Charting Your Supply Chain DNA - The PICO Perspective - aftermarketNews

Charting Your Supply Chain DNA — The PICO Perspective

How do you apply concepts of systems thinking and concurrent engineering to the problem of re-inventing your supply chain? Last time we briefly introduced the PICO approach to designing an integrated operating model; this week we’ll describe it in more detail.

AMN Perspectives by Thomas Group: Experience at Work

Posted: Aug. 31, 2004, 9 a.m., EST

by John Steidl, Thomas Group consultant and David Demers, president of Avicon

IRVING, TX — How do you apply concepts of systems thinking and concurrent engineering to the problem of re-inventing your supply chain? Last time we briefly introduced the PICO approach to designing an integrated operating model; this week we’ll describe it in more detail.

The PICO Perspective

PICO stands for Process-Information-Cash-Organization.

In the past, supply chain transformation initiatives typically focused on one or two design perspectives, such as process reengineering, and/or information technology. Today, a fast-changing marketplace requires rapid, balanced solution design and greater internal and external partner collaboration. Companies can meet this challenge through an approach that incorporates the concurrent engineering of the PICO dimensions.

To illustrate, a company wishing to reduce its order-to-delivery lead-time would likely benefit from a careful examination of its core business processes, information, cash and organizational flows in order to identify potential bottlenecks. The company could then work to eliminate the bottlenecks while at the same time identifying ways to increase the velocity of the inventory flows. Addressing all four perspectives simultaneously increases the inherent improvement opportunities in asset velocity, cost and response time as well as the efficiency and success of initiative implementations. Simultaneous engineering of the PICO perspectives ensures that the information flows support the business processes and are aligned with contractual arrangements and organizational structures. This typically results in reduced time-to-market and an improved capability to react quickly to customer demands.

Velocity is the common denominator among the process, information, cash and organizational dimensions of the DNA solution patterns that form an integrated operating system. From an engineering perspective, this model simultaneously:

* Speeds up the physical flows and core enterprise processes within and across the trading-partner community.

* Accelerates integrated information access, including near real-time availability and operational visibility within the enterprise and across the trading-partner community.

* Leverages speed and alternative cash engineering options to reduce cash-to-cash cycle time, release fixed-asset resources, and lower operating costs.

* Increases organizational capabilities to rapidly identify, collaboratively design, implement and manage high-speed solutions.

A DNA solution pattern incorporating all four PICO dimensions represents a unique supply chain pattern for a company, a pattern that can be tailored by geography and product line. An organization could have a variety of distinct patterns. Once assembled, these DNA patterns form the company’s supply chain integrated operating system, which seeks to achieve specific supply chain goals.

Next time we’ll talk in more detail about each of the four PICO elements.


Click here to view the rest of today’s headlines.

You May Also Like

Continental’s Brake System Technology Garners 1st Major Order

The start of series production with a North American car manufacturer is planned for 2025.

Continental announced it received its first major order in the third quarter for the mass production of its semi-dry brake system (also known as Future Brake System or FBS 2), valued at approximately €1.5 billion. This order increases the lifetime sales to more than €2 billion for this new system, the company says.

Canoo Announces New EV Battery Module Mfg. Facility

Located in Pryor, Oklahoma, the new facility will be capable of approximately 3,200 MWhs of battery module manufacturing capacity.

Honda, LG Energy Solution Invest in EV Battery Plant

The two companies will commit to investing $3.5 billion and creating 2,200 jobs in Fayette County, Ohio.

Global Shop Solutions Marks 5-Year Milestone

The adoption of Cloud ERP greatly surpassed the five-year forecast, says the company.

DENSO Sponsors EcoCAR EV Challenge

DENSO is providing monetary and in-kind donations, including vehicle electrification components, mentorship and technical guidance.

Other Posts

Counterview: Talking Telematics

Data, data everywhere …

EDI: What’s Old is New and Better

Why do I need it for my automotive business?

Torqata to Host ‘Reinvent the Wheel’ Hackathon

The sharpest data science and engineering minds will be organized into 20 teams and challenged to drive sustainability by optimizing pick-up logistics for recycled tire feedstock.

Stanadyne Releases Electrified GDI Fuel Pump Module

The E-Pump Module enables fuel flow and pressure to be electrically controlled to optimize and reduce fuel consumption.