Post on 10-Apr-2018
transcript
8/8/2019 Session 22 - Change Management
1/20
Transition ManagementTransition Management
Managing the associated organisationalManaging the associated organisationalchangeschanges
Day 3 Session 22
8/8/2019 Session 22 - Change Management
2/20
Day 1 Session 1 - Introductions and feedback from pre-work.ppt
2
Objectives of this sessionObjectives of this session
NOTNOT
A generic education on Change ManagementA generic education on Change Management
ISIS
Attempt to highlight what changes (outside of theAttempt to highlight what changes (outside of thetechnology) willtechnology) will take place andtake place and have to be managedhave to be managed
8/8/2019 Session 22 - Change Management
3/20
Day 1 Session 1 - Introductions and feedback from pre-work.ppt
3
The biggest hurdle is not just implementing new
technology, but adopting business practices,organisational structures, and culture that encouragescoordination and collaboration
However, APS is an enablerof changeWhat are the 3 biggest obstacles?
Source: Forrester Research, 'The Supply Chain Voyage', 1997
Cultural resistance of staffand management
Poor state of current systems
Complexity of new supplychain technology
High cost and resourceconstraints
Coordination with supplychain partners
68%
54%
38%
32%
26%
0 10 20 30 40 50 60 70 80
APS is not a Panacea...APS is not a Panacea...
8/8/2019 Session 22 - Change Management
4/20
Day 1 Session 1 - Introductions and feedback from pre-work.ppt
4
Most ERP applications failed to deliverMost ERP applications failed to delivertheir full promise...their full promise...
How successful are ERPHow successful are ERP
initiatives?initiatives?Very successfulVery successful 6.7%6.7%SuccessfulSuccessful 25.4%25.4%Somewhat successfulSomewhat successful 44.7%44.7%Not very successfulNot very successful 20.7%20.7%UnsuccessfulUnsuccessful 2.5%2.5%
Barriers to ERP successBarriers to ERP successChange ManagementChange Management
CommunicationCommunicationOtherOtherDefining objectivesDefining objectivesExisting thinkingExisting thinking ImplementationImplementationRealising benefitsRealising benefitsTime managementTime management
FinancingFinancingPrioritisationPrioritisationCo-ordinating multiple unitsCo-ordinating multiple unitsMethodologyMethodology
The Corporate world is littered with the wreckageof technically sound programmes that have been
crushed by employee resistance to change- Tom Terez, Modern Management,
Inc.
The Corporate world is littered with the wreckageof technically sound programmes that have been
crushed by employee resistance to change- Tom Terez, Modern Management,
Inc.
}}67.9%67.9% }}52%52%
ce: 1996 research stud of fortune 500 executives, conducted b CSC indexce: 1996 research study of fortune 500 executives, conducted by CSC index
8/8/2019 Session 22 - Change Management
5/20Day 1 Session 1 - Introductions and feedback from pre-work.ppt
5
Lessons LearnedLessons Learned
Is there a burning platform for change?Is there a burning platform for change?
If not, expect high level of resistance and focus on on-valueIf not, expect high level of resistance and focus on on-valueadded issuesadded issues
If so, senior management must reinforce the messageIf so, senior management must reinforce the message
8/8/2019 Session 22 - Change Management
6/20Day 1 Session 1 - Introductions and feedback from pre-work.ppt
6
Non technical issues required for goodNon technical issues required for goodplanning...planning...
One forecastOne forecast
OrganisationOrganisation
IT OrganisationIT Organisation
Plant / MetricsPlant / Metrics
DisciplineDiscipline
SC RationalisationSC Rationalisation
8/8/2019 Session 22 - Change Management
7/20
8/8/2019 Session 22 - Change Management
8/20Day 1 Session 1 - Introductions and feedback from pre-work.ppt
8
Plant / MetricsPlant / Metrics
TraditionallyTraditionally Focus on costFocus on cost
Long production runsLong production runs
No awareness of total deliveredNo awareness of total delivered
costcost
Suboptimal production scheduleSuboptimal production schedulechangeschanges
Control of only the local part ofControl of only the local part of
Supply ChainSupply Chain
Must align KPIs to overall Supply Chain effectiveness, including: Through put,
Inventory, CostsChanges to the plant will still occur but it should now be possible to synchronise
these with the rest of the supply chain
Failure to address this means you dont really have an integrated supply chainplanning process
Best in ClassBest in Class Focus on plan/schedule executioFocus on plan/schedule execution
Shorter production runsShorter production runs
Production schedule changes toProduction schedule changes to
meet planmeet plan
Global and centralised SupplyGlobal and centralised SupplyChain planning and visibilityChain planning and visibility
8/8/2019 Session 22 - Change Management
9/20Day 1 Session 1 - Introductions and feedback from pre-work.ppt
9
DisciplineDiscipline
TraditionallyTraditionally
Production schedules notProduction schedules notmaintainedmaintained
Hidden inventoryHidden inventory
Obsolete dataObsolete data
Many forecasts and plansMany forecasts and plans
Common Issues FoundCommon Issues Found Plants Fail to Produce What
Planning Org Wants Plants/Warehouses Fail to
Ship What Is Needed Plants kept on producing,
regardless of demand
Impeding Organizational Ability To Change
Existing transaction systems (can be a smokescreen)
Just never had to do it before (all the overt and covert drivers of behaviours havebeen changed)
Best in ClassBest in Class
Production schedules maintained up toProduction schedules maintained up todatedate
Obsolete data cleaned Out of SystemsObsolete data cleaned Out of Systems
Inventory is geared to customer serviceInventory is geared to customer service
levelslevels
SCP organisation determines whatSCP organisation determines what
