Extreme Design Reengeneering Deployment

Dallas, TX
January 11, 2005

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Methodologles Methodologles
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Copyright 2005 - Advanced Integrated Technologies Group, Inc., All rights reserved.
Page: 2

Page: 3
Pro-Ex Program Transformation Map
Lean Sigma
Enterprise
Organizational
Integration &
Supply Chain
Optimization
Vision Supplier Management Infrastructure
Internal Network
Sourcing Benchmarking & Selection
Commodity Management
Traditional Cost Reductions
Supplier Rationalization
Enabling System Solutions
Supplier Certification
System Wide Bottom-line
impact
World Class
Results
Self managed teams
Preparing the Culture
Cross Training
Reward & Recognition
Incentives
Data Driven
Decision Making
SCOR Model Adoption
Year 1 Year 1
Year 2 Year 2
Year 3 Year 3
Year 4 Year 4
Product
Development
& Innovation Excellence
Program Infrastructure
Steering Teams
Roles & Responsibilities
Communication Plan
Tracking
Financial Verification
Skills Development
Leadership Training
Management Training
Lean Black Belt Training
Greenbelt Training
Kaizen Training
Personnel Training
Focus Factory Projects
Product Rationalization
Develop Lean Model Areas
Variation Reduction
Key Enabling Variation / Cost
reduction Projects
Value Stream Redesign
Site Certification
Results Acceleration
Kaizen Events
Directed Effort:
Policy Deployment
Foundational Changes
5S
Standard Work
Change Over Reduction
TPM
Small Parts Consumption
Based Replenishment
Division Certification
Self Sufficiency MBB
Business Process
Kaizen
Pull System Adoption
Internal
Supplier
S/C Business Process
Simplification
Kaizen as a way of life
Model Facilities
Streamlined Business Ops
Pull System Penetration 60%+
Cultural
Change
Product Development
Rationalization
Cross Functional
Teams
Integrated Product
Development Teams
(IPDT)
Skills Development:
DFSS Training
Innovation
Product Development Steering Team
Product Development Infrastructure
Standard Measurements
Definitions & Methods
Knowledge Capture
Streamline Design
process:
Waste analysis
Stage gates
Six Sigma
Organization
Enabling Systems
Integration
Business Process
Improvements
SCOR Card Measurement
Standardization
Supplier Joint Cost Red.
Integrated Supply
Chain
Supply Chain Definition
Supplier Quality & Delivery
Improvements
Logistics Optimization
Set Based Concurrent
Engineering
Long Term Process That Builds Upon Itself as Capability Increases
DCOR / CCOR Model Adoption
Page: 4
000k 000k 000k 000k Certification
(Design Chain Operations Reference)
(Customer Chain Operations Reference)
S00k S00k S00k S00k Certification
(Supply Chain Operations Reference)
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Corporate Communications Communications Strategy Communication Tools Development Awareness Program
Human Resources Reward, Recognition and Retention Staffing and CareerPlanning Training Coordination
Finance Project Savings Calculation Project Savings Tracking Business Plan Integration
nformation 8ystems Project Tracking Data Base Intranet and Web Support
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8ix 8igma 8teering Team Leadership Coaching and Support Project Selection and Prioritization Candidate Selection Guidelines Metrics Development
Corporate Communications Communications Strategy Communication Tools Development Awareness Program
Human Resources Reward, Recognition and Retention Staffing and CareerPlanning Training Coordination
Finance Project Savings Calculation Project Savings Tracking Business Plan Integration
nformation 8ystems Project Tracking Data Base Intranet and Web Support
CompanyABCPilot Program CompanyABCPilot Program
ProgramActivity Assumptions 4-Aug11-Aug
18-Aug
25-Aug
1-Sep8-Sep15-Sep
22-Sep
29-Sep
6-Oct13-Oct
20-Oct
27-Oct
3-Nov10-Nov
17-Nov
24- Nov
1-Dec8-Dec15-Dec
22-Dec
29-Dec
5-Jan12-Jan
19-Jan
26-Jan
2-Feb9-Feb16-Feb
23-Feb
2-Mar
DiagnosticAssessment ##
ProgramManagement Support ## ## ## ## ## ## ## ## ## ##
Executive Training 1.5days ## Project &Candidate Selection
Champion/MngrTraining 3 days ## 1 week on-site support BlackBelt - Wave 1 5 one-weektraining sessions 1 weekon-site support Session 1 pluson-siteandremote project ## 1week on-site support Session 2 support; 120hourson-sitesupport ## 1 week on-site support Session 3 guaranteed ## 1 weekon-site support Session 4 ## Session 5 ##
Green Belt - Wave1 2-2-1trainingformat over five Session 1 weekspluson-site andremote ## 2 days tr aining; 2 days on-site support Session 2 project support; 40hourson-site ## Session 3 support guaranteed ## 1 day training; 1 dayon-site support
Green Belt - Wave2 2-2-1trainingformat over five Session 1 weekspluson-site andremote ## 2 days training; 2 days on-sitesupport Session 2 project support; 40hourson-site ## Session 3 support guaranteed ## 1 daytraining; 1dayon-site support
CompanyABCPilot Program CompanyABCPilot Program
ProgramActivity Assumptions 4-Aug11-Aug
18-Aug
25-Aug
1-Sep8-Sep15-Sep
22-Sep
29-Sep
6-Oct13-Oct
20-Oct
27-Oct
3-Nov10-Nov
17-Nov
24- Nov
1-Dec8-Dec15-Dec
22-Dec
29-Dec
5-Jan12-Jan
19-Jan
26-Jan
2-Feb9-Feb16-Feb
23-Feb
2-Mar
DiagnosticAssessment ##
ProgramManagement Support ## ## ## ## ## ## ## ## ## ##
Executive Training 1.5days ## Project &Candidate Selection
Champion/MngrTraining 3 days ## 1 week on-site support BlackBelt - Wave 1 5 one-weektraining sessions 1 weekon-site support Session 1 pluson-siteandremote project ## 1week on-site support Session 2 support; 120hourson-sitesupport ## 1 week on-site support Session 3 guaranteed ## 1 weekon-site support Session 4 ## Session 5 ##
Green Belt - Wave1 2-2-1trainingformat over five Session 1 weekspluson-site andremote ## 2 days tr aining; 2 days on-site support Session 2 project support; 40hourson-site ## Session 3 support guaranteed ## 1 day training; 1 dayon-site support
Green Belt - Wave2 2-2-1trainingformat over five Session 1 weekspluson-site andremote ## 2 days training; 2 days on-sitesupport Session 2 project support; 40hourson-site ## Session 3 support guaranteed ## 1 daytraining; 1dayon-site support
Program Management
& Leadership Development
International Program
Infrastructure Development
Skills Development
& Project Support
Program Training Deployment Model
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Black Belt Certif ication Program Applicat ion 8pecialization Tracts
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Universal Application
Product Delivery Excellence
Transactional
Design for 8ix8igma {DF88}*
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Design for 8ix8igma {DF88}*
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Project Portfo||o workshops
Execution
WMS
APS
ERP
TMS
Planning Planning
Execution
Core Functions
CRM
Execution
WMS WMS
APS APS
ERP ERP
TMS TMS
Planning Planning
Execution
Core Functions
CRM CRM
Execution
WMS
APS
ERP
TMS
Planning Planning
Execution
Core Functions
CRM
Execution
WMS WMS
APS APS
ERP ERP
TMS TMS
Planning Planning
Execution
Core Functions
CRM CRM
Enabling Better Business
The AT Group uses a very methodical
structured approach to
achieve Lean flow .
. it is the
only way to achieve
breakthrough improvementl
Diagnostic Assessment Diagnostic Assessment Diagnostic Assessment Diagnostic Assessment
O
Define Product FamiIies Define Product FamiIies Define Product FamiIies Define Product FamiIies
O
AnaIyze Product Activity AnaIyze Product Activity AnaIyze Product Activity AnaIyze Product Activity
O
Create CeII Vision Create CeII Vision Create CeII Vision Create CeII Vision
O
AnaIyze Operator Activity AnaIyze Operator Activity AnaIyze Operator Activity AnaIyze Operator Activity
O
Reduce Set Reduce Set Reduce Set Reduce Set - -- - up / Change up / Change up / Change up / Change - -- - Over Over Over Over
O
Define MateriaI Movement Define MateriaI Movement Define MateriaI Movement Define MateriaI Movement
O
DeveIop Standard Work DeveIop Standard Work DeveIop Standard Work DeveIop Standard Work
O
Measure CeII Performance Measure CeII Performance Measure CeII Performance Measure CeII Performance
O
Continuous Improvement Continuous Improvement Continuous Improvement Continuous Improvement
G
structured approach to
achieve Lean flow .
. it is the
only way to achieve
breakthrough improvementl
Diagnostic Assessment Diagnostic Assessment Diagnostic Assessment Diagnostic Assessment
O
Define Product FamiIies Define Product FamiIies Define Product FamiIies Define Product FamiIies
O
AnaIyze Product Activity AnaIyze Product Activity AnaIyze Product Activity AnaIyze Product Activity
O
Create CeII Vision Create CeII Vision Create CeII Vision Create CeII Vision
O
AnaIyze Operator Activity AnaIyze Operator Activity AnaIyze Operator Activity AnaIyze Operator Activity
O
Reduce Set Reduce Set Reduce Set Reduce Set - -- - up / Change up / Change up / Change up / Change - -- - Over Over Over Over
O
Define MateriaI Movement Define MateriaI Movement Define MateriaI Movement Define MateriaI Movement
O
DeveIop Standard Work DeveIop Standard Work DeveIop Standard Work DeveIop Standard Work
O
Measure CeII Performance Measure CeII Performance Measure CeII Performance Measure CeII Performance
O
Continuous Improvement Continuous Improvement Continuous Improvement Continuous Improvement
G
Eliminating Waste, Improving Flow
Control
Plan
Sust ained Results
TMAP
PMAP
SIPOC TMAP
FMEA NEM /
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ICC
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Y=f( X) Project Strategy
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Risk
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Continuous
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Data Int egrity
TMAP
Project St rat egy
Process
Boundaries
Project
Charter
TMAP
Project St rat egy
TMAP
Project St rat egy
Project St rat egy
Critical Xs
Actions
To Mi tigate
Ri sk
Control
Plan
Sust ained Results
TMAP
PMAP
SIPOC TMAP
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DOE /
Regression
Y=f(X)
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Assessment
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Attribute
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TMAP
Project St rat egy
Process
Boundaries
Project
Charter
TMAP
Project St rat egy
TMAP
Project St rat egy
Project St rat egy
Critical Xs
Actions
To Mi tigate
Ri sk
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SIPOC TMAP
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ICC
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Regression
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Project St rat egy
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Critical Xs
Actions
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Ri sk
Eliminating Defects and Variability
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leaa leaa leaa leaa Certification
Design-for-Six Sigma
Transactional Six Sigma
Lean Design
Lean Transactional
Lean Production
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Broad Business Process Improvement
Capabilities Drive Business Performance
Page: 5
Summary of Discipline Benefits
- -- - - -- -
Optimization of Product
Performance
- -- -
- -- -
- -- -
DFSS
- -- -
- -- -
- -- -
- -- -
6
- -- - - -- -
Strategic Alignment &
Opportunity Identification
- -- - - -- - - -- -
Effective Use of Cross
Functional Teams
- -- - - -- -
Metrics, Benchmarks, and
Best Practices
- -- - - -- - - -- -
Culture Change
- -- - - -- - - -- -
Create a Competitive
Advantage Through Value
Chain Improvement
- -- -
Eliminate Defects and
Variability
- -- - - -- -
Eliminating Waste and
Improve Workflow
Pro-Ex Lean BPM
BPM Frameworks like 8COR, DCOR and CCOR are focusing
Lean and 8ix 8igma on complete Business Transformationl
Page: 6
Strategic Linkage of Projects
Strategic Goals are Linked to Projects Via Specific, Focused and
Measurable Problem Definitions in a Project Contract
Strategic Objectives Strategic Objectives
Problem Definition
Metrics
Scope
Benefits
Agreement
Problem Definition
Metrics
Scope
Benefits
Agreement
Project Contract
T r a n s f o r m a t i o n M e t h o d s
Confirmation
(Design Chain Operations Reference)
(Customer Chain Operations Reference)
S00k S00k S00k S00k Certification
(Supply Chain Operations Reference)
0|agaost|c Assessmeats
SuPPlY-0AIN 0oaac||
Project Portfo||o workshops
structured approach t o
achieve Lean flow .
