International Supply Chain Excellence Programme

Transcription

1 International Supply Chain Excellence Programme Beyond Compliance

2 ABOUT THE PROGRAMME Frost & Sullivan has been working closely with management teams of various companies across Europe, India, and North America and has been involved in critical decision making with respect to supply chain efficiencies, its leanness and flexibility. With a robust on-site assessment methodology, Frost & Sullivan has played an integral role in identifying gaps in the supply chain processes and systems that eventually impact the bottom-line of a company s performance. Through our International Supply Chain Excellence Programme, Frost & Sullivan aims to partner companies in their transformation into lean global corporates. Its unique approach, pace, and direction during the entire process sets this Programme apart. The Programme has a strong focus on: Delivering competitive advantage Continuous and objective monitoring of progress towards Lean Excellence Deployment of manufacturing best practices into the organization Developing maturity in a continuum with ability to achieve national and international levels of recognition Sustained improvements through empowerment, and active involvement of personnel This Programme is currently running in India, Gulf Corporation Council (GCC, specifically covering Bahrain, Oman, Kingdom of Saudi Arabia and the U.A.E.), Indonesia, Thailand and Turkey. 2

3 As part of this programme, while the top performing companies would be recognised, all the assessed companies would be handed over a scorecard, and an evaluation feedback would be shared. The Sectoral benchmarking against global peers is included in the feedback, so as to get more focus into the operational plans/projects of participants. This, when integrated into the business plans for the subsequent years implementation plan, would deliver maximum leverage and a clear competitive benefit to the participating company. Under the aegis of this programme, acknowledgement is planned for achievers in each of the regions covered here. OUR EXECUTIVE COMMITTEE: David Frigstad Chairman Aroop Zutshi Global President & Managing Partner Y.S Shashidhar Managing Director - Middle East, North Africa & South Asia Raghavendra Rao Global Manufacturing Leader, Frost & Sullivan Kavan Mukhtyar Senior Partner Philipp Reuter Director - Turkey 3

4 FROM THE MD S DESK: Greetings! Manufacturing is one crucial sector that can generate significant employment opportunities in the Middle East, North Africa and South Asia region. In recent years, the Middle East has undertaken efforts to diversify its economy from traditional oil exploration and processing. Industry studies reveal that standard growth in the region is nearly four times faster than the world average and the region continues to experience an unprecedented demand on its manufacturing supply base. With the Middle East going through a significant transformative phase of realigning its economic balance, it becomes imperative to draw up a strategic plan that shall enable achieving the region s economic and social objectives. Frost & Sullivan s International Supply Chain Excellence Programme is based on a scientific assessment of adequacy and effectiveness of the systems implemented in an organisation. They measure the maturity of systems and the extent of compliance in making the supply chain processes reliable and capable of delivering the planned results. I am pleased to announce the 2014 Gulf Edition, under this International Supply Chain Excellence Programme. Through this initiative, Frost & Sullivan endeavours to proliferate the concept of process quality compliance and effectiveness of systems. We also aim to assist companies in adopting supply chain excellence practices through assessments, feedback, and benchmarking. I therefore invite you to be a part of this journey and nominate your facilities to Evaluate, Engage, Learn, and Grow. Sincerely, Y. S. Shashidhar Managing Director Frost & Sullivan Middle East, North Africa and South Asia 4

5 BENEFITS OF PARTICIPATION Our Programme is recognised world-wide by clients, end-user markets, media, and the investment community. Participation and planning basis the evaluation feedback, can be leveraged by organisations not only because of the competitive benefit or the global acknowledgement it brings, but also in terms of industry standing and the statement to the investment community that can be made thereof. Key Benefits: An International Platform Scorecard: Provides quantitative assessment of the strengths and weakness of your facility through a scorecard. Frost & Sullivan s scorecard is more than just a report handed out after an assessment. Since it is derived from a disciplined and structured process, the scorecard could be considered a strategic business tool used by organisations to enhance productivity/efficiency, customer performance, and inculcate a culture of systematisation and internationalisation. Best Practices: You can utilise Best Practice benchmarks for initiating internal process improvement programmes. Feedback: Closing feedback session at the end of the site assessment will highlight observations on facilities and specific areas for improvements, which are crucial towards making the facility world class. Other Benefits include: Increases credibility with customers Highlights the Investible Maturity of the Supply Chain (may be useful for funding, etc.) Provides value to your PR and Marketing efforts Boosts employee morale, improves investor relations, and satisfies shareholders Best marketing tool to place the company on a global map Should you qualify and thereafter be recognised for Platinum/Gold level of maturity (Refer Recognition section for more details) you may opt to receive that recognition in any one of the countries covered in this Programme or a country where Frost & Sullivan has its presence. (Note: Subject to Executive Committee Approval). For. E.g. A company qualifying at the Platinum level, may request to be acknowledged in a different country, it could be in India (part of this Programme) or the USA (where Frost & Sullivan has a presence). 5

