020419SHA_SHO136_v5iOperationalTransformationCoreBeliefsFebruary10,2003CONFIDENTIALThisreportissolelyfortheuseofclientpersonnel.Nopartofitmaybecirculated,quoted,orreproducedfordistributionoutsidetheclientorganizationwithoutpriorwrittenapprovalfromMcKinsey&Company.ThismaterialwasusedbyMcKinsey&Companyduringanoralpresentation;itisnotacompleterecordofthediscussion.AsiaManufacturingServiceLineDavidBalkin(SY),MohanGiridhadas(SY),MartinHirt(GC),JohnLydon(SY),MakotoOzawa(JK),PeterWillats(LN),JonathanWoetzel(GC),WayneZhang(GC)020419SHA_SHO136_v5i2CONTENT1.Scope,objectivesandendproducts2.Whyoperationalexcellence3.McKinsey'soperationaltransformationapproach4.OperationaltransformationEngagementapproach5.McKinsey'sdistinctivevalueproposition020419SHA_SHO136_v5i3CustomerBackBusinessSystemOPERATIONALTRANSFORMATIONISPARTOFA"CUSTOMERBACK"BUSINESSSYSTEMSERVICELINEEstablishacustomer-drivenandcross-functionalgovernancemodelStrengthenthecustomersegment-focusedgrowthstrategyformulationandprioritizationDriveproduct/serviceinnovationstostrengthenthecustomerperceivedperformanceortheproduct/solutionofferingDriveoperationalimprovementstoeliminatewaste,variabilityandinflexibilityinthefullcustomersegmentspecificdeliverychainImprovedcapabilitytoidentifyandprioritizemostattractivegrowthopportunitiesContinuousimprovementofcompany'sabilitytocreate,capture,andcommunicateacompellingvaluepropositiontotargetcustomersegmentsContinuousimprove-mentofcompany'sabilitytodriveoperationalimprove-mentsforthefulltargetcustomersegmentchain"StrategyProcess":Uncovernewsourcesofcustomervalue"OrderGenerationProcess":Developnewinnovativevalueproposition"OrderDeliveryProcess":OperationalTransformationFocusofthisdocument020419SHA_SHO136_v5i4OPERATIONALTRANSFORMATIONDISCUSSEDINTHISDOCUMENTWILLFOCUSONMANUFACTURINGOPERATION2.Operationaltransformationwithinthe"demandchain"3.Operationaltransformationwithinthe"supplychain"Phase1.Definingtheholistictransformationofa"business"intoa"customerdriven“entityfocusedonperfectdeliveryagainstasetofcustomerdemands/expectations(e.g.,tocost,ontime,infull,inspec)Phase3.DefiningtheperfectsupplychainanswertominimizeTCOofpurchasedgoodsandservicestoenableperfectdeliveryagainstthecustomersdemands/expectationsPhase2.Definingtheholistictransformationofthe"demandchain"intoa"consumerdriven"(e.g.,yourcustomer'scustomer),"leanbased"collectionofbusinessesfocusedonperfectdeliveryagainstasetofconsumerdemands/expectations(e.g.,tocost,ontime,infull,inspec)Today'sdiscussion1.Operationaltransformationwithinthebusinessa.)Operationsb.)Restofbusiness020419SHA_SHO136_v5i5ASIAMANUFACTURINGSERVICELINEDOCUMENTATIONSTRUCTURESectionAsiaManufacturingServiceLineCorebeliefsImprovementtoolkitReferencecaseContentObjetives•Whyoperationalexcellence•McKinseyoperationaltransformationapproach•McKinseydistinctivevalueproposition•Fordiscussionwithclienttodesigntailoredoperationalimprovement•MGM/CSSeducation•Howtodoadiagnostic(1day,1week,2weeksdeepdive)•Actualclientdiagnosticresultreviewpack(bysectorsandbyregions)•Sampleanalysis/template/interviewguide•Meetingwithclienttoexplaindiagnosticapproach&endproducts•HelpED/EMtoplanengagement•EMGuide•Meetingtopresentdiagnosticresultsandtoproposeimprovementprogram•Searchabletooldatabase(includingleanandsixsigmatools)withbriefdescription•Serveasawell-structureddirectoryfornon-MM...
