© 2006 by kürschner consulting unauthorized copying prohibited strategy, processes, supply chain -...

© 2006 by Kürschner Consulting Unauthorized copying prohibited

Strategy, Processes, Supply Chain

- a presentation of 25 min. approx.

… increasing competitiveness

Presentation KC

6© 2006 by Kürschner Consulting Unauthorized copying prohibited

PRESENTATION

Who we are

KÜRSCHNER CONSULTING

Started up in 2001

Company of ~ 10 partners plus extensive network

Independent

Headquartered in Munich area

Less than an hour to 3 international airports

Strongly international operations : < 50% in German-speaking countries

KC partners > 45 years of age

'Hands-on' specialists with excellent theoretical background

Former managers and executives from industry, trade and service sector

Multilingualism

Presentation KC


PRESENTATION

Mission, Claim

Mission

KÜRSCHNER CONSULTING

offers services in consulting, implementation and interim management on highest level

for middle-sized and larger companies and organisations - internationally

focussed on strategy consulting, supply chain management and process optimisation

We work hard for a significantly increased competitiveness of our client companies and organisations

in the field of strategic positioning and planning

via an effective and cost-efficient supply chain

or via sustained savings, productivity improvements and speeding-up of processes

Claim

Presentation KC


PRESENTATION

Business fields

What Who How

Strategy consulting

Supply chain-optimisation

Process-Reengineering

middle-sized / largercompanies

Analysis, data collectingGuidance at strategy formulation

strategic positioning strategic planning

Coaching / training, workshops, etc.

Analysis, data collecting, benchmarkingOptimisation of the whole supply chainincl. intraplant processesAdvising, interim management

Analysis keyprocessesBlitz-Kaizens (interdisciplinary workshops)Profitability guarantee

smaller/middle-sized/larger companies

middle-sized / largercompanies

Presentation KC


PRESENTATION

Industries and service fields

Others….

Perishables

Durables

Automotive suppliers

Process-/Assembly-Industries

Paper, Board, Packaging

Business Position

StrategicPosition(ing)

StrategyFormulation

StrategicPlanning

Advising, Workshops

Advisory Board, (Interim Mgmt)

Supply ChainOptimisation

ServiceEngineering

Advising, WorkshopsFeasibility

Interim Management

Lean production

Lean SC / Logistics

Lean Office / Mgmt

Analysis, Training

Implementation, RESULTING

StrategyConsultingStrategy

ConsultingSupply ChainManagementSupply ChainManagement

Process-Optimisation /

Lean Transformation


Lean Transformation

Servi

ce fi

elds

Met

hods

Servi

ce fi

elds

Met

hods

Presentation KC


PRESENTATION


Others….

Perishables

Durables




Business Position


StrategyFormulation

StrategicPlanning

Advising, Workshops

Advisory Board,(Interim Mgmt)


ServiceEngineering


Interim Management

Lean production

Lean SC / Logistics

Lean Office / Mgmt

Analysis, Training





Lean Transformation


Lean Transformation

Servi

ce fi

elds

Met

hods

Servi

ce fi

elds

Met

hods

Presentation KC


PRESENTATION

Strategy Consulting

1. Business position

Enterprise check

KPI's

Ressources (basics)

Qualitative assessment

2. Strategic position(ing)

Current (as-is) state

Benchmarking

Competitors' states

SWOT check

3. Strategy formulation

Mission, vision

Positioning vs. competitors

Styles of strategic behaviour

Options for allocation of resources

Strategy alternatives / options

Development strategic delta

Strategy plan, framework and milestones

Development controlling tools

Balanced scorecards

Evaluation of strategy implementation

4. Strategic planning

Presentation KC


PRESENTATION

Strategy- examples 1

Strategy management

Ressourcen-Allokation

Develop Mission

Statement

Establish Long-term objectives

Generate, evaluate

and select strategies

Establish policies, annual

objectives

Allocate resources

Measure and evaluate performance

Internal analysis

External analysis

Strategy Formulation

Strategy Implementation

poor high

Competitive Advantage

low

high

Market Attractiveness

medium

medium

Product groupA

Invest

Act selectively

Skim

Presentation KC


PRESENTATION

Strategy- examples 2

Strategy vs. competitors

Strategy vs. competitors

Attack strategies Strategies of defense

Frontal attack

Flanking attack

Encirclement attack

Bypass attack

Guerilla warfare

Position- 'Hedgehog'- defense

Mobile defense

Preemptive defense

Counter offensive defense

Strategic withdrawal

Flank positioning defense

(Acquisiton)

Confrontation strategies

Presentation KC


PRESENTATION

Strategy: project abstracts

Industry, enterprise Starting point / problem Solution / success

PaperSite 1000 empl.

