2010 Triangle Chapter SCM Learning System_Alan_Preso

8/9/2019 2010 Triangle Chapter SCM Learning System_Alan_Preso

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BASFs SCM Learning

System

APICS Triangle Chapter

May 12, 2009

Alan L. Milliken CFPIM CIRM CSCP CPF

Business Process Education Manager

BASF Corporation


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20+ years at major manufacturing sites working in Production, Logistics,

Process & Quality Control, Industrial Engineering, Training, and Scheduling

14+ years as a Supply Chain Consultant and APICS Instructor including two

years in Mexico City helping BASF Mexicana improve their supply chain

Identified by an independent consulting firm as one of three APICS members

who best answer the question, What is a Supply Chain Manager?

Served as an SME (Subject Matter Expert) on the team that developed the new

Certified Supply Chain Professional (CSCP) program.

Served as an SME on the team that developed the new Certified Forecasting

Professional (CFP) for the Institute of Business Forecasting (IBF)

Engineering Degree from Auburn University and MBA from Clemson

University

Alan L. Milliken CFPIM CIRM CSCP CPF


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Founded in 1865 as Badische Anilin und Soda Fabric

The worlds leading chemical company with sales of

approximately $80B in 2008

BASF


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Shareholders

provide Capital

Shareholders

receive High ROI

1. Invest in Adding Value

to Products & Services

2. Deliver Value to Your

Customers

3. Create Value for Your

ShareholdersYour

Firm

E

Start Here

And receive

Value in Return

Value-Based Management

(Business Perspective)


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You and Your Firm

provide Capital for

Education & Training

You & Shareholders

receive High ROI

1. You Invest in Adding Value to

Yourself through Education,

Training & Experience

2. You Deliver Value to

Your Firm

3. You Create Value for

Your Firms

Shareholders YOU

E

Start Here

And receive

Value in Return

Value-Based Management(Learning & Development Perspective)


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Value-Based Management Approach

The companys definition of success should define the

contents of the learning system.

Value can be created by:

increasing Profit

and/or

reducing capital employed(e.g., inventories, receivables)

Reducing

capitalemployed

Profit

Source: Kurt Bock Chief Financial Officer BASF Group


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Where Does Value Come From?

TECHNOLOGY

PEOPLE

PROCESS

Triad of Operational Excellence

Which one controls how much value the other two generate?


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Value Drivers and Associated Metrics

Drive Performance


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Forecasting

Improved Service, Less

Inventory, Lower Costs

YES Marketing,Sales,

Operations, SC, Finance

% Error e.g. [(Fcst-

Actual)/Actual]

Process Improvements,

Education & Training,

Better Systems, etc..

Logistics Cost,

Production Cost,

Delivery Performance,

Inventories

SAP R3, Global

Reporting System, GIIC

Source: BASF Group Value Based Management Handbook

Analysis of a Value Driver in

Supply Chain


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Market & External

Environment Analyses

Identification of Customers, Products,

Competition, Socioeconomic Environment

Corporate

Strategy

Overall missions & goals of the Organization,

Recognition of Distinctive Competencies.

Future Direction

(Global Strategy,

New Products &

Services, etc)

Competitive

Priorities(Cost,

Quality, Time,

Price, etc..)

Functional Area Strategies

Finance

Marketing

Operations

Supply Chain

others

Capabilities

current needed

plans

Functional Strategies Driven by Competitive

Priorities Help to Prioritize Learning:

Source: Operations Management, Fifth Edition, Krajewski & Ritzman

Must develop the

supply chain

expertise

required to plan

& execute

strategy.


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Learning Priorities must be Linked to the

Business Model

CIM: Trader-Transactional Supplier

Product: Commodity Bulk Chemical

Competitive Priorities: Price & On-Time Delivery

Supply Chain Value Drivers: - Supply Chain Costs

- Delivery Reliability

- Inventory Investment

Supply Chain Capabilities: - Accurate Forecasting

- Production Cost Minimization- Inventory Optimization

SC Competencies Required: - Demand Planning

- Supply Planning

- Inventory Management


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Help ourcustomers to be

more successful

Ensure sustainabledevelopment

Earn a premiumon our costof capital

Form the bestteam in the

industry

BASFs Vision

None of these business & functional strategies can be achieved

without competent employees who have been provided the necessary

capabilities (behavior, knowledge, & skills) to succeed.


