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ISCM Planning Meeting Program Review

ISCM Planning Meeting Program Review. December 4, 2002 James B. Rice, Jr. Director - Integrated Supply Chain Management Program Massachusetts Institute of Technology. Meeting Objectives. Primary Review ISCM Program activities 2002 Plan ISCM Program activities 2003

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ISCM Planning Meeting Program Review

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  1. ISCM Planning Meeting Program Review December 4, 2002 James B. Rice, Jr. Director - Integrated Supply Chain Management Program Massachusetts Institute of Technology

  2. Meeting Objectives • Primary • Review ISCM Program activities 2002 • Plan ISCM Program activities 2003 • With ISCM sponsor input and consensus • Research Agenda 2003 • Event Plans 2003 • Secondary • Brief review of 2002 research projects • Revisit ISCM Structure • Funding, Scope, Recruiting additional sponsors • Enlist sponsor participation • Research project(s) • Event planning and hosting • Harvesting Discussion

  3. Agenda • Review ISCM 2002 • Finances • Research • Events • Value Exchange • Issues • Research Briefs • System Dynamics Modeling of the Supply Chain • Supply Chain Response to Terrorism • Planning ISCM 2003 • Events • Research

  4. Review of 2002 ISCM Finances

  5. ISCM Financial Structure • Funding • 100% from ISCM sponsors • Pays for Director • Fixed cost – recent sharing • Pays for research investments • $40K annual sponsorship • Single year commitment • Funding structure allows freedom to work with other groups • Financial contributions as well as content & access contributions are exchange collateral

  6. Review of 2002 ISCM Finances • Funding received • 2002 Revenues: $160K received • Forecasted 2002 Revenues at $200K • Pre-2001 Surplus of $128K available • 2003 Revenues: $60K received (prepaid) • Expenses incurred (actual) • 2002 Est. Expenses: $xxxK • Net Position 12-02 • Estimated carryover into 2003: $xxK • 2002 Research Project funding stretched into 2003

  7. 2002 Statement Highlighted areas indicate estimates; expense items to be split among ISCM and APL

  8. 2003 Expense Estimate Highlighted areas indicate estimates; expense items to be split among ISCM and APL

  9. 2003 Financial Forecast Recommend that we maintain $75K in reserve to provide cash flow flexibility

  10. Estimate of 2003 ISCM Finances • Estimated Funding Available • 2003 Revenues anticipated from current sponsors: $200K • Net cumulative available carry forward into 2002: $69K • Expenses • 2003 Est. Expenses before research investments: $143K • Net Position 12-02 • Net available for program operation: $269K • Net available for research investments: $126K • Entails spending down all funds • Will need to make research investments with funding receipts

  11. Planning Implications – Finances • Consider potential research investment decisions • Realistically funding one project at $50K, dependent on revenues • Additional sponsors’ revenues is high impact • Assess and develop research alternatives

  12. Review of 2002 ISCM Research

  13. Review of 2002 ISCM Research Agenda • Extended projects through 2002 • Clockspeed On-Site Sessions with Prof. Charlie Fine • Open invitation to sponsors to submit cases for Clockspeed sessions • Fine continuing work in service supply chain & some new areas • New focus on Communications Value Chain Roadmapping • Supply Chain Visualization Project • Continued to involve ISCM in the development of this system to visualize supply chain performance through a tangible user interface, a system dynamics model & knowledge repository • Final project demonstrations in early 2003 • Initiated new projects conducted by ISCM • SC Response to Terrorism • Monsanto Seed Returns

  14. Review of 2002 ISCM Events

  15. 2002 ISCM Event Schedule January 10 “Dynamic Pricing in the Supply Chain” MIT CTS Affiliates Program in Logistics Symposium February 5-6 ISCM Key Contact Planning Meeting 2001 Research Review and 2002 Research/Event Planning May 20-21 Joint ISCM & Affiliates Symposium “New Era of Customer Service Management” May 21-22 ISCM Research Review/Best Practices Exchange Meeting October 16-17 Joint ISCM & Affiliates Symposium “Auto-ID Technology: Defining Logistics Applications” December 4 ISCM Key Contact Planning Meeting 2002 Review and 2003 Research/Event Planning December 5-6 Joint ISCM & Affiliates Symposium & Colloquium “Supply Chain Response to Global Terrorism”

  16. Planning Implications – Events • Choices for 2003 • Mix of events and timing • ‘Travel’ events to sponsor sites • Sponsor supply chain reviews • Clockspeed sessions • Theme, or multiple ‘point’ topics • Co-sponsored events with other groups possible • Sharing and collaboration potential • How much and what amount of this is desired?

