Visualising Your Supply Chain. Creating a visual point of balance between inventory and investment

Transcription

1 Visualising Your Supply Chain Creating a visual point of balance between inventory and investment

2 The supply chain stuff is really tricky. ~Elon Musk, CEO of Tesla and SpaceX

3 What Are We Going to Chat About?

4 We live in an integrated World: The Supply Chain is Part of a Whole! From Strategy to Execution

5 Objectives of Workshop Gain an understanding of the model From Strategy to Execution Strategic Model Balanced Scorecard and Strategy Maps Supply Chain Model SCOR Benchmarking Model WERC How they all fit together

6 INDIVIDUAL OPERATIONAL STRATEGIC MANAGERIAL Supply Chain Strategic Theme Supply Chain Strategic Theme From Strategy to Execution STRATEGY STRATEGY DEPARTMENTS SCOR PROCESS 1 INITIATIVES P1A1 P1A2 SCOR PROCESS 2 DIVISIONS & TEAMS P2A1 P2A2 SCOR PROCESS 3 P3A1 P3A2 Processes Activities Clients Outputs Measures ACTIONS Rewards Motivated Staff Performance

7 The Balanced Scorecard Kaplan and Norton. The Balanced Scorecard Translating Strategy into Action. HBR Press

8 Balanced Scorecard (BSC) FINANCE SO01: Maximise Shareholder Value SO02: Revenue Growth SO03: Productivity SO04: Cost Management SO05: Asset management SO06: Account Share Growth SO07: Market Share Growth CLIENT SO08: Build a strong brand SO09: A well-established and satisfied customer base Vision and Mission PROCESS SO10: Efficient & Effective Execution of all activities SO11: Effective Inventory Management & Control SO12: Build and retain a strong customer base SO13: Corporate Governance & Risk Management ENABLEMENT SO14: Recruit, develop and retain capable staff SO15: Acquire and apply applicable tools & technology SO16: Ensure a healthy and productive work environment SO17: Relationships with key strategic partners

9 Don t fool yourself: having a strategy map is not the same as having a strategy Strategy Maps

10 The Balanced Scorecard Shows how value is created for stakeholders

11 Why a Strategy Map? It communicates strategic intent with clarity It focusses on the most important aspects It creates alignment It shows the logical connections between work and performance

12 FINANCIAL SHAREHOLDERS Reward Productivity BSC Strategy Map Cost Structures Asset Utilisation Shareholder Value Partnerships Market Share Revenue Growth Account Share CUSTOMERS Delivery Client Centric Image & Reputation Safety Service Excellence Flexibility On-Time Delivery Innovative Products Price Quality Products Relationships INTERNAL BUSINESS PROCESS Execution Cost & Process Efficiency Acquire & Retain Clients Innovation Risk Management & Corporate Governance LEARNING AND GROWTH Enable Technology Performance Management Train & Develop Staff Recruit & Retain Staff Leadership Organisation Culture

13 Stratmap Logic SO03: Ensure Continuous Productivity Improvement Why? SO01: Maximise Shareholder Value SO02: Ensure Sustainable Revenue Growth SO04: Ensure Effective Cost Management Practices SO05: Ensure Effective Asset Management Practices SO06: Ensure Consistent Account Share Growth SO07: Ensure Consistent Market Share Growth Why? SO09: Ensure a Wellestablished and Satisfied Customer Base SO08: Establish a Strong RTT Brand On Tme In Full Not Damaged Optimal Cost Improve our clients' experience SO10: Ensure Efficient & Effective Execution of All Activities SO11: Ensure Effective Inventory Management & Control SO12: Build and Retain a Strong Customer Base SO13: R&D - Innovation SO14: Assure Well-managed Corporate Governance & Risk Management Principles and Practices Operations Why? Sales CSD Risk Why? Support Services Finance SO15: Recruit, Develop and Retain Competent Staff SO16: Acquire and Apply the Right Tools & Technology SO17: Ensure a Healthy and Productive Work Environment, driven by the RTT Culture SO08: Establish strong relationships with key strategic partners

