讲义参考分析dsp1.design workshop process review

1、May 18, 2006Business TransformationD&SP Detailed Design Workshop : 1.0 Formulate Service Strategy 1Demand & Supply Planning Process ArchitectureThe D&SP ER team completed the detailed design for Module 1.0, “Formulate Service Strategy.”Strategic18+ Months12 18 MonthsWeekly 1 Montht = 0(Customer Requ

2、irement Date)TacticalExecutionInventory Policy ManagementBudget/Network Optimization2.0 Conduct Strategic Inventory Plng.6.0 Conduct Integrated Supply/Demand PlanningDifferentiated Service LevelsCustomer Segmentation1.0 Formulate Service Strategy7.0 Manage Orders & MaterialsOrder Commit / Mat. Reser

3、v.Material Order SourcingNetwork Balancing8.0 Conduct Performance MeasurementLot Size OptimizationNet Requirements Determination5.0 Plan ReplenishmentConstraint-Based Demand PlanningStatistical ForecastingAvailable to Commit (ATC)Constraint-Based Supply Planning3.0 Manage Demand4.0 Manage Supply2Dem

4、and & Supply Planning Module 1.0 ObjectivesModule 1.0 provides the foundation for SSOS functions to customize their service responses and engagement strategies for each unique client program that is served. This ensures that the service delivered to each program is commensurate with the costs incurr

5、ed.Current ProcessCurrent esTo-Be ProcessTo-Be esNo long-term materials or services planning processNo easy way to customize supply chain responses to unique program needsLimited visibility to program information, performance, and impactsInability to prioritize and differentiate services to be provi

6、ded between programsLack of synchronization between planning and execution for materials and services e-first-served service modelPeriodic review of program-specific data, analytics and metricsStrategic segmentation model to create unique program segments and assign differentiated service levels and

7、 supply chain programsDistinct program groups with a clearly-defined service strategy and engagement model for each group Ability to align planning and execution processes Easier tracking of service metrics3Demand & Supply Planning Module 1.0 MethodologyThe team used a structured approach to develop

8、 the strategy framework, analytics and working model.Develop Strategic ContentValidate Framework and ModelGather Data and Build ModelDevelop Analytical FrameworkStep IStep IIStep IIIStep IVDetermine segmentation criteriaDevelop segmentation model and approachCollect dataConduct design sessions to de

9、velop model Load model with actual dataIterate model to test feasibilityChange model to align with business realityConfirm customer groupingsDevelop strategy frameworkPopulate framework by groupingActivitiesOutputsSegmentation model approachAnalysis frameworkDesign workshopsPreliminary working model

10、sPopulated model with SC validationInitial strategy templates4Demand & Supply Planning Segmentation Model InputsTo produce the segmentation results, a model was built that used weighted components and assigned scores for CTS and service/business complexity.Analytic ModelRegulatory RequirementImpact

11、on End Customer SatTotal Material SpendEmergency Response RequirementWeight20%30%30%20%DefinitionGauges percent of work driven by external regulations.How work does or does not impact end customer satisfaction scores.A key driver of internal complexity, as well as a relative measure of criticality.G

12、auges how much of the work requires an emergency response.Business & Service Complexity ModelingTotal Material IssueOverdraw PercentageDemand Variation of Daily IssuesFinal Week Material Order Creation %Weight60%10%15%15%DefinitionDirect measure of transactions and costs within SC departments.Captur

13、es direct and indirect costs that overdraw imparts.Proxy for costs as variation increases, costs increase.Proxy for costs as order LT decreases, costs increase.Cost-to-Serve Modeling5Demand & Supply Planning Module 1.0 Output Segmentation ModelA primary output of this exercise was the program segmen

14、tation model which creates logical program groupings that the SSOS must serve.Utility Program Segmentation ModelBusiness and Service Complexity1Cost to Serve1LowHighLowHighFleet Management and ServicesCGT Clean Air Transp.Electric ReliabilityWROField and Metering ServicesCapability / Reliability / U

15、nderground AssetsElect Maintenance / PolesCGT Capital PipelineElectric CapacitySubstation ManagementElect Emergency ResponseNew BusinessFossil GenerationGas Pipeline ReplacementPole ManagementProtection and AutomationHydro GenerationCGT MaintenanceGas Maint.Gas CapitalAutomated MeteringCGT Capital S

16、tationComputing Systems1See ing slides for criteria definitions6Demand & Supply Planning Module 1.0 Output Segmentation ModelThis is our first, unfiltered attempt at creating the program groupings. A validation process with the clients is our next step.Utility Program Segmentation ModelBusiness and

17、Service ComplexityCost to ServeLowHighLowHigh“Optimize Supply Chain”“Optimize Cost”“Leverage Best Practices”“Maintain Engagement Level”ProgramsStrategic IntentCapability / Reliability / Underground AssetsElectric Maintenance / PolesCGT Capital PipelineElectric CapacityIdentify cost and complexity ro

18、ot causesEngage clients to drive down costs and complexityRationalize service levels to meet business requirements and reduce costsMonitor on-going cost performanceProgramsStrategic IntentWROSubstation ManagementNew BusinessElectric Emergency ResponseExplicitly define expected service levelsEngage c

