KLU Building a Maturity Model A Maturity Model
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 Source: http://heartfeltquotes.blogspot.com • 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 2 International Conference on System Sciences, Maui, HI, 2012, pp. 306-315.
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 3 Source: https://community.hpe.com/
MATURITY MODEL FRAMEWORK Model development • Who is the audience? Resources to maintain (internal, external) Test for relevance and model’s use and growth - Apply: Why? How? rigor - Track interventions - Involve: Who? - Model construction and longitudinally - Achieve: What? model instruments for - Necessary for - Define maturity levels validity and reliability) continued relevance (top-down, bottom-up) Determine dimensions, sub- What is the focus of the Model made available for use dimensions, and key aspects model? - Entities must be independent - mutually exclusive and - Domain specific or general from the model development collectively exhaustive Who are the stakeholders to Applicable for general Determine instrument/s and assist the model development? audience methods used in assessing - Academia, industry, non- - Standardization and global - Quantitative and qualitative profits, or government acceptance methods Source: de Bruin, T., Rosemann, M., Freeze, R., and Kulkarni, U. (2005) Understanding the Main Phases of Developing a Maturity Assessment Model 4
MATURITY MODEL FOR CPFR & S&OP S&OP (internal collaboration) CPFR (external collaboration) • • cross-functional and integrated extends ECR principles • • tactical planning to align all enables trading partners to • relevant plans for the business improve operational efficiency (internal horizontal collaboration) through a structured process of bridging strategic and operational collaboration • plans Source: Wagner, S., Ullrich, K., Transchel, S. (2014). The game plan for aligning the organization, Business Horizons, 57, pp.189-201 5
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 6
MATURITY MODEL FOR S&OP (DIMENSIONS, SUBDIMENSIONS, AND MATURITY LEVELS) 7 Source: Wagner, S., Ullrich, K., Transchel, S. (2014). The game plan for aligning the organization, Business Horizons, 57, pp.189-201
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 8
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 9
DESIGNING SURVEY QUESTIONS EXAMPLE: COLLABORATION & ALIGNMENT Question about the importance of this dimension • Source: Ullrich, K.K. Performance Measurement of Sales and Operations Planning Processes -A Business Process 10 Analysis-, Master Thesis, Kuehne Logistics University, 2012
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 11
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 • http://www.huffingtonpost.com/ forecasting processes Formalized exception handling processes • Feedback systems to monitor and improve supply • chain performance Source: Voluntary Interindustry Commerce Solutions. 1999b. Roadmap to CPFR � : The Case Studies 12
CPFR MATURITY MODEL Supply Chain Collaboration People & Organization Dimensions Information Technology Process Efficiency: Planning & Forecasting Process Efficiency: Replenishment 13
DIMENSION 1: SUPPLY CHAIN COLLABORATION Supply Chain Collaboration People & Organization Information Technology Process Efficiency: Planning & Forecasting Process Efficiency: Replenishment 14
DIMENSION 1: SUPPLY CHAIN COLLABORATION “Team Spirit and Rules of the Game” Supply Chain Collaboration Top Management Collaborative Strategy Trust Commitment • Formalization of • Empowerment • Risk vs. Synergy Collaboration Agreement • Communication • Opportunism vs • Scope of CPFR Reliability • Strategy Relationship • Interfirm vs. Interpersonal Trust • Metrics for CPFR Relationship 15
CPFR MATURITY MODEL 16
MATURITY MODEL FOR COLLABORATION ISSUES IN SUPPLY CHAINS TO REDUCE WASTE/SHRINKAGE. 17
INSIGHTS FROM THE PREVIOUS WORKSHOP “What best describes your approach?” 18
INSIGHTS FROM THE PREVIOUS WORKSHOP “State of Collaboration with Others” 19
INSIGHTS FROM THE PREVIOUS WORKSHOP “State of Collaboration with Others” 20
INSIGHTS FROM THE PREVIOUS WORKSHOP “Priorities” 21
CPFR MATURITY MODEL Dimen- Sub- Key Maturity Levels sions dimensions Aspects 0 1 2 3 … 22
WHAT ASPECT OF COLLABORATION IS MOST CRITICAL IN ORDER TO IMPROVE PERFORMANCE? Internal Collaboration External Collaboration • Logistics dept. • Retailer-Supplier collaboration • Supply Chain • Collaboration with 3PL/4PL • Inventory Manager • Sales Mid-term Collaboration Strategic Collaboration/Partnerships • Sharing data (sales, • Product development (shelf inventory, promotion dates) life extensions) • Collaborative planning • Innovative packaging • Shelf life contract • Lead time reduction Behavioral Issues Technological issues • Trust (building) • Investments in better peer- to-peer IT • Investments in training • Investment in IoT (e.g. people „Internet of Food and Farm“) • Internal process/alignment 23 changes
WHAT DO YOU THINK ARE THE MOST CRITICAL SUCCESS FACTORS TO IMPROVE COLLABORATION Retailer Fresh Suppliers 24
DO YOU THINK YOU / YOUR COMPANY BENEFIT FROM THE RESULTS OF SUCH A MATURITY MODEL? 25 25
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 26
Recommend
More recommend
