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????? Ph.D/PMP Lee Seouk Joo KPI ?? ??? ?? Version 0.9

My Project Profile: ? ? ? ? SW-SOC ?????? ????? ??? ?? ?? ???? ??? ?? ?? ? ??? ?? . ?? ??? ?? ?? ???? ( ?? ) ??? ???? ???? - ?? , ?? , ?? (2008) ?????? ??? ?? - ??? ???? (2006-2007) Posco ????? 6 ??? ???? ?? (2004-2005) ?? ??? ?? ???? (2003) CJ ??? DNS, e-Business ???? (1999-2001) ?? ???? 6 ??? ???? (1998-1999) ??? ?? ??? ?? ???? (1994-1998) ???? ???? ( ??? , ???? , ???? 6 ?? ) [email_address] , www.facebook.com/pmforum

?? ??? ?? ?? ??? ?? KPI ???? KPI ???? KPI ?? KPI ????

????? ???? - Global competition ? ?? - Life Cycle ?? / Lead Time ?? - Global Supply Network ? ??? ?? ??? ?? - Core Competence ? ?? – ????? ?? - ????? ????? Process Visibility ? ?? - SCM ??? 3PL ? ?? ?? ?? 3PL ? ?? ?? Global Logistics ??? ?? ????? ?? ? ?? ????? ?? - ?? ( ? , ? ) ? ??? ??? ?? ?? - One-Stop Service ??? ?? - e-Logistics ?? Global Logistics ??

????? ?? ???? ????? ?? ? ??? Supply chain network ? ???? coordinating ? ? ?? ?? ????? ?? ?? ?? ?? ?? ???? ?? ??? ??? ??? / ??? ??? ?? ??? ??? ???? ?? ??? ?? ?? ??? ??? . Supplier /Factory Trucker Freight Forwarder Carrier terminal Airlines Cargo terminal Freight Forwarder Trucker DC/Buyer Goods Issues Pick Up Export clearance Build Up Departure Arrival Break down Import clearance Delivery Goods Receipt Step 1 Step 4 Step 2 Step 3 Step 8 Step 5 Step 7 Step 6 Step 9 Internet EDI CVO

“ e-Logistics is the redesign and implementation of warehouse and transportation management processes using e-business as a competitive enabler.” ?????? ???? Raw materials supplier DC retailer ?? (buyer) Component supplier e- Logistics Logistics Network Optimization Collaboration across Enterprises Global Logistics Visibility ? ? E-Logistics

Outbound Logistics Inbound Logistics Integrated e-Logistics (Danzas ?? ) Sales and Marketing (customer) Production (customer) Storage Demand Forecasts Materials Planning Monitoring the Suppliers Monitoring the Orders Deliveries to Customers Customer service Monitoring the speed of circulation The Control of Recycled Material Product Development and Planning (customer) Information flow Monetary flow

“ Achieving operational excellence in the supply chain is a journey, not a destination… The only way to maintain the level of operational excellence needed to survive in this environment is through continuous improvement.” Manufacturers Wholesale Distributors Suppliers Customers Contract Manufacturers Logistics Providers Supplier Exchanges Customer Exchanges Logistics Exchanges Virtual Manufacturers Retailers Steve Banker and Sid Snitkin, “ Continuous Improvement: A Foundation for Operational Excellence, ” Supply Chain Management Review , March/April 2003. ????? Operational Excellence ?? Goods Flow Information Flows Financial Flow

??? ?? ?? ? ? ???? ???? .. ??? ? ?? !!! ?? !!! ? !!! ??? ??? ??? ?? ? ?? ? ? ??? ?

??? ?? ???? ??? ?? ..? ???? ??? ?? ??? ???? ???? ?? , ?? ???? ?? ??? ???? ?? ???? ?? ??? ?? ??? ?? ??? ?? ???? ?? ?? / ???? ??? ??? ?? ?????? , ???? , ???? ????? ??? ??? ???? ?? ??? ?? ??? Lead Time ??? : ??? ?? / ??? ???? ???? ???????? ??? ??? 6? GUTTER!

?? ???? ???? ???? . ?? ??? ??? ??? ????? ??? ??? . ??? ???? ??? ??? ??? ?? ??? ??? ?? . ?? ?? ??? ? ?? ??? ?? . ??? ??? ?? ????? ??? ?? ?? ?? ??? Cross Functional ?? ????? ???? ??? ?? ??? ??? ?? ( ???? ?? ) ? ??? ??? . ??? ?? ??? ?? ?? ??? ???? . ??? ???? ???? ?? ??? ???? Trend ? ?????? . ????? Non-Value Added ????? ????? ?? ?? ?? ??? ?? ?? ????? ??? ??? ?? ?? ??? ??? . ???? ??? ?? ? ?? ??? ??? ?? .

