Supply Chain News - Cool Tool

In my last blog entry I bemoaned my inability to figure out how to aggregate business news stories that were specific to supply chain issues. As I was comparing results from Bing (Microsoft's new search engine which is much better than I expected), Google , and Yahoo I ran across a news article from Silobreaker.com. I may be one of the last to discover it but the website was able to provide references to a number of articles that were relevant and did not appear in traditional searches.

The site has a number of topics from drop down lists. While I couldn't find supply chain management in the topic areas when I performed an initial search it suggested supply chain, supply chain management, and Supply Chain Logistics Corporation. When I searched on the one of the "keyphrases" I was presented with a pretty decent collection of current and relevant news.

If you are a student, an investor, or a manager this site might be very interesting to explore - I will.

From the site:

Silobreaker is an online search service for news and current events that delivers meaning and relevance beyond traditional search and aggregation engines. Its relational analysis and explanatory graphics provide users with unparalleled contextual insight into the news stories of the day.

More than a news aggregator, Silobreaker provides relevance by looking at the data it finds like a person does. It recognises people, companies, topics, places and keywords; understands how they relate to each other in the news flow, and puts them in context for the user. The graphical search results enables users to quickly and easily understand connections, trends and topics or navigate deeper into the most relevant stories for them. No other news search service provides such an extensive suite of contextual tools in the industry today.

Supply Chain / Value Chain New Sources

Where do you go for supply chain related business news? I am not talking about "news" stories about the technology of supply chain management. I am referring to the business cases and reports that relate to how a company's performance has been effected by supply chain issues. If I want to know how Boeing's 787 Dreamliner supply chain concerns are driving their business forecast or how it may have impacted their purchase of Vought's production capability in North Carolina, I almost have to know about it before I start my research.

Why do I want to be able to search this way? There are two reasons. First, almost ten years ago (2000) Vinod Singhai at the Georgia Institute of Technology and Kevin Hendricks at the University of Western Ontario published findings that a reports of a supply chain malfunction led to the decline of a company's stock by 9-20%. From a purely selfish perspective, this could be an intriguing factor in an investment strategy. Second, reports like Businessweek's Li & Fung: A Factory Sourcer Shines can identify best practices and show how those practices can lead to improved performance. (It may also identify companies, like Liz Claiborne,Toys 'R' Us, and Timberland, that may have significant supply chain risk).

I am certainly not a search expert but sometimes that might be a good thing. In my search for an aggregator of business news that reports supply chain issues I found a beta site for Business Week magazine (I am a subscriber but you don't need to be to access the site) that discusses supply chain topics (not strictly supply chain technology and processes). I also ran across a really intriguing business aggregator called Streetread (but it appears that you can only aggregate news by company - not topic.

So far, my most successful searches have been performed by assembling a search string (business news supply chain) specifying the day and then ignoring any supply chain specific domain. Best sources have been BusinessWeek, Reuters, CNNMoney (Fortune), and IndustryWeek.

Link Correction and Apologies

APQC was kind enough to let me know that my link to their site (favorite websites - not the survey lists) was broken. It has been updated. As a result, I am currently reviewing and updating all of the links and info on the blog. I will also be revisiting the benchmark and survey lists.

Return to the Blogosphere and Supply Chain Survey Update

Supply Chain / Value Chain Research - An Update and "Last Call"

(Since there is some reason to believe that this research will be long-term and an evolving measure of practice and performance, this might not be the last call for responses - just the last call for this instrument). As many of you already know, the survey builds on Dr. Sanjay Menon's delphi study of a few years ago. This update will provide a foundation for further research.

I reminded you in my last entry that with surveymethods.com you can begin the survey, leave the site, and then return to complete it without starting all over again. I should have also mentioned that for those of you who leave an incompleted survey (and forget to return), the incompleted survey can skew the numbers when analyzed during the peer review process. (So please, if you have not yet finished your survey, please log in and complete it).

For those of you who have not yet started your response, we would be pleased to include your response if you can complete it in the next several days. We particularly welcome practitioner input. If you are just now discovering the survey you can read the announcement of its launch here. And if the links don't work you can paste the link to your web browser. (http://www.surveymethods.com/EndUser.aspx?87A3CFD080C0D5D2)

Thanks again to everyone who is collaborating in this research.

