DISCOVERY DAY – AGENDA · Co-located with Jaguar Land Rover, Tata Motors European Technical ... 2008/09* 2009/10* Q1 '2010 Q2 '2010 Q3 '2010 Q4 '2010 Q1 '2011 Q2 '2011 55 60 65

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DISCOVERY DAY – AGENDA

09:15 Registration and coffee

09:45 Welcome and introductions

09:55 WMG in context - Dr Paul Marshall

10:15 The Beer Game: Supply chain principles in practice - Dr Mark Johnson

12:00Group 1: Automated Manufacturing, Battery and CAV demonstrator tours - Dr Paul Marshall Group 2: Perspective on improving supply chain integration – Prof Jan Godsell / Christine McNeill / Hugh Boyes

13:00 Networking lunch

13:45Group 2: Automated Manufacturing, Battery and CAV demonstrator tours - Dr Paul Marshall Group 1: Perspective on improving supply chain integration – Prof Jan Godsell / Christine McNeill / Hugh Boyes

14:45 Role of contracts in enabling supply chain integration – Nigel Blundell

15:15 Ideas lab: Role of supply chain to transform construction

16:30 Close

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Experience the core concepts that underpin supply chain management

Discuss how improved supply chain integration could boost the UK construction.

Explore the WMG Automated Manufacturing, Battery and Connected Autonomous Vehicle (CAV) and

understand how new technologies have the potential to transform construction supply chains

Reflect on new perspectives, develop new collaborations, and co-create new ideas

DISCOVERY DAY – OBJECTIVES

In the context of the transform construction challenge you will:

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WMG in context

Dr Paul Marshall

DISCOVERY DAY – MANAGING SUPPLY CHAINS FOR SUCCESS

Welcome to the University of Warwick and WMG

2019

The University of Warwick

• Founded in 1965 on a green field site

• A premier division and research-led university

• Consistently ranked in the top ten of UK universities in the national league tables on all metrics

• World University Ranking (2019) – 54th

• Guardian UK Ranking (2019) – 8th

• Most targeted UK University by top 100 Employers (2019) – 4th

• International Partnerships: Monash University, Purdue University for example

• Total number of students 26,531

• Total number of staff 6,634

▶ University turnover £573.6m (2016), £591.0m (2017), £631.5 (2018)

▶ Fees & educational contracts £316.6m

▶ HEFCE Grants: £59.6m (including13.3m teaching, £36.3m research)

▶ Competitively won research grants & contracts £117.1m (2016), £120.3m (2017), 126.5m (2018)

▶ Other operating income £123.0m

▶ Other £5.8m

▶ WMG Turnover £62.0m (2016), £75.0m (2017), £89.0m (2018)

▶ WMG Research £31.6m (2016), £38.0m (2017), £46.0m (2018)

– Innovate UK income = 2x RC income

▶ 37% of University research income, 95% competitively won

▶ 73% of University industry/commercial research income (2017)

▶ WMG Research Portfolio £110m (£211m including “in-kind” support)

Some Figures

An academic department within the science faculty

Established in 1980 by Professor Lord Bhattacharyya as Warwick Manufacturing Group to facilitate technology transfer and knowledge creation for Industry

650+ staff (800+ university and industry) working in 9 buildings

Training over 2,100 individuals p.a. in the UK and abroad (from school to post experience)

Co-located with Jaguar Land Rover, Tata Motors European Technical Centre & Tata Steel UK Research Centre

Professor Lord BhattacharyyaFounder and

Chairman of WMG

WMG

EDUCATION

• Over 2100 individuals currently studying at WMG. 1200 full time MSc students & over 900 on Professional Programmes.

• Centres in UK + China, Cyprus, India, Malaysia, Singapore, Thailand and Turkey

• Custom (bespoke) programmes, e.g. for Rolls-Royce, AstraZeneca, Network Rail, JLR, Lloyds Banking Group, Ericsson, BAE Systems, UTC Aerospace Systems

• Part-time ‘open’ MSc & BEng programmes

• EngD and PhD Research Degrees

• 2 WMG Academies for Young Engineers

RESEARCH

Contributes 37% of the University’s total research activityCovering 5 main research themes:-Connected & Autonomous Vehicles; Energy; Materials & Manufacturing; Data Science, Digital & Business Transformation; HealthcareR&D Testing FacilitiesHigh Value Manufacturing CatapultHost to the Advanced Propulsion Centre HubNational Automotive Innovation CentreEnergy Innovation Centre

WMG: Over 650 people across ten buildings on campus, £89m annual research and education programme

ENGINEERING & ENERGY STORAGE

CYBER & DIGITALTECHNOLOGIES

MANAGEMENT & SUPPLY CHAIN

HEALTH & WELLBEING

1 2

34

WMG Educational Portfolio

Developing People

A combination of 10 modules plus an individual research project relevant to industry needs. Open to UK and Overseas students, there are currently about 1200 students on these programmes.

WMG has two centres for doctoral training: the International Doctorate Centre for High Value, Low Environmental Impact Manufacturing and theEPSRC Centre for Doctoral Training in Sustainable Materials and Manufacturing.

