value chain road map-general approach
TRANSCRIPT
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8/6/2019 Value Chain Road Map-General Approach
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Value Chain and Strategy Formulation
Linking Strategy to Action
General Approach and Road Map For Implementation
Know your Business, Build your Strategy
BAIRP FrameWork
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Know Your Business, Build your Strategy
[email protected] Mohamad Nazmi2011
Contents
Objectives of The Presentation
Schematic Diagram of the Approach
Detailed Diagram of the Approach Five Areas-Five Concepts-Success Criteria
Steps Detailed (Build)
Steps Detailed (Assess)
Steps Detailed ( Improve) Example on Prioritizing
Steps Detailed ( Review)
Steps Detailed ( Plan)
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Know Your Business, Build your Strategy
[email protected] Mohamad Nazmi2011
Objectives of this Presentation
This presentation aims to present the full road map for the approach
suggested to build the Main activities value chain and link it to the
Strategy Map of any organization.
The Presentation is directed to strategy representatives, whom can
implement the approach to validate their strategy linkage to the
overall strategic directions of Organization.
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Know Your Business, Build your Strategy
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Schematic Diagram of the Approach
Build Assess Improve Review Plan
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Know Your Business, Build your Strategy
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Detailed Diagram of the Approach
Understand the OrgStructure
Prepare Datacollection Sheets
Conduct AwarenessSessions to Units
Heads
Distribute the forms
Gather the formsand validate
Create the ValueChain Diagrams
Identify Products andServices
Select the Criteria
of DefectsCreate Headaches
Sheets
DistributeHeadaches Sheets
Gather and Analyzeheadaches
Identify Defects
Set initiatives tomitigate theheadaches
Create Action Plans
for initiativesDistribute tasks on
employees and linkto PA
Follow Up on ActionPlans tillCompletion
Set & ImplementInitiatives
Measure theCustomersSatisfaction
Identify No-ImprovementDefects and re-assess initiativesand inputs status
Assess Defects Status
From Lines ofBusiness andproducts set themission
From the Missionbuild theperspectives
From theperspectives buildthe strategy story
From Strategy Storybuild Objectives
Create The Strategy
Build Assess Improve Review Plan
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Five Areas-Five Concepts-Success Criteria
EFQM
Excellence Model will govern all of thestages
RADAR will be used alwaysKPIs will be set to all project stages and
action plans shall be metWe will benchmark when applicable
and possibleWe will keep all of the evidences in a
file
Project Team
We will deal with the information in aconfidential manner
We will transfer knowledge to all We will not be biasedWe know that People know more so we
will listen to themOur role is to change but not to force
the change, people shall buy in
IT
IT solutions will be used when necessaryOnly
IT solutions can not replace people We think business not machines Computers are faster but not smarterWe will use technology to facilitate the
project progress and to document
People
We are all involvedWe dont believe in the ugly baby
syndromeWe will implement improvement
We will not hide information and wewill be working as a transparent team
The project is a Priority on our daily list
Leadership
Leaders are Convinced to LaunchLeaders are Ready to Champion the
ChangeLeaders are willing to improve Leaders will delegate authorities
Leaders will spare some good time forthe project
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Know Your Business, Build your Strategy
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Steps Detailed Assess
Build Assess Improve Review Plan
Select the Criteria of
Defects
Identify Criteria forDefects, such as:
Time Delay
Missing Information
Missing point ofcontact
inconsistent quality
Prepare Inputs
headaches Sheets
Prepare Inputsheadaches sheet, for theunits to evaluatesuppliers and the sheetwill have:
Unit name
Product Name
Supplier
InputsImportance (Out of 5)
headache
Frequency%
Prepare outputs
headaches Sheets
Prepare outputsheadaches sheet, for theCustomers to evaluatethe units products and
the sheet will have:
Customer Name
Product Name
Importance (Out of 5)
headacheFrequency%
Overall Satisfaction
Meetings and Datacollection
Conduct awarenesspresentation or conductmeetings to explain tocustomers and units howto fill the form
Agree on time to collectforms and collect theforms
Categorize theheadaches per productfor customers and persupplier for the units
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Steps Detailed Improve
Build Assess Improve Review Plan
Analyze Headaches
Use the followingformula for the OutputsHeadaches sheet perproduct:
Weight=Avg.((Importance +(Frequency%*5))perproduct/Headache/customer)
List products weight inascending order
Highest weight will bethe first to start withthen lower and lower inweight*
Root-Cause Analysis
Follow the product valuechain diagram reaching tothe activity producing theproduct
link the Activity to a unitor an employee
check if there is an Inputheadache for the product
Ask the Activity owner if
he/she believes that theinput headache (If Any)will cause this headache
If not Analyze theprocess and come with aninitiative
Implementation
If the problem is caused byan Input headache thencreate an SLA with supplier
if the input is caused byan internal issue (root-caused) create an actionplan for the initiative thathas the following:
Detailed tasks
Time Plan Budget if needed
Risks expected
Action Plan shall beimplemented andmonitored by APPR.