6 International Supply Chain Excellence Programme ASSESSMENT METHODOLOGY The strength of this Programme lies in its unique Site Assessment Methodology. Every facility will be examined on predefined factors, which capture effectiveness and efficiency of management processes such as operations, quality, productivity, customer focus, logistics, and business financials. These factors reflect a facility s potential to become a mature and an optimised supply chain. The model is based on more than 120 pre-graded checkpoints (points of assessments), which chart a facility s journey from starting to implement systems to becoming a mature organisation with sustainable near world class processes. The assessor maps the facility s current standing on a World Class map. The Executive Committee and External Members The assessment team would recommend a shortlist to the Executive Committee for final selection. Besides Frost & Sullivan Directors, the Executive Committee could empanel distinguished personnel from the Industry. RECOGNITION Based on excellence exhibited through various business performances, the facility is recognised as below. 6

7 7 Integrated Model: Testing Beyond Compliance on Nine Parameters Scoring Model: Nine Factors at 100 marks each and another 100 based on other factors, totalling 1000 Each of the above Checkpoints is rated on the relevant stage of its maturity in the organisation. Category Title Check Points Understanding and Fulfilling Customer Requirement Customer - related processes 7 Quality Assurance and Control Documentation, Documents and Record Control 5 Monitoring & measurement 6 Product Realization and Operational Control 9 Equipment and Facility Maintenance Maintenance of equipment & facility 8 Policy Setting and Deployment Policy 3 Objectives & Targets and Continual Improvement 3 Management Review 3 Safety, Health and Environment Compliance "Identification & Evaluation of Aspects, Impacts & Risks" 7 Emergency Preparedness and Response 6 SHE Process controls 6 Accidents, Incidents, Non-conformance and Corrective & Preventive Action 7 Additional 8 New Product Design and Development Design & Development 6 Purchasing and Supplier Management Purchase 5 Skill and Competency Training & Competence 9 ProductIon Process Performance Metrics 8 Control of Production & Service Provision 10 Total 120 International Supply Chain Excellence Programme

8 PARTICIPATION CATEGORY Based on the sales turnover of the facility, there are three broad categories under the aegis of International Supply Chain Excellence Programme, : EMERGING MEDIUM LARGE : <= USD 50 Million : > USD 50 Million and <= USD 150 Million : > USD 150 Million INDUSTRY ENDORSEMENTS The assessment process was handled professionally by the expert assessment team who gave us value-added feedback. The observations were validated with our internal assessments, which further reinforced our current improvement actions in becoming a "Lean Enterprise". The assessment has helped us to understand our strengths and weakness compared to other similar industries in India. - Bosch Limited The assessment has given us the confidence that the manufacturing practices we follow are world class and it has encouraged us to adopt lean manufacturing practices. It has enabled the manufacturing industries to share their best practices by providing the platform for interaction. - FIAT Automobiles Limited Frost & Sullivan s well defined assessment criteria that covered aspects like Ready to start, Planning to start, Commendable Beginning, Significant progress towards reliable processes and Lean with Display of Continuous Improvement helped us understand where we are standing today and charter the roadmap for further improvement towards global excellence.highly experienced assessors conducted professional third eye assessment, which ended with valuable recommendations and suggestions for our further growth. - Gulftainer Company Limited Your assessment gave us a clear insight into our strengths and highlighted developmental opportunities. The programme will help advance the standards and competitiveness of the Indian pharmaceutical manufacturing sector. - Pfizer Inc...Frost & Sullivan s Excellence Programme is prestigious, well recognised and has its brand value. This sets a performance level amongst peer industries and sets a comparative performance level amongst the best-in-class industries. - Honeywell Automation Limited "Frost & Sullivan s assessment brought in a fresh perspective and gave us a new dimension to reassess our organisation. As we are continuously contributing to the value chain, we felt this On-Site assessment is a good platform to have an independent assessment and were highly satisfied - MIDAL Cables Limited.Award assessment is very structured and objective and the assessment model very unique. The auditors are of high quality and are able to see what is not visible to others. The feedback is very useful. - WABCO Limited The assessment is thoroughly structured, specific, and transparent. It has benefited in realising the importance of every organisational process. Beauty of the assessment is its well transparent method of disclosing the result in the closing meeting in the chart. - UltraTech Cement Limited 8