International Doctorate Centre

Developing and improving employees, and extending the capabilities of the businessTwo main pathway streams:

Open Programmes – providing exposure to delegates from other organisations/ sectors Custom Programmes – developing a customised programme to fit specific business challenges Technical Accreditation Scheme – Multi-university, flexible master’s programme

Programme options: short courses, master’s foundation and full master’s degrees

Strategic partnership between WMG and School of Engineering

WMG leading courses (3 years full-time): Automotive EngineeringEngineering Business ManagementManufacturing and Mechanical Engineering

Applied Engineering Programme

4 years part-time ‘Open’ undergraduate degreeBEng in Applied EngineeringCompany sponsored degree programmeModular format with block release

Part-time Professional and Executive Programmes

International Doctoral Centres

Full-time Master’s Programme

Undergraduate Degrees

University Technical College1000 students ages 14 – 19Studying Engineering with Digital Technology/ICTCurriculum driven by employers40 employers engaged including JLR, National Grid, Prodrive, Ricardo, Bosch, Tata, Dassault and SMEsNew buildings opened September 2014 (Coventry) & 2016 (Solihull)

WMG Academy for Young Engineers

WMG Degree Apprenticeship Centre - Phase 1

Degree Apprenticeships

TRL 1 TRL 2 TRL 3 TRL 4 TRL 5 TRL 6 TRL 7 TRL8 TRL 9

WMG Research Reach

Basic principles observed and

reported

Technology concept and/or application

formulated

Analytical and experimental critical

function and/or characteristic proof of

concept

Component and/or validation in laboratory

environment

Component and/or validation in relevant

environment

System model or prototype

demonstration in a relevant environment

System prototype demonstration in an

operational environment

Actual system completed and qualified through

test and demonstration.Actual system proven

through successful operations

66% of WMG research

Universities and research organisations

Industry and companies

Market readiness (Technology Readiness Level)Technology is

successfully in service in multiple forms

MRL 1 MRL 2 MRL 3 MRL 4 MRL 5 MRL 6 MRL 7 MRL8 MRL 9

Basic manufacturing

implications identified

Capability exists to produce

systems, components in

production representative environment

Initial production is underway

Full/volume rate production

capability has been

demonstrated

Full production is demonstrated


integrated system in production

relevant environment


prototype in production

relevant environment

Capability exists to produce the

technology in lab or prototype

A manufacturing proof-of-concept

developed

Manufacturing concepts and

feasibility determined

Production readiness (Manufacturing Readiness Level)

Funding sources

Private sector fundsInnovate UK (TSB)

Research councils (EPSRC, etc)

Research themes

Connected & Autonomous Vehicles

Energy Materials & Manufacturing Health SystemsData Science, Digital &

Business Transformation

2008/09* 2009/10* Q1 '2010 Q2 '2010 Q3 '2010 Q4 '2010 Q1 '2011 Q2 '201155

60

65

70

75

80

85

90

95

100

Strok

e Care

KPI

Time (Annual & Quarterly)

Methodology Developed: Pathway Variation Analysis (PVA)Implementation Results at the University Hospitals Coventry and WarwickshireProblem: Acute stroke patients diverting from stroke pathway in ED resulted in hospital unable to meet DoH performance

target (80% of stroke patients spend >90% of hospital stay in stroke unit)Results: PVA-driven results leading UHCW to meet target first time since target mandated.

Potential predicted Impact of FND***

80/90 KPI

Oct

Nov

Dec

Project Duration

2&3

Problem of patients diverting from care pathway in ED

identified & discussed with hospitalDeveloped system

engineering models of acute stroke care Ju

lyAu

gSe

p

1

1

Predicted Impact of ***

• UHCW Quality Account 2009/10

** Sample comprised ofacute stroke patients treated at UHCW.

*** Predicted impact of focal neurological deficit (FND) patients on stroke care 80/90 KPI

Time (Annual & Quarter)

Stroke Care KPI**

2011 - Q1 84.97

2010

Q4 84.24

Q3 77.12

Q2 75.66

Q1 73.00

2009/10* 62.20

2008/09* 56.76

Suggestion Re-designed sequence of clinical decision-making by having ED clinicians concentrate their clinical assessment on rapidly detecting presentations of focal neurological deficits (FND) which led to improved diagnostic accuracy of stroke referral from ED to stroke team.

To manage the patient flow due to increased number of stroke patients correctly identified in ED:

Suggestion Increase hyper-acute stroke unit capacity from 4 beds to 6 beds to manage increased patient flow & eliminate bottlenecksSuggestion Balance bed capacity to manage patient flow variation by relocating entire hyper-acute stroke unit into the acute stroke ward

(1): Patient diverting from care pathway

(2): Balance stroke unitbed capacity tomanage increasedincoming patient flow & variation

1

23

Jan

Feb

Mar

Apr

May

Stroke patient pathway to improve clinical outcomes and meet performance targets

Simulation of accident and emergency to enable effective resourcing

fully integrated process for pharmaceutical tablet production with GSK

design for manufacture and flexible tooling into Airbus A380 and A350

construction as a manufacturing process with Persimmon (Space 4) 50% improved energy consumption

Multi Sector

Connected and Autonomous Vehicles

Enabling zero emission, zero congestion, zero accidents Enabling in-vehicle wellbeing and health connectivityExploiting Big Data, Artificial Intelligence, Data Analytics Lead £25M Midlands Future Mobility CAV Testbed and scientific understanding behind CAV and 5G Trials – Coventry, Milton Keynes, Midlands etc. UK Mobility Data Institute (£20M) announced in Budget 2018

Europe’s first multi-million pound Smart City Mobility Centre at Wellesbourne

campus in new buildings

Driverless capable vehicle testing on specially designed 5G communications

network on University campus

Energy - Electric and Hybrid Transport

Creation of new battery chemistries with vastly improved power / energy

The first centre focused on design, development and manufacture of battery systems launched 15 years ago

Innovative alternative battery structures, architectures and power electronics providing long vehicle range

Powering a new industry for the UK from the London Routemaster, Jaguar I-Pace and excavators to marine thrusters and light rail hybrid transport

UK Battery Industrialisation Centre

£108M Faraday Battery Challenge centreto drive the electrification agenda and position the UK as leader of battery development

