MSD & Accenture Development Partnerships Phase III

Accenture Development Partnerships

MSD & Accenture Development Partnerships

Phase III

Programme Launch Workshop

4th October 2012

http://www.msd.or.tz/

Copyright © 2012 Accenture All rights reserved. Copyright © 2012 Accenture All rights reserved.

Today’s key objectives are to present the proposed scope and

approach for each workstream and to socialise findings to date

Agenda for Today

2

1. Introductions & Programme Overview 9:00 – 9:30

2. Partnership Model with Coca Cola 9:30 – 9:45

3. Scope and Approach for Last Mile and Core Planning & Procurement

9:45 – 10:30

4. Scope and Approach for Performance Management and Monitoring and Evaluation

10:45 – 11:30

5. Yale: AIDED Model for Dissemination, Diffusion, and Scale Up 11.30 – 13.00

6. Understanding O&SP Challenges – The Supply Chain Game 13.45 – 15:45

7. Tools Recommendation for Network Optimisation 15:45 – 16.00

8. Progress To Date on Balanced Scorecard Design 16:15 – 16:35

9. Performance Management - Motivation & Results 16:35 – 17:10

10. Workshop Wrap Up 17.10 – 17.30

Lunch Break

Coffee Break

Coffee Break


MSD ADP Program Roadmap

3

Imp

lem

en

tati

on

Key Program

Objectives

Phase 1 Phase 2 +

_

We are here

• Last Mile • Planning & Procurement • Performance Management

Phase 3

• Last Mile • Planning & Procurement • Performance Management + Monitoring and Evaluation + Medium Term Strategic Plan

• End-to-end assessment of MSD’s supply chain to identify the key opportunities to improve distribution of

critical medicines

• Design of pilots for the “last mile”, interventions to reduce stock-outs and decrease operating expenses, to

free up more capital to invest in improving infrastructure and medical facilities.

• Build the capability for MSD to deliver directly to health facilities, taking on services previously provided by

the District Medical Offices without compromising service levels

• Improve overall delivery and client satisfaction through improvements to forecasting, planning and

procurement processes and data, as well as communications and relations with key suppliers

• Foster long-term relationships between MSD and private sector partners, like Coca-Cola, to provide

business knowledge, private sector perspectives, best practices, and tools to overcome shared challenges

• Build the internal capabilities of MSD staff, fostering a culture of learning and supply chain operational

excellence

• End to end analysis of MSD • Pilot of key opportunities • Implementation recommendations


Phase Three Scope and Objectives

4

The Phase 3 Program is composed of 5 projects

working collaboratively over a 7 month period

Key Project Objectives

• Support Improvements within the Planning Function

• Support Improvements within the Procurement Function

Planning and Procurement

• Build MSD M&E Capability for creating and maintaining

an Executive Level Balanced Scorecard

• Drive improved integration and project monitoring across

all MSD Improvement Projects

Monitoring and Evaluation

• Support the Development of a more effective

Performance Management Culture and Process

Performance Management

• Development of the new MTSP 2013-2018

Medium Term Strategic Plan

• Support the implementation of an “optimized network”

within regions already visited as part of the project

• Support MSD Roll out Last Mile Optimization Toolkit to a

new Region

Last Mile Fiv

e W

ork

str

eam

s



Medium Term

Strategic Plan

Planning &

Procurement

Last Mile

4 Months 7 Months

Starts in November


Leveraging the commercial capabilities of Coca-Cola can make

significant impact where challenges are shared

Coca-Cola and MSD Partnership Model

5

Pe

rfo

rma

nce

M

an

ag

em

en

t

Sto

re &

D

istrib

ute

Convening Power

Public Health Impact

Commercial Impact

The partnership model will focus on and will be limited to areas where there is a clear role for Coca-Cola to support MSD in its transformation journey

Across these focus areas, Coca-Cola will contribute in three ways:

• Expertise: Provide project advisors to support the core project team

• Institutional Knowledge: Provide operational knowledge and best practices

• Convening Power: Through its brand, support the team to engage other partners

At its core, the partnership model is intended to identify areas where the commercial capabilities of Coca-Cola can be shared and brought to bear on challenges in MSD

Strategy

Partnership Focus Areas

Coca-Cola Contribution

Partnership

Model


Benefits of long-term commitment

Strategy

6

Commercial Impact

Public Health Impact

Shareholder Expectations

• Firms adopting corporate social responsibility policies receive more favourable stock analyst ratings

• Positive CSR strategies are perceived as value-creating

Coca-Cola Benefits

Brand and Reputation

• Differentiate products and services to increasingly savvy consumers

• Drive greater employee engagement

Licence to Operate

• Enhanced relationship and influence with emerging market governments

• Rising expectations of host governments and citizens on role of business

Access

• Ability to leverage and learn from corporate supply chain capabilities to increase access to key goods and services (e.g. vaccines)

MSD/MoH Benefits

Social Mobilisation

• Ability to learn from corporate marketing strategies to increase the awareness and uptake

Human Capital Development

• Ability to learn HR techniques from Private sector to provide people with the skills to succeed and sustain the change


Development Impact

• All of these factors create value for the project and reduces the overall project delivery costs

• Through the contribution of knowledge and people, the contribution from Coca-Cola improves the quality of the outcomes and as result has a direct public health impact

Coca-Cola will support by providing expertise, institutional

knowledge support the programme to engage other

partners

•Coca-Cola Contribution

7

Expertise

• Coca-Cola will provide part-time project advisors to support the core project team

• This contribution directly reduces the overall project cost and improves the overall quality of the outcomes

Convening Power

• Coca-Cola is recognised as the world’s most valuable brand

• Coca-Cola through its brand and relationships will support the project to interact and obtain support from other relevant private sector partners (e.g. 3PLs)

Institutional Knowledge

• Coca-Cola will provide tacit process and solution knowledge to support delivery of the MSD projects

