This document provides a phase 1 report on an analysis project of the business relationship and supply chain between ACME and XYZ Corp. It identifies the project scope, data collection sources, core business processes mapped, and key observations. The report finds issues with the ability to reconcile reported purchase price variances and recommends improvements to processes, contracts, organization, and financial reconciliation.
This document provides a user manual for configuring and using the SAP Project System for BALCO. It describes the project structures, coding, statuses, authorizations, and profiles that have been set up for BALCO projects. Key points covered include defining a project coding mask for BALCO projects, configuring status profiles for releasing and closing projects, and setting up authorization keys for approving changes. The manual aims to guide BALCO users in navigating the Project System functionality according to the configurations that have been made for their organization.
The document provides details of a computer-controlled conveyor belt project including a work breakdown structure, schedule, and resource plan. It includes instructions for a multi-part exercise to develop the project plan, address schedule and resource constraints, and provide quarterly status reports. Revised estimates are then provided requiring an update to the estimated completion date, cost, and recommendations.
This document provides instructions for the sequential operation of the Project System module in SAP. It describes 16 steps for project creation, budgeting, cost planning, purchasing, invoicing, network activities, settlements and closure. Key processes include creating an investment program, appropriation requests, project definitions, WBS structures, networks, purchase orders, goods receipts, confirmations and settlement rules.
J.S. Daniel paper for practical checklist of scheduleJ.S. Daniel
The document provides guidelines for reviewing baseline construction schedules and updated schedules submitted by contractors. It discusses reviewing the schedules for conformance with contract requirements and construction best practices. The review includes checking global schedule parameters, scheduling mechanics, activity durations and logic, and analyzing the schedule's reasonableness. Subcontractor input, an appropriate level of detail, and proper consideration of weather factors are important for developing a high quality, realistic baseline schedule.
VERTEX Construction Claim Visuals - AACE Northeast Total Cost Management Sym...Lisa Dehner
This document discusses visual tools that can be used to prepare and assess construction delay and productivity claims. It outlines various visuals commonly used, including logic diagrams, timelines, network diagrams, comparative schedules, resource histograms, S-curves and stacking analyses. The benefits of visualization are highlighted as facilitating deeper understanding, gaining attention and clarifying complex concepts and data. A range of visual types are examined based on objectives, audience, content richness and other factors. Examples of specific visuals are provided like impacted schedules, resource availability charts and animations.
This document provides instructions for configuring various settings in SAP's Project System module, including:
1. Defining special characters, coding masks, and validation rules for project numbers.
2. Creating and maintaining project profiles to store default values and control parameters for new projects.
3. Configuring network types, profiles, numbering, and other settings for managing project networks.
4. Setting parameters for timescales, evaluation periods, and other options used in project planning boards and graphics.
The steps describe technical customizing activities like specifying length limits, indicator settings, default profiles, and other configuration options required to set up the Project System according to an organization's needs and processes.
This document provides a user manual for Bharat Aluminum Co.'s implementation of the SAP Project System module. It introduces key concepts like projects, work breakdown structures, networks, and activities. It describes 10 roles within the system for functions like creating project definitions, networks, budgets, material receipt, settlement, and closure. The manual aims to provide project planning and management integrated with other SAP modules for greater visibility of project control parameters and activity status.
J.S. Daniel paper for presentation cost managementJ.S. Daniel
The document discusses cost management for real estate development projects. It addresses the why (reasons for cost management), what (procedures for cost monitoring), and how (methods used) at different project stages. Specifically, it describes using a cost model at feasibility stage, cost plans at design stages, and a priced bill of quantities at tender stage to monitor costs. It emphasizes verifying cost predictions at each stage and discussing significant differences with the designer and developer. Maintaining an up-to-date cost database is also important for accurate cost estimations throughout the extended project timelines.
This document provides a user manual for configuring and using the SAP Project System for BALCO. It describes the project structures, coding, statuses, authorizations, and profiles that have been set up for BALCO projects. Key points covered include defining a project coding mask for BALCO projects, configuring status profiles for releasing and closing projects, and setting up authorization keys for approving changes. The manual aims to guide BALCO users in navigating the Project System functionality according to the configurations that have been made for their organization.
The document provides details of a computer-controlled conveyor belt project including a work breakdown structure, schedule, and resource plan. It includes instructions for a multi-part exercise to develop the project plan, address schedule and resource constraints, and provide quarterly status reports. Revised estimates are then provided requiring an update to the estimated completion date, cost, and recommendations.
This document provides instructions for the sequential operation of the Project System module in SAP. It describes 16 steps for project creation, budgeting, cost planning, purchasing, invoicing, network activities, settlements and closure. Key processes include creating an investment program, appropriation requests, project definitions, WBS structures, networks, purchase orders, goods receipts, confirmations and settlement rules.
J.S. Daniel paper for practical checklist of scheduleJ.S. Daniel
The document provides guidelines for reviewing baseline construction schedules and updated schedules submitted by contractors. It discusses reviewing the schedules for conformance with contract requirements and construction best practices. The review includes checking global schedule parameters, scheduling mechanics, activity durations and logic, and analyzing the schedule's reasonableness. Subcontractor input, an appropriate level of detail, and proper consideration of weather factors are important for developing a high quality, realistic baseline schedule.
VERTEX Construction Claim Visuals - AACE Northeast Total Cost Management Sym...Lisa Dehner
This document discusses visual tools that can be used to prepare and assess construction delay and productivity claims. It outlines various visuals commonly used, including logic diagrams, timelines, network diagrams, comparative schedules, resource histograms, S-curves and stacking analyses. The benefits of visualization are highlighted as facilitating deeper understanding, gaining attention and clarifying complex concepts and data. A range of visual types are examined based on objectives, audience, content richness and other factors. Examples of specific visuals are provided like impacted schedules, resource availability charts and animations.
This document provides instructions for configuring various settings in SAP's Project System module, including:
1. Defining special characters, coding masks, and validation rules for project numbers.
2. Creating and maintaining project profiles to store default values and control parameters for new projects.
3. Configuring network types, profiles, numbering, and other settings for managing project networks.
4. Setting parameters for timescales, evaluation periods, and other options used in project planning boards and graphics.
The steps describe technical customizing activities like specifying length limits, indicator settings, default profiles, and other configuration options required to set up the Project System according to an organization's needs and processes.
This document provides a user manual for Bharat Aluminum Co.'s implementation of the SAP Project System module. It introduces key concepts like projects, work breakdown structures, networks, and activities. It describes 10 roles within the system for functions like creating project definitions, networks, budgets, material receipt, settlement, and closure. The manual aims to provide project planning and management integrated with other SAP modules for greater visibility of project control parameters and activity status.
J.S. Daniel paper for presentation cost managementJ.S. Daniel
The document discusses cost management for real estate development projects. It addresses the why (reasons for cost management), what (procedures for cost monitoring), and how (methods used) at different project stages. Specifically, it describes using a cost model at feasibility stage, cost plans at design stages, and a priced bill of quantities at tender stage to monitor costs. It emphasizes verifying cost predictions at each stage and discussing significant differences with the designer and developer. Maintaining an up-to-date cost database is also important for accurate cost estimations throughout the extended project timelines.
Transaction codes beginning with CJ are related to project definition, WBS, budgets and costing. Codes beginning with CN are related to networks and activities. Codes beginning with OP are related to PS configuration and customization. The document provides a list of common transaction codes in each category to help users navigate SAP Project System transactions.
Delay Analysis of Projects and Effects of Delays in the Mining/Manufacturing ...iosrjce
IOSR Journal of Mechanical and Civil Engineering (IOSR-JMCE) is a double blind peer reviewed International Journal that provides rapid publication (within a month) of articles in all areas of mechanical and civil engineering and its applications. The journal welcomes publications of high quality papers on theoretical developments and practical applications in mechanical and civil engineering. Original research papers, state-of-the-art reviews, and high quality technical notes are invited for publications.
IRJET- Schedule Delay Analysis in Construction Management using Primavera P6IRJET Journal
This document discusses schedule delay analysis in construction projects using Primavera P6 software. It begins with an introduction to the importance of planning, scheduling, and managing delays in construction management. It then reviews common causes of construction delays and different methods for analyzing schedule delays, including as-planned vs. as-built analysis and time impact analysis. The document focuses on using Primavera P6 software to compare planned and actual project schedules to identify delays and their impacts on time and cost. It argues this approach can help construction managers effectively monitor progress and address delays.
The purpose of this report is to provide management with a revised status of the Super Conveyer Belt project. The report is organized by the four phases of the project life cycle which include Defining / Initiating, Planning, Executing, and closing. The first phase, Defining, will incorporate high level activities such as goals, specifications, identifying key tasks, and roles and responsibilities. The second phase, Planning, includes creating schedules, defining budgets, determining resources available and requirements, assessing risks and staffing the team. The third phase, executing, involves the development of status reports, dealing with change, ensuring quality, and forecasting. All activities associated with “closing” will be projections as that phase has not yet occurred. Closure activities include, training the customer, transferring documents, release of resources, evaluations and lessons learned.
IRJET - Fuzzy Logic Approach in Construction Delay AnalysisIRJET Journal
This document discusses the application of fuzzy logic to analyze delays in construction projects. It presents a case study of a housing project in Kochi, Kerala, India. Fuzzy logic was used to quantify the probability of scheduled delays. Based on expert interviews, fuzzy rules were created to assess various delay factors. These included labor, project, consultant, contractor, and external related factors. The factors were applied to the case study project using MATLAB fuzzy logic toolbox. This resulted in a scheduled delay probability of 32.9% compared to the actual schedule. The document concludes fuzzy logic can help construction parties predict delay risks and improve project time management.