Open access centrefor pioneering battery technologiesWhole supply chain and life cycle

Addressing pressing skills requirement– 1,500 in a battery factory

Technical reviews with JLR and Nissan led to agreed parameters for cell product design

Building construction commenced 2018

Digital Transformation - Smart and Connected Plant

Exploiting business opportunity from big data and Artificial Intelligence

Integrating research in sensors, data analytics and intelligent systems into new products, process and services

Putting substance behind Industry 4.0 across sectors

Major test-beds and digital

twin implementations

The High Value Manufacturing CatapultA consortia of 7 world-class research centres have formed the first High Value Manufacturing Catapult working together to:

Drive growth in manufacturing

Helping companies of all sizes take new technologies to the market

Accelerate and de-risk innovation Providing access to:

World class equipment

The UK’s best research knowledge

Unique mix of highly experienced engineers, scientists, technicians

A collaborative environment for innovation -cross sector; cross technology; and across the whole supply chain

AFRC

CPI

NAMRC

AMRC

MTC

NCC

KEEP IT SIMPLE

DE-RISK INNOVATION

MAKE A DIFFERENCE

Dedicated team• Multidisciplinary• Industry experienced

Simple for SMEs•Prepaid by Govt. grants•Processes hidden

Innovative•Exploits technology & Advances capability

Makes a difference• Must be collaborative and

have impact, right timed and achievable

Networks•‘Innovation eco-system’

SME needs•Time•Skills•Resources•Risk/ Vision/Disruption•Processes •Getting to product•the right markets

Society Challenge•Clean technologies•Dynamic supply chains•Global competition•Urban mobility

WMG Capability•Advanced manufacturing•Advanced materials•Low carbon mobility•Energy innovation

Our Approach with SMEs

Many options for working with WMG

• Joint collaborative R&D in one of our research consortia• Company specific R&D projects• Knowledge Transfer Partnerships• Open courses and specially tailored postgraduate education programmes• Education of staff - identify staff to attend relevant postgraduate or post experience modules• Graduate recruitment - access to Engineering Doctorate and Masters students• Showcasing in conjunction with key academics

Potential partner benefits

• Unique capabilities• Early access to IP• Extended networking in multiple sectors

Working with WMG

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The Beer Game: supply chain principles in practice

Dr Mark Johnson


System dynamics (aka the Beer Game)

Dr. Mark Johnson

The board…

Start up

1. Pick a name for your team.2. Decide which team members will play the

positions of Retailer, Wholesaler, Distributor, and Factory.

3. Write on your Recording Form the name of your team and your position.

Start up (continued)

4. The object of the game is to minimize the companies total costs. At the end of each week, costs are incurred in the following two ways:

• For each case of backlogged beer, there is a stock-out cost of £2.• For each case of beer in inventory, there is a carrying cost of £1.

Start up (continued)

5. No communication is permitted between the Retailer, Wholesaler, Distributor, and Factory

6. During each week, the Retailer is the only one to see the customers’ actual demand. The Retailer is prohibited from telling the demand to the Wholesaler, Distributor, and Factory.

7. The game will continue week-by-week until you get bored and/or need to leave…

Supply chain game - stepsSTEP 1: “Advance Delays and receive Inventory.” Advance the inventory in the two Delays to your right, adding incoming beer (if any) to your Inventory.STEP 2: “Look at Incoming Order, and fill Backlog & Order.” Look at the Incoming Order and, to the extent possible, fill the Backlog first and then the Incoming Order.STEP 3: “Record Inventory or Backlog.” On your form, record new Inventory or Backlog.STEP 4: “Advance Order Slips, and Factory makes beer.”

Retailer: Place Incoming Order Card face-down in the pile of Used Order Cards.

Wholesaler & Distributor: Discard the Incoming Order Slip and advance your successor’s Order Placed Slip to your Incoming Order.

Factory: Discard the Incoming Order Slip and advance your successor’s Order Placed Slip to your Incoming Order. Also, make new beer by placing the quantity on the Production Order Slip into the right-most Production Delay, and then discard the Slip.

STEP 5: “Place and record your Order.”

Retailer, Wholesaler, & Distributor: Write your next order on a new Order Placed Slip, place it face-down in the Order Placed Box, and record the quantity on your form.

Factory: Write your next order on a new Production Order Slip, place it face-down in the Production Order Box, and record the quantity on your form.

Step 2: Example #1

STEP 2: “Look at Incoming Order, andfill Backlog & Order.”

(Orders to Fill) = (Current Backlog) + (Incoming Order)

If (Current Inventory) >= (Orders to Fill), then(Quantity Shipped) = (Orders to Fill)(New Inventory) = (Old Inventory) - (Quantity Shipped)(New Backlog) = 0

If (Current Inventory) < (Orders to Fill), then(Quantity Shipped) = (Current Inventory)(New Inventory) = 0(New Backlog) = (Orders to Fill) - (Quantity Shipped)

INCOMINGORDER

CURRENTINVENTORY

QUANTITYSHIPPED

(Orders to Fill) = 0 + 5 = 5(Current Inventory) >= (Orders to Fill)(Quantity Shipped) = 5

(New Inventory) = 8 - 5 = 3(New Backlog) = 0

5

5

0

CURRENT BACKLOG(from Form)

8

Step 2: Example #2





INCOMINGORDER

CURRENTINVENTORY

QUANTITYSHIPPED

(Orders to Fill) = 5 + 3 = 8(Current Inventory) >= (Orders to Fill)(Quantity Shipped) = 8