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Human

ResourcesLogistics/SCM

SAP Training

& Support

SAP

Business

Integration

Logistics/SCM HR

Operations

N. A. Learning CoE

Compensation &Performance Mgmt.

Services

Supply Chain

Council

BPO ConsultingTeam

MM Education &Training Team

*BSUG Teams

(e.g. Matls.Mgmt.)

SoftwareApplicationsTraining Team

*BSUG Teams

(e.g. Matls.Mgmt.)

ApplicationDevelopment

Team

The Logistics-Supply Chain Community both provides input to help

guide these services and receives outputs from these services.

Virtual Team

Learning System Virtual Organization


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Identifying and Defining Key

Personal & Technical Competencies


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The Best Team can be built by fostering the use of personal and

professional competencies. Competencies describe the personal

behavior, skills, and knowledge of a person. Competencies

differentiate individual performance and contribution to the team.

There are two types of competencies:

Adding Value through Individual Competency

Success

Refer to capabilities based on

personality, personal trait,

and values.

Describe capabilities in a

specific area of knowledge

(e.g. Supply Chain

Management) and are based

on education & experience.

Competencies enable employees to create value!


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Examples of Personal Competencies

Lead to better utilization of resources,improved decision making, morecreativity, and the ability to manage

change.

Improve your ability to develop andmaintain collaborative working relationships(inside & outside the firm) and express

facts and ideas in a convincing manner.

Improve your ability to guide andinspire employees to meet theirmaximum potential and the ability towork on a team.


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Sample Definition of a Personal Competency

Once the list of personal competencies is developed, a detailed definition of

each is required. For example many supply chain roles require competency

in Analytical Thinking.

Analytical Thinking is the ability to identify key issues and

relationships, patterns and connections buried in a mass ofdata. A person in a job role requiring this competency should

demonstrate:

the ability to break down problems and identify basic

relationships

see inter-relationships in complex information

do complex analyses including what-if and if-then

scenarios


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BASF 2015HPO 2006 Required

CompetenciesTraining Available

Earn a premium on our cost of capital

Help our customers to be moresuccessful

Form the best team in industry

Ensure sustainable development

Business and Financial Acumen

Customer Focus

Leading Employees toSuccess/Teamworking

Environmental, Safety and HealthOrientation

Value Based Management(Learning Portal)

Working with a virtual team (HMMP)

Marketing Essentials (HMMP)

Focusing on your customer(HMMP)

Marketing Essentials (HMMP)

Marketing & Sales Academy(to be launched in 2nd quarter)

Leading a team (HMMP)

Keeping teams on target (HMMP)

Financial Essentials (HMMP)

The Journey to EH&S Excellence (to belaunched in 3rd quarter)

Harvard Mentor Management Program (HMMP)

is used to support Global/Personal

Competencies.


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Examples of SCM Technical Competencies

Information Technology

ERP System

Advanced Systems

PC Skills

General Skills

Continuous Improvement

Project Management

Contract Management

Data Analysis

SCM Competencies

Demand Planning

Supply Planning

Execution & Control

Inventory Management

Distribution & Transportation

Foreign Trade

Technical Competencies describe capabilities in a specific functional area and are

based on education and experience. Each operational function must define thoseTechnical Competencies needed to successfully implement their strategies.


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Define Levels of Technical Competency

Competency:Business Applications Knowledge ERP System

Level 1: Beginning

Completed ERP Overview Training for SCM

Know how and where to find and use ERP tip sheets

Can use ERP online help functions

Understand basic system operations and/or commands within ERP System

Can modify a user profile

Know how to enter master data in your area of responsibility

Understand how others are impacted by your inputs into the ERP System

Can enter a Help desk ticket for the ERP System

Once Technical Competencies are identified, definitions of progressive

levels are needed to define specific job requirements.


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Developing the Competency Curriculum


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APICS

Certified in Production & Inventory Management (CPIM) is a BASF global standard for supply

chain planners (e.g. Master Schedulers, Demand Planners, Material Planners, etc..). The five

CPIM modules are available via the on-line Supply Chain Academy, through local APICS

chapters, and through self-study. Certified Supply Chain Professional (CSCP) is recommended

for those who already achieved CPIM Certification or persons in supply chain functions otherthan production & inventory management who meet the eligibility requirements.

SAP R3 Training

SAP specific concepts, processes and transactions training is available via the SAP Training

website.

Supply Chain Academy (SCA)SCA is an on-line education & training tool used at BASF. It contains approximately 200 on-line

courses including the APICS CPIM body-of-knowledge, Physical Logistics, and International

Trade.

