Niet ijs, maar mismanagement is het probleem. Dit zeggen ingewijden bij NS en ProRail

To Stimulate

To Encourage

“Niet ijs, maar mismanagement is het probleem” Dit zeggen ingewijden bij NS en ProRail

Ketengericht denken en acteren binnen de service industrie

Projectleiderschap in het kwadraat IPMA Utrecht 20 september 2012 To Challenge

To Bring about the Best

AGENDA 1.

Lessons from Driving a busy road

2.

Background speaker

3.

Interesting Times: Trends, issues, habits and root causes

4.

“Story behind the Scenery”

5.

The Good, the bad and the ugly

6.

Your feed back & issues

7.

Building Service Supply Chains •

Roadmap

•

Detailed dive into Diagnostics

•

Services S&OP

•

Methodologies & Tools

8.

Takeaways,

9.

Relevant Sources of Wisdom

Tired of traffic jams?

What happens in traffic and all other comparmentalized systems?

Amplification: δ output >> δ input. I.e. the so-called Bullwhip effect as at each hand over this phenomenon occurs. - Oscillation: One disturbance oscilates thoughout the chain. - Phase lag. It takes time for the impulse to reach the back end of the organization. 1961: Jay Forrester (MIT): Industrial Dynamics - “The blame game” - “Assumption gaming” - “Bounded rationality in decision making”: -

AGENDA 1.


2.

Background speaker

3.


4.


5.


6.


7.


Roadmap

•


•

Services S&OP

•


8.

Takeaways,

9.


Quite a diverse luggage...

AGENDA 1.


2.

Background speaker

3.


4.


5.


6.


7.

Building Services Supply Chains •

Roadmap

•


•

Services S&OP

•


8.

Takeaways,

9.


We are living in in interesting times!

Trends that have a profound impact on how we conduct business

Social Media & Brand Image/Identification*

Buy Brand

Positive Chat

Brand Identification

Leverage

Positive Perception

* Steven van Belleghem : The Conversation Manager

Promote Brand

Brand as Model

Calling for totally new ways of working: Dynamic, Responsive & Collaborative

Old Habits

New ways

Command & Control

Connect & Collaborate

“Systems” is an IT term

Systemic thinking as a managerial concept

Coping by splitting up

Coping by holistic synthesis

ERP

SaaS

HIMS

Old habits however are hard to eradicate. DigiTimes Wrongly Claims Slow Ramp Up of iPad 3 Production Could Cause Supply Problems at Launch

☺

Killer Application

AGENDA 1.


2.

Background speaker

3.


4.


5.


6.


7.


Roadmap

•


•

Services S&OP

•


8.

Takeaways,

9.


For these habits to dissipate we have to understand why…

Processes: boring & piece of cake!!

-

O rd e rs re c h ts tr e e k s in O M

That’s what we see from the Board Room That’s what we do not like to discuss Processes are considered No-Brainers These Hi-level processes cast in IT stone

O rd e r s v ia a u t. in t e rf a c e

P o te n t ie le g e b ru ik e rs v a n d e d ie n s t

O r d e r s b ij h e t e m a il c e n t ru m (E M C )

O r d e r s in g e v o e r d in e e n IT s y s te e m

- Not on our regular Mgt’s Agenda - Dear Consultants disclose this minefield

O rd e rs in O r d e r M anager

O r d e r m is t c o r r e c te g e g e v e n s O r d e r u itv a l

N i e t g e c le a n d e m odem s

P o te n ti e l e k l a n te n

I P B o r d e r in O M

IP B o rd e r m e t D S L p o o rt to e g e w e z e n

A a n v ra a g m u l ti m e d i a acoount

Aa nm naken m a ila cc o u n t V T out

C o c k p it K P N . C O M

S e r v e r c a p a c i te i t KPN>COM

M OC

P r o v i si o n e d i n TSM

C a p a c i te i t T S M

S le u te le n U p g ra d e V ri j e D S L p o o rte n + s p l i t te r

S e r v e r c a p a c i te i t

M odem v e rz e n d c a p a c i te i t

S e r v e r c a p a c i te i t in a a n vra a g

- Many local not interconnected initiatives - IT and actual Processes disconnected

S n e lh e id p r o g n o se V o i c e p l a tfo rm

M ode m ve rz e n d e n

P l a t fo r m i n t e r n e t C o m p l e e th e i d te c h n i s c h e sp e c i f i c a t i e B e sc h i k b a r e c a p a c i te i t

F a c tu r e re n

- Frustration all over the place. - Top level instructions are not recognized. - We cannot deliver as requested!!

