The document summarizes Felipe B. Flores' supply chain management internship final presentation. It includes an agenda, background on Felipe, a description of the project to develop a tool to prioritize capabilities for Cummins' supply chain transformation, and a demonstration of the tool. The tool helps determine the optimal sequence of adopting capabilities by analyzing dependencies and allows scheduling based on existing capabilities or prioritized initiatives like ERP. The presentation recommends using the tool to guide capability adoption schedules and highlights lessons learned.

1. Felipe B. Flores
Supply Chain Management Intern
FINAL PRESENTATION
July 2015

2. Agenda
2
About me
Educational and professional background
Project background
Project and demonstration
Recommendation and lessons learned
Acknowledgements

3. About me
3
Born in Brazil Married in 2009 Son born in 2013 Drummer

4. Educational and Professional Background
4
2009 2010 2011 2012 2013 2014 2015
IT Operations
MBA Purdue
Business Management
Course
IT – Software Engineer
And Consultant
BS Computer Science
Cummins
07/28/2015
BrazilUS

5. Overview - Build capabilities to drive SCT
5
Initiative Capability Enabler
1 2 3
Desired state, strategy,
or business
requirement…
Ability of the business to
demonstrate people,
processes and tool
skills to reach a desired
state…
Resources (forces -
competitive advantage,
tools) that contribute to
the success of a
capability…
Build Global Enterprise
Planning & Centralized
Demand Planning
SBP, FPC… Demand review
process…
e.g.
Five key themes and twelve foundational/transformational Initiatives develop to
deliver Cummins vision

6. No standard prioritization process exists
 Which initiatives and capabilities provide the most value to the
business?
 What is the process that can make the capability adoption faster?
 How to define a proper adoption schedule without knowing the
interdependencies between capabilities?
6
Scenarios
 What is the most efficient and effective path to complete the SCT
journey?
 The ERP initiative has been prioritized, therefore what capabilities
are needed before launch ERP?
 If a BU already has SBP and FPC fully capable, how does that
change the remaining adoption schedule?

7. Project description
 Assemble “all” SC capabilities and enablers
necessary to drive CBU SC transformation journey
 Associate required successors/predecessors for
each capability
 Design a process to define the optimal SCT
capability adoption plan (a) governed by
interdependencies between capabilities (b)
governed by ERP prioritization
7

8. Project steps
8
1 Learning from business leaders
2Data gathering
3 Finding interdependencies
4Developing model

9. Project steps – Learning from business leaders
9
• Integrate common supply chain processes, information and
systems across the company with the target of delivering 90%
common processes at 30% less cost than today
• Connections: Kieron Dabbs, Carrie Vawter
ERP
• Cross functional agreement on demand and supply,
improvement on key metrics, support decision making
• Connections: Crystal Lee, Steve Fritchley, Blaine Carpenter,
Malcolm Bennet, Damon J. Newby
FPC/SBP
• Operations FE, Purchasing FE, Materials FE
• Connections: Tomos Peters, Ravi Alluri, Ana Gomez, Warren
Duffet, Christopher NordykeFE
• Business Wide HSE Management and Control Systems,
Training, and Performance Tracking
• Connection: Guillermo CastilloHSE
• CSCM, CTS Analytics, Flexible manufacturing, CMES, BOLT
• Connections: Yang Zhang, Cara Chitwood, Beverly J Bott,
Jason Good, David A Gill, Fiona HunterOthers

10. 10
Project steps – Data gathering

11. Project steps – Finding interdependencies
11
Business Leaders
ERP workshop

12. HSE – Health and Safety Environment
SBP – Synchronized Business Process
FPC – Foundation of Planning and Control
Flex – Flexibility
ERP – Enterprise Resource Planning
GEP – Global Enterprise Planning
MBOM – Manufacturing Bill of Material
Note: This picture represents an example of relationship. It may not represent a real dependency since initiatives were disaggregated in a deeper level of capabilities.
HSE
SBP
FPC
ERP
MBOM
GEP
Flex
• Some capabilities are
developed in parallel while
others are in series
• Some enablers enable
multiple capabilities
• Some capabilities enable
other capabilities
• Some capabilities enable
multi other capabilities
Project steps – Finding interdependencies

13. Project steps – Developing a model
Algorithm defined to…
 Compare capabilities
within each SCT
initiative to define
interdependencies
 Identify sequence of
adoption which
enables subsequent
capabilities to be
adopted fastest
 Display the sequence
of prioritized events
13
1- Calculate Predecessors,
Successors, and SCORE
2- Gather capabilities with 0
Predecessors
3- Select the capabilities with the
highest SCORE
4- Sort the capabilities
5- Prioritize the capability
6- Start on Step 1 again
SCORE is the total number of capabilities
enabled until the end of a path
CPT – Capability Prioritization Tool

