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ACCO BrandsGLOBAL GROWTH
Innovation & Time to Market Lead the Way
Aras Community NetworkMay 7, 2008
Workspace Tools division of ACCO Brands, Inc. (c) 2008 ACCO Brands, Inc. All rights reserved.
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ACCO Brands Background
Click to edit Master title style• ACCO Brands Corporation is one of the world's largest
suppliers of branded office products with 2007 revenue ofsuppliers of branded office products, with 2007 revenue of $1.9 billion
• Started as Clipper Manufacturing Company founded in pp g p y1903, renamed American Clip Company in 1910 and ACCO in 1922
• Markets products in over 100 countries across the globe through our own sales force and distribution networks
F d d li i ti l l f• Focused on delivering exceptional value for our stockholders and customers by providing unique, leading-edge, branded office products
Workspace Tools division of ACCO Brands, Inc. (c) 2008 ACCO Brands, Inc. All rights reserved.
2
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Who We Are
Click to edit Master title style• Workspace Tools
– Staplers, Punches, Trimmers, Staples
• Document Finishing– Shredders, Laminators, Binding Machines
• Storage & Organization– Binders, Notebooks, Indexes, File Folders
• Visual Communication– Dry-Erase Boards, Bulletin Boards, Projectors
• Computer Accessories– Computer Mice, Keyboards, Power Adapters, Notebook Cases
Workspace Tools division of ACCO Brands, Inc. (c) 2008 ACCO Brands, Inc. All rights reserved.
3
Workspace Tools:
Click to edit Master title style
• Staplers, Punches, Trimmers, Staplesp p
Workspace Tools division of ACCO Brands, Inc. (c) 2008 ACCO Brands, Inc. All rights reserved.
4
Global Strategic IntentClick to edit Master title style
•Lead the Market
ven •Deliver meaningful Product Innovations
ket D
riv •Category Management
•Operational Excellence
Mar
k
•Effective Execution
-Continue to Build Organizational Competencies
Workspace Tools division of ACCO Brands, Inc. (c) 2008 ACCO Brands, Inc. All rights reserved.
5
Growth Drivers
Click to edit Master title style•Revenue Growth Targets
•Grow New Product ContributionObjectives
•Build on Core through Consumer Alignment
•Grow New Product Contribution
Base
•Leverage Consumer Research to Drive Meaningful InnovationMarketChanging
•Continued Global Expansion
Changing
New Continued Global Expansion
•Continued Market Expansion
NewMarkets
Workspace Tools division of ACCO Brands, Inc. (c) 2008 ACCO Brands, Inc. All rights reserved.
6
Evolving our relationship with the consumer
Click to edit Master title style
Workspace Tools division of ACCO Brands, Inc. (c) 2008 ACCO Brands, Inc. All rights reserved.
7
Expanding Scope
Category Management
Brand Awareness
Click to edit Master title style• National promotional initiatives• Consistent message to consumer and trade and across
product lines
Stapling
product lines
Workspace Tools division of ACCO Brands, Inc. (c) 2008 ACCO Brands, Inc. All rights reserved.
9
Speed To Market – A Key to Success
Click to edit Master title stylePrevious State (Just Examples)
Current Medium Complexity Project takes X Months
- Medium Level Largely Mechanical Design- Medium Level, Largely Mechanical, Design- Existing Platform but Complicated ID Redesign
C t Hi h l it j t t k 1 5 2X M thCurrent Higher complexity projects take 1.5-2X Months
- New Electromechanical Designg- New Platform Design
Workspace Tools division of ACCO Brands, Inc. (c) 2008 ACCO Brands, Inc. All rights reserved.
10
Speed To Market Opportunities
Click to edit Master title styleDiscrete Task Analysis
Prior ProjectsRevised Process Delta (weeks) Comments
Task
I.D. Definition 8 wk 2 wk 6 Team Decision Making vs. Individualg
Tooling 16 wk 8 wk 8 Supplier selection for speed; tooling in MFG Country
Project Brief 4 wk 1 wk 3 Excess Research v. In-house expertise
Quotation Process 5 wk 2 wk 3 Baseline; will vary by complexity
Product Testing 2 wk 1 wk 1 Baseline; will vary by complexity
Structural Packaging Dev 4 - 6 wk 2 wk 3 More MFG based decision making
Packaging & graphics samples 4 wk 2 wk 2 Vendor-produced samples - Product only
Workspace Tools division of ACCO Brands, Inc. (c) 2008 ACCO Brands, Inc. All rights reserved.