(New Inventory) = 10 - 8 = 2(New Backlog) = 0

3

8


5

10

Step 2: Example #3





INCOMINGORDER

CURRENTINVENTORY

QUANTITYSHIPPED

(Orders to Fill) = 0 + 10 = 10(Current Inventory) < (Orders to Fill)(Quantity Shipped) = 6

(New Inventory) = 0(New Backlog) = 10 - 6 = 4

0

66


10

Step 2: Example #4





INCOMINGORDER

CURRENTINVENTORY

QUANTITYSHIPPED

(Orders to Fill) = 16 + 10 = 26(Current Inventory) < (Orders to Fill)(Quantity Shipped) = 4

(New Inventory) = 0(New Backlog) = 26 - 4 = 22

4


16

10

4

Supply chain game - stepsSTEP 1: “Advance Delays and receive Inventory.” Advance the inventory in the two Delays to your right, adding incoming soda (if any) to your Inventory.STEP 2: “Look at Incoming Order, and fill Backlog & Order.” Look at the Incoming Order and, to the extent possible, fill the Backlog first and then the Incoming Order.STEP 3: “Record Inventory or Backlog.” On your form, record new Inventory or Backlog.STEP 4: “Advance Order Slips, and Factory makes soda.”

Retailer: Place Incoming Order Card face-down in the pile of Used Order Cards.

Wholesaler & Distributor: Discard the Incoming Order Slip and advance your successor’s Order Placed Slip to your Incoming Order.

Factory: Discard the Incoming Order Slip and advance your successor’s Order Placed Slip to your Incoming Order. Also, make new soda by placing the quantity on the Production Order Slip into the right-most Production Delay, and then discard the Slip.

STEP 5: “Place and record your Order.”

Retailer, Wholesaler, & Distributor: Write your next order on a new Order Placed Slip, place it face-down in the Order Placed Box, and record the quantity on your form.

Factory: Write your next order on a new Production Order Slip, place it face-down in the Production Order Box, and record the quantity on your form.

Supply Chain volatility – the bullwhip effect

From: Lee et al. (1997)

Causes of the bullwhip effect

• Demand forecast updating• Order batching• Price fluctuation• Rationing and shortage gaming

From: Lee et al. (1997)

Countering the bullwhip effect

Information sharing Channel alignment Operational efficiency

Demand forecast updating

• Understand system dynamics• Point-of-sale data• ERP systems• Computer Assisted Ordering• E-commerce

• Vendor Managed Inventory• Encourage information sharing• Deliver direct to the customer

• Lead-time reduction• Supply chain level inventory

control

Order batching • ERP systems• E-commerce

• Mixed, large batches• Delivery in fixed time windows• Order consolidation• Outsource to 3PL’s

• The use of ERP systems and E-commerce should reduce transaction costs

Price fluctuation • Continuous low price

• Understand supplier costs –reduce through improvement teams

• Hedge volatile goods

Rationing and shortage gaming

• Share demand, capacity and inventory data

• Long-term relationships leads to allocation based on past sales After: Lee et al. (1997)

The need for a system view: the blind men and the elephant…

Summary

• The bullwhip effect is demand volatility that occurs between tiers;• Supply chains are networks and need to be managed dynamically;• Communication across tiers is critical.

Page 43

Page 44

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Perspective on improving supply chain integration

Prof Jan Godsell


Improving Supply Chain Integration in Construction

Jan GodsellProfessor of Operations and Supply Chain Strategy

The journey…

What we borrowed from

FMCGWhat we learnt How we made

sense of itVision for the

future

What we borrowed from FMCG

Went back to basics…

5 Lean Principles

1. Understand customer value2. Develop value streams3. Make it flow4. At the pull of the customer5. In pursuit of perfection

What we learnt

2 key design principles for consideration

1. Value chain or ‘end to end’ value chain orientation Starts with the customer Minimum 3 echelons

2. ’Innovation through repeatability’Demand profiling (base: surge)Differentiated supply chain practices to support different demand profiles

Principle 1: End-to-end vale chain perspective

Principle 2: Delivering innovation through repeatability

70-80%

20-30%

Base

Surg

e

Project Planningorientation

# Suppliers Relationship Type of Contract

Innovative Emergent work (flex to budget and needs). Planning horizon 3 – 12 months.

Single supplier Collaborative oncesupplier selected (competitive)

Collaborative (encourage early involvement,design & build)

Repeatable Long termvisibility. Planning horizon 3 – 60 months.

Multiple (typically 4 -8 suppliers) through framework agreements

‘Automated’(executed through preferred list of suppliers through framework)

Standard (like manufacturing for ‘call off’ orders)

84% projects were predictable, 56% repeatable (49% wholly)…

Major ProjectsProjects

NonRepeatable

Partially Repeatable Repeatable

NotPredictable

05(5%)

00(0%)

02(2%)

Predictable 3(3%)39(35%)

3(3%)9(8%)

4(4%)45(41%)

Notes1. Major Project > £10,000,000 (lumpy demand) and Projects < £10,000,000 (non-lumpy demand)2. Number of projects (total = 110) reported and percentage in parenthesis

How we made sense of it

Deviating real-life

observation

Part

of t

he re

sear

ch Theo

retic

alEm

piric

al

Prior theoretical knowledge

Theory matching

Theory suggestions

Application of conclusions

Abductive research process…

After Kovács & Spens (2005)

It needs to start at the portfolio management level…

P1: Strategic planning (i.e. the ability to recognize the different demand profiles of individual projects, and groups thereof) is a portfoliomanagement capability.

