This document discusses building a 21st century supply chain organization through the Capability Maturity Model Integration (CMMI). It evaluates current processes, compares to CMMI, and identifies gaps. The vision is to exceed customer requirements through disciplined people and processes leveraging technology. CMMI will improve supplier management, increase predictability, and reduce risk. The strategy focuses on people through training and development, processes through metrics and standardization, and systems like web portals and data sharing. Institutionalizing processes through continuous improvement is key to success.
This presentation was created and used by me for my workshop “Strategic COPIS – designing business processes from the Customer’s angle” at ASQ’s World Conference on Quality and Improvement, Milwaukee, WI, USA; May 16-18, 2016. The presentation may be re-used with proper acknowledgement. I will be happy to help any organization by facilitating a similar workshop for them or help them to implement Strategic COPIS.
Want to present your company’s supply chain management review report? Not finding suitable PPT templates for the same. No worries! We are here to help you out. Download our professionally designed supply chain management review PowerPoint presentation slides that will help you in explaining the various aspects of supply chain management. This supply chain analysis PPT presentation includes a slide on introduction, supply chain management process, SCM decision phases, strategic sourcing process, logistics & IT, planning & forecasting, inventory management, inventory management models, performance measures, a common problem with SCM, components of supply chain etc., which will help you leave an impact on your audience. Our research team has researched for the content and our graphics designers have converted it into an impressive presentation. This order fulfilment presentation PPT is suitable for topics like raw-material management, inventory management, supply chain logistics flow, material management, circular supply chain management, goods, and services flow etc. Download our supply chain management review PowerPoint presentation and accomplish your end goals. Want to present your company’s supply chain management review report? Not finding suitable PPT templates for the same. No worries! We are here to help you out. Download our professionally designed supply chain management review PowerPoint presentation slides that will help you in explaining the various aspects of supply chain management. This supply chain analysis PPT presentation includes a slide on introduction, supply chain management process, SCM decision phases, strategic sourcing process, logistics & IT, planning & forecasting, inventory management, inventory management models, performance measures, a common problem with SCM, components of supply chain etc., which will help you leave an impact on your audience. Our research team has researched for the content and our graphics designers have converted it into an impressive presentation. This order fulfilment presentation PPT is suitable for topics like raw-material management, inventory management, supply chain logistics flow, material management, circular supply chain management, goods, and services flow etc. Download our supply chain management review PowerPoint presentation and accomplish your end goals. Camaraderie comes alive due to our Supply Chain Management Review Powerpoint Presentation Slides. Friendly feelings get expressed.
"You can download this product from SlideTeam.net"
Want to present your company’s supply chain management review report? Not finding suitable PPT templates for the same. No worries! We are here to help you out. Download our professionally designed supply chain management review PowerPoint presentation slides that will help you in explaining the various aspects of supply chain management. This supply chain analysis PPT presentation includes a slide on introduction, supply chain management process, SCM decision phases, strategic sourcing process, logistics & IT, planning & forecasting, inventory management, inventory management models, performance measures, a common problem with SCM, components of supply chain etc., which will help you leave an impact on your audience. Our research team has researched for the content and our graphics designers have converted it into an impressive presentation. This order fulfilment presentation PPT is suitable for topics like raw-material management, inventory management, supply chain logistics flow, material management, circular supply chain management, goods, and services flow etc. Download our supply chain management review PowerPoint presentation and accomplish your end goals. Want to present your company’s supply chain management review report? Not finding suitable PPT templates for the same. No worries! We are here to help you out. Download our professionally designed supply chain management review PowerPoint presentation slides that will help you in explaining the various aspects of supply chain management. This supply chain analysis PPT presentation includes a slide on introduction, supply chain management process, SCM decision phases, strategic sourcing process, logistics & IT, planning & forecasting, inventory management, inventory management models, performance measures, a common problem with SCM, components of supply chain etc., which will help you leave an impact on your audience. Our research team has researched for the content and our graphics designers have converted it into an impressive presentation. This order fulfilment presentation PPT is suitable for topics like raw-material management, inventory management, supply chain logistics flow, material management, circular supply chain management, goods, and services flow etc. Download our supply chain management review PowerPoint presentation and accomplish your end goals. Camaraderie comes alive due to our Supply Chain Management Review Powerpoint Presentation Slides. Friendly feelings get expressed. https://bit.ly/3gZ8iGi
This presentation was created and used by me for my workshop “Strategic COPIS – designing business processes from the Customer’s angle” at ASQ’s World Conference on Quality and Improvement, Milwaukee, WI, USA; May 16-18, 2016. The presentation may be re-used with proper acknowledgement. I will be happy to help any organization by facilitating a similar workshop for them or help them to implement Strategic COPIS.
