Visualising Your Supply Chain - SAPICS 2018€¦ · Visualising Your Supply Chain Creating a visual point of balance between inventory and investment

Visualising Your Supply ChainCreating a visual point of balance between inventory and investment

The supply chain stuff is really tricky.” ~Elon Musk, CEO of Tesla and SpaceX

• “

What Are We Going to Chat About?

From Strategy to Execution

We live in an integrated World: The Supply Chain is Part of a Whole!

Objectives of Workshop

• Gain an understanding of the model – From Strategy to

Execution

– Strategic Model – Balanced Scorecard and Strategy Maps

– Supply Chain Model – SCOR

– Benchmarking Model – WERC

• How they all fit together

From Strategy to ExecutionO

PE

RA

TIO

NA

LS

TR

AT

EG

ICM

AN

AG

ER

IAL

STRATEGY

INITIATIVES

Processes

Activities

Clients

Outputs

Measures

IND

IVID

UA

L

ACTIONSRewards

Motivated Staff

Performance

DIVISIONS & TEAMS

DEPARTMENTS

Sup

ply

Ch

ain

Stra

tegi

c Th

em

e

Sup

ply

Ch

ain

Stra

tegi

c Th

em

e

• P1A1

• P1A2

SCOR PROCESS

1

• P2A1

• P2A2

SCOR PROCESS

2

• P3A1

• P3A2

SCOR PROCESS

3

STRATEGY

The Balanced Scorecard

Kaplan and Norton. The Balanced Scorecard – Translating Strategy into Action. HBR Press. 2000.

ENABLEMENTSO14: Recruit, develop and retain capable staff

SO15: Acquire and apply applicable tools & technology SO16: Ensure a healthy and productive work

environmentSO17: Relationships with key strategic partners

CLIENTSO08: Build a strong brand

SO09: A well-established and satisfied customer base

PROCESSSO10: Efficient & Effective Execution of all activitiesSO11: Effective Inventory Management & Control

SO12: Build and retain a strong customer baseSO13: Corporate Governance & Risk Management

FINANCESO01: Maximise Shareholder Value

SO02: Revenue GrowthSO03: Productivity

SO04: Cost ManagementSO05: Asset management

SO06: Account Share GrowthSO07: Market Share Growth

Balanced Scorecard (BSC)

Vision and Mission

Strategy Maps

“Don’t fool yourself: having a strategy map is not the same as having a strategy”

The Balanced Scorecard

Shows how value is created for stakeholders

Why a Strategy Map?

• It communicates strategic intent with clarity

• It focusses on the most important aspects

• It creates alignment

• It shows the logical connections between work and

performance

BSC – Strategy MapFINANCIALSHAREHOLDERSReward

CUSTOMERSDelivery

INTERNALBUSINESS PROCESSExecution

LEARNING ANDGROWTHEnable

RevenueGrowth

Account ShareMarket Share

Client CentricImage &

Reputation

Relationships

Cost & Process Efficiency

OrganisationCulture

Train & Develop

StaffTechnology

RiskManagement &

Corporate Governance

SafetyService

ExcellenceOn-Time Delivery

Innovative Products

Price

PerformanceManagement

AssetUtilisation

CostStructures

Recruit &RetainStaff

Acquire &Retain Clients

Partnerships

Flexibility

Leadership

Innovation

ShareholderValue

Productivity

Quality Products

SO08: Establish a Strong RTT Brand

Operations CSDSales

SO16: Acquire and Apply the Right Tools & Technology

SO15: Recruit, Develop and Retain Competent Staff

SO13: R&D - Innovation

SO04: Ensure Effective Cost Management

Practices

SO07: Ensure Consistent Market

Share Growth

SO05: Ensure Effective Asset Management

Practices

SO06: Ensure Consistent Account

Share Growth

Risk FinanceSupport Services

SO11: Ensure Effective Inventory Management & Control

SO08: Establish strong relationships with key

strategic partners

SO01: Maximise Shareholder Value

SO03: Ensure Continuous Productivity Improvement

SO02: Ensure Sustainable Revenue Growth

SO17: Ensure a Healthy and Productive Work Environment,

driven by the RTT Culture

SO14: Assure Well-managed Corporate Governance & Risk

Management Principles and Practices

SO09: Ensure a Well-established and Satisfied

Customer Base

On Tme In Full Not Damaged Optimal Cost Improve our clients'

experience

SO10: Ensure Efficient & Effective Execution of All

Activities

SO12: Build and Retain a Strong Customer Base

Stratmap Logic

Why?Why?

Why?

Why?

