某咨詢－戰(zhàn)略方法之二

Author:LairdReedReviewers: SarahMillard,

JasonTrevison

bcBDPMarch1998Copyright?1998Bain&Company,Inc.1CU7030298IMBBDPAgenda

TheBestDemonstratedPractices(BDP)ConceptApplicationsBDPStepsClientExampleKeyTakeaways2CU7122997KRABDPAgenda

TheBestDemonstratedPractices(BDP)ConceptApplicationsBDPStepsClientExampleKeyTakeaways3CU7122997KRABDPDescription*WhereasanRCPalwaysdealswithcosts,aBDPcoulddealwithcostsorrevenuesBDPisusedtoidentifythebestpractices-thoseleadingtothemostrevenueattheleastcost-insideoforoutsideofacompany.BDP-practicesleadingtothemostrevenueattheleastcost*InternalExternalBetweenorganizationsHistoricalCompetitorsCompaniesindifferentindustries4CU7122997KRABDPInternalvs.External

InternalBDPsaremorestraightforwardtoconductthanareexternalBDPs,buttheytendtoleadtolessdramatic,thoughoftensignificant,change.Gatheringdata:Degreeofchange:BDPInternalExternalBetweenorganizationsHistoricalCompetitorsCompaniesindifferentindustriesStraightforwardContinuousimprovementDifficultDramaticchange5CU7122997KRABDPPossibleReasonsforBetterPerformance

Moreconsolidatedsupply(VMRs)LowercostrawmaterialsHigherqualityrawmaterialsMorepartsoutsourcedMorepartsmadeinlower-costcountriesProductsSimplerproductsFewerproductvariationsPlantsFewer,morehighly-focusedplantsMoreefficientproductionprocess(longerruns,lesswaste)BetterequipmentBetterqualitycontrolLaborLonger-termcontractsBetterstructuredincentivesBettersupervisor-to-laborratioFollowingisalistofpossiblereasonssomecompaniesperformbetterthanothers:PurchasingManufacturingDistributionSellingBetterdeliverymethod(truckvs.trainvs.airplane)More(orless)frequentdeliveriesLarger(orsmaller)deliverysizesBettertrainedsalesforceLargersalesforceBetterorganizedsalesforce(byregion,byproduct,byindustry)Betterstructuredincentives6CU7122997KRABDPBDPinTheory

Intheory,byapplyingBDPpractices,youcouldcreateaBDPcompany.PurchasingManu-facturingDistributionSellingCorporatePurchasingManu-facturingDistributionSellingCorporatePurchasingManu-facturingDistributionSellingCorporateClientCompetitorACompetitorBBDPCompanyNon-BDPBDP7CU7122997KRABDPBDPinPractice

Inpractice,BDPanalysisisusedonlyinareasofthecompanywhereitcanhaveasignificantimpact.ManufacturingBDPSalesforceBDPNon-BDPBDPSituation:BeforeBDP:AfterBDP:CorporatePurchasingManufacturingDistributionSelling

CorporatePurchasingManufacturingDistributionSellingManufacturingcostsareasignificantportionoftotalcosts,andtheclientisfarfromBDPinmanufacturing.Revenuepersalesrepresentativeisamajordriverofprofitability,andtheclient’ssalesrepresentativesarefarfromBDPinrevenueperrepresentative.Corporate

CorporateActions:PurchasenewequipmentRearrangeequipmenttoimproveproductionflowRecyclewasteDecreasesupervisortolaborratioIncreaseamountoftrainingReorganizesalesforcebyindustryRestructureincentivestoencouragecross-selling8CU7122997KRABDPReasonsforUsingBDP

BecauseBDPissimple,pragmatic,andpositive(itfocusesonwhattheclientdoesbest),ithelpsusachieveresults.BDPhelpsusachieveresultsSimplePragmaticPositiveSimplemethodologyEasytoexplaintoclientStraightforwardtoimplementEasytomeasureresultsFocusesonexistingbusinessFocusesonmostleveragedareasAllowsforquantificationofpotentialimprovementLeadstoconcreteactionsBuildsmoraleattheclientbyfocusingonwhatclientdoesbestProvidesaframeworkforcontinuouslearning9CU7122997KRABDPAgenda

