Supply Chain Transformation and Systems Implementation Journey ...
Supply Chain Transformation and Systems Implementation Journey ...
Supply Chain Transformation and Systems Implementation Journey ...
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
Facts about DuPont - Br<strong>and</strong>sCorian® - CountertopNomex® - Firefighting Fabric, Electrical InsulationSorona® - Carpet FiberDanisco® - Specialty Foods, Industrial BiosciencePioneer® - SeedTeflon® - Cookware Coating, FinishesKevlar® - VestTyvek® - HousewrapDiverse Product Lines© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 3 | 4/23/13
Facts about DuPont - Businesses BUILDING INNOVATIONS CHEMICALS AND FLUOROPRODUCTS CROP PROTECTION ELECTRONICS & COMMUNICATIONS INDUSTRIAL BIOSCIENCES NUTRITION & HEALTH PACKAGING AND INDUSTRIAL POLYMERS PERFORMANCE POLYMERS PIONEER PROTECTION TECHNOLOGIES SUSTAINABLE SOLUTIONS TITANIUM TECHNOLOGIESHousingFoodDefenseAutomotivePackagingConsumer ProductsDiverse Businesses© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 4 | 4/23/13
Facts about DuPont – Manufacturing Processes Discrete Manufacturing – Kalrez, Vespel (Seals/Gaskets) Bulk Manufacturing – Fluoro Chemicals (Refrigerants) Semi-Continuous Manufacturing – Polymer Products Film Manufacturing – Tyvek (Building Wraps) Batch Manufacturing – Crop ProtectionDiverse Manufacturing© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 5 | 4/23/13
Different Manufacturing Process at Different StagesStage 1 Stage 2 Stage 3Bin Make-up(Grind dump)SIRUPMolding Cool FinishingPackaging(De-flashing)Discrete Discrete DiscreteDiscretePigmentMixingBatchA Product may have different manufacturing process in amulti-stage manufacturing environment© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 6 | 4/23/13
Facts about DuPont - Complexity Many <strong>Supply</strong> <strong>Chain</strong>s Diverse Product Lines Diverse Manufacturing Process Types Diverse Markets & Customers Diverse Macro-Economic Impact (Sectors) Diverse Software <strong>Systems</strong> Diverse Processes© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 7 | 4/23/13
AgendaDuPont – Basic Facts<strong>Transformation</strong> <strong>Journey</strong>Business Process Management (BPM) ARIS – The BPM ToolMapping SCOR/APICS Planning Hierarchy in ARIS<strong>Supply</strong> <strong>Chain</strong> <strong>Transformation</strong> Framework<strong>Systems</strong> <strong>Implementation</strong> FrameworkQuestions?© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 8 | 4/23/13
<strong>Supply</strong> <strong>Chain</strong> <strong>Transformation</strong> ApproachDeveloped a Process Driven Approach for <strong>Supply</strong> <strong>Chain</strong><strong>Transformation</strong> St<strong>and</strong>ardize Business Processes St<strong>and</strong>ardize Software <strong>Systems</strong> St<strong>and</strong>ardize <strong>Implementation</strong> & Rollout Approaches Adopt Best PracticesSt<strong>and</strong>ardize While Respecting Business Uniqueness toSupport Competitive Advantage© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 9 | 4/23/13
Traditional Approachvs New Approach<strong>Supply</strong> <strong>Chain</strong>ScienceAPICSSCORBest Practices& ProcessSt<strong>and</strong>ardsSt<strong>and</strong>ardIntegratedProcessModelBUxx Process vs St<strong>and</strong>ardProcess Model Fit/Gap(Solution Design Lab)New ApproachDem<strong>and</strong>PlanningSolutionsBased onSt<strong>and</strong>ardBest Practice<strong>Supply</strong>PlanningAssetSchedulingIndividual Solutions by BusinessDem<strong>and</strong> Planning/<strong>Supply</strong> Planning/SchedulingBU 1Dem<strong>and</strong> Planning/<strong>Supply</strong> Planning/SchedulingBU 2Dem<strong>and</strong> Planning/<strong>Supply</strong> Planning/SchedulingBU 3Dem<strong>and</strong> Planning/<strong>Supply</strong> Planning/SchedulingBU 4•Dem<strong>and</strong> Planning/<strong>Supply</strong> Planning/SchedulingBU 14© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 11 | 4/23/13
St<strong>and</strong>ardization FrameworkBusinessLevelProcess ModelDevelop Global St<strong>and</strong>ard Business Process ModelBU 1 BU 2 BU 3 BU 4 BU 5BU..nCorporateLevel AnalysisIdentify Common Process & VariantsDrive st<strong>and</strong>ardization based on Key Guiding PrinciplesCommon ProcessesBusiness Specific Process VariantsAgreed UponProcessesIT Architecture RoadmapTemplate DesignSolution DesignSolution RolloutBU 1 BU 2 BU 3 BU 4 BU 5BU..n© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 12 | 4/23/13
