Introduction to ops rules transformation expertise
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  • The results are mapped to identify and focus on stakeholders that need the most improvement to support the transformation.Strength of influence – Considerations: Rank, tenure, internal network, budget authority, client network, resource ownership, charisma, knowledge/expertise, track record, reputation, demeanor, political savviness, amount of political capital (ability to reciprocate favors)

Introduction to ops rules transformation expertise Presentation Transcript

  • 1. Introduction to OPS Rules Transformation Expertise December 2012 © OPS Rules Partners, LLC 2012
  • 2. We work closely with MIT Professor Simchi-Levi and use his latest IP to identify Supply Chain Opportunities for Clients In Operations Rules, Professor David Simchi- Levi identifies the crucial element in a companys success: the link between the value it provides its customers and its operations strategies. And he offers a set of scientifically and empirically-based rules that management can follow to achieve a quantum leap in operations performance. 2 © OPS Rules Partners, LLC 2012
  • 3. Why Operations Strategy is so ImportantWe live in the Internet Age when it is difficult to create and maintain acompetitive advantage  IP and innovations are difficult to keep proprietary  Companies need to innovate and transform continuouslyMany companies have used 6-sigma techniques as an operations strategy  They “leaned out” their supply chains making them fragile rather than resilient  Regional supply chain strategies have also underperformedTransformations that matter only occur when business model innovationsenable more efficient use of physical assets, working capital and peopleOPS Rules provides radical performance improvements that shift thebalance of power in industries  We help your teams analyze your business environment and develop the strategic insights you need to innovate your business model  We help you use superior strategy to super-charge your continuous improvement efforts 3 © OPS Rules Partners, LLC 2012
  • 4. OPS Rules helps Companies make Significant Business Improvements by Optimizing their Operations Strategies Potential Supply Chain Complexity Supply Chain Flexibility End-to-EndOperating Strategy Risk Management Segmentation Management Optimization Improvements Management Identifies hidden Quantifies risk Optimizes Supply Chain Why it is costs of Long-Tail Aligns supply chain design exposure across Optimizes the level of costs and inventory levels Important Products with Customer Preferences the Supply Chain Supply Chain Flexibility and location Quantify the Define supply chain degree of supply Understand the costs of Use Supply Chain Network Classification of segments based on chain risk at each supply chain flexibility and Modeling Software to What is Involved product portfolio to price/service preferences major node in the determine optimal level of simulate and optimize reveal hidden costs and design well-aligned, supply chain in flexibility across global supply chain performance supply chain segments terms of profit or supply chain revenue exposure 1. Re-evaluate customer 1. Map the Supply 1. Investigate existing 1. Create all-inclusive trade-offs with respect to Chain strategy with respect to 1. Benchmark current cost model to capture price/costs and service 2. Quantify flexibility supply chain performance & report actual costs flexibility financial risks 2. Evaluate relative 2. Identify opportunities for of Long-tail products 2. Redesign supply chains to across the Supply effectiveness and efficiency improved performance 2. Investigate root share scale advantages and Chain of current strategy tradeoffs causesHow best achieved 3. Develop tactical allow supply chain 3. Develop quantitatively 3. Simulate current differentiation where helpful strategies and 3. Update flexibility operations and strategic 3. Optimize differentiated remedies to reduce strategy in light of current 4. Simulate potential recommendations to supply chain segments overall supply risk business and GTM improvements reduce Long-tail costs 4. Engage sales and R&D to 4. Implement strategies and demand 5. Iterate until optimal in the short and long ensure functional strategies improvements and variability solution is apparent term align monitor results 4. Phase-in improvements Representative Reduce freight and manufacturing costs by 30%;Business Impacts Increase Revenue, Profits and Market Share significantly 4 © OPS Rules Partners, LLC 2012