TheBestDemonstratedPractices(BDP)ConceptApplicationsBDPStepsClientExampleKeyTakeaways10CU7122997KRABDPApplicationsAlargeEuropeanpaperboardmanufactureroperatedsevenplantsthroughoutEurope.ABainteamanalyzedunitcostsateachplantandidentifiedanumberofbestpracticesworth$20MMor40%oftotaloperatingexpenses.ASpanishsteelproducer’’smarginswerecomingunderpressurefromfallingtradebarriers.ThecompanyaskedBaintoconductananalysisofthetechnologyandpracticesofitsglobalcompetitors.TheBDPresultedindramaticcutsinlaborcostsandareductioninthecostperkilogramofsteelof20%.TheCEOofanItaliansupermarketchaindemandedcostcutshismanagementteamcouldnotdeliver.ABainBDPrevealed10-15%productivitygapsbetweendepartmentsinthechain’’s200stores.ThefullscaleBDPledtoanaveragecostimprovementof10%perstore.BainhasusedBDPinhundredsofcasesandindozensofindustries.Someexamplesofourworkinclude:11CU7122997KRABDPAgendaTheBestDemonstratedPractices(BDP)ConceptApplicationsBDPStepsClientExampleKeyTakeaways12CU7122997KRABDPBDPStepsProcessStepKeySuccessFactorsSelectcomparable

organizationsforBDPDisaggregateorganizations

intomajorprocessesConstructfirst-cutBDPConstructadjustedBDPQuantifyimpact“PeeltheOnion”in

