View
41
Download
0
Category
Preview:
DESCRIPTION
The Introduction of Lean Manufacturing Concepts at Qualcomm. Introduction: Agenda. The Value Chain Lean Concepts Benefits of Lean Manufacturing 2 Oracle Instances The QCT instance The Quantum instance Why 2 instances? Separation of Production and Non-Prod Procurement - PowerPoint PPT Presentation
Citation preview
The Introduction of Lean Manufacturing Concepts at Qualcomm
2
Introduction: Agenda
The Value Chain
Lean Concepts
Benefits of Lean Manufacturing
2 Oracle Instances
The QCT instance
The Quantum instance
Why 2 instances?
Separation of Production and Non-Prod Procurement
2007 Implementation Sites
3
The Value Chain
Value Chain Processes
MarketProducts /Services
SellProducts /Services
Plan /Manufacture
Distribution / Service
& Support
ProcureMaterials /Services
Generate Demand Fulfill Demand
Develop-IntroduceProducts /Services
The Quantum value chain is driven by Qualcomm’s leadership position as the developer of CDMA technologies. QCT CDMA technologies accounts for 90-95% of QSCO demand, principally FFA’s and SURFS (test equipment used to test chip quality and functionality). The remaining 5-10% of QSCO demand is generated by QWBS (Qualcomm Wireless Business Solutions), which manufactures OmniVision and other wireless products.
4
Lean Concepts: The 5S System
Japanese Meaning Translation
Seiri Organization Sort
Seiton Orderliness Set-in-Order
Seiso Cleanliness Shine
Seiketsu Standardized Cleanup Standardize
Shitsuke Discipline Sustain
5
Lean Concepts
T O :
Inconsistent InventoryInconsistent Inventory Kanbans, Min/Max and Safety Stock Demand TriggersKanbans, Min/Max and Safety Stock Demand Triggers
Disconnected ForecastsDisconnected Forecasts Intelligent ForecastsIntelligent Forecasts
Inconsistent Signal to PartnerInconsistent Signal to Partner Defined Signal to CM PartnerDefined Signal to CM Partner
Complex ProcessesComplex Processes Radical SimplificationRadical Simplification
F R O M :
Predominately “Push”Predominately “Push” “Pull” from the Partner“Pull” from the Partner
6
Benefits of Lean Manufacturing
Reduced inventory across the supply chain
Greater predictability around lead times and on-time shipments
Increased reliability the right product at the right time at the right price
Better customer satisfaction due to greater accuracy in forecast delivery
Better data, robust processes and systems management effectiveness
Increase control over quality, defects and root cause of defects (6Sigma)
Optimize operations between existing QSCO and “shelter” organization
Better manage throughput with new Contract Manufacturing partner
Position Qualcomm for rapid growth in emerging business and markets
7
2 Oracle instances: The QCT Instance
Qualcomm
SAT OrganizationsFAB Suppliers
PO for DIE items
Service PO for FG items
3B
2_C
-I messa
ge
from
FAB
3B
2_C
-O m
essa
ge
to S
AT
4B
2 m
essa
ge
from
SA
T
QCT instance has two application servers: 11.5.8 and 11.5.9 (lot controlled)
Quantum instance is an Oracle 11.5.10 instance, with min. customizations
Each organization “owns” its own inventory; common inventory items
QSCO (manufacturing) has no P&L, and will liquidate costs to other BU’s
QCT Instance
8
2 Oracle instances: The Quantum Instance
9
Why two instances?