. it is t he
only way to achieve
br eakthrough improvementl
Di agnosti c Assessment Di agnosti c Assessment Di agnosti c Assessment Di agnosti c Assessment O
Defi ne Product FamiI ies Defi ne Product FamiI ies Defi ne Product FamiI ies Defi ne Product FamiI ies O
AnaIyze Product Act ivi ty AnaIyze Product Act ivi ty AnaIyze Product Act ivi ty AnaIyze Product Act ivi ty O
Creat e CeI I Vi si on Creat e CeI I Vi si on Creat e CeI I Vi si on Creat e CeI I Vi si on O
AnaIy ze Operator Acti vit y AnaIy ze Operator Acti vit y AnaIy ze Operator Acti vit y AnaIy ze Operator Acti vit y O
Reduce Set Reduce Set Reduce Set Reduce Set - -- - up / Change up / Change up / Change up / Change - -- - Over Over Over Over O
Defi ne Materi aI Movement Defi ne Materi aI Movement Defi ne Materi aI Movement Defi ne Materi aI Movement O
DeveI op St andard Work DeveI op St andard Work DeveI op St andard Work DeveI op St andard Work O
Measure CeI I Performance Measure CeI I Performance Measure CeI I Performance Measure CeI I Performance O
Cont inuous Improvement Cont inuous Improvement Cont inuous Improvement Cont inuous Improvement G
structured approach t o
achieve Lean flow .
. it is t he
only way to achieve
br eakthrough improvementl
Di agnosti c Assessment Di agnosti c Assessment Di agnosti c Assessment Di agnosti c Assessment O
Defi ne Product FamiI ies Defi ne Product FamiI ies Defi ne Product FamiI ies Defi ne Product FamiI ies O
AnaIyze Product Act ivi ty AnaIyze Product Act ivi ty AnaIyze Product Act ivi ty AnaIyze Product Act ivi ty O
Creat e CeI I Vi si on Creat e CeI I Vi si on Creat e CeI I Vi si on Creat e CeI I Vi si on O
AnaIy ze Operator Acti vit y AnaIy ze Operator Acti vit y AnaIy ze Operator Acti vit y AnaIy ze Operator Acti vit y O
Reduce Set Reduce Set Reduce Set Reduce Set - -- - up / Change up / Change up / Change up / Change - -- - Over Over Over Over O
Defi ne Materi aI Movement Defi ne Materi aI Movement Defi ne Materi aI Movement Defi ne Materi aI Movement O
DeveI op St andard Work DeveI op St andard Work DeveI op St andard Work DeveI op St andard Work O
Measure CeI I Performance Measure CeI I Performance Measure CeI I Performance Measure CeI I Performance O
Cont inuous Improvement Cont inuous Improvement Cont inuous Improvement Cont inuous Improvement G
Eliminating Waste, Improving Flow Eliminating Waste, Improving Flow
Contr ol
Pl an
Su stain ed Re sul ts
TMAP
PMAP
SIPOC TMAP
FMEA NEM /
TTest
NEM
Kappa /
I CC
DOE /
Regression
Y= f(X) Proj ect Strategy
Y=f(X)
Ris k Assessment
Baseli ne
-ys, x s
Pred icti ve Eq uatio n
Conti nu ous Data Analys is Attri bu te Data Anal ysis
MSE
Data In tegri ty
TMAP
Pr oje ct Strategy Proce ss Bou ndari es
Project Charter
TMAP
Pr oje ct Strategy
TMAP
Pr oje ct Strategy
Pr oje ct Strategy
Cri tical X s
Actions To Mitigate Risk
Contr ol
Pl an
Su stain ed Re sul ts
TMAP
PMAP
SIPOC TMAP
FMEA NEM /
TTest
NEM
Kappa /
I CC
DOE /
Regression
Y=f(X)
Ris k Assessment
Baseli ne
-ys, x s
MSE
Data In tegri ty
TMAP
Project Charter
TMAP
Pr oje ct Strategy
TMAP
Pr oje ct Strategy
Pr oje ct Strategy
Cri tical X s
PMAP
SIPOC TMAP
FMEA NEM /
TTest
NEM
Kappa /
I CC
DOE /
Regression
Y=f(X)
Ris k Assessment
Baseli ne
-ys, x s
MSE
Data In tegri ty
TMAP
Project Charter
TMAP
Pr oje ct Strategy
TMAP
Pr oje ct Strategy
Pr oje ct Strategy
Cri tical X s
Eliminating Defects and Variability Eliminating Defects and Variability
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leaa leaa leaa leaa Certification
Design-for-Six Sigma
Transactional Six Sigma
Lean Design
Lean Transactional
Lean Production
Execution
Execution
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Page: 7
Advantages & Benefits of Integration
Effective
Guidance
Alignment
Strategic
Faster
Results
Bigger
Results
Profit
Improvement
Rational
Project
Selection
Right
Problems
Self
Sustaining
Benefits
You'll See Benefits in Focus, Results, & Program Efficiency
Page: 8

BusIness Process Management {BPM) BusIness Process Management {BPM) BusIness Process Management {BPM) BusIness Process Management {BPM)
Frameworks In tne ? Frameworks In tne ? Frameworks In tne ? Frameworks In tne ?
Page: 9
What are BPM Frameworks?
BPM Framework a cross-industry reference model that defines and
standardizes the process definitions, metrics and best practices
related to a specific value chain for the purpose of value chain
reengineering
Supply Chain Operations Reference (SCOR)
Developed and endorsed by the Supply-Chain Council, a non-profit
consortium of 800+ member companies since 1996
Continually under development currently Release 6.1
Design Chain Operations Reference (DCOR)
Preliminary version of DCOR developed by Hewlett-Packard (HP) for
internal use; IP released to the Supply-Chain Council for development
Customer Chain Operations Reference (CCOR)
Preliminary version of CCOR developed by Hewlett-Packard (HP) for
internal use; IP released to the Supply-Chain Council for development
Page: 10
How do BPM Frameworks
compliment Lean and Six Sigma?
Standardized Value Chain Definition
Supply Chain = SCOR, Demand Chain = DCOR, Customer Chain = CCOR
Process definition, metrics, benchmarking and best practices
Project Selection Methodology
Alignment of project execution with Customer, Strategic and Operational needs
Project selection based on data, not brainstorming
Understanding of the interrelationships between projects
Creation of prioritized and time-phased Project Portfolios for all Value Chains
Focus of efforts and resources on the highest ROI opportunities across all Value
Chain areas
Linkage to Enabling Information Systems
Prioritization of IT Optimization Consistent with Process Optimization
Alignment of technology projects with process improvement activities
Comprehensive Financial Alignment
Project expectations tied to P&L and Balance Sheet impact
Development of discrete project contracts for every project opportunity
Page: 11
Desired Characteristics of
BPM Framework Deployment
Structured Methodology
need the deployment methodology formally defined and structured so
that it is repeatable and leverages the best available analytical tools
Training Based
need to be able to teach the deployment methodology to our clients so
they can do it themselves
Applied Approach
need to successfully apply the deployment methodology to a value
chain reengineering project concurrent with the training
Results Focused
need to select value chains with significant impact to the business and
prioritize the improvement opportunities with the greatest benefit
Example Example Example Example - -- - 8COR Deploymentl 8COR Deploymentl 8COR Deploymentl 8COR Deploymentl
Page: 12
EP
Enable Plan
ES
Enable Source
EM
Enable Make
ED
Enable Deliver
ER
Enable Return
P1
Plan Supply
Chain
P2
Plan Source
P3
Plan Make
P4
Plan Deliver
P5
Plan Return
S1 Source
Stocked Product
S2 Source Make-
To-Order Product
S3 Source
Engineer-to-
Order Product
M1
Make-to-Stock
M2
Make-to-Order
M3
Engineer-to-
Order
D1
Deliver Stocked
Product
D2
Deliver Make-to-
Order Product
D3
Deliver Engineer-
to-Order Product
D4
Deliver Retail
Product
R1
Return Defective
Product
SR2
Source Return
MRO Product
DR2
Deliver Return
MRO Product
R3
Return Excess
Product
EP.1
Manage Business
Rules for PLAN
Processes
ES.1
Manage Sourcing
Business Rules
EM.1
Manage
Production Rules
ED.1
Manage
Deliver Business
Rules
ER.1
Manage
Manage Business
Rules for Return
Processes
P1.1
Identify, Prioritize,
and Aggregate
Supply Chain
Requirements
P2.1
and Aggregate
Product
Requirements
P3.1
and Aggregate
Production
Requirements
P4.1
and Aggregate
Delivery
Requirements
P5.1
and Aggregate
Return
Requirements
S1.1
Schedule Product
Deliveries
S2.1
Schedule Product
Deliveries
S3.1
Identify Sources of
Supply
M1.1
Schedule
Production
Activities
M2.1
Schedule
Production
Activities
M3.1
Finalize
Engineering
D1.1
Process Inquiry &
Quote
D2.1
Process Inquiry &
Quote
D3.1
Obtain and
Respond to
RFP/RFQ
D4.1
Generate Stocking
Schedule
DR1.1
Authorize Return
SR2.1
Identify MRO
Product Condition
DR2.1
Authorize MRO
Product Return
DR3.1
Identify Excess
Inventory
EP.2
Manage
Performance of
Supply Chain
ES.2
Assess Supplier
Performance
EM.2
Manage
Production
Performance
ED.2
Assess Deliver
Performance
ER.2
Manage
Performance of
Return Processes
P1.2