Want to present your company’s supply chain management review report? Not finding suitable PPT templates for the same. No worries! We are here to help you out. Download our professionally designed supply chain management review PowerPoint presentation slides that will help you in explaining the various aspects of supply chain management. This supply chain analysis PPT presentation includes a slide on introduction, supply chain management process, SCM decision phases, strategic sourcing process, logistics & IT, planning & forecasting, inventory management, inventory management models, performance measures, a common problem with SCM, components of supply chain etc., which will help you leave an impact on your audience. Our research team has researched for the content and our graphics designers have converted it into an impressive presentation. This order fulfilment presentation PPT is suitable for topics like raw-material management, inventory management, supply chain logistics flow, material management, circular supply chain management, goods, and services flow etc. Download our supply chain management review PowerPoint presentation and accomplish your end goals. Want to present your company’s supply chain management review report? Not finding suitable PPT templates for the same. No worries! We are here to help you out. Download our professionally designed supply chain management review PowerPoint presentation slides that will help you in explaining the various aspects of supply chain management. This supply chain analysis PPT presentation includes a slide on introduction, supply chain management process, SCM decision phases, strategic sourcing process, logistics & IT, planning & forecasting, inventory management, inventory management models, performance measures, a common problem with SCM, components of supply chain etc., which will help you leave an impact on your audience. Our research team has researched for the content and our graphics designers have converted it into an impressive presentation. This order fulfilment presentation PPT is suitable for topics like raw-material management, inventory management, supply chain logistics flow, material management, circular supply chain management, goods, and services flow etc. Download our supply chain management review PowerPoint presentation and accomplish your end goals. Camaraderie comes alive due to our Supply Chain Management Review Powerpoint Presentation Slides. Friendly feelings get expressed.
"You can download this product from SlideTeam.net"
Want to present your company’s supply chain management review report? Not finding suitable PPT templates for the same. No worries! We are here to help you out. Download our professionally designed supply chain management review PowerPoint presentation slides that will help you in explaining the various aspects of supply chain management. This supply chain analysis PPT presentation includes a slide on introduction, supply chain management process, SCM decision phases, strategic sourcing process, logistics & IT, planning & forecasting, inventory management, inventory management models, performance measures, a common problem with SCM, components of supply chain etc., which will help you leave an impact on your audience. Our research team has researched for the content and our graphics designers have converted it into an impressive presentation. This order fulfilment presentation PPT is suitable for topics like raw-material management, inventory management, supply chain logistics flow, material management, circular supply chain management, goods, and services flow etc. Download our supply chain management review PowerPoint presentation and accomplish your end goals. Want to present your company’s supply chain management review report? Not finding suitable PPT templates for the same. No worries! We are here to help you out. Download our professionally designed supply chain management review PowerPoint presentation slides that will help you in explaining the various aspects of supply chain management. This supply chain analysis PPT presentation includes a slide on introduction, supply chain management process, SCM decision phases, strategic sourcing process, logistics & IT, planning & forecasting, inventory management, inventory management models, performance measures, a common problem with SCM, components of supply chain etc., which will help you leave an impact on your audience. Our research team has researched for the content and our graphics designers have converted it into an impressive presentation. This order fulfilment presentation PPT is suitable for topics like raw-material management, inventory management, supply chain logistics flow, material management, circular supply chain management, goods, and services flow etc. Download our supply chain management review PowerPoint presentation and accomplish your end goals. Camaraderie comes alive due to our Supply Chain Management Review Powerpoint Presentation Slides. Friendly feelings get expressed. https://bit.ly/3gZ8iGi
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Coca-Cola Hellenic, one of the largest Coca-Cola bottlers worldwide, has started a three year long project to substitute all legacy systems with a SAP implementation called Wave 2, in order to maximize efficiencies in use of resources and apply common best practices and polices accross the group.
