Michael Klemen März, 2004
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Transcript of Michael Klemen März, 2004
© 2004 The information contained herein is subject to change without notice
Überleben ist nicht genug…
The Anatomy of adaptive manufacturing
Neue Sourcing Modelle
„Predicting is hard, especially about the future„
Michael KlemenMärz, 2004
March 2004 2
20002000
The changing IT industry landscape
2003200320042004
Predicting is hard, especially about the future...
March 2004 3
A long way to go
March 2004 4
March 2004 5
An apartment building was built in a highly desirable area, and there
are people from all over the world that want to move in.
United States
Britain
France
Japan
March 2004 6
As they are moving in, the landlord realizes that each person has appliances with a different type of plug.
United States
Britain
France
Japan
March 2004 7
The landlord tried to solve the problem by installing standard outlets.
United States
Britain
France
Japan
March 2004 8
The tenants said “I don’t care what my landlord wants!”… and refused to use it because each had invested so much in
their appliances that they did not want to change.
United States
Britain
France
Japan
March 2004 9
Need For a Common Infrastructure
Apartment owners tried to solve the problem themselves by using an adapter for each of their appliances. This was
expensive and inflexible.
United States
Britain
France
Japan
March 2004 10
The Solution……. in 2002
Each apartment continues to use their appliances and someone else does the conversion for them.
United States
Britain
France
Japan
Any-to-any Conversion
Better -Better -
Long term adoption of standard industry wide interfaces.
Best -Best -
March 2004 11
Evolution Of Supply Chain Interoperability• True collaboration and interoperability are only possible after
communication and connectivity foundation has been established.
Fully integrated and collaborative business process
Value and Structure
Connect
ivit
y
XML enables computers and applications to be
connected
Simple Portals connect people to information
E-mail improves communications between
individuals
EDI moves simple data
Present
Future
March 2004 12
connectcollaboratecommunica
te
STATUS 2004 : DIE GESCHICHTE IST GUT...
ES HAT NICHT FUNKTIONIERT
March 2004 13
A long way to go
March 2004 14
EnterpriseIntegration
single
TradingCommunityIntegration
Value Collaboration
Network
# of Participantssingle multitude
Rela
tionsh
ipSta
tic
Dynam
icThe Vision: Value Collaboration Networks
•ERP, Planning, R&D
•Integration of the legacy applications
•Front-End/Back-End integration
•Customer Relationship Management
•Supply Chain Planning/Mgmnt.
•Collaborative Design
•Linkage with Supply Chain partners
•Trading Communities
•E-Procurement
•Dynamic Relationships with partners
•Recombinant Business Relationships
•Loose Internet Coupling
•E-Services driven
March 2004 15
SCM tendencies and trends in early 2004
March 2004 16
SRM - The Focus Shifts to the Ecosystem
1990My Enterprise• Integration• Inside• Hub• Dept. productivity 2003
My Trading Partners• Collaboration• Inside Out• Hub-and-spoke• SC integration 2010
My Ecosystem• Synchronization• Outside In• Peer-to-Peer• Ecosystem synergy
Source : Gartner Group 2003
March 2004 17
• Then− Business Logic was
managing manufacturing: build, store, sell
− Just in time− Just in sequence
• Now− Business Logic:
• supply side commodizitation• demand side customization
− Real time :• Wal-Mart captures precise information and lets P&G
figure out what to deliver to each store
Supply Chain - the biggest operational shift ever
RTE Supply Chain Processes
March 2004 18
A quick trip to the future: RFID
• Wal-Mart recently announced that it wants its top 100 suppliers, by 2005, to begin fitting their cases and pallets with radio-frequency-identification (RFID) tags—chips that can automatically transmit to a special scanner all of the information about a container’s contents or about individual products.