Supply Chain / Value Chain Research - An Update

I wanted to send a word of thanks to those of you who have participated in the Supply Chain/Value Chain survey so far. With well over 100 respondents in the first few days we are in the process of making the first analytical pass of the data. The speed with which you have responded has been gratifying, particularly given the business demands associated with the holiday season and the end of the year.

A special thanks to the Value Chain Group for helping get the word out on the survey.

For those of you who started but then had to interrupt your survey, we will be looking at completed surveys again on December 12 so if you can complete your entry by then, your response will be included in the initial analysis. (As you know, with surveymethods.com you can begin the survey, leave the site, and then return to complete it without starting all over again). For those of you who have not yet started your response, the good news is that our initial estimate of approximately 20-25 minutes to complete the survey has been confirmed by a number of respondents.

If you are just now discovering the survey you can read the announcement of its launch here. And if the links don't work you can paste the link to your web browser. (http://www.surveymethods.com/EndUser.aspx?87A3CFD080C0D5D2)

Thanks again to everyone who is collaborating in this research.

Supply Chain Research - An Addendum

Yesterday I asked for your participation in some value chain / supply chain research that I am conducting with Dr. Sanjay Menon of Louisiana State University - Shreveport. I failed to let you know that unlike some research cycles that take weeks and months, this research is designed to move at the speed of business. Fast.

The first review cycle of data will take place within a matter of days. While the current plan is to let the survey evolve in scope and breadth, the significance and direction of the continuing research will be shaped by the early respondents.

So, in the next 20 minutes, you may help guide research that will be important to businesses in multiple industries, executives in multiple disciplines, and organizations in multiple geographies.

If you are a supply chain or value chain practitioner, a consultant, a technology provider, or an academician your participation in the research is welcome here. (http://www.surveymethods.com/EndUser.aspx?87A3CFD080C0D5D2)

Supply Chain Survey Research

A short while ago, I was flattered to be approacahed by Sanjay Menon, PhD, Lousisiana State University - Shreveport who was interested in continuing the supply chain research he began a few years ago. His original research used an expert panel (Delphi) to frame some basic questions regarding supply chain management - including developing a snapshot of best practices and basic management trends.


Dr. Menon is revisiting his research questions (with limited assistance from me) and expanding them to include: 1) how different people perceive supply chains and value chains, 2) how supply chain considerations drive human resource practices, 3) how organizations address performance measurement (KPIs) and who is responsible for those measurements, and 4) what the perceived state of the art in supply chain management today.


Unlike many surveys I have seen and participated in, this survey was designed to answer some very basic questions and can be completed by almost anyone in about 20 minutes. (I don't know is a valid answer for most questions). The results of the survey are intended to be published in academic, peer-reviewed publications. There are no sales or marketing efforts associated with the survey and you are invited to participate.

For the friends and colleagues I made during my tenure as the Chief Technology Officer of the Supply Chain Council, I encourage you to participate in the survey to help to frame answers for questions we have been asking since the 1990s. For those of you who are seasoned in value chain and supply chain practice, I would ask you to contribute your knowledge to help understand how to link management practice and measurement to the managers and exectuves who are responsible for their planning and execution.

What is your reward for participating in the survey? Your anonymity will be protected. You will not be put on a never-ending mailing list. You will receive a summary of the findings and there may be an opportunity for you to participate in additional research.

Thanks and the link to the survey is here.

In Search of the Perfect Order Webinar

As I mentioned in a previous post, the Value Chain Group was kind enough to host one of my webinars - this time, an overview of Perfect Order Fulfillment. In the one hour that we devoted to the topic, we were able to discuss how perfect orders are calculated and some of the issues associated with capturing and using the measurements.

As a special note, in the webinar I mentioned a survey that Louisiana State University at Shreveport's Sanjay Menon, PhD, and I are conducting on metrics, supply chain management, and human resources. If you are interested in this research please feel free to send him (or me) a note.

The webinar introduces the use of a powerful metric that has been termed a Key Performance Indicator (KPI) by practitioners, research organizations, academics, and consultants. While the measurement of Perfect Order Fulfillment may be the state of the art in fulfillment measures, it can be difficult to implement. Failing to reach consensus on the definition of the order, the required delivery times (what constitutes early/late), or quantities (e.g.,blanket order agreements, call-offs) can make any measurement impossible. Imperfect execution (inconsistent purchase order agreements, failure to collect delivery information, or an inability to link invoice accuracy with the on time in full delivery of a customer's order) can make it impossible to measure perfect order fulfillment but other measures (On Time In Full, Fill Rate, etc.) may provide acceptable alternatives.

