USA Presentations

1
Applying Best Practices - using the SCOR Library
Supply Chain World - North America March 19, 2007
Dan Swartwood VC Director, PRAGMATEK
Scott L. Sealing USA SCM Project Lead
2
Agenda

• What are Best Practices?
• How are they defined?
• Where do they come from?
• How do I access them?
• Case Study at United Space Alliance, LLC
• How do you conduct an organized assessment?
• What are the next steps after assessment?
• Process Changes
• System Functionalities
• Lessons Learned Refining the Approach

3
Best Practice Definition What is a BP?

• A current, structured, proven, and repeatable
  method for making a positive impact for desired
  operational results
• Current not emerging (bleeding edge) and not
  antiquated
• Structured Clear and concise Goals, Scope,
  Process Procedure
• Proven Demonstrated success in a working
  environment
• Repeatable Proven in multiple environments

4
SCOR Model 8.0 Where do they come from?

• The Supply Chain Council
• gt 770 Global Member Companies
• Technical Development Steering Committee
• Participation is open and voluntary
• Series of Special Interest Groups
• Version 8.0 Offers
• Process Terminology
• Project Roadmap
• Metrics
• Inputs and Outputs
• Best Practices Library
• Accessible to all SCC members

5
Whats the value in considering Best Practices?

• Accelerates the improvement process with known
  solutions

• Directs us to a desirable future state

• Helps us evaluate systems capabilities

• Establishes performance standards

The value lies in understanding the health and
resilience of your business capabilities compared
to others in the global market.
6
Case Study

• Project Scope
• Evaluating system software and process
  integration to improve planning, communications
  and operational execution
• Planning Long and Near Term
• Logistics functions touching Source, Make,
  Deliver, and Return
• Multiple operational functions touching Source,
  Make, Deliver, and Return
• Multiple teams of Subject Matter Experts
• gt 175 detailed process maps levels 4 5
• Thousands of process requirements identified
• Project Organization
• Multiple teams made up of resident Subject Matter
  Experts
• Structured on a Six Sigma methodology foundation
• Best Practice Assessment Objective
• Incorporate a Best Practice assessments into the
  scope to insure maximum system functionality and
  to identify process improvement needs

7
Who is United Space Alliance?

• NASA prime contractor responsible for Space
  Shuttle maintenance and operations
• Workforce of approximately 10,000
• Limited Liability Company formed in 1996 equally
  owned by The Boeing Company and Lockheed Martin
  Corporation
• Supports multiple NASA
• Centers
• NASA HQ
• KSC
• JSC
• MSFC

8
Best Practice Objective Roadmap
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Assessment Approach

• Design a Best Practice assessment tool for each
  team
• Facilitate a Best Practice assessment with each
  team during the Improve phase of DMAIC
• Rank current maturity level for each applicable
  Best Practice
• Determine importance of each Best Practice for
  the future
• Denote BPs which will be enabled by system
  enhancements
• Identify transactional processes needing changes

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Aligning the Business Model with the SCOR Model
So, how did we actually align process maps to
SCOR Level 2 3?
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(No Transcript)
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BP Assessment Tool Design
SCOR Process Element
Rank How we perform TODAY
How do we need to perform in THE FUTURE
Best Practice Description
Best Practice Title
1 Shortfall 3 Parity 5 Advantage 10
Superior

• High Priority Mandatorys
• Mandatory
• Highly Desirable
• Optional

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Best Practice Assessments Were Conducted
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Best Practice Assessments Were Conducted
Software Enhancement
3
H
2
X
1
X
3
X
1
X
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Best Practice Assessment Tool - Example
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Best Practice Summary - Example
Plan Source Make Return Total
High priority mandatorys 20 12 28 8 68
Mandatory Best Practices 96 44 27 30 186
Highly Desirable Best Practices 150 23 37 8 218
Optional 35 20 19 16 90
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Example Assessment Summary

• Assessment Index

Superior
Advantage
Parity
Mandatory Best Practices Rating
19
Lessons Learned 1 Sequencing the Process
Define
Improve
Analyze
Measure
Control
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Lessons Learned recommendations (cont)

• 2 - Characterize processes using SCOR

• 3 Establish strategic priorities with
  management

• 4 - Remove redundancies and BPs that dont
  apply

• 5 - Rank BPs based on strategic importance

• 6 Use the BP analysis to optimize software
  functionality
• Does the SW tool have the features necessary to
  support?
• Will all the SW features will be operational
  (activated)?
• Will any desired features require SW
  re-configurations?

• 7 - Align with SCOR metric performance gaps

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Whats the value in considering Best Practices?

• Accelerates the improvement process with known
  solutions-a MODULAR approach

• Directs us to a desirable future state

• Helps us evaluate systems capabilities

• Establishes performance standards

The value lies in understanding the health and
resilience of your business capabilities compared
to others in the global market.
22
Contact Information

• Scott L. Sealing, USA Project Lead Supply
  Chain Management
• Chair, SCC SCOR/Six Sigma/Lean Convergence
  SIG
• Member, SCC Technical Development Steering
  Committee
• Scott.L.Sealing_at_usa-spaceops.com
• Office 281-212-6298
• Cell 281-639-4786
• Dan Swartwood, PRAGMATEK Consulting Director,
  Value Chain
• Chair, SCC Technical Development Steering
  Committee
• dan.swartwood_at_pragmatek.com
• Cell 469-644-7995

• Supply Chain Council
• www.supply-chain.org