New Trends in Construction Management
Construction Management
Construction Technology
Construction Planning and Management Systems using Primavera
Fundamentals of Construction Costs and Estimating
Plumbing Systems I: Code and Engineering
Construction Changes and Claims Documentation
Legal Aspects of Construction Projects and Contracts
Principles of Structural Analysis
Advanced Estimating and Management of Project Costs in the Preconstruction and Construction Phases
Construction Surveying and Metrics
Construction Budget and Cost Control
Construction Job Site Management
Construction Project Management Using MS Project
Reading Construction Blueprints
Electrical Design and Construction
The Solar Energy Solution: Harnessing Solar Power in the Home and Office
Leadership in Energy and Environmental Design
Introduction to Building Information Modeling
Construction Estimating and Design Analysis Using BIM
Land Development Procedures
The document discusses validations in SAP Project System (PS) and provides answers to various questions on the topic. It includes details on when validation points 110 and 120 are triggered, how to validate user-defined fields in the work breakdown structure (WBS), and how to use user exits for validations. The document also covers how to make the full WBS description appear in hierarchical reports, how to put checks before setting the system status to "Technically Completed", and how to create documents in PS that link to URLs instead of files on a document management system.
Planning and Scheduling Construction Projects using Primavera Software A Case...ijtsrd
This document summarizes a case study on planning and scheduling two construction blocks of a government housing project in Bhopal, India using Primavera P6 software. The study compares Block A and Block B to identify reasons for delays. Primavera P6 was used to develop schedules, assign resources, and conduct financial risk analysis. Key planning methods discussed include Gantt charts, network scheduling, and work breakdown structures. Scheduling and resource allocation steps are outlined. The case study aims to demonstrate the benefits of using project management software for planning, monitoring, and controlling large infrastructure projects.
Cost Overrun Causes Related to the Design Phase in the Egyptian Construction ...World-Academic Journal
This document summarizes a research paper that aimed to identify and evaluate the most significant causes of cost overrun related to the design phase of construction projects in Egypt. Through a literature review and expert interviews, the researchers developed a list of potential cost overrun causes. They then conducted a survey with 101 industry professionals to quantitatively assess the frequency and impact of each cause. The results showed that the most important causes were design changes/variations and unrealistic construction time estimates. The degree of agreement between owners, contractors, architects, and project managers was also analyzed to identify any conflicting perspectives on the causes.
SAP Training ( PS , Material PR , Service PR ,Cost Planning , Budgeting , PO...Soumya De
This document provides training on SAP PS (Project System) module. It covers topics such as project creation, cost planning, budgeting, releasing the budget, and creating purchase requisitions and purchase orders linked to a project. Screenshots and step-by-step instructions are provided for key activities like setting up the project structure with WBS, networks and activities; attaching materials to activities; generating PRs and checking the PR number; entering the budgeted costs and releasing a percentage of the budget; and linking a purchase order to a project PR.
Construction Project Schedule Example- Residential BuildingSHAZEBALIKHAN1
The document provides an example construction project schedule for building a residential building. It discusses planning the schedule by defining the project scope, stakeholders, and work breakdown structure. It then describes developing the schedule by defining activities, sequencing them, determining durations, and identifying the critical path. The example schedule is for a G+1 residential building and includes activities, durations, and relationships for structural works and finishing works.
The document discusses five causes of project delay and cost overrun, and their mitigation measures. It identifies the main causes as design errors, scope changes, inappropriate procurement and contractual management, and project complexity. It provides examples of how each cause can lead to delays and cost overruns. The document recommends measures to mitigate each cause, such as thorough design reviews, clear change management plans, selecting qualified contractors and drafting clear contracts, and accounting for complexity in plans and estimates.
Reasons for the Delay and Cost Overrun in Residential Projects - 2017Sankalp Swarnkar
This work found out the most significant reasons of time and cost overrun for ongoing residential projects, along with this, the study focuses on formulating recommendations for improving construction performance. At the end of this work, I have reached a conclusion that what are common issues that are attributing to time and cost overrun in projects.
IRJET- Enhancement of Highway Project Performance using Lean Construction MethodIRJET Journal
This document discusses using Lean Construction methods to improve highway project performance in Northern India. It begins with an abstract that introduces Lean Construction and its potential benefits for improving system efficiency in the construction sector. The introduction then provides more background on Lean principles and how they aim to reduce waste in workflow. Some key causes of delays in construction projects are also summarized from previous studies. The methodology section proposes analyzing Lean performance at construction sites and noting expected benefits. It introduces applying attributes of the Toyota Way model to transform sites into Lean organizations and help address delays. Overall, the document argues that adopting Lean principles from Toyota, such as long-term decision making and self-reliance, can help solve problems that plague the construction industry in India.
A Review of Cost overruns in Construction Project Managementijsrd.com
In construction industry cost is amongst the major considerations throughout the project management life cycle and thus can be regarded as one of the most important parameter of a project and the driving force of project success. Despite of its proven importance it is not uncommon to see a construction project failing to achieve its objectives within the specified cost. Cost overrun is a very frequent phenomenon and is almost associated with nearly all projects in the construction industry. In this paper different type of cost are enlisted and due to the effect of cost overruns enumerated in building projects. Effects Cost overruns are decrease in the building projects so, different methods are used the analysis cost overruns factors and give the top ten ranks.
Infrastructure plays a vital role in ensuring a sustained growth trajectory for India, it is imperative that we identify the core issues affecting completion of infrastructure projects in India and chalk out initiatives that need to be acted upon in short term as well as long term. This study attempts to identify these pertinent issues.
Construction Project Managment Techniquesguestc8140fe
The document provides an overview of project management and different project management techniques. It discusses what a project is and defines project management. It then summarizes different project management methods including critical path method (CPM) and Program Evaluation and Review Technique (PERT). CPM uses fixed time estimates while PERT allows for uncertainty in activity times. The document also outlines the basic steps for using CPM and PERT in project planning and management.
Conveyor Belt Project Report using MS PROJECT by creating work package,deliverable, sub-deliverables and allocating resources to them. Analysis was done and suggestion was made for the overall imporvement
The document contains 15 multiple choice questions about scope management processes and tools. Key topics covered include the purpose and components of a work breakdown structure (WBS), the define scope and control scope processes, and tools like the scope management plan and WBS dictionary. The correct answers are provided for each question to help explain the concepts being tested.
An Application Of Six Sigma DMAIC Methodology In Outsourcing Management Proce...Karen Gomez
The document describes an improvement project using Six Sigma DMAIC methodology to reduce delivery delays in an outsourcing process. It defines each stage of the DMAIC process: define problems and goals, measure key aspects, analyze causes of delays, improve the process, and control ongoing performance. The project aimed to cut average contract negotiation time by 20%, supplier delays by 15%, and delivery time by 20%. It identified stakeholders, mapped the process, and established structure over a planned 6 month period to enhance outsourcing management.
2014 DeltaV life sciences booth at emerson exchangeK. David McKee
The booth demonstrated the integration between Syncade, DeltaV™ and SynTQ (Process Analytical Technology) with Syncade batch reports that highlight out of specification process parameters. The pharmaceutical customer can eliminate their long Batch review process and release batches in Real Time because of the total integration to the plant process.
This document contains exam questions related to scope management. Specifically, it tests knowledge of key scope management terms like the work breakdown structure (WBS), scope baseline, and processes like define scope, collect requirements, and control scope. It also covers tools used in scope management like the scope management plan, scope statement, and WBS dictionary. The questions cover the purpose and outputs of various scope management processes and how to properly manage scope changes according to the defined change control process.
Transaction codes beginning with CJ are related to project definition, WBS, budgets and costing. Codes beginning with CN are related to networks and activities. Codes beginning with OP are related to PS configuration and customization. The document provides a list of common transaction codes in each category to help users navigate SAP Project System transactions.
Delay Analysis of Projects and Effects of Delays in the Mining/Manufacturing ...iosrjce
IOSR Journal of Mechanical and Civil Engineering (IOSR-JMCE) is a double blind peer reviewed International Journal that provides rapid publication (within a month) of articles in all areas of mechanical and civil engineering and its applications. The journal welcomes publications of high quality papers on theoretical developments and practical applications in mechanical and civil engineering. Original research papers, state-of-the-art reviews, and high quality technical notes are invited for publications.
IRJET- Schedule Delay Analysis in Construction Management using Primavera P6IRJET Journal
This document discusses schedule delay analysis in construction projects using Primavera P6 software. It begins with an introduction to the importance of planning, scheduling, and managing delays in construction management. It then reviews common causes of construction delays and different methods for analyzing schedule delays, including as-planned vs. as-built analysis and time impact analysis. The document focuses on using Primavera P6 software to compare planned and actual project schedules to identify delays and their impacts on time and cost. It argues this approach can help construction managers effectively monitor progress and address delays.
The purpose of this report is to provide management with a revised status of the Super Conveyer Belt project. The report is organized by the four phases of the project life cycle which include Defining / Initiating, Planning, Executing, and closing. The first phase, Defining, will incorporate high level activities such as goals, specifications, identifying key tasks, and roles and responsibilities. The second phase, Planning, includes creating schedules, defining budgets, determining resources available and requirements, assessing risks and staffing the team. The third phase, executing, involves the development of status reports, dealing with change, ensuring quality, and forecasting. All activities associated with “closing” will be projections as that phase has not yet occurred. Closure activities include, training the customer, transferring documents, release of resources, evaluations and lessons learned.
IRJET - Fuzzy Logic Approach in Construction Delay AnalysisIRJET Journal
This document discusses the application of fuzzy logic to analyze delays in construction projects. It presents a case study of a housing project in Kochi, Kerala, India. Fuzzy logic was used to quantify the probability of scheduled delays. Based on expert interviews, fuzzy rules were created to assess various delay factors. These included labor, project, consultant, contractor, and external related factors. The factors were applied to the case study project using MATLAB fuzzy logic toolbox. This resulted in a scheduled delay probability of 32.9% compared to the actual schedule. The document concludes fuzzy logic can help construction parties predict delay risks and improve project time management.