SCOR

SCOR Supply Chain Reference Model: Version 11. P i.2

WERC

WERC Watch, Spring 2017. P. 6

WERC


WERC TOP12


BSC – Strategy Map

SO08: Establish a Strong RTT Brand

Operations CSDSales

SO16: Acquire and Apply the Right Tools & Technology

SO15: Recruit, Develop and Retain Competent Staff

SO13: R&D - Innovation

SO04: Ensure Effective Cost Management

Practices

SO07: Ensure Consistent Market

Share Growth

SO05: Ensure Effective Asset Management

Practices

SO06: Ensure Consistent Account

Share Growth

Risk FinanceSupport Services

SO11: Ensure Effective Inventory Management & Control

SO08: Establish strong relationships with key

strategic partners

SO01: Maximise Shareholder Value

SO03: Ensure Continuous Productivity Improvement

SO02: Ensure Sustainable Revenue Growth

SO17: Ensure a Healthy and Productive Work Environment,

driven by the RTT Culture

SO14: Assure Well-managed Corporate Governance & Risk

Management Principles and Practices

SO09: Ensure a Well-established and Satisfied

Customer Base

On Tme In Full Not Damaged Optimal Cost Improve our clients'

experience

SO10: Ensure Efficient & Effective Execution of All

Activities

SO12: Build and Retain a Strong Customer BaseSCOR WERC

Measuring our performance

“Good is the enemy of great. That’s why so few things become great.” ~James C. Collins

Objectives of Workshop

• The Performance Management Model

• Types of Measures

• SMART Objectives

• Lead and Lag Indicators

• PM Models

• How they work in the Strategy Map

Performance Measures Step Process (BSI)1. Describe the intended result(s)

– Write in plain, sensory language that everyone can understand (see, feel, count)

2. Understand alternative measures

– Can the intended result be measured directly?

– Is there a clear way to capture the entire intended result in one or more measures

3. Select the right measures for each objective

– Choose metrics that have meaning and relevance

– You will have too many measures – cull them!

– Lead and lag indicators

4. Define composite indices as needed

– Construct an index when individual measures provide useful data on different dimensions

– Composite indices are best when a single measure isn’t meaningful by itself

5. Set targets and thresholds

– Targets - the desired level of performance for a specific reporting period

– Thresholds – upper and lower limits of desired performance around a target value

6. Define and document selected measures

– Performance Measure Data Definition Table – Data Dictionary

Source: The Institute Way

Types of Measures

Inputs

• FTE

• Budget

Process

• Efficiency

• Cycle Time

• Cost/Unit

Outputs

• # beneficiaries

• # presentations

Project

• Schedule

• Budget

• Resources

Intermediate Outcomes

• Widgets

• Entrepreneurs

• Awareness

End Outcomes

• Profitability

• Successful entrepreneurs

• Impact

Operational Measures Strategic Impact Measures

Strategic BI Increases

Source: The Institute Way

• S - specific

• M - measurable

• A - achievable

• R - realistic

• T - time-framed

Objectives should be

SMART

Performance Indicators and the Service Delivery Model

• Customer satisfaction

• Employee satisfaction

• # Associations

• # Citations

Lag Indicators

• Absenteeism

• Cycle times

• Defect rates

• Academic results

Lead Indicators

Models

• Logic Model

• Cause-and-Effect Model

• Process Flow Model

Logic Model: Performance Indicators and the Service Delivery Model

Input Measures

Employee time

Resource costs

Square Meters

Process

Efficiency – cost/beneficiary

Effectiveness – quality

Throughput

Cycle Time

Bottlenecks

Output Measures – activity measures

# units provided

# services rendered

# people served

# beneficiaries

# research papers

Outcome Measures

# successful enterprises created

# jobs created

Satisfaction Indices

OBJECTS

For whomwork is done

PROCESS/ACTIVITIES

Work

RESOURCES

What is used to do work

INPUT MEASURES

OUTCOMES

Process Measures

Outcome Measures

Information Insight

PerformanceOutput Measures

CostDrivers

Customers

Resources

Activities

PerformanceMeasures

Services / Products

The Service Delivery Model

Cause-And-Effect Model

Objectives

FINANCIAL

CUSTOMER

PROCESS

ENABLEMENT

ST03: Optimise

productivity and

mitigate risk

Process Flow Model

Receive customer order

Order assigned for picking

Pick Order Check Order Ship Order

Picking instruction

Update ERP

SO#

Deliver Order

Invoice Customer

Customer Perfect Order Fulfillment / Perfect

Order Completion Index WERC/SCOR RL1.185,70% 85,70% 95,10% 98% 99,13% 97,20%

% of Orders Delivered In Full WERC/SCOR RL2.1 93,50% 93,50% 96,20% 98,80% 99,70% 98%Delivery Performance to Customer Commit

