scmassessment

7/31/2019 SCMAssessment

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SCM Process Assessmentand Evaluation

Al BukeyP. Eng., CFPIM, CIRM

ABCAN CONSULTING Inc.www.abcanconsulting.com


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INTRODUCTION

Started from a need to have standard business practices for all facilities ofa large corporation

Turn into a SCM Assessment and Evaluation program for manufacturing

The program assesses SCM capability of each location (site), thenevaluates as is against the desire to be while comparing it with best

of class practices creating the gap.

The summary evaluation provides a degree of SCM capability that exist ineach facility.

The evaluation provides guidelines and action plans to the company toshow how to close the gap.

This presentation explains how the evaluation and assessment has beenapplied at various companies.


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SCM Alignment Requirements

Processes

PeoplePrograms

Aligns the elementsto maximize benefits

Business Processes

Organization and Skills Technology and Tools

/

Business Processes: Shift from As Is to To be

Technology and Tools: Competitive necessity

COO CFO CTO

CEO

Organization : Competitive advantage, peopleappreciates over time


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Business Processes

Organization and Skills Technology and Tools

End goals of the program:

World Class Business process alignment across the companyA learning culture with continuous improvement

Application of appropriate technology, programs and tools

Maximized benefits of company resources

Desired Corporate Results


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Result

The result of the evaluation is the gap and agreed upon roadmapto improve SCM operations. Results are shared with managementand presented to company at different levels as required.

Deployment of the roadmap is the next step.

Deployment includes re-engineered process mapping and processflow.

Processes

Roadmap to SCM

Processes Alignment

Best Practices Deployment


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Process Challenges HOW?

What do we know about SCM processes?

Current business practices and known issues aroundthose practices should provide opportunities (yes, thereare plenty of them!)

Performance of these practices can improve

Best practices of the processes are known (not a rocketscience anymore)

Gap between current and best practice exist, it must be

identified correctly Roadmap from current as-is to the best to be is to be

determined, agreed, and deployed


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SCM process alignment happens across the corporate

Building consistency and synergy creates great momentum

Establishing a reference platform, best practices makes

untapped resources available

Each site:

Identify the needs, weaknesses, strengths, risks and exposure

Analyze the gap and gap closing requirements

Establish an achievable road map with each site

Facilitate resources needed to achieve desired improvement

Deploy and establish standardization

Closing the gap has its advantage


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Executive View - 1

Methodology at corporate level

Finalize SCM categories and processes from a pre-defined template

Develop the assessment program and time table forindividual sites

Establish best practices and reference platform acrossthe organization

Compare SCM capabilities of individual sites across theorganization as well as world class applications

Determine a roadmap for deployment of action plans


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Executive View 2

Assessment Process at Site Develop, test and fine tune to conduct the assessment

Kick-off meeting with management

Evaluate the site and conduct as is vs. to be analysis for

each assessment question

Establish the action plan to close the gap for each

Generate color coded gap analysis

Establish a road map of SCM improvement with management

Summarize, review and share findings with site management


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Executive View - 3

Narrowed down scope

The program applies to any corporate with single/multiplesites

The processes are identifies as internal SCM practices

Integration across the company is one of the key

assessments Some engineering, development, sourcing and life-cycle

activities may be managed at corporate level. They are leftout of scope at this time

Assessed ratings with roadmap is the deliverable

Summary is presented to top management


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Manufacturing Enterprise Model

Corporate HQ

Product Line A Product Line B Product Line C Product Line D

Business

Division W

Business Division X Business

Division Y

FacilityFacilityFacilityFacility

FacilityFacility

FacilityFacility

SCM Process 1

SCM Process 2


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Automotive OEM Satellite Model

1st

Tier

2nd

Tier

2nd

Tier

2nd

Tier

2nd

Tier

2nd

Tier

2nd

Tier

1st

Tier

2nd

Tier

2ndTier

2nd

Tier

2nd

Tier

1st

Tier

2nd

Tier

2nd

Tier

2nd

Tier

2nd

Tier

Tier0.5


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Enterprise Model- SCM Focus

Supplier 2

Supplier 1

Corporate

Consumer

Distribution Centre

ABCO

Customer

Mfg. Facility


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SCM Processes - Company Drivers

Strategic Objectives KPI target performance

New or existing initiatives

Known shortfalls

Customer and Supplier requirements

Assessor must have a real good understanding ofcompany objectives, drivers, programs, andstrategies exist. It will provide a better position tofacilitate the SCM Assessment and Evaluation.


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SCM Processes - Plan

PlanSource DeliverMake

Customer interface, corporate planning

Orders, forecast management

SOP, MPS, inventory management

Capacity planning,

Transportation & Logistics planning

SCM metrics, performance, staffing

Tools and documents


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ProcessesSource


Supplier setup, supplier contracts Supplier delivery schedules, EDI capability

Sourcing, purchasing, etc.

Global acquisition, local procurement

NCM and RMA process

Receiving, inspection, warehousing

Supplier delivery performance, staffing

Tools and documents


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ProcessesMake


Item Master, BOM, work centers, routings

Shop orders, line scheduling, capacity calc.

Material pull and manufacturing processes

QA, MRB and ECO management

WIP management

Volume change flexibility

Production performance

Tools and documents


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ProcessesDeliver


Packaging, Delivery

Warehouses & Distribution

Carriers & Logistics

Invoicing and A/R

Returns management

Order fulfillment performance,staffing

Tools and documents


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Assessment Questions

Each SCM Process is a summary of multiple

individual assessments

Each individual assessment has multiple questionsasked to qualify/verify/evaluate the subject.

For example:

MRP Process of Make has 21 Assessments withmore than 60 individual questions to evaluate

Each one of the 21 Assessments gets a gradeMRP process is then graded out of possible points


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Evaluation & Grading Levels

Red Less than 20% of possible outcome

Yellow Less than 50% of possible outcome

Blue Less than 80% of possible outcome

Green More than 80% of possible outcome


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Assessment Summary: Value is provided bythe experienced assessor

A sample evaluation form goes here!


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Milestones

4 - 8 weeks

1 3 months

3 months 2 years

2+ years

Assessment &

Gap Analysis

Comprehensive

RoadmapPlan for Gaps

SCM Process

Deployment &

Alignment

Continuous

Progress &

Performance

Phase 1

Phase 3

2 weeks

Process

Development

& Kick-off

Phase 2


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SummaryLessons learned:

This is not a pass or fail grading nor a race between sites, rather

an improvement opportunity

Self assessment did not yield desired results

Some processes require strict procedures attached to it

Some process are very straight forward but still applied

incorrectly go figure! Some very unique processes exist in each organization or site

Experienced professional (consultant) provide great value forassessment and roadmap

Deployment requires resources but benefits may be dramatic.

many more

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