| T.R | Title | User | Personal
Name | Date | Lines |
|---|
| 2083.1 | Thanks for posting it in NOTES, Joe! | SYORPD::DEEP | Bob Deep - SYO, DTN 256-5708 | Mon Aug 31 1992 11:54 | 3 |
| It will be interesting to see how long this memo takes to filter down via EMAIL!
Bob
|
| 2083.2 | Who runs Program Office? | WR2FOR::WHITE_JE | | Tue Sep 01 1992 14:00 | 6 |
| Some of our customers are interested in what DEC is doing in the Supply
Chain area. Does anybody know who is in the program office that could
provide more information?
Jerry White
ADEG Services Consultant
|
| 2083.3 | It appeared twice... | SWAM2::MCCARTHY_LA | They gave me the Digital salute! | Tue Sep 01 1992 14:36 | 8 |
| Jerry,
I dunno, but there is a clue in .0:
A VAXmail address:
DEMSUP::SUPPLYCHAIN
|
| 2083.4 | U.S. SUPPLY CHAIN | GLDOA::DLAVALLEY | | Tue Sep 01 1992 19:22 | 5 |
| Bob Nealon is now responsible for supply chain in the U.S. Inquiries
should be directed to him, or Carl Kooyoomjian.
Dave
|
| 2083.5 | Email distribution
| SNOC02::STIRRUP | | Wed Sep 02 1992 00:29 | 4 |
| RE .1
I got it here in Australia first thing on the 31st - seems pretty effective
to me. Chris S.
|
| 2083.6 | ISSUE 2 | ULYSSE::WADE | | Wed Sep 02 1992 04:08 | 100 |
| -------------------------------------------------------
BTW: the Supply Chain Program Office (Mary McLaughlin)
gives permision for these updates to be notes-posted
-------------------------------------------------------
From: DEMSUP::SUPPLYCHAIN "31-Aug-1992 1006" 31-AUG-1992 14:35:49.19
To: @JW.DIS,@SCHAIN.DIS,@SC_COMM.DIS,@TBM.DIS
CC:
Subj: Supply Chain Communication - Please Forward Widely
*******************************************
** Supply Chain Update **
*******************************************
Issue 2
In our last Issue, we addressed the beginnings of
our Supply Chain work, as led by Bob Palmer.
Continuing our communications, we include in this Issue:
Supply Chain Vision
Principles
Mission
*******************************************
SUPPLY CHAIN VISION
Supply Chain Vision:
Fast, Flawless, and Simple delivery of
value as perceived by our customers
such that Digital becomes the benchmark
toward which others strive.
SUPPLY CHAIN PRINCIPLES
To bring this vision to reality, a set of overarching principles were derived
to ensure consistent interpretation of the vision and common implementation
across processes and businesses.
Supply Chain Principles:
1. Each customer feels uniquely served and is delighted by the Material,
Service, and Knowledge that is delivered and implemented into their
operation.
2. The goals of the Supply Chain will be Time-Based and Customer Value-driven.
3. Our products, processes, and services will be continually benchmarked against
our most successful competitors and other world-class leaders.
4. We will have one Supply Chain Architecture.
5. The performance of the entire Supply Chain process supersedes the optimiza-
tion of its individual sub-processes.
6. The Supply Chain will be designed such that data, work, and organizational
infrastructure are "one point solutions" and are replicated only for Supply
Chain customer value.
7. The Supply Chain is a fast, flexible stream of pure value-added activity
which moves materials, services, and information directly from source to
point of use.
8. People and organizations have the knowledge, commitment, and responsibility
to leverage the performance of the Total Supply Chain.
9. Measurements for people and organizations are clear and congruent with the
Supply Chain's vision, principles, and goals.
10. Management has mechanisms to review and reward performance against these
measurements.
SUPPLY CHAIN MISSION
The Supply Chain Program Office, in support of the Vision, has defined its
Mission:
To drive systemic root cause change in the Supply Chain
in order to be predictable in delivery to our customers at
competitive leadtimes.
****************************************************************************
We will be happy to take your feedback and questions. Send
your questions or comments to:
DEMSUP::SUPPLYCHAIN
We ask that you forward this memo, and those coming, widely.
|
| 2083.7 | Probably just an "administrative error" | SWAM2::MCCARTHY_LA | They gave me the Digital salute! | Wed Sep 02 1992 14:22 | 8 |
| I'm concerned (but not at all surprised) that none of this information
has not reached anyone I know in my local area (S. California). I mean,
since it's the CEO's No. 1 priority, you'd think it'd get at least a
little attention. The cynic in me speculates that it must be scaring
the living **** out of those higher in the "food chain" (as opposed to
the "supply chain" - diametrically opposed, that is).
But, not to worry, I'll start the ball rolling from the bottom up :-)
|
| 2083.8 | | ULYSSE::WADE | | Thu Sep 03 1992 10:34 | 8 |
| Re .7
While you wait for your management chain to get active,
you can get the Updates sent directly to you :-)
See instructions at the end of the next note.
Jim
|
| 2083.9 | Issue #3 | ULYSSE::WADE | | Thu Sep 03 1992 10:34 | 117 |
| From: DEMSUP::SUPPLYCHAIN "02-Sep-1992 1507" 2-SEP-1992 19:17:05.08
To: @TBM.DIS,@JW.DIS,@SC_COMM.DIS
CC: SUPPLYCHAIN
Subj: Supply Chain Update - please forward widely
** Please forward widely **
*******************************************
** Supply Chain Update **
*******************************************
Issue 3
In our last Issue, we addressed the Supply Chain
Vision, Principles, and Mission.
In response to requests, we include in this Issue:
The Definition of the Supply Chain
Scope of the Change Effort
*******************************************
Supply Chain Update
Definition:
The Supply Chain is the process by which we plan, create and deliver
competitive products and services to our customers.
Scope:
In our re-engineering effort, we have broken the supply chain down into
three core processes:
Supply Execution
The processes by which material is transformed into
finished goods positioned for order fulfillment. The
preparation and delivery of service to customers.
Customer to Customer
The request/order administration, fulfillment, delivery,
installation, invoicing and accounts receivable processes.
Total Life Cycle
The market and product/service planning, conceptualization,
design, and delivery of new products or services to market.
We also identify three integrative processes:
Requirements Planning
The strategic and tactical planning of demand which
supports execution.
Make/Buy Sourcing & Capacity Planning
The 5-yr sourcing and capacity plan for future products
and services.
Acquisition
The process associated with procuring materials, products,
services, and administrative materials for transformation,
consumption, or re-sale to customers.
A number of programs provide support roles to the change effort:
Benchmarking
Identify and ensure implementation/achievement of "Best in
Class" practices and performance levels.
Performance Measurements
Defining and operationalizing Customer-focused and Time-
based performance measures which will drive and monitor
competitiveness.
Voice of the Customer
Understand our true customer requirements.
Employee Communications
Ensure our employees have the knowledge and direction
to make sound decisions aligned with the business goals.
Quality and TQM behavior is a major thrust, integral to each of
our efforts. IM&T is likewise focused on implementing the change
effort within the systems by which we operate.
This change will impact any system and peripheral products or traditional
services for hardware or software which are ordered by our customers and
delivered through our supply chain. This includes third-party and procured
products and services. Systems Integration and Consulting Services are not
being addressed in the short-term, but is recognized as critical in the
longer-term.
Timeframe:
The change program will deliver on all of its goals by the end of FY95 and rely
on operating units and permanent process owners to deliver continuous
improvements thereafter.
****************************************************************************
We will be happy to take your feedback and questions. Send
your questions or comments to:
DEMSUP::SUPPLYCHAIN
If you would like to be added to our distribution list,
please respond to this same address.
We ask that you forward this memo, and those coming, widely.
|
| 2083.10 | Somebody had to ask... | NOTIME::SACKS | Gerald Sacks ZKO2-3/N30 DTN:381-2085 | Thu Sep 03 1992 10:47 | 1 |
| Is the Supply Chain another example of management by slogan?
|
| 2083.11 | What we each can do... | VERGA::FACHON | | Thu Sep 03 1992 11:04 | 35 |
| What can each of us, within the context of our own job, do to
support the "Supply Chain" initiative?
I think the most important element is "accountablity," beginning
with your own job, and including *constructive critism* of the
projects with which we're directly related.
1) Speak up when you see redundant and/or inefficient
efforts. Offer alternatives and/or recommendations.
Begin by taking the problem to its source.
2) Escalate awareness of problems you can't resolve until you
receive confirmation from someone you believe can address the
issue.
3) Follow up. Make sure the problem is addressed. You have to
feel satisfied with the resolution. This doesn't always mean
an action is taken, but it does mean you feel confident
the problem was evaluated by the right person. If not,
see point 2 above...
As a technical writer, a large part of my job is to watch-dog
the projects I work on. I'm constantly flagging inconsistencies
and recommending product and/or business strategy changes. Sometimes
I get shot down, but sometimes I make a difference.
Don't be afraid to voice constructive critisism. If you think it may
cost you your job, there's just as much chance you'll lose it if you
fail to "raise the flag" on a problem and it causes major hassles
or program cancellation later on. Be willing to take risks, and
respect anyone else who's sticking their neck out. That's the
entrepreneurial spirit -- real accountability for one's actions --
and that's what will turn this behemoth around.
Two cents for today... Anyone else?
|
| 2083.12 | Oh oh, did I really see "5 year plan" | STAR::PARKE | True Engineers Combat Obfuscation | Thu Sep 03 1992 12:24 | 6 |
| Gee it didn't work real well in the USSR, lets not make it too static.
We need long range plans and vision, but the market is getting MUCH faster
than that with technology change. There is a good chance we don't even know the
next big berakthru that will be prevalent in products at the end ofthe 5 year
time frame, the best we can do is guess.
|
| 2083.13 | too long term, too much up in the air | SGOUTL::BELDIN_R | D-Day: 209 days and counting | Thu Sep 03 1992 13:52 | 7 |
| Practical projects have short and long term deliverables. If I were
BP, I would yell "Stop the music!" until the team got it clear that
Digital can't wait for 1995 to see results. And those near term
results have to be planned, not accidental, and somebody must be
accountable. At this point, it all sounds very ethereal.
Dick
|
| 2083.14 | | XLIB::SCHAFER | Mark Schafer, ISV Tech. Support | Thu Sep 03 1992 13:56 | 1 |
| 3 issues since 28-August? Are they in a hurry or what?
|
| 2083.15 | | ULYSSE::WADE | | Thu Sep 03 1992 16:03 | 6 |
| RE .14
>> 3 issues since 28-August? Are they in a hurry or what?
They (we) had better be in a *big* hurry!
|
| 2083.16 | Watch your adjacent links ! | BEAGLE::BREICHNER | | Fri Sep 04 1992 08:33 | 29 |
| My personal (2c) theory:
There's one thing you can be sure about the "supply chain" model
and which is more than "management by slogan":
If you are somewhere in the middle layers of the the supply chain,
make sure that you've a quality (straight) interface to the
layer above (supplier, funder,....) and to the layer below
(internal, external customer), else if it is unclear, badly defined
etc (e.g slanted),guess what happens when pressure is applied
from either/or below/above:
|
|
----------------
| "above" |
----------------/---/
/ /
/ y /
/ o / ------->
/ u /
-------------/---/
| "below" |
------------
^
| "pressure"
:-)
fred, approaching "you" situation
|
| 2083.17 | | SYORPD::DEEP | Bob Deep - SYO, DTN 256-5708 | Fri Sep 04 1992 12:33 | 7 |
| Well, September 4 and not one of these through my "information supply chain."
I sent mail to be added directly to the list.
Does Digital even HAVE a way to reach ALL employees directly?
Bob
|
| 2083.18 | | CVG::THOMPSON | Radical Centralist | Fri Sep 04 1992 14:28 | 10 |
| >Does Digital even HAVE a way to reach ALL employees directly?
All US employes? Close. There is a group in Northboro that has a
better then 90% hit ratio for employees in general with a still better
ratio for all managers. This is via Email BTW. Once you go world wide
it gets a bit harder. The employee databases are more distributed and
there are some data and privacy restrictions. However, it is a known
problem and people are working on a solution.