The QCT instance is geared to Qualcomm’s chip manufacturing business, is heavily customized, and uses “lot control” and other features that are not attractive to the Qualcomm discrete manufacturing businesses
The QCT instance uses two application servers, one Oracle 11.5.8 and the other, an Oracle 11.5.9 instance, primarily to support Oracle’s Advanced Supply Chain Planning (ASCP) engine
The QCT instance does not include project accounting, nor does it make allowance for international rollout
There is continuing discussion in the press about “spinning off” the chip business
10
Separation of Prod & Non-Prod Procurement
Direct and NPI
Shelter and Bldg M
Indirect and Services
Corp Procure
11
SD1
SD2
Quantum Implementation Sites
Actual sites, 2007 rollout
QMT Taiwan
San Diego
Tijuana, MexicoQMT San Jose
India(3)
China(3)Japan(2)
Korea(2)
UK(5)
EU (DE, ES, FR, IT, NE, SE) (6)
Mexico(6)
Israel(1)
Australia (2)
Argentina (1)
Brazil (1)
Canada (1)
Potential sites, 2008 + global rollout
Indonesia (1)
Russia (2)
Singapore (1)
South Africa (1)
Taiwan (3)
Vietnam(1)
12
Lean Manufacturing: Agenda
Inventory Orgs Structure
ASCP Overview
Forecasts and Sales Order Drive Demand
Business Processes
SCO (Supply Chain Organization) Procurement
Shelter Manufacturing and CM Procurement
NPI Procurement
Quality and RTS Highlights
The concept of a “Virtual MRB”
Lean Manufacturing “to be” Model
Conclusion
13
Qualcomm Inventory Orgs Structure
QFT OU QMT OU975-980
QC US BUSINESS GROUP
QC US SET OF BOOKS
QWBS OU QWS OU QGOV OUQSCO OU
QWBS SAN DIEGO QWS QGOV
QSCO SD1
QSCO MEX
QWBS REPAIR SAN DIEGO
QWBS REPAIR N.CAROLINA
Inventory Org Structure for US Entities
INVENTORY
QCT OU
QCT
RPR FG
RPR IP
RPR STAGE
MRB
RTS
OFFSITE
STAGE
INVENTORY
MRB
RTS
OFFSITE
STAGE
INVENTORY
MRB
OFFSITE
STAGE
WFR
INVENTORY
SCCA2__Velociti, Inc. (Barstow) SCCA4__Sacramento Valley Ford Trucks SCCA5__Connect Wireless Solutions SCCO1__Thermo King of Denver SCCT1__Freightliner of Southern Connecticut
SCGA1__Cetacea Sound of Atlanta SCIL1__Illinois Auto Central Thermo King SCIL2__Truck Centers, Inc.
SCFL1__Select Communications SCIN2__Stoops Freightliner SCIN1__Great Lakes Thermo King
SCKS1__Velociti, Inc. (Kansas City)
050-099 225-249100-124001-049 125-149
050
054
052
001
002
100 125
QWS REPAIR
RPR FG
RPR STAGE
RPR IP
101
RESERVEDQGOV REPAIR126
QWBS REPAIR MEXICO
RPR IP
053
ITEM MASTER000
RPR COMP
RPR IP
RPR FG
RPR STAGE
Last Updated: 12/12/2006 7:32 PM
RPR FG
RPR STAGE
RPR IP
RPR INV
STAGE
BU: 00300-QSCO
PO: 100000000 PO: 200000000 PO: 300000000 PO: 400000000
BU: 00002-OMNI
BU: 00007-QWS
BU: 00005-QGOV
PO: 500000000
BU: 00003 - QCT 00009 - QCTST
NL
N R
N R
NL
R
RPR INV
R
N
NL R
N
R
NL N R
N R
R
NL R
NL N R
N R
NL R
R
N R
BLDG M
BLDG MX M
BLDG MX M
BLDG CAR A
BLDG AK
BLDG AK BLDG M
BLDG M
BLDG W
BLDG M
BLDG M
QUALCOMM Legal Entity
- Division 01 -
RCPT: 4000001
RCPT: 1000001
RCPT: 2000001
RCPT: 3000001
RCPT: 1000001
RCPT: 4000001
RCPT: 5000001
RCPT: 2000001
RCPT: 1000001
RCPT: 2000001
RCPT: 1000001 RCPT: 1000001
RTS
DROPSHIP NL
CUSTEVAL
HOLDS
DROPSHIP NL
QSCO QCT006 BLDG WRCPT: 6000001
QFT950
PO: 3100000000
950-974
BU: 00257-QFT
RCPT: 1000001
QMT 975
PO: 5100000000
BU: 00247-QMT
RCPT: 1000001
NL R
INVENTORY N
INVENTORY
MRB
OFFSITE
WFR
N
WIP NL
SOI NL
INVENTORY
MRB
OFFSITE
WFR
N
WIP NL
SOI NL
MRB
OFFSITE
WFR
WIP NL
SERVICE CENTERS055
= Item Validation Org (Allows different buyer per item per inv org)
001-049 = Inventory Org Codes
= Item Master Org (Houses all items found within Oracle)
= Reservable= Nettable
