A STUDY OF BEST PRACTICES IN SUPPLY CHAIN MANAGEMENT by Jay F. Chance PAUL HARDT, Ed.D.

, Faculty Mentor and Chair KEITH JOHANSEN, Ph.D., Committee Member CLARIBEL PURCELL, Ph.D., Committee Member Barbara Butts Williams, Ph.D , Dean, School of Education

A Dissertation Presented in Partial Fulfillment Of the Requirements for the Degree Doctor of Philosophy

Capella University February 2010

UMI Number: 3390948

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 Jay F. Chance, 2010

Abstract This descriptive embedded case study presents the perceptions of subject matter experts from nine sites within a firm engaged in supply chain management activities, describing approaches and techniques used to identify and validate best practices and to determine to what extent practices used by the firm are best. No supply chain management studies exist within the firm and academic literature does not adequately address supply chain management and best practices. This study revealed that that the relatively new supply chain management organization did not have a process for identifying and validating best practices, nor were there supply chain management best practices and therefore no ability to determine which practices were best. Results of the study did yield several potential approaches for identifying best practices and a list of potential best practices for the organization to consider. In addition, subject matter expert responses and cross-case analysis yielded a validation process for classifying best practices.

Dedication Be still and know that I am Psalms 46:10. These words kept me focused when my druthers were to be somewhere else, doing something else. I would like to make the following dedication to my family. First to my wife Valerie, who provided support and understanding throughout the entire process, who without a doubt was my biggest fan and cheerleader. When I was plagued with numerous doubts, Valerie was constant. I appreciate the support from my sons, Jay Brandon, Aubrey and Kyle, for understanding the times when I wasnt available or constantly seemed focused on something else. You are a wonderful wife and young men and I love you greatly. In addition I would like to thank and honor my father, Dr. Jay Chance. Without your example, continued encouragement and advice, and constant reminder that this is a degree of perseverance, I would likely not have persevered. I would like to thank and honor my in-laws, Dean and Carol Mizer. Your continual support, praise, and interest in the study helped keep me focused and motivated. Finally, I would like to thank and honor my mother, Dr. Gailya Chance, I wish you could have been here to experience this, but I know youre watching.

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Acknowledgments There are so many people that in some way contributed to the completion of this degree and this dissertation. First, I would like to thank my mentor and committee chair, Dr. Paul Hardt, without whose help, guidance and patience I would not have completed this process. Thanks also belong to Dr. Keith Johansen, Dr. Claribel Purcell and Dr. Susan Taylor, my dissertation committee who provided useful feedback and direction, encouraging me along the way. I would also like to thank Dr. David King, who was instrumental in helping start the dissertation process and guiding the early stages of its creation and direction. I would like to acknowledge Ken Shaw, the Vice President of Supply Chain Management and the study sponsor in the subject firm who understood the benefits of the study, allowing access to his organization and providing support and guidance along the way. I would also like to acknowledge Dr. Steven Carletons contribution. I made some poor choices my first years in college, and if it hadnt been for Dr. Carleton seeing the potential beyond the present, I would not have gotten back into school to finish my degree at that time and probably would not have tried again. Additionally, I would like to thank Keith Castleberry and David Hill for their support and participation as technical advisors from the firm.

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Table of Contents Acknowledgments.................................................................................................. iii List of Tables ........................................................................................................ vii List of Figures ........................................................................................................ ix CHAPTER 1. INTRODUCTION ....................................................................................... 1 Introduction to the Problem .................................................................................... 1 The Background and Significance of the Study ..................................................... 2 Statement of the Problem........................................................................................ 4 Purpose of the Study ............................................................................................... 5 Rationale ................................................................................................................. 5 Research Questions................................................................................................. 8 Theoretical Foundation ........................................................................................... 9 Definition of Key Terms....................................................................................... 15 Assumptions and Limitations ............................................................................... 16 CHAPTER 2. LITERATURE REVIEW .......................................................................... 18 Introduction to the Literature Review................................................................... 18 External Supply Chain Management Overview ................................................... 18 Supply Chain Management in the Firm ................................................................ 25 External Best Practice Literature Overview ......................................................... 26 Internal Best Practice Literature Overview........................................................... 42 Synthesis of Literature Review............................................................................. 54 CHAPTER 3. RESEARCH DESIGN............................................................................... 59 iv

Introduction........................................................................................................... 59 Research Purpose .................................................................................................. 59 Research Questions............................................................................................... 60 Rationale for a Case Study Research Design........................................................ 60 Overview of Research Approach .......................................................................... 61 Research Sample................................................................................................... 62 Research Design.................................................................................................... 63 Data Collection Procedures................................................................................... 65 Instrumentation ..................................................................................................... 70 Data Analysis and Synthesis................................................................................. 72 Contacting Respondents........................................................................................ 78 Organization Conducting the Study...................................................................... 79 Investigators and Technical Personnel.................................................................. 79 Ethics..................................................................................................................... 80 Timeline ................................................................................................................ 80 CHAPTER 4. RESULTS .................................................................................................. 82 Introduction........................................................................................................... 82 Study Demographics: Who Participated? ............................................................. 83 Description of the Case Study............................................................................... 86 Results of the Study ............................................................................................ 163 What the Supply Chain Management Organization IS....................................... 165 Best Practices ...................................................................................................... 168 v

Conclusion of Chapter 4 Results......................................................................... 174 CHAPTER 5. RECOMMENDATIONS......................................................................... 178 Introduction......................................................................................................... 178 Value of the Study .............................................................................................. 178 Conclusions......................................................................................................... 181 Recommendations............................................................................................... 185 REFERENCES ............................................................................................................... 189 APPENDIX A. STRUCTURED INTERVIEW GUIDE ................................................ 194 APPENDIX B. LETTER OF INTRODUCTION........................................................... 195 APPENDIX C. PARTIDIPANT BACKGROUND SYNTHESIS MATRIX ................ 196 APPENDIX D. INFORMED CONSENT FORM .......................................................... 197 APPENDIX E. INTERVIEW DATA ANALYSIS MATRIX ....................................... 201 APPENDIX F. POTENTIAL BEST PRACTICES IDENTIFIED AND CLASSIFIED IN SUPPLY CHAIN MANAGEMENT .................................................................. 202

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List of Tables Table 1. Study Overview ......................................................................................................6 Table 2. Types of External Best Practices Studied ............................................................35 Table 3. External Best Practice Setting .............................................................................36 Table 4. Summary of Methods, Tools, and Practice External to the Defense Contractor .37 Table 5. External Best Practices Identified in the Literature Review ................................40 Table 6. SEBP Assessment Matrix .....................................................................................53 Table 7. Best Practices in the Firm ...................................................................................55 Table 8. Supply Chain Management Best Practice Baseline .............................................57 Table 9. Data Source Synthesis Matrix ..............................................................................76 Table 10. Behavioral Engineering Enabler Synthesis Matrix ...........................................77 Table 11. Embedded Unit Response Coding ......................................................................88 Table 12. BEM/C&E Example ...........................................................................................91 Table 13. Case S01 BEM/C&E for Paperless Best Practice .............................................98 Table 14. Case S01 BEM/C&E Logistics Support Analysis Enablers ...............................99 Table 15. Case S06 BEM/C&E Cross Functional Leadership Team Enablers ...............114 Table 16. Case S06 BEM/C&E Spares Checkbook Enablers ..........................................114 Table 17. Case S06BEM/C&E People Development Enablers .......................................115 Table 18. Case S06 BEM/C&E Subject Matter Expert Development& Retention Enablers ............................................................................................................................................115 Table 19. Case S09 BEM/C&E Organizational Roles in Cross-functional Setting Enablers ............................................................................................................................116 vii

Table 20. Case S09 BEM/C&E Contracts Enablers ........................................................126 Table 21. Case S09 BEM/C&E Customer and Stakeholder Participation Enablers ......127 Table 22. Case S09 BEM/C&E Forecasting Enablers ....................................................127 Table 23. Case S10 BEM/C&E Forecasting Enablers ....................................................134 Table 24. Case S10 BEM/C&E Tool Tracking Enablers .................................................134 Table 25. Case S12 BEM/C&E Cell Concept Enablers ..................................................138 Table 26. Case S16 BEM/C&E Employee Involvement Enablers ...................................146 Table 27. Case S16 BEM/C&E Forecasting Enablers ....................................................146 Table 28. Case S20 BEM/C&E Performance Measures Enablers ..................................153 Table 29. Case S20 BEM/C&E Personal/Group Dynamic Enablers ..............................153 Table 30. Case S20 BEM/C&E ROIF Enablers ..............................................................154 Table 31. Case S30 BEM/C&E Modular and Scalable Enablers ....................................162 Table 32. Case S30 BEM/C&E Contracts Enablers ........................................................162 Table 33. Case S30 BEM/C&E Management by Process Enablers ................................163 Table 34. Participants description of the Physical Supply Chain ..................................166 Table 35. Cross Case Best Practice Enabler ...................................................................173

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List of Figures Figure 1. SCM Embedded case study ..................................................................................8 Figure 2. Behavioral engineering model ............................................................................13 Figure 3. Self-regulating feedback model ..........................................................................27 Figure 4. Basic process model............................................................................................28 Figure 5. Process example..................................................................................................28 Figure 6. Practice example .................................................................................................29 Figure 7. Three phases of benchmarking ...........................................................................32 Figure 8. PBM Post-award follow-up. ...............................................................................42 Figure 9. Program management best practices...................................................................46 Figure 10. Systems engineering best practices...................................................................52 Figure 11. BEM Cause & effect diagram...........................................................................75 Figure 12. Research schedule ............................................................................................81 Figure 13. Participant gender ............................................................................................ 84 Figure 14. Participant education ........................................................................................84 Figure 15. Participant work background and experience ..................................................85 Figure 16. Hierarchical levels of the study participants ....................................................85 Figure 17. Participant knowledge of the subject ...............................................................86

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CHAPTER 1. INTRODUCTION Introduction to the Problem Corporations in the 21st century are adjusting to the changes that occurred during the 1980s and 1990s. These changes have contributed to a highly competitive global economy (Ireland & Hitt, 2005). Those corporations that will survive in this globally competitive environment are those that continue to push the boundaries of improving performance. Identifying what is best in class or process best practices is an area of growing interest. Corporations and organizations are not only faced with challenges of correcting deficiencies and inefficiencies, competition is forcing firms to pursue improved practices or lose competitive position (Blanchard, 2007). Of specific corporate concern is the area of supply chain management which encompasses executing the activities of design, make, deliver in producing products or services (Hugos, 2006). In 2005, $500 billion U.S. dollars were outsourced, leading many corporations to develop core competencies that include the ability to manage this chain of product and or service supply (Merrifield, 2006). Companies with supply chain disruptions experience shareholder value declines in the ranges of 51% in process, 42% in retail and 27% in the high tech industries. Associated incomes in the large business sector are reported to drop as much as 86% when the supply chain continues to malfunction (Blanchard, 2007). Best practices are viewed as a systematic approach to improving performance and competitiveness through operating targets that are based on best practices found in the industry (Camp 1989). Human Performance Technology (HPT) is an approach for studying and measuring human behavior and the environmental impact on behavior 1

(Gilbert, 1996). This is contrary to popular improvement approaches and techniques based solely on interventions of rewarding expected behavior. HPT is focused on the human contribution to performance (Gilley & Maycunich, 2000). The literature suggests that corporations today allocate tremendous resources in the pursuit of improved performance, and the most popular approach to improvement is through best practices (Jarrar & Zairi, 2000). Firms can reduce negative impacts and improve competitive position by implementing best practices (Christmann, 2000). Best practices that are based upon the HPT concept of systematic, results-based process orientation and center study on the human element are seen to be most effective for business results and most accepted by personnel (Cicerone, Sassaman, & Swinney, 2007).

The Background and Significance of the Study Best practices have been studied over the past decade and are relevant to industry and theory. Performance improvement has been noted among the numerous benefits of the study of best practices (Zairi & Al-Mashari, 2005). Best practices are methods and techniques that improve process performance and overall customer satisfaction (Damelio, 1995). Sufficient literature exists to validate the approach as effective. This literature spans a diverse group of activities from production to quality, diverse industries from environmental engineering to transportation. Best practices are a well known and frequently used approach to achieving improvement in performance (Firm internal 2

reports, 2006; Bouza, 2006; Camp, 1989; Christmann, 2000; Damelio, 1995; Hill, 2000; Jarrar & Zairi, 2000; Lapide, 2006; Supply Chain Council, 2006) To respond to this the need to be more competitive many corporations over the past several decades have developed internally individuals, departments and whole organizations to manage the performance of the supply chain. Third party studies across various industries show that typical supply chains include sourcing, logistics, manufacturing, forecasting, pricing, new product launch and innovation (Henderson, 2008, p. 22). The study was conducted in a firm that was comprised of various competitor companies and corporations that had been acquired over the years through mergers or acquisitions. Each of those former corporations existed as individual sites under the umbrella of the single corporate entity. As the firm moved toward a single unified corporation each site continued to operate using the original practices that were developed separately. The Supply Chain Management (SCM) organization was relatively new as an independent self-contained organization for the firm. As such, organizational structure and business execution varied from site to site with no known systematic approach to successful program execution. The SCM organization was a consolidation of independent functions into a single function that reduced the functional elements to the roles that included planning, procurement, operations, logistics and material control functions. There were many models in existence that depict various types of supply chain elements (Henderson, 2008). 3

The firm had several mature organizations that had successfully defined, deployed and continually monitored organizational specific best practices. Best practices were seen by the industry and recognized by the firm as a proof positive approach to ensuring programmatic success. The SCM organization was the subject of the study. Supply Chain Management organizations are historically comprised of five functions; planning, supplier management, production, inventory control, and logistics. In the firm, of these five areas, only the Supplier Management function had previously defined governing best practices. Supplier management and other departments and organizations that had adopted best practices had seen performance improve and in some cases the improvements, as seen in an increase in competitive advantage, can be directly linked to the implementation of specific best practices (Bay, Tang, & Bennett, 2004; Butter & Linse, 2008; Drake & Schlachter, 2007). Statement of the Problem Although there was a trend in industry and the firm in particular to view best practices as the desired approach for achieving improved performance and customer satisfaction, the firm did not have a standard approach for identifying potential internal best practices. The several organizations that have identified specific functional best practices used varying and non-standard approaches to identifying those best practices. Little research on best practices specific to the firms newly created supply chain management organization existed within the firm; therefore best practices had not been

identified for the human performance elements within the supply chain management process in the firm. Purpose of the Study The goal of this research was to examine practices in supply chain management in a real life context with specific interest in the perspective of job performers in the functions related to supply chain management. The study identified best practices and documented how best practices were identified and validated and to provide procedural and policy recommendations. This was an empirical embedded case study that, through the theoretical perspective of human performance technology described the real-world experiences of an aerospace organization engaged in supply chain management activities, focused on identifying supply chain management best practices and determined to what extent practices used by the firm were best practices. Rationale This was an empirical embedded case study describing the real world experiences of a firm engaged in supply chain management activities, focused on identifying supply chain management best practices and defining what makes a best practice best. The descriptive function is usually associated with qualitative research which makes careful descriptions of phenomena of interest to the researcher. A case study is empirical inquiry investigating problems as they occur in the settings in which they occur without manipulating behavior (Yin, 2003). According to Ellinger, Watkins, and Marsick (2005) how, what and why questions are conditions that further justify decisions for using case studies as the research method. The researcher 5

was interested in describing how best practices are implemented and selected, what were best practice that were in use and why they were not universally used in the firm. The research was centered on or in a real-life setting in which the researcher has no control, nor wants control of the job performers behavior. Therefore a descriptive case study research was proposed since the research questions ask for the phenomenon of best practice to be described in a real world setting (Gall, Gall & Borg, 2007). Embedded case studies are single case studies that have multiple units of analysis embedded within the bounded case. These embedded units were the individual sites and programs that together comprise the firm (Yin, 2003). An overview of the research study is illustrated below in Table 1.

Table 1. Study Overview Type of Study Unit of Analysis Theoretical Framework Qualitative, descriptive embedded case study Nine business sites and programs within the supply chain management organization of the firm. Economic (performance and the bottom line). Psychological (behavior as the fulcrum of performance and measurement). General systems theory (the link between goals, performance and the workforce).

Types of groups Nine supply chain departments across multiple sites and programs in Studied the firm. Contribution Research Questions A description of the best practices used in the supply chain management organization, how they are identified and validated. RQ1) How can best practices in supply chain management be systematically identified and validated? RQ2) To what extent are practices used by the firm in the Supply Chain Management Organization best practices? 6

The case study proposed allows the researcher to review data and personnel currently engaged in the various activities that comprise the overall supply chain management function to distinguish best in class or best practices while defining how best practices can be systematically identified and validated. The research process included four phases to answer the research questions. These four phases were establishment of a baseline, analysis of literature, analysis of exhibited behavior and a synthesis of analysis. Figure 1 is a representation of the research process. Graphical representations are suggested as a more recognizable venue for staff and clients, and are prone to promote greater recall of the topic than verbal or written descriptions (Fuller, 1999). Figure 1 shows how the study moved between the theoretical and empirical data elements resulting in study deliverables in each phase. Phase 1 included review of existing literature to define the specific elements commonly associated with the supply chain, gathering existing artifacts and extant data within the company that support these elements. A baseline of supply chain management elements and performance was the result of analysis of this data. Phase 2 reviews the baseline data in light of existing best in class or best practice literature in the field, this review resulted in an interview protocol that guided the case study interviews. Phase 3 was the analysis of behavior which consists of conducting interviews, analysis to identify potential best practices, the creation of observation protocol, and formal observation. Phase 4 included data analysis and data synthesis. Data analysis included analysis of interviews and observed behavioral data, which in turn were be analyzed using a cause 7

and-effect diagram overlaid with Gilberts (1996) behavioral engineering model to determine what behavior components and aspects were the root enablers of the best practice. The final step in phase 4 is data synthesis and cross case conclusion which are presented in the conclusion and recommendations.

Figure 1. SCM Embedded case study Research Questions The goal of this study was to identify similar best practices that are used across the various operating locations in a diversified firm for supply chain management. Contributions of this research included improving data, resources, and motivation as well as providing a foundation for future research into causal relationships or predictive measures and processes. The specific research questions addressed in the current study were 8

1. How can best practices in supply chain management be systematically identified and validated? 2. To what extent are the practices used by the firm in the Supply Chain Management Organization best practices? An empirical embedded case study was used to examine the research questions and to describe the real world experiences of a diversified firm engaged in supply chain management. The focus of the study was defining and then identifying SCM best practices in the firm using the theoretical perspective of human performance technology.

Theoretical Foundation The theoretical foundation of this study was based on the theory of human performance technology and Swansons (2007) three elements of organizational performances: (a) economic theory, (b) psychological theory, and (c) general systems theory. Organizational performance and the contributing sub-elements were key components in the improvement of SCM. The theories and each element are reviewed in the following paragraphs. Human Performance Technology Use of HPT process models in changing or implementing new practices has had a proven positive impact on business execution. When used, HPT theories and models achieve more productive performance than other theories and models. A study conducted at Yellow Freight Systems queried mangers perceptions of the HPT process model (Cicerone et al., 2007). The Yellow Freight Systems study as well as independent studies conducted by the American Society for Training and Development (ASTD) indicates that 9

management and corporations in general view HPT concepts as best in class, so much so that the ASTD has created a certification process targeting the HPT process approaches (Cox, Frank, & Philibert, 2006). HPT is a systematic approach of analyzing performance and business situations, selecting appropriate interventions, and developing sufficient evaluations to assess and adjust the interventions that have been chosen and executed to address performance desires. The haphazard and piecemeal approach to problem solving, addressing symptoms, popular in many organizations today is not sufficient to achieve the performance improvement required (Stolovitch & Keeps, 1999). Both Fullers (1999) HPT process model and Gilberts (1996) behavioral engineering model (BEM) are essential to Swansons (2007) psychological element described below. Economic Theory Element The Government and defense agencies continue to emphasize program costs as a key driver in the decision to award contracts (King & Driessnack, 2007). In this case, a cost to the Buyer, a Government agency is the price offered by the Seller, the firm. The price of a product or service in simplest terms is the sellers costs plus profit. There is only a finite amount of profit that can be cut from out of the end price of a product or service, the most effective approach to price reduction is reducing the sellers costs, both internal and external (Blanchard, 2007). To maintain competitive advantage many organizations are improving their supply chain management capabilities since the cost of labor is no longer a significant factor (Bay, et al. 2004). Supply chain management development and execution are 10

integral to developing and maintaining a competitive advantage for the firm. This competitive advantage is supported by the theory of constraints, (Bay et al. 2004; Gill, 2008; Ray, Sarkar, & Sanyal, 2008) and transactional costs theory, (Butter & Linse, 2008; Drake & Schlachter, 2007; King & Driessnack, 2007). Swanson (2007) points out that expenditures must contribute positively to the survival and profitability of an organization or they will not be continued. Pursuit and implementation of best practices in SCM is seen as a cost saving choice of competitive corporations (Zairi & Al-Mashari, 2005). Psychological Theory Element The psychological foundation recognizes that along with nuances in cultural behavior, humans also broker productivity (Swanson, 2007). The underpinning psychological theory that is foundational to the study is behavioral psychology, or behaviorism, which is concerned with what can be seen or viewed (Swanson, 2007), and has an emphasis on external reinforcers as a strength (Swanson & Holton III, 2001). The research explores productivity and behavior using the theory of human performance technology (HPT) for productivity and Gilberts (1996) behavioral engineering model for behavior (Cicerone, et al., 2007). The HPT Process Model Experts and theorists have emulated Fullers (1999) 6-step model, which includes: consideration of business needs, identifying desired performance, assessing the performance gap, identifying the root cause, designing the implementation, and creating measurements. Human performance technology and human performance improvement are frequently used interchangeably (Stolovitch & Keeps, 1999). 11

The HPT process incorporates all the key elements to assess performance and identify productivity. The following is a description of the six HPT steps. 1. Business Analysis: Ensures that the project supports the organizations mission, vision, values and goals. Projects that do not support these business factors should not be pursued. 2. Performance Analysis: Comparing the desired performance state against a baseline of current performance identifying the gap between the two. 3. Cause Analysis: Commonly referred to as a root cause analysis this is a key step in the HPT process. The cause analysis is the most frequently overlooked and misdiagnosed step in performance assessment. 4. Intervention Selection: The cause determines the intervention which in most cases is a combination of tools and approaches that are available to technologists (e.g, job aids, training, and system changes.) 5. Intervention Implementation: Putting into practice what was identified and chosen in the previous step. 6. Evaluation: Although depicted as a final step or stage in the process, measurements should be viewed as a continual process that occurs in frequent intervals during the process and post intervention implementation. HPT approaches are driven by a business need and a performance need and must be justified by the results of a cause analysis (Sanders, & Thiagarajan 2004, p. 4). The Behavioral Engineering Model Since the emphasis on external reinforcers impact on behavior is one of behaviorisms strengths (Swanson & Holton III, 2001) and external reinforcers of human behavior used by organizations focus on the performance and competence variables (Cox, et al., 2006), Gilberts BEM is uniquely suited in providing a link between the external and the individual influences on behavior. The BEM has two overriding aspects observable behavior and the impact of the environment on observed behavior. Under these umbrella concepts, six components of the BEM are identified: data, systems, motive, knowledge, 12

capacity, and incentive. These are reflected in and are a primary basis of the HPT process model (Gilbert, 1996). Gilbert (1996) states that behavior is the root of engineering improved performance and defines behavior as having aspects of a supporting environment and a repertory of behavior as well as three components classified as information, resources and motivation. These are depicted in Figure 3.

Figure 2. Behavioral engineering model: Human Competence. Adapted from: T. F. Gilbert (1996, p. 92). Reprinted with permission of. John Wiley & Sons, Inc. The behavioral engineering model is used to understand how performance can be changed by altering environmental influences, specifically practices used by job performers. Solutions to problems should match the cause of the problem (Harless, 1998). The first step in identifying what practices were best, was understanding what environmental or individual behavioral factors enabled performance in the best practice.

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Gilberts (1996) BEM model is a scientific guide to identifying the correct causes which were essential in revealing those enablers to practices that were best in class. Systems Theory Theoretical Element Systems theory is both the systematic process of linking goals with the work force and the view that all elements of a process are viewed as individually affect the performance of the whole (Van Tiem, Moseley & Dessinger, 2001; Ruona, 2001). Supply chain management is the approach that deals with business process excellence and represents a new way of managing the business and relationships with other members of the supply chain (Lambert, 2008, p. 2). Organizations and functions are able to realize greater efficiencies and contribute to the firms competitive advantage by adopting a systems view of the supply chain organization (Drake & Schlachter, 2007). Although the principles of systems theory lend themselves to the concept of supply chain management, there had been little guidance form academia which led to the need of defining and building theory, tools and methods for successfully executing supply chain management activities (Lambert, 2008). The study helped develop supply chain management theory as well as identify unique and specific best practices for the firm. All three elements of Swansons theoretical foundations for performance improvement theory were foundational underpinnings for the study. Economics is quite aligned with system theory in acknowledging that the ultimate purpose of the system is survival, (Ruona, 2001, p. 115). Ruona (2001) quotes Jaros & Dostal, (1995) that systems theory and psychological theory align in the belief that an organization is composed of multi-minded individuals engaging in patterned activities (p. 123). 14

Definition of Key Terms Best Practices are the tactics, steps and approaches that directly influence superior effectiveness, timeliness, cycle-time and quality (Hill, 2000). Benchmarking is the practice of comparing competitive tactics, both internal and external, in order to identify those tactics that lead to superior results (Camp, 1989). Cycle-time is the measure of elapsed time between request and delivery. Effectiveness is the measure of output that a process produces in relation to the cost of executing the process. Firm is the subject of the case study in which the activities of supply chain management are being observed. Information from the firm is used with permission with the understanding that the firm not be disclosed. Data and information from the firm is referenced as internal reports Lean is the Removal of waste non-value-added processes from the business (Pope, 2008, p. 36). Performance Improvement for the purposes of this study is best defined using Gilberts definition of performance improvement as the science of effecting change in the behavior and/or environment of the subjects (Gilbert, 1996). Practice Is a method or technique used to perform a process step (Damelio, 1995, p. 2). Process is a repeatable sequence of steps used to transform and input into an output that has value (Damelio, 1995, p. 1).

