PATENT ABSTRACT
A high performance capability assessment model helps an automotive industry business meet the challenges of the global marketplace. As a result, the automotive industry business can achieve the clarity, consistency, and well-defined execution of core processes that reduce inefficiencies and waste that result from unnecessary process complexity and exceptions. In addition, the high performance capability assessment model helps the automotive industry business to identify specific areas in which improvements may be made and understand how to make the improvements, and establishes levels of capability along the way to reaching an ultimate capability goal.

PATENT DESCRIPTION
CROSS-REFERENCE TO RELATED APPLICATIONS 
     This application claims the benefit of priority from U.S. Provisional Patent Application Ser. No. 61/086,927, filed on Aug. 7, 2008, entitled Automotive Industry High Performance Capability Assessment, and is hereby incorporated by reference in its entirety. 
     BACKGROUND OF THE INVENTION 
     1. Technical Field 
     This disclosure concerns a system and method to identify the performance capability of an organization on a scale of representative capabilities. In particular, this disclosure relates to an efficient and cost effective way to assess the performance capability level of key assessment areas within the processes of an organization. 
     2. Background Information 
     The automotive industry must adapt to an increasingly competitive environment and execute in a clear, consistent, and efficient manner. Furthermore, the global nature of the automotive industry greatly increases the complexity and difficulty of surviving on a day-to-day basis, let alone growing and prospering. 
     Despite the need for a business in the automotive industry to meet the challenges of the global marketplace, often the business lacks clarity, consistency, and well-defined execution of the core processes of the business. These shortcomings severely constrain the business, and lead directly to inefficiencies and waste due to unnecessary complexity, process exceptions, and customer dissatisfaction. At the same time, identifying specific processes to which improvements may be made can be very difficult, either because the business itself does not have the expertise to identify the processes or because the complexities of the business frustrate attempts to clearly delineate the processes to be improved. 
     Even if the automotive industry business can identify one of the many processes that need to improve, the business may not know how to improve the process or be able to identify a concrete and measurable improvement goal. Another difficulty exists in determining whether intermediate goals exist that should be reached along the way. As a result, automotive industry businesses struggle to meet the demands of the modern global marketplace and fail to identify opportunities for margin improvement, category expansion, portfolio optimization, multi-channel execution, selling performance, and to reach other important goals. 
     Therefore, a need exists for an efficient and effective system and method to assess the performance capability level of key assessment areas within the processes of an organization. 
     SUMMARY 
     A high performance capability assessment (HPCA) model helps businesses, particularly an automotive business, meet the challenges of the global marketplace by defining a scale of performance capability along which the current practices of the business may be located. The HPCA model accelerates the discovery of process and capability gaps within business operations. In addition, the HPCA model also helps the business to identify specific areas in which improvements may be made, how to make the improvements, and how to establish levels of capability during the course of attempting to achieve an ultimate capability goal. As a result, the business can achieve the clarity, consistency, and well-defined execution of core processes that reduce inefficiencies and waste. 
     The HPCA model includes a key factor dimension and a performance capability scale dimension. The performance capability scale dimension defines multiple capability levels. The performance capability levels may form a scale of increasing organizational performance capability. One example of such a scale includes a ‘Basic’ capability level, a ‘Competitive’ capability level, and a ‘Market Leading’ capability level. Each performance capability level includes criteria specific to a corresponding key assessment area. Each key assessment area identifies some aspect of a capability of a business. 
     Capabilities of a business may be grouped into platforms. For example, the HPCA model may group the capabilities of the automotive industry into three high-level platforms, including a vision and strategy platform, core functions platform, and support functions platform. Examples of capabilities within the vision and strategy platform include external analysis and internal business planning. Platforms may include sub-platforms, as well as capabilities. Examples of sub-platforms within the core functions platform include product development, sourcing and procurement, production and logistics, marketing and sales, after sales, and cross core functions. Examples of sub-platforms within the support platform include enterprise management and captive banking functions. 
     The key factor dimension establishes a set of key assessment areas in which to analyze the capabilities of a business. Key assessment areas include performance capability criteria. Performance capability criteria populate the performance capability assessment model. The performance capability criteria may be specific to any one of many different business capabilities. For example, the vision and strategy platform includes performance capability criteria for external analysis and internal business planning key assessment areas at each of the capability levels along the performance capability scale dimension and in each of the key assessment areas along the key factor dimension. Any number of performance capability assessment models and performance capability criteria may be defined and stored in a capability detail pool for subsequent retrieval and application to a business under examination. Accordingly, the HPCA model provides a flexible and adaptive scale of performance capability against which business practices may be compared to ascertain where the capabilities of a business under examination fall along the scale. 
     Other systems, methods, features and advantages will be, or will become, apparent to one with skill in the art upon examination of the following figures and detailed description. All such additional systems, methods, features and advantages are included within this description, are within the scope of the invention, and are protected by the following claims. 
    
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
       The performance capability assessment model and system may be better understood with reference to the following drawings and description. The elements in the figures are not necessarily to scale, emphasis instead being placed upon illustrating the principles of the capability assessment techniques. In the figures, like-referenced numerals designate corresponding parts throughout the different views. 
         FIG. 1  shows an example of the high-level platforms that organize capabilities in a performance capability assessment model. 
         FIG. 2  shows a high performance capability assessment model with a performance capability scale and performance capability criteria. 
         FIG. 3  shows a high performance capability assessment model with three is capabilities within the vision and strategy. 
         FIG. 4  shows a high performance capability assessment model with external analysis and internal business planning capabilities within the core function platform. 
         FIG. 5  shows a capability detail pool providing a multidimensional automotive industry performance reference set where multiple key assessment performance reference tables are collected and stored. 
         FIG. 6  shows a capability assessment system. 
         FIG. 7  shows a flow diagram for establishing high performance capability assessment models. 
         FIG. 8  shows a flow diagram for retrieving and applying high performance capability assessment models. 
         FIG. 9  shows a flow diagram for analyzing representative practice data to determine an automotive industry and an automotive key assessment area to which the representative practice data applies. 
     
    
    
     DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS 
     The HPCA model establishes a multidimensional automotive industry performance reference set that includes multiple key assessment performance reference tables. The key assessment performance reference tables include a ‘Basic’ performance capability level, a ‘Competitive’ performance capability level and a ‘Market Leading’ performance capability level. The ‘Basic’ performance capability level specifies ‘Basic’ performance assessment criteria, the ‘Competitive’ performance capability level specifies ‘Competitive’ performance assessment criteria, and the ‘Market Leading’ performance capability level specifies ‘Market Leading’ performance assessment criteria. The HPCA model receives input data that specifies an automotive industry platform (e.g., an automotive industry area) and an automotive industry key assessment area for analysis. The HPCA model searches the multidimensional automotive industry performance reference set for a matching key assessment performance reference table that matches the automotive industry platform and automotive industry capability within the platform and the automotive industry key assessment area, and retrieves the matching key assessment performance reference table. The HPCA model initiates analysis of the matching key assessment performance reference table to obtain a resultant performance capability level for the automotive industry key assessment area. 
       FIG. 1  shows a high performance capability assessment (HPCA) model  100 . The HPCA model  100  specifies three platforms including vision and strategy platform  102 , core functions platform  104 , and support functions platform  106 . Additional, different, or fewer platforms may be used in other implementations, each platform defining additional, different, or fewer capabilities. Each platform includes one or more capabilities. In particular, the vision and strategy platform  102  includes an external analysis capability  110  and an internal business planning capability  112 . The core functions platform  104  includes a product development key platform  114 , a sourcing and procurement platform  116 , a production and logistics platform  118 , a marketing and sales platform  120 , an after sales platform  122 , and a cross core functions platform  124 . The support functions platform  106  includes an enterprise management platform  126  and a captive banking functions platform  128 . 
     Each capability includes one or more key assessment areas. Each key assessment area may include one or more additional key assessment areas. In other words, a business capability may include sub-capabilities, and therefore, key assessment areas corresponding to the multiple sub-capabilities. The product development platform  114  of the core functions platform  104  includes a new product development capability  130 , an engineering capability  132 , and product lifecycle management capability  134 . The tables below show specific criteria used to analyze each capability. The sourcing and procurement platform  116  includes a procurement strategy capability  136 , a strategic sourcing and category management capability  138 , a requisition to pay capability  140 , and a supplier relationship management capability  142 . The production and logistics platform  118  includes a production forecasting planning and scheduling capability  144 , an inbound logistics capability  146 , a manufacturing and assembly capability  148 , and an outbound logistics capability  150 . The marketing and sales platform  120  includes a brand management capability  152 , product and service marketing capability  154 , a channel integration and management capability  156 , a product and service sales capability  158 , and customer relationship management capability  160 . 
     The after sales platform  122  includes an after sales parts platform  162 , and an after sales service platform  164 . The after sales parts platform  162  may further include a forecasting and planning capability  166 , a product design and management capability  168 , a marketing and sales capability  170 , a procurement and inbound logistics capability  172 , a warehouse management capability  174 , and an outbound logistics capability  176 . The after sales services platform  164  may further include a service strategy capability  178 , a technical support capability  180 , and a warranty and recall campaign management capability  182 . 
     The cross core functions platform  122  may include a cross-functional planning capability  184 , an order management capability  186 , a quality management capability  188 , a call center management capability  190 , and a remanufacturing and recycle management capability  192 . The enterprise management platform  126  of the support functions platform  106  may include a financial management capability  194 , a human resources capability  196 , an information management capability  198 , a procurement capability  200 , a legal compliance capability  202 , an enterprise asset management capability  204 , and an environment health and safety management capability  206 . 
       FIG. 2  shows a portion of the HPCA model  100  and multiple capability levels  208 . The capability levels  208  establish a scale of increasing organizational performance capability. In  FIG. 2 , the capability levels  208  include a ‘Basic’ capability level  210 , a ‘Competitive’ capability level  212 , and a ‘Market Leading’ capability level  214 . The HPCA model  100  establishes a performance capability scale  216  along which current business practices may be located and identified with respect to any platform and capability within a platform according to an analysis of performance capability criteria (PCC) (e.g.,  220 - 230 ). 
     Table 1 provides an explanation of the external analysis capability  110  and two key assessment areas within the external analysis capability, including a external analysis—customer analysis key assessment area and a external analysis—competitor key assessment area that includes performance capability criteria (PCC) (e.g.,  220 - 230 ). The capability under evaluation may be assigned a capability level  208  based on a capability position  218  along the performance capability scale  216  (e.g., the ‘competitive’ capability level  212 ). 
     Performance capability criteria (e.g.,  220 - 230 ) populate the HPCA model  100 . The performance capability criteria capture criteria, characteristics, and/or other features of a capability at a particular capability level for a key assessment area. Examples below illustrate performance capability criteria that provide unexpectedly good analysis and benchmarking for automotive organizations. The HPCA model  100  performance capability criteria provide a tool for determining where a platform and capability under examination falls along the performance capability scale  216 . For example, process engineers may interview a business or receive data about the business to determine, measure, or otherwise ascertain the characteristics, criteria, and other features of a particular capability implemented within the business. The process engineers may compare the characteristics of the business to the performance capability criteria in the HPCA model  100  and arrive at a capability level  208  for the capability under examination. In doing so, for example, the process engineers may identify where the capability under examination falls in terms of capability level for each key assessment area of a capability and determine an overall position on the performance capability scale  216  for the capability under examination. Performance capability criteria may populate the HPCA model  100  in whole or in part. Multiple high performance capability assessment models may be collected and stored with the performance capability criteria for future retrieval and possible modification in a capability detail pool, discussed below. 
     
       
         
               
             
               
               
             
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 1 
               
               
                   
               
               
                 Vision and Strategy-External Analysis 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description:  
                 Analysis in strategic management, assessment of the  
               
               
                   
                 company strengths, weaknesses and opportunities;  
               
               
                   
                 Customers and Industry/Markets Analysis  
               
             
          
           
               
                 External Analysis - Customer Analysis Key Assessment Area (KAA)  
               
             
          
           
               
                 Basic  
                 Customer Analysis:  
               
               
                 Criteria: 
                 Segmentation based on customer characteristics such as  
               
               
                   
                 company size and industry classification  
               
               
                   
                 No segment-differentiation in Advertising 
               
               
                   
                 Ad hoc approach to gathering customer information mainly  
               
               
                   
                 characterized by internal guessing/imagining of customer  
               
               
                   
                 desires  
               
               
                   
                 Gathering of general customer information from the average 
               
               
                   
                 customer 
               
               
                   
                 Customer information not spread throughout the organization 
               
               
                   
                 but rather isolated where it was gathered  
               
               
                   
                 No monitoring of changes in customer desires throughout the  
               
               
                   
                 development cycle  
               
               
                 Competitive 
                 Customer Analysis:  
               
               
                 Criteria: 
                 Segmentation based on profitability; segment customers to  
               
               
                   
                 understand and meet customers&#39; needs (services, prices, and  
               
               
                   
                 quality)  
               
               
                   
                 Segment-specific value propositions and strategies  
               
               
                   
                 Advertising focused on more profitable customer segments  
               
               
                   
                 Capture Data not always consistently/cleanly: central  
               
               
                   
                 integrated repository of customer information often missing 
               
               
                   
                 Customer information shared across functions and used for  
               
               
                   
                 business planning  
               
               
                   
                 Lack of continuous improvement in monitoring customer  
               
               
                   
                 desires based on past data results  
               
               
                 Market  
                 Customer Analysis:  
               
               
                 Leading 
                 Segmentation based on buyer benefits/reasons for buying,  
               
               
                 Criteria: 
                 (e.g., reliable, low cost earth moving machine), rigorous voice  
               
               
                   
                 of customer analysis  
               
               
                   
                 Advertising focused on different segments with different  
               
               
                   
                 messages  
               
               
                   
                 Continuous, real time electronic data capture and storage;  
               
               
                   
                 Structured and facts based approach to gathering customer  
               
               
                   
                 information with established purposes and objectives; third  
               
               
                   
                 party partnerships formed to gather data  
               
               
                   
                 Customer information made accessible throughout the  
               
               
                   
                 organization, favorably with the help of IT  
               
               
                   
                 General customer information complemented with learning  
               
               
                   
                 from forefront users  
               
               
                   
                 Continuous monitoring of customer desires and reevaluation  
               
               
                   
                 of made assumptions/decision.  
               
             
          
           
               
                 External Analysis - Competitor Analysis Key Assessment Area  
               
             
          
           
               
                 Basic  
                 Competitor Analysis:  
               
               
                 Criteria: 
                 Competitor information gathered on an ad hoc basis and  
               
               
                   
                 isolated in different parts of the organization  
               
               
                   
                 Tear-down analysis of competitor products identifying  
               
               
                   
                 functional and quality characteristics  
               
               
                   
                 No monitoring of changes in competitive situation throughout  
               
               
                   
                 the development cycle  
               
               
                 Competitive 
                 Competitor Analysis:  
               
               
                 Criteria: 
                 Competitor information shared across functions  
               
               
                   
                 Analysis of competitor products identifying functional, quality  
               
               
                   
                 characteristics and service level opportunities  
               
               
                   
                 Periodic monitoring of competitor actions and market trends  
               
               
                 Market  
                 Competitor Analysis:  
               
               
                 Leading 
                 Competitor information gathered in a structured way and  
               
               
                 Criteria: 
                 made available throughout the organization  
               
               
                   
                 Reversed engineering identifying not only competitor  
               
               
                   
                 products performance (e.g., functional, quality, and service  
               
               
                   
                 level) but also cost structure  
               
               
                   
                 Continuous monitoring of competitor actions, market trends  
               
               
                   
                 and attractive analysis. Reevaluation of made assumptions/  
               
               
                   
                 decisions. 
               
               
                   
               
             
          
         
       
     
     Table 2 provides an explanation of the internal business planning capability  112  within the vision and strategy platform  102 . Table 2 further illustrates the internal business planning capability  112  with one corresponding key assessment area that includes performance capability criteria (PCC) for each capability level. 
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 2 
               
               
                   
               
               
                 Vision and Strategy-Internal Business Planning 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description:  
                 Implementation of activities necessary for the company to  
               
               
                   
                 succeed.  
               
               
                   
                 Internal Business Planning capability is split into two main  
               
               
                   
                 processes: Set Business Goals; and Define Business Plan  
               
             
          
           
               
                 Internal Business Planning KAA  
               
             
          
           
               
                 Basic  
                 Company focus is on the bottom line  
               
               
                 Criteria: 
                 The company is driven by function  
               
               
                   
                 Top Management sets targets (top-down approach)  
               
               
                   
                 Business goals not spread throughout the organization  
               
               
                   
                 Companies operate with operational review meetings to  
               
               
                   
                 assess whether performance is consistent with the annual  
               
               
                   
                 operating plan  
               
               
                   
                 Accounting measures do not capture key business changes  
               
               
                   
                 in time and reflect divisional processes  
               
               
                   
                 Manager performance is measured on the ability to come in  
               
               
                   
                 under budget  
               
               
                   
                 No clear overriding of Product Offering Planning seen as a  
               
               
                   
                 process of incremental improvement of the existing product  
               
               
                   
                 lines  
               
               
                   
                 Aggregate Sales Targets  
               
               
                   
                 Planning Parameters not driven by the business strategy  
               
               
                 Competitive 
                 Company focus on best total cost, best product, or best total  
               
               
                 Criteria:  
                 solution, not the bottom line  
               
               
                   
                 The company is process-driven  
               
               
                   
                 Integrated, bottom-up approach to planning  
               
               
                   
                 Business goals and plans shared across functions  
               
               
                   
                 Time is spent reflecting on whether the organization&#39;s  
               
               
                   
                 strategy is proceeding as expected  
               
               
                   
                 Performance measures have predictive power and reflect  
               
               
                   
                 cross-functional processes  
               
               
                   
                 Manager performance is measured by financial results such  
               
               
                   
                 as shareholder value but also by non-financial measures  
               
               
                   
                 such as ‘quality’ for customer  
               
               
                   
                 Product Offering Planning considers market requirements  
               
               
                   
                 when making product line decisions  
               
               
                   
                 Sales Targets segment-oriented  
               
               
                   
                 Planning Parameters driven by business strategy and KPIs  
               
               
                 Market  
                 Company combines its focus on processes and functions to  
               
               
                 Leading 
                 produce a set of goals specific to each business unit and  
               
               
                 Criteria: 
                 develops a series of measures in both financial and non-  
               
               
                   
                 financial areas  
               
               
                   
                 Involve and integrate individuals from across the organization  
               
               
                   
                 when developing plans linked to corporate strategy  
               
               
                   
                 Deviations from the financial plan are resolved before  
               
               
                   
                 quarterly reviews and the quarterly reviews themselves focus  
               
               
                   
                 on whether the company is achieving its near-term  
               
               
                   
                 objectives, whether its long term objectives are going to be  
               
               
                   
                 realized.  
               
               
                   
                 A performance management system is instituted to capture  
               
               
                   
                 the value of assets as well as the ability of those assets to  
               
               
                   
                 produce wealth in the future  
               
               
                   
                 Manager performance is measured by the ability to take  
               
               
                   
                 advantage of competitive opportunities  
               
               
                   
                 The overriding goal of Product Offering is clear and linked to  
               
               
                   
                 product development spending and corporate strategy  
               
               
                   
                 Linkage of product planning and corporate strategy is clear-  
               
               
                   
                 adherence to plan  
               
               
                   
                 Segment specific sales target  
               
               
                   
                 Planning strategy/parameters driven by business strategy  
               
               
                   
                 and KPIs and periodically reviewed 
               
               
                   
               
             
          
         
       
     
       FIG. 3  illustrates that each capability within a platform (e.g., vision and strategy platform  102 ) may include additional capabilities (e.g.  302 - 306 ). In other words, a business capability may include multiple sub-capabilities. For example,  FIG. 3  shows the vision and strategy platform  102  with the external analysis key capability  110  and internal business planning capability  112  with additional capabilities.  FIG. 3  shows the external analysis capability  110  with an analyze externalities capability  302  that further includes an identify externalities capability  306  and a analyze industry markets capability  304  that further includes an analyze customers capability  310 . 
     The following Tables 3-33 provide an explanation of the capabilities and corresponding key assessment areas and performance capability criteria for each capability within the core functions platform  104 . For example, as shown in  FIG. 4 , the new product development capability  130  includes a new product development key assessment area  402  that includes new product development basic PCC  404 , new product development competitive PCC  406 , and new product development market leading PCC  408 . 
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 3 
               
               
                   
               
               
                 Product Development-New Product Development 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Long term based process to develop new products;  
               
               
                   
                 adjustment towards new innovation/technology trends and  
               
               
                   
                 market requirements  
               
               
                   
                 Includes all processes from product planning towards product  
               
               
                   
                 ramp-up and production launch (Product Planning, Concept  
               
               
                   
                 Development, Product and Process Design and Freeze,  
               
               
                   
                 Prototyping, Manufacturing Readiness, Ramp-up and Vehicle  
               
               
                   
                 Launch)  
               
               
                   
                 In addition an overall Program Management needs to be set-  
               
               
                   
                 up and executed  
               
             
          
           
               
                 New Product Development KAA  
               
             
          
           
               
                 Basic  
                 Ideas generated within functions  
               
               
                 Criteria: 
                 Ideas generated within geographical boundaries  
               
               
                   
                 Innovation combine Ideas, development and launch  
               
               
                   
                 processes with poor linkage and not managed as a single  
               
               
                   
                 process  
               
               
                   
                 Innovation is opportunistic, with no clear framework to link  
               
               
                   
                 innovation with business strategy  
               
               
                   
                 Ideas progressed with no criteria to guide product  
               
               
                   
                 development  
               
               
                   
                 Product performance requirements based on current  
               
               
                   
                 capabilities and practices  
               
               
                   
                 Development guidelines based on costs and timings  
               
               
                   
                 Unclear allocation of resource and priorities, led by most  
               
               
                   
                 dominant function  
               
               
                   
                 Project team poorly formed, little ownership of project  
               
               
                   
                 Project proceeds over long timescale, including time “on hold”  
               
               
                   
                 Little post launch effort unless major problems emerge  
               
               
                 Competitive 
                 Continuous process with feedback from business to product  
               
               
                 Criteria: 
                 development activity  
               
               
                   
                 Ideas generated using internal cross-functional teams  
               
               
                   
                 Ideas generated across geographical boundaries  
               
               
                   
                 Innovation combines Ideas and Development and Research,  
               
               
                   
                 with good liaison and discussion of strategy/priorities, but not  
               
               
                   
                 managed as a single process  
               
               
                   
                 Agreed innovation program with clear due dates  
               
               
                   
                 Ideas progressed to product development using estimated  
               
               
                   
                 criteria  
               
               
                   
                 Product performance requirements based on planned  
               
               
                   
                 capabilities  
               
               
                   
                 Development guidelines based on business targets  
               
               
                   
                 Cross-functional contribution of resource, directed at  
               
               
                   
                 prioritized projects  
               
               
                   
                 Project team formed early, with clear leadership and  
               
               
                   
                 ownership of project  
               
               
                   
                 Project team puts project “on hold” until barriers  
               
               
                   
                 removed/resolved  
               
               
                   
                 Post launch review to assess launch success  
               
               
                 Market  
                 Well developed strategic process for progressing new  
               
               
                 Leading  
                 products in context of overall business goals  
               
               
                 Criteria: 
                 A high volume of ideas from multi-functional internal and  
               
               
                   
                 external teams  
               
               
                   
                 Global intelligence networks used and overseas markets  
               
               
                   
                 systematically scanned for new ideas  
               
               
                   
                 Innovation viewed as a single process, managed with clear  
               
               
                   
                 parameters (e.g. innovation, cost, success rate, time to  
               
               
                   
                 market)  
               
               
                   
                 Established innovation “funnel” with clear framework for  
               
               
                   
                 prioritizing innovation efforts  
               
               
                   
                 Preparing for manufacturing readiness much earlier-even  
               
               
                   
                 prior to concept development  
               
               
                   
                 Business targets set with integrated innovation goals linked to  
               
               
                   
                 shareholder value measures  
               
               
                   
                 Innovation project team formed and remains in place and  
               
               
                   
                 accountable beyond each launch  
               
               
                   
                 Project coordinated through various STOP-GO decision  
               
               
                   
                 gates; nothing put “on hold” 
               
               
                   
                 Real-time post launch review, with adjustments to plan in light  
               
               
                   
                 of learning, competitor reaction and economics  
               
               
                   
                 Involvement of high level management through a production  
               
               
                   
                 innovation and development committee  
               
               
                   
                 Early engagement of program chief engineer 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 4 
               
               
                   
               
               
                 Product Development-Engineering 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 After the set-up of overall product requirements this process  
               
               
                   
                 is needed to specify the product design - including:  
               
               
                   
                 Powertrain Design/Chassis Design/Electronic Design/ 
               
               
                   
                 Interior and Exterior Design  
               
               
                   
                 The high number of engineering changes requires performing  
               
               
                   
                 multiple tasks that involve different internal departments (e.g.,  
               
               
                   
                 design engineering, process engineering, plant engineering,  
               
               
                   
                 and logistics) as well as suppliers and the client.  
               
