| Mannheim, October 2006 | |
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Dear Ladies and Gentlemen,
Welcome to our third Newsletter for this year. Once again we are looking forward to keeping you up to date on all our consulting projects and informing you about our new customers. We have, for example, been busy developing new approaches for optimizing the order processing system at Zwilling and, by introducing the j&m process-chain model, making a continuous order follow-up system possible at Siemens A&D. We have been demonstrating j&m's expertise in PLM/PDM with the realignment of the product-data management system at Hella. Program management with regards to the planning of complex changes is another important area in which j&m's consulting expertise has grown and developed over the past few years. Program management is made up of a large number of individual initiatives (projects) that can extend over several years. Crucial factors in this regard include professional expertise and the advisor-customer relationship (trusted advisor). With its program management expertise, j&m is supporting the comprehensive SAP consolidation initiative going on at Siemens PG. Our special "innovative performance measures for evaluating supply chains" points to the ever-increasing importance of looking at supply chains in their entirety rather than just at individual companies within the supply chain. We hope that reading this newsletter will give you plenty of food for thought. Please don't hesitate to contact us if you have any questions or comments. Dr. Andreas Müller Spokesman of the Board, responsible for marketing and PR |
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j&m advises Zwilling J.A. Henckels AG on optimizing order processing
ZWILLING J.A. HENCKELS AG is a global leader in the sectors of kitchen equipment, cutlery, and beauty products. Its palette includes knives for chefs and homes, scissors, pots & pans, kitchen aids, gift articles, cutlery, and manicure products. Almost 2,300 employees worldwide make sure that Zwilling products meet the high expectations. Production plants are located in Solingen, Germany, and in Spain, China, India, and Japan. The project conducted at Zwilling was structured to identify the optimization potential along the entire order processing chain, and to jointly derive detailed measures for sustained improvements. The chart below depicts all the areas investigated during the project. 
This project was conducted jointly with the relevant heads of department, senior management, and employees. Its focus was on improving cross-functional tasks and the underlying IT system support.
"We found j&m consultants to be real professionals with extensive know-how of processes and IT systems." Dr. Erich Schiffers, Management Board, Zwilling J.A. Henckels AG. "The measures developed jointly are extremely detailed and thorough, so that one can start the planning and put all this immediately into practice," according to Dr. Michael Otremba, Manager, Materials Management. All the measures worked out pursue the goal of continuously improving timely delivery and customer satisfaction. The implementation of the evaluated and prioritized action plan is scheduled over the coming weeks and months. For more details on these aspects, please contact Mr. Karsten Ötschmann, Partner, j&m Management Consulting AG by phone at +49 (0) 621 12 47 69 - 0 or by e-mail at: k.oetschmann@jnm.de. _________________________________________________________________________________ |
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The j&m process chain model as the new framework for greater transparency of the Siemens A&D supply chain
Siemens A&D is a leading player in automation and drive technologies worldwide, generating roughly 10 billion euros in revenues with 60,000 employees. In 2004, j&m was able to assist in developing a logistics strategy, which led to changes in certain business processes. Since October 2005, j&m has been working on centralized logistics services for the Information & Communication Backbone (I&C BB) project. “What is the status of my order? Where are the goods? Is it still possible to make changes?” These are the kinds of questions that are critical for the multi-level process at Siemens A&D – in particular where customer needs involve several levels of the organization. The process thus occurs over a series of customer-supplier relationships, but without ever losing track of the end user. Flows of information and materials are neither synchronous nor in the same direction, and the speed of information processing is important, but success is primarily dependent on interpretation down the line. j&m’s application of its process chain model at Siemens A&D demonstrated, for the first time, the interrelationship that exists between economic outcomes and defined processing stages of an order. 
“The j&m process chain model as the basis for tracking, tracing, and alert management of logistics services is a novel approach in this field,” remarks Mr. Grasser, Manager of Siemens A&D Global Logistics. “With the process chain model, we can analyze what really goes on in practice and identify processes needing improvement,” says Ms. Röhr Salamanca, Order Management, Siemens Regional Company, Spain. Following implementation of the process chain model, the challenge ahead is to introduce availability checks at several supplier points, and simultaneously account for the transportation time. For more details on these aspects, please contact Mr. Stefan Bley, Partner, j&m Management Consulting AG by phone at +49 (0) 621 12 47 69 - 0 or by e-mail at: s.bley@jnm.de. _________________________________________________________________________________ |
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j&m involved in reorienting product data management at Hella KGaA Hueck & Co. The trade business unit of Hella KGaA Hueck & Co., an automobile parts supplier, plans to adapt global product data management to specific trading requirements, as part of its PrISMa³ project. The goal of this project, scheduled for completion in 2008, is to offer corporate-wide standardized, uniform, and consistent product data throughout the product life cycle. It aims to achieve this with a transparent process for storing and changing product data. This in turn calls for centralized data processing and definitive, complete, and automated distribution of product data – in the respective national divisions and catalog systems. 
j&m Management Consulting AG competed against four other firms to win the award. “Our impression during the RFP phase was that j&m best understood our requirements, and that its approach and toolset would offer the ideal support to reach our ambitious target.” Saskia Schumacher and Sven Krüger, Program Management Team, PrISMa³ Project, Hella’s Aftermarket & Special OE business unit. This award of a strategic project underscores j&m’s expertise in consulting services in the area of PLM/PDM and corporate portals. We will post project developments and improvements as they occur over the coming months. For more details on these aspects, please contact Mr. Mallory Frenkel, Senior Manager, j&m Management Consulting AG by phone at +49 (0) 621 12 47 69 - 0 or by e-mail at: m.frenkel@jnm.de. _________________________________________________________________________________ |
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Program Management Office at Siemens PG to consolidate 14 SAP systems
Siemens Power Generation (“PG”) is currently one of the biggest divisions in the Siemens Group with about 33,500 employees, generating a turnover of around 8.1 billion euros. Siemens PG is the second largest operator in the global markets for power plants and industrial energy conversion and compressor systems. With its SAP Roadmap project, Siemens PG plans to consolidate the current 14 SAP systems into three core systems, while introducing new dimensions of SAP products. This means a variety of individual projects with different areas of focus to enable implementation of the ambitious target: Reduce to the Max. Accordingly, a Program Management Office (PMO) was established with support from j&m to plan, control, and conduct individual projects on a standardized basis. Project-wide Reporting was adopted and implemented worldwide. A uniform project planning methodology was implemented for all projects with the Program Master Schedule, based on the Microsoft Enterprise Project Management tool. 
The resulting changes in the business processes are supported by an extensive package of measures within Communications & Change Management. One of these is the drafting and coordination of a worldwide training program for more than 200 participants. j&m consultants helped select suppliers to implement the project within Vendor Management. “The SAP Roadmap was able to get a jump start – thanks to the project management input by the j&m team,” said Dirk Würdemann, Program Manager of SAP Roadmap. The coming months will see definitive implementation of the motto, Reduce to the Max, through adaptation of the systems to business processes in place, and a reduction in the number and complexity of existing systems. For more details on these aspects, please contact Mr. Jörg Aufenanger, Senior Manager, j&m Management Consulting AG by phone at +49 (0) 621 12 47 69 - 0 or by e-mail at: j.aufenanger@jnm.de. _________________________________________________________________________________ |
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j&m helps Advanced Nuclear Fuels GmbH analyze logistics processes
Advanced Nuclear Fuels GmbH (“ANF”), based in Lingen, Germany, is a wholly-owned subsidiary of Areva NP GmbH (“ANP”). ANF fabricates fuel assemblies on behalf of ANP, for use in nuclear reactors in Germany and the rest of Europe. 
ANF has 700 employees at its three branches – Lingen, Duisburg, and Karlstein. Lingen produces fuel assemblies for pressurized and boiling water reactors. Karlstein produces components for fuel rods, mainly spacers, head and foot pieces, water channels for boiling water reactors, and other parts. The j&m project at ANF focused on analysis of the logistics processes at Linden and Karlstein, with emphasis on logistics, scheduling, planning, and production control units. This project aims to highlight measures to optimize and harmonize processes, and strives to improve IT system support. “Choosing j&m to handle the project was easy because of its integrated consulting approach that equally emphasizes the organization, processes, and IT systems. We were also impressed by j&m’s highly structured approach for evaluating the potential for improvement.” Wilfried Holthaus, IT Manager and Uwe Krahé, Manager, Logistics & Projects. For more details on these aspects, please contact Mr. Karsten Ötschmann, Partner, j&m Management Consulting AG by phone at +49 (0) 621 12 47 69 - 0 or by e-mail at: k.oetschmann@jnm.de. _________________________________________________________________________________ |
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Special: performance measures for evaluating supply chains
A supply chain has not sold anything until the end customer has paid. Yet despite the existence of supply-chain management systems, this knowledge is still not always implemented to the best possible effect in practice. Each company strives towards optimizing its own processes. The result of this, however, is that each company focuses on selling its products to the next link in the supply chain. Because common measuring methods always concentrate on the company's own processes, they are only able to measure each individual company’s own performance. This means that no evaluation takes place with regards to the company’s own external actions on the supply chain. As a consequence, then, each supposedly optimized corporate system lines up one after the other. This does not, however, serve in achieving the best possible system for the supply chain as a whole. The performance measures presented here evaluate the supply relationships between suppliers and companies on the one hand and between companies and customers on the other. This enables the entire supply chain to be measured and indeed optimized in its entirety as a consequence. When a company delivers a given component late, its effect on the supply chain is far greater than just a delayed component. Indeed, it can endanger the end product into which the component needs to be fitted. In order to evaluate this threat in terms of the entire supply chain, the selling price of the end product is multiplied by the number of days of delay. The result of adding the product of this together with all of the delayed orders gives a performance measure with which a company can evaluate its suppliers in way that is value-adjusted and which conforms with the supply chain. 
There is also another performance measure that works in the opposite direction and which allows suppliers to evaluate their customers. This performance measure enables a supplier to evaluate how quickly its customers processes the products that have been delivered. In this regard the product, in terms of stock value per item, is multiplied by the number of days in which the customer has control over the items. Here, too, the product is added together across all manufacturing materials and stocks. 
Both of these performance measures create transparency, making it possible for the optimization of a given supply chain. Inevitably, of course, improving the performance of the supply chain in its entirety will lead to better performance of the companies involved. For more information and details please contact Mr. Claus Ritter, Senior Manager, j&m Management Consulting AG on the following number: +49 (0) 621 12 47 69 - 0 or via e-mail at c.ritter@jnm.de. |
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We would be delighted to see you at the following event. Please don't hesitate to contact us for a personal appointment:
If you have any questions or would like to make an appointment, please contact Ms. Nicola Birken, Corporate Communications, j&m Management Consulting AG by phone at +49 (0) 621 12 47 69 – 0, or e-mail n.birken@jnm.de. |
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