From SC Diagnostics to SC Solution Design to DeploymentSupporting Methodology & <strong>Systems</strong>:6 Sigma, Lean, Optimization, Simulation,StatisticsARIS, SAP, APO, SmartOpsInitial <strong>Journey</strong>Build PeopleCompetencyImplement <strong>Supply</strong> <strong>Chain</strong><strong>Systems</strong> & SolutionsDiagnostic &MaturityAssessmentHeatmapPeopleProcessTechnologyData1 & 2 2Diagnostic Team<strong>Supply</strong>ManagementS&OPPeople, Process, <strong>Systems</strong>Analysis, Design, ImprovementUsing BPM Framework2 & 3Dem<strong>and</strong>ManagementProductManagementProcess PerformanceMeasurementImplement Improved<strong>Supply</strong> <strong>Chain</strong> ProcessesContinuousImprovementCycleS&OP, Dem<strong>and</strong>, <strong>Supply</strong> & Product Management<strong>Journey</strong> to <strong>Supply</strong> <strong>Chain</strong> Excellence© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 13 | 4/23/13
AgendaDuPont – Basic Facts<strong>Transformation</strong> <strong>Journey</strong>Business Process Management (BPM) ARIS – The BPM ToolMapping SCOR/APICS Planning Hierarchy inARIS<strong>Supply</strong> <strong>Chain</strong> <strong>Transformation</strong> Framework<strong>Systems</strong> <strong>Implementation</strong> FrameworkQuestions?© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 14 | 4/23/13
Business Process Management Business Process Business Process Management Business Process Model© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 15 | 4/23/13
Business ProcessWhat are Business Processes?A way to document people, process (the work people do), tools (thetechnology people use) & the performance objectives for enterpriseprocesses (strategy & data)– Processes need to be repeatable– Processes need to be measurable●Define KPIs●Designed for Effectiveness & Efficiency●Should Generate Value– Processes need to be Visible●Business Process Models– Processes evolve over time– Processes need to be Managed●Business Process ManagementManaging Business is Managing Process© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 16 | 4/23/13
What is Business Process Management?Excerpted from High Performance Through Process Excellence, Mathias Kirchmer(2009)– BPM is a management disciplinethat provides governance for aprocess-oriented organization withthe goal of agility <strong>and</strong> operationalperformance.– BPM uses methods, policies,metrics, management practices,<strong>and</strong> software tools to manage <strong>and</strong>continuously improve anorganization’s business processes– A way to connect key performanceobjectives with business processes– BPM supports processst<strong>and</strong>ardization– Treats business processes asbusiness assetsAn on-going journey, not a destination© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 17 | 4/23/13
BPM Goals Short-term: Business & Function Effectiveness &Alignment Long-term: Business AgilityRigorous modeling of the business <strong>and</strong> its processes has become anecessary capability to remain competitive in a fast-changing world© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 18 | 4/23/13
Business Benefits of BPMFocus on Process Improvement First, then on <strong>Systems</strong>Solutions– Cheaper <strong>and</strong> Faster Deployment– More Efficient Maintenance of Deployed <strong>Systems</strong> Solutions<strong>Implementation</strong> <strong>and</strong> improved adoption of Best PracticesEnables Process-Oriented Benchmarking across <strong>Supply</strong><strong>Chain</strong>sIntra-BU / Inter-BU Process Integration <strong>and</strong> Reduction ofFunctional <strong>and</strong> Business Stove-piping– Moves from Functional to a Process-oriented Organization●<strong>Supply</strong> <strong>Chain</strong>, Sourcing, Logistics, Sales <strong>and</strong> Marketing, ManufacturingSt<strong>and</strong>ardized training <strong>and</strong> workKeeps business process <strong>and</strong> technology aligned as changesoccurBPM helps move towards process-orientation© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 20 | 4/23/13
Business Process Maturity LevelsLevel 1 Level 2 Level 3 Level 4 Level 5No organizedprocessesSomeorganizedprocessesMostprocessesorganizedProcesses aremanagedProcessescontinuouslyimprovedP R O C E S S M A T U R I T YA Culture ofheroesProcesses areimproved at workgroup ordepartment levelProcesses areOrganized <strong>and</strong>redesigned atenterprise levelProcesses aremeasured <strong>and</strong>managedsystematicallyProcess teamscontinuouslyimproveprocesses© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 21 | 4/23/13Source: Wolf/Harmon, 2006
