slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Research, Development, Analysis & Performance Improvement Proposals by: PowerPoint Presentation
Download Presentation
Research, Development, Analysis & Performance Improvement Proposals by:

Loading in 2 Seconds...

play fullscreen
1 / 29

Research, Development, Analysis & Performance Improvement Proposals by: - PowerPoint PPT Presentation


  • 94 Views
  • Uploaded on

Q5 PROCUREMENT SOLUTIONS. A Value Management Pro cess. Patent Pending: RSA Patent Application - No. 2004/6749. Research, Development, Analysis & Performance Improvement Proposals by: The Centre for Applied Management Science Trust www.camstrust.org. SCARY SCENARIO.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Research, Development, Analysis & Performance Improvement Proposals by:' - leyna


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

Q5 PROCUREMENT SOLUTIONS

A Value Management Process

Patent Pending:RSA Patent Application - No. 2004/6749

Research, Development, Analysis & Performance Improvement Proposals by:

TheCentre for Applied Management Science Trust

www.camstrust.org

slide2

SCARY SCENARIO

YOUR REPUTATION AND THAT OF YOUR COMPANY DEPEND ON :

  • Staff members across the internal value chain
  • Independent suppliers of goods and services
  • ALL WITH DIVERSE PROFICIENCY, YET:
  • Little independent feedback on their performance
  • Little or no direct control over their performance
  • No idea of how they impact your reputation
slide3

Agenda

  • The ten goals to defray a scary scenario
  • What will the end result be?
  • What should we do, in general immediately?
  • What should we do with work in progress?
  • What are the first steps for new work?
  • How do we enforce continuous improvement?
  • Benefits – from a scary scenario to a win-win scenario
  • What is the way forward today?
slide4

TEN GOALS FOR A PROCURER

SAVE YOUR SCARCE RESOURCES (Money, Time & Emotional Energy)

ABLE TO MAKE INSTANTANEOUS BEST-FOR-ME DECISIONS

PROTECT YOUR REPUTATION – Quantified impact on your ability to deliver

ABLE TO JUSTIFY PROCUREMENT CHOICES

ERADICATE CORRUPTION AND BRIBERY

BECOME MORE COST EFFECTIVE (Cost to performance comparisons)

REDUCE YOUR EXPOSURE TO RISK, CLAIMS & PENALTIES

PROACTIVE REMEDIES - Monitor value being created while in process

BECOME A MORE RELIABLE SUPPLIER OF GOODS AND SERVICES

SCORE 3-BEE POINTS ON BBBEE SCORECARD

IT STARTS WITH PROCUREMENT

as simple as that, and as complicated as that

ALL OF THE ABOVE COMPLEXITIES ARE INTERDEPENDENT AND ARE BEING AFFECTED BY PROCUREMENT

slide5

Agenda

  • The ten goals to defray a scary scenario
  • What will the end result be?
  • What should we do, in general immediately?
  • What should we do with work in progress?
  • What are the first steps for new work?
  • How do we enforce continuous improvement?
  • Benefits – from a scary scenario to a win-win scenario
  • What is the way forward today?
slide6

INSTANTANEOUS BEST-FOR-ME DECISIONS

  • COMPLIANCE / PROFICIENCY INDEX: (CPx)
  • Meeting your trade-, business-, special- & ISO requirements
  • PERFORMANCE INDEX (Px)
  • Track record – met or exceeded expectations of own clients over the past six months
  • Qualify for invitation to tender / quote
    • Those not qualifying are on the road of development in order to qualify.
  • VALUE INDEX (Vx)
  • Comparing Performance to cost (tender / quote)
  • High performance score means on time, within budget and as specified
  • Strong motivator for development – higher Px means higher Vx
    • More value for money

PROCUREMENT DECISION COULD NOW BE JUSTIFIED

PROCUREMENT DECISION COULD NOW BE JUSTIFIED

slide7

Agenda

  • The ten goals to defray a scary scenario
  • What will the end result be?
  • What should we do, in general, immediately?
  • What should we do with work in progress?
  • What are the first steps for new work?
  • How do we enforce continuous improvement?
  • Benefits – from a scary scenario to a win-win scenario
  • What is the way forward today?
b2b compliance indices

NAME OF ENTERPRISE ……………..….. …………….

B2B Compliance Indices

CONTACT DETAILS

………………………..

………………………..

…………………………………………….…………………………..

COMPLIANCE

INDEX

62.4%

SPECIALITY ……………………

CAPACITY ……………………

REMARKS:

Compliance Benchmarks for the Industry by the Industry

business integrity indices the why

Overall Client Value Perception

82%

Repeat Business

68%

Overall Client Satisfaction

(Site Performance Index)

94%

Management: Executive & Line

81% & 63%

Support Staff

88%

Supervisor

72%

Authorising function

71%

Procurement Function

94%

User Function

23%

Trade Related

94%

Business Related

23%

Threats & weaknesses

12%

Security & Safety

75%

BUSINESS INTEGRITY INDICES - “the WHY?”

