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IBM Global Procurement
© 2003 IBM Corporation© 2005 IBM Corporation
Joseph J. LisowskiDirector, Electronic TechnologyGlobal Procurement Engineering
September - 2005
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© 2005 IBM Corporation 2IBM Global Procurement
Integrated Supply Chain
System & Technology Challenges
Increasing Technology Challenges
Power, Thermal Constraints, Size, Performance
Increased Cost Challenges
Improved Time To Market with Increased System Releases
Responsiveness to Market
Significant Reliance on Supply Chain and Suppliers
Expectations Include No Reductions in Quality & Reliability
Introduction of RoHS Compliant Systems
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© 2005 IBM Corporation 3IBM Global Procurement
Integrated Supply Chain
Why Change Organization ?
End to End Ownership
Complete Technology Ownership and Alignment with Development
Complete Ownership of Manufacturing Execution
Responsive due to Reduced/Simplified Reporting Structure
Enhanced Utilization of Resources
Improved Alignment of technology resources
Increased Reliance/Utilization of Worldwide Strucuture
Drive Best Practices Across Technology/Manufacturing Base
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© 2005 IBM Corporation 4IBM Global Procurement
Integrated Supply Chain
ISC Engineering Consolidation
Procurement Engineering
ManufacturingEngineering
RSSEngineering
ISC Engineering
Solid Line Worldwide Reporting Structure - Belarus, Canada, China, Czech Republic, France, Germany, Hong Kong, Hungary, Ireland, Italy, Japan, Korea, Malaysia, Mexico, Scotland, Singapore, Taiwan, US
Internal Card MfgEngineering
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© 2005 IBM Corporation 5IBM Global Procurement
Integrated Supply Chain
Vice President,ISC Engineering
Robert (Bob) Cancilla
Tony Andres
Manager,RSS Engineering
Director, High Performance
Systems Engineering
Bill Farrell
BCS/BTO/E&TS - Ishrat Husain
STSM/Chief Architect - Ivory Knipfer
Director, Quality Interface and
Refurbishing
Bob Kulle
Director, Electronic
Technology/Commodity
Joe Lisowski
Manager, Software and General
Services
Carol Logan
Manager, ISC Engineering
Operations and Strategy
John Maresca
Manager, Mfg Engineering Strategy
and Xccelerator
Craig Martens
Director, High Volume Systems
Engineering
John McAlpin
Director, pOWER Based Systems
Engineering
Mark Morizio
Manager, HDD Qualification and
Integration
Eric Townsend
DE/Mgr, Interconnect Technology J. MayerleDE - K. Pearsall
Manager, EC and Release Data
Management
Keith Gore
TRPM - Ed Jollie
TRPM - Kim Thorton
(z, HEp, Storage)
(xSeries, PCD Assurance) (iSeries, pSeries)
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© 2005 IBM Corporation 6IBM Global Procurement
Integrated Supply Chain
D irec torE lectro n ics Technology
J. L isow ski
K itty P earsall
D is t. Engineer
Power Engineering
RO CH
S . S trand
Electron ic Com ponents
EF
Lisow sk i (A )
Supplier Packaging Dev.
BTV
K . W aiteJ . M ayerle
D E , In te rco n n ec t Tech
R O C H
R . C rite lli - PO KC . D ishm an - R TPB.S teenburgh - R O C H
S .O gg ion i
S upplier Packag ing D ev. -
Ita ly
H . S ag a
Supp lier Packaging Dev. -
Japan
S C Lim
Procurem ent G MAP Product Eng.
