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Breakout Session # 1810 Tim Ortel, CPCM, Materials Manager, Silicon Microstructures Date 12 April 2006 Time 2:25 PM PowerPoint Presentation
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Tomorrow’s Lean Supply Chain. Breakout Session # 1810 Tim Ortel, CPCM, Materials Manager, Silicon Microstructures Date 12 April 2006 Time 2:25 PM. Lean Supply Chain Leadership. Sales & operations planning, supply chain management New product design, end of life exit

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Tomorrow’s Lean Supply Chain

Breakout Session # 1810

Tim Ortel, CPCM, Materials Manager, Silicon Microstructures

Date 12 April 2006

Time 2:25 PM

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

lean supply chain leadership
Lean Supply Chain Leadership
  • Sales & operations planning, supply chain management
  • New product design, end of life exit
  • Replenishment trade-offs and material flow
  • Assessing efficiency and yields

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

supply chain overview
Supply Chain Overview

Solution

Recipe

Customer

Needs

Incoming

Parts

(Service)

Post Sales

Support &

Service

Enterprise

Value Add

& Test

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

what drives lean supply chains
What drives lean supply chains
  • Sales and operations planning
  • New product introduction
  • Current product optimization
  • End of life strategy
  • Outcome measurement (metrics)
  • Core versus non-core value add
    • Outsourcing
      • Offshore, near shore, on shore

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

building the supply chain
Building the supply chain
  • Defining which activities are internal or external including design & logistics
  • Identify and control risk(s)
  • Outsourcing (also off shore, near shore?)
    • Design? (ODM)
    • Order management?
    • Build and test? (CM, EMS)
    • Post sale support? (3PL)

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

process discipline
Process Discipline

Plan

Adjust

Do

Check

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

sales and operations planning
Sales and Operations Planning
  • Integrate firm orders & forecast
  • Preliminary business plan
    • New products, current models, end of life
  • Check: capacity, on hand, and on order
  • Firm up production schedules
  • Ensure on time delivery/completions
  • Ship to customers and measure results
  • Maximize leadership & minimize risk

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

product life cycle planning
Product Life Cycle Planning

VolumeProduction

Trade Offs

Capacity

Lead Times

Inventory

Cost structure

Infrastructure

New Product

Introduction

End of Life

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

supply chain metrics up trend
# of customers

Customer satisfaction

Quality (# good/total)

On time delivery %

Process compliance

Revenues

# of new design wins

% of revenue from new products

Flexibility

Value add

Linearity

Profits

Supply chain metrics – “Up Trend”

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

desirable leadership up trends
Desirable leadership “up trends”

After

On time delivery

Revenues

Profits

Quality (#good/total)

Linearity (#actual/#plan)

Before

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

these are good down trends
# Late Shipments

# Part defects

Indirect cost $’s

Total # of suppliers

# Customer returns

Lead times

Inventory $’s

Variance $’s

These are good “down trends”

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

desirable leadership down trends
Desirable Leadership “down trends”

Before

# Late shipments

# Customer returns

Lead times

Inventory $

Indirect cost $

After

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

what is lean
What is “Lean”?
  • No “fat” – minimize overhead/waste
  • Simple – KISS principle
  • Visual – can see process, issues
  • Process speed and lead time control
  • Kaizen, continuous improvement
  • Process measurement/adjustment
  • Simplified flows of materials/process

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

lean manufacturing service
“Lean” Manufacturing/Service
  • Work place organization
  • Process efficiency, discipline
  • Employee cross training
  • Common part/process utilization
  • Supplier integration
  • Simple and timely metrics measurement
  • Quick risk identification and control

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

material replenishment issues
Material Replenishment Issues
  • Reducing lead time between send and receipt of parts/service
  • Reducing inventories throughout the supply chain
  • Reducing indirect transactions and costs
  • Reducing total supplier base
  • Simplifying flows to reduce risk(s)

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

replenishment tools
Replenishment tools
  • JIT – Just in Time
  • Kanban (Demand Flow)
  • Min/Max Stocking (Blanket Orders)
  • Safety Stock Provisions
  • VMI – Vendor Management Inventory
  • ATO – Assemble to Order
  • Outsourcing

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

replenishment success
Replenishment Success

Need

Send

Streamline!

Cost, Inventory

Quality, OTD %

Lead Time

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

supplier scorecards
Supplier Scorecards
  • Measure, analyze and improve
    • On time delivery
    • Quality, yields, and product returns
    • Lead times
    • Total cost of business
    • Flexible capacity and value add stream
    • Problem solving and resolution

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

enterprise supply chain it tools
Enterprise Supply Chain IT Tools
  • ERP
    • Sales and operations planning
    • Inventory, Financials
  • PLM
    • Drawings, Specifications, Bills of Material
  • MES
    • Work flow, control sequence
    • Data collection and measurement

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

manufacturing execution systems
Manufacturing Execution Systems
  • Known as “MES”
  • Translates design to process
  • Aligns with workplace and tools
  • Tie to factory automation
  • Used to capture/measure data
  • Assemble and analyze data

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

mes data measurements
MES Data Measurements
  • Cycle time
  • Work content (total work times)
  • Yields and quality data
  • Equipment status and alert
  • Can generate paretos
  • A tool for risk identification, mitigation

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

mes for tomorrow
MES For Tomorrow
  • An enabling enterprise tool
  • Is stand alone from ERP, or PLM
  • Can feed ERP (actuals, financials)
  • Can validate PLM (design effectiveness)
  • Can support customer audits

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

process discipline1
Process Discipline

Adjust

(PLM, MES, ERP)

Plan

(PLM, ERP)

Check

(MES, ERP)

Do

(ERP, MES)

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

tools metrics summary
Tools & Metrics Summary

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

supply chain overview1
Supply Chain Overview

Solution

Recipe

Customer

Needs

Incoming

Parts

(Service)

Post Sales

Support &

Service

Enterprise

Value Add

& Test

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

tomorrow s lean supply chain
Tomorrow’s Lean Supply Chain
  • Driven by effective sales and operations planning
  • Allows effective supply chain planning
  • Balances new and current products and services
  • Employs timely, effective replenishment
  • Enables timely success measurement
    • MES, ERP generate data/analysis/correction

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management

tomorrow s lean supply chain1
Tomorrow’s Lean Supply Chain
  • Questions?
  • tlortel@yahoo.com

NCMA World Congress 2006

:

Achieving High Performance in Global Business: Leadership, Outsourcing, & Risk Management