Value Chain Road Map-General Approach

8/6/2019 Value Chain Road Map-General Approach

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Value Chain and Strategy Formulation

Linking Strategy to Action

General Approach and Road Map For Implementation

Know your Business, Build your Strategy

BAIRP FrameWork


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Know Your Business, Build your Strategy

[email protected] Mohamad Nazmi2011

Contents

Objectives of The Presentation

Schematic Diagram of the Approach

Detailed Diagram of the Approach Five Areas-Five Concepts-Success Criteria

Steps Detailed (Build)

Steps Detailed (Assess)

Steps Detailed ( Improve) Example on Prioritizing

Steps Detailed ( Review)

Steps Detailed ( Plan)


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Objectives of this Presentation

This presentation aims to present the full road map for the approach

suggested to build the Main activities value chain and link it to the

Strategy Map of any organization.

The Presentation is directed to strategy representatives, whom can

implement the approach to validate their strategy linkage to the

overall strategic directions of Organization.


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Schematic Diagram of the Approach

Build Assess Improve Review Plan


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Detailed Diagram of the Approach

Understand the OrgStructure

Prepare Datacollection Sheets

Conduct AwarenessSessions to Units

Heads

Distribute the forms

Gather the formsand validate

Create the ValueChain Diagrams

Identify Products andServices

Select the Criteria

of DefectsCreate Headaches

Sheets

DistributeHeadaches Sheets

Gather and Analyzeheadaches

Identify Defects

Set initiatives tomitigate theheadaches

Create Action Plans

for initiativesDistribute tasks on

employees and linkto PA

Follow Up on ActionPlans tillCompletion

Set & ImplementInitiatives

Measure theCustomersSatisfaction

Identify No-ImprovementDefects and re-assess initiativesand inputs status

Assess Defects Status

From Lines ofBusiness andproducts set themission

From the Missionbuild theperspectives

From theperspectives buildthe strategy story

From Strategy Storybuild Objectives

Create The Strategy



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Five Areas-Five Concepts-Success Criteria

EFQM

Excellence Model will govern all of thestages

RADAR will be used alwaysKPIs will be set to all project stages and

action plans shall be metWe will benchmark when applicable

and possibleWe will keep all of the evidences in a

file

Project Team

We will deal with the information in aconfidential manner

We will transfer knowledge to all We will not be biasedWe know that People know more so we

will listen to themOur role is to change but not to force

the change, people shall buy in

IT

IT solutions will be used when necessaryOnly

IT solutions can not replace people We think business not machines Computers are faster but not smarterWe will use technology to facilitate the

project progress and to document

People

We are all involvedWe dont believe in the ugly baby

syndromeWe will implement improvement

We will not hide information and wewill be working as a transparent team

The project is a Priority on our daily list

Leadership

Leaders are Convinced to LaunchLeaders are Ready to Champion the

ChangeLeaders are willing to improve Leaders will delegate authorities

Leaders will spare some good time forthe project


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Steps Detailed Assess


Select the Criteria of

Defects

Identify Criteria forDefects, such as:

Time Delay

Missing Information

Missing point ofcontact

inconsistent quality

Prepare Inputs

headaches Sheets

Prepare Inputsheadaches sheet, for theunits to evaluatesuppliers and the sheetwill have:

Unit name

Product Name

Supplier

InputsImportance (Out of 5)

headache

Frequency%

Prepare outputs

headaches Sheets

Prepare outputsheadaches sheet, for theCustomers to evaluatethe units products and

the sheet will have:

Customer Name

Product Name

Importance (Out of 5)

headacheFrequency%

Overall Satisfaction

Meetings and Datacollection

Conduct awarenesspresentation or conductmeetings to explain tocustomers and units howto fill the form

Agree on time to collectforms and collect theforms

Categorize theheadaches per productfor customers and persupplier for the units


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Steps Detailed Improve


Analyze Headaches

Use the followingformula for the OutputsHeadaches sheet perproduct:

Weight=Avg.((Importance +(Frequency%*5))perproduct/Headache/customer)

List products weight inascending order

Highest weight will bethe first to start withthen lower and lower inweight*

Root-Cause Analysis

Follow the product valuechain diagram reaching tothe activity producing theproduct

link the Activity to a unitor an employee

check if there is an Inputheadache for the product

Ask the Activity owner if

he/she believes that theinput headache (If Any)will cause this headache

If not Analyze theprocess and come with aninitiative

Implementation

If the problem is caused byan Input headache thencreate an SLA with supplier

if the input is caused byan internal issue (root-caused) create an actionplan for the initiative thathas the following:

Detailed tasks

Time Plan Budget if needed

Risks expected

Action Plan shall beimplemented andmonitored by APPR.

Reporting APPR will be sent fromOwner to the projectteam

project team willprovide theManagement by an ESR

Monthly meeting Shallbe conducted to reviewthe APPRs and

recommendations shallbe prepared by teamand discussed withmanagement

* Example is Provided in the next slide


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Example on PrioritizingProduct Customer Importance Headache Frequency% Weight

A 1 3 AH1 30% =3+0.3*5=4.5

A 1 3 AH2 60% =3+0.6*5=6

Total Weight Avg.(5+6)=5.5

B 2 4 BH1 40% =3+0.4*5=5

B 3 2 BH3 30% =2+0.3*5=3.66

Total Weight Avg.(5+3.66)=4.33

Notes: You Can Add Weights (%) for your customers according to their importance

You Can Add Weights (%) for Importance and Frequency according to its importance

So We Will Start Working on Product A as it has more Weight (So budgets and Manpower

will be directed to it)


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Steps Detailed Review


Focused group Analysis

Re-send the headaches Sheet toyour customers whom hadheadaches in the past

Review and analyze theheadaches again (If Any)

Review the initiatives

Gather all progress reports of theinitiatives

According to the DGEP RADAR,analyze the effectiveness of theApproach

Meet the initiative owner andanalyze the root-cause again

Implement the new initiatives

When to do the same againIt is not advised to conduct the samepractice more than once per year (Valuechain analysis)

It is advised to measure the satisfactionof your customers on general termsevery 6 months

Initiatives for improvement from nowon shall be linked to the value chaindiagrams

A Week that is called KAIZEN week shallbe implemented every six months togather initiatives from the employees


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Steps Detailed Plan


Mission represents our lines of business which can be gathered from the products andactivities list

Example: We provide Services Directly to customers and we do not generate revenue,and at the same time we are doing so many technical processes that depends on ouremployees skills (Human Resources Based processes)

So the Mission Might be: Meeting Customers Satisfaction through Our Lines OfBusiness, Implementing the highest standards of requirements of services that we

provide, while ensuring Financial Budget terms is available to effectively improve

our Human Capital

Mission Statement

Your Strategy Map shall be consisted of themes, and objectives, your Themes are themain Functions on the Value Chain like shown in the next slide and the objectives arethe unresolved issues in each function or planned next issues

Strategy Map


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Steps Detailed Plan


OUTCOME

Theme ISSUE


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Maintain or After-sales

List all major activities

here

Accounting

IT

AuditQuality Assurance

Median

HR

PMO

SPPM

Tender and ContractThesequenceofvaluesaddedtothe

Organization

Follow up or

Supervise

List all major

activities here

Build or Sell

List all majoractivities here

Median

PR

Legal Affair

Knowledge Management

Support Services

2

3

4

Outcome of the organization

Median

Median








Design or Procure or

Buy

List all major activitieshere

1


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Documents

Value Chain Road Map-General Approach