Six-Sigma Supply Chain Strategy Development TemplateFiscal Years: ________ to ________

CompanyCulture

FunctionalRelationships

CompetitivePressures

RewardSystems

View ofSupply Chain

CustomerExpectations Economics Government Environment Legal Competition

TechnologyTrends

Internal Influencers External Influencers

Criteria forPerformance

Excellence

© 2003 Integrated Strategies. All rights reserved.

Organizational Strategy

Company Vision and Mission:

Company Goals and Objectives:

Business Unit Vision and Mission:

Business Unit Goals and Objectives:

Supply Chain Initiatives with DetailedPlans and Performance Measures

Supply Chain Vision and Mission:

Supply Chain Goals and Objectives:

Supply Chain Expectations:

Supply Chain Strategy Supply Chain Initiatives

StrategicPlanning

Customer andMarket Focus

Measurement,Analysis, and

Knowledge Mgt.

HumanResource Focus

ProcessManagement

HumanResource

OrganizationalEffectiveness

BusinessResults

Financial& Market

CustomerFocused

SixSigma

SixSigma

www.sourcing.com

Leadership

CAR-030428-Six Sigma SC Strategy Template-b2.ppt

Criteria forPerformance

ExcellenceStrategicPlanning

Customer andMarket Focus

Measurement,Analysis, and

Knowledge Mgt.

HumanResource Focus

ProcessManagement

Leadership

Six-Sigma Supply Chain Strategy Development TemplateFiscal Years: ________ to ________

CompanyCulture

FunctionalRelationships

CompetitivePressures

RewardSystems

View ofSupply Chain

CustomerExpectations Economics Government Environment Legal Competition

TechnologyTrends

Internal Influencers External Influencers

Organizational Strategy

Company Vision and Mission:

Company Goals and Objectives:

Business Unit Vision and Mission:

Business Unit Goals and Objectives:

Supply Chain Initiatives with DetailedPlans and Performance Measures

Supply Chain Vision and Mission:

Supply Chain Goals and Objectives:

Supply Chain Expectations:

Supply Chain Strategy Supply Chain Initiatives

HumanResource

OrganizationalEffectiveness

BusinessResults

Financial& Market

CustomerFocused

SixSigma

SixSigma

Vision: Describes the future state of the organization. The vision is based on the collective executives, management, personnel and underlying principals of the organization. Visions are typically shared across the organization.

Mission: Predicated on the vision, the mission identifies what the firm plans to do and for whom. It also provides a major cultural premises with which the company operates.

Goals and Objectives: Goals and objectives define the results to be achieved. They are measurable, have specific time frames attached and recognize cost and resource constraints.

Vision: Describes the future state of the business unit. The vision is based on the collective executives, management, personnel and underlying principals of the organization. Visions are typically shared across the organization.

Mission: Predicated on the vision, the mission identifies what the business unit plans to do and for whom. It is linked to the company mission and vision.

Goals and Objectives: Goals and objectives define the results to be achieved. They are measurable, have specific time frames attached and recognize cost and resource constraints.

Vision: Describes the future state of the supply chain organization. The vision is based on the collective executives, management, personnel and underlying principals of the organization. Visions are typically shared across the organization.

Mission: Identifies the mission of the supply chain process within the firm. It identifies what supply chain does and for whom. It is linked to the company mission and vision.

Goals and Objectives: The supply chain goals and objectives define the results expected to be achieved. They are measurable, have specific time frames attached, and recognize cost and resource requirements.

Expectations: Declarative statements of operating expectation segmented by supply chain categories. They describe the anticipated supply chain future state. Expectations are the building blocks for developing supply chain initiatives and programs. Expectations should be developed across multiple categories. Examples of the types of categories could include:

• Strategic Alignment

• Organizational Excellence

• Customer Service

• Total Cost Impact

• Supply Base Management

• Process/Systems

• Business Integration

• Other

Note: Several specific expectation statements would be developed in each category.

Tasks: Defined, specific activities representing the work performed during the course of the initiative. Tasks have specific durations, due dates and resource responsibilities

Deliverables: Tangible and verifiable tasks, actions, and items required to show progress towards the completion of the initiative objectives

Time Lines: Identifies the specific dates and/or durations for the various tasks, deliverables and overall initiative completion.

Resources: Commitments of people, assets or dollars which add value towards the completion of the initiative.

Accountabilities: Specific, written expectations, roles and responsibilities for the individuals assigned to the initiative. Used to ensure alignment and understanding among team members.

Performance Measures/Indicators: Standard expectations established to measure and manage progress of the initiative. Performance measures are clearly defined, measurable, communicated, and regularly reported to the appropriate stakeholders.

Initiatives and Programs: Specific projects undertaken to achieve overall supply chain goals, objectives and expectations. Example initiative plans include:• Business Process & Systems• Initiative Management & Communications• Supply Chain Competitive Initiatives• Other

Internal Influences: Factors within the company’s environment that must be considered when developing the overall supply chain strategy. These factors are often overlooked as part of an overall strategy.

External Influences: Factors outside the company’s environment that must be considered when developing the overall supply chain strategy.

Processes and tools for analytically identifying performance gaps, specific problem areas, root causes and lasting solutions to permanently improve and control organizational performance.

Processes and tools for analytically identifying performance gaps, specific problem areas, root causes and lasting solutions to permanently improve and control organizational performance.

Internal management group representing various operating areas and responsible for providing direction, support, and coordination of supply chain activities. Teams is accountable for achieving the supply chain mission, goals and objective.

The development and deployment of strategic supply chain objectives and action plans that are linked to company objectives and action plans.

Obtaining, retaining and satisfying customers based on a deep understanding of customer and market expectations and requirements.

The necessary data and analytical processes to support supply chain decision making and performance measurement systems.

Staffing, skill sets and education and training programs designed to achieve supply chain goals and objectives which support organizational goals and objective.

The management and integration of all processes that interface with and comprise the supply chain.

Organization performance measured relative to past organizational performance, industry trends and competitors.

© 2003 Integrated Strategies. All rights reserved.

www.sourcing.com

CAR-030428-Six Sigma SC Strategy Template-b2.ppt

The Six-Sigma Supply Chain defines, measures, and integrates the customer/supplier relationship across the chain by: 1) Using analytical methods to develop supply chain strategies and policies, 2) Defining all customer/supplier relationships and requirements, internal and external, 3) Developing product and service characteristics based on customer requirements, 4) Managing, measuring, and controlling work processes based on customer requirements, and 5) Focusing on the elimination of defects through six-sigma analytical processes and tools.

Supply Chain Management: Encompasses all activities, including information flows, associated with the moving of goods from the raw materials stage through to the end user. It includes systems management, manufacturing and assembly, sourcing and procurement, production scheduling, order processing, inventory management, warehousing, customer service, and delivery. The process also includes counter flows of materials (reverse logistics activities) as well as linkages with customer service, sales, promotion, and marketing activities. The Extended Supply Chain refers to the integrated set of activities completed by the full supply chain participants (suppliers, manufacturers, distributors, retailers/customers, and consumers/end users).

Key Six-Sigma Supply Chain Principles:1. Quality: “Zero tolerance for defects” environment (3.4 defects

per million opportunities as a goal)2. Cost: Lowest total life cycle cost3. Delivery: Customer centered timeliness and methods4. Safety: Products and methods that protect5. Organizational Responsibility: Ethics and governance to

ensure excellence in organizational citizenship