Driving Supply Chain Flexibility .

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Driving Supply Chain Flexibility. Chris Armbruster Director Supply Chain Strategy Agere Systems. Waste Not Tolerated. Our Choice. or. “The quest for certainty blocks the search for meaning. Uncertainty is the very condition to impel man to unfold his powers.” --Erich Fromm.
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Driving Supply Chain Flexibility Chris Armbruster Director Supply Chain Strategy Agere Systems

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Waste Not Tolerated

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Our Choice or

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"The mission for sureness hinders the hunt down importance. Vulnerability is the very condition to actuate man to unfurl his forces." - Erich Fromm It\'s additionally the main impetus behind adaptability.

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Foundry Chip Maker EMS Ult. Client Phenomenon 1 (Latency) Phenomenon 2 (Amplification) Phenomenon 3 (Interference) Net Effect Uncertain Demand + = Demand can get to be out of stage or move in time. Changes sought after can get to be misrepresented. Clamor can superimpose onto the request flag. Arrangement = Visibility & Collaboration Flexibility Can\'t Do It All

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Intelligence Speed Strategy + = Flexibility

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The information exists, yet should be dug for significant data. Business Intelligence Notwithstanding its flighty nature, vulnerability can be comprehended, described, limited and demonstrated. Key contribution to building up a significant satisfaction methodology.

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Certainty Window Time Risk Execution Window Speed of information extends sureness window Speed of operations therapists execution window Speed All About Aligning Windows

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Customer Requirements Identify Key Flexibility Points Where to cradle stock & limit (& the amount) Where to concentrate on speed, how frequently to arrange & how to trigger execution What to insource & what to outsource Business Intelligence Strategy Speed Product & Supply Chain Architecture Process & System Blueprint Strategy

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Agere\'s Approach to Flexibility

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About Agere $1.8B FY03 Revenue No. 1 in chips for hard circle drives No. 1 in chips for wired correspondences No. 1 in 802.11b chips for PCs Top ten clients: Apple, Cisco, HP, Lucent, Maxtor, NEC, Nokia, Samsung, Seagate, Western Digital Employees: 6,800 Regional Offices: Allentown, PA Santa Clara, CA Assembly & Test Sites: Bangkok, Thailand & Singapore Ascot, UK Hong Kong, China

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About Our Supply Chain Package Assembly & Test Wafer Fabrication Circuit Assembly 4-10 Wks 2 Days Hours

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Market Error Forecasts are frequently in view of questionable markets. Proliferation Error As request engenders up the production network, the request flag corrupts . Utilizing Business Intelligence To Manage Uncertainty + Error - Error Visibility & Collaboration Flexibility

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Short Horizon Volatility How certain request is over a short skyline Finished products stock approach Downsides Long Horizon Volatility How certain request is over a long skyline Semi-completed stock arrangement Upsides Profiling Uncertain Demand Certainty Probability Our clients are to some degree sure about their request over a quarter, yet past the present week they are not certain when in the quarter it will appear.

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Speed Lean Manufacturing Package Assembly & Test Cycle Time Shrink Execution Window for Package Assembly & Test Operations to Fit Inside Certainty Window Certainty Window Time (Weeks)

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Order Fulfillment & Delivery More Than Just Fast Manufacturing 24 Hour Planning Cycle

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Key Flexibility Point is just before Package Assembly & Test Statistically measure and find cushions Align Package Assembly & Test execution time w/Certainty Window Strategy Process & System Blueprint Daily Planning Custom Built APS Agere\'s Flexibility Strategy Customer Requirements Flexibility Responsiveness Security Business Intelligence Demand Profiling Leading Indicators Speed Lean Manufacturing Logistics Supply Chain Architecture Insource Assembly & Test Outsource Wafer Fabrication

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Lean Manufacturing Supports Multiple Manufacturing Locations FedEx Partnership Automation and eBusiness Build to Forecast Super Fast Cycle Times JIT Receipt of Customer Order Process and Planning Wafer Fab Buffers for Flexibility, Response and Security Package Assembly and Test Pick and Pack Ship Product on Customer Dock Buffers for Flexibility, Response and Security Buffers for Flexibility, Response and Security Demand Collaboration Supply Collaboration Daily Planning Statistically Profiled

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This Stuff Really Works 100% 10 Shipping Performance to Customer Request Date 90% 9.5 Inventory Velocity (Turns) 80% 9 70% 8.5 60% 8 Shipping Performance Inventory Turns half 7.5 40% 7 30% 6.5 20% 6 10% 5.5 0% 5 2001 2002 2003

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Thank You

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