Company acquired by a competitorresulted in loss of experts:the (unwritten) strategy for the main product was 'lost' too.Product group got into the red

Setup of a product strategy incl.a marketing strategy (Copystrategie)as a framework for all partiesProduct group is in the black again

Review resp. Reformulation of strategic planningresulted in savings ~ 50% of project costsplus in a conceptual consolidation of the division

Formulation of a division / productgroup strategy, incl.resources-/ regional-/ acquisitions-/branding-/ competitors strategyDivision still very profitable, despite of marketentry of competitor

Strategic planning was outdated andinflexible, basis of high indirect costs

Highly profitable division was facing a massive market entry of a predominant competitor

Installation of antennas /constructionDivision 100 empl.

Convenience goods B2CDivision – 3.100 empl.

Presentation KC


PRESENTATION


Others….

Perishables

Durables




Business Position


StrategyFormulation

StrategicPlanning

Advising, Workshops



ServiceEngineering


Interim Management

Lean production

Lean SC / Logistics

Lean Office / Mgmt

Analysis, Training





Lean Transformation


Lean Transformation

Servi

ce fi

elds

Met

hods

Servi

ce fi

elds

Met

hods

Presentation KC


PRESENTATION

Supply Chain Management

1. Business position

Enterprise check

KPI's


Relevance SCM

2. Supply chain optimisation

Purchasing and procurement

Production planning: rough-/fine planning

Reduction throughput times

Warehousing / optimisation of inventories

Transport logistics

Management order-to-delivery process

Delivery reliability (internally, in-/outbound)

Reduction delivery leadtimes

Reduction reaction times

Optimisation performance transport logistics

3. Service Engineering

Development controlling tools

Aftersales / Technical Support

Service management: 'soft' issues

3. cont'd

Presentation KC


PRESENTATION

Supply Chain: examples 1

Approach supply chain optimisation

Training purchasing and

procurement

You Reduce Vendor Lead-Time By:

1. Minimizing/Consolidating Vendors

2. Using Long Term Contracts/Blanket Orders

3. Collaborative Planning & Scheduling

4. Maximizing and Increasing Transportation Deliveries

5. Minimizing Receiving/Incoming Inspection Queue Times

6. Minimizing the Order Release Bucket Size

7. Choosing Regional/Local Vendors

Purchasing

Pro-duc-tion

Dis-patch

Perspective

WholeSaler

Retailer

Customer

Supplier

Raw

materials

Supplier

Compo-nents

Perspective - enlargement

Flow of material Flow of information

Purchasing

Pro-duc-tion

Dis-patch

Perspective

WholeSaler

Retailer

Customer

Supplier

Raw

materials

Supplier

Compo-nents

Perspective - enlargement

Flow of material Flow of informationFlow of information

Presentation KC


PRESENTATION

Supply Chain: examples 2

WIP - Optimisation

Transport logistics – clusters of destinations

(shipping points)

Current Situation(simplified)

Alternative situation(simplified)

Width-Folio

Widthcutlot

580584590593---------------------------------------------------700

1750176217801789---------------------------------------------------2110

Reels-width

A

Reels-width

B

Reels-width

C

Reels-width

D

10-c

m I

nter

vals

Width-cutlot

1750176217801789---------------------------------------------------2110

10-c

m I

nter

vals

Reelswidth

A

Reels-width

B

Reels.widthe

C

+ less wip items (smaller number)+ reels better covered with orders+ less setup times at cutters level+ less MTS / finished goods stock+ less planning work

+ less trim loss+ more safety at nominal stocks+ better Kombinierbarkeit bei PE-Schnittopt.

