Strategic Supply Chain Management : The use of Metrics To Drive Business Success from “The 5 Discipline For Top Performance in Strategic Supply Chain Management"

1. USE METRICS TO DRIVE
BUSINESS SUCCESS
*Source : Strategic SCM Book “The 5 Discipline For Top Performance”, Shoshanah Cohen
• Yoga Irsyadillah Nusantara 163011900001
• Refina Damayanti 163011900003
Dosen : Dr. Dadang Surjasa, S.Si, MT
Program Studi Magister Teknik Industri
Fakultas Teknologi Industri
Universitas Trisakti
Mata Kuliah Manajemen Rantai Pasok
(2020)

2. What is Metrics? Background Managing PM
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Targeted Metrics
KEEP YOUR
COMPANY
ON TRACK
IDENTIFYING
SUITABLE
METRICS
Most people agree with the adage, “If you can’t
measure it, you can’t fix it.” Yet few metrics programs
actually provide a clear picture of overall performance,
pinpoint the root of performance problems, or identify
improvement opportunities.

3. What Is Metrics?
03
Human
Resources
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OVERTIME
HOURS
Marketing
CPA
(Cost/Acquisition)
Logistics
TRANSPORTATION
COST

4. Presentation Flow
04
Why We Need
To Measure
using metrics? Which Metrics?
Managing
Performance
Using Metrics
Study Case
Q & A Session
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Targeted Metrics

5. Presentation Flow
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Why We Need To Measure using metrics?
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Untuk suatu proses awal (permulaan), set metrik yang tepat dapat memberi
informasi seberapa baik perencanaan, sumber, proses, pengiriman, dan
pengembalian proses rantai pasokan berkinerja. Hal tersebut digunakan
untuk perbaikan dan mendiagnosis masalah dan memustuskan dimana
harus memfokuskan upaya peningkatan.

6. Presentation Flow
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Why We Need To Measure using metrics?
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Targeted Metrics
Pengukuran merupakan satu-satunya cara untuk mengerti apakah kinerja
proses sedang membaik atau memburuk dan tindakan apa yang diperlukan.
Proses measurement tersebut akan berlangsung efektif apabila mencakup
tiga aktivitas berikut :
◆ Integrasi target kuantitatif ke dalam rencana manajerial dan anggaran.
◆ Menetapkan target individu dan departemen yang diintegrasikan ke visi
perusahaan secara komprehensif.
◆ Membentuk dan menetapkan mekanisme dan flow process dengan baik
untuk pengelolaan dan perbaikan kinerja.

7. Peformance Management
07
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Targeted Metrics
Managing Performance Using metrics ?
1. Menghubungkan Metrics ke Strategi Bisnis Perusahaan
2. Memastikan Metrics yang digunakan Seimbang dan Komprehensif
3. Menargetkan Kinerja Dasar pada Metrics Internal dan Eksternal
4. Menetapkan Aggresive Target yang dapat Dicapai dan mengaitkannya
untuk menyusun rangkaian tindakan
5. Menggunakan Metrics yang mudah diukur dan dimonitor pada Semua
Level perusahaan
6. Menggunakan Metrics untuk Mengatur dan menjalankan Continuous
Improvement
7. Mengembangkan Rencana Implementasi

8. 1. Menghubungkan Metrics ke Strategi Bisnis Perusahaan
Peformance Management
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Targeted Metrics
start with your company’s strategic goals and work backward to identify the supply chain performance
metrics that support those goals.

9. Peformance Management
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2. Memastikan Metrics yang digunakan Seimbang dan Komprehensif
An effective metrics program must include a balance of :
 Internally focused and customer-facing metrics
 Financial and nonfinancial metrics
 Functional and cross-functional metrics
 Metrics designed to measure innovation and continuous improvement
As you begin to structure your performance-management program, consider
including metrics that align with the four dimensions of the well- known balanced
scorecard approach :
• The financial dimension, includes metrics such as cost of goods sold, labor rates,
transportation cost per mile, value-added pro- ductivity, and asset turns. As we
noted earlier, financial metrics are relatively easy to measure but don’t provide a
complete picture of how well your supply chain is performing.
• The internal dimension includes metrics such as forecast accuracy, production
quality, production flexibility, and internal cycle times. These metrics assess
operational performance but are not tied to specific financial results.

