Allied Bakeries Implementing Corporate Performance Management

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Allied Bakeries Allied Bakeries Implementing Corporate Implementing Corporate Performance Management Performance Management

description

Allied Bakeries Implementing Corporate Performance Management. The Company. T/o 440m 4500 staff 10 Manufacturing Units Shared Service Centre Business Centre Parent Company “Associated British Foods” Recent growth strategy. Business Challenges. Key Strategic Drivers - PowerPoint PPT Presentation

Transcript of Allied Bakeries Implementing Corporate Performance Management

Page 1: Allied Bakeries Implementing Corporate Performance Management

Allied Bakeries Allied Bakeries Implementing Corporate Implementing Corporate Performance ManagementPerformance Management

Page 2: Allied Bakeries Implementing Corporate Performance Management

The CompanyThe Company

• T/o 440m• 4500 staff• 10 Manufacturing Units• Shared Service Centre• Business Centre• Parent Company “Associated British Foods”

• Recent growth strategy

Page 3: Allied Bakeries Implementing Corporate Performance Management

Business ChallengesBusiness Challenges

• Key Strategic Drivers• Focus on Brand Value and Volume Growth• Customer and channel focus

• Business transformation• Measure plans v performance, • Analysis of current & future strategies, • Innovation/new business

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Business Intelligence - Business Intelligence - ClassificationClassification

Type of Intelligence

Strategic Tactical Operational

Who in the organisation

Directors /Strategists

Senior ManagerAnalytics

Senior ManagersOperations

Type of Information

HistoricKPI’s

Historic Real-time

Timescale Long term Weeks, periods, qtrs

Days

Page 5: Allied Bakeries Implementing Corporate Performance Management

Business IntelligenceBusiness Intelligence

• Operational BI• Customer Service

• Organisational Growth• Business Planning

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Approach - Success MapApproach - Success Map

FinancialPerspective

ReduceWastage

ImproveRevenue

Mix

ImproveOperatingEfficiency

CustomerPerspective

BroadenProductRange

On timeIn Full

Delivery

InternalPerspective

NPDX Sell

ProductsImprove

InventoryProcessReview

LearningPerspective

EducateSalesforce

Ideas fromEmployees

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Approach – Work streamsApproach – Work streams

Customer Service & Business Planning

Corporate Performance Management

Review of KPI’s

Master data

Technology

Page 8: Allied Bakeries Implementing Corporate Performance Management

Business IntelligenceBusiness Intelligence

• Operational BI• Customer Service

• Organisational Growth• Business Planning

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GoalsGoals

• To implement a full BI infrastructure on the Microsoft platform.

• Knowledge transfer with the Allied Bakeries development team.

• Improve the reporting and analytical capabilities of the Allied Bakeries Customer Services team.

• Integrate with other Allied Bakeries strategies (SBV, Core)

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Pilot Project TeamPilot Project Team

• Whole team exposed to all components of the project delivery but have concentrated on specific areas.

• ETL Team• Report Development• OLAP Development• Data Modeller

Page 11: Allied Bakeries Implementing Corporate Performance Management

SWOT Analysis -Oracle

Strength

Investment in LicenseSkills in Business CentreRDB/Oracle/OSA/OFAPeopleSoftProven Capability

Threat

Loose Commercial advantageWe may be too smallLock-in

Opportunities

Continuity & smooth migrationPotential for integrationStable & long termRelationship with vendor

Weakness

Skills in SSCCost of MigrationMergers & Acquisition

Page 12: Allied Bakeries Implementing Corporate Performance Management

SWOT Analysis Microsoft

Strength

SkillsCost – (free components)R & DBI CommitmentIntegration with current appsMore 3rd party SQL usage

Threat

One vendorImmature technology

Opportunities

Standard integrationQuicker to deployRelationship with SAP

Weakness

Migration of Oracle applicationsInfluence on vendorDelays in release of 2005 productNews version require support/training

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Local Orders

Central orders

Daily Shortages

Legacy Reports (7013)

Individual site reports (18)Spreadsheet

Reason Codes

Central Team manual

Spreadsheet Consolidation

Validation Process

E.g. all bakeries submitted on

time

Daily Shortage Reports

Access Database

Customer Service Report

Daily Interim & Final Report

Site Reports + others

Current Daily Reporting Process

Manual Process

Central shortages

IT Systems

Page 14: Allied Bakeries Implementing Corporate Performance Management

New ArchitectureNew Architecture

User Interface

User Interface

Best of Breed

Best of Breed

Master Data

Legacy

Legacy

12hrs

12hrs

12hrs

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New ArchitectureNew Architecture

