Transcript CHAPTER 9 Coordinated Product and Supply Chain Design

CHAPTER 9
Coordinated Product and
Supply Chain Design
Yoon Jong-Kwan
May .29 .07
HP case
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The DeskJet printer
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1988 Introduced
HP’s most successful product
A level of over 600,000 units in 1990 ($400M)
Inventory Problem
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HP’s distribution centers had been filled with
pallets of the DeskJet printer
The organization of in Europe that inventory
levels to be raised further to maintain
satisfactory product availability
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Two main issues
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To find the best way to satisfy customer
needs in terms of product availability
while minimizing inventory
How to get agreement among the
various parties that they had the right
level of inventory
THE VANCOUVER DIVISION AND
ITS QUEST FOR ZERO INVENTORY
VCD mission “To become the recognized world
leader in low cost premium quality printers for
printed communications by business personal
computer users in offices and homes
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HP consolidated personal printer activities from
four
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divisions to the Vancouver site.
Inkjet (1979) JIT: 8-12 weeks lead time and 3.5
months inventory reduced to 0.9 month inventory
and 90min production Time
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Deskjet (1988) Parallel Processes: PCAT and FAT
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PCAT(printed circuit board assembly and
test)
Ex : ROM, 회로판 프린트헤드 드라이버판
여러 전자 부품을 조립하고 테스트
FAT(final assembly and test)
Ex : 모터, 케이블, 키패드, PCAT로부터 조립된
회로판 등 최종적인 프린트를 조립하여 테스트
하는 과정
THE DESKJET SUPPLY CHAIN
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The Vancouver supply chain
Supplier
IC Mfg
US DC
Customer
Customer
Customer
Supplier
PCAT
FAT
European
DC
Supplier
Print
Mech Mfg
Supplier
Far East
DC
THE DISTRIBUTION PROCESS
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Localization
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Assembling the appropriate power supply
module
Power cord terminator (plug)
Packaging with the working printer and a
manual written in the appropriate language
Products were sorted into three groups
destined for the three distribution centers
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North America
Europe
Asia-Pacific
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Three major sources of uncertainty
that could affect the supply chain
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Delivery of incoming materials
Internal process
Demand
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The major performance measures for a
typical DC
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Line item fill rate (LIFR)
Order fill rate (OFR)
Four process steps
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Receive products from various suppliers and
stock
Pick the various products needed to fill a
customer order
Shrink-wrap the complete order and label
Ship the order by the appropriate carrier
THE INVENTORY AND SERVICE CRISIS
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The magnitude of forecast errors were especially
alarming in Europe
One issue : the choice of inventory carrying cost
to be used in safety stock analyses
SOME SAMPLE DESKJET DEMAND DATA :
EUROPE
What next issue?
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물류를 위한 설계(DFL)가 어떻게 물류비용을 통제하
고 더 효율적인 공급체인을 만드는데 사용될 수 있을
까?
지연된 차별화(delayed differentiation)는 무엇이고
어떻게 hp가 문제를 해결하기 위해 지연된 차별화를
이용할 수 있나? 지연된 차별화의 이점은 어떻게 정
량화 할 수 있는가?
공급자들이 새로운 제품 개발 과정에 언제 참여 할 것
인가?
대량고객화(mass customization)? 효과적인 대량고
객화 전략의 개발에서 관리자는 공급체인에서 무슨
역할을 담당하는가?
