DRAFT
KPI Tracking Approach
Siemens Power Generation November, 2003
Telecom Media Networks Strategic Business Consulting
v4.2
Connect! will design and implement SAP supported To Be processes according to end to end principles Scope:
Process and Commodity scope
I. Forecast To Supply Chain Planning I.1 I.2 Long-term I.3 Mid- / capacity short-term FTS Forecasting planning capacityleveling
I.4
Strategic Sourcing
Turbine
I.5
G33 Components Out of scope
BID Processing
(supplier selection)
Qualification of supplier*
(*strategic sourcing)
S
II.1
(simulation)
(simulation)
S
MRP Run + Processing
S Project Scope
II.5 II.6
II. Order To Cash
OTC
Receive + create customer order
II.2
II.3
II.4
Check complete customer order
(until P.Req. incl. Make or buy)
Demand to fulfillment
(customer order)
Outbound logistics
Create invoice
Accounts receivable
No Touch Order Process
S
III.2
III. Purchase To Pay P.Req. PTP Convert to purchase or
III.1
transport order
Release + transmit purchase order
III.3
III.4
III.5
Purchase order tracking
Purchase order change
Rework / Scrap / Return
III.6
Goods receipt & payment
PTT
IV. Production Triggering to Transfer-cost settlement IV.1 Convert planned order Manufacturing to production order
MDM
V. Master Data Maintenance (material, customer, vendor, info record, outline agreement, bill of material, routings, production resource tools) VI. Reporting (KPIs)
S S
v4.2
2002 Cap Gemini Ernst & Young - All rights reserved
Twelve different KPIs will be used to measure process accuracy improvements within the implementation phase of Connect!
KPI tracking - KPIs Streams
FTS OTC
Themes
LTP implementation No Touch Order Process implement. MRP utilization Purchase order tracking - Supplier portal implementation - QM implementation Rework Handling Material Master Maintenance Bill of Material Maintenance Data Cleansing Price controlling/moving average price Product hierarchy implementation Business warehouse implementation Project communication
KPIs
1 2 3 4 5 6
# styles with capacities not maintained % E-Biz eligibility checked materials No Touch Order Rate # components converted to single MM # manually created P. Reqs # blocked invoices % MM maintained # critical exception messages % FAUF cleansed
Not process related progress tracked via project milestone plan
II. I. II. I. II. II. I. II. I.
Connect!
PTP
7 8 9
MDM/ DC
Reporting
10 11
% employees trained
I. I. I.
I. Implementation
progress
CM&E
II. Process / Data accuracy
Role profile development Training
% suppliers trained 12 capability level
v4.2
Focus of the KPI tracking is to report on implementation progress and process accuracy improvements
KPI tracking concept
Implementation progress Process accuracy
I.
Implementation KPI
Data Cleansing, MDM To-be process, MRP Run NA
II.
Process accuracy KPI
Base level
To-Be Modeling Phase
Configuration Phase
System Ramp-up
Daily business
Connect! Project
Daily Business
I.
Implementation KPI Show implementation progress of Connect!, (e.g.: Number of employees & suppliers trained) Shall reach 100 % during ramp-up
III.
Scorecard KPI Conceptional reports (e.g.: price development and inventory reports) from Business Warehouse and other harmonized reports
II.
Process accuracy KPI: Measure data accuracy (e.g.: Number of critical exception messages)
v4.2
2002 Cap Gemini Ernst & Young - All rights reserved
The percent of E-biz checked materials informs about the fulfillment ratio of enabling materials for automated order settlement
Profile Percent of E-business eligibility checked materials
Process Order to Cash
Theme NO TOP implementation KPI definition
I.
Category Implementation KPI
Percent of E-business eligibility checked materials for ZED (Berlin) and all materials (Orla/Hamilton) Measurement approach Measures the materials with E-business codes (ZEx) in the field Material group 3 in comparison to all materials per customer ZED (Berlin) or per location (Orlando & Hamilton) to be checked for conversion Process & KPI responsibilities Owner Accountable Due dates Detailed measurement description
Target & Timeframe
v4.2
The No Touch Order Rate compares the order volume that actually has been settled automatically with the E-biz eligible order volume
Profile No Touch Order Rate
Process Order to Cash
Theme NO TOP implementation KPI definition
II.
Category Process accuracy KPI
No Touch Order Rate for all ordered materials Measurement approach Measures the number of settled E-business order items in a certain period as percent of all order items per customer or per location (e.g. ZED for Berlin) Process & KPI responsibilities Owner Accountable Due dates Detailed measurement description
Target & Timeframe
v4.2
2002 Cap Gemini Ernst & Young - All rights reserved
The number of manually created Purchase Requisitions informs about the correct utilization of the MRP run
Profile Number of manually created Purchase Requisitions
Process Purchase to Pay
Theme MRP utilization KPI definition
II.