The VCG recorded the webinar and has passed along a link to for those who may have missed the original broadcast. The recording includes the PowerPoint presentation and an audio recording of the event. The link to In Search of the Perfect Order uses GoToMeeting and will ask for an email address prior to launching a Windows Media file that will play the audio recording and show the accompanying PowerPoint presentation.

In Search of the Perfect Order - Webinar Invitation

A month ago I presented a webinar on Measuring, Managing, and Improving the Extended Value Chain for the Value Chain Group. About 40% of the attendees who responded to survey questions indicated they were interested in additional information on metrics, KPIs, and benchmarking. Statistics indicate that readers of my blog are frequently attracted by the entries on those same activities and the list of benchmarking resources that I maintain.

On November 6, I will present another webinar, this one focused specifically on a KPI / measurement that has attracted significant attention in the last few years - Perfect Order Fulfillment. In the hour long webinar, I hope to address the challenges in defining and measuring the Perfect Order and how "metrics maturity" might progress from fill rate to delivery performance to on time in full delivery to perfect order fulfillment. While we will talk about how to calculate the metrics, the webinar is intended to discuss the issues in applying these service level metrics across the value chain (suppliers - customers). We will also touch on how superior or substandard performance may effect the financial performance of members of the value chain.

I was very pleased with the number of participants we had in the last webinar and if this one is received as well as the last, I hope to follow it with several metric-specific sessions. The VCG Invitation follows including the link if you choose to participate:

You are invited to join our VCG Webinar:

In Search of the Perfect Order

Join us on 6 November from 11:00 AM to 12:00 PM ET US (16:00-17:00 GMT)

Space is limited.Reserve your Webinar seat now at:https://www1.gotomeeting.com/register/695292800

In Search of the Perfect Order is a webinar introducing a key performance indicator (KPI) that has soared in popularity in recent years. Perfect Order Fulfillment has been touted as the customer service delivery metric by state of the art companies.

For many companies, the costs associated with an accurate measurement of Perfect Order Fulfillment may be prohibitive. If you are building a business dashboard, leading a value chain team, trying to understand how business measurements can drive business design and performance, or considering participating in a benchmarking program - this webinar may provide some important insights.

Large and small businesses recognize that achieving consistent, superior results requires managers and executives to monitor business performance and take decisive steps to maintain or improve outcomes. Strategic partnerships, go-to-market-strategy, and business plans are built on service level agreements that use business performance metrics to specify the commitments of the business partners. "Standard" contracting terms employ measurements terms that are often not well-defined nor standard. World-class companies are investing in business intelligence/analytic applications, employing "dashboards," and investing in benchmarking programs. At the heart of these efforts is consistent and meaningful definition of what and how to measure.

This webinar focuses on the implementation questions of employing a perfect order metric. How is a perfect order calculated? What is the financial impact of less than perfect orders? Should you use On Time in Full Delivery or Perfect Order Fulfillment as your primary service level metric? How does a fill rate metric compare to Perfect Order Fulfillment? Where are the common failures in measuring Perfect Order Fulfillment across an extended value chain?

Scott Stephens will be leading the webinar based on his experience in defining and employing the metric in multiple industries, multiple geographies, and across the extended value chain. More about our Speaker.

Sponsor: Value Chain Group, Inc. See http://www.value-chain.org/

Title: VCG Webinar: In Search of the Perfect Order
Date: Thursday, 6 November 2008
Time: 11:00 AM-12:00 PM ET USA (16:00-17:00 GMT) Time Zone Converter


System RequirementsPC-based attendeesRequired: Windows® 2000, XP Home, XP Pro, 2003 Server, Vista

Macintosh®-based attendeesRequired: Mac OS® X 10.3.9 (Panther®) or newer

Webinar Link - Measuring, Managing, and Improving the Extended Value Chain

Recently I was privileged to present a basic introduction to using metrics and process mapping as tools and techniques to measure, manage, and improve the extended supply chain. The Value Chain Group was kind enough to invite me to present my thoughts on how to use a business-centered, metrics driven approach for value chain / supply chain improvement.

