ClearGreenCPM Presentation

8/14/2019 ClearGreenCPM Presentation

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Performance ManagementWith The Earth In Mind


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Objectives Improves Competitiveness (IAR, Profit) Optimize the Utilization of Resources

(Productivity, IPY and Cash Tied Up) Improve Responsiveness to the Customer

Methodology TPM/AIM Transition Process

Measurements DPT Measurement Charts Transition Process BarometerTeam Activities

Obstacle Identification Root Cause Analysis Obstacle Removal WIP TIP Management Learning Cycles

Skills Required TPM Mindset/Understanding Problem Solving Abilities Use of LearningCycles

Tools Required Process Maps Pareto Charts TIP Management Techniques Root Cause Analysis (Fishbone) Dynamic Process Time Measurements Initial Pass Yield Disciplined Strategic Process

Competitiveness Improvement Team Develops Vision of Resource Optimization Drives and Forces Improvement Empowers the Organization

Leverages TPM in Marketplace

Input

Baseline Performance Resource Optimization Performance

Output

CPM Implementation Plan


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1. Identify each critical path processes

2. Establish the scope of each process3. Identify and bring together the key players

4. Validate scope and determine process boundaries

5. Map the relationship of the processes

6. Establish baseline performance

7. Determine value-added and non-value-added process steps andactivities

8. Remove non-value-added steps and create a resource optimization map

9. Determine measurements

Design the measurement system

Establish initial resource optimization goal

Identify the obstacles

Develop Cause and Effect diagram to find root cause obstacles

Rank-order root cause obstacles

Assign and schedule obstacle removal actions

Track progress through measurement systems

Process Management Road Map


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Process/Activity Road MapProcess Name

Scope

COST

IPY

PT

ProcessInputs

WhoDefines Reqts

Perform.Stds.

WhoDefines Reqts

Information

ProcessOutputsCustomersReqts

ResourcesWhoProvides Reqts

WhoProvides

InputReqts

OutputsReqts SubProcesses

WhoDefines

InputsReqts

OutputsReqts

ProcessMap

Process Map

Long Dock-to-Stock Cycle Time Example

MRB

Re-inspect

Search For

ECO

Request

Deviation

Wait

Request 2ndCopy

from Vendor

Request

Deviation

Search for P.O.

at Purchasing

PartNot

toSpec

ECOLate

Vendor Not

onAVL

Waiting

DeviationPartsRej.

at Incoming

Paperwork

Lost

P.O.Not

in System

System

Down

Batching

Order

StoppedReceiving

Causes

EffectLongCycle Time

in DocktoStock

Workaround

Processes/Resources

Workaround

Processes/Resources

8 Ms

Man

Money

MethodMachine

MaterialMotivation

ManagementMeasurement

Fishbone Diagrams

OBSTACLE REMOVAL

PRIORITIES WORKSHEET

Obstacle:

DIFFICULTY OF REMOVAL

IMP

ACT

OF

OBSTACLE

10

9

8

7

6

5

4

3

2

1

High

Low

Easy Dif ficult

1 2 3 4 5 6 7 8 9 10

Obstacle Selection

OBSTACLE RANKING WORKSHEET

PROCESS:

A

B

C

D

E

F

G

H

I

J

K

L

REMOVALDIFFICULTY

OBSTACLEIMPACT

WHOREMOVESOBSTACLE DESCRIPTION

Impact: 1= Low,10= High Difficulty: 1 = Easy,10 = Difficult

Obstacle Ranking

Problem Statement :

Program Goal :

Owner:

Key Action Items By Whom Completion Date

Averageinstallationprocess timehas increasedtosix timeof our best practicegoal.

Reduceaverageprocesstimeinstallations to threemonthbyyear end1997.

