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1、1Corporate PresentationV2 03-2007Order Response TimeProduct AvailabilityLead TimeOrder ChangesDue Date PerformanceResource InvestmentAsset ProductivityInventorySupplier & Capacity ContractsLevel ofServiceCost ofServiceThe Business Challenges2Corporate PresentationV2 03-2007ComplexityVariabilityConfl
2、icting ObjectivesWhat are the characteristics of Supply Chan Management, why is it so hard to manage?3Corporate PresentationV2 03-2007ComplexityLead Times Limit FlexibilityLittle or No Predictability and Poor Product Mix?Chronic CapacityShortagesCurrent Processes and Structures Inhibit PerformanceIn
3、ventory Used to Cover ProblemsComplications in the Electronics IndustryComplexity in Component / Semiconductor ManufacturingMass customizationPersonalizationProduct mix effects on capacityMultiple optionsContracted vs. owned capacityCombined make-to-forecast and make-to-orderInverted BOMBinningMulti
4、-stage global production4Corporate PresentationV2 03-2007Uncertainty in the supply chain results in significant variabilityEarlyOn-timeLateEarlyOn-timeLateUnderForecastOverEarlyOn-timeLateCustomer DemandSupplier PerformanceManufacturingCustomer DeliveriesRawMaterialsFinishedGoodsPast PerformanceMark
5、et ResearchAnalytical TechniqueIncentive ProgramsResponsivenessTransportationLocationQualityProcess DesignProduct DesignCapacityQualityBy Tom Davis5Corporate PresentationV2 03-2007SupplyChannel OrdersActualLaunchReal ShortageReturns/CancellationsOver-SupplyChannel Fill and Phantom DemandTargetLaunch
6、End of LifeTrue End Customer DemandUnits Per PeriodTimeMultiple forecasts and unreliable fulfillment today create the bullwhip effect.6Corporate PresentationV2 03-2007Shortened product life cycle has increased the uncertainty.Ramp-upOngoingEnd of LifeRamp-upOngoingEnd of LifeRole of InventoryHighUsu
7、alLowCost of ShortageHighUsualLowCost of OverageLowUsualHighBy Professor Hau L. Lee, Stanford University7Corporate PresentationV2 03-2007VariabilityNaturalDemandMaterial supplyProductionDistributionSelf-IntroducedReplenishment strategiesPlanning processesInventory strategies8Corporate PresentationV2
8、 03-2007Traditional functional alignments continue to impede Supply Chain Performance. Misaligned Functional Goals & BehaviorsPurchasingManufacturingDistributionSales & Customer ServiceGoal:Behavior:Lowest purchase priceHighest utilizationLowest cost100% customer satisfactionnLong lead timesnHigh ra
9、w material inventory levelnLong run lengthsnInflexible schedulesnHigh WIP inventorynLong order fill timesnInflexible schedulesnHigh inventoriesnPromise flexibility 9Corporate PresentationV2 03-2007Conflicting Objectives - ManufacturingLittles Law Littles LawAssetUtilizationWIPINVCycleTimeVariability
10、ThroughputWIPCycle TimeVariability10Corporate PresentationV2 03-2007Conflicting Objectives - Customer Littles LawAssetUtilization WIPINVCycleTimeVariabilityOrder Response Time Early WarningsDue Date PerformanceFill Rates11Corporate PresentationV2 03-2007Conflicting Objectives - Corporate Littles LawAssetUtilization WIPINVCycleTimeVariabilityOrder Response Time Early WarningsDue Date PerformanceFill RatesMarket ShareProfitMarket Risk
