Bill ClintonVice President - Merchandising

Process Management

Process Management

• Learning Objectives– Work Systems Design– Key Work Processes– Work Process Design– Work Process Management

• Process Improvement– Results

• Design and Innovate– Strategic Planning Process

• Strategic Objectives• SWOT• Stakeholder Key Requirements (SKRs)• Customer Complaint Management and Continuous

Improvement Projects– Modern Management Practices

• ISO 9001• Lean• Six Sigma• Baldrige Business Model

Work Systems6.1 a

Merch - andisingMerch - andising LogisticsLogistics

Workforce Focus

Workforce Focus

Order TakingOrder TakingMarketingMarketing

Facility & Equipment

Mgmnt

Facility & Equipment

Mgmnt

Performance Excellence

Performance Excellence

Information Systems

Information Systems

Financial ServicesFinancial Services

Key ProcessesKey Processes

Support ProcessesSupport Processes

Work Systems6.1 b

LogisticsLogistics

StockingLAP-5

StockingLAP-5

Damaged Product

Damaged Product

Tote FixingTote

Fixing

StockingStocking

Stocking Admin

Stocking Admin

Cycle Counting

Cycle Counting

Department Process

Section Processes

Area Processes

SlottingSlotting

Work Systems6.1 b

• Emergency Readiness– Integrated Contingency Planning

• Business Continuity Planning• Disaster Recovery Planning• Risk Analysis (Severity and Likelihood)• Recovery Time Objectives

Work Systems6.1 c

– Develop Action Plan • POSEC

– Plan – Organize – Staff – Execute - Control

– Stakeholder Requirements• Strategy to Meet Stakeholder Key Requirements• Measurements• Goals and Benchmarks• Process Documentation• Process Deployment and Training

Work Processes6.2

• Identify the process strategy• Template for process development• Identify Stakeholder requirements• Identify interrelated processes

Process Summary 6.2 a

Work Instructions 6.2 a

• Where the hands-on work happens• Step-by-step guide to the process• Complexity depends on the process

Section Performance

Measure

Section Performance

Measure

Company ScorecardCompany Scorecard

Department Scorecard

Department Scorecard

Area Process Measures

Area Process Measures

Supervisor Daily ReviewSupervisor

Daily Review

Monthly SLT Review

Monthly SLT Review

Monthly Review with

President

Monthly Review with

President

Monthly DLT Review

Monthly DLT Review

Process Management 6.2 b

MidwayUSA Process Balanced Scorecard

Key Process 20092010 YTD

Area Process Measures2010 YTD

February/Q1

Marketing 99% 97%

Web Marketing 88.5% 88.5% Publications 100.0% 100.0% CRM 99.2% 99.2%

Sponsorship, Advert & PR 90.7% 90.7% GunTec 99.0% 99.0% Training & Development 100.0% 100.0%

Logistics 93% 99%

Stocking 100.0% 100.0% Repack 94.0% 94.0% Receiving 99.0% 99.0% Shipping 100.0% 100.0% Warehouse 100.0% 100.0% Product Control 100.0% 100.0% Returns 100.0% 100.0% Training & Development 100.0% 100.0%

Process Management 6.2 b

LO Process Scorecard  Today’s

Date: 3/1/10 

Area ProcessSection Process

Measures2009 2010 YTD February Q1EOY Actual Goal Actual Goal

Shipping Same Day Shipping 98% 99.5% 99% 99.4% 99% Stocking Cost per Invoice $1.55 $1.51 $1.52 $1.51 $1.52  Cost per Line $3.31 $2.94 $3.00 $2.94 $3.00  Stocking Cycle Time N/A Coming Coming Coming Coming             

Repack Cost per Invoice ($0.65) $0.52 $0.52 $0.00 ($0.65)

  Repack Labor Variance 22.4% -11.2% +/- 10% 0.0% +/- 10%

             

Receiving Cost per Invoice $1.37 $1.34 $1.34 $1.00 $1.34   Cost per Line $3.77 $3.69 $3.64 $3.00 $3.64  Receiving Same Day 99.4% 98.4% 95.0% 0.0% 95.0%

Process Management 6.2 b

Sample Data

Shipping Process Balanced Scorecard

Section Process Measures 2008 20092010 YTD Feb-10

Actual Goal Actual Goal

Quality Shipping Pkg QA 1699.7% 99.9% 99.5% 99.9% 99.5%

  Shipping Accuracy 96.79% 97.3% 95.5% 97.5% 97.4% 97.0%

  Picking Success n/a 98.9% 99.2% 99.0% 99.3% 99.0%

  Batch Pick Success n/a 99.80% 99.9% 99.0% 99.9% 99.0%             

Service Same Day Shipping 98.29% 98.9% 99.8% 99.0% 99.8% 99.0% 

           

Cost Cost per Invoice $4.80 $3.62 $3.62 $3.62 $3.59 $3.62

  Dir Labor $$ per Inv   $2.00 $2.00 $2.15 $1.98 $2.15

  Ship QC Invoices / Hr 20 26 37 30 39 30

  Picking Lines / Hour 137 163 163 160 180 150

Process Management6.2 b

Sample Data

Individual Performance Measure: Charlie HestonArea Process Section Process

Measures2010 YTD February/2010

Actual Goal Actual Goal Stocking Stocking Lines / Hour 20.1 15 NA 20

Receiving Rcvng to Cart LPH 32 30 32.8 30

Product Control Physical Inventory Training

Yes NA NA NA

Shipping ShipQC Lines / Hour 38.64 30 39.6 30 Picking Lines / Hour 245 150 267 150 Picking Error Rate 3.20% 3.00% 2.70% 3.00% Shipping Pkg Quality 79.70% 79.50% 80% 79.50%

Training & Development Reliability 98.68% 97.40% 98.00% 97.40% Job Knowledge 15 10 15 10Process Mgmnt CoC Violations 0 0 0 0

Process Management 6.2 b

Sample Data

Process Improvement 6.2 c

• Identifying the need – Monitoring, Measurement, and Review– Strategic Planning Process– Development of Action Plans to achieve

Strategic Objectives– SWOT– Customer Complaint Management Process

• Improvement Tools– Lean Projects– Six Sigma Projects– Action Plan Charters

Results 7.5

Lean Project Implementation

Sample Data

Results 7.5

Lean Project Implementation

Sample Data

Results 7.5

Bringing it all together…

Questions?

Thank you!

Our best wishes to you in your pursuit of performance excellence!

For more information:

www.AmericaNeedsBaldrige.com

qms@midwayusa.com