Reporting APPR will be sent fromOwner to the projectteam
project team willprovide theManagement by an ESR
Monthly meeting Shallbe conducted to reviewthe APPRs and
recommendations shallbe prepared by teamand discussed withmanagement
* Example is Provided in the next slide
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Example on PrioritizingProduct Customer Importance Headache Frequency% Weight
A 1 3 AH1 30% =3+0.3*5=4.5
A 1 3 AH2 60% =3+0.6*5=6
Total Weight Avg.(5+6)=5.5
B 2 4 BH1 40% =3+0.4*5=5
B 3 2 BH3 30% =2+0.3*5=3.66
Total Weight Avg.(5+3.66)=4.33
Notes: You Can Add Weights (%) for your customers according to their importance
You Can Add Weights (%) for Importance and Frequency according to its importance
So We Will Start Working on Product A as it has more Weight (So budgets and Manpower
will be directed to it)
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Steps Detailed Review
Build Assess Improve Review Plan
Focused group Analysis
Re-send the headaches Sheet toyour customers whom hadheadaches in the past
Review and analyze theheadaches again (If Any)
Review the initiatives
Gather all progress reports of theinitiatives
According to the DGEP RADAR,analyze the effectiveness of theApproach
Meet the initiative owner andanalyze the root-cause again
Implement the new initiatives
When to do the same againIt is not advised to conduct the samepractice more than once per year (Valuechain analysis)
It is advised to measure the satisfactionof your customers on general termsevery 6 months
Initiatives for improvement from nowon shall be linked to the value chaindiagrams
A Week that is called KAIZEN week shallbe implemented every six months togather initiatives from the employees
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Steps Detailed Plan
Build Assess Improve Review Plan
Mission represents our lines of business which can be gathered from the products andactivities list
Example: We provide Services Directly to customers and we do not generate revenue,and at the same time we are doing so many technical processes that depends on ouremployees skills (Human Resources Based processes)
So the Mission Might be: Meeting Customers Satisfaction through Our Lines OfBusiness, Implementing the highest standards of requirements of services that we
provide, while ensuring Financial Budget terms is available to effectively improve
our Human Capital
Mission Statement
Your Strategy Map shall be consisted of themes, and objectives, your Themes are themain Functions on the Value Chain like shown in the next slide and the objectives arethe unresolved issues in each function or planned next issues
Strategy Map
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Steps Detailed Plan
Build Assess Improve Review Plan
OUTCOME
Theme ISSUE
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Maintain or After-sales
List all major activities
here
Accounting
IT
AuditQuality Assurance
Median
HR
PMO
SPPM
Tender and ContractThesequenceofvaluesaddedtothe
Organization
Follow up or
Supervise
List all major
activities here
Build or Sell
List all majoractivities here
Median
PR
Legal Affair
Knowledge Management
Support Services
2
3
4
Outcome of the organization
Median
Median
Outcome of the organization
Outcome of the organization
Outcome of the organization
Outcome of the organization
Outcome of the organization
Outcome of the organization
Outcome of the organization
Design or Procure or
Buy
List all major activitieshere
1
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