I d en t if y a ll p r od u ct s in W I P $ s ta tu s M gr . ./ Su p er v is o rs 3 / 11 /9 7S i gn o ff a l li ns t al ls > 1 5 0 da ys M gr . /S u pe r vi so r s Q 2 E NDSignoffa l l inst a ll a t ions> 120days Mgr./Supervi sors Q3 ENDSignoffa l l inst a ll a t ions> 90days Mgr./Supervi sors Q3 END

T H E C J 9 6 ' FE R P R Y J U J U L U G S E P C T E C J 9 7 ' FE R

I C SSI ST L L T I S 1 8 8 1 8 2 1 9 3 1 8 1 1 6 9 1 8 5 1 5 2 1 8 1 5 5 1 2 6 1 0 1 1 0 8 9 8 9 6

C L T I S T L LT I S 3 1 2 7 2 7 2 6 3 0 7 1 7 2 5 3 3 3 1 1 6 1 8 1 1 8

SELI E 6.1 6 . 1 6 . 1 6 . 1 6 . 1 6 . 1 6 . 1 6 . 1 6 . 1 6 . 1 6 . 1 6 . 1 6 . 1 6 . 1 6 . 1 6 . 1 6 . 1

B E S T P R A CT I C E 2 .0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0 2 . 0P LAN 6.1 5 . 9 5 . 7 5 . 5 5 . 3 5 . 1 4 . 9 4 . 7 4 . 5 4 . 3 4 . 1 3 . 9 3 . 7 3 . 5 3 . 3 3 . 1 2 . 9

YNAMICPROCESSTIM E 6 .1 6 .9 6 .9 7 .2 5 .8 3 .8 9 .9 6 .0 4 .6 4 .5 7 .1 5 .8 9 .4 12 .1

LONGESTCOMPLETEDINSTALLATION 8.1 1 2 .7 1 0 .7 1 4 .8 1 4 .2 1 4 .6 1 6 .0 1 5 .6 1 6 .7 1 4 . 8 1 4 . 3 1 9 . 6 2 1 . 3 9 . 4MEANCOMPLETEDINSTALLATIO NS 5 .4 4 .9 4 .6 5 .5 4 .6 4 .7 4 .3 6 .8 5 .4 5 .1 5 .8 6 .9 6 .3 6 .3

SHORTESTCOMPLETEDINSTALLATION 1.8 1 . 5 1 . 4 2 . 1 1 . 3 1 . 1 0 . 0 2 . 3 0 . 0 2 . 1 1 . 7 3 . 0 0 . 9 4 . 8

FO RECASTE DWI P 98 100 105PL ANNE DSH I P MENT S 13 14 11

PTFO REC AS T 12. 1 10. 3 10. 5 11. 0

CVDPRECISION 5000INSTALLATIONPROCESS TIME

(Shipthru Signoff Dates, Systems Only)

0

2

4

6

8

1 0

1 2

1 4

1 6

1 8

2 0

2 2

2 4

N O V D E C J A N

96'

F EB M AR A PR M AY J UN J UL A U G S E P O C T N OV D E C J A N

97'

F E B M A R

PROCESSTIME

(inmonths)

0

2

4

6

8

1 0

1 2

1 4

1 6

1 8

2 0

2 2

2 4

D YN AM IC PR OC ES ST IM E S HO RT ES TCOMPLETED INSTALLATION

M E AN C O MP L ET E D I N ST A LL A T IO N S L O N GE S TCOMPLETED INSTALLATIONBASE LINE B EST PRA CTIC E

PL AN D PT FORE CAST

BAS ELINE

BEST PRACTICE

P LA

N

Specific Action Plans

17

6

12

18

24

30

36

42

48

M J J A S O N D J F M A M J

B

E

Months

0

1

2

3

4

5

6

7


B

E

$M

5000

6000

7000

8000


1200

1400

1600

1800

$ K He ad c ou nt

o Sa les

x Hea dcount

15

20

25

30

35

M A M J J A S O N D J F M A M J

B

E

%

0

1

2

3


B

E

E

0

20

40

60

80

100


B

%

50

70

90

110

130

150

170

190


B

E

Da ys

0

10

20

30

40

50

60

70

80

90

100


B

E

%

IAR%

PRODUCTIVITY*

SALESANDHEADCOUNT

PRODUCTDEVELOPME NT PT

O RD ER M AN AG EM EN T P T N ET I NC OM E(Annualized)

ORDERMANAGEMENT IPY CUSTOMERSERVICEON-TIMEDELIVERY

*SALES- MATERIAL + PROFIT

TOTAL PEOPLECOSTS

Process/Activity

Indices

Sustaining Metrics

CPM Change Process Overview


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1. Culture constrains business process performance that in turn constrains

subject matter performance.2. Not removing culture and subject matter obstacles will create workaround

processes.