New Trends in Construction Management
Construction Management
Construction Technology
Construction Planning and Management Systems using Primavera
Fundamentals of Construction Costs and Estimating
Plumbing Systems I: Code and Engineering
Construction Changes and Claims Documentation
Legal Aspects of Construction Projects and Contracts
Principles of Structural Analysis
Advanced Estimating and Management of Project Costs in the Preconstruction and Construction Phases
Construction Surveying and Metrics
Construction Budget and Cost Control
Construction Job Site Management
Construction Project Management Using MS Project
Reading Construction Blueprints
Electrical Design and Construction
The Solar Energy Solution: Harnessing Solar Power in the Home and Office
Leadership in Energy and Environmental Design
Introduction to Building Information Modeling
Construction Estimating and Design Analysis Using BIM
Land Development Procedures
The document discusses validations in SAP Project System (PS) and provides answers to various questions on the topic. It includes details on when validation points 110 and 120 are triggered, how to validate user-defined fields in the work breakdown structure (WBS), and how to use user exits for validations. The document also covers how to make the full WBS description appear in hierarchical reports, how to put checks before setting the system status to "Technically Completed", and how to create documents in PS that link to URLs instead of files on a document management system.
Planning and Scheduling Construction Projects using Primavera Software A Case...ijtsrd
This document summarizes a case study on planning and scheduling two construction blocks of a government housing project in Bhopal, India using Primavera P6 software. The study compares Block A and Block B to identify reasons for delays. Primavera P6 was used to develop schedules, assign resources, and conduct financial risk analysis. Key planning methods discussed include Gantt charts, network scheduling, and work breakdown structures. Scheduling and resource allocation steps are outlined. The case study aims to demonstrate the benefits of using project management software for planning, monitoring, and controlling large infrastructure projects.
Cost Overrun Causes Related to the Design Phase in the Egyptian Construction ...World-Academic Journal
This document summarizes a research paper that aimed to identify and evaluate the most significant causes of cost overrun related to the design phase of construction projects in Egypt. Through a literature review and expert interviews, the researchers developed a list of potential cost overrun causes. They then conducted a survey with 101 industry professionals to quantitatively assess the frequency and impact of each cause. The results showed that the most important causes were design changes/variations and unrealistic construction time estimates. The degree of agreement between owners, contractors, architects, and project managers was also analyzed to identify any conflicting perspectives on the causes.
SAP Training ( PS , Material PR , Service PR ,Cost Planning , Budgeting , PO...Soumya De
This document provides training on SAP PS (Project System) module. It covers topics such as project creation, cost planning, budgeting, releasing the budget, and creating purchase requisitions and purchase orders linked to a project. Screenshots and step-by-step instructions are provided for key activities like setting up the project structure with WBS, networks and activities; attaching materials to activities; generating PRs and checking the PR number; entering the budgeted costs and releasing a percentage of the budget; and linking a purchase order to a project PR.
Construction Project Schedule Example- Residential BuildingSHAZEBALIKHAN1
The document provides an example construction project schedule for building a residential building. It discusses planning the schedule by defining the project scope, stakeholders, and work breakdown structure. It then describes developing the schedule by defining activities, sequencing them, determining durations, and identifying the critical path. The example schedule is for a G+1 residential building and includes activities, durations, and relationships for structural works and finishing works.
The document discusses five causes of project delay and cost overrun, and their mitigation measures. It identifies the main causes as design errors, scope changes, inappropriate procurement and contractual management, and project complexity. It provides examples of how each cause can lead to delays and cost overruns. The document recommends measures to mitigate each cause, such as thorough design reviews, clear change management plans, selecting qualified contractors and drafting clear contracts, and accounting for complexity in plans and estimates.
Reasons for the Delay and Cost Overrun in Residential Projects - 2017Sankalp Swarnkar
This work found out the most significant reasons of time and cost overrun for ongoing residential projects, along with this, the study focuses on formulating recommendations for improving construction performance. At the end of this work, I have reached a conclusion that what are common issues that are attributing to time and cost overrun in projects.
IRJET- Enhancement of Highway Project Performance using Lean Construction MethodIRJET Journal
This document discusses using Lean Construction methods to improve highway project performance in Northern India. It begins with an abstract that introduces Lean Construction and its potential benefits for improving system efficiency in the construction sector. The introduction then provides more background on Lean principles and how they aim to reduce waste in workflow. Some key causes of delays in construction projects are also summarized from previous studies. The methodology section proposes analyzing Lean performance at construction sites and noting expected benefits. It introduces applying attributes of the Toyota Way model to transform sites into Lean organizations and help address delays. Overall, the document argues that adopting Lean principles from Toyota, such as long-term decision making and self-reliance, can help solve problems that plague the construction industry in India.
A Review of Cost overruns in Construction Project Managementijsrd.com
In construction industry cost is amongst the major considerations throughout the project management life cycle and thus can be regarded as one of the most important parameter of a project and the driving force of project success. Despite of its proven importance it is not uncommon to see a construction project failing to achieve its objectives within the specified cost. Cost overrun is a very frequent phenomenon and is almost associated with nearly all projects in the construction industry. In this paper different type of cost are enlisted and due to the effect of cost overruns enumerated in building projects. Effects Cost overruns are decrease in the building projects so, different methods are used the analysis cost overruns factors and give the top ten ranks.
Infrastructure plays a vital role in ensuring a sustained growth trajectory for India, it is imperative that we identify the core issues affecting completion of infrastructure projects in India and chalk out initiatives that need to be acted upon in short term as well as long term. This study attempts to identify these pertinent issues.
Construction Project Managment Techniquesguestc8140fe
The document provides an overview of project management and different project management techniques. It discusses what a project is and defines project management. It then summarizes different project management methods including critical path method (CPM) and Program Evaluation and Review Technique (PERT). CPM uses fixed time estimates while PERT allows for uncertainty in activity times. The document also outlines the basic steps for using CPM and PERT in project planning and management.
Conveyor Belt Project Report using MS PROJECT by creating work package,deliverable, sub-deliverables and allocating resources to them. Analysis was done and suggestion was made for the overall imporvement
The document contains 15 multiple choice questions about scope management processes and tools. Key topics covered include the purpose and components of a work breakdown structure (WBS), the define scope and control scope processes, and tools like the scope management plan and WBS dictionary. The correct answers are provided for each question to help explain the concepts being tested.
An Application Of Six Sigma DMAIC Methodology In Outsourcing Management Proce...Karen Gomez
The document describes an improvement project using Six Sigma DMAIC methodology to reduce delivery delays in an outsourcing process. It defines each stage of the DMAIC process: define problems and goals, measure key aspects, analyze causes of delays, improve the process, and control ongoing performance. The project aimed to cut average contract negotiation time by 20%, supplier delays by 15%, and delivery time by 20%. It identified stakeholders, mapped the process, and established structure over a planned 6 month period to enhance outsourcing management.
2014 DeltaV life sciences booth at emerson exchangeK. David McKee
The booth demonstrated the integration between Syncade, DeltaV™ and SynTQ (Process Analytical Technology) with Syncade batch reports that highlight out of specification process parameters. The pharmaceutical customer can eliminate their long Batch review process and release batches in Real Time because of the total integration to the plant process.
This document contains exam questions related to scope management. Specifically, it tests knowledge of key scope management terms like the work breakdown structure (WBS), scope baseline, and processes like define scope, collect requirements, and control scope. It also covers tools used in scope management like the scope management plan, scope statement, and WBS dictionary. The questions cover the purpose and outputs of various scope management processes and how to properly manage scope changes according to the defined change control process.
This document defines the deliverables for a project to improve the computer delivery time process. Deliverable 2 involves defining the project boundaries, which includes writing a problem statement identifying the defect as computers being delivered in 11 days on average versus the 10 day goal, drafting a project charter with details of the scope, timeline and benefits, and setting a goal of decreasing the delivery time to 9 days by a target date. It provides guidance on tools to use for each deliverable such as a SIPOC, inclusion/exclusion list, and elevator speech.
This document provides a contract management plan for a project. It outlines roles and responsibilities for managing contracts, tracking contracts, amending contracts, and closing out contracts. It references guidance documents and contract tracking databases to help manage the project contracts. The plan will be reviewed annually and updated as needed throughout the project lifecycle.
John Q Public completed a Six Sigma project from January 2006 to March 2006 to reduce quality defects in the XXX process at Never Fail Inc. The process was producing over 20% defects, resulting in customer complaints, inconsistent delivery, and increased costs. The goal was to reduce defects to under 0.5% while achieving 99% on-time delivery. As black belt, John created project documents, led a team through analysis tools including process mapping, DOE, and capability studies to identify and optimize significant factors. This reduced defects and improved customer satisfaction. The project saved $250,000 annually in material and labor costs by reducing scrap and improving capacity for on-time delivery. Bruce Almighty, Operations Director at Never Fail Inc., verified
Project Description The new computer-controlled convey.docxbriancrawford30935
Project Description
The new computer-controlled conveyor belt is an exciting project that moves and positions
items on the conveyor belt within 1 millimeter. The project will produce a new system for
future installations, and for replacement o f those in the field, at a low cost. The computer-
controlled conveyor belt has the potential to be a critical unit in 30 percent of the systems
installed in factories. The new system is also easier to update with future technologies. Table 1
has been developed for you to use in completing the project exercises.
Table 1 Conveyor Belt Project; WBS
Hardware Hardware specifications
Hardware design
Hardware documentation
Prototypes
Order circuit boards
Assemble preproduction models
Operating system Kernel specifications
Drivers
Disk drivers
Serial I/O drivers
Memory management
Operating system documentation
Network interface
Utilities Utilities specifications
Routine utilities
Complex utilities
Utilities documentation
Shell
System integration Architectural decisions
Integration first phase
System hard/software test
Project documentation
Integration acceptance testing
The project begins January 4, 2010.
The following holidays are observed: January 1, Memorial Day (last Monday in May),
July 4th, Labor Day (first Monday in September), Thanksgiving Day (4th Thursday in
November), December 25 and 26.
If a holiday falls on a Saturday then Friday will be given as an extra day off, and if it falls
on a Sunday, then Monday will be given as a day off.
