ClearGreenCPM Presentation
-
Upload
pablodiazpro -
Category
Documents
-
view
214 -
download
0
Transcript of ClearGreenCPM Presentation
-
8/14/2019 ClearGreenCPM Presentation
1/29
Performance ManagementWith The Earth In Mind
-
8/14/2019 ClearGreenCPM Presentation
2/29
Objectives Improves Competitiveness (IAR, Profit) Optimize the Utilization of Resources
(Productivity, IPY and Cash Tied Up) Improve Responsiveness to the Customer
Methodology TPM/AIM Transition Process
Measurements DPT Measurement Charts Transition Process BarometerTeam Activities
Obstacle Identification Root Cause Analysis Obstacle Removal WIP TIP Management Learning Cycles
Skills Required TPM Mindset/Understanding Problem Solving Abilities Use of LearningCycles
Tools Required Process Maps Pareto Charts TIP Management Techniques Root Cause Analysis (Fishbone) Dynamic Process Time Measurements Initial Pass Yield Disciplined Strategic Process
Competitiveness Improvement Team Develops Vision of Resource Optimization Drives and Forces Improvement Empowers the Organization
Leverages TPM in Marketplace
Input
Baseline Performance Resource Optimization Performance
Output
CPM Implementation Plan
-
8/14/2019 ClearGreenCPM Presentation
3/29
1. Identify each critical path processes
2. Establish the scope of each process3. Identify and bring together the key players
4. Validate scope and determine process boundaries
5. Map the relationship of the processes
6. Establish baseline performance
7. Determine value-added and non-value-added process steps andactivities
8. Remove non-value-added steps and create a resource optimization map
9. Determine measurements
Design the measurement system
Establish initial resource optimization goal
Identify the obstacles
Develop Cause and Effect diagram to find root cause obstacles
Rank-order root cause obstacles
Assign and schedule obstacle removal actions
Track progress through measurement systems
Process Management Road Map
-
8/14/2019 ClearGreenCPM Presentation
4/29
Process/Activity Road MapProcess Name
Scope
COST
IPY
PT
ProcessInputs
WhoDefines Reqts
Perform.Stds.
WhoDefines Reqts
Information
ProcessOutputsCustomersReqts
ResourcesWhoProvides Reqts
WhoProvides
InputReqts
OutputsReqts SubProcesses
WhoDefines
InputsReqts
OutputsReqts
ProcessMap
Process Map
Long Dock-to-Stock Cycle Time Example
MRB
Re-inspect
Search For
ECO
Request
Deviation
Wait
Request 2ndCopy
from Vendor
Request
Deviation
Search for P.O.
at Purchasing
PartNot
toSpec
ECOLate
Vendor Not
onAVL
Waiting
DeviationPartsRej.
at Incoming
Paperwork
Lost
P.O.Not
in System
System
Down
Batching
Order
StoppedReceiving
Causes
EffectLongCycle Time
in DocktoStock
Workaround
Processes/Resources
Workaround
Processes/Resources
8 Ms
Man
Money
MethodMachine
MaterialMotivation
ManagementMeasurement
Fishbone Diagrams
OBSTACLE REMOVAL
PRIORITIES WORKSHEET
Obstacle:
DIFFICULTY OF REMOVAL
IMP
ACT
OF
OBSTACLE
10
9
8
7
6
5
4
3
2
1
High
Low
Easy Dif ficult
1 2 3 4 5 6 7 8 9 10
Obstacle Selection
OBSTACLE RANKING WORKSHEET
PROCESS:
A
B
C
D
E
F
G
H
I
J
K
L
REMOVALDIFFICULTY
OBSTACLEIMPACT
WHOREMOVESOBSTACLE DESCRIPTION
Impact: 1= Low,10= High Difficulty: 1 = Easy,10 = Difficult
Obstacle Ranking
Problem Statement :
Program Goal :
Owner:
Key Action Items By Whom Completion Date
Averageinstallationprocess timehas increasedtosix timeof our best practicegoal.
