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1 Ginny Youngblood, CSCP, CPIM, SCOR-P Achieving Value Chain Transformation at DuPont Ginny Youngblood is the Global BPM Lead for DuPont and the corporate Process Owner for the Performance Management element of the DuPont Production System. She joined DuPont in 1982 and has worked at several manufacturing sites as well at corporate headquarters in Wilmington, Delaware. Her leadership and managerial responsibilities with DuPont include Sales, Marketing, New Product Development, Line Manufacturing, Operations and Business Leadership roles at various manufacturing and business sites throughout DuPont. She has a particular interest in teamwork and in the development of individual processes and team systems which support combined individual and business growth. She is CPIM, CSCP, and SCOR-P certified. She received a Ph.D. in Chemistry from Yale University in 1982 and a B.S. from The College of William and Mary in 1977. Global BPM Lead – DuPont
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1

Ginny Youngblood, CSCP, CPIM, SCOR-P

Achieving Value Chain

Transformation at DuPont

Ginny Youngblood is the Global BPM Lead for DuPont and the corporate Process Owner for the Performance Management element of the DuPont Production System.

She joined DuPont in 1982 and has worked at several manufacturing sites as well at corporate headquarters in Wilmington, Delaware. Her leadership and managerial responsibilities with DuPont include Sales, Marketing, New Product Development, Line Manufacturing, Operations and Business Leadership roles at various manufacturing and business sites throughout DuPont. She has a particular interest in teamwork and in the development of individual processes and team systems which support combined individual and business growth.

She is CPIM, CSCP, and SCOR-P certified. She received a Ph.D. in Chemistry from Yale University in 1982 and a B.S. from The College of William and Mary in 1977.

Global BPM Lead – DuPont

2

DuPont is a market-driven science company

Our Purpose

DuPont is a science company. We work

collaboratively to find sustainable, innovative, market-

driven solutions to solve some of the world’s biggest

challenges, making lives better, safer, and healthier

for people everywhere.

DuPont Portfolio Changes

3

DuPont Provides Unique Market Offerings

Three Strategic Priorities

4

Science Meets Demand

DuPont Global Supply Chain

DuPont Integrated Operations WorldwideGlobal Supply Chains 70 of 98

Plant sites 207 Sites

Warehouses 740+

Shipping Major Container user

Employees (approx.) 34,000+

Countries 45

Contract operations ~1000 Sites

Diverse Operations• Seeds • Discrete parts• Food additives• Industrial biotech• Film production• Polymer production• Fiber production• Consumer goods• Electronic materials• Continuous chemical process• Fine and custom chemicals• Fluorine chemicals

5

Three Operational Priorities

Using a Systems Model . . .Demand Led Fulfillment

6

to Identify Gaps . . .

Performance opportunities

Demand led fulfillment operating

model

+

Improve

customer

experience

Reduce

cost to serve

Reduce

inventory

From …

� High inventory � Misaligned policies� Non productive inventory

� High complexity� Manual interventions� Numerous work

arounds� Significant expediting

� Inconsistent delivery performance

� Difficulty meeting promises

� Significant churn and effort

To …

� Automated, streamlined, rules based processes

� Reduced manufacturing costs

� Reduced expediting costs

� Advantaged working capital productivity

� Aligned E2E performance

� Capital available to re-invest

� Reliable Supply� Competitive lead times� Differentiated service

levels

AND

and to Focus on Transformation

AND

7

DuPont Process PerformanceGaps Come From E2E Processes

Suppliers Customers

Requisition to Pay Order to CashRecord to Report

DemandMgt

SupplyMgt

Material

Money

Information

Transactional Processes

% delivery promises broken

DuPont eTransactions << Hackett World Class of 50%

# invoices per sales

order

% shipments billed > 1 day late

% customer orders require

manual intervention

% requisitions released manually

% inbound material

shipments late

% of MRO purchases are

spot orders

E2E Processes Are Assets We ManageB

usiness A

IT

Finance

Operations

Business B

Up Down DuPontDuPont

IT

Planning

Sourcing

Deliver

E2E ProcessesDuPont

Resources Value

VALUE

Processes are assets . . . Process are cross-functional . . .

