| Maxim Integrated | 1

basheddockDéveloppement de logiciels

21 févr. 2014 (il y a 3 années et 1 mois)

76 vue(s)

| Maxim Integrated |

1

How to drive excellence in the
BtC

space

By shaping disciplines within the business that become measurable,
repeatable and predictable


ICTF, Basel Switzerland, October 21, 2013

Ralph Montforts

MAXIM Integrated Overview

30 Years of Innovation and Integration


1983

Founded

San Jose, CA

HQ

USD 2.4B

Revenue

~9,000

Employees

MXIM

Stock Ticker

31 / 14

Global Presence

31 Product Technology Centers in 14 countries


| Maxim Integrated |

4

Flexible Manufacturing Capabilities


| Maxim Integrated |

5

Assembly and Test Facilities


| Maxim Integrated |

6

Quality and Support


| Maxim Integrated |

7

The World is Getting Smaller…Faster

| Maxim Integrated

8

1980’
s

2000’
s

Today

Analog is Evolving

BUILDING BLOCKS

SYSTEM SOLUTIONS

ANALOG INTEGRATION

1

2

3

| Maxim Integrated

9

Three Elements of our Strategy

| Maxim Integrated

10

Innovation

Integration

Balance

Great Top
-
Line Growth
vs. Peers

| Maxim Integrated

11

Company

Sep
-
08

Jun
-
13

Change


Maxim

$501M

$608M

21%


Company A
1

$113M
2

$168M

48%


Company B

$310M

$327M

5%


Company C
1

$661M

$670M

1%


Company D

$1,755M

$1,745M

-
1%


Analog
Group Sum

$4,933M

$4,851M

-
2%


Company E

$1,374M

$1,188M

-
14%


Company F

$219M

$145M

-
34%

(1)
Quarter ends Jul’13, using revenue guidance

(2)
Includes acquired company’s revenue in Sept’08

Bill to Cash


2 Locations

>
Dublin, Ireland

>
Manila, The Philippines



4 Processes

>
Billing

>
Cash application

>
Collections

>
Credit



22 FTE

USD
2.4B
Revenue
ttm

per Region

USA
China
Korea
Vietnam
Ro Asia
Europe
Ro World
| Maxim Integrated |

12

VISION


| Maxim Integrated |

13

2015

Year

Satisfaction


“efficient department”

Strategic Partnership

C&C policy

Insight & documentation

Indispensable
Partner

Business view
BtC

as a


non
-
core tactical supplier.


Business views
BtC

as
a strategically


integrated Solutions
Partner

The Journey

Trusted

Advisor



Strategic

Contributor



Solutions
Consultant



Preferred

Supplier




“Necessary Evil “




2010 2011 2011

Informal organization

Proactive behaviour

Automation

KPI / SLA’s in place

One screen solution

1 Tool ; ‘Truly Integrated’

“Lights Out” office

2016

2012

2013

Customers have access

“Paperless” office

QMS System in place

‘Credit Integrated’

201?

‘Collections Integrated’

2014


Achieving excellence through these disciplines



ERP systems


Analysis and Reporting


Automation


Policy and Procedures


Workflow and Desk Top Documentation


Business Process Owner

Process

Tools


Hired to fit Maxim Culture


Training and Development


Motivate, Reward and Recognize


People


Empowering people


Change support


Buy in from Executive Management

Authority

Process


Policy and Procedures

>
Introduction of policies. 2
-
4 pages describing ownership,
accountability, responsibilities and authorization/authorities.

>
Daily, weekly, bi weekly, monthly, quarterly progress reviews, with
action plans, post mortem, etc



