Strategic Alignment of Projects for Higher Profits and Increased Market Share Practice Time Efficiency For Accelerated Pro...
What keeps You Up at Night? Stock Market Volatility, Oil Prices, Labor, Political Instability, Security Reducing Operating...
What Next? <ul><li>What limits our growth? </li></ul><ul><li>How do we generate increased cash flows? </li></ul><ul><li>Wh...
“ No two species can coexist that make their living in the identical way” Prof G. F. Gause <ul><li>Corporate Strategy  Foc...
Strategic Alignment Required The Sarbanes-Oxley Act of 2003 provision mandate that for all public companies the aggregate ...
Product Profiling VS Volume / Variety IV. Continuous Flow III. Assembly Line II. Batch I. Job Shop Low Volume One of a Kin...
Deployment Choices and Operation Control System Configuration V/S Volume Variety
The SCOR ®  model – an industry open standard <ul><li>SCOR is a supply chain process reference model containing over 200 p...
Steps of a Benchmarking Program <ul><li>Supply Chain Definition </li></ul><ul><li>Supply Chain Prioritization </li></ul><u...
Supply-Chain Definition <ul><li>Identify your company's major product lines, and product families for each row Products (I...
Supply Chain   Prioritization <ul><li>Each supply chain is given a rank in each category </li></ul><ul><li>The total of th...
Supply Chain Strategy <ul><li>Each unique combination of ratings defines Your Supply Chain Strategy for the channel </li><...
Performance Metrics <ul><li>SCOR metrics: Standard Strategic (Level 1) Metrics </li></ul>Aligned to Economic Value Added (...
Sourcing Data <ul><li>Financial Data </li></ul><ul><ul><li>10-K data, Company Annual Reports, Cost Center Reports -Must be...
Creating a Balanced SCORcard™ <ul><li>Based on average data averaged over many samples </li></ul><ul><li>Comes from root t...
Performing Benchmark - SCORmark™
Critical Chain Project Management CCPM <ul><li>Limit the number of projects in execution, even if it means keeping some re...
Traditional V/S TOC process Limited, as warning signals are flagged early and project index is tracked to spot early trend...
SCOR and CCPM has proven to improve operating results many ways <ul><li>Improvement of operating results of an average of ...
The Value of SCOR
Adapting Lean to Project  (High-Mix) Adapted from The Skinny on Lean Manufacturing: Why Some Enterprises Fail to Derive Be...
Wipro’s PPM Solutions Practice Overview <ul><li>Solutions for: </li></ul><ul><li>Enterprise Portfolio management </li></ul...
Wipro’s investments in the Project and Portfolio Solutions Industry <ul><li>Global projects in several PPM tools </li></ul...
Thank You About Wipro Wipro Technologies, a division of Wipro Limited (NYSE:WIT) is the first PCMM Level 5 and SEI CMM Lev...