Design for Logistics 1
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Economic packing and transportation
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More compactly, so cheaper to transport
( cube out, not weigh out )
ex) Ikea furniture – assembled at home
Rubbermaid – create them to stack & save
Less storage space & stack easily
- decrease the handling cost & rent
Recently trend
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Final packaging delayed
Repackaging (cross-docking)
Design for Logistics 2
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Concurrent and Parallel Processing (1)
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Modifying the manufacturing process for solving
the long manufacturing lead time problem
involves modifying the mfg. process so that
steps that were previously performed in a
sequence can be completed at the same time
Effect
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Reduce mfg. Lead time
Lower inventory costs through improved forecasting
Reduce safety stock requirement
Design for Logistics 3
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Concurrent and Parallel Processing (2)
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Modularity or decoupling
 A key to keeping the mfg. Process parallel
•
Ex) concurrent processing
Europe
Board
Europe
Board
Asia
Housing
Customers(Europe)
Printer
Serial processing
Customers(Europe)
Printer
Parallel processing
Design for Logistics 4
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Standardization
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Part standardization
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Common parts reduce required part inventories due to risk
pooling and reduce part costs due to economics of scale
Process standardization
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Postponement
Delayed product differentiation
ex) 9-5
Before redesign
Testing
PCB inserted
After redesign
Testing
Generic PCB PCB inserted
End
product
End
product
Benetton
Ex : 9-5
Spin or purchase yarn
Dye yarn
Finish yarn
Manufacture garment
parts
Join parts
Benetton new process
Ex : 9-5
Spin or purchase yarn
Manufacture garment
parts
Join parts
Dye garment
Finish garment
PUSH & PULL
postponed
Design for Logistics 5
Product standardization
 A large variety of products may be offered, but only a
few kept in inventory
 Procurement standardization
 Standardizing processing equipment and approaches
even when the product itself is not standardized
Selecting a Standardization Strategy
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Process
Modular
Nonmodular
Process
Part
standardization standardization
Product
Procurement
Nonmodular
standardization standardization
Modular
Process
Design for Logistics 6
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Important Considerations
Frequently, it may not be possible or cost
effective to implement DFL strategies in the
context of a particular product or supply chain
The expenses may not compensate for the
savings
 Resequencing will cause the level of inventory
in many cases to go down, but the value of
inventory being held will be higher per item.
 Tariffs and duties
SUPPLIER INTEGRATION INTO NEW
PRODUCT DEVELOPMENT 1
Firms often realize tremendous benefits from
involving suppliers in the design process
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Decline in purchased material costs
Increase in purchased material quality
Decline in development time, cost and in mfg. cost
Increase in final product technology levels
The spectrum of supplier integration
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None – supplier is not involved
White Box – integration’s level is informal
Grey Box – formal
Black Box – supplier independently designs
SUPPLIER INTEGRATION INTO NEW
PRODUCT DEVELOPMENT 2
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Keys to effective supplier integration
The capability to participate in the design process
The willingness to participate in the design
process, including the ability to reach
agreements on intellectual property and
confidentiality issues
The ability to commit sufficient personnel and
time to the process
Sufficient resources to commit
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Bookshelf
Gain supplier’s knowledge with other customers
Mass Customization 1
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What is mass customization?
Craft production + Mass production
Mass customization involves the delivery
of a wide variety of customized goods or
services quickly and efficiently at low
cost
Take the advantages of both the mass
production and craft production
Mass Customization 2
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Making Mass customization work
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Components
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Highly skilled and autonomous workers, processes,
and modular units
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Dynamic network
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Key attributes of modules
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Instantaneous – very quickly
Costless
Seamless – invisible to the customer
Frictionless – little overhead
Example 9-9
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Dell
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고객의 주문이 들어올 때 까지 pc를 조립하지 않는다
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고객들을 인터넷을 통해 요구사항을 기입 그러면 델은 컴퓨터를 고객의 요구에 맞춰서 조립
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인터넷에서 고객이 주문한 컴퓨터는 델 컴퓨터의 공급체인 통제시스템과 연계
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이를 통해 제조의 정확성과 배송의 신속성 달성 재고와 재고비용의 줄이는 대신 델 컴퓨터공급자들은
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델 공장근처에 위치, 델과 공급자 사이에 JIT 기초한 부품 공급 네트워크 형성
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그러므로 고객이 원할 때 빠르고 정확하게 고객들에게 제공
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3COM과 같은 네트워크 전문업체와 손잡고 공급자 파트너 쉽을 형성 새로운 컴퓨터 및
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네트워크 장비를 개발 연기개념을 활용
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연기를 통한 대량고객화의 성공
컴퓨터의 최종 주문입력은 고객 주문 시 이뤄짐