Identify, Assess,
and Aggregate
Supply Chain
Resources
P2.2
Identify, Assess,
and Aggregate
Product
Resources
P3.2
Identify, Assess,
and Aggregate
Production
Resources
P4.2
Identify, Assess,
and Aggregate
Delivery
Resources
P5.2
Identify, Assess,
and Aggregate
Return Resources
S1.2
Receive Product
S2.2
Receive Product
S3.2
Select Final
Supplier(s) and
Negotiate
M1.2
Issue Product
M2.2
Issue Product
M3.2
Schedule
Production
Activities
D1.2
Receive, Enter, &
Validate Order
D2.2
Receive,
Configure, Enter
and Validate
Order
D3.2
Negotiate and
Receive Contract
D4.2
Receive Product
at the Store
DR1.2
Request Return
Replacement or
Credit
SR2.2
Disposition MRO
Product
DR2.2
Schedule MRO
Return Receipt
DR3.2
Request Return
Replacement or
Credit
EP.3
Manage PLAN
Data Collection
ES.3
Maintain Source
Data
EM.3
Manage Make
Information
ED.3
Manage
Deliver
Information
ER.3
Manage Return
Data Collection
P1.3
Balance Supply
Chain Resources
with Supply Chain
Requirements
P2.3
Balance Product
Resources with
Product
Requirements
P3.3
Balance
Production
Resources with
Production
P4.3
Balance Delivery
Resources with
Delivery
Requirements
P5.3
Balance Return
Resources with
Return
Requirements
S1.3
Verify Product
S2.3
Verify Product
S3.3
Schedule Product
Deliveries
M1.3
Produce and Test
M2.3
Produce and Test
M3.3
Issue Product
D1.3
Reserve Inventory
and Determine
Delivery Date
D2.3
Reserve
Resources and
Determine
Delivery Date
D3.3
Enter Order,
Commit
Resources and
Launch Program
D4.3
Pick Product from
Backroom
DR1.3
Schedule Product
Return
SR2.3
Request MRO
Return
Authorization
DR2.3
Receive MRO
Product - includes
Verify
DR3.3
Schedule Product
Shipment
EP.4
Manage
Integrated Supply
Chain Inventory
ES.4
Manage Product
Inventory
EM.4
Manage In-
Process Products
(WIP)
ED.4
Manage
Finished Product
Inventories
ER.4
Manage Return
Inventory
P1.4
Establish and
Communicate
Supply Chain
Plans
P2.4
Establish Sourcing
Plans
P3.4
Establish
Production Plans
P4.4
Establish Delivery
Plans
P5.4
Establish and
Communicate
Delivery Plans
S1.4
Transfer Product
S2.4
Transfer Product
S3.4
Receive Product
M1.4
Package
M2.4
Package
M3.4
Produce and Test
D1.4
Consolidate
Orders
D2.4
Consolidate
Orders
D3.4
Schedule
Installation
D4.4
Stock Shelf
DR1.4
Receive Defective
Product
SR2.4
Schedule MRO
Shipment
DR2.4
Transfer MRO
Product
DR3.4
Receive Product
Return
EP.5
Manage
Integrated Supply
Chain Capital
Assets
ES.5
Manage Capital
Assets
EM.5
Manage
Equipment and
Facilities
ED.5
Manage
Deliver Capital
Assets
ER.5
Manage Return
Capital Assets
S1.5
Authorize Supplier
Payment
S2.5
Authorize Supplier
Payment
S3.5
Verify Product
M1.5
Stage Product
M2.5
Stage Product
M3.5
Package
D1.5
Plan and Build
Loads
D2.5
Plan and Build
Loads
D3.5
Plan and Build
Loads and
Shipments
D4.5
Fill Shopping Cart
SR1.5
Verify Defective
Product
SR2.5
Return MRO
Product
SR3.5
Approve Request
Authorization
EP.6
Manage
Integrated Supply
Chain
Transportation
ES.6
Manage Incoming
Product
EM.6
Manage
Transportation
ED.6
Manage
Transportation
ER.6
Manage Return
Transportation
S3.6
Transfer Product
M1.6
Release Product
to Deliver
M2.6
Release Product
to Deliver
M3.6
Stage Product
D1.6
Route Shipments
D2.6
Route Shipments
D3.6
Route Shipments,
Select Carrier
D4.6
Checkout
SR1.6
Disposition
Defective Product
SR3.6
Receive Excess
Product Return
EP.7
Manage Planning
Configuration
ES.7
Manage Supplier
Network
EM.7
Manage
Production
Network
ED.7
Manage
Product
Life Cycle
ER.7
Manage Return
Network
Configuration
S3.7
Authorize Supplier
Payment
M3.7
Release Product
to Deliver
D1.7
Select Carriers
and Rate
Shipments
D2.7
Select Carriers
and Rate
Shipments
D3.7
Pick Staged
Product
D4.7
Deliver and/or
Install Product
SR1.7
Authorize
Replacement or
Credit
SR3.7
Verify Excess
Product
EP.8
Manage PLAN
Regulatory
Requirements and
Compliance
ES.8
Manage
Import/Export
Requirements
EM.8
Manage
Production
Regulatory
Compliance
ED.8
Manage
Import/Export
Requirements
ER.8
Manage Return
Regulatory
Requirements and
Compliance
D1.8
Receive Product
at Warehouse
D2.8
Pick Staged
Product
D3.8
Load Vehicle,
Generate Ship
Docs & Ship
Product
SR3.8
Recover &
Disposition
Excess Product
EP.9
Align Supply
Chain Unit Plan
with Financial Plan
ES.9
Manage Supplier
Agreements
D1.9
Pick Product
D2.9
Load Vehicle,
Generate Ship
Docs & Ship
Product
D3.9
Receive and
Verify Product at
Customer Site
SR3.9
Authorize
Replacement or
Credit
D1.10
Load Vehicle,
Generate Ship
Docs, Verify Credit
& Ship Product
D2.10
Receive and
Verify Product at
Customer Site
D3.10
Test and Install
Product
D1.11
Receive & Verify
Product at
Customer Site
D2.11
Test and Install
Product
D3.11
Invoice
D1.12
Install Product
D2.12
Invoice
D1.13
Invoice
D E L I V E R S O U R C E M A K E P L A N E N A B L E R E T U R N
SCOR 6.1 Quick Reference
Enable, Plan, Source, Make, Deliver and Return
ENABLE PLAN 8OURCE MAKE DELVER RETURN
Page: 13
SCOR Level 3 Process Element
Process Element: Receive Product at Warehouse Process Element Number: D1.8
Process Element Definition
The activities such as receiving product, verifying, recording product receipt, determining put-away location, putting
away and recording location that a company performs at its own warehouses. May include quality inspection.
Performance Attributes Metric
Reliability
Incoming Material Quality
Responsiveness
Dock To Stock Cycle Time
Flexibility
Upside Delivery Flexibility
Downside Delivery Flexibility
Cost
Distribution Costs
Incoming Material Costs
Product Acquisition Costs
Assets
Finished Goods Inventory Days of Supply
Inventory Obsolescence as a % of Total Inventory
End-of-Life Inventory
Best Practices Features
Automatic Identification Bar Coding & Radio Frequency Communications
Download P.O. & Advanced Ship Notices for
Automated Receiving and Put away
Integration with Procurement Systems & Electronic Commerce
with Vendors
Dynamic location assignment including lot
control, zoned put away, quality assurance,
ABC frequency of access
Real time inventory control, stock locator, and rules based put
away logic
SCOR Provides Process Definition, Metrics, and Best Practices
at the Process Element Level
Page: 14
8COR
mplementation
(Baseline, Benchmark, Analyze,
Identify & Validate)
SCOR Integration with the .
Plan
Return Deliver Make
8upply 8upply 8upply 8upply- -- -Chain Operations Reference {8COR} Model Chain Operations Reference {8COR} Model Chain Operations Reference {8COR} Model Chain Operations Reference {8COR} Model
8ource
8COR Pro]ect
Portfolio
Lean/8ix 8igma
Lean/8ix 8igma
Projects focused on minimizing Waste, Variability and Defects
across the Supply Chain value stream
Transactional
8ix 8igma
Transactional 8ix 8igma
Projects focused on maximizing Transactional Efficiency,
Timeliness and Yield to optimize information flow across the Supply
Chain value stream
Methodology & Resource Requirements
Prioritization &
mplementation
Planning
SCOR Portfolio
Implementation Plan
Standardized
Process Definition
Metrics and
Benchmarking
Lean / Six Sigma
Analytics
Industry Best
Practices
Page: 15
SCOR Deployment Roadmap
Rigorous - Flexible
Phase 1
Phase 2
Phase 3
Phase 0
8upply Chain
Planning & Organizing
8upply Chain
Performance Baseline
Material Flow
Opportunity Analysis
Work & nformation Flow
Phase 0 is the education and construction of a SCOR
deployment with the Leadership Team. Initial definitions of
unique Supply Chains are addressed as well as the selection of
the Design Team{s) for Phase 1-3 deployment work.
Phase 1 is to build a SCOR performance baseline for the high
priority Supply Chains {SCORcards), identify performance
gaps to Strategic and Competitive requirements, and select
the Supply Chain{s) to be improved.
Phase 2 is the "As-Is" and "To-Be" Material Flow designs. Use
of Geographic Mapping, Enterprise mapping, Value Stream
Mapping, Cause and Effect Tools, NEM's, and SCOR Best
Practice tools are used to diagnose material flow
improvement opportunities.
Phase 3 is the "As-Is" and "To-Be" Work and Information Flow
designs. Use of Swim Lane and Transactional Process
Mapping, Process Cycle Efficiency, NEM's, and SCOR Best
Practice tools are used to identify work & information flow
improvement opportunities. The financially validated Project
Portfolio is the primary deliverable of Phase 3.