MAKING TRANSPARENT:

PERFORMANCE / CONSISTENCY / REAL COST OF SUPPLIER

NAME OF SUPPLIER

…………………….

(Remaining Compliant)

CLIENT LOYALTY

INDEX

81.3%

EMPLOYEE PROFICIENCY

INDEX

76.1%

SUSTAINABILITY

INDEX

59%

SUPPLIER PERFORMANCE

INDEX

62.7%

SUPPLIER:

Performance Index: 67%

Value Index:

43%

BEST PRACTICES

INDEX

58.5%

RISK MANAGEMENT

INDEX

43.5%

slide10

ENSURING CONSISTENCY

  • Ensure compliance and Establish proficiency.
  • Levelling the playing fields – weeding out unfair competition
  • In a complex multi-disciplinary environment compliance
  • could not be generic and once off, it must be:
  • Specific to the SLA and its
  • Key Performance Indicators
  • Swift
  • Refreshed with regular intervals
  • Assisting suppliers to Comply
slide11

Agenda

  • The ten goals to defray a scary scenario
  • What will the end result be?
  • What should we do, in general immediately?
  • What should we do with work in progress?
  • What are the first steps for new work?
  • How do we enforce continuous improvement?
  • Benefits – from a scary scenario to a win-win scenario
  • What is the way forward today?
slide12

WORK IN PROGRESS

  • CONTINUOUSLY TRACKING PROGRESS AGAINST DELIVERABLES AND TIME SCHEDULES – THREE MILESTONE REPORTS ON VALUE BEING CREATED
    • Immediate evaluation of value being created
      • Interim Performance Improvement Proposals
      • Workshop for pro-active remedies
    • Value verdict on delivery –
      • Interim Performance Improvement Proposal &
      • Workshop for continuous improvement
    • Value adjudication 3 - 6 months downstream after delivery
      • Final Performance Improvement Proposal –
      • Workshop for continuous improvement
slide13

Agenda

  • The ten goals to defray a scary scenario
  • What will the end result be?
  • What should we do, in general immediately?
  • What should we do with work in progress?
  • What are the first steps for new work?
  • How do we enforce continuous improvement?
  • Benefits – from a scary scenario to a win-win scenario
  • What is the way forward today?
slide14

PROCUREMENT STARTS WITH COMPILING SLA’S

Compiling a SLA is the easy part – it comprises needs, rules and do’s and don’ts

The real challenge is:

CREATING VALUE FOR ALL USERS OF PROCURED GOODS AND SERVICES

ENCOURAGING DEVELOPMENT FOR ALL ROLL PLAYERS

slide15

CONDITIONS FOR EFFECTIVE SLA’S

  • CORRECT AND PRECISE WORDING
  • OPEN BOOK AND CONSULTATIVE
  • INCLUSIVE
  • BASED ON PROPER NEEDS PROFILE
  • WRAPPED AROUND:
  • Realistic milestones
  • Deliverables that are:
    • Meaningful,
    • Visible and
    • Measurable
  • Payment structure and penalties that are
    • Fair
    • Clearly defined
    • Agreed
slide16

Agenda

The ten goals to defray a scary scenario

What will the end result be?

What should we do, in general immediately?

What should we do with work in progress?

What are the first steps for new work?

How do we enforce continuous improvement?

Benefits – from a scary scenario to a win-win scenario

What is the way forward today?

slide17
Some components of a typical

Performance Improvement Proposal

Submitted to suppliers

For their continuous improvement

slide18

The Solution: Q5

How does Q5 add value?

VMP: Context of Financial Services – Example Performance Profile

slide19

Great

Business

Processes

Invest/improve

I

m

p

a

c

t

3

Invest/improve

3

Ry

.

22

3

1

Xxx

7

MAINTAIN

Loyalty

Ry

2. Bxx

22

7

MAINTAIN

Loyalty

3.Cxx

1

8 10

Ry

22

16,7,& 9

4. Dxx

1

8 10

24,

7

16,7,& 9

5. Exx

24

24

7. Gxx

8. Hxx

Evaluate & control latent problems

9. Ixx

POSSIBLE

WASTE

10. Jxx

11. Kxx

of scarce

resources

21

17

21

17

14. Xxx

11,13,& 5

21. Xxx

18 19 25 21 2 23 4

24. Xxx

25. Xxx

20

0 %

25 %

50 %

75 %

85 %

100 %

Little

Impact MOST on changing value experiences,

in the SHORTEST TIME,

within current RESOURCE CONSTRAINTS.

urgent

remedy

PERFORMANCE

INDEX

72

PERFORMANCE

INDEX

64

6. Late delivery

21 17

24. Rel of content

slide20

The Solution: Q5

Continuous improvement

Perceived value increase due to improved performance.