6 ??? ?? ?? : ?? VS. ??? (*) ?? ???? ????? ?? ??? ?? ??? ?? ??? ?? ???? / ???? ?? Non-Value added (NVA) ???? ??? ?? ?? ??? ?? ?? ??? ?? ???? ?? ???? ???? ?? Loss ? ??? ?? ?? ?? ??? ??? Variation NVA ?? ??? ??? ???? ??? ??? ??? ??? ?? ?? ?? ??? Data ??? ???? Process Mapping (CFPM) ?? ????? 20 ??? CFPM ? ??? ?? ???? 4~5 ?? ?? Project ? Black Belt Green Belt ?? ???? Cross Functional Team ?? ?? ??? ?? ?? Facilitator/ Mapper BB, GB ????? ? ??? ??? . ??? ??? 6-12 ?? ????? 3~12 ?? ????? ?????? ??? 4~5 ? ??

Process Improvement ? ?? Process ? ???? ? ???? ????? ????? ????? ?? ??? ???? ????? Cycle time ? ???? ????? ?? Variation ? ??? ??? ?? ????? ??? ??? ????? ?? Step 1 (.05)/2HRS Step 2 (.13)/4HRS Step 3 (.05)2HRS (.05) DPU (.15) DPU (.10) DPU (.30) Overall TDU

What do we Need to improve? Precision or inconsistency Off-Target, Low Variation High Potential Defects Good Cp but Bad Cpk On Target High Variation High Potential Defects No so good Cp and Cpk On-Target, Low Variation Low Potential Defects Good Cp and Cpk Variation reduction and process centering create processes with less potential for defects. The concept of defect reduction applies to ALL processes (not just manufacturing) LSL USL LSL USL LSL USL

Some processes are: Invisible managers delegate away their knowledge process performance is not measured ill conceived processes and policies are developed piecemeal and informally rather than designed as a whole Ignored for want of a owner processes tend to be unmanaged, neglected as a priority and rarely updated Inconsistent jobs, measures and infrastructure are often misaligned with the current process Current Processes

IRS – ???? ?? / ???? SIGMA (with ±1.5 Sigma Shift) 2 3 4 5 6 7 100K 10K 1K 100 10 1 (233 ppm) Best in Class ?????? ??? ??? (0.43 ppm) ???? Journal Vouchers ????? ???? ?? ?? ?? ?? ?? ???? ???? (6210 ppm) (3.4 ppm) 6 ???? ? ??? ?? ?? (66810 ppm)

Cost Of Poor Quality (COPQ) Sigma levels impact sales… Six Sigma has a tremendous impact on revenues and the bottom line. From: Harry and Schroeder, Six Sigma: The Breakthrough Strategy Revolutionizing the World’s Top Corporations , (2000) Improved profits Focus on KPIs Increasing value Greater quality at lower costs Stronger operating ratios Growing capabilities Improved processes Customers get… Owners get… Sr. executives get… Participants get… … and results Sigma Level Cost of Poor Quality 2 3 4 5 6 Not competitive 25-40% of gross sales 15-25% of gross sales 5-15% of gross sales < 1% of gross sales

75% of ‘process’ projects provide benefits. 75% of application development projects fail Process orientation works Process Orientation Works

Strategic Learning Loop Initiatives & Programs test the hypotheses Output (Results) reporting Management Control Loop funding Input (Resources) update the strategy PERFORMANCE 85% of management teams spend less than one hour per month on strategy issues 92% of organizations do not report on lead indicators 60% of organizations don’t link strategy & budgets 78% of organizations lock budgets to an annual cycle 20% of organizations take more than 16 weeks to prepare a budget STRATEGY BALANCED SCORECARD BUDGET MAKE STRATEGY A CONTINUOUS PROCESS

Process Hierarchy Systems Skills SUB - PROCESS ACTIVITY BUSINESS PROCESS Standards Instructions Forms TASK

Source: Alec Sharp, Clariteq Current Processes-continue Culture, core competencies, and management systems Unavailable information Re-keying of data Missing functionality Awkward interfaces Lack of support for workflow Business Process Workflow Design Information Systems Motivation & Measurement Policies and Rules Human Resources Facilities (or other) enables enables enables enables enables enables Too many actors Non-value -added steps Duplicate steps Delays and bottlenecks Excessively sequential Inappropriate performer or process measures Internal rather than customer focus Measures of tasks vs. outcomes Out-of-date policies, rules, numerical limits Excessive approve, inform, check, or review steps Excessive hierarchy or centralization Mismatches between task value and performer Inappropriate recruiting and placement Too little empowerment Mismatch of work needs and facility No support for team work Layout that impedes flow of people or material Mission, strategy, goals, and objectives supports

6 ???? ??? Fact, Data ???? ???? ???? ?? ???? ?? ??? ?????? ???? ?? ???? 6 ??? ???? 6 ??? , LEAN, CTR ? ???? ?? ?? ???? ???? , ?? ??? ???? ?? ???? BB, MBB ??? ??? GB, WB ???? ?? ???? ???? ?? ?? ?? ???? ??? ?? ???? ???? 6 ????? ??? 6 ???? ( ????? ?? ?? ?? / ?? )

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