3. Obstacles/workaround processes often overlap and are sometimes mutuallyreinforcing.

4. Business Process constraints negatively impact energy conservation

1

1

2

2

3

2

CultureObstacles

WorkaroundProcesses

BusinessProcess

Obstacles

SubjectMatter

Obstacles Are Inter-related

4


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6

TIME

A High Leverage Business Processor Culture Obstacle is Removed

Baseline

An Improvement Stall SurfacesProblems to be Solved

Resource Optimization(Realizable Performance)

PR

OCESS

T

IME

Typical Experience Of Process Time Reduction


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ContinuousImprovement

& SystemEnablement

RealizablePerformancewith CurrentResources

Baseline Motivation

Categorization

Process Improvement Phase

Implementation

Training

Continuous Improvement& System Enablement

Embracement

Resource Optimization

GlobalCompetitiveness

TIME

Analysis

CPMThe Transition Process


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MOTIVATIONTo help critical decision makers and implementers understand thatTotal Process Management is the driver and result of makingbusiness competitive.

Exposure to Total Process Management Concepts.

Formation of multi-functional teams.

Regular meetings of teams and top management.

Meeting attendance.

Degree of commitment to Total Process Management program

How your carbon footprint is affected

The Transition Process


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TRAININGDevelop a Total Process Management mindset throughout the organizationand to provide the skills/knowledge to meet and maintain ResourceOptimization.

Employees receive in-depth training in Total Process Management

Plan to reach Resource Optimization.

Degree of Total Process Management mindset.

Demonstrated use of Total Process Management skill and tools.



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CATEGORIZATIONDetermine Baseline, Resource Optimization, and Obstacles tomeeting Resource Optimization, as well as quantifying theimpact of reaching Resource Optimization.

Baseline established and measurements defined.

Baseline" process map completed.

"Resource Optimization" process map completed.

Major obstacles identified.

Impact of Resource Optimization quantified.

Resource Optimization established.



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IMPLEMENTATIONAchieve Resource Optimization and ongoing obstacleremoval.

Regular measurements of dynamic process time and

initial pass yield

Progress to Resource Optimization in process time

Progress to Resource Optimization in initial pass yield.

Progress in obstacle removal.

Existence of feedback loops



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EMBRACEMENTCreation of a culture in the organization which depends on TotalProcess Management Methodology to remain competitive and

continuously improve performance.

Hierarchical measurements in place. Focus on business process, not functions. Continued results.



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Client Senior Management Implementation Team

Total Process ManagementCompetitiveness Improvement

Team (CIT)

Multi-Functional Teams(Composed of)

DesignEng.

OrderEntry

ProjectEng.

Forecasting

ProductAssurance

MaterialPlanning

MIS

Procurement

Manufacturing Customer Service/Product Support

HumanResources

ProgramManagement

Multi-Functional Teams Structure

MFTs create Obstacle Removal Teams (ORTs) as necessaryto remove specific obstacles.

Organizational Relationships


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DefineProcesses

InstallMeasuresTPMWorkshop

Establish

ImprovementObjectives

Embracement

1 WEEK 6 WEEKS 1 WEEK 4-10 MONTHS 2 MONTHS

TOTAL TIME = 8 - 14 MONTHS

Rapid Implementation Architecture

AchieveObjectives

Timetable to Achieve Improvements


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Top-down commitment - must have CEOs support ateach level.

Top-level active involvement.

Change through current operational managementstructure.

Involvement of outside objective team players withhands-on experience.

Well-trained internal implementers working with outsideassistance.

Frequent top management/outside change agent

obstacle removal meetings. Simplifying and revising measurements to minimum set

that drives competitiveness.

Communication, Communication, Communication.

What Works

Organizational Team Structure


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Self medication (typically stalls at 25% to 30% ofpotential).

Lack of top management involvement.

Assigning responsibility to internal staff as

leaders of Total Process Management culturalchange.