14. CBU SCT Adoption Schedule
14
• Schedules currently defined by each BU may not fully reflect the
interdependencies of capabilities within each SCT initiative
• Considered the problem from 3 perspectives;
1. An adoption schedule defined by the interdependencies between capabilities
2. An adoption schedule defined by a requirement to deliver a specific initiative (e.g. ERP)
3. An adoption schedule defined by existing, already established, SCT capabilities
• Without leveraging interdependencies of
capabilities between SCT initiatives a sub-
optimal transformation schedule is likely

15. CPT, detailed tool objectives
15
1- SCT optimal sequence 2- Initiative prioritized sequence 3- Sequence by existing capability
 Sequence for the entire
SCT governed entirely by
interdependencies
between capabilities
 Ensure the most efficient
and effective adoption of
all SCT capabilities
 Sequence of SCT
capability adoption to
ensure a specific initiative
is prioritized (e.g. ERP)
 Represents a constrained
capability adoption
prioritization
 For example, assume FPC
and SBP are fully capable in
BU
 New SCT capability adoption
schedule defined based
upon already established
SCT capabilities
Unconstrained adoption schedule
Adoption schedule assuming
prioritization of ERP
Adoption schedule assuming established
capability in one or more SCT initiatives

16. User interface
16
The tool…

17. Manual
17

18. 18
Third priority capabilities
Second priority capabilities
First priority capabilities
1- What is the most efficient and effective path to
complete the SCT?

19. 19
 When analyzing the
most efficient and
effective path to
complete the SCT it
is possible to check
the dependencies
and prioritize a
specific capability

20. 2- The ERP initiative has been prioritized, therefore
what capabilities do I need before I launch ERP?
20

21. 3- If a BU already has SBP and FPC fully capable,
how does that change the remaining adoption
schedule?
21

22. Demonstration
22

23. Project benefits
 Leverages synergies between capabilities
 Accelerates the adoption, prioritizing the capabilities
that have the most number of successors
 Provides a standardized process for the BUs to
define an adoption sequence
 Allows more mature BUs to know where they are on
the journey
 Provides a risk assessment 23

24. Recommendation and lessons learned
 Base the adoption schedules on the Capability
Prioritization Tool
 SC leaders to review the interdependencies and re-
run the tool often
 Workshops (e.g. ERP) are important to gather
different views from functional leaders and establish
stronger interdependencies
 The path provided by this tool is not definitive
24

25. Future projects
 Once BUs are more mature, evaluate the
implementation of different variables to the
capabilities (e.g. Time to complete a certain
capability, apply a weight for each capability, put a $
value for each one)
 Access Data Base & MS Project
 Implement a control to check how much of the
journey was completed in each point in time
25

26. Internship experience
 Cummins core values
 SCM and strategy knowledge
 Diverse project teams
 Different events and courses
 People
26

27. Acknowledgements
 Kim Britton
 Rachita Pandey
 Sumit Savani
 Sharanya Krishnamurthi
 Kieron Dabbs
 Special thanks:
– Lianne Foo
– Felipe B Rocha
– Malcolm E Bennet
– Blaine Carpenter
– Steve Fritchley
– Damon J. Newby
– Joanne Gwilliam
27
– Guillermo Castillo
– Polly Mcvey
– Christopher Nordyke
– Jim Gruwell
– Russell L Isaac
– Sameer Borwankar
– Matt T McQueen
– Erika Murguia
– Fiona Hunter
– Warren L Duffet
– David A Gill
– Carrie A Vawter
– Crystal Lee
– Abigail Lessnau
– Tomos G Peters
– Jason Good
– Cara Chitwood
– Yang Zhang
– James K Gruwell
– Ana M Gomez
– Ravi S Alluri

28. Questions
28

29. Supply Chain Transformation Journey
Five key themes and twelve foundational/transformational Initiatives develop to
deliver Cummins vision
Cummins Confidential
29
Improve Speed and Flexibility
• Elevate Materials Planning Capability
• Create Flexible Manufacturing Networks
Optimized for Throughput
• Build Global Enterprise Planning and
Centralize Demand Planning
• Create Responsiveness with End-to End
Supply Chain Visibility
Manage Product Complexity Through
Postponed Differentiation
• Develop Product Differentiation Approach
Develop Functional Excellence
• Develop Our People to Create Supply Chain
Expertise
Improve Customer Service
• Select and Manage Suppliers to Enable
Market-Focused Supply Chains
• Use Simulation and Analytics in Supply
Chain Design
• Develop Cost-to-Serve Models for Each
Supply Chain
• Use Common Supply Chain Models Across
Our Businesses
Improve Logistics Networks and Capacity
• Optimize Transportation, Freight and Duty
• Synchronize Warehousing Activities –
Inbound and Outbound
Transformational
Foundational

30. Process followed until now
30
12 Strategies
Capabilities defined
by Corp Leaders
1 to 1 Reviews with
SC LT of each CBU
Do capabilities make
sense & add-value?
Are there any missing
capabilities?
When are we going
to be capable?
Feedback to Corp
Strategy Leaders
Track Adoption
Defining “when” without
a prioritization process?
What can guide us
through the adoption
schedule?