Alfred
|
| 2083.19 | just a BTW | BIGUN::ANDERSON | The Unbearable Fuzziness of Marketing | Tue Sep 08 1992 00:55 | 6 |
| In our small region (Australia and New Zealand) James Cameron @SNO set
up a dynamic list capability in ALL-IN-1 that reads in nightly from a
Personnel database. This means we have up to date system mailing lists by
location, by function, by cost centre, etc.. as well as having ALL-IN-1
mailing lists (non-system) for special interests that you can and
remove yourself to/from.
|
| 2083.20 | USA is not Digital | COUNT0::WELSH | If you don't like change, teach Latin | Tue Sep 08 1992 04:57 | 16 |
| re .18:
>>Does Digital even HAVE a way to reach ALL employees directly?
>
> All US employes? Close.
Nice, but not the question.
For the zillionth time, Digital is a multinational corporation,
and the USA now does less business than Europe, without even
mentioning GIA (you know, Japan, Canada, Australia, Asia, South
America, Africa, etc.)
It is time we got organised, and NOT just within the US.
/Tom
|
| 2083.21 | | CVG::THOMPSON | Radical Centralist | Tue Sep 08 1992 09:18 | 10 |
| RE: .20 If you'd read the whole note you would have seen that I *did*
answer the question by saying that Digital did not have a way to reach
all employees. I did however feel it worthwhile to mention that US
employees could be reached. You will also note, if you read my whole
note, that I indicate that trying to reach all employees is a goal
trying to me worked.
It is time people stopped being so hyper sensitive.
Alfred
|
| 2083.22 | | SYSTEM::COCKBURN | Craig Cockburn | Tue Sep 08 1992 19:14 | 13 |
| > <<< Note 2083.21 by CVG::THOMPSON "Radical Centralist" >>>
> RE: .20 If you'd read the whole note you would have seen that I *did*
> answer the question by saying that Digital did not have a way to reach
> all employees. I did however feel it worthwhile to mention that US
> employees could be reached. You will also note, if you read my whole
> note, that I indicate that trying to reach all employees is a goal
> trying to me worked.
I thought there was a way to reach all employees - the memo which announced
Ken's retirement seemed to go to all employees via an automatic route.
Craig.
|
| 2083.23 | Sorry, but it needs to be said | COUNT0::WELSH | If you don't like change, teach Latin | Wed Sep 09 1992 05:27 | 30 |
| re .21:
> RE: .20 If you'd read the whole note you would have seen that I *did*
> answer the question by saying that Digital did not have a way to reach
> all employees.
I did read the whole note, and I acknowledge that it was valuable
as far as it went.
> I did however feel it worthwhile to mention that US
> employees could be reached. You will also note, if you read my whole
> note, that I indicate that trying to reach all employees is a goal
> trying to me worked.
This was also good and welcome news.
> It is time people stopped being so hyper sensitive.
To react angrily if someone called me a name would be hyper-sensitive.
To draw attention every time it is mentioned that something which
is in theory done "corporate-wide" is in fact done "in the States"
is part of my campaign to raise people's awareness.
I realize that your awareness does not need to be raised further,
Alfred, and offer my apologies if my reply was insensitive. As
Genghis Khan used to say, "you can't conquer Asia without offending
a few people". But my reply was directed to the noting community
at large, in the spirit of a footnote, rather than to yourself.
/Tom
|
| 2083.24 | | SYORPD::DEEP | Bob Deep - SYO, DTN 256-5708 | Wed Sep 09 1992 10:10 | 5 |
| .23> Genghis Khan used to say, "you can't conquer Asia without offending
Where's Asia?
8^)
|
| 2083.25 | Issue #4 | RT128::BATES | NAS-ty Boy | Wed Sep 09 1992 10:38 | 129 |
|
From: DEMSUP::SUPPLYCHAIN "08-Sep-1992 1450" 8-SEP-1992 16:20:36.28
To: @JW.DIS,@TBM.DIS,@SC_COMM.DIS
CC: SUPPLYCHAIN
Subj: SUPPLY CHAIN UPDATE #4 - PLEASE FORWARD WIDELY
** Please forward widely **
*******************************************
** Supply Chain Update **
*******************************************
Issue 4
In our last Issue, we defined the Supply Chain and
talked to the scope of the Change Effort.
Continuing our communications, we include in this Issue:
Why are we doing this?
Customer Requirements
*******************************************
Why are we Re-engineering the Supply Chain?
Because:
Today, Digital operates 4-8 separate administrative and logistics
processes with dozens of information systems supporting each within each
geography. Business plans (marketing/engineering) do not regard Customer
services as a competitive advantage, and therefore do not consider
strategies such as simplified product offerings, "Design for Orderability", etc.
Our products are difficult to understand and to sell. It is difficult for
customers to do business with us.
New products are primarily driven by the Design Engineering community in a
serial process. Manufacturing and the Services organizations are usually
brought into the process after the development efforts are well underway.
Sales and Marketing are not integral to the process. Our time-to-market is
too long.
Our Supply Execution processes are driven by site-oriented focus and
metrics, sub-optimizing the supply chain. Actual customer leadtimes are
excessive and unpredictable, and are currently shortened through the use of
substantial inventory positions. Internal cycletimes are 2-3x industry
standard and 5-10x World Class, with lengthy supplier leadtimes. There
are multiple Requirements Plans driving manufacturing build schedules, with
little response to real customer demand.
Our sourcing and capacity planning processes are fragmented, with
questionable involvement and accountability of major stakeholders.
Our acquisition process were designed to support the traditional business
of acquiring components and materials for conversion in plants. These
processes do not adequately support the new work of providing third party
products, goods, software and services.
Across the supply chain, behavior is driven by organizational boundaries. We
have measurement systems which lead to conflicting behaviors across
functions. There are no clear management processes to ensure conflict
resolution and informed decision-making.
Existing processes and systems were not designed under any overarching plan
or methodology. They were designed for individual functional excellence,
resulting in organizations and systems that are counter-productive and
don't integrate.
Current processes are characterized by serial flows, multiple hand-offs,
redundant efforts and a widespread four-walls focus. There are little or no
standard business processes or practices. Processes are driven by group
metrics and sub-optimize our ability to achieve Digital-wide results.
Digital's customers and suppliers have established their own internal processes
and people dedicated to managing our complexity.
Overall, our business practices, processes, services, and products are not
competitive, and not satisfying our customer's requirements.
Customer Requirements:
Through recent Voice of the Customer and Benchmarking activities, we are
learning a great deal about what the customer wants from Digital. However,
we recognize a need to intensify this effort and ensure integration with
Marketing and Customer Service. To that end, a Voice of the Customer
initiative is defining and operationalizing a high integrity customer
feedback process.
Customers require Digital to:
. Be reliable and predictable - do what we say we are going to do
(i.e., deliver to commitment)
. Provide quality products and services that are easy to use and
simple to buy, at competitive prices
. Acknowledge the differing requirements within each customer's
organization (there is rarely ONE customer within a company)
. Handle customer obligations quickly, accurately, and
cost-effectively without expecting the customer to integrate Digital
Coming Next:
Magnitude of the Change....the FY94 Future State
****************************************************************************
We will be happy to take your feedback and questions. Send
your questions or comments to:
DEMSUP::SUPPLYCHAIN
If you would like to be added to our distribution list,
please respond to this same address.
We ask that you forward this memo, and those coming, widely.
Supply Chain Integrated Plan
|
| 2083.26 | Not everyone received the message about KO | GENRAL::KILGORE | Utah desert rat | Wed Sep 09 1992 11:27 | 10 |
| RE: .22 by SYSTEM::COCKBURN
>> I thought there was a way to reach all employees - the memo which announced
>> Ken's retirement seemed to go to all employees via an automatic route.
Craig, it only seemed that way. Never made it to my account.... I got mail
from a friend that work in SHR. Also, not all employees have system accounts
and some, even if they have them, don't know how to read mail. :-(
Judy
|
| 2083.27 | DIGITAL is automated, but informally | SGOUTL::BELDIN_R | D-Day: 203 days and counting | Wed Sep 09 1992 11:41 | 9 |
| re .26
I would guess that the "automatic route" that Craig mentioned
specifically includes the "electronic grape vine" known as E-mail and
VAXnotes.
:-)
Dick
|
| 2083.28 | Issue 5 | ULYSSE::WADE | | Thu Sep 17 1992 05:43 | 148 |
| From: DEMSUP::SUPPLYCHAIN "15-Sep-1992 1715" 15-SEP-1992 22:31:42.98
To: @JW.DIS,@TBM.DIS,@SC_COMM.DIS
CC: SUPPLYCHAIN
Subj: Supply Chain Update - Issue #5
** Please forward widely **
*******************************************
** Supply Chain Update **
*******************************************
Issue 5
In our last Issue, we addressed our current processes, and
why we were re-engineering the Supply Chain, and our
Customer's requirements in that context.
Continuing our communications, we include in this Issue
"The Magnitude of the Change":
Characteristics of the New Supply Chain
FY94 Future State
*******************************************
The Magnitude of the Change........
"Fast, flawless and simple delivery of value as perceived
by our customers such that Digital becomes the benchmark
toward which others strive."
Characteristics of Our Supply Chain Process of '94:
Simple yet Elegant
Focused on customer requirements, our administrative processes are fast,
efficient and meet our customers expectations 100% of the time the first time.
Product and service leadtime-driven menus drive predictable, competitive
delivery to customers and timely collection of receivables.
Supply chain wide management of value-creation minimizes investment,
maximizes predictability and speed, and provides customers with responsiveness
and flexibility.
Timely
Our leadtimes to customers are competitive; We deliver what our customers
want, on time, 100% of the time.
Our planning processes delivers timely information, enabling sourcing
and capacity investment decisions as well as cost-effective execution of
customer orders.
Our time-to-market processes are the shortest in the industry, enabling
more cost-effective designs and increased revenue opportunity.
Customer-focused
Our processes are driven by Customer-focused and Time-Based metrics which
optimize the whole supply chain and not the individual components,
departments, processes, or people within it.
We measure ourselves against our competitors within our industry and
those who excel at particular processes outside of our industry.
We measure events, processes and product which the customer sees.
FY94 Future State...The Way it Works:
-------------------------------------
Our FY94 "future state" model provides a customer-focused supply chain which
optimizes time, asset and cost performance.
Customers order products and services through a product menu which provides
specific, committed leadtimes for immediate quote and validation. This
menu system utilizes a world-wide customer reference file and supplier
profiles in order to satisfy customer requirements with integrity. Only
totally delivery-ready products and services are offered on this menu - we
don't offer products and services to customers until we are capable of
performing.
Customer orders are responded to with speed and predictability from
product/family pipelines. Customers select Digital as a preferred supplier
based on the quality of our offerings and level of logistics services.
Customer orders are fulfilled from goods positioned to satisfy customer
leadtime requirements (with predetermined stocking levels), a signal
triggers "pull" replenishment down the pipeline. This is a self-regulating
process; we no longer "push" products to a build plan.
The strategic and tactical planning processes are integrated into one
requirements plan that meets the needs of the supply chain. The strategic
planning information enables appropriate sourcing/capacity investment
decisions. The tactical focus provides timely and necessary information for
positioning the supply chain to meet leadtime commitments to our customers. As
the gap between cycletime and leadtime shrinks, we rely less on tactical
plans and more on our self-controlling JITQC execution process.
The business processes by which Digital's products and services are planned,
conceptualized and delivered have been redesigned to meet customer needs.
Marketing, services, engineering and MLM are partners in the process from
market definition through end-of-service life.
Products and services enter the supply chain at full "business readiness"
(fully customer-ready, and supported by the major functions in the company).
These products and services are added to our menu for customer availability
and we have in place at introduction a fully synchronized, capable pipeline.
Our Time to Market of these new products and services is competitive.
We utilize simplified, "best" business practices on a platform of common tools
and have standardization and discipline in our processes. We make decisions
quickly and communicate with clarity and vision. Our measurements motivate
teamwork and customer satisfaction.
Digital's new Supply chain balances customer needs, resources and assets.
It focuses on operational and pipeline excellence, incorporating best-in-
class practices and has become the benchmark for this work.
Digital's employees are informed, engaged, and focused on satisfying the
customer. The environment is supportive, fostering learning and dynamic
workstyles. We understand Digital's visions and business goals, and have
access to the information that enables good decisions.
