KLU Building a Maturity Model A Maturity Model WHAT ARE MATURITY - - PowerPoint PPT Presentation

Building a Maturity Model

A Maturity Model

KLU

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WHAT ARE MATURITY MODELS?

• “Maturity” means ripeness and describes the

transition from an initial to a more advanced state of a process, project, etc.

• Maturity Models reflect the degree to which

key processes or activities are (should be) defined, managed, or executed effectively.

• Purpose of maturity models
• Descriptive: As-Is Assessments wrt. given criteria
• Prescriptive: Identify desirable maturity levels

and guidelines on improvement measures

• Comparative: Internal of external benchmarking
• Underlying assumption: A higher level of

maturity will result in a better company performance.

Source: Boughzala, I. and de Vreede, G. (2012). A collaboration maturity model: Development and exploratory applications. 45th Hawaii International Conference on System Sciences, Maui, HI, 2012, pp. 306-315.

Source: http://heartfeltquotes.blogspot.com

3 Source: https://community.hpe.com/

MATURITY CRITERIA AND LEVELS

• Majority of maturity models consist of 5 (cumulative) levels (stages)
• From low (0 or 1) to high (4, 5, or even 6)
• Number of levels can vary
• Criteria on each stage should be distinct, in particular, on the

highest stage

• Logical progression through stages (cumulative)
• Requirements that are

NEW on each stage must be clear

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MATURITY MODEL FRAMEWORK

• Model development

Source: de Bruin, T., Rosemann, M., Freeze, R., and Kulkarni, U. (2005) Understanding the Main Phases of Developing a Maturity Assessment Model

What is the focus of the model?

• Domain specific or general

Who are the stakeholders to assist the model development?

• Academia, industry, non-

profits, or government Who is the audience? (internal, external)

• Apply: Why? How?
• Involve: Who?
• Achieve: What?
• Define maturity levels

(top-down, bottom-up) Determine dimensions, sub- dimensions, and key aspects

• mutually exclusive and

collectively exhaustive Determine instrument/s and methods used in assessing

• Quantitative and qualitative

methods Test for relevance and rigor

• Model construction and

model instruments for validity and reliability) Model made available for use

• Entities must be independent

from the model development Applicable for general audience

• Standardization and global

acceptance Resources to maintain model’s use and growth

• Track interventions

longitudinally

• Necessary for

continued relevance

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MATURITY MODEL FOR CPFR & S&OP

• S&OP (internal collaboration)
• cross-functional and integrated

tactical planning to align all relevant plans for the business (internal horizontal collaboration)

• bridging strategic and operational

plans

• CPFR (external collaboration)
• extends ECR principles
• enables trading partners to

improve operational efficiency through a structured process of collaboration

Source: Wagner, S., Ullrich, K., Transchel, S. (2014). The game plan for aligning the organization, Business Horizons, 57, pp.189-201

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MATURITY MODEL FOR S&OP AND CPFR

• Scope:
• Many companies continually struggle with

misaligned organizational plans and costly discrepancies between supply and demand.

• On the one hand, due to non-aligned internal

cross-functional areas, but also vertically between suppliers and customers

• S&OP and CPFR are not all-or-nothing
• approaches. Firms should continually improve

the coordination and alignment process.

• Develop a formal and structured model to

assess the performance of an S&OP and an CPFR process

• Stakeholders: Academics, S&OP Experts,

Practitioners

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MATURITY MODEL FOR S&OP (DIMENSIONS, SUBDIMENSIONS, AND MATURITY LEVELS)

Source: Wagner, S., Ullrich, K., Transchel, S. (2014). The game plan for aligning the organization, Business Horizons, 57, pp.189-201

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DIMENSION, SUB-DIMENSIONS, AND KEY ASPECTS

Source: Ullrich, K.K. Performance Measurement of Sales and Operations Planning Processes -A Business Process Analysis-, Master Thesis, Kuehne Logistics University, 2012

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CHARACTERISTICS OF ALL MATURITY LEVELS

Source: Ullrich, K.K. Performance Measurement of Sales and Operations Planning Processes -A Business Process Analysis-, Master Thesis, Kuehne Logistics University, 2012