The project teams work eight-hour days, Monday through Friday.
Part 1
1. Develop the WBS outline using the software available to you.
2. When is the project estimated to be completed?
3. How long will the project take?
4. What is the critical path(s) for the project?
5. Which activity has the greatest amount of slack?
Include the following printouts:
A Gantt chart.
A network diagram highlighting the critical path.
A schedule table reporting. ES, LS, EF, LF, and slack for each activity.
Table 2 Conveyor Belt Project; Schedule
Activity Description Resource (one team each) Duration (days) Preceding Activity
1 Architectural decisions Design 25 —
2 Hardware specifications Development, design 50 1
3 Kernel specifications Design 20 1
4 Utilities specifications Development, design 15 1
5 Hardware design Design, development 70 2
6 Disk drivers Assembly, development 100 3
7 Memory management Development 90 3
8 Operating system documentation Design, documentation 25 3
9 Routine utilities Development 60 4
10 Complex utilities Development 80 4
11 Utilities documentation Documentation, design 20 4
12 Hardware documentation Documentation, design 30 5
13 Integration first phase Assembly, development 50 6,7,8,9,10,11,12
14 Prototypes Assembly, development 80 13
15 Serial I/O drivers Development 130 13
16 System hard/software test Assembly 25 14.
Foods Case Study
What to cover
Executive summary
Define Phase
Measure Phase
Analyze phase
Improve phase
Control Phase
Conclusion
1. Executive Summary
In December 2008, the company began to receive heavy surcharge from local authorities because of their poor water quality, mainly due to an excess of biological waste entering the sewer system.
Biological Oxygen Demand (BOD) The amount of oxygen needed by bacteria to decompose all the solid wastes in wastewater. Accounted for 74% of the resulting fees. The total bill for poor water quality reached $204,000 in 2009.
A six-sigma team was tasked to extremely reduce the BOD, after 6 months they reached 70% with a goal of 95%.
2. Define Phase
Project Charter
Project NameBOD Reduction at Kahiki FoodsCommencement DateSep, 2009Project SponsorKahiki FoodsCompletion DateDec, 2010Expected Hard Cost Reduction$195,000Expected % Reduction95%
Project Mission
The main objectives are:
Intense reduction in solid waste entering floor drains.
Increase output at different plant processes.
Green initiative for the organization.
$195,000 hard cost reduction.
Problem Statement
Per local authorities BOD levels shouldn’t exceed 250mg/L
Kahiki had BOD waste levels of 3864mg/L, 1546% higher than upper spec limit
The source of the waste was obviously originating from inefficient floor drain management
6
Goal Statement
At least a 50% BOD reduction in 6 months and establishing a sustainable system able of reaching the goal of 95% reduction.
Process map
SIPOC map
8
3. Measure Phase
The waste removal system doesn't meet the spec.
Process Capability Charts
Measurement Plan
Demand Analysis
Metrics Used To Determine Water Quality
Biological Oxygen Demand (BOD)
Total Suspended Solids (TSS)
Total Kjeldahl Nitrogen (TKN)
BOD Process Capability Charts
TSS Process Capability Charts
Measurement Plan
N/B In any area of concern, should there be a negative response on any unit, the unit is rendered incomplete and therefore a defect.
13
Data Collection Challenges
System changed in 2007.
Standard sampling schedule 3 site visits/year moved to monthly.
Data collection visibility most critical points came from cleanup shift.
The above assessment was done by five individuals who were, one hired external expert, two quality assurance officers at the state government, while two are community professionals. MSA is an experimental process and require more views from different quotas of different levels of understanding to make independent judgments on quality (McCarty, 2005).
14
4. Analyze Phase
5 Why Analysis.
FMEA.
Gap analysis.
Fishbone diagram.
Hotspot heat map.
Regression Analysis.
Benchmarking.
5 Why Analysis
Plant Floor Drain Hotspot Heat Map
5. Improve phase
Improved Solid/Liquid Separation.
Reducing Waste Creation.
Employee Training.
Best Practice Identification.
WAP Committee: A "Waste Awareness Program“.
Error Proofing: Adding visual S ...
This is the short version of a Case Study showing the creation of a plan for a new operation for an eCommerce fulfillment business in healthcare in Canada. There is a longer version twice its length (the actual plan was more than 100 pages). It primarily shows the overall project, and then this piece's details of what was done, and what some of the output looked like.
The document is a scope management plan that defines project and product scope, outlines key elements of an effective scope management plan, and describes the scope management process. Specifically, it discusses:
- Defining project and product scope.
- Key elements of an effective scope management plan including defined roles and responsibilities, and a developed scope management process.
- Components of the scope management process including defining scope, developing a project scope statement, using a work breakdown structure (WBS), verifying deliverables against scope, and controlling scope.
Case Study - New Operations Plan & Design (Full version)Chief Innovation
This is the short version of a Case Study showing the creation of a plan for a new operation for an eCommerce fulfillment business in healthcare in Canada. There is a longer version twice its length (the actual plan was more than 100 pages). It primarily shows the overall project, and then this piece's details of what was done, and what some of the output looked like.
This document provides a plan for a small IT project. It outlines the project objectives, scope, resources required, estimated costs, and deliverables. The project scope involves developing and implementing a new equipment booking system. Key resources will include a project manager, business analyst, and application developer. The total estimated cost is $XXX, including internal staffing costs and external consulting fees. The main deliverables will be a new booking system with functionality for staff and students.
This project is working to improve the processes for capturing and reporting actual costs within a Project Management System. The project aims to solve the problem of unreliable cost data due to current deficient processes. The scope includes IT projects that use Earned Value Management and report results. Key deliverables in the Define phase included a thought process map, stakeholder analysis, SIPOC diagram, and definitions of critical quality aspects. The project is on schedule but slightly behind in the Define phase due to data collection. It remains on budget with $69,300 spent so far out of a $522,000 budget.
Data Evaluation and Modeling for Product Definition Engineering - ISE 677Justin Davies
This document discusses process planning and control for drafting activities at a product design engineering department of a gas turbine energy company. It summarizes the steps taken to analyze the current state of operations, identify inefficiencies, and develop metrics to measure performance and enable planning. Initial analysis using network flow diagrams revealed instances of rework loops and delays. Data from time logs was analyzed but found to have skewed distributions, making it difficult to establish baselines or track trends. Further analysis highlighted issues with the time logging tool and subjective estimates. A normalization method using confidence intervals was developed to establish a measurement baseline and enable improved planning and workload management.
The document defines key terms and deliverables for a Lean Six Sigma project. It explains that defining VOC (Voice of the Customer), VOB (Voice of Business), and CTQs (Critical to Quality requirements) is the first deliverable. This involves understanding the problem from the customer's perspective and how they define project success. Additional deliverables include defining the project scope, quantifying benefits, and developing a project management plan. Tools for each deliverable like affinity diagrams and project charters are also outlined.
- Covance implemented Six Sigma in 2005 to improve process efficiency and quality while reducing costs and time for clinical trials.
- A Six Sigma green belt project reduced medical writing narrative work time by creating a SAS program to automate standard header creation, achieving the goal of reducing time by 50%.
- Ongoing Six Sigma projects aim to further reduce times for tasks like writing clinical study reports and quality checking tables and figures.
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This chapter discusses project scope management and describes key processes like scope planning, definition, verification and control. It explains how to create a work breakdown structure and scope management plan. Guidelines are provided for developing scope statements, preventing scope creep, and using software to assist with project scope management.
The document outlines the Define, Measure, Analyze, Improve, and Control (DMAIC) process for a Lean Six Sigma project. It provides details on the key deliverables for the Define phase, including:
1) Define VOC, VOB, and CTQs to understand the customer problem and specifications;
2) Define the project boundaries and scope through a problem statement, process mapping, and project charter;
3) Quantify the project value by calculating the costs of poor quality;
4) Develop a project management plan identifying stakeholders, communication plans, milestones, and timelines.
Happy was a stray dog rescued by the author and his wife after losing their previous dog Lacey. Through training, Happy learned to follow commands but still had a wild side. While out walking on the beach during bad weather, the author fell and broke his hip and hand. Happy pulled the author to safety and then frantically barked for help. A woman came and called for an ambulance, saving the author's life. The author and Happy continue training together slowly as the author recovers.
The document discusses how relying too heavily on past experiences and logic can diminish innovation and curiosity in the foodservice equipment and supplies industry. Simply looking at what has worked or not worked before without truly understanding the reasons is conjecture. Conducting thorough post-mortems of past deals and projects to understand what went well and wrong could promote more growth. Taking a defensive pessimism approach that questions all aspects of a scenario can foster realism, positivity, and avoid negativity. No single approach of being only positive, negative, or realistic is sufficient - success requires harnessing different perspectives.
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Inventory in business defined as “an economic figure that tracks the dollar amount of inventories held by retailers, wholesalers and manufacturers across the nation. Business inventories are essentially the amount of all products available to sell to other businesses and/or the end consumer. When tracked alongside a sales index, production activity in the near term can be predicted.
I took much of this article from a Reuters news feed and began thinking. In the world today we are forced into global thinking, despite many countries or people wanting isolationism. It won’t happen.
If Apple had joined the DJIA earlier than March 2015, it would not have impacted DOW very much. Its positive impact would have started being felt after January 2011 but the impact would not have been great. Apple is not the top performing component in DJIA. Goldman Sachs is the top performing one for the past one year (to March 2014). The other top performing stocks are 3M, IBM and Boeing. Apple comes 5th.
Using Average True Range (ATR) with Point and Figure Charting
J. Welles Wilder developed the Average True Range (ATR) indicator to measure volatility over a specific period. The document discusses using ATR with Point and Figure charting to identify potential highs and lows, calculate stop losses, and project price targets. It provides examples analyzing stocks like BKD and BA using this method, noting support/resistance levels and calculating ATR values. The author advocates a 20-day ATR period and 5.53x multiplier for defining stops and projections.