BPM - With What? Must use Industry Reference Model, e.g. SCOR, APQC Definitions, Benchmarks, Best Practices from SCOR,APQC, APICS <strong>and</strong> other Industry St<strong>and</strong>ards Business Process Modeling– The activity of representing processes of an enterprise, sothat the current process may be analyzed <strong>and</strong> improved– Process Modeling Technology, e.g., ARIS (ARchitecture ofIntegrated Information <strong>Systems</strong>) to facilitate formal BPM(Business Process Management) Links to Solution Manager for SAP Configuration© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 22 | 4/23/13
AgendaDuPont – Basic Facts<strong>Transformation</strong> <strong>Journey</strong>Business Process Management (BPM) ARIS – The BPM ToolMapping SCOR/APICS Planning Hierarchy inARIS<strong>Supply</strong> <strong>Chain</strong> <strong>Transformation</strong> Framework<strong>Systems</strong> <strong>Implementation</strong> FrameworkQuestions?© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 23 | 4/23/13
What is ARIS? A BPM Tool– To design <strong>and</strong> manage business process modeling, providing output to help manage items suchas user roles, organizational units <strong>and</strong> system interfaces. We are currently using three ARISmodules:– ARIS Designer – for developers of models– ARIS Publisher – allows viewing of models by anyone– ARIS Architect – content <strong>and</strong> technical support activities– Process content can be synchronized between ARIS <strong>and</strong> Solution Manager A Database: Business Modeling Content Repository– Allows for sharing, leveraging, <strong>and</strong> comparing models– Documentation, training, role descriptions <strong>and</strong> more– Provides the benefits of a relational database, used for processes A Framework / Modeling Methodology●Uses a methodology focused on business processes <strong>and</strong> the events that trigger them A Strategic Platform– A combination of tool, database <strong>and</strong> integration with other tools make this a superior tool formodeling business processes, especially for large, integrated systems, such as SAP© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 24 | 4/23/13
ARIS: ARchitecture of Integrated Information <strong>Systems</strong>A business process can be described from fivedifferent points of view, which address relevantaspects of the process:– Organization:Who is involved? (people, organizations, companies)– <strong>Systems</strong>/Functions:What functions/systems are involved?– Data:What data or information is needed or produced?– Output/Deliverable:What are the deliverables (products)?– Processes/Control:How do the views fit together? Who is doing whatusing which data to produce which deliverables <strong>and</strong> inwhat logical sequence are the functions carried out?Excerpted from High Performance Through Process Excellence, Mathias Kirchmer, (2009)© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 25 | 4/23/13
AgendaDuPont – Basic Facts<strong>Transformation</strong> <strong>Journey</strong>Business Process Management (BPM) ARIS – The BPM ToolMapping SCOR/APICS Planning Hierarchy inARIS<strong>Supply</strong> <strong>Chain</strong> <strong>Transformation</strong> Framework<strong>Systems</strong> <strong>Implementation</strong> FrameworkQuestions?© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 26 | 4/23/13
<strong>Supply</strong> Planning <strong>and</strong> Control Hierarchy (APICSFramework) Mapped to SCORExecutive S&OP ReviewPriority ManagementTechniquesCapacity ManagementTechniquesBusiness PlanP1<strong>Supply</strong> Planning& <strong>Supply</strong> ReviewFinancial PlanDem<strong>and</strong> PlanProduct PlanProductionPlan[ or supply plan]ResourceRequirementsPlanning (RRP)DistributionResourcePlanning (DRP)P4MasterProductionSchedule (MPS)P3Rough CutCapacity Planning(RCCP)SCOR Plan ElementsMappedto APICS FrameworkPlanningExecution© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 27 | 4/23/13MaterialRequirementsPlanning (MRP)ProductionActivity Control(PAC)[shop floor control]P2CapacityRequirementsPlanning (CRP)Input/OutputControlOperationSequencing
SCOR Process Levels – ARIS RepresentationLevel 1Level 2Level 3DuPont Developed Levels 4, 5 <strong>and</strong> 6 for Workflow <strong>and</strong> Transactions© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 30 | 4/23/13
SCOR Process Levels© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 31 | 4/23/13
Enterprise Process Architecture in ARIS© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 32 | 4/23/13