11
Speed To Market Opportunities
Click to edit Master title style
Task
Discrete Task Analysis (Continued)
CER Approval 5 wk 1 wk 4 Can be Critical Path
Color Approvals (on Product)- Chips and Product 3 wk 1 wk 2 On-site approvalsProduct 3 wk 1 wk 2 On-site approvals
Color Approvals (on Graphics) 3-4 wk 1 wk 2 On-site approvals
Preliminary graphics & y g pProduct Name 6 wk 2 wk 4 Simple intent supplied by Swingline
Structural Testing 1-2 wk 3 days 1.5 Approved on-site
Total Potential Savings: =9 Months
Workspace Tools division of ACCO Brands, Inc. (c) 2008 ACCO Brands, Inc. All rights reserved.
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Speed To Market Opportunities
Click to edit Master title styleGeneral Comments:• Clearly defined decision making is crucial
Mi i h "P " ill l bl• Misconception that a "Process" will solve problems• Process is only a guideline; People run the projects• Tendency to focus on urgency of Timeline only after financial approval
Cultural Comments:• Build more trust between team membersBuild more trust between team members• Fear of failure prevails; Risk aversion• "Second-guessing" of functional areas • Non-empowered team members / Project Leadersp j
Workspace Tools division of ACCO Brands, Inc. (c) 2008 ACCO Brands, Inc. All rights reserved.
13
Speed To Market Opportunities
Click to edit Master title style Implementation
• Two Projects were Pilotedj
• Leadership team selects core team for each project
• Clear empowerment from the leadership team at project• Clear empowerment from the leadership team at project initiation
• Includes empowerment of one individual per functionalIncludes empowerment of one individual per functional area with decision making ability and communication to broader team
• Demonstrate success to broader organization and complete roll out
Workspace Tools division of ACCO Brands, Inc. (c) 2008 ACCO Brands, Inc. All rights reserved.
14
Consumer Research is Critical
Click to edit Master title styleConsumer Research Focus:1 Continually update our view of the market1. Continually update our view of the market
• Who, Why, How, and Where are people buying our products
2. Develop Strategies that leverage our knowledge of the marketplace• Product (Current and New)• Product (Current and New)• Brand• Promotional / Merchandising• Channel (Current and New)• Channel (Current and New)
Workspace Tools division of ACCO Brands, Inc. (c) 2008 ACCO Brands, Inc. All rights reserved.
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Understanding the consumer drives innovation
Click to edit Master title style
More Involved Less Involved
Focus on high involvement
2001 Segments(% Population)
C3
(13%)
C4(27%)
C5(14%)
C6
(18%)
C2(18%)
C1(10%)
2006 Segments(% Population)
C4(24%)
C5
(17%)
C6(18%)
C1
(14%)
C2(13%)
C3(14%)
– Reliability important
Key Shifts/ Themes
– Increased concern over performance
Workspace Tools division of ACCO Brands, Inc. (c) 2008 ACCO Brands, Inc. All rights reserved.
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Configuration Management Improvement
Click to edit Master title styleMixed ModelPros
•None Cons
D li t R R i d
Asia
• Duplicate Resources Required.
• Multiple touch points increases likelihood of different revision levels.
• All design changes require many touches at multiple sites.
Diffi lt t i i i t
Wheeling NogalesLincolnshire
LincolnshireEvolving
• Difficult to ensure revision consistency.
• Change history difficult to track.Supplier A Supplier B
Hong Kong
Wheeling NogalesCentral StoragePros
Supplier A
Storage
Supplier B
•Single location ensures revision control.
•Easy to “share” drawings with multiple sites.
•Design changes to single location only.
Si l t h i t f h
Cons
• IT systems limitations make web access essential.
Workspace Tools division of ACCO Brands, Inc. (c) 2008 ACCO Brands, Inc. All rights reserved.
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•Single touch point for changes.
Standardize Change Management
Click to edit Master title style• First Area of Focus• Reduce Complexity• Reduce Complexity• Increase accessibility and visibility
– Vendors– Traveling personnel– History available to all
• Increase change velocity • Controlled approvals and history
Workspace Tools division of ACCO Brands, Inc. (c) 2008 ACCO Brands, Inc. All rights reserved.
