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Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration: Supplier Training Impacts in Real Time Ken Dozier Executive Director, WESRAC 11/9/2006

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Page 1: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

Connectivity and Super Supply Chains

Supplier Transformation ForumAccelerating Supply Chain Integration:Supplier Training Impacts in Real Time

Ken DozierExecutive Director, WESRAC

11/9/2006

Page 2: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

The Western Research Application Center

http://ttc.usc.edu/learningcenter/presentations.asp

Page 3: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

WIRED Project Department of Labor Workforce Innovation in Regional Economic Development initiative

"Innovation, education and entrepreneurship: those are the keys that will open the door to challenging and rewarding jobs."Governor Arnold Schwarzenegger, February 2, 2006

• Interface with industry/economic development academia to support/develop education/training resources

• Create sustainable innovation economic development model

• Identify candidate companies for projects

WESRAC is a funded-partner of WIRED

Page 4: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

Jack Welch, Former Chairmen General Electric

The Future

“When the Rate of Change Outside is Greater Than the Rate of Change Inside, The End Is In Sight”

Source: John F. Welch, Jr. Chairman / CEO General Electric’s 2000 Annual Report

Page 5: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

Source: Lon Hatamiya, Secretary - California Trade and Commerce Agency, South Bay Economic Development Partnership, “South Bay of Los Angeles County Workforce Perspective", October 2001

Velocity

“ According to Silicon Valley CEO’s, 60 % of the high-tech items they manufacture today did not exist 10 months ago”

Page 6: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

Truth Knowledge Belief

Universal

No Debate

Effect

Social

Converge on debate

Cause

Personal

Diverge on debate

Cause

Source: “Ten Philosophical Mistakes”, Mortimer J. Adler 1985

What is Knowledge ?

Page 7: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

Info-Tech

Nano-Tech

Bio-Tech

Technologies Change Fast

Source: SRI International 2002

Page 8: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

“where ... The ENIAC is equipped with 18,000 vacuum tubes and weighs 30 tons, computer in the the future may have only 1,000 vacuum tubes and weigh only 1.5 tons” - Popular Mechanics, 1949

“I predict the internet... Will go spectacularly supernova and in 1996 catastrophically collapse ” - Bob Metcalfe, 3COM founder and inventor, 1995

“This ‘Telephone’ has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us”

- Western Union, Internal memo, 1876

“The problem with television is that the people must sit and keep their eyes glued on a screen; The average American family hasn’t time for it” - New York Times, 1949

“There is no reason anyone would want a computer in their home”- Ken Olson, president and founder, Digital Equipment Corp., 1977

Anchor and Adjust

Source: “The Future is Ours” Communication of the ACM, March 2001

Page 9: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

Source: The world Competitiveness Yearbook IMD International 2005

3. Singapore

4. Iceland

5. Canada

6. Finland

7. Denmark

8. Switzerland

9. Australia

10.Luxembourg

Global Competition

1. USA

2. Hong Kong

Page 10: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

Demassification

Denationalization

Despacialization

Disintermediation

Disaggregation

Decentralization

Source: The Social Life of information, Brown & Duguild March 2000

6-D Dimensions of Global Commerce

Page 11: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

Source: Corporate Information Systems, Lynda Applegate, 1999

Make & Sell vs. Sense & Respond

Page 12: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

An increasing attribute of our knowledge age

Exponential Economy

Copyright SRI International 2002

Page 13: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

0 2

9 28 Copyright SRI International 2002

Possibility for creating N(2(N-1)-1) value

Computing Synergy

Page 14: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

Media Bandwidth

DSL/ Cable

IEEE 1394 / Firewire

Gigabit Ethernet

LASER / Fast Ethernet

10BaseT/CAT 5 Ethernet

Microwave

G2 Wireless

G3 / Wireless LAN

Async. Trans. Mode (ATM)

G1 Wireless

10Gig Ethernet

Vo

ice Inte

rnet

Acc

ess

Gam

ing

Fil

e sh

arin

g

Dig

ital

Mu

sic

NT

SC

Vid

eo

VH

S V

ideo M

PE

G V

ideo

DV

Vid

eo

HD

TV

Vid

eo

10^11

10^10

10^9

10^8

10^7

10^6

10^5

10^4

Ban

dw

idth

Req

uir

edB

its/

sec

(bp

s)120 Gbps 12X QDR InfiniBand 10^12

Page 15: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

High Performance Grid Computing

Page 16: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

What’s up?