             
          
           
               
                 Engineering KAA  
               
             
          
           
               
                 Basic  
                 Most product development carried out in-house  
               
               
                 Criteria: 
                 “Over-the-wall engineering”: results of a functional area  
               
               
                   
                 passed along the organization  
               
               
                   
                 Limited use of design and development tools including CAD/ 
               
               
                   
                 CAM, and analysis.  
               
               
                   
                 Review process is unstructured during development  
               
               
                   
                 Product development tasks carried out in series  
               
               
                   
                 Minimal product details recorded during development  
               
               
                   
                 Product designed with no reference to existing product base  
               
               
                   
                 or availability of components  
               
               
                   
                 Assessment by internal personnel only  
               
               
                 Competitive 
                 Engineer&#39;s Portal with access to the project planning  
               
               
                 Criteria: 
                 information and documentation, search and visualization of  
               
               
                   
                 the product, its structure and change processes  
               
               
                   
                 Include customers and suppliers in product development  
               
               
                   
                 People collaborate on design process decisions but aware of  
               
               
                   
                 their own responsibilities  
               
               
                   
                 Moderate use of design development tools; product and  
               
               
                   
                 process definitions created and tested electronically and with  
               
               
                   
                 several iterations.  
               
               
                   
                 Cross-functional teams to minimize and focus review process  
               
               
                   
                 Development tasks carried out concurrently  
               
               
                   
                 Product designed to use freely available components  
               
               
                   
                 Fast cycle iterative consumer research and market pilots  
               
               
                 Market  
                 Global management of configuration via an inter company/ 
               
               
                 Leading  
                 cross-functional change process enabling global visibility of  
               
               
                 Criteria: 
                 the impact caused by changes  
               
               
                   
                 Simultaneous Engineering  
               
               
                   
                 Use of visualization technology to generate digital mock-ups  
               
               
                   
                 from different native formats that can be used in virtual  
               
               
                   
                 design meetings  
               
               
                   
                 Rotates engineers between vehicle design and  
               
               
                   
                 manufacturing process design to ensure “designs for  
               
               
                   
                 manufacturing”; Concurrent Engineering  
               
               
                   
                 Use integration product teams to define system architecture  
               
               
                   
                 and drive integration between sub-assembly/component  
               
               
                   
                 teams  
               
               
                   
                 Incorporate customers into the design team and Quality  
               
               
                   
                 function deployment  
               
               
                   
                 Collaborate with external sources to design and build key  
               
               
                   
                 product components, wherein Suppliers as strategic partners  
               
               
                   
                 deeply incorporated into development process  
               
               
                   
                 Measure quality of raw material, process performance,  
               
               
                   
                 market prices and transportation costs to take decisions on  
               
               
                   
                 the purchasing of elementary products  
               
               
                   
                 Monitor product cost during development to adapt target cost  
               
               
                   
                 assuring future profitability is achievable  
               
               
                   
                 Global Engineering Footprint 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 5 
               
               
                   
               
               
                 Product Development - Product Lifecycle Management 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Business process and technology architecture for 
               
               
                   
                 capturing and maintaining product information across  
               
               
                   
                 the entire life cycle, thereby helping companies  
               
               
                   
                 increase development speed, improve customer  
               
               
                   
                 satisfaction, optimize operations and create new 
               
               
                   
                 revenue 
               
               
                   
                 PLM - capability is split into two main processes: 
               
               
                   
                 Management of product and process structure 
               
               
                   
                 Management of Changes 
               
             
          
           
               
                 Product Lifecycle Management KAA 
               
             
          
           
               
                 Basic  
                 Reactive changes to product, dependent on supply 
               
               
                 Criteria: 
                 issues/consumer complaints/sales/competitor activity 
               
               
                   
                 Ad hoc updates to product specifications 
               
               
                   
                 Monitor life cycle in terms of volume sales and  
               
               
                   
                 contribution 
               
               
                   
                 New product development knowledge not spread  
               
               
                   
                 across the organization 
               
               
                   
                 Research and Development systems not linked to  
               
               
                   
                 enterprise system 
               
               
                   
                 High Level Management not totally involved in the  
               
               
                   
                 company trough products innovation and development  
               
               
                   
                 committee 
               
               
                 Competitive 
                 Proactive changes to product, dependent on supply 
               
               
                 Criteria: 
                 information/market data feedback 
               
               
                   
                 Product information maintained in diverse systems 
               
               
                   
                 (e.g., PDM and Documental ERP). 
               
               
                   
                 Monitor life cycle in terms of brand equity and  
               
               
                   
                 category growth 
               
               
                   
                 Manual process of engineering changes. 
               
               
                   
                 Lack of integration between the process, the  
               
               
                   
                 documentation and the product information. 
               
               
                   
                 No common procedures to manage documentation  
               
               
                   
                 changes. 
               
               
                   
                 Project documentation is not synchronize with product 
               
               
                   
                 information. 
               
               
                   
                 Knowledge from previous experiences is not reused in  
               
               
                   
                 new projects 
               
               
                 Market Leading 
                 Improve change management by using a structured  
               
               
                 Criteria: 
                 and proactive process, dependent on supplier  
               
               
                   
                 partnership and consumer knowledge 
               
               
                   
                 Prioritize the introduction of new products or variants 
               
               
                   
                 depending on market conditions, competitor events 
               
               
                   
                 Integrated, singular source that enables users to  
               
               
                   
                 access product information in the appropriate context,  
               
               
                   
                 such as marketing, Research and development or  
               
               
                   
                 supply chain  
               
               
                   
                 Monitor life cycle in terms of consumer  
               
               
                   
                 loyalty, brand equity and lifetime value 
               
               
                   
                 Ability to accurately track the performance of a  
               
               
                   
                 company&#39;s complete product portfolio across the life  
               
               
                   
                 cycle of each product 
               
               
                   
                 Maintain the system as the single source of  
               
               
                   
                 information and integrate the change process in 
               
               
                   
                 the system. 
               
               
                   
                 Automate the process with collaborative workflows  
               
               
                   
                 and rules for versions and approval management. 
               
               
                   
                 Continuously review product portfolio profitability  
               
               
                   
                 considering cannibalization, overcosts necessary to  
               
               
                   
                 the introduction of a new product, promotions 
               
               
                   
                 efficiency 
               
               
                   
                 Effectively manage retirement of products to reduce 
               
               
                   
                 manufacturing, logistics and commercialization  
               
               
                   
                 costs 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 6 
               
               
                   
               
               
                 Sourcing and Procurement - Procurement Strategy 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Define procurement strategy (Vision, Mission, Core  
               
               
                   
                 Values) and Procurement Operating Model 
               
               
                   
                 Define and conduct category strategic planning 
               
               
                   
                 Identify and manage cross-company sourcing synergies 
               
               
                   
                 Define and Manage KPI&#39;s and conduct performance 
               
               
                   
                 management 
               
             
          
           
               
                 Procurement Strategy KAA 
               
             
          
           
               
                 Basic 
                 Sourcing decisions based on customer input and supplier 
               
               
                 Criteria: 
                 selection 
               
               
                   
                 Sourcing approach is not consistent with costs, risks and 
               
               
                   
                 business needs 
               
               
                   
                 Improvement projects linked to specific business unit goals; 
               
               
                   
                 Focus on improving procurement department metrics and 
               
               
                   
                 performance with emphasis on costs 
               
               
                   
                 Organizations are focused on the first cost for a given 
               
               
                   
                 product. Cost savings targets are based on desired 
               
               
                   
                 reductions on these first costs or unit prices 
               
               
                   
                 Procurement Ops organization do not understand the 
               
               
                   
                 business strategy; metrics and practices may actually  
               
               
                   
                 conflict with business strategy 
               
               
                   
                 Individual performance metrics do not exists 
               
               
                   
                 Unclear differentiation and role of procurement  
               
               
                   
                 operations staff 
               
               
                   
                 No leverage of existing contracts or agreements 
               
               
                 Competitive 
                 Sourcing decisions based on extended information  
               
               
                 Criteria: 
                 including customer knowledge and research 
               
               
                   
                 Sourcing approach is developed but inconsistently applied 
               
               
                   
                 Improvement efforts begun with focus on large cost  
               
               
                   
                 reduction opportunities; ERP system reports provide  
               
               
                   
                 benefits especially in improving processes to enhance 
               
               
                   
                 benefits 
               
               
                   
                 A TCO Model is built that takes into account the primary  
               
               
                   
                 cost drivers associated with material or service, including 
               
               
                   
                 purchasing, delivery, maintenance, reliability, and disposal 
               
               
                   
                 costs 
               
               
                   
                 Business strategy understood by Procurement and  
               
               
                   
                 Inventory Management personnel, but decisions are made 
               
               
                   
                 primarily on performance metrics which are functionally  
               
               
                   
                 driven 
               
               
                   
                 Some organizational understanding between Category 
               
               
                   
                 Management and procurement operations but confusion  
               
               
                   
                 still exists 
               
               
                   
                 Existing agreements or contracts leveraged 
               
               
                 Market  
                 Sourcing decisions based on category strategy developed 
               
               
                 Leading 
                 from detailed industry, supplier and category intelligence 
               
               
                 Criteria: 
                 and in-line with corporate strategy 
               
               
                   
                 Level of sourcing effort and approach is properly aligned  
               
               
                   
                 with costs, risks and business needs 
               
               
                   
                 Procurement Operations has an improvement model that is 
               
               
                   
                 continually researching best practices and applying them to 
               
               
                   
                 its business model 
               
               
                   
                 Buyers use TCO model and market knowledge to reduce 
               
               
                   
                 costs 
               
               
                   
                 Organization developed to support the business strategy  
               
               
                   
                 (e.g. fit for purpose) with procurement operations metrics 
               
               
                   
                 cascaded from the business metrics 
               
               
                   
                 Clearly communicated and understood differentiation/ 
               
               
                   
                 criteria of sourcing between Procurement Operations  
               
               
                   
                 and Category Management 
               
               
                   
                 Detailed process to consistently check for and leverage 
               
               
                   
                 existing global, Opco and regional agreements 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 7 
               
               
                   
               
               
                 Sourcing and Procurement - Strategic Sourcing and 
               
               
                 Category Management 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Manage and Conduct New Product Development Sourcing 
               
               
                   
                 Manage and Conduct Strategic Sourcing/Resourcing 
               
             
          
           
               
                 Strategic Sourcing and Category Management KAA 
               
             
          
           
               
                 Basic  
                 A database of suppliers for components provides input for 
               
               
                 Criteria: 
                 purchasing decisions; The buyer makes decisions based on 
               
               
                   
                 price and delivery on a case by case basis 
               
               
                   
                 Supplier selection criteria based on price and quality 
               
               
                   
                 The supplier relationships within each category are at a 
               
               
                   
                 transactional level - contracts may be in place, but little 
               
               
                   
                 thought is given to the desired relationship with the  
               
               
                   
                 category&#39;s supply base 
               
               
                   
                 Sourcing process executed manually. Variations in the 
               
               
                   
                 process exist across business units 
               
               
                   
                 No negotiation training available for procurement  
               
               
                   
                 personnel 
               
               
                   
                 “Should Cost” models not understood/known by the 
               
               
                   
                 organization 
               
               
                 Competitive 
                 Recognition of opportunity for integrated supplier 
               
               
                 Criteria: 
                 management and development of initial purchasing  
               
               
                   
                 strategy; Aware supplier base is too big and a rationalized  
               
               
                   
                 approach may yield significant benefits 
               
               
                   
                 Reduced number of suppliers selected by strategic Key 
               
               
                   
                 Performance Indicators (KPIs); activity based on actual 
               
               
                   
                 costing 
               
               
                   
                 Consideration is given to the degree to which the category 
               
               
                   
                 should be transaction-based or relationship-based 
               
               
                   
                 Parts of the sourcing process are supported by internal 
               
               
                   
                 applications, but are not linked together. Procurement 
               
               
                   
                 personnel rely on their knowledge and personal experience  
               
               
                   
                 to get the information they need 
               
               
                   
                 Fact based negotiation training available, according to 
               
               
                   
                 budget 
               
               
                   
                 “Should cost” models based negotiation inconsistently 
               
               
                   
                 applied 
               
               
                 Market  
                 Strategic sourcing program developed to support business 
               
               
                 Leading 
                 mission and objectives; “Pantry Approach” established for 
               
               
                 Criteria: 
                 product development and procurement needs 
               
               
                   
                 Reduced number of suppliers selected by strategic Key 
               
               
                   
                 Performance Indicators (KPIs) with emphasis placed on 
               
               
                   
                 supplier&#39;s willingness/ability to develop long-term strategic 
               
               
                   
                 relationship 
               
               
                   
                 Categories are assigned a general procurement strategy 
               
               
                   
                 based on the desired point on the transaction/relationship 
               
               
                   
                 continuum 
               
               
                   
                 eSourcing application promotes consistent use of sourcing 
               
               
                   
                 best practices across organization, improves collaboration 
               
               
                   
                 and decision-making on sourcing activities, and increases 
               
               
                   
                 the efficiency of the sourcing process 
               
               
                   
                 Fact-based negotiation training is required. 
               
               
                   
                 Negotiations are based on accurate “Should Cost” models 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 8 
               
               
                   
               
               
                 Sourcing and Procurement - Requisition to Pay 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Requisition to Approval 
               
               
                   
                 Approval to Order 
               
               
                   
                 Order to Receipt 
               
               
                   
                 Receipt to Payment 
               
             
          
           
               
                 Requisition to Pay KAA 
               
             
          
           
               
                 Basic 
                 Needs are procured as requests are made 
               
               
                 Criteria: 
                 No understanding of drivers of demand 
               
               
                   
                 Requisition to pay process is not integrated, little or no 
               
               
                   
                 process automation available 
               
               
                   
                 Orders are not automatically generated and require manual 
               
               
                   
                 order entry and monitoring 
               
               
                   
                 Strategy for procurement methods (e.g., P-Cards, 
               
               
                   
                 eProcurement, Automated PO/SO) is not defined or 
               
               
                   
                 sufficiently known by the organization 
               
               
                   
                 Limited knowledge of ecommerce; Buyers use supplier 
               
               
                   
                 website to collect information and specifications 
               
               
                   
                 Approval processes exist but are not always followed 
               
               
                 Competitive 
                 Needs are reviewed with end user to understand purchase 
               
               
                 Criteria: 
                 frequency 
               
               
                   
                 Some consideration to drivers of demand 
               
               
                   
                 Requisition to pay process is not fully integrated and 
               
               
                   
                 automated and requiring the use of multiple systems 
               
               
                   
                 Orders are manually entered into system but detailed 
               
               
                   
                 management reporting of reorders is available 
               
               
                   
                 Various procurement methods are defined and loosely tied 
               
               
                   
                 to spend/suppliers but not sufficiently understood by 
               
               
                   
                 the organization 
               
               
                   
                 Multiple procurement methods are used with the same 
               
               
                   
                 supplier 
               
               
                   
                 eProcurement software linked to ERP is being used to 
               
               
                   
                 streamline the transaction process 
               
               
                   
                 Approval processes and controls are in place but no 
               
               
                   
                 compliance monitoring 
               
               
                 Market  
                 Forecasts for materials and services are developed and 
               
               
                 Leading 
                 reviewed with end users to align organizational demand, 
               
               
                 Criteria: 
                 optimize frequency of purchases, and determine substitutes 
               
               
                   
                 RtP process is fully integrated and standardized 
               
               
                   
                 Processes are fully automated across all the spend base for 
               
               
                   
                 all spend segments (Direct, Indirect, Services, Capex) 
               
               
                   
                 Orders are automatically generated by system  
               
               
                   
                 replenishment rules (no maverick/tactical purchasing) 
               
               
                   
                 High percentage of spend is being procured through the 
               
               
                   
                 appropriate method. Channel is inclusive of P-Cards, 
               
               
                   
                 eProcurement, Automated PO, .etc and is understood by  
               
               
                   
                 the organization 
               
               
                   
                 Automatic replenishment with selected suppliers (utilizing 
               
               
                   
                 middleware systems to link supplier ERPs to Company 
               
               
                   
                 systems) 
               
               
                   
                 Formal compliance management process in place 
               
               
                   
                 Outsourcing basic RtP processes, e.g. payment and audit 
               
               
                   
                 functions to unlock Value 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 9 
               
               
                   
               
               
                 Sourcing and Procurement - Supplier Relationship Management 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Manage supplier relationship 
               
               
                   
                 Manage supplier performance (e.g. Quality) and  
               
               
                   
                 joint improvement projects 
               
               
                   
                 Manage contracts and supplier compliance 
               
               
                   
                 Manage supplier integration and development 
               
             
          
           
               
                 Supplier Relationship Management KAA 
               
             
          
           
               
                 Basic  
                 No segmentation of existing supply base 
               
               
                 Criteria: 
                 Performance is monitored based on selected terms of the 
               
               
                   
                 agreement (e.g., price) 
               
               
                   
                 Buyer keeps track of some suppliers&#39; performance; No 
               
               
                   
                 consolidated performance metrics 
               
               
                   
                 No formal or scheduled feedback takes place with  
               
               
                   
                 suppliers. Supplier is contacted only when a problem  
               
               
                   
                 occurs. 
               
               
                   
                 No feedback is captured or utilized to support category 
               
               
                   
                 management 
               
               
                   
                 No central, single location for contracts storage. 
               
               
                   
                 Contracts are stored in hard copy 
               
               
                 Competitive 
                 Importance of key suppliers is recognized and reflected 
               
               
                 Criteria: 
                 appropriately 
               
               
                   
                 KPIs are linked to business unit objectives with focus on 
               
               
                   
                 select areas such as delivery quality, material/service order 
               
               
                   
                 completion, order fulfillment, and timeliness 
               
               
                   
                 Supplier Performance tracking strategy is in place 
               
               
                   
                 Specified feedback is shared with individual suppliers. 
               
               
                   
                 Feedback is tied directly to business goals 
               
               
                   
                 Contracts are stored centrally and electronically imaged but 
               
               
                   
                 no capability to report against key fields on contracts such 
               
               
                   
                 as expiration dates 
               
               
                 Market  
                 Suppliers are grouped into three different 
               
               
                 Leading 
                 segments: key, potential, and transactional. Goals,  
               
               
                 Criteria: 
                 work and management processes are defined accordingly 
               
               
                   
                 Suppliers are measured on all KPIs required to ensure the 
               
               
                   
                 objectives are met including delivery accuracy, quality 
               
               
                   
                 monitoring, compliance with other contract terms,  
               
               
                   
                 innovation, flexibility, and problem responsiveness. 
               
               
                   
                 Automated tracking of Supplier Performance and  
               
               
                   
                 Compliance and communicated to supplier (e.g., up to  
               
               
                   
                 supplier real time access to KPIs); Continuous  
               
               
                   
                 improvement programs developed with selected suppliers 
               
               
                   
                 Supplier feedback is provided to support category 
               
               
                   
                 management 
               
               
                   
                 Single contracts database and system to provide visibility  
               
               
                   
                 and aid management of contracts. 
               
               
                   
                 Electronic repository includes pricing, terms and  
               
               
                   
                 conditions, insurance certificates and allows for 
               
               
                   
                 maintenance and reporting against contract expiration dates 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 10 
               
               
                   
               
               
                 Production and Logistics - Production 
               
               
                 Forecasting, Planning and Scheduling 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Define and agree production plan 
               
               
                   
                 Plan material requirement and develop supplier  
               
               
                   
                 collaboration 
               
               
                   
                 Plan Capacity 
               
               
                   
                 Fix production schedule 
               
             
          
           
               
                 Production Forecasting, Planning and Scheduling KAA 
               
             
          
           
               
                 Basic  
                 Manual planning in monthly time periods with no  
               
               
                 Criteria: 
                 simulation capability 
               
               
                   
                 Planning process is reactive due to limited information 
               
               
                   
                 and visibility of future demand 
               
               
                   
                 Batch production reporting 
               
               
                   
                 Manual handling of production orders 
               
               
                   
                 Systems not integrated across multiple-plant environments 
               
               
                   
                 Raw materials purchasing based on competitive bids versus 
               
               
                   
                 relationships 
               
               
                   
                 Little or no advanced technology used to interface with 
               
               
                   
                 suppliers or in materials planning 
               
               
                   
                 Detailed operations scheduling is labor-intensive and 
               
               
                   
                 inflexible; unit operation sequencing is typically fixed or  
               
               
                   
                 not optimized; production operations typically focus on  
               
               
                   
                 freezing schedules for several weeks 
               
               
                   
                 Downstream fulfillment constraints (warehouse, shipping, 
               
               
                   
                 etc) are not considered 
               
               
                   
                 Production Scheduling is not linked with the Order delivery 
               
               
                   
                 date calculation (ATP) 
               
               
                 Competitive 
                 Allocations modified daily to distribute across orders and 
               
               
                 Criteria: 
                 forecasted demand 
               
               
                   
                 Planning is done for multiple time horizons with varying 
               
               
                   
                 time buckets and product levels 
               
               
                   
                 Primarily driven by demand-based (pull) scheduling 
               
               
                   
                 techniques 
               
               
                   
                 Finite capacity planning/scheduling front-end tools 
               
               
                   
                 Key suppliers are incorporated into planning process, 
               
               
                   
                 forecast shared - JIT 
               
               
                   
                 Supplier-managed purchased inventories, EDI for purchase 
               
               
                   
                 orders 
               
               
                   
                 MRP tools used to plan 3 to 6 month time horizons 
               
               
                   
                 Operations scheduling is comprised of unit operation 
               
               
                   
                 sequencing and variable process routing, based on order 
               
               
                   
                 requirements; scheduling changes can be dynamically made 
               
               
                   
                 but still typically manually executed 
               
               
                   
                 Basic fulfillment constraints are considered (e.g., ware- 
               
               
                   
                 house schedule) 
               
               
                   
                 Aggregate Production Scheduling input is provided 
               
               
                   
                 periodically to Order delivery date calculation 
               
               
                 Market  
                 Simultaneous allocation and planning optimization of 
               
               
                 Leading 
                 capacity, distribution and materials 
               
               
                 Criteria: 
                 Integrated systems for all stages of production linked to 
               
               
                   
                 inventory and materials planning 
               
               
                   
                 Production schedules integrated with supplier to support  
               
               
                   
                 JIT-JIS sourcing 
               
               
                   
                 Segmented and optimized supplier relationships over 
               
               
                   
                 product lifecycle 
               
               
                   
                 EDI for purchase orders, manifest, invoice, shipping notice - 
               
               
                   
                 “paperless transactions” 
               
               
                   
                 Operations scheduling is real-time, supported by simulation 
               
               
                   
                 capabilities; system support provides recommendations on 
               
               
                   
                 optimized scheduling with user input; changes are 
               
               
                   
                 automatically executed 
               
               
                   
                 Fulfillment constraints are factored into optimization (e.g., 
               
               
                   
                 truck arrival time, and warehouse storage locations) 
               
               
                   
                 Near real-time Production Schedules are electronically 
               
               
                   
                 linked with Order delivery date calculation with the ability  
               
               
                   
                 to allocate capacity to a customer 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 11 
               
               
                   
               
               
                 Production and Logistics - Inbound Logistics 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Plan, schedule and manage inbound transportation and  
               
               
                   
                 track receipts 
               
               
                   
                 Manage shipments and Just In Time 
               
               
                   
                 Manage and confirm inbound material quality 
               
               
                   
                 Manage and optimize inbound Inventory and Logistics 
               
             
          
           
               
                 Inbound Logistics KAA 
               
             
          
           
               
                 Basic  
                 Responsibility and authority not clearly defined 
               
               
                 Criteria: 
                 Developed based on carriers&#39; needs 
               
               
                   
                 Limited communications with suppliers/carriers for in- 
               
               
                   
                 transit status (updates via phone and e-mail) 
               
               
                   
                 First come-first served 
               
               
                   
                 Inconsistent materials issuing process, filling counter 
               
               
                   
                 requests, and paper forms 
               
               
                   
                 Trucks arrive randomly at the facilities for both inbound 
               
               
                   
                 and outbound movements 
               
               
                   
                 Manual paper based receiving; key-in of inbound receipts 
               
               
                   
                 from receiving 
               
               
                   
                 Manual and paper-based delivery confirmation - prone to 
               
               
                   
                 errors and misplacement 
               
               
                   
                 Inspection deferred until installation or usage 
               
               
                 Competitive 
                 Responsibility beginning to be defined, mix of corporate  
               
               
                 Criteria: 
                 and local level involvement 
               
               
                   
                 Sourcing requirements developed based on business unit 
               
               
                   
                 requirements with emphasis on first cost 
               
               
                   
                 Regular status reporting with suppliers/carriers for  
               
               
                   
                 in-transit status 
               
               
                   
                 Issuing based on informal priority list. 
               