BU: 00001-CORP
RCPT: 1000001
NL
N
R
= Not Locator Controlled= Business Unit Number-Name= Receipt Sequence (7 digits)
PO: 1XXXXXXXX
LEGEND
= Default Backflush Subinventory
= PO Sequence (9-10 digits: 100000001, 1100000001, 2100000001)
MRB
RTS
QCT REPAIR226
RPR FG
RPR STAGE
RPR IP
NL R
R
BLDG MRCPT: 2000001
STAGE NL N R
CORP OU
PO: 900000000
275-299
BU: 00001 - CORP 00017 - INVC 00018 - QPROJ 00092 - MFT 00008 - QPAG 00016 - QCCU 00167 - QCDT 00195 - QCSEC 00204 - QGBD 00106 - QCWK
RCPT: 1000001
CORP275
INVENTORY N R
MRB
RTS
STAGE NL N R
SOI MRB
RTS
N
N
N
RTS
NL
SOI MRB NL
REPAIR COS
REPAIR COS
REPAIR NPI
MUI
PO: 2100000000
BU: 00099-MUI
RCPT: 1000001
925225
INVENTORY N R
OFFSITE
RTS
MRB
WFR
INVENTORY N R
OFFSITE
RTS
MRB
WFR
INVENTORY N R
OFFSITE
RTS
MRB
WFR
SCMN1__Thermo King Sales & Service SCNC1__Carolina Engine
SCOH1__P.J.'s - Fabricating, Inc. SCOK1__Central States Thermo King
SCOR1__Thermo King Northwest
SCNE1__Thermo King Christensen
SCPA1__Thermo King of Philadelphia
SCTX1__Thermo King of Dallas SCUT1__Thermo King Intermountain SCVA1__Radio Communications of VA / MOBEX
SCTN1__Cetecea Sound of Memphis
SCMI2__Wolverine Freightliner
RPR FG
RPR STAGE
RPR IP
NL R
R
CORP REPAIR276RCPT: 2000001
RPR FG
RPR STAGE
RPR IP
NL R
R
QMT REPAIR976RCPT: 2000001
ERROR
GSTAR DEV
GSTAR RSVD
N
N
SOI
R
NNL
R
RR
R
RRR
STAGE N RSTAGE N R
NL
OFFSITE
WFR
NLNL
R
QAPP OU
QAPP
175-182
PO: 600000000
BU: 00004 - QAPP
BLDG __RCPT: 1000001175
QGST OU
QGST
183-190
PO: 700000000
BU: 00166 - QGST
BLDG __RCPT: 1000001183
MUI OU925-949
QWI OU
QWI
191-199
PO: 800000000
BU: 00011 - QWI
BLDG __RCPT: 1000001191
QTL OU
QTL
200-224
BU: 00013 - TECH
BLDG __200
Snaptrack Legal Entity
- Division 33 -
QSERV OU
QSERV
900-909
PO: 1100000000
BU: 00010 - QSERV
BLDG __RCPT: 1000001900
MediaFLO USA Legal Entity
- Division 82 -
QC Flarion Legal Entity
- Division 77 -
QC MEMS Legal Entity
- Division 74 -
QC International Legal Entity
- Division 04 -
QCINT OU
QCINT
910-924
BU: 00283 - QCINT
BLDG __910
QC Global Trading Legal Entity
- Division 25 -
QGTC OU
QGTC
981-985
PO: 4100000000
BU: 00060 - QGTC
BLDG __RCPT: 1000001981
QCT Asia Pacific Legal Entity
- Division 31 -
QCTAP OU
QCTAP
986-990
PO: 6100000000
BU: 00014 - QCTAP
BLDG __RCPT: 1000001986
QWBSS Legal Entity
- Division 11 -
QWBSS OU
QWBSS
875-899
BU: 00152 - QWBSS
BLDG __875
QMT Cayman Islands Legal Entity
- Division 76 -
QMTCI OU
QMTCI
850-875
BU: 00250 - QMTCI
BLDG __850
QMT TWN 977
RCPT: 1000001INVENTORY N R
OFFSITE
RTS
MRB NL
WFR
STAGE
QMT SJC 979
RCPT: 1000001INVENTORY N R
OFFSITE
RTS
MRB NL
WFR
STAGE
RPR FG
RPR STAGE
RPR IP
NL R
R
NL
NL
QMT TWN REPAIR978RCPT: 2000001
R
R
NL N R
N RNL
R
FGSTOCK
STAGE
N
N R
RR
STAGE N RNL
NL
RTS R
R
R
STAGE N RNL
DEPOT INV N RNLDEPOT WIP NNL
PROTO NNLDEBUG NL
QWS MEX102
HOLD N
OFFSITE
FGI-PSTK N R
RPR-INCMNG
RPR PSTK R
INVENTORY
MRB
STAGE NL N R
N R
RTS R
FGSTOCK N
INACTIVE N R
INACTIVE N R
14
ASCP Overview
Generate Baseline Forecast
Oracle Modules:
ODP ASCP CollaborativePlanning
iSupplierPortal
OrderManagement
In addition, DBI may be used for KPI / Metric reporting
Collaborative DemandPlanning
Generate ConsensusForecast
Capture Inventory Visibility
Collaborate withContract Manufacturer
Generate ConstrainedLong Term Supply Plan
Generate Short TermManufacturing Plan
Release Work Ordersto Contract Manufacturer
Release Purchase Ordersto Component Vendor(s)
Check Availability& Capacity (ATP)
• Demand driven by forecasts and Sales Orders (depending on OU)