A

B

C

D

Current Situation(simplified)

Alternative situation(simplified)

Width-Folio

Widthcutlot

580584590593---------------------------------------------------700

1750176217801789---------------------------------------------------2110

Reels-width

A

Reels-width

B

Reels-width

C

Reels-width

D

10-c

m I

nter

vals

Width-cutlot

1750176217801789---------------------------------------------------2110

10-c

m I

nter

vals

Width-cutlot

1750176217801789---------------------------------------------------2110

10-c

m I

nter

vals

Reelswidth

A

Reels-width

B

Reels.widthe

C

+ less wip items (smaller number)+ reels better covered with orders+ less setup times at cutters level+ less MTS / finished goods stock+ less planning work

+ less trim loss+ more safety at nominal stocks+ better Kombinierbarkeit bei PE-Schnittopt.

A

B

C

D

The geographic analysis shows a different pattern

from the indent bsuiness:

Stock replenishment volumes focussed on several

geographic regions in Germany

Presentation KC


PRESENTATION

Supply Chain: project abstracts


Consumer goods (Non-Food)Site 500 empl.

High inventories, much obsolete materialhowever supply / delivery difficultiespoor hitrate

Evaluation RM / WIP / FG – stocksOptimisation range of coverage, reduction order release bucket sizes and -leadtimesSavings 1,6 Mio Cash resp.350 K€ (P/L)p.a.

Feasibility study about partial substitution ofMTS-deliveries by MTO-shipments to EasternEuropeCompetitive edge established,Profit increase 1.000 K€/a

Training, process trim (lean)Changes in organisationReduction claim handling to 4days at same cost level => image improvement

Division was striving for competitive edgesvia shorter leadtimes and less shippingcosts for customized products to EasternEurope

Technical support hatbad image in the marketClaim handling took more than 30 days

Process industry2 sites 1.700 empl.

B2BSite 900 empl.

Presentation KC


PRESENTATION


Others….

Perishables

Durables




Business Position


StrategiyFormulation

StrategicPlanning

Advising, Workshops



ServiceEngineering


Interim Management

Lean production

Lean SC / logistics

Lean office / mgmt

Analysis, training





Lean Transformation


Lean Transformation

Servi

ce fi

elds

Met

hods

Servi

ce fi

elds

Met

hods

Presentation KC


PRESENTATION

Prozess-Optimierung / Lean Transformation

1. Lean Transformation (TPS)

Production, SC/ Logistics, Office/ Management

Layout, material flow

Equipment efficiency (OEE…)

Setup times / changeover times

Visual management

Housekeeping

Quality

Pullsystems / Kanban

Optimisation of inventories

Optimisation of purchasing, procurement

Throughput times

Order-to-delivery process

Streamlining of interfaces

Span of supervision

2. Approach

Analysis

Company check KPI's (classic)

Key products and processes


Training

Counterparts

Workshop participants, (operators)

Evaluation of human potential (middle and lower mgmt)

Implementation

Blitz-Kaizens (1-2 weeks) interdisciplinary workshops

resp. physical transformation on the spot

Follow up structures

Measurable success

Sustainability

ROI of 3:1 up to 15:1

Guarantee of profitability

Presentation KC


PRESENTATION

Lean transformation: examples 1

Assessment 'Lean' status

Training Housekeeping

1

2

3

4

5

5S

Standardized Work

Visual Management

Kaizen

Flexible operations

Kanban Quality/Scrap

Preventive Maintenance

Poka Yoke

Inventory Levels

Layout

1 - World Class2 - Advanced Lean3 - Beginning Lean4 - Traditional Manufacturing5 - Will Not Make It

SeparateSeparate items into

runners, repeaters and strangers

SortA place for everythingand everything in its

place.

ScrubKeep equipment, tools and working area neat and tidy. It‘s a team responsibility.

StandardizeSet aside time and establish

standard procedures for housekeeping!

