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Transcript of budget master
OSP Product Analysis
OSP commodities
Site AcquisitionA & E
GeoTechConstruction Management
Construction Structural Analysis
Site AcquisitionLT: 2 months
Commodity flow chart to build a Cell Site
Cell Site
A&ELT: 2 weeks
GeoTechLT: 1 week
Construction Man.LT: 10 -30 days
ConstructionLT: 10 – 30 days
Structural AnalysisLT: 1 – 2 weeks
Construction Bid matrix
2002- Low BidLow Performance
High amounts of Change orders
More work
More decisions.
Higher risk
2004 -Score CardsMotivates suppliers to improve performance. KPI.
Moves Risk to the Supplier.
Con
trac
tor
Per
form
ance
2003 - NegotiatedDoes not motivate suppliers to
improve performance. No scores for PM / to review.
high
low
2005 - Produces Increased savings per region
Quality Improvements / suppliers.
Higher Competition / leverage.
Improves On Time schedules.
Reduces change orders. / less work.
Savings
Current
9 million
Projected year end
18. Million
Projected with KPI score cards 2004
40.1 million ( 18 percent ) increaseThe best service at the right time for the best price.
Screen PM uses in BM
Type / Supplier needed per site
Reports
• Currently
• Cell Site Listing
• Site Details
• BAR
• Vendor
• Recommended
• Minority Spend
• Score Cards
MWBE
$0.00
$500,000.00
$1,000,000.00
$1,500,000.00
$2,000,000.00
$2,500,000.00
$3,000,000.00
$3,500,000.00
$4,000,000.00
$4,500,000.00
Falkenberg ProfessionalEngineering
CFX LP RPR Architects
Add KPI Scores to Bar
Recommend 4 measurements
• Price
• Performance
• Customer Satisfaction
• Safety
Common Measurements in Services
• Responsiveness in hours/days. • Percent rework/job.• Percent scope changes/job • Percent of overrun cost.• Risk and Time.• Customer satisfaction rating.• Total cost of project.
Performance Management Process
RESOLVEMEASURE
Monitor
Performance Management for OSP
Measures•Response Time. •Percent rework.•Overrun cost.• Service rating.
Monitors•Changes over 12 %
•Supplier Survey
•Large Projects
Resolve•Email Supplier
•Email P M
•Request Supplier Survey
• Poor performance
KPI Data in BM
• Provides the best method for gaining and retaining cost savings in OSP services.
• Provides KPI data for PM and Purchasing.• Provides suppliers an opportunity to improve.• Provides Cingular leverage in renegotiations.
ScoringLayer
Translation Into Scorecard Values
Budget Master-Based Supplier Scorecard
Budget Master Data
Real-Time Detection
Agents
Quantitative Calculations -
KPI
Qualitative Surveys
Au
tom
ated
Pro
cess
Foundation Layer
Supplier Scorecard Components
KPI Flow Matrix• PM picks suppliers in BM
• CM grades all suppliers / per site over 100 K• CM faxes / delivers score cards to Cingular – 2 days• Admin enters scores into BM – 2 days• PM uses BM / new site / views updated region scores.• OPS team communicates score with suppliers / month
KPI Score Card Example:
NO # Indicators Scale Rating
1. Performance 5 - 50 42
2 Customer Service 5 - 50 43
3 Quality 4 - 40 38
Total SCORE FOR Performance Indicators 14 -140
KPI Supplier Score grading system
TOTAL KPI Supplier Score 123
120 -140 Excellent – Reward Supplier
100 -120 Exceeds Goals
90 - 100 Meets Goals
80 - 90 Immediate Improvements required
0 - 80 Remove Supplier from BM / 2
Supplier Scores Vendor Name Performance Customer Service Safety ResultsScore 5 to 50 5 to 50 4 to 40 Telecommunications 42 43 38 123Barge Wag Sojj 35 35 30 100BuHorn, Inc 33 33 30 96Burgple 30 30 28 88
Example Scores per Quarter
West Region
0
20
40
60
80
100
120
140
Q1 Q2 Q3 Q4 average
ADC Telecommunications
Supplier scores / region / yearSupplier scores per region per year
0
20
40
60
80
100
120
140
West East Central Gulf Coast Average
ADC Telecommunications
Six Key Supplier Management Recommendations
• Include a clause in the Construction contract.• Implement Key Performance Indicators in BM• Gain Visibility To Supplier Performance.• Rate and Analyze Supplier Performance.• Communicate scores and violations to suppliers.• Use scores to improve performance,remove suppliers
or re negotiate.
The reasons to implement KPI
• To leverage the purchasing power with the goal of creating a smaller pool of quality suppliers.
• To aggressively advance the initiative of equal economic opportunity through proactive and innovative measures.
• To hold the supplier accountable in meeting expectations for higher performance.
Review• Modify the construction contract.• Implement supplier performance in BM• Request the field enter KPI data in BM• OPS Team will send scores to suppliers.• Discuss scores / violations with supplier.• Reduces risk and increase quality of work.
Conclusion
• Are there any questions ?