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Standardization of Change Management Processes within Aras as an Example
Click to edit Master title styleApproved by: Operations ManagerReviewed by: Quality Asegurance Manager
P-IN-002 ENGINEERING CHANGE REQUEST/NOTICE
Date: 10/09/03
Revision: APage 1 of 1
P-IN-002ENGINEERING
CHANGEREQUEST/
NOTICE
ECR REQUIREMENT
ORIGINATOR GETS ALL THEDOCUMENTATION NEEDED
ORIGINATOR SEND FORM PLUSATTACHMENTS TO SYSTEM
COORDINATOR
F-IN-002-1ENGINEERING
CHANGE REQUEST/NOTICE
ASSIGN NUMBER IN PRMSSYSTEM, LOG ON “ ECR STATUS”
FILE IN DRIVE I.
SEND DOCUMENTS BACK TOORIGINATOR OR PRODUCT
*ONLY IF ORIGINATOR IS FROMACCO CORPORATION
ECR RESPONSABILITIESPRODUCT ENGINEERING ALLCELL ENGINEER ROUTING, BOM’s,PURCHASING MAT. COST CHANGE OR VENDOR CHANGEMATERIALS OBSOLETE MATERIALMARKETING (CORP) BOM, DESIGN CHANGE, SPEC. CH. OBSOLETE MATERIAL.NPD (CORP) DESIGN CHANGE, SPEC. CHANGE Internal
IS THE ECNAPPROVED?
NO
YES
ORIGINATOR OR PRODUCTENGINEER*
GET APPROPRIATE SIGNATURES
ACCO CORPORATION
PRODUCT ENGINEER MUSTAPPROVE IT IN FIRST PLACE
CLOSE IT AS CANCELED(SYSTEM, FILE & I DRIVE)
CHECK THE TYPE OF CHANGE AND FOLLOWPROCESS ACCORDING WITH NUMBERS:- DESIGN CHANGE OR RELEASE…………….1- SPECIFICATIONS CHANGE OR RELEASE...2- BOM CHANGE OR RELEASE…………………3- ROUTING CHANGE OR RELEASE…………...4- MATERIAL COST CHANGE……………………5OBSOLETE MATERIAL…………………………..6
IF MORE THAN ONECHANGE OCCURSMUST BE FOLLOWAT THE SAME TIME
SYSTEM COORDINATOR CLOSETHE ECR AFTER 2 WEEKS IF NO
STATUS IS RECEIVEDInternal Global
Internal Domestic External
NOTIFYVENDOR
TOOLINGCHANGE
EVALUATINGTOOLINGCHANGE
1 3 4
CHANGE PRMSSYSTEM
P-IN-001DATA
PACKET
IS IT A VENDORCHANGE?
P-IN-008SAMPLES
VALIDATION
5
DELETE ITEMFROM THE
PRMS SYSTEM
IS THEREMATERIAL TO
ADJUST?
P-QA-008 NONCONFORMING
MATERIAL
6
NO
YES
P-IN-008SAMPLES
VALIDATION IF A CHANGE IN DATE IS
SEND NOTIFICATIONTO FINANCES
MAKE ROLL UP
IS IT THECOST
APPROVED?
YES
DATA PACKETIS REQUIRED?
P-IN-001DATA
PACKET
YES
NO
NO
YES
NO
Global External Global
ARE CHANGESOK?
PRINT NEW SPEC, SENDTO DOC. CONTROL TOFILE AND LOAD IT IN I
DRIVE.
VERIFY AND/ORCHANGE
IMPLEMENTATIONDATE
IMPLEMENT CHANGEIN CELL
REVIEWCHANGE AFTERIMPLEMENTATI
ON
COMPLETE F-IN-004 AND F-IN-009COST ANALYSIS
FORM
VERIFY ALLACTIONS
HAVE BEENCOMPLETED
GETSIGNATURES
TO CLOSEECN
END OFPROCEDURE
2
NO
YES
REQUIRED S.A. WILL SEND ANOTIFICATION (F-IN-002-3)TO SYSTEM COORDINATOR
CC PRODUCT ENGINEER
F-IN-002-5ECN
DISTRIBUTIONSHEET
F-QA-002-1QUALITY
RECORDSMASTER LIST
TEMPORALLY FILEORIGINAL ECN UNTILIMPLEMENTATION IS
COMPLETED ANDDISTRIBUTE COPIES
KEEP TRACKINGUNTIL ECN ISCLOSED AND
UNTIL YEAR END
F-IN-002-6ECR/ECN
TRACKINGREPORT
Workspace Tools division of ACCO Brands, Inc. (c) 2008 ACCO Brands, Inc. All rights reserved.