(Patanakul and Milosevic, 2009)

Identified new type of programme managementType of Project Grouping (after Patanakul and Milosevic, 2009)

Type of projects within grouping (after Brady and Davis, 2016)

Type of demand profile of projects within grouping (after Syntetos et al., 2005)

Percentage of 110 projects in JV (not excluded 11% partially repeatable projects)

Single Project (Management) Routine / Innovative Low intermittence – high lumpiness

3%

Multiple Project (Management)

Routine Low intermittence – Low lumpiness

35%

Traditional Programme (Management)

Routine / Innovative Low Intermittence – Low / High lumpiness

NA – study was of a portfolio of projects

Programme Management of Repetitive Projects

Routine High intermittence – Low / High Lumpiness

4% + 41% = 45%

P2: Projects that contribute to the strategic upgrade of a particular aspect of infrastructure, should beconsidered as a programme of inter-related repeatable projects, that will benefit in delivery from ‘economies ofrepetition’.

Improving effectiveness and efficiency

P4: Economies of repetition developed through effectivedelivery of programmes of repeatable projects, can fostergreater effectiveness in the delivery of innovativeprojects through economies of recombination.

P3: The greater the effectiveness of the strategic planningportfolio management capability to identify differentdemand profiles of individual and groups of projects, thegreater the efficiency of delivery.

Vision for the future

5 key lessons

1. Broader applicability • Managing portfolio of infrastructure projects, not just construction• Off-site as a programme of repeatable projects

2. Starts with the ability to recognize different types of project profiles at the portfolio management level

3. Effectiveness in portfolio management will lead to effectiveness in delivery4. End customers (e.g. HE, Utility Companies, Regulators) need to engage with their

supply chain in a way that will enable the management of a programme of repetitive projects

5. Innovation through repeatability, only a small percentage of projects require ‘innovation’

@JanGodsell@WMGSupplyChain

#[email protected]

www.mychainreaction.co.uk

Keep in touch…

Next SCIP networking event: Tuesday 10ith SeptemberBeyond the Hype: Blockchain in supply chains

http://www2.warwick.ac.uk/fac/sci/wmg/research/scip/networking/

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Christine McNeill


C R A F T E D B Y C O N C E N T R A

June 2019

SupplyVue in ConstructionUsing SupplyVue to support introduction of traditional Supply Chain Management

techniques in the construction industry

65S U P P L Y V U E B Y C O N C E N T R A

Introducing SupplyVueProduct overview

SupplyVue is a cloud-based analytics solution that overlays client’s existing systems and enables them to achieve a data driven step change through radically better knowledge of their supply chain. No overhaul required. Just a sharper set of insights into what’s really happening and the ability to simulate the future – then act.

Developed by supply chain experts and Warwick University, SupplyVue incorporates best practice principles. It will reveal new opportunities for supply chain transformation wherever a business is on its journey of change.

A holistic analytics platform for the digital age

S U P P L Y V U E B Y C O N C E N T R A 66

Product overview

SupplyVue provides a flexible data management solution to integrate data from multiple source systems quickly

Data flow

ERP

Planning System

Other sources

ETL management & SV administration

Staging Base facts Aggregate for reporting

Presentation DW

SV portal DB

• Extracted from source systems

• Transformed to conform to feed specifications

• Files sent via secure file transfer

• Data is loaded into SV• Error checking is

performed

1 2

• Data is cleaned and aggregated before use

• Preconfigured analyses• Modelling and

segmentation

3 4 5

• Out-of-the-box dashboards

• Scenario modelling

Secure file transfer

Extract and transform

Load and error check

Aggregate and analyse

Visualise and scenario model

CSV

User interface

Admin


Product Overview

Our standard data feedspec ensures we can move quickly into the analysis phase

Fact Dimension Mapping

Data feeds

Feeds • Daily stock• Weekly stock policy• Daily movement STO• Weekly Unconstrained DRP• Weekly Actual Production• Weekly Scheduled Production• Weekly Planned Production• Daily sales• Monthly forecast• Weekly forecast• Stock in transit

• SKU master• Location master• Site master• Stock type master• Movement type master• Product Master• Unit of measure master• Profit centre master• Work centre master• Forecast type master• Channel Master• District Master• Reporting Calendar

• Product groupings• Location grouping• Site stock flow• Unit of measure conversion• Work centre capacity• Production parameters • Change Over • Production plan template


Product overview

Engineered around a standard management approach to enable change within your organisation

DiagnoseIdentify problem areas and root causes

ModelSimulate supply chain policy changes to assess impacts and benefits

RevealVisualise and

analyse all areas of the supply chain

TrackSet targets and

develop a roadmap of improvements

SupplyVue will reveal new opportunities for supply chain improvement, provide the explanation of why those opportunities exist and what the root causes are that need to be addressed

Its then possible to model alternative solutions, simulate and evaluate options enabling businesses to align on the course of action they want to take

This breaks through the inertia that businesses suffer from, so you can speed the rate of change in any business, become more agile and responsive, and breakthrough to new levels of performance


SupplyVue’s unique combination of capabilities provides a data driven approach to supply chain diagnostics

Product overview

SupplyVue provides packaged insights and analysis to enable fact based agreement and understanding of current supply chain

performance. Alignment on the current situation.

Automated Analysis

Creating and evaluating different replenishment approaches and scenarios. Simulating the results to show how the supply chain

would have performed if those approaches were adopted.