14 SCOR SCOR Supply Chain Reference Model: Version 11. P i.2

15 WERC WERC Watch, Spring P. 6

16 WERC WERC Watch, Spring P. 6

17 WERC TOP12 WERC Watch, Spring P. 6

18 BSC Strategy Map SO01: Maximise Shareholder Value SO03: Ensure Continuous Productivity Improvement SO04: Ensure Effective Cost Management Practices SO02: Ensure Sustainable Revenue Growth SO05: Ensure Effective Asset Management Practices SO06: Ensure Consistent Account Share Growth SO09: Ensure a Wellestablished and Satisfied Customer Base On Tme SO10: Ensure Efficient & Effective Execution of All Activities In Full SO11: Ensure Effective Inventory Management & Control SCOR Operations SO15: Recruit, Develop and Retain Competent Staff Sales Not Damaged SO08: Establish a Strong RTT Brand Optimal Cost Improve our clients' experience SO12: Build and Retain a Strong Customer Base CSD SO16: Acquire and Apply the Right Tools & Technology SO07: Ensure Consistent Market Share Growth SO13: R&D - Innovation Risk SO17: Ensure a Healthy and Productive Work Environment, driven by the RTT Culture SO14: Assure Well-managed Corporate Governance & Risk Management Principles and Practices WERC Support Services Finance SO08: Establish strong relationships with key strategic partners

19 Good is the enemy of great. That s why so few things become great. ~ James C. Collins Measuring our performance

20 Objectives of Workshop The Performance Management Model Types of Measures SMART Objectives Lead and Lag Indicators PM Models How they work in the Strategy Map

21 Performance Measures Step Process (BSI) 1. Describe the intended result(s) Write in plain, sensory language that everyone can understand (see, feel, count) 2. Understand alternative measures Can the intended result be measured directly? Is there a clear way to capture the entire intended result in one or more measures 3. Select the right measures for each objective Choose metrics that have meaning and relevance You will have too many measures cull them! Lead and lag indicators 4. Define composite indices as needed Construct an index when individual measures provide useful data on different dimensions Composite indices are best when a single measure isn t meaningful by itself 5. Set targets and thresholds Targets - the desired level of performance for a specific reporting period Thresholds upper and lower limits of desired performance around a target value 6. Define and document selected measures Performance Measure Data Definition Table Data Dictionary Source: The Institute Way

22 Types of Measures Operational Measures Strategic Impact Measures Inputs Process Outputs FTE Budget Project Efficiency Cycle Time Cost/Unit # beneficiaries # presentations Intermediate Outcomes Widgets Entrepreneurs Awareness End Outcomes Profitability Successful entrepreneurs Impact Schedule Budget Resources Strategic BI Increases Source: The Institute Way

23 Objectives should be SMART S - specific M - measurable A - achievable R - realistic T - time-framed

24 Performance Indicators and the Service Delivery Model Lag Indicators Customer satisfaction Employee satisfaction # Associations # Citations Lead Indicators Absenteeism Cycle times Defect rates Academic results

25 Models Logic Model Cause-and-Effect Model Process Flow Model

26 Logic Model: Performance Indicators and the Service Delivery Model Input Measures Employee time Resource costs Square Meters Process Efficiency cost/beneficiary Effectiveness quality Throughput Cycle Time Bottlenecks Output Measures activity measures # units provided # services rendered # people served # beneficiaries # research papers Outcome Measures # successful enterprises created # jobs created Satisfaction Indices INPUT MEASURES Process Measures Output Measures Outcome Measures RESOURCES What is used to do work PROCESS/ACTIVITIES Work OBJECTS For whom work is done OUTCOMES Information Insight Performance