• This knowledge includes processes, technology blueprints and methodologies

Each contribution factor has a tangible impact on the quality of the project outcomes and as a result has a direct impact on public health


Coca-Cola in Tanzania are Represented by Three Bottling

Companies with Different Territories

To date we have worked with Coca-Cola Kwanza, based in Dar es Salaam. The last

mile project will need to engage all three

8

Nyanza

Bottling

Coca-Cola

Kwanza

Bonite

Bottlers


How Coca Cola Could Support Phase Three

9

Strategy

Planning

Procurement

Distribution &

Logistics

Talent Management

Monitoring &

Evaluation

1

2

3

4

5

6

• Share knowledge road conditions, routing in hard to reach areas

• Seek inputs on franchisee model and 3PL/4PL players in distribution

• Provide examples of Procurement analyses, scorecards, or processes that could be models for MSD

• Share S&OP implementation experience and current practices

• Observe and facilitate one MSD O&SP meeting

• Share talent strategy including recruitment & training methodology

• Share PM processes and counsel

• Validate usefulness of executive level metrics and advise on methodology of data collection in geographically dispersed business

• Review relevant sections of MSD Medium Term Strategic Plan

• Request for Rates, security procedures and other

tactical information

Coca-Cola has experience that can be leveraged to support MSD in embedding leading practice into their organisation. ADP’s understanding of the support available remains to be validated, but may include:


The MSD Phase 3 Project will last eight months, while other partners’

projects are multi-year efforts. As we describe the scope and

approach to workstreams we invite comment on how best to align

2. For each MSD Ph3 Workstream:

• Establish points of contact in other programmes

• Key dates and milestones that impact on MSD Phase 3

• Any expected integration challenges

Integration Objectives for Today Sponsors / Existing Programmes

Ministry of Health

and Social Welfare

1. Identify additional initiatives that MSD Ph3 should align with


There may be one or several Responsible Directors

or Managers for a workstream.

Need to be consulted and engaged to shape the

outputs and decision-making for the workstream,

Will facilitate the engagement with managers and

staff in their directorates

MSD Phase Three – Governance Structure

Phase Three Directors’ Roles and Governance Meetings

11

Programme Management Meetings

Events: Launch Workshop and two checkpoint Workshops

Attendees: Group as per today’s workshop

Role:

Review status of the overall programme

Leverage senior level relationships to address obstacles

support extension of the learnings to other contexts

Phase Three Steering Committee

Workstream Management Meetings

Events: Meetings once per month before submitting status

report to funders

Attendees: Phase 3 Programme Manager plus Workstream

Accountable Directors, Coca-Cola (as required), ADP

Role:

Review the status of individual workstreams

Escalate significant issues to Steering level

Time Commitment: Meeting once per week

Attendees: Workstream Accountable and Responsible

Directors, Coca-Cola (as required), ADP

Role:

Manage and contribute to detailed execution of plans

Take timely decisions to manage the workstream

Workstream Responsible Director / Manager

Lead director for the workstream and responsible for

attending the monthly management meetings

Convenes meetings with other directors, as well as

with managers and staff in their own directorate

Workstream Accountable Director / Manager

Phase Three Programme Director

Overall responsible director for the Programme.

Convenes and chairs monthly management

meetings

Accountable for ‘signing off’ the status reports to

funders.

Attends the steering committee meetings and feeds

back decisions to all workstreams




Agenda for Today

12



3. Scope and Approach for Last Mile and Core Planning &

Procurement 9:45 – 10:30

4. Scope and Approach for Performance Management and

Monitoring and Evaluation 10:45 – 11:30

5. Yale: AIDED Model for Dissemination, Diffusion, and

Scale Up 11.30 – 13.00

6. Understanding O&SP Challenges – The Supply Chain

Game 13.45 – 15:45





Lunch Break

Coffee Break

Coffee Break

13 13

Last Mile



Direct Delivery Landscape

14

DMOs

Dispensaries

Health Centres National Hospital

Special Hospitals

Referral Hospitals

Regional Hospitals

Faith Based HF

District Hospitals

End

Customer HC Customer

Secondary Health

Institutions MSD Warehouses

ERP eLMIS eLMIS

Level

Inventory

Data Source

Direct Delivery

MSD Central Warehouse

MSD Zonal Stores

Suppliers of Medicines &

Supplies

Optimum fleet

utilization

Explore 3PL/4PL –

franchisee model

vs. Insourcing

Mobile

warehouse

vs. new

optimal

nodes

Direct Delivery route & network optimization


Last Mile at MSD

15

Project Objectives

• Request inputs on road conditions, routing in hard to reach areas.

• Seek inputs on franchisee model and 3PL/4PL players in distribution .

• Request for Rates, security procedures and other tactical information.

• ADP will analyze the business case of using Llamasoft vs. Excel tools.

• MSD/ADP will work hand in hand to conduct optimization of existing direct delivery routes

• ADP will work together with MSD on feasibility analysis of 3PL/4PL , sharing responsibilities for data gathering and field visits to assess local conditions.

• ADP will document “lessons learned” in a manual that MSD will be able to use for the assessment, decision making and roll -out to new direct delivery regions.

Role of MSD & ADP Consultant Team Role of Coca-Cola

In Scope

• Review existing fleet, Direct delivery routes and optimize them.

• Explore Llamasoft for Network Optimization for existing Direct delivery routes.

• Explore Outsourcing (3PL/4PL) opportunities for

- MSD to Zone

- Zone to Health facility

Out of Scope

• Optimization of new direct delivery regions, analysis of expansion of ILS products like vaccines and cold chain.

Project Scope

In order of priority..

1. Derive greater efficiencies by reducing transportation costs

by optimizing existing routes from MSD to Health

facilities(Direct Delivery).