Reduceaverageprocesstimeinstallations to threemonthbyyear end1997.
I d en t if y a ll p r od u ct s in W I P $ s ta tu s M gr . ./ Su p er v is o rs 3 / 11 /9 7S i gn o ff a l li ns t al ls > 1 5 0 da ys M gr . /S u pe r vi so r s Q 2 E NDSignoffa l l inst a ll a t ions> 120days Mgr./Supervi sors Q3 ENDSignoffa l l inst a ll a t ions> 90days Mgr./Supervi sors Q3 END
T H E C J 9 6 ' FE R P R Y J U J U L U G S E P C T E C J 9 7 ' FE R
I C SSI ST L L T I S 1 8 8 1 8 2 1 9 3 1 8 1 1 6 9 1 8 5 1 5 2 1 8 1 5 5 1 2 6 1 0 1 1 0 8 9 8 9 6
C L T I S T L LT I S 3 1 2 7 2 7 2 6 3 0 7 1 7 2 5 3 3 3 1 1 6 1 8 1 1 8
SELI E 6.1 6 . 1 6 . 1 6 . 1 6 . 1 6 . 1 6 . 1 6 . 1 6 . 1 6 . 1 6 . 1 6 . 1 6 . 1 6 . 1 6 . 1 6 . 1 6 . 1
B E S T P R A CT I C E 2 .0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0P LAN 6.1 5 . 9 5 . 7 5 . 5 5 . 3 5 . 1 4 . 9 4 . 7 4 . 5 4 . 3 4 . 1 3 . 9 3 . 7 3 . 5 3 . 3 3 . 1 2 . 9
YNAMICPROCESSTIM E 6 .1 6 .9 6 .9 7 .2 5 .8 3 .8 9 .9 6 .0 4 .6 4 .5 7 .1 5 .8 9 .4 12 .1
LONGESTCOMPLETEDINSTALLATION 8.1 1 2 .7 1 0 .7 1 4 .8 1 4 .2 1 4 .6 1 6 .0 1 5 .6 1 6 .7 1 4 . 8 1 4 . 3 1 9 . 6 2 1 . 3 9 . 4MEANCOMPLETEDINSTALLATIO NS 5 .4 4 .9 4 .6 5 .5 4 .6 4 .7 4 .3 6 .8 5 .4 5 .1 5 .8 6 .9 6 .3 6 .3
SHORTESTCOMPLETEDINSTALLATION 1.8 1 . 5 1 . 4 2 . 1 1 . 3 1 . 1 0 . 0 2 . 3 0 . 0 2 . 1 1 . 7 3 . 0 0 . 9 4 . 8
FO RECASTE DWI P 98 100 105PL ANNE DSH I P MENT S 13 14 11
PTFO REC AS T 12. 1 10. 3 10. 5 11. 0
CVDPRECISION 5000INSTALLATIONPROCESS TIME
(Shipthru Signoff Dates, Systems Only)
0
2
4
6
8
1 0
1 2
1 4
1 6
1 8
2 0
2 2
2 4
N O V D E C J A N
96'
F EB M AR A PR M AY J UN J UL A U G S E P O C T N OV D E C J A N
97'
F E B M A R
PROCESSTIME
(inmonths)
0
2
4
6
8
1 0
1 2
1 4
1 6
1 8
2 0
2 2
2 4
D YN AM IC PR OC ES ST IM E S HO RT ES TCOMPLETED INSTALLATION
M E AN C O MP L ET E D I N ST A LL A T IO N S L O N GE S TCOMPLETED INSTALLATIONBASE LINE B EST PRA CTIC E
PL AN D PT FORE CAST
BAS ELINE
BEST PRACTICE
P LA
N
Specific Action Plans
17
6
12
18
24
30
36
42
48
M J J A S O N D J F M A M J
B
E
Months
0
1
2
3
4
5
6
7
M J J A S O N D J F M A M J
B
E
$M
5000
6000
7000
8000
M J J A S O N D J F M A M J
1200
1400
1600
1800
$ K He ad c ou nt
o Sa les
x Hea dcount
15
20
25
30
35
M A M J J A S O N D J F M A M J
B
E
%
0
1
2
3
M J J A S O N D J F M A M J
B
E
E
0
20
40
60
80
100
M J J A S O N D J F M A M J
B
%
50
70
90
110
130
150
170
190
M J J A S O N D J F M A M J
B
E
Da ys
0
10
20
30
40
50
60
70
80
90
100
M J J A S O N D J F M A M J
B
E
%
IAR%
PRODUCTIVITY*
SALESANDHEADCOUNT
PRODUCTDEVELOPME NT PT
O RD ER M AN AG EM EN T P T N ET I NC OM E(Annualized)
ORDERMANAGEMENT IPY CUSTOMERSERVICEON-TIMEDELIVERY
*SALES- MATERIAL + PROFIT
TOTAL PEOPLECOSTS
Process/Activity
