A Complete Model Of The Supermarket Business - Presentation

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This presentation provides a complete picture of the underlying skeletal structure that holds every supermarket business together while achieving it goals. The supermarket model introduces a comprehensive framework for managing the complexity of a supermarket structure, and a reusable blueprint for visualizing how a supermarket company actually does business.

The model’s clearly-defined core-processes and their functions provide a powerful baseline for improving business performance. By viewing a supermarket business as a single functional system, the nature of its underlying core processes become clear. Then by managing and improving them as parts of a single system, substantial improvements can be made on critical success factors, such as lead-time requirements and the precise availability of stock when needed, throughout the supply chain.

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A Complete Model Of The Supermarket Business - Presentation

  1. 1. A Complete Model of the Supermarket Business
  2. 2. Supermarket ModelIntroductionWhy this presentation?• Development of the ‘Supermarket Model’ by Dave Ackley and Frank Steeneken.• Publication of the model at www.bptrends.com January 3th 2012, in the article ‘A Complete Model of the Supermarket Business’.9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 2
  3. 3. Supermarket ModelIntroductionWhat is the Supermarket Model?• A complete picture of the underlying skeletal system structure that holds every supermarket business together while achieving its goals.• A comprehensive framework for managing the complexity of a supermarket structure, and a reusable blueprint for visualizing how a supermarket company actually does business.9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 3
  4. 4. Supermarket ModelIntroductionDave Ackley:• Founder of Ackley Associates, an Oregon (USA) consulting firm specializing in advanced modeling methods.• He has almost 40 years experience in business and systems analysis, method development and process improvement.• During that time he consulted with over 50 major corporations on enterprise modeling, information systems planning and process reengineering.9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 4
  5. 5. Supermarket ModelIntroductionFrank Steeneken:• Business Process Architect working in the Netherlands.• Frank has 27 years of experience in the field of business process architecture, business process management, requirements engineering and system analysis. He has worked for consulting organizations across different industry verticals and has extensive experience with supermarket process modeling.9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 5
  6. 6. Supermarket ModelIntroductionDeveloped with the Integrated Modeling Methodwww.ackley.com:9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 6
  7. 7. Supermarket ModelIntroductionIntegrated Modeling Method:• This method makes it easy to model the complex structure of a business enterprise, based on the discovery that: every Business Enterprise has the same Inherent System Structure.• Instead of asking what are the essential characteristics of one business, this method begins with the basic system architecture that is common to every business.• Structural details are then tailored to represent the unique characteristics of the particular business enterprise that is being modeled.• This approach is many times faster than traditional modeling methods, yet produces a more complete, accurate, and useful model of the entire business enterprise.9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 7
  8. 8. Supermarket ModelIntroductionAgenda:• Some theory.• Scope and focus.• Overall structure.• Detailed structure.• Useability.• Summary.• Feedback.9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 8
  9. 9. Supermarket ModelSome theorySystems thinking approach:• The process of understanding how things influence one another within a whole.• Based on the belief that the component parts of a system can best be understood in the context of relationships with each other and with other systems, rather than in isolation.Source: Wikipedia9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 9
  10. 10. Supermarket ModelSome theoryMost systems share common characteristics, including:• Systems have structure, defined by components/elements and their composition.• Systems have behavior, which involves inputs, processing and outputs of material, energy, information, or data.• Systems have interconnectivity: the various parts of a system have functional as well as structural relationships to each other.• Systems may have some functions or groups of functions.Source: Wikipedia9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 10
  11. 11. Supermarket ModelSome theory (Core)process: • Processes are chains of activities. These activities are logically organized and aimed at achieving results for a ‘customer’. Business Customers Suppliers9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 11
  12. 12. Supermarket ModelSome theoryBusiness Function:• A contribution (black box), to the purpose of a process.• Relatively stable, independent of a specific technology. Business Customers Suppliers9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 12