Date WERC/SCOR RL2.2 80% 80% 90% 95% 99% 95,00%

Documentation Accuracy WERC/SCOR RL2.3 90% 90% 95% 98% 99,26% 97,00%

Perfect Condition WERC/SCOR RL2.4 94,40% 94,40% 97% 99% 99,50% 98,10%

Dock-to-Stock Cycle Time, in Hours WERC 22,06 22,06 8 4 2 6

Lines Received and Put Away per Hour WERC 9,52 9,52 20 26 59 22,5

Backorders as a Percent of Total Dollars/Units WERC 8,80% 8,80% 2,88% 1% 0% 2%

Backorders as a Percent of Total Lines WERC 8,18% 8,18% 3,24% 1% 0,05% 2,00%

Backorders as a Percent of Total Orders WERC 10% 10% 5% 1,74% 0,05% 2,40%

Cases Picked and Shipped per Person Hour WERC 30 30 60 100 180 75,6

Days on Hand Finished Goods Inventory WERC 90 90 52,2 30 15 40

Fill Rate – Line WERC 95% 95% 97,46% 99% 99,90% 98,05%

Internal Order Cycle Time WERC 28,6 28,6 15,09 6 2,44 8

Lines Picked and Shipped per Person Hour WERC 12,674 12,674 25 47,6 92,8 34

Lost Sales (Percent of SKUs Stocked Out) WERC 6% 6% 3,02% 1% 0,05% 2%

On-time Ready to Ship WERC 95% 95% 98% 99,10% 99,90% 99%

On-time Shipments WERC 95% 97,89% 99% 99,80% 99,80% 98,15%

Order Fill Rate WERC 93,82% 93,82% 97,25% 99% 99,72% 98,00%

Order Picking Accuracy (Percent by Order) WERC 98% 98% 99% 99,60% 99,90% 99,45%

Orders Picked and Shipped per Person Hour WERC 2,62 2,62 6 14,4 45 10

Pallets Picked and Shipped per Person Hour WERC 5 5 14,94 23,2 35 20

Percent of Orders Sent with Correct

Documentation

WERC 99% 99,00% 99,00% 99,78% 99,99% 99,50%

Percent of Orders Shipped Complete WERC 93,50% 93,50% 96,20% 98,80% 99,70% 98%

Percent of Orders Shipped Damage Free

(Outbound)

WERC 97,82% 97,82% 99,00% 99,60% 99,90% 99%

Percent of Orders with On-time Delivery WERC 95% 95,00% 98,00% 99,10% 99,80% 98,50%

Total Order Cycle Time WERC/SCOR RS.1.1 48 48 24 8 3 14

Fill Rate

WERC/SCOR

RL.3.36 93,82% 93,82% 97,25% 99% 99,72% 98,00%

From Data to Information

“Without data, you’re just another person with an opinion.” ~

W. Edwards Deming

• Collect

• Translate

• Load

Data

• Business modelling

• Integration

Models• Performance

Management

• Visibility

• Dashboards

Information

• Benchmark

• Solutions

• Action

Insight

The BI Supply Chain

WMS

ERP

Other

Spreadsheets

Direct Input

The Supply Chain Data Visualisation Roadmap

The Warehouse as Information Hub


WHO?

WHAT?

WHERE?

WHEN?

WHY?

HOW?

QUESTIONS?

ANSWERS


Supplier Details

Place order with supplier

Deliver Order

Sales SellCustomers Buys

Schedule Delivery

Deliver Order

Order to WMSUpdate ERP

Receive Goods

Receive Sales Order from Customer

Manage Inventory Process Sales Order

Return Goods

Stage and Stack

Replenish

Ready to Ship

To Supplier To Customer

Return Order

Customer Complains

Return Order

Customer Complaints

Place Order on System

Confirm Delivery


Supplier Details


Deliver Order

Sales SellCustomers Buys

Schedule Delivery

Deliver Order

Order to WMSUpdate ERP

Receive Goods


Manage Inventory Process Sales Order

Return Goods

Stage and Stack

Replenish

Ready to Ship

To Supplier To Customer

Return Order

Customer Complains

Return Order

Customer Complains

Place Order on System

Confirm Delivery


Receive Goods


Suppliers

PO#

Manage Inventory Process Sales Order Deliver GoodsGoods Received by

Customer

Goods OK?

Goods Returned

Goods OK?Goods

ReturnedNo

Yes

Stage and Stack

Yes

No

Replenish

Customers

Warehouse

Supplier Performance Delivery PerformanceWH inbound performance WH Management performance WH Outbound performance

PRODUCTS

PROCESS

The Warehouse Management Process

Order Receipt In-Full, Ready to

Ship

From Dock-to-Stock In-Full, Ready to Ship


Receive Goods


Suppliers

PO#

Manage Inventory Process Sales Order Deliver GoodsGoods Received by

Customer

Goods OK?