Besides hosting the webinar, the VCG recorded it and have posted it with a link on their website. They were also kind enough to conduct a brief survey regarding how the participants received the presentation and provided me with some feedback. Intriguingly, much of the feedback mirrored the comments I heard a decade ago when a few practitioner companies were forming the Supply Chain Council. When participants were asked in what area they would like to receive additional information, about 40% indicated they were interested in additional information about metrics and KPIs, 40% indicated they were interested in additional information about processes and value chain mapping and modeling, and the rest were interested in specific implementation techniques and tips.

I hope to continue to assemble information and resources that might help new value chain practitioners as well as those who are more experienced. I also hope that in the future I can work collaboratively with others in the field to share implementation experience, best practices, and case studies. Based on the feedback that I mentioned, I am working on a couple of presentations that focus on the challenges of effectively employing specific measurements across an extended value chain. I have started to put a presentation together that has a working title of: In Search of the Perfect Order (which will is focused on fulfillment metrics).

For those of you who had registered for the webinar but were unable to attend, the hour long presentation and the accompanying PowerPoint presentation can be accessed via the VCG link. There is a brief and painless registration process to access the archived presentation.

Thanks again to the VCG and thanks again for those of you who provided feedback. I would be pleased to receive additional feedback from the participants or from those who will be reviewing it for the first time.

Measuring, Managing, and Improving the Extended Value Chain Webinar

The Value Chain Group was kind enough to invite me to present my thoughts on how to use a business centered, metrics driven approach for value chain / supply chain improvement. It is a back to basics approach that focuses on the business drivers rather than the technology.

I am impressed that the Value Chain Group has opened the invitation (below) to anyone that might benefit from the webinar - not just their members. They have recognized that my presentation is model "neutral" and hopefully will provide some insights to the attendees who have little experience with value chain concepts as well as those that have considerable experience with process models like VRM, APQP, DFSS or SCOR.

VCG Invitation

You are invited to join our VCG Webinar: Measuring, Managing, and Improving the Extended Value Chain Join us for a Webinar on September 11 from 11:00 AM to 12:00 PM ET US Space is limited.Reserve your Webinar seat now t:https://www1.gotomeeting.com/register/640642420

Discussion: If you lead a business or team that has been tasked to improve the performance of your business unit, you have probably elected to use an approach that is driven by numbers. If you are a departmental leader or manager that is developing a business solution that requires collaboration with suppliers, customers, and other internal business units, you have probably been researching standards and practices that you can use. If you are a technology vendor or a consultant trying to build a business case for an IT solution or application, you have probably realized the imperative to successfully identify business drivers and processes that span sales, marketing, engineering, finance, IT, logistics, production, and customer service.

Large and small businesses recognize that achieving consistent, superior results requires managers and executives to monitor business performance and take decisive steps to maintain or improve outcomes. Strategic partnerships, go-to-market-strategy, and business plans are built on service level agreements that use business performance metrics to specify the commitments of the business partners. "Standard" contracting terms employ measurements terms that are often not well-defined nor standard.

World-class companies are investing in business intelligence/analytic applications, employing "dashboards," Measuring, Managing, and Improving Business Operations is a webinar introducing the use of business process models and metrics as frameworks for rapidly assessing and improving the extended value chain. It has been designed for those of us who are not experts in business and finance and statistics and information technology and logistics and process modeling and consulting and supply chain management.

If you are starting (or starting again) to explore a cross-functional, cross-enterprise KPI-driven approach to improving your business, this is designed to help orient you.

About our Speaker: Scott Stephens works as a consultant, trainer, and mentor with commercial and government executives, managers, and cross-functional project teams in value/supply chain management, performance measurement, and process improvement in both discrete and process industries. He has worked collaboratively with the Value-Chain Group in the past but may be best known for his contributions to the Supply Chain Council. This webinar is adapted from a workshop developed for the GPI - Global Performance Initiative (GPI), an organization dedicated to identifying and sharing measurable best practices for achieving operational excellence, particularly in the area of value/supply chain management.

From 1996 to 2006, Mr Stephens was a key contributor to the Supply Chain Council (SCC). As one of the founding members and the first chair of the Council's Board of Directors (representing Lockheed Martin), he was instrumental in establishing the Supply-Chain Council and transitioning the Council from a loose consortium of practitioners to an independent, not-for-profit trade association. For almost ten years, Mr. Stephens served as the Chief Technology Officer of the Council, working with practitioners, academicians, software providers, government organizations, and consulting companies in developing and advancing the Supply Chain Operations Reference (SCOR) Model. SCOR is a cross-industry supply-chain management reference model designed to describe, measure and analyze the performance of supply chain configurations. SCOR contains standard supply-chain process definitions, metrics, best practices, and references to enabling technology, which can contribute to SCM efficiency.