The Supply Chain is a High Integrity, High Performing Organization. We are
meeting our customer requirements on time, every time. Digital is the
supplier and employer of choice.
****************************************************************************
We will be happy to take your feedback and questions. Send
your questions or comments to:
DEMSUP::SUPPLYCHAIN
If you would like to be added to our distribution list,
please respond to this same address.
We ask that you forward this memo, and those coming, widely.
|
| 2083.29 | Issue #6 | RT128::BATES | NAS-ty Boy | Tue Sep 29 1992 12:29 | 176 |
|
** Please forward widely **
*******************************************
** Supply Chain Update **
*******************************************
Issue 6
In our last Issue, we addressed the FY94 Future State
of the Supply Chain.
Continuing our communications, we include in this issue
abstracts of each of the three core processes in the
change effort, and identify the Process Change Leader
accountable for the effort.
*******************************************
SUPPLY EXECUTION PROGRAM - TOM TRACEY
The intent of the Supply Execution process is to create an execution
process which is self-regulating, "pulled" by customer orders. In
addition, to insure integration to the Requirements Planning process in
the Supply Chain.
The scope is from raw material supply to finished goods, to spares,
repairs and returns.
The primary objectives that drive the Supply Execution process are:
Improved service to Customers.
Reduction in Cost of Supply.
Reduction in Cumulative Cycle Time.
Time compression will be a key enabler to both Service and Cost
improvements.
The programmes to drive the above result include:
* Supply Chain Managers responsible for defining Business
goals and delivering them.
* Pipeline Management Process; Metrics, Tools and Business
Practices.
* Execution Process based on Menu Management and Pull Processes.
* Standard EDI Material Ordering Process:(Intersite).
* Product Menu`s based on competitive Lead Time.
* Standard Worldwide Processes,Tools and Metrics.
Success will not be measured in the implementation of various
programmes, but on the improvement in Customer Service and a reduction
in cycletime, assets, and cost.
CUSTOMER TO CUSTOMER PROGRAM - CARL KOOYOOMJIAN
The vision, simply stated, is that Digital will be the benchmark. The
scope of the Customer to Customer Model is worldwide and includes
Digital's hardware, software, services and solutions offerings.
The two primary objectives that guide the change program are:
* To make Logistics a strategic advantage in the
marketplace.
* To take cost and time out quickly without "breaking" our
ability to administer/support our customers and the
business.
The three key goals which drive all the change work are:
* Customer Satisfaction will increase to leadership status.
* Asset Utilization and Spending levels will be competitive.
* Implementation will be staged and completed within 24 months.
The approach to re-engineer and implement the change work will be to:
* Define core process capabilities for all Digital's product,
services, and solutions offerings from a customer's
perspective.
This is currently defined as:
-- On Demand Process Capability
-- Custom/Traditional Process Capability
-- Systems Integration Process Capability
* Define and formally program manage common requirements such
as:
-- Menu Management Process for Customer Offerings
-- Customer Reference Profiles
-- Business Practices and Business Systems
* Logistics and Manufacturing personnel from around the world
will be actively engaged in defining and implementing this
change work.
TOTAL LIFE CYCLE PROGRAM - RICH POWERS
Companies that can deliver products that fulfill customer's needs,
in the shortest time, with the lowest cost and the best quality will
be the industry leaders. Clearly, even though there needs to be a
balance in time, quality, and cost, the primary emphasis and the
greatest payback in profit must be placed on the time domain of product
introduction.
Towards that end, the Total Life Cycle Change Program will lead two
simultaneous efforts that dramatically accelerate the movement of
DIGITAL to industry leadership. One effort will focus on the
re-engineering of the Customer/Market Focus Business Planning Process.
The other effort will focus on the Solution Development and
Implementation Process. Some primary areas of work that will be
re-engineered are Product and Business Readiness, Management Processes
and Product Teaming.
The scope of this change effort includes all Systems and Peripheral
products and services (excluding EIS consulting services) which are
designed and produced, or procured, through to end of service life.
The characteristics of the future state can be summarized as follows:
An understanding of our customers' present and future needs,
coupled with DIGITAL'S strategic direction will exist. From this
understanding, the development of a detailed portfolio of products,
services and business plans that achieve profit will be
established.
A Customer/Market focused business planning process which will
fully engage Business Units in the Supply Chain.
The generation of Product and Services portfolios and business
plans will be done in an environment where all aspects of
customers' needs, external competition, and company strengths
and directions are built in.
The implementation will be the shortest in the industry since
it employs a cross-functional team design process where by the need
for testing and verification after the design is minimized through
this collaborative parallel process.
"The result of this program is that product plans will be based
on customer and market requirements. When product plans are
approved, the development and implementation teams will be able to
implement them rapidly. The plans will not be modified and revisited
on a constant basis as they are today," stated Rich.
There are two primary goals driving this program effort. The
first is Time Reduction. By the end of FY94, processes are in
place that on average will enable reduction of the product
introduction cycle by 50% across DIGITAL. The second is Product Cost
Reduction. By the end of FY94, information gained by
benchmarking, and the development of product family plans that
stress simple platforms and architectures, as well as reusability,
should enable reduction in product cost by 20% across DIGITAL.
This program will deliver approximately $150M - $180M of those savings
and larger amounts over time.
****************************************************************************
We will be happy to take your feedback and questions. Send
your questions or comments to:
DEMSUP::SUPPLYCHAIN
If you would like to be added to our distribution list,
please respond to this same address.
We ask that you forward this memo, and those coming, widely.
|
| 2083.30 | huh? | MAST::SCHUMANN | Save the skeet | Wed Sep 30 1992 18:38 | 1 |
| Does anybody know what this stuff means, in plain English?
|
| 2083.31 | | SDSVAX::SWEENEY | Patrick Sweeney in New York | Thu Oct 01 1992 08:51 | 11 |
| The update is a bit of a disappointment. It's written in the classic
academic style of a large aloof bureaucracy that has just discovered
"the customer" and wants to integrate it into its diverse processes.
Maybe it's Maynard-chic to pretend there isn't a competitive product
crisis, a financial crisis, and Digital's image-in-the-marketplace
crisis that is placing the company at risk.
I'm commenting on style: maybe inside the supply chain group, they are
doing the right thing. Nevertheless this style makes them appear to be
fluffy.
|
| 2083.32 | | XLIB::SCHAFER | Mark Schafer, ISV Tech. Support | Thu Oct 01 1992 13:19 | 5 |
| At least you have Tom, Carl, and Rich all named in the article.
Bureaucrats would not want to be questioned about their works. Try
contacting them with your questions.
Mark
|
| 2083.33 | Mfg & Logistics Benchmarking Comm Message #1 | RT128::BATES | NAS-ty Boy | Thu Oct 01 1992 21:51 | 184 |
| From: DEMSUP::SUPPLYCHAIN "01-Oct-1992 1656" 1-OCT-1992 19:43:04.12
To: @BLT.DIS,@JW.DIS,@TBM.DIS,@SC_COMM.DIS
CC: SUPPLYCHAIN
Subj: MFG & LOGISTICS BENCHMARKING COMMUNICATIONS MESSAGE #1
WORLDWIDE MANUFACTURING AND LOGISTICS
BENCHMARKING LEADERSHIP TEAM
This is the first of an ongoing series of Communication Messages
that will be delivered by the WW Manufacturing and Logistics
Benchmarking Leadership Team. Our intent is to provide a continuous
flow of information and data pertaining to the Benchmarking Activities
across the Supply Chain and those activities being conducted by the
various Business entities across Digital.
The first in this series of messages is attached. It's purpose is
to explain the background and scope of this work. Future messages
will contain information regarding:
- Current Generic State of Benchmarking, Issues and Concerns and
the Current State of Benchmarking work within the Six Supply
Chain Business Process areas, e.g., Customer to Customer, Supply
Execution, Total Life Cycle, Requirements Planning, Acquisition
and Make/Buy Sourcing and Capcity Planning. In addition, we will
include work being conducted in Services, Software, and Functional
areas such as Finance and Development.
- The Benchmarking Program Office Vision, Future State, Goals and
Objectives, Dependencies and our Team Model.
- Definitions and differences around Benchmarking (The Process of
Benchmarking), as compared to Competitive Analysis, Teardowns,
and Baselining.
- Best Practices, Processes and Services and information
with regards to the Measurement and Metrics Studies being
conducted within the Supply Chain.
- Deliverables and Milestones and Success Stories.
- Consortium and Partnership work and the progress made in these
areas.
We encourage you to distribute these messages widely, and solicit
feedback from all employees. The WW Manufacturing and Logistics
Benchmarking Team will manage a A Closed Loop Process using a
'Perception Management' approach:
"What We Heard"
"What We Will Be Doing About What We Heard"
"What Has Changed As a Result"
Please send responses to:
Sharon Sturtevant
WW Mfg. & Logistics Benchmarking Mgr.
Dtn: 229-7817
Node: Demsup::Sturtevant
WORLDWIDE MANUFACTURING AND LOGISTICS
BENCHMARKING LEADERSHIP TEAM
COMMUNICATION MESSAGE #1
SCOPE: BENCHMARKING THROUGHOUT MANUFACTURING AND LOGISTICS
AND LEVERAGING WORK INTO ENGINEERING, MARKETING AND SALES,
SERVICE CREATION UNITS, SOFTWARE AND FUNCTIONS.
PRELUDE:
Faced with the Global challenges of the 90's, an everchanging
market and economy, strong emphasis on CUSTOMER SATISFACTION,
SPEED, QUALITY AND COMPETITIVE PRICES, it was recognized that
Digital Manufacturing and Logistics needed to make a Dramatic
PARIDIGM SHIFT, to not only be Competitive, but to be recognized
as a Competitive Leader in the World Market.
A Paridigm Shift FROM our Traditional Business Practices, Policies
and Procedures, and Business Processes, Measurements and Metrics
that have been internally focused and organizations and functions
that are individually optimized.......
TO
An Organization that.......Focuses on the Customer
Understands Customer Requirements
Anticipates Customer's Future Needs
And ACTS
An Organization that.......Drives Quantum Change and Measures
never-ending improvement.
An Organization where......Knowledge is rapidly transformed into
ACTION.
An Organization that.......Takes a Systemic and Holistic approach
to work thus optimizing the whole.
An Organization that.......Recognizes that Re-Design, Re-Engineering
and Re-Structuring will be necessary for
our "Survival".
An Organization that.......Provides a supporting and continuous
Learning Environment which empowers and
enables Change.
An Organization that.......Recognizes and Acknowledges that the
People are the Company, thus development,
support structure, rewards and measurements
are based on contribution to the collective
success of Digital.
BACKGROUND:
In 1991, Bob Palmer, V.P. of WW Manufacaturing, endorsed and embraced
BENCHMARKING as a Key Enabler to drive the changes required to
"Get Competitive" and "Stay Competitive". Bob, with the support of
Manufacturing Management Committee Members, chartered the Quality and
Reliability Group under the Leadership of Tom Weyant to initiate
Benchmarking in Manufacturing.
In February of 1991, the Benchmarking Leadership Team (BLT) was formed.
The team was comprised of members from all Product Creation Units
(PCU's), Areas and Functions. Their role was to Lead, Plan, Integrate,
and Communicate Benchmarking across WW Manufacturing and its Business
Partners.
In June of 1991, Sharon Sturtevant joined the Quality and Reliability
Group as the WW Manufacturing Benchmarking Program Manager. The scope
of the work was expanded to include all of Manufacturing and Logistics,
and to leverage Benchmarking Best Practices, and Findings into
Engineering, Marketing and Sales, Services and Software Groups. The role
was also expanded to include "Drive Change" and to provide internal
consulting services to facilitate benchmarking acitivities.
The Benchmarking Leadership Team designed the Framework and Platform,
identified the key Logistical Processes, the Supply Processes and
the Product Life Cycle Processes and the dependences each process had
on one another. In essence, the view and approach became Systemic/
Holistic. We identified the work without organizational imposed
boundaries, and agreed to focus on three critical areas.
1. Product, which included the Product Strategy Development,
Design and Introduction, Steady State Product Management,
and End of Life.
2. Styles, focusing on all operations within Manufacturing Sites
and specific Stules of Manufacturing, for example, Modules
Style D2.
3. Logisitcs, concentrating on that portion of the Supply Chain
relative to the Order Management Process, the Supply Process,
Requirements Planning Processes, Service Logistics and Design
for Logistics.
