intel group7 marketing
DESCRIPTION
TRANSCRIPT
Intel
Deepinder Singh - 12020841074
Tushar Limaje - 12020841051
Advait Bhobe – 12020841116
Pranesh Shrestha - 12020841150
Abhigya Srivastava - 12020841061
Amanjot Babrah - 12020841064
Binal Kanabar - 12020841129
Rounak Vasandani - 12020841071
Group 7
Wafer manufacturing-supply chain
Planning Production Packaging Warehousing Delivery
Material Movement
Intel’s overall supply chain in brief: • Manufactures Multiple generations of process technology • Manufacturing Network : 16 factories -11 fabrication facilities and 5 assembly/test factories • 30 Global Warehouses • Ships 1 million PC units per day • 750,000 orders per year
Challenges and Impacts
Other Industry and Market driven supply chain challenges: • New and shifting market conditions • Expanding product offerings • Shrinking product life cycles • Emerging New Regulations
Transforming Intel’s supply chain
• Intel’s IT plays a key role in transforming and maintaining Intel’s supply chain to meet these challenges.
• Just Say Yes Program (2005 – 2007)
• Just Say Yes Program (2008 – 2010)
• Specific IT-Enabled Supply chain solutions 2011 and beyond
I. Intel IT role • Developing a centralized workflow data system to manage CPU
and chipset product planning data with much improved data-quality monitoring capability.
• Re-engineering the overall planning and other processes: mid-range and tactical demand forecasting, production planning schedule, order fulfilment and warehousing logistics.
• Re-engineering large amounts of data and data flows.
• Consolidating the data related to customers, suppliers, locations and products into a centrally managed master data systems.
• Consolidating many legacy systems across all business functional areas into a more efficient ERP system.
II. Just Say Yes Program (2005–2007)
• Goal: To Improve the business processes based on real customer needs
• Feedback by Customers: Dissatisfaction with the order fulfilment process - A typical response to changing an order could take up to 1.5 weeks
• Response: Just Say Yes program
Implementation of Just say Yes
Focus on Four elements: • Improve Intel’s ability to respond quickly and positively to change order requests • Reduce errors in demand forecasting • Reduce inventory levels • Respond to customers within 24 hours with a committed dock date (CDD)
III. Just Say Yes Program (2008–2010)
The success of the Just Say Yes program from 2005 to 2007 led to a continued focus on improving more customer responsiveness through several other new initiatives mentioned as follows: • Improving “internal efficiency” of processes • Reducing the time between when a customer places an order and when the product is received, known as the “order horizon” • Replacing manual processes with “automated processes”
Improving internal efficiency by
• Re-alignment of legacy planning processes to use actual orders in the system, combined with demand forecasts, as the primary signal to build product
Realigning
• Redefinition of the supply planning process, eliminating or redesigning 15 of the 21 steps. Redefining
• Streamlining of the decision making process, the cycle time and ownership.
Re-engineering
Improving Internal Efficiency
Reducing Order Horizon
• Intel IT analytics helped to identify that three-quarters of all customer change requests occur in the last four weeks prior to the shipment.
• Asking customers to book orders several months prior to their need and then managing these orders through the multiple change requests.
• Pilot Project for the same held in 2007 and 2008:
Shortened the order horizon
High responsiveness to the initial orders
40% reduction in the change order requests
Increase responsiveness through Automation
Vendor-managed inventory (VMI) hubs which are located near large customers provides a better inventory management and faster product shipment. Dynamic VMI
Increase responsiveness
Reliability of Order fulfillment
Reduces Inventory
Customer satisfaction
Contd…
Improvement on Supply chain responsiveness:
• Low-touch, automated response to customer forecast changes
Supply Targets
• Supply planners can respond more precisely to support business goals when supply or demand varies
Supply Planers
• Supply planners can recommend the use of inventory to support current or near-term customer forecast needs, while not using up inventory or builds that are already committed
Inventory Management
IV. Specific Intel IT-Enabled Supply Chain Solutions: 2011 and Beyond
• Adoption of standard ERP system
• Transition from customized ERP applications to a single ERP platform which shows the following results
Customized ERP
• Gap between standard and demand
• Support costs
Standard ERP
• Forecasting
• Planning
• Procurement
Result
• 260% increase in capacity
• 90% Cost reduction
• 40% servers reduction
Contd…
ERP system has provided the foundation for improvements:
• Better inventory management using simulation and modelling • A more dynamic and automated order management system • A more efficient supply chain that is cross-organizational and automated • Optimized transportation
Supply Chain Evolution
Results Business velocity:
• Improved by 50% the time it takes to start the new process, including 25% in the supplier build times & 95% reduction in orders.
• There is 65% shorter order-fulfillment lead time through automated allocation management & booking.
Business responsiveness:
•There is 50% faster order to delivery time through the use of VMI Hub, supporting the Hub business processes & information visibility through IT businesses solutions.
•300% faster response to customers orders & change request
through integrates ERP & automation of various processes in order
to manage the business.
Contd…
Business Efficiency:
•32% reduction in the inventory through automation VMI hub.
•21% in the production CPU units produced per head count.
•16% increased in CPU units produced per dollar head.
Benefits
Implementation of agile and adaptable IT solutions that can be used across multiple supply chains to address the emerging modern supply chain problems like:
• Increasing portfolio of products
• Emerging markets
• Environmental sustainability
• Infrastructure
• Regulations
Conclusion
• Intel IT plays a key role in maintaining and transforming Intel’s supply chain to meet market challenges.
• Some measurable effects are as follows:
– 3x-increase in responsiveness to customers
– 16-21% increase in productivity
– 32% reduction in inventory
– 50% faster order-to-delivery
– 65% reduction in order-fulfilment lead times
– Decrease in the time by half to ramp up a new manufacturing process
Thank You