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Ibm Model&Shpp Webinar Final Version
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Ibm Model&Shpp Webinar Final Version

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Goal:
Integrated business management requires the integration of all the business into that considering the processes, people & behaviors, and tools. The maturity of this integration will reflect direct in the results of the business, bottom line.

Key learning points:
a) All organizations are on a journey that never ends to performance improvement – what are the challenges
b) The Integrated Business Model and the maturity chart
c) The importance of the Integrated Business Management (IBM) / Sales and Operations Planning (S&OP) process into the Integrated Business Model
d) The Proven Path to goes through the journey consistent
e) The Integrated Supply Chain Management and the IBM/S&OP importance to support it, and reflected on both models – Oliver Wight and the SCC – SCOR

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Ibm Model&Shpp Webinar Final Version Ibm Model&Shpp Webinar Final Version Presentation Transcript

  • Integrated Business Model The Journey to Sustainable High Performance & Profitability “It never ends” April - 2009 W. Stefano Jr., Principal Oliver Wight Americas [email_address] www.oliverwight-americas.com [email_address]
    • All organizations are on a journey to performance improvement that never ends – the challenges
    • The Integrated Business Model and the maturity chart
    • The importance of the Integrated Business Management /Sales and Operations Planning(S&OP) process into the Integrated Business Model
    • The “Proven Path” to go through the journey
    • Integrated Supply Chain Management and the importance of S&OP to support it; reflected on both models – Oliver Wight and the SCC -SCOR
    Content © Oliver Wight
  • Business / Supply Chain Realities Facing the challenges © Oliver Wight Challenge 2007 2008 200 . . . Level of Customers’ Satisfaction (even considering the SLA they still have poor customer service )    Competitors    Environments – replete of uncertainty    Products life cycle – reducing    Agility and Flexibility (lean organization)    Entire business control in a structured form    Strategy alignment    Strong team spirit culture    Communication, integration and alignment through all functions in the short, medium and long term   
  • Business / Supply Chain Realities Facing the challenges © Oliver Wight Challenge 2007 2008 200 . . . EBIT (the bottom line, the value of the business)    Costs    Working capital    Inventory reduction, but grows the customer service level    Slow moving, obsolete products and materials    Delivery time    Lost revenues, Misguided capacity plans, Ineffective transportation, Missed production schedules, Missed promotions plans . . . and so on . . .
    • Many cannot articulate the journey
    • Don’t understand where they are
      • Don’t recognize correct sequence
      • Can’t assure sustainability
    • Lack of concise journey results in
      • Initiativitis
      • Confusion
      • Sub-optimal results
    All organizations are on a “Journey to Performance Improvement” The Challenge © Oliver Wight
  • All organizations are on a “Journey to Performance Improvement” The Challenge © Oliver Wight
  • Integration © Oliver Wight Initiativitis No Data Quality PEOPLE & BEHAVIORS TOOLS PROCESSES Class A EFFECTIVE TRAINING INTEGRATION FOCUS ALIGNMENT DIRECTED EMPOWERMENT
  • Integrated Business Model © Oliver Wight OWI 0004-03a MANAGEMENT BUSINESS REVIEW DEMAND MANAGEMENT MARKET MANAGEMENT SALES MANAGEMENT DEMAND REVIEW PROCUREMENT MANAGEMENT PROCUREMENT MANAGEMENT SUPPLIER MANAGEMENT SUPPLY POINT MANAGEMENT SUPPLY REVIEW PRODUCT MANAGEMENT REVIEW RESOURCE MANAGEMENT PORTFOLIO MANAGEMENT PROJECT MANAGEMENT SUPPLY CHAIN MANAGEMENT STRATEGY BUSINESS PLAN PERFORMANCE
  • Integrated Business Model © Oliver Wight MANAGEMENT BUSINESS REVIEW DEMAND MANAGEMENT MARKET MANAGEMENT SALES MANAGEMENT DEMAND REVIEW PROCUREMENT MANAGEMENT PROCUREMENT MANAGEMENT STRATEGY BUSINESS PLAN PERFORMANCE SUPPLIER MANAGEMENT SUPPLY POINT MANAGEMENT SUPPLY REVIEW PRODUCT MANAGEMENT REVIEW RESOURCE MANAGEMENT PORTFOLIO MANAGEMENT PROJECT MANAGEMENT SUPPLY CHAIN MANAGEMENT
    • Tactic level (Aggregate) - Middle term
      • Supports the S&OP process
    • Operational level (Detail level) - Short term
      • Supports the execution (master planning / master production schedule / detail sales and product plans …)
    • Strategic level – Long term
      • Supports the strategic plans
  • Integrating the Business - Maturity © Oliver Wight OWI 0001-01
  • Class A Checklist 6 th edition Milestone Templates Milestone Paths © Oliver Wight 1 D&L Std 3.0 or 3.5 (Foundation level) Std 4.0 (Advanced level) Std 4.5 (SHP&P) 12 BI 10 Str 11 MLP 13 P&S 14 D 15 IS 16 ES 4 BI 9 IBM 5 P&S 6 D 8 SC 7 ES 2 IBM 1 P&C 3 En 18 En 17 SC
  • The Oliver Wight Checklist The Evolution
    • 1 st Edition ‘77 Integrated factory planning (MRP)
    • 2 nd Edition ‘80 Integrated management of a manufacturing business (MRPII)
    • 3 rd Edition ‘88 Integrated Planning & Control + Continuous Improvement (JIT / TQM)
    • 4 th Edition ‘93 Inclusion of Strategic Direction; New Product Development and People & Team Process
    • 5 th Edition ‘00 Enhanced and refinement of 4 th Edition for Operational Excellence