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Program Management Best Practices are elements that are used to provide clear accountability which leads to timely management action to improve program performance. Quality is the measure of product or service conformity to requirements. Supplier Management Best Practices are this practices that have been identified by the firm as processes or approaches that are best in class, use and execution improves program performance. Supply Chain Management is the set of processes that accomplish the delivery of goods, services and information (Gartner, 2000, p. 1). Systems Engineering Best Practices are those processes and practices that have been identified by the firm as essential to functional execution in support of programmatic activities. Timeliness is the measures that are associated with meeting schedule commitments.

Assumptions and Limitations This was a qualitative case study designed to describe the perceptions of subject matter experts concerning supply chain management best practices. The researcher was aware of several potential limitations in this type of study. Typical in case studies the participants may not remain objective about their areas of expertise and therefore their interviews may reflect bias and distortions. Since only one firm and only nine sites in this firm were to be used as the sample, the researcher recognized that the data, findings, recommendations and conclusions thereof may not be generalizable to all industries 16

engaged in supply chain management activities. Further, the fact that the researcher was engaged in the supply chain management organization within the firm and supply chain activities may have influenced the researchers perceptions. In order to offset limitations, known and unknown and to increase the validity and reliability of the study the researcher used a data triangulation approach by employing a variety of data collection techniques. These techniques included in order of use were: extant data review, recorded and transcribed interviews, requesting job performer feedback, additional extant data review, analysis for discrepancies and trends, requesting technical expert involvement and feedback, observations, keeping a research journal and acknowledging known bias. Researcher bias was addressed through pilot-testing instruments, technical advisor review and participation in coding processes and review of triangulating data. Since the initial data-gathering approach used with participants were interviews conducted by phone, nonverbal communication was nonexistent for the interview portion of the study, adding to the possibility of miscommunication through lack of nonverbal facial and hand expression. Rigorous review of recorded interviews and the employ of listening and exploratory questioning techniques were used to minimize any impact.

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CHAPTER 2. LITERATURE REVIEW Introduction to the Literature Review The research questions in this study were designed to identify the best practices used in the firms Supply Chain Management organization and to determine how best practices are distinguished? Within these questions, there were two concepts that needed to be explored, to gain a full understanding of these questions, their significance, and ways of answering each question. These concepts were reviewed both internally and externally to the firm. These concepts were 1. Supply Chain Management (SCM) 2. Best Practice (BP) and what makes a best practice, best Each of these elements were dealt with individually in this chapter starting with review of the literature external to the firm, a review of literature found internal to the firm followed by a synthesis of data, and concluding with an approach for identifying human performance best practices in supply chain management.

External Supply Chain Management Overview Supply chain management represents the philosophy of managing technology and processes in such a way that the enterprise optimizes the delivery of goods, services and information (Gartner, 2000, p. 1). Supply chain management has increasingly become a strategic necessity for corporations. In recent years the validity and necessity of a robust and effective supply chain methodology has become evident with announcements of major schedule delays by aerospace corporations due to unknown and unforeseen supplier and internal inefficiencies and unacceptable performance. All 18

leverage and cost gains are being lost in alternate work strategies driven by schedule delays and the demands of customers or consideration. Interest in any and all performance improvement techniques and methodologies to address these performance and oversight issues are being pursued. Background of SCM Supply chain management has roots in the focus on lean and efficient manufacturing. These lean efficiencies were driven by corporations initiating cost saving changes to the business process. Supply chain management is seen as a process-driven approach to streamlining the business (Henderson, 2008). High-tech industries streamline by moving facilities closer to the customer, automotive manufactures developed just-in-time delivery, while the consumer industry achieves supply chain efficiencies through demand driven networking, (Henderson, 2008). Pope (2008) sums up the current plight in the industry stating that, Never before has there been a greater need to become more agile and responsive to customers that are demanding more variety and increased quality, delivered with less waste and in shorter lead times. Combine the current financial climate with the resulting uncertainty and caution that this creates in the marketplace, adding the unrelenting pressure from overseas competition. (p.36). Understanding the market and developing the appropriate supply chain best practices increases stability at the same time it decreases risk and associated costs. Increasingly business is looking for leaner efficiencies outside of the expected manufacturing environment. The entire business structure is under review, specifically interactions with customers and suppliers, in short the supply chain (Pope, 2008).

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SCM Trends For the last three decades, supply chain related strategies have been on the increase in aerospace corporations. While methods and procurement strategies for outsourcing non-core competencies have increased and improved procurement strategies, this has not been paralleled in supply chain management. Improving the performance of the supply chain requires that the organization increase its sphere of influence over the functions along the supply chain (Lapide, 2006). Supply chain management has at times been referred to as logistics; however there is a difference, supply chain management is those activities, departments, organizations or firms that network together to deliver a product to market (Hugos, 2006). The challenge has been to change the perception of the people and businesses that deliver product to a customer. Supply chain is not simply one group or organization, but the understanding that several functions, organizations and companies have to cooperate seamlessly for the supply chain to function smoothly. Critical Concepts in SCM The goal of supply chain management is improving or maximizing an organizations effectiveness, timeliness, cycle-time and quality. These overarching measures when managed correctly contribute to a corporations competitive advantage (Bay, et al., 2004; Drake & Schlachter, 2007). Each corporations supply chain must be responsive and efficient as indicated by these measure (Hugos, 2006). The supply chain typically includes the functions or organizations of: planning, supplier management, operations, logistics and material control.

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Planning Planning refers to the process used to organize the efforts required to complete, supplier management, operations, logistics and material control. Hugos (2006) identifies demand forecasting and inventory management as two efforts that are used to execute supply chain management planning that specifically apply to the research study. The Supply Chain Council, Inc. (2006) defined the plan portion of the supply chain process as; The development and establishment of courses of action over specified time periods that represented a projected appropriation of supply chain resources to meet supply chain requirements for the longest time fence constraints of supply resources. (p. 3.1.1). Demand forecasting referred to the process where planning decisions were made based on the quantity, period of performance, and required need date. Internal operations are scheduled and driven by the expected/forecast need. True demand forecasting includes all the organizations and departmental needs and resource requirements when developing the plan (Hugos, 2006). Forecast planning is the science of knowing your demand, capabilities, resources and constraints. Hugos (2006) refers to four methods used in forecasting; qualitative, causal, time series and simulation. Qualitative methods are subjective in nature having little or no historical data as a basis and are therefore based on personal opinion. The causal approach assumes that demand is related or caused by a market factor or some environmental influence. The time series approach is based on historical demand patterns that assume this is a valid indicator of future demand. The final forecast

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approach is simulation which combines both the time series and causal methods in an effort to imitate consumer behavior. Once the forecast is established, an aggregate plan is created. Aggregate plans define how all departments and organizations will work together. Decisions to buy (supplier management), build (operations), or pull from stock (material control) must be made and involve the processes and constraints of each of the other function in order to be successful. Supplier Management Supplier management, commonly referred to as sourcing by other industries, is described as the activity of acquiring or procuring the required inputs that fulfill the product or service need (Hugos, 2006). Supplier management takes the implied management of the supplier of product and service, and makes it implicit; the process of acquiring goods and services and managing the supplier providing those goods and services. Procurement traditionally can be divided into five categories; purchasing, consumption management, source selection, contract negotiation and contract management. The firm has the following four categories defining its supplier management process; define supplier requirements, select source, negotiate and award, and manage supplier performance. These are the major process categories that govern the supplier management function. The firms Supplier Management had a robust best practice approach that has identified 17 Supplier Management Best Practices (SMBP), which were reviewed at each

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site on an annual basis. It was the intent of this research to accept the 17 SMBP and address the lack of best practices in the other supply chain areas. Operations Operations as an organization, was responsible for producing a product. Also referred to as production or manufacturing, the term operations encompasses and infers the more complex nature of the organization than simply the mechanic with a wrench. Operations primary concern was how much of what product to produce at what timeframe and what intervals. Activities that fall within the realm of operations include the creation of master production schedules that take into account plan capacities, workload balancing, quality control and equipment maintenance (Hugos, 2006, p. 5). Logistics The logistics function incorporates the activities required to move inventory from one location to another, in recent years logistics experts were required to become more experienced with international trade and trafficking. As work became more global, the expertise in export/import compliance and negotiating the customs process was paramount. Logistics becomes a key partner in the planning stage and key points throughout the supply chain process as strategies, distribution points and the chain become more complex. This is particularly important when distribution points are controlled by other corporations and in some cases are the subcontractors to the firm. Material Control Inventory management, referred to in the research study as material control, is the set of techniques that are employed by a company to manage inventory levels and the internal movement and control of these materials to the points where they are needed. 23

The greatest impact to inventory management is demand planning. If all variables have been accounted for accurately, then the right parts will be in the right place at the right time. Inventory management is an ongoing process of balancing product inventory levels to meet demand and exploit economies of scale (Hugos, 2006, p. 58). Commercial/Defense Distinctions Unlike commercial enterprises which are in the business of predicting consumer purchasing and competing with other companies to produce similar products at lower costs while entering the market before the competition, the defense industry builds to contract award and not anticipation of consumer consumption. Therefore, inventory strategies such as seasonal inventory, economic order quantity, and safety inventory are neither cost effective nor efficient. Establishment of an aggregate plan and eliminating the span time or waste between events under the control of inventory management improves effectiveness and efficiency. The techniques that this industrys inventory management uses to improve effectiveness and efficiency are the elimination of unnecessary warehousing by delivering to point of use; stocking levels at the supplier instead of distribution centers; purchasing decisions that buy from local manufacturers, reducing transportation time and providing ready access, and requiring that these subcontractors kit or provide not a single element to production but a complete assembly for quick installation.

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Supply Chain Management in the Firm The firms supply chain model included all of the elements noted above and explained below: 1. Planningis the process that analyzes demand and supply, developing actions to meet the best procurement, production and delivery requirements. 2. Supplier Managementmore commonly known as procurement, are those processes used to procure goods and services to meet planned or emergent demand. 3. Operationsspecifically the roles involving producing a product whether through purchased or on-site manufactured parts to satisfy planned and emergent demands. 4. Logisticsincludes delivery of product to production and/or final delivery to the customer. It also includes the return process from the customer, production, and inventory stores. 5. Material Controlincludes those activities which involve storing and internal movement of parts, material and finished goods. The research study explored these functional areas to determine how best practices could be systematically identified and validated and what specific practices were being used in these areas that could be described as best practice. The five areas described above; planning, supplier management, operations, logistics and material control, are described as performance drivers that can be managed to produce the capabilities needed for a given supply chain (Hugos, 2006, p. 10). Key to successfully managing these drivers is identifying and replicating successful best practices in each of these functional areas.

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External Best Practice Literature Overview Knowledge of what a practice is and the role practices play within a process are required before a best practice can be understood and discussed. Processes govern all types of business execution. This execution follows the same general principles of analyzing organizations through conceptual frameworks, identifying key characteristics of environmental influence response, the ability to self regulate through internal feedback mechanisms, and the existence of sub-systems (Knowles, Holton III, & Swanson, 2005). The relationship of process and practice can be described as a multi-tiered system comprised of practices within a governing process regulated through a set of relationships (Ruona, 2001). Study of the practices in relationship to the process and system reinforce a more holistic world view that acknowledges that the whole is greater than the sum of its parts (Ruona, 2001). Best Practice Background Bertalanffys (1968) concept of general systems theory is viewed as the genesis of modern process models. Bertalanffys (1968) theories were developed from the study and understanding of a number of independent theories and his ability to see the parallelism and interrelation between them. General systems theory is the concept that system, or processes can be defined by the relationships that exist between the individual elements which exchange matter, or information, with their environment (Bertalanffy, 1968). Therefore elements and processes should not be studied solely in isolation, but in the group to better understand interactions and interrelations caused by organizations and

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the order that unifies the elements exposing their behavior within the whole (Bertalanffy, 1968). Bertalanffy (1968) developed the fist recognized systems model which shows how a self-regulating system functions. This systems model includes a response driven by a message initiated by a stimulus where the response creates feedback to the stimulus.

Figure 3. Self-regulating feedback model: General systems theory. By L. Bertalanffy (1969, p. 43). Reprinted with permission of George Braziller, Inc. Swanson and Holton III (2001) have provided the most recognizable process models which are associated with Bertalanffys (1968) basic systems theory model. The basic process model includes the elements of (a) inputs, (b) processes, and (c) output with a feedback loop to the other elements. This process exists and interacts with the environment creating a system. Figure 4 is the basic systems or process model (Swanson & Holton III, 2001).

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Figure 4. Basic process model: Reprinted with permission of the publisher. From Foundations of human resource development, copyright (2001, p. 17) by R. A. Swanson & E. F. Holton III, Berrett Koehler Publishers Inc., San Francisco, CA. All rights reserved. www.bkconnection.com Each process may contain one or more steps or tasks that are performed to complete that process. Practices are those internal methods that are executed to complete a process step or task. Damelio (1995) describes a practice as how a task is performed within the process. Figure 5 below illustrates an example of the four steps/tasks in a shaving process; prepare area to be shaved, shave area, clean equipment, and store equipment.

Figure 5. Process example: BASICS OF BENCHMARKING by R. Damelio. Copyright 1995 by TAYLOR & FRANCIS GROUP LLC - BOOKS. Reproduced with permission of TAYLOR & FRANCIS GROUP LLC - BOOKS in the format Dissertation via Copyright Clearance Center. 28

Figure 6 breaks down the shave area step from the shaving process, illustrating how shave area accomplished. Three shave area practices are described: straight razor, safety razor and electric razor. It is not uncommon for a process to consist of multiple steps that in turn potentially have multiple practices. Simply put, a practices is a sub-set activity of a process step, in essence, Damelios how.

Figure 6. Practice example: The basics of benchmarking. Adapted from: R. Damelio (1995). Reproduced with permission of TAYLOR & FRANCIS GROUP LLC - BOOKS in the format Dissertation via Copyright Clearance Center. Best practices are those sub-set steps that produce superior results. The key is on results which are the measurable points of the process. For the example above, in Figure 7, the result can be the measure of time required to execute all practices in each step in completing the process. This is referred to as the process cycle-time, or the measure of time used to complete a process. Cycle-time is only one of the measures that can be used 29

to judge a process, rate of errors (quality) and cost of execution are other measures that are used (Hill, 2000). As described in the above, it is the results and measures that are used to identify candidates to be pursued as best practices. The best practice identification process hinges on comparative metric analysis. Like metrics can be gathered and compared to identify process that should be explored to understand what practice or group of practices contribute to the superior results. Categorizing Best Practices Not all best practices should be judged as the same. Jarrar and Zairi (2000) have created three best practice groupings based on their study of Chevrons best practice implementation program. These three groups are adapted from Jarrar and Zairis (2000) publications and are as follows: 1. Unproven Practice: a practice that intuitively makes sense but has yet to be substantiated by data. 2. Good Practice: business results, technique, methodology, procedure or process that have been improved and substantiated by the data. 3. Proven Best Practice: based on analysis of the process, substantiation of performance data and widespread adoption and implementation by many organizations (Jarrar & Zairi, 2000, p. 8). Benchmarking Benchmarking was included in this study due to its synonymous existence with best practice in the literature. The researcher used benchmarking as the search criteria in order to increase the review of the best practice subject. Benchmarking has been described as a positive, proactive process to change operations in a structured fashion to achieve superior performance (Camp, 1989, p. 3). Damelio describes benchmarking as 30

an improvement process used to discover and incorporate best practices (1995, p. 1). Review of the literature indicates that the majority of the descriptive text available describes and discusses benchmarking in a proactive nature (Camp, 1989; Damelio, 1995; Kanigel, 2005), while the majority of the applied studies reviewed are reactionary in nature (Bjornberg, 2002; Drost, Frayne, Lowe, & Geringer, 2002; Hill, 2000; Jarrar & Zairi, 2000; Kyro, 2004; Mathaisel, Cathcart, & Comm, 2004; Williams, 2004; Zairi & Al-Mashari, 2005; Zairi & Whymark, 2000). As Camp (1989) notes that most businesses do not conduct benchmarking unless they are loosing competitive advantage, even though benchmarking is referred to as an ongoing process. Benchmarking is also referred to as best practice management (Jarrar & Zairi, 2000). Two established processes for benchmarking found in the literature review are summarized below. Damelios Benchmarking Process Basics Robert Damelio outlines a three-phase process for benchmarking best practices: analysis, discover and implementation. Figure 8 illustrates Damelios process.

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Figure 7. Three phases of benchmarking: The basics of benchmarking. Adapted from: R. Damelio (1995). Reproduced with permission of TAYLOR & FRANCIS GROUP LLC - BOOKS in the format Dissertation via Copyright Clearance Center. Damelio (1995) makes a clear distinction between a benchmarking process and a benchmarking system. The process is described as the steps performed to discover and incorporate those practices identified as best in to the day-to-day operation of the organization. A benchmarking system is the organizational infrastructure that is required to deploy and institutionalize a benchmarking process (Damelio, 1995). It is critical that a distinction between the two be understood. Identification and implementation of best practices does not ensure their success, Damelio (1995) likens the implementation of a process without a system to throwing a handful of sticks into a stream and expecting the result to alter the course of the flow of water. Camps Superior Performance Benchmarking Process Where Damelio (1995) points out that the benchmarking process is separate and distinct from a benchmark system, Camp combines the two for an integrated approach that includes stakeholders and organizational structure to ensure successful and sustained 32

implementation. Camp (1989) advocates using stakeholders and participants in the process along with a robust communication process that focuses on promoting the fact that ideas and practices implemented did not originate within the benchmarking organization, corporation or industry, stating that adoption is more likely with this knowledge. Camp (1989) refers to the technological breakthrough of bar coding which was originally adopted in the grocery industry as a benchmarked process spanning almost every industry today. As previously noted benchmarking is intertwined with measurement. The process is usually triggered by some sub-standard performance indicated by a measure and then once improvement is initiated a measurement records the impact and defines the success. The benchmarking process itself has been described as qualitative in nature, exploring the why behind the quantitative performance metric measures (Camp, 1998). Camp (1989) has developed a four phased approach; planning, analysis, integration and action, which incorporate ten unique steps, noted below. Planning phase 1. Identifying what is to be benchmarked 2. Identifying comparative companies 3. Determining data collection method and collect data Analysis phase 4. Determine current performance gap 5. Project future performance levels Integration phase 6. Communicate benchmark findings and gain acceptance 7. Establish functional goals

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Action phase 8. Develop action plans 9. Implement specific actions and monitor progress 10. Recalibrate benchmarks(Camp 1989, p. 17). Included are several steps that are not explicit or implied in other processes, namely projection of future performance and establishment of goals. These are specific and significant departures from other processes by implying integration into existing systems and target performance expectations. The tenth and final step of recalibration in the process implies a continuous improvement approach that monitors process performance and adjust based on deviation from expected norms (Camp, 1989). Types of Best Practices Studied With the evolution and widespread acceptance of the best practice movement that started in the mid 1970s with the Xerox Corporation, the best practice philosophy has been applied in a variety of environments and applications (Lapide, 2006). The researchers review of the literature indicated that the best practice concept was universal and not confined to a single industry or practice. The studies reviewed exposed numerous applications of best practices in the field. Tables 2 and 3 provide a summary of the external literature reviewed. Table 2 reports the type of best practices reviewed by author.

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Table 2. Types of External Best Practices Studied

Best Practices Studied Training Continuous Improvement Quality Authors Bjornberg, 2002; Drost, et al., 2002; Kyro, 2004 Hill, 2000; Zairi and Al-Mashari, 2005; Zairi and Whymark, 2000. Bhutta and Faizul, 1999; Devito and Morrison, 2000; Zairi and Whymark, 2000. Lapide, 2006; Mathaisel, et al., 2004 . Christmann, 2000 Jain, 2007. Bhutta and Faizul, 1999; Hill, 2000; Jain, 2007; Lee, Zailani, and Soh, 2006.

Business Process Implementation Forecasting Manufacturing

Settings Studied The setting in which the studies took place is reported in Table 3. Identification of the organization, or setting in which the study took place allowed the researcher to conclude that best practice use was not isolated to a specific function, however the majority of the studies reviewed did occur in manufacturing settings. Table 3 is not an exhaustive review, but is representative of the research reviewed external to the firm.

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Table 3. External Best Practice Setting

Best Practices Setting Human Resources Organization Environmental Management NASA/Aerospace Quality Organization Information Technology Organization Supply Chain Management Manufacturing Authors Bjornberg, 2002; Drost, et al., 2002. Christmann, 2000 Devito and Morrison, 2000. Hill, 2000; Jain, 2007. Zairi and Al-Mashari, 2005. Lapide, 2006. Bhutta and Faizul, 1999; Jain, 2007; Lee, Zailani, and Soh, 2006; Mathaisel, et al., 2004.

The external best practices studied and the settings in which they were studied showed that the best practice approach was varied and widely used and were not specific to any single setting or organization. The diversity of use indicated a general acceptance and understanding of best practice which aided the researcher in obtaining stakeholders and sponsorship, as well as cooperation from adjoining organizations and departments. This also indicated that there is significant generalizable data about the process. Table 4 methods, tools, and practice summary lists the studies reviewed noting the method and tools used to gather data along with documenting the specific approaches each study used to develop select and evaluate the best practices pursued.

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Table 4. Summary of Methods, Tools, and Practice External to the Defense Contractor
Research Method Design Action Research Tools used to collect Data Interpretive, concept analysis, survey, interview Quantitative surveys, Qualitative interviews Study method developing, selecting and evaluating best practices Development Selection Evaluation Identified need for N/A N/A scientific framework; Environmental scanning Authors Kyro, 2004

Mixed Methods

Developed identifying questions

Comparative analysis of performance measures

Developed measures of practice impact, measured impact on return on investment Customer survey of performance, process performance measures

Bjornberg, 2002

Qualitative

Case Study

Process focus; Identifying partners, Circulating questionnaires; analyzing best performance root cause; Gap analysis of internal performance N/A

Comparative analysis combined with outline for developing best practices

Bhutta & Hug, 1999

Qualitative

Surveys

Process and performance focused analysis N/A

Comparative analysis of internal resources N/A

Christmann, 2000

Qualitative

Audits, Surveys

Environmental scanning; Internal scanning of similar performance measures; Group review of applicable practices; Pilot testing; Model Plan, Do Study, Act Systems Theory grounding; Pilot test; Prototyping; Root cause of best performance; Develop Models

Devito & Morrison, 2000

Qualitative

Observations, Analysis, Interviews

Analysis of Enablers; Observation; Performance analysis

N/A

Lapide, 2006

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Table 4. (continued). Summary of Methods, Tools, and Practice External to the Defense Contractor
Research Method Design Qualitative Tools used to collect Data Case Study, Review of extant data Study method developing, selecting and evaluating best practices Development Selection Evaluation Process Leadership Environmental performance; commitment; scanning; Audit/assessment Incentives; Observation; events (routine); Training Competitive Assessment of analysis; implementation Identification and plan; self documentation; assessments Validation of applicability Comparative analysis Performance down select Benchmarking as a tool to establish goals Authors

Zairi & Whymark, 2000

Qualitative

Case Study, self completion survey, Questionnaire Survey of managers

Zairi & Mashari, 2005

Quantitative

Comparative analysis of performance scores for internal and external competitors Key business and process performance, Training of Sr. Mgmt in best practice processes; Development o f a BP model Plan, Collect, Analyze, Adapt N/A

Comparative analysis of performance scores for internal and external competitors

N/A

Drost, et al., 2002

Quantitative

Survey instrument

Key business and process performance, Training of Sr. Mgmt in best practice processes; Development o f a BP model Plan, Collect, Analyze, Adapt

N/A

Hill, 2000

Quantitative

Questionnaire

Barrier review; Comparative analysis; Review of Mgmt support

Noting that the absence of evaluation contributes to failure of implementation N/A

Lee, Zailani, & Soh, 2006

Quantitative

Extant literature review

Cataloging and documenting knowledge

Cataloging and documenting knowledge

Mathaisel, et al., 2004

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Best Practices Identified In reviewing of the literature there were a number of best practices identified. Table 5 lists the studies that were reviewed; benchmarking, adoption, continuous learning, process improvement, etc. and the best practices identified for each of the individual studies. Review of these studies revealed trends and similarities in some universal best practices. These recurring themes in order of recurrence were; the need for calculable return on monies invested in the best practice effort, both summative and confirmative measures, senior leadership support, internal and external surveying, and development of a best practice culture. Although not recurring in the literature reviewed several best practices made significant impressions on the researcher. These practices were the development of a culture of knowledge sharing, development of systems vs. silo mentality and communication of tacit vs. explicit information. Table 5 below shows the best practices found in the review of literature.

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Table 5. External Best Practices Identified in the Literature Review

Activity Benchmarking Best practices Senior management support and buy-in Culture that promotes teams incorporating ideas out side of resident group Valid business case based on ROI calculation prior to implementation Confirmative evaluations both financial and performance in nature Formal methodology for benchmarking Code of conduct for benchmarking organizations. (e.g. professionalism, effectiveness, and participant protection). Clarify objectives Understand the process in review The effort must be tied to the strategic and organizational initiatives Involve process owners Understand your own processes Benchmark internally and externally Focus on a best practice culture Set realistic goals Develop a process for implementing findings Employee participation Management commitment Quality department role and involvement. e.g. make it part of the continuous improvement process ROI considerations Summative and Confirmative measures External analysis Plan the study Form a benchmarking team Identify partners and stakeholders Collect and analyze information Adapt and improve Forecasting A/B/C Segmentation or value based segmentation of the activities, often termed as weighted values of each activity 80/20 rule; 20% of the activates will comprise 80% of the cost or impact, see the weighting to determine which Sales and Operations Planning, or Supply-Demand matching; balance supply and demand over time Demand Shaping; creating and shaping the customer short term demand based on available supply Collaborative Forecasting and Planning; coordinating with the customer to forecast and prepare for future demand Author Zairi, Al-Mashari, 2005

Benchmarking

Hill, 2000

Adoption

Lee, Zailani & Soh, 2006

Adoption

Ungan, 2004

Integration

Bhutta, Hug, 1999

Benchmarking

Lapide, 2006

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Table 5. (continued). External Best Practices Identified in the Literature Review

Activity Continuous Learning Best practices Common language and methodology Identified practice doesn't have to be best in class, it can simply be better than current. This approach promotes continuous scanning for improvement and fosters a culture receptive to change A process for identifying best practices A process for transfer of best practices Top management buy-in and support Ownership of the best practice Shared cross functional understanding of the practice Standardized best practice process Organizational structure that promotes system vs. silo thinking Culture that promotes knowledge sharing over personal technical expertise Continual contact and information exchange Reliance on communicating tacit vs. explicit information Allotment of appropriate time to complete the task Aligning the forecasting with the right function Forecasting activities planned in advanced Understanding how long inventory can reside in inventory; number of days in inventory Resources; physical, human, and organizational Capabilities; the capacity to deploy resources Combining new applications with existing resources (complementary assets) Complementary assets; allow firms to capture profits associated with strategy, technology, or innovation Potential for ROI must be established Dedicated and allotted time frames Analysis step Summative and confirmative measures A trained facilitator Continual communication Process for analyzing the process in question; what impact on customer satisfaction, employee involvement, and financial return Dedicated team to analyze address and implement recommended change Clear articulation of project purpose and goal Communication plan Select the right" tools for the project - not the available tools Recognition for team achievements Confirmative evaluation Author Zairi, Whymark, 2000

Competitiveness

Jarrar, Zairi, 2000

Forecasting

Jain, 2007

Competitive Advantage

Christmann, 2000

Teams

Devito, Morrison, 2000

Process Improvement

Dolan, 2003

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Internal Best Practice Literature Overview Process Modeling The firm also uses process modeling to govern and define process input, tasks, output and flow. This approach is defined as Process Based Management (PBM) and is the standard approach to business execution for the firm. Figure 10 illustrates a PBM process definition for the role of a procurement follow-up coordinator, (Internal reports, 2008).

