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Sept. 26, 2013. EMPOWERING MOTOROLA SOLUTIONS’ SUPPLY CHAIN TRANSFORMATION. CHRIS ARMBRUSTER SENIOR DIRECTOR, BUSINESS TRANSFORMATION MOTOROLA SOLUTIONS KURT KLUSCH TRANSFORMATION MANAGER & PROCESS ARCHITECT MOTOROLA SOLUTIONS MIKE MORSCH SENIOR DIRECTOR, SUPPLY CHAIN SYSTEMS

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slide1

Sept. 26, 2013

EMPOWERING MOTOROLA SOLUTIONS’ SUPPLY CHAIN TRANSFORMATION

CHRIS ARMBRUSTERSENIOR DIRECTOR, BUSINESS TRANSFORMATIONMOTOROLA SOLUTIONSKURT KLUSCHTRANSFORMATION MANAGER & PROCESS ARCHITECTMOTOROLA SOLUTIONS

MIKE MORSCHSENIOR DIRECTOR, SUPPLY CHAIN SYSTEMS

MOTOROLA SOLUTIONS

slide2

83

CALL TO ACTION FOR

+

=

2011CHANGES

TRANSFORMATION

YEARS

MOTOROLA SOLUTIONS

Renamed Remaining Government & Enterprise

ALIGN PROCESSES & I.T. WITH

MORE FOCUSED BUSINESS

Spun Off Mobile Devices and Home

MOTOROLA MOBILITY

Divested Wireless Network Infrastructure

NOKIA SIEMENS NETWORKS

slide3

MOTOROLA SOLUTIONS

MISSION-CRITICAL COMMUNICATIONS FOR GOVERNMENT AND ENTERPRISE CUSTOMERS

2012 REVENUE: $8.7 BILLION

22,000 EMPLOYEES

MANUFACTURING IN 4 COUNTRIES

CUSTOMER

FOCUSED

VERTICALS

GOVERNMENT

MANUFACTURING & FIELD MOBILITY

TRANSPORTATION & LOGISTICS

RETAIL & HOSPITALITY

ENERGY &

UTILITIES

EDUCATION & HEALTHCARE

SOLUTIONS

DRIVEN

PRODUCT

+ APPS

+ SERVICES

TECHNOLOGY

LEADERS

GOVERNMENT

ENTERPRISE

NEXT GENERATION

PRIVATE

BB

iC&C

PCR

iDEN

ADC

SW

EMC

ASTRO

TETRA

RFID

ENC

our supply chain footprint
OUR SUPPLY CHAIN FOOTPRINT

3PL

3PL

3PL

3PL

3PL

3PL

3PL

3PL

MOTOROLA MANUFACTURING

MOTOROLA DISTRIBUTION

3RD PARTY DISTRIBUTION

2011 transformation begins
2011 - TRANSFORMATION BEGINS

INITIALSTATE

DESIREDSTATE

team structure is a critical success factor
TEAM STRUCTURE IS A CRITICAL SUCCESS FACTOR
  • GLOBAL PROCESS OWNERS
  • FUNCTIONAL TRACK LEADS
  • AMBASSADORS OF CHANGE
  • ALREADY KNOW WHO THESE PEOPLE ARE

LEADERSHIP

SUPERUSERS

TRADING

PARTNERS

PROCESS

PRACTITIONERS

  • SUPPLIERS, 3PLS & MFG PARTNERS
  • COLLABORATION OPPORTUNITIES
  • END USERS
  • KEY FOCUS OF CHANGE MANAGEMENT
slide9

INTERIM PROCESS

Create Forecast

Position & Level Demand

BLUEPRINT

Demand Planner

Plan Safety Stock

Collect Plan Inputs

A

Central Planner

CRSD Plan

ASCP

ASCP

APCC

APCC

IO

ASCP

ASCP

Run Plans

Validate Plans

Load Data Warehouse

SSD Plan

Resched. Plan

Rel. Planned Orders to IRs

Review CRSD- SSD Gaps

Rev. Resched. Exceptions

Implement New SSD

Review Delinquencies

Analyze Revenue

APCC

BLUE BOX

DC Planner

Adjust Sales Order Priorities

DEMANTRA

Review Total Site Demand

Review Exceptions

Rel. Planned Orders to IRs

Rel. Planned Orders to DJs

ASCP

ASCP

ASCP

ASCP

ASCP

ASCP

RP

PS

ASCP

ASCP

Production Plnr

Simulate Plans & Scenarios

Clear To Build

ApplyFair Share

Optimize Prod. Schedule

Review Exceptions

Manage

Shortages

Update Supply Commit

A

= ORACLE VCP LEVERAGE

Buyer

Rel. Planned Orders to DPO

slide13

OUR PLANNING JOURNEY

START

FINISH

CUSTOMER

CUSTOMER

SUPPLIERS

DEMAND

DISTRIBUTION

PRODUCT

PARTS

CENTRAL

PLANNING

MANUFACTURING

MANUFACTURING

DISTRIBUTION

SUPPLIERS

ASSEMBLY

slide14

THE SIZE OF CHANGE REQUIRES AN INTERIM PROCESS

CUSTOMER

SUPPLIERS

DEMAND

PRODUCT

LEGACY PROCESS TEMPORARILY COEXISTS WITH NEW PROCESS

CENTRAL

PARTS

PLANNING

MANUFACTURING

DISTRIBUTION

MANUFACTURING

ASSEMBLY

SUPPLIERS

slide15

OUR ASCP PLAN RUNS

MAKE-XFER

(SSD)

EXECUTION(CRD)

MATERIAL

(CRD)

BACKLOG

(CRD)

ATP(SSD)

SIGNAL TO LEGACY TOOLS

SIGNAL TO FACTORY

SIGNAL TO CUSTOMER

SIGNAL TO DISTRIBUTION

SIGNAL TO SUPPLIERS

UNCONSTRAINED

UNCONSTRAINED

CONSTRAINED

CONSTRAINED

CONSTRAINED

FIRST SSD FOR NEW S.O.

