康佳物流整合项目咨询全案100m konka3月15日.5chinese

ThomasGroupThomasGroupHongKongLimitedSuite2801,Tower6,TheGatewayHarbourCity,9CantonRoad ,HongKong:(852)2175-Fax:(852)2175-March14,Mr.KuangYu-binGeneralMultimediaProductMr.FengYun-Director,EnterpriseManagementKonkaGroupCo., P.R.Subject:KonkaLogisticstformProgramDearMr.KuangandMr.ItwasverymuchapleasureforourteamtomeetyouandyourteamagainonMarch7,2003.HavingmetwithyouandkeyleadersofKonkaonanumberofoccasionsbeforethisandconductedtheProcurementandSupplyChainManagementworkshopinFebruary,wefeelthatthereisagoodspiritofcooperationbetweenourorganizationsandwelookforwardtoworkingwithyouonyourbusinessimprovementprogramstohelpKonkaachieveitsstrategicandoperationalgoals.Weunderstandfromourdiscussionsthatyourbusinessisexpandingrapidly,butfacingincreasingcompetitivepressures,bothfromcompaniesaswellasmultinationalskeenongainingmarketsharein.KonkaisalsoaggressivelyexpandingworldwidebyboostingtheexportsofitsownproductandbymakingOEMproductsforoverseasbrandnames.Assuch,itiscriticaltooptimizeKonka’ssales,manufacturingandsupplychain(includingprocurementandlogistic)businessprocesses.Alongtheselines,weunderstandKonkaisconsideringtheestablishmentofanewlogisticstformasanindependentfunctiontosupporttheexistingMultimedia(evision)productlinesaswellasotherproductsmadebyKonkaorothercompaniesintheindustry.FurtherweunderstanditiscriticaltointernalizeacontinuousimprovementmindsetintheKonkaorganization,bothtosolveshort-termproblemsandtomakesuretheorganizationcontinuestoremovebarriersandsubstitutebusinessprocessessothatKonkacancontinuetogrowaheadofthecompetitioninthefuture.ThisletterdescribeswhatweseeasthenofactionforemployingThomasGroupHongKongLimited(TGHK)togetherwithitsexpertiseandproprietarymethodologiesandtoolstoimplementyournewlogisticstform.Whatwelearnedfromyou:high-levelcorporatedilemmasandInthecourseofourdiscussions,youhavespelledoutanumberofhighlevelcorporatedilemmasandissuesfacingyou.Theseareasfollows:Thereisaneedtooptimizethemixofmanufacturing,logistics,distribution,deliveryandmarketneeds.Konkacurrentlyhas:6manufacturing47salescompanieswith47regionaldistributioncenters(RDC)serving7Over100localwarehousesanddistributioncenters(LDC),3,000distributorsandretailersacrossSometimes,thereisanothersalesofficelogisticsoperatinglevelbetweentheRDC’satthesales andthedistributorsYoubelievethatthereisstrategicandeconomicjustificationforseparatinglogisticsfromsalesYouappeartohavehighinventories.Thisrelatestologisticsmanagement,andwilltypicallyresultinhighcarryingcost,highrisk,highratesofobsolescenceandoften,lostsalesSeasonalityisimportantinyourbusiness.Thiswillhaveimpactsonalloperations,salesandmarketingYourNewProductDevelopment(NPD)cycletimeistoolong;youareslowtodevelopandrolloutnewproducts.Thisaffectsmarketingeffectiveness,salessuccessandriskandlossesagainstmanufacturedstocks.WhileThomasGroup(TG)hasintensiveexperienceandimpressivesuccessesinthisarea,wehavenotaddressedthiswithinthescopeofthisproposal.YouaremakingchangestoyourAfterSalesServiceactivities,whichisinter-relatedtologisticsinservingaftermarketwithmanyimplicationsforyourcustomerserviceandsatisfaction,yourabilitytogainandretainsalesandyourcostsandprofitabilityWhatyouhaveaskedThomasGrouptohelpyouYouhavenarrowedtheworkthatyouwantdone,andhaverequestedthatweworkwithyouto plishthefollowing:Establishanindependentlogisticstform.LogisticsiscurrentlyafunctionunderIdentifylogisticscostreductionsandntheirUseyourlogisticsresources/capabilitiesforotherSetuptherequiredlogisticsinfrastructuretoachievetheUseyourexistingERPsystemtosupportyourlogisticsPrepareaandaworknforimplementationofthenewlogisticsThomasGroupDeliverables-SolutionstoKonka’sdilemmasandissueswithinthescopeasdefinedaboveWehaveoutlinedwhatweconsidertobesomeofthemainelementsofworkrequiredtoaddressyourdilemmasandissues.Thesearelistedbelow.Prepareprocessmapsforallofyourlogisticsactivitiesandallinterfaceswithotherbusinessprocesses.Thiswillincludesomeorallofsales,ordertaking,transportationmanagement,warehousing,customerservices,invoicingandcollections,creditcontrol,marketingpromotionsanddelivery.Aspartofthisprocesswewill:Establishyourcycletimes(CT),firstpassyields(FPY),inventorylevels,on-time-delivery(OTD)performanceandservicelevelsfortheend-to-endlogisticssystemEstablishyourcurrent(“asis”orBaseline)andyourpotential(“tobe”orEntitlement)levelsofperformanceIdentifytheoptimalorganizationalstructureforthebusinessDetailyournningandinformationrequirements.Thesewillincludesalesforecasting, SpecialthoughtneedstobegiventotheKonkaERP’sadvancednning&schedulingDevelopandoutlinethedesiredlogisticsinfrastructure,Thenetworkoffactories,warehouses,RDC’s,LDC’s,bridging(trunkingormovementtoRDC’sandLDC’s),delivery(tocustomer),communications,controls,cashflowconsiderations(billingsandpayments)AnoverviewofinventorymanagementOptionsfornetworkPrepareafortheimplementationofthenewlogisticstform.ThisincludesidentificationofproblemsthatmightoccurwhenmovinglogisticsfromSalestothenewbusinessunit,anddevelonsto