               
                   
                 Consistently used process for material issuing with  
               
               
                   
                 electronic forms linked to the ERP 
               
               
                   
                 Time windows are established for inbound and outbound 
               
               
                   
                 movements 
               
               
                   
                 Advance notification of packing slip. Inbound shipments 
               
               
                   
                 are located in item number sequence 
               
               
                   
                 Field uses standardized tools and manual processes to 
               
               
                   
                 manage receipts in the field. Receipt is matched against the 
               
               
                   
                 PO 
               
               
                   
                 Critical items are inspected prior to shipping with defined 
               
               
                   
                 tolerances. Non-critical items are tested via random 
               
               
                   
                 sampling 
               
               
                 Market  
                 Clearly defined roles and responsibilities for managing 
               
               
                 Leading 
                 logistics 
               
               
                 Criteria: 
                 Comprehensive contracts with SLA developed to meet 
               
               
                   
                 business unit requirements 
               
               
                   
                 Coordinated process planning at an enterprise level that 
               
               
                   
                 manages the process not the transaction 
               
               
                   
                 Implement stable schedule as early as possible to optimize 
               
               
                   
                 routing and trailer cube utilization 
               
               
                   
                 Dynamic design of network to drive modal optimization 
               
               
                   
                 (ERP integrated) 
               
               
                   
                 Scheduling is automated and delivery windows are  
               
               
                   
                 scheduled to the half hour 
               
               
                   
                 Advanced Shipment Notification allows for pre-receipt of 
               
               
                   
                 items 
               
               
                   
                 Automated receiving and tracking capability (e.g., bar  
               
               
                   
                 coding, use of scanners, global positioning system, and  
               
               
                   
                 RFID) 
               
               
                   
                 Critical items are inspected through a formal QA process 
               
               
                   
                 that includes the supplier. Items are inspected throughout 
               
               
                   
                 the manufacturing process 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 12 
               
               
                   
               
               
                 Production and Logistics - Manufacturing and Assembly (1/2) 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Define and Agree Detailed Production Scheduling and 
               
               
                   
                 Sequencing 
               
               
                   
                 Manage Material, Manpower and Services 
               
               
                   
                 Manage Manufacturing, Assembly and Testing Vehicles 
               
               
                   
                 Manage Maintenance Operation 
               
             
          
           
               
                 Manufacturing and Assembly (1/2) KAA 
               
             
          
           
               
                 Basic  
                 Local manual SPC via spreadsheets. Batch production 
               
               
                 Criteria: 
                 reporting 
               
               
                   
                 There is a manufacture to stock policy with relatively high 
               
               
                   
                 stock levels along the supply chain for stock-out avoidance; 
               
               
                   
                 Inventory levels are monitored quarterly or monthly 
               
               
                   
                 Little segmentation of demand, service levels not well  
               
               
                   
                 defined 
               
               
                   
                 Schedule is produced without reference to labour and 
               
               
                   
                 equipment availability 
               
               
                   
                 Specialized, fixed workforce; “Lip-service” investment in 
               
               
                   
                 training and continuous improvement methods 
               
               
                   
                 Manufacturing process is geared towards long production 
               
               
                   
                 runs/few changeovers, and characterized by stockpiling to 
               
               
                   
                 cover forecast errors 
               
               
                 Competitive 
                 Sensor-based process monitoring, automated SPC. Plant- 
               
               
                 Criteria: 
                 wide production data integration 
               
               
                   
                 There is a manufacture to demand policy, with stock  
               
               
                   
                 limited to contingency levels; 
               
               
                   
                 Inventory levels are monitored weekly or daily 
               
               
                   
                 Customers segmented by service level requirements, but 
               
               
                   
                 costs, measures not determined 
               
               
                   
                 The schedule integrates both labour and equipment 
               
               
                   
                 Flexible workforce aligned with workload; self directed  
               
               
                   
                 teams aligned with incentives and training to drive 
               
               
                   
                 improvement  
               
               
                   
                 ABC categorization of products recognizing 
               
               
                   
                 common supply chain characteristics, and application of  
               
               
                   
                 a different production philosophy to each group 
               
               
                 Market 
                 SPC integrated with distributed PCS. Production data 
               
               
                 Leading 
                 visibility, control integrated with MES 
               
               
                 Criteria: 
                 Joint manufacturer/customer policy for inventory with one 
               
               
                   
                 days stock and JIT manufacturing; quick response centers 
               
               
                   
                 for key customers and a manufacture for postponement  
               
               
                   
                 policy; Inventory is managed in real time and quantity 
               
               
                   
                 and location is known at all times 
               
               
                   
                 Direct shipments account for a major portion of sales 
               
               
                   
                 reflecting continuous replenishment and vendor managed 
               
               
                   
                 inventory agreements 
               
               
                   
                 Processes and measures developed to balance capacity 
               
               
                   
                 utilization and working capital with cost-to-serve 
               
               
                   
                 Electronic Kanban (Internal and external) and projected 
               
               
                   
                 pull system 
               
               
                   
                 Multi-skilled and self-directed work teams 
               
               
                   
                 Highly flexible and efficient manufacturing process geared 
               
               
                   
                 towards rapid set-up changeovers, short frequent  
               
               
                   
                 production runs, product “pulled” through the supply chain 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 13 
               
               
                   
               
               
                 Production and Logistics - Manufacturing and Assembly (2/2) 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Define and Agree Detailed Production Scheduling and 
               
               
                   
                 Sequencing 
               
               
                   
                 Manage Material, Manpower and Services 
               
               
                   
                 Manage Manufacturing, Assembly and Testing Vehicles 
               
               
                   
                 Manage Maintenance Operation 
               
             
          
           
               
                 Manufacturing and Assembly (2/2) KAA 
               
             
          
           
               
                 Basic  
                 Operating standards set once a year as part of budget 
               
               
                 Criteria: 
                 process 
               
               
                   
                 Statistical Quality Control off-line 
               
               
                   
                 Schedules for maintenance efforts managed at the field  
               
               
                   
                 office level, utilizing local application support 
               
               
                   
                 Documentation managed in informal libraries, not often  
               
               
                   
                 kept current with changes. Databases for service history 
               
               
                   
                 maintained but not routinely analyzed for trends 
               
               
                   
                 Little predictive maintenance technology installed 
               
               
                 Competitive 
                 Operating standards revised quarterly 
               
               
                 Criteria: 
                 On-line process and product quality control and  
               
               
                   
                 certification and costs of quality measures used 
               
               
                   
                 Preventive Maintenance programs treated as a priority,  
               
               
                   
                 with database-driven tracking tools and paper logs 
               
               
                   
                 Formal libraries of OEM procedures maintained in field  
               
               
                   
                 office and kept current. Service and failure database utilized 
               
               
                   
                 to produce performance reports. 
               
               
                   
                 Predictive maintenance technology exists at some regional/ 
               
               
                   
                 site levels and technical support utilized in the problem 
               
               
                   
                 isolation process 
               
               
                 Market  
                 Operating standards revised on a “need to do” basis 
               
               
                 Leading 
                 Quality is everyone&#39;s responsibility 
               
               
                 Criteria: 
                 Formal preventive maintenance programs are supported  
               
               
                   
                 with committed and specialized applications, integrated  
               
               
                   
                 with other service mgt. applications 
               
               
                   
                 Preventive scheduled activities electronically managed to 
               
               
                   
                 monitor solutions and advice on required services and 
               
               
                   
                 upgrades. Failure trends identified through service history. 
               
               
                   
                 Predict failure by statistical analysis of historical service 
               
               
                   
                 and failure information. 
               
               
                   
                 Monitors and sensors predict potential failures on critical 
               
               
                   
                 equipment and automatically generated service requests 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 14 
               
               
                   
               
               
                 Production and Logistics - Outbound Logistics 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Plan, Schedule and Manage Outbound Transportation 
               
               
                   
                 Manage Shipping 
               
               
                   
                 Manage and Optimize Outbound Inventory and Logistics 
               
             
          
           
               
                 Outbound Logistics KAA 
               
             
          
           
               
                 Basic  
                 Large number of carriers; developed based on carriers&#39; 
               
               
                 Criteria: 
                 needs; paper based process 
               
               
                   
                 Rates based on cost, limited requirements analysis and 
               
               
                   
                 traditional transaction relationship with carriers 
               
               
                   
                 React to customer orders in short time horizon. Manual 
               
               
                   
                 sorting of vehicle load 
               
               
                   
                 Continuous move opportunities are not considered when 
               
               
                   
                 planning shipments; Inbound not considered 
               
               
                   
                 Routes seldom reviewed on an ongoing basis 
               
               
                   
                 Manual customer schedules based on “intuitive” judgment 
               
               
                   
                 Shipment plan is based on the next transaction only; 
               
               
                   
                 schedules reviewed for “crisis” times and changed to  
               
               
                   
                 reflect short-term fluctuations 
               
               
                   
                 Limited communication with carriers for in-transit status  
               
               
                   
                 (e.g., updates via phone and e-mail) 
               
               
                   
                 Manual routing and limited tracking mechanisms in place  
               
               
                   
                 to follow progress of international shipments 
               
               
                   
                 Financial/operating cost responsibility not clearly defined; 
               
               
                   
                 monitor aggregate costs of the carrier including claims 
               
               
                   
                 No defined quality process; carriers do not participate in 
               
               
                   
                 quality driven initiatives 
               
               
                 Competitive 
                 Some carrier rationalization, introduction of core carrier 
               
               
                 Criteria: 
                 programs, standardized on a few contracts 
               
               
                   
                 Rates based on service and cost, understanding of past 
               
               
                   
                 volumes and future requirements. Vehicle loads 
               
               
                   
                 automatically generated from product/pallet information 
               
               
                   
                 Beginning to work with customers to develop planning 
               
               
                   
                 horizons 
               
               
                   
                 Some coordination between inbound and outbound loads to  
               
               
                   
                 a facility 
               
               
                   
                 Manual effort but guided by established parameters; 
               
               
                   
                 rudimentary transportation/optimization systems 
               
               
                   
                 Longer planning horizons being implemented; planning, 
               
               
                   
                 control, and execution are decentralized and executed by 
               
               
                   
                 empowered individuals 
               
               
                   
                 Regular status reporting with carriers for in-transit status 
               
               
                   
                 EDI transmission of delivery schedule and Broker 
               
               
                   
                 consolidation to offer system-wide shipment view 
               
               
                   
                 Financial/Operating cost responsibility defined; 
               
               
                   
                 identify and monitor costs by lane and mode including 
               
               
                   
                 insurance claims, damages by products and capturing 
               
               
                   
                 customer and product cost data 
               
               
                   
                 Carriers participate in some phases of the quality programs 
               
               
                 Market  
                 Minimum number of core carriers to meet business needs; 
               
               
                 Leading 
                 develop custom contracts designed to simplify  
               
               
                 Criteria: 
                 requirements 
               
               
                   
                 Strategic transportation service procurement, based on core 
               
               
                   
                 carrier concept, focused on measuring service performance, 
               
               
                   
                 costs, capacity, available value added services, leveraging 
               
               
                   
                 bid analysis tools. Loads include maximizing vehicle 
               
               
                   
                 utilization 
               
               
                   
                 Proactively work with customers to develop mutually 
               
               
                   
                 beneficial planning horizons 
               
               
                   
                 Globally striving to leverage equipment for continuous  
               
               
                   
                 moves across the sector using available technology 
               
               
                   
                 Computer-aided simulation of different scenarios to 
               
               
                   
                 determine impact on fleet and customer service.  
               
               
                   
                 Coordinated process planning at an enterprise level that  
               
               
                   
                 manages the process not the transaction. Partnering with 
               
               
                   
                 customers/suppliers to reduce costs and improve service - 
               
               
                   
                 “win-win” 
               
               
                   
                 Network mgt tool used to establish parameters, EDI or web 
               
               
                   
                 links to share real time information on requirements and 
               
               
                   
                 capacities. Network optimized to meet long-term plans 
               
               
                   
                 Centralized and automated rule-based, dynamic routing  
               
               
                   
                 and scheduling and International shipments rates and  
               
               
                   
                 tracking are aided by use of 3rd party real time services 
               
               
                   
                 Financial/Operating cost authority given to people with  
               
               
                   
                 responsibility; Identify and monitor costs to both  
               
               
                   
                 customers and products, including carrier costs, claims,  
               
               
                   
                 delays, storage and handling 
               
               
                   
                 Fully development TQM process developed into 
               
               
                   
                 transportation 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 15 
               
               
                   
               
               
                 Marketing and Sales - Brand Management 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Increase the product perceived value to the customer  
               
               
                   
                 and thereby increase brand franchise and brand equity 
               
               
                   
                 Brand Management capability is split into two main 
               
               
                   
                 processes: 
               
               
                   
                 Management of brand positioning 
               
               
                   
                 Management of brand portfolio 
               
             
          
           
               
                 Brand Management KAA 
               
             
          
           
               
                 Basic Criteria: 
                 No brand definition 
               
               
                   
                 No segmentation established 
               
               
                   
                 Limited customer segmentation: segmentation around 
               
               
                   
                 manufacturer&#39;s product lines, customers classified on the  
               
               
                   
                 size of their account 
               
               
                   
                 Customers importance based on current sales and  
               
               
                   
                 internal sales forecasts for the year ahead 
               
               
                   
                 Customer Segmentation Analysis based on product  
               
               
                   
                 purchase behavior; info used primarily for promotions  
               
               
                   
                 and targeting 
               
               
                   
                 Branding effort spread across the portfolio largely on  
               
               
                   
                 basis of last year 
               
               
                   
                 Marketing program based around communicating  
               
               
                   
                 intangible benefits 
               
               
                   
                 Leverage brand in same category with line extensions 
               
               
                   
                 Market Opportunity Assessment results not well  
               
               
                   
                 integrated with overall business planning 
               
               
                 Competitive 
                 Brand includes name and logo 
               
               
                 Criteria: 
                 Intuition-based segmentation 
               
               
                   
                 Customers divided into a few macro groups based  
               
               
                   
                 around financial criteria 
               
               
                   
                 Customers importance based on current sales, forecasts  
               
               
                   
                 for the next 3/5 years and a broad understanding of  
               
               
                   
                 customers competitive position in its own markets 
               
               
                   
                 Customer analysis calculates current customer  
               
               
                   
                 profitability across all product lines and brand portfolio 
               
               
                   
                 Strategic resource allocation, separation between brands 
               
               
                   
                 being milked for cash and power brands for future profit 
               
               
                   
                 Value proposition of the product covering wide range of 
               
               
                   
                 benefits underpins brand marketing program 
               
               
                   
                 Leverage brand into new categories with new product 
               
               
                   
                 introductions  
               
               
                   
                 Market Opportunity Assessment regularly performed  
               
               
                   
                 and results somewhat integrated with business planning 
               
               
                 Market Leading 
                 Brand includes total experience 
               
               
                 Criteria: 
                 Fact-based segmentation 
               
               
                   
                 Customers divided into several micro groups based on 
               
               
                   
                 customer needs and many financial and non-financial  
               
               
                   
                 criteria  
               
               
                   
                 Customers importance based on existing and potential  
               
               
                   
                 sales and profitability determined by a detailed  
               
               
                   
                 analysis of the customer industry and competitiveness 
               
               
                   
                 Segmentation analysis used as primary input for  
               
               
                   
                 developing/defining new products/service offerings and  
               
               
                   
                 for increasing brand equity 
               
               
                   
                 Focus on power brands that drive innovation and that  
               
               
                   
                 can be leveraged across categories 
               
               
                   
                 Definition of functional, psychological and sensory  
               
               
                   
                 value proposition for each brand as a basis for a  
               
               
                   
                 category marketing plan 
               
               
                   
                 Leverage brands into new markets 
               
               
                   
                 Ensuring that all functions deliver the same branded 
               
               
                   
                 experience, training all front-line people completely and 
               
               
                   
                 effectively, and reinforcing the brand promise  
               
               
                   
                 consistently across campaigns 
               
               
                   
                 Identification of sources of competitive advantage (e.g., 
               
               
                   
                 Porter Five Forces; SWOT Analysis); understanding  
               
               
                   
                 what services/products the company needs for its own  
               
               
                   
                 brand portfolio improvement 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 16 
               
               
                   
               
               
                 Marketing and Sales - Product and Service Marketing 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 High performance marketing has emerged as a key  
               
               
                   
                 value lever because marketing to consumers is more  
               
               
                   
                 critical, complicated, and costly than ever 
               
               
                   
                 To maintain growth and customer loyalty in a  
               
               
                   
                 competitive environment, leading companies are  
               
               
                   
                 recognizing the need to improve Service and Service  
               
               
                   
                 Parts Management capabilities. 
               
             
          
           
               
                 Product and Service Marketing KAA 
               
             
          
           
               
                 Basic Criteria: 
                 Product focused merchandizing - Focus on individual 
               
               
                   
                 products 
               
               
                   
                 Standard product range offered to customers 
               
               
                   
                 Expert on company products/brands and familiar with 
               
               
                   
                 company research 
               
               
                   
                 Portfolio reviewed annually based on volume and value 
               
               
                   
                 Lack of relationship between manufacturer&#39;s customer/ 
               
               
                   
                 consumer strategies 
               
               
                   
                 Manufacturer produces special packs for consumers.  
               
               
                   
                 Special packs over-produced 
               
               
                   
                 Blanket consumer promotion 
               
               
                   
                 Advertising spend spread across portfolio 
               
               
                   
                 Traditional 13-15% commission for the agency 
               
               
                   
                 Tactical promotions to boost short term sales and  
               
               
                   
                 customer margin 
               
               
                   
                 Little feedback and analysis of promotions 
               
               
                 Competitive 
                 Consumer targeted Marketing - Broad customer profiles  
               
               
                 Criteria: 
                 and targeted assortments 
               
               
                   
                 Standard product range with some ad hoc product range 
               
               
                   
                 tailoring to customer requirements 
               
               
                   
                 Expert on indication specific brand usage versus  
               
               
                   
                 consumer requirements 
               
               
                   
                 Product portfolio reviewed based on volume and profit  
               
               
                   
                 return on an ongoing basis 
               
               
                   
                 Tailored promotional activity 
               
               
                   
                 Target promotions with reduced complexity which  
               
               
                   
                 encourage brand switching. Multipacks unlikely to be  
               
               
                   
                 featured due to re-packing costs and huge volatility and  
               
               
                   
                 complexity  
               
               
                   
                 Blanket promotions tailored to accounts 
               
               
                   
                 Clear attempt at strategic resource allocation; separation 
               
               
                   
                 between growth brands and those that are being milked  
               
               
                   
                 for cash 
               
               
                   
                 Cost plus based fees with an incentive clause 
               
               
                   
                 Promotions to enhance penetration and usage rather  
               
               
                   
                 than volume 
               
               
                   
                 Promotion performances based on volume and allocated 
               
               
                   
                 costs 
               
               
                 Market Leading 
                 Consumer Centric Organization - Behaviour-based  
               
               
                 Criteria: 
                 customer insight driving all marketing, merchandising  
               
               
                   
                 and operational functions 
               
               
                   
                 Completely customized product selection offered to the 
               
               
                   
                 customers 
               
               
                   
                 Category experts, knowledgeable about key consumers, 
               
               
                   
                 product, category and cross-category trends and issues 
               
               
                   
                 Portfolio managed in relation to profit contribution to  
               
               
                   
                 company with category strategy linked to company 
               
               
                   
                 profitability and complexity management 
               
               
                   
                 Mutually agreed promotional strategy that benefits 
               
               
                   
                 supply chain and meets consumer needs 
               
               
                   
                 Manufacturer postpones finishing special packs until 
               
               
                   
                 as close as possible to actual order to avoid residual 
               
               
                   
                 stocks. Packs design to enabe them to be returned to 
               
               
                   
                 standard stock 
               
               
                   
                 Volumes allocated to accounts for a given timer period. 
               