Intelligent Design

Reporting, Diagnostics and Insights Scenario Planning, Simulation and Evaluation

• Demand Profiles• Forecasting Performance• Delivery and Service Performance• Inventory Analysis• Replenishment Process Performance• Manufacturing Performance• Inbound Supply Process Performance

• Demand Segmentation Tool• Forecast Accuracy Improvement Sizing• Production sequencing tool• Production wheel builder• Production plan simulation• Production plan policy recommendations• Network Level Inventory Modelling• FOC/FOQ and Kanban process modelling• Inventory opportunity assessment• Inventory management policy parameter

recommendations


Use cases

AutomatedAssessment

Built in best practice analysis identifying issues, sources of variability and opportunities for improvement. Identifying

value loss in the supply chain

Planning Control Tower

Template network planning. Delivering predictable, stable

synchronised product flow. Ideal demand plans for underlying

operations. Control tower visibility.

Planning Digital Twin

Modelling, simulation and scenario evaluation. Testing

new ways of working to increase effectiveness and

reduce value loss

Holistic analytics solution for the digital age

Assess the performance of supply chains identify

opportunities for improvement and the root cause or key

levers that can be pulled to release values.

Model and evaluate new operating scenarios. Simulate the approaches to test robustness of solutions and confirm business benefits. Define change projects and associated

business cases

Model and define the ideal planning template for each individual supply

chain within your network. SupplyVue will constrain the plan according to

your business rules and provide monitoring and governance reporting

Supply Chain Centre of Excellence

Supply Chain Development Supply Chain Planning

SupplyVue can be deployed in several ways. As a functional excellence assessment and supply chain development solution, or as a network planning solution


Typical benefits

SupplyVue has delivered step change levels of performance in multiple industries, and in organisations of many different shapes and sizes

Portfolio and product analysis

20-60%FG inventory reduction

3-5%Manufacturing cost reduction

1-3%Materials cost reduction

20-40%Material inventory reduction

3-5%Transportation cost reduction

3-5%Warehouse cost reduction

20%Headcount reduction

Planning analysis

Manufacturing analysis

Logistics analysis

Organisationanalysis


Typical benefits

Sample Case Studies

Provide end-to-end supply chain visibility at scale

Create a stable plan using an ideal planning template

Identify the cause of poor inventory availability

Enable a supply chain improvements programmeA global consumer goods company was undertaking a supply chain improvements programme across 150 markets with the goal of aligning operational activities with the strategic direction of the organisation.SupplyVue provided accurate and insightful diagnostic and planning information to improve the demand and supply planning processes, leading to a $200m reduction in working capital.

A large automotive parts manufacturer was holding too much of the wrong stock and not enough of the right stock, resulting in a multitude of issues from disappointed customers to over-flowing warehouses.Insights derived from SupplyVue permitted a correction of the demand planning process and an improvement in forecast accuracy. This led to supply efficiency gains, as well as correcting the issue with low inventory levels and associated customer service problems.

A global personal goods company that sells c.300k SKUs in 180 markets lacked end-to-end visibility across the supply chain and were unable to compare like with like because data were scattered across multiple sources.The data from three different ERP instances was reconciled and loaded into SupplyVue, providing them with end-to-end visibility and out-of-the box assessments of key supply chain processes by segment.

A global drinks manufacturer had issues with service reliability, despite high inventory levels. High forecast accuracy at market level was masking poor accuracy at depot level. Depot level forecasts were not accurate enough to drive replenishment policy.SupplyVue modelled a pull replenishment policy which reduced inventory levels and improved service.

A large industrial adhesive manufacturer was having issues with unplanned and costly changeovers.SupplyVue reviewed the production sequence using the line changeover matrix and demand plan, identifying the lowest cost manufacturing sequence. Using this ideal sequence, SupplyVue used production wheel methodology to create a 16-week production plan that resulted in 25% reduction in changeover time, reduced costs and inventory levels.

Identify the correct replenishment policy


Approach

Our standard approach will lead to identified benefits in 6 – 8 weeks

Mobilise Connect & Baseline Process Analysis, Model & Design Prioritise & Plan

Engage and enthuse

stakeholders, confirm

analytics scope/priorities

, identify responsible data owners

Connect advanced analytics platform to source systems and

baseline Supply Chain performance

Qualitative & quantitative review of existing business processes

Leverage market-leading predictive analytics and scenario modelling to identify

optimisation opportunities and benefitsDesign new processes to realise benefits

Prioritise opportunities and develop

implementation plans to realise benefits

Week 0 Week 1 – 2 Weeks 3 - 6 Week 7 - 8

Benefits identified in 6 – 8 weeks from data capture

C R A F T E D B Y C O N C E N T R A

June 2019

SupplyVue in ConstructionCase Study


Case study

Using traditional supply chain management techniques to unlock value in Construction • Working with Warwick we set out to test if traditional supply chain management techniques could be used to

bring value to the construction industry

• Worked with two different companies

− Local UK supplier to domestic builders

− International supplier to commercial builders

• Demand profile analysis

• Replenishment policy review

• Inventory optimisation


Case study

Demand segmentation revealed opportunities to introduce forecasting for some parts of the business

Source: Janel Godsell, University of Warwick

Both businesses had traditionally been managed as single entities with one set of policies across the business.Analysis revealed that in fact there were two distinct business areas:• New build or project work

• Regular and repeatable• Limited number of FG options• Forecastable• Opportunity to synchronise demand and supply• Introduce Supply Cycles

• Retail or repairs related work• Unpredicatble• Prone to surge• Many more FG options• Opportunity for more agile approach• Align Supply Chain capability with the service required


Analyse at the correct grain Case study

• Daily variability was high across both businesses even for the “base” business however looking at the data in weekly buckets which matched the planning cycle revealed very stable demand

Inventory levels by network tier


Inventory cover was varied with no clear policy setting Case study

A1 Smooth – 34 days A1 Erratic - 25 days

A2 Intermittent – 39 days A1 Erratic and Intermittent – 72 days


Inventory cover was varied with no clear policy setting Case stucy

B1 Smooth – 37 days

B2 Erratic & Intermittent – 44 days

B2 Erratic – 73 days

B2 Intermittent – 56 days


Inventory cover was varied with no clear policy setting Case study

C3 Smooth – 512 days C2 Erratic – 234 days

C3 Intermittent – 160 days C3 Erratic and Intermittent – 313 days


For the base business a fixed order cycle, ‘runners, repeaters, strangers’ planning approach was recommended

Case study


Case study

Synchronising production wheelsImagine each product manufactured by a particular factory is assigned its own colour. Over a two-week period, the factory expects to manufacture all its products at least once. Each time a production line changes product, the colour of the new product is drawn on a calendar. A standard ‘inside-out’ approach sees operations managers constantly chopping and changing their production schedule in response to demand.