Presentation KC


PRESENTATION

Lean transformation: examples 2

Quantification projects

Blitz-Kaizen-participants

Min. Expected Expected Min. Expected Expected

Inventory Inventory Reduction 80,000€ 80,000€ 1,600,000€ 1,600,000€

Logistics Administration 30,000€ 36,000€ 30,000€ 36,000€

Total Annualized Overhead: 110,000€ 116,000€ 1,630,000€ 1,636,000€

Scrap Unit A 35,000€ 42,000€ 35,000€ 42,000€ Scrap Unit B 126,838€ 152,205€ 126,838€ 152,205€ Scrap Unit C 35,966€ 43,160€ 35,966€ 43,160€

Total Annualized Material: 197,804€ 237,365€ 197,804€ 237,365€

Floor Downtime & Setup Direct Labor 1,633,800€ 1,960,560€ 1,633,800€ 1,960,560€ Floor Downtim & Setup Machine expense 2,108,732€ 2,530,479€ 2,108,732€ 2,530,479€

Total Annualized Labor: 3,742,532€ 4,491,039€ 3,742,532€ 4,491,039€

Grand Total Annualized: 4,050,336€ 4,844,403€ 5,570,336€ 6,364,403€ To

tal

Lab

or

SavingsAnnualized

Cash Flow IncreaseAnnualized ProjectsArea

Ove

rhea

dM

ater

ial

• Alain COINTE

• Jean-Daniel DEREPPE

• Jean-Marie KLYPKA

• René KOTALA

• Gaspard POLIZZI

• Daniel PRUVOST

• Joseph RIDOLFI

• Gerard SIBILLE

…une équipe avec une ancienneté 24 (mini) à 33 ans (maxi) dans la Société..

Presentation KC


PRESENTATION

Lean Transformation: examples 3

Smoothing the workload

Reduction of changeover times

20

40

60

80

100

120

Operators Operators

20

40

60

80

100

120

2

13

4 56

7

75 75

3

4

5

6

7

Before After

Total empl. Cycle time = 40 + 30 + 15 + 15 + 10 + 10 +20= 2 empl.Takt time 75

12

Presentation KC


PRESENTATION

Lean Transformation: project abstracts


Metal, automotive supplierSite 650 empl

Poor equipment efficiency (OEE)Long setup times at changeoversin production lines

Blitz-Kaizen 1 weekReduction change over times by 34%=> Profit gain 216 K€ p.a.

Review stock strategyBlitz-Kaizen 1 weekRedefinition of minimum stocks etc1,2 M€ Cash Flow =220 K€ Savings (P/L)Improved preparedness to deliver

Blitzkaizen 2 weeksReduction inventories finished goods860 K€ Cash Flow = 160K€ Savings

Liquidity squeeze,Delivery problems inspite ofHigh inventories

Delivery problems inspite ofHigh inventories

Synthetics,Consumer goodsSite 450 empl.

Synthetics, Lightings2 sites 700 empl.

Presentation KC


PRESENTATION

Cooperations

KÜRSCHNER CONSULTING is cooperating with these companies / organisations:

Argo Consulting

Base Consulting

German Turnaround Management Association (GTMA)

TIP – Trierer Institut für angewandte Psychologie

Marketing Circle Munich

IHC International Management Consultants

Anwaltssozietät Fasshauer (lawyer)

………………

Presentation KC


PRESENTATION

Market and competition

Competition Pro's / Con's

BIG 10

Medium and smaller

Consultancies

Solo consultants

+ Excellent contacts to decision makers

+ Extensive know how

+ High performance- Expensive- Mass team, solutions 'off-the-shelf'- Lack of social competence (often)- Lack of flexibility

+ Good contacts to decision makers

+ Good know how in selcted areas

+ High performing teams- sometimes biased special know how- not independent- Hihg fixed costs- Lack of flexibility

+ Low fixed costs

+ Flexible

+ Special know how

+ independent- few contacts to decision makers- limited width of know how

KÜRSCHNER CONSULTING + network

First class know how Expertise of many years Internationally operating Flexible Comprehensive support Adequate pricing Social competence

© 2006 by kürschner consulting unauthorized copying prohibited strategy, processes, supply chain -...

Documents

presentation kc

competition slide

business fields industries

costefficient supply

countries kc partners

benchmarking optimisation

client companies

field of strategic positioning