  17. Review of 2002 ISCM Value Exchange

  18. Review of ISCM Mission & Value Exchange • Two stated objectives • Accelerate implementation of SCM at sponsor companies • Advance the state-of-art of SCM • ISCM delivers these through • ISCM-funded Research Projects • Quarterly Collaboration - Exchange Events • Annual Executive Event • Learn from other research consortia • Smaller programs serve a focused agenda, sponsor input • Larger programs serve a broad agenda, sponsor input • Multi-year commitment • Focus is on the research

  19. Summary Assessment of ISCM Value Exchange • Potential for higher impact exists • Increased, more active participation in long term research agenda • Sponsor benefits appear to be a function of… • Attendance at events (this may seem obvious……) • Consuming research shared • Sharing around the company • Generating discussion with researcher to understand, apply learnings • Willingness to engage • Non-event visits to MIT to explore research interests • Commitment of resources to join research projects • Clarity of your company’s interests and needs • Take advantage of our resources • Theses, Researchers, Ongoing projects • ISCM is a High-touch Program

  20. Review of 2002 ISCM Issues

  21. ISCM Issue – Long Term Plan • Future for ISCM • What is our long-term vision? • Purpose • Research and activities • Sponsor composition • What do we want ISCM to evolve into? • Shift from year-to-year planning to multi-year? • Harvesting strategies…. • Coordination with Affiliates Program in Logistics (APL) • Lower cost for Director, some coordinated events • Future vision should drive other key choices • Planning horizon and cycle • Research agenda • Event and activity plans

  22. ISCM Issue – Coordination with APL • Shared Director requires coordinated events • Tested process in 2002 • 2 day events • 1 day shared with APL sponsors • 1 day dedicated to ISCM sponsors • Identifying common themes for events

  23. ISCM Issue – Program Structure and Size • Program Structure and Size • Currently holding at lower limit on number of sponsors • Limited membership & low cost limits research funds available • Annual funding requires ‘rework’ effort, limits ability to make research commitments for longer-term projects • Although it is useful to review progress • Considerations • Multiple-year sponsorship agreement • Enlist sponsors in recruiting efforts • Discussion

  24. Research Briefs

  25. Research Briefs & Discussions • Paulo Goncalves • Review of system dynamics work • Working on multiple ISCM projects • Supply Chain Visualization • Monsanto Seed • SC Response to Terrorism Team • Informal discussion of recent issues uncovered

  26. Planning Discussions: 2003

  27. Planning ISCM Events: 2003

  28. Planning Implications – Events • Choices for 2003 • Mix of events and timing • ‘Travel’ events to sponsor sites • Sponsor supply chain reviews • Clockspeed sessions • Audioconferences, research site visits • Share events with other MIT group(s) in 2002? (I.e. with LFM) • Theme, or multiple ‘point’ topics • Sharing and collaboration potential • How much and what amount of this is desired?