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Dhaval Shah on "Strategic Alignment Of Projects For Higher Profits And Increased Market Share" at PM Conference India 2009

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Dhaval Shah on "Strategic Alignment Of Projects For Higher Profits And Increased Market Share" at PM Conference India 2009

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Dhaval Shah on "Strategic Alignment Of Projects For Higher Profits And Increased Market Share" at PM Conference India 2009

  1. 1. Strategic Alignment of Projects for Higher Profits and Increased Market Share Practice Time Efficiency For Accelerated Project Completion Dhaval Shah – CPIM, CSCP, PMP Wipro Technologies
  2. 2. What keeps You Up at Night? Stock Market Volatility, Oil Prices, Labor, Political Instability, Security Reducing Operating Costs Resiliency & Sustainability: Risk Management & Green Reducing Inventory/ Working Capital/ Asset Management Competing in a Global Market Providing Superior & Consistent Customer Service While Increasing Revenue & Margin &quot;The status quo is the only solution that cannot be vetoed.&quot; — Clark Kerr
  3. 3. What Next? <ul><li>What limits our growth? </li></ul><ul><li>How do we generate increased cash flows? </li></ul><ul><li>Which business should be the focus? (basis of portfolio selection) </li></ul><ul><li>What are basis of competition/order winning criteria? </li></ul><ul><li>What should be the key performance indicators / metrics? </li></ul><ul><li>What is the current performance? </li></ul><ul><li>What should the performance be? </li></ul><ul><li>What are the performance gaps? </li></ul><ul><li>How can these gaps be closed? </li></ul><ul><li>What are current best-in-class processes? </li></ul>
  4. 4. “ No two species can coexist that make their living in the identical way” Prof G. F. Gause <ul><li>Corporate Strategy Focus: Survival - Corporate strategy is the underpinning upon which the company is build. It personifies the essential elements for continued existence </li></ul><ul><li>Business Strategy Focus: Distinctive competence </li></ul><ul><li>Cost Leadership </li></ul><ul><li>Product Differentiation </li></ul><ul><li>Customer Intimacy </li></ul><ul><li>Operations Strategy Focus: Competitive Strategies / basis of competition </li></ul><ul><li>Reliability </li></ul><ul><li>Responsiveness </li></ul><ul><li>Flexibility </li></ul><ul><li>Cost </li></ul><ul><li>Assets </li></ul><ul><li>Measurement provides the necessary feedback to conclude if actions are successful and if strategies have been accomplished. </li></ul><ul><li>Baseline Measurements is a set of measurements (or metrics) that seeks to establish the current or starting level of performance of a process, function, product, firm, etc. (APICS) </li></ul><ul><li>Benchmarking is the process of measuring the company’s products, services, costs and practice against those of competitors or firms that display the “best-in-class” achievements (APICS). </li></ul>
  5. 5. Strategic Alignment Required The Sarbanes-Oxley Act of 2003 provision mandate that for all public companies the aggregate financial numbers be clearly supported by data coming from operations Linking the Measures Strategic Business Drivers Execution Measures
  6. 6. Product Profiling VS Volume / Variety IV. Continuous Flow III. Assembly Line II. Batch I. Job Shop Low Volume One of a Kind Multiple Products, Low Volume Few Major Products, Higher Volume High Volume, High Standard- ization Commercial Printer French Restaurant Heavy Equipment Coffee Shop Automobile Assembly Burger King Sugar Refinery Flexibility (High) Unit Cost (High) Shared Equipments Responsiveness Volatile Demand Excess Capacity
  7. 7. Deployment Choices and Operation Control System Configuration V/S Volume Variety
  8. 8. The SCOR ® model – an industry open standard <ul><li>SCOR is a supply chain process reference model containing over 200 process elements, 550 metrics, and 500 best practices including risk and environmental management </li></ul><ul><li>Organized around the five primary management processes of Plan, Source, Make, Deliver and Return </li></ul><ul><li>Any interested organization can participate in its continual development </li></ul>Supplier Plan Customer Customer’s Customer Make Deliver Source Make Deliver Make Source Deliver Source Deliver Internal or External Internal or External Your Company Source Return Return Return Return Return Return Return Return