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CMMI_Norton.pdf
1. Building the 21st Century
Supply Chain Organization
through CMMI
John J. Norton
Raytheon Company
2. Our Approach
• Evaluate the Current Process
– Six Sigma framework
– Vision. (Frankly, what are we trying to do? Where are we
trying to go?)
• Process Development: Compare CMMI Acquisition
– Vs:
• Integrated Product Development System (IPDS)
• Policies and procedures
• Best practices
• Resultant “gap analysis”
• Build on SCM tenets of People, Process, Systems
• Institutionalize for Success
– “Fluoride in the drinking water”
3. Our Vision
• How We Are Going to Do It
– Utilize the Tenets of CMMI and Raytheon IPDS
– Exceed Customer Requirements
– World Class Personnel
– Common World Class Process and System
– Leverage the Power of the Enterprise
– Achieve and Surpass Business Unit Goals and Targets
– Ensure
• Timely Delivery
• Lowest Cost
• Highest Quality Materials, Services and Logistics
To be recognized globally by the Supply Chain
Profession as a major provider of excellence in Materials
and Logistics Management.
4. Process
Management
Project
Management
Engineering
Support
5 Optimizing Continuous
Process
Improvement
Focus on Process
Improvement
OID
CAR
Organizational Innovation and Deployment
Causal Analysis and Resolution
X
X
4 Quantitatively
Managed
Quantitatively
Management
Process Measured
and Controlled
OPP
QPM
Organizational Process Performance
Quantitative Project Management
X
X
3 Defined Process
Standardization
Process
Characterized for
the Organization
and is Proactive
RD
TS
PI
Ver
Val
OPF
OPD
OT
IPM
RSKM
DAR
IT
OEI
Requirements Development
Technical Solution
Product Integration
Verification
Validation
Organizational Process Focus
Organizational Process Definition
Organizational Training
Integrated Project Management
Risk Management
Decision Analysis and Resolution
Integrated Teaming
Organizational Environment for Integration
X
X
X
X
X
X
X
X
X
X
X
X
X
2 Managed Basic
Project
Management
Process
Characterized for
Projects and is
often Reactive
REQM
PP
PMC
MA
PPQA
CM
Requirements Management
Project Planning
Project Monitoring and Control
Measurement and Analysis
Process and Product Quality Assurance
Configuration Management
X
X
X
X
X
X
X
1 Initial Process
unpredictable,
poorly controlled
and reactive
Process Categories
Maturity Level Focus Process Areas
Characteristic
X
CMMI (A) Process Areas
SAM Supplier Agreement Management
ISM Integrated Supplier Management
5. C apability M aturity M odel Integration (C M M I) Project:____________
S upplier Selection and M onitoring Site:______________
C M M I Topics
(Bold Item s are required or expected)
Objective Evidence
Verification
TYPIC AL EXA M PLES
O bjective Evidence
SITE / PR O JEC T-
SPEC IFIC G U ID A NC E
SP 1.1 : D eterm ine w hich sources will be used to fulfill
custom er needs.
( Inform ational O nly)
Sourcing O ptions include:
(1) Purchasing off-the-shelf products or services.
(2) O btaining products or services through a contractual
agreem ent.
(3) O btaining products or services from another part of the
business enterprise (i.e., another part of the corporation,
governm ent agency, etc.)
(4) O btaining products from the custom er or end user.
(5) C om bining som e of the above (e.g., contracting for a
m odification to an off-the-shelf product or having another part
of the business enterprise co-develop products w ith an
external supplier.)
A) W P1: Outsourcing O ptions
B) W P2: List of products to be acquired.
C ) W P3: List of products for internal
developm ent.
IPDS 2.06A REF TASK O UTPU TS:
2.02.01.08 U pdate M ake/Buy Plan
4.05.01.05 M ake/Buy Analysis
4.05.01.08 Sourcing strategy for Project-
unique Parts
SE-03.02 Assessm ent Developm ent
Approach
SE-03.02.06 Assess M ake or Buy Alternative
SCM
05.04 Trade Studies
05.05 Supply Base Developm ent
10.09 M aterial Program Plan
15.01 Prelim M ake/Buy Plan
15.02 D eterm ine Initial Proc Approach
20.01Define Reqs.(Tech
M FG /Flowdown
20.02 ID C andidate Sources
SP 1.2 : Establish and m aintain agreem ent reqts for the
products being acquired.