CALL CENTER SERVICES KPN 2007/8

< 2007

> 2007 < 2009

- Focus on Cost

- Focus on Quality

-

Cost center 70 % of FTEs are Temps Target: Time per call & # calls High attrition rate Work stress Low Quality Low Customer Satisfaction High number complaints related to bad Call Centre Service

-

Profit Center 50/50 temp & Own Purpose: Complaint resolution Normal attrition High employee satisfaction High quality High Customer satisfaction Fast Complaint resolution leads to Cross & Upsell: 12% extra margin

“Targets”, KPI’s & “Purpose” BNR Radio 16 december 2010 08:35: “De Politie moet toch worden gemeten op haar effectiviteit”

Naar aanleiding van het voorgenomen besluit van Minister Opstelten om de “Bonnen Quota” af te schaffen

The fallacy of control

Horizontal disconnect : intra-company

How most of time (IT) service quality suffers from conflicting incentives.

Volume

Sales

Own P&L

Consultancy

Cost

Data Centers

Cost

Own P&L

Own P&L

Managed Services IT Ops

Hardware

Horizontal disconnect intra-company NEED TO COLLABORATE ACROSS COMPARTMENTALIZED FUNCTIONS & PROCESSES How compartmentalized are you? Look at the Incentives & Targets

Sales

Service Delivery

Operations Logistics Procurement Partners

AGENDA 1.


2.

Background speaker

3.


4.


5.


6.


7.


Roadmap

•


•

Services S&OP

•


8.

Takeaways,

9.


Mgt. View of Partner network in Pin-Terminal Business

Mgt. View of Partner network in Pin-Terminal Business

Processor

Processor

Traditional Swimlanes give a Simplistic view, but as Einstein said: “Make everything as simple as possible, but not simpler”

The real world in Pin-Terminal business 6

1

5

2

3 4

Plus: Retailer (“Staples”), LSP, Service Engineer, Repair = 10

BP's Oil Spill Report Lays Blame on "Multiple Companies and Work Teams"

BP's Oil Spill Report Lays Blame on "Multiple Companies and Work Teams" Top executives do not understand technologies they are using No one person in charge of the decision process Passing the buck, passing the risk, passing the blame, etc 11 decisions in month before disaster that added risk but reduced costs

Excerpt MIT Report Murray Turoff

BP's Oil Spill Report Lays Blame on "Multiple Companies and Work Teams" On top of all that there is the Irrationality of Management: •

Efficiency (cost reduction) more important than Effectiveness (risk reduction)

•

Top executives do not need to know details other than financial ones

•

Public relations and lawyers are top advisors in emergency decisions

•

No need for real lateral communications

•

Discounting the future of compounding (non linear) variables using money (linear) as the representation variable

Conflict between: Asset Utilization, Cost and Safety

Excerpt MIT Report Murray Turoff

The Collaborative Response!!

Pitfall of a Rapid Market Launch Success

Case study: Telecom Provider 2006 thru 2008 • Financial pressure: o o

Fierce competition Increased “line loss” rate

•Solution: Avoid o o

Decision to launch own version of VoIP services Self-cannibalize own sales

“Succes” of VOIP

β

GAP

Customer Demand (Orders/wk)

Kassa & Radar in December 2006/January 2007

• Low customer Demand satisfaction • Excessive costs • Inadequate market Capacity share growth

Customer Demand VoIP services , normalized, 2006-2008 Q2

“Sunny Day” Capacity Mgt

Service order rate

New sales orders

Provisioning WIP

Provisioning rate

Field Install WIP

Field Install rate

Churn rate Installed Base

• No capacity required. • Automated systems do all the work or customers do it themselves

But most of the time it rains

Service order rate

Primary Processes Provisioning rate Provisioning WIP New sales orders Provisioning Fail rate

Do-It-Yourself Field Install WIP

Provisioning Fix rate


Required Technician Install rate Technician Assisted Field Install

Provisioning Rework

Technician Install rate

Calls from Primary Processes

Secondary Processes Incoming Calls

Customer Install rate

Call Load

Calls Handled Call Workload

Complaints Load Incoming Complaints

Complaints Handled

Focus on flows suggest processes are under control

Rework Rework Inflow Data

18000

Rework Outflow Data

Rework

Rework Inflow 15000

Rework Outflow

12000

MRP Thinking 9000

6000

3000

0 1

9

17

25

33

41

49

57

65

73

81

89

97

Rework Stock (WIP): Another Story

20000

Int (In -out) 16000

12000

8000

4000

0

Jan 107

9

17

25

33

41

Jan 49 08 57

65

73

81

89

But most of the time it rains

Service order rate

Primary Processes Provisioning rate Provisioning WIP New sales orders Provisioning Fail rate

Do-It-Yourself Field Install WIP

Provisioning Fix rate


Required Technician Install rate Technician Assisted Field Install

Provisioning Rework

Technician Install rate

Calls from Primary Processes

Secondary Processes Incoming Calls

Customer Install rate

Call Load

Calls Handled Call Workload

Complaints Load Incoming Complaints

Complaints Handled

Call ratio: KPI that continued to deteriorate as key elements of drivers were not understood. Lesson difficult to digest: Know the process and its dynamics before adopting a Target/KPI or allocating Capacity.