Today, there are approximately 100+ Benchmarking Acativities that
have been identified and mapped to our top level processes for our
three focus areas. These activities range from Competitive Analysis,
Product Teardowns, and Baseline Studies to full Benchmarking Activities.
Benchmarking in Manufacturing has been recognized by our Internal
Audit Team as one of the most organized efforts in Digital
and found to be the only organization that performs cost/benefit
studies based on Benchmarking findings. "The people involved in
Manufacturing Benchmarking were among its most enthusiastic supporters,
and in fact, much of the success in this operation unit depended on
the people who were involved and their commitment to the process."
|
| 2083.34 | | SHIRE::GOLDBLATT | The Spectator | Fri Oct 02 1992 06:29 | 24 |
| Apart from the style of the language in the Supply Chain communications,
there are two other things that bother me. First, there doesn't appear
to be any sense of urgency: the planned dates for "improvements" are 2-3
years out. Then there's the fact that the problems of Digital's operations
as well as viable solutions are well known and documented, and this since
many years. Is there really a need to start all over again analysing and
designing ?
Some very simple things could be done that would go along way to improving
the supply chain eg. changing the event that allows manufacturing to
recognize its revenue from "off the dock" to "customer acceptance" time,
and changing the sales recognition metric from certs to revenue. Both of
these would produce an immediate improvement in DSO and AR and have an
even bigger impact in how customers view dealing with Digital ie. our image
in the marketplace. Unfortunately, both of these are fiercly guarded
by their respective functions.
Perhaps the one hopeful note in the Supply Chain documents is that the
whole chain is being treated, and not only the separate parts. In any case,
it's not magic but simple common business management that's required to
fix this company's problems.
David - European Capability Manager for IEM and CCOO
|
| 2083.35 | Action not words | MIACT::WALLACE | john wallace @ bbp | Fri Oct 02 1992 07:20 | 27 |
| Well I for one like the fact that the words ACT and ACTION appear in
CAPITALS in a couple of places.
For far too long the Digital approach, as marketed to customers and as used
inside, has been
PLAN ... DESIGN ... IMPLEMENT ... MANAGE
Now, readers, we all know what MANAGE traditionally means in Digital,
don't we :-)
There's a minor variation on this theme, which I like, from a Dr Deming
and others, which says
PLAN ... IMPLEMENT ... CHECK ... ACT
And that minor difference in words highlights a whole difference in
approach, one which visibly came out in a couple of the memos just
posted. Look back at why you did it, see if it did what you expected,
and act accordingly. Don't just start again from scratch (e.g. with the
next re-organisation...)
Of course all we've seen so far is words. I'm just hoping the actions
match up.
regards
john
|
| 2083.36 | Is 'ACTION' real action? | CLARID::ROEMER | | Mon Oct 05 1992 13:24 | 23 |
| After scanning this quickly, so far, I see (once more) a lot of hype
about how wonderful we will be. How often, over the last couple of
years, have YOU seen: 'Best in class', Market Leader', 'Total Quality'
and so on, in business and other plans.
Of course, no one is supposed to say (at least *I* am not) that *this*
time, nothing will be different. Why, with a brand-new chief (who needs
everything he can get) it's GOT to be different.
I am only saying that the past plans realized very few 'best in class'
positions, market-leader positions etc. Could it be that we have taken
the plans for the accomplishment?
Somewhere in this note it says that the measurement is the end-result.
So, let us not get exited over the fact that one of these plan-makers
now writes action IN CAPITALS. I think the vision is fine but would
like to know what needs to be done (and WILL be done) in FY93 by whom
and by when.
Al
|
| 2083.37 | Just like politics... | MR4DEC::FBUTLER | | Mon Oct 05 1992 13:31 | 8 |
| re: -1
I agree. Pretty much the same questions I have in regards to the
current political campaign. Everything these days seems to be "content
free".
Jim
|
| 2083.38 | First tentative steps to MQA reveal - holes! | IW::WARING | Silicon,*Software*,Services | Mon Oct 05 1992 14:49 | 10 |
| Having said that, my group did their initial process reviews today. For what
I thought was a very competant team, we're so full of holes it's unbelievable.
Quite a lot of the supply chain work will fall out of the gaps we're seeing
here.
The one thing that helps is that we have a very senior person here who is
driving the ISO9000/MQA/TQM effort right across all the functions in our
subsidiary. We have a lot to learn from our manufacturing colleagues!
- Ian W.
|
| 2083.39 | Issue #7 | RT128::BATES | NAS-ty Boy | Mon Oct 05 1992 20:18 | 236 |
| From: DEMSUP::SUPPLYCHAIN "05-Oct-1992 1612" 5-OCT-1992 19:15:29.22
To: @JW.DIS,@SC_COMM.DIS,@TBM.DIS
CC: SUPPLYCHAIN
Subj: Supply Chain Update - Issue 7
** Please forward widely **
*******************************************
** Supply Chain Update **
*******************************************
Issue 7
In our last Issue, we shared the program abstracts of
each of the three core process areas.
Continuing our communications, we include in this Issue
the abstracts for each of the three integrative processes:
Requirements Planning
Acquisition
Sourcing and Capacity Planning
*******************************************
REQUIREMENTS PLANNING PROGRAM - JON BRALEY
The vision of the future Requirements Planning process is to provide
the Supply Chain with timely and necessary planning information to
enable both appropriate sourcing and capacity investment decisions
and cost effective execution of customer orders. The scope of this
change effort will include any products or product related services
which are ordered by our customers and delivered through the
Supply Chain.
The required attributes of re-engineered Requirements Planning process
can be summarized as follows:
The Strategic and tactical planning processes will be
integrated into one Supply Chain Planning process with an
integrated calendar driving management reviews and decisions.
Strategic focus will be on incorporating planning information
from the Total Life Cycle and Sourcing and Capacity
processes.
Tactical focus will be on providing the execution process
with the timely and necessary information to position the
Supply Chain to meet lead time commitments to our customers.
As the gap between cycle time and lead time shrinks we will
rely less on tactical plans and more on a self-controlling
JITQC Execution process.
Plans will be updated as often as dictated by business
conditions and will be instantly accessible throughout the
Supply Chain.
We will not pass plans serially. We will not construct a
build plan. We will not capture all plans centrally. We
will react to real customer pull.
The overaching goal for the program to re-engineer the Requirements
Planning process is the delivery of dramatic reduction in planning
cycle time. We will achieve best-in-class status by reducing
planning cycle time by 80%. The major deliverables that have been
identified are:
Implementation of a streamlined Demand Planning tool.
Implementation of one Requirements Planning information
Warehouse ("Billboard") and supporting management processes.
Implementation of a Parallel Pipeline Planning (PPP) tools
and management processes.
Success in reaching this goal will be indicated when the entire
pipeline are operating to consistent plans, the integrity of the data
in these plans is unquestioned, and the strategic and tactical
requirements planning are integrated.
SOURCING AND CAPACITY PLANNING PROGRAM - LINDA TRAFTION
The vision supporting Sourcing and Capacity Planning Change program
states that Digital will have a five (5) year Sourcing and Capacity
Plan. The plan will be sound, responsible and clearly defined. The
plan will be reviewed and refreshed annually to ensure implementation.
The Sourcing and Capacity Planning process will provide information to
support management decision making and ensure Manufacturing and
Logistic Management (MLM) sets clear make/buy strategic direction,
optimizes capacity and implements sourcing strategies which support a
world class, customer driven Supply Chain. The scope of this work
includes all tangible products (FY93) and services (FY94) which flow
through the Supply Chain.
The required attributes of the re-engineered Sourcing and Capacity
Planning process states that a simple and responsible management
process will be implemented, characterized by high integrity and high
performance. Business questions regarding sourcing and capacity
planning will be channeled through this process and addressed in
support of a competitive and integrated Supply Chain. Customer
requirements and competitiveness will drive all analysis and decision
making.
The major deliverables of the Sourcing and Capacity Planning process
are:
A five year Supply Chain Capacity and Sourcing Plan will be
available for Digital Management. This plan will be driven by
market and technology directions as well as competitive cost,
time and profitability goals.
A process for ongoing review and tactical decision making will
be defined and implemented.
These deliverables will be achieved through a management process which
will insure business requirements are clearly defined and responded to
in a timely manner. Key contributor's and customers to the process are
MLM, Product Design and Manufacturing, Logistics and Manufacturing.
Success of the Sourcing and Capacity Planning re-engineering efforts
will be declared when:
Management has access to information required to make informed
decisions.
The integrity of the process and information is unquestionable!
The Supply Chain demonstrates confidence in the process by
using it!
Decisions are made, a plan is documented (5 years) and
implemented!
Goals of 2-3X improvement in Customer Satisfaction and $2B
reduction in Supply Chain costs are met!
ACQUISITION PROGRAM - CRAIG AUMAN
Acquisition in the Supply Chain
In today's interdependent business environment, Acquisition plays an
increasingly important role. As customer needs require more
diversified and complex solutions, Digital looks to suppliers as a
means to broaden the company's capabilities and product offerings. To
be competitive, we need to increase our responsiveness by:
o taking advantage of industry standard components in our products
we create
o sourcing off-the-shelf hardware and software
o incorporating third-party products and services in our solutions
to meet customer's needs
The purpose of the Acquisition Process is to respond to Digital's
customer satisfaction and profitability goals by optimizing the
company's Supply Chain. In its integrative role, acquisition cuts
across the three processes in the supply pipeline (Customer to
Customer, Total Life Cycle, and Supply Execution) and intersects with
the two other integrative processes (Requirements Planning and Make/Buy
Sourcing).
The Acquisition Program
Although a great deal of innovative Acquisition work is going on within
the company, a formal program to specifically look at Acquisition work
throughout the Supply Chain is relatively new.
Our first task was to scope the work and identify a team to re-engineer
the Acquisition Process. This team is responsible for seeing the
re-engineered process through to successful implementation. Members of
the team include operating managers from various segments of the
businesses and geographies, as well as representation from Corporate
Purchasing.
Acquisition Re-engineering Team
o Craig Auman Manufacturing
o Ray Bedard IM&T
o Dora Chu USA
o Ed Chwalek Storage
o Bob Decelles Finance
o Joe Hayek Corporate Purchasing
o Brendan O'Malley Europe
o Ulf Stoeckelmann Semi-Conductors
o Jack Tracy GIA
o Vitoria Zammit Process Re-engineering
Program Activities
To effectively support the work of the other links in the Supply
Chain, it is critical that we develop an in-depth understanding of
their dependencies on Acquisition. To that end, we are currently
meeting with other program managers to identify and define our
interdependencies. By doing this, we are operating under the
customer/supplier relationship model we want to promote throughout the
Supply Chain.
As we move forward with the re-engineering work, we will communicate
our progress through this newsletter and a number of other vehicles.
We will continue to be in close contact with the leaders of the other
Supply Chain programs. We will keep a customer focus and will also
involve suppliers. Throughout the process, we will engage people who
bring a variety of acquisition perspectives. We will include those who
work on defining requirements and specifications, select suppliers,
negotiate contracts, and manage the execution process for the products
and services we acquire. Together, we will deliver the "Best in Class"
acquisition process in the industry.
****************************************************************************
We will be happy to take your feedback and questions. Send
your questions or comments to:
DEMSUP::SUPPLYCHAIN
If you would like to be added to our distribution list,
please respond to this same address.
We ask that you forward this memo, and those coming, widely.
|
| 2083.40 | see what I learned from my manager??!!!! | GUIDUK::EVANS_BR | Bruce Evans, CASE Consultant | Mon Oct 05 1992 20:53 | 13 |
| re: updates that are 100+ lines long
set mode/manager_viewpoint
Anytime I see text that takes up more than 24 lines to make its point
to me, I skip it, since that tells me that person cannot get their
thoughts well organized and will waste my time.
set mode/me_again
too many content free "speeches" -- I vote with my time, my money. I
work for a company that gives me what I need today. I vote for a
politician that gives me what I want today (including writing-in)
|
| 2083.41 | | ASICS::LESLIE | There go the lights! | Tue Oct 06 1992 15:18 | 5 |
| I find the section on Requirements planning to be naive. As one who has
worked in this area for several years I find this all astonishingly
depressing.