leveragedareasDevelopanactionplanImplementOrganizationsshouldproducesimilarproducts/servicesundersimilaroperatingconditionsLayoutmajor(3-5)processesGatherdataIdentifybestpracticeorganizationforeachprocessAdjustdataforuncontrollableelements(e.g.,laborrates,productmix)toensurean““apples-to-apples”comparisonCalculatepotentialimpact(revenueincreaseorcostsavings)byunitandbyprocessFocusonorganizationsandprocesseswiththemostpotentialDeterminedriversofdifferencesatamoredisaggregatedlevelSetaBDPtargetEstablishadetailedscheduleAssignresponsibilitiesObtaincommitmentatalllevelsoftheorganizationCommunicategoals,deadlinesandresponsibilitiesCelebratesuccessesalongthewayDoingaBDPanalysisinvolvesseveralsteps.13CU7122997KRABDPAgendaTheBestDemonstratedPractices(BDP)ConceptApplicationsBDPStepsClientExampleKeyTakeaways14CU7122997KRABDPStickyTape*-Background*DisguisedclientcaseSituation:Theclient,StickyTape,isthethemarketleaderintheadhesivetapeindustryandhasfourplantsmakingducttapeandmaskingtape.ThereissignificantcostsharingbetweenthesetwoproductsComplication:TheCEOisconcernedthatStickyTape’scostadvantagemightbeerodingandheiseagertofindwaystocutmanufacturingcostsQuestion:HowcanStickyTapeidentifythemostleveragedareasforcostreduction,thecostreductionpotential,andwaystoimplementthecostreductionopportunities?BainusedBDPtohelpourclient,StickyTape,reduceitsmanufacturingcosts.15CU7122997KRABDPBDPStepsProcessStepKeySuccessFactorsSelectcomparableorganizationsforBDPDisaggregateorganizationsintomajorprocessesConstructfirst-cutBDPConstructadjustedBDPQuantifyimpact“PeeltheOnion”inleveragedareasDevelopanactionplanImplementOrganizationsshouldproducesimilarproducts/servicesundersimilaroperatingconditions16CU7122997KRABDPStickyTape-ComparableOrganizationsAcrossthemostimportantscreeningcriteria,StickyTape’sfourplantsanditscompetitors’plantsareroughlycomparable.ComparableorganizationsSimilarproducts,productmixes,andvolumesSimilarcustomerrequirementsandbusinesspracticesSimilartechnologySimilarproductdesignsSimilaraccountingpractices17CU7122997KRABDPBDPStepsProcessStepKeySuccessFactorsSelectcomparableorganizationsforBDPDisaggregateorganizationsintomajorprocessesConstructfirst-cutBDPConstructadjustedBDPQuantifyimpact“PeeltheOnion”inleveragedareasDevelopanactionplanImplementLayoutmajor(3-5)processes18CU7122997KRABDPStickyTape-MajorProcessesMakingtapeinvolvesthreemajorprocesses:RewindingSlittingPackagingBasematerialrunsfromacorerollAdhesivematerialisaddedandcuredBasematerialplusadhesiveisfedontoamasterrollMasterrollisslitintofinalwidthsVarioussizedunitsarepackaged19CU7122997KRABDPBDPStepsProcessStepKeySuccessFactorsSelectcomparableorganizationsforBDPDisaggregateorganizationsintomajorprocessesConstructfirst-cutBDPConstructadjustedBDPQuantifyimpact“PeeltheOnion”inleveragedareasDevelopanactionplanImplementGatherdataIdentifybestpracticeorganizationforeachprocess20CU7122997KRABDPStickyTape-OverallCostPositionOverall,StickyTapeisthelowestcostmanufacturer.21CU7122997KRABDPStickyTape-First-CutBDP*CompetitorsBandChadnoBDPsAlthoughStickyTapeisalreadythelowestcostmanufacturer,noneofitsplantsisBDPineveryprocess,andCompetitorAistheBDPinpackaging.BDPCompetitorAPlantDPlantsAandCStickyTape$0.15$0.05$0.10$0.10$0.07$0.15$0.10$0.10$0.10$0.08$0.02$0.15$0.10$0.05$0.20$0.02$0.05$0.1022CU7122997KRABDPBDPStepsProcessStepKeySuccessFactorsSelectcomparableorganizationsforBDPDisaggregateorganizationsintomajorprocessesConstructfirst-cutBDPConstructadjustedBDPQuantifyimpact“PeeltheOnion”inleveragedareasDevelopanactionplanImplementAdjustdataforuncontrollableelements(e.g.,laborrates,productmix)toensurean““apples-to-apples”comparison23CU7122997KRABDPControllablevs.UncontrollableCostsForanalysistobemeaningful(andbelievable),costsmustbeadjustedforthosethatarebeyondthecontrolofoperatingmanagers.ControllableUncontrollableRawmaterialscost/unitusageQualityLaborhoursOverheadstaffingSpaceutilizationProductmixLaborratesUnion-imposedcostsRentalratesUtilityratesInsuranceTaxesAccountingprocedures24CU7122997KRABDPStickyTape-UncontrollableCostsDifferentplantshavedifferentuncontrollablecosts.