As such, the resulting calendar is likely to emerge as a disordered jumble of colours. In contrast, an ‘outside-in’ approach sets clear rules on how and when orders are produced. The result is a discernible and predictable colour pattern because products follow one another in a set sequence along the factory’s production line. Ideally, the space between colours shortens too as the factory gets increasingly used to the production cycle and goes through it quicker and quicker.

Inside out: respond to demand Outside in: govern the demand


SupplyVue optimised the production sequence and a product wheel to enable the factory to smooth demand and run in a stable manner

Case study

• Runners and repeaters on a fixed order cycle

• Strangers on a make to order model reserved slot each week in the optimal position


Optimising inventory to align with supply cycles and maintain high customer service

Case study

• A number of scenarios were run, refining the product wheel to balance inventory, supply stability and service

Scenario FOC / FOQ Cycle Length or Batch Size logic

SL Lead Time

Scenario 1 FOC 1 week 0.99 N/AScenario 2 FOC Cycle length based on

MOQ and weekly demand; max length 16

0.99 N/A

Scenario 3 FOC

FOQ

Where cycle length <=16Batch Size = MOQ

0.99 N/A

Master Data

Scenario 4 FOQ Batch Size = weekly demand

0.99 Master Data

Scenario 5 FOQ Batch Size = MOQ (max 26 weeks)

0.99 Master Data


Significant opportunity to reduce inventory identified Case study

Segment As Is Scenario 1 Scenario 2 Scenario 3 Scenario 3 w FI*

Scenario 4 Scenario 5 Scenario 5 w FI*

Overall Amt 551,689 71,601 132,941 118,923 91,172 117,805 158,981 133,675

Overall Days 125 16 30 27 20 27 36 30

A2 Smooth Amt

4,728 2,047 4,818 4,818 3,718 3,521 8,798 6,994

A2 Smooth Days

33 15 34 34 26 25 62 49

A3 Int Amt 53 41 160 160 118 60 88 74

A3 Int Days 30 23 90 90 66 43 50 41

C1 Smooth Amt

379,270 19,755 20,521 20,521 16,157 38,896 38,321 33,822

C1 Smooth Days

232 12 12 13 9 23 23 21

* Forecast Improvement = 30%

GET IN TOUCH • GET THE [email protected]

+44 (0)20 7099 6910

100 Cheapside, London EC2V 6DT

LONDON • PHILADELPHIA • TORONTO • THE HAGUE • HONG KONG • JOHANNESBURG • MELBOURNE

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Hugh Boyes


Hugh Boyes CEng FIET CISSPPrincipal Engineer – Cyber Security Centre

Managing supply (digital) chains for success

Transformation of construction sector

89Image used by permission of UK Department for Business, Energy & Industrial Strategy (BEIS)

Digital EngineeringOff-site manufacture

IoT & Industry 4.0

Adoption of digital supply chains

90

An industry under scrutiny

Grenfell Tower – June 2017 Barking Riverside – June 2019

Importance of information quality

92

Information Management Landscape for Integration

93

Cred

it: A

dapt

ed fr

om M

. Wes

t, HQ

DM In

form

atio

n La

ndsc

ape

Curated & accessible information

94

95

Why the interest in Security?

96

Can’t be done without the

IML

Its not just individual built assets

97

Relevant Security Guidance

98

PAS 7040:2019Trustworthy Sensors

To be published Q3 2019

Questions?

99

Contact: [email protected]

#TCNPlus

Role of contracts in enabling supply chain integration

Nigel Blundell

DISCOVERY DAY – MANAGING SUPPLY CHAIN FOR SUCCESS

The role of contracts in

enabling supply chain integration

Nigel BlundellPinsent Masons

What we will discuss today

• The post Carillion environment

• Long Term Frameworks

• Collaborative Contracting

• Trends in risk allocation

Post Carillion Environment

• Main contractors are increasingly unlikely to take full design and construction risk. (Generalists)

• The supply chain provides the detailed technical knowledge and input.(Specialists)

• Industry and politicians are aware of the issues and impact of insolvency and unacceptable risks.

Contract Structures and Collaborative Features

How to solve the issue?

1. Long Term Frameworks

• Properly structured a framework can deliver substantial benefits to a client.

• A forum for shared learning and continuous improvement amongst a number of providers and disciplines.

• Potential for increased buying power and reducing costs and creating consistency across a range of projects over its lifetime.

• Bespoke and standard solutions.

FAC - 1

• A flexible framework alliance contract.

• Drafted and developed by Dr David Mosey of King’s College London Centre for Construction Law and Dispute Resolution.

• Published 2016 and beginning to get significant traction. CCS Framework.

FAC – 1 Key Features

• Alliance created on a framework basis between alliance members according to their agreed roles expertise and responsibilities.

• Establishment of a Core Group, supporting the implementation of the framework agreement.

• Alliance Manager, engaged by client, chairs meeting.

• Decisions of Core Group by consensus.