(SBP are Inform ational O nly)
SBP1: Establish, for each item on the list of products to be
acquired, reqts to be fulfilled by the supplier.
SBP2: Review and obtain agreem ent w ith relevant
stakeholders on the reqts to be fulfilled by the supplier.
SBP3: Docum ent proposed changes to reqts.
SBP4: Review and obtain agreem ent w ith relevant
stakeholders on proposed changes.
SBP5: Revise reqts as changes are approved.
A) W P1: Perform ance param eters.
B) W P2: M ethods of verificatiion and
validation.
C ) W P3: Reqts specs and allocation m atrices.
D ) W P4: Verification and validation specs
E) Acceptance criteria.
F)
IPDS 2.06A REF TASK O UTPU TS:
2.05.01.02 M G M T C hange Activity
4.05.01.09 R equest for PO Generation
SCM
10.09 M aterial Program Plan
20.01Define Reqs.(Tech
M FG /Flowdown
20.06 Initiate R FI/RFQ
30.01Receive TD P/M FG R eqs.
30.03 Initiate/R efine R FQ
SPECIFIC G O AL SG 1: R equirem ents for Supplier Agreem ents are established and m aintained.
These reqts (w hich include technical, non-technical and verification reqts) m ight com e from the following: (1) Reqts allocated to the acquisition; (2)
O rganizational policy on supplier agreem ents; (3) Standard agreem ent provisions; (4) Project support reqts (e.g., tools and outside technical support);
(5) Total support needed for acquired products. The developm ent of supplier agreem ent reqts is an iterative process that occurs in parallel w ith
determ ining the sourcing options.
Gap Analysis
Company Team
CMMI Roadmap
PA (SSM) - Model SE/SW/IPPD/A
8. Becoming a Focused Organization
Increase
Shareholder’s
Value
Delight Our
Customers
Institutionalize
Effective
Process
Motivated, Capable,
Functionally Mature
Workforce
Grow The
Business
What Will Happen:
Personal/Personnel Objectives:
Balanced Scorecard:
What We Believe In
Core/Enduring Values:
Vision:
What We Want To Be
How We Are Going to Get There
The Dashboard Light Implementing and Focusing the
Individual & Organization
What I / What We Need To Do
Mission:
Why Do We Exist?
Strategy:
10. Why Process Improvement
through CMMI
• Customers require strong subcontract management and
processes and CMMI is their chosen assessment Model
• The framework of the Model improves SCM
organizational infrastructure and tenets of project
processes which increase predictability and reduce
program risk
• Raytheon’s strategy utilizes the CMMI model
– to access
– to improve
– to sustain
… the supply chain organizational maturation for the purposes of
meeting and exceeding customer expectations
11. People …
Building a Team Strategy
• Develop and Grow a Diverse Workforce
• Facilitate New Leadership
• Promote Cooperative Education Programs and Internships
• Mentor Professional Development Opportunities
• Provide Top Level Professional Training and Applied Learning
• Recognize Employee Achievements and Reward Them
The right people are the most important asset
12. Process …
Developing a Strategic Tool Box
• Focus on Key Subcontract Processes
• Material Performance Tracking through Metrics
• Utilization of Web Resources to Institutionalize
and Promulgate e-Learning of Process Learning
13. Process …
Developing a Strategic Tool Box
• Focus on Key Subcontract Processes
– Instituted via web based development
and training
– Fully Integrated and aligned with Integrated Product
Development Systems (IPDS) and Raytheon Six
Sigma Process (R6σ
σ
σ
σ)
– Key element of Material Program Management (MPM)
and Integrated Product Team (IPT)
• Material Performance Tracking
• Utilization of Web Resources to Institutionalize
and Promulgate e-Learning of Operations
14.
15.