2. Through network optimization

• validate existing set up( whether big trucks acting as mobile

warehouse are optimal for re-distribution).

• explore new nodes or stock points for re-distribution

3. Evaluate 3PL/4PL usage to increase savings and optimize

MSD’s fleet utilization

MSD Project Team Cosmas Mwaifwani, Sylvester Matandiko, Lucy Nderimo, Misanga Muja,Heri Mchunga

ADP Project Team Swaraj Mukherjee


Transforming Medicine Delivery The ILS Way

•Bringing other medicines and programs into the ILS distribution system

16

TIME

Integrating into ILS

Similar Distribution Model

Dissimilar Distribution Model

Pro

gram

M

SD

Reg

ion

al

Dis

tric

t

ILS

Health Centres and Dispensaries


Initial Inputs to Project

17

Pro

ject Lau

nch


Project Stage Breakdown

18

Stage 1 Optimize current

identified direct routes from MSD Zone

Stage 2 Decide on

outsourcing vs. insourcing of

routes

Stage 3

Design methodology for

MSD to do network

optimization independently

• Conduct an analysis of the current

MSD direct delivery routes and

identifying areas of opportunity for

route and network optimization with

Llamasoft leading to outsourcing

options.

• Conduct a detailed cost benefit

analysis on 3PL/4PL’s across 2 or

3 identified regions and provide

optimal node options for a Go/No

Go decision

• Coach participants on processes

and actions for achieving greater

efficiencies through optimized

network for new direct delivery

routes


• Coca-Cola will provide expertise to share 3PL/4PL providers serviceability across districts, cost and performance.

• Coca-Cola will provide guidance on “how to” source and change identified inputs for new direct delivery routes optimization

Activities

• Coca-Cola will provide tactical knowledge to evaluate the cost driver analysis and to provide insight into what additional factors should be considered during data capture

Outcomes

• Optimized direct routes using

Llamasoft tool to bring cost

efficiencies

• Outsourcing vs. Insourcing

feasibility study and pilot

implementation

• Route and Network

Optimization methodology

document


• Confirm

strategic

intent

• Finalise

scope

• Define

project

plan

Project Roadmap

Month 1 Month 2 Week 1

Route & Network Optimization and 3PL/4PL cost benefit analysis & outcome (Scope of this project)

Month 3 Month 4 Month 5 Month 6 Month 7

Pre-mob

Stage 1: Review As-Is and Optimize Current DD Routes

Stage 2: Outsourcing vs. Insourcing

Stage 3: Document Methodology

Legend: Workshop Deliverable Coke Meeting

Identified Direct Delivery routes optimization conducted

Analysis on 3PL/4PL

Recommend optimized routes

Recommendations on 3PL / 4PL

Implementation

Methodology

document

Gather route information

Co-create methodology document

for new direct routes

MS

D m

an

ag

e a

nd

im

ple

me

nt

dis

trib

uti

on

Sys

tem

Evaluate Llamasoft vs. Excel tools

Request Tacit

Information

Sharing with

Coca Cola

Implement Chosen Optimization Recommendations

Implement Pilot of 3PL / 4PL Recommendations in one region

Request 3PL

Landscape

Information

from Coca Cola

Request review

of methodology

with Coca Cola

Validate rates,

serviceability and

contractual terms of

selected 3PL/4PL

providers with Coca

Cola

20 20

Core Planning and Procurement



Core Planning and Procurement

Core Planning and Procurement Workstream is composed of Planning process

initiative called Operations and Supply Planning (O&SP) as well as various

Procurement initiatives

21

Core planning and procurement

• Supplier scorecard

• Contract management process

• Supplier feedback forum

• Forecast sharing with suppliers

Procurement Initiatives Planning Initiatives

• O&SP Process

• Demand Planning

• process

improvements


In order of priority..

1. Increase product availability of ILS* products by instilling a regular process of proactive supply chain planning

2. Increase ability to evaluate and react to Health Centre level customer demand

3. Improve supplier relationships to:

1. Reduce lead times and order cycle times

2. Identify opportunities for reduced costs

3. Reduce administrative burden on Procurement

*ILS= Integrated Logistics Services, subset of all medicines

Project Overview

22

Project Objectives

• Share S&OP implementation experience and current practices

• Provide examples of Procurement analyses, scorecards, or processes that could be models for MSD

• MSD to revitalize O&SP process and ADP to support preparations each month

• MSD & ADP to collaborate with Last Mile, M&E, Talent Management, SCMS, DELIVER, Eproc. and ERP teams to ensure consistency and longevity of process change

• ADP to support procurement team with rollout of supplier relationship improving initiatives


In Scope

• Gap analysis between Phase 2 O&SP plan & current state

• Regular rhythm of O&SP process, beginning with a subset of products with similar planning parameters

• Forecasting improvements at DMO level through collaboration w/ ERP, eLMIS, & SCMS

• Support of procurement initiatives e.g. supplier scorecard, contract management process, supplier feedback forum

Out of Scope

• Roll out O&SP planning process for all product lines • Customer service at End Customer level (Inventory reporting,

demand forecasting, and product availability) • Budget challenges with MOH • E procurement feasibility analysis

Project Scope

MSD Project Team Heri Mchunga, Lameck Kipilyango, Owden Mhabuka, Frederick Nicolaus, Missanga Muja, Lucy Nderimo, Sylvester Matandiko, Cosmas Mwaifwani, Shaaban Husein

ADP Project Team Alison Henning


Confirmation of Customer Visibility

23

DMOs

Dispensaries

Health Centres

National Hospital

Special Hospitals

Referral Hospitals

Regional Hospitals

Faith Based HF

District Hospitals

End

Customer HC Customer

Secondary Health

Institutions MSD Warehouses

ERP eLMIS eLMIS

Level

Inventory

Data Source

Direct Delivery

MSD Central Warehouse

MSD Zonal Stores

Suppliers of Medicines &

Supplies

Current Inventory, Forecast &

Demand Visibility

No visibility

Order Fill Rate Known, but not

Inventory Level (Until eLMIS)