Flexibility

• Framework allows engagement with stakeholders who are not part of the alliance.

• Ability to add to the alliance both additional clients and alliance members.

• Framework comprises:-• Objectives• Improving value• Success measures and targets• Incentives

Supply Chain

• Option for supply chain collaboration.

• This aligns with the objective of improving value.

• How? Framework can create longer term, larger scale supply chain contracts.

Value Achieved by:-

• Sharing information by members on their supply chain.

• Reviewing value offered by proposed supply chain.

• Review the potential for more consistent longer term larger scale, supply chain contracts and improved working practices.

• Ability to renegotiate or undertake joint supply chain tender process through procedures approved by Core Group.

Case Study 1Surrey County Council FAC-1 prototype

• Surrey County Council with Kier, Aggregate Industries and Marshall Surfacing https://www.gov.uk/government/publications/procurement-trial-case-study-report-highways-maintenance

• Team motivated by prospect of contract extension, plus client offer of £100m of additional work subject to demonstrable delivery of £120m of value

• Agreed cost savings included breakdown offered by Tier 2/3 subcontractors/suppliers (against previously quoted rates) in return for:o Greater involvement in planning work and developing continuity of work - 2%o Agreed minimum annual volume of work - 5%o Agreed minimum size of individual works orders -2%o Prompt(er) payment by Tier 1 Contractor -1%o Storage facilities in available space at Client depot -2%

https://www.gov.uk/government/publications/procurement-trial-case-study-report-highways-maintenance

Case Study 1Supply Chain Collaboration improved value

• Supply Chain Collaboration on Project Horizon also enabled: o ‘Improved whole life value, including agreement of ten-year

warranty for material and pavement design o Improved quality control through joint risk assessments and

integrated team agreement of appropriate surface treatments and monitoring work on site

o Improved apprentice commitmentso Lean programming of individual tasks leading to time savingso Innovation through collaborative working, for example to increase

recycling and reduce landfill’• Kier Highways and Surrey County Council follow up FAC-1 on £54

million contractor-led, supply chain alliance – 8% savings and supply chain ECI, extended warranties, local business opportunities, apprenticeships , recycling initiatives

Project AgreementsDriving collaborative behaviour through contract modelsCollaborative Techniques

• The Employer gives up a certain degree of control, in order to get more engagement and alignment with the delivery team.

• Alignment of commercial interest.• Everybody wins or everybody loses. This removes the adversarial nature.• Risk and opportunity sharing, joint development of solutions, target cost,

risks.• Pain / Gain.• Additional incentives KPIs – to modify pain/gain.

The Basic Structure

Employer Authority

The Alliance

Comprising: Contractors and the Employer as Owner Participant

The Project Board runs the project and the employer has limited rights of objection

• Board decisions must be unanimous

• Expert determination of deadlock

• Board certifies or recommends on key issues and the employer must issue

the certificates etc. There are limited rights of objection or investigation

• Variations on the theme if an Authority is appointed

• Expert determination of “dispute” between ALT and Authority

Categorisation of Contract

• Target Cost Contract• Reimbursable Costs• All costs which are reasonably incurred by the Participants (including the

Owner Participant) in connection with the works• Limited exclusions• Some employer costs can be added as reimbursable costs• Rectifying defects is reimbursable

Pain/Gain Share/Risk and Reward

• Target Cost – leading to pain or gain share

• Non cost component KPI’s – Key result areas and performance modifiers. Can adjust upward or downwards

• Capping of gain and liability

The no claims environment

• The Employer and the Participants undertake not to sue each other.• Sole remedies – reimbursable costs and incentives.

• Indemnity from non defaulting participants to defaulting participant.

• The Contract cannot exclude adjudication

• The indemnity prevents claims being made in practice

The Supply Chain and Alliance

• If not included within the tier one alliance, sub alliances?

• Alignment of reward at tier two to main contract performance: otherwise win/lose scenarios can be created if based purely on sub-contract performance.

• No claims?

• Basis of tier one’s recovery for breach

Post Carillion – better project terms

What are we seeing?

• Move to project bank accounts in the public sector.

• Retentions.Construction (Retention Deposit Scheme)• Legislation – the Aldous Bill?• Commitment to phasing out from Build UK.• Network Rail contract. Nil retention at main contract level and

requirement that sub-contract are the same.

Supply Chain Terms

• Build UK have published a recommendation that there should be common ground on contractual practice in the industry.

• Objectives to promote collaboration, encourage fairer allocation of risk and deliver better project outcomes.

• Recommendations on:-– Fitness for purpose clauses for design– No blanket indemnities for breach of contract– Cap Liabilities– Extension of time risks on items which are not reasonably

ascertainable

Pinsent Masons LLP is a limited liability partnership, registered in England and Wales (registered number: OC333653) authorised and regulated by the Solicitors Regulation Authority and the appropriate jurisdictions in which it operates. Reference to "Pinsent Masons" is to Pinsent Masons LLP and/or one or more of the affiliated entities that practise under the name "Pinsent Masons" as the context requires. The word "partner", used in relation to the LLP, refers to a member or an employee or consultant of the LLP or any affiliated firm, with equivalent standing. A list of members of Pinsent Masons, those non-members who are designated as partners, and non-member partners in affiliated entities, is available for inspection at our offices or at www.pinsentmasons.com. © Pinsent Masons.

For a full list of the jurisdictions where we operate, see www.pinsentmasons.com

Thank you for Listening

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Ideas lab:Role of supply chain to transform construction

DISCOVERY DAY – MANAGING SUPPLY CHAIN FOR SUCCESS

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DISCOVERY DAY - Managing supply chains for success

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Documents

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