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Five Strategies for Making
    Manufacturing Pay




                Louis Columbus
                Cincom Systems
Speed Is New The Platform

Are passionate about improving the accuracy and
speed of Demand Management


Managing variability in their supply chains for
competitive advantage


Reducing manufacturing costs by coordinating
Demand Management and Quality


Increasing profitability by knowing which deals to take


Drive down cycle times by continually improving the
Sales & Operations Planning Process (S&OP)
Are passionate about improving the accuracy
     and speed of Demand Management
Strong Focus On Analytics And An Effort To Continually
   Improve Permeate Highest Performing Companies
Dashboards: Less is more
(6 metrics total, all measuring collaboration)
Managing variability in their supply chains
        using Demand Planning
Reducing manufacturing costs by coordinating
      Demand Management and Quality
Obsessed with Quality




Energized with the vision of seeing
their products last decades longer
than anyone predicted



Credit: NASA/JPL-Caltech)
GKN Aerospace
Results Achieved:

•   50 percent reduction in Total Cost of
    Ownership (TCO) of enterprise
    system

•   $25-million reduction in inventory
    investment in the first six months

•   42 percent increase in inventory turns

•   38 percent reduction in cycle
    time, improved electronic
    collaboration with key customers and
    more.
Increasing profitability by knowing which deals to take
Increasing profits by knowing which deals to take
                        Input:
                         RFPs,
                     Contracts
                       Orders
                      Margins               Finding Competitive Advantage                                                                       Output:
                                                                                                                                                Products
                                                                                                                                                and Services




                                                                                                                                                      Massive
                      Lost                             Lack of knowledge                                                                    Overcommitments lead to
   Lack of
                  profitability     Lack of agility    transfer from                                                                         lost sales and customers
   project                        and flexibility in   engineering to project   Manual, fragmented     Inconsistent &     Massive time
                 due to lack of
selection and                      responding to       management & Sales       processes driving      conflicting SLA    drains due to
                  accuracy on
prioritization    quotes, bids     change orders       slows bids, estimates    suboptimal decisions   performance &     chaotic bidding,
  based on        and pricing      and ECNs in a       and contracts to a       leading to lost          compliance      estimating and
 profitability                     timely manner       crawl                    opportunities                            contract mgmt.
                                                                                                                            llifecycle
Increasing profits by knowing which deals to take

                   Input:
                    RFPs,
                Contracts
                  Orders
                 Margins         Funding Competitive Advantage                                                    Output:
                                                                                                                  Products
                                                                                                                  and Services




                                                                                                                         Higher
                                                                                                                       Customer
                                                                                                                      Satisfaction
    50%+                                                                                                                  Levels
 increase in                                                                                  2X increase in           leading to
                  34%                                                      34% increase in                               greater
   project                   4X reduction in    67%      54% increase in                     contract closure
               increase in                                                       SLA                                     profits
completion                       ECNs;       reduction    perfect order                         rates; 58%
                quoting &                                                   performance
rate, under                   consolidation in quoting    performance                           increase in
                 pricing                                                       and 25%
budget and                     of product    and order                                       profitability from
                accuracy                                                     reduction in
on schedule                     changes       rework                                           better clause
                                                                             compliance
                                                                                               management
                                                                                costs
Drive down cycle times by continually improving the Sales &
           Operations Planning Process (S&OP)
Best Practice: Making Sales & Operations Planning (S&OP)
 and Demand Planning Strategic with a 3 to 5 yr. horizon
The S&OP Process At Boeing




Sources: WSJ, Purchasing.com, AMR Research
Launch Sequence Making Manufacturing Pay
Are passionate about improving the accuracy and speed of Demand
Management



Managing variability in their supply chains for competitive advantage


Reducing manufacturing costs by coordinating
Demand Management and Quality


Increasing profitability by knowing which deals to take


Drive down cycle times by continually improving the Sales & Operations
Planning Process (S&OP)
Thank You
For more information visit:
              http://erp.cincom.com/

              lcolumbus@cincom.com

                                         2012 Cincom Systems, Inc.
                                           All Rights Reserved
                                         Developed in the U.S.A.

