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Selkirk Case Study Case Study

Building Capability and Ownership to Improve Profit

Selkirk Product It is always difficult to implement an MPRII system, but it is doubly difficult to re-implement such a system and manage a change in culture. Moreover, this was not a simple case of just re-implementing the system. It needed the users to take ownership, radically re-think their business process and deliver a substantial improvement in performance.

The first task was to set up the team responsible for designing the new process in detail, recognising that it was critical to select the best team possible. The result was a cross-functional mix comprising some of the most experienced and capable management and non-management staff.

This team started by mapping the ‘As Is’ process using Role Activity Diagrams (RADs), a notation specifically designed for mapping business processes. Before they embarked on designing the ‘To Be’ process we took the team away on our famous 4-day course to understand what MRPII was about and to help develop the team further. By the time they came to design the new process everyone was thinking 'outside the box'. We had a motivated team working long hours to meet a tough a tough deadline.

The team presented their final process design and implementation plan to the Board. The programme was accepted without major alteration and the process of re-implementation commenced. They had identified significant annual savings; the new process was designed to deliver these savings. It meant re-organisation of the business to merge the sales office onto the production site, improving communications and simplifying processes dramatically.

Giving the staff the opportunity to gain new knowledge, building their understanding and helping them apply new techniques to the business delivered real, bottom line benefit. This learning approach also changed attitudes, not just in the team but across the whole company. In designing the process they had learned how to use the system more effectively, had re-organised th e business and removed wasted activity across the whole operation. It delivered a substantial reduction in operating costs.

Most importantly, it was achieved by the Selkirk team. We facilitated, provided the tools and techniques and added our experience where appropriate. But because they designed it and implemented it they own it.

So far the MML work has contributed to helping Selkirk halve its inventory, increase customer service, on time and in full, to 96% and make other efficiencies. Things are still improving.