  • 5. OPS Rules Created a Repeatable Process to help Companies Benefit from Professor Simchi-Levi’s Intellectual PropertyEfficiency Supply chain performance trade-offs are different in each situationHigh  Operating problems and their root causesCost Current understood/resolved Strategy  Customer preferences analyzed A  Unique customer segments identified  Micro-optimization strategies considered B  Clear operations strategy defined  Competitive differentiation strategy and plan of actions agreed C Low Cost Responsiveness Short Long Response Response 5 © OPS Rules Partners, LLC 2012
  • 6. After current Execution Problems are Addressed, we Focus on Creating a Strategic Operations Competitive Advantage OPS Rules Operations Strategy Platform Development-related Development Fulfillment-related Vectors of Differentiation Supply Chain Vectors of Differentiation Product/Platform Architecture Plan/  Push/Pull Optimized Planning Design for Supply Chain Design  Complexity Reduction Customer Value Proposition  Flexibility Make/Buy Strategy  Supply Chain Segmentation Strategic Partnerships  Macro/Micro/Supply Strategic Sourcing & Supplier OPO Chain/Production Optimization Development Source  Supply Chain Risk Management Supplier Contracting  Managing Long Tail Products  Operations Performance Management Fulfillment Supply Supply Produce Distribute Sell Chain 6 © OPS Rules Partners, LLC 2012
  • 7. We use Data to Ensure Root Causes and Alternative Cures are Fully Understood before Implementation Begins Analyze Innovate Transform ----- ----- -----Understand opportunities Reduce complexity & risk Pilot, prove, inspire& root causes of problems and optimize strategy & lead the change effortData Collection Scenario Planning Transformation Planning Comprehensive Scope  Micro Supply Chain  Create a Vision Performance Benchmarks Optimization  Evaluate Challenges & Risks Customer-centered Approach  Potential Vectors of  Agree Transformation Roadmap DifferentiationEvaluation  Scenario Analysis Planned Adoption Quantitative & Qualitative  Focus on new Behaviors Benchmarking Scenario Analysis  Lead & Inspire the Team Key Customer Interviews  Current State Simulation  Over-communicate the Way Customer Value Proposition  Scenario Evaluation Forward Improvements  Optimal Scenario Identified ImplementationConclusions Scenario Validation  Create/Deploy new Definitive Root Cause Analysis  Quick Wins Piloting Capabilities Preliminary Strategic  Customer/Supplier Test Drives  Monitor Progress to Close Gaps Alternatives  Final Solution Specification  Use Simulation to Prioritize Requirements for Simulation & and Evaluate Continuous new Metrics Improvement Projects 7 © OPS Rules Partners, LLC 2012
  • 8. OPS Rules Transformation Expertise © OPS Rules Partners, LLC 2012
  • 9. OPS Rules Brings High-Value Operations experience We Integrate Carefully with the People, Culture and Realities while Driving Results Our transformation capabilities will enable success in both limited-scale performance and in a broader-scale rollout We have led a supply performance assurance effort at several global manufacturers Our unique IP and insights from David Simchi-Levi can be leveraged for innovative approaches There is no one-size-fits all. Plans are structured around current realities and culture. Don’t waste peoples’ time. This is a busy environment with ongoing9 initiatives and priorities. © OPS Rules Partners, LLC 2012
  • 10. Every Aspect of Organizational Change is Addressed in Order to Achieve Transformation SuccessStakeholder Engagement Create a sense of urgencyStakeholder Reality Check Pull together the guiding teamTransformation Readiness Evaluation Develop the change vision and strategyCulture Analysis Communicate for understanding andBegin Cultural Change buy inTransformation Process Buy-in Empower others to actFirst pass transformation Produce short-term wins workload analysis Organizational Don’t let upInitial Transformation Create a new culture Strategy Change Management Sustainability Collaborative Strategic Planning and Management Time-based goals and objectives Complete set of metrics Transparency across functions and between levels Continuous Improvement/Adaptation 10 © OPS Rules Partners, LLC 2012