Volume incoming orders Sales rate

Process Type 1: Work = ⌠ (Volume incoming orders)

P1 Install rate

Rework rate

Error rate

Quality of orders

Problem resolution time P2

Calls from regular install

Cancellation rate

Process Type 2: Work = ⌠ (P1, Order Quality )

Calls from rework

Call rate

P3 Solution rate

Process Type 3: Work = ⌠ (P1, P2, Quality Problem Resoltion Time) = ⌠ (V, Q & QPRT)

Impact Failure Demand

Quality drop of 10 % 1: Av Quality

2: Worklo…all center

1: 2: 3: 4: 5:

1 3 150 20000 15000

1: 2: 3: 4: 5:

1 2 75 10000 7500

1 Incoming order volume is perfectly stable in this scenario.

4 2

3: FTE Call handling

3

1

5

FTE more than doubles 2 months 4: New s…sales rate Calls offered after initial5: quality drop, then have to be brought back down again. 1

1

5

2

5

3

4

5

3

4

4

3 2 2

1: 2: 3: 4: 5:

0 0 0 0 0 0.00

Page 4

12.50

25.00 Weeks Untitled

Workload in the call center bounces up and down, leading to higher complaint rates and higher staff turnover.

Incoming call volume peaks several weeks after drop in order quality.

37.50 50.00 18:52 woe, 2 apr 2008

*) Bron: Analyse SCEC / UvT

Integral responsibility was lacking

NOBODY HAD INSIGHT OVER THE TOTAL CHAIN PROCES

Service opdrachten bestaande aansluitingen

Orders rechtstreeks in OM

Orders via automatische interface

Potentiele gebruikers van de dienst

Orders in OM

Orders in OFM

OHW voice platform account

OHW dslam

Werkend voice account 1

OHW RG Distributie orders

OHW FT out account

RG afgeleverd

Definitieve uitval

OHW Service opdracht voor installatie

Voice platform set up

OHW activatie voice account

Geen werkend voice account

Cockpit of email werkt niet

Werkend voice account 2

Nieuwe monteurs wijkcentrale

Verandering kwaliteit EMC medewerker

Aannemen EMC medewerkers

Kwaliteit van KPN verkoper

EMC nieuwe medewerkers

EMC ervaren medewerkers

Aannemen KPN verkopers

Uitstroom EMC medewerkers

Opleiding en ervaring KPN Verkopers

Verkoop productiviteit nieuwe KPN Verkopers

Productiviteit EMC ervaren medewerkers

Productiviteit EMC nieuwe medewerkers

Nieuwe KPN verkopers

Ervaren KPN verkopers

Uitstroom KPN verkopers

Verkoop productiviteit ervaren KPN verkopers

Workload bij verkopers

Inhuren outbound capaciteit

Ervaren FT out specialist

Aannemen FT out specialist

Nieuwe call agents (Outbound)

Productiviteit ervaren monteurs wijkcentrale

Nieuwe vp specialist

Aannemen vp specialist

Workload monteurs wijkcentrale

Verkoop Capaciteit

Capaciteit EMC Workload bij EMC medewerkers

Nieuwe FT out specialist

Ervaren monteurs wijkcentrale Uitstroom monteurs wijkcentrale

Capaciteit monteurs wijkcentrale 0

OHW bij Collections

Facturen om af te boeken

klacht n.a.v. Collections IPB verlopen facturen

Service Productiviteit Ervaren Monteur

OHW Facturen met klachten

OHW 1e Lijn support Melden van storingen

afboeken

OHW 3e lijn support

OHW 2e Lijn support

Opgelost in 1e lijn

<Werkende IPB aansluiting> Annulering na zichttermijn na 7dgn

OHW Klachten te routeren

OHW Klachten Routeren

Klacht komt eraan

Opgelost in 3e lijn

Opgelost in 2e lijn

Gecancelde facturen

opgelost

gecorrigeerde facturen

Reparaties

Facturen met klachten

Service Capaciteit Monteurs

Calls door monteurs

betaal afspraken Facturen zonder klachten

IPB geincasseerde / betaald facturen

Betaling

klacht moet opnieuw gerouteerd worden

Opleiding en ervaring FT out specialist

Uitstroom FT out specialist

Percentage monteurs voor service

Inhuren

CEVA Logistics Capaciteit

Afstoten van capaciteit

Aannemen monteurs

Productiviteit monteurs wijkcentrale

Kwaliteit EMC medeweker

IPB openstaande facturen

Service Productiviteit Nieuwe Monteur

Opleiding en ervaring monteurs wijkcentrale

Verandering kwaliteit KPN verkoper

OHW factureren

Aannemen monteurs wijkcentrale

MENSEN

Klanten te factureren

Rework FT out account

Rework account platform

Afsluitingen

Werkende IPB aansluiting

OHW IPB installaties door monteur

OHW Order rework Re-worked orders

Fail rate

Reguliere opzegging

RG Retour Uitval

Uitvaal interface

<Service Capaciteit Monteurs>

Niet werkende IPB aansluiting

<Service Capaciteit Monteurs>

Reguliere opzegging niet werkende dienst

Oplossing rate

Orders bij emailcentrum (EMC)