Mr. Stephens works with the world's leading organizations in industry, government, and academia in supply chain initiatives in Europe, Asia, Australia / New Zealand and the Americas. Mr. Stephens publishes and speaks frequently in international supply chain management and business forums. He is a guest lecturer at universities world-wide. He has delivered supply chain management workshops to over 2000 executives, globally and was responsible for training and certifying all SCOR instructors during his tenure as the SCC's Chief Technology Officer. He has assisted a number of Fortune 100 companies with business transformation and supply chain improvement.

Prior to establishing his business, and serving as the full time Supply Chain Council Chief Technology Officer, Mr. Stephens worked at Lockheed Martin with responsibilities in: all phases of the value chain (pre-sales, sales, design, production, and delivery through support and warranty management), development and implementation of supply chain strategy and technology to improve corporate competitiveness, the identification of commercial supply chain management best practice and off-the-shelf technology in support of DOD programs through the design and delivery of supply chain management "command and control systems," and supply chain management support for Lockheed Martin's commercial customers.

Sponsor: Value Chain Group, Inc. See http://www.value-chain.org/

Title: VCG Webinar: Measuring, Managing, and Improving the Extended Value Chain

Date: Thursday, 11 September 2008

Time: 11:00 AM - 12:00 PM ET USA

System Requirements

PC-based attendees Required: Windows® 2000, XP Home, XP Pro, 2003 Server, Vista

Macintosh®-based attendees Required: Mac OS® X 10.3.9 (Panther®) or newer

Value Chain Benchmarking Reports and Surveys

As the list of benchmarking reports and surveys has grown, it has been a bit more difficult to scroll through links and reports on the Google Doc spreadsheet that I have been embedding in the blog. This posting marks the transition of the embedded spreadsheet to a web-based table hosted on the Global Performance website. Since it is one of the more frequently bits of information accessed on this blog, I have made the link a permanent feature (top right) of the blog.

On this first version of the posted table, I have kept the links and added a description of the site on which the surveys can be found. The organizations are grouped as academic organizations, commercial organizations (including trade associations and consultants), and government organizations. While some of these services require fees and/or participation in the benchmarking to access the data, I don't identify the fee structure or the agreement you might have to enter into to participate in the survey or extract data.

I will continue to provide updates to the list and intend to provide a brief description of any changes on this blog but will provide the updated list for maintenance on the GP site.

Additions or corrections to the list are welcome. Additionally, anyone that is willing to share their experience using the benchmarking services is encouraged to do so.

Value Chain / Supply Chain Benchmarking and Studies Report Update

As I was researching online survey tools (in preparation for a metrics survey) I discovered MarketingProfs. For many of you who are in the supply chain space, it may seem irrelevant to consider marketing sites and research. For those of you who are in the value chain space (or read my entry Logistics – Supply Chain – Value Chain: Evolution of an Idea or Different Approaches?) you recognize that marketing (a demand creation process) may be a key to driving business improvement.

On their research page, Marketing Profs lists a number of studies including an annual survey investigating the use of Return on Investment (ROI) measurements to evaluate marketing effectiveness. From their home page, I linked to the MarketingProfs Daily Fix, a blog associated with the site. The blog has multiple contributors (including Tom Peters - a noted author in the field of business management). Because of the number of contributors, there may be multiple entries for a single day and there is a significant archive.

For example, a recent contribution by Ted Mininni, a contributor to the blog, commented and summarized a Marketing Daily interview with The CMO Council regarding a survey conducted by The CMO Council and the Boston Consulting Group of 1000 senior marketing execs. If you are not a marketing professional or familiar with the news, research, and tools of the field, the blog provides a useful (non-academic) starting point.

As a result of my quick investigation, I have added the Boston Consulting Group, the CMO Council, and Marketing Profs to my Update on Value Chain Benchmark and Surveys.

The following Update includes surveys with links which are clickable and should open to their respective sites. I envision that future additions will add more benchmark reports, provide a short description for the surveys, and identify what part of the value chain / supply chain is included in the report.If you are aware of a benchmarking study or resource that should be included in this report please let me know.