24

Stage 1 O&SP Gap Analysis

Stage 2 Roll Out

Operations & Sales Planning

(O&SP) Process


Activities

Deliverable Outcomes

• Conduct gap analysis of current

MSD planning /procurement

processes & Phase 2 O&SP design

• Update O&SP plan to include recent

changes to MSD structure

• Collaborate with ERP to design long

term O&SP process

• Prepare for and execute regular

O&SP process, using Phase 2 or

newly created tools

• Maintain O&SP steady state with

pilot item list, and create plan to

expand O&SP to other MSD items

• Support intermittent procurement

initiatives such as documenting

soft copy tender evaluation,

creating supplier scorecard, and

improving supplier relationships

• Observe Coke bottlers’ S&OP meetings as example and model

• Provide examples of procurement

analyses, tools , SRM models

• Updated O&SP process

documentation

• Post ERP O&SP materials

• Preliminary product list

• O&SP roll-out communications,

timeline, and meeting preparation

materials that include:

• Customer service root cause

analysis

• Supplier call off plan

• Operational scorecard

• Plan to rollout O&SP to all Product

Categories

• Tender evaluation: 2011 Act impact

analysis

• Supplier Scorecard

• Contract Management Process

• Supplier Feedback Forum

• Forecast Sharing Tool for key suppliers

Data

Roles

Rhythm

Tools

• Provide overview of Coke bottlers’ S&OP process and development

• Implement O&SP

process from the

foundation - up

Stage 3 Support O&SP Steady State

Stage 4 Support

Procurement Improvement

Initiatives


Kick-Off • Confirm

strategic

intent

• Finalise

scope

• Define

project

plan

Project Roadmap

Month 1 Month 2 Week 1 Month 3 Month 4 Month 5 Month 6 Month 7

Pre-mob

Stage 1: Gap Analysis

Stage 2: Roll Out O&SP Process

Stage 3: O&SP Steady State


Resume O&SP process

Prep for and execute first two O&SP meetings

Maintain O&SP steady state

O&SP Rollout to New Product Categories

Product List Analysis, Updated O&SP Documentation

Coms, Drumbeat Timeline, Meeting Materials

Meeting Materials, Meeting Outcomes

Contract Management Process Supplier Scorecard, Tender Eval process

Supplier Feedback Forum

MSD Item Plan

O&SP Drumbeat

Overview

Meeting

Coke S&OP Observation Meeting

O&SP Refresh

Coke Procurement Sharing Meeting

Stage 4: Support Discrete Procurement Initiatives




Agenda for Today

26




9:45 – 10:30


10:45 – 11:30







Lunch Break

Coffee Break

Coffee Break

27 27



Copyright © 2012 Accenture All rights reserved.

Performance Management – Scope Schematic

• Performance Management is the process by which organizations align their resources, systems and employees to strategic objectives and priorities

• Competency Management is a tool within a performance management which contains detail around role specific

requirements and objectives


Project Overview

29

Revised Project Objectives

• Share talent strategy including recruitment & training methodology

• Share PM processes and counsel

• ADP to work collaboratively with the Director of Corporate Affairs HR and to review current PM System and complete design for new system

• ADP to support MSD in implementing a pilot a creating tools for full roll-out


In Scope

• Review of existing Performance Management (PM) System including Supply Chain Competency Model

• Design of to-be PM System to include playbook for roll-out of competency model across all MSD departments

• Pilot Implementation of to-be PM System (target population for pilot to be confirmed)

• Review pilot and define roadmap for full implementation of PM System across MSD

Out of Scope

• Detailed role descriptions and other low level detail for competency model

• Roll out of training for Supply Chain Academy

• Setting of individual and department-level targets

Project Scope

Create a PM System that aligns HR Processes to

business strategy consistently across directorates,

which will aim to:

• Improve supervision, productivity and efficiency

to enhance customer satisfaction

• Improve motivation and job satisfaction to

retain, develop and attract talent

• Introduce succession planning

MSD Project Team Victoria Elangwa, Neema Mwale, Frankie Nkone, Siku Baleja

ADP Project Team Helen Clarke



30

Pro

ject Lau

nch



31

Stage 1 Understand

Current State PM System

Stage 2 Design Future Performance Management

System

Stage 3

Run Pilot of new PM System

• Conduct an analysis of the current

MSD performance management

Processes identifying strengths and

areas of opportunity.

• Consider private sector models

and ways of working

• Recommend and design a revised


Process aligned to the overall MSD

Overall Scorecard and Strategy.

• Launch the Revised Performance

Management Process as a pilot

and identify key insights and

learning before defining roadmap

to expand implementation.


• Share experience of successes and challenges in Coke PM System

Activities


• Advise on experience with multi-location, multi role implementation

• Documented review report of current

performance management system

including strengths and areas of

opportunity (in PowerPoint)

• Research report of relevant PM

models (in Powerpoint)

• Design of to-be Performance

Management System for MSD

• Implementation of to-be design

of PM Process for pilot group

• Creation of roadmap for future

implementation of to-be design

of PM Process across MSD

• Provide overview of Coke’s current state PM System – the ‘RED System’


Project Roadmap

32

Improved Performance Management

Legend: Workshop Coke Meeting Deliverable

Implementing the

Roadmap

Workshops

Pre-launch

Week 1

• Confirm

strategic

intent

• Finalise

scope

• Define

project

plan

Imp

lem

en

tati

on

of

Ro

adm

ap

Month 1

Stage 1: Review As-Is Talent Processes

Month 2

Kick-Off

As-is Research

As-is Analysis

Stage 2: Design New PM Model

As-Is Review and Idea Generation Workshop

Month 3

Implementation Planning Workshop

Create To-be PM Design & Templates and Communication Strategy

Private sector models research

Stage 3: Implementation

Design pilot*

Month 4

Current state review report

Overview of Coke PM Model

Mid-Design Workshop

Design for new PM Model & Communication Strategy

Prepare and Run pilot

Review pilot Create and socialise

complete PM roadmap

*Target population for pilot tbc. To include broad spectrum of roles, levels and geograpgies across MSD.