Orders in IT systeem

OHW IPB installaties DHZ

Productiviteit nieuwe FT out specialist

Afstoten outbound capaciteit

Ervaren vp specialist

Opleiding en ervaring vp specialist

Uitstroom vp specialist

Nieuwe TSM specialist

Aannemen TSM specialist

Productiviteit ervaren VP specialist

Productiviteit nieuwe TSM specialist

Workload VP specialist

Opleiding en ervaring TSM specialist

Kwaliteit VP specialist

Ervaren TSM specialist

Workload bij monteurs

Kwaliteit reparaties

Ervaren KPN Monteurs (installatie en service)

Installatie Capaciteit Monteurs

Uitstroom KPN monteurs

Installatie Productiviteit ervaren monteur

Verandering kwaliteit CEVA Logistics

Nieuwe AP Monteurs (installatie)

Ervaren AP Monteurs (installatie)

Kwaliteit Collections werk

Facturering ervaren medewerkers

Productiviteit Facturering nieuwe medewerkers

Collections nieuwe medewerkers

Productiviteit Facturering ervaren medewerkers

Verandering kwaliteit monteur service

Kwaliteit CEVA Logistics

Kwaliteit van monteur installatie

1e, 2e, 3e lijn nieuwe medewerkers

Productiviteit Collections ervaren medewerkers

Kwaliteit Facturering

Klant Reactie nieuwe medewerkers

Productiviteit Klant Reactie nieuwe medewerkers

Workload bij reparaties

Workload bij klachten behandeling

Kwaliteit Doe-het-Zelf Installatie

Kwaliteit TSM specialist

PRODUCTEN Kwaliteit RG Hardware Verandering kwaliteit RG Hardware

Inkoop dslam

Nieuwe dslam slot

Nieuwe dslam kaart Bouwtijd dslam slot

Bouwtijd dslam kaart

Bestaande dslam

Nieuw VP Devaluatie dslam

VP in bestelling

Verandering kwaliteit IT systemen

Nieuwe release IT systemen

Updated IT systemen

Capaciteit IT systemen

IT systemen Stabilisatie IT systemen

Verandering kwaliteit Order Manager Kwaliteit IT systemen

Verandering stabiliteit Ordermanager

Nieuwe release OrderManager

Nieuwe release Interfaces

Stabiliteit Interfaces

Updated Interfaces

Updated OrderManager

Kwaliteit Order Manager

verandering stabiliteit dslam

Stabiliteit VP Verandering stabiliteit VP

Bestaand IP

Bouwtijd KPN.com Nieuw KPN.com

Capaciteit internet platform 0

Stabilisatie OrderManager

Bestaand KPN.com

Capaciteit KPN.com-

Capaciteit OrderManager

Order Manager

Capaciteit Interfaces

Interfaces Stabilisatie Interfaces

Bouwtijd TSM

Devaluatie TSM

RG's Bestellen

KPN.com server in bestelling

RG's in bestelling

RG's ontvangen

Voorraad RG's

Verzenden

Devaluatie KPN.com Capaciteit TSM

Stabiliteit mail server

Verandering kwaliteit RG Software

Verandering stabiliteit mail server

Stabiliteit KPN.com

Uitbreiden TSM server

Verandering stabiliteit KPN.com Updated TSM system Nieuwe TSM release

Kwaliteit Interfaces Verandering stabiliteit Interfaces

Stabiliteit OrderManager

Stabiliteit dslam

Devaluatie IP

Bouwtijd IP Nieuw IP

Stabiliteit IT systemen

Bestaand TSM

Nieuw TSM TSM in bestelling

Capaciteit mail serverIP in bestelling

Verandering stabiliteit IT systemen

Bestaand mail platform

Capaciteit voice platform-

dslam capaciteit-

SYSTEMEN

Nieuw mail platfom

Devaluatie VP

Devaluatie mail platform

Bouwtijd mail platform

Mail server in bestelling

Bestaand VP Bouwtijd VP

Kwaliteit RG Software

TSM-configura tie capaciteit

Verandering stabiliteit FastTrack

Nieuwe release FastTrack

Stabiliteit FastTrack

Updated FastTrack

Capaciteit FastTrack

FastTrack Stabilizatie FastTrack

Verandering stabiliteit Billing & Collections systemen Nieuwe release Billing & Collections systemen