Workflow and Desk Top Documentation

>
Mapped all major processes

>
Documented all processes


465 pages



Business Process Owner

>
Ownership and Execution

>
Continuity and CIP

>
Collaboration with other BPO’s

>
Compliance



| Maxim Integrated |

15

START
Open item
Broken POP
Collection strategy
/
risk categories
Generate
cash call list
Priority settings
/
customer category
To do item
Dunning
Solved query
Blocked order
To do list
Blocked
order
release
Query tool
Dunning
process
Ageing list
Select customer
Determine type of
collections call
Information on
:
-

line items
-

customer
Risk
Category
change
Escalate to
collections
manager
Y
N
Customer
agree to pay
N
Output of call
:
to do list
:
POP
value and date
Y
N
N
N
Demand Payment
Output of call
:
to do list
Y
Y
No
-
pay
because of
:
need info
No
-
pay
because of
:
query
To do
list
Query already
logged
Output of call
:
escalation in
query tool
Y
Output of call
:
log query in
query tool
N
Risk
review
POP received
Output of call
:
to do list
:
POP
value and date
Y
To do
list
Responsibility
&
Escalation matrix
Collections process
1
.
1
2010
-
10
-
11
Get confirmation
from customer that
future payments
must be on time
Go to
next
cust
Query
tool
Query
tool
Get confirmation
from customer that
future payments
must be on time
Put cust on block
.
Inform customer
,
collections mgr
and CSR
/
sales
Change SAP
setting
(
risk
category
)
To do
list
multiple
POP broken
Information on
:
-

payment
behaviour
Escalate to
collections
manager
Y
RC
review
RC
review
Order a
/
o cust
is already on
block
N
Keep cust block
.
Inform customer
,
collections mgr
and CSR
/
sales
Y
N
Inform
:
collection
&
credit manager
(
&
controller
depending on
$$
)
Y
Next steps
:
Instalments
/
Legal
/
prepaid
/
financial
difficulties
??
Act upon
N
Change SAP
setting
(
risk
category
)
People


Hired to fit Maxim Values and Culture



Training and Development

>
Maxim U

>
EBYD

>
Mentor Program

>
Development Plan

>
Training and further Education



Motivate, Reward and Recognize







| Maxim Integrated |

16

Tools


ERP systems

>
SAP improvements: Auto Posting Cash, Credit Risk Categories, Blocked Order Logic, Automated
reports and statements/Dunning


Analysis and Reporting

>
Increased number of KPI’s, reports, recurring analysis, Introduction of SAP BPC, BI and now with the
introduction of EDW, really allowing Big Data analysis


Automation

>
Increase quality and consistency

>
Reduce non value add work

>
The system will push the reports


We do not need to pull


| Maxim Integrated |

17

Authority


Empowering people

>
Be Bold, take calculated guess, Learn from mistakes, increased responsibility and authority


Change support

>
Adapt to changes situations. Set winning goals and measure against metrics. Rally others behind a cause.
Obtain necessary resources to accomplish goals. Take ownership and voice opinion or make a decision


Buy in from Executive Management (and full support!)



And push for mindset change in the organization
(if needs to be)

>
One day late just isn’t good enough

>
“…But on average it is good, isn’t it?...”



>

So, is Average Normal?

| Maxim Integrated |

18

Average is not normal



The last
80

years the stock market


Averaged

10 percent



But



During those
80

years


Annual
returns

looked like this

Average is not normal

34

38

-
13

-
28

-
43

-
8

56

5

44

33

34

28

3

-
7

-
10

16

29

21

38

-
6

4

2

20

30

20

14

1

50

25

8

-
10

45

13

1

27

-
10

21

16

14

-
9

28

14

-
10

1

16

17

-
18

-
28

38

27

-
3

8

24

33

-
3

21

23

5

32

17

2

18

29

-
6

35

10

11

0

37

21

31

24

24

-
11

-
11

-
21

32

12

6

15

Average is not normal



But


How many of those
returns



Were between


9

and
11

percent



Or even close to:
average


Average is not normal

34

38

-
13

-
28

-
43

-
8

56

5

44

33

34

28

3

-
7

-
10

16

29

21

38

-
6

4

2

20

30

20

14

1

50

25

8

-
10

45

13

1

27

-
10

21

16

14

-
9

28

14

-
10

1

16

17

-
18

-
28

38

27

-
3

8

24

33

-
3

21

23

5

32

17

2

18

29

-
6

35

10

11

0

37

21

31

24

24

-
11

-
11

-
21

32

12

6

15

Average is not normal




2



2
Out of
80



Average is not normal


Outliers matter

Customer has an average payment
behaviour of about 2 days late.