Communicate plans with workforce

33 33




Scope Schematic - Monitoring and Evaluation

Translate Mission

and Vision into

Strategy Map

Strategy Map

Value

Drivers Objectives

Cause-effect

relationship

Consistent Reporting Formats

BAU* Executive

Scorecard (KPIs)

Governance Framework

Continuous Performance Improvement

Translate Value

Drivers into

Executive

Scorecard KPIs

*Business as Usual

Revised M&E Manual incl. KPI Dictionary

Improvement

Projects Tracker

Define Process for

Data Collection and

Reporting; Dept. Level

Accountability; Rules

of Engagement with 3rd

Party Partner

Organizations


• Validate the design of the scorecard

based on experience from RED*

• Provide guidance on data collection and

reporting in the context of a

geographically wide-spread business

Project Overview

• MSD and ADP to co-create executive level scorecard

• ADP to review and redefine the governance framework to monitor Improvement projects and BAU performance

• ADP to facilitate MSD meetings with 3rd parties


• Define a governance framework for M&E within MSD, to cover:

• Monitoring and evaluation of MSD’s Improvement Projects

• Process to produce executive level scorecard on a regular basis

• Where necessary, partnership agreements with third parties to

measure MSD’s performance on it’s core supply chain functions

• Detailed design of an executive level scorecard to capture a

comprehensive yet concise set of measures and steer weekly and

monthly management meetings

• Create a tracker for MSD’s Improvement Projects to manage adherence

to plans and achievement of objectives

• Pilot the M&E processes on one Improvement Project and create first

iteration of the executive scorecard from available data.

• Create plan for development of scorecard as data becomes available

Out of Scope

• Process mapping to define metrics and scorecard for each directorate

• Field surveys to assess MSD’s impact on grassroots health outcomes

Project Scope

MSD Project Team Joseph Mgaya, Shabaan Husein, Cosmas Nalimi, Sako Mwakalobo

ADP Project Team Piu Bose

Project Objectives

• Define M&E governance which clarifies

roles and responsibilities for the

collection and processing of metrics, as

well as responsibilities for root cause

analysis and continuous improvement

• Develop a set of metrics which track the

achievement of MSD strategy over time

• Develop a tracker for monitoring

achievement of Improvement Project

outcomes

• Enable MSD to source data from third

parties where necessary to monitor

MSD’s own performance

• Build capacity within MSD for

implementation of M&E

*RED is Coca-Cola’s M&E effort, RED stands for Right Execution Daily



36

Pro

ject Lau

nch



• Develop and validate top level org.

KPIs with Director General

• Define department level accountability

for reporting on key metrics which map

up to top level org. KPIs

• Assign roles and responsibilities within

the reporting process specific to M&E

staff vs. Directorates

• Review and update the M&E manual incorporating more detailed methods and process for

• BAU Monitoring via scorecard • Improvement Projects Monitoring • Partnership agreements with third

parties, where required

• Create an implementation plan for

MSD’s M&E group for systematically

integrating and scaling-up of monitoring

and evaluation capabilities across all

BAU and Improvement projects

• Coach the M&E team by conducting a

pilot M&E initiative for an Improvement

project


• Provide best practice guidelines on how Coke run their business including combining operational measures with market data and tracking improvement projects

Activities


• Post implementation analysis on

requirements to get RED live in

Tanzania including timeline, approach,

training, system revamping, etc.

• Executive Level Scorecard • Metrics Dictionary

• Description (quant. vs. qual.) • Algorithm & Aggregation Rule • Processor (M&E) vs. Owner (Directorate) • Frequency of data collection

• Revised M&E Manual

• Improvement Projects Tracker

• Master Plan of Current Improvement Projects

• Process manual on partnership agreements

with third party development orgs.

• Capacity building within M&E team to

independently roll out organization wide

monitoring and evaluation initiatives

• Leverage learning from RED framework on optimal number and complexity of metrics to use in a fast moving environment

Stage 1 Design

Executive

Scorecard

Stage 2 Define M&E

Governance

Framework

Stage 3 Pilot & Planning

for M&E

Implementation


KPI Dev. Workshop

Create Strategy Map

Kick-Off

Project Roadmap

38

Stage 1: Develop Scorecard Pre-mob

Week 1

• Confirm

strategic

intent

• Finalise

scope

• Define

project

plan

Stage 2: Define Governance Framework

Executive Score-card & Governance Framework

Design process for Root-Cause Analysis & continuous improvement

Redefine monitoring & reporting process

Stage 3: Implement Pilot

Setup process and actions for pilot

Month 4


MS

D m

an

ag

e a

nd

im

ple

me

nt

PM

Sys

tem

Define dept. level accountability

Create KPI Dictionary

Create partnership agreements with 3rd parties

Month 3 Month 2 Month 1

Review

RED

Exec. Scorecard

Design

Revised

M&E

Manual


Balanced Scorecard: Background and Rationale

• A balanced scorecard allows executives to keep a pulse of the business at all times by focusing on the ‘right’ metrics that are a weighted balance to all the key levers of the business

• Balanced Scorecard is a balanced view of

organizational performance and typically there are 4 quadrants to track:

• Value • Operational Excellence • Suppliers & Customers • Organization & People

• The balanced scorecard strikes a balance

between “quality & productivity”, “efficiency & effectiveness”.

• What are the critical success factors in each

of the four scorecard perspectives?