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DESIGNING SURVEY QUESTIONS EXAMPLE: COLLABORATION & ALIGNMENT

Source: Ullrich, K.K. Performance Measurement of Sales and Operations Planning Processes -A Business Process Analysis-, Master Thesis, Kuehne Logistics University, 2012

• Question about the importance of this dimension

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ASSESSMENT OF CURRENT S&OP PROCESSES

• Results from a survey study in the process industry (sent to 300

firms (e.g., Bayer, GlaxoSmithKline), 88 respondents (29.3%))

Source: Wagner, S., Ullrich, K., Transchel, S. (2014). The game plan for aligning the organization, Business Horizons, 57, pp.189-201

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MATURITY ASSESSMENT OF COLLABORATIVE PLANNING FORECASTING & REPLENISHMENT (CPFR)

What is CPFR?

• “CPFR is a business practice that combines

the intelligence of multiple trading partners in the planning and fulfillment of customer demand.” (VICS, 1999)

• CPFR extends ECR principles in following way:
• Information systems for capturing and

transferring POS, inventory, and other demand & supply information between trading partners

• Formalized sales forecasting and order

forecasting processes

• Formalized exception handling processes
• Feedback systems to monitor and improve supply

chain performance

http://www.huffingtonpost.com/

Source: Voluntary Interindustry Commerce Solutions. 1999b. Roadmap to CPFR: The Case Studies

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CPFR MATURITY MODEL

Supply Chain Collaboration People & Organization Information Technology Process Efficiency: Planning & Forecasting Process Efficiency: Replenishment

Dimensions

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DIMENSION 1: SUPPLY CHAIN COLLABORATION

Supply Chain Collaboration People & Organization Information Technology Process Efficiency: Planning & Forecasting Process Efficiency: Replenishment

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DIMENSION 1: SUPPLY CHAIN COLLABORATION

“Team Spirit and Rules of the Game”

Supply Chain Collaboration Collaborative Strategy Top Management Commitment Trust

• Formalization of

Collaboration Agreement

• Scope of CPFR

Relationship

• Metrics for CPFR

Relationship

• Empowerment
• Communication
• Strategy
• Risk vs. Synergy
• Opportunism vs

Reliability

• Interfirm vs.

Interpersonal Trust

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CPFR MATURITY MODEL

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MATURITY MODEL FOR COLLABORATION ISSUES IN SUPPLY CHAINS TO REDUCE WASTE/SHRINKAGE.

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INSIGHTS FROM THE PREVIOUS WORKSHOP

“What best describes your approach?”

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INSIGHTS FROM THE PREVIOUS WORKSHOP

“State of Collaboration with Others”

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INSIGHTS FROM THE PREVIOUS WORKSHOP

“State of Collaboration with Others”

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INSIGHTS FROM THE PREVIOUS WORKSHOP

“Priorities”

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CPFR MATURITY MODEL

Dimen- sions Sub- dimensions Key Aspects Maturity Levels 0 1 2 3 …

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• Logistics dept.
• Supply Chain
• Inventory Manager
• Sales
• Retailer-Supplier collaboration
• Collaboration with 3PL/4PL

Internal Collaboration External Collaboration

WHAT ASPECT OF COLLABORATION IS MOST CRITICAL IN ORDER TO IMPROVE PERFORMANCE?

• Sharing data (sales,

inventory, promotion dates)

• Collaborative planning
• Shelf life contract
• Lead time reduction

Mid-term Collaboration

• Product development (shelf

life extensions)

• Innovative packaging

Strategic Collaboration/Partnerships

• Trust (building)
• Investments in training

people

• Internal process/alignment

changes

Behavioral Issues Technological issues

• Investments in better peer-

to-peer IT

• Investment in IoT (e.g.

„Internet of Food and Farm“)

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WHAT DO YOU THINK ARE THE MOST CRITICAL SUCCESS FACTORS TO IMPROVE COLLABORATION

Retailer Fresh Suppliers

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DO YOU THINK YOU / YOUR COMPANY BENEFIT FROM THE RESULTS OF SUCH A MATURITY MODEL?

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THANK YOU FOR YOUR ATTENTION!

Kühne Logistics University - Wissenschaftliche Hochschule für Logistik und Unternehmensführung Grosser Grasbrook 17 | 20457 Hamburg | Germany Phone: +49 40 328707-0 Fax: +49 40 328707-109 www.the-klu.org