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Institute for Industrial Engineers Office Depot Business Process Improvement. Vince Pierce, Laura Wells, and Don Mears July, 2011. Office Depot Company Overview. Office Depot is a leading global provider of office products and services: 2010 sales of $11.6 billion

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institute for industrial engineers office depot business process improvement

Institute for Industrial EngineersOffice Depot Business Process Improvement

Vince Pierce, Laura Wells, and Don Mears

July, 2011

office depot company overview
Office Depot Company Overview
  • Office Depot is a leading global provider of office products and services:
    • 2010 sales of $11.6 billion
    • North American Retail Division 43%
    • North American Business Solutions Division 28%
    • International Division 29%
  • One of the world’s largest e-commerce retailers – $4.1 billion in sales in 2010

North American Retail

(43% of 2010 Sales)

North American BSD (28% of 2010 Sales)

International (29% of 2010 Sales)

  • 1,100+ stores in U.S. and Canada
  • Largest concentration of stores in California, Texas and Florida
  • Catalog, contract and e-commerce
  • Dedicated sales force works with medium sized to large customers
  • Orders serviced through 16 distribution centers
  • Catalog, contract, e-commerce and retail
  • Sell to customers directly and through affiliates in 51 countries outside of the U.S. and Canada
  • 40+ websites and 400+ stores
business process improvement cause for action
Business Process Improvement - Cause for Action

Office Depot benchmarking efforts highlighted a significant opportunity to improve service levels (effectiveness) while reducing SG&A costs (efficiency).

Senior Leaders also recognized the competitive advantages that would accumulate from building a cultural focus on Continuous Improvement.

Office Depot created the Business Process Improvement Organization (BPI)

to help us achieve world class execution by effective alignment of people, process

and technology in the service of our business objectives and operational priorities.

bpi 2010 proof of concept
BPI 2010 – Proof of Concept

During our first year, we demonstrated our ability to partner with business leaders, engage process owners and associates, and deliver meaningful results

bpi dual strategies
BPI Dual Strategies

Our dual strategies are designed to deliver near-term results by addressing critical problems while deploying process improvement principles and practices across the organization to create a management culture of continuous improvement

bpi integrated centers of excellence
BPI Integrated Centers of Excellence

Our mission is to drive superior execution that accelerates associates, customers, and

shareholder value

Program/Project

Management

ERPIntegration

ContinuousProcessImprovement

Integration

Change

Management

6

ppm deployment strategies
PPM Deployment Strategies

We operate a three-channel deployment strategy to drive superior program/project execution that delivers the required ROI on strategic initiatives

Our PPM Strategies drive program/project execution excellence throughout the organization

erp integration strategy
ERP Integration Strategy

We operate in partnership with the Business and IT to align ERP investments with strategic priorities and deploy integrated solutions that deliver significant business outcomes

8

cpi deployment strategies
CPI Deployment Strategies

We operate a three-channel deployment strategy to realize significant process improvements while building the long-term capability for Continuous Improvement

9

cpi an inclusive approach

Total Quality Management

PDCA – SDCA

Six Sigma

Lean

Ford 8D

Toyota Production System

Strategy Deployment

A3 Problem Solving

CPI – An Inclusive Approach

Office Depot Continuous Process Improvement

cpi goals

Process Excellence

CPI Goals
  • Meaningfully improve process performance
  • Deploy “CPI Fundamentals” to sustain results
  • Use the CPI Fundamentals to build team capability for continuous improvement

Continuous Improvement Capability

Process Maps and

Standard Work

A3 Problem Solving

Management

Operating System

Leading and Lagging

Metrics

Process Ownership

Leadership Alignment

bpi approach to culture change
BPI Approach to Culture Change

A culture is the repertoire of mutually reinforcing beliefs & assumptions, behaviors & practices, and values shared by a community of people

Changed Beliefs/Assumptions lead to readjustment of Values

Beliefs & Assumptions

CULTURE

Behaviors & Practices

Values

Different Behaviors/Practices demonstrate and reinforce changed Beliefs/Assumptions

Readjusted Values drive changes in Behavior/Practice

The culture cycle can be entered and changed through any of its drivers

bpi approach to culture change 2
BPI Approach to Culture Change – 2

By focusing on Behaviors and Practices we deliver Value and reinforce Belief

slide14

BPI Partnership Model

Our imperative is to enable and support the Business without removing their responsibility for delivering results

Collaborative

Partnership

Business

BPI

Business

Owner

BPI Team Lead

Business

Ownership

BPI

Enablement

ProcessOwner

BPI Deployment Lead

Joint Accountability for Results

14

slide15

Governance

Plan

Engage

Deliver

Sustain

Right

Projects

and Metrics

Right

Leadership and

Resources

Right

Actions

and Results

Right

Management

and Capabilities

  • Strategy Matrix
  • Business Expectations
  • Project Charters
  • Leadership Alignment
  • Delivery Objectives
  • Opportunity Assessment
  • People Solutions
  • Process Standardization
  • Delivery Strategies
  • Process Solutions
  • Process Metrics
  • Delivery Approach
  • Delivery Plans
  • Technology Solutions
  • Management System
  • Resource Requirements
  • Delivery Organization
  • Business Alignment
  • Business Results
  • Problem Solving Capability

Enablement

BPI Delivery Framework

slide16

Governance

Plan

Engage

Deliver

Sustain

Enablement

BPI Delivery Framework – Process View

Delivery Methods

Engagement

Planning

StrategicPlan

BusinessRequests

CPI Fundamentals

Project andChange Methods

DemandManagement

ResourceAllocation

slide17

Project Management

Standard Delivery Lifecycle

Plan

Validate

Deploy

Design and Build

Analyze

Change Management

Process Improvement

Technology Integration

Value Stream Transformation

BPI Delivery Methods Share a Common Foundation

Our Standard Delivery Lifecycle establishes a fundamental delivery structure and discipline, but is adaptable enough that it can be tailored to fit a variety of engagements

Custom Methods

ProjectManagement

ChangeManagement

slide18

Conduct Stakeholder Analysis

Assess Readiness

Assess Readiness

Assess Readiness

Change Management Integrated into Every Engagement

Change Management and Project Management work in partnership to deliver desired business results

Project Management: Solution is Designed, Developed and Delivered Effectively

Change Management: People Embrace, Adopt and Use the Solution Effectively

Execute and Monitor Communication Plan

Plan Communications

Define Change Agent Network

Build and Manage Change Agent Network

Create

Training Plan

Execute and Monitor Training Plan

Define Change Strategy

Execute Re-Organization Plan

Create

Re-Org Plan

Create Change Sustainment Plan

Execute Change Sustainment Plan

18

cpi fundamentals enable sustained process excellence
CPI Fundamentals Enable Sustained Process Excellence

Process Excellence

Management Operating System

  • Daily Performance Huddle
  • Weekly Process Owner Check
  • Monthly Executive Review

Process Maps and Standard Work

  • End-to-End / Detailed Process Maps
  • Desktop Procedures
  • Standard Work

A3 Problem Solving

  • Cross-functional Teams
  • Basic 5 Step Process (PDCA Cycle)
  • Why-Why Analysis

Leading and Lagging Metrics

  • Voice of Customer
  • Customer Success Metrics
  • Key Input Metrics (Drivers)

Continuous Improvement Capability

Process Maps and

Standard Work

A3 Problem Solving

Management

Operating System

Leading and Lagging

Metrics

Process Ownership

Leadership Alignment