intel group7 marketing
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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
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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
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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
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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
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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.
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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
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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)
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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”
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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
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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
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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
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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
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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
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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
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Supply Chain Evolution
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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.
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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.
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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
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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
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Thank You