Customer pays only once every
month.

On payment, half of the invoices
are already O'due, half are due in
the next 2 weeks or so.

At various reporting times customer
still shows invoices up to 16 days
O’due and is
defaulting

on contract.


If you
almost

caught the bus,

You still missed it.


Ian McWhirter


Ralph’s manager & mentor

@ Polaroid Inc

| Maxim Integrated |

25

Continuous Process Improvement; how to get there

Provide the

infrastructure to
transform Maxim's business
processes to eliminate waste,
maximize value and unleash a
company culture that empowers
continuous improvement.


| Maxim Integrated |

26

Customers

Team

Members

Facilitator

Team

Lead

Sponsors

Waste

The Lean Enterprise is a Strategy…



… to turn business
processes into competitive
weapons



Prime Directive”
: continually
seek out and eliminate
waste


Lean can be used in any organization and
across organizations


Lean improvements will add to the bottom line


freeleansite.com

5 Core Principles of Lean

| Maxim Integrated |

28

1. Identify

value

2. Map the

value

stream

3. Value

f
low at

c
ustomer

p
ull


5.

Continuously

improve

4. Empower

employees

Value = What Customers are Willing to Pay For

What are Maxim Customers Willing to Pay For?


C
onsistent timely delivery


H
igh quality


I
nnovative
designs


P
roducts


S
avings



Customers
DON’T Value: Anything else we
do.



Maxim Integrated |

Typical Value Breakdown

Focus areas of Lean

| Maxim Integrated |

30


Eliminate

Value Add, 5%

Non
-
Value Add,
60%

Non Value Add
but Necessary,
35%

Minimize

Eliminate

Improve

The 8 types of Waste

1.
D
efects

2.
O
ver Production

3.
W
aiting

4.
N
VA Processing

5.
T
ransportation

6.
I
nventory

7.
M
otion

8.
E
mployee (Underutilized people)

Waste is anything that uses time, resources or spaces but does not add value to
the product or service from a customer’s perspective

Maxim Integrated |

31

Root Causes of Waste

>
lack
of adherence

>
unnecessary approvals or signatures

>
reviews of reviews

>
multiple hand
-
offs

>
transportation

>
long setup time

>
correction

>
over
-
production

>
poor maintenance

>
lack
of training

>
poor
supervisory skills

>
ineffective
production planning/
scheduling

>
lack
of workplace organization

>
supplier
quality/ reliability


freeleansite.com

Where Can Lean Help Maxim?


Manufacturing
-
> being used in Maxim
fabs


NPI Process
-
> eliminate waste to reduce time to market


CFO Services
-
> procurement, AP, AR, help desk, payroll


Customer Operations


Procure to Pay


Bill to Cash


Anywhere!



How do we using Lean? We use a technique
called Kaizen




Maxim Integrated |

Kaizen Deliverables

1.
2K
f
oot process
m
ap

“As Is”

2. Pain points & times

3. Future process map

4. Roadmap to future

5. 1 page Exec Summary

“A3”

What is a Kaizen?

i.
Structured event to improve a
process

ii.
3
-
5 days with 10


12 subject matter
experts

iii.
Focus on customer

iv.
Objective is to eliminate or minimize
waste: time, resources, effort

1.
2K foot process map

“As Is


2. Pain points & times

3. Future process map

4. Roadmap to
future

5. 1 page
Exec Summary

“A3”

2K Foot Process Map

2K = 1 Step Higher Than Desk Procedures

Team documents steps, times & pain points on wall

Facilitators transcribe steps, times & pains to Visio

Typically

c
overs all
available wall
space in IQ Zone

1.
2K
foot process map

“As Is”

2. Pain points & times

3. Future process map

4. Roadmap to future

5. 1 page
Exec Summary

“A3”

Pain Point Documentation & Root Cause Analysis


Team documents pain points and process times
on wall


Team analyzes pain points for commonalities
and root causes


Team measures impact of key factors


Wasted time in process


Quality deviations due to process


Risks introduced by process

Future State Process Addresses Pain Points

1.
2K foot process map

“As Is”

2. Pain points & times

3. Future process map

4. Roadmap to
future

5. 1 page
Exec Summary

“A3


Team designs and maps out future state process & times on the
wall. Analyzes to assure key metrics improve and pain points are
addressed.