27 The Service Delivery Model Resources Cost Drivers Activities Services / Products Performance Measures Customers

28 Cause-And-Effect Model FINANCIAL ST03: Optimise productivity and mitigate risk CUSTOMER Objectives PROCESS ENABLEMENT

29 Process Flow Model Invoice Customer Update ERP Picking instruction Receive customer order Order assigned for picking Pick Order Check Order Ship Order Deliver Order SO# Customer Perfect Order Fulfillment / Perfect Order Completion Index WERC/SCOR RL1.1 85,70% 85,70% 95,10% 98% 99,13% 97,20% Delivery % of Orders Performance Delivered to In Customer Full Commit WERC/SCOR RL2.1 93,50% 93,50% 96,20% 98,80% 99,70% 98% Date WERC/SCOR RL2.2 80% 80% 90% 95% 99% 95,00% Documentation Accuracy WERC/SCOR RL2.3 90% 90% 95% 98% 99,26% 97,00% Perfect Condition WERC/SCOR RL2.4 94,40% 94,40% 97% 99% 99,50% 98,10% Dock-to-Stock Cycle Time, in Hours WERC 22,06 22, Lines Received and Put Away per Hour WERC 9,52 9, ,5 Backorders as a Percent of Total Dollars/Units WERC 8,80% 8,80% 2,88% 1% 0% 2% Backorders as a Percent of Total Lines WERC 8,18% 8,18% 3,24% 1% 0,05% 2,00% Backorders as a Percent of Total Orders WERC 10% 10% 5% 1,74% 0,05% 2,40% Cases Picked and Shipped per Person Hour WERC ,6 Days on Hand Finished Goods Inventory WERC , Fill Rate Line WERC 95% 95% 97,46% 99% 99,90% 98,05% Internal Order Cycle Time WERC 28,6 28,6 15,09 6 2,44 8 Lines Picked and Shipped per Person Hour WERC 12,674 12, ,6 92,8 34 Lost Sales (Percent of SKUs Stocked Out) WERC 6% 6% 3,02% 1% 0,05% 2% On-time Ready to Ship WERC 95% 95% 98% 99,10% 99,90% 99% On-time Shipments WERC 95% 97,89% 99% 99,80% 99,80% 98,15% Order Fill Rate WERC 93,82% 93,82% 97,25% 99% 99,72% 98,00% Order Picking Accuracy (Percent by Order) WERC 98% 98% 99% 99,60% 99,90% 99,45% Orders Picked and Shipped per Person Hour WERC 2,62 2, , Pallets Picked and Shipped per Person Hour WERC ,94 23, Percent of Orders Sent with Correct WERC 99% 99,00% 99,00% 99,78% 99,99% 99,50% Documentation Percent of Orders Shipped Complete WERC 93,50% 93,50% 96,20% 98,80% 99,70% 98% Percent of Orders Shipped Damage Free WERC 97,82% 97,82% 99,00% 99,60% 99,90% 99% (Outbound) Percent of Orders with On-time Delivery WERC 95% 95,00% 98,00% 99,10% 99,80% 98,50% Total Order Cycle Time WERC/SCOR RS Fill Rate RL ,82% 93,82% 97,25% 99% 99,72% 98,00%

30 Without data, you re just another person with an opinion. ~ W. Edwards Deming From Data to Information

31 The BI Supply Chain Collect Translate Load Business modelling Integration Models Performance Management Visibility Dashboards Benchmark Solutions Action Insight Data Information

32 The Supply Chain Data Visualisation Roadmap WMS ERP Other Spreadsheets Direct Input

33 The Warehouse as Information Hub

34 The Warehouse as Information Hub WHO? WHAT? WHERE? WHEN? WHY? HOW? QUESTIONS? ANSWERS

35 The Warehouse as Information Hub Place order with supplier Place Order on System Customer Complaints Order to WMS Update ERP Customer Complains Sales Sell Customers Buys Return Order Supplier Details Deliver Order Return Order Receive Sales Order from Customer Deliver Order Schedule Delivery Receive Goods Stage and Stack Manage Inventory Process Sales Order Ready to Ship Replenish Confirm Delivery To Supplier Return Goods To Customer

36 Place order with supplier The Warehouse as Information Hub Place Order on System PRODUCTS Customer Complains Order to WMS Update ERP Customer Complains Sales Sell Customers Buys Return Order Suppliers Supplier Details PO# Deliver Order Return Order Goods Returned No Goods OK? Yes Receive Sales Order from Customer Customers Deliver Order Place order with supplier Receive Goods PROCESS Receive Sales Order from Receive Goods Stage and Stack Manage Inventory Process Sales Order Deliver Goods Customer Stage and Stack Manage Inventory Process Sales Order Ready to Ship Replenish Goods Received by Customer Schedule Delivery Goods OK? Goods Returned No Replenish Warehouse Yes Confirm Delivery To Supplier Return Goods To Customer Supplier Performance WH inbound performance WH Management performance WH Outbound performance Delivery Performance

37 Order Receipt In- Full, Ready to Ship The Warehouse Management Process

38 Suppliers From Dock-to-Stock In-Full, Ready to Ship PO# Goods Returned No Goods OK? Yes Receive Sales Order from Customer Customers Place order with supplier Receive Goods Stage and Stack Manage Inventory Process Sales Order Deliver Goods Goods Received by Customer Replenish Goods OK? Goods Returned No Yes Warehouse Supplier Performance WH inbound performance WH Management performance WH Outbound performance Delivery Performance