Afstoten TSM configuratie capaciteit

TSM systeem

Stabilisatie tijd TSM systeem

Verandering kwaliteit TSM-configuratie

TSM-configura tie kwaliteit

Verandering Stabiliteit Vergoeding systemen Updated Vergoeding Nieuwe release Systemen Vergoeding Systemen

Stabiliteit Vergoeding systemen

Stabilizatie Vergoeding systemen

Stabiliteit Billing & Collections systemen

Capaciteit Billing & Collections Systemen Capaciteit ATS Stabiliteit ATS

Updated Billing & Collections systemen

Stabilizatie Billing & Collections systemen

Capaciteit Vergoeding systemen

Vergoeding systemen VVV, VVA, VVE

Billing & Collections Systemen

Stabiliteit Klachten systemen

Verandering stabiliteit ATS

Nieuwe release ATS

Capaciteit Klachten systemen

ATS

Updated ATS Stabilizatie ATS

Nieuwe release Klachten systemen

Productiviteit Reparatieteam ervaren medewerkers

Capaciteit Reparatieteam

Productiviteit Klant Reactie ervaren medewerkers Capaciteit Klant Reactie

Workload bij support

Workload bij Collections

Reparatietea m ervarenme nsen

Productiviteit Reparatieteam nieuwe medewerkers

Klant Reactie ervaren medewerkers

Productiviteit 1e, 2e, 3e lijn ervaren medewerkers Capaciteit 1e, 2e, 3e lijn

Kw aliteit van monteur service

Reparatieteam nieuwe mensen

Kwaliteit klachten behandeling

1e, 2e en 3e lijn ervaren medewerkers

Productiviteit 1e, 2e, 3e lijn nieuwe medewerkers

Capaciteit Collections

Workload bij facturering

Afstoten AP Monteurs

Kwaliteit support

Collections ervaren medewerkers

Productiviteit Collections nieuwe medewerkers

Verandering kwaliteit DHZ-installatie Verandering kwaliteit TSM specialist

Verandering kwaliteit FT out specialist

Facturering nieuwe medewerkers

Capaciteit Facturering

Inhuren monteurs

Verandering kwaliteit monteur installatie

Workload TSM specialist

Kwaliteit FT out specialist

Verandering kwaliteit VP specialist

<Service opdrachten bestaande aansluitingen>

Uitstroom TSM specialist

Productiviteit ervaren TSM specialist

Capaciteit TSM specialist

Workload FT out specialist

Kwaliteit monteurs wijkcentrale Verandering kwaliteit monteurs wijkcentrale

Installatie Productiviteit nieuwe monteur

Productiviteit ervaren FT out specialist

Capaciteit VP specialist 0

Productiviteit nieuwe VP specialist

Capaciteit FT out specialist 0

Nieuwe KPN Monteurs (installatie en service)

Updated Klachten systemen

Stabilizatie Klachten systemen

Klachten systemen

Conclusion

The VOIP “Supply Network” was totally and at every level “out of control”

- Operational

Execution:

Crisis Management

- Tactical

Coördination:

Stovepiped

- Strategic

Design:

Grown, not built

AGENDA 1.


2.

Background speaker

3.


4.


5.


6.


7.


Roadmap

•


•

Services S&OP

•


8.

Takeaways,

9.


Feed Back & Issues

Wat zijn de belangrijkste issues, die SC samenwerking in de weg staan en hoe zouden jullie dat oplossen

AGENDA 1.


2.

Background speaker

3.


4.


5.


6.


7.


Roadmap

•


•

Services S&OP

•


8.

Takeaways,

9.


Paar weken

Sessies zelf: 2 dagen Uitwerken:2-3 weken Blinde vlekken: 8 weken

3 à 4 maanden

Afhankelijk van org support: tot vier maanden

AGENDA 1.


2.

Background speaker

3.


4.


5.


6.


7.


Roadmap

•


•

Services S&OP

•


8.

Takeaways,

9.


Know how is not enough…….

The Square Hare from Delaware

Know Why is however a rigorous process

Crisis Mgt.

Symptom

Mgd. Results

Problem

Root Cause

Remedy

Symptoms: 1. … 2. …. 3. ….

Root Causes 1. … 2. …. 3. ….

1

2

2

Collaborative Diagnostic Sessions

Logic of Root Cause Analysis: via Collaborative Diagnostic Sessions

Managed Results 1. … 2. …. 3. ….

4

3

Remedies 1. … 2. …. 3. ….

Logic of Root Cause Analysis: What time and again is disclosed!