Figure 8. PBM Post-award follow-up. Adapted from Internal reports from the firm. Reprinted with permission.

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All processes in the firm were measured by a combination of metrics. These metrics measure in some form the process effectiveness, timeliness, cycle-time, and quality. Types Best Practice Studied The firm had developed a website for some internal best practices that links organizations desiring independent assessments of their best practice implementation to Subject Matter Experts (SME) and on-line assessment tools. These assessments were charted, graphed and recorded for historical review and were conducted on an organizational level. Periodic self assessments were conducted or an organization could be requested be a group of SME to independently review organizational performance. There were options to differentiate between programs, but the assessment was conducted on the overall functional organization level. The best practice assessment tool currently recognizes, program management best practices, supplier management best practices, systems engineering best practices, financial best practices, and lean manufacturing (Internal reports, 2006). Assessments were accomplished by reviewing each best practice and ascertaining attribute implementation. Attributes are descriptors of activities, process, or measurements necessary to execute a given best practice. Some organizational best practices have designed and documented the attributes in such a manner that implementation and progression through the attributes in sequential order can assess the maturity of the best practice, and provide a specific measurable goal for progression through the maturity levels. Attributes are both quantitative and qualitative in nature.

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As an example, the supplier management best practice of Early Supplier and Supplier Management Involvement (Internal reports and documents, 2006) has the following five assessment attributes; 1. SM&P organization is actively engaged early in a gated business acquisition process. Identifying Supply Base risk, potential teammates/partners and coordinating agreements supporting early supplier involvement. 2. SM&P organization works with Supplier, Business Development and/or Sales & Marketing to create and implement appropriate Teaming/Partnership agreements. SM&P organization is engaged to some extent in gated review activity. 3. Key Suppliers are engaged early in supporting the definition of requirements (both technical and business) in support of Business opportunities. SM&P organization is engaged consistently in the gated review activity. 4. Key suppliers are engaged in the development and execution of new business opportunities where appropriate, SM&P organization is engaged in all gated review activity. 5. Key Suppliers are engaged in defining and supporting the strategic campaigns with potential customers when appropriate. Each organization that performs supplier management was expected to execute the best practice example above and best practice execution was assessed by the implementation of the attributes. Program Management Best Practices (PMBP) Program management was described as a business within a business as the firm produces a number of items for a variety of customers. For example the firm produces a cargo aircraft for the Air Force. For this case the effort to design, build and deliver the aircraft to the customer would be referred to as the Cargo Airlift Program. Program management best practices have been identified by the company and used over the past 50 years to guide program managers in the execution of their respective programs. 44

Program Management Best Practices were designed to maximize value and ensure performance to customer expectation, (Internal document, 2007). There were eight program management best practices: business offers, supplier integration, organization, create and review business plan, program execution and control, risk issues and opportunity management, help needed and independent reviews, and program communication. These Program Management Best Practices are integrated core elements needed for leading successful business providing clear accountability and promoting timely management action to improve program performance (Internal reports, 2006) Figure 11 is an illustration of the Program Management Best Practices and their interrelationship with each other.

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Figure 9. Program management best practices. From internal reports. Reprinted with permission. Each best practice has a short definition and five key implementation attributes or steps outlining successful implementation approaches. An example from has been adapted from internal reports from the firm. Create and Review Business Plan: The Business Plan will be the constant baseline reference against which progress will be measured. 1. Assess the business environment 2. Validate strategic objectives 3. Develop and publish strategic guidelines 4. Update the long range business plan 46

5. Conduct reviews to ensure expected progress is being made The health and maturity of a program is measured by how many of the attributes for the best practices are successfully implemented. The attributes are considered to be progressive and as a program implements a higher level of attribute, the more mature the program is considered. All programs were expected to implement the eight best practices at various attribute levels, for a program to be considered successful, it will have higher levels of attribute implementation with a goal of level 5 across the board. The program management department was pursuing a campaign of strive for five, concentrating on achieving attribute level five in all best practices, (Internal reports, 2007). Supplier Management Best Practices (SMBP) Supplier management (SM) best practices were similar to PMBP in that there were 17 supplier management best practices each having five implementation attributes, the expectation is that the more progression the supplier management function has through the attribute ranks the more mature the function, and the greater the potential success in support of a program. There were 17 SMBP, with five attributes each. The SMBP as listed and taught by the firms Supplier Management University are; 1. Supplier Management Process 2. Planning 3. Early Supplier and Supplier Management Involvement 4. Common Source Selection 47

5. Supplier Integrated into Decisions 6. Supplier Relationships 7. Organization Responsibility 8. Affordability and Cost Targets 9. Supplier Requirements 10. Configuration Management 11. Metrics and Performance Review 12. Integrated Schedule and Cost 13. Supplier Quality Management 14. Sub-Tier Supplier Management 15. Risk, Issues and Opportunity Management 16. Supplier Continuous Improvement 17. Communications The attribute levels are progressive in nature and successive implementation through the levels increases the potential for successful functional and programmatic execution. Examples of the progressive attribute for the SMBP Supplier Management Process are: 1. Processes are implemented in accordance with established standard practices 2. SM Leadership review SM process performance metrics 3. Self audits conducted, metrics kept, gap analysis performed and corrective actions tracked. Training plans and staffing needs based on analysis. 4. Common processes are used by the organization, unique processes reviewed periodically.

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5. Training and staffing and process implementation plans are employed using common processes and performance benchmarking. The SMBP differ in that best practices are sometimes grouped by category. The best practices categories are: process, tools, implementation, cross-practice integration, and environment. The best practice of; effective implementation of SM processes, and common source selection, are grouped under the category of Process since these are processes buyers use to perform those functions. Grouping best practices in to categories facilitates ease of execution and isolation for use and improvement. Those employees who are engaged in the development of processes and metrics would be best suited to work best practices in the Process and Tools categories, (Internal documents, 2006). Lean Manufacturing Lean manufacturing was a concept that has been evolving over the past 50 years targeting the removal of waste and non-value-added steps for business processes (Internal document, 2008). Pope further clarifies that consideration of this approach should not be strictly manufacturing in nature, but should extend to the entire business, covering the supply chain from supplier to customer (2008). Lean was comprised of the nine tactics which are the most powerful production tools designed to achieve a moving line by elimination of waste. The 9-tactics as they are referred to and described by the Firms Operations Council (Internal reports, 2006) are; 1. Value stream mapping and analysis 2. Balance the line 3. Standardize the work 4. Put visuals in place 49

5. Point of use staging 6. Establish feeder/Supply chain lines 7. Break-through process redesign along the main line 8. Convert line to a pulse line 9. Convert to moving line The firms Operations Council describes the lean manufacturing process or the 9-tactics as an approach that can best be used in a manufacturing environment to increase efficiency and the ability to manage for value (Internal report, 2006). These 9tactics were developed, pilot tested and successfully executed on most of the firms major airframes, both commercial and defense. The 9-tactics are production oriented but have value and are used throughout non-production environments within the firm. It is a requirement that all employees understand and implement the basics of lean manufacturing in everything that they do. It is with the caveat that successful lean manufacturing and 9-tactic plans must have the entire supply chain including the suppliers and support groups in order to be considered efficient and successful (Internal report, 2006). Unlike the program and supplier management best practices, the Lean best practices do not have progressive attributes that can be used to assess implementation maturity. Instead descriptive attributes and detailed outcomes are provided. As an example for value stream mapping and analysis the descriptive attributes are, set vision for future state, define current products and services, identify which product/service are most critical to the customer, and establish measures and targets. The expected outcomes are establishment of a common vision and instill a drive for change, thoroughly 50

understand current products and services and key process elements, and identify leverage areas for improvements, (Internal reports, 2006). Systems Engineering Best Practices (SEBP) Systems Engineering is defined by the International Council on Systems Engineering (INCOSE) as a branch of engineering whose responsibility is creating and executing an interdisciplinary process to ensure quality, trustworthy, cost efficient and schedule compliance throughout a systems entire life cycle, (1990, p. 1). Within the firm the Systems Engineering organization concentrates on the functional integration and requirements in contrast to Program Management which focuses on the programmatic components used to execute. Systems Engineering closely aligns with the theory and practice of systems theory, the holistic, nonlinear view in which the whole is greater than the sum of its parts. Following this mind-set, Systems Engineering had developed its own set of best practices that are focused on the functional aspect of program execution. There are five Systems Engineering Best Practices: requirements analysis; functional analysis and allocation; synthesis and integration; verification and validation; and systems analysis and control. The interrelationship between these best practices is specific. Contrary to the best practice integration relationship reviewed thus far Systems Engineering Best Practices includes several validation loops. Figure 12 illustrates this interrelationship.

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Figure 10. Systems engineering best practices. From: Internal reports. Reprinted with permission. Each Systems Engineering Best Practices has a number of attributes ranging from one to as many as 17. All best practice attributes are grouped into five subcategories in contrast to the other previously reviewed best practices that did not have subcategories. These five subcategories are; process, tools, implementation, cross-practice integration, and environment. Each subcategory has assessment attributes for each of the five best practices. In total there are 139 assessment attributes. Table 6 shows the relationship.

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Table 6. SEBP Assessment Matrix

Components Implementation

Cross-Process Integration

Requirements Analysis Functional Analysis and Allocation Synthesis and Integration Verification and Validation Systems Analysis and Control Totals

4 1 4 6 7 22

3 1 3 5 7 19

15 9 12 10 17 63

2 3 4 3 3 15

3 2 6 4 5 20

Adapted from Systems Engineering, Best Practices, Internal reports (2006). Reprinted with permission. Financial Best Practices The financial best practices were created and are maintained by the finance function. They are a mix of programmatic and functional in nature. The financial best practices are; employee development, data driven/real time estimating, earned value management, integrated schedules, work authorization/budget process, contracting for business results, indirect cost management, and estimate at completion process. Of these eight financial best practices only two are referenced on the firms Best Practice Assessment Tool, earned value management and integrated schedules. The financial best practices include a descriptive best practice charter and a various number of attributes with between four and ten attributes per best practice.

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Attributes 27 16 29 28 39 139

Systems Engineering Best Practices Process Tools

Environment

Synthesis of Literature Review In order for supply chain management to be best in class, it must be able to identify those activities that were best in its class, ensure that they were best and then effectively implement the best practices. The techniques reviewed and explored in the literature review when combined provide for an approach which revealed those activities that contributed to a best in class supply chain management organization. A review of the literature indicated that SCM was a new organizational approach that exists external and internally to the firm. Although the organizational approach was new it combined older and usually highly developed functional disciplines. The functions identified as being typical functions in SCM both externally and internally to the firm were; planning, operations, supplier management, logistics and material control. One of the key external sources reviewed was Lapides (2007) article benchmarking best practices in SCM. Several key points were made that are directly applicable to the study. Lapide (2007) warns against comparisons that assume similarity between organizations. The applicability of this observation to the study is based on the diversity between the firms nine sites and the former corporate/company processes and procedures. Further the researcher intends to limit metric review to those that measure effectiveness, timeliness, cycle-time and quality. Other key points made by Lapide (2007) were that successful implementation is enabled through command of the supply chain and ensuring that practices and processes work together in a holistic fashion. Adherence to the systems theory foundation reinforces these points within the study, and reinforces the concept of SCM as a single organization. 54

Review of the types of best practices used in firm showed several cross practice trends (Internal reports and documents, 2006) . Table 7 lists the common best practices of program, supplier management, Lean and systems engineering. Financial best practices are not listed since there are none in common with the others; best practices are noted by an X in each corresponding column.

Table 7. Best Practices in the Firm

Best Practices Process Tools Implementation Cross-Process Integration Environment Supplier Integration/Early Involvement Organization Planned business activities Risk, Issues & Opportunity Mgmt. Help needed & independent reviews Communication PMBP SMBP X X X X X X X X X X X Lean+ SEBP X X X X X

X X X X X X

X X

Of specific interest were the category groupings found in supplier management best practices and systems engineering best practices: Process, Tools, Implementation, Cross Practice Integration and Environment. Of the other practices, similarities existed between supplier integration, organization, planning, RI&O and communication. These findings lead the researcher to surmise that best practices in the SCM functions should be in categories of process, tools, implementation, cross process integration, and environment, and should have comparative apples-to-apples metrics measuring effectiveness, timeliness, cycle-time, and quality. These best practices will be identified as Unproven, Good, or Proven following Jarrar & Zairis (2000) best practices 55

categorization process to help users understand the varying levels of risk in implementation associated with practices with an unproven record. Evaluation Key to the HPT process model is recurring evaluation. In the majority of the best practices studied, both internal and external to the firm, evaluation to some extent was evident or implied. Review of the best practices internal to the firm identified measurable attributes that seem most effective with current and historical data available based on a consistent baseline. It would therefore seem appropriate that each best practice that is identified have some accompanying evaluation attributes. Methodology In choosing a research methodology to pursue the researcher relied on the review of the external literature since methodology used for internal studies was not available. Of the twelve external best practice studies reviewed two were mixed methods, six were qualitative and four were quantitative in nature. The tools used in the studies varied from case studies, surveys and questionnaires, observation, interviews and review of extant data. The most prevalent format for conducting research in a real life setting is the case study method (Yin, 2003). Researchers establish boundaries for case studies to narrow their focus. The case is bound by a focus either on unique description or on theory refinement and building, (Marsick & Watkins, 1997, p. 142). Gathering information about organizational performance can be done simply and efficiently through interviews (Gupta, 1999). Interviews tended to be the main data gathering method. Surveys and questionnaires are one of the largest data gathering

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techniques and were used extensively by the majority of the studies reviewed (Swanson, Watkins, & Marsick, 1997). Observations play several key roles in research. Unstructured observation help in identifying situations for in-depth observation, and structured observation give greater depth and breadth into the phenomenon observed. Gupta (1999) also points out that structured observation reduces bias, increases reliability, and provides a more accurate way to report data. Caution must be taken during observation not to alter either the process or setting which is being observed and should allow for enough time for the researcher to distinguish between events and behavior (Swanson, et al., 1997). In summary, the researcher focused the research on the functional areas of planning, operations, logistics and material control. Specifically exploring elements or activities concerning each functions process, tools, implementation, cross process integration and environment, by collecting and comparing metrics that measure effectiveness, timeliness, cycle-time and quality. Table 8 represents the initial base line for the supply chain management best practices study.

Table 8. Supply Chain Management Best Practice Baseline

Planning Process Tools Implementation Cross Process Integration Environment X X X X X Supplier Management N/A N/A N/A N/A N/A Operations X X X X X Logistics X X X X X Material Control X X X X X

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This baseline describes the areas to be looked in and the elements to be looked at and concludes Phase 1) Establish Baseline, of the study. In moving to Phase 2) Analyze Literature, the study continued the literature review in light of the defining baseline above. Best practices have descriptions and measurable defining attributes based on the information resultant from completion of the remaining phases in the study, all classified in the appropriate unproven, good, or proven category. These identified best practices have the identified attributes reviewed against the BEM using a cause and effect analysis to ensure that each attribute is classified appropriately. The research of participant behavior section of this study was accomplished using the embedded case study approach, identifying comparative metrics, interviewing identified job performers and identifying appropriate candidates for observation. The specific approaches used are detailed in Chapter 3 Research Methods. The results of the study identified supply chain management best practices designed to improve the firms competitive advantage, while simultaneously developing an approach for identifying and validating best practices which has uses internally to the firm as well as implications for the fields of supply chain management, best practice and HPT.

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CHAPTER 3. RESEARCH DESIGN Introduction The purpose of this case study research strategy was to describe best practices in supply chain management. In this qualitative case study the researcher describes the perceptions of subject matter experts and employees in their functional roles. Data was collected for this study using extant data analysis, interviews and observations of a sample of nine of the firms facility locations. The analysis and synthesis was conducted on the information collected to generate conclusions and recommendations about best practice use and identification in supply chain management. The literature review exposed a limited amount of data and information both internally and externally concerning best practices in supply chain management. It was anticipated that the findings would be relevant to the supplier management organizations in general, and specifically to the firm and the field of Training & Performance Improvement.

Research Purpose The research design was an empirical embedded case study. Research was conducted and data analyzed through the theoretical lenses of human performance technology and behavioral engineering. The study described experiences of a firm engaged in supply chain management activities in a real world setting focusing on best practice deployment and selection.

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Research Questions Questions addressed by the research were 1. How can best practices in supply chain management be systematically identified and validated? 2. To what extent are the practices used by the firm in the Supply Chain Management Organization best practices? Rationale for a Case Study Research Design Research is defined as an orderly investigative process for the purpose of creating new knowledge (Swanson, 2005, p. 4). Organizations pursue research to answer questions about the organization itself and to understand phenomena within the organization and environmental factors that affect the organization (Swanson, 2005). Gall, et al., (2007) state that although there are a multitude of definitions and descriptions of knowledge, most can be grouped into four categories. These categories are description, prediction, improvement and explanation. According to Yin (2003), case study is used to investigate phenomenon in its real life context. Further, the type of research selected should answer the research questions proposed while considering the control a researcher has over observed behavior and whether the focus is contemporary or historical. Case study research is used to answer how, what and why questions (Ellinger et al., 2005). The research was interested in looking at the theory of best practice in light of the emerging reality which exists in the organizational setting, the research questions were how and why questions which are best explored through experimental, historical or case study methods. Only the experimental approach has control over behavior and due to 60

ethical considerations the researcher did not exert control over any of the subjects in the study, since historical research does not consider contemporary events and the questions are how and why oriented, the appropriate research method of choice is the case study method (Yin, 2003). The descriptive function is usually associated with qualitative research, which makes careful descriptions of phenomena of interest to the researcher. A descriptive case study research was proposed since the research questions asked for the phenomenon of best practice to be described in a real world setting (Gall et al., 2007).

Overview of Research Approach A review of the literature on case study methods indicated that the most prevalent format for conducting case studies were a series of steps or phases used to guide the process. These steps are proposed by (Marsick & Watkins, 1997, p.140) and are listed below: 1. Bounding the case, through theory development and sample selection 2. Selecting data collection methods that are appropriate to the task 3. Collecting and Analyzing data for patterns as they emerge Describing and interpreting the phenomenon in light of what is know For the study, the researcher followed the processes described and outlined above to select an embedded case study of a single case with multiple units of analysis which are embedded within the bounded case which is the Supply Chain Management

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organization. The embedded units were the individual sites and programs that together comprise the organization (Yin, 2003).

Research Sample The research study was conducted using purposeful sampling design which is described as a strategy in which particular settings, persons, or events are selected deliberately in order to provide important information that cannot be gotten from other choices (Maxwell, 1996, p. 70). The research study was designed to explore job performers perceptions of best practices in the supply chain management organization. Subject matter experts in this organization were chosen as the participants in the study. Subject matter experts were defined as those who met the following criteria: 1. A minimum of 5 years of experience in their current functional position. 2. Were recognized by the company as senior, or expert in their area as designated by the classification of level 4 or higher as indicated by the companys job classification system. 3. Considered the Process Owner or identified by the process owner for the process under review. Based on the subject matter expert definition the researcher compiled a list of 50 potential participants for the research. A letter of introduction, (see Appendix B: Letter of Introduction) was distributed to the potential candidates via intra-company e-mail. For those that responded favorably, a consent form (see Appendix C Informed Consent Form) was obtained, signed and submitted to the researcher to be stored by the researcher. Ensuring confidentiality is discussed later in the chapter under the heading Contacting Respondents. 62

Research Design Case study research is most appropriate when the researcher is interested in how, what, and why questions (Ellinger, et al., 2005, p. 330). The research reviews the theory of best practice in light of the emerging reality which exists in the firms organizational setting. For the research study the setting was supply chain management which included nine major facilities in the chosen firm. Case Study Protocol This study was characterized as a descriptive embedded case study. The research design followed a case study protocol designed to outline the procedures and general rules that govern the research conducted. The protocol also outlined the instruments, phases of execution and products produced at each phase of the study. Following a protocol increases the reliability of the study. The general case study outline suggested by Yin (2003) was overlaid in the four phases of this study, refer to Figure 1 SCM Embedded Case Study. Replication logic was used including identical lines of questioning at the nine sites and when possible the same types of validation for each case. The protocol was designed to provide explicit and well planed activities to help remove the variability in data collection from differing units of analysis whether different sites or specific programs that may bridge several sites. The case study protocol has the following sections (Yin, 2003) Phase 1 1. Best practice baseline 2. Create share point as a data exchange point for participants and sponsors 3. Review of current metric/measures 63

4. Review current state of supply chain management organization 5. Collect relevant extant data, process management metrics, metrics supporting company/organization vision, and any other objective or subjective measures that exist Phase 2 6. Select cases 7. Interview protocol Phase 3 8. Distribute letter of introduction 9. Interviews 10. Identify candidates for observation 11. Observation protocol 12. Individual embedded case study reports (a) Document current case specific structure of SCM organization (b) Document questions and responses (c) Document observations i. Document function where best practice exists ii. Explain functional structure and best practice iii. Document extant supporting best practice metric/measures Phase 4 13. Cause & effect analysis 14. Analyze and Synthesize case reports and draw cross case conclusions (a) What was the most common method used to identify and validate best practices? (b) To what extent were practices, best practices? 15. Develop policy statements for best practices and classify as unproven, good or proven 16. Conclusions and recommendations 17. Final cross case report 64

Phase 1 used review of the literature and extant data to establish a baseline for researching supply chain management best practices in the firm. In phase 2 further analysis of the literature guided the creation of the interview protocol. In phase 3 subject matter experts were interviewed and potential best practices were identified. Using this information candidates were selected for observation and an observation protocol was developed. Once the observations were completed individual case study reports were written about the information gleaned from each of the nine sites. In phase 4 information from the individual case studies and data collected from the observations were analyzed using Gilberts (1996) behavioral engineering model to aid in identifying the attributes used to implement and evaluate the best practices identified. The final cross case analysis included conclusions and recommendations about best practices in the firms supply chain management organization.

Data Collection Procedures The researcher triangulated data by obtaining data from multiple sources to validate the data collection process. There were several types of data collected and various collection techniques used. Collection techniques included data retrieval, both extant and historical followed by interviews and concluding with observations. These were appropriate techniques for gathering relevant data in a case study (Gupta, 1999). Continuing throughout the study the researcher conducted a review of the literature related to best practices focused on the function of supply chain management, best practices, human performance technology and behavioral engineering. The literature review focused on the history of supply chain management, various supply chain 65

management processes used in the field, various techniques used to execute aspects of and the goals and efficacy of supply chain management as used by industry. The data for the literature review were obtained from information sources relevant to the research process; ProQuest, ERIC, professional journals and periodicals, books, web-sites and other resources. Document/Extant Data Review Data Collection Procedures Several types of data were collected through the four phases of the study using various collection techniques following the strategic needs assessment approach. These included retrieving extant and historical data, interviews, and observations (Gupta, 1999). Literature Review The literature reviewed includes information identifying best practices used in the industry. The findings lead the researcher to surmise that best practices in the supply chain management functions were categories of process, tools, implementation, cross process integration, and environment, and should have had comparative apples-toapples metrics measuring effectiveness, timeliness, cycle-time, and quality. The best practices should be identified as unproven, good, or proven following Jarrar & Zairis (2000) best practices categorization process to help users understand the varying levels of risk in implementation associated with practices with an unproven record. Further review of literature highlighted areas for further exploration and lead to interviews of subjects in those areas. To understand the complexity of supply chain management and best practices the researcher obtained samples of the tools and instruments that were utilized in the field 66

and specifically in the firm chosen as the subject of this study. By reviewing this data, valuable information was obtained by the researcher on techniques and tools used in the execution of supply chain management that contribute to best in class performance. The documents to be gathered included sample self-assessments of job functions within the process (what does a job performer do?), sample third party assessments of job classifications (what does management think the job performer does?), sample process management plans (what is the process?), descriptions of the organizations definition and use of best practices and supply chain management and the methodologies used, and tools used to assess progress. Copies of all documents referred to during interviews were requested and provided. All Personal Identifying Information (PII) was redacted, and documents that were used to execute business or used as a reference were added to an interactive web-site that the sponsor and the researcher had access to and used to manage the information and knowledge. This web-site was titled the Supply Chain Management Best Practice Research (SCMBP Research) web-site. Only the sponsor had read access to the SCMBP Research site, while the researcher had the ability to change information and data in the web-site. The SCMBP Research site was established to ensure easy retrieval of information and to aid in organizing the review, ensuring access to the document for analysis and coding. The web-site was the main tool used for creating the case study database described in the instrumentation section that follows. Interviews The interview techniques used in the research project were both structured and unstructured. Unstructured interviews were used initially to gain a more generalized 67

understanding of specific topics of interest (Leedy, 1999). Results from the unstructured interviews were incorporated into structured interviews which included a set of objectives with a corresponding list of questions used to guide the interview process (Gupta, 1999). Both the literature review and interviews exposed potential best practices which were further investigated using observation. The interviews were the primary data collection method used in the research and provided data to be assessed in choosing candidates for observation. The interview data provided the foundation for the research study. The interview guide (see Appendix A) consists of ten questions and several follow-up probes designed to answer the research questions. Interview questions were derived through critical review of the literature on supply chain management and best practices, and the conceptual framework developed by the researcher. The researcher conducted structured interviews using the structured interview guide to insure an organized interview process, and to ensure replication and consistency throughout all the interviews conducted. In designing the interview guide and ensuring that the desired information was elicited, a rigorous interview development process was conducted. The researcher obtained information from the review of the literature and subsequent development of the conceptual framework, from which the preliminary draft was created. The researcher provided the preliminary draft to a company peer group for review and feedback. This peer review feedback was incorporated into a second draft which the researcher then used to conduct unstructured interviews to gather additional feedback. This second set of feedback information was incorporated and pilot tested with a representative group of job performers. 68

Once the pilot tests were completed and changes incorporated the researcher conducted interviews with subject matter experts from the various sites and programs reporting to the supply chain management organization. The researcher conducted interviews over the telephone since the experts were from various sites throughout the United States and overseas. With the permission of participants and consent forms on file the researcher conducted 27 audio recorded interviews. Each tape was reviewed immediately after the interview and notes were made of the researchers experience. The audio tapes were transcribed by the researcher removing any personal identifying information in the process. Observations Observation is essential for assessing relevant behavior and environmental conditions (Yin, 2003, p. 86). Observational data can be collected in both structured and unstructured formats. The unstructured observation format was used and provided an accurate avenue for data reporting. To obtain deeper insight into perceptions of supply chain management and best practices and to ensure triangulation of the data collected the researcher conducted field observations of key data that surfaced during review of themes and codes from the interview data. The protocol followed for observation was based on Taylors (1998) time and motion studies. The observation protocol was: 1. Identify multiple, different practitioners of a process. 2. Study the exact series of practices used to perform each step in the process. 3. Monitor activities and time required to execute each practice in the process steps, identify quickest performance cycle-time, or best activity. 69

4. Eliminate all false, slow or useless activities. 5. Document into a series the quickest and best execution techniques and tools. All observational data was documented and stored ion the researchers SCMBP Research file ease of access for review during the case study report writing.