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2. Memastikan Metrics yang digunakan Seimbang dan Komprehensif
• The customer dimension includes metrics such as on-time delivery to commitment,
order-fulfillment cycle time, fill rates, and perfect order fulfillment. Customer-
oriented metrics are designed to show how your company performs from the
customer’s perspective.
• The innovation and learning dimension is the most difficult to define because
metrics in this area quantify your company’s effec- tiveness at learning new skills.
Setting goals for employees who are APICS-certified or have completed Six Sigma
training is an excellent way to establish meaningful metrics for this dimension.
How often should metrics be monitored? This depends on the life cycle or clock
speed of your business, but monthly reporting is fine for most top-level metrics.
This usually allows you to spot trends before they become problems and avoids over
reporting with little value. Detailed operational metrics should be monitored and
reported at least weekly, if not daily. Often these are key customer-facing metrics
such as fill rate or on time delivery performance.

11. Peformance Management
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3. Menargetkan Kinerja Dasar pada Metrics Internal dan Eksternal
Benchmarking, both internal and external can
provide valuable data for improving supply chain
performance and has two main benefits. First,
external comparisons place your performance in an
industry context, which helps to identify supply
chain improvement opportunities. And second,
internal benchmarking helps you to identify which of
your business units, regions, or locations are the
best performers.
*BASF Corporation used a combination of internal and external benchmarking to drive process improvements throughout its operations. The
BASF Group, headquartered in Ludwigshafen, Germany, is one of the world leaders in the chemical industry, with more than 160
subsidiaries and affiliates.

12. Peformance Management
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4. Menetapkan Aggresive Target yang dapat Dicapai dan mengaitkannya untuk menyusun rangkaian tindakan
If you plan to use metrics to determine how your supply
chain is performing, you must set a target for each metric. Only a
target gives you a basis for tracking whether performance is
improving, holding steady, or getting worse. Don’t aim to be best at
everything, no company can excel at every key metric. Unattainable
goals are more likely to result in behaviors that disrupt rather than
enhance a company’s performance. Instead, start by agreeing on
your overall strategic objectives, and acknowledge that previous
targets may not align with those objectives.

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5. Menggunakan Metrics yang mudah diukur dan dimonitor pada Semua Level perusahaan
You’ve probably experienced a performance management program that got off to a great start and
then failed. The most common reason for failure is a lack of attention paid to the program once it’s
off and running. Consistent measuring and reporting will help you to avoid this problem. shows clearly
the need for demonstrated commitment by leaders within your business. Identify a set of “metrics
champions” early on and work closely with them to secure their commitment. They will serve as the
advocates for performance management. To take their role seriously, they will need to actively monitor
relevant metrics and take immediate action if the program is not being executed as designed.
You also should define the decision-making processes and work- flows resulting from the
metrics program. Measurements are only useful to the degree that they enable timely decision
making. All too often action stops at the point at which the measurement is made. Successful
performance management must include specific actions to be taken when a measurement falls outside
a defined tolerance level. Processes and workflows should show which decisions are to be made, by
whom, and within which limits.

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Targeted Metrics
6. Menggunakan Metrics untuk Mengatur dan menjalankan Continuous Improvement
Gathering comprehensive benchmarking data takes time and
effort. And since most benchmarking services charge a fee for
participation and database access, there’s usually an out-of-pocket
cost as well. Logic would say that any company willing to make this
sort of investment would highly value the resulting information and
make every effort to leverage it. Yet, a recent survey of hundreds of
companies found that few had used their supply- chain metrics to
drive strategic management practices, and most had failed to realize
a full return on investment from their benchmarking efforts.4 This is
true of many companies. Too often they review the benchmarking
information but don’t use it to move the company forward. Over time,
the data collection effort no longer may seem worth the benefits
achieved.