19、lients to deliver service levels and optimize costsImplement rigorous engagement and collaboration programsMonitor on-going service performanceProgramsStrategic IntentProt & AutoHydro GenPole MgtCGT MaintGPRFossil GenFleet MgtCGT TranspComputingDevelop prescriptive cost and service model to jointly

20、implement with clientsEngage and collaborate as defined by service modelProgramsStrategic IntentElectric ReliabilityField and Metering ServicesIdentify best practices and characteristics of these programs that can be shared across other programsEngage and collaborate as needed to maintain cost and s

21、ervice performanceGas MaintGas CapitalCGT Cap StaAuto Metering7Demand & Supply Planning Preliminary Service StrategyAfter the program groupings are formed, differentiated service levels are assigned to them through the strategy template.SC Strategy TemplateProgram GroupingComplexity CharacteristicsC

22、ost-to-Serve Characteristics“Supply Chain Optimizers”Clients defined as those having relatively higher and/or more complex service and business requirements, and having a relatively higher cost-to-serve. Currently includes 4 clients: WRO, New Business, Substation Management, and Electric Emergency R

23、esponse.Regulatory Requirements 2+ (scale of 0-3, 3 = High)Impact on Customer Satisfaction 3 Emergency Response Requirements 0-3 Total Material Spend 3Total Material Issues $31M per year (average)Overdraw Percentage 21.5% (average)Daily Issue Variation CoV of 1.39 (average)Final Week Mat. Order Rele

24、ase 31% (average)Strategic IntentExplicitly define expected service levelsEngage clients to deliver service levels and optimize costsImplement rigorous engagement and collaboration programsMonitor on-going service performanceStrategy ComponentsTarget BFR 98%Collaborative Demand Planning Frequency We

25、ekly / MonthlyDedicated Demand/Supply Planners YesIntegrated Planning Sessions MonthlyMDO Field Response/Replenishment Time HighWarehouse Inventory Commit Prioritization First Transportation Capacity Allocation FirstPerformance Management Extensive Metrics, Monthly ReviewOpen PO Review Prioritizatio

26、n FirstSupplier Collaboration Extensive, QuarterlySupplier Sourcing Collaboration Extensive, QuarterlyILLUSTRATIVE8Demand & Supply Planning Module 1.0 Detailed Process FlowsModule 1.0 Formulate Service Strategy Detailed Process Flows9Demand & Supply Planning Module 1.0 Detailed Process Flows10Demand

27、 & Supply Planning Module 1.1 Level 3 Process Flows11Demand & Supply Planning Module 1.2 Level 3 Process Flows12Demand & Supply Planning Module 1.3 Level 3 Process Flows13Demand & Supply Planning Module 1.4 Level 3 Process Flows14Demand & Supply Planning Module 1.5 Level 3 Process Flows15Demand & Su

28、pply Planning Module 1.6 Level 3 Process Flows16Preliminary SC Strategy TemplatesCost-to-Serve AnalyticsProgram ProfilesDemand & Supply Planning Appendix17Demand & Supply Planning Preliminary Service StrategyAfter the program groupings are formed, differentiated service levels are assigned to them t

29、hrough the strategy template.SC Strategy TemplateProgram GroupingComplexity CharacteristicsCost-to-Serve Characteristics“Supply Chain Optimizers”Clients defined as those having relatively higher and/or more complex service and business requirements, and having a relatively higher cost-to-serve. Curr

30、ently includes 4 clients: WRO, New Business, Substation Management, and Electric Emergency Response.Regulatory Requirements 2+ (scale of 0-3, 3 = High)Impact on Customer Satisfaction 3 Emergency Response Requirements 0-3 Total Material Spend 3Total Material Issues $31M per year (average)Overdraw Per

31、centage 21.5% (average)Daily Issue Variation CoV of 1.39 (average)Final Week Mat. Order Release 31% (average)Strategic IntentExplicitly define expected service levelsEngage clients to deliver service levels and optimize costsImplement rigorous engagement and collaboration programsMonitor on-going se

32、rvice performanceStrategy ComponentsTarget BFR 98%Collaborative Demand Planning Frequency Weekly / MonthlyDedicated Demand/Supply Planners YesIntegrated Planning Sessions MonthlyMDO Field Response/Replenishment Time HighWarehouse Inventory Commit Prioritization First Transportation Capacity Allocati

33、on FirstPerformance Management Extensive Metrics, Monthly ReviewOpen PO Review Prioritization FirstSupplier Collaboration Extensive, QuarterlySupplier Sourcing Collaboration Extensive, QuarterlyILLUSTRATIVE18Demand & Supply Planning Preliminary SC Service Strategy Template“Leverage Best Practices” -

34、 For this segment, SSOS will identify and expand the practices and procedures that allow plexity programs to impart a relatively lower cost-to-serve.Program GroupingComplexity CharacteristicsCost-to-Serve Characteristics“Leverage Best Practices”Clients defined as those having relatively higher and/o