               
                   
                 Outside of the agreed time span stock cleared or 
               
               
                   
                 re-allocated immediately 
               
               
                   
                 Performance based compensation 
               
               
                   
                 Post promotion evaluation and measurement against 
               
               
                   
                 original objectives conducted by person responsible for 
               
               
                   
                 actual activity 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 17 
               
               
                   
               
               
                 Marketing and Sales - Channel Integration and Management 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Channels are routes to market (direct/indirect) and  
               
               
                   
                 methods for interaction 
               
               
                   
                 Channel approaches vary based upon degree of  
               
               
                   
                 interaction and importance of the buyer to the seller 
               
               
                   
                 Interaction methods support various routes to market  
               
               
                   
                 and share customer data to provide seamless support 
               
               
                   
                 Channel Integration and Management capability  
               
               
                   
                 including: management of network strategy/sales  
               
               
                   
                 channels and network development 
               
               
                   
                 Automotive OEMs focused on: direct channels (OEM 
               
               
                   
                 experience worlds/internet); indirect channels (dealers, 
               
               
                   
                 wholesalers) 
               
             
          
           
               
                 Channel Integration and Management KAA 
               
             
          
           
               
                 Basic Criteria: 
                 Channel strategy - Operates through a single channel 
               
               
                   
                 Channel Synchronization - Not considered 
               
               
                   
                 Interaction Process Mgmt - Manual processes with  
               
               
                   
                 limited support documentation; inadequate systems  
               
               
                   
                 support and standardization 
               
               
                   
                 Brand and channel strategies largely separate 
               
               
                   
                 Focus on existing accounts to meet current demand 
               
               
                   
                 No channel analysis conducted 
               
               
                   
                 Small number of distribution channels 
               
               
                   
                 Introduction of new channels is on reactive basis  
               
               
                   
                 without evaluation of applicability to industry, brand  
               
               
                   
                 and customer segments 
               
               
                 Competitive 
                 Channel Strategy - Limited use of additional channels, 
               
               
                 Criteria: 
                 inconsistent treatment of customers across channels 
               
               
                   
                 Channel Synchronization - Integration not consistent or 
               
               
                   
                 automated 
               
               
                   
                 Interaction Process Mgmt - Closed loop business  
               
               
                   
                 processes in place; use of limited work flow mgmt tools  
               
               
                   
                 to support processes 
               
               
                   
                 Brand and channel strategies developed in parallel 
               
               
                   
                 Focus on maximizing existing channel volume via  
               
               
                   
                 existing and new accounts 
               
               
                   
                 Regularly evaluation of potential sales and delivery  
               
               
                   
                 channels  
               
               
                   
                 Variety of distribution channels 
               
               
                   
                 Emerging awareness of actual customer needs and 
               
               
                   
                 understanding of full operational costs 
               
               
                   
                 Channel strategies often based around “what  
               
               
                   
                 competitors are doing” 
               
               
                 Market Leading  
                 Channel strategy - Operates in multiple, integrated  
               
               
                 Criteria: 
                 channels  
               
               
                   
                 Channel Synchronization - Cross-channel 
               
               
                   
                 integration of systems, processes and logistics 
               
               
                   
                 Interaction Process Mgmt - Closed loop business  
               
               
                   
                 processes with customer experience focus in place:  
               
               
                   
                 nearly all processes standardized 
               
               
                   
                 Develop integrated channel and consumer brand  
               
               
                   
                 strategies with channel specific innovation 
               
               
                   
                 Focus on stimulating demand via new channel  
               
               
                   
                 development  
               
               
                   
                 Usage of channel maps - useful way to visualize how  
               
               
                   
                 each segment will be served 
               
               
                   
                 Integrated, multi-channel strategy based on analytical 
               
               
                   
                 insights, profitability and customer usage activity 
               
               
                   
                 Variety of distribution channels aligned to business  
               
               
                   
                 needs, personalized and focused on providing point-of- 
               
               
                   
                 need services  
               
               
                   
                 Channel conflict strategy matrix used to analyze forces 
               
               
                   
                 and opportunities for change within the industry by  
               
               
                   
                 each existing channels and to identify strategies for  
               
               
                   
                 shedding non-performing channels or adopting new 
               
               
                   
                 ones  
               
               
                   
                 Create partner to recruit and train the right partners 
               
               
                   
                 to provide higher margin and specialized services 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 18 
               
               
                   
               
               
                 Marketing and Sales - Product and Service Sales 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Forecast and Plan Sales 
               
               
                   
                 Manage Customer Prospects, Inquiries and Acquisition, 
               
               
                   
                 Connect Advertising and CRM 
               
               
                   
                 Manage Country Support and Sales Organization 
               
               
                   
                 Manage Orders (new vehicles) and Buy Back Programs 
               
               
                   
                 (used vehicles) 
               
             
          
           
               
                 Product and Service Sales KAA 
               
             
          
           
               
                 Basic Criteria: 
                 Customer input primarily through sales  
               
               
                   
                 organization/verbal feedback 
               
               
                   
                 Sales people responsible for developing the forecast and 
               
               
                   
                 rewarded on their ability to achieve forecast; forecast 
               
               
                   
                 accuracy not measured 
               
               
                   
                 Customer complaints logging for information. Often  
               
               
                   
                 separated from marketing 
               
               
                   
                 Order received by phone/fax; customer requirements 
               
               
                   
                 captured into a paper-based design 
               
               
                   
                 Orders allocation on a first come first served basis 
               
               
                   
                 Time between delivery and invoice &gt;5 days 
               
               
                   
                 Order tracking system: manual and inaccessible to 
               
               
                   
                 customers; backorders tracked manually 
               
               
                 Competitive 
                 Customer specific input to base forecasts and  
               
               
                 Criteria: 
                 aggregated to total company 
               
               
                   
                 A formal internal cross-functional team periodically  
               
               
                   
                 reviews/agrees forecasts and forecast accuracy at  
               
               
                   
                 product code level  
               
               
                   
                 24-hour helpline for services with “valued consumer” 
               
               
                   
                 priority linked to marketing 
               
               
                   
                 Orders received via EDI; order capture direct into  
               
               
                   
                 mainframe/personal computers via phone/fax (manual) 
               
               
                   
                 Orders allocation per customer importance/size 
               
               
                   
                 Time between delivery and invoice &lt;5 days 
               
               
                   
                 Order tracking system: automated and visible  
               
               
                   
                 throughout the organization but not to the customers;  
               
               
                   
                 some utilization of the Internet 
               
               
                 Market Leading 
                 Customer supplies forecast directly via EDI into  
               
               
                 Criteria: 
                 Forecasting System 
               
               
                   
                 Segment specific sales strategies, aligned with business  
               
               
                   
                 plan and objectives. 
               
               
                   
                 Total service culture with immediate on-line computer 
               
               
                   
                 generated response, ownership of the problem, empathy  
               
               
                   
                 with customers 
               
               
                   
                 Flexibility to move to vendor managed inventory  
               
               
                   
                 ordering (EPOS); order capture direct into  
               
               
                   
                 mainframe/personal computer via phone/fax  
               
               
                   
                 (automatic)/web  
               
               
                   
                 Orders allocation conducted on a plan replenishment  
               
               
                   
                 basis after consultation with customer 
               
               
                   
                 Time between delivery and invoice is the same day 
               
               
                   
                 Order tracking system: automated and real-time visible 
               
               
                   
                 throughout the organization and to customers; utilizing  
               
               
                   
                 the Internet 
               
               
                   
                 Tightly integrate performance management and  
               
               
                   
                 development/training to help proactively identify needs  
               
               
                   
                 and build capabilities. 
               
               
                   
                 Sales success managed and tracked electronically -  
               
               
                   
                 results tracked from the point of initial contact through  
               
               
                   
                 to the closed sale 
               
               
                   
                 Dedicated representatives assigned to premium  
               
               
                   
                 customers.  
               
               
                   
                 Ability to “bundle” different service offerings into 
               
               
                   
                 one customer-specific solution. 
               
               
                   
                 Off load non-value added activities (e.g., Order Entry)  
               
               
                   
                 to add time to selling activities - use online or 3rd party  
               
               
                   
                 models - differentiate by segment. 
               
               
                   
                 Sales force provided with customer insight information  
               
               
                   
                 to clearly understand which customers are the higher- 
               
               
                   
                 value customers. 
               
               
                   
                 Sales tools provide timely account/lead information, 
               
               
                   
                 automated pricing and configuration capabilities,  
               
               
                   
                 historical quote storage, and automatic proposal  
               
               
                   
                 generation 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 19 
               
               
                   
               
               
                 Marketing and Sales - Customer Relationship Management 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Build a customer-centric strategy, improving long.-term 
               
               
                   
                 growth and customer satisfaction 
               
               
                   
                 Manage strategy, operational processes and business 
               
               
                   
                 functions in order to retain customers and increase  
               
               
                   
                 customer loyalty and profitability 
               
               
                   
                 Manage Relationship with customers, including capture, 
               
               
                   
                 storage and analysis of customer information to meet 
               
               
                   
                 customer needs and match them with product offerings 
               
             
          
           
               
                 Customer Relationship Management KAA 
               
             
          
           
               
                 Basic Criteria: 
                 No systematic access to customers′ market data or  
               
               
                   
                 consumer profile data 
               
               
                   
                 Understanding of customer markets is based on sales 
               
               
                   
                 history/general macro economic measures 
               
               
                   
                 Collection of customer data on complaints and sales 
               
               
                   
                 Customer complaints logging for information. Often  
               
               
                   
                 separate from marketing 
               
               
                   
                 Legal approach to complaint resolution and complaints 
               
               
                   
                 usually disputed 
               
               
                   
                 Helpful staff but little access to information or  
               
               
                   
                 discretionary powers 
               
               
                   
                 No customers classification on the basis of volume and  
               
               
                   
                 gross margin profitability 
               
               
                   
                 No customer Pareto analysis 
               
               
                   
                 No segment specific strategies 
               
               
                 Competitive 
                 Broad understanding of customers′ category and  
               
               
                 Criteria: 
                 consumer data as basis for brand and account plans 
               
               
                   
                 Understanding of customer markets is based on 
               
               
                   
                 sophisticated knowledge developed in-house with little 
               
               
                   
                 customer input 
               
               
                   
                 Customer data on complaints/sales with access other  
               
               
                   
                 than by account used in decision making 
               
               
                   
                 24-hour helpline for services with “valued consumer”  
               
               
                   
                 priority linked to marketing 
               
               
                   
                 Complaints management system with reparations made  
               
               
                   
                 for valid complaints 
               
               
                   
                 Customer focus in all aspects of training 
               
               
                   
                 Product and customer Paretos often not analyzed  
               
               
                   
                 together 
               
               
                 Market Leading 
                 Customer data from third parties and alliances;  
               
               
                 Criteria: 
                 customer information used to derive knowledge about  
               
               
                   
                 market trends, patterns, and potential behavior; full  
               
               
                   
                 integration and maintenance within the data warehouse. 
               
               
                   
                 Customer segmentation is conducted regularly and  
               
               
                   
                 based on value drivers; these segments are managed to  
               
               
                   
                 maximize both the benefits to customers and long-term  
               
               
                   
                 profit potential  
               
               
                   
                 Detailed understanding of demand drivers is developed  
               
               
                   
                 with customers and implications of market conditions 
               
               
                   
                 are understood and incorporated into the planning  
               
               
                   
                 system 
               
               
                   
                 Extensive customer data including historical and  
               
               
                   
                 projected sales, complaints, images of all  
               
               
                   
                 correspondence, photo image of customer used at  
               
               
                   
                 strategic and operational level  
               
               
                   
                 Use of consumer complaints data and panels to feed 
               
               
                   
                 New Product Development 
               
               
                   
                 Total service culture with immediate on-line computer 
               
               
                   
                 generated response, ownership of the problem, empathy 
               
               
                   
                 with customers and “get back as promised” features 
               
               
                   
                 Ability to capture customer insights across interaction 
               
               
                   
                 mechanisms (phone, email, web); track relevant 
               
               
                   
                 information/behavior/metrics/interactions to create 
               
               
                   
                 a 360 degree view of customer (e.g. surveying  
               
               
                   
                 demographics, preferences, feedback, and electronic  
               
               
                   
                 channel data) to better understand/target customer  
               
               
                   
                 profiles  
               
               
                   
                 Ability to develop customer profiles to drive 
               
               
                   
                 differentiate product/solution offerings 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 20 
               
               
                   
               
               
                 After Sales - After Sales Parts 
               
               
                 Forecasting, Planning 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Estimate future sales 
               
               
                   
                 Manage inventory planning and replenishment 
               
               
                   
                 Define and plan distribution networks 
               
             
          
           
               
                 After Sales Parts Forecasting, Planning KAA 
               
             
          
           
               
                 Basic Criteria: 
                 No demand management strategy formulated; all  
               
               
                   
                 customers and products planned and managed equally 
               
               
                   
                 Forecast based on prior history and sales force input;  
               
               
                   
                 several forecasts developed by different groups (e.g.  
               
               
                   
                 finance, sales, manufacturing) - no common forecast  
               
               
                   
                 driving all functions  
               
               
                   
                 Sales planning driven by internal production capability 
               
               
                   
                 Scope of inventory visibility limited to central stocking 
               
               
                   
                 locations; replenishment control and management not  
               
               
                   
                 integrated throughout all network locations 
               
               
                   
                 No replenishment strategy developed - all parts  
               
               
                   
                 replenished using same techniques 
               
               
                   
                 Inventory levels based on min/max inventory targets 
               
               
                   
                 No channel analysis conducted 
               
               
                   
                 Small number of distribution channels 
               
               
                 Competitive 
                 Customer segment specific propositions and 
               
               
                 Criteria: 
                 strategies 
               
               
                   
                 Statistical forecasting tools; multi-echelon forecasting; 
               
               
                   
                 multiple views of same forecast available (e.g., number  
               
               
                   
                 of vehicles for production, and money for sales) and  
               
               
                   
                 single number forecasts used to drive different units -  
               
               
                   
                 one function responsible for forecasting for all functions 
               
               
                   
                 Sales planning driven primarily by internal production 
               
               
                   
                 capability, but also by some end customer requirements  
               
               
                   
                 and dealer sales data Scope of inventory visibility  
               
               
                   
                 encompasses all company-owned physical stocking  
               
               
                   
                 locations in the network; replenishment control and  
               
               
                   
                 management extended to all primary network locations 
               
               
                   
                 Customized replenishment methods developed to  
               
               
                   
                 optimize costs and services 
               
               
                   
                 Planning linked with overall logistics planning  
               
               
                   
                 processes, incorporating service level targets by product  
               
               
                   
                 category  
               
               
                   
                 Regularly evaluation of potential sales and  
               
               
                   
                 delivery channels  
               
               
                   
                 Variety of distribution channels 
               
               
                 Market Leading 
                 Extensive segmentation created; channel and customer 
               
               
                 Criteria: 
                 specific strategies developed to manage parts planning 
               
               
                   
                 Integration of real-time consumption data; collaborative 
               
               
                   
                 forecasting. Sales forecasting include integrated process  
               
               
                   
                 for customers, manufacturers and suppliers who share  
               
               
                   
                 info and databases; complex algorithms used in a fully  
               
               
                   
                 automated process, depending on characteristics of  
               
               
                   
                 product demand  
               
               
                   
                 Sales planning driven by end customer requirements,  
               
               
                   
                 dealer sales data and internal forecasts 
               
               
                   
                 Scope of inventory visibility includes all networks; 
               
               
                   
                 replenishment control and management extended to  
               
               
                   
                 internal and external locations, including suppliers and  
               
               
                   
                 dealers channel inventories; 
               
               
                   
                 Strategic parts replenishment processes: replenishment  
               
               
                   
                 re-optimization on demand changes 
               
               
                   
                 Inventory targets, policies and methods differentiated  
               
               
                   
                 for “service” needs 
               
               
                   
                 Integrated, multi-channel strategy based on analytical 
               
               
                   
                 insights, profitability and customer usage activity 
               
               
                   
                 Variety of distribution channels aligned to business  
               
               
                   
                 needs, personalized and focused on providing point-of- 
               
               
                   
                 need services 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 21 
               
               
                   
               
               
                 After Sales - After Sales Parts 
               
               
                 Product Design and Management 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Develop physical solutions to specific customer needs, 
               
               
                   
                 adopting new design principles and tools to better  
               
               
                   
                 integrate serviceability and reliability criteria into the  
               
               
                   
                 parts design process 
               
               
                   
                 Manage Product Data (Product Hierarchy/Catalogs/ 
               
               
                   
                 Documentation/Service Bulletins) 
               
             
          
           
               
                 After Sales Parts Product Design and Management KAA 
               
             
          
           
               
                 Basic Criteria: 
                 Product definition focused on customer requirements 
               
               
                   
                 Design feedback accepted from manufacturing and 
               
               
                   
                 purchasing through engineering change requests 
               
               
                   
                 No strategy or objective implemented for design for 
               
               
                   
                 serviceability 
               
               
                   
                 No or little design collaboration exists, integration  
               
               
                   
                 driven by informal and simplistic methods 
               
               
                   
                 No serviceability metrics developed or measured 
               
               
                   
                 Design tools not IT - enabled; limited 3-D CAD  
               
               
                   
                 capabilities  
               
               
                   
                 Design activities occur with little collaboration;  
               
               
                   
                 engineering personnel “publish” design to  
               
               
                   
                 other functional areas  
               
               
                   
                 No supplier collaboration; communication performed 
               
               
                   
                 through phone and emails 
               
               
                   
                 No Part System or single enterprise system for part(s) 
               
               
                   
                 No system or standalone software used by product  
               
               
                   
                 planning to manage product option catalog 
               
               
                 Competitive 
                 Formal business case development for prioritization of 
               
               
                 Criteria: 
                 customer requirements; Quality Function Deployment  
               
               
                   
                 (QFD) utilized to link requirements to specific design  
               
               
                   
                 features  
               
               
                   
                 Design for supply chain constraints, manufacturability,  
               
               
                   
                 serviceability 
               
               
                   
                 Goals and programs developed to enable design for 
               
               
                   
                 serviceability 
               
               
                   
                 Multi-step, time-phase design, engineering and testing 
               
               
                   
                 process used with specific “stage-gates” for  
               
               
                   
                 serviceability criteria 
               
               
                   
                 Serviceability metrics (e.g., Avg. Repair time) used in 
               
               
                   
                 technician/service performance reporting 
               
               
                   
                 Engineering design tools (e.g., CAD/CAE) used to  
               
               
                   
                 share design factors and product data 
               
               
                   
                 Design representatives from functional areas play key 
               
               
                   
                 approval roles in design process, with shared metrics  
               
               
                   
                 and milestones 
               
               
                   
                 Information shared with suppliers to develop  
               
               
                   
                 Collaborative Design 
               
               
                   
                 Part Mgt tool with simple classifications 
               
               
                   
                 Rule-based product catalog to manage option  
               
               
                   
                 interrelation integrated with CRM. Same options used  
               
               
                   
                 in product structure mgt application, but no integration 
               
               
                 Market Leading 
                 Creation of robust product and market entry strategy; 
               
               
                 Criteria: 
                 requirements analyzed across entire portfolio to ensure  
               
               
                   
                 that market niches needs will be met; product designs  
               
               
                   
                 consistent with service strategy 
               
               
                   
                 Design optimized for total lifecycle cost; engineering  
               
               
                   
                 changes controlled by PDM tool 
               
               
                   
                 Design for serviceability is leading value proposition to 
               
               
                   
                 customers and is used to enable field service force 
               
               
                   
                 Cross-business platform design teams use collaborative  
               
               
                   
                 work flows and tools to deliver integrated part design  
               
               
                   
                 concepts  
               
               
                   
                 Serviceability metrics are part of balanced scorecard 
               
               
                   
                 and used for design improvements and new design  
               
               
                   
                 concepts; continuous improvement programs developed 
               
               
                   
                 as part of a holistic strategic framework 
               
               
                   
                 Collaborative Product Commerce (CPC) application  
               
               
                   
                 online as primary vaulting, revision and control of  
               
               
                   
                 design data; design repositories for use across company;  
               
               
                   
                 3-D tools directly exchanging metadata (part attributes,  
               
               
                   
                 BOM) with PDM; ability for digital pre-assembly of  
               
               
                   
                 configurable products  
               
               
                   
                 Cross-business platform design teams form when 
               
               
                   
                 needed, share common metrics 
               
               
                   
                 Suppliers treated as extension of the organization;  
               
               
                   
                 product designs take into account specific supplier  
               
               
                   
                 capabilities  
               
               
                   
                 Part Mgt tool with full classification (e.g., fed directly 
               
               
                   
                 with attributes from CAD); integration to supplier  
               
               
                   
                 part catalogs  
               
               
                   
                 Constraint-based product catalog to manage option 
               
               
                   
                 interrelation. Integration with Research and  
               
               
                   
                 development product structure mgt tools  
               
               
                   
                 and CRM  
               
               
                   
                 Product Documents created and updated in the system 
               
               
                   
                 using the full range of PDM capabilities 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 22 
               
               
                   
               
               
                 After Sales - After Sales Parts 
               
               
                 Marketing and Sales 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Manage business growth and customer loyalty,  
               
               
                   
                 including marketing and sales strategy and product  
               
               
                   
                 offerings development, distribution channels  
               
               
                   
                 management, pricing development and setting 
               
             
          
           
               
                 After Sales Parts Marketing and Sales KAA 
               
             
          
           
               
                 Basic Criteria: 
                 Understanding of customers based on sales history and 
               
               
                   
                 general macro-economic measures 
               
               
                   
                 Customer needs translated into operational targets at the  
               
               
                   
                 last stage of the supply chain 
               
               
                   
                 Standard product range offered to customers; product 
               
               
                   
                 development driven by Research and development and  
               
               
                   
                 raw material improvement. 
               
               
                   
                 Small number of distribution channels 
               
               
                   
                 Brand and channel strategies largely separate; focus on 
               
               
                   
                 existing accounts to meet current demand 
               
               
                   
                 Historical volumes/pricing estimated; product costs 
               
               
                   
                 calculated from average costs 
               
               
                   
                 No strategic alliances with customers; the company  
               
               
                   
                 cannot adapt quickly to changes in the customer market  
               
               
                   
                 and has a low ability to exploit market information 
               
               
                   
                 Customer opinion obtained from informal and irregular  
               
               
                   
                 input; no access to external information 
               
               
                   
                 Customer Requests/Feedbacks stored as documents 
               
               
                 Competitive 
                 Understanding of customers based on sophisticated 
               
               
                 Criteria: 
                 knowledge development in-house with little customer  
               
               
                   
                 input  
               
               
                   
                 Customer needs translated into operational targets for 
               
               
                   
                 some units of the supply chain 
               
               
                   
                 Standard product range offered with some tailoring to 
               
               
                   
                 customer requirements; product development driven by 
               
               
                   
                 customers 
               
               
                   
                 Variety of distribution channels 
               
               
                   
                 Brand and channel strategies developed in parallel;  
               
               
                   
                 focus on maximizing sales via existing and new  
               
               
                   
                 accounts  
               
               
                   
                 Market research with customer panels; product costs  
               
               
                   
                 calculated from Activity Based Costing history 
               
               
                   
                 Some relationships developed with key clients; the  
               
               
                   
                 company is focused on information exchange and  
               
               
                   
                 overall performance optimization 
               
               
                   
                 Customer opinion obtained from regular periodic input  
               
               
                   
                 on manufacturers performance; external information  
               
               
                   
                 obtained in report format and manually incorporated  
               
               
                   
                 into plans and models 
               
               
                   
                 Customer Requests/Feedbacks stored as knowledge  
               
               
                   
                 linked to corresponding products, systems and parts 
               
               
                 Market Leading 
                 Detailed understanding of customers and drivers of  
               
               
                 Criteria: 
                 demand developed with customer input; segment- 
               
               
                   
                 specific sales strategy 
               
               
                   
                 Customer needs translated into integrated targets across  
               
               
                   
                 the supply chain; customers share information with the  
               
               
                   
                 company to allow better understanding of their needs 
               
               
                   
                 Customer surveys used for segmentation; importance of 
               
               
                   
                 customers based on their long term relationship;  
               
               
                   
                 Industry trend and competitor analysis (Porter Five  
               
               
                   
                 Forces, SWOT Analysis used) conducted; sources of  
               
               
                   
                 competitive advantage identified, understanding what  
               
               
                   
                 share of service each OEM has for his products 
               
               
                   
                 Completely customized range offered; product  
               
               
                   
                 development driven by currently unmet customer needs 
               
               
                   
                 Variety of distribution channels including eCommerce  
               
               
                   
                 and direct to customers; channel strategies based on  
               
               
                   
                 customer segment, profitability and transaction history  
               
               
                   
                 data collection  
               
               
                   
                 Brand and channel strategy integrated with channel  
               
               
                   
                 specific innovation; focus on stimulating demand via  
               
               
                   
                 new channel development; OEM and channel partners 
               
               
                   
                 utilize collaborative planning tools to ensure consistent 
               
               
                   
                 information and quick response to market  
               
               
                   
                 Market testing in different demographic areas;  
               
               
                   
                 product costs calculated from Activity Based Costing  
               
               
                   
                 models. Customer insight used to decide price 
               
               
                   
                 Strong alliances with customers focused on managing 
               
               
                   
                 interfaces with customers to generate a flexible and 
               
               
                   
                 responsive system of long term collaboration 
               
               
                   
                 Joint goal setting between manufacturers and customers 
               
               
                   
                 continuously reviewed for performance improvement 
               
               
                   
                 opportunities; detailed external information obtained in 
               
               
                   
                 electronic format and used for modeling purposes 
               
               
                   
                 Customer Requests/Feedbacks stored, linked and tied to 
               
               
                   
                 knowledge and engineering changes. Rapid feedback  
               
               
                   
                 from warranty systems; and service documentation  
               
               
                   
                 available on-line 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 23 
               
               
                   
               
               
                 After Sales - After Sales Parts - Procurement and Inbound Logistics 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Manage Procurement 
               
               
                   
                 Plan, schedule and manage inbound transportation and  
               
               
                   
                 track receipts; manage and confirm inbound quality 
               
             
          
           
               
                 After Sales Parts - Procurement and Inbound Logistics KAA 
               
             
          