Indices
Sustaining Metrics
CPM Change Process Overview
-
8/14/2019 ClearGreenCPM Presentation
5/29
1. Culture constrains business process performance that in turn constrains
subject matter performance.2. Not removing culture and subject matter obstacles will create workaround
processes.
3. Obstacles/workaround processes often overlap and are sometimes mutuallyreinforcing.
4. Business Process constraints negatively impact energy conservation
1
1
2
2
3
2
CultureObstacles
WorkaroundProcesses
BusinessProcess
Obstacles
SubjectMatter
Obstacles Are Inter-related
4
-
8/14/2019 ClearGreenCPM Presentation
6/29
6
TIME
A High Leverage Business Processor Culture Obstacle is Removed
Baseline
An Improvement Stall SurfacesProblems to be Solved
Resource Optimization(Realizable Performance)
PR
OCESS
T
IME
Typical Experience Of Process Time Reduction
-
8/14/2019 ClearGreenCPM Presentation
7/29
ContinuousImprovement
& SystemEnablement
RealizablePerformancewith CurrentResources
Baseline Motivation
Categorization
Process Improvement Phase
Implementation
Training
Continuous Improvement& System Enablement
Embracement
Resource Optimization
GlobalCompetitiveness
TIME
Analysis
CPMThe Transition Process
-
8/14/2019 ClearGreenCPM Presentation
8/29
MOTIVATIONTo help critical decision makers and implementers understand thatTotal Process Management is the driver and result of makingbusiness competitive.
Exposure to Total Process Management Concepts.
Formation of multi-functional teams.
Regular meetings of teams and top management.
Meeting attendance.
Degree of commitment to Total Process Management program
How your carbon footprint is affected
The Transition Process
-
8/14/2019 ClearGreenCPM Presentation
9/29
TRAININGDevelop a Total Process Management mindset throughout the organizationand to provide the skills/knowledge to meet and maintain ResourceOptimization.
Employees receive in-depth training in Total Process Management
Plan to reach Resource Optimization.
Degree of Total Process Management mindset.
Demonstrated use of Total Process Management skill and tools.
The Transition Process
-
8/14/2019 ClearGreenCPM Presentation
10/29
CATEGORIZATIONDetermine Baseline, Resource Optimization, and Obstacles tomeeting Resource Optimization, as well as quantifying theimpact of reaching Resource Optimization.
Baseline established and measurements defined.
Baseline" process map completed.
"Resource Optimization" process map completed.
Major obstacles identified.
Impact of Resource Optimization quantified.
Resource Optimization established.
The Transition Process
-
8/14/2019 ClearGreenCPM Presentation
11/29
IMPLEMENTATIONAchieve Resource Optimization and ongoing obstacleremoval.