15. Peformance Management
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7. Mengembangkan Rencana Implementasi

16. WHY MEASURE?
MANAGING
PERFORMANCE WITH
METRICS
WHICH METRICS
CASE IN POINT:
PERFORMANCE
MANAGEMENT AT 3COM
NEXT-GENERATION
PERFORMANCE
MANAGEMENT
Terdapat 4 langkah utama dalam menempatkan Program
Manajemen Kerja:
1. Tetapkan tujuan strategi rantai pasokan. Mulai
dengan perusahaan Anda strategi bisnis, dan
kemudian mengembangkan tujuan rantai pasokan itu
dukung strategi ini.
2. Pilih metrik dan target pendukung. Identifikasi spesifik
metrik dan target yang akan Anda gunakan untuk
melacak tujuan kemajuan rantai pasokan.
3. Identifikasi inisiatif pendukung. Kembangkan
peningkatan kinerja program untuk membantu
memenuhi tujuan rantai pasokan.
4. Melaksanakan program. Kumpulkan data dan
kembangkan alat untuk meninjau data dan untuk
mendukung pengambilan keputusan.
Mengembangkan Rencana Implementasi

17. WHY MEASURE?
MANAGING
PERFORMANCE WITH
METRICS
WHICH METRICS
CASE IN POINT:
PERFORMANCE
MANAGEMENT AT 3COM
NEXT-GENERATION
PERFORMANCE
MANAGEMENT
Karena rantai pasokan strategi didasarkan pada
keseluruhan arahan strategis perusahaan dan inti
kompetensi, Anda akan perlu memilih dengan hati-hati
metrik itu masuksebagai sinyal dari kinerja untuk tujuan
Anda .
Fokus Metrik dalam Menyelesaikan Maslah Kinerja
Karakteristik Rantai Pasok Metrik
Fokus Fungsional Kinerja fungsi atau departemen
tertentu
Fokus Proses Kinerja proses di dalam atau di
luat area fungsional tertentu
Fokus Perusahaan Kinerja Proses lintas fungsi
Fokus lintas Perusahaan Kinerja proses lintas-
perusahaan dan proses
eksternal yang ditentukan

18. WHY MEASURE?
MANAGING
PERFORMANCE WITH
METRICS
WHICH METRICS
CASE IN POINT:
PERFORMANCE
MANAGEMENT AT 3COM
NEXT-GENERATION
PERFORMANCE
MANAGEMENT
Memilih Metrik yang Mendukung Strategi
Metrik level 1 SCOR mencakup fokus langkah-
langkah secara internal (total biaya manajemen
rantai pasokan, produktivitas bernilai tambah,
garansi / pengembalian biaya pemrosesan, waktu
siklus, waktu persediaan pasokan, dan perputaran
aset) dan metrik yang dihadapi pelanggan (kinerja
pengiriman, pemenuhan pesanan, lead time
pemenuhan pesanan, waktu respons rantai
pasokan, dan fleksibilitas produksi)

19. WHY MEASURE?
MANAGING
PERFORMANCE WITH
METRICS
WHICH METRICS
CASE IN POINT:
PERFORMANCE
MANAGEMENT AT 3COM
NEXT-GENERATION
PERFORMANCE
MANAGEMENT
Memilih Metrik yang Mendukung Strategi

20. WHY MEASURE?
MANAGING
PERFORMANCE WITH
METRICS
WHICH METRICS
CASE IN POINT:
PERFORMANCE
MANAGEMENT AT 3COM
NEXT-GENERATION
PERFORMANCE
MANAGEMENT
Manajemen Kinerja di 3COM
3Com berharap dapat mengembangkan infrastruktur yang akan
memungkinkan para pemimpin memiliki fungsi masing-masing untuk
:
• Mensejajarkan kegiatan dan prioritas organisasi dengan
keseluruhan tujuan perusahaan
• Memantau indikator kinerja utama
• Memberikan informasi yang tepat waktu untuk pengambilan
keputusan yang lebih baik dan responsif

21. WHY MEASURE?
MANAGING
PERFORMANCE WITH
METRICS
WHICH METRICS
CASE IN POINT:
PERFORMANCE
MANAGEMENT AT 3COM
NEXT-GENERATION
PERFORMANCE
MANAGEMENT
Manajemen Kinerja di 3COM

