APICS Presentation 2017...CSM Inc. The Collaboration FirmThe Solow Paradox The more intensive use of...

CSM Inc. ❖ TheCollaborationFirm

COLLABORATION 5.0Integrating the Collaboration System In Supply Chains

Alberto Garcia-Jurado


Some SCM Initiatives

Administrative-Financial

• Negotiating lower costs withsuppliers

• Elongate days of payables toimprove cash-to-cash cycles,RONA, and ROIC.

Technological

• “Collaborative” IT Platforms

• Data Management Integration(ISO 15926)

• Blockchains

DirectImpactonCollaboration


The Solow Paradox

ThemoreintensiveuseofIThasnotresultedinproportionalgainsinproductivity,asamatteroffacttherehasbeenaslowdownofproductivitygains:• 1939– 20002.7%peryear• 2000- 20130.9%peryear

“Theslowdown(inproductivity)wasmostnoticeableinsectorsthatproduceIToruseITintensively”

StudybytheFederalreserveofSanFranciscoledbyJohnFernald


COLLABORATION…ORJUSTMOREINFORMATION?

Video ConferencingDocument Sharing

BasecampE-mailTextingPhone

Collaboration is not IT or an App


Goingbeyondtheactivity ofcollaborationTOTHESYSTEMBEHINDIT

COLLABORATION 5.0


The Collaboration System (CS)

Technology& infrastructureNeeded to supportcollaborative processes

ProcessesThat link

individual activity

PeopleWhooperate bothprocesses andtechnology


It’s Common Sense!

It’s obvious!


The People Part of the System

+PROFESSIONAL&TEAMCULTURE

PERSONALITIESINDIVIDUALHABITS,ASSUMPTIONS&PERCEPTIONS

SAMEPROFESSION&UNIT(Sales,Engineering,etc.)DIFFERENTPROFESSION&UNITDIFFERENTGENERATIONS

+GENERATIONALCULTURE

DIFFERENTCOUNTRIES

+NATIONALCULTURE

Onion ofBarrierstoEffective

CommunicationandCollaboration

©2016ALBERTOGARCIAJURADO.ALLRIGHTSRESERVED


The meeting is at 10:00“Wewillbethereat10:00Rightontime”

It’s09:55Theyshouldbehere.Theyarelate

Cultural Assumptions


“We need this information ASAP”

By noon at the most

By this afternoon

By tomorrow morning

In one hour

Individual Assumptions


COMPANY1

COMPANY2

COMPANY3

COMPANY4

ENDUSER

Collaboration System in Supply Chains

YOUSEEASUPPLYCHAINLIKETHIS

COMPANY 1 COMPANY 2 COMPANY 3 … ETC.

COLLABORATIONFUNDAMENTALSINTHEACTUALSCLOOKSLIKE


ProcessesSome training on

individual processessuch as “teamwork”

Typical operation of the CS

Technology & infrastructureSoftware and hardwarethat facilitate informationsharing are implementedwith no consideration toimpact on/from the system.

Peoplewhooperate theprocesses,

technology and infrastructureaccording to personal criteria


Operatedbasedon“COMMONSENSE”

OperatedbasedonFORMALSOPs

Sample Process: E-Mail Operation


DOZENS of daily processesMEETINGS E-MAILS

REPORTS

PHONE CALLS

MultiplyThatby…


How are assumptions usually integrated?

Work together until everyone“gets to know each other” andassumptions become integrated.


0

10

20

30

40

50

60

70

80

90

100

Effectiveness Efficiency Alignment Improvement

46%

6% 0% 3%

Average CS Operating Profile


SC from a collaboration system perspective

CollaborationCollaboration Collaboration

Collaboration

LogisticsProvider

Original EquipmentManufacturer

Contract Manufacturers

EndClient / User

Material Management Integration

Production Process Integration

Information Management Integration (IT)

Design Process Integration

Financial Process Integration

End Product• Quality• Cost• Innovation

Delivery times

Profit margins

Competitiveness


Managethebudgetusingcommonsense?

Measureandcontrolqualityorefficiencyeverysixmonths?

Ensuretheuseofsafetyequipmentbasedoncommonsense?

Let’s See, Do we…


Formalize and standardize the collaboration system just as it is done in all the other systems


COLLABORATION 5.0Applies the lessons from Kaizen, Six Sigma and other proven models, together with the fundamentals of cultural intelligence.

To achieve lean, smart and extraordinary collaboration systems.


Kaizen Continuous improvement based on certain guiding principles: • Good processes bring good results• Go see for yourself to grasp the current situation• Speak with data, manage by facts• Take action to contain and correct root causes of problems• Work as a team• Kaizen is everybody’s business

Six Sigma a measure of quality that strives for near perfection. Six Sigma is a disciplined, data-driven approach and methodology for eliminating defects in any process – from manufacturing to transactional and from product to service. To achieve Six Sigma, a process must not produce more than 3.4 defects per million opportunities.


The Coll-5.0 process

1.Formalize&Alignv Humanassumptionsv C-Processesoperationv C-technologyuse

2.Operatethesystembasedonmetricsanddata

3.Improvethesystem

CSM Inc. ❖ TheCollaborationFirm2524 de abril de

2017

Replace assumptions with explicit agreements of operation.

v AssumptionsofOutcome(Howweset,assignhierarchy,andmanageobjectives)

v AssumptionsofTime-Process(Howwesetandmanagetimeagreementsandprocess)

v AssumptionsofPerformance(Howwedefineandmanageperformance)

v Assumptionsofcommunication(Howweexchangeinformation)

Formalize Key Assumptions


The Coll-5.0 process CycleSmart,Integrated&MotivatedCollaborationSystems:Thatperformatoptimaleffectivenessandefficiency


A Coll-5.0 performance looks like this…

AverageCSoperatingprofile AColl-5.0CollaborationSystem

TheFinalTarget


A Coll-5.0 Supply Chain

Collaboration Process Integration

LogisticsProvider

Original EquipmentManufacturer

Contract Manufacturers

EndClient / User

Material Management Integration

Production Process Integration

Information Management Integration (IT)

Design Process Integration

Financial Process Integration

EndProduct• Quality• Cost• Innovation

Delivery times

Profit margins

Competitiveness


Don’t make the mistake of the artisan who believes he has 20 years of experience, when in truth he has one year of experience repeated twenty times over.

Japaneseproverb

APICS Presentation 2017...CSM Inc. The Collaboration FirmThe Solow Paradox The more intensive use of...

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