evolving the epmo function enterprise program management tom dadmun vp, program management office...
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Evolving the EPMO FunctionEnterprise Program Management
Tom Dadmun
VP, Program Management Office
ADTRAN
PurposeShare with you the evolution of the ADTRAN Program Management Office
Expected OutcomeUnderstanding the potential benefits of strategic focus applied across the Enterprise
The Network Access Company
Corporate Statistics
· FY2008 Revenue: $500 Million
· Large established Presence in Telecom Equipment Industry
· Employees: ~1,800 total
· Headquarters: Cummings Research Park, Huntsville, Alabama
· Sales office throughout the US
· In-house and outsourced manufacturing
· Long Term Financial Strength
Reengineering the Supply Chain Program Objective
Re-define the existing business practices through the flawless
execution of the basic principles of “ Total Supply Chain
Management”
These basic principles will be the foundation on which the business will operate in achieving the new
standards of “ World Class Excellence ”
Basic Principles• The customer is our #1 Priority Let’s give them what they want when they want it!• Inventory is a cost of doing business Let’s make it affordable• Velocity is the name of the game Let’s eliminate non value added processes and touches • World Class Performance through
empowerment
Let’s unlock the true potential of our greatest asset…. The employee!
Senior Management Support
Steering CommitteePresident & COOSr VP ManufacturingCIOEND Sr VP & Gen MgrCND Sr VP & Gen MgrCFOVP Supply Chain Operations
Extended CommitteeProgram ManagerIT Program Manager
• Formal Monthly Reviews• Senior Management
Commitment To Empower Task
Force• Funding, Resources,
Mind Share & Accessibility• Importance to Adtran’s Future
Growth and Profitability• World Class Company ,
World Class Supply Chain,
World Class Employees
Time LinePhase One
Develop an “As Is” model to include the Good, the Bad and the UglyDevelop an “ End Vision” with realistic interim stagesPerform a Gap Analysis between the two models
Phase TwoReview & Prioritize projects to close the gaps Review priorities with Steering CommitteeReview impact & prioritization of other internal projectsExecute tasks to close gaps in realistic interim stages
Phase ThreeReview & Prioritize projects to reach End Vision with continuous improvement techniquesAttain World Class status comparing Adtran to “ Best In Class” comparable manufacturers
TIMELINE
90 Day Sprint Six - Nine Months Nine Months +
What is the ProgramImplementation
Approach?
Develop"As Is"
BaselineModel
DeliverGAP
Analysis
ReviewHigh Level
ManagementVision
DefineValue Add/Non Value
Add Criteria
Challenge"As Is"
with Value Add/Non-Value Add
Criteria
Develop"To Be"
OperatingModel
Internal
BenchmarkIndustry
"Best In Class"Practices
Internal
Re-VisitCustomer
Needs
External
ID & PrioritizeShort Term
Opportunities
ID & PrioritizeLong Term
Opportunities
ST #3
ST #2
DevelopProject Plans
&Milestones
ST #1
LT #3
LT # 2
DevelopProject Plans
&Milestones
LT #1
Implement"To Be"
OperatingModel
MonitorImpact & Results
RJJ
UpdateProject Plans
As is
To Be
ADTRAN
Carriers
Distributors
VARs
Enterprise