March 2004 19
Key components of the RFID process
Tag ReaderAntenna Middleware Supply chain execution
- Coiled antenna ofreader creates magnetic field with coiled antenna of tag- Waves turns into digital information
- Each item has a “tag” attached to it or embedded In it- Transmits identification data to a reader
-Transmit data tomiddleware- Associates tag info with product info
- Process information from reader- Filters data- Sends data tobackend servers
- Backend SCE or ERPsystems receives Information
Examples of SCE:- Updates inventory- Notifies shipment arrival- Triggers procurement
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Supply chain economics - the world today
March 2004 21
The Need for the Real Time Enterprise
March 2004 22
Change:from periodic to continous
Strategy :from monthly to rolling
Opportunity:from windows to keychains
Simultaneous Decision SupportAcross Multiple Enterprises
Point-to-Point Integration Today’s cycle timeToday’s cycle time
RTERTE
Extended Supply Chain Synchronization Latency
60 Days in 2002
Seconds
Increasingly Synchronized Supply Chain
RTE: Beyond Optimization to Synchronization Of the Extended Supply Chain
30 Days in 2004
14 Days in 2006
7 Days in 2008 3 Days in 2010
Sameday in 2012
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GG SCM HYPE CYCLE 2003
March 2004 24
GG MQ for Sourcing in Discrete Manufacturing
March 2004 25
GG MQ Solutions for SCM in Discrete Manufacturing
March 2004 26
GG SRM Growth suggestions 2003-2007
SRM Software Components Forecast (Millions of Dollars)
New License Revenue
2002
2003 2007
Growth (Percent)
2,238 2,028 2,44
-17 -9
2004
2,046
1
2005
2,114
3
CAGR (%) 2003 - 2007
2006
2,258
3 8
Source: Gartner Dataquest (September 2003)
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SRM Areas - User adoption 2004-2007
Source : Gartner Group Sept 2003
March 2004 28
Demand Chain Management: SCM/CRM Functional Convergence
• Key Intersection Points− Promotion Management− Integrated Demand Management− Configurator/CTP− Order Fulfillment− Pricing/revenue optimization− Service Process Management
SCM
Supplier Facing
Customer Facing
Convergence
DCMDemandProducts/
Capacities
Source : Gartner Group 2003
CRM
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Align PLM with Supply Chain Processes
Product Specs. part data lead time “As Built” BOM New product Specs.
Product Data Flow Product Information Repository
Design RetireProduceSell /
Grow /Service
SpecifyPLM Purpose
Product Related Processes
SCM Processes
Describe / negotiate part and service needs
Define logistics of fulfillment
Fulfill parts and service
CAD modelseBOMS mBOMs, formulas
pricing
Product Configs,Technical specs.
Dynamic Interchange
ServiceSource Plan Make Fulfill
Source : Gartner Group 2003
March 2004 30
Align engineering-centric and operations-centric processes
PlanPhase out
Ramp up Produce
Forecast ERP II Supported Processes
Product-Related Processes
lead time
“As Built” BOM
New product Specs.
Product Data Flow
Design RetireProduceSell /
Grow /Service
SpecifyPLM Purpose
CAD models
mBOMs
Routings
Product Configs,
Bills of Material
Drawings
Config. Rules Special Orders
FD&T
Materials, Resource, and Process Planning
Validate Quality, Process, and costs
Produce products, manage inventories
Dynamic Interchange
Product Information Repository
ECNs
Costs
Source : Gartner Group 2003
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Down to Earth in 2004
March 2004 32
2004 - down to Earth - the practical implementation
Production Planning Logistics Optimization
Supply Chain Planning
ProductionScheduling
ProductionScheduling
DistributionScheduling
DistributionScheduling
Forecasts
Orders & Call-offs
Supply Chain Strategy
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Networked Strategic Sourcing
Multi-Enterprise SCM Capabilities Store
Transactional
Executional
Strategic
Operational
Tactical
AnalyticalSell Make Buy Move
Knowledge Repository
Seller Workbench
Buyer Workbench
Supply Chain Visibility — Monitoring and Alerts – multi-modal, Multienterprise TMS
Multiorganization Supply Chain Measurement
Collaborative Demand Planning and
Replenishment
Collaborative Supplier Planning and
Replenishment
Trend Analysis
Network Design
Source : Gartner Group 2003
March 2004 34
McKinsey Survey Germany 2003
• Survey results reveal some of the chief differences between the best-performing companies and the laggards :
• Broadly, the logistics costs of the high performers were about 25 percent lower, and they moved goods out of inventory about four times faster.
• On the service side, they had better quality ratings, as well as delivery times that were almost half those of the laggards.
