The Oliver Wight Class A Standard for Business Excellence, 7th Edition

8Managing Internal Supply

Purpose

To support the Strategic Plan through the optimization of Internal Supply planning and execution capabilities. Internal Supply will deliver customer value, routinely deliver financial goals, and maintain performance to Class A expectations.

Positioning

The Internal Supply Roadmap is derived from the Supply Chain Roadmap and is used to enable a world-class Supply Chain response that delivers value to customers and consumers as part of an overall Value Chain. Internal Supply includes all aspects of planning and execution to manage the company's supply and delivery capability to guarantee customer value. The key disciplines involved are Master and Advanced Planning; Material and Capacity Planning, Inventory Management, and Planned Preventive Maintenance (PPM).

Process maturity improves over time through education, committed leadership, expert guidance, and a focused effort to attain key business milestones.

After embarking on the path to improvement, accountabilities are assigned, the elements and characteristics of the processes are implemented, and targeted measures drive improvement to enable process transformation.

Done well, a Class A Milestone is achieved at the top of Phase 1 of Business Maturity (see Foundation, Figure I.1). At this stage, Internal Supply capabilities enable valid plans routinely executed to 95 percent performance, coordination across the business to maintain one set of numbers, clarity on constraints, and a Supply Model ...