eecs 26 11-2013 - the kracht project first results & conclusions
TRANSCRIPT
The KRACHT projectFirst Results & Conclusions
The KRACHT Project
Dr. Seth Maenen, Flanders Synergy
SEQUENCE / STEPS:1. Develop meaningful and sustainable industrial activity by redesigning value chains
2. Organize meaningful and sustainable jobs across the value chain
3. Give special attention to people with increased distance to the labour market
THE GOAL:← Shortage of Technical Craftsmanship
← Value Chain redesign to bridge the gap• Utilize available skills• Organize durable labor
← Availability of specific profiles• People with increased distance to labor market
Earlier experiences within organizationsThe transformation works
Traditional functional organizations
Innovative organizations
Environment typology:• Complexity of the Job• Variation of the work• Predictability of demand
LowLowHigh
HighHighLow
Profitability / performanceCoordination losses
Middle Management SqueezeAbsenteeism
Quality of Labor
Learning capability & Innovation
The question for KRACHT:does it work across organizations?
Traditional Value Chains
Innovative Value Networks
V.C. Participants• Dominant Player• Critical Player• Dependent Player• Stakeholder
Dominant player dictates the “heartbeat” and controls performance of individual players
Players co-operate in an open team towards optimal performance of the integrated value chain
Characteristics
Value Chain Losses:• Planning & scheduling• (mis)communication & systems• Buffers (inventory)• Overcapacity / Underutilization
• Flexible and optimal use of skills and capacity
• Common focus on the customer• Each Player avoids losses within the
value chain
Measuring value chain performanceA definition
• Economic performance– Customer Satisfaction – Supply Reliability– Profitability– Co-ordination Losses in the value chain
• Corporate Social Responsibility – Sustainability of the business and of the organization– Quality of Labor– Respect for stakeholder interests – Health, Safety & Environment– Employability of “people with limitations”
• “Total Value Chain Contribution”
“B-2-F workshops”:using KRACHT to create jobs in Flanders• Value Chain 1 - Greenfield:
5 cases of products / accessories / parts that currently are sourced “Globally”. Challenge to get these (back) to Flemish SME’s based on:– Competitive Costprice– Higher Return on Investment– Improved Customer Service
– Case 1:
• Value Chain 2 - Greenfield: Design and implementation of a new business model for logistics towards the Flemish market, later on to be expanded to the European market.
X 400.000 units
Cost Price Target -2€ Actual -6€
Invested Capital in the Value Chain
12 weeks 2 weeks
Customer Service Make-to-Stock Assemble-to-Order
Observations
• Multinationals are extremely “closed”– No “connection” whatsoever with Flanders (shut down Flanders)– Strict focus on own company goals, targets and processes– “Chauvinist Reflex” that overturns economic arguments
• Breaking the axiom of “customer-supplier relationships”– Value Chain Players are NOT customers/suppliers of each other. They are partners in
serving the actual end customer• The pitfall: “the customer is always right” = the supplier is always wrong• Impossible to define a common Value Chain goal by focussing on own individual profitability
– From closed to OPEN…• … innovation; … manufacturing, … competence management, … knowledge management, …
– Barrier to establish Local Autonomous Networks• Based on respect, trust and specific added value
• Sheltered Workshops moving in the wrong competitive field– Competition on activities of other suppliers, not based on own added value or exploiting
specific skills of their worker population,….– Price competition based on subsidies, not on actual performance
First Results
• Focus on businesses with sufficient decision autonomy in Flanders– Proximity is vital (Allen Curve)
• Definition of a “Value Chain Goal” is possible– Based on identification with the product and identification with the customer– Individual profit orientation must be expressed
• Working in “local autonomous networks” does work.– Product Design and Process Design become one and inseparable.– Innovation comes as a free bonus
• Way of working to develop LANs must be tailored on specific situation– Role of “dominant player” is crucial. Sets the “boundaries”– “Greenfield” is safer than “Transformation” (nothing to loose)– Currently: short specific workshops / Possible: search conferences
Next Steps
• Define a standard measurement of value chain performance
• Multiply to other cases and value chains
• Test B2F method for “Transition”-projects
• Refine Analysis-tool, together with Flanders Synergy
• Abstract approach towards methods, techniques and tools for generic use,
together with Flanders Synergy