H ong Kong
RoHS Com plianceRTP
J. A dam s
W . G logow skiV . G iancaspro
R . D iM arcoB . B ornste in
E . K lineJ. D om an
B . S teenburgh
C . D ishm anR . C rite li
A . Yosh im ura
H . S hiom a
H . Ikeda
A . Zhu - C hina
J.. W ong - H ong K ong
C . W a ng - C h ina
" I m p r o v e t h e e f f i c i e n c y f o r s u p p l i e r m a n a g e m e n t a n d i m p r o v e u t i l i z a t i o n o f o u r s u p p l i e r s t o d e l i v e r i n t e g r a t e d t e c h n o l o g y s o l u t i o n s . "
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© 2005 IBM Corporation 7IBM Global Procurement
Integrated Supply Chain
Global Procurement's Mission
Supply AssuranceDeliver correct quantities of goods
or services at the right global location at the time specifiedThru supply chain
Supply AssuranceDeliver correct quantities of goods
or services at the right global location at the time specifiedThru supply chain
QualityEnsure goods or services provided
meet required quality standards and/or customer expectations
End to End
QualityEnsure goods or services provided
meet required quality standards and/or customer expectations
End to End
CostAchieve lowest overall cost
for goods or services being procured
End to End
CostAchieve lowest overall cost
for goods or services being procured
End to End
GovernanceGovernancePolicies / ControlsPolicies / Controls
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© 2005 IBM Corporation 8IBM Global Procurement
Integrated Supply Chain
Advantages to our Suppliers
Integrated End to End Technology Resources
Components, Packaging Technology, Materials, Boards, ECAT Processes
Increased Availability or Research Resources
Extensive Worldwide network of expertise
Share Best Practices Across Technology/Manufacturing Base
Extend additional resources at supplier Development/Mfg sites
Real time responsiveness to design/development & Mfg activities
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© 2005 IBM Corporation 9IBM Global Procurement
Integrated Supply Chain
Expectations for our Suppliers
Continue to Support Technology Requirements
Value Add Engineering Designs and Services
Technology and Cost Management
Customer Shippable 1st Pass Designs
Maximized Supplier Support Structures
Responsive, On-site Support, Early Engagement
Meet Quality and Reliability Requirements
Best of Breed Supply Chain Management & Process Controls
Traceability and Support (Mfg/Field Issues, Responsive/Complete FA)
Drive Cost Reduction Opportunities & Meet Supply Commitments
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© 2005 IBM Corporation 10IBM Global Procurement
Integrated Supply Chain
Supplier 2005 Goals
02On Targetp Series99.1%99%35
12Mixedi Series
99%
99%
99%
FY Goal
SPQL
0
2
0
1H05
Field: Warranty
99.4%5 12MixedStorage
5
1
FY Goal
Stopships
97.8%
99.7%
1H05
3
1
FY Goal
Field: Impact Metric
2
0
1H05
Mixedx Series
Mixedz Series
2005 OutlookBrand
02On Targetp Series99.1%99%35
12Mixedi Series
99%
99%
99%
FY Goal
SPQL
0
2
0
1H05
Field: Warranty
99.4%5 12MixedStorage
5
1
FY Goal
Stopships
97.8%
99.7%
1H05
3
1
FY Goal
Field: Impact Metric
2
0
1H05
Mixedx Series
Mixedz Series
2005 OutlookBrand
Key Supplier Quality Indicator 2005 Goal1) Field: Customer Impact Metric - Drive Towards 0
- No Sev 5 Issues2) Field: Warranty Repair Actions - Avg 10% - 30% Improvement3) Stopships - No Sev 4/5 Stops
- Flat Year-to-Year4) SPQL - Flat Year-to-Year
Key Goal: Eliminate IBM Customer Impacts Due to Supplier Performance
2005 YTD Performance:
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© 2005 IBM Corporation 11IBM Global Procurement
Integrated Supply Chain
European Union Restriction of the use of Hazardous Substances
Directive, published in EU Journal 13 February 2003.
July 1, 2006.EU Member States : RoHS Directive China: ( May be later than July 1) “ Management Methods require manufacturers to restrict the use of the same substances targeted by Europe in certain electronic products.Japan: The Law Concerning the Examination and Regulation of Manufacture etc. of Chemical Substances (1973 Law No. 117, last Amended July 2002) prohibits certain substances from products.
January 2007Mexico and Canada: Joining in on WEEE firstUnited States: California, Massachusetts, New York and Maine are developing similar laws
Quality, cost, schedule guide effort.All parts and products to meet quality per CI -105Goal to achieve cost parity for RoHS compliant parts.Conversions targeted for 2005 to avoid GATE/Scrap Drive using JIG and Industry Standards
LATEST NEWSEU has finally published the long awaited "guidance" on WEEE and
RoHS.
Enforcement still Open
RoHS Directive Overview
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© 2005 IBM Corporation 12IBM Global Procurement
Integrated Supply Chain
Thank You