/a
|
| 2083.42 | no answer yet ! | SHIRE::GOLDBLATT | The Spectator | Mon Oct 12 1992 04:32 | 20 |
| From: SHIRE::GOLDBLATT 6-OCT-1992 09:28:20.93
To: DEMSUP::SUPPLYCHAIN
CC: GOLDBLATT
Subj: Supply Chain Document #7
Hello:
The Supply Chain document #7, dealing with planning process, appears to me
to be lacking the most important links with Sales and Marketing that would
enable effective product planning. Both the "Requirements Planning Program"
and the "Sourcing and Capacity Planning" require strategic and tactical
marketing plans and sales forecasts and plans as necessary inputs. I don't
understand how Supply Chain planning can succeed without this information.
Could you please explain how you expect the Supply Chain planning to follow
market demand by product, geography and industry ?
Regards,
David Goldblatt - European Capability Manager for the IEM and CCOO services
|
| 2083.43 | Benchmarking Communication Update #2 | RT128::BATES | NAS-ty Boy | Mon Nov 09 1992 09:13 | 872 |
| From: ISLNDS::BENCHMARKING "05-Nov-1992 1452" 6-NOV-1992 16:58:54.30
To: @BLT.DIS,@JW.DIS,@PGMOFF.DIS,@SC_COMM.DIS,@MCSTAFF.DIS,@TBM.DIS,@MLM.DIS
CC:
Subj: SUPPLY CHAIN - BENCHMARKING COMMUNICATION UPDATE #2
****************************
SUPPLY CHAIN
****************************
MANUFACTURING and LOGISTICS
BENCHMARKING LEADERSHIP TEAM
COMMUNICATIONS MESSAGE #2
-------------------------------------------------------------------------
. We were very pleased to receive so many responses to our first
Benchmarking Communication Message. In our attempt to response
to each of you on an individual basis, we noted that many of you
were asking similar questions and that there appeared to be one
overall theme.
The need for Integration and Connectivity to same or similar
Benchmarking efforts and a real need to know findings and results
of the efforts.
. Sharing and understanding efforts taking place in order to
leverage resources and findings.
. Status of Benchmarking efforts.
. How successful have we been in follow-through, e.g.,
Action Planning, Implementation and Measuring.
. In an effort to respond to your needs we have taken two
approaches. The first being to provide you with a LISTING
of the M&L BENCHMARKING LEADERSHIP TEAM LEADERS for SPECIFIC
PROCESS/FOCUS AREAS which is ATTACHMENT (A).
The second approach is to REQUEST HELP FROM all of YOU in IDENTIFYING
ALL the BENCHMARKING PROGRAMS/PROJECTS taking place within
Manufacturing and Logisitics and PROVIDING the SPECIFICS around
these ACTIVITIES. Please see ATTACHMENT (B).
By following the procedure as outlined in Attachment (B), it will
provide us with the information necessary in order TO IDENTIFY
and MAP Benchmarking Programs/Projects, Competitive Analysis
Activities, Product Teardowns, Baseline Studies, Consortium and
Partnership work, Measurements and Metrics Studies, etc., TO
SUPPLY CHAIN PROCESSES, GOALS AND DELIVERABLES.
Once we receive the information as outlined in Attachment (B),
WE inturn WILL PROVIDE YOU with an INTEGRATED ROADMAP MATRIX
which will clearly articulate WHERE YOUR WORK FITS within the
TOTAL SUPPLY CHAIN and the IMPACT on each of the SUPPLY CHAIN
PROCESS AREAS.
In addition, as we collect the BENCHMARKING DATA AND REPORTS
they WILL BE CATALOGUED and MADE AVAILABLE TO YOU upon request.
WE need to to move rapidly on this and NOT MISS OUR OPPORTUNITY
TO SHARE and INCORPORATE the ACTIVITIES that we are undertaking
and the FINDINGS that we already have, INTO the INTEGRATED
SUPPLY CHAIN PROGRAM PLAN, IMPLEMENTATION PLAN AND MEASUREMENTS
and METRICS.
WE NEED TO ACT NOW, without delay. Therefore, your RESPONSES are
DUE by NOVEMBER 16, 1992. Should there be any questions, please
contact your Benchmarking Team Leader for your area of focus for
assistance.
All RESPONSES are to be SENT to Islnds::Benchmarking and a Hardcopy
of any Reports that you might have to:
Pat Stevens at BXC1-3 B6.
--------------------------
We thank you in advance for YOUR INVOLVEMENT AND PARTICIPATION.
Note: We do recognize that some of you have gone through a similar
process known as the Benchmarking Registry. Although, this is
a good starting point, the information that we have in many
cases is outdated and the information that has been received
is not sufficient to meet our current needs.
ATTACHMENT (A)
--------------
MANUFACATURING and LOGISTICS
BENCHMARKING LEADERSHIP TEAM STRUCTURE
Manufacturing & Logistics Sharon Sturtevant
Benchmarking Manager Dtn: 229-7817
Node: DEMSUP::Sturtevant
Program/Project Manager Pat Stevens
Dtn: 229-7815
Node:ISLNDS::Stevens
Measurements and Metrics Dave Demers
& Key Consortium Work Dtn: 229-7561
Team Leader Node:ISLNDS::Demers_D
Total Life Cycle Art Aronovitz
Team Leader Dtn: 229-7706
Node: ISLNDS::Aronovitz
. Product Strategy Development
. Product Design and Introduction
. Process Development
. Steady State Product Management
. Product End of Life
Customer To Customer John Keaveny
Team Leader Dtn: 232-3762
Node: ISLNDS::Keaveny
. Order Administration
. Order Fulfillment
Supply Execution Dick Crino
Team Leader Dtn: 229-7679
Node: ISLNDS::Crino
. Styles of Manufacturing
. Supply Points
Requirements Planning Nancy Shear
Team Leader Dtn: 229-7935
Node: ISLNDS::Shear
. Demand Planning Process
. Demand/Supply Pipeline Process
. Demand/Supply Management Process
Acquisition Ken Kilburn
Team Leader Dtn: 244-7356
Node:GIAMEM::Kilburn
. Material Acquisition Process
. Purchasing
. Key Buyouts
Sourcing and Capacity Planning TBD
Team Leader
Software TBD
Team Leader
. Customer to Customer
. Products
. Style
. Service
. Mfg
Services Tom Murach
Team Leader Dtn: 838-2134
Node:HOO78C::Murach
. Field
. Multi-Vendor
. EIS
Development TBD
Team Leader
. Development Process
. Compensation/Rewards/Recognition
Consultants/Other Key Contributors
-----------------------------------
Tony Spirito - Representing Manufacturing Competitive Value
Jim Hart - Supply Chain Program Office Program Manager
Joan Costello - Providing Communications Consulting
Bruce Daggett - Providing Finance Functional Benchmarking and Support
Steve Putur - Providing ABC and Budget Support
Henry Theberge - IM&T Consulting
SUPPLY CHAIN PROCESS AREAS
--------------------------
CORE PROCESS AREAS MLM LEADER(s) PROCESS CHANGE BENCHMARKING
LEADER CHANGE LEADER
------------------ --------------- --------------- --------------
CUSTOMER TO CUSTOMER Kooyoomjian Carl Kooyoomjian John Keaveny
TOTAL LIFE CYCLE Walker Richie Powers Art Aronovitz
Pete Rego
SUPPLY EXECUTION Jennings Tom Tracey Dick Crino
INTEGRATIVE PROCESS
AREAS
-------------------
REQUIREMENTS PLANNING McCluney Jon Braley Nancy Shear
ACQUISITION McCluney Craig Auman Ken Kilburn
SOURCING & CAPACITY Jennings Linda Trafton TBD
PLANNING
ENABLING PROCESS AREAS
----------------------
FINANCE O'Leary Phil Watson Bruce Daggett
IM&T Bedard Ray Bedard Henry Theberge
REFERENCE TBD TBD TBD
HUMAN RESOURCES TBD Mimi Hooper TBD
TECHNOLOGY Walker Richie Powers Dick Crino
BENCHMARKING Walker Sharon Sturtevant Sharon Sturtevant
Jennings
McCluney
TQM " " " " " "
ATTACHMENT (B)
BENCHMARKING PROGRAM/PROJECT DOCUMENT
PLEASE COMPLETE AND SUBMIT TO ISLNDS::BENCHMARKING and/or
Attention Pat Stevens BXC1-3 B6 NO LATER THAN 11/16/92.
I. INTRODUCTION
The Worldwide Manufacturing and Logistics Benchmarking Program/
Project Management Process is GUIDED BY the STRATEGIC DIRECTION
as set forth by the SUPPLY CHAIN INTEGRATIVE FRAMEWORK. The
MANAGEMENT PROCESS developed by the Manufacturing and Logistics
Leadership Team is DESIGNED TO EMPOWER EFFECTIVE CHANGE while
MINIMIZING REDUNDANT EFFOTS. The Process ENCOURAGES the CREATION
and EXECUTION OF PROJECTS with respect to GOALS. It will provide
the MEANS FOR:
- LAUNCHING and MANAGING INDIVIDUAL PROJECTS
- ENSURING ACTIVE SENIOR MANAGEMENT SUPPORT
- PROVIDES a FRAMEWORK for CATEGORIZING WORK
- ALIGNMENT of the WORK to SUPPLY CHAIN PROCESSES and GOALS.
- OPTIMIZATION of ACTIVITIES and ALLOCATION OF RESOURCES.
- CLEAR LINKAGE between BUSINESS STRATEGIES and WORK.
The Benchmarking Program/Project Management Process and the
Scope is focused on:
- All Benchmarking Activities taking place in Manufacturing
and Logistics.
- Projects pertaining to:
. Benchmarking Programs/Projects
. Baseline Studies
. Competitive Analysis Activities
. Product Teardowns
. Consortium or Partnership Work
. Measurements and Metrics Studies
We will pay particular attention to:
. PROJECT SCOPE and FOCUS
. DEGREE of COLLABORATIVE EFFORT/CROSS-PROCESS INTEGRATION
. USE of STANDARDS
. PROGRESS
. RESULTS
I.INTRODUCTION (continued)
EXPECTED OUTCOME of this Process is:
. WORK ALIGNMENT
. INTEGRATION of EFFORTS
. PRIORITIZATION
. LEVERAGING of WORK, FINDINGS AND RESOURCES
. FUNDING and SPENDING DECISIONS
. ACTION
. MEASUREMENTS
. RESULTS
The Benchmarking Leadership Team WILL:
. CONTINUE the ALIGNMENT PROCESS
. MONITOR PROGRESS (Critical Path Activities & Milestones)
. REPORT PROGRESS TO YOU, MLM and the SUPPLY CHAIN PROGRAM
OFFICE on a QUARTERLY BASIS.
. BREAK DOWN BARRIES
. ASSIST in the RESOLUTION of YOUR ISSUES and CONCERNS.
II. PROCESS
Step I. SUBMIT PROGRAM PROJECT PLANS
Plans are comprised of three forms:
- Program/Project Profile
- Business Requirements
- Program/Project Deliverables
Transmit the completed forms in Electronic Form or
Hardcopy to ISLNDS::BENCHMARKING or to the Attention
of Pat Stevens BXC1-3 B6.
Step II. WORK WITH THE APPROPRIATE BENCHMARKING TEAM LEADER
The Benchmarking Leadership Team reviewing your
Program/Project may need clarification of your plan.
Step III. PROGRAM/PROJECT REPORTING
Program/Project Leaders will be expected to send
status updates by the 26th of December 1992,
March 26, 1993, June 26, 1993, September 26, 1993,
December 26, 1993, March 26, 1994, June 1994,
September 26, 1994 and December 26, 1994.
Status updates are to include:
. Progress towards Goals
. Milestone Plan (Deliverables, Activities, Dates)
. Resources and Spending
The Benchmarking Leadership Team WILL TRACK PROGRESS
against your Program/Project Plan TO ASSESS PROJECT
PERFORMANCE.
Once the effort is completed, or a particular phase
is completed, a Report is to be submitted to the
Benchmarking Leadership Team which shall include at
a minimum:
. SUMMARY of the Program/Project
. FINDINGS...Best Practices, Processes, Services
and any measurements or metrics you may wish to
include.
