Sample Gap Analysis Report To Client Top Management
 
 

Executive Summary

From an Evaluation and Commentary of Gap Analyses Acme World Class Supply Management Boot Camp, Redwood City, CA., February 8-16, 2001
 
 

A bulletin from the February 20, 2001 Dow-Jones Newswire, quoted Acme's Chief Executive Officer and Founder, Stephen Wallace as saying that Acme will:

Much of the success and a way forward that Acme seeks in these difficult times can result from a timely embrace of the principles and spirit embodied in the philosophies of World Class Supply Management? At the recent Supply Management Boot Camp held in Redwood City, California, the principles of World Class Supply Management? were introduced to Acme's Supply Management professionals. A detailed examination of Gap Analysis surveys from Boot Camp participants suggests a "short list" of fundamental challenges, which must be immediately addressed and surmounted for Acme to ensure it's success and goal of controlling costs.

Move Away From a Model Characterized By Transactional, Arms-Length/Adversarial Supplier Relations Toward More Collaborative and Partnership Relationships.
 
 

Aggressively Employ Cross-Functional Teams, not only Within Acme, But Also To It's "Extended Enterprise" Members -- It's Suppliers.
 
 

Eliminate A Focus On Price-Buying -- Move Toward a "Total Cost Of Ownership" Model.
 
 

Employ Demand Management Principles to Address Product Forecast Error.
 
 

Achieving the transformation at Acme necessary to achieve these goals can best be assured through the deployment of the principles of World Class Supply Management? not only within the Supply Management organization, but to every function within Acme, and ultimately throughout Acme's supplier community. As one scholar recently noted:
 
 

Firms such as Harley-Davidson, Honda North America, and John Deere have attributed much of their success -- even survival -- to the adoption of World Class Supply Management? as a major competitive advantage. We believe that Acme is ideally positioned to undertake a similar transformation.

Acme World Class Supply Management Boot Camp

Redwood City, CA.

February 8-16, 2001

Introduction:
 
 

The objective of this commentary is to offer an analysis of various "gaps" revealed during the delivery of three two-day fundamentals courses (or Supply Management 'Boot Camps") for Acme, Inc., at an off-site location in Redwood City, California, to the supply management professionals of Acme, February 8-16, 2001.
 
 

As used in achieving the objective of World Class Supply Management status, a "Gap" may be defined as: "an indication of the "distance" from where an organization and its individuals are at a given point in time in terms of both understanding and capabilities, to where they must be to achieve World Class Supply Management status." Thus, an informal gap analysis, should reveal areas of weakness, -- or opportunities for improvement -- which should be addressed by the organization. Further, a gap analysis gains added legitimacy, as the perceived gaps between existing practice and WCSM are offered by the organization's employees themselves.
 
 

Elements of the Acme Supply Management Boot Camp.
 
 

The following topics were offered to three groups of Acme employees, with each Boot Camp session covering two days of intensive delivery. The following topics were delivered by SSMI:
 
 

The World Class Supply Management Model.
 
 

The following four-stage model of World Class Supply Management offers a segmented view of functional, process, and even individual competencies required for an organization and its individuals to attain World Class status of its supply management operations.
 
 
 
 

Figure 1. World Class Supply Chain Model

The WCSM Model complements and underscores the vision of the future of Acme's Supply Management organization and its individuals as presented by Acme's Mr. Robin l. Williams:
 
 
 
 
 
 

Figure 2. Acme Supply Management Gap Analysis
 
 

At the opening of each of the three Boot Camp sessions dealing with World Class Supply Management, Dr. David N. Burt asked that the participants examine the characteristics of each stage of the Four-Stage WCSM model. The majority of Acme Supply Management professionals indicated with a show of hands that they viewed themselves astride Stage TWO ("Mechanical") and Stage THREE ("Proactive") -- with a bias of a majority of their collective activities supporting Stage THREE actions. However, a detailed review and analysis of the Gap Analysis forms solicited after each segment of Boot Camp education suggests that actual Supply Management performance rests firmly in Stage TWO ("Mechanical") of the WCSM model.
 
 

General Conclusions from An Examination of Acme Gap Analyses.
 
 

The following are conclusions derived from a topical examination of the Gap Analysis forms submitted by Acme Supply Management professionals at the Supply Management Boot Camp held in Redwood City, California:

A detailed analysis of the student responses (Gap Analyses) are provided in Appendix I, " Topical Analysis of Boot Camp Gap Analyses." The detailed analysis provides both a tabular as well as graphic summary of the Gap Analysis responses collected from the participants at the Redwood City presentations. Moreover, they afford support for the major "Gaps" noted above.
 