  • 11. Our Approach is Optimized to Engage Key Stakeholders Early and Help them Shape and Own the Transformation Vision  What happens after implementation?  Is this transformation really here for keeps?  How will the change Stakeholder Perspective affect my job?  How do we continue improving?  How can this transformation help us grow the business?  What will I be trained on?  How ready are we?  How ready is the business?Degree of Support for Change  What do changes look like? Commitment  What is my role?  How committed is the leadership? Acceptance  How will this affect me?  How will this affect the business?  What is the transition  Align reward system to new scope, full impact and environment rationale for the  Empower stakeholder groups to Understanding  Begin to generate buy-in fully own business processes transformation?  Highlight the need for and  Implement training focused on long- benefits of transformation term use and continuous  Develop action plan to remove improvement barriers that impede pace of transformation  Define transition vision  Provide sufficient training and Awareness and business benefits support  Develop shared vision for change  Accept and respond to input from stakeholders  Define scope of transformation  Identify sponsors and key Action Steps stakeholders  Plan project work steps and milestones Time 11 © OPS Rules Partners, LLC 2012
  • 12. Our Transformation Readiness Assessment Tool Identifies the High-priority Issues to Address in Implementation Gathers readiness insights from Tool Excerpt Illustration personnel at many Do you have what’s needed to levels and locations execute program? What are the transformation issues you will encounter? Case for Organizati Transformation Leadership Organizational Capable Transformat onal Management Alignment Alignment Organization ion Systems Gives us a baseline 1. There is a 5. The scope of Business 9. Organization 13. Key 17. Organization of stakeholder solid project is System: leadership geographic, has sufficient business narrow and Assets, strongly functional, and data & case to fairly simple to processes, supports the labor operational perceptions justify the project manage skills and technology objectives of the Transformation stakeholder groups are expertise to support the initiative which committed to transformation generate the added transformation Informs early value and provide communications value and messaging Project team addresses each issue in the project plan 12 © OPS Rules Partners, LLC 2012
  • 13. Strategic Stakeholder Analysis Identifies IssuesImportant to Key Players and how to Address them 13 © OPS Rules Partners, LLC 2012
  • 14. Maturity Models Measure Transformation Progress at the Enterprise Level and Organization Level Enterprise Maturity Model Create a common vision of Level 1 2 3 4 5 what it takes to operate as Enterprise Management an enterprise Change Management Organization Governance Give an honest , evidence- Alignment based view of current Management Process maturity level Problem / Barrier Resolution Strategy & Planning Execution & Results Enable deliberate Process Driven planning for a desired Metrics - Drivers and Results Cost Management degree of advancement Improvement Process Tools & Methodology Results Evidenced 14 © OPS Rules Partners, LLC 2012
  • 15. OPS Rules Capabilities, Techniques and Tools will ensure a Successful Transformation Personnel and Resources  Vision the End State Performance we  Consultants with C-level experience who are Entitled to have have led operations and transformations  Strategic planning – appropriate  Lean and Six Sigma experience  Vision of Entitlement-achievement planning  On-demand training of OPS methods for  Enterprise maturity models/to-be client personnel workflows and metrics vision Project Preparation & Planning  Governance: Organization and Project  Transformation readiness assessment  Cross functional team process  Transformation workshop series to  Concept of operations document scope, charter, plan, measure progress  Client operating procedures  Project roadmaps and detailed plans  Pilot program design and execution  Driving Performance  End-to-end metrics design & definitions Stakeholder Engagement and  Metrics gap analytics & target setting Communications  Barrier identification and ranking  Outbound planning and execution tools  Barrier removal/escalation techniques  Engagement outreach with 2-way discussion  Drumbeat gap closure process  Key stakeholder analysis and mentoring  Correlation of operations / financial metrics  Early adopter recruitment 15 © OPS Rules Partners, LLC 2012