Regular measurements of dynamic process time and
initial pass yield
Progress to Resource Optimization in process time
Progress to Resource Optimization in initial pass yield.
Progress in obstacle removal.
Existence of feedback loops
The Transition Process
-
8/14/2019 ClearGreenCPM Presentation
12/29
EMBRACEMENTCreation of a culture in the organization which depends on TotalProcess Management Methodology to remain competitive and
continuously improve performance.
Hierarchical measurements in place. Focus on business process, not functions. Continued results.
The Transition Process
-
8/14/2019 ClearGreenCPM Presentation
13/29
Client Senior Management Implementation Team
Total Process ManagementCompetitiveness Improvement
Team (CIT)
Multi-Functional Teams(Composed of)
DesignEng.
OrderEntry
ProjectEng.
Forecasting
ProductAssurance
MaterialPlanning
MIS
Procurement
Manufacturing Customer Service/Product Support
HumanResources
ProgramManagement
Multi-Functional Teams Structure
MFTs create Obstacle Removal Teams (ORTs) as necessaryto remove specific obstacles.
Organizational Relationships
-
8/14/2019 ClearGreenCPM Presentation
14/29
DefineProcesses
InstallMeasuresTPMWorkshop
Establish
ImprovementObjectives
Embracement
1 WEEK 6 WEEKS 1 WEEK 4-10 MONTHS 2 MONTHS
TOTAL TIME = 8 - 14 MONTHS
Rapid Implementation Architecture
AchieveObjectives
Timetable to Achieve Improvements
-
8/14/2019 ClearGreenCPM Presentation
15/29
Top-down commitment - must have CEOs support ateach level.
Top-level active involvement.
Change through current operational managementstructure.
Involvement of outside objective team players withhands-on experience.
Well-trained internal implementers working with outsideassistance.
Frequent top management/outside change agent
obstacle removal meetings. Simplifying and revising measurements to minimum set
that drives competitiveness.
Communication, Communication, Communication.
What Works
Organizational Team Structure
-
8/14/2019 ClearGreenCPM Presentation
16/29
Self medication (typically stalls at 25% to 30% ofpotential).
Lack of top management involvement.
Assigning responsibility to internal staff as
leaders of Total Process Management culturalchange.
Continuing with todays measurements.
Program of the Year.
Edicts of performance change. Partial cultural changes.
What Doesnt Work
-
8/14/2019 ClearGreenCPM Presentation
17/29
Real-Life Solution Examples
-
8/14/2019 ClearGreenCPM Presentation
18/29
Problem Area:
Size of Opportunity: Solution Impact:
Enablers:
Reduced ECOs
Increased product gross margin by 7% Accelerated product time-to-market by 15days (x%) Increased first pass yield by 2%Increased accuracy and timeliness ofinformation for engineering and quickdecision making
Capture larger market share in industry
with short product life cycles and declining
product margins
Accelerate new product time-to-market
Reduce product development cost
Increase customer satisfaction
Improve pre-production yield
1
2
4
3
How do I effectively andefficiently collaborate with
customers, suppliers, andpartners in the productdevelopment process?
Integrated knowledge and team design
collaboration across global team
Integration of back office systems
Yield mgmt., yield failure and test failure analysis
Trend tracking and product alerts to engineering
Personalized user tools and information
Streamline qualification and handoff to
manufacturing
Automated data flows, full cycle accountability
Effective Collaborative Product Development
Eli i i E & Ob l I
-
8/14/2019 ClearGreenCPM Presentation
19/29
Problem Area:
Size of Opportunity: Solution Impact:
Enablers:
Reduced total inventory by 20-30% Reduced inventory financing andcarrying costs > 25% Reduced Order-to-Cash time > 30% Shorter-time-to-ROI of targeted projects Clear ownership of enterprise-widemetrics
Match inventory levels with productiondemands
Eliminate excess and obsolete inventory
write-off cost
Reduce inventory holding costs
Increase sales by carrying saleable items
Increased cash reserves by reducing
inventory requirements
1
2
4
3
How do I eliminate excess andobsolete inventory?
