Bill Clinton Vice President - Merchandising Process Management
Bill ClintonVice President - Merchandising
Process Management
Process Management
• Learning Objectives– Work Systems Design– Key Work Processes– Work Process Design– Work Process Management
• Process Improvement– Results
• Design and Innovate– Strategic Planning Process
• Strategic Objectives• SWOT• Stakeholder Key Requirements (SKRs)• Customer Complaint Management and Continuous
Improvement Projects– Modern Management Practices
• ISO 9001• Lean• Six Sigma• Baldrige Business Model
Work Systems6.1 a
Merch - andisingMerch - andising LogisticsLogistics
Workforce Focus
Workforce Focus
Order TakingOrder TakingMarketingMarketing
Facility & Equipment
Mgmnt
Facility & Equipment
Mgmnt
Performance Excellence
Performance Excellence
Information Systems
Information Systems
Financial ServicesFinancial Services
Key ProcessesKey Processes
Support ProcessesSupport Processes
Work Systems6.1 b
LogisticsLogistics
StockingLAP-5
StockingLAP-5
Damaged Product
Damaged Product
Tote FixingTote
Fixing
StockingStocking
Stocking Admin
Stocking Admin
Cycle Counting
Cycle Counting
Department Process
Section Processes
Area Processes
SlottingSlotting
Work Systems6.1 b
• Emergency Readiness– Integrated Contingency Planning
• Business Continuity Planning• Disaster Recovery Planning• Risk Analysis (Severity and Likelihood)• Recovery Time Objectives
Work Systems6.1 c
– Develop Action Plan • POSEC
– Plan – Organize – Staff – Execute - Control
– Stakeholder Requirements• Strategy to Meet Stakeholder Key Requirements• Measurements• Goals and Benchmarks• Process Documentation• Process Deployment and Training
Work Processes6.2
• Identify the process strategy• Template for process development• Identify Stakeholder requirements• Identify interrelated processes
Process Summary 6.2 a
Work Instructions 6.2 a
• Where the hands-on work happens• Step-by-step guide to the process• Complexity depends on the process
Section Performance
Measure
Section Performance
Measure
Company ScorecardCompany Scorecard
Department Scorecard
Department Scorecard
Area Process Measures
Area Process Measures
Supervisor Daily ReviewSupervisor
Daily Review
Monthly SLT Review
Monthly SLT Review
Monthly Review with
President
Monthly Review with
President
Monthly DLT Review
Monthly DLT Review
Process Management 6.2 b
MidwayUSA Process Balanced Scorecard
Key Process 20092010 YTD
Area Process Measures2010 YTD
February/Q1
Marketing 99% 97%
Web Marketing 88.5% 88.5% Publications 100.0% 100.0% CRM 99.2% 99.2%
Sponsorship, Advert & PR 90.7% 90.7% GunTec 99.0% 99.0% Training & Development 100.0% 100.0%
Logistics 93% 99%
Stocking 100.0% 100.0% Repack 94.0% 94.0% Receiving 99.0% 99.0% Shipping 100.0% 100.0% Warehouse 100.0% 100.0% Product Control 100.0% 100.0% Returns 100.0% 100.0% Training & Development 100.0% 100.0%
Process Management 6.2 b
LO Process Scorecard Today’s
Date: 3/1/10
Area ProcessSection Process
Measures2009 2010 YTD February Q1EOY Actual Goal Actual Goal
Shipping Same Day Shipping 98% 99.5% 99% 99.4% 99% Stocking Cost per Invoice $1.55 $1.51 $1.52 $1.51 $1.52 Cost per Line $3.31 $2.94 $3.00 $2.94 $3.00 Stocking Cycle Time N/A Coming Coming Coming Coming
Repack Cost per Invoice ($0.65) $0.52 $0.52 $0.00 ($0.65)
Repack Labor Variance 22.4% -11.2% +/- 10% 0.0% +/- 10%
Receiving Cost per Invoice $1.37 $1.34 $1.34 $1.00 $1.34 Cost per Line $3.77 $3.69 $3.64 $3.00 $3.64 Receiving Same Day 99.4% 98.4% 95.0% 0.0% 95.0%
Process Management 6.2 b
Sample Data
Shipping Process Balanced Scorecard
Section Process Measures 2008 20092010 YTD Feb-10
Actual Goal Actual Goal
Quality Shipping Pkg QA 1699.7% 99.9% 99.5% 99.9% 99.5%
Shipping Accuracy 96.79% 97.3% 95.5% 97.5% 97.4% 97.0%
Picking Success n/a 98.9% 99.2% 99.0% 99.3% 99.0%
Batch Pick Success n/a 99.80% 99.9% 99.0% 99.9% 99.0%
Service Same Day Shipping 98.29% 98.9% 99.8% 99.0% 99.8% 99.0%
Cost Cost per Invoice $4.80 $3.62 $3.62 $3.62 $3.59 $3.62
Dir Labor $$ per Inv $2.00 $2.00 $2.15 $1.98 $2.15
Ship QC Invoices / Hr 20 26 37 30 39 30
Picking Lines / Hour 137 163 163 160 180 150
Process Management6.2 b
Sample Data
Individual Performance Measure: Charlie HestonArea Process Section Process
Measures2010 YTD February/2010
Actual Goal Actual Goal Stocking Stocking Lines / Hour 20.1 15 NA 20
Receiving Rcvng to Cart LPH 32 30 32.8 30
Product Control Physical Inventory Training
Yes NA NA NA
Shipping ShipQC Lines / Hour 38.64 30 39.6 30 Picking Lines / Hour 245 150 267 150 Picking Error Rate 3.20% 3.00% 2.70% 3.00% Shipping Pkg Quality 79.70% 79.50% 80% 79.50%
Training & Development Reliability 98.68% 97.40% 98.00% 97.40% Job Knowledge 15 10 15 10Process Mgmnt CoC Violations 0 0 0 0
Process Management 6.2 b
Sample Data
Process Improvement 6.2 c
• Identifying the need – Monitoring, Measurement, and Review– Strategic Planning Process– Development of Action Plans to achieve
Strategic Objectives– SWOT– Customer Complaint Management Process
• Improvement Tools– Lean Projects– Six Sigma Projects– Action Plan Charters
Results 7.5
Lean Project Implementation
Sample Data
Results 7.5
Lean Project Implementation
Sample Data
Results 7.5
Bringing it all together…
Questions?
Thank you!
Our best wishes to you in your pursuit of performance excellence!
For more information:
www.AmericaNeedsBaldrige.com