“Anunadjustedcomparisonisunfair.We’vegotthehighestlaborratesinthecountry.”-Supervisor,PlantA“We’remakingmaskingtapeover30%ofthetime.Thatstuffripsallthetime.LetmerunducttapealldayandI’llbeatanyplant.”-Rewinder,PlantC“We’reaunionshop.Ourworkrulescreatecoststheotherplantsdon’thave.”-Plantmanager,PlantD25CU7122997KRABDPStickyTape-Adjusted*BDP*Adjustedforlaborandutilityratesandproductmix**Inthisparticularcase,theoverallBDPdoesnothappentochange.Thecomponents,however,dochange.Adjustingforuncontrollablecostshasasignificantimpactonthecostsforeachplant.BDP(adjusted)BDP(unadjusted)RewindSlitPackagePlantAPlantBPlantCPlantDCompetitorA$0.15$0.05$0.05$0.07$0.10$0.15$0.10$0.05$0.07$0.07$0.15$0.18$0.10$0.08$0.10$0.08$0.10$0.09$0.08$0.05$0.02$0.03$0.15$0.12$0.05$0.05$0.10$0.09$0.20$0.18$0.05$0.03$0.02$0.09$0.10$0.0526CU7122997KRABDPBDPStepsProcessStepKeySuccessFactorsSelectcomparableorganizationsforBDPDisaggregateorganizationsintomajorprocessesConstructfirst-cutBDPConstructadjustedBDPQuantifyimpact“PeeltheOnion”inleveragedareasDevelopanactionplanImplementCalculatepotentialimpact(revenueincreaseorcostsavings)byunitandbyprocess27CU7122997KRABDPStickyTape-PotentialSavingsStickyTapecansaveanaverageof$0.08perroll,or$5.6MMoverall,byimplementingbestpractices.Rollsperyear:20MM18MM6MM27MMPotentialSavingsperRollPotentialTotalSavingsAveragepotentialsavings=$0.0828CU7122997KRABDPStickyTape-BackupforPotentialSavingsTotalpotentialsavingsbyplant:Totalpotentialsavingsbyprocess:PlantAsavingsperrollXNumberofrolls=()+PlantBsavingsperrollXNumberofrolls()PlantCsavingsperrollXNumberofrolls()+PlantDsavingsperrollXNumberofrolls()+=($0.10x20MM)+($0.13x18MM)+($0.08x6MM)+($0.03x27MM)=$5.6MM=Rewindsavingsateachplant+Slitsavingsforeachplant+Packagesavingsforeachplant=($0.06x20MM)+($0.09x18MM)+($0.03x27MM)+($0.04x20MM)+($0.04x18MM)+($0.05x6MM)+($0.03x6MM)=$5.6MMRewindsavingsateachplantSlitsavingsforeachplantPackagesavingsforeachplant++=29CU7122997KRABDPBDPStepsProcessStepKeySuccessFactorsSelectcomparableorganizationsforBDPDisaggregateorganizationsintomajorprocessesConstructfirst-cutBDPConstructadjustedBDPQuantifyimpact“PeeltheOnion”inleveragedareasDevelopanactionplanImplementFocusonorganizationsandprocesseswiththemostpotentialDeterminedriversofdifferencesatamoredisaggregatedlevel30CU7122997KRABDPPriorityMatrixUnattainablesBackburnerHighLowLowHighAbilitytoImplementImpactQuickhitsToppriorityFocusonthoseareasthatwillyieldthegreatestbenefits.31CU7122997KRABDPStickyTape-TopPrioritiesThetopprioritiesforStickyTapeareplantsAandBandrewinding.WhatdoPlantsCandDdodifferentlythatresultsinlowercosts?Whatdrivesrewindingcosts?PlantDPlantCPlantBPlantAPackageSlitRewindByplantByprocess$5.6MM$5.6MM$0.0$2.0$4.0$6.0PotentialAnnualSavings($MM)PotentialTotalSavings32CU7122997KRABDPStickyTape-RewindingCosts*Utilities,occupancy,supplies,supervisionPlantCistheBDPinrewindinglaborandrewindingrawmaterials,plantDinrewindingoverhead.PlantDPlantCPlantC33CU7122997KRABDPStickyTape-DriversofRewindingCostsTheBainteamdeterminedthedriversofrewindingcostsinordertosuggestconcreteactionsteps:RuntimeMasterrollload/unloadCoreload/unloadFirstqualityDefectsEaseofmovingspoolsoftapearoundtheroomEaseofloadingandunloadingspoolsoftapeTapetearsAdhesiverunsSuggestconcreteactionstepsLaborRawmaterialsOverheadRewinding34CU7122997KRABDPBDPStepsProcessStepKeySuccessFactorsSelectcomparableorganizationsforBDPDisaggregateorganizationsintomajorprocessesConstructfirst-cutBDPConstructadjustedBDPQuantifyimpact“PeeltheOnion”inleveragedareasDevelopanactionplanImplementSetaBDPtargetEstablishadetailedscheduleAssignresponsibilities35CU7122997KRABDPStickyTape-ActionPlanBuylargerinternaldiametercorestoslidemoreeasilyintoplaceMoverewindingroomwallstoprovidegreaterclearanceforloading/unloadingUselowercorebinstomakecorestorageeasierReducetensionto122toreducetapetearsInstallairconditioningsystemtoreduceadhesiverunsCost---$72K$17K---$130K+$40KperyearAverageSavings/MasterRoll$16$10$4$28$22AnnualSavings$0.8MM$0.5MM$0.2MM$1.4MM$1.1MMTimingThreemonthstodrawdowninventoryTwomonthsforconstructionNowNowThreemonthsforinstallationResponsibilityPurchasingPlantmanagerLinesupervisorLinesupervisorTechnicalmanagerDevelopinganactionplaninvolvedsettingtargets,establishingaschedule,andassigningresponsibilities.36CU7122997KRABDPBDPStepsProcessStepKeySuccessFactorsSelectcomparableorganizationsforBDPDisaggregateorganizationsintomajorprocessesConstructfirst-cutBDPConstructadjustedBDPQuantifyimpact“PeeltheOnion”inleveragedareasDevelopanactionplanImplementObtaincommitmentatalllevelsoftheorganizationCommunicategoals,deadlinesandresponsibilitiesCelebratesuccessesalongtheway37CU7122997KRABDPStickyTape-ImplementationSuccessfulimplementationinvolvesobtainingcommitmentatalllevelsoftheclientorganization;communicatingclearlyaboutgoals,deadlines,andresponsibilities;andcelebratingachievementsmadeinreachinggoals.CommitmentMoraleboostingAtseniormanagementlevelAtoperatingmanagementlevelAtoperatingnon-managementlevelAnnouncementsasmilestonesarereachedArunningtallyofcostsavingsRewardsforsuperiorachievementsCommunicationGoalsDeadlinesResponsibilities38CU7122997KRABDPStickyTape-LessonsLearnedCompaniesthatareBDPsinanaggregateviewarenotnecessarilyBDPsineverythingTheycanoftenlearnfromexaminingtheirownoperationsaswellasothers’Itisnecessarytodisaggregatecostelements(“PeeltheOnion”)andgetdowntocostdriverstodetermineappropriateactionstepsActionstepsmustbeagreeduponandcommittedtoatalllevelsoftheclientorganization39CU7122997KRABDPAgendaTheBestDemonstratedPractices(BDP)ConceptApplicationsBDPStepsClientExampleKeyTakeaways40CU7122997KRABDPKeyTakeawaysBDPisusedtoidentifythebestpractices-thoseleadingtothemostrevenueattheleastcost-insideoforoutsideofacompanyInternalBDPscanbedonebetweenorganizationsoragainsthistoricaldata.ExternalBDPscanbedoneagainstdirectcompetitorsoragainstcompaniesinadifferentindustry.InternalBDPsaremorestraightforwardtoconductthanareexternalBDPs,buttheytendtoleadtolessdramatic,thoughoftensignificant,changeBDPOverviewBDPStepsKeySuccessFactorsKeysuccessfactorsinclude:understandingtheclientoperationsatadetailedlevel,lookingatrelevantinternalandexternalcomparables,focusingonthemostleveragedareas,gatheringandanalyzingdata,obtainingcommitmentatalllevelsoftheclientorganization,andcommunicatingclearlyThereareeightstepsindoingaBDP:SelectcomparableorganizationsforBDPDisaggregateorganizationsintomajorprocessesConstructfirst-cutBDPConstructadjustedBDPQuantifyimpact“PeeltheOnion”inleveragedareasDevelopanactionplanImplement41CU7122997KRABDPTakeawaySlides(1)BDP-practicesleadingtothemostrevenueattheleastcostInternalExternalBetweenorganizationsHistoricalCompetitorsCompaniesindifferentindustriesInternalandExternalBDPsReasonsforBetterPerformanceBDPStepsProcessStepKeySuccessFactorsSelectcomparableorganizationsforBDPDisaggregateorganizationsintomajorprocessesConstructfirst-cutBDPConstructadjustedBDPQuantifyimpact“PeeltheOnion”inleveragedareasDevelopanactionplanImplementOrganizationsshouldproducesimilarproducts/servicesundersimilaroperatingconditionsLayoutmajor(3-5)processesGatherdataIdentify