The document discusses using simple moving averages (SMAs) as a leading rather than lagging indicator. It argues that SMAs can help identify support and resistance levels when used with techniques like point and figure charting to reduce noise. The document provides examples showing how SMAs of different time periods overlaid on a chart, along with other indicators like Bollinger Bands, can help traders analyze trends and potential entry and exit points.
1) The document discusses developing a comprehensive financial strategy that combines different investment ideas, practices, and notions into a coordinated plan.
2) It emphasizes regularly reviewing and adjusting the strategy based on economic changes to ensure the strategy's actions and goals remain aligned.
3) The author proposes a "Financial Select" approach that incorporates monthly coaching, regular strategy adjustments, and considering both long-term and short-term factors to develop a holistic financial strategy.
Few can argue that the end user's definition of value has changed, becoming mostly price-centric due to larger operators being owned by private equity or being publicly traded, focusing on shareholder value and lowering costs. As a result, value takes the form of lower costs in the eyes of operators, eroding the value provided by the supply chain through deeply cutting prices and timelines with little supplier input. This recurring cycle of commoditization and channel conflict is hard for the foodservice equipment and supplies industry to break, as stakeholders protect their interests amid a declining margins landscape.
The document outlines the key components of an effective strategy:
1. The overall goal that the strategy aims to achieve.
2. The costs associated in terms of time, money, people, and resources needed to execute the strategy.
3. Potential obstacles that could impact the strategy such as economic conditions, people issues, lack of resources, labor issues, and natural disasters.
4. Developing the strategy involves understanding the desired and undesired outcomes, conducting a SWOT analysis to identify strengths, weaknesses, opportunities and threats, and accounting for potential obstacles in the planning process.
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Dr. C.D. Fleet invented Chapstick lip balm in the 1880s in Lynchburg, Virginia. He sold the recipe to John Morton in 1912. Morton and his wife produced Chapstick in their kitchen and founded the successful Morton Manufacturing Corporation. In 1963, A.H. Robins Company bought Chapstick and has produced many flavors and types since. Some key developments include the addition of sun protection in 1981 and squeezable tubes in 1985. Lip balm companies like Chapstick and Blistex generate over $200 million in annual sales in the U.S.
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This document discusses the debate around immigration to the U.S. It notes that while immigrants have historically contributed to U.S. economic growth and prosperity, the debate has taken different turns as some native-born Americans see immigration as a threat. While most agree some level of immigration is acceptable, there is disagreement around how many and what types of immigrants to allow. The document also outlines some arguments made against immigration and taxes paid by undocumented immigrants. It concludes that the debate is complicated by politics and gerrymandering that reduces incentives for compromise.
Condoms have a long history dating back thousands of years. Ancient Egyptians used linen sheaths for disease protection around 1000 BC. Through the centuries, condoms were gradually improved - made of materials like animal intestines, linen, rubber, and eventually latex. Mass production began in the 1800s after the invention of rubber vulcanization. Today condoms are widely used for both disease prevention and birth control, and come in many types and sizes.
Richard D. Wyckoff was a famous trader in the early 20th century known for his analysis of volume, price trends, and sector rotation. He viewed the market as a "composite man" representing total investor behavior. Wyckoff developed principles of supply and demand, effort vs. result, and cause and effect to identify accumulation and distribution patterns. His methods focused on analyzing price and volume trends using bar charts, point and figure charts, and tracking relative sector performance to identify trading opportunities. Wyckoff's teachings emphasized understanding the psychological phases of markets and using indicators like volume and trendlines to recognize accumulation and distribution periods.
The document discusses how a company called The Evans Group used innovation and principles from Sun Tzu's The Art of War to disrupt the market leader Murky Shire. They launched a new company with improved products that were safer, higher quality and 50% cheaper than Murky Shire's. Using tactics like "pulling through" the distribution chain and approaching clients directly, they gained market share. In just a few years they became the #1 producer and sold the company, demonstrating how innovation based on The Art of War can help an underdog defeat an entrenched competitor.
The use of the words “citizen” and “consumer” to many would appear to be synonymous when in actual fact, there are often conflicts between their desires and aspirations that could lead one to believe that these are two different groups of individuals.
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
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Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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How to Setup Warehouse & Location in Odoo 17 InventoryCeline George
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How to Manage Your Lost Opportunities in Odoo 17 CRMCeline George
Odoo 17 CRM allows us to track why we lose sales opportunities with "Lost Reasons." This helps analyze our sales process and identify areas for improvement. Here's how to configure lost reasons in Odoo 17 CRM
2. ACME ANALYSIS PROJECT PHASE 1 REPORT
Table of Contents
Project Scope and References .......................................................................................... 3
In-Process Project Modifications ..................................................................................... 3
Data and Information Collection ............................................................................................4
Contract Review and Analysis .................................................. Error! Bookmark not defined.
Best of Bread EMS Contracts .................................................................................................5
Organization .............................................................................................................................6
Core Business Process Mapping .............................................................................................8
XYZ CORP./ACME SYSTEM VIEW........................................................................................................8
INITIAL IDENTIFICATION OF CORE PROCESSES ...............................................................................9
Demand Flow: ................................................................................................................................................. 9
Pricing Approach: ...................................................................................................................................... 10
Payment Process: ....................................................................................................................................... 11
Business Flow: .................................................................................................................................... 12
PURCHASE PRICE VARIANCE ................................................................................................................. 13
Systems View: .............................................................................................................................................. 13
PPV Reconciliation: ................................................................................................................................... 14
Identified Feeds to Reconcile PPV: ........................................................................................................... 15
FINAL IDENTIFIED CORE PROCESSES .............................................................................................. 15
Component Inventory PPV (Feed 1) .......................................................................................................... 15
Component Inventory PPV (Feed 1) .......................................................................................................... 16
CTO Value Add (Feed 2) ............................................................................................................................ 17
Component Inventory Revaluation (Feed 3).............................................................................................. 18
Blanket Purchase Agreement Adjustments (Feed 4) ................................................................................. 19
Reversals for component revaluation from prior quarter (Feed 5) ........................................................... 19
Sales order cancellation credit to ACME (Feed 6) .................................................................................... 20
Non-ACME supplier PPV to Sunnyvale (Feed 7) ..................................................................................... 21
Accounts Payable Approval Process (Feed 9) ........................................................................................... 21
CCBOM/BPA Variance Posting Process (Feed 10) .................................................................................. 23
Financial Reconciliation ........................................................................................................24
Process Analysis .....................................................................................................................25
KEY OBSERVATIONS ............................................................................................................................... 25
Information Systems ..............................................................................................................26
Interfaces and Communications ...........................................................................................26
Recommendations ..................................................................................................................26
PROCESS ...................................................................................................................................................... 26
CONTRACT IMPROVEMENT AND ENHANCEMENT ....................................................................... 26
ORGANIZATION OPTIMIZATION ........................................................................................................ 27
FINANCIAL RECONCILIATION ............................................................................................................. 27
Summary .................................................................................................................................27
Page 2 of 27
3. ACME ANALYSIS PROJECT PHASE 1 REPORT
Project Scope and References
John J. Doe & Associates (ABCD) (XYZ Corp.) to provide an independent analysis of portions
of the business relationship and supply chain issues between ACME and XYZ Corp..
Additionally, the lack of ability to provide management with a complete understanding or
prediction of the reported “ACME PPV/Variance(s)” was a major triggering event for the
launch of this project.
The work product was mutually agreed and defined by the following documents:
>
Letter ABCD to XYZ Corp. dated June 19, 2006
o Business Process & Financial Flows for Contract Manufacturing
o M. Wais email “ACME Analysis, Attachment A to June 19th letter
> Letter ABCD to XYZ Corp. dated June 25, 2006
o Project Outline for ACME Business & Financial Flows: Revision 2
o Project Outline Revision 2, page 2 of June 25th letter >
Project Flow chart, presented at kick-off meeting July 17, 2006 >
Statement of Work dated July 17, 2006
All PowerPoint review presentations are an integral part of this final report are attached for
reference. The three members of the ABCD team that participated in this project were John J.
Doe, John F. Doe and Brian Wax.
In-Process Project Modifications
Modifications to the project scope were made during the project with agreement by both
parties. The following are the significant changes to the project as defined in the above
referenced documents:
>
>
>
>
>
Phase 1 was specifically specified to “NOT include terms or conditions that may be
targeted for contract improvement” (Attachment B, 1st bullet). ABCD performed
significant work in Phase 1 to a) identify areas within the existing contract to be
considered for modification and/or negotiation and b) to provide Best-of-Breed terms
that are not contained in the contract or agreements for consideration by XYZ Corp. for
future contract negotiations. (Please see “Contract Analysis” section of this report).
Phase 1 included the interviewing of ACME staff, which was removed as a requirement
, 2nd bullet). It was the opinion of ABCD that interviewing of ACME staff was
premature based on the findings during Phase 1. These interviews should be
rescheduled for the beginning of the next project phase, after XYZ Corp. has the
opportunity to digest Phase 1 findings and develop an action plan.
Additional analysis of payment data was stopped after the sampling of data stores did
not show any problems or inconsistencies. The significant problem of reconciling the
reported variances also inhibits or reduces the value of this effort.
ABCD
recommended that this work be reconsidered after the completion of Phase 1 and after
XYZ Corp.’s ability to reconcile variances is consistently achieved.
Detailed reconciliation mapping and analysis was added to Phase 1 as it was a
significant problem that was not initially expected.
An additional project review was added to Phase 1.
Page 3 of 27
4. ACME ANALYSIS PROJECT PHASE 1 REPORT
Data and Information Collection
Per the agreed plan, ABCD used information and data provided by XYZ Corp. coupled with
over twenty-five employee interviews to obtain the information required, and to assist in
leading XYZ Corp. personnel to work solutions to noted and/or discovered issues.
