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P2P Organizational Role Play

P2P Organizational Role Play. Objective. Go through a demonstration of the P2P cycle, and illustrate the impact on different site and above site stakeholders Identify areas for improvement Think through the impact of decisions made at each point. The Actors. Plant manager Plant maintenance

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P2P Organizational Role Play

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  1. P2P Organizational Role Play

  2. Objective • Go through a demonstration of the P2P cycle, and illustrate the impact on different site and above site stakeholders • Identify areas for improvement • Think through the impact of decisions made at each point.

  3. The Actors • Plant manager • Plant maintenance • Supplier • Account payable • Supply manager • Corporate procurement representative (Dave Conn) • IT Corporate

  4. SCENE 2 SCENE 3 SCENE 1 SCENE 4

  5. SCENE 1 – Need Identification • DISCUSSION: • What are problems in running the current Req system? • Who should have responsibility for doing so?

  6. SCENE 2 - SOURCING • DISCUSSION: • What just happened here? Who is right? • Is there a point to Central Procurement creating validated suppliers? • Does the plant have a right to expect the work to be completed on a timely basis? • What is the role of planned maintenance? Why is this difficult to do?

  7. SCENE 3 - INVOICING • What are the problems with approvals? • What are the problems with reqs? • What are the problems with matching reqs, PO’s, and invoices?

  8. SCENE 4 – ACCOUNTS PAYABLE • What is the impact of payment problems with suppliers? • If you were a supplier, how would you view Essroc given this situation? • What can be done to improve invoice payment problems?

  9. Some Quotes from Suppliers • I know that 9 times out of 10 the PO will get blocked if it the invoice is over, so I won’t invoice over the PO amount, and have to ask them for another PO for the remainder – which can take a long time.” • “I don’t do this – but this is what the AP people ask me to do, because they tell me I will get paid quicker that way. It always takes longer for the second one to get paid – no one is in a hurry to get it processed once the work is done!” • “Essroc’s typical payment is 90 days and that is only after we go after them several times. They are a big customer – we did $500K with them last year. I know someone in their corporate group for 20 years, and that is the only way I know how to get paid….I called my buddy up and he called up the plant manager to approve the PO!”

  10. How do we work together to align objectives across the company? • Plant manager – describes their KPIs which is primarily to maintain uptime, meet customer needs, and meet a budget – in that order. • Plant maintenance – equipment uptime is all they care about. He wants to use his local maintenance service provider, because he comes any time he needs him. Gets a lot of emergency orders, and is sick about procurement whining at him to complete the req and PO accurately….”I just need to get my job done!” • Supplier – willing to jump through hoops for his buddy in maintenance at Essroc, but is having problems getting paid…. • Account payable – overworked, can’t keep up with the demands and phone calls from suppliers – knows the PO’s are screwed up. • Supply manager – is overwhelmed expediting product, trying to answer AP’s questions about no enough dollars on PO, has frustrations with maintenance. Tired of corporate taking so long on approvals. • Corporate procurement - trying to standardize and reduce suppliers, to drive cost savings across the enterprise. • IT Corporate – trying to drive SAP compliance.

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