. The RESULTS (Action Plans, Implementation, Success)
. RECOMMENDATIONS or COMMENTS (What Worked, What
Didn't Work)
Attached you will find the forms to be completed which provides space
for general information as well as the best available information that
describes the value of your project. The Benchmarking Leadership Team
will work with you to complete and refine the information on the forms
once the project's intent is understood.
In addition, we have included sample forms and filled in examples.
Acknowledgement: Special thanks to Ray Bedard and the team of people
who developed the Digital Equipment Corporation
Manufacturing & Logistics Investment Management
Process Advice Package dated June 2, 1992. This was
most useful in the development of the Benchmarking
Leadership Team Program/Project Management Process.
BENCHMARKING PROGRAM/PROJECT PROFILE
FORM
PROJECT NAME: Enter the name of your project.
PROJECT SPONSOR: Enter the Name, Organization, Cost Center
and Site of the Business Sponsor for the project.
PROJECT LEADER: Enter the Name of the Project Leader, Organization,
Cost Center, Site of the Project Leader, Electronic
Mail Address and DTN.
PROCESS CATEGORY: Enter the process category that best describes or
fits the nature of the work being done. Categories
include:
. Customer to Customer Process
. Supply Execution Process
. Total Life Cycle Process
. Acquisition Process
. Requirements Planning Process
. Sourcing & Capacity Planning Process
. Other: IM&T, Finance, Reference, Human Resource,
Personnel..........
PROJECT TYPE: Indicate if this project is an Enhancement Project,
one in support of a Steady-State Process or one
creating a new process. (See Note below)
PROJECT DESCRIPTION : Brief Narrative on What the Project is/what you
are doing.
PROJECT CATEGORY: Indicate if this is a Benchmarking Project, Competitive
Analysis, Product Teardown, Baseline Study, Consortium/
Partnership, Measurements and Metrics Study.
STATUS OF PROJECT: Enter the Status Category as listed below:(as of_____)
(date)
Status (see description below) Start Sch.Completion Completion
------ Date Date Date
Note: PROJECT TYPE DEFINITIONS:
Enhancement Project: Work that significantly modifies or
implements new process functionality.
Steady State Project: Reflects the work needed to carry on
the normal functioning of a process,
including minor functional and cosmetic
enhancement.
New Process: Creation of a new process.
BENCHMARKING PROGRAM/PROJECT PROFILE
FORM
STATUS OF PROJECT DEFINITIONS:
1. PLANNING a NEW PROJECT
2. IN PROGRESS (Planning, Identifying Success Factors,
baselining, data collection, visiting Best
of Class Companies, Analysis, etc..)
3. REPORT ISSUED
4. ACTION PLAN IN PLACE
5. FINDINGS IMPLEMENTED
6. RESULTS
7. MEASUREMENT
8. MONITORING
NOTE: If Project is complete - Please send Report as well as:
- Progress Towards Goals
- Milestone Plan (Deliverables, Activities, Dates)
- Resources and Spending
BUSINESS REQUIREMENTS
FORM
BUSINESS REQUIREMENTS: Identify the Business Requirements
that are driving the need for this project.
ANTICIPATED BENEFITS: Describe the anticipated benefits that this
project will provide, opportunities, risks
(of not doing this work), return on investment.
INVESTMENT REQUIRED: Show by Quarter for Fiscal Year '93 and '94.
(Internal)
CONSULTING SERVICES: Provide Name of the External Consulting Firm,
(External) a brief description of what services are
being provided and the cost of the services.
RESOURCES REQUIRED: Describe if this is an intact team, a virtual
team etc., the number of resources that are
required and the time (% of time) required
by each resource to do this work.
===========================================================================
SAMPLE
BUSINESS REQUIREMENTS:
1) BUSINESS PROBLEM STATEMENT
EX. Inability to trace site aged inventory to product level
ownership, from lowest parts to top level saleable parents.
2) GOAL STATEMENT
EX. The goal is to systematically allocate and productize all
inventory assets within the Corporation for full inventory
visibility and strategic inventory/asset management.
3) OBJECTIVE
EX. Development and Implementation of a process and method
to product code all site inventories.
ANTICIPATED BENEFITS:
BENEFITS
EX. . Consistent Inventory Product Codes
. Consistent Allocation Process
. Alignment of Inventory
. Elimination of Stove-Piped Activities
BUSINESS REQUIREMENTS
FORM
SAMPLE
OPPORTUNITIES
EX. . Allow for the balance of inventory as part of the
Demand/Supply Process.
. Ability to match inventory related to Corporate
Revenue activitiy. Inventory results with final
Revenue Plans.
RISKS (of not doing this project)
EX. . Misallocation of inventory to wrong product.
. Utilizing wrong interval of time in the allocation
process.
. Long compute process time allocated to the process.
RETURN ON INVESTMENT
EX. . Worldwide ending inventories tracking at $1.8b
. Potential 10-25% reduction to inventories is
equivalent to $180-$450m
. Every 1 week of inventory holdings eliminated
= $160m
. 4 weeks elimination of inventory will target
worldwide turns of 6.8
PROGRAM/PROJECT DELIVERABLES
FORM
PROJECT DELIVERABLES: Describe what you expect to deliver by doing
this work.
DEPENDENCIES: Who do you depend upon to reach successful
completion of the project and who will follow-
through with implementation.
ISSUES/CONCERNS: Address any barriers or difficulties that you
anticipate encountering that may inhibit you
from fulfilling/completing this project. Also,
list or descibe any assistance that you may
require.
MISCELLANEOUS
CONSORTIUMS or PARTNERSHIPS: Name(s) of the Companies who are
participating.
COMPANIES BENCHMARKED or PLANNED TO BE BENCHMARKED: Name(s) of the
companies.
PLEASE COMPLETE FORM AND RETURN
===============================
BENCHMARKING PROGRAM/PROJECT
PROFILE FORM
---------------------------------------------------------------------------
PROJECT NAME:___________________________________
PROJECT SPONSOR: NAME________________________ CC:________
ORG.________________________ SITE:_________
PROJECT LEADER: NAME________________________CC:_________
ORG.________________________SITE:__________
EMAIL:______________________DTN:___________
PROCESS CATEGORY:
PROJECT TYPE:
PROJECT DESCRIPTION:
PROJECT CATEGORY: (Please check one)
a) Benchmarking
b) Baseline Study
c) Competitive Analysis
d) Product Teardown
e) Consortium/Partnership
f) Measurement & Metrics Study
STATUS OF PROJECT: (as of_______________)
(date)
STATUS START DATE SCH.COMPLETION DATE COMPLETION DATE
------- ---------- ------------------- ---------------
PLEASE COMPLETE FORM AND RETURN
===============================
BUSNESS REQUIREMENTS
FORM
----------------------------------------------------------------------------
BUSINESS REQUIREMENTS:
. PROBLEM STATEMENT:
. GOAL STATEMENT:
. OBJECTIVE:
ANTICIPATED BENEFITS:
. BENEFITS:
. OPPORTUNITIES:
. RISKS (of not doing this project):
. RETURN ON INVESTMENT:
BUSINESS REQUIREMENTS
FORM
. INVESTMENT REQUIRED (Internal):
FY'93 FY'94
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
. CONSULTING SERVICES (External)
Name of Firm:
Brief Description of the Work:
Investment Required:
FY'93 FY'94
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
RESOURCES REQUIRED:
Team Structure:
Number of Resources and % of Time Required
RESOURCE % OF TIME
--------- -----------
PLEASE COMPLETE FORM AND RETURN
===============================
PROGRAM/PROJECT DELIVERABLES
FORM
PROJECT DELIVERABLES:
DEPENDENCIES:
ISSUES/CONCERNS:
CONSORTIUM OR PARTNERSHIPS:
COMPANIES BENCHMARKED OR PLANNED TO BE BENCHMARKED:
|
| 2083.44 | A new, catchy phrase: INTEGRATED ROADMAP MATRIX | CSOADM::ROTH | Kick out the jams! | Mon Nov 09 1992 15:35 | 0 |
| 2083.45 | | RDVAX::KALIKOW | Le not juste | Tue Nov 10 1992 22:52 | 43 |
| ... when I see a banner like:
Note 2083.43 The Supply Chain 43 of 44
872 lines 9-NOV-1992 09:13
... my normal reaction is to press ...
<NEXT UNSEEN>
This isn't the first reply in this string to make this same point -- that
many of us feel that the writer(s) should PLEASE:
Try to get it down to at most a couple of screens of SALIENT TEXT plus some
pointers to offline files for the truly interested.
IMHO, the inflation of line-counts, and of the bureaucratese in these
messages, is an unfortunate META-message that should perhaps be fine-tuned.
Here's the "value" that this reply tries to add -- quantifying the
meta-message...
.1 230 lines
.6 100
.9 117
.25 129
.28 148
.29 176
.33 184 (new thread, benchmarking)
.39 236
.43 872 (benchmarking thread again)
Now I *know* we're not dealing with simple matters here, but -- imagine
you're writing for a busy VP who's KNOWN for "giving you two screens"
before dismissing you -- or perhaps THREE, with a good tailwind and the
light behind you...
You're writing to build a CONSTITUENCY here -- don't bore, or fluff, or
BEAT us to death with prose...
Thanx
Dan
|
| 2083.46 | Does anyone remember Creative Computing magazine? | AUSTIN::UNLAND | Sic Biscuitus Disintegratum | Tue Nov 10 1992 23:34 | 11 |
| re: .44 and catchy phrases ..
This reminds me of a program I got out of Creative Computing many
years ago which generated meaningless buzzwords. It picked three
words at random out of a data file and strung them together. I
was amazed at how many the program generated that parallelled lots
of DECmemo terms.
yours in Comprehensive Distributed Coordination,
Geoff Unland in Austin
|
| 2083.47 | | PLAYER::BROWNL | Really, who cares? | Thu Nov 12 1992 10:21 | 6 |
| RE: .45
Well said Dan. I do just the same. I don't have time to plough through
all that guff just to read a couple of salient points.
Laurie.
|
| 2083.48 | Issue #8 | RT128::BATES | NAS-ty Boy | Tue Dec 01 1992 21:32 | 89 |
| From: DEMSUP::SUPPLYCHAIN "01-Dec-1992 1246" 1-DEC-1992 16:52:55.32
To: @JW.DIS,@SC_COMM.DIS,@TBM.DIS
CC: SUPPLYCHAIN
Subj: Supply Chain Update, Issue #8 - Please Forward Widely
** Please forward widely **
*******************************************
** Supply Chain Update **
*******************************************
Issue 8
Continuing our communications, we include in this Issue:
"Supply Chain Update" Responses
Supply Chain Integrated Program Schedule
*******************************************
"Supply Chain Update" Responses
Since we first began electronic updates on the Supply
Chain work in August, we have received an overwhelming
amount of responses.
Each mailing has drawn hundreds of requests to be added to our
distribution list. In addition, we have received over 500
letters of questions, comments, or feedback.
There have been some common themes to your questions and
feedback, which we will address in a wider communication. In
two weeks we are holding a panel discussion of our Process
Change Leaders, towards which we have directed your comments.
This December 17th panel discussion will be broadcasted over
the Digital Video Network (DVN) in January. Details will
follow in a subsequent communication.
We are pleased to think we are able to offer an opportunity
for two-way communication, and have been making every effort
to respond to each memo that comes in. Quite frankly, though,
we have been swamped by the volume of questions. We ask
that you please bear with us in our attempts to respond
in a quality manner.
Supply Chain Program Schedules
We have been very busy this past month integrating our Supply
Chain Implementation Schedules across the six change programs.
Each of these efforts is enormous in complexity and impact.
We have published a summary document that describes the
work of some of our key programs. This publication provides
an indication of the breadth and depth of the work, although
it was not possible to include all of the detail.
If you would like to obtain a copy of the SC Integrated Program
Schedule, you may copy the document to your account with the
following command:
$ FTSV COPY DEMSUP::SIS_USER2:[SUPPLYCHAIN.DOCS]SCHEDULE.PS *.*
OR
$ COPY DEMSUP::SIS_USER2:[SUPPLYCHAIN.DOCS]SCHEDULE.PS *.*
Please note that this is a very large postscript file, and
will take 30-40 minutes to print.