• The United States initially was the world leader in broadband deployment.

• Now it has plunged to 19th place.

• While the United States is still first in absolute number of broadband lines, its lead will soon be overtaken by China.

Source: http://www.websiteoptimization.com/bw/0601, January 2006

Page 17: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

How Important is Broadband?

• The Brookings Institution estimated that America’s broadband decline could lead to a potential loss of $1 trillion in economic productivity over the next decade, as well as more than 1.2 million jobs that could be created by better broadband.

Source: The Brookings Institute 2004

Page 18: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

Europe is getting it

• City of Amsterdam announced a project to deploy FTTU throughout the city. http://www.lightreading.com/document.asp?doc_id=86384

• Paris, France, announced the goal of deploying FTTU throughout “all of Paris.” http://www.lightreading.com/document.asp?doc_id=86547

• The City of Vienna, Austria, announced plans for a citywide FTTU network that will provide residents 1 Gbps of symmetrical broadband capacity. http://www.heise.de/english/newsticker/news/68912

Page 19: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

How Important is Computing?

Walmart Perspective

• If you can understand your data, you can do predictive analysis.

• It’s an advantage if suppliers can link into Walmart’s systems and perform their own analyses using Walmarts’s complex tables- CTO Walmart (September 2006)

Source: HPC Wire, September 15th , 2006

Page 20: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

How Important is Computing?

Pratt & Whitney Perspective

• Building models on the computer is faster and lower-cost, and you can look at any level of detail.

• Digital models are the basis for innovation. • Suppliers also do modeling and simulation to speed

development and reduce costs.• We take a lot of time determining whether suppliers

can use these tools.- Chief engineer for systems analysis & aerodynamics, Pratt & Whitney

(September 2006)Source: HPC Wire, September 15th , 2006

Page 21: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

Adapted from OSC GraphicsCouncil and USC ISI Proprietary

Competitiveness Transformation Challenge

20

Nu

mb

er

of

Us

ers

Nu

mb

er

of

Ap

plic

atio

ns

1 4 64

National ProductivityOpportunity

Entry Level

HPCUsers Experienced

HPC “Heroes”

Nodes 1,000 10,000+

NICE:Moving Users Forward

NICE:Moving Users Forward

World Class Computing

GovernmentLaboratories &University HPC

Centers

Experienced Industry Users

NICE: Filling the Expertise Gap

NICE: Filling the Expertise Gap

Never

Ever

Users

Mid-Range Users

Page 22: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

Dynamic Systems

Common modes of behavior in dynamic systems

Source: System Dynamics, John Sterman, 2000

Page 23: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

Exponential Growth

• How thick do you think a paper folded in-half 42 times would be?

• How thick would it be after 100 folds?

Page 24: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

Exponential Growth

The Answers

• 42 folds = 440,000 Km (the distance from the earth to the moon.)

• 100 folds = 850 trillion times the distance from the earth to the sun!

Page 25: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

The Beer Game

Steady state at 4 cases per week.

Page 26: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

Connectivity

Page 27: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

The Beer Game - Not Sharing

The system after only a single change from 4 to 8 case.

Page 28: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

The Beer Game - Sharing

Knowledge sharing, reduces the damage of a simple change in the system.

Page 29: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

Findings

• Disruptions move up and down the supply chain. Creates a state of co-dependency.

• Knowledge sharing between members of the supply chain tend to suppress the damage created by unwanted oscillations.

• Grid computing can create a B2B trust environment that creates super supply chains.

Page 30: Western Research Application Center (WESRAC) Connectivity and Super Supply Chains Supplier Transformation Forum Accelerating Supply Chain Integration:

Western Research Application Center (WESRAC)

http://wesrac.usc.edu

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