Instrumentation The quality of research designs are measured by the logical test used to judge validity and reliability. The case study research method uses several tests to ensure that any empirical social research studies are quality research projects. These tests include; construct validity, external validity, and reliability (Yin, 2003). Construct validity establishes the appropriate operational measures for the research study (Yin, 2003). The research study used multiple tactics as described by Yin (2003) to ensure construct validity, these tactics were: 1) use of multiple sources of evidence, 2) establishment of a chain of evidence, 3) having key informants review data, drafts and reports. To test for construct validity the researcher addresses each of these tactics. 1. Extant data is collected in phases one and two. Data is also to be collected through interviews, and observations. 2. A chain of evidence is to be established through execution of each of the phase, with specific objectives, data and products to be produced in each phase as outlined in the case study protocol earlier in chapter three. 3. Having an investigator and technical personnel review draft case study report and data collected. A list of technical advisors is noted earlier in Chapter 3 under Investigator and Technical Personnel.

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By using these three case study tactics the researcher tests for construct validity in the research project. External validity is defined as knowing whether a studys findings are generalizable beyond the immediate case study (Yin, 2003, p. 37). The research used analytical generalization to generalize sets of results to the broader theory of best practices in supply chain management. The research used the embedded case study method using multiple points of analysis to test for replication between the nine sites within the overall case. This was intended to increase the opportunity of extensive analysis while enhancing insights into the single case which increased the external validity of the findings. In this case study nine sites were individual embedded cases studied and then cross analyzed as a whole, these sites were from various geographic locations and have multiple and varied core competencies. Reliability demonstrates that the operations of a study such as the data collection procedures can be repeated, with the same results (Yin, 2003, p. 34). Yin (2003) suggests employing one of two tactics to ensure reliability, either a rigorous case study protocol or the development of a case study database. To ensure reliability the researcher used both the case study protocol and a case study database. The researcher designed a rigorous case study protocol governing the execution of the case study using the four phase approach typical to case studies and strategic needs assessments. The case study protocol is outlined earlier in this chapter. The researcher initiated a case study database using a Share-point to facilitate data collection, and warehousing. The database included the two separate data collections suggested by Yin (2003), extant or evidentiary based data and reports of the investigator. 71

This allows the researcher to have a full view of the research approach and all redacted documentation and communication that transpired during the research project. Included in the research database are the researchers case study notes, documents that support the case study, any and all tabular, metric material, and the case study narrative. The case study narrative was the documentation that the researcher gathered and questions answered by the researcher when addressing each of the firms sites. The narrative was written following the case study protocol.

Data Analysis and Synthesis The most difficult aspect of conducting a case study is analyzing the data. Development of a case study data analysis strategy ensures that evidence [is treated] fairly, produce [es] compelling analytic conclusions and rules out alternative interpretations (Yin, 2003, p. 111). Developing a case description was the general strategy governing the research. This was achieved by describing how best practices are identified and validated, and then identifying to what extent the best practices used in the firm were best. At the completion of the data gathering process, the extant and interview data were collected and transcribed. The researcher then organized the data for review and analysis to identify trends and anomalies that required further exploration through observation. When completed the observational data was recorded and included for analysis. The researcher followed the analysis and synthesis process described below.

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Data Analysis Yin (2003) states that case study research of a qualitative nature require research and systematic data analysis to be rigorous and follow specific protocols. To accomplish this, the researcher used information from the literature review, the conceptual framework, and the interview questions to develop the initial set of analysis categories; Appendix D illustrates the analysis coding categories. Revisions were made to the coding scheme based on review of the initial interviews and information that resulted, additional categories identified from the interviews were incorporated into the matrix. The researcher conducted focus groups with technical advisors from the firm. These focus groups followed the process outlined below to ensure validity and authenticity of the researchers analysis. 1. Two technical advisors from the firm will read initial interview transcript results, apply the coding scheme documenting notes on applicability and any additional categories required. 2. The researcher and the technical advisors will jointly review the coding results and reconcile any differences reaching consensus on changes and additions. 3. A second interview transcript results will be reviewed by the technical advisors; and steps one and two will be repeated. 4. Analysis of themes and patterns that emerge as a result of this process of review with the technical advisors will lead to the researcher making required changes to the coding categories and the conceptual framework. Each interview was documented and recordings transcribed individually. These individual documents were coded using an off the shelf coding program with the resultant data recorded in an interview matrix (see Appendix E: Interview Data Analysis Matrix). Numbers represent the participants interviewed with the coding categories on the left. Each interview was reviewed and analyzed for themes and patterns, with quotes being 73

recorded in the appropriate categories using a coding process. Pattern matching to identify themes was the specific analytic technique that was used since this study was concerned with identifying those themes in these practices and processes that contribute to the overall performance of a specific activity that can be replicated as best in class or best practice. The matrix helped the researcher to visually identify patterns among recorded interview responses. Throughout the process the researcher continued to refine and revise the process by updating data categories. Each observation was recorded on individual analysis forms which in turn were coded and the data recorded in an observation matrix. An observational data analysis matrix similar to Appendix E was developed and populated based on the patterns, trends and anomalies exposed during the interview data analysis and subsequent observation. The observational data was reviewed following the same coding process used in the interview data analysis. Observational patterns were visually identified from the data recorded. At the conclusion of the observational portion of the data analysis process a number of potential best practices and various organizational strengths were identified. The researcher identified enablers to the best practice and organizational strength, by analyzing each using a cause and effect diagram overlaid with Gilberts (1996) behavioral engineering aspects; data, systems, incentives, knowledge, capacity, and motive. Figure 14 illustrates the analysis tool the researcher proposed and used to identify, explore, and graphically display all of the possibilities that lead to the discovery of the root causes, (Brassard & Ritter, 1994). 74

The basic cause and effect diagram, also known as a fishbone diagram was used to identify why the typical cause dispersions occur. For the purpose of the study the researcher was interested in dispersions along the BEM aspects, the cause being the best practice in question. At each point in the analysis the question of why the dispersion occurs was documented under each aspect. Repetitive questioning drilled down to the eventual root cause or enabler. This root cause dispersion analysis aided in defining enablers used to implement and assess the identified best practices (Brassard & Ritter, 1994).

Figure 11. BEM cause & effect diagram. Adapted from: T. F. Gilbert (1996). Data Synthesis To facilitate synthesis of the data collected the researcher created Table 9 to visually review document, interview, and observation similarities resulting from the various collection techniques. These modes of analysis assisted the researcher in

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triangulating the data by identifying differences and similarities between data sources and were instrumental in development of the study findings.

Table 9. Data Source Synthesis Matrix

Coding Categories Organizational reporting to SCMO Existence of SCM function Elements of SCM SCM element consistency between Programs What is a best practice How are best practices identified Best practices selection/implementation Organizational strengths Strength Measurements Best practice communication Best practice incorporation Data Collection Technique Document Analysis Interviews Observations

The researcher created Table 10 to facilitate synthesis of the behavioral engineering enablers for the best practices and organizational strengths identified during observational data analysis. Best practices and organizational strengths were coded during the data analysis portion of the study and were reflected in table 3.2 horizontally under their respective categories. The behavioral engineering categories were represented on the left vertically under environmental supports or repertory of behavior. 76

Table 10. Behavioral Engineering Enabler Synthesis Matrix

Behavioral Engineering Enabler Synthesis Matrix Observation Enablers Enabler Appearance in BEM Categories

Environment

Knowledge

Individual

Incentive

Behavior

Capacity

Systems

Organization Communication Tools People Totals

Maintaining the confidentiality of participants was of supreme importance, therefore the researcher assigned codes for each of the participants. The coding created was WS_10001 through WS_10053. All names were removed from any recordings, transcriptions, submitted documents and notes. Throughout the review, analysis and synthesis process the participant codes were used in place of names. All notes and quotes that were recorded and documented were done using the coding process. This ensured consistency throughout the research enabling the researcher to reference and cross reference pertinent data. The synthesis process enabled the researcher to divine patterns and themes within and across the research participants, locations and questions. Aiding the synthesis process the researcher designed a Participant Background Synthesis Matrix frequency table, (see Appendix C). This matrix was designed to enable cross case analysis of the variations among participants based on professional, educational, work history, and experiential 77

Motive

Data

background. Using a multilayered approach provided the researcher with interpretative insight into the data and findings. The researcher achieved this through analysis of the dimensions of the findings through pattern and theme analysis and diligently searching for inconsistencies in the data and findings. This was compared to the previous literature review.

Contacting Respondents Several documents were included to ensure organizational support, site and program access and confidentiality documentation. A letter of introduction adapted from Yins (2003, p. 71) example was created for site and program leadership (see Appendix B: Letter of Introduction). This was signed by the study sponsor allowing the researcher access to personnel for interview and questioning purposes as well as facility and program access for observation of activities. A copy of the Informed Consent Form included (see Appendix D) which was provided electronically to the participants selected to participate in the research study. All participants have been granted access to a Share point that provides the schedule of activities, access to current published information about the study. Those that requested access were given read/write capabilities in order to actively participate by attaching relevant documentation and participating by providing feed-back on their perception of the process. Confidentiality shall be maintained by the researcher through various methods including removal of any and all personally identifying identification through coding of information and expurgation from documentation.

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Organization Conducting the Study The Supply Chain Management Organization conducted the research study. The Fort Walton Beach facility served as the base for the study.

Investigators and Technical Personnel The Principle Investigator (PI) was Jay F. Chance Supplier Program Manager in the Special Operations Forces Global Services & Support division, the study was conducted for the dual purposes of providing pertinent information to the supply chain management organization about the use and execution of best practices in the field, and as a submittal for partial fulfillment of the requirements for a Ph.D. in Training and Performance Improvement form Capella University. Technical Advisors fall into two categories; the dissertation committee and Firm employees participating in a focus group fashioned to help guide the study and publication of the final report. The technical advisors were 1. Paul Hardt Ed.D. Dissertation Mentor, Capella University, 2. Keith Johansen Ph. D. Dissertation Committee member, Capella University 3. Claribel Purcell Ph.D. Dissertation Committee member, Capella University 4. Susan Taylor Ph.D. Dissertation Committee member, Capella University 5. Keith Castleberry, Fort Walton Beach, Supplier Management Site Lead and the PIs immediate supervisor.. 6. David Hill, Fort Walton Beach, SM Procurement Manager. 7. Ken Shaw, Vice President Supply Chain Management, Sponsor of the study.

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Ethics The firm chosen for this study has developed over the past decade one of the most comprehensive ethical standard in the aerospace industry, from specific policy and procedures to internal Institutional Review Boards, and review groups for internal surveys. The research study adopted the ecological ethics approach where researchers judge the morality of their decisions and actions in terms of the participants culture and the larger social systems of which they are part (Gall et al., 2007, p. 460). In this case the mutual culture and larger social system that the researcher and participants had in common was the defense contract company. This common foundation and the principles outlined in the Collaborative Institutional Training Initiative (CITI) guided the ethical considerations and conduct of both the researcher and the participants.

Timeline Figure 12 is a graphical representation of the study and depicts the four phases of the research study and the major milestones conducted in completing the research study.

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Figure 12. Research schedule The research study was to describe best practices in supply chain management. This qualitative case study was designed to describe the perceptions of job performers in each of the supply chain management functional roles. The data that was collected for this study through extant data analysis, interviews and observations was from nine of the firms facility locations. Analysis and synthesis of the data collected generated conclusions and recommendations about best practice use and identification for the supply chain management organization and the field of Training & Performance Improvement.

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CHAPTER 4. RESULTS Introduction The purpose of this study is to describe supply chain management and best practice identification, use and validation, in the firms newly created Supply Chain Management Organization. This study was an empirical embedded case study describing the real world experiences of participants from multiple sites and locations within a firm engaged in supply chain management activities. The researcher conducted the research to answer the questions: 1. How can best practices in supply chain management be systematically identified and validated? 2. Are the practices used by the firm in the Supply Chain Management Organization best practices? With no prior studies being conducted in the firm addressing supply chain management and best practice identification, use and validation the researcher conducted the study using the study protocol as a guide. Chapter 4 presents the demographics of the study, a description of the embedded case study units, presentation of the embedded case study unit summaries, cross case analysis, and synthesis of themes. The following outlines chapter 4: 1. Demographics 2. Embedded case unit description (a) General case description (b) Interview description (c) Observation description (d) Behavioral engineering model cause and effect overlay description 3. Presentation of embedded case studies

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4. Cross case analysis (a) Themes in interviews (b) Themes in Observations 5. Synthesis of Themes Study Demographics: Who Participated? The Supply Chain Management Organization granted access to participants and sites in order to conduct the study. This organization included nine sites or facilities across the United States and overseas. The Supply Chain Management Organization is relatively new, having been created in 2007, and has been very aggressive in developing and deploying a supply chain management business concept for the firm. A divisional growth goal of 2X5 (two times the growth in five years) has challenged the new organization to initiate unique and creative approaches to supporting this expected growth. The researcher compiled the embedded unit data and developed the following aggregate demographic analysis. There were 45 subject matter experts recommended and approached to participate in the study. Twenty-seven of the subject matter experts agreed to participate in the study. All the participants were employed within the Supply Chain Management Organization and were a diverse mix of gender, educational background, work experience, and hierarchical levels, within the subject matter expert definition. Figures 15, 16, 17 and 18 show in graphical form the demographics of the participants which represented the diverse participant perceptions included in the study. Figure 19 shows the participants exposure with the subject matter based on responses to questions in those categories. 83

Participant Gender

F 25%

M 75%

Figure13. Participant gender

Figure 14. Participant education

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Figure 15. Participant work background and experience

Figure 16. Hierarchical levels of the study participants 85

Figure 17. Participant knowledge of the subject Description of the Case Study The research was conducted in an embedded case study approach, using the individual sites as embedded units within the overall case. Use of the embedded case study approach allowed the researcher to quickly identify subject matter experts, solicit participation in a group forum, conduct interviews and observations in a manner that minimized participant interaction and thus the potential to bias follow-on participant responses. Presentation of the case studies includes a general description of the embedded case study unit, coded participant interview responses, summary of the observations, and 86

ends with identification of enablers from the observations through a behavioral engineering cause and effect overlay analysis. General Case Study Description A general description of each case unit is included in the case study presentation. This description includes a general outline of the embedded case current organizational structure in regards to the Supply Chain Management Organization and the embedded case specific participation statistics. Embedded units were ascribed random numbering and no descriptors were included to ensure anonymity of the cases presented. Case study statistics represent the percentage of participant participation, questions answered, and percentage of responses coded. Each embedded case study unit had identified five subject matter experts which the researcher approached for participation. In all, only 56% of the subject matter experts solicited agreed to participate. The subject matter expert participation represented below indicates the percentage of participation each site contributed towards the total 45 subject matter experts. 100% participation by an individual site would have equaled a total of 11%. Of the ten questions asked in the semi-structured interviews, participants responded to 82%, with 96% of the responses being coded for analysis. In some of the embedded units, coded responses outweighed the questions answered percentage, indicating that the response had multiple applications. The breakdown by embedded case is included in Table 12.

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Table 11. Embedded Unit Response Coding

Site SME Participation Questions answered Responses Coded S01 4% 95% 105% S06 9% 88% 111% S09 7% 93% 104% S10 7% 90% 111% S12 4% 70% 43% S13 2% 60% 50% S16 7% 83% 120% S20 7% 70% 110% S30 9% 90% 111% Total 56% 82% avg. 96% avg.

Description of Interviews Conducted Semi structured interviews were conduct within each case following the interview guide (see Attachment A). The interview guide provided the interview questions that were developed to answer the research questions, in most cases follow-up questions were asked to provide clearer understanding of participant perceptions. With participant consent the interviews were digitally recorded, with recordings and researcher notes being transcribed. Coding of Interviews These transcriptions were reviewed by the researcher and the study technical advisors to develop a coding scheme to be used to aid in interview analysis and identify interview themes. Transcriptions were then loaded into a software program which enabled the researcher to code all the transcriptions. The coding categories developed by the researcher and the technical advisors were: 1. Descriptions of Supply Chain Management (SCM) in the company 2. Identify SCM in the company 3. Descriptions of SCM in the industry 4. Identify SCM in the industry 5. Measures of SCM 6. SCM suggestions 88

7. Descriptions of Benchmarking (BM) 8. Experience with BM 9. Descriptions of BP in the company 10. Identify BP in the company 11. Descriptions of BP in the industry 12. Identify BP in the industry 13. Best practices (BP) in the field 14. BP suggestions 15. Measures of BP 16. Organizational Strength Each interview transcription was analyzed with participants responses being coded in each of the coding categories. This enabled the researcher to quickly and efficiently find and review participant response information that was pertinent in answering the research questions. The coding software enabled the researcher to quickly compile results by embedded case unit, and in the final analysis quickly enabled cross case analysis of common data to identify cross case themes. Results of the interviews are presented by embedded case noting participant responses in each of the coded areas. Participant identifiers have been redacted from the source material. The researcher used responses verbatim from the participants. Where subject matter expert descriptors allowed for site, or participant identification the researcher used alternate descriptors, noted in [brackets], for those activities presented. Each embedded case is presented with participants responses reported in the respective

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coding categories. Not all embedded cases had reportable responses in each coding category. Description of Observations Field observations were conducted at each site to further understand potential best practices in the Supply Chain Management Organization that were identified while analyzing participants coded responses. Several of the study questions were designed to elicit participant responses that would lead the researcher to observational opportunities. All observational opportunities suggested were pursued. The researcher used two observational techniques in conducting the field observations in the study, Taylors (1998) five step physical task observation protocol which was identified and outlined in the methods section of Swansons (2007) knowledge task analysis for those tasks that were predominately behavioral in nature. A summary of the observation is recorded in each embedded case presentation. As with presenting interview responses, the researcher used alternate descriptors for activities or actions that would allow a reader with general knowledge of the firm to identify sites or participants. In several cases subject matter suggestions for observation were similar, and in several cases the suggestions were identical activities that had been previously benchmarked and replicated. For those instances, the researcher recorded the initial observation and referenced that observation in subsequent case reports noting unique specifics. Forecasting is an example that was reported as a best practice for multiple sites; in most cases the activity was similar even though some tools varied.

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Behavioral Engineering Cause & Effect Overlay Analysis Following each observation the researcher identified enablers to each potential best practice by analyzing the practice using a cause and effect diagram overlaid with the Behavioral Engineering Model (BEM) categories of; data, knowledge, systems, capacity, incentive and motive (Gilbert, 1996). Table 13 represents a graphic example of this Behavioral Engineering Model Cause & Effect Overlay (BEM/C&E). The researcher created a BEM/C&E for each observation using input from the literature and the subject matter experts involved in the observation. The researcher first identified the initial enablers (or causes) of an observation and continued to drill down into each BEM category to the root cause, or root enabler by identifying the cause or enabler for each subsequent enabler until no other root enabler could be identified. Presented in the BEM/C&E are the root enablers for each of the potential best practices categorized in each of the BEM categories. Table 13 provides an example of the BEM/C&E results documentation table.

Table 12. BEM/C&E Example Data Environmental Systems Incentive

Knowledge Behavioral

Capacity

Motive

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Embedded Case Studies Presented: Nine Sites in the Firm The following is a presentation of the nine embedded case study units. A brief organizational summary is followed by participation statistics. Coded responses precede a summary of observations followed by a BEM/C&E for each observation from the embedded case. Embedded Case S01 Results Embedded case unit S01 is predominately a program based organizational structure referencing only operations and supplier management as the key roles supporting the supply chain management organization. S01 contributed 4% of the subject matter expert participation, with 95% of the semi-structured interview questions being answered and 105% of those responses being coded for analysis. Interviews Participant coded interview responses for Case S01 are reported below. Describe SCM in the Firm Participants description of supply chain management within the firm noted several overarching activities within the functional role, and tended to depict current or local activity. Participants stated: Supply Chain Management from a logistics spares analysis and spares engineering point of view, take the parts that are required for a platform or product, and establish the initial provisioning effort and [then] plan [how] to support the customer. Part of this is a sustainment spares analysis for the customer.

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This participant went on to say: Its when you take a need for an item through the identification of a need for it, to finding a source, preparing and then delivering that item back to the person that identified the need or the area that needs the item. Another participant stated: Supply chain management identifies the need and what that need is for. [Defining] what the characteristics of that need are. Once the need has been identified and a characteristic established it goes into the supply chain management stage, that is when supply chain management finds a source, procures the item, pays for it [and then] getting it to shipping and then getting it to the place it needs to be and providing status throughout the whole effort. Describe SCM in the industry Descriptions of supply chain management found in the industry were similar to participant descriptions within the firm with the exception that participants noted that portions of supply chain management can be contracted out. One participant stated: The supply chain itself is, how are you going to get the parts, where will they be stored, how are they delivered to the end user and how are they transported and cycled for repair. That is the chain. How you manage it can vary from internal management to external like a Third Party Logistics (3PL) service. Measure SCM Supply chain management was perceived to be measured in the following manner based on specific activity associated with the supply chain management effort: There should be an assessment based on efficiency. [Questions like] is it cost efficient to lay in a lot of spares? How you balance the need for the parts to the need of the parts you have available. Are lead-times a problem, how do you manage the whole thing. How do you manage what you put in your pipeline, whats on shelf for repairable. [These are questions that need to be asked.] [Are we providing] a balance of supply and demand at the cheapest cost.

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Describe Benchmarking When asked to describe the techniques used to benchmark best practices in Case S01, the participant stated that: If I knew what [performance I was trying to improve and what measures] I needed then I can go to another site that had similar metrics and measures. I can then ask them how they did it. If I have a comparative metrics with theirs then I know who is doing something better than me. In this case I would try to get three or four [sites that are doing something similar and have similar measures] and see which best practice approach is the best. Some participants indicated that they would call around and identify what other sites were doing as a way to identify best practices. Identify Best Practices in the Firm Participants used the following statements to identify best practices in use within the firm: There are global best practices like earned value management, employee timekeeping system, and then there are program specific best practices that affect execution. Identify Best Practices in the Firm Participant noted the following approaches use to identify best practices within the firm. 1. A best practice is basically a person that identifies the way that theyre doing things as the best way of doing something. 2. These have been given to us. We are told that they are best practices, my understanding is that somebody has analyzed this and found that these practices are better than someone elses practices. 3. I was directed to use them.

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Describe Best Practices in the Industry Industry descriptions differed from internal descriptions by being more detailed rather than using specific examples as indicated by participants statement: It would be a process that is proven to be one of the top processes. It would be cost efficient, the one process that happens to work the best of all the others. Measure Best Practices Participants noted that measures of best practices fell into the following categories 1. Return of investment, without improvement it may not be a best practice. 2. It has been deemed so by being tested against other similar practices. It not a whim, but something that is proven. 3. Measures of efficiency and cost impacts Another participant stated: If you have a proven process that works, that you have leaned out, then this is as good as it gets unless you develop some transformation technology [that significantly changes the process]. Technology is a driver for change [as a process improvement]. Organizational Strength Participants perceptions of organizational strengths for case S01 included automated report functions and databases. Participants stated: We are the model Logistic Support Analysis database. We are the most comprehensive in the company. Because the customer [when they negotiated the contract] decided that they wanted to maintain [a database] for the life of the airframe. We can supply data on a moments notice to anyone. Another participant noted the reports available: There are table entries, mismatches, exceptions, and incomplete reports available. These are scripts run once a month and we use that to measure the health of the data-base.

