DLA_Distribution_Management_System.pdf

1. It’s a system to manage the interacting components of an organization:

- Product

- Process

- Structure

- People

Distribution Management System

The value you create

How you create & capture that value

2. It’s a system based on a “Doctrine” of rapid problem solving (i.e. high performance culture)

DLA Distribution System (DMS)

Ideal Condition: Design & Operate Work to See Problems (Rules & TTP Sheet) Product Process Structure People

Intent Products that solve the Customers “Job to be Done” (i.e. problems)

Processes that produce and deliver the products (qty, time, cost, etc)

Structures that enable comm., decision making & problem solving

People that have the capability to execute the structural roles

Ideal Condition

Design & develop the product with:

-100% value creation

-Product Fit for Job-To-Be-Done -0 Cost-of-Delay (market timing)

-100% value capture -Market Revenue and Resources

Produce and deliver the product:

-On-demand (actual customer pull) -No waiting (0 lead-time) -Zero defect -Perfect safety (phy., emot., prof) -No waste

Align and structure the roles for:

-Perfect communication, -Perfect decision making, -Perfect problem solving…

…all close in person, place & time

Develop peoples capability for role:

-Perfect commitment -Perfect knowledge -Perfect problem solving capacity -Perfect temperament (no minus T)

Short Hand

Right Product for the Right Problem (i.e. the Customers Job-to-be-done)

Right Product, Right Quantity, Right Time, Right Place, Right Price

Right Communication, Right Decision, Right Solution, Rht Time

Right People (capability), Right Role, Right Quantity, Right Time

Primary Design

Question

- What customer problem is/will this product solve (job to be done)

- Is this product a disruptive or sustaining innovation?

(drives architectural & structural decisions – ex. Heavy Weight PM)

- What is the cost of delay for this product (or added functionality)?

- What does the process produce and to whom (product mix, volume, time)

- Is the work continuously flowing and in the small batch size designed?

- How are activities connected? What is someone's trigger to start & stop work?

- What is the method for each activity?

How does the structure support:

- the development of products that solve customer problems?

- the cross-functional flow of processes to improve cost, etc?

- the coaching of subordinates;

and mentoring of sub. once removed (to develop people)?

- What capabilities are required of the people by role?

- How many people are required by roles?

- When do we need them to fill those roles?

- How are those capabilities developed (rotations, OJT, etc)?

Design Levels

1. Product Objective

2. Component Architecture

3. Component Connections

4. Component Design

1. Process Output

2. Activity Flow

3. Activity Connections

4. Activity Method

1. Structure Objective

2. Role Alignment

3. Role Relationships

4. Role Responsibility

1. People Objective

2. Development Flow

3. Development Connections

4. Development Method

Design Rules

(by level)

1.Match product to the “Job To be Done” with no “cost of delay”

2.Establish component partition & allocation of function (system boundary; modular vs. integral)

3.Establish component interfaces (robust, standard & freeze date)

4.Define component design

1.Match product supply to the rate of customer demand (takt time)

2.Establish continuous flow in small batches (1x1) across activities

3.Establish level pull signals between int. customer & supplier activities

4.Establish standard work for activities (content, sequence, time, outcome)

1.Match structure to the scope and rate of problem solving

2.Establish vertical & functional roles (level of work - 5x10)

3.Establish role relationships (authorities & accountabilities)

4.Establish standard work practice for role responsibilities

1.Match supply of capable people to the rate of role demand (takt)

2.Establish cont. flow in small batch across development activities

3.Establish level pull between people & development activities

4.Establish standard work for development activities

Built In Tests

Signals immediately if a problem has occurred (deviation from standard). The test shall be of high frequency (e.g. after each execution of the activity); and high resolution (e.g. each activity, vice groups of activities). Various types: visual, auditable, physical, electronic methods (Self inspection, Successive inspection, Error proofing, Etc). Built-in-tests are the essence of quality control and quality assurance.