CINCOM, the Quadrant Logo, and Simplification Through Innovation are registered trademarks of Cincom Systems, Inc.
                            All other trademarks belong to their respective companies.

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5 Strategies for Making Manufacturing Pay: How GKN Aerospace Cut $25 million in six months

  • 1. Five Strategies for Making Manufacturing Pay Louis Columbus Cincom Systems
  • 2. Speed Is New The Platform Are passionate about improving the accuracy and speed of Demand Management Managing variability in their supply chains for competitive advantage Reducing manufacturing costs by coordinating Demand Management and Quality Increasing profitability by knowing which deals to take Drive down cycle times by continually improving the Sales & Operations Planning Process (S&OP)
  • 3. Are passionate about improving the accuracy and speed of Demand Management
  • 4. Strong Focus On Analytics And An Effort To Continually Improve Permeate Highest Performing Companies
  • 5. Dashboards: Less is more (6 metrics total, all measuring collaboration)
  • 6. Managing variability in their supply chains using Demand Planning
  • 7. Reducing manufacturing costs by coordinating Demand Management and Quality
  • 8. Obsessed with Quality Energized with the vision of seeing their products last decades longer than anyone predicted Credit: NASA/JPL-Caltech)
  • 9. GKN Aerospace Results Achieved: • 50 percent reduction in Total Cost of Ownership (TCO) of enterprise system • $25-million reduction in inventory investment in the first six months • 42 percent increase in inventory turns • 38 percent reduction in cycle time, improved electronic collaboration with key customers and more.
  • 10. Increasing profitability by knowing which deals to take
  • 11. Increasing profits by knowing which deals to take Input: RFPs, Contracts Orders Margins Finding Competitive Advantage Output: Products and Services Massive Lost Lack of knowledge Overcommitments lead to Lack of profitability Lack of agility transfer from lost sales and customers project and flexibility in engineering to project Manual, fragmented Inconsistent & Massive time due to lack of selection and responding to management & Sales processes driving conflicting SLA drains due to accuracy on prioritization quotes, bids change orders slows bids, estimates suboptimal decisions performance & chaotic bidding, based on and pricing and ECNs in a and contracts to a leading to lost compliance estimating and profitability timely manner crawl opportunities contract mgmt. llifecycle
  • 12. Increasing profits by knowing which deals to take Input: RFPs, Contracts Orders Margins Funding Competitive Advantage Output: Products and Services Higher Customer Satisfaction 50%+ Levels increase in 2X increase in leading to 34% 34% increase in greater project 4X reduction in 67% 54% increase in contract closure increase in SLA profits completion ECNs; reduction perfect order rates; 58% quoting & performance rate, under consolidation in quoting performance increase in pricing and 25% budget and of product and order profitability from accuracy reduction in on schedule changes rework better clause compliance management costs
  • 13. Drive down cycle times by continually improving the Sales & Operations Planning Process (S&OP)
  • 14. Best Practice: Making Sales & Operations Planning (S&OP) and Demand Planning Strategic with a 3 to 5 yr. horizon
  • 15. The S&OP Process At Boeing Sources: WSJ, Purchasing.com, AMR Research
  • 16. Launch Sequence Making Manufacturing Pay Are passionate about improving the accuracy and speed of Demand Management Managing variability in their supply chains for competitive advantage Reducing manufacturing costs by coordinating Demand Management and Quality Increasing profitability by knowing which deals to take Drive down cycle times by continually improving the Sales & Operations Planning Process (S&OP)
  • 18. For more information visit: http://erp.cincom.com/ lcolumbus@cincom.com 2012 Cincom Systems, Inc. All Rights Reserved Developed in the U.S.A. CINCOM, the Quadrant Logo, and Simplification Through Innovation are registered trademarks of Cincom Systems, Inc. All other trademarks belong to their respective companies.

Editor's Notes

  1. Lessons Supplier readiness Organizational changePractices Segmentation Platform design Digital prototypes