2 Develop a Culture of 6 Sigma Process Discipline with TCO focus 02Our Value PropositionSupply Base Transformation for our Clients by adopting a best-in-class Process approachSuperior Value over the term at the right program costDevelop a Culture of 6 Sigma Process Discipline with TCO focusExecution and Governance of a multi-year Supply Base Transformation strategyCompetency and Leadership development in Purchasing to deliver greater impactOur Value Proposition
3 Our Firm’s Team capability 03Lead Consultant has a 13+ year career at Caterpillar Inc.’s Asia office as aCertified 6 Sigma Master Black (Black Belt)Qualified Lean Black Belt & ChampionStrategic Sourcing and Cost Reduction ConsultantConsulted for Caterpillar’s Asia office and 30+ Strategic Supply partners over the last 8 years in Supply Chain total cost optimization initiativesIndustries served are Manufacturing, Automotive, Logistics & Transportation, Heavy Industrials, Energy, etc.Industry Experts for special assignments on call, to deliver superior value and optimize client costs.Our Firm’s Team capability
4 What we are hearing from the Market 04Total Cost of Ownership is importantPurchasing has largest potential for impacting Company costsSplit focus – Strategic versus Tactical teamsCompetitive DemandsOrganizations harvesting the greatest results from enterprise wide, Strategic Sourcing initiatives will achieve significant Cost Advantage over the competition, andWill have a leaner and stronger Value ChainEvolving new realitiesPurchasing competency = Competitive advantageTechnology is a critical enablerSupplier Collaboration & ManagementA singular vision for Strategic Sourcing across the EnterpriseWhat we are hearing from the Market
7 Strategic Sourcing vs. Tactical Buying - differences 07Strategic Sourcing(every 3 to 5 years)Supplier Management(every 3 months)Tactical Buying(every day / week)Spend CharacterizationSupply Market analysisStrategy DevelopmentSupply Base re-shapingCost Model developmentNegotiationAPQP / PPAPReview Supplier performanceManage Supplier relationshipResolve conflictsMonitor Supplier marketplaceCapacity planningCost Reductions / AvoidancesPpm / Cpk / COPQVolume forecastsPurchase Order placement and SchedulingExternal LogisticsManage Payables and Invoice griefSupplier Delivery performancePerformance FeedbackVoice of BusinessStrategic Sourcing vs. Tactical Buying - differences
8 Strategic Sourcing is evolving 08TraditionalPurchasingStrategicSourcingGlobal SupplyManagementParadigmTransactionProjectEnablementFocusPrice,management,ComplianceSupplier rationalization,Spend consolidation,Cycle-time reduction,StandardizationBalancing Total System Cost;Maximizing shareholdervalue; Enabling productinnovationReachLocal;Many suppliersMulti-regional,Some collaborationwith related functionsGlobal; Highly collaborativeacross the enterprise andvisible at executive levelsTechnologySpreadsheetsAuctions, e-Sourcing,Basic optimizationTechnology enablementacross all strategic sourcingprocessesPeopleDecentralizedBuyersCommodity Teams,Center-led orcentralizedCross-functional teamsGlobalStrategic Sourcing is evolving
10 Deliverables of a Strategic Sourcing project 10Deliverables of a Strategic Sourcing project
11 Strategic Sourcing benefits - Examples 11US Postal ServiceMaintenance & Repair (MRO)1,000 suppliers down to 2 suppliersSavings of more than $250MWalmartReduced 500,000 suppliers to 50,000$17.8B in cost savings over 5 years95% of spend is with 16,600 suppliersRaytheonHad 27,000 to 45,000 suppliers (estimated)Goal was to reduce by 20% each yearContinues to meet supplier diversity goals, even with supplier consolidationCompanies doing Strategic Sourcing have seen returns between 20x to 1000x+ on their investments over 3 to 5 yearsStrategic Sourcing benefits - Examples
13 Training Programs - Index 13ProgramTarget CandidatesNo. of days6 Sigma Strategic Sourcing (6SSS Methodology) TrainingBlack Belts + Purchasing Professionals3 daysAPQP and PPAP TrainingPurchasing + Manufacturing + Design Professionals2 daysTotal Cost of Ownership TrainingPurchasing Professionals1 dayTraining Programs - Index
14 Training Delivery Suite of Options 14Delivery OptionsClient LocationInstructor Led (Facilitated – 7+ pax)E-learning (Self Taught – 1+ pax)Printed Books / CDs (Self Taught)Exercises + Real ExamplesCoaching Support6SSS TrainingAPQP / PPAP TrainingTCO TrainingPrimary Option (7+ Belts preferred per Session of Training)Secondary / Low Cost Options (1+ to 5+ Belts preferred per Session of Training )Tertiary / Mandatory provisionsTraining Delivery Suite of Options
15 6 Sigma Strategic Sourcing (6SSS) Training 15DefineUnderstand changing Customer and Business needsStudy Category and Supply Market conditionsTap Low Hanging fruitsMeasureDevelop Supplier Evaluation CriteriaIdentify List of Suppliers through RFI issuanceDevelop Technical Plan and Cost ModelsAnalyzeTri-analysis - Market, Supplier, CategoryIssue RFPs and obtain RFQsSelect best Supplier / Supply Chain optionsImproveNegotiate Agreements & develop Supplier Performance MetricsDevelop an MGPP for Sourcing ChangeDevelop a Sourcing MatrixDevelop an Implementation PlanControlReview and Manage compliance to SP metricsExecute the Implementation PlanDrive Continuous Improvement to bridge SP gapsWith our Comprehensive Training Program the Candidates will be able to :Understand the need for change based on Customer, Business, Economic, Commodity concerns etc.Lead multi-disciplinary Teams to reshape the Supply Base baseDevelop Cost Models and Metrics to manage SuppliersFeel empowered based on facts and data to make changes based on changing face of the marketInfluence the leaders of support functions needed for project completion6 Sigma Strategic Sourcing (6SSS) Training
16 16Advanced Product Quality Planning, APQP, is a structured method of defining and establishing steps and expectations necessary to assure that a product satisfies the customer. The goals of APQP are two-fold :Proactively manage technical risk as products or manufacturing processes are designed or modifiedDrive collaboration between design and supply chain partners (both internal and external) at the appropriate timesProduction Part Approval Process, PPAP, consists of two primary elements :Demonstration of APQP or proof of risk mitigation of a design and / or process in support of program objectivesThis demonstration of proof provides confidence that the requirements and specifications of a product prior to shipment are metDocumentation to support the demonstration of product and process conformance to requirements and specificationsThis documentation details the initial quality level the supply chain has achievedAPQP / PPAP Training
17 Total Cost Optimization (TCO) Training 17Total Cost Optimization (TCO) Training
18 18 E-Mail: firstname.lastname@example.org, email@example.com Phone : / Mobile :Procexcellenz is a premier provider of multi-channel Consulting andTraining Solutions for seekers of 6 Sigma, Lean, StategicSourcing, Cost Management and Strategy Planning services.
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