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Additional input indicated that site S01 had a robust paperless system. Participants stated: We are virtually paperless, we track everything through a computer so I can at any given moment gave you a real time computer generated no guesswork earned value management performance [schedule performance index and cost performance index] on and instants [notice] instead of in the future. This removes subjectivity [and] guesswork. This is all computer generated and system data. Observations The opportunities for observation within case S01 were Paperless systems and Logistics Support Analysis activities. Paperless Participant responses indicated that paperless activity should be considered a best practice. In order to observe this activity the researcher was advised by several participants to observe traditional work activity and then observe that same work at case S01 which had transitioned most of its activities to a paperless system. After observing several activities in both settings the researcher noted that it was the tendency of persons performing activities to use paper based transactions when that opportunity was available. In some cases this was due to contributing organizations internal desires to hold physical files. The researcher did not find requirements that physical files be maintained, only data records were required to be stored. It was observed that while physical files were stated as being easier for locating information, in practice this was not the case. Accessing the same data in a paperless filing system took a similar or quicker amount of time. It was also noted that physical transactions took twice the time to execute over paperless systems in the best circumstances, while in

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the majority of opportunities physical transactions were exponentially longer in their execution. Paperless systems and transactions where physical transactions were no longer possible were embraced and transitions to those systems were reported to be shorter in duration with fewer problems. It was noted that paperless systems had the advantage of quick, seamless transactions. Sorting and data mining were also significantly improved. One of the most important benefits that the researcher noted was that paperless transactions were boundary-less in nature. An organization could truly operate in a virtual fashion and proximity and location were not relevant with paperless systems and transactions. Enablers for paperless systems and transactions were the systems themselves; incentives included limiting access and the ability to keep paper systems in parallel. Once the system was in place, users motivation to learn and use the new system increased along with their capacity to perform other functions and roles. Logistics Support Analysis Logistics Support Analysis (LSA) is a support role activity or process related specifically to programs. The LSA process is predominately product support, or post product sale in nature with up-front activity occurring in the design phase to ensure ease of maintenance and repair in the support phase. LSA has a prime role in developing analytical data used to influence design of a system or platform to enhance maintainability. This data includes logistics decisions as a means to minimize expected support costs.

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The LSA program observed was primarily the responsibility of a cross functional integrated team including; the customer, engineering, logistics, contracts, cost estimating, technical publications specialists and material which includes suppliers and subcontractors. When executed correctly, the LSA program ensures the most cost effective approach for a product or platform, during the design phase as opposed to support programs that may be required to adjust to platforms and programs that did not have long range planning considerations for support.

Behavioral Engineering Cause & Effect Overlay Table 13. Case S01 BEM/C&E for Paperless Best Practice
Data - Cross functional Environmental Systems - Short find time - Sort and locate - Automated Record and Information Management - Immediate receipt - Quick response - Cross functional - Cross Site - Historical archive - Short term data transactions Capacity - Increased capacity Incentive - Paper obsolescence - Reduced filings size - Limits on Records Information Management findings

Knowledge Behavioral

Motive - Less to manage

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Table 14. Case S01 BEM/C&E Logistics Support Analysis Enablers

Data - Cross functional - Quantity - Quality Systems - Demand planning - Access to functional, customer and supply base Incentive - Leads to other opportunities - Exposure - Success is rewarded

Environmental

Behavioral

Knowledge - Understand customer data - Experience - Cross functional team

Capacity - Ability to manage large amounts of data - Team support

Motive - Long term - Predictable - Improved internal relationships

Embedded Case S06 Results Case unit S06 conforms to the typical structure and functions cited in the literature representation of a supply chain management organization. S06 organizational structure includes the functional roles of logistics, warehousing, planning, sourcing, product support and finance. S06 links these physical roles with systems, information, analysis and communications capabilities. The following are participant responses recorded in the coding categories for case S06 which contributed 9% of the subject matter experts participating in the study. 88% of the semi-structured interview questions were answered with 111% of the questions being coded for analysis. Interviews Participant coded interview responses for Case S06 are reported below.

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Describe SCM in the Firm Participants were asked to describe supply chain management within the firm, noting the functions, activities and capabilities which were associated with the supply chain management organization. Participants stated that: The functions I associate with supply chain management are contracts and pricing and finance personal. You also have procurement, delivery management people, [who are responsible for]tracking and monitoring deliveries, and supplier program managers who track whats going on at the suppliers facility for problems. Also included are manufacturing engineers, production is involved building parts in house, and close out people working supplier invoices, DD250s [sale/transfer of product], and accounts receivable and payable. Another participant described supply chain management in broad overarching terms, stating that supply chain management is: [Supply Chain Management is] transactional in nature. It is from the receipt of an order from the customer to the time I deliver the product. In some cases the subject matter expert described supply chain management in relation to the contract types, or performance expectations. One participant explained: Supply chain management usually has performance based contracts which states we are to give the end user a certain level of performance, for whatever it is that they require within a [performance threshold] window. In these instances you're not tied to a specific date and time. Another participant described supply chain management within the firm in relation to their functional role and program which they support, stating: As an asset manager, it depends on the structure of the program. [In most cases] a requisition goes to a buyer through a system thats been pre-populated with strategic agreements. That order gets placed, and there is obviously time in queue until that requirement is received and delivered. So there is a contract in place Finance activities take place, we monitor schedule activities. [Requirements activity initiates a procurement contract which ends in a financial transaction that is monitored by the asset manager].

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Describe SCM in the industry Based on responses, site S06 had extensive experience with supply chain management as it exists in the industry. Participants described supply chain management within the industry in a variety of ways. One participant described both the physical functions and the non-physical capabilities in the following manner: [A] supply chain is in essence the linkage of providing products and or service and all the supporting components that it takes to make a particular component. [An] example [would be] the material items that should be procured and fabricated and assembled to make the final goods, [these are a part of the supply chain]. The supply chain is all the way from where the requirement originated to where the final produced part ends. From a service perspective it would be similar, the service may be provided by the company or there may be reach-back into some of the suppliers and the supply base. Its the chain of all the components that it takes to deliver a product and or service. Its shipping, storage and every thing to get an unfinished material to a finished product. Other descriptions included those found in the literature and as depicted by various societies and organizations focused on supply chain activity. One participant noted in their description that Supply chain management is the end to end process for planning, delivery and execution of material to support a customers requirement. I always think of the supply chain in terms of the Supply Chain Operations Reference model (SCOR), where they have the phases defined as plan, make, and delivery. Then you have the reverse logistics piece. Other participants noted the non-physical activities and roles of supply chain management in the industry as It is the end to end process and almost a continuous loop process to an extent. But it is that pipeline of information and systems that facilitate the delivery of a product or service. It is a series of activities that are usually executed by functions.

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Additional comments were Supply chain management has to do with the philosophical question of, do [we] have the tools, the training [and] the systems, to facilitate an efficient product delivery? Do we have the right demand planning, and do we have the right engineering support for say an out of production type of item? Its the oversight required to assemble all those pieces of the supply chain in the most efficient way possible. Cost efficient, schedule efficient. An over sight from a management perspective. Some participants noted specific roles and capabilities provided by supply chain management. One participant stated: 1. SCM is the supplier management, operations, product support and supply support functions. 2. Its not just the material management piece, but also all the supporting functions which include pricing, contracts, operations. I think they all play a part in the supply chain function. 3. All the action required to, deliver a product and the actions required to purchase from vendors to build a product to deliver to our customer. Identify SCM in the Firm When asked to identify supply chain management within the firm participants were able to identify several roles and activities in supply chain management as well as identifying how they relate to the supply chain management function and role. Participants stated: So supply chain management is management of that supply which includes knowing you have the proper metrics defined to achieve the end result of what the supply chain responsible for. [It is] the responsiveness of the supply chain to properly forecast requirements, to establish the infrastructure, including IT, warehousing, repairing, and procurement contract with the supply base to support your supply chain. One participant was able to articulate their part in the supply chain management organization. This participant stated: 102

I consider myself to be part of supply chain management; I am part of the core supply chain management (product support) which has Responsibility, Accountability, and Authority (RAA) for process definition, tools definition and skills definition. Measure SCM Participants provided the following list of supply chain management measures: 1. Cost reduction initiatives 2. Process health metrics 3. Timeliness 4. Cycle-time 5. Quality 6. Efficiency 7. Schedule Describe Bench Marking When asked to describe what benchmarking was and how the participant might use benchmarking to support performance improvement one participant responded: In theory you get everyone in room and you analyze the task at hand. Discuss and brainstorm all the issues so that by the end of the session you have a list of all the activities required to complete the job. You use those activities that yield better results than the others as the steps to follow to execute the process which then is a best practice. Describe Best Practices in the Firm Several of the semi-structured interview questions were designed to understand participants perceptions of best practices. These questions asked the participants to describe best practices as there were seen within the firm and where possible to identify internal and external best practices. Participants described best practices as: 103

A best practice is a process, skill or tool that achieves the best results or provides the best value. Identify Best Practices in the Firm Several participants indicated that identification of best practices were more involved that viewing what was best. Participants responded that to identify a best practice you look for: [A best practices is] an industry standard. We can see this by how well its adapted to your business and your process, how well its communicated and replicated in our program areas. It has been found to be the best tool, the best communication flow. One participant identified a current activity as a best practice, explaining what the benefits and impact were for the activity stating: I think overall the concept of what used to be called the [cross functional leadership team] is a best practice to identify[ing] subject matter experts within a certain discipline across all the sites to standardize skills and tools and processes should be considered a best practice. This leads to more efficient organizations and provides the opportunity to transfer skills across different sites and programs and also gives you a more cost effective organization, because you are not reporting multiple tools or processes. Other participants noted some of the internal problems the firm is having concerning best practices and how they are deployed and communicated. Concerning constant change in the workplace one participant stated: Since our business continues to evolve there is no standard way to approach similar tasks in a repetitive manner. Our problem is that you are trying to write a standard approach to a business that is continually evolving. So what were trying to do is get a handle on what we are doing today and write a best practice for today knowing that we will have to touch it in a periodic fashion and change or update the practice. Another pointed out concerns with communicating best practices by stating: if it isnt a documented best practice, but it was adopted because it was a solution to a problem that existed on a given program, sometimes that stuff is hard to 104

[data] mine and becomes a matter of how well we are communication our success across the organization, and when in the process of replicating that process, does it become part of our standardized documented process that becomes best practices. Yet another stated: Its not just something that we do it is something that is documented. If it is that good we should have it written down so that it becomes a process. To my knowledge this does not exist. Describe Best Practices in the industry Participants described best practices in the industry based on the experience they have had with supply chain management related organizations they are affiliated with. Participants stated that these were usually vetted and had some historical performance to support a claim of best practice. Participants identified: [That] if you look at the SCOR model it covers that in detail. The same participant described the aspects of a best practice as: Specific tasks that link elements of the supply chain together and I believe a best practice is coming up with the most efficient process, and being able to repeat the process and come up with predictable results. Identify Best Practices in the industry When asked to identify best practices in the industry, one participant responded based on their membership in supply chain related organizations and the literature that they review. The participant stated: Through the knowledge of the industry, literature, research into supply chain society, the council for supply chain management, and professionals. I am a member of those organizations, and receive publications and attend seminars and meetings.

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Measure Best Practices Descriptions of best practice measures were numerous and similar to those described for measuring supply chain management. A list of participants response describing best practice measures are: 1. Health metrics 2. Process segment measures 3. Timeliness 4. Cycle-time 5. Quality 6. Efficiency 7. Should have cross site applicability 8. Compliance 9. Process impact (lean) Organizational Strength Site S06 participants had numerous examples of what they considered to be organizational strengths. One participant response that was chosen for observation was: Our focus on developing the skills of our employees is a strong point for our organization. Another participant response which was observed was: I think the fact that we have full representation across the programs and we have the right people identified as team members who can make decisions to identify the best practices and deploy those best practices across the sites. Yet another participant response that was observed was: Earned value management requirements do not lend themselves [as measures of performance] to [the] performance based [contract ] environment, and a need for 106

real time data. So we adapted what we called a spares checkbook where we tried to monitor the day to day activity of supply chain management from a financial management point of view. If I place the order how much is that going to cost me, how do I balance that against the metrics I trying to perform against? It became a really integrated tool between finance and asset management community. Another respondent indicated that retention and development of subject matter experts was an organizational strength when they stated: The ability to develop experts in certain fields and provide an environment in which they can improve and expand their knowledge is a strength that we have. During discussions with subject matter experts about organizational strengths there were two participants that offered ideas that they considered being organizational strengths that had yet to be developed. Included are the participants comments that: We really need to get everyone to speak the same language because we dont speak the same language in the company [and this impedes progress and performance]. Another participant indicated that the organization should [The organization needs to] develop an estimating model that can accurately estimate [the cost of] the supply chain activity. For example if you have a particular program that you were supporting [using] the total supply chain, or everything that [is] needed [in order to] support the air craft [including] having parts go from [the] source all the way through installation on the air craft. We need to develop models that can replicate that [activity], and do it efficiently. [We need the ability to] generate a number for [cost] proposal purposes. Observations Participant responses yielded the following opportunities for observation of potential best practices. Cross Functional Leadership Teams An observation of successful decision and direction communication were teams were represented by a Cross Functional Leadership Team (CFLT). The CFLT is a cross 107

functional team comprised of leadership and subject matter experts from all functions involved in the execution of a strategic level activity. This cross functional representation ensures that typical silo, individual site or functional decision making is avoided. All decisions and direction involve input and consideration of the benefits and impacts to each organization. No decision is made and directed without careful consideration of each input. Cross functional and cross case participation ensure that each function and site have their specific requirements and needs fully vetted by the group. The impact from CFLT type activities is the cross site/functional participation and communication of this participation to the tactical level. In essence the tactical decisions and direction provided has been vetted by leadership on a strategic level. From the observations it was noted that effective and desired communication should involve decisions making and organizational direction type activities. The activities noted were both strategic and tactical in nature. Observation and analysis of the literature lead the researcher to note that participants indicated that clear representative participation in organizational decision making was essential to successful execution. Knowledge and visibility of their interest being presented and considered contributed to individual consensus and successful execution of the resulting decisions and directions. It was noted during observation that although some participants expectations may not have been met, as long as they were considered and addressed, participant consensus was typically universal. Additional observational notes show that representative participation in the big picture decisions or strategic planning was also instrumental in consensus and successful execution of the decisions made. The researcher noted that the level of communication 108

about the participation and decision activity was instrumental in implementation and execution success. The CFLT environmental enablers for data and systems, and the behavioral enablers for knowledge and capacity are numerous. The cross site and cross functional nature of the CFLT provides a reach back into all organizational data, systems, knowledge base and individual capacity that cannot be achieved individually. This reach-back is limited only to what is available within the firm. Environmental incentives and behavioral motives are equally strong. The incentive to participate and have your site and function represented in strategic decision and policy making efforts is overwhelming. Non-participation could mean a site or function having to implement activities or decisions that adversely impact the site or function. Behavioral motivation are individual needs and requirements being represented and considered at a strategic level, individual needs and requirements being heard and considered were noted as powerful motivators for consensus and successful execution. Spares Checkbook Of the cost tracking tools available in the company the tool referred to as a spares checkbook was indicated as a potential best practice in analysis of participant responses. Review of the literature indicates that the spares checkbook tool is used with the Performance Based Logistics (PBL) type contracts. Although the tool observed was manual, there were efforts under way to automate the process and associated tools. The researcher had several opportunities to observe subject matter experts using a spares checkbook and noted that this tool differed from the more prevalent earned value method of cost tracking associated with traditional transaction based contracts. 109 The

spares checkbook was a spreadsheet based program used to track open purchase order commitments against the budgeted cost for work scheduled. This enabled the SME to track payment from the customer against the companys payment to supplier real-time, and balance that against the actual costs and scope of work scheduled. Since PBL contracts are based on a sustained level of performance and not the typical transactional activity in which payment is based on a hard delivery of a product making financial calculations easy. The spares check book allows for the manager to track the financial progress and commitments to the customers payment. Ensuring that the firm is not over or under committed for the activity performed. The researcher noted that enablers of the spares checkbook included environmental enablers of; cross functional data, common systems, cross functional systems, and accuracy incentives. The behavioral enablers were subject matter expertise with the systems and knowing what data and how to obtain it. People Development Analysis of participant responses which suggested that subject matter experts thorough knowledge of supply chain management in the literature, industry and participation in specific supply chain management societies lead the researcher to observe several organizational initiatives targeting people development. These initiatives were designed to give the entire supply chain management staff the opportunity to benefit from activities and knowledge that had historically been available to only senior members of an organization or subject matter experts alone. These organizational initiatives were targeted at continuous training and process development. In both cases the focus was to take information from literature and cutting 110

edge developments by recognized societies to develop a progressive training approach that disseminated this information through the organization. The training was developed with input from several universities which conducted frequent studies or had curriculum specific to supply chain management. The training was progressive in nature providing an overview of supply chain management in general for entry level staff and non-supply chain management personnel desiring a quick introduction to the supply chain concept in the firm. Additional training was designed to give a more in depth understanding into specific areas of supply chain management which includes continuous updates by special participants on new and unique concepts that the organization and supply chain experts are pursuing. Along with progressive training development, processes were being redesigned to support the supply chain management approach to business support and execution. This was deemed critical in that the new training would not be practiced or applicable if the participants continued to do business in the previous manner. People development had enablers in all of the behavioral engineering model cause and effect analysis. Data was provided in a manner consistent with the training and process redesign. Systems had been migrated to support the new requirement; incentives were in place which changed measurement criteria in support of systems and data presentation. The whole effort was targeted toward improving employee knowledge and value. The expectation that increased knowledge and experience would improve personal value in the organization leading to greater opportunities was noted as a significant motivator for staff members. Improvements in data, systems, knowledge contributed to increased capacity for the participants involved. 111

Subject Matter Expert Development and Retention The role of the subject matter expert was recognized by participants as an essential contributor to the supply chain management organizations success. During the observations and working with subject matter experts the researcher was able to group experts into two broad categories, those experts that had specific subject, activity or tool knowledge and those experts that had broad expertise across multiple tools, activities and functions. It was noted during observations that development of a subject matter expert was something that occurred over time and was a unique combination of random opportunity and personal motivation. It was also noted that once a subject matter expert was identified, those that had support in developing their expertise also had greater impact upon the organization. In cases where experts were not able to pursue additional development, either through literature, membership in expertise aligned societies and training opportunities, their participation and recognition was typically limited to local sites and organizations. Enablers of subject matter expertise are both motive and incentive. While personal motivation attributes to achieving subject matter expert status, it was noted that the appropriate incentives contribute to the effectiveness of a subject matter expert. Organizational Roles in a Cross Functional Setting The supply chain management organization was in the process of gathering information in an effort to define its organizational role and individual site, program and staff responsibilities. Historically organizations within the firm have been functional in nature with individuals coming together in cross functional groups to support program 112

and specific initiatives, these groups typically disband and return to the home function once the specific task or activity is completed. Review of the literature showed that supply chain management was cross functional and permanent in nature. Although most of the literature used functional roles to define specific responsibilities, the literature recognized a compelling need for the supply chain to be governed and executed from a cross functional perspective. Review of the literature and research into other firms that have supply chain management organizations revealed that in most cases the organization was simply a logistics or operations function that had adopted the new title with an expanded role and no new relationship structure to achieve the expectations. The researcher observed several efforts and initiatives in the firm designed to promote and achieve a cross functional existence for the supply chain management organization. It was noted that this was a very laborious effort for the organization, which was essentially challenging the historical way of doing business within the firm. The supply chain management organization defined itself by roles and capabilities. The roles included functional responsibilities of; planning, sourcing, logistics, and product support, with the cross functional capabilities of finance, systems, analysis & integration, communications, human resources, training and legal. The researcher noted in observation that the cross functional roles and expectations of the organization were in place and those expectations were being successfully executed. Functional sacred cows and territorial disputes were reviewed and addressed by the organization as they surfaced.

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The most notable enablers of organizational roles and cross functional ability were cross functional data, measures and systems. Employee motives were equally strong recognizing increased personal value, more and diverse opportunities, and the ability to capitalize on a divers experience background.

Behavioral Engineering Cause & Effect Overlay Table 15. Case S06 BEM/C&E Cross Functional Leadership Team Enablers
Data - Cross functional - Comparative analysis - Triangulation - Actual Systems - Cross System - Common system Incentive - Site level representation - Define system needs - Inclusion in decision process - Cost impact consideration

Environmental

Knowledge - Knowledge base Behavioral

Capacity

Motive - Recognition - Development - Exposure - Networking

Table 16. Case S06 BEM/C&E Spares Checkbook Enablers

Data - Cross functional Environmental Systems - Cross System Incentive - Accurate billing and status - Balanced books - Reduced use of company funds

Behavioral

Knowledge - System expertise - Where/how to find data - Understand measurement

Capacity - Too much data for manual

Motive - Successful execution of contract and program - Only real financial Status available

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Table 17. Case S06BEM/C&E People Development Enablers

Data - Company university - Industry data - Company data - Societies - Universities Systems - Research - On-line training - Broad distribution - Compliance tracking - Track completions Incentive - Promotion - Job security - Visibility

Environmental

Table 18. Case S06 BEM/C&E Subject Matter Expert Development& Retention Enablers
Data - Literature - Training - Education - Certification Systems - Online availability of data Incentive - Exposure - Progression - Recognition

Environmental

Behavioral

Knowledge - SME - Training - Teaching

Capacity - Increased efficiency

Motive - Encourage development - Personal value - Increased opportunity

Behavioral

Knowledge - Specific experience - Years of experience - Specific exposure

Capacity - Enables cross site support

Motive - Competitive value - SME status - Organizational value - Personal value

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Table 19. Case S09 BEM/C&E Organizational Roles in Cross-functional Setting Enablers
Data - Cross functional measures Systems - Cross functional integration - Common system Incentive - Cohesive organization - Agility - Cost effective - Efficient

Environmental

Behavioral

Knowledge - Functional knowledge - Training - Experience

Capacity - Flexibility

Motive - Opportunities - Increased experience - Increased influence

Embedded Case S09 Results Embedded case unit S09 has an organizational structure which contains the elements typically associated with supply chain management noted in the literature, with the exception that supply chain management activity is recorded as being distinct and separate from these activities and capabilities. S09 contributed 7% of the subject matter expert participation, with 93% of the semi-structured interview questions being answered and 104% of those responses coded for analysis. Interviews Participant coded interview responses for Case S09 are reported below. Describe SCM in the Firm Participants from case S09 described supply chain management within the firm as being: [It is] the end to end process of organizations and personal that support the development, production, delivery development and perhaps repairs and return with transportation will and delivered to the customer. 116

Another stated: It is a start to finish process from engineering, through building the part to installation of that part on the aircraft. Then it involves managing the life cycle of that item. Other participants made very specific distinctions between pre-sale and post-sale of a product by describing production and product support activity as prior to and post form DD250 which documents the formal transfer of ownership from customer to the Government. This was noted as: There is a distinct difference between a supply chain activity pre DD250 and post DD250 [pre/post sale/transfer of a product] in the project support function. [It] is different from production which is concerned with delivering a product to a schedule and you are maintaining your supply chain to support a certain number of quantities then youre done once that system is delivered. [At which point] you go away. Production Support [on the other hand] is there for the life of the product. Another participant noted specific roles expected of product support or sustainment activity stating: For [the] supply chain sustainment [individual] that issues a job you have to develop a plan to have in place [for the] the supply base and repair capability to maintain the level of inventories [required] to support the flying schedule of the platform. Describe SCM in the industry Participants described supply chain management found in the industry as: Supply chain management is the end to end process of developing a part and delivering it to any customer including disposing of portions of it as the platform as it ages. Measure SCM Participants listed the measures they use or expect to use when measuring supply chain management: 117

1. On-time delivery 2. Quote cycle-time 3. Response cycle-time 4. Fill rate 5. Invoicing cycle-time Describe Bench Marking Participants in case S09 seemed very versed with benchmarking, providing numerous examples as descriptions. One participant noted that benchmarking was more than comparing like metrics. The participant stated: In theory you can go to other companies and benchmark, but that is a little bit difficult since other companies may not have the same issues or requirements to deal with. If you go out and say, benchmark Sams, Wal-Mart, IBM, or Microsoft, you may not be comparing similar activities. Another participant stated: In benchmarking you really have to be careful that you are analyzing apples to apples, or similar best practices within your specific supply chain. In other words we typically do aviation supply chain work; there are other supply chains out there that might have a great best practice that is not practical for us. Another participant described benchmarking internally as: Looking across the company and trying to identify best practices. You go and spend time including imbedded personnel, possibly two weeks at a time with the customer and other programs and collaborate alongside management comparing tools and accuracy of data. Understanding how you gather the data and then developing a clean forecasts and a plan to go forward with. Describe Best Practices in the Firm Best practices in the firm are described by participants as being functional in nature, while others described what best practice should be and what they should cover. When describing best practice current state within the firm, one participant stated: 118

So when you talk about supply chain, and I was talking about functional areas that make up the supply chain, there are best practices that might occur within any stove pipe [functional group or silo] of that supply chain. To my mind the real best practices and the real test is whether the practices allows the integration and flow of that stove pipe across the entire supply chain product Another participant described best practices as more of an integrated process rather than an executable step. The respondent stated: A best practice is a process that incorporates a logical and efficient flow of ability and information required to produce a product with the least amount of delays and cost. [You have to ask yourself] what is that I am delivering? Am I delivering a service and a capability or am I delivering a part? What are all the flows and all of the processes that are involved? Where are all the bottlenecks and items that slow me down and do not produce or help deliver the product? Identify Best Practices in the Firm When asked to describe best practices within the firm participants responded by identifying work that they were currently engaged with. Some expressed perceptions about specific contracts they were working on, and how they could improve those contracts. Others identified best practices by referencing certain measures that showed improved performance. In one response the participant noted how they would go about finding best practices to use. Respondents provided feedback based on current activity by stating: We jointly worked together to modify our contracts to make that contract the best in class contract for those systems supported by that contract. So [the contracts that we create] gradually evolve until we [believe] we have a best in class contract, which I would say is kind of a best practice. In some cases subject matter experts worked at the behest of customer representatives to develop best practices approaches. One example was: The defense logistics agency is doing this new depot level repairable acquisition process which is a new area of responsibility for them and they want us to participate and show how we can do this activity better. 119

Another example of best practices was: [We have] transitioned all material that was government furnished to contractor furnished. Specifically consumables and those types of parts required for maintenance that are considered rotatable-bin stock. [Screws, glues and goo in contrast to assemblies and fabricated parts] We had to go through years of data to identify what the actual items to be included, looking at maintenance data being performed on the aircraft today and a lot of data cleansing. From that we came up with a concept. This approach helped us keep the cost of the inventories carrying levels down. Allowing for acceptable levels to supplier management and allowed us to project man-power requirements across the programs reducing the lead time of parts. Participants indicated that within the firm there were avenues for finding and identifying best practices for consideration, stating: To find a best practice I would go into the firms web site identify the best practices that currently exist pull those down and try to use those. See if they can interface or be incorporated into my processes. Participants also noted that best practices should meet preexisting criteria, stating: There should be some standards for work processes and your practice should be in compliance with these if that company has put them out there. While others stated: You need to continually strive for more efficiencies, better support and better value. Additional comments were: Something that has standardized and is best for that company and the customer. While another participant noted that when they suggested a best practice, they had evidence of performance, stating: The information and data that we had proved that this was a best practice [and has been] validated by an outside organization that reviewed the information.