• What are the key measurements that will tell us whether we’re addressing those success factors as planned

The Balanced Score-card Perspective

Value

Sup./Cust.

Org. & Ppl.

Op. Excel.




Agenda for Today

40




9:45 – 10:30


10:45 – 11:30







Lunch Break

Coffee Break

Coffee Break

Copyright © 2012 Accenture All rights reserved. 41

Yale Presentation

Copyright © 2012 Accenture All rights reserved. 42

Afternoon Session




Agenda for Today

43




9:45 – 10:30


10:45 – 11:30







Lunch Break

Coffee Break

Coffee Break

44 44

Understanding O&SP Challenges



Welcome to the Supply Chain Game

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• Please do not touch the board or any of the pieces yet!

• Teams of 4 people

• Each table has a facilitator

• The 2 hour slot will comprise:

• 15 minutes introduction & rules

• 1 hour playing game

• 45 minutes wrap up & lessons learned


The Supply Chain Game: A brief History

The Supply Chain Game is based on a game called “The Beer Distribution Game”

that is used in Supply Chain training courses around the world.

46

Created

● Professors at MIT Sloan School of Management in the 1960’s

● To demonstrate key principles of supply chain management

Spread

Used today at top universities and Supply Chain and Management Programs to demonstrate:

● Supply Chain Collaboration

● System Dynamics

Adapted

● For today’s workshop

● Demonstrate MSD specific challenges

Game Objectives

o Gain an insight into some of the pitfalls of supply chains

o Learn and experience the rationale behind some of the concepts behind Operations & Supply Planning


The Simulation

• Each table represents an international Stethoscope supply chain,

from raw materials to consumer.

• We will play in turns. Turns represent time passing.

• Everyone plays a different role, but all players have the same

steps.

• Consumer demand is received by the retailer. Orders are placed

upstream (to your right) and actual stethoscope are received

downstream (from your right.)

• Your goal is to meet your customer demand while minimizing

your inventory and backorder costs.

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Orders Flow Upstream

Stethoscopes Flow Downstream

Copyright © 2012 Accenture All rights reserved. Copyright © 2012 Accenture All rights reserved. 48

Order

Flow

Material Flow

Orders Sold to Customers

Raw Materials from Suppliers

The Board


The Board

The 4 big boxes represent warehouses for each entity in the supply chain.


The Board

The 4 trucks along the bottom represent transportation delays in the supply chain.


The Board

The 4 boxes along the top represent order delay.

Order

Flow


Your Materials

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You should have in front of you:

1. One Pencil

2. One Inventory Tracking

Sheet

3. Post-It Notes for

placing orders


What are we shipping?

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Small Paper Clips

Large Paper Clips

Colorful Paper Clips

1 Stethoscope

5 Stethoscopes

10 Stethoscopes

Remember to ship your stethoscopes in a box!

The board is specially set up to be a supply chain – in progress.

Please do not touch them yet.


5 Steps in Each Round

During each round you will:

1. Receive inventory

2. View orders from your customer

3. Ship orders to your customer

4. Write down your inventory level

5. Place orders for more supplies to your supplier

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1. Receive inventory:

With your right hand, take the

inventory from the truck to your

right and put it in your

warehouse.

DISTRIBUTOR Shipping

delay

Incoming Orders Order Placed


Shipping

delay



delay



2. View your

customer’s orders:

With your left hand, pick up

the order on your left that

came from your customer.

Shhhhh… Don’t show

anyone your order!

1

Shipping

delay



delay

Shipping

delay

1



3. Ship Orders to

Customer

Use the inventory in your

warehouse to fulfil your

customer’s order by

moving the inventory into

your delivery truck which is

to the left of your

warehouse.

Throw the order note away.



delay

Shipping

delay



4. Do a stock-

check:

Write down your current

inventory level.



delay

Shipping

delay



5. Create an order:

On the sticky side of a

Post It note, write the

number of stethoscopes

you would like to order.

With your right hand, put

the order face down, in the

order box to your right.

Shhhhh… Don’t tell

anyone your order!

2


How Do I Keep Score?

Reminder:

During each round, inventory or backorders will be counted

• 1 unit of inventory costs 1 point

• 1 unit of backorder costs 2 points

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Your goal is to meet your customer demand while

minimizing your inventory and backorder costs.


Basic Rules

1 – No talking between “different supply chain levels”

2 – Do not move ahead of the facilitator

3 – Hide your orders from your neighbors

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The facilitators are there to: • Answer questions

• Accept stethoscopes from the retailer

• Provide raw material supplies to the factory

• Stop you from cheating!


Quick Rules Sheet

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Rules

• No talking between “different supply chain levels” • Do not move ahead of the facilitator • Hide your orders from your neighbors Steps

1. Receive inventory 2. View your customer orders 3. Ship orders & backlog to customer 4. Record inventory and backlog (on provided sheet) 4. Place new orders


Backorder Pause

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If Order from Customer > Inventory In Stock, this is a backorder.

E.g.

Inventory Level: 4

Order from Customer: 5

New Inventory Level: -1

If you have enough inventory to only cover part of your customer’s

order, you ship what you can and record the backorder as negative

inventory.

If you don’t have any inventory to fill your customer’s order, you ship

an empty box.

What if we run out of stock?

On your sheet, backorders are recorded as negative

Inventory


Backorder Pause

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Backorders are cumulative. You must fill the backorder as soon as you can.

E.g.

Inventory Level: -4 (backorder because it’s negative)

Order from Customer: 5

New Inventory Level: -9

The factory will always receive the exact amount of stethoscopes that it

orders - there is no limit.


Debrief

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Quick Rules Sheet

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Rules • No talking between “different supply chain levels” • Do not move ahead of the facilitator • Hide your orders from your neighbors Steps 1. Receive inventory 2. View your customer orders 3. Ship orders & backlog to customer 4. Record inventory and backlog (on provided sheet) 4. Place new orders


Think about it….