Facilitators transcribe future state to Visio.

Effort


Impact Chart to Develop Improvement Roadmap

1.
2K foot process map

“As Is”

2. Pain points & times

3. Future process map

4. Roadmap to future

5. 1
page
Exec Summary

“A3”



Qualitative “Effort


Impact Chart” developed by team to assess
what it will take to fix the pain points in the future state.

Team evaluates Effort


Impact Chart to determine priorities;
what ends up on the improvement roadmap vs. what is left “as
-
is”. Team members assigned to roadmap items.

Executive Summary Report to Stakeholders

A3 is International Paper Size ~ 11x17 inches

1.
2K foot process map

“As Is”

2. Pain points & times

3. Future process map

4. Roadmap to
future

5. 1 page
Exec Summary

“A3”

A3 developed by team on last day summarizing


Current state issues


Impact on performance


Root causes


Future state


Metrics


Key roadmap items

A3 presented to stakeholders soon after kaizen.

W
ork begins on roadmap, driven by team lead.

R
O
A
D
M
A
P

| Maxim Integrated | Company Confidential

40

Initiatives

Type

Team members, reach out

Complete

FY13 Q4

FY14 Q1

FY14 Q2

FY14 Q3

FY14 Q4

FY15

FY16

Interview: What do our customer(s) want: Bruce, Sales, Cust Ops

Fund/Strat

C&C Mgt, Cust Ops, Sales,

FY14 Q1















Interview: How are we going to grow & Do we allow different policies ?

Fund/
Strat

C&C Mgt, CFO Group, Sales Exec.

FY14 Q1















Collections team Kaizen event : From As Is to
To

Be, process improvement, roadmap and CIP

CIP

Collections team

FY14 Q1















Reporting automation
-

plan, scope, deliverables, constraints. Decide on Ticket system

Efficiency

C&C Team & Mgt

FY14 Q1















Credit team Kaizen event : From As Is to To Be, process improvement, roadmap and kick off CIP

CIP

Credit team

FY14 Q2















ADL report
-

BI report

Compliance

1 Coll, 1 CR, 1 BI reporting specialist

FY14 Q2















Minimum order/invoicing level and/or Minimum yearly spent

Strategic



FY14 Q2















C&C 'stall'
--
> representation at the Global Sales event ??

Cust Service

1 Coll, 1 CR, team manager

FY14 Q2















Collections Kaizen event process improvement & documentation CIP

CIP

Collections team

FY14 Q3















Updated payment terms in SAP
-

Dunning

Compliance

1 Coll analyst, 1 CR analyst, SAP FICO

FY14 Q3















More Cust on CC? Fewer customers? More direct customers? Disti support?

Strategic



FY14 Q3















Query Management system
-

including process, procedures, SLA, reporting, etc CIP

Efficiency

Coll Team, CR team, C&C Mgt

FY14 Q3















Unclaimed property policy and process

Compliance

Coll team + C&C Mgt, Corp Tax

FY14 Q3















Group CL

Efficiency

CR Team
-

C&C Mgt

FY14 Q3















Credit Kaizen event process improvement & documentation CIP

CIP

Credit team

FY14 Q4















New C&C processes & Procedures : Training and dissemination to others CIP

Fundementals

C&C team

FY14 Q4















CL request in the cloud

Cust Service

Credit team, 3rd party provider

FY14 Q4















Customer classification and Customer scorecard

Cust Service

Coll, CR, Cust Ops, Sales, Mgt

FY14 Q4















Real time bank posting and statement depository. Dependencies: AR team deliverable

Cust Service

2 coll analyst, AR team

FY14 Q4















Eliminate / streamline Cash in Advance

Efficiency

1 CR team, 2 Coll team, Cust Ops,

FY14 Q4















Involvement in pricing/ yearly contract negotiations

Strategic

C&C Mgt, Sales, Cust Ops

FY14 Q4















SAP forecast on cash collections, overdue, queries and SOA direct from SAP to Cust email

Cust Service

C&C Team
-

SAP

FY15















Refined, automated refund process. Dependencies: through SAP? Direct in banking? Treasury?