Need a discipline to manage E2E business processes across the white spaces of resource hierarchies

8

Transparency

Ownership

Agility

BPM – Process Management Discipline

Business process management

(BPM) is a management

discipline that treats processes

as assets that directly

contribute to enterprise

performance by driving

operational excellence and

agility.

BPM Supports Transformation

Develop and maintain cross functional standard processes

Standard KPIs for integrated E2E supply chain

Behaviors to support change

Standard system and data architecture

Standard governance, accountability and centered teams

Business processes

Capabilities Strategy and KPIs

Systems and information

flowsStructure

Culture(M & B)

Mindsets, behaviors &organizational liquidity

9

Process Hierarchies - SCOR Model

Level 1 Level 2 Level 3 Level 4 Level 5

Scope Configuration Activity Workflow Transactions

Differentiates business Differentiates complexity Names tasks Sequences steps Links transactions

Defines scope Differentiates capabilities Links, metrics, tasks and practices

Job details Details of automation

Framework language Framework language Framework language Industry or company specific language

Technology specific language

D1Deliver

stocked productDeliver D1.2

Receive, enter,& validate order

Industry Standard Definitions Company Definitions

EDIXML

Source: Supply Chain Council - Supply Chain Operations Reference Model

Business

Processes

Capabilitie

s

Strategy & KPIs

Structure

Culture

(M & B)

BPM: Managing ProcessesProcess transparency

Process ownership

Process agility (continuous improvement)

Order to Cash

A_(OTC) Order to Cash

Process Level: 3 Process Owner: Carol DandolosLast change: Jan 6, 2012 8:58:15 AM

Managing & Prioritizing Demand

Order Management process

DM4.5

Sales Policy Execution

DM4.4

Availability Check

DM4.6

Entitlement Check:Identify, Prioritize & Manage

Abnormal Demand

DM4.2

Plan Deliver/Make

Identify, Prioritizeand Aggregate

DeliveryRequirements

P4.1

Balance DeliveryResources andCapabilities with

Delivery...

P4.3

EstablishDeliveryPlans

P4.4

Make

Make

Deliver

Deliver

Deliver

Dx.4-14 Includes Export Docs & MSDS

Billing and Collections

Process Accounts Receivable

Fin7.02.3

ManageDeliver

Information

ED.3

Invoice the Customer

Fin7.02.2

Manage Process Collections

Fin7.02.4

Manage and ProcessAdjustments/Deductions

Fin7.02.5

Process Customer Credit

Fin7.02.1

Authorize Supplier

Payment (m-t-s)

S1.5

Consume Demand ConsensusForecast

DM4.3

[Freight Payment]

Enable Create/ Maintain MasterData

Business

Processes

Capabilitie

s

Strategy & KPIs

Structure

Culture

(M & B)

10

18

Culture

Workforce

Response to

change

Open, honest, trusting

Engaged,

flexible

Positive,

embracing

1

2

3

New culture and capability must accompany standard processes

Elements:

Global standard process

Global standard reports

Cross-functional collaborationSales, CSR, supply chain, supply scheduling,

warehouse/logistics

Leader

behavior

Involved,

coaching

4

18

DPP End2End Supply Chain

BPM: Capability

Business

Processes

Capabilitie

s

Strategy & KPIs

Structure

Culture

(M & B)

BPM: Strategy & KPIs

Process KPI StrategyStrategy

measured by

KPIs

KPIs flow down

and match

process level

Level 0

Level 1

KPIs standard

by process

Business

Processes

Capabilitie

s

Strategy & KPIs

Structure

Culture

(M & B)

