1. Celerant Consulting Business Game - Team Hermès 29/01/10 - Arts & Métiers ParisTech

2. Summary Objectives Global analysis Activities analysis Files delay in the design department Final suggestions

3. Objectives Find the malfunctioning origins of the Supply Chain Give scenarios to improve it

4. On average among all the late files : –3 days to create a file –2 days to go from the HQ to the « Cellule entrée » –3 days to arrive with the computer data to the factory About the “pontage” –Data error Or –Process error (the file is passed to the factory before the computer map) 3.5 days to complete the design study Global analysis

5. Too much time spent in the 2 first tasks Time spent in the design department and the factory is only about 43% of the total time Global analysis

6. Suggestions Reduce the stages before the design department –Too many people involved (4 departments) –Too long (5 days, 31%) –Could help to reduce misunderstandings 3 days to set the plans on the computers –Could it be reduced?

7. « BE-Chiffrage » Activities Analysis The major part of the time is lost (47%) Unjustified modification: –Errors in design –No Reference on drawings –Unclear Needs From 9:00 to 12:00 Time distribution of the nomenclature department technician

8. « Chargé d'Affaires » Activities Analysis One fifth of the time is lost (21%) Lost time due to : –Information missing –Components missing –Calls to correct erroneous information Time distribution of the business manager From 8:33 to 12:00

9. Suggestions Improve the quality of the information exchange with the design department –No error in the drawings –Less missing information or components

10. Files delays in the design department The more files to process in a day the higher the delay –10 files ≈ 15% files are late –30 files ≈ 45% files are late Quotes are more often late than orders –40% of the quotes are late –Vs 15% for the orders 30% of the files are at least one day late Day Number of files On time quotes On time orders On time files Thursday880%100%86% Friday3138%80%54% Monday1486%100%92% Tuesday7100%80%86% 6060%86%71%

11. Lack of quality in transmitting information affects differently the departments, on average: –Every file in the nomenclature department is delayed by 53 min –Every file in the Setting-up department is delayed by 117 min Top 4 causes of delays is also changed accordingly to the department Part of the file Missing information o ccurrence Erroneous information occurrence Expected delay per file Chiffrage 42 files av. Time : 193 min Clarté de l'expression du besoin5%7%19 min 36% Couleur - Traitement de surface10%2%14 min 27% Plan de coupe7%12%11 min 21% Dimensions équipement12%5%2 min 3% Total 53 min Implantation 23 files av. Time : 784 min Plan d'implantation informatique (transmis)13%4%42 min 36% Spécifique identifié13%4%38 min 32% Clarté de l'expression du besoin35%0%27 min 23% Couleur - Traitement de surface13%9%6 min 5% Total117 min Files delays within the design department

12. Final suggestions (1/2) Reduce the delay of the files in the design department –Every file is delayed by 53 min or 117 min depending on the dep. What could be the main causes to tackle in the design department? –The clarity of the need expression (19 min & 27 min) –The surface treatment & color (14 min & 6 min) –Drawings on computer (42 min)

13. Final suggestions (2/2) Reduce the stages number before the design department –4 departments involved, 5 days long Reduce the time needed to get the drawings on the computer –3 days long Improve the quality of the information exchange with the design department –47% of the technician time & 21% of the business manager time is “lost”

14. Thank you for your attention Do you have any question ?

15. Delay distribution across the file in the design department Missing informationErroneous information Part of the file Occurring frequency Av. Delay per missing info. Occurring frequency Av. Delay per error Expected delay per file Clarté de l'expression du besoin15%695%25022 min Plan d'implantation informatique (transmis)12%23%48015 min Spécifique identifié9%203%39014 min Couleur - Traitement de surface11%535%12011 min Plan de coupe5%808%447 Type de mobilier (tôle, bois,…)5%303%82 Eléments2%303%301 Dimensions équipement11%66%81 Zone/Emplacement/Secteur3%232%01 Gondole5%103%81 Plan d'implantation2%156%61 Dimensions accessoires14%22%00 Total76 min (Averages done over 65 files)