  9. 9. Steps of a Benchmarking Program <ul><li>Supply Chain Definition </li></ul><ul><li>Supply Chain Prioritization </li></ul><ul><li>Supply Chain Strategy </li></ul><ul><li>Selecting Metrics </li></ul><ul><li>Sourcing Data </li></ul><ul><li>Creating a Balanced SCORcard™ </li></ul><ul><li>Performing Benchmark </li></ul>
  10. 10. Supply-Chain Definition <ul><li>Identify your company's major product lines, and product families for each row Products (Input). </li></ul><ul><li>Identify your company’s major markets and sales channels for each column. Customers (Output) </li></ul><ul><li>For each product that flows to a customer, we put an “X” in the cell </li></ul><ul><li>Group &quot;X&quot; together based on shared planning model, project template, common management and common goal. Do not combine “X” with different planning models </li></ul><ul><li>Name each of the newly created group </li></ul>
  11. 11. Supply Chain Prioritization <ul><li>Each supply chain is given a rank in each category </li></ul><ul><li>The total of the values gives the final overall ranking </li></ul><ul><li>Weightings and other criteria may apply </li></ul>
  12. 12. Supply Chain Strategy <ul><li>Each unique combination of ratings defines Your Supply Chain Strategy for the channel </li></ul><ul><li>Think of the rating as a desired state, NOT where you want to improve the most </li></ul>A P P Assets P P A Cost Internal P A P Flexibility A A A Responsiveness S S S Reliability External 2 1 3 Supply-Chain Strategy Matrix 50% Percentile Performance Parity P Midpoint between Superior and Parity Advantage A 90% Percentile Performance Superior S
  13. 13. Performance Metrics <ul><li>SCOR metrics: Standard Strategic (Level 1) Metrics </li></ul>Aligned to Economic Value Added (EVA)
  14. 14. Sourcing Data <ul><li>Financial Data </li></ul><ul><ul><li>10-K data, Company Annual Reports, Cost Center Reports -Must be Verified by Financial Team (Controller) </li></ul></ul><ul><li>Non-Financial Data </li></ul><ul><ul><li>Customers </li></ul></ul><ul><ul><ul><li>Delivery Performance </li></ul></ul></ul><ul><ul><ul><li>Total Cycle-Time Performance </li></ul></ul></ul><ul><ul><li>IT Systems </li></ul></ul><ul><ul><ul><li>Process-to-Process Transactions </li></ul></ul></ul><ul><ul><ul><li>Planning System Parameters (Lead Times) </li></ul></ul></ul><ul><ul><li>Suppliers </li></ul></ul><ul><ul><li>3PL Providers </li></ul></ul>
  15. 15. Creating a Balanced SCORcard™ <ul><li>Based on average data averaged over many samples </li></ul><ul><li>Comes from root transactions, not aggregates </li></ul><ul><li>Six-Sigma team support a big help </li></ul>
  16. 16. Performing Benchmark - SCORmark™
  17. 17. Critical Chain Project Management CCPM <ul><li>Limit the number of projects in execution, even if it means keeping some resources idle. Concentrating resources on fewer projects at a time not only allows them to be executed faster, but also reveals overall capacity to undertake more projects. </li></ul><ul><li>In execution, allow individual tasks to be late against the plans. That way people won’t have to hide safeties inside their estimates, and tasks will get executed faster because work won’t have to expand just to fill the time available (Parkinson’s Law). </li></ul><ul><li>Provide uniform task priorities across all departments and levels of management. When everyone knows what to do and when, and is working on the same priorities, projects get done much faster </li></ul>Counterintuitive Rules
  18. 18. Traditional V/S TOC process Limited, as warning signals are flagged early and project index is tracked to spot early trends Needed Re-planning add safety at strategic locations By adding safety at each task Handle uncertainty Low - to ensure reduced cycle time High - to ensure that resources are busy Work in Progress estimate time to complete Hours spent Project Tracking Project completion Task completion Time efficiencies Resource efficiencies Cycle time reduction Resource utilization Key Measurement Forward looking - flow index Ad-hoc Task Priorities No detailed project plan to avoid re-planning Detailed project plan Project Planning As per availability of drum resource At the earliest Project Sequencing Projects providing highest value per unit of constraints capacity (constraint index NPV) Positive NPV Project Selection TOC Process Traditional Process Particulars