slide21

69

110

The Solution: Q5

Q5 adds value – continuous improvement

Improved performance is quantified - measurable in exact terms

slide22

The Solution: Q5

VMP: Example – Summary of Indices

BANK / BUS. UNIT

AND SERVICE PROVIDER

(L = Leading, Con = Control & Sup = Support)

MANAGEMENT

EMPLOYEE

GRATIFICATION

SUPPORT BASE LOYALTY

PERFORMANCE INDEX

FINANCIAL MANAGEMENT (CON), INFORMATION MANAGEMENT (SUP), OPERATIONS (SUP), PROCUREMENT (SUP) & EXTERNAL RELATIONS (SUP)

PROCUREMENT (SUP), OPERATION (SUP) ADMIN (SUP) & INFORMATION MANAGEMENT (SUP)

FINANCIAL MANAGEMENT (CON), OPERATIONS (SUP), ADMIN (SUP) & PROCUREMENT

HUMAN RESOURCE MANAGEMENT (SUP), PROCUREMENT (SUP)

MARKETING (L), ETHICAL CONTROL (CON) & ADMIN (SUP)

76

71

60

68

HQ

68

78

Principal

Admin Line manager

63

AM

75

68

Prof. Services

Tech. Line manager

61

Admin ops

68

Site manager

BM

58

69

Tech ops

68

59

Site foreman

SM

73

BEST

PRACTICE

RISK

VALUE

INDEX

SUPPLIER

PERFORMANCE

59

62

72

67

Trade Specific

Security

Authoriser

75

72

69

Business Specific

Safety

67

64

Purchaser

60

Fair Trade

Threats

66

64

User

51

Trade Ref

66

Weaknesses

64

slide23

The Solution: Q5

Second Evaluation

MANAGEMENT

EMPLOYEE

GRATIFICATION

SUPPORT BASE LOYAL

PERFORMANCE INDEX

86

81

70

89.6

BEST

PRACTICE

RISK

SUPPLIER

PERFORMANCE

72

82

77

First Evaluation

MANAGEMENT

EMPLOYEE

GRATIFICATION

SUPPORT BASE LOYAL

PERFORMANCE INDEX

76

71

60

69.6

BEST

PRACTICE

RISK

SUPPLIER

PERFORMANCE

62

72

67

slide24

Agenda

The ten goals to defray a scary scenario

What will the end result be?

What should we do, in general immediately?

What should we do with work in progress?

What are the first steps for new work?

How do we enforce continuous improvement?

Benefits – from a scary scenario to a win-win scenario

What is the way forward today?

slide25

BENEFITTING FROM A WIN-WIN SCENARIO

COST TO PERFORMANCE - most cost effective suppliers / highest value

AS SPECIFIED, ON TIME WITHIN BUDGET – lower cost / risk

INSTANTANEOUS BEST-FOR-ME DECISIONS - Vx derived from Px

SUSTAINABLE SUPPLIERS - cost driven procurement decisions are negative - rewarding the wrong party for the wrong reasons

PROACTIVE REMEDIES - interim evaluations and PIP’s

ERADICATE BRIBERY AND CORRUPTION – justify buying decisions and supplier choices

DYNAMIC DEVELOPMENT PROGRAMME FOR ALL

WEEDING OUT THE ROGUES – insistent poor service

slide26

Agenda

  • The ten goals to defray a scary scenario
  • What will the end result be?
  • What should we do, in general immediately?
  • What should we do with work in progress?
  • What are the first steps for new work?
  • How do we enforce continuous improvement?
  • Benefits – from a scary scenario to a win-win scenario
  • What is the way forward today?
slide27

Close

Next Steps

  • APPLYING THE PROCESS
    • Appoint an internal Value Champion to facilitate the implementation process
    • Sourcing out your compliance function subject to your specific requirements
    • Applying the Value Management Process to all suppliers for
      • Work in progress
      • New work
    • Provide a list of current and past suppliers
    • Provide facilities for suppliers to meet
    • Agree to the wording of invitations stating that: you would:
      • Work only with compliant suppliers
      • Be guided by the Performance Indices of your suppliers
      • Prefer to deal with suppliers eager of establishing loyal relationships with you based on their Fundamental Value
      • Q5 has been assigned to develop a pool of suppliers to reach for excellence from which you will choose
slide28

Essential info required

  • ON A EXCEL SPREADSHEET WITH A
  • COLUMN FOR EACH OF THE FOLLOWING HEADINGS
  • (It means there are seven columns.)
  • Company name
  • Company telephone number
  • Contact Person – name & surname (it could be separate)
  • E-mail address of contact person
  • Industry type or main focus of business
  • Company size (large, medium, small, micro)
  • Active or passive supplier