Lean and Agile Vision 1 © The Delos Partnership 2003 Vision and Strategy Setting the Framework

Lean and Agile Vision 2 © The Delos Partnership 2003 The Delos Model Vision Strategy Prioritisation Prioritisation Innovation Innovation Demand Support Supply Supply

Lean and Agile Vision 3 © The Delos Partnership 2003 Key Dimensions Market discipline/Value proposition Product Portfolio Make/Buy Organisational Customer Relationships Supplier Relationships Performance Measures

Lean and Agile Vision 4 © The Delos Partnership 2003 Value Proposition StrategyNowFuture Operational Excellence Customer Solutions Product Leadership Total = 100 %

Lean and Agile Vision 5 © The Delos Partnership 2003 Product Mapping Volume Demand variability Demand lead time Variety Product Life Cycle Margin (profitability)

Lean and Agile Vision 6 © The Delos Partnership 2003 Volume Clusters AB Runners Repeaters Strangers SALES PRODUCTS C

Lean and Agile Vision 7 © The Delos Partnership 2003 ABC Analysis 80 % of our products account for 200 % of our profits; it is the other 20 % that account for -100 % of the profit. Would an Activity Based costing analysis get rid of them ?

Lean and Agile Vision 8 © The Delos Partnership 2003 Customers are core MD Sales Marketing Technical Operations Finance HR R&DR&D R&DR&D MKTGMKTG MKTGMKTG SALESSALES SALESSALES OPSOPS OPSOPS ACCTSACCTS ACCTSACCTS HRHR HRHR Directors Managers Supervisors/Team Leaders Customer Intimate Outsource

Lean and Agile Vision 9 © The Delos Partnership 2003 Product Excellence is core MD Sales Marketing Technical Operations Finance HR R&DR&D R&DR&D MKTGMKTG MKTGMKTG SALESSALES SALESSALES OPSOPS OPSOPS ACCTSACCTS ACCTSACCTS HRHR HRHR Directors Managers Supervisors/Team Leaders Product LeaderOutsource

Lean and Agile Vision 10 © The Delos Partnership 2003 Operational Excellence is core MD Sales Marketing Technical Operations Finance HR R&DR&D R&DR&D MKTGMKTG MKTGMKTG SALESSALES SALESSALES OPSOPS OPSOPS ACCTSACCTS ACCTSACCTS HRHR HRHR Directors Managers Supervisors/Team Leaders Operational Excellence Outsource

Lean and Agile Vision 11 © The Delos Partnership 2003 Process Based Organisation MD Sales Marketing Technical Operations Finance HR R&DR&D R&DR&D MKTGMKTG MKTGMKTG SALESSALES SALESSALES OPSOPS OPSOPS ACCTSACCTS ACCTSACCTS HRHR HRHR Directors Managers Supervisors/Team Leaders Innovation Process Owner Demand Process Owner Supply Process Owner

Lean and Agile Vision 12 © The Delos Partnership 2003 Customer/Supplier Relationships Vision Strategy Prioritisation Prioritisation Innovation Innovation Demand Support Supply Supply Vision Strategy Prioritisation Prioritisation Innovation Innovation Demand Support Supply Supply Vision Strategy Prioritisation Prioritisation Innovation Innovation Demand Support Supply Supply Shared Vision and Strategy Common Goals and Objectives Synchronised Demand Flow Shared Vision and Strategy Common Goals and Objectives Synchronised Demand Flow Our organisation Suppliers Customers

Lean and Agile Vision 13 © The Delos Partnership 2003 The Delos Core Measures 1.Customer Order Delivery – the Perfect Order 2.Demand Forecast Accuracy 3.Lead Time Reduction - Demand, Supply and Change 4.Quality, Right First Time – Demand, Supply and Change 5.Schedule Achievement – In-house and outsourced 6.New Product Introduction 7.Velocity – all processes

Lean and Agile Vision 14 © The Delos Partnership 2003 The Core Measures and Financial Effect

Lean and Agile Vision 15 © The Delos Partnership 2003 Problem SUPPORT FINANCIAL IMPLICATIONS CHANGES DEMAND FunctionalAgendas SUPPLY

Lean and Agile Vision 16 © The Delos Partnership 2003 Team Solution CHANGES SUPPORT DEMAND SUPPLY BUSINESS IMPLICATIONS IntegratedPerspective

Lean and Agile Vision 17 © The Delos Partnership 2003 Creating the Framework 1.Focus on Core Products and Customers 2.Focus on Strategic and core competency 3.Establish co-operative relationships 4.Measure the right things 5.Develop teamwork, and not functional silos