ethesebarriersfytheopportunitiesforcostcuttingandserviceBeginimplementationofthenewlogisticstform(orpartsofitasfeasible)inoneregion.ThiswouldbelikeapilotoperationtodemonstrateanddeveloptherolloutTGapproachandThomasGroupemploysamethodologythatsystematicallyworksacrossandprocessestochangethewayyouworkandtoachieveradicalimprovements,aswellasmanagethechange.Theapproachinvolves:Assessingtheexistingperformanceofkeycross-functionalprocessesagainstcustomer-drivenneedsandwantsEstablishingprocess-basedmetricsthatfytheproductivityandqualityoftheorganization’skeyprocessesIdentifyingtheprocessandbusinessculturalbarriersthatimpedethespeed,quality,productivity,andpredictabilityofkeyprocessesLinkingtheorganization’sfunctionalstructureandactivitiestounderlyingcross-functionalbusinessprocessesUsingempoweredandaccountablecross-functionalteams,mentoredandcoachedbyexperiencedconsultingpartners,toprioritizeandremovehighleverageprocessandbusinessculturalbarriers.Applyingbest-in-classprocessimprovementtools(bothproprietaryandpublic)onacustomizedbasis,toquicklyfacilitatebarrierremovalInternalizingthemethodologysothatthefinancialbenefitsgained ImplementaContinuousMindsetandremovebarrierstoThemethodologyhasveryspecificstepsthatweemploy.TheseareasActivatetheBusinessImprovementTeam(BIT),CrossFunctionalTeams(CFT)andBarrierRemovalTeams(BRT)throughoutorganizationTheBITisthetop-levelteamthatguidesanddrivestheCFT’sarebuiltaroundeachcriticalprocess,andincludethosefunctionalareasthatyaroleintheprocess;bynaturetheyincludemultipleBRT’sareadhocteamsthatareassignedtoremovebarriersandachieveAgreeuponandthendefineandmapthemajorprocesseswithcycletimes(CT),firstpassyields(FPY)andontimedelivery(OTD)metrics.IdentifyKPI’s.ThisalsoincludesdecidinguponBasisforMeasurement”(BFM)fortheimportantmetrics.StartdatagatheringfortheKPI’sandtheAssesscurrentperformance(establishthe“Baseline”)fromwhichimprovementswillbemade.Identifyearlyimprovementareas.Thiswilldefinethebenefitsoftheprogramandwhatneedstobedonefirst.DevelopandinstallpertinentdriverKPI’satemployeefunctionallevel.Thesedrivepeople’sperformanceandensurethatbehaviorsproducedesiredresults.ValidateprocessmapsandupgradeasRefineandfocusOfnote,wewishtostressthatweselldisciplineaswellasmethodology,andtheresultsthatflowfromthis.WhyitisbestforKonkatoemployaspecialistWebelievethatthereareanumberofcompellingreasonswhyKonkanstoemployaspecialistconsulting likeThomasGroupthathasbuiltitsreputationonchangeandcommercialresults.Theseinclude:Wehaveextensiveexperienceincoachingandsupportingmanagementtoleadthetransformationoftheorganization.Extensiveelectronicsindustryknow-Wedrivetheimplementationofchangewithamethodologyfocusedonprocessandsupportedbyperformanceindicatorsthatdirectlymeasureresults.Powerfultoolsdevelopedover25yearsandthatareproventoWecanenhancethemotivationofallinvolvedto“getthingsThomasGroupproposaland mendaholisticapproachusingtheProcessValueManagement(PVM)methodology.(Holisticcanbedefinedas“thewholeisgreaterthanthesumoftheparts”or“treatthewhole ,ratherthansimplythesymptomsofthedisease.”)Toputitsimply,wewillevaluatealloftheissuesandopportunitiesforthelogisticstformimplementation,andwillstartimmediayonpreparingandimplementingsolutionsandchange.Atthesametime,wewilldevelopprocessknowledge,dorootcauseysisanddevelopstatisticsandmeasurementsforimprovements.AschematicoftheapproachisshownintheenclosedAppendixWecanmobilizetostartworkinAprilandanticipatecompletionbyProjectstaffingandTGwilldedicatetothisProgramacoreteamheadedbyaResultsManager(RM)withtwoResultants,anumberofBusinessysts,andtechnicalsupportfortheyticalandapplicationwork.Inaddition,wewillbringinfromEuropeaseniorexpertatarchitecture,whichistheprocessofnningtheteam’sworkatthestart.TheteammembersTGwillassigntothisprojecthaveextensiveexperienceinprocessmanagement,logisticsandsupplychainpractices,salesandmarketingprocessesanddistributionoptimization.InadditionwewillprovideaTGqualityassurancefortheexecutionoftheprojectbothonsiteandforysiswork.Ascircumstancesmightdictate,TGmightchangethecompetencyandthedurationofindividualResultantsassignedtotheproject.FromKonka,wewillneedBITteammembersaswellasCFTandBRTteammembers.WeanticipatethattheBITwillincludetopmanagementandtheheadsofSales,Logistics,Operations,Accounting,ITandHR,andpossiblyothers.TheCFT’swouldtypicallyinclude4-5peopleacrossthefullrangeoffunctionsthatdealwitheachprocesshandled.BRT’scanhaveanywherefrom1to4or5peopleonthem.Weanticipateoverallthat50to75peoplefromKonkawillbedeeplyinvolvedinthisexercise.Someparticipantswillspendintheorderof2