****************************************************************************
We will be happy to take your feedback and questions. Send
your questions or comments to:
DEMSUP::SUPPLYCHAIN
We ask that you forward this memo, and those coming, widely.
|
| 2083.49 | Issue #9 | RT128::BATES | NAS-ty Boy | Sun Dec 06 1992 12:36 | 181 |
| From: DEMSUP::SUPPLYCHAIN "04-Dec-1992 0954" 4-DEC-1992 12:03:16.10
To: @SC_COMM.DIS,@TBM.DIS,@JW.DIS
CC: SUPPLYCHAIN
Subj: SUPPLY CHAIN UPDATE - ISSUE #9
** Please forward widely **
*******************************************
** Supply Chain Update **
*******************************************
Issue 9
Continuing our communications, we include in this Issue
an update of a Supply Execution WW Mobilization Meeting:
Key Messages
Commitments
Next Steps
Supply Execution Vision & Goals
*******************************************
Supply Execution
WW Plant Manager Mobilization Meetings
On October 26-29th, Tom Tracey of the Supply Chain Program
Office hosted a mobilization meeting for the world-wide plant
managers.
The intention of the meeting was to explain and engage in
discussion on the full nature of the change which needs to
occur throughout the Supply Chain, with particular focus on
the changes required within the Supply Execution process.
The necessary outcome of the meeting is a deeper understanding
of our competitive problem and the nature of the change required,
as well as specific commitment from the participants to drive the
change activity within their organizations so that we deliver
specific results to an agreed schedule.
Key Message - Our Priority
Predictability is clearly the first priority for Q2/Q3 FY93. Improved
predictability will prepare the ground for expanding existing JIT pull
activity through Q3/Q4 with full implementation of a customer driven pull
process in FY94. This will allow us to achieve our competitive Customer
Satisfaction, Cost and Asset goals.
Clearly this cannot be achieved without significant change in the way the
Company does business, from Product Design to Order Placement. This is the
size of the change we are undertaking: In essence, this is Supply Chain
Reengineering.
Commitments
During this meeting, several commitments were made on the behalf of the
Supply Chain Program Office:
. The standard template for Service Level Agreements (SLA's)
between sites would be issued to the sites within one week.
SLA's document the business practices in terms of responsiveness
and quality that two sites in a supplier-customer relationship
have agreed to adhere to.
The base Service Level Agreement;(SLA) has been issued by Tom
MacDowell and Jim Wish on the 4th as committed.
. Communication packages would be mailed within one week to each
of the plant managers for use in plant-wide communications.
Video`s of the Dan Jennings and Jim McCluney presentations at
the October meeting have been sent to all plants as well as
complete presentation sets to the plants which did not attend.
. A working draft of the total Supply Chain Implementation Plan
would be sent out within two weeks of the meeting.
The Supply Chain Implementation Schedule went out as committed
on the 16th of November. This is a summary document of a very
large implementation schedule. Instructions on how to obtain a
copy of this document was included in the last issue of the SC
Update.
SUPPLY EXECUTION
Next Steps:
To follow-up on this meeting, a second meeting was scheduled for
December 7-9 for sites on the Phase 1 schedule:
(PC and Networks Pipelines- ABO, KAO, SPO, TAO, ASO,
FXO, HLO, WMO, AYO, GAO, KBO, CXO)
At this time the plant managers of these sites will be expected to present
their plans for achieving the desired performance results and business
practices.
Vision:
Self-regulating supply capability based on customer orders
and service level agreements
It will have the following attributes:
- Pipeline Set-up based on competitive lead time menu
- Execution will be Menu, Leadtimes and 'pull' driven
- Supply Chains will be optimized rather than Supply points
The Supply Execution program plan has at its foundation several key
milestones and goals to which change activity is being aligned. The
following is a list of these key goals and milestones and the dates
upon which they will be met.
SUPPLY EXECUTION
Goals:
FY92 Q1FY93 Goal
To Commit/leadtime
(Performance to the day) 30% 30% 95%
-------------------
Enabler:
- On-time ship/delivery NOW
- Change plans to meet SLA's in each site 30 Nov 92
- Basics - BOM & Inventory Accuracy 30 Dec 92
- Standard Service Level Agreement
in place in all sites 12 Jan 93
- All sites will measure themselves
to daily +/- intersite ship performance 12 Jan 93
Pull Replenishment
------------------
- 100% elimination of DEC to DEC incoming
inspection by 31 Mar 93
- 100% DEC Parts Pulled to PoU by 30 Jun 93
- 40% all part numbers pulled to POU by 30 Jun 93
- 95% of all part numbers pulled to PoU by 30 Jun 94
Cumulative Cycle Time
---------------------
(by business)
- 30% Reduction in CCT FY93
- 30% Reduction in CCT FY94
Inventory
---------
FY92 FY93 FY94
- Specific by business
- Turns 3.4 4.0 8.0
- Active 73% 85% 85%
****************************************************************************
We will be happy to take your feedback and questions. Send
your questions or comments to:
DEMSUP::SUPPLYCHAIN
We ask that you forward this memo, and those coming, widely.
|
| 2083.50 | Issue #10 | RT128::BATES | NAS-ty Boy | Tue Jan 05 1993 20:42 | 123 |
| From: DEMSUP::SUPPLYCHAIN "30-Dec-1992 1600" 30-DEC-1992 18:12:34.40
To: @JW.DIS,@SC_COMM.DIS,@TBM.DIS
CC: SUPPLYCHAIN
Subj: Supply Chain Update - Issue 10
** Please forward widely **
*******************************************
** Supply Chain Update **
*******************************************
Issue 10
In our last Issue, we addressed spoke of the Mobilization
meetings within the Supply Execution arena.
Continuing our communications, we include in this Issue:
A summary of your questions and feedback to our
Supply Chain Updates.
*******************************************
RESPONSES TO SUPPLY CHAIN UPDATES
SUMMARY OF # 1 - 7
In response to our request for questions and comments regarding the
Supply Chain updates, a number of you have highlighted key issues. What
follows is a summary of what you've said, plus some responses to the issues
you raised.
Many people commented on the SCOPE OF THE SUPPLY CHAIN CHANGE EFFORTS.
Some suggested we shouldn't limit the work to Manufacturing and Logistics;
that we should include Engineering, Services and Sales. Others said it has to
be all of Digital. There were a number of comments regarding software
involvement (that the supply chain planning is hardware focused.)
In response to the scope question: the impetus for transforming existing
operations into a fast, flawless flow of events (a supply chain that extends
from customer requirements to customer satisfaction) came from Manufacturing
and Logistics. Then our understanding of the changes required increased. We saw
the need to redesign the way product and service life cycles are managed.
Therefore programs such as the Total Life Cycle have been working closely with
engineering groups on issues like integrated product business plans, cross
functional product/service life cycle teams, readiness reviews, and redesign of
the phase review process.
As with much of the redesign work, change teams are learning about what
needs to be done as they progress. The projects reach out to different parts of
the company during the process. One example is that the Total Life Cycle team
has designed a total business planning process that includes the whole range
from the corporate strategic plan right through to individual product plans.
This proposal is scheduled to go to senior management and is currently being
discussed with Manufacturing and Logistics partners in Engineering; Sales, and
Service; and with the new customer business units as the latter are
established.
The best response to many of your comments is "we're working on it."
This is true for one of the recurring questions: THE APPLICABILITY OF SUPPLY
CHAIN PLAN TO DELIVERY OF SOFTWARE. Bob Steele, Supply Chain Software
Manager, and his team are working with the software community across Digital
to develop an integrated software delivery plan. They will go into detail on
their work in the next issue of the Supply Chain Update.
Similarly, many of your questions involved PLANS FOR TOOLS AND TRAINING
to support the implementation of the supply chain. These are in the early
stages. Your suggestions and comments are important to our ability to
implement, so please keep them coming. We are looking at a broad range of
needs: IM&T support, tools for modeling and implementing all aspects of
supply chain operations, and changing management and leadership skill
requirements are just a few examples. Jon Braley's Design team has developed
a supply chain model using the DEC MODEL tool. This design permits people to
see what a working supply chain looks like, includes all areas of work in
the flow from customer requirement to customer satisfaction.
The DEC MODELING supply chain tool helps people see the big picture.
Many of you also ASKED FOR SPECIFICS. Your comments indicate that it is
difficult to see what's going to change in our daily work lives and/or what if
anything we are being asked to do differently. Much of the work the Supply
Chain Program office has accomplished so far has been focused in two areas:
creating a common awareness of specific metrics (such as predictability/
responsiveness) that show Digital as uncompetitive. Detail on these metrics
has also been developed. One example is the reduction of days sales
outstanding in specific increments over stated timeframes. However the
plan is to work to progressively greater levels of detail. Another area
of program office work has focused on redesigning Digital's major
delivery processes, such as how integrated demand signals are sent and
received. Again this effort is proceeding to increasing levels of detail.
Finally there were a host of comments regarding INVOLVEMENT OF THE "FRONT
LINES." You indicated the frustration of not being able to do work in
the way you believe is best for Digital; and the frustration of seeing
programs and "answers" handed down that don't appear to respond to problems as
you experience them. These comments are extremely well taken! The program
office's intent is to work with progressively broader segments of operations
in all areas to test out and implement the supply chain design. We are
looking for ways to create a set of communication loops throughout
Digital so we can adapt the changes to work, processes, and organizations
based on your input; and so you can implement changes that translate to
effective answers to problems you face. Once again, your suggestions
to accomplish this are welcome.
****************************************************************************
We will be happy to take your feedback and questions. Send
your questions or comments to:
DEMSUP::SUPPLYCHAIN
If you would like to be added to our distribution list,
please respond to this same address.
We ask that you forward this memo, and those coming, widely.
|
| 2083.51 | Issue #11 | RT128::BATES | NAS-ty Boy | Sat Jan 16 1993 12:57 | 174 |
| From: DEMSUP::SUPPLYCHAIN "15-Jan-1993 1728" 15-JAN-1993 17:58:38.81
To: @TBM.DIS,@JW.DIS,@MCSTAFF.DIS,@PGMOFF.DIS,@BLT.DIS,@MLM.DIS,@SC_COMM.DIS
CC: SUPPLYCHAIN
Subj: SUPPLY CHAIN UPDATE #11
On Tuesday, January 6, 1993, the Supply Chain Program Office spent four
hours at a Bob Palmer Woods Meeting. The purpose of this session was
threefold: To bring Bob and his new leadership team up to date on the
Supply Chain committments made to the Board of Directors last August;
to engage the Leadership Team on the Supply Chain as the emerging identity
of the company; and, to gain the committment and leadership of the Leadership
Team to expand and lead the Supply Chain throughout the company.
The meeting was attended by the entire Supply Chain Program Office.
Adriana Stadecker opened the meeting with a history of the Supply Chain
change effort, Jim McCluney presented the Supply Chain committments,
characterized our current and future company state and brought the Woods
Meeting attendees through the Vision, Purpose, Actions and Status of the
Work. Pete Rego, Linda Trafton and Rich Powers, through a brief role
playing exercise, demonstrated the impact of the change efforts on our
customers. Interaction between the Program Office and Bob's Leadership
Team was lively throughout the afternoon.
The Supply Chain was unanimously endorsed by Bob, the Business Units and
Functional Leaders as the mechanism and integrative process by which we
will move the company to excellence. Bob and the team agreed to lead this
effort through their actions.
Some significant programs required to move the Supply Chain forward were
presented.
Explicit committment from the Executive Team was given on the following:
o Recognizing that the Supply Chain is the emerging
identity of the company
o Supporting the implementation of competitive Worldwide Product
and Service Menu's
o Product simplification implementation in Q3 and Q4
o Continuing to review a change in Digital's Revenue
Recognition policy from Off-the-Dock to Customer
Acceptance
o Driving Strategic Product and Business Planning Processes
beginning immediately
The criticality of immediately implementing Supply Chain Product Readiness
Reviews was also discussed and agreed.
Program Office members will be meeting individually with Leadership Team
members over the coming weeks to continue the engagement process on the
Supply Chain.
Adriana Stadecker requested and received support from the Executive Team
to pull together a Digital wide Design and Implementation Team to begin
re-engineering the Core Processes of the Company. These were identified
as Product and Service Creation, Customer Engagement and Customer Supply
and Delivery. This team will ensure integration and synchronization as
the Supply Chain change effort moves forward.
As stated earlier, there was a great deal of interaction during the four
hours that the Program Office and Executive Team spent together. Listed
below are some of the key messages which came out of this exciting
afternoon.