           
               
                 Basic Criteria: 
                 Sourcing process executed manually. Variations in the 
               
               
                   
                 process exist across business units 
               
               
                   
                 Information exchange with suppliers limited to the  
               
               
                   
                 necessary operational level. Suppliers managed at a  
               
               
                   
                 distance. Manufacturers have little appreciation of  
               
               
                   
                 suppliers goals and performance measures 
               
               
                   
                 Basic understanding of transportation requirements 
               
               
                   
                 Manual and paper-based delivery confirmation 
               
               
                   
                 Products delivered several days either side of the  
               
               
                   
                 required date 
               
               
                   
                 Manufacture to stock policy with high stock levels for  
               
               
                   
                 safety and stock-out avoidance; inventory levels  
               
               
                   
                 monitored monthly  
               
               
                   
                 Inspection deferred until installation or usage;  
               
               
                   
                 personnel return any suspicious product 
               
               
                   
                 Return tag indicates source and part information 
               
               
                   
                 Field personnel periodically return defective products 
               
               
                   
                 Storage and retrieval activities manually recorded 
               
               
                   
                 Parts stored regionally; product movements manually 
               
               
                   
                 monitored 
               
               
                   
                 Stock status not updated electronically; physical  
               
               
                   
                 verification done if necessary 
               
               
                 Competitive 
                 Parts of the sourcing process supported by internal 
               
               
                 Criteria: 
                 applications, but not linked together. Procurement  
               
               
                   
                 personnel rely on their knowledge and personal  
               
               
                   
                 experience to get the information they need Extensive  
               
               
                   
                 data exchange with suppliers to improve logistics  
               
               
                   
                 performance and reduce lead times. Joint goals set with  
               
               
                   
                 suppliers but not monitored closely Initiating TQM,  
               
               
                   
                 having ISO 9000 programs  
               
               
                   
                 Field uses standardized tools and manual processes to 
               
               
                   
                 manage receipts; receipt matched against the PO Tight 
               
               
                   
                 deadlines built into the product deliveries schedule  
               
               
                   
                 Manufacture to demand policy with stock limited to 
               
               
                   
                 contingency levels; inventory levels monitored weekly 
               
               
                   
                 Critical items inspected prior to shipping with defined 
               
               
                   
                 tolerances; non-critical items tested via random 
               
               
                   
                 sampling; personnel aware of the need to return only  
               
               
                   
                 product that meet certain criteria 
               
               
                   
                 Return tag indicates the type of defect (e.g., out-of-box, 
               
               
                   
                 in-use, and specific failure) 
               
               
                   
                 Returns processed at last weekly; cost effective and  
               
               
                   
                 timely routing determined 
               
               
                   
                 Automatic recording of product and location for storage  
               
               
                   
                 and retrieval 
               
               
                   
                 Parts stored centrally and regionally; product  
               
               
                   
                 movements remotely controlled 
               
               
                   
                 Stock status updated electronically but infrequently and  
               
               
                   
                 with errors 
               
               
                 Market Leading 
                 eSourcing application promotes consistent use of  
               
               
                 Criteria: 
                 sourcing best practices across organization, improves  
               
               
                   
                 collaboration and decision-making on sourcing  
               
               
                   
                 activities, and increases the efficiency of the sourcing  
               
               
                   
                 process  
               
               
                   
                 Extensive data exchange with suppliers; suppliers  
               
               
                   
                 linked directly into OEMs supply chain and  
               
               
                   
                 through this to the end customer. Advanced shipping  
               
               
                   
                 notes, purchase orders, acceptances and delivery notices  
               
               
                   
                 transferred via EDI. Joint key performance indicators  
               
               
                   
                 set with suppliers to align to common goals 
               
               
                   
                 Fully developed TQM process implemented in  
               
               
                   
                 transportation; carriers contribute to Quality  
               
               
                   
                 Improvement Process  
               
               
                   
                 Automated receiving and tracking capabilities (e.g., bar  
               
               
                   
                 coding) 
               
               
                   
                 Product delivered on JIT requirements to meet tight  
               
               
                   
                 deadlines JIT policy; inventory managed in real time;  
               
               
                   
                 quantities and locations known at all times 
               
               
                   
                 Critical items inspected through a formal QA process  
               
               
                   
                 that include the supplier; personnel follow guidelines  
               
               
                   
                 and procedures to do preliminary troubleshooting and  
               
               
                   
                 diagnosis to minimize returns; personnel are given  
               
               
                   
                 access to technical backup and assistance via phone/web 
               
               
                   
                 Information on the return tag is coded directly to a  
               
               
                   
                 diagnostic to be performed upon receipt at the return  
               
               
                   
                 processing center  
               
               
                   
                 Field schedules for defective parts shipment; cost of 
               
               
                   
                 additional inventory considered to determine optimal 
               
               
                   
                 returns schedule 
               
               
                   
                 Automatic recording of product and location for storage  
               
               
                   
                 and retrieval integrated with production planning and  
               
               
                   
                 scheduling systems 
               
               
                   
                 Parts stored centrally and regionally based on value and 
               
               
                   
                 demand; product movements interfaced with the ERP  
               
               
                   
                 system  
               
               
                   
                 Stock status updated in real time 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 24 
               
               
                   
               
               
                 After Sales - After Sales Parts 
               
               
                 Warehouse Management 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Manage inventory and replenishment 
               
               
                   
                 Organize and manage picking, packing and shipping, kits 
               
               
                   
                 processing and binning 
               
             
          
           
               
                 After Sales Parts Warehouse Management KAA 
               
             
          
           
               
                 Basic  
                 Inventory levels primarily driven by production; inventory 
               
               
                 Criteria: 
                 mgt. not automated with suppliers 
               
               
                   
                 No lot sizing optimization done - all parts replenished using 
               
               
                   
                 the same approach 
               
               
                   
                 Inaccurate store system stock; cost of inventory not 
               
               
                   
                 accounted for 
               
               
                   
                 True inventory counts done very seldom and then primarily 
               
               
                   
                 for financial reporting 
               
               
                   
                 System reporting very limited, some simple out-of-stock or 
               
               
                   
                 non-sales reports used 
               
               
                   
                 Available to Promise visibility limited to finished goods 
               
               
                   
                 inventory 
               
               
                   
                 Inventory updated manually 
               
               
                   
                 Inventory positions may not be updated according to all the 
               
               
                   
                 relevant receipt and uplifting schedules 
               
               
                   
                 Warehouse Management 
               
               
                   
                 Replenishment based on forecast, sales and reorder points 
               
               
                   
                 Manual storing with paper documents; pick by order 
               
               
                   
                 Manual pallet loading; fixed routes; manual shipping 
               
               
                   
                 document generation; 100% checking of shipment 
               
               
                   
                 Outbound plans to meet ship date; pick planning based on 
               
               
                   
                 “first come, first served” basis 
               
               
                 Competitive 
                 Inventory levels driven by a combination of production 
               
               
                 Criteria: 
                 constraints, demand forecast and desired customer service 
               
               
                   
                 levels; inventory mgt. automated with some suppliers 
               
               
                   
                 Various lot sizing approaches (e.g., EOQ and POQ) 
               
               
                   
                 evaluated and implemented for specific parts classes 
               
               
                   
                 Higher level of accuracy of system stock; basic 
               
               
                   
                 understanding of the cost of holding inventory (e.g., space, 
               
               
                   
                 cost of capital, shrinkage) 
               
               
                   
                 Stock counts through hand held terminals and  
               
               
                   
                 automatically update system 
               
               
                   
                 Fairly sophisticated reporting used to drive target stock 
               
               
                   
                 counts each day 
               
               
                   
                 Available to Promise includes ability to view expected 
               
               
                   
                 production receipts 
               
               
                   
                 Inventory and demand projections updated daily 
               
               
                   
                 Updates of inventory schedule may not be dynamic 
               
               
                   
                 Ability to use different replenishment techniques (e.g.,  
               
               
                   
                 EOQ, POQ, and MIN/MAX); ABC methodology  
               
               
                   
                 developed 
               
               
                   
                 Dynamic pick slot assignment; multiple stocking locations 
               
               
                   
                 Dynamic routing random check of loaded orders 
               
               
                   
                 Outbound plans to meet delivery date and time; picking is 
               
               
                   
                 planned to available labor, shipping schedule and load 
               
               
                   
                 planning 
               
               
                 Market  
                 Multi-echelon planning ability to optimally determine  
               
               
                 Leading 
                 inventory at all levels in the distribution network; integrated  
               
               
                 Criteria: 
                 inventory planning systems; inventory plans jointly  
               
               
                   
                 developed with suppliers 
               
               
                   
                 Product inventory managed in VMI style with an optimal 
               
               
                   
                 balance between product carrying costs, optimal inventory 
               
               
                   
                 positions, accurate delivery and scheduling 
               
               
                   
                 Inventory visibility across all geographies to be able to 
               
               
                   
                 minimize safety stock 
               
               
                   
                 Dynamic lot sizing based on order profile and availability 
               
               
                   
                 System accuracy is high and matches physical stock;  
               
               
                   
                 Activity Based Costing allows understanding of total cost  
               
               
                   
                 of holding inventory by major inventory classes; Sales  
               
               
                   
                 data (EPOS) and inventory levels shared across the  
               
               
                   
                 supply chain 
               
               
                   
                 Stock counting is system driven and on an exception basis 
               
               
                   
                 only 
               
               
                   
                 Exception reporting for out of stocks and stock overages 
               
               
                   
                 Available to Promise includes ability to view expected 
               
               
                   
                 production receipts. The system can reallocate resources to 
               
               
                   
                 meet demand 
               
               
                   
                 Inventory and demand projections updated real-time from 
               
               
                   
                 the ERP system 
               
               
                   
                 Inventory position for each product updated according to 
               
               
                   
                 receipt and uplifting schedules, as well as production 
               
               
                   
                 schedules 
               
               
                   
                 Replenishment driven by actual sales, model stocks and 
               
               
                   
                 customer provided consumption data; JIT inventory 
               
               
                   
                 management policies 
               
               
                   
                 Eliminated walking with AS/RS, paperless via RF; bar- 
               
               
                   
                 coded container ID outlining pallet contents for mixed  
               
               
                   
                 SKU pallets 
               
               
                   
                 One step shipping; load confirmation via RF; EDI 
               
               
                   
                 transmission of shipment availability 
               
               
                   
                 Pick planning based on detailed planning and scheduling 
               
               
                   
                 data, according to delivery criteria and load sequence 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 25 
               
               
                   
               
               
                 After Sales - After Sales Parts 
               
               
                 Outbound Logistics 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Processes and networks to manage items ordered by 
               
               
                   
                 customers and/or distribution centers, adding value to them 
               
               
                   
                 on the way to their final destination 
               
             
          
           
               
                 After Sales Parts Outbound Logistics KAA 
               
             
          
           
               
                 Basic  
                 Order taking process managed manually and supported 
               
               
                 Criteria: 
                 internally by an on-line inventory database 
               
               
                   
                 Delivery and order accuracy information partly recorded  
               
               
                   
                 but not shared with customers 
               
               
                   
                 Payment and receipts paper-based; payment history not 
               
               
                   
                 available on-line 
               
               
                   
                 Transportation planning based on experience and uses 
               
               
                   
                 manual routing of vehicles; transportation uses paper 
               
               
                   
                 documentation either manually or computer generated for 
               
               
                   
                 both transporter and customer 
               
               
                   
                 No receipt confirmation available for outbound shipments  
               
               
                   
                 to dealers 
               
               
                   
                 Asset tracking of parts not enabled for the network 
               
               
                   
                 Manual, paper based return process; products returned 
               
               
                   
                 through multiple channels with no central visibility 
               
               
                   
                 Fourth Party Logistics not understood 
               
               
                   
                 No forecasting process for returns 
               
               
                   
                 No formal procedures exist to identify, route and ship repair 
               
               
                   
                 parts 
               
               
                   
                 Fast and cost driven rules in mode selection 
               
               
                   
                 Use existing contracts/price of carriers; phone carrier 
               
               
                   
                 availability check 
               
               
                   
                 Limited info shared with customers 
               
               
                 Competitive 
                 Order taking managed manually; suppliers have access to  
               
               
                 Criteria: 
                 an on-line inventory database 
               
               
                   
                 Delivery and order accuracy information recorded and used 
               
               
                   
                 by customer service personnel in response of customer 
               
               
                   
                 requests 
               
               
                   
                 EDI and Electronic Funds Transfer (EFT) in most cases,  
               
               
                   
                 but exceptions exist; payment history available on-line 
               
               
                   
                 Some mixed mode transportation; transportation uses on 
               
               
                   
                 board technology to generate transport documentation for  
               
               
                   
                 the customer for a specific load 
               
               
                   
                 Receipt confirmation for outbound shipment to dealer using 
               
               
                   
                 both automatic and manual methods 
               
               
                   
                 Asset tracking of parts enabled using a combination of 
               
               
                   
                 manual and automated methods 
               
               
                   
                 Standard procedures for product returns; products tracked  
               
               
                   
                 in an integrated system to understand reason/level and  
               
               
                   
                 update replenishment systems 
               
               
                   
                 Fourth Party Logistics encountered and discussed between 
               
               
                   
                 top management team 
               
               
                   
                 Returns and repairs estimated from historical trends 
               
               
                   
                 Technicians and service personnel use globally-consistent 
               
               
                   
                 tools and manual processes to manage returns 
               
               
                   
                 Cost and quality driven rules in mode selection 
               
               
                   
                 Standardize on a few and have all carriers participate 
               
               
                   
                 Carrier availability checked via fax 
               
               
                   
                 Logistics info shared with customers; customers sometimes 
               
               
                   
                 consulted for continuous improvement 
               
               
                 Market  
                 Order taking fully automated and integrated with  
               
               
                 Leading 
                 customers; suppliers have visibility of demand and  
               
               
                 Criteria: 
                 inventory position 
               
               
                   
                 Delivery and order accuracy data recorded and used 
               
               
                   
                 proactively by customer service personnel; ordering  
               
               
                   
                 possible via the Internet 
               
               
                   
                 All payments and receipts done via EDI and EFT; on-line 
               
               
                   
                 payment history used to track compliance 
               
               
                   
                 Proactive management of mixed mode (e.g., ship, and road) 
               
               
                   
                 with tradeoffs in inventory, freight costs and customer  
               
               
                   
                 service fully understood. Land transportation uses  
               
               
                   
                 automated routing systems based on automatic traffic  
               
               
                   
                 information updates and customer specific requests;  
               
               
                   
                 wireless communication used. Bill of Lading used 
               
               
                   
                 Automated data capture tools enable receipt confirmation  
               
               
                   
                 and end-destination tracking of parts across all network 
               
               
                   
                 locations 
               
               
                   
                 Product returns linked via EDI; product returned only in 
               
               
                   
                 exceptional circumstances 
               
               
                   
                 Fourth Party Logistics operations implemented 
               
               
                   
                 System generated forecasting of returns and repaired 
               
               
                   
                 products applying appropriate algorithms to more  
               
               
                   
                 accurately predict returns 
               
               
                   
                 Planning system captures transaction data on returned 
               
               
                   
                 products 
               
               
                   
                 Planning and execution system supports part identification, 
               
               
                   
                 tracking and shipping destination 
               
               
                   
                 Dynamic, customer requirements and overall costs driven 
               
               
                   
                 rules in mode selection 
               
               
                   
                 Develop carriers contracts designed to standardize and 
               
               
                   
                 simplify rates and services; volume shipped by mode and 
               
               
                   
                 carrier monitoring to meet contractual obligations 
               
               
                   
                 On-line status of carrier availability; parts can be drop 
               
               
                   
                 shipped to minimize centrally held inventory 
               
               
                   
                 Detailed understanding of customer requirements;  
               
               
                   
                 Customers have an online visibility of logistics data;  
               
               
                   
                 customers consulted for continuous improvement 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 26 
               
               
                   
               
               
                 After Sales - After Sales Services 
               
               
                 Service Strategy 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Create, develop, tailor and monitor an overall set of service 
               
               
                   
                 offerings based on customer, competitor, channel and 
               
               
                   
                 industry analysis 
               
             
          
           
               
                 After Sales Services Service Strategy KAA 
               
             
          
           
               
                 Basic  
                 No predictive service forecasting capabilities implemented 
               
               
                 Criteria: 
                 Some market research done (competitor analysis or 
               
               
                   
                 customer segmentation) as a basis for design of new service 
               
               
                   
                 offerings 
               
               
                   
                 Service feedback rarely taken into consideration when 
               
               
                   
                 developing new products 
               
               
                   
                 Undifferentiated services provided to customers; customers 
               
               
                   
                 are given the same full level of service independent of their 
               
               
                   
                 importance and willingness to pay for this service 
               
               
                   
                 No formal process for the introduction of new service 
               
               
                   
                 offerings 
               
               
                   
                 Performance measures do not span the supply chain due to 
               
               
                   
                 limited aligned of unit goals. Service measures for internal 
               
               
                   
                 customers not tracked 
               
               
                   
                 Customer complaints logging for information. Often  
               
               
                   
                 separate from marketing 
               
               
                   
                 Field service is scheduled on FIFO rules 
               
               
                   
                 Some understanding of the cost to serve customers; costs 
               
               
                   
                 allocated to products rather than customers 
               
               
                   
                 Lack of communication strategy 
               
               
                   
                 Tactical promotions to boost short term sales and margins 
               
               
                 Competitive 
                 Data capture from service events used into service 
               
               
                 Criteria: 
                 forecasting model for budgeting deployment and target 
               
               
                   
                 setting 
               
               
                   
                 Competitor offerings sometimes used as the basis for the 
               
               
                   
                 development of new service offerings 
               
               
                   
                 Some market differentiation with specific services delivered 
               
               
                   
                 to defined target customer segments; customers receive a  
               
               
                   
                 level of service selected from a limited number of options  
               
               
                   
                 and customers willingness to pay 
               
               
                   
                 High-level process for new service introduction 
               
               
                   
                 Performance measures span the internal supply chain, 
               
               
                   
                 mainly from a high level strategic perspective; limited basic 
               
               
                   
                 metrics for internal customers 
               
               
                   
                 Serviceability is a consideration in product design 
               
               
                   
                 Field service is scheduled on call location 
               
               
                   
                 Understanding of the cost to serve customers, based on a 
               
               
                   
                 contribution level analysis (sales revenue less direct cost of 
               
               
                   
                 products sold) for each customer/segment 
               
               
                   
                 Communication seen as fundamental to gain competitive 
               
               
                   
                 advantage 
               
               
                   
                 Promotions to enhance market penetration rather than 
               
               
                   
                 volume 
               
               
                 Market  
                 Real-time service event data capture enables on-line  
               
               
                 Leading 
                 analysis using data-mart and simulation tools; customer  
               
               
                 Criteria: 
                 satisfaction surveys used to measure performance and drive 
               
               
                   
                 improvement initiatives 
               
               
                   
                 Service data and customer feedback used to create a flow of 
               
               
                   
                 information about service needs; extensive research (both 
               
               
                   
                 competitor offering analysis and customer segmentation 
               
               
                   
                 analysis) as a basis for new service offerings design and 
               
               
                   
                 developing 
               
               
                   
                 Services used as the key differentiator against competitors; 
               
               
                   
                 competitor offerings continually monitored and  
               
               
                   
                 incorporated into the development of new offerings 
               
               
                   
                 Highly differentiated market with services targeting a range 
               
               
                   
                 of defined customer segments 
               
               
                   
                 Customer service staff acts as customer retention team; 
               
               
                   
                 service is given to the level required by each customer and 
               
               
                   
                 the cost/profitability - service trade-off is fully understood  
               
               
                   
                 by both customer and the company 
               
               
                   
                 Formalized, structured process for new service  
               
               
                   
                 introduction; customers involved in the design process 
               
               
                   
                 Performance measures span the internal and external  
               
               
                   
                 supply chain and are linked to customer needs satisfaction;  
               
               
                   
                 service performance monitored and optimized  
               
               
                   
                 continuously 
               
               
                   
                 Product designs consistent with service strategy; service  
               
               
                   
                 organization represented in the design process 
               
               
                   
                 Field service is scheduled based on heuristics including 
               
               
                   
                 labor rate, time, service revenue and margin. 
               
               
                   
                 Full understanding and control of the cost to serve all 
               
               
                   
                 customers based on Activity Based Costing methodologies 
               
               
                   
                 for all direct and indirect costs 
               
               
                   
                 Communication investment focused on delivering value to  
               
               
                   
                 aid decision making 
               
               
                   
                 Total service culture with immediate on-line response, 
               
               
                   
                 ownership of the problem, empathy with customers and  
               
               
                   
                 “get back as promised” features 
               
               
                   
                 Targeted promotions based on competitive performance of 
               
               
                   
                 products 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 27 
               
               
                   
               
               
                 After Sales - After Sales Services 
               
               
                 Technical Support 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Manage Technical organization and technical activities 
               
               
                   
                 Develop and maintain services 
               
             
          
           
               
                 After Sales Services Technical Support KAA 
               
             
          
           
               
                 Basic  
                 Limited diagnostic tools and processes offered 
               
               
                 Criteria: 
                 Technical support operates regionally 
               
               
                   
                 Data accuracy procedures not in use (e.g., root cause 
               
               
                   
                 analysis); multiple sources exist for the same data element 
               
               
                   
                 Internally-centric architecture; security cannot be extended 
               
               
                   
                 beyond the enterprise 
               
               
                   
                 Manual procedures defined to restore service failed 
               
               
                   
                 Users call application support directly with application 
               
               
                   
                 questions or problems 
               
               
                   
                 Databases for service history and failures maintained, but  
               
               
                   
                 not routinely analyzed for trends and impending failures 
               
               
                   
                 Training is reactive; on the job learning 
               
               
                   
                 Customer opinion obtained from informal and irregular 
               
               
                   
                 input 
               
               
                   
                 Effort placed on recovery from failure with little effort on 
               
               
                   
                 prevention 
               
               
                 Competitive 
                 Deliver a set of interactive diagnostic tools to enable self 
               
               
                 Criteria: 
                 diagnosis of common problems (intelligent guides,  
               
               
                   
                 providing detailed problem resolution process (defined set  
               
               
                   
                 of steps, tools and templates based on support technician 
               
               
                   
                 experience) 
               
               
                   
                 Technical support operates regionally and shares  
               
               
                   
                 information among locations 
               
               
                   
                 Synchronized data entities across systems (naming 
               
               
                   
                 standards, formatting, internal data usage) 
               
               
                   
                 Technical architecture based on Point-to-Point connectivity 
               
               
                   
                 Processes/scripts defined for operations or support staff to 
               
               
                   
                 recover failed services 
               
               
                   
                 Users or application help desk log problems to a problem 
               
               
                   
                 ticket capability; support staff monitor and address 
               
               
                   
                 problems reported 
               
               
                   
                 Fix databases built to help less experienced technicians to 
               
               
                   
                 resolve high percentage of issues 
               
               
                   
                 Training plans from individual needs; flexible and distance 
               
               
                   
                 learning methods 
               
               
                   
                 Customer opinion obtained from regular periodic input on 
               
               
                   
                 manufacturers performance 
               
               
                   
                 Root cause analysis of problem conducted 
               
               
                 Market  
                 Enable visibility of service cases (service information 
               
               
                 Leading 
                 integrated and stored in the event record for customer; 
               
               
                 Criteria: 
                 service history used to build knowledge support and  
               
               
                   
                 feedback to OEMs); provide easy direct access (links)  
               
               
                   
                 to patches, downloads and other recommended resolution  
               
               
                   
                 to customer problems 
               
               
                   
                 Technical support operates centrally to ensure trouble- 
               
               
                   
                 shooting and product data is aggregated and dispatches 
               
               
                   
                 service regionally to improve service performance 
               
               
                   
                 Internet used as primary communication tool 
               
               
                   
                 Global architecture and connectivity; all customers/ 
               
               
                   
                 suppliers have access to relevant data real-time 
               
               
                   