Continuing with todays measurements.

Program of the Year.

Edicts of performance change. Partial cultural changes.

What Doesnt Work


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Real-Life Solution Examples


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Problem Area:

Size of Opportunity: Solution Impact:

Enablers:

Reduced ECOs

Increased product gross margin by 7% Accelerated product time-to-market by 15days (x%) Increased first pass yield by 2%Increased accuracy and timeliness ofinformation for engineering and quickdecision making

Capture larger market share in industry

with short product life cycles and declining

product margins

Accelerate new product time-to-market

Reduce product development cost

Increase customer satisfaction

Improve pre-production yield

1

2

4

3

How do I effectively andefficiently collaborate with

customers, suppliers, andpartners in the productdevelopment process?

Integrated knowledge and team design

collaboration across global team

Integration of back office systems

Yield mgmt., yield failure and test failure analysis

Trend tracking and product alerts to engineering

Personalized user tools and information

Streamline qualification and handoff to

manufacturing

Automated data flows, full cycle accountability

Effective Collaborative Product Development

Eli i i E & Ob l I


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Problem Area:


Enablers:

Reduced total inventory by 20-30% Reduced inventory financing andcarrying costs > 25% Reduced Order-to-Cash time > 30% Shorter-time-to-ROI of targeted projects Clear ownership of enterprise-widemetrics

Match inventory levels with productiondemands

Eliminate excess and obsolete inventory

write-off cost

Reduce inventory holding costs

Increase sales by carrying saleable items

Increased cash reserves by reducing

inventory requirements

1

2

4

3

How do I eliminate excess andobsolete inventory?

Comprehensive, real-time global view

Inventory-based suggestive selling

process Alerts, decision analysis, and reporting

Bill of Materials data aggregation

Obsolesce management

Continuous KPI and account monitoring

Eliminating Excess & Obsolete Inventory

Eff i C M f i M


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Problem Area:


Enablers:

Reduced cost of goods sold by 10%

Increased inventory visibility by 40%

Reduced inventory days 4 days / year

Increased supplier performance levels

Increased ability to scale for biz growth

Reduced handling, shipping, and

transaction costs by 30%

Improve OTD by 20%

Reduce product procurement cost

Increase inventory turns resulting from JIT

replenishment from Contract Manufacturer

Increase sales resulting from increased

visibility to CM fulfillment capabilities

Reduce handling, shipping and transaction

costs resulting from increased accuracy of

communication1

2

4

3

How do I effectively andefficiently manage my contract

manufacturers?

Metric definition

Accountable buyers/planners/facilities

Clean data

Lower min/max settings

Good reporting tools

Formalized training program

Continuous KPI and Account Monitoring

Effective Contract Manufacturing Management

Gl b l & Ti l P f M it i


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Problem Area:


Enablers:

$100Ms reduction in parts inventory $10Ms reduction in Inventory Carrying

Costs

Reduced component and raw material

inventory

Revenue increase resulting fromimproved customer service levels

Reduce holding and write-off costs

resulting from increased component

Inventory turns while balancing

continuity of supply

Reduce liability for over-purchased

components at suppliers and partners1

2

4

3

How do I perform global andtimely performance monitoring

within and outside theenterprise?

Performance metrics tracking on buyer

Standardize purchasing methodology

Provide buyers with automated on-handinventory volume & value numbers by

part

Mandate Inventory allowance by volume

and value so buyers can manage excess

Global & Timely Performance Monitoring(Inventory & Fulfillment)


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Problem Area:


Enablers:

Decreased inventory levels by 5% Increased supplier number of supplierrelationships and ease of doing business > 20% reduction in sales cycle time > 10% reduction in costs of servicingsales > 25% reduction in order to cash cycletime

Increased OTD to > 98% to originalcommitment

Increase customer retention and total sales

Increase responsiveness to customer and

market opportunities requiring new capabilities

Reduce order processing administrative costs

Reduce inventory holding costs

Improve customer experience to result in

increased customer loyalty producing

increased revenue per customer

1

2

4

3

How do I effectively manageorders from Order through

Account Receivables?