Poor Services High Cost

Root Causes

Managed Results 1

2

Compartmentalized Systems/Processes 2


Symptoms

Quality Up Cost Down

4 Remedies 3

Collaborate

Same logic in virgin situations Measured Results 1

What is needed

2

2


Desired Outcome

4 Anchoring 3

Logic of Collaborative Diagnostic Sessions


•Starting point: Service Design & Delivery Processes as seen from Customer point of view •Assessment of types and frequencies of “demand”. • Regular demand • Failure demand as result of poor quality (rework etc). • Collaborative Design of Service Delivery Processes by zeroing in on: • Who does what • Interdependencies between X and partners • Identification of third party dependencies • Engagement conditions of these third parties • What it takes to collaborate in joint Service Delivery • Determine transparent and measurable Collaborative KPIs to drive joint Service Delivery

Effective Change Management

Attention given to dealing with error lists -

1. 2. 3. 4. 5. 6. 7. 8.

Fullness of file systems

Work pressure +

Agent time investment +

Agent queries +

Customer queries +

+

Intensity of monitoring of interfaces

Disturbances resulting from human intervention

Predictability of consequences of local changes to other systems

-

+

Purpose (in customer terms) Types and frequencies of Demand Capability to respond Value work (Muri) & Waste (Muda) System Conditions that create Waste Obsolete and conflicting Measures Change towards Collaborative Measures Building blocks Design for Purpose

+

+ BREAKDOWNS of interfaces between systems in day process

-

-

Correctness of confirmation letter

No of critical customer process applications (40)

Ability to key in complete order

-

+

-

-

Appear on work list for backoffice

No interfaces between systems

Stability of interfaces between systems

Focus on system-specific performance

Confusion with customer

-

Correction of errors

Unfreeze, Move, Freeze -

Interrelatedness of system performance

Backoffice activity

-

Customer order changes +

-

Up-to-dateness of databases

Ability to sort + out queries Interruption interception of service order (as a circumvention)

+

Customer calls --

Control of system network

Time-outs of systems

+

-

Prevention quality

+ Quality of delivery

Owners of interfaces

People's competence

CUSTOMER SATISFACTION

+

+ Coding complexity

Backup systems available SLAs on interfaces

+ Revenues Upgrade skill levels

+ Budgets

+

2001

Internet

DELIVERY PROCESS TELEPHONE + SUPPORTING SYSTEMS

Work orders PLANTAS

Order Entry SERVERS

CIA / AWO / KIOSK

Order Preparation

Switching

KANVAS / SYMONE SOPHIA

CONNECT / ASAP AXE / 5ESS

KPI 2004 situation: SLA per server “box”; % Complaints = +/- 15% ( norm < 5%); First Time Right = 82% (norm = 95%)

Root Cause Analysis: the Delivery process (1) Root Causes

Problem & Symptoms

change door menselijk handelen

time-out filesysteem is vol

mensen

financien

vertrek van deskundigheid

niet aanvullen van

INSOURCING tijdsdruk CAPABILITIES GONE systemen niet

storingen in koppelingen tussen systemen in dagproces

'storing' interceptie serviceorder (als omzeiling)

geen volledige order inleggen

geen inzicht in gevolgen voor rest

40 kritische klantproces-applicaties

complexe codering

verschijnen op lijst voor back-office

STRESS kost tijd van agent Roeien met de riemen klant niet meteen helpen die we hebben

koppelingen tussen applicaties

fouten in bijwerken back-office komt in actie

kwaliteit van preventie

enkelvoudig uitvoeren

agent gaat uitzoeken verkeerde bevestigingsbrief klant wijzigt wensen

geen eigenaren van koppelingen

geen SLA's over koppelingen

niet kunnen uitzoeken

klant stelt vragen

zeer nauwe verwevenheid van alle systemen

bijgewerkt kennis van mensen

complexiteit van vraag van de klant

netwerken van systemen ook niet beheerst

aandacht voor afhandelen foutlijsten

intensiteit van monitoren koppelingen

ontevreden klant

reactie monteur

uiteindelijk toch fout geleverd

verwarring LEVEL 1 PROBLEM COMPLAINTS klant klant bellen

bellen klant agent

LEVEL 2 PROBLEM RESOLUTION COMPLAINTS

focus op technische performance

change

“BOXES”

What turned into working together: delivery process telephone + supporting systems

Work orders PLANTAS Joint Smart Outsourcing Complaints in 4 Room Partners months to Order Manage collaborate to Orderthe Entry Switching 9 % and within Preparation Process as a improve year to 5 % SERVERS whole Customer Sat CIA / AWO / KIOSKKANVAS / SYMONECONNECT / ASAP SOPHIA AXE / 5ESS 16%