                 Tools, processes and redundancy planned and implemented 
               
               
                   
                 to automatically recovery from service failures;  
               
               
                   
                 performance metrics constantly monitored 
               
               
                   
                 Users log problem tickets and support is immediately  
               
               
                   
                 notified of critical issues 
               
               
                   
                 Tailored training driven by business plans 
               
               
                   
                 Provide technicians with experts support needed, when they 
               
               
                   
                 need it, by facilitating collaboration and aligning support 
               
               
                   
                 within regions and across the globe 
               
               
                   
                 Customers continuously reviewed for performance 
               
               
                   
                 improvement opportunities 
               
               
                   
                 Continuous improvement programs used with root cause 
               
               
                   
                 analysis performed on problems to design preventative 
               
               
                   
                 solutions 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 28 
               
               
                   
               
               
                 After Sales - After Sales Services 
               
               
                 Warranty and Recall Campaign Management 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Definition and management of warranty coverage and 
               
               
                   
                 procedure management 
               
               
                   
                 Management of warranty claims lifecycle, including claim 
               
               
                   
                 entry, validation, analysis 
               
               
                   
                 Management of dealer warranty support and execution of 
               
               
                   
                 warranty audits, supplier collaboration and product 
               
               
                   
                 improvements; management of recall campaigns 
               
             
          
           
               
                 After Sales Services Warranty and Recall Campaign Management KAA 
               
             
          
           
               
                 Basic  
                 Limited or no collaboration on warranty design between 
               
               
                 Criteria: 
                 product team and service team 
               
               
                   
                 Basic controls on cost of warranty with deep divisions 
               
               
                   
                 between Service and Manufacturing; reasonable tracking of 
               
               
                   
                 actual costs and claims against budget 
               
               
                   
                 Information still paper-based; some communication sent 
               
               
                   
                 electronically 
               
               
                   
                 Warranty and repair data maintained, providing aggregate 
               
               
                   
                 reports to manufacturing and engineering 
               
               
                   
                 Manufacturing targeted at minimizing unit production cost 
               
               
                   
                 with no view on Total Cost of Ownership 
               
               
                   
                 No formal procedures exist for identifying and managing 
               
               
                   
                 return parts 
               
               
                   
                 Partial visibility of repair loop - from receipt of defect back 
               
               
                   
                 through repair 
               
               
                   
                 Data shared with suppliers/dealers through phone and  
               
               
                   
                 emails 
               
               
                 Competitive 
                 Service provides input into design to maximize product 
               
               
                 Criteria: 
                 reliability 
               
               
                   
                 Service and Manufacturing starting to work together to 
               
               
                   
                 align warranty with actual market requirements; tight  
               
               
                   
                 monthly reporting with regular forward and backward  
               
               
                   
                 reviews of performance 
               
               
                   
                 Time and expense captured for all claims 
               
               
                   
                 Stand-alone warranty and repair database, data linked 
               
               
                   
                 back to specific shifts and product lots to support  
               
               
                   
                 corrective action 
               
               
                   
                 Good understanding of balance between warranty costs and 
               
               
                   
                 benefits; early efforts to minimize Total Cost of Ownership 
               
               
                   
                 Consistent tools and processes to manage returns 
               
               
                   
                 Full repair loop visibility 
               
               
                   
                 Data shared with suppliers/dealers using point-to-point 
               
               
                   
                 integration; no direct download of applications and 
               
               
                   
                 documentation 
               
               
                 Market  
                 Products developed jointly by Manufacturing and Service  
               
               
                 Leading 
                 to maximize reliability Integrated profitability analysis  
               
               
                 Criteria: 
                 tools to create, price and sell extended service contracts;  
               
               
                   
                 win/win efforts to share savings 
               
               
                   
                 On-line/real time product and purchasing info  
               
               
                   
                 registration and management, customer profile and  
               
               
                   
                 warranty info/history; availability of early warning/real  
               
               
                   
                 time alerts systems and root cause analysis processes 
               
               
                   
                 Customer configuration details stored to enable customer 
               
               
                   
                 specific diagnostic support; warranty and repair data  
               
               
                   
                 treated as fundamental product data and stored with other  
               
               
                   
                 product content 
               
               
                   
                 One, integrated solution to manage claims processing and 
               
               
                   
                 settlement with clear work queues/workflow management; 
               
               
                   
                 rule-based monitoring of incoming claims combined with  
               
               
                   
                 out of polices reporting an field audits 
               
               
                   
                 Integrated warranty data/claims with the engineering/ 
               
               
                   
                 manufacturing/quality management system 
               
               
                   
                 Streamlined parts-returns process by using digital images 
               
               
                   
                 and exception based returns; full tracking of repairs with 
               
               
                   
                 identification of repeat failures; documented process for 
               
               
                   
                 improvement 
               
               
                   
                 Provide clear policies, customer education and conduct 
               
               
                   
                 audits in order to ensure customer audits to entitlement  
               
               
                   
                 rules 
               
               
                   
                 Collaborative OEM-Suppliers quality improvement  
               
               
                   
                 processes and systems with automated payment  
               
               
                   
                 reconciliation; negotiate terms and conditions that identify  
               
               
                   
                 warranty costs and specific responsibilities; data shared  
               
               
                   
                 with suppliers using portal, configurable accesses to  
               
               
                   
                 multiple partners 
               
               
                   
                 Develop warranty claim processes that make suppliers fully 
               
               
                   
                 accountable; assist dealers through web-based portals/call 
               
               
                   
                 center for warranty submission and technical information 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 29 
               
               
                   
               
               
                 Cross Core Functions - Cross Functional Planning 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Manage Service Policy 
               
               
                   
                 Analyze Sales Plan and Balance Supply/Demand 
               
             
          
           
               
                 Cross Functional Planning KAA 
               
             
          
           
               
                 Basic  
                 There are no shared services. Support functions replicated 
               
               
                 Criteria: 
                 for each business unit 
               
               
                   
                 Supply/demand plan prepared on a rolling basis which may 
               
               
                   
                 be inconsistent with the planning inputs (e.g., supply  
               
               
                   
                 forecast, demand forecast and inventory position) as well  
               
               
                   
                 as planning horizons used for production plans and  
               
               
                   
                 material movements 
               
               
                   
                 The planning process is fragmented due to different 
               
               
                   
                 functional units making their own decisions 
               
               
                   
                 Low visibility of the supply/demand plan. Access by  
               
               
                   
                 contact with people who produce the plans 
               
               
                   
                 Business operations divided along regional or functional 
               
               
                   
                 lines; no conflict resolution mechanism defined 
               
               
                   
                 Production planning driven by production capability;  
               
               
                   
                 planners use experience to plan manually 
               
               
                   
                 Demand variability measured monthly for a product  
               
               
                   
                 across a geographic region; no detailed analysis of  
               
               
                   
                 demand variability 
               
               
                   
                 Safety stock levels usually monitored every 12 months; 
               
               
                   
                 inventory levels based on min/max inventory targets 
               
               
                   
                 There is a supply chain for each business unit; supply chain 
               
               
                   
                 units within the company plan and forecast independently 
               
               
                 Competitive 
                 Some support and line services operate as shared services 
               
               
                 Criteria: 
                 The planning process brings together sales, marketing and 
               
               
                   
                 supply operations in an unofficial and ad-hoc manner 
               
               
                   
                 Limited on-line visibility of the supply/demand plan 
               
               
                   
                 Formal mechanism for resolving regional or functional 
               
               
                   
                 conflicts, adhered to by all groups in the entire company 
               
               
                   
                 Production planning is primarily forecast driven with some 
               
               
                   
                 visibility to open orders 
               
               
                   
                 Demand variability measured monthly by customer  
               
               
                   
                 segment, by product across a sales region; forecast  
               
               
                   
                 error changes monitored and analyzed at product and  
               
               
                   
                 geography levels 
               
               
                   
                 Planning linked with overall logistics planning processes, 
               
               
                   
                 incorporating service level targets by product category 
               
               
                   
                 The supply chain spans the company, across all business 
               
               
                   
                 units. Demand planning systems automated internally but  
               
               
                   
                 not linked externally to customers or suppliers 
               
               
                 Market  
                 There is an optimal mix of shared service and line 
               
               
                 Leading 
                 responsibility for line and support processes 
               
               
                 Criteria: 
                 Supply/demand plan prepared on a rolling basis which is 
               
               
                   
                 consistent with the planning inputs (supply forecast,  
               
               
                   
                 demand forecast and inventory position) as well as  
               
               
                   
                 planning horizons used for production plans and  
               
               
                   
                 material movements 
               
               
                   
                 The planning process brings together sales, marketing and 
               
               
                   
                 supply operations to ensure planning integration across the 
               
               
                   
                 supply chain functions 
               
               
                   
                 Supply/demand plan with system-wide visibility to provide 
               
               
                   
                 information to supply chain decision-makers throughout the 
               
               
                   
                 network 
               
               
                   
                 Formal mechanisms for conflict resolution based on  
               
               
                   
                 effective team work between global command centre and  
               
               
                   
                 process planners 
               
               
                   
                 Production planning primarily driven by demand based 
               
               
                   
                 scheduling and is optimized for plant capacity and material 
               
               
                   
                 availability 
               
               
                   
                 Demand variability measured weekly by customer segment, 
               
               
                   
                 by supply location, by product; forecast error tracked and  
               
               
                   
                 root cause analysis conducted 
               
               
                   
                 Short term variability managed through application Safety 
               
               
                   
                 stocks levels altered on-line in direct response of demand 
               
               
                   
                 and supply variability through the supply lead time 
               
               
                   
                 Demand planning systems fully integrated throughout the 
               
               
                   
                 supply chain both inside and outside the company 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 30 
               
               
                   
               
               
                 Cross Core Functions - Order Management 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Manage Vehicle Order Configuration and Delivery to the 
               
               
                   
                 Customer 
               
               
                   
                 Fulfill Order from Production/Stock 
               
             
          
           
               
                 Order Management KAA 
               
             
          
           
               
                 Basic  
                 Production overstretches to respond to every order. Planners 
               
               
                 Criteria: 
                 use experience to plan manually. In time of shortage, 
               
               
                   
                 customers orders are allocated on a “first come, first served” 
               
               
                   
                 basis 
               
               
                   
                 Orders are not automatically generated and require manual 
               
               
                   
                 order entry and monitoring 
               
               
                   
                 Order received by phone/fax; customer requirements 
               
               
                   
                 captured into a paper-based design; no Internet ordering 
               
               
                   
                 Orders/stock allocation on a first come first served basis 
               
               
                   
                 Backorders tracked manually 
               
               
                   
                 Standard delivery documentation generated by every order; 
               
               
                   
                 information on product inventory not available on-line 
               
               
                   
                 Delivery documentation produced at dispatch point day  
               
               
                   
                 after order received 
               
               
                   
                 Time between delivery and invoice &gt;5 days 
               
               
                   
                 Choice of transportation mode driven by transport cost 
               
               
                   
                 Orders picked to maximize truck utilization and minimize 
               
               
                   
                 handling 
               
               
                 Competitive  
                 Production Planning allows for some flexibility for 
               
               
                 Criteria: 
                 unforecasted orders. All production planning systems are 
               
               
                   
                 automated but not linked throughout the supply chain. In 
               
               
                   
                 time of shortage, customer orders are allocated on the size  
               
               
                   
                 of orders 
               
               
                   
                 Orders are manually entered into system but detailed 
               
               
                   
                 management reporting of reorders is available 
               
               
                   
                 Orders received via EDI; order capture direct into  
               
               
                   
                 mainframe/personal computers via phone/fax (manual) 
               
               
                   
                 Orders/stock allocation prioritized per customer  
               
               
                   
                 importance/size 
               
               
                   
                 Backorders prioritized based on pre-set criteria and tracked 
               
               
                   
                 manually 
               
               
                   
                 Delivery documentation manually generated to meet 
               
               
                   
                 specific customer requirements and produced at dispatch 
               
               
                   
                 point the same day as order received 
               
               
                   
                 Time between delivery and invoice &lt;5 days 
               
               
                   
                 Choice of transportation mode driven by total supply chain 
               
               
                   
                 cost 
               
               
                   
                 Orders picked to maximize customer goods receiving needs 
               
               
                 Market  
                 Production or delivery prioritized according to customer 
               
               
                 Leading 
                 segmentation priority measures and order profitability. 
               
               
                 Criteria: 
                 Production planning systems are fully integrated throughout 
               
               
                   
                 the supply chain. At time of shortage product allocated to 
               
               
                   
                 customers on the basis of customer segmentation rules 
               
               
                   
                 Integrated web based system for order entry; ability to 
               
               
                   
                 integrate order information with warehouse data; electronic 
               
               
                   
                 invoices presented to customers online, via email, etc 
               
               
                   
                 Capture order: a combination of web, chat, telephony and 
               
               
                   
                 messaging to customers, sales force and channel partners to 
               
               
                   
                 communicate with sales force in order to confirm order 
               
               
                   
                 details, to capture payment information and to validate  
               
               
                   
                 order quantity 
               
               
                   
                 Orders/stock allocation conducted on a plan replenishment 
               
               
                   
                 basis after consultation with customer 
               
               
                   
                 Track order: real-time order status, order history and order 
               
               
                   
                 problem notification using a customer&#39;s preferred channel 
               
               
                   
                 (web page, email, mobile phone) to provide alternative 
               
               
                   
                 solutions and to confirm order changes 
               
               
                   
                 Shortfall in supply proactively managed to meet customer 
               
               
                   
                 needs; variations in production volume can be 
               
               
                   
                 accommodated 
               
               
                   
                 Automatic generation of all delivery documentation through 
               
               
                   
                 reference to customer - product - destination, using online 
               
               
                   
                 tracking delivery, proactive notification of shipping delays, 
               
               
                   
                 integration with logistics providers, integration with back- 
               
               
                   
                 end systems and confirmation of delivery to increase  
               
               
                   
                 customer satisfaction 
               
               
                   
                 Time between delivery and invoice same day 
               
               
                   
                 Choice of transportation mode driven by supply chain cost 
               
               
                   
                 and service consideration 
               
               
                   
                 Orders picked to customer&#39;s requirements 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 31 
               
               
                   
               
               
                 Cross Core Functions - Quality Management 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Description: 
                 Define Quality Specifications and Manage Quality Testing 
               
               
                   
                 (internal and external) 
               
               
                   
                 Manage Quality Improvement Plans 
               
             
          
           
               
                 Quality Management KAA 
               
             
          
           
               
                 Basic  
                 Significant facility space and manpower required to conduct 
               
               
                 Criteria: 
                 quality checks 
               
               
                   
                 Statistical Quality Control off-line 
               
               
                   
                 Inspection deferred until installation or usage; personnel 
               
               
                   
                 return any suspicious product 
               
               
                   
                 Partial visibility of repair loop - from receipt of defect back 
               
               
                   
                 through repair; data shared with suppliers/dealers through 
               
               
                   
                 phone and emails 
               
               
                   
                 Databases for service history maintained but not routinely 
               
               
                   
                 analyzed for service trends 
               
               
                   
                 Customer opinion obtained from informal and irregular  
               
               
                   
                 input; no access to external information 
               
               
                   
                 Customer Requests/Feedbacks stored as documents 
               
               
                   
                 Manual order entry and monitoring; customer requirements 
               
               
                   
                 captured into a paper-based design 
               
               
                 Competitive 
                 Automated quality checking processes used. 
               
               
                 Criteria: 
                 There are separate in-process and final inspections 
               
               
                   
                 On-line process and product quality control and certification 
               
               
                   
                 and costs of quality measures used Critical items inspected 
               
               
                   
                 prior to shipping with defined tolerances; non-critical items 
               
               
                   
                 tested via random sampling; personnel aware of the need to 
               
               
                   
                 return only product that meet certain criteria 
               
               
                   
                 Full repair loop visibility; data shared with suppliers/dealers 
               
               
                   
                 using point-to-point integration; no direct download of 
               
               
                   
                 applications and documentation 
               
               
                   
                 Service and failure database utilized to produce performance 
               
               
                   
                 reports 
               
               
                   
                 Customer opinion obtained from regular periodic input on 
               
               
                   
                 manufacturers performance; external information obtained 
               
               
                   
                 in report format and manually incorporated into plans and 
               
               
                   
                 models 
               
               
                   
                 Customer Requests/Feedbacks stored as knowledge linked 
               
               
                   
                 to corresponding products, systems and parts 
               
               
                   
                 Order capture direct into mainframe/personal computers via 
               
               
                   
                 phone (manual) 
               
               
                 Market  
                 Simple mistake-proofing devices used to prevent off 
               
               
                 Leading 
                 specification product so product is blended right, first time, 
               
               
                 Criteria: 
                 every time 
               
               
                   
                 Quality is everyone&#39;s responsibility 
               
               
                   
                 Critical items inspected through a formal QA process that 
               
               
                   
                 include the supplier; personnel follow guidelines and 
               
               
                   
                 procedures to do preliminary troubleshooting and diagnosis 
               
               
                   
                 to minimize returns; personnel are given access to technical 
               
               
                   
                 backup and assistance via phone/web 
               
               
                   
                 Collaborative OEM-Suppliers quality improvement  
               
               
                   
                 processes and systems with automated payment  
               
               
                   
                 reconciliation; negotiate terms and conditions that identify  
               
               
                   
                 warranty costs and specific responsibilities; data shared with  
               
               
                   
                 suppliers using portal, configurable accesses to  
               
               
                   
                 multiple partners 
               
               
                   
                 Failure trends identified through service history. Predict 
               
               
                   
                 failure by statistical analysis of historical service and failure 
               
               
                   
                 information in order to manage continuous improvement 
               
               
                   
                 Joint goal setting between manufacturers and customers 
               
               
                   
                 continuously reviewed for performance improvement 
               
               
                   
                 opportunities; detailed external information obtained in 
               
               
                   
                 electronic format and used for modeling purposes 
               
               
                   
                 Customer Requests/Feedbacks stored, linked and tied to 
               
               
                   
                 knowledge changes; rapid feedback from warranty systems; 
               
               
                   
                 service documentation available on-line 
               
               
                   
                 Order capture: a combination of web, chat, telephony and 
               
               
                   
                 messaging to customers 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 32 
               
               
                   
               
               
                 Cross Core Functions - Call Center Management 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Descrip- 
                 Support service management 
               
               
                 tion: 
                 Manage call center requirements and capacity/staffing and 
               
               
                   
                 scheduling 
               
               
                   
                 Manage knowledge base 
               
             
          
           
               
                 Call Center Management KAA 
               
             
          
           
               
                 Basic  
                 Irregular consumer research; basic understanding of explicit 
               
               
                 Criteria: 
                 customer requirements; customer service standards rarely 
               
               
                   
                 documented; specific requirements recorded for specific 
               
               
                   
                 customers; limited understanding of the tradeoff between 
               
               
                   
                 customer service and costs; firm provides additional service 
               
               
                   
                 without knowing the total cost; limited measurement and 
               
               
                   
                 feedback on customer service levels 
               
               
                   
                 Standard 8 hour staffing 
               
               
                   
                 On the job training 
               
               
                   
                 Limited degree of joint planning with customer base 
               
               
                   
                 Call center operates autonomously from technical support 
               
               
                 Competi- 
                 Periodic customer service surveys intended to measure 
               
               
                 tive 
                 specific values; information used once to make point 
               
               
                 Criteria: 
                 decisions; irregular customer visits by senior management to 
               
               
                   
                 uncover hidden values; basic understanding of cost/service 
               
               
                   
                 tradeoffs; limited capture of additional service costs; firms 
               
               
                   
                 recognize customer values and understand their relative 
               
               
                   
                 performance in meeting expectations 
               
               
                   
                 Proactive staffing/Back-up 
               
               
                   
                 Formal Training 
               
               
                   
                 Some degree of planning and resource sharing, typically 
               
               
                   
                 initiated by customer; customer inputs may drive the planning 
               
               
                   
                 operation where feasible (push system) 
               
               
                   
                 Call center shares information and is integrated with technical 
               
               
                   
                 support 
               
               
                 Market  
                 Formal service level setting process - satisfying customers 
               
               
                 Leading 
                 based upon long-term, strategic considerations as well as 
               
               
                 Criteria: 
                 short-term profitability; regular assessment of customer 
               
               
                   
                 values through open communications and observations; 
               
               
                   
                 customer needs are recorded, tracked and updated 
               
               
                   
                 Firms follow a formal customer service planning methodology 
               
               
                   
                 including: internal/external customer audits; potential 
               
               
                   
                 solutions; and established service levels; firms share 
               
               
                   
                 resources (e.g., on-site) in order to gain a full understanding 
               
               
                   
                 of the other&#39;s values; firms conduct supplier assessments to 
               
               
                   
                 gain consistency throughout the supply chain 
               
               
                   
                 Cross-functional team staffing skilled and trained to make 
               
               
                   
                 proactive decisions 
               
               
                   
                 Integrated Performance Support; 24 hours *7 days support, 
               
               
                   
                 automated 24-hour access for standard routine requests 
               
               
                   
                 High percentage of first call resolution to promote one stop 
               
               
                   
                 service 
               
               
                   
                 Utilization of caller identification; customer inputs used in 
               
               
                   
                 planning 
               
               
                   
                 Call center, technical support, engineering, manufacturing, 
               
               
                   
                 purchasing and marketing are tightly integrated; personalized 
               
               
                   
                 service based on customer history 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 33 
               
               
                   
               
               
                 Cross Core Functions - Remanufacturing and Recycle Management 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Descrip- 
                 Manage good/vehicle returns 
               
               
                 tion: 
                 Manage remanufacturing/recycling/disposal 
               
             
          
           
               
                 Remanufacturing and Recycle Management KAA 
               
             
          
           
               
                 Basic  
                 Inspection deferred until installation or usage; personnel 
               
               
                 Criteria: 
                 return any suspicious product 
               
               
                   
                 Return tag indicates source and part information 
               
               
                   
                 Field personnel periodically return defective products 
               
               
                   
                 Manual, paper based return process; products returned 
               
               
                   
                 through multiple channels with no central visibility 
               
               
                   
                 No forecasting process for returns 
               
               
                   
                 No formal procedures exist to identify, route and ship repair 
               
               
                   
                 parts; partial visibility of repair loop - from receipt of defect 
               
               
                   
                 back through repair 
               
               
                   
                 Formal tools and procedures not applied to remanufacturing/ 
               
               
                   
                 recycle/disposal operations 
               
               
                   
                 Remanufacturing strategy driven primarily by the need for a 
               
               
                   
                 low cost base or high efficiency. Manufacturing/remanu- 
               
               
                   
                 facturing in-house activities 
               
               
                 Competi- 
                 Critical items inspected prior to shipping with defined 
               
               
                 tive 
                 tolerances; non-critical items tested via random sampling; 
               
               
                 Criteria: 
                 personnel aware of the need to return only product that meet 
               
               
                   
                 certain criteria 
               
               
                   
                 Return tag indicates the type of defect (out-of-box, in-use, 
               
               
                   
                 and specific failure) 
               
               
                   
                 Returns processed at last weekly; cost effective and timely 
               
               
                   
                 routing determined 
               
               
                   
                 Standard procedures for product returns; products tracked in 
               
               
                   
                 an integrated system to understand reason/level and update 
               
               
                   
                 replenishment systems 
               
               
                   
                 Returns and repairs estimated from historical trends 
               
               
                   
                 Technicians and service personnel use globally-consistent 
               
               
                   
                 tools and manual processes to manage returns; full repair 
               
               
                   
                 loop visibility 
               
               
                   
                 Remanufacturing/recycle/disposal managed with a set of 
               
               
                   
                 formal procedures and metrics 
               
               
                   
                 Remanufacturing strategy driven primarily by customer 
               
               
                   
                 requirements. In-house operations are dominant, but there is 
               
               
                   
                 some ad-hoc outsourcing 
               
               
                 Market  
                 Critical items inspected through a formal QA process that 
               
               
                 Leading 
                 include the supplier; personnel follow guidelines and 
               
               
                 Criteria: 
                 procedures to do preliminary troubleshooting and diagnosis 
               
               
                   
                 to minimize returns; personnel are given access to technical 
               
               
                   
                 backup and assistance via phone/web 
               
               
                   
                 Information on the return tag is coded directly to a diagnostic 
               
               
                   
                 to be performed upon receipt at the return processing center 
               
               
                   
                 Field schedules for defective parts shipment; cost of 
               
               
                   
                 additional inventory considered to determine optimal returns 
               
               
                   
                 schedule 
               
               
                   
                 Streamlined parts-returns process by using digital images 
               
               
                   
                 and exception based returns; full tracking of repairs with 
               
               
                   
                 identification of repeat failures; documented process for 
               
               
                   
                 improvement 
               
               
                   
                 Planning system captures transaction data on returned 
               
               
                   
                 products and supports part identification, tracking and 
               
               
                   
                 shipping destination 
               
               
                   
                 Remanufacturing/recycle/disposal managed with formal 
               
               
                   
                 procedures; repair operations considered for outsourcing 
               
               
                   
                 where financially and strategically justified 
               
               
                   
                 Remanufacturing are time, efficiency and customer needs 
               
               
                   
                 driven and service trade-offs are fully understood. 
               