DIRECT BUY RELEASES & SHORTAGE MANAGEMENT

TRADING PARTNER COLLABORATION

SSD IMPROVEMENT

TRANSFER MFG TO DC

slide16

TECHNOLOGY

TRANSFORMATION

oracle modules
ORACLE MODULES

Advanced Planning

Command Center

  • Close the loop with embedded analytics
  • Integration with operational planning applications
  • Leverage pre-built dashboards
  • Standard content and KPIs

Global

Order Promising

Global

Order Promising

Order

Management

Trading Partner Collaboration

Oracle Production Scheduling

(Factory Scheduling)

Production Scheduling

Inventory

Optimization

Demantra

(Demand Mgmt)

Demantra

(Real-Time S&OP)

Inventory

Optimization

Advanced Supply Chain Planning (ASCP)

Rapid Planning

Alignment & Reporting Tool

  • Consensus Planning tool

“What If” Scenarios Analysis

Global Supply Planning Tool

Demand Configurator

Demand Positioning Tool

start regional erps legacy planning tools
START – REGIONAL ERPS & LEGACY PLANNING TOOLS

CUSTOMER FACING SYSTEMS

GLOBAL

ASIA

AMERICAS

EUROPE

(GOVERNMENT)

(GOVERNMENT)

(GOVERNMENT)

(ENTERPRISE)

ORACLE 11i

ORACLE 11i

SAP

ORACLE 11i

UNIQUE LEGACY PLANNING TOOLS

UNIQUE LEGACY PLANNING TOOLS

UNIQUE LEGACY PLANNING TOOLS

UNIQUE LEGACY PLANNING TOOLS

SUPPLIER FACING SYSTEMS

step 1 ebs core vcp applications for 1 sbu
STEP 1 – EBS & CORE VCP APPLICATIONS FOR 1 SBU

CUSTOMER FACING SYSTEMS

ASIA

AMERICAS

EUROPE

(GOVERNMENT)

(GOVERNMENT)

(GOVERNMENT)

TRILOGY

ORACLE R12

ORACLE 11i

ORACLE 11i

ORACLE 11i

UNIQUE LEGACY PLANNING TOOLS

UNIQUE LEGACY PLANNING TOOLS

VCP CORE

UNIQUE LEGACY PLANNING TOOLS

SUPPLIER FACING SYSTEMS

step 2 add asia and complete vcp footprint
STEP 2 – ADD ASIA AND COMPLETE VCP FOOTPRINT

CUSTOMER FACING SYSTEMS

AMERICAS

EUROPE

TRILOGY

(GOVERNMENT)

(GOVERNMENT)

ORACLE R12

DEMANTRA, ASCP, APCC, RP, IO, S&OP & PS

UNIQUE LEGACY PLANNING TOOLS

UNIQUE LEGACY PLANNING TOOLS

ORACLE 11i

ORACLE 11i

SUPPLIER FACING SYSTEMS

final step add europe and americas
FINAL STEP – ADD EUROPE AND AMERICAS

CUSTOMER FACING SYSTEMS

TRILOGY

ORACLE R12

DEMANTRA, ASCP, APCC, RP, IO, S&OP & PS

SUPPLIER FACING SYSTEMS

slide22

Demantra - LessonsLearned

  • Are you CTO (Configure to Order)?
  • CTO is tough because…
      • Not a flat structure in the tool like non-CTO
      • Unique table structures affect reports, views, processes and worksheet
      • Historical data conversions are difficult
  • Lessons:
    • Allow significant time for data conversion testing
    • Carefully think through your planning hierarchy
    • Utilize standard Oracle interfaces, workflows and data series with limited modifications

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slide23

ASCP Lessons learned

  • Understand that ASCP is a complex analytical application
  • Model Supply Planning based on Holistic advance planning capabilities
  • Decision rules tailored to focus on:
    • Reduction of Inventory
    • Improve productivity
    • Supplier and resource capacities
  • Must understand implications of changes in many factors:
    • Master Data, Delivery decisions, Make changes, Purchasing/procurement decisions
    • Sourcing Rules, Order management rules, Demand Classes, Order priorities, lead times, etc…
    • Constrained vs Unconstrained Plans

Well trained internal team

With qualified System

Integrator and Oracle

a must!

All must be considered

simultaneously to tune ASCP

PAGE 23

slide24

ASCP Plan Process – Global schedule challenge

Long plan run times limit work hours in a global environment

INITIAL PLAN RUN TIMES WERE 14 HOURS AND MORE, BUT

TUNING REDUCED TO 4 HOURS.

PAGE 24