9 HALL OF FAME: Our "Award Recipients" SCHEDULE OF EVENTS Milestone Last date for receipt of duly filled application form along with self-assessment docket* Time Frame 30th June 2014 Shortlisting of facilities for site visit 15th August 2014 Site Visits Finalisation of Assessment/ Results (by the Executive Committee) Official Release of the GCC Assessment Results 15th August to 31st October 2014 Mid November 2014 December

10 TO KNOW MORE ABOUT THE PROGRAMME, PLEASE CONTACT: Abubaker Basheer Ahmed Frost & Sullivan Consultancy Bahrain WLL Unit 121 and 122, 9th Floor, Unisono Tower, Building 614, Road 1011, Block 410, Sanabis, PO Box: Kingdom of Bahrain, Tel : Fax : abubaker.ahmed@frost.com or Frost & Sullivan International Inc. 210, BT Building, EIB-4, Dubai Internet City, PO Box: , Dubai, The U.A.E., Tel : Fax : ABOUT FROST & SULLIVAN Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today s market participants. Our Growth Partnership supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure. The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including research, analysis, strategy, vision, innovation, and implementation. The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360-degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector, and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics, and emerging economies? For more information, visit

11 APPLICATION FORM COMPANY NAME APPLICATION FORM MAILING ADDRESS NATURE OF INDUSTRY ANNUAL SALES (USD) LIST OF SITES / FACILITIES THAT FORM A PART OF YOUR COMPANY S.No. SITE LOCATION SALES TURNOVER (USD) SALARIED NO OF EMPLOYEES CASUAL/ TEMPORARY IS THE SITE TO BE INCLUDED (Y/N) CONTACT DETAILS LIAISON PERSON FOR CORRESPONDENCE NAME: PHONE: DESIGNATION: SENIOR MOST OFFICIAL IN THE COMPANY NAME: PHONE: DESIGNATION: AUTHORISING OFFICIAL NAME: PHONE: DESIGNATION: DECLARATION: We understand that this application will be reviewed and evaluated by the Executive committee. We undertake to organise site visits for the assessment team to the sites short listed. We also state that this application represents the organisation s irreversible decision to participate in the complete Evaluation process of Frost & Sullivan s International Supply Chain Excellence Programme Gulf Edition We also understand that in case we are short listed for the subsequent stages in the process, we shall have to pay the relevant site visit fees as made known to us. SIGNATURE OF AUTHORISING OFFICIAL: DATE: 11

12 TERMS AND CONDITIONS Application fees of per facility should be sent along with the duly completed application documents. If the facility is not short-listed, the same will be refunded. The to and fro domestic air travel, local conveyance and lodging/boarding for the assessors will have to be provided and arranged for by the site being assessed. The cheque should be drawn in favor of "Frost & Sullivan International". For wire transfer, see details below. APPLICATION AND SITE ASSESSMENT FEE DETAILS SITE CATEGORIES ANNUAL SALES OF SITE (USD) APPLICATION FEE * SITE ASSESSMENT FEE* EMERGING <= 50 Million USD 2,500 USD 4,500 MEDIUM > 50 Million and <=150 Million USD 7,500 USD 3,500 LARGE >150 Million USD 10,500 * Applicable Government Taxes and any other service tax as per the Country s regulations to be added * Visa assistance may be requested from assessee sites in the KSA LAST DATE FOR RECEIPT OF DULY FILLED APPLICATION FORM: 30th June 2014 Please Mail Completed Application Form to: Abubaker Basheer Ahmed, Frost & Sullivan Consultancy Bahrain WLL, Unit 121 and 122, 9th Floor, Unisono Tower, Building 614, Road 1011, Block 410, Sanabis, PO Box: 65172, Kingdom of Bahrain Tel: Fax: abubaker.ahmed@frost.com or Frost & Sullivan International Inc. 210, BT Building, EIB-4, Dubai Internet City, PO Box: , Dubai, the U.A.E Tel: Fax: Wire Transfer Details: Name of the Bank: HSBC Bank Middle East Limited. Banker Address: Jebel Ali Branch Bank A/c No.: Swift Code: BBMEAEAD IBAN Number: AE Account Name: Frost & Sullivan International Account Currency: AED (Payments in USD can also be made to the above account) 12