Comprehensive, real-time global view
Inventory-based suggestive selling
process Alerts, decision analysis, and reporting
Bill of Materials data aggregation
Obsolesce management
Continuous KPI and account monitoring
Eliminating Excess & Obsolete Inventory
Eff i C M f i M
-
8/14/2019 ClearGreenCPM Presentation
20/29
Problem Area:
Size of Opportunity: Solution Impact:
Enablers:
Reduced cost of goods sold by 10%
Increased inventory visibility by 40%
Reduced inventory days 4 days / year
Increased supplier performance levels
Increased ability to scale for biz growth
Reduced handling, shipping, and
transaction costs by 30%
Improve OTD by 20%
Reduce product procurement cost
Increase inventory turns resulting from JIT
replenishment from Contract Manufacturer
Increase sales resulting from increased
visibility to CM fulfillment capabilities
Reduce handling, shipping and transaction
costs resulting from increased accuracy of
communication1
2
4
3
How do I effectively andefficiently manage my contract
manufacturers?
Metric definition
Accountable buyers/planners/facilities
Clean data
Lower min/max settings
Good reporting tools
Formalized training program
Continuous KPI and Account Monitoring
Effective Contract Manufacturing Management
Gl b l & Ti l P f M it i
-
8/14/2019 ClearGreenCPM Presentation
21/29
Problem Area:
Size of Opportunity: Solution Impact:
Enablers:
$100Ms reduction in parts inventory $10Ms reduction in Inventory Carrying
Costs
Reduced component and raw material
inventory
Revenue increase resulting fromimproved customer service levels
Reduce holding and write-off costs
resulting from increased component
Inventory turns while balancing
continuity of supply
Reduce liability for over-purchased
components at suppliers and partners1
2
4
3
How do I perform global andtimely performance monitoring
within and outside theenterprise?
Performance metrics tracking on buyer
Standardize purchasing methodology
Provide buyers with automated on-handinventory volume & value numbers by
part
Mandate Inventory allowance by volume
and value so buyers can manage excess
Global & Timely Performance Monitoring(Inventory & Fulfillment)
-
8/14/2019 ClearGreenCPM Presentation
22/29
Problem Area:
Size of Opportunity: Solution Impact:
Enablers:
Decreased inventory levels by 5% Increased supplier number of supplierrelationships and ease of doing business > 20% reduction in sales cycle time > 10% reduction in costs of servicingsales > 25% reduction in order to cash cycletime
Increased OTD to > 98% to originalcommitment
Increase customer retention and total sales
Increase responsiveness to customer and
market opportunities requiring new capabilities
Reduce order processing administrative costs
Reduce inventory holding costs
Improve customer experience to result in
increased customer loyalty producing
increased revenue per customer
1
2
4
3
How do I effectively manageorders from Order through
Account Receivables?
Sales reports and forecasting Online promotional management Integration to supplier and partner
internal systems Quick quoting and self-serviceordering
Product data sheets and productsearch
Real-time stock status and orderstatus
Effectively Manage Order Capture Through Fulfillment
A t & Ti l D d Pl i
-
8/14/2019 ClearGreenCPM Presentation
23/29
Problem Area:
Size of Opportunity:Solution Impact:
Enablers:
Improved deal and product salesforecasting accuracy from 25% to 5%error rate
Reduction in inventory of 5%
Improved sales closing rates
Increase sales by ensuring that the rightproduct is available at the right time andat the right place Reduce inventory costs by accuratelypredicting demand Reduce risk of lost deals because ofproduct unavailabilityTransition from BTS to BTO or CTO1
2
4
3
How do I improve my demandplanning process?