In-House Classes & Webinars

BASF offers in-house classes that focus on supply chain management at BASF in SAP R3.

Major Components of the Technical

Competency Curriculum


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Learning Curriculum by Technical Competency

Technical Competency Recommended Courses/Seminars Duration Cost Delivery Method Exam Vendor/Source

Demand Planning & Budgeting Certified Professional Forecaster (CPF) 2-3 Days $1,300 Classroom Yes IBF

APICS CPIM - Master Planning of Resources Various Various CR, On-Line, SS Yes APICS

Budgeting Self-Paced None Internet Yes Harvard Business School

Finance Essentials Self-Paced None Internet Yes Harvard Business School

Dist. Network Strategy & Design Logistics Optimization (Dist/Transp/Log Modeling) 3 Days $1,730 Classroom No Logistics Institute @ GaTech

Distribution Processes Warehousing Short Course 5 Days $2,780 Classroom No Logistics Institute @ GaTech

World C lass Warehous ing & Mater ials Management 12 Mths . Access $2,800 Internet Optional Log is tics Institute @ GaTech

Third Party Logistics 2 Days $1,260 Classroom No Logistics Institute @ GaTech

Managing Warehouse Operations 2 Days $700 Classroom No WERC

Maximizing Warehouse Space 2 Days $700 Classroom No WERC

Using Metrics to Achieve Results 2 Days $700 Classroom No WERC

Warehousing Management 6 Mths. Access $750 Internet Optional Institute of Logistics Mgmt.

Foreign Trade (Import/Export) Third Party Logistics 2 Days $1,260 Classroom No Logistics Institute @ GaTechGlobal Logistics Management 6 Mths. Access $800 Internet Optional Institute of Logistics Mgmt.

Export Management 6 Mths. Access $750 Internet Optional Institute of Logistics Mgmt.

Import Management 6 Mths. Access $650 Internet Optional Institute of Logistics Mgmt.

Hazardous Materials Compliance 6 Mths. Access $750 Internet Optional Institute of Logistics Mgmt.

Law I (Rail and Motor) 6 Mths. Access $750 Internet Optional Institute of Logistics Mgmt.

Law II (Ocean, Air, Intermodal) 6 Mths. Access $650 Internet Optional Institute of Logistics Mgmt.

International Transport No Limit $205 Study Guide Optional American Society of Tran & Log

10 Courses - Import, Export, Compliance 10 weeks each $1,000 internet Yes World Trade Institute

17 Seminars - Import, Export, Compliance 2 Days Each $1,000 Classroom Yes W orld Trade Institute

List ofApproved E xternal Providers


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BASICS of SUPPLY CHAIN MANAGEMENT

Philosophies Strategies Targets

Strategic

Management of Resources

Product Demand

Internal Resource

External Resource

Material Plan

Capacity Plan

Supplier Plan

MasterMaster

PlanningPlanning

ofofResourcesResources

ExecutionExecution

&&

ControlControl

ofof

OperationsOperations

DetailedDetailed

SchedulingScheduling

&&PlanningPlanning

APICS CPIM House of Knowledge


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APICS CSCP Body of Knowledge

Four domains of knowledge

Supply Chain Management Fundamentals

Building Competitive Operations Planning andLogistics

Managing Customer and Supplier Relationships

Using Information Technology to Enable SupplyChain Management

CPIMs primary focus is on internal operational excellence

while CSCPs focus is on the entire supply chain (suppliers

supplier to customers customer) with a global emphasis.


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SAP Training & Documentation

Training isorganized byprocess/role (e.g.Prod. Plng, WM,TM, C. S., etc)

Step-by-Stepincludes SAPscreenprints

Training &Documentation

linked directly toSAP Transactions

Company expertsmaintain concepts& reference docs


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Sales & Operations Planning

SCA Sales and Operations Planning Concepts (MFG107) Self-Study .5 Hour

The sales and operations planning process is impacted by various elements of the businessenvironment, integrates the multiple plans of a business, and provides direction for subsequent moredetailed and near-term planning. This course explores the concepts that impact the sales and operations

planning process and the ways that the process can be adapted to fit various environments.

SCA Sales and Operations Planning Process (MFG108) Self-Study 1 Hour

This Online Self-Study course explores the five primary steps in the sales and operations planningprocess. It also discusses the roles and responsibilities of individuals involved in each step.