Total
Enterprise
Business
Unit A
Business
Unit B
Supply Chain Definit ion Mat rix
USRe ta il Ma rk e ts US Dis tr ib u to r M ar k et s US Dire c t- to - Co n su me r Ma rk e ts US OEM- Ke y Ac co u n ts US Gov e rn me n t US Ho me De li ve r y In te rn a ti on a l Fo od Pro d uc t s X X X X X Technology Product s X X X
Durable Product s X X
Ge ogra phy - Cust ome ror Ma r ke t Cha nne l
Product
Suppl y Cha in De fi ni ti onMa tr ix
Supply Chain Def ini tion Mat ri x
USRetail Markets USDistr ibutor M ar ket s US Direct- to- Consumer Markets US OEM- Key Accounts US Government USHome Deli ver y Internati onal Food Product s X X X X X Technology Product s X X X
Product
Pe rfor man ceA ttri bute or Ca tego ry Lev el1 Per form anc eM etri cs Ac tua l Pa rity Med iano f stati stica l sam ple Ad van tag e M idpo into f p arity and supe rior S upe rior 90th Per cent ile ofP opu latio n Pa rity Gap Parit y-A ctua l Req uire men ts Ga p O ppo rtun ity De liver yPe rfor man ce 10 .0% 74. 7% 85.0 % 9 5.0 % -6 4.7 % - 64.7 % Fil lRat es Su bstit uteL ine Item Fillr ate here 85 .0% 92. 0% 95.5 % 9 9.0 % - 7.0% -7.0 % Pe rfec tOrd erF ulfill men t 1. 0% 74. 0% 81.0 % 8 8.0 % -7 3.0 % - 73.0 % Su pply Ch ain Re spo nsiv ene ss Or der Fulfi llmen tLe adT ime 8d ays 10d ays 6 .5d ays 3 da ys 2 da ys - 5da ys Su pply Cha inR esp onse Tim e 110 day s 60d ays 4 5d ays 2 9da ys -5 0da ys -8 1d ays Pro duc tion Flex ibilit y 58 day s 42d ays 2 6d ays 10 .8d ays -1 6da ys -47 .2d ay s Co sto fGo ods 8 7% 69 % 61 % 53% - 18% -26% To talS upp lyCh ain Cos t 14 .0% 9.5 % 6.7 % 3.9 % - 4.5% -7.3 % SG &A Cost 7 % 17 % 12 % 7% 1 0.1% 5.1 % Wa rran ty/ Retu rns Proc ess ingC ost s 0. 7% 1.5 % 1.0 % 0.5 % 0 .8% 0.3 % $ 0 Ca sh-t o-Ca shC ycle Tim e* 1 97 97 .9 63 .8 29. 7 - 99. 1 -99 .1 Inv ento ryD ays ofS upp ly* 9 1 7 4 48 23 - 17. 4 -17 .4 As setT urn s* 1 .5 2 .5 4. 7 7.0 1.0 1.0 Gr oss Marg in 1 3% 31 % 39 % 47% - 18% Op erat ingI ncom e 6 % 14 % 19 % 23% -8% Ne tInc ome - - - - - - - Eff ecti ven ess ofR etu rn Re turn onA sse ts - - - - - - - $4 5,3 62, 946
$87 7,50 0 Ena ble s Inv ent ory and Del iver y R elia bil ity $3 2,8 50, 000 $1 1,6 35, 446 ShareholderInternalExternalSu pply Ch ainD eli very Re liab ility Su pply Ch ainF lex ibili ty Su pply Ch ainC os t Su pply Ch ainA sse t Ma nag eme ntE ffic ienc y Pro fita bilit y
Bus ines s Unit SCORca rd
Product
Product
Pe rfor man ce Attr ibut eor Ca teg ory Lev el1 Pe rfor man ce Met rics A ctu al P ari ty Me dian of st atist ical s amp le Adv ant age Mid poin tof pa ritya nd su per ior Su per ior 9 0thP erc entil e o fPo pula tion Par ityG ap P arity -A ctua lR equ irem en ts Gap O ppo rtun ity D elive ryP erfo rma nce 1 0.0 % 7 4.7 % 8 5.0% 9 5.0% -6 4.7% -6 4.7 % F illRa tes S ubst itute Line Ite mFi llrate he re 8 5.0 % 9 2.0 % 9 5.5% 9 9.0% -7 .0% - 7.0% P erfec tOr der Fulf illme nt 1.0% 7 4.0 % 8 1.0% 8 8.0% -7 3.0% -7 3.0 % Su ppl yCh ain Re spo nsi ven ess O rder Ful fillme ntL ead Tim e 8 da ys 10 da ys 6.5 da ys 3 day s 2 day s -5 da ys S uppl yCh ain Res pons eT ime 11 0d ays 60 da ys 45 da ys 29 da ys -50 da ys -8 1da ys P rodu ction Fle xibil ity 58 da ys 42 da ys 26 da ys 10. 8da ys -16 da ys -47 .2d ays C osto fGo ods 87% 69% 6 1% 5 3% -1 8% - 26% T otal Sup plyC hain Co st 1 4.0 % 9 .5% 6 .7% 3 .9% -4 .5% - 7.3% S G&A Cos t 7% 17% 1 2% 7% 10 .1% 5 .1% W arra nty /Re turn sPro ces sing Cos ts 0.7% 1 .5% 1 .0% 0 .5% 0 .8% 0 .3% $ 0 C ash- to-C ash Cyc leT ime* 197 97.9 63.8 2 9.7 - 99.1 - 99. 1 In vent ory Day sof Sup ply* 91 74 48 23 - 17.4 - 17. 4 A sset Tur ns* 1.5 2.5 4.7 7.0 1.0 1.0 G ross Ma rgin 13% 31% 3 9% 4 7% -1 8% O pera ting Inco me 6% 14% 1 9% 2 3% - 8% N etIn com e - - - - - - - Ef fect iven ess of Retu rn R etur non Ass ets - - - - - - - $4 5,3 62,9 46
$ 87 7,50 0 Ena ble s Inv ent ory and Del iver y R elia bili ty $3 2,8 50,0 00 $1 1,6 35,4 46 ShareholderInternalExternalSu ppl yCh ain Del iver y Re liab ility Su ppl yCh ain Flex ibil ity Su ppl yCh ain Cos t Su ppl yCh ain Ass et Ma nag em ent Effi cien cy Pr ofita bili ty
8upply
Chain 1
8upply
Chain 2
8upply
Chain 3
8upply
Chain 4
Pe rform ance Attri bute or Ca tego ry Lev el1P erfo rmanc eMe trics Act ual Pari ty Media nof statis tical Ad vant age M idpoin tof p arity and S uperi or 90th Perce ntile ofP opula tion Par ityGa p Parit y-Ac tual Req uirem ents Gap O pport unity D elive ryPer forma nce 10.0 % 74.7 % 85.0% 9 5.0% -6 4.7% -6 4.7% F illRa tes S ubsti tuteL ineIte mFill rateh ere 85.0 % 92.0 % 95.5% 9 9.0% - 7.0% - 7.0% P erfec tOrde rFulf illmen t 1.0 % 74.0 % 81.0% 8 8.0% -7 3.0% -7 3.0% Su pply Chain O rder Fulfillm entL eadT ime 8d ays 10da ys 6 .5da ys 3 day s 2 days -5 day s S upply Chai nRes ponse Time 110d ays 60da ys 4 5da ys 2 9day s -50 day s -8 1da ys P roduc tionF lexibi lity 58d ays 42da ys 2 6da ys 10 .8da ys -16 day s -47 .2da ys C osto fGoo ds 87 % 69% 61% 53% - 18% -26% S G&A Cost 7% 17% 12% 7% 1 0.1% 5.1% W arra nty/R eturn sPro cessin gCos ts 0.7 % 1.5% 1.0% 0.5% 0 .8% 0.3% $0 C ash-t o-Cas hCyc leTim e* 19 7 97. 9 63.8 29.7 - 99.1 -99.1 In vento ryDa ysof Supp ly* 9 1 74 48 23 - 17.4 -17.4 A sset Turns * 1. 5 2.5 4.7 7.0 1.0 1.0 G ross Margi n 13 % 31% 39% 47% - 18% N etInc ome - - - - - - - Ef fectiv enes sofR etur nR eturn onA ssets - - - - - - - $4 5,362 ,946
$ 877, 500 Enab les Inve ntor yan d Deliv ery R eliab ility $3 2,850 ,000 $1 1,635 ,446 ShareholderInternalExternal Su pply Chain Deli very Re liabi lity Su pply Chain Flex ibilit y Su pply Chain Cos t Su pply Chain Ass et M anage men tEffic ienc y Pr ofitab ility
BusinessUnit SCO Rcard Pe rform ance Attrib uteo r Ca tegor y Leve l1Pe rform ance Metr ics Actua l P arity Me diano f sta tistica l Adva ntage Midp ointof parit yand Supe rior 90 thPer centil e of Popu lation P arityG ap Par ity-A ctual Req uirem ents Gap O pport unity De livery Perfo rman ce 1 0.0% 74 .7% 85. 0% 95.0 % - 64.7 % - 64.7 % Fi llRate s Su bstitu teLin eItem Fillra teher e 8 5.0% 92 .0% 95. 5% 99.0 % -7.0% -7.0% Pe rfect Order Fulfill ment 1.0% 74 .0% 81. 0% 88.0 % - 73.0 % - 73.0 % Su pplyC hain O rderF ulfillm entLe adTim e 8 day s 10 days 6.5 days 3da ys 2day s - 5da ys Su pply Chain Resp onseT ime 11 0da ys 60 days 45d ays 29da ys -5 0da ys -8 1da ys Pr oduct ionFl exibilit y 5 8day s 42 days 26d ays 1 0.8d ays -1 6da ys -4 7.2d ays Co stof Good s 87% 6 9% 61 % 53% -18% -26% SG &AC ost 7% 1 7% 12 % 7% 10.1% 5.1% W arran ty/Re turns Proce ssing Costs 0.7% 1 .5% 1. 0% 0.5 % 0.8% 0.3% $0 Ca sh-to -Cash Cycle Time * 197 9 7.9 63 .8 29. 7 -99. 1 -99.1 In ventor yDay sofS upply* 91 74 4 8 23 -17. 4 -17.4 As setT urns* 1.5 2.5 4 .7 7. 0 1.0 1.0 G rossM argin 13% 3 1% 39 % 47% -18% Ne tInco me - - - - - - - Eff ectiv enes sofR eturn Re turn onAss ets - - - - - - - $4 5,36 2,946
$ 877, 500 Enab les Inv ento ryan d Deliv ery R eliab ility $3 2,85 0,000 $1 1,63 5,446 ShareholderInternalExternal Su pplyC hain Deliv ery Re liabil ity Su pplyC hain Flex ibility Su pplyC hain Cost Su pplyC hain Asse t Ma nage ment Effic iency Pr ofitab ility
Business Unit SCORcard Pe rform ance Attrib uteo r Ca tegor y Leve l1Pe rform ance Metr ics Actua l P arity Me diano f sta tistica l Adva ntage Midp ointof parit yand Supe rior 90 thPer centil e of Popu lation P arityG ap Par ity-A ctual Req uirem ents Gap O pport unity De livery Perfo rman ce 1 0.0% 74 .7% 85. 0% 95.0 % - 64.7 % - 64.7 % Fi llRate s Su bstitu teLin eItem Fillra teher e 8 5.0% 92 .0% 95. 5% 99.0 % -7.0% -7.0% Pe rfect Order Fulfill ment 1.0% 74 .0% 81. 0% 88.0 % - 73.0 % - 73.0 % Su pplyC hain O rderF ulfillm entLe adTim e 8 day s 10 days 6.5 days 3da ys 2day s - 5da ys Su pply Chain Resp onseT ime 11 0da ys 60 days 45d ays 29da ys -5 0da ys -8 1da ys Pr oduct ionFl exibilit y 5 8day s 42 days 26d ays 1 0.8d ays -1 6da ys -4 7.2d ays Co stof Good s 87% 6 9% 61 % 53% -18% -26% SG &AC ost 7% 1 7% 12 % 7% 10.1% 5.1% W arran ty/Re turns Proce ssing Costs 0.7% 1 .5% 1. 0% 0.5 % 0.8% 0.3% $0 Ca sh-to -Cash Cycle Time * 197 9 7.9 63 .8 29. 7 -99. 1 -99.1 In ventor yDay sofS upply* 91 74 4 8 23 -17. 4 -17.4 As setT urns* 1.5 2.5 4 .7 7. 0 1.0 1.0 G rossM argin 13% 3 1% 39 % 47% -18% Ne tInco me - - - - - - - Eff ectiv enes sofR eturn Re turn onAss ets - - - - - - - $4 5,36 2,946
BusinessUnit SCO Rcard
Supply Chain DefinitionMatrix
U S R eta il Mark et s U S Di str ibu to r Ma rke ts US D ir ec t-to - C o ns umer Mark et s U S OE M - Ke y A cc ou nt s U S G ov er nmen t U S Ho me De liv ery In te rn ati on al F oo d P ro du ct s X X X X X Te ch no lo gy P ro du ct s X X X Du ra ble P ro du ct s X X
Ge o gr ap hy - Cu st ome ro rMa rk et Ch a nn el
Product
S up pl yC h ai n D e fin iti on Mat rix
Supply C hain Definition Matrix
U S R eta il Mark et s U S Di str ibu to r Ma rke ts US D ir ec t-to - C o ns umer Mark et s U S OE M - Ke y A cc ou nt s U S G ov er nmen t U S Ho me D e liv ery In te rn ati on al F oo d P ro du ct s X X X X X Te ch no lo gy P ro du ct s X X X Du ra ble P ro du ct s X X
Product
US R et ai l Mar ke ts U S D ist rib ut or Ma rk et s U S D ire ct- to- Co n su me r Ma rke ts US O E M-K ey Ac co un ts US Go ve rn men t U S Ho me D e live ry In te rn ati on al F oo d Pro d uc ts X X X X X Te c hn olo gy Pro d uc ts X X X Du ra bl e Pro d uc ts X X
G eo g rap h y- C us to mer or Mar ke tC h an ne l
Product
S up p ly Ch ai n D e fin iti on Mat rix
Product
Product
Product
Product
Product
Unique Supply Chains
8teering
Team
Design
Team{s}
Phase 4
Pro]ect Portfolio
Prioritization and
mplementation
Planning {Optional}
Project Description
Gross
Change Cost
Net
Return
Gross
Change Cost
Net
Return
Gross
Change Cost
Net
Return
3 Yr
Cumm.