11

BPM: Organization Structure

Standard RACI – Processes tied to roles

Organizational design – collection of roles

Business

Processes

Capabilitie

s

Strategy & KPIs

Structure

Culture

(M & B)

BPM: Tools & DataProcesses connect to applications and data

Level 1

Level 2

Main Process L1 VACD

SCOR L2 VACD

Level 3

Level 4

Level 5 Detailed Process incl. SAP

Processes EPC (column display)

Level 6 SAP Process

SAP

FAD

SCOR L3 VACD

L3 - Process Description

FAD

SAP Scenario EPC

SAP Process

EPC (column display)

SAP Process step FAD

SAP Project VACD

DuPont Business EPC (row)

L4 - Process Description

FAD

Business Variations Overview

PSM DuPont

L2 - Process Descriptions

FAD

Process Variations Overview

PSM

DuPont Process Architecture

SAP Architecture

Scope

Configuration

Activity

Business

Processes

Capabilitie

s

Strategy & KPIs

Structure

Culture

(M & B)

12

BPM: Capabilities

Business

Processes

Capabilitie

s

Strategy & KPIs

Structure

Culture

(M & B)

Transparency

• People work across process boundaries

• Change is an accepted constant way of life

Ownership

• People who do the work manage the process

• Fill roles rather than jobs

Agility

• Build to change mentality

• Leaders skills to lead transformation

Sustainable Results . . .

Requires All Transformation Elements

Customer Customer experienceexperience Inventory Inventory investmentinvestment

36% 36% Improvement Improvement

global promise global promise to policyto policy

15% Reduction 15% Reduction in in inventoryinventorydays salesdays sales

� All elements of value chain transformation are necessary to sustainable results

� Business process management enables each of the value chain transformation elements

Business

Processes

Capabilities

Strategy

&

KPIs

Structure

Culture(M

&

B)

13

Results from Transformational Change

67%

81%

85% 86%

89% 90% 91%

60%

65%

70%

75%

80%

85%

90%

95%

100%

11/2011 12/2011 1/2012 2/2012 3/2012 4/2012 5/2012

Global Promise to Policy %

Goal = 95%

Business

Processes

Capabilities

Strategy

&

KPIs

Structure

Culture(M

&

B)

BPM Critical Success Factors

Start

small

Fix pain

points

Monetize

results

Executive

sponsor

Start with BPM projects that are small and that

create immediate wins for the business.

Begin with BPM projects that fix pain points;

internal clients will return for more help. . .

Be sure to put monetary value on all projects

� improved efficiency and effectiveness is

worth money

Get sponsorship for BPM from high level

executives – CSCO, COO, CEO, CFO; tie success

to corporate transformation strategy . . .

14

Key Learnings

Connect to

change

efforts

Create a BPM

story

Fit with

corporate

strategy

Partner with

the IT Team

Align with six sigma, production system,

other change management efforts . . .

BPM speeds the rate of change

Create a value story for BPM �

sell, sell, sell the change to process thinking

BPM projects should align with corporate

value outcomes and support corporate

strategy objectives. BPM is an enabler.

BPM is a business initiative -- foster open

communications with IT partners.

Conclusions

�All elements of value chain transformation are

necessary to achieve sustainable results

�Business process management enables each

of the value chain transformation elements

�Business process management supports

increased transparency, ownership, and agility

15

Recommendations

�Analyze the business operating and decision

processes that are critical assets to SC success

�Carefully design the time horizon and

granularity for each supply chain process layer

to support agile decisions

�Use business process management to enable

speed, accuracy, and innovation of change

Speaker Contact Info

Dr. A. V. (Ginny) Youngblood

Global BPM Lead

E.I. DuPont de Nemours

Barclay Juniper Building 2B-040

100 S. West Street

Wilmington, DE 19801

302-220-9540 cell

302-660-3040 office

[email protected]

16

Survey

www.tinyurl.com/lc3s3fm


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