13 Manufacturing Holds the Key to Economic Diversification in the Middle East A Frost & Sullivan Perspective

14 Manufacturing Holds the Key to Economic Diversification in the Middle East: A Frost & Sullivan Perspective Despite many underlying tensions, the Middle East (ME) has maintained a positive economic outlook. This is evident from the region s ability to maintain a positive growth rate when most economies globally have struggled to be above the red line. The Gulf Co-Operation Council (GCC) countries, specifically, have maintained an average Gross Domestic Product (GDP) growth rate in excess of 5 per cent over the past decade and half. The region s rich oil and natural gas reserves have been instrumental in its growth and prominence in the global scenario and their contribution is likely to continue in the future, too. However, inherent socio-economic disadvantages associated with capital-intensive industries such as the oil and natural gas have manifested in the region, which over the years, has led to high unemployment. The heightened focus on the oil industry had relegated secondary and tertiary levels to other industrial development, and the region has now woken to the need to amend this. In the past decade, we have witnessed trends where abundance of natural resources has actually helped vitalise the non-oil economic growth in the GCC countries. Thus, developments in the region indicate the increasing focus on non-oil sectors as a means to achieve sustained economic development and elevated social status. The ME, comprising the GCC countries {Bahrain, Kuwait, Oman, Qatar, the Kingdom of Saudi Arabia (KSA), and the United Arab Emirates (UAE)} and five more countries (Yemen, Jordan, Lebanon, Iran, and Iraq), is a heterogeneous group of nations, some with high natural resources and some with poor resources. The contrast extends to the political system, social structures, and overall economic development. Below average to moderate growth in some of these countries in the past has been compensated by boisterous growth in other oil flourishing economies, resulting in the region s economic growth to remain above global average. MIDDLE EAST INDICATORS Country Per Capita Income (USD) Industrial Production Growth Rate (%) Global Rank Labour Force (Million) Exports (USD Billion) Imports (USD Billion) Kuwait Bahrain Oman Qatar Kingdom of Saudi Arabia UAE Yemen Jordan Lebanon Iran Iraq Base Year: 2012; Source: CIA World Fact Book 14

15 The current low penetration of manufacturing contribution to GDP depicts the enormous opportunities for this sector to be a key focus area for the region. ME, today, accounts for nearly 40 per cent of the global gas reserves. However, the region contributes to only less than 10 per cent of the global gas production due to the high costs involved in liquefaction process needed for exports. This in itself presents a huge opportunity in the manufacturing / production sector. Invoking participation of the private sector in tapping this magnanimous opportunity in gas exploration and production would help in improving the manufacturing status of the region apart from creating extensive job opportunities. Middle East GDP Forecasts, , , , , Source: IMF Iraq Iran Lebanon Jordan Yemen UAE Kingdom of Saudi Arabia Qatar Oman Bahrain Kuwait Source: IMF services sector; thus, ensuring wholesome growth of the economy. Iraq Iran Lebanon Jordan Yemen UAE Kingdom of Saudi Arabia Qatar Oman Bahrain Kuwait Economic research reinforces that there is an empirical connection between the degree of industrialisation and per capita income in any developing economy. Global evidence suggests that the most industrialised countries have always been the richest, whilst the poorest nations are the ones down the industrialisation scale. Economic theories argue that the continual increase in share of the services sector affects the aggregate per capita growth to sober. Developing countries with higher share of manufacturing over the services sector are known to demonstrate more rapid growth than service-dominated economies. This principle adds impetus to the focus on manufacturing over services for economic sustenance in the ME. It is also pertinent to note that the distinction between manufacturing and services sector is blurring. Every dollar of manufacturing output is said to contain 20 cents of service input. Similarly, nearly per cent of jobs in the manufacturing industry are set to be for the services sector. Such cross linkages demonstrate that advent of manufacturing sector growth in the ME will itself unfurl enormous untapped opportunities for the At the peak of industrialisation in developed economies, manufacturing contribution to GDP has scaled to proportions of about per cent. Given the current low contribution levels of manufacturing in the region, it implies to scope and abundant opportunities for scaling up. The ME is going through a very significant transformative phase for its economy. According to Frost & Sullivan, focus on the manufacturing sector as a key diversification measure is expected to be the way forward. Legacy global success stories and assessment of the region s economic growth highlight that economic diversification is the solution to most of its problems. Identification of target industries for manufacturing promotion appears to be the next logical step. A structured approach for elevating the educational system to cater to the needs of industrial growth is deemed critical. Favourable policy environment that encourages industrial development and attracts investment will be pivotal to achieving economic growth. 15

16 Auckland Bahrain Bangkok Beijing Bengaluru Text Bogotá Buenos Aires Cape Town Chennai Colombo Delhi/NCR Detroit Dubai Frankfurt Iskander Malaysia/Johor Bahru Istanbul Jakarta Kolkata Kuala Lumpur London Manhattan Mexico City Miami Milan Mumbai Moscow Oxford Paris Pune Rockville Centre San Antonio São Paulo Seoul Shanghai Shenzhen Silicon Valley Singapore Sophia Antipolis Sydney Taipei Tel Aviv Tokyo Toronto Warsaw Washington, DC