Leverage System Implementation
1.1 Pricing Model $232 $64 $168 $1,392 $1,392 $1,856 $1,856 $3,416
1.2 Tactical Customer Business Rules $56 $32 $24 $335 $335 $446 $446 $804
1.3 Cores & Warranty Returns Process $58 $339 -$281 $350 $350 $467 $467 $537
1.4 Sales Order / Deliver Process $0 $324 -$324 $6,000 $6,000 $8,000 $8,000 $13,676
1.5 Tactical Supplier Business Rules $1,255 $32 $1,223 $1,448 $1,448 $1,641 $1,641 $4,312
2.1 Integrated Planning and Forecasting $0 $194 -$194 $0 $0 $0 $0 -$194
4.1 Sell Processes $0 $128 -$128 $0 $0 $0 $0 $0 $0 -$128
Subtotal $1,601 $1,113 $488 $9,525 $0 $9,525 $12,410 $0 $12,410 $22,423
Improvement Initiatives - Recommended
3 Align Org. to Operational Excellence $1,083 $112 $971 $6,495 $6,495 $8,660 $8,660 $16,126
5 Strategic Supply Management $171 $96 $75 $1,028 $0 $1,028 $1,371 $0 $1,371 $2,475
Subtotal $1,254 $208 $1,046 $7,523 $0 $7,523 $10,031 $0 $10,031 $18,600
PMO Phase "A" SCM/CRM Design $1,006 -$1,006 -$1,006
Program Office - PTEK $0 $0 $0 $0
Total Incremental to Plan $2,855 $2,327 $528 $17,048 $0 $17,048 $22,441 $0 $22,441 $40,017
Improvement Initiatives Demand/Inventory
2.2 Sales Planning and Forecasting $0 $576 -$576 $2,744 $2,744 $3,658 $3,658 $5,826
4.2 Sell Process Improvement $0 $0 $0 $3,887 $256 $3,631 $5,182 $5,182 $8,813
6 Optimize Logistics $0 $288 -$288 $974 $974 $1,299 $1,299 $1,985
7 Voice of the Customer PDMDesign $0 $271 -$271 $4,646 $81 $4,565 $6,194 $6,194 $10,488
8 CPFR/VMI with Large Customers $0 $154 -$154 $554 $230 $324 $738 $738 $908
9 CPFR/VMI with Key Suppliers $0 $154 -$154 $614 $230 $384 $819 $0 $819 $1,049
Subtotal $0 $1,443 -$1,443 $13,418 $797 $12,621 $17,890 $0 $17,890 $29,068
Potential Opportunity $2,855 $3,770 -$915 $30,466 $797 $29,669 $40,331 $0 $40,331 $69,085
FY'02 Goal FY'04 Goal FY'03 Goal
Project Description
Gross
Change Cost
Net
Return
Gross
Change Cost
Net
Return
Gross
Change Cost
Net
Return
3 Yr
Cumm.
1.1 Pricing Model $232 $64 $168 $1,392 $1,392 $1,856 $1,856 $3,416
4.1 Sell Processes $0 $128 -$128 $0 $0 $0 $0 $0 $0 -$128
Subtotal $1,601 $1,113 $488 $9,525 $0 $9,525 $12,410 $0 $12,410 $22,423
Subtotal $1,254 $208 $1,046 $7,523 $0 $7,523 $10,031 $0 $10,031 $18,600
4.2 Sell Process Improvement $0 $0 $0 $3,887 $256 $3,631
Project Description
Gross
Change Cost
Net
Return
Gross
Change Cost
Net
Return
Gross
Change Cost
Net
Return
3 Yr
Cumm.
1.1 Pricing Model $232 $64 $168 $1,392 $1,392 $1,856 $1,856 $3,416
4.1 Sell Processes $0 $128 -$128 $0 $0 $0 $0 $0 $0 -$128
Subtotal $1,601 $1,113 $488 $9,525 $0 $9,525 $12,410 $0 $12,410 $22,423
Subtotal $1,254 $208 $1,046 $7,523 $0 $7,523 $10,031 $0 $10,031 $18,600
Subtotal $0 $1,443 -$1,443 $13,418 $797 $12,621 $17,890 $0 $17,890 $29,068
$5,182 $5,182 $8,813
Subtotal $0 $1,443 -$1,443 $13,418 $797 $12,621 $17,890 $0 $17,890 $29,068
Project Portfolio
Phase 4 is an optional phase of SCOR deployment that is used
to help organizations prioritize and plan for implementation of
the SCOR Project Portfolio. In disciplined Lean Six Sigma
organizations this phase is often not required because the
deployment Champions are very experienced in this activity.
Page: 16
SCOR Training and Deployment
Accelerating Business Improvement Using SCOR
On-site & Remote Support On-site & Remote Support On-site & Remote Support
Train
Apply
Review Train
Apply
Review Train
Apply
5 days
3 weeks
1 day 4 days
3-5 weeks
1 day 4 days
3-5 weeks
Session 1 - Deliverables Session 2 - Deliverables Session 3 - Deliverables
Thought Process Map (TMAP)
Competitive Positioning
Kano Analysis
Industry Comparison
Supply Chain Profile
Supply Chain Definition Matrix
SCOR Charter
Level 1 Metrics Definition / NEM
PMG Benchmark Survey
SCORcards
Requirements Gap Analysis
SCORcard & Gap Analysis Review
Geographic Map
Value Stream Map (Material Flow)
As-Is Material Flow Map
Material Flow Performance Summaries
Material Flow Disconnect Analysis
Brainstorming Summary
Cause/Effect Analysis
Failure Modes & Effects Analysis
To-Be Material Flow Map
Disconnect Opportunity Assessment
Quick Hit Project Charters
Status Review
Transactional Analysis
Value Stream Map (Work & Info Flow)
As-Is Work & Info Flow Map
As-Is Productivity Summary
As-Is Swim Diagrams
Level 3 Baseline Blueprint
To-Be Work & Info Flow Map
To-Be Productivity Summaries
Project Portfolio & ROI Analysis
Effort / Impact Assessment
Portfolio Prioritization
Deployment / Resource Plan
Certification Review
Project Leader
Black
Belt
Flnance Process
0wners
Project Leader
Black
Belt
Flnance Process
0wners
Project Leader
Black
Belt
Flnance Process
0wners
8upply chaln 1hread #1
SCOR
Deployment Teams
Plan
2 days
SCOR Deployment Team Training
Phase 0 Phase 1 Phase 2 Phase 3
Planning &
Organizing
Supply Chain
Supply Chain
Material Flow Analysis
Supply Chain
Work & Information Flow
Analysis
Review Planning
1 day 4 days
Phase 4
Implementation
Planning
(Optional)
Page: 17
What is a Pilot SCOR Deployment?
Phase 0
8upply Chain
Business Unit A
8COR 8teering Team
8upply Chain 1
8COR Design Team
Phase 1
Phase 2
Phase 3
8upply Chain
Material Flow
Work & nformation Flow
The Design Team members must
solidly represent the Plan, Source,
Make, Deliver and Return processes
of Supply Chain 1 with additional
Finance and IT support.
The Steering Team would be
composed of both Business Unit A
functional leadership and leadership
from the corporate Shared Services
Organization.
Phase 4
Pro]ect Portfolio Prioritization
and mplementation Planning
Optional
{may be transitioned to
the 8ix 8igma Deployment
Champions}
Phase 4 can be executed by the
combined effort of the Steering Team
and Design Team OR transitioned to
the Six Sigma Deployment Champions.