Additionally, work group sessions were used to assist in the collection of pertinent
information on cross-functional problems and ownership. ABCD and XYZ Corp.
management had both planned and unplanned review meetings and conversations during the
course of the project. The following is the list of XYZ Corp. core employees interviewed and
involved in the project:
>
Supply Chain Management
o EMS
o Purchasing
o Manufacturing Operations
o Commodity Management
o Senior Management
>
Finance
o Accounts Payable
o Cost Accounting
o Senior Management
Sponsors
>
The following is the list of documents provided for review and/or analysis:
>
Contracts
o
> Spreadsheets
o
> Power Points
o
The EMS contract and supporting spreadsheets for pricing and variance determinations were
reviewed in detail. These documents were reviewed for two core purposes, 1) for foundation
information to understand the current business relationship and to help define how XYZ Corp.
and ACME routinely operate and 2) to find areas that XYZ Corp. can improve their contract
position with ACME. (Please reference first bullet on page one under “Project Modifications).
This report section deals with potential areas for contract improvement and enhancement.
In general, the XYZ Corp./ACME MSA is relatively standard in nature. ABCD did not find
any extraordinary issues that are of imminent concern. The approximately fifty notations and
comments made by ABCD can be located i (ACME MSA with “track changes” on) to this
report. The comments vary from minor “clean-up” issues to important concerns. Specific
concerns that should be addressed and negotiated with ACME (or any other supplier that XYZ
Corp. uses, or may use in the future) as soon as feasible are as follows:
>
Epidemic Failure: The contract does not include any reference to epidemic failure that
could be induced by ACME assembly, test or workmanship. Clauses of this sort are
Page 4 of 27
5. ACME ANALYSIS PROJECT PHASE 1 REPORT
>
>
>
>
>
>
becoming more frequent as companies turn over more and more of manufacturing and
configuration to third party partners.
Contract Pricing: In cases that XYZ Corp. has negotiated contract pricing with
suppliers, section 6.2 should “require” ACME to pay no more than the stated contract
prices. This provides protection in case of a later dispute if costs are exceeded without
having to justify a position by XYZ Corp..
Profit Margin: ACME has guaranteed profit and/or operating margins independent of
performance. XYZ Corp. should consider language that ensures appropriate, measured
performance by ACME to mutually agreed XYZ Corp. requirements or ACME profit
can be limited or excluded. In addition, XYZ Corp. should ensure that they do not pay
profit on accounts that typically would be excluded, i.e. SG&A.
Flexibility:
The current flexibility clause is incomplete and potentially ambiguous.
Significant detail is required in defining flexibility coupled with specific time frames,
horizons, product priorities etc. Without clear definition, it is relatively easy for EMS
providers to under perform, without consequence to themselves, while potentially
causing XYZ Corp. or XYZ Corp. customers’ grave issues.
Carrying Costs: The contract allows ACME to be paid carry costs regardless of
responsibility for the root cause. The contract should be specific that carry costs will
only be allowed if there is an action by XYZ Corp. that causes the event and ACME is
unable to mitigate the effect of the XYZ Corp. action within normal business
operations and expectations of an EMS partner.
Margin on Margin: The current XYZ Corp./ACME pricing model allows the
accumulation of margin on margin. A significant benefit from a single EMS and CTO
provider is that potential limitation or even exclusion of these costs to XYZ Corp..
Consideration should be provided by the EMS partner to XYZ Corp. for the significant
additional revenue generated by the EMS partner that this sourcing methodology
affords.
Benchmarking and Validation: XYZ Corp. should ensure that lead-times, time
standards and component costs are highly competitive through benchmarking or some
other means with a requirement for reimbursement if the reported costs are determined
to be out of line with the industry and/or competition.
Best of Bread EMS Contracts
This section is added based on a specific request by the Vice President of Supply Chain.
ABCD reviewed the current business and contract relationship between XYZ Corp. and
ACME, for the determination of “Best of Breed” terms, conditions and concepts that could be
utilized to enhance XYZ Corp.’s contract position and improve EMS performance.
Progressive OEM’s have been negotiating many of the following concepts into their business
agreements. Each of the items should be looked at for their individual merit as well as how the
combined deployment of these concepts will enhance the various areas of EMS performance.
It is likely that the EMS provider either will be initially resistive to some of the concepts, as
there is a shift of responsibility to the EMS provider or requires the EMS provider to improve
supply chain processes.
>
Lead-time Management: This area is regularly under invested in by OEM’s. Lead-time
has immense impact on a number of critical performance areas; flexibility (both up and
down), product mix changes, excess and obsolete, cost take-down rates, cost
Page 5 of 27
6. ACME ANALYSIS PROJECT PHASE 1 REPORT
>
>
>
>
>
>
>
reduction implementation, ECO implementation, etc. Terms controlling lead-time
management based on industry best lead-time, benchmarking and audit ability, supply
chain simplification, etc. should be considered.
Flexibility: Most flexibility terms are not complete and provide many loopholes for the
EMS supplier. The actual definitions and associated algorithms for calculation and
performance measurement need to be well understood and agreed upon by both parties.
Additionally, clauses requiring the EMS supplier to take complete responsibility for all
the non-OEM controlled sub suppliers should be included. Inclusion of the subsuppliers should help ease the burden on both the OEM and EMS.
Limits of Liability: Adding terms requiring the EMS supplier to be responsible for all
costs associated with standard off-the-shelf components should be considered. The
EMS provider generally has more leverage than the OEM, uses this fact for a sales
technique and then still makes the OEM responsible for costs associated with the
procurement, carrying, return, end-of-life transitions or excess material.
Cost Reduction: Specific ties to industry takedown rates with plans for benchmarking
and audit ability should be part of the agreement. Measurement to “best of breed” as
opposed to industry “standard” should be considered.
Global Pricing and Costs: Requiring the EMS supplier to provide component pricing at
the lowest global cost in any geography will provide lower costs and reduce the cost
management effort of the OEM.
Most Favored Customer: Most favored customer clauses are universally disliked by
most EMS suppliers. The clause requires that the EMS supplier not charge the OEM
any more than the lowest cost or rate, offered to any of their other customers.
Pay at Final Delivery: As more and more of the operation are transferred to EMS
providers, it becomes easier for the third party providers to obtain profit on individual
portions of their business (i.e. board assembly to CTO). A consideration for having a
limited number of “partners” should be the cost avoidance offered with the “four walls”
of the supplier.
Quality Performance:
Quality performance is rarely defined well. Appropriate
definitions with defined metrics, audit ability coupled with regular, accurate
measurement tied to specific and consequential rewards or penalties should be
deployed.
Organization
The capability and performance of the EMS commodity management team has broad and
significant influence on the entire supply chain organization and therefore on the Company.
Defining clear roles and responsibilities for the EMS commodity team is critical.
As expected, the current organization is highly focused on the “number one” goal of ensuring
product delivery. This singular focus, and organizational performance measurement, may be
causing a lack of development in other critical areas. Short-term delivery performance must be
coupled with long-term strategic initiatives that will continue to support XYZ Corp.’s
growth and performance goals long into the future.
Proper organizational structure,
leadership, staffing and strategic planning are paramount for the EMS commodity team to
become a high performing organization. As XYZ Corp. continues to grow and likely sees
pressure on gross margins, management of the third party providers will become even more
critical, and the commodity team will experience increasing performance pressure.
Page 6 of 27
7. ACME ANALYSIS PROJECT PHASE 1 REPORT
Additionally, with the enormous continuing growth experienced by XYZ Corp., the third party
partnership and associated spend will require excellence in all aspects of performance and
execution.
Companies that have high performing EMS commodity teams typically have the team
separated into three functional capabilities regardless of actual organizational structure. Core
responsibilities for these key areas are as follows:
Administrative: Responsibilities include all aspects of basic day-to-day business
activities, both internally and externally.
Responsible for all reports, business
documents, engineering documents, data collection, inter-departmental information
flow, etc. happens in a routine, timely and accurate manner.
Fulfillment: Ensures delivery of product to end customer through EMS/CTO partner,
inclusive of capacity planning and assurance, short-term ramp (up or down)
achievement. Responsible for cost reduction implementation, assurance of
component supply in tandem with other company commodity teams and
implementation of forecast to order process.
Strategic: Has strategic responsibility for development of EMS/CTO commodity
strategy, sourcing, contract negotiation, cost and all executive cross-functional
interaction both internally and externally.
In companies of comparable size to XYZ Corp., it is common for the commodity team to
consist of five to seven people depending on product volatility (both number of SKU’s and
volume and/or mix changes). The appropriate structure and number of people is critically
associated with where the organization is currently in functional capability and maturity, and
whether the development and deployment of a long term, strategic commodity strategy exists.
From our limited contact through this project, it appears that the area of fulfillment is the key
focus area, and achieves the desired results in product delivery. Strategic direction and
administrative areas should be assessed for performance enhancement. A skills assessment in
conjunction with an organizational analysis should be a completed with the assistance of an
outside independent third party. When the organizational and skills assessment is complete, a
development transition plan can be put in place.
Page 7 of 27
8. ACME ANALYSIS PROJECT PHASE 1 REPORT
Core Business Process Mapping
ABCD team members initiated the core process mapping effort by identifying key process
stakeholders through referral from senior managers. Initial interviews with these stakeholders
lead to other individuals who had content knowledge of the core processes or who could
provide information used in these processes. We did not engage ACME employees who
interact with XYZ Corp. supply chain personnel. External interviews during phase 1 were
considered premature at this time of the investigation. Phase 2 should include the ACME
counterparts who complete the supply chain relationship.
Process mapping, contrary to conventional belief, requires participants to succinctly and fully
describe the business models and methods in a logical and disciplined manner. At the highest
level, several iterations will be required to identify key relationships and interdependencies and
gain consensus on exchange of knowledge or work product. While conducting the process
mapping interviews it was difficult to obtain the needed time and priority from some
individuals or small teams required to complete specified steps. Numerous meetings were
missed or quickly ended due to conflicting priorities or absence of key participants. At times,
the participant’s level of interest was low or he/she was facing other distractions.
At the beginning of the process mapping stage, core, or key processes, were identified that
culminated in the analysis and reporting of ACME purchase price variance or compensation.
