supply chain insights llc copyright © 2015, p. 1 continuous improvement study summary charts july...

Supply Chain Insights LLC Copyright © 2015, p. 1

Continuous Improvement Study

Summary ChartsJuly 2015


Agenda

Study Overview

Continuous Improvement Overview

Continuous Improvement Performance

Supply Chain


Study Overview


Respondents Primarily Work for Manufacturers; Average Company Size Is $5 Billion in Revenue

and 14K Employees


Nearly Two-Thirds Work in a Discrete Industry


Respondents Are Primarily in Supply Chain or Finance Roles


Two-in-Five Are Managers/Leaders of Continuous Improvement Processes and All Are Familiar with Them


Those in Supply Are More Familiar with Continuous Improvement Process Than Those in Finance


Agenda

Study Overview



Supply Chain


Summary of Continuous Improvement Processes


Definition Given to Respondents


Respondents Report Having an Average of 105 Processes;Kaizen Events Are Most Common


Those in Discrete Industries Report Having MoreIndividual Processes, Especially Kaizen Events

and Lean Processes


Those Who Rate Their Most Familiar Process as HighPerforming Also Have More Processes Overall


Kaizen Events and Lean Processes Arethe Most Familiar Processes Asked About


No Difference by Role in Terms of ProcessMost Familiar With


Companies Have Been Working on Most Familiar Process for 4 Years on Average


An Average of 8 Full-Time and 3 Part-Time EmployeesWork on the Most Familiar Process


Over Half of Most Familiar Processes Reach Across theOrganization; Manufacturing Is Most Common

Functional Area Reached


Agenda

Study Overview



Supply Chain


About Two-Thirds Report Their Company Is Performing Well on the Most Familiar Process


Generally Equal Assessment of Performance by Roles


Strengths and Weaknesses of Most Familiar Process


Performance Profile: Company Details


Performance Profile: Process Details


Expected Impact and Actual Performance of MostFamiliar Process Line Up in the Same Order, into

Three Tiers


Top Expected Impact and Performance:Quality Improvements, Profit Increase, WIP Cost Reduction

and Waste Reduction


Greatest Performance Gaps vs. Expectations:Quality Improvements, Profit Increase and Speed to Market


Those in Supply Chain Are Slightly More Likely Than Finance to Report Process Performs Well on Inventory Reduction

and WIP Cost Reduction


Process Managers/Leaders Are More Likely Than Othersto Report Process Performs Well on Quality Improvements


Over One-Third Report Most Familiar Process IsMore Important Than Last Year


Why Process Is More/Less Important ThanLast Year (Open-Ended)


Over Half Have a Center of Excellencewith 5 Functions on Average


Those Who Rated Their Process Higher Are More Likely to Have a Supply Chain Center of Excellence


Three-Quarters Report Center of Excellence IsEffective at Driving Continuous Improvement Processes


Respondents Are Split on Whether Calculating Cost ImpactIs Easy or Difficult


Those Who Rated Their Process Higher Are More Likely to Have an Easier Time of Calculating

Cost Impacts


Three-Quarters Report Company Considers Cost Savings as Definitive Changes to the Operating Budget


Agenda

Study Overview



Supply Chain


Nine-in-Ten Have a Supply Chain Organization,with an Average of 5 Functions Reporting Through It


Nearly Two-Thirds Report That the Supply Chain Leader Reports to the President or a C-Level Executive


Nearly Two-Thirds Have a Group/Person Responsiblefor Design of End-to-End Supply Chain Processes


Top Elements of Business Pain:Cross-Functional Alignment and Talent Issues


Alignment Is Among Top Pain Across Roles

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