• How did you feel while you were playing?

• What went wrong?

• What assumptions were you making when you placed

your orders?

• How does this reflect real life?

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Your Experience

Erratic Demand

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What we saw…

Do any of these challenges from the game sound like real

life challenges at MSD?

• Don’t know consumer demand

• Departments within an organization not talking

• Trading partners not communicating

• Sales surges at end of period, demand swings

• Gifts in Kind - people “stock the pantry”


Erratic Demand at MSD:

O&SP Impact

O&SP drumbeat brings the right MSD players to the table on a regular

basis to learn from the past and be proactive about the future.

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Demand Supply

(Goods)

Supply (Funds)

Operational Strategy

Past Future

• Troubleshooting

• Root Cause

• Trends

• Actual vs Fcst

• Upcoming trends

• Upcoming

challenges

• O&SP Plan


Understanding O&SP Challenges Wrap Up

Over the next 7 months, the Core Planning & Procurement work

stream will implement O&SP from the foundation up.

Data

Roles

Rhythm

Tools

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Tools Recommendation for Network

Optimisation

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Before starting phase three, we should review progress in Phases 1

and 2 in enabling MSD to design routes and networks

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Phase One

Conducted end to end assessment of MSD’s routes and network in excel

Identified opportunities to improve supply chains to overcome stock-outs across the country

Piloted key Last Mile implementations

Phase Two

Built MSD’s ‘Last Mile’ capability for direct delivery roll –out to health facilities, as mandated by MoHSW

Baseline information captured in excel for speed of gathering

Prepared a tool kit in excel to replicate direct delivery to more regions

Phase Three Objectives

Drive further optimization of existing direct delivery routes to bring cost efficiencies:

Review of route and network mapping, and seek out ordering cycle synergies

3PL/4PL analysis based on lessons learnt from Last Mile operations for the past 1 year

Build capability within MSD to design and roll-out new direct delivery routes efficiently and effectively, as funds become

available from MoHSW

Excel has been the most effective way to gather data and achieve ‘quick win’ results

in past phases, but may not be the most sustainable option

Key Question: What tool is best suited to provide MSD with scenario modelling capability, to achieve optimum results in the quickest time?


The Llamasoft tool offers improved capabilities to model route and

network scenarios, and has become easier to use in recent versions

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Capabilities and limitations of current modeling approach

Capabilities Excel Llamasoft

Ability to handle large and complex models

Support data synthesis and aggregation

Ability to solve model vs. heuristic approach

Service level optimisation

Multi mode transport modelling

Multi drop transport modelling (Pseudo-

Routing)

Inventory modelling

Constraints modelling

Sensitivity analysis

Reporting capabilities

Ability to model global geography

Very high Medium Low Very low High

Llamasoft

Complemented by Excel

Ideal Tools

Re-Use of Existing Tools

• Excel data capture templates could be re-used to complement Llamasoft

• Llamasoft can be used to run multiple potential scenarios and select the optimum result, this cannot be achieved

efficiently using excel as the processing tool

Outcome: MSD will able to build new direct delivery routes that are better optimized using Llamasoft


Llamasoft is the current preferred tool for USAID. Compared to other

network modeling tools, Llamasoft has three distinct advantages

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Dynamic network models will allow MSD to predict very accurately how well a design will

perform over time, in a variety of metric categories, such as inventory level, cycle time

measurement, warehouse fill rate, and detailed costing.

Multi Time Period modeling

Llamasoft will enable MSD to determine the optimal stock keeping points (network

nodes) as well as the optimal inventory levels (including safety stock) over time.

Integrated Network and Inventory modeling

With simulation functionality MSD will be able to modify critical parameters (e.g. service

levels, shipping frequencies) and to test the supply chain performance (e.g. safety stock

levels) and understand the potential impacts of risks to the supply chain and to support

the definition of mitigation strategies.

Simulation


Llamasoft offers advantages, but its use is subject to cost constraints

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Costs of Llamasoft

Llamasoft’ s License cost would be approximately $35,000/year for the first year

Up to 3 users, one per Zonal Cluster

Includes 15 Llamasoft consulting days to support MSD users long term

Disadvantages of Excel

The Phase Two Excel Model is an unsupported tool

Excel will not have the same scenario modeling capability to allow such thorough optimization

Excel will not have such a user-friendly interface as a commercial off the shelf application

Suggested Next Step:

Organize meeting next week between MSD,USAID, JSI and ADP to conclude the way forward in tool selection:

What has been the experience of using Llamasoft for other programmes, are the user-friendly benefits worth the

cost?

What has been the success rate in training users on the more sophisticated capabilities?

Are there any options for leveraging the standing agreement for USAID’s use of the Llamasoft tool to reduce costs?

What is an acceptable ongoing usage budget that MSD or others can sustainably fund?

Decision Making Factors and Next Steps

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Progress To Date on Balanced

Scorecard Design

76



The Monitoring and Evaluation workstream has so far included two

sessions to begin the Balanced Scorecard design and a field trip to

Mwanza Zone

Key Findings: Few quantitative metrics are available and reported on a regular

schedule, and in some cases inappropriate proxy measures may mislead

Challenge 1: Data Exists, but is not monitored and reviewed on a regular schedule

Avg. Stock-out

Rate of gt. 70%

Q1: Jul – Sep 2011; Q2: Oct – Dec 2011; Jan – Mar 2012

Sto

ck-o

uts


The Monitoring and Evaluation workstream has so far included two

sessions to begin the Balanced Scorecard design and a field trip to

Mwanza Zone

Key Findings: Proxy metrics available in the system are often not the right measure

and lead to misleading interpretations

Challenge 2: No systematic approach to verify and track orders demanded vs.