Plants producePlants produce
Plant/warehouses shipPlant/warehouses ship
Measure conformance to plan rather thanMeasure conformance to plan rather thanto volume attainmentto volume attainment
1
8/8/2019 Session 22 - Change Management
10/20Day 1 Session 1 - Introductions and feedback from pre-work.ppt
1
IT OrganisationIT Organisation
TraditionallyTraditionally Standard technical systemsStandard technical systems
supportsupport
React to problemsReact to problems
Impeding Organisational Ability To ChangeExisting IT skill set
Tendency to try to function as before (now need to become shareholders in thebusiness)
Best in ClassBest in Class Coordinates with business onCoordinates with business on
system improvementssystem improvements
Co-located and dedicated ITCo-located and dedicated IT
personnel to user groupspersonnel to user groups
Understand functional andUnderstand functional and
technical issues and how theytechnical issues and how they
are interrelatedare interrelated
Are flexible with the numberAre flexible with the number
of system change requestsof system change requests
that are catered forthat are catered for
8/8/2019 Session 22 - Change Management
11/20
1
8/8/2019 Session 22 - Change Management
12/20Day 1 Session 1 - Introductions and feedback from pre-work.ppt
1
Supply Chain RationalizationSupply Chain Rationalization
TraditionallyTraditionally
Little to no effectiveLittle to no effective
item/customer differentiationitem/customer differentiation
Forward coverage safety stockForward coverage safety stock
strategiesstrategies
Outdated, invalid minimumOutdated, invalid minimumproduction quantitiesproduction quantities
Outdated, invalidOutdated, invalid
replenishment quantitiesreplenishment quantities
Impeding Organizational Ability To Change
Typically Gets Pushed Out of Project Scope
Client: Well Take Care of This
Reality: Does Require Additional Resources
Best in ClassBest in Class
Item and customerItem and customer
differentiation /rationalizationdifferentiation /rationalization
including the elimination of lowincluding the elimination of lowperforming itemsperforming items
Rationalised economicRationalised economic
production quantitiesproduction quantities
Rationalised economicRationalised economic
replenishment quantitiesreplenishment quantities
Rationalised safety stockRationalised safety stock
levelslevels
1
l h i i i
8/8/2019 Session 22 - Change Management
13/20
Day 1 Session 1 - Introductions and feedback from pre-work.ppt
1
Supply Chain Management OrganisationSupply Chain Management Organisationskillsskills
TraditionallyTraditionally
Mainly routine, transactional tasksMainly routine, transactional tasks
Generating reportsGenerating reports
Order chasingOrder chasing
Second guessing forecastsSecond guessing forecasts
An understanding of MRP (perhaps not even MRP II)An understanding of MRP (perhaps not even MRP II)
Functional experienceFunctional experience
Typically rise through manufacturing or warehousing ranksTypically rise through manufacturing or warehousing ranks
Narrow view on information, e.g. only look at management informationNarrow view on information, e.g. only look at management information
Lack of cross-functional empathyLack of cross-functional empathy
Knowledge baseKnowledge base
Lack of total Supply Chain process understandingLack of total Supply Chain process understanding
Administrative proceduresAdministrative procedures
An understanding of MRP (perhaps MRP II)An understanding of MRP (perhaps MRP II)
1
l h i i i lS l Ch i M O i i l
8/8/2019 Session 22 - Change Management
14/20
Day 1 Session 1 - Introductions and feedback from pre-work.ppt
1
Supply Chain Management OrganisationalSupply Chain Management OrganisationalSkillsSkills
Best in ClassBest in Class
Process drivenProcess driven Decision making (how to best match demand with supply)Decision making (how to best match demand with supply)
Problem solving, with both manufacturing/distributions and sales/marketingProblem solving, with both manufacturing/distributions and sales/marketing
Collaborative forecastingCollaborative forecasting
Cross supply chain knowledge of processes and toolsCross supply chain knowledge of processes and tools
Integrated Supply Chain experienceIntegrated Supply Chain experience
Cross-functional experienceCross-functional experience
Holistic view of how information is used throughout Supply ChainHolistic view of how information is used throughout Supply Chain
Lived through a variety of jobs, including manufacturing/distributions andLived through a variety of jobs, including manufacturing/distributions and
sales/marketingsales/marketing
Knowledge baseKnowledge base
Understand the supply chain trade offsUnderstand the supply chain trade offs
1
S l Ch i M t O i ti lS l Ch i M t O i ti l
8/8/2019 Session 22 - Change Management
15/20
Day 1 Session 1 - Introductions and feedback from pre-work.ppt
Supply Chain Management OrganisationalSupply Chain Management OrganisationalSkillsSkills
Expert User GroupExpert User Group
Will need to create an expert user group to manage theWill need to create an expert user group to manage therequests for system changes / modifications and enhancementsrequests for system changes / modifications and enhancements
Manage software upgradesManage software upgrades
Ensure the system remains uniform across functions andEnsure the system remains uniform across functions and
geographiesgeographies
Organisation Database AdministrationOrganisation Database Administration Will need to create a role toWill need to create a role to
check base datacheck base data
check static datacheck static data
maintain integrity and performance of systemmaintain integrity and performance of system
1
8/8/2019 Session 22 - Change Management
16/20
Day 1 Session 1 - Introductions and feedback from pre-work.ppt
How Do We Address These Issues?How Do We Address These Issues?