Suppliers Manufacturing Divisions Channels End Customer
Ingram
EN
CN
Distributors
The current business infrastructure provides limited visibility & synchronization
ADTRAN
Carriers
Distributors
VARs
Enterprise
Suppliers Manufacturing Divisions Channels End Customer
Ingram
EN
CN
Factory Planner Distributors
ADTRAN
Carriers
Distributors
VARs
Enterprise
Suppliers Manufacturing Divisions Channels End Customer
Ingram
EN
CN
Supply Chain Planning
Supply Collaboration
Distributors
ADTRAN
Carriers
Distributors
VARs
Enterprise
Suppliers Manufacturing Divisions Channels End Customer
Ingram
EN
CN
Supply Chain Planning
Demand Planning
Supply Collaboration
Distributors
Transportation Mgt. & Optimization
ADTRAN
Carriers
Distributors
VARs
Enterprise
Suppliers Manufacturing Divisions Channels End Customer
Ingram
EN
CN
Supply Chain Planning
Demand Planning
Supply Collaboration
Distributors
Supply Chain Visibility
ADTRAN
Carriers
Distributors
VARs
Enterprise
Suppliers Manufacturing Divisions Channels End Customer
Ingram
EN
CN
Supply Chain Planning
Demand Planning
Supply CollaborationOrder Allocation & Promising
Distributors
Transportation Mgt. & Optimization
Supply Chain Visibility
ADTRAN
Carriers
Distributors
VARs
Enterprise
Suppliers Manufacturing Divisions Channels End Customer
Ingram
EN
CN
Supply Chain Planning
Demand Planning
Supply CollaborationOrder Allocation & Promising
Distributors
Transportation Mgt. & Optimization
Demand Collaboration
Supply Chain Visibility
ADTRAN
Carriers
Distributors
VARs
Enterprise
Suppliers Manufacturing Divisions Channels End Customer
Ingram
EN
CN
Supply Chain Planning
Demand Planning
Supply CollaborationOrder Allocation & Promising
Demand Collaboration
Collaborative Sourcing
Distributors
Transportation Mgt. & Optimization
Supply Chain Visibility
ADTRAN
Carriers
Distributors
VARs
Enterprise
Suppliers Manufacturing Divisions Channels End Customer
Ingram
EN
CN
Supply Chain Planning
Demand Planning
Supply CollaborationOrder Allocation & Promising
Demand Collaboration
Collaborative Sourcing
Distributors
Transportation Mgt. & Optimization
Complete Supply Chain Visibility & Synchronization
Measuring Success• Inventory Reduced 64%• Order Responsiveness Reduced 14 Days to 2• Inventory Turns Increased 30%• Cycle Time Reduced 34%• Gross Margins Increased 37%• Delivery Performance Increased
– To Request 84% to 92%– To Promise 85% to 96%
~~BREAKTHROUGHS~~
Proof Point - Inventory Reduction
Gross Inventory (Weekly)
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
$110,000
$105 mill
$42.9 mill
$62.5 mill
Expected Favorable Impacts Reduction in total responsiveness cycle time
1 - 2 Days9 - 17 DaysTotal Cycle Time:
1 - 2 Days1 – 5 Days Communicate / Negotiate with Supplier:
Daily 24/7 Visibility1 – 5 DaysReport Review Process Time:
Daily7 DaysRequirements Report Availability:
Factory Planner / Supplier Collaboration
BaaN MRPPlanning Process:
Procurement Cycle Time Comparison
Average Cycle Time
Internal Production Orders
42.2404
38.22
29.22
32.81
29.42
33.27
30.5830.54
32.8731.01
28.429.97
25
30
35
40
45
J an-02
Feb-02
Mar-02
Apr-02
May-02
J un-02
J ul-02
Aug-02
Sep-02
Oct-02
Nov-02
Dec-02
Avg. #
of
Days
Mfg Cycle Time calculated from Order Release to 95% Posted to Finished Goods.