SCA Developing and Validating the Production Plan (MFG201) Self-Study 1 Hour

The production plan is a key output of the sales and operations planning process that sets product familyproduction volumes for all subsequent priority planning processes. This course explores thedevelopment and validation of the production plan and the measurement of the performance of theproduction planning process.

Sample of Supply Chain Academy

(SCA) Courses

S&OP Basic Concepts


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Supply Chain Event Management (SCEM)

When and how to use Re-order Points

Basics of Inventory Management

Use of Transfer Orders in TMS

How to determine Safety Stocks

How to set Inventory Targets

Sample Webinar Topics


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Assessments of Learning Key Points

All courses should include post-assessment (e.g. review quiz,

simulation of knowledge, etc..).

Major courses (e.g. >4 hours in duration) should also include

pre-assessment to help in determining focus areas and periodic

reviews to reinforce learning throughout the course.

Thresholds to pass internal assessments (not external

certifications) should be set relatively low to motivate and

reward participation.

Assessment results should always be kept confidential and

only the highest score should be stored when multiple attempts

are required.


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List three things you

learned from the

workshop?

interpretation, analysis,

ability in SAP

- I learned how to check

the status of a Purchase

Ordes through CBIS

transaction. - I learned

how is managed the

demand in SAP. - I

learned how to adjust

parameters better when

ATP, Reports, MB5B,

etc, the main is the

importance to re-

schedule the past due in

SAP, to keep it running

well

Tips on how to optimized

the use of SAP, ATP

functionality, Creation of

groups of materials

1. How to establish an

Inventory Strategy for

each article; 2. How to

configure SAP for each

article; 3. How to

improve planning

process

Material Master

Definitions / MB5T

(Stock in Transit) /

Supply Chain Event

Manager (SCEM)

Would you recommend

this course to a

colleague?

Yes, of course Yes, of course To all material planers Yes Yes Yes

Why or Why Not?

It is very important to

know the tools we dailyuse for our work, in this

case SAP; we have to

know in detail how it

works and how it can

help us to reach our

objectives, for better

Because you canimprove and

complement your

knwoledge of MM

module in SAP

Its logical to know the

process and share the

best practices.

This is an importan

course for all thematerial planners, it

gives you a better

approach in how to

control de operation and

inventories

Because there are a lotof contents that can be

place fast in the day to

day routine and make

remarkable

improvements.

It was very informativefor Planners with

responsibility for

maintaining proper

system settings.

Participant Evaluations are Used to

Improve the Program


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Implementing a Competency-BasedProcess

Learning is not compulsory... neither is survival.

W. Edwards Deming (1900 - 1993)


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Prioritize Competencies by

Position/Role

In order to determine what education & training an employee needs,

Competencies must be prioritized by job. Review of existing job descriptions,

review of current objectives for the position, and surveys of experts,

incumbents, and leaders can be used to prioritize Competencies.

Position/Role Person l Competencies ec nic l Competencies

Master 1 Analytical Thinking 1 Business Applications Knowledge (ERP)

Production 2 Customer Focus 2 Manufacturing Planning & Controlling

Scheduler 3 Business & Financial Acumen 3 Demand Planning & Budgeting

4 Work Management 4 Inventory Management

5 Communication & Interpersonal Understandin 5 Manufacturing Process Knowledge

6 Team Leadership and Collaboration 6 Product Knowledge

7 BASF Business Knowledge

8 Business Applications Knowledge (PC)

Note: Some competencies are company specific (e.g. Product Knowledge, Manufacturing

Knowledge, Internal Business Knowledge, etc..) and education & training must be developed in-

house.


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North American Technical Competency Curriculum by Role

Course Cost

Function Job/Role Global Competency Mandatory Required Courses Delivery Hours (USD)

Supply Chain Demand Planner Supply Chain Fundamentals YES APICS Basics of SCM (SCA APX10100) SS On-Line 27.5 $460.00or APICS BSCM In-House Class IL On-Line 20 $120.00

Supply Chain Plng. (Generic) YES APICS MPR (SCA APX10200) SS On-Line 15.75 $460.00or APICS MPR In-House Class IL On-Line 20 $120.00

SC Plng. In SAP R3 at BASF YES Basics of SCM in SAP R3 at BASF Classroom 20 $500.00**NO Advanced SCM in SAP R3 at BASF Classroom 20 $500.00

Forecasting Demand YES DP-SOP In-house Course IL On-Line 20 None

SAP APO Application Trng. YES Provided by Accelerator Implementation TBD TBD

Inventory Management YES APICS Basics of SCM (SCA APX10100) SS On-Line 27.5 $460.00or APICS BSCM In-House Class IL On-Line 20 $120.00

**Note: The Advanced Class should be mandatory for Supply Planners.

S a m p le C u r ric u lu m b a s e d o n R o le &

C o m p e t e n c i e s

Curriculum includes progression from fundamentals to advanced and

integrates use of systems.