Top of the list of critical success factorsTop of the list of critical success factorsRisk/reward agreements -- future of SCP implementationsRisk/reward agreements -- future of SCP implementations
People will do what they have incentive to doPeople will do what they have incentive to do
Target clients who are willing to tackle these issuesTarget clients who are willing to tackle these issues
Walk away if necessaryWalk away if necessaryRetraining of Client PersonnelRetraining of Client Personnel
1
KPI Ch M t i dKPIs a Change Management iss e and
8/8/2019 Session 22 - Change Management
17/20
Day 1 Session 1 - Introductions and feedback from pre-work.ppt
KPIs - a Change Management issue andKPIs - a Change Management issue andenablerenabler
One issue that has to be faced when in Supply Chain planningOne issue that has to be faced when in Supply Chain planningwork is the existing measurement systemwork is the existing measurement system
Traditional measures tend to optimise each separate part ofTraditional measures tend to optimise each separate part of
the supply chain, resulting in a sub-optimal wholethe supply chain, resulting in a sub-optimal whole
eg, traditional factory measures of, plant costs andeg, traditional factory measures of, plant costs and
capacity utilisation can drive up inventory levelscapacity utilisation can drive up inventory levelsdownstreamdownstream
If we seek to integrate and optimise the supply chain, weneed a set of measures that drives behaviours to do so ...
1
8/8/2019 Session 22 - Change Management
18/20
Day 1 Session 1 - Introductions and feedback from pre-work.ppt
What Makes A Good KPIWhat Makes A Good KPI
Some of the success criteria for a good performance indicatorSome of the success criteria for a good performance indicator
are that it must:are that it must:
Be consistentBe consistent -- each measure must support the other measureseach measure must support the other measures
in thein the specific actions identifiedspecific actions identified
Be meaningfulBe meaningful -- changes to the measure must be easilychanges to the measure must be easily
attributable to a cause;attributable to a cause;
Be relevantBe relevant
--
reflect the performance of a parameter that isreflect the performance of a parameter that is
fundamental to the business;fundamental to the business;
Be all encompassingBe all encompassing -- as a package the KPIs must cover all importantas a package the KPIs must cover all important
aspects of the business operation;aspects of the business operation;
Be well definedBe well defined -- everyone has the same understanding of theeveryone has the same understanding of the
measure, how it is created and what it means;measure, how it is created and what it means;
Have a defined targetHave a defined target -- the normal operational level of the indicator isthe normal operational level of the indicator isunderstood , as are the out of specification levels; andunderstood , as are the out of specification levels; and
Be available in timeBe available in time -- presentation and analysis of the data mustpresentation and analysis of the data must
reflect thereflect the speed at which resolution actions are requiredspeed at which resolution actions are required
1
8/8/2019 Session 22 - Change Management
19/20
Day 1 Session 1 - Introductions and feedback from pre-work.ppt
Total Supply Chain Performance MeasuresTotal Supply Chain Performance Measures
Perfect orderPerfect order
fulfillmentfulfillment
Customer satisfactionCustomer satisfaction
Product qualityProduct quality
Order fulfillment leadOrder fulfillment lead
timetime
Total supply chain costTotal supply chain cost
Inventory days ofInventory days of
supplysupply
High levels of customerHigh levels of customer
satisfaction withsatisfaction with
productsproducts
and service levelsand service levels
Responsive to marketResponsive to market
Cost efficient operationsCost efficient operations
STRATEGY
CRITICAL SUCCESSFACTORS
KEY PERFORMANCEMEASURES
2
8/8/2019 Session 22 - Change Management
20/20
Day 1 Session 1 - Introductions and feedback from pre-work.ppt
KPI MeasurementKPI Measurement
Run PlanRun Plan
Procure productProcure product Make productMake product Ship productShip product
in
st
ruc
tio
n
in
st
ruc
ti
on
Rese
ll
Rese
ll
in
st
ruc
tio
n
in
st
ruc
ti
on
Rese
ll
Rese
ll
in
st
ruc
ti
on
in
st
ruc
ti
on
Rese
ll
Rese
ll
OrdersOrders
CustomerCustomer
Do not shy away from measuring performance versus a constantlychanging plan. If there is discrepancy (ie,