14%

13,4% 12,9% 11,8%

12%

11,4%

10,9%

11,1%

11,0% 10,3%

10,3%

9,9%

9,7%

9,3%

10%

8,9%

8,6%

8,7%

8,4%

8%

9,3%

7,2%

6%

4%

2%

0% 2004.06

2004.07

2004.08

2004.09

2004.10

2004.11

2004.12

2004.13

2004.14

2004.15

2004.16

2004.17

2004.18

2004.19

2004.20

2004.21

2004.22

2004.23

ROOT CAUSES OF SERVICES COLLAPSE : T-Mobile and all Cost driven Service Organizations

Two vicious cycles create problems: R1: Highler worklaods leads to more errors, leads to less output leads to higher workload, leads to... R2: Higher worklaods lead to lower employee satisfaction leads to more churn leads to less capacity leads to higher workloads etc.. Three balancing feedback loops “fix” this: B1: sad but wiser.. B2: at higher costs B3: at lower revenues

Customer satisfaction

+ Delivery performance +

B3

+ Market reputation

Errors chase customers away-loop Work in Progress

Selling new services

Services up and running

-

+

Killer Applicati on

Rework +

R1

Processing capacity required

Stress creates errors-loop +

Error rate +

+

Employee B1 learning Work Stress People learn from + mistakes-loop

Workload -

+ Employee skill level

Processing capacity available + +

+ Hiring of new staff B2

R2

We'll put more people on this-loop

Unhappy staff walks out-loop

+ Staff New hires

Quits

Employee satisfaction

There is a very strong logic, linking Collaborative Diagnostics to…. Outstanding Business Performance

Method

Outcome

1st Tier Effects

Insight in Interdependencies Transparency Collaborative Diagnostics Mobilization of Teams

Common Purpose

No more Gaming

Managed Trust

Measurable & Expanding Collaboration between Parties. Aligned Incentives

Performance Effects

Improved Service and Customer Sat Streamlined and Effective Processes Decrease of Cost of Poor Quality

NPS, EVA, CFROI CVA UP

AGENDA 1.


2.

Background speaker

3.


4.


5.


6.


7.


Roadmap

•


•

Services S&OP

•


8.

Takeaways,

9.


Sales & Operations Planning (S&OP)

Sales & Operations Planning is het management proces dat moet zorgen voor een optimale afstemming tussen verkoop en realisatie

Solution: Collaborative Planning & KPI’s

Collaborative S&OP Meetings: - Monthly meeting w/ representatives of SC players - Based on actual data: - Volume and quality standards

-

a)

monitored

b)

forecast

c)

interrelated & consistent

d)

within fixed parameters

Based upon quantitative model connecting all parts of chain and performance to the customer

Strategic and financial planning

Call Center capacity

Engineers planning

Forecasting

one consensus plan

Hardware availability

Connection capacity

Distribution Planning

Installation capacity Out of control!

Call centre workload

1: Call center 1:

3

1

Desired Level!

1:

2

1

1

1

1:

0 1.00

Page 4

OverCapacity!

13.75

26.50

39.25

Months

time

Call center workload

52.00

Het S&OP besturingsmodel S&OP Masterteam • • • • • • • • •

Marketing

Retail

Responsible Finance Responsible Marketing Responsible Retail Responsible Sales Responsible Connectivity Responsible Installation Responsible Service Responsible Billing Responsible IT

Sales

Connectivity

Installation

Service

Billing

Het Master S&OP proces bestaat uit 5 stappen

Afdeling

Innovatie Management

Marketing & Sales

Input

Procesflow

Marketing / Sales

Review introductie nieuwe diensten

Marketing / Sales

Verzamelen van forecast cijfers

Output

Demand review Marketing / Sales

Capaciteitsgroep

S&OP

Capaciteits groep

Capaciteits review per capaciteitsgroep

Capaciteits groep Pre-S&OP meeting

Opstellen JaarEinde Verwachting (JEV)

S&OP

S&OP meeting

Doel: In de (Master) S&OP meeting wordt het S&OP plan (demand en capaciteitsplan) vastgesteld op basis van de analyse uit de Pre-S&OP meeting

62

The Sales and Operation Process sits at the tactical level between Business Planning and Detailed Planning

Annually/ Quarterly

•

Agreed resource constraints and output levels

Business planning

• •

Defined and/or re-defined objectives, policies, decision guidelines

•

S&OP Tactical Framework Monthly

Weekly

Capacity Review Meeting Service Service Service planning planning planning

S&OP Meeting

D&S Meeting

• Monitored Service Capacity performance • Reviewed Resource Plan • Production and Resource Plan

Daily

Resource Scheduling

• •

Strategic

Service Chain performance related actions Agreed Sales plan Agreed Production and Resource plan

Tactical

Demand Review Meeting

Agreed Consensus Demand Forecast

Sales & Demand Planning

Operational • Monitored performance to customer • Unconstrained demand info

• Actual Capacity • Actual Materials • Service back-log and waiting times

Forecasts Request mgt

Execution

The S&OP tactical planning process is carried out through a rigorous - typical monthly - cycle Every period the S&OP meeting takes place, which consists of: • Formal review of deviations and corrective actions • Formal review & acceptance of sales forecast and capacity • Formal assessment of impact on service levels, waiting times and back-log, utilization and output, inventory and lead times • Formal resolution of demand vs. capacity imbalances