TTP’s Various Tactics, Techniques & Procedures (TTP) and Terms (see back for examples)

Product Process Structure People Ke y Ta ct ic s, T ec hn iq ue s & P ro ce du re s (

TT

P) a nd T er m s

1. Product Objective

- Job to Be Done Analysis

- Disruptive or Sustaining Innovation

- Strategic “Value Proposition”:

a) Creation: non-price vs. price value

b) Capture: revenue from higher unit price and/or higher unit volume

- Strategic Alignment (processes, structure & people) making choices:

a) Perform different activities than rivals

b) Perform similar activities differently

- Minimally Viable Product (MVP)

- Cost of Delay Analysis

- Business Model Canvas Analysis

- Target Based Pricing

- “Structure follows Strategy” analysis

(Mirroring Effect – “Conway's Law”)

- Design for Manufacturability (DFM)

(product & process concurrent design)

2. Component Architecture

- System boundary analysis (functions internal & external to the product)

- Modularity & Integral Design strategies

(functions concentrated to modules vs.

functions broadly distributed across the components)

3. Component Connections

- Interface definition document

- Target freeze dates (enables concurrent design)

- Interface Management methods

4. Component Design

- Various (using “set based” thinking)

1. Process Output

- Product segmentation analysis

- Calculation of takt time

- Pull System type (sequential, supermarket, mix model)

- Production Leveling (type & qty)

- Operational diagrams

- Resource allocation (workforce, equipment, etc)

2. Activity Flow

- Process & Value stream analysis

- Small batch analysis (trade-off of transaction vs. holding cost)

- Multi-skilled workforce

- Fast change over (machines, equipment, systems, people)

- Storage management for flow

3. Activity Connections

- WIP control based on Pull signals

(FIFO, Production Signals, Withdraw signals – aka Kanban)

- Progress control boards

- For Development process (Release

& Iteration increments – “Agile”);

4. Activity Method

- Standard work by work zone (ex.

cycle time of 20 minutes, batch size of 50 items for picking zone 1)

- Standardized equip. & tools

- Workplace Organization (5S)

1. Structure Objective

- Problem Solving Requirements

a) Scope: complexity and/or span of product & process problems

b) Frequency: the rate of their occurrence (think ANDON System).

2. Role Alignment

- Vertical Alignment using “Level of

Work” (i.e. complexity of work).

*eliminate compressions & gaps

- Functional Alignment analysis:

a) group work to improve communication;

reduce complexity of work interactions;

to enable cross-functional flow of work.

b) organize core functions (focused on customer needs) vs. support functions (focused to enable core functions);

c) group functions (geographic, customer, product, process, etc)

d) manage span of controls to enable role of “Manager” & “Manager once Removed (MoR)”

3. Role Relationships

- Vertical Role Relationships (Task

Assigning)

a) Manager to Subordinate

b) “Manager once Removed” to “SoR”

c) PM to Team (Heavy, Light, Funct)

- Cross functional Role Relationships (Task Initiating)

(Prescribe, Audit, Coordinate, Monitor, Service getting, Recommend, Advise, etc.).

4. Role Responsibility

- Standard work practices by role drives “role capability model”

1. People Objective

- Role based capability models:

a) commitment & values

b) problem solving capacity

c) knowledge, skills & abilities

d) temperament (humble;

optimism)

- Calculation of takt time

- Pull System type (sequential, supermarket, mix model)

- Production Leveling (type & qty)

- Operational diagrams

- Resource allocation (to enable the below development methods)

2. Development Flow

- Process & Value stream analysis

- Small batch analysis (trade-off of transaction vs. holding cost)

- Multi-skilled workforce

- Fast change over (to enable shifting from one capability development to another)

3. Development Connections

- WIP control based on Pull signals

(FIFO, Production Signals, Withdraw signals – aka Kanban)

- Progress control boards

4. Development Method

- Standard work by capability (ex.

rotation, OJT, classroom, project based, etc)

Co m m on -Meeting Spaces (daily, weekly, monthly, qrty)

-Switch Framework (rider, elephant and path) -Simplified Activity Based Costing Methods

-Balanced Scorecard -Portfolio & Program Mgmt.

-Basic statistical tools

-Design thinking tools (Agile) -Rapid problem solving (PDCA) -Epics, User Stories, Spikes, & NFR’s

- Supplier Network Development

- High Band Width Communication (Proximity, Ladder, A&I, Relationship map)