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Another participant noted: A best practice, actually, its a changing thing right. So a best practice identifies a process or a contract style, or a management technique that has been proven across industry to provide the best most predictive, cost effective support. Yet another indicated that cost considerations were main factors and results should be validated stating: I think you know you have a best practice whenever you have the price of your product or work in the item that you are delivering considered of value [to] two more customer[s]. And a schedule in which you are able to deliver [your product] and meet their needs. {It should be] acknowledged [as such] and you are tracking your cost to produce and tracking [your on-time] delivery to the customer. Measure Best Practices Participants provided the following list of best practice measures: 1. Measures of economic profit 2. Fill rate 3. Efficiency 4. Inventory turn 5. Company funds impact 6. Customer satisfaction 7. Percentage of sole source follow-on contracts 8. Timeliness 9. Quality 10. Compliance 11. Process improvement

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Organizational Strength Participant responses in providing examples of organizational strengths as opportunities for observation for case S09 included examples of communication best practices, as well as contract and forecasting best practices. Participants indicated that customer and stakeholder participation were recognized as critical to the success of the site stating: By capitalizing on our process and supply base optimization program we have created what we have been told is a best practice. We meet monthly with our customer and stakeholders and go through their concerns and issues and we develop a reaction plan for the following months meeting to respond to their issues. They [view] this [as] a critical success factor for the program. Process optimization activity and we are told it is a best practice. [We also do] lunch and learns with the customer and strengthened communication with the customers and production. Additional opportunities for observations included contract and support activity: We bring experience to the Contractor Logistics Support world. Specifically with information and strong service knowledge in contracts specific to logistics, our experienced and knowledge is our strength. Forecasting was also noted as a best practice opportunity: Forecasting projections and information sharing [create a] close relationship with the customer [and helps us] produces new products for them and provides a service for them which is what they what; not what we want to sell but what they are asking for. Forecasting is a key factor to our success. Observations Opportunities for observation in S09 identified by the participants include certain contract types, customer and stakeholder participation and forecasting.

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Contracts In analyzing participants responses to identify opportunities for observation the researcher noted that Contractor Logistics Support type contracts were noted by participants as potentially best practices. Contractor Logistic Support (CLS) contracts emphasize supplying support activity, including management of the prime contractors supply chain. CLS contracts are logistics support contracts which require that a contractor provide material, facilities and services in the areas of supply and distribution, maintenance, spares and repair activities, all at the depot level. Some contracts also include software support and integration as well as training solutions and support. In reviewing the literature associated with these types of contracts and observing subject matter expert explanation and execution of CLS contracts the researcher noted that a significant contributor to the success of these contracts was the data used to plan, propose and execute them. It was also noted that these types of contracts tended towards support types of efforts, or what participants described as post sale of product efforts. Profit maximization was maintained by accurately projecting product failure rates and planning either replacement or repair activity in the most efficient and cost effective manner. As stated the enablers for these types of contracts are the data that are used to plan or forecast requirements needed to maintain the specified performance levels. It was noted that there were several systems used in performance of these contracts, but the integrity of the data was paramount. Knowledge of where data can be located or mined

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and the ability to understand how the data should look and what levels of performance are actually achievable are necessary in establishing or negotiating the initial contracts. Customer and Stakeholder Participation Additional areas for observation case S09 were the area of customer and stakeholder participation. The most evident area of customer and stakeholder participation was in formalized team meetings. These took various forms. The researcher observed several customer and stakeholder communication session including several product teams which included all parties, Program Management Reviews, Quarterly Performance Reviews and Strategic Initiative Teams. In all cases these teams were formalized and had guiding charters, descriptions and boundaries. These teams included representatives from the customer and all functional roles involved in the project or product. Active participation was expected and encouraged. The most significant area of interest to the researcher was the groups constant maintenance of action items from all parties. In most cases there was a formal approach to documenting actions as they arose during the session, review of noted actions and consensus regarding ownership and responsibility of the assigned action at the end of each session. Action items were the first topic of discussion at each meeting and it was expected that actions due were completed, short explanation presented and the group moved forward with the balance of the session. The researcher noted that when actions were handled in this manner, there was an atmosphere of cooperation, trust, and progress. If actions were not treated as important, the atmosphere in the sessions was less cooperative and trust seemed non-existent.

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Another observed significant contributor to customer and stakeholder participation was frequent non formal communication with peers. When team members maintained contact with customers and stakeholders outside the formal process it was noted that relationships were more developed and for the few problems that arose, these were handled in a more cooperative manner. Analysis noted that each meeting had enablers from various behavioral and environmental categories, with the most significant and consistent being the enablers of incentive and motive. The incentives for customer and stake-holder participation included greater influence over decisions, fewer miscommunications and misunderstandings, increased visibility into trends and predictive indicators of impacts, and risk sharing. The category of motive for customer and stake-holder participation included buy-in, no surprises, greater consensus, and support for decision, increased acceptance of performance reporting and in some cases visibly improved performance scoring. Forecasting Several participants indicated that forecasting or modeling of demand was a best practice. Forecasting is the process of understanding customer usage in a manner that allows the firm to predict future customer demand. Forecasting is used to lower costs and improves supply chain responsiveness. Forecasting was described by the subject matter experts as the nexus of support type contracts and services. By reducing inventory and improving system responsiveness to the customer forecasting has significant impact on overall costs and competitive advantage.

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Crucial to forecasting are the conditions under which a contract or program is supporting and the integrity of the data put into the forecasting models. If data is not accurate, then there is a tendency to put buffers into each execution step. As these execution points react to demand and try to maintain their buffer or safety stock level a phenomenon known as the bullwhip effect occurs, essentially creating a reaction that compounds and exacerbates the safety stock levels at each execution point. After reviewing several forecasting models in the literature and observing several subject matter experts using forecasting models in the firm, it was noted that there are multiple forecasting models that are available to the firm and currently in use in the firm. The tool of use was less of a factor of success and effectiveness than the quality of the data used. Behavioral Engineering Cause & Effect Overlay Table 20. Case S09 BEM/C&E Contracts Enablers
Data - Availability - Accuracy Systems - Cross functional integration - Forecasting Incentive - Increased profit - Measure accuracy - Long term tie to customer - Cross platform support - Customer need - Funding Motive - Value - Exposure

Environmental

Behavioral

Knowledge - Training - Experience

Capacity

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Table 21. Case S09 BEM/C&E Customer and Stakeholder Participation Enablers
Data - Cross functional data - Predictive indicators Systems - Common system - Common access Incentive - Influence decisions - Views, issues, concerns addressed - Improved communication - Improved visibility - Increased risk sharing

Environmental

Knowledge Behavioral

Capacity

Motive - Buy-in - No surprises - Consensus - Improved performance rating. - Improved relationships - Less animosity

Table 22. Case S09 BEM/C&E Forecasting Enablers

Data - Clear data - Accuracy - Cross functional data - Integrity of data - Availability Systems - COTS - Statistical forecasting - Spares analysis - Tactical work load Incentive - Negotiate contract types - Project costs - Project staffing - Win contracts - Lower investment - Leverage buying Motive - SME certification

Environmental

Behavioral

Knowledge - SME - Previous military logistics experience - Knowledge of system

Capacity - Project capacity

Embedded Case S10 Results Embedded case unit S10 has an organizational structure that is product or program oriented in nature. S10 separates supply chain management into distinct groupings of production orientation and product support orientation, separating the chain by the product sale demarcation line. S10 also reports supplier management as separate from supply chain management. 127

Embedded case S10 contributed 7% of the overall subject matter expert participation. Subject matter experts in case S10 responded to 90% of the semistructured interview questions with 111% of the responses being coded for analysis. Interviews Participant coded interview responses for Case S01 are reported below. Describe SCM in the Firm Participants described supply chain management in the firm as including: The management of those tools and processes to make sure that all the requirements were met to deliver that product or service to our customer. Another participant stated: [A] supply chain puts into place the checks and balances to ensure things are what they should be. [It involves] getting the part to me that I need to get on the airplane. Yet another stated: The supply chain also includes our air logistic centers (customer), depots. Several participants noted that pre and post product sale as being separate and distinct stating: Coordinating and getting the people in the right job, reviewing skills, posting requisitions etc. It involves career development, review of processes to establish metrics across all sites. Supply chain management includes command media review and reductions to move to common processes across all sites. [As and example] product Support is a function under engineering which is responsible for all logistics, field services, tech publishing, product support, and integrated logistics. One responded specific to production or pre-product sale activity stating: Now if youre in operations [production] its getting all the materials required to manufacture or produce a product and to move or the logistics of a product.

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Another respondent noted: In the supply support organization supply chain covers anything with getting parts, moving the parts, information regarding parts and the acquisition of parts, not only parts but also other items such as support equipment and test equipment. Describe SCM in the industry Descriptions of supply chain management in the industry included describing supply chain management as: Groups of people, processes, tools, and information involved in actually the cradle to grave of a product or a service to our customer. Another stated that supply chain management is: The organization or the entity that would supply the parts that I need for the activity I am trying to execute in a timely fashion to meet my schedule, of the highest quality. The researcher noted that no reference to pre or post supply chain was stated for supply chain management in the industry. Identify SCM in the Firm Participants responses in identifying supply chain management in the firm were focused on specific activities. Several equated supply chain management with contract types, stating: We were a performance logistics type contract. Everyone else is mostly a transactional type of contract [delivery of product vs. a service], were beyond that. We are on contract to provide or model material requirements for the product based on the length of the contract and the use of the product. Using the number of flying hours, we model [material need] to determine what we are going to go buy. Another stated: Post DD250 and Pre DD250 [pos/pre sale/transfer of product] supply chains differ, on a PBL we do not use a DD250, we use DD1348, and we are paid on issue effectiveness metrics. We dont do a one for one accounting, we disclose in 129

our earned value management reporting what we are spending to the customer. We do not have a transactional type of environment. Measure SCM Measures of supply chain management were noted as: 1. Cost 2. Time 3. Customer satisfaction 4. Effectiveness 5. Fill rate 6. Effectiveness on reparable/recoverable items Describe Bench Marking Participants stated that benchmarking was done by: Looking at all the site metrics and see if there is consistency in a metric then I would do an evaluation at that site and look for replication opportunities for other sites. Another participant suggested that: You can benchmark other platforms and companies to try and figure out what everyone else is doing and steal shamelessly. Incorporate that into your own process for improvement. Take things from other processes and add them to your own to make your processes perform better or exceed the competitions performance. Another participant indicated that in the firm: We share information; other companies are benchmarking and continuing to improve. Identify Best Practice in the Firm Participants suggest several ways to identify practices as best. One participant noted: 130

A best practice is one that the customer has repeatedly stated or provided feedback stating that this [specific activity] has consistently meet their needs, or [has] exceeded their needs. Other ways of identifying best practices include: We had a consultant firm come in and review our policies and procedures and do a gap analysis to see if we were a best practice. Because we needed to find out if we were really as good as we thought we were. Another participant suggested: There is a process, procedure or method, that gets the best results, whether you are looking for efficiency, high quality, lowest cost, its the best in the industry. A best practice is what you desire to be for your organization, department or group. Measure Best Practice Ways to measure best practices included: 1. Comparative analysis 2. Measures of timeliness 3. Efficiency 4. Cycle-time Organizational Strength There were several organizational strengths noted by the participants. One suggestion was: The analysis of [tooling] use and the maintenance requirements [is an organizational strength]. We want to avoid creating tools specific for programs and are asking [those programs] to review what is available already and see if something that exists can be used or modified instead of creating something new that has to be tracked and maintained.

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Another participant stated: A core competency was performance forecasting. We are able to take the requirements and the length of the program and determine what the requirements will be for that duration. Then we are able to maximize the dollars by purchasing in advance what is needed and having it available for need. It is our model that allows us to do this. Observations Case S10 identified forecasting as a best practice. S10 uses an off the shelf forecasting tools which requires cost, requirements, cycle time and usage data. Case S10 also suggested tool tracking as a potential best practice. Forecasting and Modeling The forecasting and modeling tool observed was similar to the one used in a previous observation. As with the previous observation the data quality and quantity was a critical factor for success. Site S10 was in the process of creating a standardized approach for data cleansing. The subject matter expert spent some time explaining the measures typically used in forecasting. This health or accuracy measure was Mean Absolute Percentage Error (MAPE) which is a calculation of forecast demand and actual demand. The subject matter expert explained that a root cause analysis of the gap between these two figures tends to be the completeness of the data used to conduct the initial forecast. The process in work would address that gap and root cause. Tool Tracking During the observation the researcher was made aware by the subject matter expert that tooling was a significant cost factor for the firm and programs. Tooling in general consists of all hard and soft products that assist in the fabrication, repair, and 132

maintenance of a product. This would include hard fixtures, templates, forms, and in software programs. The firm estimates that a significant percentage of the tools which the firm fabricates internally, purchases or leases, or funds for a supplier to build are redundant and repetitive. Compounding this cost impact are tools which are in need of repair or not up to the current configuration requirements. Cost impacts to quality and scrap costs due to faulty tooling are unknown. The firm and specifically the subject matter expert were involved in identifying a single data base in which all tooling information would be compiled. This would enable an interested party to research across business units, programs and functions for existing tooling. Indicating when and how that tooling had been evaluated for conformance and where the tool was located and when the tool could be available. This would include tooling that was resident at suppliers and customers. The subject matter expert was also involved in creating a standard approach to managing this data base and the tooling it would control.

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Behavioral Engineering Cause & Effect Overlay Table 23. Case S10 BEM/C&E Forecasting Enablers
Data - Clear data - Accuracy - MTBF - Total flying hours - Cross functional data - Integrity of data - Availability - Drive ROQ Knowledge - SME - Previous military logistics experience - Knowledge of system Systems - COTS - Homegrown - Statistical forecasting - Spares analysis - Tactical work load Capacity - Project capacity Incentive - Negotiate contract types - Project costs - Project staffing - Win contracts - Lower investment - Leverage buying Motive - SME certification

Table 24. Case S10 BEM/C&E Tool Tracking Enablers

Data - Cross functional - Easily identifiable - Accurate - Availability - Maintained Systems - Common system - Common access Incentive - Reduce program cost - Improve program schedule - Ease of location and tracking

Environmental

Behavioral

Environmental

Behavioral

Knowledge - Use of system - Application of tool

Capacity - Too cumbersome to do manually - Too large a database

Motive - Makes the job easier

Embedded Case S12 Results Embedded case unit S12 has an organizational structure based solely on a product support representation of supply chain management. S12 contributed 4% of the subject

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matter expert responses with 70% of the semi-structured interview questions receiving responses. 70% of the participant responses were coded for analysis. Interviews Participant coded interview responses for Case S12 are reported below. Describe SCM in the industry Participants described supply chain management in the industry stating that it includes: Manufacturing the product and delivering the product to the customer. It starts with providing or procuring the materials necessary to produce a product delivering the product and then making the product available for use. Measure SCM Supply chain measures included: 1. On-time proposal delivery 2. On-time product delivery 3. Delinquency tracking One participant described the rating system for supply chain management measures as: Need to various metrics (based on business) that have specific goals, with (Minimum Allowable Level) MAL, (red) & Exceed Goal (blue). Describe Bench Marking Participants described benchmarking by stating: You study and replicate what the competition does, but at the same time I think that we do this in the company, and we do this across different functions and different businesses. There is a constant study or reevaluation of what you have to determine if they are best practices, while always trying to improve. It is a continuous cycle.

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Identify Best Practices in the Firm Participants described identification of best practices in the firm as a suit of tools, stating: Best practices are identified by reviewing opportunity, issues and risks. Describe Best Practices in the industry Participants described best practices in the industry by stating: In the simplest terms is a method, or a process that you can [use to] achieve repeatable results. It is a repeatable process that produces favorable results. Measure Best Practices Measures of best practices were noted as: 1. Cost reduction 2. Quality 3. Timeliness Organizational Strength Participants indicated that potential best practices were: We had our entire Supply Chain team as one group, (Spares gurus, SM&P coordinator, ME Planner, Finance, Hardware management, tooling expert) colocated and function as a team. By co-locating everyone, I was able to reduce proposal flow time from 45 - 50 day average to less than 20. Observations Cell Workgroup Concept The researcher observed a work group setting referred to as a cell, or cell working group. The cell working group concept was a product of a cross functional employee involvement team identifying opportunities for improvement within their extended group.

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This team noted that significant time was lost and miscommunication occurred between the functions involved with crating proposals for potential contracts specific to the site. The resulting process improvement suggestion was to co-locate the work group and set up workstations in a manner that followed the flow of activity. In this manner the work could literally be handed to the next functional representative in line. This cell activity included both the initial transactional and information activity followed by the physical activity. This enabled instant cross functional communication and representation of each group in decision making situations that they would not have been exposed to in other settings. As noted in the participants coded responses, co-location of the group significantly reduced proposal cycle-times. The research noted that the main area of reduction had to do with understanding information provided by functions. This data was discussed in an open environment which contributed to clearer understand of the data provided. When there were questions that arose, they were dealt with immediately by the person responsible. This eliminated the normal practice of meeting several times a week to review action items. Any actions that arose, were dealt with on the spot. The researcher also noted that by co-locating the group there was a common sense of urgency on proposals as well as a common sense of purpose and group cohesiveness that did not exist when the functions were separated.

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Behavioral Engineering Cause & Effect Overlay Table 25. Case S12 BEM/C&E Cell Concept Enablers
Data - Quick flow of data - immediate query for clarification Systems Incentive - Improved cycle time - Improved understanding - Improved quality - Improved cohesiveness

Environmental

Behavioral

Knowledge - Cross functional access - Reach back to adjacent functions

Capacity - Single focus - Less down time

Motive - Improved cross functional relationship - Smaller working group - Instant access to support

Embedded Case S13 Results Embedded case unit S13 has an organizational structure which reflects activities in supplier management with no other supply chain management activities referenced. S13 contributed 2% of the subject matter expert participation responses, with 60% of the semi-structured interview questions receiving responses. 50% of the participant responses were coded for analysis. Interviews Participant coded interview responses for Case S13 are reported below. Describe SCM in the Firm Participants at case S13 described supply chain management in the firm as consisting of the following activities: When customer requires a spare/repair part or retrofit part for a particular aircraft, requests a proposal, awaited/receiving a bid and then placing an order and awaited the parts arrival. 138

Describe SCM in the industry Participants describe supply chain management in the industry as: Having the right part in the right place at the right time Describe Best Practices in the Firm Participants stated that best practices in the firm include: Techniques/processes/methodologies that produce superior results, selected by a process, that can be scored or successfully demonstrated and can be adapted. Identify Best Practices in the Firm Participants perceptions of methods for identifying best practices included: [For identifying best practices] if you have continued process improvements, then chance's are that you could have a best practice.

Observations Site S13 expressed a desire not to participate in the observational portion of the study. Embedded Case S16 Results Embedded case unit S16 has an organizational structure which includes supplier management and a supply chain management group which includes; product support, forecasting, production control, and property management. Results for embedded case unit S16 showed that this unit contributed 7% of the subject matter expert responses answering 83% of the semi-structured interview questions and having 120% of those responses coded for analysis.

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Interviews Participant coded interview responses for Case S16 are reported below. Describe SCM in the Firm Participants described supply chain management within the firm in a manner consistent with what the researcher found in literature. Respondents stated: It is a wide definition that depends on what kind of product or service [it] is you are providing. Supply chain covers anything that deals with getting parts moving those parts distribution [and] acquisition. Not just parts but also support equipment we have a large supplier base will we consider part of our team. Another participant noted the extended nature of supply chain management stating: The supply chain also includes the customer depots. If youre in operations [production] then [the] supply chain gets you all the materials you need to manufacture a product and to move the product [including] the logistics of that. Other participants noted that supply chain management was more than just the physical functions and product, but extended to other areas by noting: Supply has to do all the budgeting, customer satisfaction, you know so there are a lot of different activities in supply chain other than just getting material. Another participant continued the theme stating: Supply chain management includes managing your cost accounts, and managing internal systems to do forecasting and all those types of tasks that we do in order to share the requirements with our suppliers so that they know what our future requirements are. It includes communication with engineering, drawing changes and revisions. All those things start out internally in the roots and then communicate up. Describe SCM in the industry On participant described supply chain management in the industry in the following manner: It is the cradle to grave acquisition of parts or the process. It is different organizations different functions different groups and how each of these 140

organizations connects with the other, whether it is procurement and transportation or procurement and the customer, or procurement and the suppliers, it is basically the whole chain. Measure SCM Participants indicated that supply chain management was measured by: 1. On-time delivery 2. Cycle-time 3. Inventory cost reductions 4. Procurement grief metrics 5. Diverse supplier rating 6. Affordability 7. Efficiency 8. Effectiveness Describe Bench Marking Participants described benchmarking in the following manner: I would start with the employee involvement team and run it against my peers; you look at cost savings, [and] look at what the previous practice was. [Look at] what the proposed is and any cost savings that might be a realized. Another participant stated: Companies are continuing to benchmark. Trying to catch up with each other and pushing the envelope. They do outside analysis, by doing a gap analysis to determine if we are best in class. Describe Best Practices in the Firm Participants provided the following descriptions of best practices in the firm. One participant stated:

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It is a practice that gives the program a competitive advantage over the competition, regardless of the program or function. It doesnt have to be a best practice across the entire organization; it just needs to be common across the specific phase or life cycle in which it occurs. Another participant stated: It is part of the review process when you are doing a review and you see a trend. Its something that we need to look at to achieve better results. By looking at metrics were able to gather that information. Describe Best Practices in the industry Descriptions of industry best practices were provided by subject matter experts who stated that an industry best practice is a: [A] process or a procedure or a technique that gets the best results whether youre looking for quality, lowest cost [or] best schedule performance. BP Suggestion Case S16 participants provide numerous suggestions of best practices. Participants stated: Modeling projected needs based on customer input and product performance [is a best practice]. We analyze our models each year and determine what were going to go buy in each year. We generate our own requirement to meet aircraft availability [needs]. Another participant elaborated further stating: A best practice is something like being able to screen demand in order to gain competitive advantage over another companies proposal. Being able to do what your competition can not do is a best practice. One participant noted a specific best practice activity: We have employee involvement and we look at different practices that we have and the ways in which we can better those practices while still meeting our objectives. Whether [the activity is] getting parts in a timely manner or finding a smoother way of processing our purchase orders or finding the best way to support systems integrity. 142

Several participants noted that some activities labeled as best practices might not be best stating: The programs that we own are all in different phases but we continue to try to make them all common. Sustainment data system folks try to develop a line of balance program or a logical bill of material theory. We dont need to make things conform that dont really work that way. Another stated: Our current best practices are logical best practices but I feel [that] if youre not doing these [labeled best practices as routine business] then you cant execute on a program. These are routine practices that you need to be doing anyway. They are not [what I would call] best practices. Measure Best Practices Participants listed the following measures of best practices: 1. Competitive advantage 2. Efficiency 3. Effectiveness Organizational Strength The following are the organizations strengths suggested by the subject matter experts as opportunities for observation and potential best practices. Participants stated: By allowing us to control our own destiny, by using our own forecasting tools, our own methodology to determine what materials we will need in the future and when we need it is a best practice in support of the program. Another stated: Our formalized employee involvement is definitely one of those strong points. Looking at daily activities gives them, [the employee] a venue to view tasks they do on a day to day basis.

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Yet another noted: [Our] core competency [is] performance spares requirements forecasting. Forecasting the requirement accurately so that we can make purchases and repairs and timely manner with minimal cost is a best practice. It allows us to maximize the benefit of dollars allocated for an effort. Observations Opportunities for observation in case S16 included forecasting and employee involvement activities. These were reported by the participants interviewed as potential best practices. Forecasting Case S16 uses similar forecasting tools as previously reviewed sites and provides forecasting as an example of one of their best practices. The forecasting tool is an off the shelf product which requires product usage, product availability, part lead-time, and repair and purchase activity cycle-times. Forecasting techniques and approaches to data cleansing and quality was developed in the cross functional leadership team. Employee Involvement The concept of Employee Involvement (EI) is not unique to the firm. Employee involvement is a management practice which uses empowerment and trust to increase employee commitment and acceptance to objectives within the firm and consensus and participation for performance improvement activities. Employee involvement is simply a structured group of employees, a natural work group or cross functional team that has been empowered and provided the tools necessary to analyze current activity identify opportunities for improvement and authorized to initiate the necessary steps to effect change. 144

The team the researcher observed was a natural work group that had created a team charter, established roles within the team and established boundaries within which the team would operate. The firm provided the necessary training and tools to support the team along with an independent facilitator to help the team remain focused on the chosen task. At the time of observation the team was in the process of identifying areas of opportunity. This consisted of reviewing a previously created departmental value stream map, and noting areas of potential bottlenecks, or process breakdowns known as star bursts. Once a starburst was selected the team would analyze the starburst and design a process improvement. These process improvements were reviewed by the team sponsor and if sufficient return on investment, or cost avoidance data was provided and validated the improvement was authorized and the team would then set about implementing the improvement. Review of the literature within the firm noted that significant process improvements and cost saving had been realized through the use of EI teams within the firm.