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M r r r r

D r M C rr r

C r D

M R

M C

DM

M

C

I N &

D

Self Evaluation:

plus

Performance & Development

Review with Your Leader

= a Plan


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EDUCATION & TRAINING PLAN

EM L EE NAME: Sampe Plan EAR: 2008

COURSE TARGET FOR

TECHNICAL COMPETENCY COURSE DESCRIPTION DURATION COST($) COMPLETION

us ness Applica ions (ERP) Ad ancedMa l. Mgm . Cou se 24 Hou s N/A June 2008

Manu actu ing Planning & Controlling APICS CPIMMPR 24 Hours $300 Sept., 2008

APICS CPIMMPR Exam 2 Hours $100 ct., 2008

COURSE TARGET FOR

PERSONAL COMPETENCY COURSE DESCRIPTION DURATION COST($) COMPLETION

Customer Focus Focusing on Your Customer 2 Hours N/A April, 2008

eam ork/Teambuilding Working witha Virtual Team 2 Hours N/A Nov., 2008

rand Totals= 54 Hours $400

Exampleofan Individual Plan


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DO HANDOUT EXERCISE


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Directions: Assign each Competency to only one of the two positions.

Competencies SC/Logistics Mgr. Master Prod. Schdlr.

Analytical Thinking XXXXX

Customer Focus XXXXX

Strategic Thinking XXXXX

Financial Acumen XXXXX

Work Management XXXXX

Leadership XXXXX

Change Management XXXXX

Teamwork XXXXX

ERP System XXXXX

Network Strategy XXXXX

Manufacturing Processes XXXXX

Continuous Improvement XXXXX

Distribution Processes XXXXX

BASF Bus. Knowledge XXXXX

PracticeExercise:Response at BASF


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Key Performance Indicators (KPIs)

KPIs can be used to measure participation and confirmation

of learning. Examples include:

No. of Education & Training Hours Taken per Year

No. & Percent of Employees Participating

Number of Exams Passed

Certifications Received


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175 employees have participated in on-line CPIMclasses in 2008/09.

38 employees participating in an on-line CSCP class.

150 employees participated in 2.5 Day SAP-MMWorkshop

106 CPIMs and 15 CSCPs Globally

100 CPIM Exams taken in 2008 (28 outside US)

224 APICS Members via Enterprise Membership

100+ SCA Users taking 400+ Hours per Year

Current Status at BASF


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Summary of the Learning System

Prioritize Competencies

by Position

Identify & Define Global

(Personal) Competencies

Identify & Define Technical

(SCM) Competencies

Develop Curriculum by

Competency

Assess Individual Needs

based on Position

Develop Individual

Education & Training

Plans

Monitor Progress and

Provide Feedback

Competitive Priorities &

Value Drivers


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Alans Perspective on Educations ROI

Alan has just completed a presentation to the Group Vice-president andhis staff regarding the need for supply chain education in their business.

Directors uestion to Alan:

Alan, what if we educate & train all our supply chain employees andthey leave.

Alans Response to Director:

More importantly, what if we do not educate and train them and they stay?

GVPs Response:

Alan, all of my units will be participating in the program.


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Final Thought

Our progress as a nation can be no swifter than our progress in

education. The human mind is our fundamental resource.

John Fitzgerald Kennedy

or FIRM


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Directions: Assign each Competency to only one of the two positions.

Competencies SC/Logistics Mgr. Master Prod. Schdlr.

Analytical Thinking

Customer Focus

Strategic Thinking

Financial Acumen

Work Management

Leadership

Change Management

Teamwork

ERP System

Network Strategy

Manufacturing Processes

Continuous Improvement

Distribution Processes

BASF Bus. Knowledge

SC/Logistics Mgr. the

person responsible for

planning, organizing,

and controlling supply

chain/logisticsactivities.

Master Production

Scheduler the person

charged with

establishing, managing,

reviewing, andmaintaining a master

schedule.

Practice Exercise: Competencies by ob

2010 Triangle Chapter SCM Learning System_Alan_Preso

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