The Impact of the Chain Process
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The document discusses the transition from standalone processes to a chain process within Terberg, a company specializing in automotive solutions. It emphasizes the importance of value chain optimization, internal logistics, and the implementation of lean principles to improve performance and transparency across departments. The chain process aims to enhance communication and operational efficiency, ultimately leading to significant improvements in delivery and production outcomes.
The Impact of the Chain Process
- 1. Celosphere The Impact of the Chain Process
- 2. Introduction Jorrit ter Horst Data Science Consultant MSc. Industrial Engineering and Management
- 3. Agenda Terberg at a glance From standalone processes To the Chain Process The impact of the Chain Process AGENDA
- 4. Terberg at a glance Specialist Automotive Solutions Active in 6 Industries Special Vehicles Environmental Truck modification Car modification Truck-mounted fork lift vehicles Leasing SpecialVehicles Environmental TruckModification Carmodification Kinglifter Leasing
- 5. Terberg at a glance Worldwide Presence 2500+ 28 companies € 1bn 150 years150
- 6. “In God we trust. All others must bring data.” W. Edwards Deming (statistician)
- 7. From standalone processes Purchase to Pay (P2P) “How to improve supplier delivery performance?” Accounts Payables (AP) “How to improve our FTR score of invoices?” Order to Cash (O2C) “How to decrease our sales effort and increase our sales return?” Accounts Receivables (AR) “How to get our money with the least effort?” Warehouse Management (WHM) “How to get our products on time to the customer?” Production (PROD) “How to decrease the throughput time of production?” Optimizing the standalone processes per department
- 8. To the Chain Process Add the LEAN principles: 1) Identify Value 2) What is value 3) What is waste (value stream mapping) “ Which activities contribute to the value in the chain? ” Terberg = Engineer to Order (EtO) Value chain: Sales Engineering Purchase Production Delivery Why use a chain process next to the standalone processes?
- 9. Chain Process Sales Lead Order Opportunity QuoteProspect Engineering BOM Delivery LogisticsProduction Sales Forecast Customer Purchasing Planning History %
- 10. Chain Process Insights in the value chain • Transparency over the value chain of the company • Platform to discuss relation between the departments • Determine handshake moments (PPI between departments) • Common level of truth to talk about the facts Focus on your improvement projects • Determine the highest improvement potential within the value chain What will be our next step to success? How does the Chain Process brings the added value?
- 11. “If we have data, let’s look at data. If all we have are opinions, let’s go with mine.” Jim Barksdale (former Netscape CEO)
- 12. The impact of the Chain Process Internal Logistic Performance Situation: New warehouse with delivery issues Start with: Insight into internal delivery process for goods ‘On time in production/spare parts’ Use case of the Chain Process Before
- 13. The impact of the Chain Process Translate insight into action: • Tweak warehouse process • Create focus • Improve internal communication Use case of the Chain Process After ↑30% ↑80%
- 14. The impact of the Chain Process 1) Extend the chain model 2) Embed the chain model as a monitoring tool 3) Leverage the chain model by asking questions like: • Are the sale orders on time available for engineering and procurement? • What is the impact of reengineering on our production output? • What is the impact of delayed purchase orders on our sales delivery? Next steps
- 15. The impact of the Chain Process Example: Chain Process overview Dummy data!!!
- 16. The impact of the Chain Process Example: Chain Process overview Dummy data!!!
- 17. The impact of the Chain Process Example: zoom in on sales order ‘to late’ Dummy data!!!
- 18. The impact of the Chain Process Dummy data!!! Example: zoom in on sales order ‘on time’
- 19. Q&A