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Ricardo Hamad Master Planning Manager Supply Unit - Brazilian Plant

2. . . . . Ericsson. . . Ericsson Brazil. . . Future. How to get there? The TTC challenge.. . JIT in a telecom business - A Brazilian experience. 126 years of history. . . Index. 4. . The Swedish telecoms pioneer. Lars Magnus Ericsson (1846-1926)Company founded in 1876First export orders in 1881Trademark registered in 1894Manufacturing abroad in 1897.

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Ricardo Hamad Master Planning Manager Supply Unit - Brazilian Plant

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    1. Good afternoon everybody. Thanks for being here and welcome to the Ericsson’s logistic world. Good afternoon everybody. Thanks for being here and welcome to the Ericsson’s logistic world.

    2. 2

    3. 126 years of history

    4. 4 The Swedish telecoms pioneer Lars Magnus Ericsson (1846-1926) Company founded in 1876 First export orders in 1881 Trademark registered in 1894 Manufacturing abroad in 1897

    5. 5

    6. 6 Our great idea Communications is a basic human need for everybody

    7. Strategy

    8. 8 Shaping two Internet industries

    9. 9 Focus on infrastructure and wireless

    10. 10 A truly global company Presence in 140 countries International operations for more than 120 years R&D centers worldwide Strongest brand in mobile infrastructure Listed on 8 stock exchanges

    11. The market

    12. 12 Worldwide Subscriptions Forecast

    13. Innovation

    14. 14 Committed to innovation Strong R&D product portfolio (19% of net sales in 2001) Driving industry standards Stimulating third-party application development Innovation through strategic partnerships

    15. 15 Innovation through strategic partnerships Sony – mobile phones and multi-media handsets Microsoft – Mobile e-mail Juniper Networks – Mobile Internet and carrier-class routers Merrill Lynch, Investor & Industrivärden – Mobile Internet venture capital

    16. Brazil

    17. 17 Outlook Population: 172 million Area: 8,9 million km2 26 states GDP (2001) - US$ b 503,2 Privatization of Telecom market:1998

    18. 18 Ericsson Brazil Facts 1891 First contract signed in Brazil 1924 Established in Rio de Janeiro 1955 Inauguration of the 1st. plant, in Săo José dos Campos 1959 Inauguration of the Training Center, current Competence Development Center 1970 Inauguration of Ericsson’s current headquarter in Săo Paulo 2000 First international call publically conducted in Brazil from a GSM phone to a fixed telephone 2001 Inauguration of the R&D Center in Indaiatuba First data transmission via GPRS

    19. Organisation

    20. 20 Our organisation

    21. 21

    22. 22 How to get there: The Time To Customer Global Program Started in Sweden as a “Supply Chain Efficiency Program” in 1996 Launched in Brazil in 1999 The order winner nowadays: quality in service Main objective: enhance competitiveness through world-class logistic processes Less Supply Chain Total Inventory Increased Inventory Turn Over (ITO) Shorter and Fixed Lead times Improved Delivery Precision Perfect alignment with JIT principles

    23. 23 TTC x JIT Principles Continuous manufacturing based on work cells Production processes using lean manufacturing concept Node Production Centers (NPCs) as specialised production cells - focused on technology adequate lay-outs multi-skilled employees multi-task test equipment Flexible Partners

    24. 24 TTC x JIT Principles Forecast as a basis for the Supply Chain dimensioning LRF/LRP - 2nd year on: Business Planning MRF/MRP - 3rd to 12th month: Dimension the supply “pipe” SRF/SRP - 2nd to 8th week: fine tune the supply “pipe” BUs: Responsible for the S&OP on Large and Medium-term FCCs: Responsible for S&OP on the Short-Term Strategies Ericsson: Engineer-to-order FCCs: Make-to-Order NPCs & 1st tier suppliers: Assemble-To-Order 2nd tier suppliers: Make-to-stock

    25. 25 TTC x JIT Principles Pull Systems KANBAN used between NPCs and 2st tier suppliers Call-off ordering among FCCs, NPCs and 1st suppliers VMI tool linking Ericsson and suppliers

    26. 26 TTC x JIT Principles Total Quality Management Continuous Improvement through Cause-and-Effect analysis Plan-Do-Control-Act loop largely used Benchmarking applied among all Ericsson’s plants Quality contest once a year Continuous evaluation: balanced scorecard

    27. 27 TTC x JIT Principles Product Packages Benchmarking with Mc Donald’s Infinite variety of possibilities turned into standard products customer involvement

    28. 28 TTC x JIT Principles Partnership with suppliers Outsourcing strategy started in early 1990s Outsourcing with global companies started in 1997 Alliances with global partners only: Solectron (boards and magazines production) Emerson (energy systems provider) Volex (Cable systems provider) Elektroskandia (site material provider) Panalpina (Distribution services provider)

    29. 29 TTC x JIT Principles Employees’ empowerment and motivation Motivation assessment every year, everywhere Human Capital Index (HCI) is part of the bonus Human Resources became People and Culture Department Training is a must: 49 employees took the BSCM course 6 employees ending CPIM certification 6 employees certified

    30. 30 TTC Program In Brazil

    31. 31 The results Process oriented organisation

    32. 32 The results Product Packages

    33. 33 The results Merge-in-transit implementation

    34. 34 The results Inventory Policy MRP for A & B Items Reorder Point for C items Specific policy for XYZ items

    35. 35 Supply Inventory

    36. 36

    37. 37

    38. 38

    39. 39 The results

    40. 40 The results

    41. 41 The next steps Customer Involvement Forecast Accuracy Order Changes Delivery Precision Improvement Lead-time reduction Risk Sharing Agreement eTools

    42. 42 Conclusion

    43. 43

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