               
                   
                 Manufacturing/remanufacturing are flexible, with in-house 
               
               
                   
                 and outsourcing, alliances and continuous monitoring of the 
               
               
                   
                 market place to select best options; options can be changed 
               
               
                   
                 quickly 
               
               
                   
                 Design for Environment (DfE) used: product design for 
               
               
                   
                 disassembly, reuse and recycle; promote and support 
               
               
                   
                 alternative uses for the product (e.g., direct re-use, 
               
               
                   
                 remanufacture, and sell it to 2nd generation market) 
               
               
                   
               
             
          
         
       
     
     The following Tables 34-41 provide an explanation of the capabilities, key assessment areas and performance capability criteria within the support functions platform  104 . For example, as shown in Table 34, the financial management capability  194  is a financial management key assessment area that includes financial management basic PCC, financial management competitive PCC, and financial management market leading PCC. 
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 34 
               
               
                   
               
               
                 Enterprise Management - Financial Management 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Descrip- 
                 Manage funds of the organization both short and long term 
               
               
                 tion: 
                 Manage and monitor enterprise performance and enterprise 
               
               
                   
                 risk 
               
             
          
           
               
                 Financial Management KAA 
               
             
          
           
               
                 Basic  
                 Annual budgeting not based on clear longer term plans/ 
               
               
                 Criteria: 
                 targets 
               
               
                   
                 Budget fixed annually and is a bottom-up activity 
               
               
                   
                 Local administration 
               
               
                   
                 Limited management reporting 
               
               
                   
                 Finance function provides financial numbers/support to 
               
               
                   
                 managers 
               
               
                   
                 Sales and Cost data with little interpretation 
               
               
                   
                 Finance is the only function who understand the numbers 
               
               
                   
                 Repeated/duplicated processes; lack of standardization; 
               
               
                   
                 high proportion of effort spent on transaction processing and 
               
               
                   
                 low value-added activities 
               
               
                   
                 Little standard “what-if” analysis and support 
               
               
                   
                 Manual cash book; mainly manual payment 
               
               
                   
                 Little communication between Finance and rest of the 
               
               
                   
                 organization; Finance operates as stand-alone function; 
               
               
                   
                 minimal links between each functions 
               
               
                   
                 Finance retains control of access to on-line information 
               
               
                 Competi- 
                 Annual budgeting takes financial targets from longer term 
               
               
                 tive 
                 strategic plan 
               
               
                 Criteria: 
                 Budgeting focused on financial return/value; top-down and 
               
               
                   
                 bottom-up approach used 
               
               
                   
                 Shared administration 
               
               
                   
                 Regular updates on activity from commercial departments 
               
               
                   
                 Finance works within teams to provide financial information 
               
               
                   
                 and decision support 
               
               
                   
                 Variance and exception analysis 
               
               
                   
                 “Numbers” generally understood by wider business 
               
               
                   
                 management; KPIs/balanced scorecard performance 
               
               
                   
                 measurement 
               
               
                   
                 Accounting, standardized reporting and transactional 
               
               
                   
                 activities centralized into shared services centers 
               
               
                   
                 Ad hoc spreadsheet used regularly for modeling and 
               
               
                   
                 evaluation 
               
               
                   
                 Computerized cash book 
               
               
                   
                 Organizational model restructured to be “customer” focused 
               
               
                   
                 Involve Finance in entire business process; using economies 
               
               
                   
                 of scale in processing functions 
               
               
                 Market  
                 Long term strategic plans and targets set for annual 
               
               
                 Leading 
                 budgeting 
               
               
                 Criteria: 
                 Budgeting focused on achieving strategic goals; Activity Cost 
               
               
                   
                 based budgeting 
               
               
                   
                 Outsourced administration; asset portfolio information on line 
               
               
                   
                 to relevant parties 
               
               
                   
                 On-line access available to commercial departments 
               
               
                   
                 Finance works within teams to integrate all information for 
               
               
                   
                 managers; activity and value/cost analysis 
               
               
                   
                 High proportion of Finance effort spent on value-added 
               
               
                   
                 activities; finance develop specialist activities (e.g., Tax and 
               
               
                   
                 KPIs) and understands the needs of the rest of the 
               
               
                   
                 organization 
               
               
                   
                 Flexible and integrated planning and what-if tools linked to 
               
               
                   
                 operational data 
               
               
                   
                 Cash book part or fully integrated system 
               
               
                   
                 Finance responds to needs of “customers”, producing 
               
               
                   
                 required information 
               
               
                   
                 Create cross-functional responsibilities and processes; 
               
               
                   
                 integrate business support skills of Finance into the rest of 
               
               
                   
                 the organization 
               
               
                   
                 Define and communicate a Credit Risk Strategy, providing 
               
               
                   
                 written procedures and credit policies; capture country risk; 
               
               
                   
                 use Internal Risk Rating Systems 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 35 
               
               
                   
               
               
                 Enterprise Management - Human Resources 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Descrip- 
                 Attract, develop and retain talented workers 
               
               
                 tion: 
                 Develop, disseminate and manage the company knowledge 
               
             
          
           
               
                 Human Resources KAA 
               
             
          
           
               
                 Basic  
                 No flexibility in job roles: resources dedicated to roles; 
               
               
                 Criteria: 
                 changes in roles are subject to workplace agreements and/or 
               
               
                   
                 negotiation 
               
               
                   
                 Employees do not feel that they own new initiatives 
               
               
                   
                 Training and development plans are high level and do not 
               
               
                   
                 specify who requires what training, by when. All new training 
               
               
                   
                 conducted after the initiative has been completed 
               
               
                   
                 Training provided when employees change positions within 
               
               
                   
                 the company; training reactive 
               
               
                   
                 There are limited teams in place; the company relies on 
               
               
                   
                 traditional work structures 
               
               
                   
                 Performance measures focused on individual performance 
               
               
                   
                 and not related to business objectives 
               
               
                   
                 Remuneration based on years of experience and job 
               
               
                   
                 description 
               
               
                   
                 Roles and responsibilities negotiated between supervisor and 
               
               
                   
                 employee 
               
               
                   
                 Recognition for highly innovative employee 
               
               
                 Competi- 
                 Flexibility in job roles to support carrier development; multi- 
               
               
                 tive 
                 skilled resources 
               
               
                 Criteria: 
                 Employees consulted to develop plans, to define 
               
               
                   
                 responsibilities and change initiatives 
               
               
                   
                 A detailed training and development plan established at the 
               
               
                   
                 beginning of a new initiative; employees trained “Just In 
               
               
                   
                 Time” prior to new initiatives 
               
               
                   
                 The company provides selected role related training to 
               
               
                   
                 support a shift from functional to process orientation; training 
               
               
                   
                 plans from individual needs 
               
               
                   
                 Teams work in most areas, although some fragmentation 
               
               
                   
                 between teams exists 
               
               
                   
                 Some team performance measures introduced and focused 
               
               
                   
                 on business unit objectives 
               
               
                   
                 Skills and team work have some impact but remuneration is 
               
               
                   
                 primarily job grade scale 
               
               
                   
                 Roles and responsibilities documented for each position in 
               
               
                   
                 the organization 
               
               
                   
                 Recognition and monetary awards for highly innovative 
               
               
                   
                 employees 
               
               
                 Market  
                 Highly flexible workforce with limited barriers to short term 
               
               
                 Leading 
                 change 
               
               
                 Criteria: 
                 Employees understand the change goals and have an 
               
               
                   
                 extensive input into the Action Plan development, knowing 
               
               
                   
                 their responsibilities 
               
               
                   
                 Employees involved in defining the new skill set and test 
               
               
                   
                 running the training delivery modes. Experts identified to 
               
               
                   
                 build internal skills. Experts conduct all the internal training of 
               
               
                   
                 their peers prior to the new initiative being implemented; all 
               
               
                   
                 employees are able to perform their new roles at higher 
               
               
                   
                 levels with confidence 
               
               
                   
                 The company has an extensive training and development 
               
               
                   
                 program; it provides an on-going education related to KPIs 
               
               
                   
                 and performance evaluation; training driven by business 
               
               
                   
                 plans 
               
               
                   
                 Integrated performance management system with an optimal 
               
               
                   
                 mix of individual and team measures directly tied to business 
               
               
                   
                 objectives 
               
               
                   
                 Teams operate cross-functionally and include part time 
               
               
                   
                 involvement in support teams 
               
               
                   
                 Productivity goals established and reviewed/increased 
               
               
                   
                 annually; compensation/incentive bonus programs based on 
               
               
                   
                 goals reached 
               
               
                   
                 Remuneration significantly impacted by knowledge and 
               
               
                   
                 contribution to team performance 
               
               
                   
                 Roles and responsibilities documented in detail and linked to 
               
               
                   
                 the performance evaluation and compensation process 
               
               
                   
                 Employee reward and retention programs in place to retain 
               
               
                   
                 top performing agents 
               
               
                   
                 Staffing and hiring decisions on forecasting analysis; use 
               
               
                   
                 critical behavior interview during hiring process 
               
               
                   
                 Provide consistent methodologies, processes and team 
               
               
                   
                 structures with the appropriate alignment across locations 
               
               
                   
                 Formal innovation programs which encourage employees to 
               
               
                   
                 pursue ideas 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 36 
               
               
                   
               
               
                 Enterprise Management - Information Management 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Descrip- 
                 Manage information resources, creating, capturing, storing, 
               
               
                 tion: 
                 classifying, retrieving, evaluating, protecting and distributing 
               
               
                   
                 data within the organization; developing strategies to manage 
               
               
                   
                 data; including provision of services to internal and external 
               
               
                   
                 customers, based on information resources 
               
             
          
           
               
                 Information Management KAA 
               
             
          
           
               
                 Basic  
                 Ad hoc, reactive, technology updates, minimal assessment of 
               
               
                 Criteria: 
                 impact, no communication of benefits 
               
               
                   
                 No or minimal performance monitoring, only reactions to 
               
               
                   
                 problems 
               
               
                   
                 Multiple systems with little integration or flexibility and little 
               
               
                   
                 reliability 
               
               
                   
                 Ad hoc updates to core software packages, with minimum 
               
               
                   
                 user involvement 
               
               
                   
                 Information systems utilized for decision support 
               
               
                   
                 Business systems are only transaction focused. There are no 
               
               
                   
                 system for planning and analysis tools 
               
               
                   
                 Information captured and managed using databases that are 
               
               
                   
                 manually updated 
               
               
                   
                 Information exchange with suppliers limited to the necessary 
               
               
                   
                 operational level 
               
               
                   
                 Information shared only within the supply chain segment 
               
               
                   
                 which owns the data 
               
               
                   
                 Information systems used for decision support; transaction 
               
               
                   
                 systems are stand-alone and there are no common data 
               
               
                   
                 Significant delays in obtaining information due to lack of 
               
               
                   
                 control between systems and multiple data entry 
               
               
                   
                 requirements 
               
               
                   
                 Information archived; data resides in many different formats 
               
               
                 Competi- 
                 Regular, planned, technology updates; benefits identified 
               
               
                 tive 
                 Performance monitored using basic tools; performance tuning 
               
               
                 Criteria: 
                 is manual and reactive 
               
               
                   
                 Systems linked by automatic interfaces but no flexible to 
               
               
                   
                 changing business needs 
               
               
                   
                 Updates planned and users advised 
               
               
                   
                 Information systems used for simple decision making (e.g., 
               
               
                   
                 stock reordering) 
               
               
                   
                 Limited analysis toolset periodically updated with transaction 
               
               
                   
                 information 
               
               
                   
                 Integrated databases regularly used for information 
               
               
                   
                 management but are mainly manually updated 
               
               
                   
                 Extensive data exchange with suppliers to improve mutual 
               
               
                   
                 logistics performance and reduce lead times 
               
               
                   
                 Information shared across the whole of the internal supply 
               
               
                   
                 chain 
               
               
                   
                 Information systems used for simple decision making (e.g., 
               
               
                   
                 stock reordering); all major transaction systems are 
               
               
                   
                 integrated, specialist systems are not fully integrated (e.g., 
               
               
                   
                 marketing or forecasting) 
               
               
                   
                 Cross-system information available for regularly required 
               
               
                   
                 activities; reports prepared in an ad hoc manner requiring 
               
               
                   
                 queries to be run on several databases 
               
               
                   
                 Information archived in a repository available to the entire 
               
               
                   
                 organization; data resides in a common format 
               
               
                 Market  
                 Alternative technologies evaluated, benefits of change/ 
               
               
                 Leading 
                 upgrade identified and communicated 
               
               
                 Criteria: 
                 Appropriate tools in place to automate performance tuning; 
               
               
                   
                 performance monitoring against KPIs and anticipation of 
               
               
                   
                 problems 
               
               
                   
                 Integrated systems, flexible in responding to change business 
               
               
                   
                 needs 
               
               
                   
                 Updates planned and installed with full user involvement 
               
               
                   
                 Expert systems used to consider demand, transportation 
               
               
                   
                 resources/costs, available storage, product acquisition 
               
               
                   
                 costs, physical constraints and replenishment plans 
               
               
                   
                 There is an extensive integrated modeling and analysis 
               
               
                   
                 toolset (e.g., decision support system) 
               
               
                   
                 Databases fully integrated and automatically updated in real 
               
               
                   
                 time; systems support supply chain planning of demand, 
               
               
                   
                 transportation, production and material requirements 
               
               
                   
                 Extensive data exchange with suppliers and customers to 
               
               
                   
                 innovate products and processes. Suppliers linked directly 
               
               
                   
                 into the manufacturers supply chain and through these to 
               
               
                   
                 end-users. EDI linkages used; shipping notes, purchase 
               
               
                   
                 orders, delivery notices transferred via EDI 
               
               
                   
                 Information shared through real time data integration 
               
               
                   
                 between supplier and customer EDI systems; POS data 
               
               
                   
                 tracking allows continuous replenishment 
               
               
                   
                 Expert systems used to make complex and autonomous 
               
               
                   
                 decisions; there is one enterprise-wide system solution which 
               
               
                   
                 fully integrates all component systems and extensive use of 
               
               
                   
                 data capture, processing and analysis systems to process 
               
               
                   
                 information in all functional areas 
               
               
                   
                 Data kept in a central repository available to the entire 
               
               
                   
                 organization and resides in a client/server platform open to 
               
               
                   
                 the appropriate users 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 38 
               
               
                   
               
               
                 Enterprise Management - Procurement (indirect) 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Descrip- 
                 Manage strategic sourcing, establishing supplier contracts 
               
               
                 tion: 
                 and managing orders 
               
               
                   
                 Manage supplier relationship/partnership and monitor 
               
               
                   
                 supplier performance 
               
             
          
           
               
                 Procurement (indirect) KAA 
               
             
          
           
               
                 Basic  
                 Sourcing process executed manually. Variations in the 
               
               
                 Criteria: 
                 process exist across business units 
               
               
                   
                 Supplier selection criteria based on price and quality 
               
               
                   
                 No central, single location for contracts storage. 
               
               
                   
                 Contracts are stored in hard copy 
               
               
                   
                 Orders are not automatically generated and require manual 
               
               
                   
                 order entry and monitoring 
               
               
                   
                 No segmentation of existing supply base 
               
               
                   
                 Buyer keeps track of some suppliers′ performance; No 
               
               
                   
                 consolidated performance metrics 
               
               
                   
                 Supplier Performance is monitored based on selected terms 
               
               
                   
                 of the agreement (e.g., price) 
               
               
                   
                 Information exchange with suppliers limited to the necessary 
               
               
                   
                 operational level. Suppliers managed at a distance. 
               
               
                   
                 Manufacturers have little appreciation of suppliers goals and 
               
               
                   
                 performance measures 
               
               
                 Competi- 
                 Parts of the sourcing process are supported by internal 
               
               
                 tive 
                 applications, but are not linked together. Procurement 
               
               
                 Criteria: 
                 personnel rely on their knowledge and personal experience to 
               
               
                   
                 get the information they need 
               
               
                   
                 Reduced number of suppliers selected by strategic Key 
               
               
                   
                 Performance Indicators (KPIs) 
               
               
                   
                 Contracts are stored centrally and electronically imaged but 
               
               
                   
                 no capability to report against key fields on contracts such as 
               
               
                   
                 expiration dates 
               
               
                   
                 Orders are manually entered into system but detailed 
               
               
                   
                 management reporting of reorders is available Importance of 
               
               
                   
                 key suppliers is recognized and reflected appropriately 
               
               
                   
                 Supplier Performance tracking strategy is in place 
               
               
                   
                 KPIs are linked to business unit objectives with focus on 
               
               
                   
                 select areas such as delivery quality, material/service order 
               
               
                   
                 completion, order fulfillment, and timeliness 
               
               
                   
                 Extensive data exchange with suppliers to improve logistics 
               
               
                   
                 performance and reduce lead times. Joint goals set with 
               
               
                   
                 suppliers but not monitored closely 
               
               
                 Market  
                 eSourcing application promotes consistent use of sourcing 
               
               
                 Leading 
                 best practices across organization, improves collaboration 
               
               
                 Criteria: 
                 and decision-making on sourcing activities, and increases the 
               
               
                   
                 efficiency of the sourcing process 
               
               
                   
                 Reduced number of suppliers selected by strategic Key 
               
               
                   
                 Performance Indicators (KPIs) with emphasis placed on 
               
               
                   
                 supplier&#39;s ability to develop long-term strategic relationship 
               
               
                   
                 Single contracts database and system to provide visibility and 
               
               
                   
                 aid management of contracts. 
               
               
                   
                 Electronic repository includes pricing, terms and conditions, 
               
               
                   
                 insurance certificates and allows for maintenance and 
               
               
                   
                 reporting against contract expiration dates 
               
               
                   
                 Orders are automatically generated by system replenishment 
               
               
                   
                 rules 
               
               
                   
                 Suppliers are grouped into three different segments: key, 
               
               
                   
                 potential, and transactional. Goals, work and management 
               
               
                   
                 processes are defined accordingly 
               
               
                   
                 Automated tracking of Supplier Performance and Compliance 
               
               
                   
                 and communicated to supplier (e.g., up to supplier real time 
               
               
                   
                 access to KPIs); Continuous improvement programs 
               
               
                   
                 developed with selected suppliers 
               
               
                   
                 Suppliers are measured on all KPIs required to ensure the 
               
               
                   
                 objectives are met including delivery accuracy, quality 
               
               
                   
                 monitoring, and compliance with other contract terms, 
               
               
                   
                 innovation, flexibility, and problem responsiveness. 
               
               
                   
                 Extensive data exchange with suppliers; suppliers linked 
               
               
                   
                 directly into OEMs supply chain and through this to the end 
               
               
                   
                 customer. Advanced shipping notes, purchase orders, 
               
               
                   
                 acceptances and delivery notices transferred via EDI. Joint 
               
               
                   
                 key performance indicators set with suppliers to align to 
               
               
                   
                 common goals 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 39 
               
               
                   
               
               
                 Enterprise Management - Legal Compliance 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Descrip- 
                 Manage legality according to laws of the partner country, 
               
               
                 tion: 
                 including legal rights, payment of taxes, mergers and 
               
               
                   
                 acquisitions. 
               
               
                   
                 Verification of compliance with regulations 
               
             
          
           
               
                 Legal Compliance KAA 
               
             
          
           
               
                 Basic  
                 Legal approach to compliant resolution and complaints 
               
               
                 Criteria: 
                 usually disputed 
               
               
                   
                 No central, single location for contracts storage. 
               
               
                   
                 Contracts stored in hard copy 
               
               
                   
                 Manufacturing targeted at minimizing unit production cost 
               
               
                   
                 with no view on Total Cost of Ownership 
               
               
                   
                 Do not update policies and procedures 
               
               
                   
                 Do not monitor compliance to policies and procedures 
               
               
                   
                 Lack of performance management agreements 
               
               
                   
                 Focus on internal measures 
               
               
                 Competi- 
                 Complaints management system with reparations made for 
               
               
                 tive 
                 valid complaints 
               
               
                 Criteria: 
                 Contracts stored centrally and electronically imaged but no 
               
               
                   
                 capability to report against key fields on contracts such as 
               
               
                   
                 expiration dates 
               
               
                   
                 Good understanding of balance between warranty costs and 
               
               
                   
                 benefits; early efforts to minimize Total Cost of Ownership 
               
               
                   
                 Maintain paper-based procedures and distribute changes 
               
               
                   
                 Carry out regular audit policies and procedures 
               
               
                   
                 Management teams responsive to process performance 
               
               
                   
                 reporting 
               
               
                   
                 Some comparison of internal/external (e.g., competitor best 
               
               
                   
                 practices) 
               
               
                 Market  
                 Complaints seen as valued customer information and 
               
               
                 Leading 
                 mutually resolved 
               
               
                 Criteria: 
                 Single contracts database and system to provide visibility  
               
               
                   
                 and aid management of contracts. 
               
               
                   
                 Electronic repository includes pricing, terms and conditions, 
               
               
                   
                 insurance certificates and allows for maintenance and 
               
               
                   
                 reporting against contract expiration dates 
               
               
                   
                 One, integrated solution to manage claims processing and 
               
               
                   
                 settlement with clear work queues/workflow management; 
               
               
                   
                 rule-based monitoring of incoming claims combined with  
               
               
                   
                 out of polices reporting an field audits 
               
               
                   
                 Develop warranty claim processes that make suppliers fully 
               
               
                   
                 accountable 
               
               
                   
                 Document procedures available to employees online 
               
               
                   
                 Systemized checks and controls ensure adherence to 
               
               
                   
                 policies and procedures 
               
               
                   
                 Every work team continually seeks process performance 
               
               
                   
                 improvements 
               
               
                   
                 External audit of procedures 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 40 
               
               
                   
               
               
                 Enterprise Management - Enterprise Asset Management 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Descrip- 
                 Manage Facilities, Maintenance and Safety and Security 
               
               
                 tion: 
                 Manage general administrative 
               
             
          
           
               
                 Enterprise Asset Management KAA 
               
             
          
           
               
                 Basic  
                 Utilities consumed locally as required; product costs 
               
               
                 Criteria: 
                 calculated using averaged costs 
               
               
                   
                 The maintenance philosophy is “fix it when it breaks” 
               
               
                   
                 Facilitates locations based on historical events 
               
               
                   
                 Fixed asset items bought on an as-needed basis to replace 
               
               
                   
                 obsolete or worn-out equipment 
               
               
                   
                 Fixed asset ledger is simply a tool for inventory control and 
               
               
                   
                 asset depreciation 
               
               
                   
                 Asset loss not known/reported for tax purposes until the end 
               
               
                   
                 of an accounting period or even the end of an asset&#39;s 
               
               
                   
                 scheduled depreciable life 
               
               
                   
                 Fully depreciated assets cast off into a storage location full of 
               
               
                   
                 obsolete hardware of different types waiting for someone to 
               
               
                   
                 decide to throw it in the garbage 
               
               
                   
                 Surplus asset of one business unit not marketed to other 
               
               
                   
                 business units 
               
               
                   
                 Documentation managed in informal libraries, not often kept 
               
               
                   
                 current with changes. Databases for service history 
               
               
                   
                 maintained but not routinely analyzed for trends 
               
               
                   
                 Little predictive maintenance technology installed 
               
               
                 Competi- 
                 Utilities purchased nationally in bulk; product costs calculated 
               
               
                 tive 
                 from historical Activity Based Costing data 
               
               
                 Criteria: 
                 Preventative maintenance system in operation; the system is 
               
               
                   
                 database driven and historic planned 
               
               
                   
                 Product flows and locations optimized across selected parts 
               
               
                   
                 of supply chain (e.g., finished goods only) 
               
               
                   
                 Fixed asset procurement still largely on an ad hoc basis 
               
               
                   
                 Fixed asset ledger used to track depreciation and asset 
               
               
                   
                 “useful life” 
               
               
                   
                 Asset loss known by inventory control at the end of a 
               
               
                   
                 production run or at the end of a business event 
               
               
                   
                 Fully depreciated assets are no longer tracked, as the cost of 
               
               
                   
                 tracking exceeds the benefits 
               
               
                   
                 Maintain surplus assets, also assets for sale, on an internal 
               
               
                   
                 database 
               
               
                   
                 Formal libraries of OEM procedures maintained in field office 
               
               
                   
                 and kept current. Service and failure database utilized to 
               
               
                   
                 produce performance reports. 
               