As definition progressed with the core processes, we discovered a set of reports and activities
that were crucial for completing variance analysis.
XYZ Corp./ACME System View
The following process chart represents a graphic depiction of the high-level system that
controls the XYZ Corp. and ACME business, inclusive of the three different portions of a
supply chain; information and data (including interpersonal communication and verbal work
direction), financial and material movement/flow.
The process is semi-complex in nature but not significantly different from other similar
companies and their relationships with third party EMS and CTO providers. There are
significant numbers of email and verbal communications that should be considered for process
documentation and possible system automation.
Page 8 of 27
9. ACME ANALYSIS PROJECT PHASE 1 REPORT
Initial Identification of Core Processes
The core processes were identified by XYZ Corp. participants. Consensus was reached at a
system level, but as the flow suggests, there are process activities that are not described. The
process flow illustrates that interdependencies exist but does not go into sufficient detail to
provide a robust description of the actual event triggers, services or products and the sequence
of activities.
Demand Flow:
This illustration shows how operations planning
generate demand requirements for either ACME or
XYZ Corp. Sunnyvale. Information systems are
noted but not completely understood by the various
cross-functional organizations.
A complete
understanding of the forecast to order process is
required as the conversion from forecast to orders
happens within this process, with no real-time
feedback or adjustment for financial planning.
Reconciliation of forecast to actual is after a quarter
end.
Page 9 of 27
10. ACME ANALYSIS PROJECT PHASE 1 REPORT
Pricing Approach:
The methods that XYZ Corp. uses to calculate pricing and cost standards cause confusion and
create variances that are not truly PPV as compared to industry standard definitions. These
amounts however, are included as “ACME PPV” and cause consternation as that portion of the
“variance” is regularly misunderstood. The methodology deployed is unique to XYZ Corp., but
not necessarily a “bad” approach. More cross-functional education is required to ensure that all
participants are truly on the same page; understanding and comprehension of XYZ Corp.
semantics and definitions.
Page 10 of 27
11. ACME ANALYSIS PROJECT PHASE 1 REPORT
Payment Process:
The payment flow identifies the core relationships between XYZ Corp. and ACME. In brief,
XYZ Corp. provides the build forecast. EMS and CTO pricing is managed through reports
exchanged between the two entities. Monthly and quarterly reports are created that identify
pricing issues that require adjustment. Adjustments are made and ACME eventually invoices
XYZ Corp. for product and services.
Page 11 of 27
12. ACME ANALYSIS PROJECT PHASE 1 REPORT
Business flow:
The following flowchart is representative of the business systems view. It identifies business
relationships. It does not describe complexity of the relationships. Beginning and end points are not defined nor are actual business requirements that drive this system. As the
investigation progressed into the core processes, it was discovered that the embedded
processes for Blank Purchase Agreements, ACME forecast and BPA are not documented nor
controlled by a clearly defined processes.
This is an associated factor in why it was difficult to define the processes and process
interdependence. The business management methodology is not generally uniformly or fully
understood by any group or individual. Many of the actions that occur are functional methods
that have been passed down from prior employees or created by individuals with core
functional responsibility but without consideration for cross-functional implications. Evidence
suggests that a comprehensive business plan and method for managing the ACME relationship
is critically needed.
Page 12 of 27
13. ACME ANALYSIS PROJECT PHASE 1 REPORT
Purchase Price
Variance Systems View:
The financial and accounting tools and practices exist that allow XYZ Corp. to manage cost
accounting, forecasting materials, sales orders and subsequent financial adjustments. With
these tools and business practices, XYZ Corp. employees should be able to estimate PPV and
all of the PPV elements.
Interviews were conducted with the identified owners of the reporting processes. We
interviewed owners individually and in small teams where data or information hand-offs were
occurring. We discovered a minimal degree of consensus existed on data actually reported
from each process feed. Cost accounting and Supply Chain personnel had to work through the
numerous details to validate the data or information and how it is collected and finally
reported. The Q4 variance was the initial target as it was a substantial amount of money and
there was an apparent inability to describe how the total variance was derived. The following
is the initial variance derivation and reconciliation model.
Page 13 of 27
14. ACME ANALYSIS PROJECT PHASE 1 REPORT
PPV Reconciliation:
Twelve feeds were eventually mapped into flow charts. There are flow charts representing of
nine of the twelve feeds (the Decru feed is no longer used and two are direct outputs of Oracle
accounts) noted in the spider diagram below. These 12 feeds/calculations are generally
independent of the PPV reconciliation and serve other primary purposes. The feeds are utilized
to extract PPV when an issue or problem arises. There is no defined method or process for
conducting PPV reconciliation.
Calculating PPV is currently conducted by gathering information or data from numerous
sources. How and what the data represents in each flow has not been considered important. At
times, when asked about the source of any given processes that came from outside the function
of the reporter the answer was, “that is not my concern or functional responsibility”.
The PPV reconciliation method is not a documented process. As it stands currently, the PPV
reconciliation is not scalable, sustainable and repeatability of the same method is unlikely.
Therefore, trending or analysis based on past efforts will have a potential for being inaccurate
and without substantial validation of data.
Page 14 of 27
15. ACME ANALYSIS PROJECT PHASE 1 REPORT
Identified Feeds to Reconcile PPV:
Each of the feeds were individually identified and described by the owners of the activities that
roll up in to the reconciliation. These are very high level and do not solidify into a documented
or formal method of practice. During the interview process, it was apparent that little
orchestration had been done by the owners to understand the relationships and interdependence
of the data, and how it was actually was gathered and reported.
To this date, we do not have formal consensus between the owners on what the data is, or how
it is actually transacted. An agreed upon conclusion is critical in defining requirements and
specific products that are passed on through the value chain. This evidence re-enforces the fact
that the process is largely based on tribal knowledge, and passed along by “word of mouth”.
(None of the actual reports or tools used by the designated owners were provided during the
mapping of the processes).
The described core processes (variance feeds) were created by. The Accounts Payable
processes were created and published in the Procure to Payment process engineering initiative.
This process has been validated by the P2P team.
Final Identified Core Processes
The following are the final set of core processes that were identified by the participants as the
ones that were critical to managing ACME, and for reconciling the “ACME variance” that is
reported to executive staff. (These are “core” processes, and will be used for as-is mapping in
phase 2, and not a deliverable for phase 1).
Page 15 of 27
16. ACME ANALYSIS PROJECT PHASE 1 REPORT
Component Inventory PPV (Feed
1) Identified Owner: Mark Shindel
Processes Scope:
Commodity Management reviews a PPV
inventory report submitted by ACME
personnel.
Commodity management
forwards the report to the commodity
teams for review and identification of
issues with part pricing. If no issues are
identified, payment is processed. If issues
are found, it is up to the specific
commodity manager to work the issue with
ACME.
Issues/Observations:
There is no closed feedback loop on issues
and does not have a measured corrective
action plan, or remedied part pricing. The
loop does not include a report back to the
Commodity Management Team leader
who should verify that a discrepancy was
actually fixed and prevented from
reoccurring.
There is no automatic
tracking mechanism or system identifying
a price change. The only way to confirm
pricing is to review the next month’s
report. Discrepancies will likely end up in the A/P hold report and adjustments made over time.
Errors of this nature will permeate the PPV reconciliation process (including quarterly BPA
adjustments).
Recommendations:
Part pricing issues should be tracked and reported in order to reconcile changes in the purchase
price to actual changes in PO line items.
A PPV inventory review should be a scheduled event, within a defined process, that coincides
with payment on a fixed, regular basis. The report is submitted by ACME on a monthly basis;
however, it is not known when XYZ Corp. personnel complete the review.
Page 16 of 27
17. ACME ANALYSIS PROJECT PHASE 1
REPORT
CTO Value Add (Feed 2)
Identified Owner: Dustin Wang
Processes Scope:
This process identifies forecasted pricing
based on historical Blanket Purchase
Agreements. XYZ Corp. standard pricing is
contrasted and subtracted out leaving the
ACME compensation value. The same is
done with actual sales orders and XYZ
Corp. standard pricing. Cost accounting
prepares a monthly report that is distributed
to the XYZ Corp. financial community.
Issues/Observations:
The primary reason for this process is to
report monthly payment to ACME in
contrast to actual cost to XYZ Corp.. This
process is independent of the actual method
and should be reviewed to determine if the
numbers reported are accurate and not
double counted in any other process report.
This is a “net” report and does not identify
any corrections, changes or adjustments.
Recommendations:
This process’s relationship to other
financial reports that affect PPV needs to be
fully understood. For example, how does
the timing of inventory PPV impact
this report?
(The belief is they are
mutually exclusive).
Page 17 of 27
18. ACME ANALYSIS PROJECT PHASE 1 REPORT
Component Inventory Revaluation (Feed 3)
Identified Owner: Dustin Wang Process
Scope:
Cost accounting reviews blanket purchase orders by
consecutive quarters to identify price changes in contrast to
the XYZ Corp. standard pricing. These parts are described
as “3 by 5” components. Cost accounting identifies and
extracts specific parts that were impacted by the creation of
a new blanket purchase order. Materials on hand are then
multiplied by the cost difference from the new BPA. This
establishes the revalued parts on hand pricing. This process
is completed for each ACME location.
Issues/Observations:
Through the interview process, it was discovered that
ACME sites might handle pricing adjustments with different
methodologies. This requires validation to ensure accuracy
of the component revaluation.
Recommendations:
Complete a comprehensive “as is” map of the attached
flow. Match to each ACME site pricing and adjustment
methods. This should be performed within unique part
families.
Page 18 of 27
19. ACME ANALYSIS PROJECT PHASE 1 REPORT
Blanket Purchase Agreement Adjustments (Feed
4) Identified Owner:
Process Scope:
This process defines how cost accounting makes quarterly
adjustments to blanket purchase orders that begin and/or end
quarterly. Depending upon when a new BPA takes effect pricing
is adjusted to reflect the new BPA
Issues/Observations:
Timelines and consistency may make comparing and analyzing
quarterly adjustments difficult.