Business Unit A
US Retail
Markets
US Distri butor
Markets
US Direct-to-
Consumer
Markets
US OEM - Key
Accounts
US
Government
US Home
Del ivery International
Food
Products X X X X X
Technology
Products X X X
Durable
Products X X
Geography - Customer or Market Channel
Product
Supply Chain
Definition Matrix
US Retail
Markets
US Di stributor
Markets
US Direct-to-
Consumer
Markets
US OEM - Key
Accounts
US
Government
US Home
Delivery International
Food
Products X X X X X
Technology
Products
X X X
Durable
Products X X
Geography - Customer or Market Channel
Product
Supply Chain
Definition Matrix
8upply
Chain 1
8upply
Chain 2
Pe rformanc e Attri bute or Ca te gor y Le ve l 1 Pe rforma nce M etr ic s Ac tual Pa ri ty Me di a n o f s t at i st ic al sa mp le
Adv anta ge Mi dp oi n t o f p a rit y a nd su pe rio r Supe ri or 90 t h Perc en t il e of Pop u la t io n Pa ri ty Ga p Pa ri ty - Ac tu a l Re qui re me nts Ga p Oppor tuni ty
Del i ve ry Perf o rman ce 10.0% 74.7% 85.0% 95.0% -64.7% -64.7% Fil l Ra t es Sub st i tu t e L in e I t em Fi ll ra te he re 85.0% 92.0% 95.5% 99.0% -7.0% -7.0% Perf e ct Orde r Ful f il lm en t 1.0% 74.0% 81.0% 88.0% -73.0% -73.0% Suppl y Cha i n Re s pons i ve ne ss Ord er Ful f il l men t Le ad Time 8days 10 days 6.5 days 3 days 2 days -5 days Sup pl y Ch ai n Re sp o ns e Tim e 110days 60 days 45 days 29 days -50 days -81 days Prod uc t io n Fl exi b il it y 58 days 42 days 26 days 10.8 days -16 days -47.2 days Cos t o f Goo d s 87% 69% 61% 53% - 18% -26% Tot a l Sup p ly Ch a in Cos t 14.0% 9.5% 6.7% 3.9% -4.5% -7.3% SG&ACo st 7% 17% 12% 7% 10.1% 5.1% Wa rra nt y / Ret u rns Pro ce ss in g Co st s 0.7% 1.5% 1.0% 0.5% 0.8% 0.3% $0 Cas h-t o -Cas h Cy cl e Tim e* 197 97.9 63.8 29.7 -99.1 -99.1 In ve n to ry Da ys o f Su p pl y* 91 74 48 23 -17.4 -17.4 Asse t Tu rn s* 1.5 2.5 4.7 7.0 1.0 1.0 Gro ss Ma rg in 13% 31% 39% 47% - 18% Op era t in g I nc om e 6% 14% 19% 23% - 8% Net In co me - - - - - - - Effe ct iv e ne ss of Re turn Ret u rn o n Ass et s - - - - - - -
$45,362,946
$877,500
Enables Inventory and Deliver y Reliability
$32,850,000
$11,635,446
Shareholder
Internal
External Suppl y Cha i n De l i v er y Re l i abi l i ty
Suppl y Cha i n Fl e xi bi l ity
Suppl y Cha i n Cos t
Suppl y Cha i n As se t M ana ge me nt Effi c ie nc y
Profi ta bi l i ty
Business Unit SCORcard
Pe rforma nce Attri bute or Ca te gory Lev e l 1 Pe rforma nce Me tri c s Actua l Pari ty M ed ia n o f st a ti st i ca l s amp l e
Adv a nta ge Mi d po in t of pa ri ty an d su p eri or Supe ri or 9 0t h Pe rce nt i le o f Po pu l at i on Pari ty G ap Pari t y - Ac t ua l Re qui re me nts Ga p Oppor tuni ty
Del iv ery Pe rf orma n ce 10.0% 74.7% 85.0% 95.0% - 64.7% -64.7% Fi l l Ra te s Su b st it u t e L in e I te m Fil l rat e h e re 85.0% 92.0% 95.5% 99.0% - 7.0% -7.0% Pe rf ec t O rde r Fu lf i ll me nt 1.0% 74.0% 81.0% 88.0% - 73.0% -73.0% Suppl y Cha i n Re s pons iv e ne ss Orde r Ful f il lm en t L ea d Ti me 8 days 10 days 6.5 days 3 days 2 days -5 days Su p pl y Ch ai n Re sp on se Ti me 110 days 60 days 45 days 29 days -50 days -81 days Pro d uc ti o n Fle xi bi li t y 58 days 42 days 26 days 10.8days -16 days -47.2days Cos t o f G oo ds 87% 69% 61% 53% -18% -26% To t al Sup pl y Ch ai n Co st 14.0% 9.5% 6.7% 3.9% - 4.5% -7.3% SG &A Co st 7% 17% 12% 7% 10.1% 5.1% Wa rran t y / Ret urn s Pro ce ssi n g Co st s 0.7% 1.5% 1.0% 0.5% 0.8% 0.3% $0 Cas h-t o -Cas h Cyc le Ti me * 197 97.9 63.8 29.7 -99.1 -99.1 In ve nt o ry Da ys o f Su pp ly * 91 74 48 23 -17.4 -17.4 As se t Tu rns * 1.5 2.5 4.7 7.0 1.0 1.0 Gros s Ma rgi n 13% 31% 39% 47% -18% Ope ra ti n g I nc ome 6% 14% 19% 23% -8% Ne t In co me - - - - - - - Effe cti v e nes s of Re turn Ret u rn o n Ass et s - - - - - - -
$45,362,946
$877,500
Enables Inventory and Deliver y Reliability
$32,850,000
$11,635,446
Shareholder
Internal
External Suppl y Cha i nDe l i ve ry Re l i abi l ity
Suppl y Cha i nFl e xi bi li ty
Suppl y Cha i nCos t
Suppl y Cha i nAs se t M ana geme nt Effi ci e ncy
Profi tabi l i ty
Business Unit SCORcard
Page: 18

wnat Is besIgn wnat Is besIgn wnat Is besIgn wnat Is besIgn- -- -for for for for- -- -SIx SIgma SIx SIgma SIx SIgma SIx SIgma
{bFSS)? {bFSS)? {bFSS)? {bFSS)?
Page: 19
DFSS helps you to:
Balance competing requirements
using the balanced scorecard
Minimize costly redesigns and
schedule slips
Prioritize to efficiently allocate
limited resources using sensitivity
methods
Improve understanding of
physical relationships using
DFSS flow down
Make decisions on mean and
variation data
Maximize test effectiveness
through efficient DOE methods
Prove your designs are reliable
and robust through proven DOE
methods
Verify & Validate designs for
defined operating conditions
Design products for production in
a Lean manufacturing
environment
Optimize Product & Process
Cost
Quality
Delivery
Safety
Reliability
Risk
Select Concept &
Establish Relationships
Y = f (x)
Customer
Requirements
Business
Requirements
Process
Capability
Define
Scorecard
Quantify customer and
business requirements
Y=f(x): Develop physical
relationship between engineering
decisions and Customer
requirements.
Risk Management:
Product risks for
Performance and
Quality
Program risks for
Delivery and Cost
Balanced Scorecard for both the
program and the product
Define & Flow Down
Requirements
Initiate
Project
Parameters
(Xs)
Generate and evaluate
alternative design concepts
Design for Optimization and
Robustness. Minimize effect of
variation in internal processes,
supplier processes; and
operating environment
Feedback Assessment
& Corrective Action
(Control)
Verify & Validate
Purpose of DFSS
Page: 20
DFSS Tools
DFSS Builds on Six Sigma and Design Tools
The focus remains on customer and business needs
Mastering Six Sigma tools supports DFSS results
Scorecard
P-Diagram
VOC & Kano Analysis
Pughs Concept Selection
TRIZ / Axiomatic Design
Modeling & Sensitivity Analysis
Optimization & Robustness
Tolerance Design
etc, etc,..
Six Sigma tools
Design for Six Sigma tools
TMAP
SIPOC
PMAP
FMEA
MSE
DOE
NEM
Control Plan
Page: 21
IDOV Identify, Design, Optimize, Validate (or Verify)
IDDOV Identify, Define, Develop, Optimize, Validate
DIDOV Define, Identify, Design, Optimize, Validate
DIDOVM Define, Identify, Design, Optimize, Verify, Monitor
DMADOV Define, Measure, Analyze, Design, Optimize, Verify
DMADV Define, Measure, Analyse, Design, Verify
DMEDI Define, Measure, Explore, Design, Implement
Many methodologies have been proposed. Most of each can be
mapped to the same basic tasks or phases: from ideas/needs
gathering, through design selection and optimization, to
implementation.
DFSS Methodologies
Page: 22
K
e
y

D
e
l
i
v
e
r
a
b
l
e
s
DEVELOP
CONCEPT
OPTIMIZE
DESIGN
VERIFY &
VALIDATE
Develop Product/
Service
conceptual
design
Predict designs
Sigma Capability
Optimize
Product/ Service
detailed design
and production
processes
Perform pilot
testing
Develop
implementation
and control
plans
Validated
conceptual
design
High-level
production
process design
Product/service
production
version design
Production
process design
Validated
product/ service
Implemented
control plans
Production
readiness
Identify
customer needs
and define
Critical
Customer
requirements
Customer reqs.
CTSs
Competitors
Comparison
INITIATE PROJECT
Define budget
and plan the
development
project
F
o
c
u
s
Strategic
Priorities
Project
Selection
Leadership
Development
Project Charter
Budget
Team Identified
Leadership
Committed
Example: DFSS Process for
Design & Development Projects
DEFINE
REQUIREMENTS
DDOV
Regardless of the DF88 Methodology used, it will map
to the phases, tasks and key deliverables of your
Product Development process
Page: 23
DFSS Roadmap - Product Development
nnovation Track
Robust Engineering Track
8tatistical Design Track
DF88 Design Methodology
Training Tracks Align with Product Design Flow
Management Track
Questions
DMADV IDDOV
Typical Design
Process
Outputs
What is the business case?
What risks are we prepared to take? Define
Initiate
Project
Mobilize
Project
Business goals and requirements
Project Plan, with risks and resources
What do customers want?
What is most important to all
stakeholders?
Measure
Define
Requirements
Gather
Requirements
Critical characteristics
Customer requirements
What concept will satisfy the goals?
What are the new concepts?
Invent
Concept
Product concept
Cost breakdown
What design details will satisfy the
goals?
How will we make the product?
Develop
Concept
Requirements flowdown
Product materials, dimensions and
features
How much variation will there be?
How will variation impact the design?
Develop
Model
Key product variables
Math models
Variation forecast
How will variation impact the
business?
How will variation impact the
customer?
What is the optimum configuration?
Optimize
Design
Optimize
ROI forecast
Tolerances
Maximized desirability
How do we prove the design will
meet the goals?
Verify
Proof of satisfaction
Confirmation of performance
How do we maintain the gains? Control Long-term gains
Analyze
Develop
Concept
Design
Verify
Verify and
Launch
DF88 Training
Page: 24

now can b00R be depIoyed to now can b00R be depIoyed to now can b00R be depIoyed to now can b00R be depIoyed to
optImIze tne besIgn 0naIn? optImIze tne besIgn 0naIn? optImIze tne besIgn 0naIn? optImIze tne besIgn 0naIn?
Page: 25
DCOR
mplementation
(Baseline, Benchmark, Analyze,
Identify & Validate)
DCOR Integration with the .