User Interface

User Interface

Best of Breed

Best of Breed

Master Data

Legacy

LegacyStagingServer

SQL2005

DataWarehouseSQL2005

SQL ServerIntegration Services

12hrs

12hrs

12hrs

Loosely CoupledInfrastructure

Page 16: Allied Bakeries Implementing Corporate Performance Management

New ArchitectureNew Architecture

MicrosoftReportingServices

User Interface

User Interface

Best of Breed

Best of Breed

Master Data

Legacy

LegacyStagingServer

SQL2005

DataWarehouseSQL2005

SQL ServerIntegration Services

12hrs

12hrs

12hrs

MicrosoftBalance

Scorecard

MicrosoftAnalysisServices

Presentation Layer

Loosely CoupledInfrastructure

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Reuse of Dimensional ModelReuse of Dimensional Model

Date

Branch

Customer

ReasonOrder Type

To Date

Time seriesProduct

Fact

New

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Reuse of Dimensional ModelReuse of Dimensional Model

Date

Branch

Customer

ReasonOrder Type

To Date

Time seriesProduct

Fact

Re-Use

New

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Semantic LayerSemantic Layer

• custom report functionality to users, Simple models, Reports can be saved

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Static ReportingStatic Reporting

• Static reporting, Deployed to the Report Server, Standardisation of reports

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Summary of Key Design Summary of Key Design FeaturesFeatures

• Architecture based on loose coupling to minimise the impact of system changes outside of the BI infrastructure.

• ETL process designed to maintain history of all master data within staging database.

• Cube with a number of measure groups, customer services focused including time based analytical functionality.

Page 22: Allied Bakeries Implementing Corporate Performance Management

Business IntelligenceBusiness Intelligence

• Operational BI• Customer Service

• Organisational Growth• Business Planning

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Objective & ScopeObjective & Scope

• Propose a replacement system for:• Planning/Budgeting/Forecasting• Event Management• Balance Scorecard• Dashboard

• Scope• Finance• Commercial• Marketing

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Opportunity AnalysisMeasure variances against budget/i.e.

forecast planning model

Review additional

promotions

operations commitment

spare capacity

lack of capacity

rolling weekly/period/quarterly sales forecast (by

SKU)(vol+price+mgn)

Full P & L by budgeted stds

Revise promotional plan against

CompetitorActivityReview success of Promotions History

Weekly:Assumptions & Understanding

Base Level VolumeEffect of NPD

launchesDistribution Changes

Listings & De-listings

Price ChangesCapacity Limits

Losses, commercial,

operations, bakery waste &

unaccounted.History = prior yr, current yr, 2 year

outturn.

Agree promotion timing with customers

depending on status

review &4 wkly sign off

Rolling Weekly Sales Forecast(vol+price+margin)

aggregated by KPI figures for each NAM

Analysis of forecastpromotional spend vs f'cast

volume

aggregation by NAM territory/plan fascia

rolling weekly sales forecast (by SKU)(vol+price+margin)

Reformat for interface to production planning

production planning system

Material usage requirements

PRODUCTION PLANNING PROCESS

2/4-weekly forecast by product by

day

12 weekly forecast by product by branch by

week

KPI PROCESS

ALLIED BAKERIES FORECASTING PROCESS

Budget

4 wkly forecast

Capacity Planning

Model

Quarterly/latest

Re-forecast

Multiple snapshots/scenarios

situation if limitied capacity

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Scoring & Functionality Scoring & Functionality “extract” “extract” Overall RankingsOverall Rankings

Ranking Vendor A Vendor B Vendor C Vendor D Vendor E

Cost £ 3 4 5 6 8

Functionality fit          

Business Planning 1 1 1 1 1

PRICING 1 1 1 1 1

Data Validation and Audit 1 1 1 1 1

FORECAST/EVENTS PROCESSING 1 1 1 1 1

Number of modules required 6 1 7 1 8

Fit with other applications 1 1 1 1 1

Fit with infrastructure 1 1 1 1 1

Skills fit 2 2 2 2 1

total 39 31 31 31 31

Rank 5 1 1 1 1

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General System Requirements

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Budge

ts &

Budg

etry C

ontro

l

Foreca

st/Eve

nts Pro

cess

ing

Pricing

Profit

& L

oss S

umm

ary

Scena

rio W

hat if

Ana

lysis

Alloca

tions

Statis

tics &

Tre

nding

Busine

ss T

rends

Scalab

ility

Vendor A

Vendor B

Vendor C

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Summary MatrixSummary Matrix

Vendor A Vendor B Vendor C

Functionality 1 2 3

5 Yr Cost Summary

2 3 1

Future Development/ integration

2 1 3

Stability / Risk * 2 1 3

Implementation speed / support *

2 1 3

Total 9 8 15

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Summary of ProcessSummary of Process

Dem

on

stration

/Costs/IT

Fit

Scores

Weighting

Functionality

RF

I

Make S

election &A

pprove Funding

Reference S

ite

Requirem

entsG

athering

Current process is at this stage

Re-run of this stage for new Project Sponsors

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RisksRisks

• Implementing • technology not available• commitment• resources

• Not Implementing• No infrastructure to move legacy applications• Constraints on the availability of information• Unable to monitor business performance

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SummarySummary

• Quick to be deploy• Ongoing Value • Faster end user adoption