39 First some basics on reporting and analysis Visualising Your Supply Chain

40 Good Data Analysis: Keep Your Eyes on the Goal!! Descriptive: Better manage the present What is happening? What is causing this to happen? Predictive: Better predict the future What do we want to happen? What actions would likely lead to this desired outcome? Why? Create opportunities Prevent problems

41 Data Analysis Data Exploration Discovery Data Analysis Data Sense- Making Understanding INSIGHT

42 How do we get to the answers? Define exactly what we want to see - Reporting Explore the data and see what it reveals - Analysis

43 The Audiences Designed to visualize performance against predefined metrics for executives and managers Empower business analysts to explore trends and anomalies in data sets they create and publish views for others to consume Reporting Analysis

44 Now some basics on how our brains function Visualising Your Supply Chain

45 The purpose of data/information visualisation is not to make pictures, but to help us think Stephen Few Amplifying Cognition

46 The Eye Registers 36,000 visual messages per hour 625 separate points of ink/sq. inch Most complex organs except for your brain Contribute towards 85% of your total knowledge Utilize 65% of all the pathways to the brain

47 Visual Perception Sensation (Physical Process) Perception (Cognitive Process) Stimulus Sensory Organ Perceptual Organ

48 Memory Remains < 1 sec Pre-attentive Processing Attentive Processing Temporary Limited storage Holds our ability to recognise images & to detect meaningful patterns

49 Thinking with Your Eyes Facts about Visual Perception Fact 1: We do not attend to everything we see. Visual perception is selective as awareness of everything would overwhelm us. Our attention is often drawn to contrasts to the norm Fact 2: Our eyes are drawn to familiar patterns. We see what we know and expect Fact 3: Memory plays an important role in human cognition, but working memory is extremely limited

50 Fact 1: We do not attend to everything we see

51 Fact 2: Our eyes are drawn to familiar patterns

52

53 Fact 3: Memory plays an important role in human cognition, but working memory is extremely limited

54 Making Abstract Data Visible Data Visualisation

55 Pre-Attentive Attributes We can do certain things to symbols to make it much more likely that they will be visually identified even after very brief exposure. Certain simple shapes or colours pop out from their surroundings. pop out is called pre-attentive processing it occurs prior to conscious attention. Colin Ware. Information Visualisation: Perceptions for Design

56 Pre-Attentive Attributes Length Width Orientation Size Shape Curvature Enclosure Spatial Grouping Blur

57 Pre-Attentive Attributes Colour Hue Spatial Position Intensity Motion 2-D Position Direction

58 Data Visualisation The use of colour

59 Colour Blindness Tritanopia Blue-Yellow Colour Blindness S-cones M-cones L-cones 59

60 Colour Blindness Deuteranopia Red-Green Colour Blindness Green+Colour+Blindness&rlz=1C1CHFX_enZA759ZA759&source=lnms&tbm=isch&sa=X&ved=0ahUKEwi2kryJw7zbAhUIO8AKHTt5AUgQ_AUICigB&biw=1396&bih=665#imgrc=xcI0fRT3h5xj1M: 60

61 Colour Blindness Protanopia Red-Green Colour Blindness Being a protan has associated with it a level of risk of road accident that is equivalent to having a blood alcohol level of between 0.05 and 0.08 per cent. 61

62 The Use of Colour

63 The Use of Colour - Contrast

64 The Use of Colour - Text avoiding catastrophe becomes the first principle in bringing colour to information: Above all, do no harm. avoiding catastrophe becomes the first principle in bringing colour to information: Above all, do no harm. avoiding catastrophe becomes the first principle in bringing colour to information: Above all, do no harm. avoiding catastrophe becomes the first principle in bringing colour to information: Above all, do no harm. avoiding catastrophe becomes the first principle in bringing colour to information: Above all, do no harm. avoiding catastrophe becomes the first principle in bringing colour to information: Above all, do no harm. avoiding catastrophe becomes the first principle in bringing colour to information: Above all, do no harm.

65 The Use of Colour - Text

66 Pre-Attentive Attributes DEMO

67 Workshop: Let us start visualising our supply chain/s Visualising Your Supply Chain