Plan
Amend ntegrate Design
Design Design Design Design- -- -Chain Operations Reference {DCOR} Model Chain Operations Reference {DCOR} Model Chain Operations Reference {DCOR} Model Chain Operations Reference {DCOR} Model
Research
DCOR Pro]ect
Portfolio
DF88
Design-for-8ix 8igma {DF88}
Projects focused on minimizing Product Design and Development
Risk, Uncertainty, and Variation
Lean 8ix 8igma
Lean/8ix 8igma
Projects focused on minimizing Waste, Variability and Defects in
the Product Development process
Transactional
8ix 8igma
Transactional 8ix 8igma
Projects focused on maximizing Transactional Efficiency,
Timeliness and Yield to optimize information flow in the Product
Development process
Methodology & Resource Requirements
Prioritization &
mplementation
Planning
DCOR Portfolio
Implementation Plan
Standardized
Process Definition
Metrics and
Benchmarking
Lean / Six Sigma
Analytics
Industry Best
Practices
Page: 26
DCOR Levels of Detail
The Design Chain Operations
Reference Model (DCOR)
provides standards to assess
your Design Chain processes
against other Design Chain
processes
Reference Document provides
Standard Process Elements
Standard Metrics
Best Practices
World Class Benchmarks
# Description Schematic
Levels
Plan
Design Design Design Design- -- - Chain Operations Reference {DCOR} Model Chain Operations Reference {DCOR} Model Chain Operations Reference {DCOR} Model Chain Operations Reference {DCOR} Model
Research
Plan
Design Design Design Design- -- - Chain Operations Reference {DCOR} Model Chain Operations Reference {DCOR} Model Chain Operations Reference {DCOR} Model Chain Operations Reference {DCOR} Model
Research
Amend
I1 Integrate
Product Refresh
I2 Integrate
NewProduct
I3 Integrate
New Technology
Integrate
D1 Design
Product Refresh
D2 Design
NewProduct
D3 Design New
Technology
Design
R1 Research
Product Refresh
R2 Research
NewProduct
R3 Research
New Technology
Research
PP Plan Design Chain
Plan
PR Plan Research PD Plan Design PI Plan Integrate PA Plan Amend
A1 Amend
Product Fall-Out
A2 Amend
Deficient Product
A3 Amend
Product Specs
I1 Integrate
Product Refresh
I2 Integrate
NewProduct
I3 Integrate
New Technology
Integrate
Top Level Design
Chain Process
Flow
Configuration Level
Work Flow
Process for Selected
Design Chain
Process Element
Level
Decompose Specific
Processes
Implementation
Level
Process Improvement
Project Execution
1
2
3
4
D
C
O
R

M
o
d
e
l
P
r
o
j
e
c
t

E
x
e
c
u
t
i
o
n
Page: 27
PP PR PD PI PA R1 R2 R3 D1 D2 D3 I1 I2 I3 A1 A2 A3
Plan
Design
Chain
Plan
Research
Plan
Design
Plan
Integrate
Plan
Amend
Research
Product
Refresh
Research
New
Product
Research
New
Technology
Design Product
Refresh
Design
New
Product
Design
New
Technology
Integrate
Product
Refresh
Integrate
New
Product
Integrate New
Technology
Amend Product
Fall-Out
Amend
Deficient
Product
Amend Product
Specs
PP.1 PR.1 PD.1 PI.1 PA.1 R1.1 R2.1 R3.1 D1.1 D2.1 D3.1 I1.1 I2.1 I3.1 A1.1 A2.1 A3.1
Gather
Design Chain
Requirements
Gather
Research
Requirements
Gather
Design
Requirements
Gather
Integrate
Requirements
Gather
Amend
Requirements
Schedule
Research Activities
Receive & Validate
Request
Receive & Validate
Request
Schedule
Design
Activities
Receive, Validate
& Decompose
Request
Receive, Validate
& Decompose
Request
Receive &
Validate
Request
Receive &
Validate
Request
Receive &
Validate
Request
Receive &
Validate
Issue
Receive
Deficiency
Information
Receive
Spec
Information
Gather
Design Chain
Resources
Gather
Research
Resources
Gather
Design
Resources
Gather
Integrate
Resources
Gather
Amend
Resources
Source
Materials
Schedule
Research Activities
Identify
Sources for
Technology
Develop Prototype
Schedule
Design
Activities
Schedule
Design
Activities
Decompose
Request
Decompose
Request
Decompose
Request
Decoompose
Issue
Validate
Issue
Validate
Specs
Information
Balance
Design Chain
Requirements w/
Resources
Balance
Research
Requirements w/
Resources
Balance
Design
Requirements w/
Resources
Balance
Integrate
Requirements w/
Resources
Balance
Amend
Requirements w/
Resources
Verify
Materials
Source
Materials
Schedule
Research Activities
Build & Test
Prototype
Develop Prototype Acquire Knowledge
Receive &
Validate
Design
Distribute
Requirements
Distribute
Requirements
Distribute
Issue
Decoompose
Issue
Decoompose
Issue
Establish
Design Chain
Plan
Establish
Research
Plan
Establish
Design
Plan
Establish
Integrate
Plan
Establish
Amend
Plan
Transfer Findings
/ Materials
Verify
Materials
Source
Materials
Package
Design
Build & Test
Prototype
Develop Prototype Pilot Design
Receive &
Validate
Design
Receive &
Validate
Design
Publish
Advisory
(ECN)
Distribute
Issue
Develop
Modified
Specs
R1.5 R2.5 R3.5 D1.5 D2.5 D3.5 I1.5 I2.5 I3.5 A2.5 A3.5
Authorize Supplier
Payment
Transfer Findings
/ Materials
Verify
Materials
Release
Design to
Integrate
Package
Design
Build & Test
Prototype
Package
Product
Pilot Design
Establish
Execution
Process
Publish
Advisory
(ECN)
Distribute
Issue
R2.6 R3.6 D2.6 D3.6 I1.6 I2.6 I3.6 A3.6
Authorize Supplier
Payment
Transfer Findings
/ Materials
Release
Design to
Integrate
Package
Design
Release
Product
Package
Product
Pilot Design
Publish
Advisory
(ECN)
R3.7 D3.7 I2.7 I3.7
Authorize Supplier
Payment
Release
Design to
Integrate
Release
Product
Package
Product
I3.8
Release
Product
INTEGRATE AMEND Plan RESEARCH DESIGN
DCOR Quick Reference
Plan, Research, Design, Integrate, Amend
Page: 28
DCOR Deployment Roadmap
Rigorous - Flexible
Phase 1
Phase 2
Phase 0
Design Chain
Design Chain
Product Development
Work Flow, Value 8team
& Opportunity Analysis
Phase 0 is the education and construction of a DCOR
deployment with the Leadership Team. Initial definitions of
unique Design Chains are addressed as well as the selection of
the Diagnostic Team{s) for Phase 1-3 of deployment
execution
Phase 1 is to build a DCOR performance baseline for the high
priority Design Chains {DCORcards), identify performance
gaps to Strategic and Competitive requirements, and select
the Design Chain{s) to be improved.
Phase 2 is focused on the "As-Is" and "To-Be" assessment of
the Product Development work flows and value stream. Use
of Value Stream Mapping, Process Mapping, ProductJProcess
Matrix, Cause and Effect Analysis, NEM analysis of level 2
metrics, benchmarking, survey analysis and DCOR Best
Practices are used to diagnose design chain improvement
opportunities to accelerate time to market and improve the
performance of product development efforts. The project
development improvement opportunities are financially
validated and the Project Portfolio is the primary deliverable
of Phase 2.
Total
Enterprise
Business
Unit A
Business
Unit B
USRe ta il Ma rk e ts US Dis tr ib u to r M ar k et s US Dire c t- to - Co n su me r Ma rk e ts US OEM- Ke y Ac co u n ts US Gov e rn me n t US Ho me De li ve r y In te rn a ti on a l Fo od Pro d uc t s X X X X X Technology Product s X X X
Product
US Retail Mar kets US Di st ributor Mark ets US Dir ect -t o- Cons umer M ar ket s US OEM - Key Acc ount s US Gov ernment US Home Deli very I nternational Food Product s X X X X X Technology Product s X X X
Geogr aphy - Customer or Market Channel
Product
Supply Chain Defi ni ti onMatr ix
Geography- Cust omeror Mar ket Channel
Product
Suppl y Chain Defi ni ti onMatr ix
Geography- Cust omeror Mar ket Channel
Product
Suppl y Chain Defi ni ti onMatr ix
8upply
Chain 1
8upply
Chain 2
8upply
Chain 3
8upply
Chain 4
Pe rform ance Attri bute or Ca tego ry Lev el1P erfo rmanc eMe trics Act ual Pari ty Media nof statis tical Ad vant age M idpoin tof p arity and S uperi or 90th Perce ntile ofP opula tion Par ityGa p Parit y-Ac tual Req uirem ents Gap O pport unity D elive ryPer forma nce 10.0 % 74.7 % 85.0% 9 5.0% -6 4.7% -6 4.7% F illRa tes S ubsti tuteL ineIte mFill rateh ere 85.0 % 92.0 % 95.5% 9 9.0% - 7.0% - 7.0% P erfec tOrde rFulf illmen t 1.0 % 74.0 % 81.0% 8 8.0% -7 3.0% -7 3.0% Su pply Chain O rder Fulfillm entL eadT ime 8d ays 10da ys 6 .5da ys 3 day s 2 days -5 day s S upply Chai nRes ponse Time 110d ays 60da ys 4 5da ys 2 9day s -50 day s -8 1da ys P roduc tionF lexibi lity 58d ays 42da ys 2 6da ys 10 .8da ys -16 day s -47 .2da ys C osto fGoo ds 87 % 69% 61% 53% - 18% -26% S G&A Cost 7% 17% 12% 7% 1 0.1% 5.1% W arra nty/R eturn sPro cessin gCos ts 0.7 % 1.5% 1.0% 0.5% 0 .8% 0.3% $0 C ash-t o-Cas hCyc leTim e* 19 7 97. 9 63.8 29.7 - 99.1 -99.1 In vento ryDa ysof Supp ly* 9 1 74 48 23 - 17.4 -17.4 A sset Turns * 1. 5 2.5 4.7 7.0 1.0 1.0 G ross Margi n 13 % 31% 39% 47% - 18% N etInc ome - - - - - - - Ef fectiv enes sofR etur nR eturn onA ssets - - - - - - - $4 5,362 ,946
BusinessUnit SCO Rcard Pe rform ance Attri bute or Ca tego ry Lev el1P erfo rmanc eMe trics Act ual Pari ty Media nof statis tical Ad vant age M idpoin tof p arity and S uperi or 90th Perce ntile ofP opula tion Par ityGa p Parit y-Ac tual Req uirem ents Gap O pport unity D elive ryPer forma nce 10.0 % 74.7 % 85.0% 9 5.0% -6 4.7% -6 4.7% F illRa tes S ubsti tuteL ineIte mFill rateh ere 85.0 % 92.0 % 95.5% 9 9.0% - 7.0% - 7.0% P erfec tOrde rFulf illmen t 1.0 % 74.0 % 81.0% 8 8.0% -7 3.0% -7 3.0% Su pply Chain O rder Fulfillm entL eadT ime 8d ays 10da ys 6 .5da ys 3 day s 2 days -5 day s S upply Chai nRes ponse Time 110d ays 60da ys 4 5da ys 2 9day s -50 day s -8 1da ys P roduc tionF lexibi lity 58d ays 42da ys 2 6da ys 10 .8da ys -16 day s -47 .2da ys C osto fGoo ds 87 % 69% 61% 53% - 18% -26% S G&A Cost 7% 17% 12% 7% 1 0.1% 5.1% W arra nty/R eturn sPro cessin gCos ts 0.7 % 1.5% 1.0% 0.5% 0 .8% 0.3% $0 C ash-t o-Cas hCyc leTim e* 19 7 97. 9 63.8 29.7 - 99.1 -99.1 In vento ryDa ysof Supp ly* 9 1 74 48 23 - 17.4 -17.4 A sset Turns * 1. 5 2.5 4.7 7.0 1.0 1.0 G ross Margi n 13 % 31% 39% 47% - 18% N etInc ome - - - - - - - Ef fectiv enes sofR etur nR eturn onA ssets - - - - - - - $4 5,362 ,946
Business Unit SCORcard Pe rform ance Attri bute or Ca tego ry Lev el1P erfo rmanc eMe trics Act ual Pari ty Media nof statis tical Ad vant age M idpoin tof p arity and S uperi or 90th Perce ntile ofP opula tion Par ityGa p Parit y-Ac tual Req uirem ents Gap O pport unity D elive ryPer forma nce 10.0 % 74.7 % 85.0% 9 5.0% -6 4.7% -6 4.7% F illRa tes S ubsti tuteL ineIte mFill rateh ere 85.0 % 92.0 % 95.5% 9 9.0% - 7.0% - 7.0% P erfec tOrde rFulf illmen t 1.0 % 74.0 % 81.0% 8 8.0% -7 3.0% -7 3.0% Su pply Chain O rder Fulfillm entL eadT ime 8d ays 10da ys 6 .5da ys 3 day s 2 days -5 day s S upply Chai nRes ponse Time 110d ays 60da ys 4 5da ys 2 9day s -50 day s -8 1da ys P roduc tionF lexibi lity 58d ays 42da ys 2 6da ys 10 .8da ys -16 day s -47 .2da ys C osto fGoo ds 87 % 69% 61% 53% - 18% -26% S G&A Cost 7% 17% 12% 7% 1 0.1% 5.1% W arra nty/R eturn sPro cessin gCos ts 0.7 % 1.5% 1.0% 0.5% 0 .8% 0.3% $0 C ash-t o-Cas hCyc leTim e* 19 7 97. 9 63.8 29.7 - 99.1 -99.1 In vento ryDa ysof Supp ly* 9 1 74 48 23 - 17.4 -17.4 A sset Turns * 1. 5 2.5 4.7 7.0 1.0 1.0 G ross Margi n 13 % 31% 39% 47% - 18% N etInc ome - - - - - - - Ef fectiv enes sofR etur nR eturn onA ssets - - - - - - - $4 5,362 ,946
BusinessUnit SCO Rcard
Product
Product
Product
Product
Product
Product
Product
Product
Unique Design Chains
8teering
Team
Diagnostic
Team{s}
Phase 3
Pro]ect Portfolio
Prioritization and
Execution Planning
Project Description
Gross
Change Cost
Net
Return
Gross
Change Cost
Net
Return
Gross
Change Cost
Net
Return
3 Yr
Cumm.