Efficiency

2 coll, AR team, AP team? Treasury?

FY15















Industry/peer reviews. Credit Insurance. RC review. Concentration risk & Country Risk reviews

Efficiency

CR team

FY15















Automated CL calculation

Efficiency

Credit team, 3rd party provider

FY16















Customer access their own accounts in a portal

Cust Service

CR team, Mgt, Executive review

FY16















One screen info solutions. Dependencies: Own solution
-

SAP solution
-

SalesForce.com?

Efficiency

Collective effort

FY16















Customer visits and Customer satisfaction survey (Half yearly?)

Cust Service

C&C team

Ongoing















Better reward & recognition excellent performance
-

high engagement and increased morale

Strategic

Team management

Ongoing















Training staff
-

FCIB
-

ICTF
-

REACH
-

IICM
-

etc

Fundementals

Team Mgt

Ongoing















Improved communications with customer,
cust

ops, other departments

Cust Service

Continuing

Ongoing















PROCESSES

Deliver on commitment

Process 1
st
, Automation 2
nd

Effective Change Mgmt

Delight Customer

Know Customer & Business

Offer Strategic Solutions

CUSTOMER SERVICE

Depend on Each Other

Value Add & Results

Challenge

WIN

PEOPLE

Develop People

Training

Career Path

Centre


of

Excellence


O’due ageing
&

CEI


82%
84%
86%
88%
90%
92%
94%
96%
98%
-2%
0%
2%
4%
6%
8%
10%
12%
>90 O'due
61-90 O'due
31-60 O'due
1-30 O'due
CEI (Right axis)
80%
82%
84%
86%
88%
90%
92%
94%
96%
98%
39
41
43
45
47
49
51
53
55
DSO Monthly
&

% Current


35
37
39
41
43
45
47
49
51
53
55
DSO Quarterly


60+ O’due w/o Bad Debt
&

CR balances


-10000
-8000
-6000
-4000
-2000
0
2000
4000
6000
8000
60plus DT's only w/o BD
60plus w/o Bad debt
Credit Balances
-500
500
1,500
2,500
3,500
4,500
5,500
Bad debt Accrual
Write Offs
Trend Bad Debt Accrual
Bad Debt Accrual
&

actual Write Off


0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% of customers >90
% of customers 61-90
% of customers 31-60
% of customers 1-30
% of customers Current
% of Customers in Ageing buckets


| Maxim Integrated |

46

Cash posted to customer account within 24 hours


| Maxim Integrated |

47

95.00%
95.50%
96.00%
96.50%
97.00%
97.50%
98.00%
98.50%
99.00%
99.50%
100.00%
100.50%
40
41
42
43
44
45
46
47
48
49
50
51
52
1
2
3
4
5
6
7
8
9
10
11
12
13
Other
48<72
24<48
<24 hrs
Cash allocated against invoices within 24 hours from posting


| Maxim Integrated |

48

70.00%
75.00%
80.00%
85.00%
90.00%
95.00%
100.00%
1
2
3
4
5
6
7
8
9
10
11
12
13
91.59%

92.72%

93.72%

87.44%

84.80%

92.00%

93.83%

96.16%

89.80%

92.42%

94.73%

94.38%

93.17%

<24 Hrs (# Items)
Payments on customer accounts 14+days


not allocated


| Maxim Integrated | Company Confidential

49

-
50,000
100,000
150,000
200,000
250,000
5
6
7
8
9
10
11
12
13
14-30 Days
31-60 Days
61-90 Days
90+
Electronic Invoicing

| Maxim Integrated |

50

0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
P1
P2
P3
P4
P5
P6
P7
P8
P9
P10
P11
P12
Yearly Total
9.81%

10.13%

11.05%

10.44%

8.23%

10.70%

10.08%

9.69%

32.54%

32.10%

33.46%

32.83%

49.42%

47.07%

45.41%

47.05%

EDI
Email
Electronic (with changes)
Print
Q & A