Category Process Accuracy KPI
Number of manually created Purchase Requisitions in Turbine Blades & Vanes for regular materials (no rework) Measurement approach Measures the number of manually created Purchase Requisitions for MRP relevant materials (Turbine blades & Vanes) per location Process & KPI responsibilities Owner Accountable Due dates Detailed measurement description
Target & Timeframe
1) For Orlando only possible after introducing the new process
v4.2
The number of critical exception messages informs about the degree of utilization of MRP results by the employees
Profile Number of critical exception messages
Process Master Data Maintenance/Data Cl. KPI definition Exc. Mess. No.: - 5/50: No BOM exists - 5/52: No BOM selected - 6/26:Shortage in indiv. segment - 7 category (20,10,15,30): Exception during rescheduling Measurement approach
Theme Data Cleansing Target 0 0 Red. By 50% Red. By 50% By Date
II.
Category Process accuracy KPIs Base-line1)
B #15 B #4 Orl Haml
0 0 3 670
0 13 1282 972
Berlin pre-requisite Pre-requisite for Berlin: MRP controllers are assigned to newly switched materials Detailed measurement description
Measures the number of critical exception messages per group per MRP code Process & KPI responsibilities Owner Accountable Due dates
Target, Timeframe & Baseline
v4.2
2002 Cap Gemini Ernst & Young - All rights reserved
The percent of employees trained displays the progress to enable the workforce to perform the new processes
Profile Percent of employees trained
10
Process Change Management & Enabling Training
Theme
I.
Category Implementation KPI
KPI definition Percent of employees participated in mandatory trainings Measurement approach Measures the number of employees trained to utilize project specific SAP functionalities as percent of total number of employees have been identified as 'need to be trained' Process & KPI responsibilities Owner Accountable Due dates Detailed measurement description
Target & Timeframe
v4.2
Connect! KPI cockpit EU
Status of Connect! implementation KPIs (Berlin)
I.
KPI Target # 100% End xx/xx
End 12/03 End 1/04 End 12/03 End 01/04 End 01/04 End 04/04
Implementation KPI
2 4 # E-Biz # conv. material compon. 7 # MM maint. 9 10 # FAUF % empl. cleansed trained 11 % sup. trained 12 Capab. level
KPI
E-Biz material Converted components Material Master maintained FAUF cleansed
Description
Percent of E-business eligibility checked materials for ZED (Berlin) and all materials (Orlando, Hamilton) Number of Blades & Vanes components converted to single Material Master structure (Berlin only) Percent of Material Masters maintained (critical fields) of active materials for Turbine Blades & Vanes (Berlin, Orlando, Hamilton) Percent of open Fertigungsauftraege cleansed for selected engine types (Berlin only) Percent of employees participated in mandatory trainings; target is 80% until end of the project (Berlin, Orlando) Percent of suppliers trained in online functionality (Berlin, Orlando) Degree of proficiency for 10 important purchasing activities based on mandatory self-assessments for each training session (Berlin, Orlando)
50%
Employees trained Suppliers trained Capability level
0% Start 09/03 Start 09/03 Start 10/03 Start 07/03 Start 09/03 Start 10/03 Start 10/03 Plan
v4.2
2002 Cap Gemini Ernst & Young - All rights reserved
1300 1200 1100 1000 900 800 700 600 500 400 300 200 100 0 900 800 700 600 500 400 300 200 100 0 18-Jul 1-Aug 15-Aug 29-Aug 12-Sep 26-Sep 10-Oct 24-Oct 7-Nov 24-Oct 7-Nov 21-Nov 5-Dec 19-Dec 2-Jan 16-Jan 30-Jan 13-Feb Target 27-Feb 12-Mar 26-Mar 26-Sep 10-Oct 15-Aug 29-Aug 12-Sep 18-Jul 1-Aug 21-Nov 5-Dec 19-Dec 2-Jan 16-Jan 30-Jan 13-Feb 27-Feb 12-Mar 26-Mar 9-Apr 23-Apr 7-May 21-May 4-Jun 18-Jun 2-Jul Target 9-Apr 23-Apr 7-May 21-May 4-Jun 18-Jun 2-Jul
Process Accuracy KPI: Critical MRP Exception Messages (6-26 + 7-20)
Actual Hamilton A ctual B erlin
Actual
Actual
Berlin Plant 15
Hamilton
Target
Target
1000
1200
1400
1600
1800
2000
200 0
400
600
800
1000
1500
2000
2500
3000
3500
4000
500
0 18-Jul 1-Aug 15-Aug 29-Aug 12-Sep 26-Sep 10-Oct 24-Oct 7-Nov 21-Nov 5-Dec 19-Dec 2-Jan 16-Jan
v4.2
18-Jul 1-Aug 15-Aug 29-Aug 12-Sep 26-Sep 10-Oct 24-Oct 7-Nov 21-Nov 5-Dec 19-Dec 2-Jan 16-Jan
A ctual Total
Actual
A ctual Orlando
Actual
Orlando
Total
30-Jan 13-Feb 27-Feb 12-Mar 26-Mar 9-Apr 23-Apr 7-May 21-May 4-Jun 18-Jun 2-Jul Target
Measurement of Critical Exception Messages informs about the degree of using the MRP by the employees
2002 Cap Gemini Ernst & Young - All rights reserved
30-Jan 13-Feb 27-Feb 12-Mar 26-Mar 9-Apr 23-Apr 7-May 21-May 4-Jun 18-Jun 2-Jul Total Target
Target
Target