1.1 Pricing Model $232 $64 $168 $1,392 $1,392 $1,856 $1,856 $3,416
4.1 Sell Processes $0 $128 -$128 $0 $0 $0 $0 $0 $0 -$128
Subtotal $1,601 $1,113 $488 $9,525 $0 $9,525 $12,410 $0 $12,410 $22,423
Subtotal $1,254 $208 $1,046 $7,523 $0 $7,523 $10,031 $0 $10,031 $18,600
Subtotal $0 $1,443 -$1,443 $13,418 $797 $12,621 $17,890 $0 $17,890 $29,068
Project Description
Gross
Change Cost
Net
Return
Gross
Change Cost
Net
Return
Gross
Change Cost
Net
Return
3 Yr
Cumm.
1.1 Pricing Model $232 $64 $168 $1,392 $1,392 $1,856 $1,856 $3,416
4.1 Sell Processes $0 $128 -$128 $0 $0 $0 $0 $0 $0 -$128
Subtotal $1,601 $1,113 $488 $9,525 $0 $9,525 $12,410 $0 $12,410 $22,423
Subtotal $1,254 $208 $1,046 $7,523 $0 $7,523 $10,031 $0 $10,031 $18,600
4.2 Sell Process Improvement $0 $0 $0 $3,887 $256 $3,631
Project Description
Gross
Change Cost
Net
Return
Gross
Change Cost
Net
Return
Gross
Change Cost
Net
Return
3 Yr
Cumm.
1.1 Pricing Model $232 $64 $168 $1,392 $1,392 $1,856 $1,856 $3,416
4.1 Sell Processes $0 $128 -$128 $0 $0 $0 $0 $0 $0 -$128
Subtotal $1,601 $1,113 $488 $9,525 $0 $9,525 $12,410 $0 $12,410 $22,423
Subtotal $1,254 $208 $1,046 $7,523 $0 $7,523 $10,031 $0 $10,031 $18,600
Subtotal $0 $1,443 -$1,443 $13,418 $797 $12,621 $17,890 $0 $17,890 $29,068
$5,182 $5,182 $8,813
Subtotal $0 $1,443 -$1,443 $13,418 $797 $12,621 $17,890 $0 $17,890 $29,068
Project Portfolio
Phase 3 is an optional phase of DCOR deployment that is used
to help organizations prioritize and plan for execution of the
DCOR Project Portfolio. Projects resulting from DCOR may be
executed using Standard Lean Six Sigma tools or may require
use of DFSS {Design for Six Sigma) or Lean Design tools.
Page: 29
DCOR Phases
Process Maps
Root Cause Assessments
Baseline Performance Metrics
Design Chain Strengths &
Weaknesses
Product Scorecard & Sigma
Level
Initial Project Listing of Work
Flow, Design Quality & Product
Value Opportunities for
Improvement
Process Mapping Tools: Value Stream
Maps, Detailed Process Maps,
Geographic Maps, Swimlane Diagrams,
Product/Process Matrix
Root Cause Analysis Tools: Cause &
Effect Diagrams, FMEA
Data Gathering & Analysis Tools: NEM,
Surveys, Product Scorecard, Process
Capability
Best Practices
Conduct the DCOR Work Flow &
Product Value Analysis
Construct As-Is and To-Be Work
Flows for the selected Design Chain
using the DCOR model
Identify actionable improvement
opportunities to improve Design
Chain Work Flow and Value Stream
Performance
Phase 2:
Work Flow &
Product
Value
Analysis
Prioritized Project Portfolio
High Level Program
Implementation Plan
Recommendation of projects to
Steering Team for immediate
execution
Financial Analysis
Effort/Impact Analysis
Project Charters
Effectively plan, resource and
execute the projects identified in the
DCOR Deployment.
Prioritize projects based on selection
criteria and effort/impact analysis
Phase 3:
Project
Execution &
Planning
High Level Gap Analysis of
Current vs. Required Competitive
Performance (DCORcard)
Gross Level Financial Impact of
Opportunities Estimated
Level 1 DCORcard Metrics
Benchmark Data Sources
Market & Competitive Requirements
Assessment
Build a performance baseline for the
selected Design Chain/s
Produce a DCORcard of identifying
gaps between current and required
performance levels
Phase 1:
Performance
Baseline
Defined Design Chains
Selected Design Chain/s for
Initial Deployment
Diagnostic Team to Execute
Phases 1-3
Design Chain Definition Matrix
Design Chain Profiling
Deployment Decision matrix
Diagnostic Team Selection Matrix
Develop an understanding of your
markets, product lines and resulting
Design Chain/s.
Assign Deployment teams to assess
selected Design Chain/s.
Phase 0:
Planning &
Organizing
Deliverables Tools Objective Phase
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Plan
Research
Plan
Research
Experts in Design Chain Processes
Page: 31
Phase 0 Objectives
Objectives
Interview key Design Chain stakeholders
Introduce the attendees to the DCOR
Model and the DCOR Deployment process
Define the unique Design Chains
Define the Strategic, Competitive and
Market requirements of the Design Chain
Profile the business context of each Design
Chain and select Design Chain/s of focus
Deliverables
Appropriate Memberships
Benchmark Sources
Business Information Sources
Business Context Summary
Design Chain Definition Matrix
Design Chain Profile(s)
Deployment Decision Matrix
DCOR Deployment Charter
The objective of Phase 0 is to plan and organize prior to deployment of
DCOR. Activities are focused on developing an understanding of how you
define your markets, product lines and resulting Design Chain/s that
exists within your business. You will also begin to develop the DCOR
deployment teams to address these opportunities.
Page: 32
Deliverables
DCORcard Performance
Baseline
Industry Benchmark
Performance
Competitive Requirements
Established
High Level Gap Analysis of
Current vs. Required
Competitive Performance
Gross Level Financial Impact
of Opportunities Estimated
Phase 1 Deployment Objectives
The objective of Phase 1 is to train the Diagnostic Team to build a DCOR
performance baseline for the selected Design Chain/s. A DCORcard will be
produced identifying gaps between current performance and required
performance levels.
Objectives
Define DCORcard Metrics
Collect Current Performance
Data
Collect Industry Benchmark
Performance Data
Determine Competitive
Requirements for selected
Design Chain
Conduct Gap Anlaysis of Final
DCORcard and Summarize
Opportunities
Page: 33
Phase 2 Deployment Objectives
Objectives
Gain current process understanding
Value Stream Maps
DCOR Process Maps
Swimlane Diagrams
Product/Process Matrix
Product Scorecard
Conduct root cause analysis
Cause & Effect Diagrams
Failure Modes & Effects Analysis
Gather and analyze data
Benchmarking
Surveys / Interviews
Process Capability
Identify & document opportunities
Quick Hits
Major Work Flow Disconnects
Deliverables
Design Chain Process Maps
Root Cause Assessments
Data Analysis Quantifying Major
Opportunities
Sigma Level
Design Chain Strengths & Weaknesses
Identification of Best Practices
Initial Project Listing of Work Flow,
Design Quality & Product Value
Opportunities for Improvement
The objective of Phase 2 is to conduct the DCOR Work Flow & Product
Value analysis using the Level 2 & 3 architecture of the DCOR model.
Driven by the need to close the performance improvement gaps in the
DCORcard, As-Is and To-Be Work Flows are constructed for the
selected Design Chain and then the actionable improvement opportunities
are identified using the tools and best practices outlined in DCOR.
Page: 34
Objectives
Complete Consolidated Opportunity
Analysis
Assemble Final Project Portfolio
with Effort Impact Summary
Establish Recommended scope
and sequence of project portfolio
Select the appropriate
implementation methodology
Construct preliminary Project
Charters
Deliverables
Final Opportunity Analysis
Final Project Portfolio
High Level Program Implementation
Plan (showing scope and
sequence)
Preliminary Project Portfolios
(utilizing appropriate methodology)
Executed Projects
Phase 3 Deployment Objectives &
Deliverables
The objective of Phase 3 is to effectively plan, resource and execute the
projects identified in the DCOR Deployment and summarized in the DCOR
Project Portfolio. Each identified project is outlined in a Project Charter,
prioritized based on project selection criteria, and time-phased to allow
the Design Chain Diagnostic Team to recommend the appropriate
projects, resources and timing to the Steering Team for implementation.
Page: 35
DCOR Deployment Expectations
DCOR Model
The model will be modified and improved as it gains acceptance as an
open-source cross-industry standard
Metrics & Competitive Benchmarking
Over 300 product development metrics are built into the model
Limited benchmark sources will expand as the model gains acceptance
Deployment Capability
HP and AIT Group are moving forward to refine and structure the
deployment methodology and build the training curriculum
Modeled after Six Sigma deployment Train-Apply-Review
We intend to implement DCOR with early adopters using the HP version
of DCOR while working with the community to develop DCOR as a open
standard, improve benchmark sources, etc.
Page: 36

Page: 37
Contact Information
Rod Recker Office: (530) 587-1575
Executive Director Cell: (530) 277-3154
Advanced Integrated Technologies Email: rrecker@theaitgroup.com
Group, Inc.
For more information or any questions on these topics contact:

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January 11, 2005

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