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Creating Supply Chain Flexibility

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Modern trends can sometimes degrade value chain performance, but these unintentional side-effects can often be countered by creating flexible supply chains. Integrated strategies, lean operations, visibility, collaboration and big data style analytics are presented by Chris Armbruster as key drivers for recovering lost performance and ultimately achieving an organization's full operating potential. The presentation concludes with a compelling case study of a semiconductor manufacturer's supply chain transformation. Whether you are a supply chain leader, strategist, demand planner, supply planner, inventory controller, lean practitioner, logistics professional, data scientist or provider of IT capability, this presentation brings together all of these disciplines to create breakthrough supply chain flexibility. – PowerPoint PPT presentation

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Title: Creating Supply Chain Flexibility


1
Driving Supply Chain Flexibility
Creating Supply Chain Flexibility Chris
Armbruster mail_at_chrisarmbruster.com
_at_CAArmbruster 224.430.2046
2
SUPPLY CHAIN
TRENDS REQUIRE
FLEXIBILITY
  • Modern supply chain trends can introduce
    inefficiencies
  • Additional trading partners increase latency
  • Global supply chains increase complexity
  • Redundant judgments exacerbate demand uncertainty

3
WASTE
Is NeverTolerated
4
THE CHOICE IS OURS
or
5
  • The quest for certainty blocks the search for
    meaning. Uncertainty is the very condition to
    impel man to unfold his powers.
  • --Erich Fromm

UNCERTAINTY
Its the Driving Force Behind Flexibility
6
It is commonly known that signals degrade as
demand propagates up the supply chain.
Ultimate Customer
Foundry
Chip Maker
EMS
  • DEMAND UNCERTAINTY
  • It Can Be Measured and Mitigated

7
Ultimate Customer
Chip Maker
Foundry
EMS
Net Effect
Amplification
Interference
Latency



Uncertain Demand
Changes in demand can become exaggerated.
Noise can superimpose onto the demand signal.
Demand can become out of phase or shift in time.
8
Visibility and CollaborationImprove the Demand
Signal
FLEXIBILITY
Must Do the Rest
9
SPEED


Make FlexibleSupply Chains
10
BUSINESS INTELLIGENCE
Potential Waiting To Be Tapped
  • Notwithstanding its fickle nature, uncertainty
    can be understood, characterized, bounded and
    modeled.
  • The data exists, but must be mined for meaningful
    information.
  • Business intelligence is a key input to
    developing a relevant fulfillment strategy.

11
SPEED
It Is All About Aligning Windows
12
Strategy
STRATEGY
Start with the customer, of course.
13
CASE STUDY
Semiconductor Manufacturer
14
SUPPLY CHAIN
Package Assembly Test
Wafer Fabrication
Circuit Assembly
Weeks
Hours
Days
15
Helps Manage Uncertainty
BUSINESS INTELLIGENCE
Error
Error
16
Works Hand-in-Hand with Visibility Collaboration
-Error
Error
Visibility Collaboration
Flexibility
FLEXIBILITY
Error
17
DEMAND PROFILING
In this case, customers are somewhat certain
about their demand over a quarter, but beyond the
current week they are not sure when in the
quarter it will materialize.
Demand Certainty
Probability
18
Certainty Window
Time(Weeks)
Y4
Y3
Y2
Y1
Y0
Speed Aligns Windows
19
FAST PLANNING LOGISTICSCOMPLIMENT LEAN
FACTORIES
24 Hour Planning Cycle
JIT Fulfillment Delivery
20
SUPPLY CHAIN
FLEXIBILITY STRATEGY
Customer RequirementsFlexibility,
Responsiveness, Security
Business IntelligenceDemand Profiling Leading
Indicators
SpeedLean Manufacturing Logistics
Supply Chain Architecture Insource Assembly
Test Outsource Wafer Fabrication
21
Integrated Strategy Delivers
Build to Forecast
Automation and eBusiness
Super Fast Cycle Times
48 Hour 3PL Partnership
Multiple MfgLocations
JIT
Receipt of Customer Order
Order ProcessandPlanning
Wafer Fab
Buffers for Flexibility, Response andSecurity
Package Assembly and Test
Pick and Pack
Ship
Product on Customer Dock
Buffers for Flexibility, Response andSecurity
Buffers for Flexibility, Response and Security
LeanMfg
Demand Collaboration
Supply Collaboration
DailyPlanning
MAXIMUM PERFORMANCE
22
BENEFITS REALIZED
100
10
Shipping Performance to Customer Request Date
Inventory Velocity (Turns)
90
9.5
80
9
70
8.5
60
8
Shipping Performance
Inventory Turns
50
7.5
40
7
30
6.5
20
6
10
5.5
0
5
Year 1
Year 4
Year 2
Year 3
23
Organizations fall short of their potential by
accident, but they become world-class on
purpose.
Chris Armbruster mail_at_chrisarmbruster.com
_at_CAArmbruster www.chrisarmbruster.com
224.430.2046
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