 
 
 

Ranked by the number of responses (Gap Analyses) from Boot Camp participants for each of the program topics, both World Class Supply Management and the section on Cross-Functional Teams ranked the highest. The least number of Gap responses were received for Finance and e-Commerce. In the case of e-Commerce, this was due not to a lack of perception or interest, but as a result of the press of time (due directly to technology failures), and a decision, in the interest of time, not to perform a Gap Analysis in two of three sessions. These observations are portrayed in Figure 3., "Gap Analyses Ranked By Number of Responses:"
 
 
 
 

Figure 3. Gap Analyses Ranked By Number of Responses
 
 
 
 

In analyzing the total number of perceived 'Gaps" against topics delivered, the highest number of perceived gaps were in both World Class Supply Management and Cross-Functional Teams, followed with equal gap perceptions in Source Selection, Quality Management, and Negotiations. The least number of perceived gaps were noted in the areas of Finance and e-Commerce. Figure 4, "Gap Analyses Ranked By Number of Responses" shows these relationships:
 
 

Figure 4. Gap Analyses Ranked by Number of Responses
 
 
 
 

In analyzing the proportion of Gap responses against the number of responses by topic, almost all topics delivered evidenced a high proportion of perceived gaps. Thus, regardless of the total number of respondents for each topic, all topics were worthy of a "perceived gap." The topics with the highest proportion of gaps were: World Class Supply Management, Cross-Functional Teams, followed by Quality Management, Negotiations, and Source Selection. This is portrayed in Figure 5, '"Gap Analyses By Topic; Proportion of Perceived Gaps v. Number of Respondents":
 
 
 
 
 
 
 
 
 
 Figure 5. Gap Analyses By Topic: Proportion of Perceived Gaps v. Number of Respondents
 
 

APPENDIX I. Acme World Class Supply Management Boot Camp
Redwood City, CA.

February 8-16, 2001
 
 
 
 

1. World Class Supply Management
 
 
 

Table 1. WCSM Gap Analysis Distribution
 
 
 

Table 2. WCSM Gap Nature Distribution
 
 

Figure 6. WCSM Gap Perceived Causes
 
 

2. Cross Functional Teams
 
 
 
 
 

Table 3. Cross Functional Teams Gap Analysis Distribution
 

Table 4. Cross Functional Teams Gap Nature Distribution

Figure 7. Cross Functional Teams Gap Perceived Causes
 
 
 
 

3. e-Commerce
 
 
 
 
 

Table 5. e-Commerce Gap Analysis Distribution
 

Table 6. e-Commerce Gap Nature Distribution

Figure 8. e-Commerce Gap Perceived Causes
 
 
 
 
 
 

4. Buyer-Supplier Relationships/Ethics
 
 
 

Table 7. Buyer-Supplier Relationships/Ethics Gap Analysis Distribution
 

Table 8. Buyer-Supplier Relationships/Ethics Gap Nature Distribution

Figure 9. Buyer-Supplier Relationships/Ethics Gap Perceived Causes
 
 
 
 
 
 
 
 

5. The Requirements Process
 
 
 

Table 9. The Requirements Process Gap Analysis Distribution
 

Table 10. The Requirements Process Gap Nature Distribution

Figure 10. The Requirements Process Gap Perceived Causes
 
 

6. Finance
 
 
 

Table 11. Finance Gap Analysis Distribution
 

Table 12. Finance Gap Nature Distribution
 
 

Figure 11. Finance Gap Perceived Causes
 
 
 
 
 
 
 
 

7. Sources of Supply
 
 
 

Table 13. Sources of Supply Gap Analysis Distribution
 

Table 14. Sources of Supply Gap Nature Distribution
 
 

Figure 12. Sources of Supply Perceived Causes
 
 
 
 
 
 
 
 

8. Price, Cost, Total Cost of Ownership
 
 
 

Table 15. Price, Cost, TCO Gap Analysis Distribution
 

Table 16. Price, Cost, TCO Gap Nature Distribution
 
 
 
 

Figure 13. Price, Cost, Total Cost of Ownership Perceived Causes
 
 
 
 
 
 

9. Negotiations
 
 
 

Table 17. Negotiations Gap Analysis Distribution
 

Table 18. Negotiations Gap Nature Distribution

Figure 14. Negotiations Perceived Causes
 
 
 
 
 
 

10. Managing For Quality
 
 
 

Table 19. Managing For Quality Gap Analysis Distribution
 

Table 20. Managing For Quality Gap Nature Distribution

Figure 15. Managing For Quality
 
 

11. Logistics
 
 
 

Table 21. Logistics Gap Analysis Distribution
 

Table 22. Logistics Gap Nature Distribution
 
 

Figure 16. Logistics
 
 
 
 
 
 
 
 

12. Post Award Activities
 
 
 

Table 23. . Post Award Activities Gap Analysis Distribution
 

 Table 24. Post Award Activities Gap Nature Distribution
 
 

Figure 17. Post Award Activities