NCMA World Congress 2006

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(No Transcript)
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Tomorrows Lean Supply Chain
Breakout Session 1810 Tim Ortel, CPCM,
Materials Manager, Silicon Microstructures Date
12 April 2006 Time 225 PM
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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

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Supply Chain Overview
Solution Recipe
Customer Needs
Incoming Parts (Service)
Enterprise Value Add Test
Post Sales Support Service
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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

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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)

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Process Discipline
Plan
Adjust
Do
Check
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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

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Product Life Cycle Planning
Volume Production
Trade Offs Capacity Lead Times Inventory Cost
structure Infrastructure
New Product Introduction
End of Life
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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

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Desirable leadership up trends
After
On time delivery Revenues Profits Quality
(good/total) Linearity (actual/plan)
Before
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These are good down trends

• Late Shipments
• Part defects
• Indirect cost s
• Total of suppliers

• Customer returns
• Lead times
• Inventory s
• Variance s

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Desirable Leadership down trends
Before
After
Late shipments Customer returns Lead
times Inventory Indirect cost
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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

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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

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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)

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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

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Replenishment Success
Need
Send
Streamline!
Cost, Inventory
Quality, OTD
Lead Time
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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

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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

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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

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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

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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

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Process Discipline
Plan (PLM, ERP)
Adjust (PLM, MES, ERP)
Do (ERP, MES)
Check (MES, ERP)
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Tools Metrics Summary
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Supply Chain Overview
Solution Recipe
Customer Needs
Incoming Parts (Service)
Enterprise Value Add Test
Post Sales Support Service
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Tomorrows 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

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Tomorrows Lean Supply Chain

• Questions?
• tlortel_at_yahoo.com