35、r more complex service and business requirements, and having a relatively lower cost-to-serve. Currently includes 2 clients: Electric Reliability and Field & Metering Services.Regulatory Requirements 3 (scale of 0-3, 3 = High)Impact on Customer Satisfaction 2+Emergency Response Requirements 0-2Total

36、 Material Spend 2+Total Material Issues $5.3M+ per year (average)Overdraw Percentage 4.3% (average)Daily Issue Variation CoV of 1.81 (average)Final Week Mat. Order Release 50%+ (average)Strategic IntentIdentify best practices and characteristics of these programs that can be shared across other prog

37、ramsEngage and collaborate as needed to maintain cost and service performanceStrategy ComponentsTarget BFR 95%Collaborative Demand Planning Frequency Low (Quarterly)Dedicated Demand/Supply Planners NoIntegrated Planning Sessions QuarterlyMDO Field Response/Replenishment Time HighWarehouse Inventory

38、Commit Prioritization HighTransportation Capacity Allocation FirstPerformance Management Quarterly / Annual ReviewOpen PO Review Prioritization MediumSupplier Collaboration Medium, QuarterlySupplier Sourcing Collaboration Medium, QuarterlyILLUSTRATIVE19Demand & Supply Planning Preliminary SC Service

39、 Strategy TemplateOptimize Costs” - Programs in this segment will be supported by new analytics, processes and strategies offered by SSOS to drive down their complexities and costs.Program GroupingComplexity CharacteristicsCost-to-Serve Characteristics“Cost Optimizers”Clients defined as those having

40、 relatively less complex service and business requirements, and having a relatively higher cost-to-serve. Currently includes 4 clients: CGT Capital, Electric Capacity, Electric Maintenance / Poles, Capacity / Reliability / Underground Assets .Regulatory Requirements 1-2 (scale of 0-3, 3 = High)Impac

41、t on Customer Satisfaction 1-2Emergency Response Requirements 0 Total Material Spend 2+Strategic IntentIdentify cost and complexity root causesEngage clients to drive down costs and complexityRationalize service levels to meet business requirements and reduce costsMonitor on-going cost performanceSt

42、rategy ComponentsTarget BFR 95%Collaborative Demand Planning Frequency High (Weekly / Monthly)Dedicated Demand/Supply Planners NoIntegrated Planning Sessions MonthlyMDO Field Response/Replenishment Time MediumWarehouse Inventory Commit Prioritization MediumTransportation Capacity Allocation MediumPe

43、rformance Management Extensive Metrics, Monthly ReviewOpen PO Review Prioritization LowSupplier Collaboration Low, QuarterlySupplier Sourcing Collaboration Low, QuarterlyTotal Material Issues $12M per year (average)Overdraw Percentage 17% (average)Daily Issue Variation CoV of 1.53 (average)Final Wee

44、k Mat. Order Release 40% (average)ILLUSTRATIVE20Demand & Supply Planning Preliminary SC Service Strategy Template“Maintain Engagement Level” - Programs in this segment will be supported by analytics, processes and strategies offered by SSOS to maintain and/or adjust their current service levels and

45、engagement approaches.Program GroupingComplexity CharacteristicsCost-to-Serve Characteristics“Maintain Engagement Level”Clients defined as those having relatively lower complex service and business requirements, and having a relatively lower cost-to-serve. Currently includes 13 programs. (Fleet Mana

46、gement, Gas Pipeline Replacement, Gas Capital, CGT Maintenance, CGT Capital Station, Hydro Generation, Fossil Generation, etc.)Regulatory Requirements 0-2 (scale of 0-3, 3 = High)Impact on Customer Satisfaction 0-2Emergency Response Requirements 0-1Total Material Spend 0-2Strategic IntentDevelop pre

47、scriptive cost and service model to jointly implement with clientsEngage and collaborate as defined by service modelStrategy ComponentsTarget BFR 95%Collaborative Demand Planning Frequency Low (Annual)Dedicated Demand/Supply Planners NoIntegrated Planning Sessions As-NeededMDO Field Response/Repleni

48、shment Time LowWarehouse Inventory Commit Prioritization LowTransportation Capacity Allocation LowPerformance Management Extensive Metrics, Annual ReviewOpen PO Review Prioritization LowSupplier Collaboration Low, As-NeededSupplier Sourcing Collaboration Low, As-NeededILLUSTRATIVETotal Material Issu

49、es $0.8M per year (average)Overdraw Percentage 20% (average)Daily Issue Variation CoV of 2.28 (average)Final Week Mat. Order Release 37% (average)21Demand & Supply Planning Module 1.0 Output Cost-to-Serve AnalyticOne CTS analytic demonstrated the relative statistical variation in monthly orders on a

50、 program-by-program basis. This is a strong proxy for cost in that increasing variation imparts increasing costs on SC to fulfill those orders.Requisitions CoV1Daily Issues CoV11CoV is the coefficient of variation and is the ratio of the standard deviation to the mean of a data stream. Its a relative measure of variation between processes. CoV greater than 1.0 means the process is more unstable than it is stable. Example: CoV = 3.0 means that while each order may contain 5 units on average, it varies up to 15 units 67% of the time (1 std dev).Represents