S&OP Tactical Framework Monthly

Capacity Review Meeting

Every period a capacity review takes place per capacity group in which: • Master Plans versus Output is reviewed • Capacity is reviewed • New Master Plan (recommended option) is introduced and discussed

S&OP Meeting Demand Review Meeting

Every period, demand and capacity plans are consolidated so that: • Master Plan (+ options/scenarios if necessary) is generated • Capacity, Service back-log and Inventory projections are determined • Conflict scenarios are determined and highlighted for S&OP

Service Chain KPIs and Projections must be aligned to Strategic and Operational metrics to ensure effective decision making

Strategic Level Business KPIs Tactical level Performance monitoring

‘Looking back’

Operational level

Tactical Planning Projections and KPIs

‘Looking forward’

Functional KPIs

KPIs and Projections focus on critical areas of the Service Chain tactical framework, such as demand and service resources

Decisionmaking and planning

Extending the Planning Horizon: Deplugging the traditional Bottlenecks! Short term planning

Long term planning

Week Planning

S&OP 12 months forward

Capacity

Fixed

Variable

Service Level

Plan Plateaus & Influence

Variable

Fixed

AGENDA 1.


2.

Background speaker

3.


4.


5.


6.


7.


Roadmap

•


•

Services S&OP

•


8.

Takeaways,

9.


Tools of the trade -

System Dynamics Ishikawa Fishbone Theory of Constraints SCOR 6σ Factory Physics BPM

COMMAND & CONTROL THINKING VS CONNECT & COLLABORATE PURPOSE - MEASURES - METHOD

Connect & Collaborate

Command & Control -

Creates inside out Purpose

-

Imposes targets

-

Dictates method

Purpose

Measures

Method

-

Thinks from Customer point of view

-

Derives measures

-

Freedom of Choice

Command & Control vs Systemic (Post Modern) Thinking

Post modern thinking is slightly older than the hills (Read Confucius and Tao)

AGENDA 1.


2.

Background speaker

3.


4.


5.


6.


7.


Roadmap

•


•

Services S&OP

•


8.

Takeaways,

9.


What sets Services Supply Chains apart?

Value & Failure

Service: (S= P– E) = ⌠( QUSP) IT MRP thinking: Stress Traditional Accounting & Reporting: WIP??? Ashby: Vs ≥ Ve Recipe Changes: Installed Base

Wat betekent dit voor de dag van morgen?

Killer Application

# $

Purpose, Measures Methods Lucas; Spreuken XXII-2

KPIs

FOCUS ON COST: QUALITY GOES DOWN FOCUS ON QUALITY: COST GOES DOWN

There is an old expression,

“Seeing is believing”. But it’s more accurate to say that

“Believing is seeing”.

Carl Sörenson, Stanford

To Stimulate

To Encourage

“We will not be able to solve our problems with the same way of thinking that we used when we created them” Albert Einstein

To Challenge

To Stir up on Purpose

AGENDA 1.


2.

Background speaker

3.


4.


5.


6.


7.


Roadmap

•


•

Services S&OP

•


8.

Takeaways

9.


Sources of Wisdom

-

Jeff Conklin: Dialogue mapping, Building Shared Understanding of Wicked Problems. Dennis Sherwood:“Seeing the Forest for the Trees” A Managers Guide to Applying Systems Thinking. Peter Senge: the Fith Discipline “The Art & Practice of the Learning Organization” Kurt Lewin: Action Research and Minority Problems (Journal of Social Issues, 2: 34-46, 1946). John Seddon: Freedom from Command & Control “Rethinking Management for Lean Service John Sterman: Business Dynamics: Systems thinking and modelling for a complex world. Keith Harrison-Broninski: Human Interactions: The Heart and Soul of Business Process Management Robert Johnson & Graham Clark: Service Operations Management Morten T. Hansen: Collaboration “How Leaders avoid the Traps, create Unity and reap big Results” Peter Fingar: Dot Cloud “the 21st Century Business Platform” Raj Sisodia, Jag Seth, David Wolfe: Firms of Endearment; How world class Companies PROFIT from Passion and Purpose Aaker Smith: the Dragon Fly Effect “Quick, Effective and powerful ways to use social media to drive social change” Steven van Belleghem: De Conversation Manager “De kracht van de hedendaagse consument”

-

Begin 2013: Van Oppen & Van Oppen: Collaborative Business Practices “A Dialogue between generations”

-

Niet ijs, maar mismanagement is het probleem. Dit zeggen ingewijden bij NS en ProRail

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