  19. 19. SCOR and CCPM has proven to improve operating results many ways <ul><li>Improvement of operating results of an average of 3% in the initial SCOR implementation phase by means of cost reduction and improvement in customer service 1 </li></ul><ul><li>Increase in profitability (between 2x and 6x) with regard to project investment costs within first 12 months of implementation 1 </li></ul><ul><li>Reduction in IT costs through minimizing system customization and making better use of standard functionality 1 </li></ul><ul><li>Continuous actualization of process change portfolio by continuous conversion of supply chain improvements with the objective of increasing annual profits by 1% to 3% 1 </li></ul>1 Poluha (2007) Application of the SCOR Model in Supply Chain Management, New York, USA <ul><li>Benefits of CCPM </li></ul><ul><li>Improvement in stock market value </li></ul><ul><li>Improves communication and coordination by synchronizing task priorities </li></ul><ul><li>Cycle time reduction </li></ul><ul><li>Improvements in project throughput </li></ul><ul><li>Better due-date performance </li></ul><ul><li>Minimum re-planning due to early warning signals </li></ul><ul><li>Benefits of SCOR </li></ul><ul><li>Improvement in stock market value </li></ul><ul><li>Increase of profits and margins </li></ul><ul><li>Increase of available financial means through improved investment selection (portfolio management of initiatives) </li></ul><ul><li>Reduction of overall costs </li></ul><ul><li>Optimization of Enterprise Resource Planning </li></ul>
  20. 20. The Value of SCOR
  21. 21. Adapting Lean to Project (High-Mix) Adapted from The Skinny on Lean Manufacturing: Why Some Enterprises Fail to Derive Benefits, Tom Knight, APICS Webinar
  22. 22. Wipro’s PPM Solutions Practice Overview <ul><li>Solutions for: </li></ul><ul><li>Enterprise Portfolio management </li></ul><ul><li>PMO </li></ul><ul><li>Project and program mgt </li></ul><ul><li>IT Governance </li></ul><ul><li>Services include: </li></ul><ul><li>Define PPM processes </li></ul><ul><li>Selection of PPM tools </li></ul><ul><li>Tools implementation </li></ul><ul><li>PPM tools adoption and support </li></ul><ul><li>Differentiators: </li></ul><ul><li>Technology based governance solutions and Wipro IP for enabling the above initiatives </li></ul>IT Demand Management Portfolio Management Program & Projects Technology Solutions PMO/EPMO Integrated Processes and Tools Solutions Our Methodology : Discovery, Definition, Digitization and Improve – D3I
  23. 23. Wipro’s investments in the Project and Portfolio Solutions Industry <ul><li>Global projects in several PPM tools </li></ul><ul><li>Ability to provide reality test on PPM vendor claims, through our experience </li></ul><ul><li>Partnerships with key PPM and IT Governance vendors: </li></ul><ul><ul><li>HP PPM (Mercury ITG) </li></ul></ul><ul><ul><li>CA Clarity (Niku) </li></ul></ul><ul><ul><li>Planview , Primavera , Changepoint </li></ul></ul><ul><ul><li>Expertise to work on several other tools </li></ul></ul><ul><li>Maximum Certified PPM consultants on products from leading vendors in Gartner’s PPM MQ 2009 </li></ul><ul><li>Winner of several PPM awards </li></ul><ul><li>Best Whitepaper Award for IT governance </li></ul><ul><li>Speakers at leading IT portfolio management conferences </li></ul>Gartner PPM Magic Quadrant Source: Gartner (June 2009) Wipro’s Investments
  24. 24. Thank You About Wipro Wipro Technologies, a division of Wipro Limited (NYSE:WIT) is the first PCMM Level 5 and SEI CMM Level 5 certified global IT services organization. Wipro Technologies was recently assessed at Level 5 for CMMI V 1.2 across offshore and onsite development centers. Wipro is one of the largest product engineering and support service providers worldwide. Wipro provides comprehensive research and development services, IT solutions and services, including systems integration, information systems outsourcing, package implementation, software application development, and maintenance services to corporations globally. www.wipro.com For additional questions on Supply Chain Council benchmarking or SCORmark, please contact: info@supply-chain.org

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