Sales reports and forecasting Online promotional management Integration to supplier and partner

internal systems Quick quoting and self-serviceordering

Product data sheets and productsearch

Real-time stock status and orderstatus

Effectively Manage Order Capture Through Fulfillment

A t & Ti l D d Pl i


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Problem Area:

Size of Opportunity:Solution Impact:

Enablers:

Improved deal and product salesforecasting accuracy from 25% to 5%error rate

Reduction in inventory of 5%

Improved sales closing rates

Increase sales by ensuring that the rightproduct is available at the right time andat the right place Reduce inventory costs by accuratelypredicting demand Reduce risk of lost deals because ofproduct unavailabilityTransition from BTS to BTO or CTO1

2

4

3

How do I improve my demandplanning process?

Centralized and common global demand

planning and sales forecasting structure

Automated forecasting process that collectssales info. in a timely manner

Implemented global standardized policies andpractices

Centralized repository for data and salesresources including account planning

Mass Customization

Accurate & Timely Demand Planning

Bill f M t i l I t it


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Problem Area:


Enablers:

Improved BOM accuracy by 35% Reduced BOM processing by 15

days

Integrated 36 different BOM lists into

one global unified BOM list

Reduce scrap parts inventory Reduce administrative costs associated

with BOM maintenance

Reduce procurement costs resulting from

increased ability to pool orders by resolving

part number duplications

Reduce part inventory based on increased

ability to use equivalent parts

1

2

4

3

How do I improve the integrityof my Bills of Materials?

Unified BOM / Parts list

Unified Supplier list

Common Information Model

Integration between various systems

holding BOM information

Link ECOs to BOMs effectivity changes and

dates

Bills of Material Integrity

V d M d I t


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Problem Area:


Enablers:

Reduced total inventory by 20-30%

Reduced inventory financing and

carrying costs > 25%

Reduced order fulfillment time > 30%

Increase sales and customersatisfaction through improved OTD

Eliminate $Millions in excess and

obsolete inventory by increased

collaboration and management of top

customer(s) inventory

Reduce order to cash cycle time by

reducing inventory requirements1

2

4

3

How do I manage theinventory of my customers?

Comprehensive, real-time global view Customer demand data aggregation

and forecasting Alerts, decision analysis, andreporting Bill of Materials data aggregation Obsolesce management Continuous KPI and accountmonitoring

Vendor Managed Inventory

Q lit T ki & P ti R di ti


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Quality Tracking & Pro-active Remediation

Problem Area:


Enablers:

Increased supplier recoverable costsby 50%

Reduced warranty costs by $10M

Reduced scrap costs by $10Ms

Reduced standby engineering costs

by $10Ms

Reduced field failure rate (FFR) by 8%

Reduce high Cost of Quality by reducingroot cause defects Capture timely quality related information Detect and correct field failures earlier(current lag time is 6 mos.) to reducewarranty exposure Incorporate field and manufacturingexperience into design and procurement

How do I track my enterprise-wide quality data and react

quickly to quality problems?

Consistent purchasing, design and mfg.

feedback loop

Tighter control of parts inventory Own a product throughout lifecycle incl. endof warranty Defect tracking Analyze Cost of Poor Material data gatheringroot causes Minimized number of company wide metrics Integration of disparate data in existingsystems

1

2

4

3

Ti l BTO/ETO P du t


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Problem Area:


Enablers:

Reduced inventory, scrap, rework

and administrative costs

Increased working capital utilization

Capture larger market share with

accelerated BTO/ETO capabilities

Reduce product development cost

Increase customer satisfaction

Reduce inventory by building to

customer specifications (BTS vs.

BTO/ETO)1

2

4

3

How do I build my product to

customers specifications(BTO/ETO) in a timely fashion?

Comprehensive, real-time global view

Alerts, decision analysis, and reporting

Mass customized components Continuous KPI and account monitoring

Real-time communications with suppliers

Automated data flows, full cycle

accountability

Product configurator linked to BOM, ECO,

production capacities, and margin analysis

Timely BTO/ETO Product

d i l


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Our Green Credentials


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Eco-Technology in Real-Time

Performance ManagementWith The Earth In Mind

ClearGreenCPM Presentation

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