  29. 2003 Event Framework • Jan. 5-7 Executive Education: Fundamentals of SCM • Consider • P&G Event Proposal for 2Q (coordinate with a site visit to enrich event?) • Joint event with Intel University Day for 3Q (Chandler, Az) • Potential Clockspeed session • Additional Quarterly AudioConferences • Dates • 1Q • January 5-7 Executive Education • ISCM Exchange Meeting • 2Q • ISCM Exchange Meeting • 3Q • ISCM Exchange Meeting • 4Q • ISCM Exchange & Key Contact Planning Meeting at MIT

  30. Event Proposal • Topic – SC Value Creation: Strategy, Financial Analysis Tools, Measures, Incentives • Key Questions • Strategy • How critical is supply chain strategy to your business strategy? • What is your business planning process and its influence on Supply Chain strategy? • What are the tools/processes used to develop Supply Chain strategy? • What is the vision for your SC? How is your company creating value from the SC? • What are the focus areas? What is this focus driving? • Financial Analysis Tools • What are the key financial analysis tools used to design supply chains? • How is financial analysis work being extended beyond the company boundaries? • What are the financial analysis tools & systems required in outsourced, dynamic environment? • Measures • What are the key SC measures? How are they executed/used? New measures required? • Who defines measures and financial analysis tools in your organization? How do they get deployed? Do you use Centers of Excellence? • Do you have a holistic measure for overall SC efficiency (financial, responsiveness, quality)? • Incentives • What is necessary to incent collaboration among SC partners (both suppliers and customers)? • How is "gainshare" managed between supply chain partners? • How does a Supply Chain innovator maintain competitive advantage resulting from his SC initiatives, or is the innovator willing/forced to share gains with competition? • Targeted Participants – ISCM members and their key Financial Analysis Experts

  31. Planning ISCM Research: 2003

  32. Planning 2003 Research • Some funding available as noted in finance review • $50K+ to support one project at current level of sponsor support • Need to poll current sponsors to solicit specific interests • Consider developing research projects to support event plans • E.g. : Proposed Finance & Supply Chain Event may help identify a specific issue to study and potential researchers to consider • Propose to solicit specific sponsor interest and discuss in conference call(s) with key contacts

  33. 2003 Research Discussion • Propose discussions to identify areas of interest • What are the core problems for your firm’s supply chain? • What are the future issues that your supply chain may face? • Seek common or overlapping areas of interest among sponsors • Subsequently search for ‘fit’ between sponsor interests and researchers at MIT

  34. Review and Planning Summary

  35. Summary • Identify follow up items, responsibilities, timing • List choices for 2002 • ISCM Vision, Long-term plan • Research agenda decision making process • Research plans, focus • Event plan • Program structure, operations • List outstanding items

  36. Reference SlidesEvent PlanningResearch

  37. Reference Slides: Event Planning

  38. Events – Evolution of process & purpose • 1995-1997 • Focused on learning about the sponsor supply chains (supply chain reviews at sponsor sites) • 1998 • Shifted to theme-based, topic-focused (plan, make, source, deliver) events targeted to non-supply chain groups • Focused on sharing learnings among sponsors, identifying best practices on several supply chain topics • 1999 • Shifted to topic-focused events on mixture of supply chain and business management topics, leverage events with other MIT consortia and research groups, open discussion sessions • No central theme identified, sponsor-driven event topics • 2000-2001 • Events and audioconferences to balance travel & interactions • Heavier emphasis on research

  39. 2002 ISCM Event Schedule January 10 “Dynamic Pricing in the Supply Chain” MIT CTS Affiliates Program in Logistics Symposium February 5-6 ISCM Key Contact Planning Meeting 2001 Research Review and 2002 Research/Event Planning May 20-21 Joint ISCM & Affiliates Symposium “New Era of Customer Service Management” May 21-22 ISCM Research Review/Best Practices Exchange Meeting October 16-17 Joint ISCM & Affiliates Symposium “Auto-ID Technology: Defining Logistics Applications” December 4 ISCM Key Contact Planning Meeting 2002 Review and 2003 Research/Event Planning December 5-6 Joint ISCM & Affiliates Symposium & Colloquium “Supply Chain Response to Global Terrorism”

  40. 2001 ISCM Event Schedule February 1 ISCM Best Practices Collaborative Meeting at MIT “Innovations in Sponsor Supply Chains” February 2 Joint ISCM - Leaders for Manufacturing Program at MIT LFM Intern Research Knowledge Review June 19-20 eClockspeed Research Visit to Helix (Prof. Charlie Fine) ISCM Exchange Meeting & Research Review at MIT Oct. 30 “Innovations in Supply Chains” ISCM Event Hosted by P&G, Cincinnati, Ohio (P&G’s Consumer Innovation Center) Oct. 31 sClockspeed Research Visit to P&G Prof. Charlie Fine & Customer Service Supply Chain