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Behavioral Engineering Cause & Effect Overlay Table 26. Case S16 BEM/C&E Employee Involvement Enablers
Data - Value stream mapping - Gap analysis Systems Incentive - Improved performance - Reduced costs - Improved trust - Increased commitment - Objectives obtained - Consensus - Acceptance of objectives Motive - Improves work flow - Smarter not harder - Improved value

Environmental

Table 27. Case S16 BEM/C&E Forecasting Enablers

Data - Clear data - Accuracy - Cross functional data - Integrity of data - Availability Systems - COTS - Statistical forecasting - Spares analysis - Tactical work load Incentive - Negotiate contract types - Project costs - Project staffing - Win contracts - Lower investment - Leverage buying Motive - SME certification - Increased organizational value - Increased mobility

Environmental

Behavioral

Knowledge - Current process - Process improvement techniques - Problem analysis techniques

Capacity - Quicker flow improves capacity

Behavioral

Knowledge - SME - Knowledge of data - Knowledge of system

Capacity - Project capacity

Embedded Case S20 Results Embedded case S20 has an organizational structure that includes the functional roles of supplier management and warehousing. Product support activities are referenced

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as a separate organizational function, independent of the supply chain management organization. S20 contributed 7% of the subject matter participation. Subject matter experts responded to 70% of the semi-structured interview questions with 110% of those responses being coded for analysis. Interviews A summary of subject matter expert coded interview responses are recorded below. Describe SCM in the Firm The following is a compilation of participant responses describing supply chain management within the firm. Participants stated: Its more of a focus on flows, you have three basic flows; material, information, and financial data. Another participant stated: Supply chain management manages the flow of product, the information and the financials. Supply chain management coordinates the flow of all the processes from raw material inventoried, control and delivery. Yet another noted specific functions in the supply chain stating: Engineering might not normally be thought of as part of the supply chain but it really is. Theyre the ones that designed the parts. Then you have the requirements people that dropped the requirements they are part of the supply chain management portion as well. Tracking the cost of the product managing the cost of manufacturing and delivery would be the finance people. Describe SCM in the industry One participant described supply chain management in the industry as: Supply chain is all the things that happen in the life of a product or service, from supplier to distribution to warehousing to retailing. Everything that happens for 147

the requirements from the supplier all the way through the time that it is installed. Describe Bench Marking Benchmarking was described by participants as: Take the environment that you are working in and define your process; find an equivalent process that has better results. Check in libraries or word of mouth, by querying subject matter experts that you have networked with. Another participant stated: See how your process compares against other processes that will perform a similar task. Does the process allow you to do the same task in a more efficient way then you have benchmarked a best practice. Identify Best Practice in the industry When asked how they identify best practices in the industry participants responded: We find this out through constant scanning and interaction with other groups we meet in seminars etc. Another described a best practice as: A process a technique that has been proven to have added value to the product Yet another noted that there is an inherent criterion that best practices have to meet, stating: Its proven to do those things on one product but has applications to other products. Identify Best Practices in the Firm Participants identified specific practices within the firm which they felt were best in class, or best practices. Participants stated: The group that we have now excels in communication and cooperation and this is partially due to our tools. We use the [personal and group dynamics] tool and what this tool does, is provide a check list of what types of reactions, strengths 148

and weaknesses each individual has and provides a guideline, communication mentor, that describes how to communication and work with the specific personality that you are working with. Another participant stated: Cross Functional Leadership Teams are a way to ensure that we are communicating best practices across sites and functions. Yet another stated: Having engineering integrated with the repairs support and logistics effort is a best practice. Measure Best Practices One participant summed up best practices measures stating: Its repeatable and it shows superior results and other people tend to seek it out because of the results that it produces. Organizational Strength Several subject matter experts pointed out areas of organizational strength which they felt were candidates for observation as potential best practices. Participants stated: Our performance measures are a best practice. We have the ability to use our normal performance measures in a predictive fashion. Another participant stated: Our approach to communication and cooperation are a best practice. Not all organizations have our level of interaction. This is not measured. It simply results in fewer roadblocks Another subject matter expert noted: Weve developed a new tool that allows our customer to project cost savings by addressing certain support, or procurement requirements. This tool notes the current costs of an item or activity and projects savings.

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Observations The following observations were made by the researcher. The potential best practices observed were performance measures, personal and group dynamics, cell concept working groups and a return on investment forecasting tool. Performance Measures When discussing performance measures the majority of respondents stated that predictive indicators should be considered as an observational opportunity. The researcher analyzed the literature with regard to measures that were used not only to measure current performance but were also used as predictors of future performance. The researcher was able to observe several of these predictive measures in use by subject matter experts. It was noted during observations that no single measure was used in this role. In all cases there were several indicators, or what the subject matter experts referred to as suite of indicators which when used together had greater accuracy in predicting future performance. In each of the observations the researcher noted that the more measures that subject matter experts included in their suite the more reliable the predictive indicators became. In reviewing supplier managements suite of predictive measures, this consisted of actual performance that was measured with in both quantitative and qualitative measures, in multiple performance areas. These measures were then compiled together to create an aggregate performance measure that was a key factor in selecting sources for future contract awards. The more data that was available the clearer performance trends became and a clearer picture into possible future performance. 150

Enablers for predictive measures include data, systems, knowledge and motive. All measures rely on certain data input. For predictive indicators the integrated systems allowed for more data to be recorded and collected which also led to increased capacity for the user. Knowledge of how the systems worked and how the predictive indicators were used increased employee use and participation both an incentive, ease of use, and a motivator, higher probability of success. Personal and Group Dynamics Personal and group dynamics was a subject that appeared in various forms during the analysis of the coded responses. At various levels participants indicated that the dynamics within a group had some affect over the success of the groups purpose. During one observation the researcher was able to observe group communication in a conscious and intentional manner with regard to awareness of personal interaction preferences. At certain levels within the company training and assessments are conducted into the individuals personality structure and preference. These personality assessments are strictly individual, guiding the participant assessed in the forms of communication and interaction that they are most comfortable with, and giving guidance on how to deal with personality traits that they may be uncomfortable with. In this observation the researcher witnessed a group that not only had individual personality assessment awareness, but had visibility into the other participants personal assessment as well. This created a communication environment where participants consciously communicated in the manner that best fit the audience or person in question. The result was powerful, a team in which the communication was quick and efficient with minimal personality disruptions and in which consensus seemed to be reached 151

quickly and effectively. The researcher noted that this team was populated by subject matter experts and had been in a team unit for more than 12 months. The cause and effect analysis shows that the majority of the enablers fell within environmental data and incentives and behavioral knowledge and motives. The group had the data available concerning each participant and the knowledge of how to use the data provided. Incentives included group participation and management concurrence. Motive factors were quick and concise communication and being addressed in the manner in which the participant most preferred. ROI Forecast In conjunction with forecasting models the researcher observed a tool developed on a local level, the [Return on Investment Forecast (ROIF) model] which includes a Return on Investment (ROI) calculation. ROIF used 10 years worth of historical governmental source data from financial, logistics, inventory, operating, and systems data bases to project sustainment costs from a platform level down to an individual part level. By targeting specific improvements total sustainment cost reductions were calculated. This tool was designed to take current usage, failure rate and cost data to project predicted costs over a period of time. Using current pricing data based on a leveraged buy, or a reduced cost for quantity. The subject matter expert could forecast replacing and part/service availability showing a significant cost savings if potential future failures were addressed at the present time. As with forecasting models and tools it is the integrity and thoroughness of the data mining effort that enables ROI forecast accuracy. The cause and effect analysis results were heavily environmental in nature. Data and systems were key causes for 152

success or failure of this activity, with subject matter expert knowledge also noted as critical to the success of the original data mining effort. It was this behavioral knowledge that led to the correct data bases.

Behavioral Engineering Cause & Effect Overlay Table 28. Case S20 BEM/C&E Performance Measures Enablers
Data - SME evaluation - Cross functional evaluation - Cross program evaluation - Cross company evaluation - Actual performance Systems - Supplier access - Common system - Common access - Cross platform Incentive - Improved performance - Improved relationship

Environmental

Knowledge - Training on use and expectations Behavioral

Capacity - Too much to do manually - Too difficult to coordinate manually

Motive - Success in position

Table 29. Case S20 BEM/C&E Personal/Group Dynamic Enablers

Data - Personal profile - Group profile - Teammate profiles Systems Incentive - Improved communication - Improved team performance - Short effective team meetings - Group participation - Consensus decisions

Environmental

Behavioral

Knowledge - How to use and interpret the tools - What communication techniques are applicable

Capacity - Improved capacity due to addressing miscommunication

Motive - Personal understanding - Everyone get along - No dominants - Value to team

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Table 30. Case S20 BEM/C&E ROIF Enablers

Data - Accuracy - Availability Systems - Access Incentive - Contract potential - Cost savings - Cost avoidance - Capacity planning - Investment planning

Environmental

Behavioral

Knowledge - Develop system - Data mining points - Intuitive accuracy - Experience

Capacity

Motive - Value - SME Status - Single point failure

Embedded Case S30 Results Embedded case unit S30 has an organizational structure which includes the functional roles of forecasting, product support, supply support, and warehousing. S30 contributed 9% of the subject matter expert participation who responded to 90% of the semi-structured interview questions with 111% of those responses being coded for analysis. Subject matter expert responses are recorded below. Describe SCM in the Firm Participants described supply chain management within the firm stating: Supply chain management is managing all of the different areas, the processes, people and tools required to do the definition, build, delivery, and execution and disposal. Its also working across multiple disciplines, such as engineering, finance, operations, quality, providing an integrated solution for all the other functional elements. Another participant stated: Strategically supply chain management is looking to the future to determine where we will be in 5 or 10 years. Where will the supply chain business be in that time. Tactically are we executing the existing programs, providing leadership? Supply chain management is a matrix organization. 154

Another participant noted: Supply chain management would be the oversight of the entire process by local management and their activity in continually trying to promote a leaner process and a more accurate fill of product information to the user and customer. Yet another participant stated: There is a crossover between a supplier management and product support in supply chain management. So what we do is the analysis activity for [the] supply chain identifying the requirements. We identify the part in the actual repair part problem part line. And then we hand it to supply chain management which is a part of supplier management function. [Test units for failures and advise supplier management of the required replacement parts]. Describe SCM in the industry When describing supply chain management in the industry participants stated: Supply chain management is made up of two things, materials management and supplier management, with reach back into the corporation. Supply chain management is not bound by sites or organizations. [It is] focused on integrated organizational initiatives and capitalizing on the synergies of all groups and functions. A truly virtual organization. Another participant stated: Its the cradle to grave for the material activities [and] for the procurement process. So that would be the proposal to receiving of the product. Others noted: Supply chain is the entire network and flow of a product or service, from suppliers supplier to the users user. Or the customers customer. Measure SCM Measures of supply chain were noted as: You have to reduce you cost to be competitive, not increase your sales volume. SCM Suggestion When suggesting supply chain management solutions participants stated: 155

It would help if we had a business model for supply chain, modular and scalable so that the customer could buy just what they needed and what they wanted. Another stated: There is a crossover between product support and supplier management [in] terms of activity. Its not black and white in most cases its hard to know who does the supplier management [activity] or supply chain management activity for majority [of the programs] and its very confusing. Describe Bench Marking Participants described benchmarking in the following manner: [to benchmark you] find out who else is doing [something similar to what you are doing] and check with function[al] leads to find out if there are not already best practices that are applicable. I also look to see if this is a competency that the firm wants to develop or that my program wants to develop or that my supply chain organization needs to develop, or is it something that I can buy. Another participant noted: I would look for subject matter experts in particular areas in which we were looking for best practices. I would look in databases and talk to people that I have come in contact over the years and perhaps that is how I would identify them. Maybe I would do a fact finding journey/mission and talk to process owners and site leads. I would look through every known database that we have. Still another noted several societies that might be beneficial stating: The American Production and Inventory Control Society (APICS) and Supply Chain Council can help you do benchmarking against companies that do similar things that you do. Identify Best Practices in the Firm Examples of how best practices are identified in the firm were: Best practices would be identified by another team, independent assessment or review by subject matter experts.

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Another stated: Its hard to define because you could say it is because things are working well, as things are going the way they should, but that could happen for something thats not really a best practice too. Its hard to qualify. One participant stated: We dont have a lot of best practice in place; we have a lot of good practices and knowledgeable people. The asset managers have some good tools, but it is mostly the subject matter experts that accomplish things. Describe Best Practice in the Industry Descriptions of best practices in the industry were: Something for your business model that yields the results that you want and does it in the most cost efficient way. In other words it gives you the most for the least amount of dollars. An additional comment was: Something that is truly a process that can be used by several sites for a particular activity in trying to create a leaner and smarter way of doing business. Identify Best Practice in the Industry When identifying best practices in the industry participants indicated there was a criterion which had to be met stating: It is a proven process or tool or method that has been proven out, and that is the key, it has been proven out in several different environments but produces a result that is acceptable and desired by our customer. Another stated: Proven, it has to be proven. I would have to have a test environment. We need to be able to prove out a suspected best practice in an environment that does not impact current work or programs. Or jeopardize future programs. There needs to be a test environment. It cant work on only one program. It has to work across programs.

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Best Practice Suggestion Participants continued to differentiate between classifications of practices stating: What differentiates between good and best practices? The reason I say good as opposed to best is because we know we are not operating in the most efficient manner. We have good tools, some do not talk to the others so there is a lot of manual effort involved, and we have to do a lot of data cleansing and scrubbing. We keep saying well get there, but the people that would be best at improving the process are too busy doing the work, and dont have the time to improve the process. Measure Best Practice Participants provided the following list of measures of best practices: 1. Financial performance 2. Delivery 3. Cost reductions 4. Cycle-time 5. Process time 6. Efficiency 7. Shortage impact 8. Customer satisfaction 9. Supplier satisfaction Organizational Strength Participants provided the following responses as observational opportunities for potential best practices: We are modular and scalable which allow us to be flexible in our support of programs and services.

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Concerning contract types one participant stated: This is a Performance Based Logistics (PBL) contract that Im working on. I believe the company is leading the way in PBL. Since a PBL is a service based model, how many spares I sell the customer is not a consideration. I am selling a level of availability. The best practice is a business model or a set of practices that meet the type of business you are performing. The customer only wants to use the aircraft. An additional opportunity was noted as: Were trying to push all of our operators to understand process tasks, so we have gone as far as documenting all of our processes and putting them on a web site and we have supply chain management activity listed and documented so people can actually see what activities they have to do and who they have to go to an order to get something done. Observations The researcher made the following observations as suggested by participants of the activities involving, modular & scalable, contracts, and management by process. Modular and Scalable Some respondents stated that organizations that were modular and scalable with the ability to expand and contract based on customer or contract need were indicators of organizational strengths. It was noted by the researcher in observations of various organizations that the firms supply chain management organization had a broader capability offering which was more agile and responsive than other organizations, aided by the organizations ability to tap into its functional diversity. Review of literature with respect to the organizations support of various contracts and programs indicated that the organization was able to support at the required level while maintaining the ability to bring more service and support to bear when the need arose.

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Enablers of a modular and scalable organization were almost entirely environmental, with data and systems enablers similar to those noted in organizational and cross functional roles. Contracts Performance Based Logistics (PBL) contracts differ from the typical contract by having payment tied to the maintenance of a certain level of availability, or performance instead of a contract tied to transactional delivery. In these cases a customer will provide a predetermined level of availability and the contractor must anticipate or forecast service and parts replacement requirements to meet the unit availability level. The functional description for this observation was represented by the functions of contracts, product support, supplier management, engineering, procurement financial support, suppliers, and internal repair facilities. In reviewing the literature associated with these types of contracts and observing subject matter expert explanation and execution of PBL the researcher noted that these contracts were dependant upon data. Forecasting was the key, and critical to forecasting is data integrity and availability. As noted with other contract types profit was maximized by accurately projecting product failure rates and planning either replacement or repair activity in the most efficient and cost effective manner. Enablers for these types of contracts are the data that is used to plan or forecast requirements needed to maintain the specified performance levels. It was noted that there were several systems used in performance of these contracts, but the integrity of the data was paramount. Knowledge of where data can be located or mined and the ability to

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understand how the data should look and what levels of performance are actually achievable are necessary in establishing or negotiating the initial contracts. Management by Process Management by process is based in part on the International Organizations for Standardization (ISO) requirement which states that compliant corporations will have a process control system. Management by process is simply managing activity based on a process. This ensures that the process control system is valid and applicable. In Case S30 management by process was the sites approach to document all effort used to execute any activity. Management by process was noted as a standard for all other embedded case units with the exception of S30 which was developing the documentation and developing training to ensure that all employees were able to access, understands and execute process as designed. The researcher used management by process or process based management in the literature review to help define how best practices would be identified. Statements by the subject matter experts and observations of a site not managed by process helped the researcher understand that this approach was not simply a business tactic, but a potential best practice as well. Thorough documentation of process steps and uniform execution of those steps ensures quality, efficiency and repeatability.

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Behavioral Engineering Cause & Effect Overlay Table 31. Case S30 BEM/C&E Modular and Scalable Enablers
Data - Cross functional measures - Cross functional data Systems - Common system - Cross functional access - Automated measures - Automated transactions Incentive - Agility - Flexibility - Tailored to need- Competitive advantage

Environmental

Table 32. Case S30 BEM/C&E Contracts Enablers

Data - Availability - Accuracy Systems - Cross functional integration - Forecasting Incentive - Increased profit - Measure accuracy - Long term tie to customer - Cross platform support - Customer need - Funding Motive - Value - Exposure

Environmental

Behavioral

Knowledge - Cross functional knowledge

Capacity

Motive

Behavioral

Knowledge - Training - Experience

Capacity

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Table 33. Case S30 BEM/C&E Management by Process Enablers

Data - Detailed input - Detailed internal steps - Detailed output - Detailed systems needs - Detailed deliverables - Cross functional Knowledge - Training in use Behavioral Systems Incentive - Compliance - Uniformity - Isolation of failure points - Identifiable measure points

Environmental

Capacity

Motive - Understand expectations - Acceptable performance - Job retention - Understanding of other processes

Results of the Study The fractured nature of the supply chain management organization as documented through organizational descriptions and participants perceptions was contributed to by functional silos and the segregated nature of programs and sites. Although on an individual level this seemed to provide significant opportunities for the organization, analysis of the individual sites did not yield a big picture of the supply chain management organization and could not, by themselves answer the research questions; How can best practices in supply chain management be systematically identified and validated? And to what extent are practices used by the firm in the Supply Chain Management Organization best practices? Cross Case Analysis: The Big Picture Speaking with the subject matter experts about the data and reviewing the data strictly by embedded case unit indicated that individual analysis would not be sufficient to address the research questions. When subsystems of a case or multiple case sites are 163

key to the study, the researcher must find ways to analyze findings and themes across cases, (Ellinger, Watkins, & Marsick, 2005, p 343). In order to answer the research questions the researcher analyzed all data gathered from the embedded case studies in a cross case analysis. The researcher reviewed codes, themes, categories and data in a cross case analysis to generate meaning and to understand the big picture. From the individual embedded case units the researcher compiled all the codes and themes that were identified as a result of the interviews, observations and discussions with subject matter experts during and after the observations. The analysis process included: 1. Cross case analysis of codes and themes from interviews. 2. Cross case analysis of best practices identified by subject matter experts. 3. Cross case analysis of Behavioral Engineering Model Cause & Effect enablers and data. 4. Cross case analysis of notes and discussions with subject matter experts. 5. Review of literature pertinent to the data collected. The themes and data reviewed in cross case analysis yielded an integrated view which provided a big picture of the supply chain management organization and answered the research questions. Cross case analysis and synthesis results were: 1. Supply Chain Management (a) What the Supply Chain Management Organization IS 2. Best Practices (a) How Best Practices were Identified (b) How Best Practices were Validated (c) Supply Chain Management Best Practices 164

3. Behavioral Engineering Model Cause & Effect Results What the Supply Chain Management Organization IS The researcher reviewed participants perceptions and observed activities in light of the literature on supply chain management noting several findings; participants, with few exceptions, generally view the supply chain in terms of their immediate surroundings and those groups or processes that they interface with. Participants described the supply chain and supply chain management in terms of the tools and functions that they may use to execute daily tasks. While participants recognize that supply chain management is more than their immediate surroundings, with few exceptions participants did not articulate what it is in total. These analyses lead the researcher to the conclusion that participants have limited exposure to the commonly accepted roles and responsibilities of supply chain management which exists in the industry. And as a whole have limited exposure to the companys expectation of the organization in general. Tactical execution supersedes strategic existence. Further cross case analysis of the interview and observational themes of supply chain management showed evidence that supply chain management within the firm manifest in the tangible or physical supply chain and the intangible supply chain. It was also noted that participants perceived supply chain management as being defined by the activity pre and post sale of a product, i.e. a pre or production supply chain and a post or product support supply chain. Physical Supply Chain Management Taken in total, perceptions of the physical supply chain included the capabilities of; develop, plan, make, source, store, deliver, return, and support. Within each of these 165

capabilities there were a number of groups, activities or specific roles that participants associated with each of the overarching capability. Table 35 shows the cross case synthesis of the research findings. Each activity/group/role is recorded under the capability in which that activity was most frequently reported. The table also shows what activities were reported as pre/post transfer/sale of the product to the customer. Activities that were reported in a specific capability in both pre/post transfer/sale of the product are noted in italics.

Table 34. Participants description of the Physical Supply Chain

Develop - Market - Sales - R&D - Contracts - Design Engineering Producability Plan Requirements - Cost Accounting - Make/Buy - Program Management - Demand Planning - Demand Planning - Forecasting - Cost Accounting - Make/Buy - Asset Management Make - Operations Manufacturing - Prod. Control Source - Procurement - SubContract MGMT - Supplier Management Store/Deliver/Return - Warehousing - Inventory Control - Production Control - Logistics - Shipping - Receiving - Returns Management - Warrantee work - Warehousing - Inventory Control - Logistics - Shipping - Receiving - Inductions for repair Support

Pre- (Sales/transfer)

Post(Sales/transfer)

- Contracts - Design Supportability Engineering Producability

- Service Repair

- Procurement - SubContract MGMT - Supplier Management

- Installation Maintenance - Technical Publications - Field Service

The roles of program management and asset management, warrantee work and induction for repair are italicized and underlined. The researcher classified these as very similar activities, thus the italics, but wanted to distinguish that there are significant differences in responsibilities based on the pre and post DD250 activities.

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After an analysis of the participant responses of pre/post DD250 activities there was a noted overlap of the activities within each supply chain capability. Accepting the potential variability in executing a given activity, there is considerable similarity between what the participants articulated as separate supply chains, pre and post DD250. This lead the researcher to conclude that the physical supply chain that exists within the firm can be viewed as a single chain with some varying and overlapping activity specific to end product use and not two separate supply chains. Intangible Supply Chain Management A key finding in the study that was revealed in the coding of the interview transcripts and confirmed in observations and cross case analysis was participants perception that an integral part of supply chain management was an intangible or nonphysical element that tied the elements together and gave boundaries to the physical supply chain. In most of the responses there was some statement or indication that people, processes and tools were an essential, if generic part of supply chain management, but more importantly participants indicated that information, financial data, systems, analysis and integration, training, communication and relationships were essential to supply chain management and important to the successful execution of supply chain management as a whole. The researcher was not surprised by the inclusion of status type information and financial data in the responses since the literature specific to the firm indicates an aggressive approach to training and education in these areas with communication as a new thrust for the firm, which has been vigorously pursued. Relationships management however is recorded in the industry literature, and was in a few responses noted as being a factor to execution as well as success. 167

Measures of supply chain management In general participants could clearly articulate the measurement categories found within the literature and firm itself. Measures of efficiency, effectiveness, timeliness and quality were a recurring theme. Additionally participants were able to articulate specific measures of their group/organization and in some cases personal performance or specific contract performance. Cross case analysis revealed a significant gap in participant responses about measures of supply chain management as a whole. Isolated responses indicated measures of transactional and performance measures in relation to measures of contract performance. Only a few participants stated any measures in regard to overall supply chain health or performance and those responses were specific to transactional measures or measures of forecasting accuracy only.

Best Practices In analyzing the participant responses and reviewing the observational data the researcher was not able to identify a recurring tool, practice or approach used by the various subject matter experts to identify best practices. It was noted by several participants that the company identifies best practices for use and execution and these are usually flowed down the organizational chain for implementation and execution. Numerous examples of existing company recognized best practices for functional roles were provided by the participants. Participants noted several database applications, information repositories, and suggested contact with subject matter experts as potential avenues for finding or identifying best practices. The actual approach used by participants was typically based on personal preference. 168

When exploring the Firms knowledge warehouse database and information repository with several subject matter experts, the response was that the activity in the database noted as a best practice may work well for the group that is currently using it, but based on the descriptive information available the best practice activity logged in the database it did not appear that this instance was applicable for use by the participant in their current situation. Also noted by the researcher during analysis and identification were the lack or limited nature of any common process or measures that would have made identification quick and simple. Although common functional metrics existed within the literature reviewed, the researcher noted during observation that a subject matter expert when comparing on-time delivery metrics across various sites had not considering several sites scores as potential areas of best practices. The researcher questioned the subject matter expert who explained that on-time delivery means different things to different sites. Some sites use a calculation based on parts meeting a purchase contract due date, while others calculated base on the date when the part was needed, still other sites use this metric to describe delivery of completed product to the customer. Validation of Best Practices Participant perceptions and results from observations and review of the literature indicated that best practices are validated through measures and classification. Cross case analysis indicated that the diverse background of each site and the varying programs and projects specific to each site contributed to a mixture of approaches and expectations for validating best practices. Although no specific approach was identified as universal, participants had very clear expectations that validation of best practices 169

should include specific types of measures and a distinct classification of identified best practices. Further cross case analysis of data indicate that the majority of the participants felt that best practices should be validated or classified in some manner. Common across the cases was an expectation that this verification classification should in some way indicate whether a practice was proven or not. The best practice literature reviewed found only one article that made reference to a benchmarking activity in which the researchers classified various levels of best practices (Jarrar & Zairi, 2000). Several participants indicated that organizations frequently refer to a practice in use as best while knowing that improvements or better approaches exist, but may not be deemed necessary to pursue by the organizations that are currently using the best practice in question. Responses indicate that a best practice classification approach could recognize that some practices may be intuitive for the current organization without any past experience of proven history. Another classification could recognize practices as good for a specific organization or function, with performance data available to support the approach as successful while limited to certain parameters. The classification of proven could be used for those practices that had the historical data and performance measures to show positive performance impact over an extended period of time. The final suggested classification was company or organizational approved and recognized best practices. These would be practices which had gone through a rigorous validation process and had historical performance data showing positive contribution to the organization and company. Validation and Classification categories developed by the researcher in response to the subject matter expert suggestions are listed below: 170

1. Intuitive Identified best practices with no historical performance data. 2. Good Identified best practices with limited historical performance data, such as performance data for only one application, department or organization. 3. Proven best practices meeting the Good classification with historical performance data that cover multiple applications, multiple departments, and multiple organizations, this may including performance data external to the firm. 4. Organizationally Approved Proven best practices that are identified by the organization as adding to the competitive advantage of the organization and the firm. May be benchmarked externally. Best Practice Identified Although the majority of participant perceptions of the supply chain management organization were limited to the participants immediate surroundings there were few best practices identified that that did not have the potential to span and encompass the entire supply chain. In most cases the potential best practices identified were concepts or approaches derived from existing functional or site activity that could be developed and expanded to apply to the entire supply chain. It was also noted that the best practices identified could be grouped into similar categories of; organizationally related best practices, communication related best practices, people related best practices and those that were tool related Distinctions were made between those practices that had the ability to span or apply to the entire supply chain promoting overall supply chain management success and those that were more localized. The researcher identified global or best practices that had several applications as strategic best practices. Tactical best practices were those that

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were specific to project or program activity using some of the supply chain management elements but not applicable to all. Appendix F: Potential Best Practices Identified and Classified in Supply Chain Management, represents the potential best practices in the categories of, communication, organization, tools, and people, indicating when practices are strategic or tactical in nature, and classifying the best practices based on the validation criteria synthesized from the data. Included in this list are those best practices identified as a result of the BEM/C&E noted in italics. As depicted (see Attachment F) most of the identified best practices fall into the good classification. There were sufficient measures in place to indicate these practices were effective in their current setting. In some instances these practices may be used by other sites and program that were not identified for observation. Confirmation that these practices have been successfully implemented with historical data measures would elevate these practices to a proven classification. For those practices that are classified as intuitive, these practices were identified during the BEM/C&E analysis and have no performance data available. Proven best practices were those practice which were recurring in participant coded responses and observations. Since no best practices currently exist or had been identified by the supply chain management organization, no practices identified in this study would meet the organizational approved classification. Behavioral Engineering Model Cause & Effect Results Analysis of the observations and the Behavioral Engineering Model Cause & Effect (BEM/C&E) analysis identified potential best practices in the supply chain management organization and BEM/C&E enablers 172

Researcher cross case analysis of the Behavioral Engineering Model Cause & Effect (BEM/C&E) noted that 22 observations were analyzed by best practice category, enabler attribute and enabler category. Table 36 presents the cross case analysis of the data.