Centralized and common global demand
planning and sales forecasting structure
Automated forecasting process that collectssales info. in a timely manner
Implemented global standardized policies andpractices
Centralized repository for data and salesresources including account planning
Mass Customization
Accurate & Timely Demand Planning
Bill f M t i l I t it
-
8/14/2019 ClearGreenCPM Presentation
24/29
Problem Area:
Size of Opportunity: Solution Impact:
Enablers:
Improved BOM accuracy by 35% Reduced BOM processing by 15
days
Integrated 36 different BOM lists into
one global unified BOM list
Reduce scrap parts inventory Reduce administrative costs associated
with BOM maintenance
Reduce procurement costs resulting from
increased ability to pool orders by resolving
part number duplications
Reduce part inventory based on increased
ability to use equivalent parts
1
2
4
3
How do I improve the integrityof my Bills of Materials?
Unified BOM / Parts list
Unified Supplier list
Common Information Model
Integration between various systems
holding BOM information
Link ECOs to BOMs effectivity changes and
dates
Bills of Material Integrity
V d M d I t
-
8/14/2019 ClearGreenCPM Presentation
25/29
Problem Area:
Size of Opportunity: Solution Impact:
Enablers:
Reduced total inventory by 20-30%
Reduced inventory financing and
carrying costs > 25%
Reduced order fulfillment time > 30%
Increase sales and customersatisfaction through improved OTD
Eliminate $Millions in excess and
obsolete inventory by increased
collaboration and management of top
customer(s) inventory
Reduce order to cash cycle time by
reducing inventory requirements1
2
4
3
How do I manage theinventory of my customers?
Comprehensive, real-time global view Customer demand data aggregation
and forecasting Alerts, decision analysis, andreporting Bill of Materials data aggregation Obsolesce management Continuous KPI and accountmonitoring
Vendor Managed Inventory
Q lit T ki & P ti R di ti
-
8/14/2019 ClearGreenCPM Presentation
26/29
Quality Tracking & Pro-active Remediation
Problem Area:
Size of Opportunity: Solution Impact:
Enablers:
Increased supplier recoverable costsby 50%
Reduced warranty costs by $10M
Reduced scrap costs by $10Ms
Reduced standby engineering costs
by $10Ms
Reduced field failure rate (FFR) by 8%
Reduce high Cost of Quality by reducingroot cause defects Capture timely quality related information Detect and correct field failures earlier(current lag time is 6 mos.) to reducewarranty exposure Incorporate field and manufacturingexperience into design and procurement
How do I track my enterprise-wide quality data and react
quickly to quality problems?
Consistent purchasing, design and mfg.
feedback loop
Tighter control of parts inventory Own a product throughout lifecycle incl. endof warranty Defect tracking Analyze Cost of Poor Material data gatheringroot causes Minimized number of company wide metrics Integration of disparate data in existingsystems
1
2
4
3
Ti l BTO/ETO P du t
-
8/14/2019 ClearGreenCPM Presentation
27/29
Problem Area:
Size of Opportunity: Solution Impact:
Enablers:
Reduced inventory, scrap, rework
and administrative costs
Increased working capital utilization
Capture larger market share with
accelerated BTO/ETO capabilities
Reduce product development cost
Increase customer satisfaction
Reduce inventory by building to
customer specifications (BTS vs.
BTO/ETO)1
2
4
3
How do I build my product to
customers specifications(BTO/ETO) in a timely fashion?
Comprehensive, real-time global view
Alerts, decision analysis, and reporting
Mass customized components Continuous KPI and account monitoring
Real-time communications with suppliers
Automated data flows, full cycle
accountability
Product configurator linked to BOM, ECO,
production capacities, and margin analysis
Timely BTO/ETO Product
d i l
-
8/14/2019 ClearGreenCPM Presentation
28/29
Our Green Credentials
-
8/14/2019 ClearGreenCPM Presentation
29/29
Eco-Technology in Real-Time
Performance ManagementWith The Earth In Mind