Prepared for State of Flux

SPM Supplier Engagement Requirements: 7 Key Enablers for Continuous Improvement

Content
1. 2. 3. 4. 5. 6. 7. Sponsorship Ownership Expert Support Forecast Training Engagement Records & Reporting

State of1Flux Ltd 2012

Sponsorship
Definition A Senior Management representative within the suppliers organisation must be identified and empowered within the whole organisation to ensure availability of all resources required to guarantee the success of the Suppliers Continuous Improvement Programme in support of the clients SPM Programme The executive sponsor shall have the authority to authorize the financial benefits identified within SIA and DMAIC projects The executive sponsor shall have the authority to approve sharing the financial benefits from its organisation with the client The Executive sponsor is the ultimate point within the supplier on the escalation path

Shall include ` Name of the Senior Manager/Executive (s) Orgchart depicting managers position & ability to act globally

State of1Flux Ltd 2012

Ownership
Definition Assign a dedicated Programme Manager, capable to identify and manage required resources to guarantee the success of the SPM Programme, responsible to: Organise create, maintain and ensure that effective and standard process are used for the SPM Programme across global and local teams Consolidate collect, collate and analyse results obtained on each engagement Coordinate ensure proper management of needed resources Communicate ensure effective internal and external information flow Report consolidate regular performance reports and distribute them internally and externally Manage stakeholders, sponsors and customers Analyse local improvement projects into global initiatives that can benefit multiple OpCos Deploy successful local initiatives across other OpCos Shall include ` Name of the Programme Manager and org-chart depicting: Managers position; Local (or Regional) Account Managers & Service Delivery Managers; Quality Managers Reporting line (direct or indirect) Escalation paths and timings
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State of1Flux Ltd 2012

Expert Support
Definition The Programme Manager is responsible to identify and allocate expert support to projects arising from the SPM evaluation results or feedback sessions. Example of expertise related to the SPM Pillars scorecard can include but are not limited to : CR Environmental, Health & Safety Finance Chief Financial Officer Technology Test Engineers, Development Managers Commercial Contract Managers Delivery Logistics Planner, B2B specialist Quality 6 Sigma Black Belt

Shall include Other expert skill sets may be required to support or facilitate effective investigation, definition and delivery of continuous improvement projects. According to the scale & complexity of continuous improvement projects an experienced Project Manager may be required to assure successful project delivery. It is recommended that 6 Sigma qualified resources are used to facilitate feedback sessions and drive root cause analysis on areas of opportunity highlighted from SPM evaluation results.

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State of1Flux Ltd 2012

Forecast
Definition The Programme manager shall deliver a documented forecast of the suppliers global evaluation scores to the defined target Forecasting the SPM results is important to focus and define the required levels of effort and resources for supplier engagement. Forecast and level of effort must match in order to guarantee the delivery of the SPM Programme targets If the forecast does not match the real results, a gap analysis shall be performed to identify where and why the continuous improvement activities failed and how to recover.

Shall include The forecast & analysis should identify opportunities and priorities that support the achievement of the defined target. The global forecast shall be supported by scores per SPM cycle within each country and material category. The global forecast shall be re-aligned as necessary following results. Forecasts & gap analysis shall be documented and reported The forecast can be directly linked to personal objectives & goals. Forecast must be endorsed by the Executive Sponsor. This provides an evidence of their commitment on the SPM Programme

State of1Flux Ltd 2012

Training
Definition Allocated resources shall be trained on the objectives, Programme requirements, processes, roles and responsibilities relevant to the effective execution of the supplier continuous improvement Programme in support of the clients SPM Programme Team members involved directly on the SPM Programme shall have a minimum training of: Voice of the Customer & Continuous improvement techniques Root cause analysis, corrective and preventative actions Shall include Training material, processes & records shall be documented & retained The Programme Manager shall be responsible to develop and maintain a training and skills matrix of suppliers SPM team It is required that a minimal training scope shall include : SPM Programme foundation and objectives Engagement Model Feedback Session Model Optimisation Process The Programme Manager shall monitor team rotation at country level in order to guarantee effective training & support for new team members The Programme Manager shall be responsible to guarantee the continuity of local skill & engagement
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State of1Flux Ltd 2012

Engagement
Definition The Programme Manager shall be responsible to define and co-ordinate the deployment of the engagement plan. The engagement plan shall be reviewed and published within 2 weeks of the evaluation scores The engagement plan shall be defined and prioritised based on : Supplier Engagement Class Shared financial return of the engagement Optimum score impact Local spend by material category Strategic benefit Score trends Systemic incidents or process failures

Shall include At a minimum the engagement plan shall address (owned by Programme Manager): Evaluation score analysis Engagement format and location Material category association Appropriate supplier participants including required experts or stakeholders Appropriate customer participants and stakeholders from customer side Time frame, required physical resources and logistics State of1Flux Ltd 2012 Budget requirements

Records & Reporting

Definition Reporting is to guarantee communication & visibility of engagement decisions, actions and results The Programme Manager shall consolidate and distribute a status report regarding SPM activities, achievements, highlights and roadblocks. The status report shall be proactively prepared and distributed to SPM stakeholders at least monthly All engagements under the SPM scope shall be documented as Minutes of Meetings (MoM) and distributed to the relevant audience within 1 week of the event.

Shall include Monthly reports shall be distributed according to the Engagement Model. MoMs shall be distributed to appropriate personnel The Programme Manager is responsible to address escalations and roadblocks as fast and effectively as needed Concern Reports are not considered to be part of the standard reporting package. They must be addressed on the format and timings as required. It is recommended that a lean reporting policy is defined, documented & distributed by the Programme Manager to ensure effective and efficient communication flow

State of1Flux Ltd 2012