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Consolidating down to a single process change management
Click to edit Master title style
One Global Process (Internal and External):
Workspace Tools division of ACCO Brands, Inc. (c) 2008 ACCO Brands, Inc. All rights reserved.
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Ongoing Focus on Business Process Improvement
Click to edit Master title style• Aras Innovator
I l t d i 2004– Implemented in 2004– Run hosted at 3rd party data center
S ifi d t i l l t d• Specified custom service level agreement andup-time requirements
• Administrative functions like back-up, etc off loadedAdministrative functions like back up, etc off loaded from IT
– Process improvements around the world– Expanding usage based on business priorities
Workspace Tools division of ACCO Brands, Inc. (c) 2008 ACCO Brands, Inc. All rights reserved.
21
Ongoing Focus on Business Process Improvement
Click to edit Master title style• Aras Innovator (Today)– Global Document ControlGlobal Document Control
• Single consolidated location, master versions• Web-based access and coordination• Secure collaboration• Access for Asia, Europe, and the Americas
– Includes suppliers in Asia– Protects critical IP
• Eliminates miscommunications & mistakesEliminates miscommunications & mistakes– Provides information for ACCO Innovation
process, results in innovative new designs
Workspace Tools division of ACCO Brands, Inc. (c) 2008 ACCO Brands, Inc. All rights reserved.
22
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Ongoing Focus on Business Process Improvement
Click to edit Master title style• Aras Innovator (Today)– Product Change Managementg g
• Online change workflows with simple email notifications & alertsS• Streamlines international interaction
• Makes status visible (in the office, on the road, etc)• Standardized the process• Standardized the process• Global supplier participation
– Suppliers can initiate a changepp g– Suppliers have opportunity to review proposed changes
– Reduced change cycle time by over 50%
Workspace Tools division of ACCO Brands, Inc. (c) 2008 ACCO Brands, Inc. All rights reserved.
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Reduced change cycle time by over 50%
Ongoing Focus on Business Process Improvement
Click to edit Master title style• Aras Innovator (Today)– Corrective ActionsCorrective Actions
• CAR Forms with workflows and email notifications• Closed-loop corrective actions• Root cause resolution• Supplier CAR (SCAR)
– Better supplier accountability– Global supply chain continuous improvement– Provides data for supplier performance & contract pp p
negotiations
• Faster problem solving overseas and better results and data
Workspace Tools division of ACCO Brands, Inc. (c) 2008 ACCO Brands, Inc. All rights reserved.
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and data
Ongoing Focus on Business Process Improvement
Click to edit Master title style
• Aras Innovator (Today)– Information and data in Aras Innovator used to
drive Consumer Product InnovationsI ti E lInnovation Example:• Redesigned electric staplers, making 8 changes in
response to issues identified through Aras Innovatorresponse to issues identified through Aras Innovator, such as changes to the “clinch wings” - arms on the base of the stapler - to reduce instances of jamming
– Faster Time to Market• Cut development time by months
Workspace Tools division of ACCO Brands, Inc. (c) 2008 ACCO Brands, Inc. All rights reserved.
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Ongoing Focus on Business Process Improvement
Click to edit Master title style• Aras Innovator (Tomorrow)
Ne Prod ct Program Management– New Product Program Management –in-process now
• Pilot Starting this month• Pilot Starting this month• Manage phase-gate process• Global collaboration on deliverables• Milestones• Single status dashboard
– Plan is to reduce time to market even more
Workspace Tools division of ACCO Brands, Inc. (c) 2008 ACCO Brands, Inc. All rights reserved.
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ACCO Brands
Click to edit Master title style
Thank You
Aras Community NetworkMay 7, 2008
Workspace Tools division of ACCO Brands, Inc. (c) 2008 ACCO Brands, Inc. All rights reserved.
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