  13. 13. Supermarket ModelSome theoryDecomposition:• The overall sequential flow of work performed by each core process determines the flow of work as it encounters its sequence of business functions.• In that context, the work performed by a given business function is viewed as a sub-process of the overall core process, and details of the work within the business function appear as lower-level activities within that sub-process.• The core process dimension breaks down into a set of sub- processes that defines the sequence of work steps.9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 13
  14. 14. Supermarket ModelScope and focusWhat is a business?9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 14
  15. 15. Supermarket ModelOverall structureWhat is a supermarket business?• Function: A supermarket exists in a competitive environment, where it acts as a value-added intermediary between geographically dispersed supplier companies and the scattered individual customers who eventually buy their products.• Product/service: A supermarket is a business enterprise that provides a service. It does not produce a physical product of its own in the usual sense. Instead, it adds value by acquiring existing products from remotely-located suppliers, assembling them in regional warehouses, distributing them to local stores, and finally selling the supplier’s products to local customers.9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 15
  16. 16. Supermarket ModelScope and focusWhat is a supermarket business (continued)?• A supermarket business enterprise is a large, very complex structure, involving many component entities: – An array of repeat customers grouped in various local areas. – A chain of retail stores. – Various transportation systems. – A set of warehouse distribution centers. – An array of product suppliers under contract.9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 16
  17. 17. Supermarket ModelOverall structure Business Concept: • A balanced composition of the marketing mix such that it creates a distinctive image for the customer of a store.9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 17
  18. 18. Supermarket ModelOverall structureHow is Supermarket Model structured?9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 18
  19. 19. Supermarket ModelOverall structureHow is Supermarket Model structured (continued)?• Four core processes, which represent the life-cycle* of a supermarket business: 1. Defining. 2. Designing. 3. Constructing. 4. Provisioning.*a change in the business concept reincarnates the life cycle.9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 19
  20. 20. Supermarket Model Overall structureHow is Supermarket Model structured (continued)? To fulfill the original business concept, the four core processes are implemented over time. This four-stage development sequence comprises the life-cycle of the supermarket’s business enterprise product.9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 20
  21. 21. Supermarket Model Detailed structure A more detailed subsystem structure is required as a basis for defining the core process structures. The first task is to translate the Functional Activities to be Performed into the sequence of Basic Functional Steps that bring product stock from remote suppliers to local customers.9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 21
  22. 22. Supermarket ModelDetailed structure Interpret the Basic Functional Steps as business subsystems, which portray the supply chain in terms of business structural requirements.9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 22
  23. 23. Supermarket ModelDetailed structure When the detailed subsystems and core processes are combined, they produce a grid-like framework. Within this framework, each subsystem/core process intersection is interpreted as a Business Function to be managed and performed. The core process dimension breaks down into a set of sub-processes that defines the sequence of work steps to be conducted in this portion of the supply chain. The subsystem dimension defines how resources and schedules are applied to accomplish that work.9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 23
  24. 24. Supermarket ModelDetailed structure 24
  25. 25. Supermarket ModelDetailed structure 25
  26. 26. Supermarket ModelDetailed structure 26
  27. 27. Supermarket ModelDetailed structure 27
  28. 28. Supermarket ModelDetailed structure 28
  29. 29. Supermarket ModelUseabilityThe purpose of this supermarket model is to clearly portray howthe work performed in a supermarket business is structured,apart from the way it is managed and controlled. To provide thisclarity, feedback loops and control systems are not shown onthese diagrams
  30. 30. Supermarket ModelUseabilityEfficient tool for more accurate business processidentification, improvement and design. Chain 0 Core process 1 Process 2 Activitty 3 4 Task Workflow9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 30
  31. 31. Supermarket ModelUseabiltyA basis for (re)designing organizational structure.9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 31
  32. 32. Supermarket ModelSummaryThe Supermarket Model:• An application of the Integrated Modeling Method.• The supermarket model defines the inherent system structure that is common to every supermarket business.• Provides an architectural framework of function and workflow that can be applied to better understand and improve a supermarket’s business performance.• By identifying the supermarket’s complete core process and function structure, this model provides a highly efficient tool for more accurate business process identification, improvement and design.9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 32
  33. 33. Supermarket ModelFeedback?• Frank.Steeneken@Gmail.com9-12-2012 Copyright © 2012 Frank Steeneken and Dave Ackley All Rights Reserved 33

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