Value Chain/Supply Chain Benchmarking and Studies Report Update

In this, the latest revision of the supply chain and value chain benchmark report and studies list (the spreadsheet of links is embedded below), I have added PRTM. Many of you already know of the relationship between the Performance Measurement Group (PMG) and PRTM. While there are links and references between the PMG and PRTM websites, studies and reports are highlighted differently on each.

Those of you who pay attention to trade journals and press announcements for supply chain management have probably seen that PRTM has released its sixth annual survey of global supply chain trends. PRTM indicates they have 300 international respondents which, based on numbers alone, makes it a respectable survey.

According to PRTM's site, the survey was designed to investigate how industry leaders are globalizing their supply chain operations and considered: the future configuration of supply chain networks, managing product quality and safety while managing numerous internal and external international channel partners, and supply chain flexibility.


The following Update includes surveys with links which are clickable and should open to their respective sites. I envision that future additions will add more benchmark reports, provide a short description for the surveys, and identify what part of the value chain / supply chain is included in the report.If you are aware of a benchmarking study or resource that should be included in this report please let me know.

The Continuing Search for Standard KPIs and Metrics

Last month I started identifying sources for KPIs and Metrics. In my initial entry I included a short description and links to:

The KPI Library
The Palladium Group
APICS
APQC

I have also had previous entries on BPIR.COM (affiliated with Massey) which provides members access to a library of metrics.

Cranfield University's School of Management offers a catalogue of performance measurements organized around a framework called the Performance Prism. The Performance Prism is a measurement and management framework that attempts to address all of an organisation’s stakeholders - investors, customers & intermediaries, employees, suppliers, regulators and communities. While the Catalogue costs £95.00, Cranfield lets you sample it (including a glossary list of the metrics).

The advertisement for the publication indicates that it includes:

• The title of the measure.
• Why it should be measured.
• The role of the measure in different contexts.
• How to measure it. Definition / formula of the measure – providing possible options
  What do we need to consider when defining the measure ? Definitions of key terms, possible sources of data, ways in which the data should be analysed, questions to be asked when using the measure

Another resource that I would recommend is Better Management.com. A website run and maintained by SAS, it is not a typical commercial website. SAS does a respectable job in keeping advertising to a minimum and providing readers with access to a wide-range of articles, white papers, and research (much of it that does not originate with SAS). I have not found a KPI library on the site but exploring the resources should provide ideas and references for trying to identify the right metrics or KPIs to use.

Reengineering Performance Measurement: How to Align Systems to Improve Processes, Products, and Profits

One of the first books I added to my personal library that specifically addressed using a systemic approach to using KPIs and metrics to improve business performance was Reengineering Performance Measurement by Lockamy and Cox.

Part of the Irwin/APICS Series in Production Management, it was written in 1994 and I must confess it has been a while since I picked it up. I spent a few days re-reading it and, even though it is a bit dated, there are a number of reasons why it is still a valuable resource.

The first part of this book is a review of practice and theory in quality management and manufacturing management systems. The second half of the book is a series of six case studies including: Reliance Electric, Yamaha Motor Manufacturing, Northern Telecom, Clark Equipment Company, Trane, and Colgate-Palmolive (Hill's Pet Products Division).

One might think that any book that is over a decade old in the "rapidly" evolving field of value chain practice will have little relevance to the practitioner. Since Lockamy and Cox had to take the time to explain "new" concepts and methodologies to the business community, they provided concise explanations that are still perfectly suited for introducing some basic complex and powerful ideas.

First, the authors put their work in the context of a "resource management" - the planning, scheduling and control of an organization's resources to produce a product or service to satisfy a customer. They relied on the a framework that was advanced by APICS (then. an organization for enterprise resource management) that included: product design, purchasing, manufacturing, distribution, and customer service.

(I was very aware of the contribution that APICS its members made to the evolution of supply chain management and the Supply-Chain Council. When I led the technical development of the SCOR Model as the SCC's Chief Technology Officer , I engineered a partnership with the APICS E&R Foundation in which we co-sponsored supply chain research. Many of the Council's technical committees relied heavily on the APICS Dictionary, which is still one of my valued resources. I have always thought that if APICS had quickly embraced "supply chain" - instead of resource management - they could have dominated the supply chain space. While they appear to have retrenched into professional certifications and training, if they staked out the intellectual high ground in value chain - they could probably lead professionals for the foreseeable future.