16. R = Responsibility
S = Support
I = Information only
A = Authority / Accountability
17. Process …
Developing a Strategic Tool Box
• Material Performance Tracking through Metrics
– Key lynchpin of supplier process
• Best value management with discrete
quality and delivery
• Supplier rating system
– Major feed to supplier financial systems through web-based
• Fact find and cost analysis
• Budget and target development
• Estimated Cost at Completion (ECAC) reporting
• Cash and sales management (milestone/progress payments)
• Focus on Key Subcontract Processes
• Utilization of Web Resources to Institutionalize and
Promulgate e-Learning of Process Learning
19. Process …
Developing a Strategic Tool Box
• Supplier selection and surveillance
• Supplier rating system
• Standardized/common processes across the enterprise
• Interactive multidisciplinary program management resource
• Full involvement of suppliers and program management/
engineering customers
• Structured balanced scorecard approach (buyer-planner, dept., division)
• Key metric reporting: DPMO, P.O. transaction
placements, small-disadvantaged business, etc.
• Interactive compliance guidelines based on contractual requirements
• Electronic tool kit
• Utilization of Web Resources to Institutionalize and Promulgate
– Business processes
– Policy and procedure
– Subcontract status
– Operational Dashboard Reporting
– Compliance
• Focus on Key Subcontract Processes
• Material Performance Tracking
27. Institutionalization
Do We Use
10 3-inch
3-ring Binders
on the Shelf
Above Our Desk ?
OR …..
Subcontract
Status
Reporting
S
S
R
M
a
t
P
e
r
f
T
o
o
l
B
o
x
P
r
o
c
e
s
s
C
o
m
p
l
I
a
n
c
e
M
e
t
r
I
c
s
D
I
v
e
r
s
I
t
y
R
e
f
e
r
e
n
c
e
s
P
o
l
I
c
I
e
s
P
r
o
c
e
d
u
r
e
s
28. Change the Game
TO
Collaboration and Communication
Collaboration and Communication
Have Changed the Game!
Have Changed the Game!
Communication of Key
Communication of Key
Standards/Information
Standards/Information
Material
Performance
Reference &
Tool Box
Resources
Metrics
Diversity
Subcontract
Status Reporting
Process
Control
Compliance
WEB
Portal
Islands of Information
Islands of Information
Towson
MRL
Goleta
Dallas
Ft.
Wayne
Colorado
Springs
Largo/
St. Pete
McKinney
Canada
30. The Trojan Horse Project
People
Diversity
University Outreach
Professional Development
Employee Recognition
Growth Opportunities
Indirect Self-Directed e-
Learning
Process
Compliance
IPDS (Integrated Product
Development)
Best Practices
Balanced Scorecard
Material Program Mgmt
(MPM)
Six Sigma
Integrated Product Teams
(IPT)
Systems
Single Procurement
Solution
SAP/APEX
B2B
DataMart
Video IP
Telecommunication
Web Portal
31. NCS SCM Web Portal
Home Page
Access to Material
Measurement Info
Access to Material
Measurement Info Procurement and
Subcontract
Information
Procurement and
Subcontract
Information IPDS
IPDS SIX Sigma
SIX Sigma
People and
Training
People and
Training
Systems
Information
Systems
Information
Raytheon
Daily Stock
Information
Raytheon
Daily Stock
Information
Org Charts/
Personnel
Lists
Org Charts/
Personnel
Lists
What’s New !
What’s New !
MPM
MPM
V.P. Communications
Business Unit of the year
Raytheon Home Page
RTN Shared Services
32. Supplier Collaboration through
IP-Video Teleconferencing
• On demand, face-to-face
collaboration between Raytheon
and suppliers
• Allows for more frequent contact
with strategic partners without the
high cost, inconvenience and lost
productivity of travel
• Adhoc meetings easily set up to
discuss and solve critical issues
• Several sites can easily collaborate
to maximize problem solving
• High quality video/audio coupled
with real time document and
application sharing
33. Supply Chain Web Portal
Principal Benefits
• Facilitates the Deployment of IPDS CMMI Process
• Increased Productivity
• Centralized Site for SCM Activity
• Integrates with Other Systems and Provides a Single Sign-on
Capability and Security
• Enables User Friendly Access by SCM and Customers
Across the Enterprise
– Institutionalization
– Fluoridation . . . Always there doing its job
– “Four Corners” Approach
– Indirect, Self-Directed e-Learning
– Policy and Work Instruction
– Metrics and Communications
– Interactive Data Reporting and Sharing
– Functional Standard
34. Summary
• High Level Commitment
• Defined Well Written Process
• Institutionalization
– “Fluoride in the Drinking Water . . .
Always there, always working”
• Systems Must Measure Progress of the Process
CMMI . . . Always there, doing its job