Key Messages - Supply Chain Work
------------
o The primary focus is on the Customer
o The Supply Chain is simultaneously:
- diagnosing current operations
- taking immediate actions
- designing the future processes
- prototyping and prioritizing the design
o The change has started to happen
o The change implementation methodology is:
- defining tasks to be done
- creating management structures and work cells dedicated
to accomplishing these tasks
- obtaining necessary committment from key players
- assigning dedicated resources and experts to assist in
managing the change
- communicating the nature of the change
o The major interventions of the change work are:
- A Corporate Strategic Planning Process which drives all
business decisions and market focused offerings
- Simplified Offerings to customers through cost efficient
selling and delivery focused on ease of doing business with DEC
- Total Business Readiness resulting in predictability to our
customers and the enf of rework and expiditing
- Standardized Logistics Fulfillment Processes represented by
three standardized processes (On-Demand, Custom/Traditional,
S.I.) customized only where it yields competitive advantage
- Customer Focused Product and Service Supply Pipelines driving
competitive lead times and one voice to DEC's Supply Base
Key Messages - Simplicity and Customer Focus
------------
o A good example of an opportunity for simplification with our customers
(and internally) was the European Product Simplification example
- We have 140,000 active part numbers in Europe
- During Q2, we received 30,000 orders
- 10,000 part numbers were sold once
- 10,000 more part numbers sold less than 10 times
- 10,000 more part numbers sold more than 10 times
- 3,000 part numbers generated 85% of Product Revenue
- As a result, Marketing, Sales and the Supply Chain agreed
to a simple menu of systems offerings in last Q1
- By the end of Q2, 40% of Systems Revenue was captured by
just 46 Saleable Packages and delivery performance had
increased from 45% on time to customer request date to 90%
- As a result, Bob and Staff committed to strongly support
the Product Simplification Work
o Bob and Staff agreed to continue to pursue changing our company's
Revenue Recognition policy from recognizing revenue when offerings
are shipped "Off-the-Dock" to recognizing revenue at Customer
acceptance. This will be a topic at a February Leadership Team
Meeting.
Key Messages - Organizational Behavioral
------------
o Our focus is our Customer
o Our thinking is systemic and global
o Our structures are straight, open and fluid architectures
o Our disciplines are integrative and intelligent with open access
to information
o Clear leadership and the ability and willingness to follow are
critical to success
o We have an environment where decisions are made according to competence
guided by self control, excellence, trust and share universal values
Key Messages - Summary - Supply Chain Messages
------------
o Strategic Intent:
We will serve our customers profitably through the fast, flawless &
simple delivery of value
o Principles:
The Supply Chain is an integrative process that delivers business
results....
- BY putting customers first
- THROUGH a balance of standardized & customized services
- WITH simplicity, flawless execution, common goals & integrated
metrics
o What this will mean to our people:
- Our customers will be uniquely served
- Our shareholders will be confidend in our viability
- Our employees will be proud of their work
o What we are all expected to do:
- Put the customer first
- Pay attention to details
- Think and act systemically
- Deliver all things, on time, all the time
o Operating Philosophy:
We will search relentlessly for excellence with uncompromising
integrity
|
| 2083.52 | Supply Chain Connection? | NIOMAX::LAING | Soft-Core Cuddler*Jim Laing*223-4793*PKO3 | Wed Aug 11 1993 10:11 | 8 |
| Has anyone seen the latest "Supply Chain Connection"? I'm trying to
make sense of the content within (this is a ~20-page-or-so
publication). There are names I've never heard of before, supposedly
doing work that relates directly to what my group (Logistics IM&T)
does,but I don't see the connection.
More fluff?
Jim
|
| 2083.53 | | AXEL::FOLEY | Rebel without a Clue | Wed Aug 11 1993 10:38 | 9 |
|
I tossed my copy.. It was content free and had too many unknown
names..
Personally, for the money, I got more out of a 4 page Digital
This Week than this piece of "happy fluff".
mike
|
| 2083.54 | SO WHAT? | VMSMKT::KENAH | I���-) (���) {��^} {^�^} {���} /��\ | Wed Aug 11 1993 10:50 | 1 |
| Their headline said it all...
|
| 2083.55 | Do your part | GENRAL::KILGORE | Cherokee and Proud of It! | Wed Aug 11 1993 11:08 | 13 |
| Instead of complaining in here, why doesn't everyone take the same amount
of time and fill out the ~Sensing Questionnaire~ on the last page of this
publication and mail it to Joan D. Costello? Maybe the least it will do
is get your name removed from the mailing list so you won't have to look
at another one. :-)
The #2 question is:
What value is this publication to you in the job you perform today?
Absolutely NONE is what I'm filling out.
Judy
|
| 2083.56 | Not to be confused with .55 | WLDBIL::KILGORE | Adiposilly challenged | Wed Aug 11 1993 13:50 | 117 |
|
The following is an unauthorized synopsis of the Supply
Chain Connection, Volume 1, Issue 3, Fy'94. Break-even
point will be reached when two people read this instead
of the actual publication.
---------------
Page 1 seems to be telling me not to look in this newsletter for
answers, which must be found within myself. Undaunted, I forge ahead.
(Nit: the old digital logo appears at the bottom of the page.)
Page 2: intro, editorial, contents
Pages 3 and 4 attempt to update us on where the Supply Chain
initiative is today and where work is in progress. The "11 Critical
Path major Change Programs" boil down to this -- Digital will:
o Devise plans to forecast product demand on a periodic (monthly?)
basis.
o Create menus of sellable products and services, including
predictable lead times, to present to customers.
o Define a product delivery pipeline from soup to nuts; tie in with
forecasts and menus to meet volume and lead time requirements.
o Develop a process to rationally engage our customers from the time
they sign an order [and hopefully well before that?] to the time
we get the money.
o Train the people who need to use all the above to be successful,
then measure and reward their success.
Page 5 is a high level design for a manufacturing pipeline
implementation.
Page 6 is old news if you read Digital Today. Our PC business
measured itself against successful companies in that field, found it
didn't even come close to being competitive (gasp!), and applied some
common sense (see list above) to make things better.
Page 7 and half of page 8 can be summarized as follows: MCS is a
large CBU, whose "focus is the customer". MCS is committed to
integrating its supply chain with the product supply chain (see above)
to provide best in class service and improve profits.
Pages 8.5 through 10.5 basically state the same intention for the
Professional Services organization, and defines a three step
implementation process: define a strategic direction for the
organization, understand the business processes as they exist today,
and design future business processes that will meet organizational
goals. (The fourth critical step, implementation, must be inferred.)
Page 10.5 and 11, paraphrased: "In all this upheaval, effective
communication is important -- so is acquiring new skills."
Pages 12 and 13, paraphrased: "The Supply Chain will be optimized by
assessing business practices, choosing the best practices (that is,
those that provide best performance against stated goals), documenting
them, and training the people that need to use them."
Page 14 is actually worth reading yourself, if only because it defines
a solid Supply Chain improvement goal -- $700 million in cash flow
improvement and spending reduction, impacting Cost of Goods Sold
(COGS) and Selling General and Administration (SG&A), while increasing
customer satisfaction. Congratulation to Vitoria Zammit for taking
the risk.
Page 15 seems to be the minutes of a meeting to discuss Customer
Engagement concerns across the entire Supply Chain initiative.
Pages 16 through 18 provide some insight into the measurements that
will gauge the success of the Supply Chain rework. The table on page
17, which may or may not represent Q3 performance, is somewhat
confusing (examples:the legend does not define the circles that appear
on the chart, but defines triangles, which do not appear; no
supporting definition is given for the "Logistics Spend" column; is it
possible that "Value Created Productivity [roughly profit per person]
was at a level of "comparative parity" in Q3?).
Page 19 talks at a high level about "Achieving Excellence in
Engineering". It was also worth reading because: it relates directly
to improving software engineering; it makes effective use if the net
to supply additional information; it only mentions "Supply Chain" once
in passing.
Pages 20 and 21, in summary: "Process analysis is an important part
of the Supply Chain initiative. Operations Engineering and Analysis
(OEA) is a group that specializes in such analysis. The Fourth Annual
Process Analysis Symposium (PASM) was devoted to process analysis vis
a vis Supply Chain."
Page 22 details an estimated 22 hours of videotapes on the Supply
Chain.
Page 23 provide a handy questionnalre on which you can record your
views of the Supply Chain Connection newsletter.
---------------
I guess the front page headline says it all for me:
Supply Chain... "So What?"
---------------
(Please remember to recycle.)
|
| 2083.57 | OK, since we started a new thread... | STAR::DIPIRRO | | Wed Aug 11 1993 14:18 | 10 |
| Well, I was making fun of this in another note string before this
one got started. I decided to look closely and analyze some of the
diagrams with another engineer here...just for jollies. And I have to
admit, we were laughing pretty hard. The other engineer did comment
that you have to respect people who can pull down 6-figure salaries,
create diagrams stating the obvious in new and confusing ways, and keep
a straight face throughout. I can only hope that publications like this
filter out to our competitors to throw them off the trail. I'd like to
present some of the ideas to the board of Hitachi and see what they
think.
|
| 2083.58 | Clarity amidst chaos... | MARX::BAIRD | NOW I get Aunt Zoe's kids! | Wed Aug 11 1993 14:25 | 26 |
|
re: .56 WLDBIL::KILGORE
General: Nice review.
Specific:
>Page 14 is actually worth reading yourself, if only because it defines
>a solid Supply Chain improvement goal -- $700 million in cash flow
>improvement and spending reduction, impacting Cost of Goods Sold
>(COGS) and Selling General and Administration (SG&A), while
>increasing customer satisfaction. Congratulation to Vitoria Zammit for
>taking the risk.
Well, we are in agreement here except I would go farther in describing
the value of the article. The other authors should pay close attention
to the style and substance of Vitoria's submission. It is clear and
consise, readable and understandable - disclaimer here - I don't
work in purchasing, nor have I ever been mistaken as a member of their
fan club in the past.
If the rest of the issue lived up to the high standards within
Vitoria's article, I wouldn't be as ignorant of the issues around the
"supply chain" and it's application.
J. B.
|
| 2083.59 | | DDIF::PARODI | John H. Parodi DTN 381-1640 | Thu Aug 12 1993 11:07 | 31 |
|
I wrote the article on p. 19. I just stopped by Bill Kilgore's office to
thank him for the feedback and to inflict upon him a permanent spot on
the AEE (Achieving Excellence in Engineering) distribution list. But
the main reason for making that visit was to thank him for reading
before flaming.
This supply chain stuff, now called the Customer Value Chain, originated
in the manufacturing world (that is, Bob Palmer's world before last
October). The generic name for it is "business process re-engineering"
and it is a pretty hot topic in our industry these days. The basic idea
is that the computer industry spent decades automating people's business
processes, without really questioning whether those processes made
sense, given the entirely new capabilities made possible by computers.
As Bob Palmer has pointed out, a silicon manufacturing operation either
experiences about a 15%-20%/year productivity improvement or ceases to
exist. Bob wants to apply these methodologies to other parts of the
company and I see that as a good thing -- certainly business as usual is
a recipe for disaster.
AEE is Engineering's piece of the Customer Value Chain. Peter Conklin
manages the AEE Program office and sits on Adriana Stadecker's task
force for the transformation of Digital (Peter is a corporate consulting
engineer and a member of Bill Strecker's Staff as well).
If you'd like to be on the AEE distribition list, contact me at
DDIF::PARODI, DTN 381-1640, or send mail to HUMAN::EXCELLENCE.
JP
|
| 2083.60 | | WLDBIL::KILGORE | Adiposilly challenged | Thu Aug 12 1993 11:21 | 7 |
|
.59> I wrote the article on p. 19. I just stopped by Bill Kilgore's office...
.59> to inflict upon him a permanent spot on the AEE (Achieving Excellence
.59> in Engineering) distribution list.
...and now we see the real down-side of noting :-)
|
| 2083.61 | Inquiring minds..... | SPARKL::WILLIAMSON | | Wed Aug 18 1993 12:51 | 7 |
| The page seven MCS Services offering chart is interesting:
Bullet 2: 24 hour, 356 day telephone service.
Question - which nine days aren't covered? Is it optional?
Just wondering...
|