March 2004 35
SAP PRTM Survey Germany 2003
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Customer CentricityEven excellence in products & the related buying/order fulfillment will not be sufficient to attract & retain customers in the long run
CollaborationFaster time-to-market for new product development & order fulfillment is driving the need to collaborate with demand & supply partners
Product/ServicesHybridsComplementing excellent products with superior value-adding services will make the difference
MAXIMUMCUSTOMER
VALUE
How Companies Interact withTheir CustomersHow
Companies Fulfill Their Promises
How CompaniesDifferentiateTheir Offerings
Supply Chain Business Strategy Three Pillar's for Success
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Automotive SCM example
High Tech SCM example
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Customer DealerFleet Car Rental
Wholesalers
DEM
AN
D P
LAN
NIN
G
DEM
AN
D A
ND
SU
PPLY
MA
TC
HIN
G
MANUFACTURING
Product
Definition
Market
Offering
Wholesale Stock
Replenishment
Orders
Stock
Inventory
Dealer
Sales
Analysis
Delivery
Model
Center Allocation
Capacity
Planning Operating
Plan
Material
Forecast
Constraints
Management
Procurement
Material
Mgmt
Material
releasing
Build
Production
LLP
Late
Configuration
Added Value
Services
2nd Hand
Car Refur-
bishmen
OUTBOUND
LOGISTICS
Configure
Order
Processing
Sales
Scheduling
Order Bank
Mfg
Scheduling
Order Bank
Marketing
Analysis
Stock
Inventory
Dealer
Sales
Analysis
Delivery
Model
Center
Lead
Management
CRM / ATP
LLP
Consolidation
Warehouse
Added Value
Services
Line Side
Inventory
Magmt
INBOUND LOGISTICS
AD
APTIV
E IT
CovisintPrivate
MPTier 1 Tier 2 Tier 3
Hot Automotive areas today:• Customer Relationship Mangement and Available to promise
• Demand Planning
• Demand and Supply Matching
• Inbound Logistics
• Manufacturing
• Outbound Logistic
• Adaptive IT
Marketplaces
Portals
Moving to RTE - Automotive Industry example
March 2004 39
RTE Automotive Supply Chain
March 2004 40
RTE Automotive SCM/CRM
March 2004 41
Volkswagen Today
March 2004 42
Volkswagen Today - SCM is big -
• Online negotiations 22,000 suppliers participated at various times
− > 3,190 online negotiations conducted − > 36 billion Euro turnover in volume (during
contractual period) negotiated (as at Jun 5, 2003) − Capacity Management (eCap)
> 200 suppliers integrated, among those 60 already migrated to the new eCAP/3 release
− 4,000 critical parts identified(as at Jun 18, 2003)
• AMES-T 385 VW suppliers with processual conformity are active
− 287 of them already implemented "controlled pick up" procedure together with Volkswagen AG plant Wolfsburg, and an additional group of 93 suppliers will start controlled pick up procedure on 18 August 2003
− Audi AG (plants Ingolstadt and Neckarsulm) will start controlled pick up procedure together with 271 suppliers on 15 September 2003
− 14 plants of VW Group implemented the process (Volkswagen, Volkswagen Nutzfahrzeuge, Audi, Skoda)
− 10 VW local hauliers are integrated(as at Aug 8, 2003)
March 2004 43
Volkswagen Today - SCM is big -
• Online catalog631 suppliers linked globally
− 1.076.737 articles in global catalog − 10.896 internal users − 2.695 cost centers integrated − 269.730 transactions − 85.858.102 € volume ordered
(as at May 31, 2003)
• Online Inquiries (ESL)> 5,500 suppliers linked
− > 730,000 inquiries processed
(as at Aug 28, 2003)
March 2004 44
DC x Today - SCM is big
March 2004 45
HP and our supply chains
• HP more than 100 million consumer customers today
• We touch 45 million consumers every month • In 2003 alone:
− HP sold 53 million products to consumers — not including supplies. (That means that a consumer buys an HP product more than once a second)
− HP has shelf space in 110,000 retail outlets in 176 countries around the world, in addition to the company's store.
− In the last 12 months alone, we've sold 43 million printers — more than one of every two printers sold in the world
− We've sold 8 million PCs − Every day more than 167 million pictures are taken using
an HP camera
March 2004 46
Commercial Enterprise
Home
TraditionalRetail
GlobalLargeMediumSmallSOHO
VARs CRs
Distributor/ Wholesaler
CHANNEL DISTRIBUTION MODEL
Commercial Business Support
PDE / PSDE
Consumer Business Support
HP
ESV
Consumer
HP IPG go to market
March 2004 47
HP IPG SC Operations:
Key chain supply chain collaboration
eHub
source
design logistics
forecast
procurement
inventory
BU
BU
BU
BU
logisticsproviders
tier 2suppliers
tier 1suppliers
CM
internal external
March 2004 48
Enterprise Integration Services
Auction
InventoryCollaboration
Buy/Sell
Sourcing
On line Inventory
Information &Analytics
Order & Forecast
Collaboration
Buy/Sell
e-Sourcing, Auctions & Disposition
outsourcedEDI hub
outsourcedxml hub
keychainwebservers
OutsourcedEDI hub
OutsourcedXML hub
KeyChainwebservers
hps (PeopleSoft)
SAP (r/3, apo)
other (Legacy)
Nexus (Baan)
HP Entities
web browser onlytrading partners
e-Service provider(s)
Leverages HP’sintegration backbone
Leverages HP’sintegration backbone
ERP-neutralERP-neutral
B2B + web browser
trading partners
B2B onlytrading partners
EDI + web browser
trading partners
Trading PartnersMultiple
“on ramps”
Multiple“on ramps”
Web browser onlytrading Partners
EDI + web browser
trading partners
B2B + web browser
trading partners
B2B onlytrading partners
XML
HPS (PeopleSoft)
SAP (R/3,APO)
Other (Legacy)
Nexus (Baan)
InventoryCollaboration/
DynamicRepl
HP IPG IT Architecture
March 2004 49
HP IPG SC Operations: Business Landscape
Region: EMEA
Segments: Commercial & Consumer Hardware, Supplies
Products: - 15 Product-Lines- 3500 SKUs, 7500 components
Manufacturing/ - 7 Manufacturing/Product Completion Sites
Product Completion: - 57 Production/Product Completion Lines- 3 Regional Warehouses
- Build to Stock, Build to Order, Dock Localiza
Shipment Volume : - 85 Million Inkjet-Cartridges/year- 20 Million Toner-Cartridges/year- 15 Million Consumer products/year- 4 Million Commercial products/year
Trucks : - 200 trucks per day
Revenue : - 8 Billion USD
March 2004 50
Supply Chain concept
aspects 2004
March 2004 51
Supplier relationships - conceptual components
• Supplier relationships a comprehensive process through:− Engineering function − Sourcing− Procurement− Payment
of product life cycle management.