    • 6 th Edition ‘05 Beyond operations -- integrated management processes for Business Excellence
    • Each enhancement has reflected the latest body of knowledge and proven best practice
    © Oliver Wight
    • Methodology to tell where the organizations “ are” and the sequence “ required ” according to the specific needs of that industry
    • Appropriate sequence of improvement programs
    • Inter-dependencies
    • Readiness and maturity
      • Supported by:
        • Oliver Wight Maturity Map
        • Oliver Wight Transitions
        • Oliver Wight Checklist
        • Proven Path
    Journey to Sustainable High Performance & Profitability The Proven Path © Oliver Wight
  • The Oliver Wight Proven Path © Oliver Wight
  • The Oliver Wight Proven Path A series of improvement programs © Oliver Wight
  • Integrated Business Model © Oliver Wight OWI 0004-03a MANAGEMENT BUSINESS REVIEW DEMAND MANAGEMENT MARKET MANAGEMENT SALES MANAGEMENT DEMAND REVIEW PROCUREMENT MANAGEMENT PROCUREMENT MANAGEMENT SUPPLIER MANAGEMENT SUPPLY POINT MANAGEMENT SUPPLY REVIEW PRODUCT MANAGEMENT REVIEW RESOURCE MANAGEMENT PORTFOLIO MANAGEMENT PROJECT MANAGEMENT SUPPLY CHAIN MANAGEMENT STRATEGY BUSINESS PLAN PERFORMANCE
  • SCOR model © Oliver Wight / W Stefano Jr SCOR® is a registered trademark of the Supply-Chain Council in the United States and Europe www.supply-chain.org www.scorlabs.org Supplier Customer Suppliers’ Supplier Source Internal or External Internal or External Your Company Return Deliver Make Source Return Plan Deliver Return Source Return Make Source Return Plan Deliver Return Deliver Make Plan Return Return Customers’ Customer
  • The Extended Supply Chain Challenge: Balancing Demand & Supply © Oliver Wight Consumption Our Customers Our Suppliers OPTIMIZED / SYNCHRONIZED PLAN Supplier Manufacturing Customer EXTENDED SUPPLY CHAIN MANAGEMENT Our Distribution Sales Company Our Production
  • SCOR model © Oliver Wight / W Stefano Jr SCOR® is a registered trademark of the Supply-Chain Council in the United States and Europe www.supply-chain.org www.scorlabs.org Supplier Customer Suppliers’ Supplier Source Internal or External Internal or External Your Company Return Deliver Make Source Return Plan Deliver Return Source Return Make Source Return Plan Deliver Return Deliver Make Plan Return Return Customers’ Customer
  • Scope of SCOR processes – Plan – P1
    • Demand/supply planning
      • Assess supply resources, aggregate and prioritize demand requirements, plan inventory, distribution requirements, production, material, and rough-cut capacity for all products and all channels
      • Manage planning infrastructure
      • Make/buy decisions, supply-chain configuration, long-term capacity and resource planning, business planning, product phase-in/phase-out, manufacturing ramp-up, end-of-life management, product-line management
    © Oliver Wight Plan P1 Plan Supply Chain
    • Best Practices identified by the SCOR Model Version 9.0
      • Vendor Managed Inventory (VMI)
      • Collaborative Planning, Forecasting, Replenishment
      • Sales and Operations Planning (S&OP)
      • . . .
    • Look at the organization in a holistic manner as an integrated and structured entity, so:
      • Through the “Leadership” phase of the Oliver Wight Proven Path
        • Understand the concepts and best practices – initial education
        • Makes a broad-based diagnostic of the organization to understand the maturity of the integrated management processes
        • Involves the executive team reviewing it, creates a journey vision, value opportunities and takes a decision “go” – “no-go” understanding the effort that will need be done on the journey to Sustainable High Performance and Profitability in a Sustainable way
      • Through the “Development” and “Ownership” phases of the Oliver Wight Proven Path (implementation methodology)
        • Implement, realizes it and . . .
      • . . . goes to another milestone on the journey that “Never Ends” and make the best money in your business
    Summarizing © Oliver Wight
    • 1.P&C/D&L – Capable Planning and Control Milestone / Capable Distribution and Logistic Milestone
    • 2.IBM – Capable Integrated Business Management (S&OP) Milestone
    • 3.En – Foundation Enabling Milestone for Sustainable Improvement
    • 4.BI – Foundation Business Improvement Capability Milestone
    • 5.P&S – Capable Product Management Milestone
    • 6.D – Capable Management of Demand Milestone
    • 7.ES – Capable External Sourcing Processes Milestone
    • 8.SC – Capable Supply Chain Milestone
    • 9.IBM – Advanced Integrated Business Management (S&OP) Milestone
    • 10.Str – Advanced Strategic Planning Milestone
    • 11.MLP – Advanced Managing & Leading People Milestone
    • 12.BI – Advanced Business Improvement Capability Milestone
    • 13.P&S – Advanced Product Management Milestone
    • 14.D – Advanced Management of Demand Milestone
    • 15.IS – Advanced Internal Supply Milestone
    • 16.ES – Advanced External Sourcing Milestone
    • 17.SC – Advanced Supply Chain Management Process Milestone
    • 18.En – Excellent Enabling Capability Milestone
    Addendum © Oliver Wight
    • Thank you
    • W. Stefano Jr.
    • Principal, Oliver Wight Americas
    • [email_address]
    • www.oliverwight-americas.com
    • [email_address]
    • The first 20 emails to info@oliverwight.com will receive
    • a complimentary Checklist
    © Oliver Wight