Goods Returned

Goods OK?Goods

ReturnedNo

Yes

Stage and Stack

Yes

No

Replenish

Customers

Warehouse

Supplier Performance Delivery PerformanceWH inbound performance WH Management performance WH Outbound performance

Visualising Your Supply Chain

First some basics on reporting and

analysis

Good Data Analysis: Keep Your Eyes on the Goal!!

Why?

Create opportunities Prevent problems

Predictive: Better predict the future

What do we want to happen?What actions would likely lead to this

desired outcome?

Descriptive: Better manage the present

What is happening? What is causing this to happen?

Data Analysis

Data Analysis

• DiscoveryData

Exploration

• Understanding

Data Sense-Making

INSIGHT

How do we get to the answers?

Define exactly what we want to see - Reporting

Explore the data and see what it reveals -Analysis

The Audiences

• Designed to visualize performance against predefined metrics for executives and managers

Reporting

• Empower business analysts to explore trends and anomalies in data sets they create and publish views for others to consume

Analysis


Now some basics on how our brains

function

Amplifying Cognition

“The purpose of data/information

visualisation is not to make pictures, but to

help us think”Stephen Few

The Eye

625 separate points of ink/sq.

inch

Registers 36,000 visual messages

per hour

Contribute towards 85% of

your total knowledge

Utilize 65% of all the pathways

to the brain

Most complex organs except for your brain

Visual Perception

Sensation(Physical Process)

Perception(Cognitive Process)

Perceptual OrganStimulus Sensory Organ

Memory

http://digitalsandbox.edublogs.org/files/2007/11/information-processing-model.jpg

Remains < 1 sec

Pre-attentive Processing

Attentive Processing• Temporary• Limited storage

Holds our ability to recognise images & to

detect meaningful patterns

Thinking with Your Eyes – Facts about Visual Perception

Fact 1: We do not attend to everything we see. Visual perception is selective as awareness of everything would overwhelm us. Our attention is often drawn to contrasts to the norm

Fact 2: Our eyes are drawn to familiar patterns. We see what we know and expect

Fact 3: Memory plays an important role in human cognition, but working memory is extremely limited

http://www.oppisworld.de/extras/illusionen/index.html

Fact 1: We do not attend to

everything we see

http://www.oppisworld.de/extras/illusionen/index.html

Fact 2: Our eyes are drawn to familiar

patterns

Fact 3: Memory plays an

important role in human cognition,

but working memory is

extremely limited

../Tableau/Training - Visualisation/Corner.mov

Data Visualisation

Making Abstract Data Visible

Pre-Attentive Attributes

“We can do certain things to symbols to make it much

more likely that they will be visually identified even after very brief exposure. Certain

simple shapes or colours “pop out” from their

surroundings. … pop out is called pre-attentive

processing – it occurs prior to conscious attention….”

Colin Ware. Information Visualisation: Perceptions for Design


Length Width Orientation

Size Shape Curvature

Enclosure Spatial Grouping Blur

Hue Intensity

2-D PositionDirection

Colour

Spatial Position Motion


Data Visualisation

The use of colour

59

Colour Blindness Tritanopia – Blue-Yellow Colour Blindness

S-cones

M-cones

L-cones

60

Colour Blindness Deuteranopia – Red-Green Colour Blindness

https://www.google.co.za/search?q=Deuteranopia+%E2%80%93+Red-Green+Colour+Blindness&rlz=1C1CHFX_enZA759ZA759&source=lnms&tbm=isch&sa=X&ved=0ahUKEwi2kryJw7zbAhUIO8AKHTt5AUgQ_AUICigB&biw=1396&bih=665#imgrc=xcI0fRT3h5xj1M:

61

Colour Blindness Protanopia – Red-Green Colour Blindness

Being a protan has associated with it a

level of risk of road accident that is

equivalent to having a blood alcohol

level of between 0.05 and 0.08 per

cent.

The Use of Colour

The Use of Colour - Contrast

“…avoiding catastrophe becomes the first principle inbringing colour to information: Above all, do no harm.”“…avoiding catastrophe becomes the first principle inbringing colour to information: Above all, do no harm.”“…avoiding catastrophe becomes the first principle inbringing colour to information: Above all, do no harm.”“…avoiding catastrophe becomes the first principle inbringing colour to information: Above all, do no harm.”“…avoiding catastrophe becomes the first principle inbringing colour to information: Above all, do no harm.”“…avoiding catastrophe becomes the first principle inbringing colour to information: Above all, do no harm.”“…avoiding catastrophe becomes the first principle in

bringing colour to information: Above all, do no harm.”

The Use of Colour - Text

The Use of Colour - Text


DEMO


Workshop:Let us start

visualising our supply chain/s

Documents

Visualising Your Supply Chain - SAPICS 2018€¦ · Visualising Your Supply Chain Creating a visual point of balance between inventory and investment