Source : Gartner Group Sept 2003
March 2004 52
Supplier relationships - conceptual components• Product life cycle management (PLM)
− Collaborative design − White boarding − Bill of material development − Part directories
• Sourcing (strategic sourcing) − Strategy development − Spend analysis − Supply and market discovery − Requisition specification and negotiation − Bid analysis − Award and contract
• Procurement and purchasing − Master blanket release − Receipt and ASN − Order management
Source : Gartner Group Sept 2003
March 2004 53
Supplier relationships - conceptual components• Contract management
− Invoice variance − Document management − Compliance management − Collaborative contract development
• Financials − Project accounting − Accounts payable − General ledger − Encumbrance − Compliance − Reporting
• Maintenance and asset management − Work orders, bill of material and fleet management − Inventory management/tool cribs
• Marketplaces − Web services
Source : Gartner Group Sept 2003
March 2004 54
Firms Will Improve Processes At 3 Levels
Levelof
investment
Benefits
• Better visibilityinto shared processesMonitor
• Joint decision-making andprocess synchronizationManage
• Hands-free decision-making &automated resource allocationOptimize
March 2004 55
Keyfactor Trust
Competence
Confidence
Integrity Commitment Transparency
Congruency•Fit between •perception & reality•No hidden agendas
Dependability•Predictability•Certainty
Consistency•Fairness•Sense of equality•Objective
Mutuality•Win- win•Shared benefit•Reciprocity
Trusting Relationship
March 2004 56
A long way to go
but think about…
March 2004 57
Adaptive Enterprise
The ultimate state of fitness: Business and IT synchronized to
capitalize on change
Business
Information technology
March 2004 58
HP Adaptive Enterprise Design Principles
integration
simplification
standardization
modularity
• Reduce number of elements• Eliminate customization• Automate change
• Use standard technologies and interfaces
• Adopt common enterprise architecture• Implement standard processes
• Break down monolithic structures
• Create reusable components • Implement logical architectures
• Link business and IT • Connect applications and business
processes within and outside the enterprise
+
+
+
Applied consistently across:• Business processes• Applications• Infrastructure
March 2004 59
Measure and assess business agility
Profile Examine IT strengths, weaknesses and overall ability
to enable business agility
Prioritize Identify critical priorities for agility impact and investment optimization based on client priorities
Prescribe Recommend adaptive IT approaches and investments that address the critical priorities
range
time
ease
Assess IT’s ability to respond to business change
The level of effort, cost, and risk required to introduce and support change
The breadth of change the company is able to handle
The length of time it takes to make a change
March 2004 60
HP’s Darwin Reference ArchitectureElements of an adaptive architecture
InfrastructureInfrastructure services
Virtualized resourcesVirtualization
Sourcing Sharing Pooling
Resources
Clients PrintersServers Storage Network ContentEnvironment
Gridservices
Webservices
Securityservices
Registryservices …
MA
NA
GE &
CO
NTR
OL
asse
ss, advise
, act
MEA
SU
RE &
ASS
ESS
tim
e, ra
ng
e,
ease
ARCHITECT & INTEGRATE
ERP CRMCollaboration Publishing…
Applications
Suppliers Employees CustomersEXTEND & LINK
Business processesAutomated intelligent management
Dynamic resource optimization
Continuous secure operation
March 2004 61
The path to an adaptive enterprise
1. Measure, assess and maintain a dynamic link between business and IT
2. Architect and integrate heterogeneous IT environments
3. Manage and control business processes, applications and the IT environment
4. Extend and link business processes and applications horizontally – from suppliers through to customers
5. Delivers business and technology innovation for today and tomorrow
Business
Information technology
It’s the ultimate state of fitness in a world where every business decision triggers an IT event.
March 2004 62
Food for thought
March 2004 63
Food for thought – Supply Chain Management
NEUGIERIG SEIN !
March 2004 64
Food for thought
NEUGIERIG SEIN !
March 2004 65
Thank You
questions ?