Recommendations:
None
Reversals for component revaluation from prior quarter
(Feed 5) Identified Owner: Dustin Wang
Process Scope:
The purpose of this process is to revalue component pricing
that have accrued for one fiscal quarter.
Issues/Observations:
Are accruals accurate given the number of adjustments that
happen over the fiscal quarter? Given that commodity
management is changing prices on a monthly basis, how
does this impact accrual reporting?
Recommendations:
None
Page 19 of 27
20. ACME ANALYSIS PROJECT PHASE 1 REPORT
Sales order cancellation credit to ACME (Feed
6)
Identified Owner: Lisa Bullis
Process Scope:
To ensure that product that is “configured to order
then cancelled” is tracked and restocked to
inventory. ACME and the XYZ Corp. PLM’s
report electronically the cancelled orders,
subsequent break down, and restocking activity.
XYZ Corp. PO line items are adjusted and ACME
and the PLM’s are compensated for the tear down
process
Issues/Observations:
None
Recommendations:
None
Page 20 of 27
21. ACME ANALYSIS PROJECT PHASE 1 REPORT
Non-ACME supplier PPV to Sunnyvale (Feed
7)
Identified Owner: Dustin Wang Process Scope:
This process defines the PPV for non-ACME
suppliers.
Issues/Observations:
This process has a noticeable difference in
contrast to the PPV for ACME. It appears that
cost accounting does the price analysis with out
closing with Commodity Management. Box 5.0
has no resolution. A price or percentage filter is
used to determine if a part is out of control from a
price perspective. The filter level is set on
“professional” judgment.
Recommendations:
Define a closed loop solution with Commodity
Management. Define a standard for professional
judgment. The price variation may be dynamic,
and the filter level may be ineffective for different
types of commodities.
Accounts Payable Approval Process (Feed 9)
Identified Owner:
Process Scope:
Management process for all transactions invoiced through Accounts Payable. Payment issues
that are discovered end up in a hold file until discrepancies are rectified.
Page 21 of 27
22. ACME ANALYSIS PROJECT PHASE 1 REPORT
(chart follows)
Issues/Observations:
Historical data reveals that a large dollar amount is maintained in this location until issues are
resolved. Revaluation and quarterly adjustments that do not reconcile will be placed on hold
and payment will be delayed
Recommendations:
None
Page 22 of 27
23. ACME ANALYSIS PROJECT PHASE 1 REPORT
CCBOM/BPA Variance Posting Process (Feed 10)
Identified Owner:
Process Scope:
Process for identification of price variances and
adjustment with ACME. This Process appears to
be a derivative of process #1. A filter is used (to
determine at an aggregate) if the variance is out
of control.
Issues/Observations:
Process #1 and process #9 appear redundant.
This exercise may be able to be completed at the
same time as process #1. The filter of 5% also
requires validation. The filter may be effective
for certain components and at the same time
could leak considerable expenditure on a
different class of components.
Recommendations:
Consolidate process 1 and 9 into one process.
Verify/validate the percentage/dollar amount is
appropriate for all commodities.
Page 23 of 27
24. ACME ANALYSIS PROJECT PHASE 1 REPORT
Financial
Reconciliation
Numerous attempts were made
by various ABCD staff to have
the main participants develop
a simple reconciliation chart
based on the identified
variance feeds.
We were
unsuccessful in our attempts.
This may be indicative of a lack
of ownership or priority to the
variance issue and ensuing
project.
The chart (pictured at right)
(provided to the participants
in
excel
format)
was
developed by ABCD for use
by the assigned owners. The
purpose of this chart and its
completion (as it applies to
this phase of the project), was
to confirm that all elements of
the identified “ACME PPV”
variance were completely
understood and that the
business
owners
could
demonstrate to management
that they can reconcile the
variance amounts reported to
executive staff.
The subsequent use of the chart,
and associated data, is in the
determination of the validity,
predictability, accuracy of each variance and its origination. Furthermore, the data should be
analyzed to be sure that it “makes sense” from a value perspective as well as an ownership and
process perspective. The use and analysis of this information is the core of understanding how
to improve performance and assist in making strategic decisions. As of this writing, ABCD is
unable to provide any further insight, as there has not been completion of the data by the
business owners. We believe that this must be made an extremely high priority by management
or it compromises creditability and impedes performance enhancement and strategic decisionmaking.
Page 24 of 27
25. ACME ANALYSIS PROJECT PHASE 1 REPORT
Process Analysis
Throughout phase 1, it became evident that actual defined methods or processes to manage
ACME and all subsequent reporting do not exist. This is a systemic problem resulting from a
lack of definition of core processes, the interdependencies between processes coupled with
clearly defined roles and responsibilities. When a cross discipline effort is initiated, clarity of
purpose and direction diminishes and functional team members point at each other as the data
source. While trying to define the PPV process, the stakeholders would make statements,
“Where the number comes from is not my problem”. The reporting requirement now suffers
from validation and accuracy is suspect. The reports utilized to create a PPV report are XYZ
Corp. internally created except for the monthly report from ACME and sales order
adjustments. The actual methods or Oracle reports for gathering the data remain unknown. We
only observed Microsoft Excel spreadsheet data. Cross analysis and comparison happens
when cost accounting completes a monthly finance report that is delivered to executive staff.
This finance reporting effort appears to be the only PPV analysis that is done on a consistent
quarterly basis. The issue with this particular report is that is missing several processes to
complete a more comprehensive report. Additionally, all the data is post facto and several of
the reconciliation processes do not have closed loop reporting to ensure pricing variances were
actually corrected and reported.
While conducting two process definition meetings the cost accounting function and supply
chain functions could not agree on the method for calculating the PPV. A subsequent follow
up meeting with cost accounting and supply chain functions was redirected by supply chain
not to include cost accounting.
What does exist is an informal set of actions that allow a knowledgeable participant to source
and put together a report on PPV when requested to do so. This series of actions has no
defined beginning or end-point. The key stakeholders still have not demonstrated consensus on
how to complete the PPV analysis.
Key Observations
>
>
>
>
>
>
>
>
No clear ownership for reporting PPV exists
Actual cross functional understanding of the reconciliation method does not exist
The methods and lower level actions are not documented.
PPV analysis is a requirement for managing the ACME relationship. Currently
PPV is reactive only and has no front-end business impact.
PPV and other supplier facing processes are not documented
Core processes are now documented, but the interrelationship and dependencies of
the processes are not well defined or understood.
Repeatability is possible only through tribal knowledge, predictable results are
questionable in quarter to quarter analysis
Work product methods are not repeatable, sustainable or scalable
Page 25 of 27
26. ACME ANALYSIS PROJECT PHASE 1 REPORT
Information Systems
ABCD was not provided insight into the applications or tools that are used to create reports
etc. that comprise the core process and subsequent variance reconciliation. Interviewee
statements confirmed that Oracle and SAP were the critical applications that contained the
pricing engines, blanket purchase agreements and the tools to produce a report. Consolidation
of reporting streams would benefit the overall effort in contrast to physically chasing down
the numbers.
Interfaces and Communications
Common statement made by key stakeholders “Not my concern how they got their numbers”
is problematic in validating how all input streams culminate in a well-established answer. The
comment also demonstrates a belief or position that how an individual stream may be of value
to reporting is irrelevant or “not my problem”. Clearly defined PPV ownership as described in
the process section will ensure that all streams are understood and more importantly, how they
actually impact PPV.
Recommendations
In addition to the individual recommendations noted in this report, the majority of all
recommendations fall into the following four major groupings:
Process
>
>
>
>
>
>
>
Designate a responsible business process and program owner with a set of
performance expectations to monitor and report PPV on a monthly basis
Formalize a team of participants to create the “As Is” process utilizing a
comprehensive process design approach such as “Six Sigma”
The business owner will be responsible for driving and achieving consensus on the
core processes and subsequent as-is mapping
Obtain consensus on core processes so a more effective as-is process mapping
project can be effectively launched
Define and endorse project scope, executive sponsor, milestone driven plan with
concrete deliverables
o (DMAIC), Define, Measure, Analyze, Improve, Control.
o Formal progress reporting to management
o Sustaining plan to institutionalize process
Align newly defined processes and methods to company quality requirements
Develop methods for testing and sampling data from Oracle to ensure data
management is being addressed from a quality perspective
Contract Improvement and Enhancement
>
Develop plan and timeline to obtain Best-of-Breed contracts and EMS/CTO
performance as previously noted in report
Page 26 of 27
27. ACME ANALYSIS PROJECT PHASE 1 REPORT
Organization Optimization
>
>
>
>
Align materials functions to complement EMS and CTO businesses frameworks
Conduct skills, capability and interest assessment to align workforce talent to
updated organization structure
Develop transition plan and timeline to fully staff and execute updated organization
and associated functional capability and strategy objectives
Develop and deploy a cross-functional commodity strategy and benchmarking
activities to validate business strategy and direction
Financial Reconciliation
>
>
Complete current reconciliation process to validate process feeds and financial data
Identify gaps and issues to determine if the core processes require modification >
Modify or re-engineer the reconciliation processes as required
Summary
Phase 1 has started a critical effort to improve the management of XYZ Corp.’s EMS partner
and the associated financial controls and processes. It is our opinion that developing a plan to
implement the aforementioned recommendations will significantly improve the performance of
the XYZ Corp. EMS commodity team and the supply chain organization as a whole.
The understanding and acceptance of the cross-functional participants of the critical nature and
importance of this work product to XYZ Corp.’s future is paramount. Appropriate priority
should be placed on the development and deployment of a true action plan with timely
performance measurement to the plan. Based upon our observations, we recommend that the
plan be extremely formal with ties to both individual and team performance measurement and
review.
Setting an objective of developing a Best-of-Breed organization and functional capability, as
benchmarked against other top companies, would provide the required motivation for the
organization.
Page 27 of 27