22. WHY MEASURE?
MANAGING
PERFORMANCE WITH
METRICS
WHICH METRICS
CASE IN POINT:
PERFORMANCE
MANAGEMENT AT 3COM
NEXT-GENERATION
PERFORMANCE
MANAGEMENT
Manajemen Kinerja di 3COM

23. WHY MEASURE?
MANAGING
PERFORMANCE WITH
METRICS
WHICH METRICS
CASE IN POINT:
PERFORMANCE
MANAGEMENT AT 3COM
NEXT-GENERATION
PERFORMANCE
MANAGEMENT
Manajemen Kinerja di 3COM

24. WHY MEASURE?
MANAGING
PERFORMANCE WITH
METRICS
WHICH METRICS
CASE IN POINT:
PERFORMANCE
MANAGEMENT AT 3COM
NEXT-GENERATION
PERFORMANCE
MANAGEMENT
Seperti 3Com, banyak organisasi yang bergerak sedikit demi
sedikit pendekatan manajemen kinerja dan menuju pendekatan
yang lebih holistik. Ini berarti bahwa manajemen kinerja rantai
pasokan akan menjadi bagian integral dari keseluruhan strategi
manajemen kinerja — Gartner menyebut "corporate performance
management" (CPM).
Background Managing PM
With Metrics
Study Case PM Next Gen. PM
Targeted Metrics

25. WHY MEASURE?
MANAGING
PERFORMANCE WITH
METRICS
WHICH METRICS
CASE IN POINT:
PERFORMANCE
MANAGEMENT AT 3COM
NEXT-GENERATION
PERFORMANCE
MANAGEMENT

26. WHY MEASURE?
MANAGING
PERFORMANCE WITH
METRICS
WHICH METRICS
CASE IN POINT:
PERFORMANCE
MANAGEMENT AT 3COM
NEXT-GENERATION
PERFORMANCE
MANAGEMENT

27. WHY MEASURE?
MANAGING
PERFORMANCE WITH
METRICS
WHICH METRICS
CASE IN POINT:
PERFORMANCE
MANAGEMENT AT 3COM
NEXT-GENERATION
PERFORMANCE
MANAGEMENT
Saat CPM berkembang, diharapkan terdapat beberapa
perubahan, yaitu :
• Organisasi akan menggunakan metrik dan definisi rantai
pasokan yang konsisten berdasarkan pada standar industri
seperti kartu nilai rantai pasokan PMG.
• Ketika standar ini dianut, vendor ERP akan membuat
kemampuan pemantauan dan pelaporan kinerja sebagai
bagian dasar dari solusi mereka.
• Perusahaan akan mengembangkan sistem manajemen kinerja
terintegrasi, di seluruh dunia. Rantai pasokan, CRM,
manajemen siklus hidup produk, dan strategi manajemen
kinerja fungsional lainnya akan dirancang dalam konteks
keseluruhan terintegrasi ini.
• Arsitektur untuk solusi intelijen bisnis akan didasarkan pada
pendekatan komprehensif untuk manajemen kinerja
perusahaan, di mana manajemen kinerja rantai pasokan akan
menjadi elemen kunci.
Background Managing PM
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Targeted Metrics

28. WHY MEASURE?
MANAGING
PERFORMANCE WITH
METRICS
WHICH METRICS
CASE IN POINT:
PERFORMANCE
MANAGEMENT AT 3COM
NEXT-GENERATION
PERFORMANCE
MANAGEMENT
Saat CPM berkembang, diharapkan terdapat beberapa
perubahan, yaitu :
• Sistem manajemen acara — yang memantau acara bisnis
secara real time dan memberi tahu pengguna pengecualian
dan peringatan — akan menjadi semakin lazim,
memungkinkan perusahaan untuk bereaksi lebih cepat
terhadap perubahan di pasar.
• Perusahaan akan melihat konsensus yang berkembang
tentang seberapa sering metrik utama harus dipantau.
Pelaporan waktu nyata akan dicadangkan untuk proses waktu
nyata.
• "Dasbor" akan diganti oleh alat dengan fungsi yang lebih
besar. Alat-alat ini akan memungkinkan pengambilan
keputusan berdasarkan kondisi bisnis saat ini.
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Targeted Metrics

29. ANY QUESTION ?
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Targeted Metrics