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PLANNING,CONTROLLING ANDINTEGRATED SUPPLY CHAIN
From:-K.A. Asraar Ahmed
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WHAT IS TPM(TOTAL PRODUCTIVE
MAINTENANCE)?
MAX. FLEXIBILITY
ZERO WASTAGES
SMOOTH PROCESS FUNCTION.
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IT ALSO MANAGES
BREAKDOWN MAINTENANCE
PREVENTIVEMAINTENANCE
PREDICTIVE MAINTENANCE
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SIMPLIFICATION
REDUCE COMPLEXITY.
REDUCE NUMBER OF ACTIVITIES.
DECREASE POTENTIAL FOR ERRORS.
EX: TATA MOTORS.
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STANDARDIZATION
PRODUCTS BASED ON STANDARDS
VARIOUS STANDARDS USED ARE
American National Standards Institute(ANSI)International Organization for
Standardization(ISO)
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WHAT IS INTEGRATED SUPPLY
CHAIN?
Integrating relations between suppliers and
distributers to make effective supply chain.
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7
SUPPLY CHAIN INTEGRATION PUSH STRATEGIES
Classical manufacturing supply chain strategy
Manufacturing forecasts are long-range Orders from retailers warehouses
Longer response time to react to marketplace changes Unable to meet changing demand patterns
Supply chain inventory becomes obsolete as demand forcertain products disappears
Increased variability (Bullwhip effect) leading to: Large inventory safety stocks
Larger and more variably sized production batches
Unacceptable service levels
Inventory obsolescence
Inefficient use of production facilities (factories) How is demand determined? Peak? Average?
How is transportation capacity determined?
Examples: Auto industry, large appliances, others?
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SUPPLY CHAIN INTEGRATION PULL STRATEGIES
Production and distribution are demand-driven
Coordinated with true customer demand
None or little inventory held
Only in response to specific orders
Fast information flow mechanisms
Decreased lead times
Decreased retailer inventory
Decreased variability in the supply chain and especially atmanufacturers
Decreased manufacturer inventory More efficient use of resources
More difficult to take advantage of scale opportunities
Examples: Dell, Amazon
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CASE RELATED TO
ISC ON IBM
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IBM
Business area-computer technology and IT consultant
One of the major supply chain software consultant.
19,000 employees in 61 countries (200+ with Ph.D.s)
Responsible for USD$ 40 Billion of IBM cost and expense
Shipping 1 Billion kilograms of product annually
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ISC IN IBM
IBM at one point had 30 supply chains, one for
each of its business units, with each
considering the cost of doing business.
Today that delivers significant cost saving
competitive advantage and enterprise
alignment
ISC at IBM is an innovative, strategic business
unit
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ISC
IBM formed ISC in 2001-2002
Why ISC?
Inefficient traditional supply chain approach
Increasing customer expectations
IBM Goals:-
To maintain its position as a worlds largest ITprovider
To correct company level customer service.
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MAJOR ISSUES
Non suitability of traditional supply chain to
offer on demand service
Everyone must think in terms of total supplychain management, not just their individual
jobs.
Case facts:-
In 2002 IBM saved $5.3 bn
96% of transactions became hands free
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6 PRINCIPLES
Customer satisfaction and shareholder value
Competitive advantage
Superior end to end customer experiance Process simplification
Improving employee skills
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RESULTS OF ISC
Shorter
operating
cycle
Time savings
Expansion of
business
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