  41. 2001 ISCM Support Activities Schedule February 20 ISCM AudioConference Review of Innovations by ISCM Sponsors (Intel) March 1 Clockspeed Research Visit to Siemens Prof. Charlie Fine May 14 Supply Network Coordination Symposium Sponsored by KLICT Research – The Netherlands May 15 ISCM AudioConference Prof. Ellen Christiaanse – Univ. of Amsterdam “From Static Supply Chains to Dynamic Supply Webs” Nov 2 ISCM AudioConference “Global Terrorism and the Impact on Supply Chain Mgt” Prof. Yossi Sheffi, Prof Barry Posen, and Dr. Jonathan Byrnes

  42. 2000 ISCM Event Schedule January 27-28 “Managing Change in the Supply Chain” and Leaders For Manufacturing (LFM) Knowledge Review June 12-13 “Future of Supply Chain, E-Business and the Internet ISCM Event Hosted by Intel, Chandler, Az. (Fine - MIT, Lee - Stanford, Cohen - Wharton) Sept. 13-15 ISCM Research Review and Workshop Research Colloquium with LFM Nov. 28-29 ISCM 2001 - Program Planning Sponsor Key Contacts & MIT Researchers

  43. 2000 ISCM Support Activities Schedule February 15 ISCM AudioConference ‘eClockspeed’ Project Planning – Prof. Charlie Fine April 18 ISCM AudioConference “Smart Practice Knowledge Network” – Lucent Tech. “Fireball Initiative” – P&G June 1 Research Visit to P&G – Prof. Charlie Fine June 5 Research Visit to Lucent – Prof. Charlie Fine October 17 ISCM AudioConference Dr. Fred Hewitt – MIT CISR “Why Demand Pipelines are better that Supply Chains”

  44. Consortia Events Current Best Practices • Committed sponsor participation • Desirable to have full involvement in planning • Ensures events relevant to sponsor interest • Sponsor ‘co-planner’ • Critical to have full participation (representation at least) at each event • Active involvement in discussion • Provides deeper insight, leads to involvement in other activities • Event schedule, participation and size • 1.5 to 2 day optimal duration • 1 day max shared with other groups, 2+ hours unscheduled for open discussion • For symposia-type events, maximum 30-35 participants for top benefit • Event planning • 3-4 core exchange events at MIT (or sponsor site) plus other interactions • Advance plan best for all, with ‘theme’ • Key contact planning sessions requires key contacts (at a minimum)

  45. Reference Slides: Research

  46. Consortia Research Current Best Practices • High sponsor involvement produces exponential benefits • Participation in project development and field research • Benefits to both the sponsor and project results • 2001 ex. – Intel (suggested Stanford CLV project), P&G (CLV study, hosted event, Clockspeed session), Helix (Clockspeed session), Siemens (Clockspeed session) • Leverage research funds with ongoing research • Pool funds with other initiatives for greater impact • 2001 ex. – SC Visualization, Fine & Clockspeed • New projects – invest in research considering the ‘author’ • Akin to commissioning a book • Track record, productivity • Research entails a process of discovery • Research, not consulting - creating new knowledge • 2001 ex. – Fine exposes Service Supply Chain, Network Master uncovered SC vs. SC limitations

  47. Research Agenda Options • Multiple options exist for research investment • Applied research project vs. concept development • Independent funding vs. leveraged funding • Large single investment vs. portfolio of projects • Broad business issue vs. focused problem • Degree of sponsor participation on each project • Single company vs. multiple

  48. Planning Implications – Research • Research agenda options as choices for a consortia • This year and into the future • Portfolio of the various options • Recognize context of our consortia • Multiple companies, different agendas, joined together for a common interest in SC • Consortia structure entails funding constraints • Need consensus among sponsors for research agenda choices • Consider soliciting additional funding for additional work

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