ARIS Modeling Approach© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 33 | 4/23/13
AgendaDuPont – Basic Facts<strong>Transformation</strong> <strong>Journey</strong>Business Process Management (BPM) ARIS – The BPM ToolMapping SCOR/APICS Planning Hierarchy in ARIS<strong>Supply</strong> <strong>Chain</strong> <strong>Transformation</strong> Framework<strong>Systems</strong> <strong>Implementation</strong> FrameworkQuestions?© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 34 | 4/23/13
AgendaDuPont – Basic Facts<strong>Transformation</strong> <strong>Journey</strong>Business Process Management (BPM) ARIS – The BPM ToolMapping SCOR/APICS Planning Hierarchy in ARIS<strong>Supply</strong> <strong>Chain</strong> <strong>Transformation</strong> Framework<strong>Systems</strong> <strong>Implementation</strong> FrameworkQuestions?© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 36 | 4/23/13
<strong>Supply</strong> <strong>Chain</strong> Science Applicable toPLAN SUPPLY CHAIN (P1) & PLAN MAKE (P3) Plan <strong>Supply</strong> <strong>Chain</strong> (P1)– Linear Programming (LP), Mixed Integer LinearProgramming (MILP) <strong>and</strong> Statistical algorithms●● Plan Make (P3)Dem<strong>and</strong> Planningcapacity balancing across multiple facilities <strong>and</strong> lot sizing– LP/MILP, Lagrangean Relaxation, etc.●optimizing blending, product mix, production rate <strong>and</strong> creatingcapacity feasible master production schedule© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 41 | 4/23/13
<strong>Supply</strong> <strong>Chain</strong> Science Applicable toPLAN SOURCE (P2) & PLAN DELIVER (P4) Plan Source (P2)– Linear Programming (LP), Mixed Integer LinearProgramming (MILP)●How much raw material is needed <strong>and</strong> when Plan Deliver (P4)– Network algorithms, Linear Programming (LP),Mixed Integer Linear Programming (MILP)●How much to ship●When to ship●What is the shipping mode●Load building© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 42 | 4/23/13
<strong>Supply</strong> <strong>Chain</strong> Science Applicable to MAKE Make– Meta-Heuristics, e.g. Genetic Algorithm, SimulatedAnnealing, Tabu Search etc.●campaign sequencing to balance transition cost, inventory cost <strong>and</strong>late penalty to reduce total cost– Network algorithms●just-in-time scheduling <strong>and</strong> synchronizing feeding <strong>and</strong> consumingsteps to reduce in-process inventory© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 43 | 4/23/13
Plan Process Relationships P1 – Plan <strong>Supply</strong> <strong>Chain</strong> (planning at the aggregated family●●level)An approach for developing an integrated Production-Distribution-Inventoryplan at aggregate product family level in monthly bucket (typically 24months) to assess the business <strong>and</strong> supply chain strategic alignment whileconsidering the impact of the following on the business financials:●Global Sourcing●International trade (e.g., exchange rate, duty drawbacks)●Finance (e.g., cost, taxes, transfer pricing, interest rates)●Sales & Marketing Policies (e.g., customer <strong>and</strong> product segmentation)●Distribution (e.g., lanes, modes, volume discounts)●Operations (e.g., inventory targets)P3 – Plan Make (Planning at the SKU level – an SKU belongs to a ProductFamily – Denoted by APICS as Master Production Scheduling or MPS)An approach for developing an integrated Production-Distribution-InventoryPlan at the SKU level which conforms to the boundaries set forth by the planestablished in the P1 Process. It also considers the impact of similar factorslisted above in the P1 process albeit at a more detailed level in weekly buckets(typically)At the MPS level, it is recommended to develop an integrated P2, P3 <strong>and</strong> P4processes <strong>and</strong> plan simultaneously using optimization models <strong>and</strong> an APS tool– strongly recommended best practice© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 44 | 4/23/13
Role of Process Reference Model Adoption of Reference Model is Important A Key Enabler for Process St<strong>and</strong>ardization We started with SCOR V9.0 <strong>and</strong> migrated to V.10 We Cannot Migrate to SCOR V11.0 Due to DrasticChanges in Enable ProcessesRIGOROUS VALIDATION SHOULD BEEXERCISED BEFORE MAKING CHANGES TOPROCESS REFERENCE MODEL© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 46 | 4/23/13
© 2013 DuPont. ALL RIGHTS RESERVED. | < DuPont_BPM > | Slide 47 | 4/23/13Thank You!
Change language