Table 35. Cross Case Best Practice Enabler

Behavioral Engineering Enabler Synthesis Matrix Observation Enablers Enabler Appearance in BEM Categories

Environment

Knowledge

Individual

Incentive

Behavior

Capacity 2 3 16 3 24

Systems

Organization Communication Tools People Totals

2 3 13 4 22

19 28 145 27 219

10 21 69 22 122

5 9 47 8 69

7 5 41 7 60

7 14 57 12 90

3 4 29 9 45

Analysis of the enablers influenced by the environment and those influenced by behavior indicate that the environment enablers out weighed behavioral enablers almost two to one. This would indicate that the organization and the firm tend to have systems and environmental influences in place that promote or enable best practices to exist instead of relying on subject matter expert or employee behavior to initiate and maintain a best practice environment and culture. Analysis also shows that incentives and data are top contributors to current best practices. The researcher also noted in analyzing the best practice enablers that there were several recurring enabler descriptions. Common systems enablers occurred 23 times, 173

Motive 5 14 24 10 53

Data

cross functional data enablers occurred 22 times, previous experience/exposure occurred 21 times, training enablers occurred 19 times, relationship enablers occurred 12 times, and data integrity or quality occurred 9 times. These findings lead the researcher to include common systems, cross functional data and relationships management as potential best practices.

Conclusion of Chapter 4 Results Cross case analysis enabled to researcher to address the research questions. Responses indicate that participants are very familiar with the best practice concept. The majority of the respondents could clearly articulate what and why organizations would want to pursue best practices. Cross case analysis and observation shows that the participants description or definitions of best practices were limited to local experience. Some participants used the benchmark definition and/or descriptions of various benchmarking activities while describing and defining best practices in general. While general descriptions of best practices may vary, participants on the whole described best practices as approaches or techniques executed to improve current performance. Research Question 1 Answered How can best practices in supply chain management be systematically identified and validated? There was no process, practice or approach identified in individual embedded unit analysis or cross case analysis that was either universal or consistent over several sites for identifying best practices in the supply chain management organization. The researcher feels that the protocol used in the study, an embedded case study using interviews, 174

observations the BEM/C&E and cross case analysis along with specific techniques noted in the literature could be used to systematically identify best practices within the firm and in other applications as well. Appendix E: Potential Best Practices Identified and Classified in Supply Chain Management lists the potential best practices identified as a result of this study. There was no single approach used within the firm for validating or classifying best practices. Results of the embedded unit and cross case analysis indicate that there was no recognized or accepted approach for validating or classifying best practices in the firm. Cross case analysis identified a number of subject matter expert responses that when compared to the literature and discussions with experts yielded a four classification validation criteria developed by the researcher, Those validation criteria are intuitive, good, proven and organizationally approved. Research Question 2 Answered To what extent are practices used by the firm in the Supply Chain Management Organization best practices? There are no Supply Chain Management Best Practices in the organization or within the firm, but embedded case and cross case analysis did yield significant subject matter expert suggestion and opportunities for observation of practices used by participants in the firm and organization. These practices and others identified through BEM/C&E analysis are listed in Potential Best Practices Identified and Classified in Supply Chain Management (see Appendix F). These potential best practices are classified using the validation criteria established by the researcher, intuitive, good, proven and organizationally approved. Using this validation criteria, only two of the 175

practices listed fall into the proven best practice category, management by process and demand forecasting meet the validation criteria of historical data from multiple applications, functions and organizations. Additional Findings In the process of answering the research questions there were a number of additional findings that the researcher felt were significant. These additional findings were a description of the supply chain management organization within in the firm, use of the BEM/C&E as a tool for identifying best practices, and environmental vs. behavioral enabler ratio. Cross case analysis of responses and observations indicates that the supply chain management organization has all the physical elements of developing, planning, and making, procuring, storing, delivering, returning and supporting a product and/or service. The organization has successfully integrated these physical functions with the information, financial and communications networks which in turn are bound and managed through a robust relationship oriented management approach spanning from the supply base to the customer. Cross case analysis of the BEM/C&E enablers yielded two additional study findings. Cross case analysis of the individual enablers indicated that there were several recurring enablers for practices that were analyzed. These recurring enablers were included in the potential best practices identified in the firm and would indicate that the BEM/C&E has the ability to identify best practices independently and in conjunction with other best practice identification and benchmarking tools.

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Additionally, it was noted that environmental enablers out weighed behavioral enablers more than 2:1 indicating that the Supply Chain Management Organization has an infrastructure that supports and enables best practices versus relying on subject matter expertise to foster and cultivate a best practice environment.

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CHAPTER 5. RECOMMENDATIONS Introduction The purpose of this empirical embedded case study was to describe the real world experiences of a firm engaged in supply chain management activities, focused on identifying participant perceptions of supply chain management, best practices identification and validation, and determining if practices used in the supply chain management organization are best. The contributions of this research include additions to the theories of supply chain management, best practice and human performance technology as well as providing foundations for future research into causal relationships, predictive measures or process approaches. This chapter presents the conclusions and recommendations from the researchers analysis and synthesis of the studys findings. This chapter is organized into three sections; 1) Value of the study, 2) Conclusions resulting from the findings of the study and 3) Recommendations for future research and the leadership of the organization involved in the supply chain management.

Value of the Study As stated in Chapter 1 the theoretical foundations of the study were Swansons (2007) three human performance technology elements of organizational performance: 1) economic theory, 2) psychological theory and 3) general systems theory. Since defense agencies continue to emphasize costs as key drivers in contract award decisions, firms engaged in defense contracting must continue to find ways to 178

improve competitive advantage and reduce costs (King & Driessnack, 2007). The literature would indicate that a key economic driver to improving the firms competitive advantage was to understand the firms approach concerning best practices. Since best practices are seen as a proven approach to cost savings and improved competitiveness (Zairi, & Al-Mashari, 2005). The organization does not have recognized best practices, nor is there a process for identifying and validating, however in the process of conducting the study, potential best practices were identified thus providing an approach for identification. Validation classifications were also identified and documented. Based on past studies of best practices the Supply Chain Management Organization can help the firm reduce its costs and improve both the organization and the firms overall competitive advantage by pursuing implementation of the identified potential best practices. The psychological foundations are based on the recognition that humans broker productivity through their behavior (Swanson, 2007), and the emphasis on external reinforcers to that behavior (Swanson & Holton III, 2001). The study observed behavior in an attempt to answer the research questions and through the lens of the Behavioral Engineering Model, identified environmental enablers of behavior. The implications of the study findings indicate that the human performance technology approach which focuses on the human element of performance is a significant and appropriate approach to analyzing business or organizational performance. Findings also indicate that Gilberts (1996) Behavioral Engineering Model is an appropriate and effective tool for not only analyzing behavioral observations, but when used in conjunction with a cause and effect diagram, becomes a powerful tool for identifying enablers for best practices and identifying potential best practices. 179

Systems theory addresses the lack of defined processes for best practices identification, which is a systematic disconnect that affects performance (Swanson, 2007). By identifying potential best practices in the Supply Chain Management Organization the research enables the organization to link organizational goals with activities designed to accomplish those goals and the work force responsible for executing them. Further the finding that the Supply Chain Management Organization itself was a process encompassing and integrating all activity involved in developing, building/buying, storing, delivering, and returning and supporting a product or service is in itself a systems theory approach to executing successful, competitive defense contracting. This would indicate that both the theory of supply chain management is a valid, competitive approach for defense firms and that systems theory is applicable to the supply chain management principle. These findings not only benefit the firm and the Supply Chain Management Organization, but are beneficial to the field of study as well. There was little literature available in regard to supply chain management and best practices as well as a lack of relevant study data with in regard to validation and classification of best practices. The study also included a unique combined use of the Behavioral Engineering Model and a Cause & Effect diagram. Each of these contributes to the body of knowledge and provides potential sources for future study. Additional findings included a complete description of the current supply chain management organization, the creation of a new tool, the BEM/C&E, and several recommendations for further research.

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Conclusions Research Question 1: How can best practices in supply chain management be systematically identified and validated? The Supply Chain Management Organization did not have identified best practices, nor was there an approach for identifying or validating best practices. As stated in Chapter 2 during the literature review, the researcher could not identify policies or approaches that helped the employee identify pertinent best practices for use and deployment. Based on the interview responses and subsequent observations and continued review of the literature it is evident that the firm does not have a universal approach that helps employees indentify best practices. Although employees understood the best practice concept well and had the ability to articulate with some degree or accuracy what a best practice was, it appeared to the researcher that the numerous databases, and data management sites where best practices were supposed to be consolidated did not include enough information or comparative measures for the employee to accurately identify a comparable best practice for replication. Descriptions were vague and while measures may have existed, comparative measures were nonexistent. The literature reviewed and previous study information collected would indicate that comparative metric analysis is the usual and preference approach for identifying best practices. Results of the findings of the study indicate that the HPT process of focusing and analyzing the human element, in this case through interviews and observations yielded 19 potential best practices for the Supply Chain Management Organization. The Behavioral Engineering Model, by design, provides a general approach to where one 181

should look to find enablers, (Gilbert, 1996), while the Cause & Effect diagram provides an approach for how one should identify the root causes, or enablers of and effect, (Brassard, & Ritter, 1994). Damilio notes that an enabler is any condition or factor that influences the effectiveness of a practice (1995, p. 7). Results of the final cross case analysis indicate that researcher use of the BEM/C&E identified three additional potential best practices. By using the BEM/C&E and listing all the enablers for best practices in the BEM categories, the researcher was able to cross analyze not only categories but recurring enablers. When a single enabler appeared to be a common enabler for multiple best practices it would appear that that enabler would meet the best practices criteria of multiple application and positive impact. These additional potential best practices were common systems, cross functional data and relationships management. These descriptions and the subsequent findings lead the researcher to conclude that use of the HPT theory of human performance and the Behavioral Engineering Model overlaid with the Cause & Effect diagram provided the foundational structure and both the how to and where to look in identifying influences of effectiveness. Therefore the researcher concludes that the HPT theory and BEM/C&E are valid approaches for identifying best practices. As stated earlier there was no process or approach identified within the firm for validating best practices. Review of the literature did not reveal significant literature or theory concerning the validation of best practices. Only one article by Jarrar and Zairi (2000) was found indicating that not all best practices should be viewed the same, and that there should be some classification criteria in a validation process for best practices.

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Independent subject matter expert responses in the research study indicated that they felt that best practices should be validated and then classified as well. Based on the subject matter expert input, literature review and observations the researcher created the validation and classification criteria of; intuitive, good, proven and organizationally approved. Therefore the researcher concludes that the validation and classification criteria developed as a result of the study findings is a valid approach for validating and classifying best practices. Research Question 2: To what extent are the practices used by the firm in the Supply Chain Management Organization best practices? Although there were no recognized supply chain management best practices, there were a number of functional best practices. As noted in Chapter 2 best practices exist in Supplier Management, Program Management and other functions. In addition to these there were organizational or corporate best practices. Most participants indicated that the practices that they used as recognized best practices were in reality simply good practices and not what they would consider best. Several examples were given where best practices had approaches that were more effective, but were not recognized by the firm and therefore those improvements were not incorporated Best practices are those processes or steps that add to a firms competitive advantage, (Camp, 1989). In each case where the researcher observed potential best practices, the respondents suggested the potential best practices by indicating that practice or approachs impact on some measure that was significant to their site or program. In essence the use of the practice in question contributed to their departmental or site competitive advantage. Observation and subsequent analysis of the pertinent 183

literature and interview responses indicated that the practice observed in some way had a positive impact on the immediate surroundings and had potential to positively influence a broader sphere of activity. Therefore the researcher concludes that the practices observed and those identified using the BEM/C&E had the potential to be best practices in the supply chain management organization. These 22 best practices are detailed (see appendix E) and are classified using the validation and classification criteria identified for research question 1 above. The researcher further concludes that of the 22 best practices identified only two meet the validation criteria of having historical performance data covering multiple applications, departments and organizations, to be classified as a true or proven best practice. Summary of Conclusions The implications for the Supply Chain Management Organization are several tools for identifying best practices and classification criteria for validating identified best practices. Further study of the Organizations activity resulted in a suite of 22 potential best practices, with two of those practices being classified as proven. The theory of Supply Chain Management and Best Practices was shown to contribute to the competitive advantage of a defense firm engaged in competition for defense contracts. The theory of human performance technology was shown to be an appropriate approach for analyzing supply chain management activity and for the study of best practices. The Behavioral Engineering Model theory used in conjunction with a Cause & Effect diagram were also shown to be effective in analyzing observed supply chain management activity and identifying potential best practices. 184

Recommendations The researcher offers two recommendations for future study that were identified in the current study, three recommendations for the present supply chain management organization and one recommendation for the future of the organization. Recommendations seven through nine were recommendations identified by subject matter experts during interviews and observations. Recommendations for Further Research Recommendation 1: The researcher recommends that additional studies be conducted using the best practices validation and classification criteria established in this study. The results of embedded unit and cross case analysis resulted in a four category validation process for classifying best practices. Further research should be conducted to test this process and prove its potential as a standard validation process for best practices. Recommendation 2: The researcher recommends that additional studies be conducted using the Behavioral Engineering Model/Cause & Effect (BEM/C&E) analysis tool for identifying best practices. The results of the study would indicate that the BEM/C&E was an effective analysis tool that could be used to identify best practices in settings were best practice process and approaches do not exist as well as in settings where there is a robust best practice process in place. Recommendations for the Present Supply Chain Management Organization Recommendation 3: People involved with the Supply Chain Management Organization need to understand the organizations role and capabilities.

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The researcher recommends that the organization develop an overview training that covers the phases of the supply chain management, typical roles, responsibilities and capabilities of the organization that were identified in this study. This training would serve as an introduction to those employees working in the organization and those stakeholders and customers that my have need to interface with the organization. Recommendation 4: Employees involved with the Supply Chain Management Organization need a process for identifying and validating best practices within the organization. The researcher recommends that the organization create a best practice process that defines the organizational expectations of a best practice and provides a guide to identifying and validating best practices. This process should include the following; a best practices definition, detailed approach to identify best practices, internally and externally, and should include validation criteria. This procedure should include directions on when and how to use the Behavioral Engineering Model/Cause & Effect analysis tool. It should also include a portion detailing validation approaches which would include the classifications of; intuitive, good, proven and organizationally approved best practices. Recommendation 5: Employees in the Supply Chain Management Organization need to develop a suite of best practices to ensure that the organization is contributing to the competitive advantage of the organization and the firm. The researcher recommends that the Supply Chain Management Organization adopt the best practices identified in the study and develop a culture of best practice by continual review of current practices and benchmarking other organizations and 186

corporations best practices. A further recommendation is for the organization to use the Behavioral Engineering Model/Cause & Effect tool to analyze processes, internally and externally to identify enablers previously unidentified that can be incorporated as best practices. Recommendations for the Future Supply Chain Management Organization Recommendation 6: The Supply Chain Management Organization needs to develop a mindset of being continuous learners regarding the ongoing development of the organization and employees. The Supply Chain Management Organization should continue its internal organizational development and ensure that the employees of the organization are in step with the development process. The organization should continue its training development program and broaden the scope to include and encompass in depth training for each of the phases, roles and capabilities. The researcher recommends that the organization develop a Supply Chain Management University where employees can receive up to date and cutting edge concept training in the expectation of the organization. Included in this training should be review and application of the recognized Supply Chain Management Best Practices. Recommendations by Subject Matter Experts Recommendation 7: The Supply Chain Management Organization needs to develop an estimating model that can accurately estimate the supply chain costs and activity in support of proposals.

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Recommendation 8: The Supply Chain Management Organization needs to develop an approved recruitment process that ensures the organization attracts top supply chain management candidates. Recommendation 9: The Supply Chain Management Organization needs to develop a common language since the organization is cross functional in nature and includes customers and suppliers.

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APPENDIX A. STRUCTURED INTERVIEW GUIDE Structured Interview Guide Opening/Introduction I would like to thank you for your voluntary participation in this research project and submitting your consent form. Your participation in this study may be recorded. These provide a record of the test sessions that we can analyze off-line so that we do not have to depend only on our memory and written notes. You may ask that audio recording be turned off and/or that recording media be destroyed at any time during your participation. Recordings are to be coded so no traceability to the source can be made and will be destroyed once the study is published. May I proceed with recording our conversations? Yes_______ No________ For the record, please indicate that you agree to the recording of our conversations.
Structured interview objectives:

The objective of the interview is to gain insight into your view of Supply Chain Management structure, and best practice use and deployment in the execution of supply chain management activities. There are ten questions, and the overall interview should not take more than 30 minutes. Structured interview questions:
What is supply chain? What is supply chain management? Do you interface with Supply Chain Management? If so how? What is a best practice? How do you know if you have a best practice? How do you find and implement best practices? In theory? In practice? What do you or your department/organizational do that might be considered a strength? Why? How do you measure them? 8. Do you consider these strengths to be best practices? Why? How do you measure them? 9. Do you know of best practices in your field? How do you know about them? 10. Is there a plan to incorporate them into your area? How? 1. 2. 3. 4. 5. 6. 7.

Thank you: I would like to thank you for your time and participation and remind you that we will maintain your confidentiality as much as possible throughout the research project. If you have any questions about this study please contact: Jay F. Chance at (850) 803-0916

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APPENDIX B. LETTER OF INTRODUCTION

Global Services & Support Supply Chain Management 11 February 2009 Attention: To Whom It May Concern Subject: Research Study of Best Practices in Supply Chain Management To Whom It May Concern: This memo is to introduce Jay F. Chance, Supplier Program Manager, and a highly qualified individual with 20 years experience in the fields of Operations, Program Management and Supplier Management. Chance has been engaged by the Supply Chain Management organization to conduct a case study commissioned by myself. Ultimately, by means of this case study approach my organization hopes to identify and document answers to such question as: How do we develop, select and evaluate best practices, and what are the best practices used in the Supplier Chain Management Organization This memo is directed to site and program leaders, subject matter experts and support personnel. We must ask you to dedicate some time, experience and patience to our interviewer. Your cooperation is most essential if the case study is to successfully guide and support the final policy recommendations which the researcher must provide to my office. On behalf of the research members involved I wish to express our gratitude for your assistance. Should you wish to be included on our distribution list for the final report, our interviewer will be glad to make the proper arrangements. Again, thank you very much for your support and time Regards, JFC-SCMRSBP-09-001

Ken Shaw Vice President, Global Services & Support Supply Chain Management

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APPENDIX C. PARTIDIPANT BACKGROUND SYNTHESIS MATRIX

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APPENDIX D. INFORMED CONSENT FORM

RESEARCH SUBJECT INFORMATION AND CONSENT FORM TITLE: SPONSOR: INVESTIGATOR: A Study of Best Practice in Supply Chain Management Supply Chain Management Jay F. Chance 626 Anchors St NW, Fort Walton Beach FL 32548 850-362-5748 jay.f.chance@[Firm].com Long Beach, CA; Mesa, AZ; Oklahoma City, OK; Philadelphia, PA; Puget Sound, WA; San Antonio, TX; Wichita, KS; Fort Walton Beach FL; St. Louis, MO; United Kingdom & Australia

SITE(S):

This study has been approved by Capella Universitys IRB 105539-1, effective from February 17, 2009 through February 17, 2010.

This consent form may contain words that you do not understand. Please ask the researcher or the study staff to explain any words or information that you do not clearly understand. You may take home an unsigned copy of this consent form to think about or discuss with family or friends before making your decision. SUMMARY You are being asked to be in a research study because you have been identified as having the appropriate expertise and experience in which the research study is exploring. Your decision to be in this study is voluntary. If you decide to be in this study and then change your mind, you can leave the study at any time. You will be in this study for at a minimum one 30 minute interview, and should follow-up questions be necessary, a second 30 minute interview. If you agree to be in this study, your research records will become part of this study. They may be looked at or copied by the sponsor of this study or government agencies or other groups associated with the study.

More detailed information about this study is in this consent form. Please read it carefully. PURPOSE OF THE STUDY: Is to understand how best practices are used in the supply chain management organization. Specific questions and possible observation will seek to understand how best practices are developed, selected and evaluated The study is expected to be completed by the end of 2009. You will be in this study for the duration although actual participation will be limited to interviews, questionnaires and potentially observation of an activity. Approximately 50 subjects will participate in this study. The study is scheduled to take place between Feb-1-2009 and Aug-30-2009, and will be done primarily from the Fort Walton Beach site, with follow-up sessions at sites chosen for observation. PROCEDURES If you decide to participate, you will:

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Be asked to answer the following questions o How does your organization report to the corporations supply chain management function? o What is supply chain? o What is supply chain management? o Do you interface with Supply Chain Management? If so how? o What is a best practice? o How do you know if you have a best practice? o How do you find and implement best practices? In theory? In practice? o What do you or your department/organizational do that might be considered a strength? Why? How do you measure them? o Do you consider these strengths to be best practices? Why? How do you measure them? o Do you know of best practices in your field? How do you know about them? o Is there a plan to incorporate them into your area? How? Should some of your responses fit the criteria as of a best practice the researcher may request to observe the practice as it is being performed

Your participation in this study may be recorded. These provide a record of the test sessions that we can analyze off-line so that we do not have to depend only on our memory and written notes. You may ask that audio recording be turned off and/or that recording media be destroyed at any time during your participation. All recordings will be destroyed once responses are coded and prior to publication of the research data. RISKS AND DISCOMFORTS There are no anticipated risks in this study that are greater than you will encounter in performing your normal duties. If you experience any discomfort, you should inform the researcher immediately and stop your participation. BENEFITS You are not expected to benefit directly from participation in the study. The results from the study may however increase the productivity of the overall organization and potentially may be the basis for corporate improvement initiatives COSTS There is no cost to you for participating in this study. PAYMENT FOR PARTICIPATION You will not receive any additional payment for participating in this study. ALTERNATIVE TREATMENT This is not a treatment study. Your alternative is to not participate in this study. CONFIDENTIALITY Information from this study will be given to the sponsor. Research records, including photos, audio and video recordings and the consent form signed by you may be looked at and/or copied for research and regulatory purposes by: The sponsor The Firm

Absolute confidentiality cannot be guaranteed because of the need to give information to these parties. The results of this research study may be presented at meetings or in publications. Your

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identity will not be disclosed in those presentations. Your identity will not be released to the general public without your consent, unless specifically required by law. VOLUNTARY PARTICIPATION AND WITHDRAWAL Your participation in this study is voluntary. You may decide not to participate or you may leave the study at any time. Your decision will not result in any penalty or loss of benefits to which you are entitled, nor will it have any effect on your employment at The Firm. If significant new findings develop during the course of this study that may relate to your decision to continue participation, you will be informed. Your participation in this study may be stopped at any time by the researcher or the sponsor without your consent because: you have not followed study instructions; the sponsor has stopped the study; or administrative reasons require your withdrawal.

SOURCE OF FUNDING FOR THE STUDY This study is being funded by The Firm QUESTIONS If you have any questions about this study or your participation in this study, contact: Jay F. Chance (850) 326-5748 E-mail: jay.f.chance@[Firm].com If you have questions about your rights as a research subject, you may contact: Greg Lim Human Subjects Protection Program Administrator 425) 865 1068 E-mail: Gregorio.Lim@[Firm].com Do not sign this consent form unless you have had a chance to ask questions and have received satisfactory answers to all of your questions. If you agree to be in this study, you will receive a signed and dated copy of this consent form for your records. CONSENT I have read the information in this consent form. All my questions about the study and my participation in it have been answered. I freely consent to be in this research study. I authorize the use and disclosure of my information to the parties listed in the confidentiality section of this consent for the purposes described above.

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By signing this consent form, I have not given up any of my legal rights. ________________________________________ Subject Name CONSENT SIGNATURE: ________________________________________ Signature of Subject ________________________________________ Signature of Person Conducting Informed Consent Discussion __________________ Date __________________ Date

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APPENDIX E. INTERVIEW DATA ANALYSIS MATRIX

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APPENDIX F. POTENTIAL BEST PRACTICES IDENTIFIED AND CLASSIFIED IN SUPPLY CHAIN MANAGEMENT Category Practice Strategic Tactical Classification Organizational Organizational Roles in a Cross Functional Setting Modular and Scalable Supply Chain Common Systems Cross Functional Organization and Development Relationships Management Cross Functional Leadership Team Customer and Stakeholder Participation Personal and Group Dynamics People Development Subject Matter Expertise and Development Employee Involvement Predictive Indicators Spares Checkbook Paperless Management by Process ROI Forecasting Cell Workgroup Concept Global Tool Tracking Logistics Support Analysis Performance Based Logistics Contractor Logistics Support Forecasting (3 cases) X X X X X X X X X X X X X X X X X X X X X X Good Good Intuitive Intuitive Intuitive Good Good Good Good Good Good Good Good Good Proven Intuitive Good Good Good Good Good Proven

Communication

People

Tools

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