               
                   
                 Predictive maintenance technology exists at some regional/ 
               
               
                   
                 site levels and technical support utilized in the problem 
               
               
                   
                 isolation process 
               
               
                 Market  
                 Integrated management information system monitoring and 
               
               
                 Leading 
                 reporting on trends of utility consumption; product costs 
               
               
                 Criteria: 
                 calculated from real-time Activity Based Costing data 
               
               
                   
                 Preventive and predictive maintenance used. There is a 
               
               
                   
                 cross functional maintenance and operations team 
               
               
                   
                 responsible for scheduling maintenance activity 
               
               
                   
                 Product flows and locations across the supply chain 
               
               
                   
                 optimized for cost, quality and service parameters 
               
               
                   
                 Holistic approach to asset management, involving all the 
               
               
                   
                 enterprise functions 
               
               
                   
                 Fixed asset ledger for asset rationalization, tracking assets 
               
               
                   
                 through depreciation until disposition 
               
               
                   
                 The practice of accelerating the depreciation schedule over 
               
               
                   
                 the standardized depreciation will lessen the impact of asset 
               
               
                   
                 loss 
               
               
                   
                 Retirement and disposition of assets offers the opportunity to 
               
               
                   
                 sell equipment; sell fully depreciated assets; consider offering 
               
               
                   
                 fully depreciated assets for sale to employees 
               
               
                   
                 Maintain a continually updated surplus asset list, available 
               
               
                   
                 online to divisions, and branches; the surplus asset list 
               
               
                   
                 maximize utilization of assets 
               
               
                   
                 Preventive scheduled activities electronically managed to 
               
               
                   
                 monitor solutions and advice on required services and 
               
               
                   
                 upgrades. Failure trends identified through service history. 
               
               
                   
                 Predict failure by statistical analysis of historical service and 
               
               
                   
                 failure information. 
               
               
                   
                 Monitors and sensors predict potential failures on critical 
               
               
                   
                 equipment and automatically generated service requests 
               
               
                   
               
             
          
         
       
     
     
       
         
               
             
               
               
             
               
             
               
               
             
           
               
                 TABLE 41 
               
               
                   
               
               
                 Enterprise Management - Environment, Health and 
               
               
                 Safety Management 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                 Descrip- 
                 Set and manage environment, health and safety programs 
               
               
                 tion: 
                 within the organization 
               
             
          
           
               
                 Environment, Health and Safety Management KAA 
               
             
          
           
               
                 Basic  
                 The health, safety and environment group focused on 
               
               
                 Criteria: 
                 reactive programs like accident investigation and reporting. 
               
               
                   
                 Induction programs focus on reporting processes. Each 
               
               
                   
                 facility interprets legislation in different ways 
               
               
                   
                 Procedures documented (e.g., for ISO 9000 accreditation) 
               
               
                   
                 Do not update policies and procedures 
               
               
                   
                 Medical data handled using a series of forms and redundant 
               
               
                   
                 data entry activities 
               
               
                   
                 Security plans paper based; no information sharing between 
               
               
                   
                 countries 
               
               
                   
                 Distinct non-standard safety and health identification and 
               
               
                   
                 analysis procedures at each plants 
               
               
                   
                 Do not monitor compliance to policies and procedures; lack of 
               
               
                   
                 performance management agreements 
               
               
                 Competi- 
                 A comprehensive health, safety and environment policy 
               
               
                 tive 
                 developed. The health, safety and environment group 
               
               
                 Criteria: 
                 focused on a mix of reactive and proactive initiatives to 
               
               
                   
                 improve safety performance 
               
               
                   
                 Procedures documented and used for training, and resource 
               
               
                   
                 management. 
               
               
                   
                 Maintain paper-based procedures and distribute changes 
               
               
                   
                 Medical information flows through several hand-offs before 
               
               
                   
                 final approval, entry and storage 
               
               
                   
                 Common system to facilitate information sharing between 
               
               
                   
                 countries; no single responsible individual (process owner) 
               
               
                   
                 for all information on one material 
               
               
                   
                 Globally-consistent site services and security plans 
               
               
                   
                 documented 
               
               
                   
                 Carry out regular audit policies and procedures; management 
               
               
                   
                 teams responsive to process management reporting 
               
               
                 Market  
                 A comprehensive health, safety and environment policy 
               
               
                 Leading 
                 developed. The health, safety and environment group 
               
               
                 Criteria: 
                 focuses on a mix of reactive and proactive initiative to 
               
               
                   
                 improve safety performance as well as development, review 
               
               
                   
                 and interpretation of new and amended legislation, 
               
               
                   
                 regulations and standards with a goal to standardize 
               
               
                   
                 compliance across all facilities 
               
               
                   
                 Document procedures and make available to employees on 
               
               
                   
                 line 
               
               
                   
                 Systemized checks and controls ensure adherence to 
               
               
                   
                 policies and procedures; every work team continually seeks 
               
               
                   
                 process performance improvements 
               
               
                   
                 Medical information captured by physician along with 
               
               
                   
                 integration to automated testing devices 
               
               
                   
                 Workplace and workforce data integrated into environment, 
               
               
                   
                 health and safety system; risk assessment supported by 
               
               
                   
                 historical data from EHS systems; common system for 
               
               
                   
                 sharing information between countries 
               
               
                   
                 Globally-consistent site services and security plans available 
               
               
                   
                 and accessed online to conduct emergency response 
               
               
                   
                 Risk reduction and corrective actions tracked; health risk 
               
               
                   
                 analysis automatically updates training and inspection 
               
               
                   
                 requirements; safety reports called-up from detailed accident/ 
               
               
                   
                 injury/illness info; record incidents causes (e.g., defective 
               
               
                   
                 equipment, and inadequate work procedure) 
               
               
                   
                 Conduct engineering reviews during design of new process to 
               
               
                   
                 detect any Health Environment and Safety hazard (e.g., 
               
               
                   
                 FMEA analysis) 
               
               
                   
                 Incentives, education, awareness and physical activity 
               
               
                   
                 programs to promote employees participation; on-line training 
               
               
                   
                 histories 
               
               
                   
                 Core business processes performed by one Shared Service 
               
               
                   
                 Center for all plants using standard procedures and 
               
               
                   
                 supported by common system 
               
               
                   
               
             
          
         
       
     
       FIG. 5  shows a multidimensional automotive industry performance reference set  500  (“reference set  500 ”) that provides a capability detail pool from which the system described below may obtain benchmarking tables for an automotive business. The reference set  500  includes multiple key assessment performance reference tables (“reference tables”), two of which are labeled  502  and  504 . Each reference table may provide the benchmarking criteria for a specific capability, such as those noted above with respect to  FIG. 1 . 
     One dimension of each table may establish a ‘Basic’ performance capability level  210  specifying ‘Basic’ performance assessment criteria, a ‘Competitive’ performance capability level  212  specifying ‘Competitive’ performance assessment criteria, and a ‘Market Leading’ performance capability level  214  specifying ‘Market Leading’ performance assessment criteria. Another dimension of each table may specify one or more key assessment areas (KAAs), several of which are labeled  506 ,  508 , and  510 . As noted above, performance capability criteria, e.g., the PCC  512 , populates each key assessment performance reference table to provide benchmark criteria for ‘Basic’, ‘Competitive’, and ‘Market Leading’ characteristics. 
     The reference set  500  represents the HPCA model  100 . Consistent with the HPCA model  100 , the reference set  500  may organize multiple reference tables into a hierarchical structure defining discrete changes in granularity. In one implementation, the hierarchical structure includes reference tables, sub-platforms, platforms, and models.  FIG. 5  labels three sub-platforms  514 ,  516 , and  518 . With reference to  FIG. 1 , examples of sub-platforms include Product Development, Marketing &amp; Sales, and Production &amp; Logistics. The reference set  500  may further organize the sub-platforms into platforms, two of which are labeled  520  and  522 . 
     With reference to  FIG. 1 , examples of platforms include Vision and Strategy and Core Functions. Platforms aggregate into the HPCA model  100  and corresponding reference set  500 . Additional, different, or fewer levels of granularity may be defined in the HPCA model  100 . 
     The reference set  500  may dynamically populate the reference tables with the most up-to-date performance capability criteria, for example upon retrieval and presentation by a business analysis consultant. The performance capability criteria may be retrieved from a performance capability criteria database or other information source. 
       FIG. 5  also shows an example of a database implementation  524  of a portion of a reference table. In particular, the database implementation  524  includes records (e.g., the records  526 ,  528 ,  530 ) that establish each PCC. In the example shown in  FIG. 5 , each record includes a PCC field  532 , a Capability Specifier field  534 , a KAA specifier field  536 . Other fields may be provided, such as a reference table assignment field or reference set assignment field. The records categorize each PCC into a specific category (e.g., Basic), into a specific KAA, and, optionally, into a specific reference table in a specific reference set for any particular HPCA model. 
       FIG. 6  shows a high performance capability assessment system (“system”)  600 . The system  600  includes a processor  602  and a memory  604 . Several databases support the operation of the system  600 , including a performance capability database  606 , a performance measured database  608 , a capability detail pool database  610 , and an assessment results database  626 . The system  600  may include a local display  612  and input/output interfaces  617  (e.g., including a keyboard, mouse, microphone, speakers, or other device), and, through the communication interface  614  and networks  616 , may communicate with remote devices  618  and remote displays  620 . The networks  616  may be any combination of external networks (e.g., the Internet) and internal networks (e.g., corporate LANs). The displays  612  and  620  may, for example, present performance capability assessment models  622  that the system  600  retrieves from the capability detail pool database  610  for review, modification, and application by process engineers or other individuals. With regard to local access or access by the remote devices  618 , the system  600  may include a login processing program  624  to authenticate and/or authorize access to the system  600 . To that end, the login processing program  624  may include username/password verification, private/public key encryption, or other validation and data protection capabilities. 
     In one implementation, the performance capability database  606  stores performance capability criteria. As will be described in more detail below, the system  600  may populate performance capability assessment models with performance capability criteria suited to any particular platform (e.g., vision and strategy platform  102 , core functions platform  104  and support functions platform  106 ) and business capability at one or more capability levels across one or more key assessment areas. The performance measured database  608  may store the determined, measured, or otherwise ascertained characteristics, criteria, and other measured data of a particular key assessment area as representative practice data  648 . The representative practice data  648  may be obtained through interviews with process engineers, through online questionnaires, through manual or automated analysis of business data (e.g., year end operating reports), or in other manners. The capability detail pool database  610  stores the capability detail pool  500 , which includes pre-defined performance capability assessment models  622 . The assessment results database  626  stores determined capability levels for specific capabilities that have been analyzed. 
     The system  600  facilitates the review, modification, creation, and application of performance capability assessment models. In that role, performance capability assessment model manipulation logic (“manipulation logic”)  646  within the system  600  creates, retrieves, and stores capability assessment data  628  in the memory  604 . The manipulation logic  646  may establish capability assessment data  628  in the memory  604 , including a capability assessment data structure  630  with multiple capability levels (“CL”)  632  organized along a capability scale dimension, multiple key assessment areas (“KAA”)  634  organized along a key factor dimension, and performance capability criteria (“PCC”)  636  that populates the performance capability assessment model  630 . The manipulation logic  646  may vary widely in implementation, and, as one example, may include data storage logic  652  that saves data in memory and user interface logic that accepts capability level specifications, key assessment area specifications and performance capability criteria inputs to create new performance capability assessment models, modify existing performance capability assessment models, delete performance capability assessment models, or retrieve performance capability assessment models for review. In one implementation, the manipulation logic  646  establishes the capability assessment data structure  630  to include a multidimensional automotive industry performance reference set that includes multiple key assessment performance reference tables in which the key assessment performance reference tables include a ‘Basic’ performance capability level, a ‘Competitive’ performance capability level and a ‘Market Leading’ performance capability level. 
     The capability assessment data  628  may also include a capability position specifier  638 . The capability position specifier  638  may record the capability level along the performance capability scale  216 , as determined for any particular capability. Thus, the system  600  may store the capability level in the assessment results database  626  or elsewhere for future retrieval and review. 
     In one implementation, the data population logic  640  may be a data population program executed by the processor  602  that populates template performance capability assessment models. For example, the data population logic  640  may include input logic  650  that accepts input specifying a capability of interest that indicates a particular performance capability assessment model. The data population logic  640  may include query logic  645  that executes database queries and prompts a user for input to obtain the corresponding performance capability criteria for the capability of interest. 
     In one implementation, as an example, the query logic  645  may receive an input specifying an automotive industry area and an automotive industry key assessment area with the automotive industry area for analysis. The query logic  645  searches the multidimensional automotive industry performance reference set for a matching key assessment performance reference table that matches the automotive industry area and the automotive industry key assessment area, and retrieves the matching key assessment performance reference table. 
     The data population logic  640  may further include storage logic that adds the retrieved performance capability criteria to the template performance capability assessment model. The data population logic  640  produces populated performance capability assessment models  642  that may be stored in the capability detail pool database  610 . 
     In addition to the analysis process described above, the system  600  may provide an automated analysis of representative practice data  648  that identifies relevant performance capability criteria and determines the position on the performance capability scale  216  of each key assessment area corresponding to the performance capability criteria for the representative practice data  648 . As one example, the system  600  may implement capability assessment logic  644  that includes comparison and/or matching logic that analyzes the representative practice data  648  with respect to performance capability criteria to locate key assessment areas for which the system  600  can determine capability levels to obtain a resultant performance capability level for each key assessment area. 
     Furthermore, the capability assessment logic  644  may determine an overall position on the performance capability scale  216 , shown in  FIG. 6  as the capability position specifier  638 , for a capability under examination given the knowledge of where the key assessment areas corresponding to the capability under examination fall in each capability level. Thus, for example, the capability assessment logic  644  may determine an overall capability level for a capability corresponding to the capability level for the majority of the key assessment areas, or it may apply a weighted analysis technique to give more emphasis to some key assessment areas than others in determining the overall position on the performance capability scale  216  for a capability. As another example, the capability assessment logic  644  may implement an expert system (e.g., based on a neural network trained on prior determinations) that analyzes the determined characteristics with respect to the performance capability criteria and ascertains where the capability under examination falls along the performance capability scale  216  for each of the key assessment areas, or overall on the performance capability scale  216 . 
       FIG. 7  shows a flow diagram  700  for creating performance capability assessment models. The performance capability assessment model creator (e.g., the manipulation logic  646 ) establishes a key factor dimension for the performance capability assessment model ( 702 ). As one specific example, the performance capability assessment model creator establishes, in the key factor dimension, key assessment areas: a new product development key assessment area  130 , an engineering key assessment area  132 , a product lifecycle management key assessment area  134 , a procurement strategy key assessment area  136 , a strategic sourcing and category management key assessment area  138 , a requisition to pay key assessment area  140 , a supplier relationship management key assessment area  142 , a production forecasting planning and scheduling key assessment area  144 , an inbound logistics key assessment area  146 , a manufacturing and assembly key assessment area  148 , and an outbound logistics key assessment area  150 . 
     The performance capability assessment model creator also establishes a capability scale dimension for the performance capability assessment model ( 704 ). The capability scale dimension may define a scale of increasing organizational capability. For example, the structure creator may create a ‘Basic’ capability level  210 , a ‘Competitive’ capability level  212 , and a ‘Market Leading’ capability level  214 . 
     The performance capability assessment model creator also populates the performance capability assessment model with performance capability criteria ( 706 ). A capability detail pool  500  may be formed to hold multiple tailored key assessment performance reference tables ( 708 ). The performance capability assessment model creator may store the populated assessment structure in the capability detail pool for subsequent retrieval and analysis ( 710 ). 
       FIG. 8  shows a flow diagram  800  for retrieving and applying performance capability assessment models. A selection of a capability to be analyzed is obtained ( 802 ). In one implementation, the system  600  receives input data that specifies an automotive industry area and an automotive industry key assessment area for analysis. For example, the system  600  may accept input from a business consultant that specifies a capability for analysis. The system  600  may query the capability detail pool  500  for a corresponding performance capability assessment model ( 804 ). The corresponding performance capability assessment model may be pre-defined in the capability detail pool  500 , or the data population logic  640  (or other actor) may populate a performance capability assessment model template that the system  600  newly creates, or that the system  600  retrieves from a data store, such as the capability detail pool database  610 . 
     In another example, the system  600  searches the multidimensional automotive industry performance reference set in the capability detail pool  500  for a matching key assessment performance reference table based on the input data that specifies an automotive industry platform and an automotive industry key assessment area. The system  600  retrieves the matching key assessment performance reference table and initiates analysis of the matching key assessment performance reference table to obtain a resultant performance capability level for the automotive industry key assessment area. 
     The system  600  obtains representative practice data  648  for the capability under examination in the specific business under review ( 806 ). For example, a business consultant may interview the business to determine how the business currently executes the capability under review. As another example, a representative from the business may complete a questionnaire, submit business data for analysis and parameter extraction, or otherwise provide the characteristics of their current capability execution. As a further example, the system  600  may retrieve the representative practice data  648  from a database of previously obtained representative practice data. 
     The system  600  compares the representative practice data  648  to the performance capability criteria in the performance capability assessment model ( 808 ). For example, a business consultant may use his or her expertise to arrive at a determination of capability level for the business and the capability under examination ( 810 ). Alternatively or additionally, the capability assessment logic  644  may perform an automated analysis of the assessment results data in the assessment results database  626  and ascertain the capability level on the performance capability scale  216  ( 810 ). The system  600  may store the assessment results, including the determined capability level, for future reference in the assessment results database  626  or other location ( 812 ). 
       FIG. 9  shows a flow diagram  900  for analyzing representative practice data  648  to determine an automotive industry and an automotive key assessment area to which the representative practice data applies. The system  600  receives representative practice data  648  as input data ( 902 ). The system  600  may receive the representative practice data  648  from a database query performed by the query logic  645  that the query logic  645  executes periodically, when instructed by an operator, and/or automatically against any number of available database sources that store representative practice data  648 . The capability assessment logic  644  analyzes the representative practice data  648  to identify performance capability criteria in the capability detail pool  500  that the capability assessment logic  644  determines relevant to the representative practice data  648  ( 904 ). For example, the capability assessment logic  644  may compare and/or match the content of the representative practice data  648  with the performance capability criteria using natural language processing (NLP), text string and/or substring matching, by comparing tags linked to the representative practice data  648  and that specify that any portion of the representative practice data  648  is applicable to a specific PCC, by querying for a manual classification of the representative practice data  648  to a PCC, or other matching technique. The capability assessment logic  644  may score and/or weight a performance capability criteria and compare the score and/or weight to a user specified relevance threshold to rank the relevance of the performance capability criteria to the representative practice data  648  ( 906 ). The user may specify particular terms and/or phrases to search and match between the performance capability criteria and the representative practice data  648 , in order to score the performance capability criteria. 
     The capability assessment logic  644  may determine, based on the number of performance capability criteria that meet or exceed the relevance threshold, that the capability assessment logic  644  has identified a sufficient number of performance capability criteria for a specific key assessment area in order to determine a performance capability level for the capability as a whole or any key assessment area within the capability ( 908 ). As one example, where at least 51% of the performance capability criteria for a particular key assessment area meet or exceed the relevance threshold, the capability assessment logic  644  applies the performance capability criteria to the representative practice data  648 . In another example, the performance capability criteria for a particular key assessment area may be ranked in importance and/or designated as mandatory in order to assess the key assessment area. In the event the capability assessment logic  644  identifies the mandatory performance capability criteria for a key assessment area the capability assessment logic  644  applies the performance capability criteria to the representative practice data  648 . 
     The capability assessment logic  644  may apply the performance capability criteria meeting or exceeding the relevance threshold to the representative practice data  648  to determine whether any particular PCC is met. Accordingly, as the capability assessment logic  644  analyzes the PCC, the system  600  tracks the best fit of the representative practice data  648  to the PCCs in the key assessment performance reference tables. In other words, the system  600  determines how the representative practice data  648  meets (or does not meet) each PCC, thereby gaining insight into whether the representative practice data  648  is indicative of Basic, Competitive, or Market Leading practices. 
     The system  600  may also gauge the position on the performance capability scale  216  of each key assessment area corresponding to the performance capability criteria ( 910 ). The capability assessment logic  644  may further determine an overall position on the performance capability scale  216  for a capability ( 912 ). The capability assessment logic  644  may establish that a desired number and/or designated mandatory performance capability criteria for the key assessment areas have been identified as relevant to a capability and sufficient to determine the position on the performance capability scale  216  for the capability. For example, the capability assessment logic  644  may determine an overall capability level for the capability based on the capability level determined for the majority of the key assessment areas. The capability assessment logic  644  may apply a weighted analysis technique to give more emphasis to some key assessment areas than others in determining the overall position on the performance capability scale  216  for the capability. 
     Although selected aspects, features, or components of the implementations are depicted as being stored in computer-readable memories (e.g., as computer-executable instructions or performance capability assessment models), all or part of the systems and structures may be stored on, distributed across, or read from other computer-readable media. The computer-readable media may include, for example, secondary storage devices such as hard disks, floppy disks, and CD-ROMs; a signal, such as a signal received from a network or received at an antenna; or other forms of memory, including ROM or RAM, either currently known or later developed. 
     Various implementations of the system  600  may include additional or different components. A processor may be implemented as a microprocessor, a microcontroller, a DSP, an application specific integrated circuit (ASIC), discrete logic, or a combination of other types of circuits or logic. Similarly, memories may be DRAM, SRAM, Flash or any other type of memory. The processing capability of the system may be distributed among multiple system components, such as among multiple processors and memories, optionally including multiple distributed processing systems. Parameters, databases, and other data structures may be separately stored and managed, may be incorporated into a single memory or database, may be logically and physically organized in many different ways, and may implemented in many ways, including data structures such as linked lists, hash tables, or implicit storage mechanisms. Programs may be combined or split among multiple programs, or distributed across several memories and processors. 
     The HPCA model provides unexpectedly good results for a performance capability assessment model, particularly in the automotive industry. In particular, the combinations of key assessment areas and particular assessment criteria of the HPCA model, including the criteria noted in Tables 1-41 above, provide significant advantages over other assessment models. The unexpectedly good results include clearly identifying and delineating from among multiple related complex processes specific processes to improve, and how to improve the process and identifying concrete and measurable improvement goals. 
     While various embodiments of the invention have been described, it will be apparent to those of ordinary skill in the art that many more embodiments and implementations are possible within the scope of the invention. Accordingly, the invention is not to be restricted except in light of the attached claims and their equivalents.