Past Due Purchase Orders by Week
28
63
3640
5558
37
25
78
16
30 29
57
0
25
50
75
100
4-Oct
11-Oct
18-Oct
25-Oct
1-Nov
8-Nov
15-Nov
22-Nov
29-Nov
6-Dec
13-Dec
20-Dec
27-Dec
Past Due SFC Deliveries
14 15 18
6 6 4 6 58 8 11 13
18
30 0 2 0 1 2 3
0 1 1 0 2
3845
53
9 11
1 2 3
14
0 0 2 3
1823 22
104 6 5 7
1013
10 1015
73
83
93
2721
1218
32
22 22 25
38
15
0
20
40
60
80
100
Ord
ers
Celestica
Telco
J abil
Test
Total
Supplier P O Delinquencies
Actual Receipts
0%
5%
10%
15%
20%
25%
30%
35%
Sep
27
Oct
4
Oct
11
Oct
18
Oct
25
Nov
01
Nov
08
Nov
15
Nov
22
Nov
29
Dec
06
Dec
13
Dec
20
Dec
31
Week Ending % Delinquent Lines
% Quantity Delinquent
Factory Planner Proof PointsADTRAN Performance to First Promise
70%
75%
80%
85%
90%
95%
100%
P erformance % 88% 87% 91% 92% 89% 93% 93% 96% 93% 91% 93% 93% 93% 98% 97%
Goal % 96% 96% 96% 96% 96% 96% 96% 96% 96% 96% 96% 96% 96% 96% 96%
Oct-01
Nov-01
Dec-01
J an-02
Feb-02
M ar-02
Apr-02
M ay-02 J ul-02
Aug-02
Sep-02
Oct-02
Nov-02
Dec-02
J an-03
ADTRAN Performance to Request Date
50%
60%
70%
80%
90%
100%
P erformance % 70% 72% 75% 78% 79% 82% 82% 86% 69% 59% 64% 76% 75% 85% 91%
Goal % 92% 92% 92% 92% 92% 92% 92% 92% 92% 92% 92% 92% 92% 92% 92%
Oct-01
Nov-01
Dec-01
J an-02
Feb-02
M ar-02
Apr-02
M ay-02 J ul-02
Aug-02
Sep-02
Oct-02
Nov-02
Dec-02
J an-03
Average Cycle Time
I nternal Production Orders
42.2438.22
29.2232.81
29.4233.27
30.58 30.5432.87 31.01
28.40 29.97
0
20
40
60
J an- 02 Feb- 02 Mar- 02 Apr- 02 May- 02 J un- 02 J ul- 02 Aug- 02 Sep- 02 Oct- 02 Nov- 02 Dec- 02
Avg
. # o
f D
ays
Mf g Cycle Time calculated f rom Order Release to 95% Posted to Finished Goods.
Questions????
How do I Duplicate this Success?
How do I get “ Knowledge Turns” ?
Program Management Office
Let’s duplicate our process methodology model and develop
ADTRAN’s
Project Management Builds Momentum
Strategize
Collaborate
Anticipate
React IT Councils
PMO’s Program Management
Office
PMO Governance
Enterprise PMO
Ad Hoc Projects
2000 2005Time
Enterprise Architecture
EPMO Comes of Age
React Event Level Projects
Project Optimization
Anticipate Department Level Projects
Collaborate Cross Functional Projects
ProjectIntegration
Strategize Enterprise Projects
Program Coordination
PMO ModelsPMOs are organized around 4 missions
Mission
Share Project Management Best Practices
Compliance
Coach AdvisorPlayer Auditor
Mission
Share Project Management Best Practices
Mission
Drive successfulProject on time delivery
Mission
Facilitate ProjectPortfolio OptimizationTasks
Success
On Budget On Target Alignment
AdtranPMO Vision
Develop Scalable Systems, Processes and Solutions to enable Adtran management to achieve their goals.
PMO Mission• Develop an architectural roadmap that allows the
Company to grow Revenue & Profit and expand Global Markets
• To provide process methodologies for Strategic Visioning, Continuous Improvement, Problem Solving, and Management Training
• Establish and facilitate a governing body to review progress of EPMO managed programs
• Drive the Annual Business Planning Process
Enterprise Architecture• ERP – System Backbone• CRM – Customer Relationship
Management• SRM – Sales Relationship Management• SCM – Supply Chain Management• PLM – Product Lifecycle Management• HRM – Human Resource Management• BI – Business Intelligence
Success Breeds Success• Project Management Training• Seed the Organization with Project
Managers• COE – Develop Center of Excellence• Proving Ground for Future Leaders
