lean and agile vision 1 © the delos partnership 2003 vision and strategy setting the framework
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Lean and Agile Vision 1 © The Delos Partnership 2003
Vision and StrategyVision and Strategy
Setting the Framework
Lean and Agile Vision 2 © The Delos Partnership 2003
The Delos ModelThe Delos Model
VisionVision
StrategyStrategy
PrioritisationPrioritisation
InnovationInnovationDemandDemand
SupportSupport
SupplySupply
Lean and Agile Vision 3 © The Delos Partnership 2003
Key DimensionsKey Dimensions
• Market discipline/Value proposition
• Product Portfolio
• Make/Buy
• Organisational
• Customer Relationships
• Supplier Relationships
• Performance Measures
Lean and Agile Vision 4 © The Delos Partnership 2003
Value PropositionValue Proposition
StrategyStrategy Now Future
Operational Operational ExcellenceExcellence
Customer Customer SolutionsSolutions
Product Product LeadershipLeadership
Total = 100 %Total = 100 %
Lean and Agile Vision 5 © The Delos Partnership 2003
Product MappingProduct Mapping
• Volume • Demand variability • Demand lead time• Variety• Product Life Cycle• Margin (profitability)
Lean and Agile Vision 6 © The Delos Partnership 2003
Volume Clusters Volume Clusters
A B
‘Runners’
‘Repeaters’
‘Strangers’
SA
LE
S
PRODUCTS
C
Lean and Agile Vision 7 © The Delos Partnership 2003
ABC AnalysisABC Analysis
80 % of our products account for 200 % of our profits; it is the other 20 % that account for -100 % of the profit.
Would an Activity Based costing analysis get rid of them ?
-100
-50
0
50
100
150
200
% of Profit
A Class
B Class
C Class
Lean and Agile Vision 8 © The Delos Partnership 2003
Customers are coreCustomers are core
MD
SalesSales MarketingMarketing TechnicalTechnical OperationsOperations FinanceFinance HRHR
R& D
R& D
MKTG
MKTG
SALES
SALES
OPS
OPS
ACCTS
ACCTS
HR
HR
Directors
Managers
Supervisors/Team Leaders
CustomerIntimate
Outsource
Lean and Agile Vision 9 © The Delos Partnership 2003
Product Excellence is coreProduct Excellence is core
MD
SalesSales MarketingMarketing TechnicalTechnical OperationsOperations FinanceFinance HRHR
R& D
R& D
MKTG
MKTG
SALES
SALES
OPS
OPS
ACCTS
ACCTS
HR
HR
Directors
Managers
Supervisors/Team Leaders
Product Leader OutsourceOutsource
Lean and Agile Vision 10 © The Delos Partnership 2003
Operational Excellence is Operational Excellence is corecore
MD
SalesSales MarketingMarketing TechnicalTechnical OperationsOperations FinanceFinance HRHR
R& D
R& D
MKTG
MKTG
SALES
SALES
OPS
OPS
ACCTS
ACCTS
HR
HR
Directors
Managers
Supervisors/Team Leaders
OperationalExcellence
OutsourceOutsource
Lean and Agile Vision 11 © The Delos Partnership 2003
Process Based Process Based OrganisationOrganisation
MD
SalesSales MarketingMarketing TechnicalTechnical OperationsOperations FinanceFinance HRHR
R& D
R& D
MKTG
MKTG
SALES
SALES
OPS
OPS
ACCTS
ACCTS
HR
HR
Directors
Managers
Supervisors/Team Leaders
Innovation Process Owner
Demand Process Owner
Supply Process Owner
Lean and Agile Vision 12 © The Delos Partnership 2003
Customer/Supplier Customer/Supplier RelationshipsRelationships
VisionVision
StrategyStrategy
PrioritisationPrioritisation
InnovationInnovationDemandDemand
SupportSupport
SupplySupply
VisionVision
StrategyStrategy
PrioritisationPrioritisation
InnovationInnovationDemandDemand
SupportSupport
SupplySupply
VisionVision
StrategyStrategy
PrioritisationPrioritisation
InnovationInnovationDemandDemand
SupportSupport
SupplySupply
Shared Vision and StrategyShared Vision and StrategyCommon Goals and ObjectivesCommon Goals and ObjectivesSynchronised Demand FlowSynchronised Demand Flow
Shared Vision and StrategyShared Vision and StrategyCommon Goals and ObjectivesCommon Goals and ObjectivesSynchronised Demand FlowSynchronised Demand Flow
Our organisationOur organisationSuppliersSuppliers CustomersCustomers
Lean and Agile Vision 13 © The Delos Partnership 2003
The Delos Core MeasuresThe Delos Core Measures
1. Customer Order Delivery – the “Perfect Order”
2. Demand Forecast Accuracy
3. Lead Time Reduction - Demand, Supply and Change
4. Quality, Right First Time – Demand, Supply and Change
5. Schedule Achievement – In-house and outsourced
6. New Product Introduction
7. Velocity – all processes
Lean and Agile Vision 14 © The Delos Partnership 2003
The Core Measures and Financial The Core Measures and Financial EffectEffect
Lean and Agile Vision 15 © The Delos Partnership 2003
ProblemProblem
SUPPORTSUPPORT
FINANCIAL IMPLICATIONSFINANCIAL IMPLICATIONS
CHANGESCHANGES
DEMANDDEMAND
FINANCIAL IMPLICATIONSFINANCIAL IMPLICATIONS
FunctionalFunctionalAgendasAgendas
FINANCIAL IMPLICATIONSFINANCIAL IMPLICATIONS
SUPPLYSUPPLY
Lean and Agile Vision 16 © The Delos Partnership 2003
Team SolutionTeam Solution
CHANGESCHANGES
SUPPORTSUPPORT
DEMANDDEMANDSUPPLYSUPPLY
BUSINESSBUSINESS IMPLICATIONS IMPLICATIONS
IntegratedIntegratedPerspectivePerspective
Lean and Agile Vision 17 © The Delos Partnership 2003
Creating the FrameworkCreating the Framework
1. Focus on Core Products and Customers
2. Focus on Strategic and core competency
3. Establish co-operative relationships4. Measure the right things5. Develop teamwork, and not functional
silos