSIGHTS FROM THE PREVIOUS WORKSHOP State of Collaboration with Others 19

20 INSIGHTS FROM THE PREVIOUS WORKSHOP State of Collaboration with Others 20

21 INSIGHTS FROM THE PREVIOUS WORKSHOP Priorities 21

22 CPFR MATURITY MODEL Dimensions Subdimensions Key Aspects Maturity Levels

23 WHAT ASPECT OF COLLABORATION IS MOST CRITICAL IN ORDER TO IMPROVE PERFORMANCE? Internal Collaboration Logistics dept. Supply Chain Inventory Manager Sales Mid-term Collaboration Sharing data (sales, inventory, promotion dates) Collaborative planning Shelf life contract Lead time reduction External Collaboration Retailer-Supplier collaboration Collaboration with 3PL/4PL Strategic Collaboration/Partnerships Product development (shelf life extensions) Innovative packaging Behavioral Issues Trust (building) Investments in training people Internal process/alignment changes Technological issues Investments in better peerto-peer IT Investment in IoT (e.g. Internet of Food and Farm ) 23

24 WHAT DO YOU THINK ARE THE MOST CRITICAL SUCCESS FACTORS TO IMPROVE COLLABORATION Retailer Fresh Suppliers 24

25 DO YOU THINK YOU / YOUR COMPANY BENEFIT FROM THE RESULTS OF SUCH A MATURITY MODEL? 25 25

26 THANK YOU FOR YOUR ATTENTION! Kühne Logistics University - Wissenschaftliche Hochschule für Logistik und Unternehmensführung Grosser Grasbrook Hamburg Germany Phone: Fax: