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These had to be tangible metrics such as operating margin, service improvement, and inventory levels metrics that linked back to the original business case, metrics that people could be measured against Many of the old metrics were backward-looking Inventory days, for instance, is a good end-of-month measure, but it doesn t help with dayto-day operations Avon developed metrics that are more operationally focused and can be influenced in the short term As an example, the company broke down the key drivers of inventory levels One was supplier lead time, which Avon has taken steps to shorten by giving certain suppliers access to production schedules and making them responsible for delivering materials on time By clearly communicating the redesigned structure and accountabilities and defining new performance metrics, Avon began to move the new supply chain organization forward.

As Valerie set to work on this sizable job, I began working on the social game associated with the Round Table I plunged into the task without realizing the magnitude of what I was attempting I wanted to produce a small game that would require Arthur to manage a social group I quickly realized that the most interesting features of such a situation lay not the radial relationships (the relationships between Arthur and the other knights) but in the circumferential relationships among the knights Although Arthur must perforce deal with knights radially, the circumferential relationships may well be the deciding factors I found this system fascinating and worked inten-.

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Says Toth, Once you change the roles and responsibilities and set up clear KPIs [key performance indicators] for individuals at the country level and at the regional level, it starts to become institutionalized Education and training were another critical piece of Avon s supply chain transformation The company quickly saw that the skill levels in the organization had to be upgraded Avon analyzed all the critical jobs in the new supply chain and the competencies needed to do those jobs To fill the gaps, Avon partnered with Cranfield University, one of the leading supply chain business schools in Europe, to develop a customized curriculum Avon put 75 of its key supply chain associates through the program and offered a shorter version to the senior executives who weren t involved in the redesign To introduce new thinking, the program.

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Ever since its founding in 1976, PRTM has shone the spotlight on operations the component of the business world that often goes unheralded But as one of the executives interviewed for the General Motors profile in these pages notes, it s the operations staff that are the oaks of any organization providing the solid support for manufacturing and supply chain management that makes for progress in the gross national product of every country worldwide We hope we ve captured some of the esprit de corps of supply chain management in these pages, especially in the seven organizations that agreed to be profiled for this book: Eli Lilly, Autoliv, Avon, Owens Corning, the US Department of Defense (the largest supply chain in the world), General Motors, and Seagate Technology.

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We d like to thank all the executives we interviewed at these organizations for their candor, their passion for their work, and their desire to share the state of their art with others These companies were chosen by us because they understand the strategic role the supply chain plays in their businesses and are engaged today in large-scale transformative initiatives to wring more value from supply-chain investments, create better return on investment from process and technology improvements, and establish an end-to-end supply chain at their enterprises These interviews were made all the more lively by the facilitation and expertise of our stellar internal marketing communications staff at PRTM Victoria Cooper, our director of corporate communications, led this book project from start to finish, establishing an early vision for its structure and content, managing all aspects of the project, and integrating all the strands of the book.

sively with it I developed a set of algorithms that model group behavior in a most interesting way I was so pleased with the algorithms that I threw together a short BASIC program that turned them into a stand-alone game This game seemed very promising to me; particularly impressive was my wife's reaction A woman who takes a dim view of silly games, she took an instant liking to this game Surprised and gratified that I had finally produced something she could enjoy, I decided to pursue this new game, originally a study for EXCALIBUR, as a completely new project Aric Wilmunder was hired to execute the design, called GOSSIP In July we entered a long and slow period of frustrating progress I began devoting a larger share of my time to the writing of this book Other duties further distracted me.

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