Second, the authors provide an introduction to Just in Time Manufacturing (Toyota Production Systems and Lean), Total Quality Management (Juran, Deming, Crosby) and Theory of Constraints - Goldratt. For each of these major schools of thought, they provide a short summary of the key elements and usually an understandable explanation of what the element means.

For example, after providing a brief introduction to the Theory of Constraints, the authors provide an illustrative business example that shows how to construct a business plan/strategy using cost as a basis versus using constraints as the business driver. For those of you who are looking for a short, painless way to grasp the overarching concepts in each of these disciplines - Lockamy and Cox are a great starting point.

While Chapters 1-6 will provide a good grounding in philosophy and an explanation of how all of the methodology works, Chapters 8-13 are the fore mentioned case studies. They are short. They frequently don't provide all of the information that you might want. They do provide evidence for the linkage between the organization and the performance management system.

Chapter 7 compares and contrasts the companies in the case studies and their use of integrative performance management systems. Most of the comparisons are interesting. Most of the performance measurement system models still provide some insights to managers. I would expect this book, if it was revised or re-released today, to provide much more in the way of specific advice regarding which metrics to employ and which to avoid.

For the manager or analyst that is looking for a list of KPIs and metrics that they can lift for their own use, prepare to be disappointed. You will have to do dig within the chapters to find the relevant metrics and you will probably have to supplement the book with additional research to determine how best to calculate the metric and apply it. For the manager or analyst who is looking for a starting place to find metrics and kpis that may be important - you have found an important resource.

My recommendation - whether you are a veteran or just learning TOC, TQM, JIT, and measurement systems; spend some time with this book. It won't become your primary resource but it may help to provide context and history that you will find invaluable.

Invitation from the Global Benchmarking Network and Massey University

Dr. Robin Mann of COER and BPIR.com was kind enough to comment on my previous entry and extend an invitation to the readers of this blog. I would like to relay this to you, thank him, and encourage you to participate.

From Dr. Mann:

"The Centre for Organisational Excellence Research (COER), Massey
University, on behalf of the Global Benchmarking Network (www.globalbenchmarking.org) is conducting research to identify the current status of business improvement tool use worldwide. To assist with this important research we encourage you or a representative from your organisation to complete the electronic survey at http://gbn.bpir.sgizmo.com/.

It will take between 5 to 45 minutes of your time dependent on your use of
benchmarking. Those that do not use benchmarking only complete Sections 1 and 2 of the survey – this will only take 5-10 minutes of your time.

The person completing the survey should have a good understanding of the business improvement tools being used within your organisation. The survey is relevant to small organisations from one or two people to large multinational organisations.

The findings from the research will help to provide an understanding of the use of business improvement tools worldwide and how use varies from country to country. Already there has been over 400 responses.

In return for completing the survey you will be sent a copy of the findings and given one month’s FREE access to www.bpir.com (a benchmarking and best practice website resource).

In addition, one lucky winner that completes all sections of the survey will be invited to the GBN’s 3rd International Benchmarking Conference, Budapest, Hungary – 9/10 October 2008, www.bestpracticeconference.com. Conference fee and accommodation for three nights will be paid by the GBN.

Thank you for your participation."

Supply Chain/Value Chain Models - Quality Frameworks and Web Resources

If you are interested in value chain business and process improvement you have undoubtedly run across a number of the national quality award programs and frameworks. These frameworks frequently explore the "soft" discipline of business operations (critical organizational capabilities with impact that may be difficult to quantify - e.g., leadership, learning, societal impact) while they may not be as specific as the operational process frameworks.


BPIR.com provides a brief overview of some of the most recognizable of these frameworks including:

Baldrige Criteria for Performance Excellence
EFQM Excellence Model
Singapore Quality Award Framework
Canadian Framework for Business Excellence
Australian Business Awards

The website claims to provide a repository of over 1000 business metrics (available to BPIR members), benchmark and best practice, and access to business periodicals and journals. A review of the membership fee structure indicates that only a modest fee is required for individuals or companies. If the membership fees are as advertised the website might be an undervalued resource for value chain improvement.

The BPIR.com website was developed by the Centre for Organisational Excellence Research (COER), Massey University. The BPIR started out as a project within COER where a team carried out research on what support is provided to organisations, via the internet, to help improve business performance. The foundation and interest behind the research was linked to the experience of the team as business excellence evaluators using the EFQM and Baldrige models.