orders that were fulfilled

Metric Proxy Data Issue

Order Fill Rate Fill rate reporting doesn’t reflect the impact of substitutions

Demand Forecast Forecasts for Demand Planning are based on Sales, not ‘Raw Demand’

R&R

Order Form Sales

Invoice

Rept. Fill Rt. 85%

Act. Fill Rt. 40%


The Balanced Scorecard will address these issues by creating a

comprehensive, yet concise, set of metrics and defining how they

are calculated

Org. &

People

Supplier &

Customer Value

Operational

Excellence

Balanced

Perspectives

MSD’s Nine Existing Strategic Objectives

1. Increase stock availability from 90% to 95% for catalogue

items up-to June 2013 (catalogue items are a collection of

‘must have’ items*)

2. Improve performance efficiency from 90% to 95% by June

2013

3. Improvement of ICT systems from 80% to 100%

4. Improve communication with clients and stakeholders from

80% to 95%

5. Improve HR and QA functions from 74% 100%

6. Improve MSD business segments financial viability from

80% to 100%

7. Strengthen ILS program from 30% to 100%

8. Increase zonal presence from 60% to 75% by making

organizational adjustments

9. Expand market base by 20%

Objective

• To select a mix of metrics that provide a balanced view of the organization across the 4 quadrants: Value, Supplier &

Customer, Operation Excellence and Organization & People

• To focus on a few vital metrics that are SMART (Specific, Measurable, Achievable, Relevant and Timely)

• By providing a limited set of key metrics, encourage focus and follow-up amongst the MSD EMT

Approach Review of MSD’s strategic objectives listed in the Annual Business Plan FY 2012/13 and classify into corresponding

quadrants


Strategy Maps will be created to breakdown the MSD Objectives

into the key Value Drivers that can be measured. This analysis

allows design of a comprehensive yet concise set of metrics

Order Process

• Inflexible lead time

• Long Port clearing process

• Inflexible contract mgmt.

• Drugs out of date

• Non-optimal use of space

• Delay at Delivery

• Inflexible policies and guidelines

stipulated by MoH

• Inaccurate forecasts by zones

• Lack of consumption data

• Lack of quality measurement

• Long procurement procedures

• Information silos

• Lack of Funds

• Low Cash Flow and WC

• Lack of performance based

incentives

• Lacking necessary skillsets

• Lacking the required

infrastructure at health facilities

Strategy Maps illustrate cause and effect relationships, which helps select metrics

Financial Mgmt.

Storage & Delivery

Training

Supplier

MSD Objective 1 Increase stock availability from 90% to 95%

Strategy Map

Value

Drivers

MSD

Objectives

1 to 9

Cause-

effect

relationship

Using this example, a limited set of metrics can be selected, which relate to each of

the quadrants in the Scorecard to achieve balance

Org. &

People

Supplier &

Customer Value

Operation

Excellence

Balanced

Perspectives

Is metric SMART? • Specific • Measurable • Achievable • Relevant • Timely

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Performance Management:

Motivation & Results

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The ‘Give’: Motivational Drivers

offered by the Organisation

The ‘Get’: Business Results

The Employee Value Proposition is a measurement of the balance between

what an employee receives from their employer in return for their performance

on the job; It is the "get" versus the "give.“

‘GIVE’

‘GET’

PERFORMANCE

MANAGEMENT

Performance Management:

Managing and monitoring the

relationship between the

‘give’ and the ‘get’.

Motivation & Results – The intrinsic link Financial reward


Employee Motivation – your view

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The following list are some key motivators for employees globally, across

different cultures and organisations..

Opportunities for career

development

Work/life balance

Level of responsibility

Non-financial rewards

Brand of the organisation

Financial reward

Type of work Recognition

Working atmosphere

Quality of leadership


Employee Motivation – your view

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How would you order these key drivers of employee motivation?

(Discuss in your group)

10 Mins


development

Work/life balance




Financial reward

Type of work

Recognition

Working atmosphere


1

2

4

3

5

6

7

8

10

9


development

Work/life balance




Financial reward

Type of work Recognition Working

atmosphere



Employee Motivation - study

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• A Global study* into employee motivation found the following results..

*Study by Mercer, 2011

• In order to achieve the desired business results it is imperative to

understand what motivates your workforce

Being treated with respect

Work-life balance

Type of work

Quality of people you work with


Base Pay

Motivating

Factors

1

2

3

4

6

5

• Note that non-financial factors play a prominent role - useful to employers

facing budget constraints.


Employee motivation – global views on ‘what matters at work’*

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Europe # 1: Base pay Italy # 3: Career

advancement

Netherlands # 3: Retirement savings or

pension plan

Spain # 3: Flexible work schedule

Ireland # 2: Job security

India # 1: Career advancement

Australia # 2: Type of work

Argentina, Brazil & Mexico # 3: Training

opportunities

Canada # 4: Working for a respectable

organisation

• Significant variety exists globally on what employees seek from their employer

• Globally, being treated with respect was the most important factor. followed by

work/life balance, type of work, quality of co-workers and quality of leadership.

*Study by Mercer, 2011


Tanzanian Motivators

• How would you rank the following from your working experience in Tanzania?

• Working in groups, use the cards on your table to order, and the blank cards to

add in any additional factors you think are missing?

• What are the outcomes?

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development

Work/life balance




Financial reward

Type of work Recognition ?

Working atmosphere


?

Opportunities for career development

Work/life balance



?


Financial reward

Type of work

Recognition

Working atmosphere

?


1

2

4

3

5

6

7

8

10

9

11

12


What we are doing to understand employee motivation at MSD..

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• The outcomes of your discussions in this session will be used as input in this research –

thank you!

…Today’s workshop!

Peer Educators

Employee Survey

Focus groups in each zone

HR workshops

Interviews with MSD

EMT

MSD & Accenture Development Partnerships Phase III

Documents

Transcript of MSD & Accenture Development Partnerships Phase III