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