Supply Chain/Value Chain Models - Business Process Model Wars Update

Price Waterhouse Coopers, one of the largest consulting groups, has a process framework that is strikingly similar to the hierarchical models maintained by many of the trade associations that I have identified previously (and you can find in my list). They describe the framework as:

The universal Process classification framework contains 13 business processes that apply to almost any business, regardless of industry, size, or location. The first seven are operating processes that companies follow to develop and move products to the market. The last six are management and support processes that enable companies to operate effectively.

Probably all of the major consultants have process views of the enterprise. The majority of them have process organizations that vary by industry (and can be tailored to a company).

There are competitive advantages to using an industry-specific process framework. First, everyone believes that their industry and company are unique. In fact, they probably are, at some level. Second, if you are a consultant or a software provider that already has a presence in an industry, an industry-specific view (hopefully supported by reference accounts) can create barriers to your competition.

When you are working on business problems that span your business, your suppliers, and your customers, there are advantages to using an-industry neutral process framework and classification. Similarly, if you are a large consultant with projects supporting multiple industries and multiple businesses, there are advantages in using a framework that can be applied from the top down. Process models are the "standards" or banners in the escalating battle for the hearts, minds, and dollars of analysts, technologists, consultants, business process engineers, program managers, and business leaders.

APQP - Advanced Product Quality Planning - Automotive Industry Action Group

CCOR - Customer Chain Operations Reference Model - Supply-Chain Council, Inc.

CPFR -Collaborative Planning, Forecasting, and Replenishment Model-Voluntary InterIndustry Commerce Standards Association

DCOR - Design Chain Operations Reference Model - Supply-Chain Council, Inc.

DFSS - Design for Six Sigma - (Multiple Models)

eTOM - Enhanced Telcom Operations Map - TM Forum

MSDF - Manufacturing System Design Framework - Lean Advancement Initiative

PCF - Process Classification Framework - APQC

PWC Universal Process Classification Framework - Price Waterhouse Coopers

SAP- SAP Enterprise Services Workplace

SCOR - Supply Chain Operations Reference Model - Supply-Chain Council, Inc.

SCMF - Supply Chain Management Framework - SCM-Institute

VRM - Value Reference Model - Value-Chain Group

Technical but related frameworks

FERA - Federated Enterprise Reference Architecture - CPDA

ITIL - Information Technology Infrastructure Library

Corrections, additions, and amplifications are welcome.

Key Perfrormance Indicators: Developing, Implementing, and Using Winning KPIs

David Gerbino had been kind enough to provide feedback to the blog entry I made on business measurement standards and KPIs. He recommended two books, one of them, Key Performance Indicators by David Parmenter, is already in my personal library.

Parmenter, a consultant who assists organizations in applying KPIs, lays out basic strategy for selecting and applying KPIs in an organization. The book is a reasonably good resource for someone starting to consider systematically applying a measurement strategy across an organization. It is also a valuable resource for someone who has a grasp of measurement systems but is interested in seeing some specific examples.

I was pleased to see that he spends some time trying to explain the difference between key performance indicators (KPIs), performance indicators (PIs) and key results indicators (KRIs). While I use different definitions than Parmenter, I must confess that I had been working with measurements for a few years before I recognized the importance of explicitly differentiating a metric, a measurement, and a key performance indicator.

Parmenter points out:

Performance measures are meaningless unless they are linked to the organization's current CSFs [critical success factors], the balanced scorecard (BSC) perspectives, and the organization's strategic objectives.

I found Parmenter's recommendations for choosing KPIs, gaining consensus, and implementing to be less helpful but, they will certainly provide ideas and cautions. In the years I have worked with large multi-national corporations, I never encountered a KPI team. The business measurement or benchmarking "teams" that I worked with or met were project teams supporting specific business objectives.

One of the most important resources in the book for me is the Performance Measures Database contained in the Appendix. The table provide a fairly extensive list of metrics to consider and suggests a possible relationship between a Balanced Scorecard perspective and strategic objectives. It is helpful (but not necessary) if you are familiar with Kaplan and Norton's Balanced Scorecard. The database is a subset of the Waymark Database of Performance Measures (proprietary to Parmenter's firm) which apparently can be purchased for a fee from their website.

In summary, Key Performance Indicators is a good reference for anyone who needs to use KPIs. If you were going to assemble a measurement team, assign a KPI executive or manager, or hire a consultant to design, implement and use KPIs, you might want to read this book first.