• As Demand drops into the Planners Workbench, Planners route “make” orders to MES (“Shop Floor Control”), material requirements are identified, and PO’s are created and transmitted to Suppliers via EDI (Harbinger)
• Entire production procurement process is automated, end-to-end
15
Forecasts Drive Demand into QSCOQC US BUSINESS GROUP
QC US SET OF BOOKS
QSCO OU
MFG SAN DIEGO – SDI001
Business Group
Set of Books
Legal Entity
001-049
ITEM MASTER000
QC LEGAL ENTITY
MFG END TO END PROCESSQCT
MFG MEXICO002
QCT006
Supplier
Customer
Production material received from supplier
Production POs
Sales OrderShipments
Manual MOs
Demand
Manual MOs
Demand
Manual MOs
Demand
Supp
ly
Prod
uctio
n PO
s
QCT OU
QCT225
225-249
Suba
ssem
bly
Supp
ly
SubassyDem
Forecast/SO Demand
Projects
Issue to Projects
• Forecasts or SO’s created in QCT, MUI, QMT OU
• Demand is placed against QSCO OU, 3 inventory orgs
• PO’s are generated and sent via EDI to suppliers
16
Adjustments to Plan made with
Arrow
Forecasts entered via spreadsheetReleases
against Blanket PO (EDI 850)
Sales Orders Drive
Demand
Forecast (EDI 830)
Includes VMI, SOI, “toll
manufacture”
17
Sales Orders Drive Demand
Run ASCP Engine
SIM versus REGEN Run
PO’s using EDI 850
Forecast using EDI 830
18
ICG Process: Item is
“Planning Enabled”
PO’s marked with an “-NPI”
19
Oracle Configuration: Item Master (1 of 2)
Defines period for which
releases created
Create Supply to Match Demand
Indicates an “Active Item”
20
Oracle Configuration: ASCP Engine (2 of 2)
ASCP Plan is not Constrained
EnforcedDemand Drives
the Planning Engine
21
Quality and RTS Design Highlights
Uses standard Oracle hooks from Procurement to Quality
8 Quality Collection Plans developed for each “state” an NC’ed item may take
Handles RTS for both Production and Ancillary Items
Covers all RTS scenarios: Credit Outside Rework SOI (Supplier Owned Inventory) Legacy Receipts
Utilizes standard Quantum shipping process (custom, integration with RTS)
Leverages standard Oracle WO/PO process to capture all relevant inventory consumption, item conversions, labor charges and other variances
Improves A/P debit memo process using the AP Open Invoices API for automatic debit memo creation
22
Automated
QUALCOMM “Virtual” MRB Process
RepairVendor
DispositionSub (SQE)
Scrap
Factory
Part is not salvageableand is scrapped.
NC part is sent tooutsourced repair
facility
Supplier
MRBSub
RTS/RTV( Credit/ SOI)
Factory receives part, and after inspection (“reject”),transfers NC part to MRB Inventory.
Scrap
OSP
Material Receipt into MRB Inventory
RTS Process: Create OM Shipping Lines from Receipt Lines.
“Accept, Use as Is”
“Accept Use as Is”
NC part is retuned toMRB Sub-inventory
Rework: Manually Create Work Order for internal rework items
NC Process Start
RTS(Buyer)
Hold
Manual
Work OrderNC Rework
Inv Move
Key
Collection Plans
• Master Main
• Detail• Audit
• Disp Master
• RoHS-WEES
• WFR Master • RTS Master • OSP Master
• RCV INSP
23
Quality Automated Processes (incl. RTS)
Automatic Creation of Sales Orders
Trigger on RTS disposition
Utilize Item set up
“Feed” Shipping documents
Create Vendor address (site)
Automatic E-mail Notification to next Person in Chain
Reports
24
ERPOrderMgmt
LEAN Process Flow “To Be” Model
Resp
MPS Planning
Contract Manufacturer
ERP
Customer
Health Monitoring
Eng Change Mgmt
Qualc
om
mS
up
ply
Ch
ain
Part
ner
MRP Planning
Bad Board/ Virtual MRB
Process
Pack-out
ROP Sizing
Costing
Transit
SLC
CM Pack-out
Kanban/ROP
Component Mgmt
Kanban/ROP
Kanban/ROP
CM Dist Site #`1
Transfer FGI to Company
CM Dist Site #2
Kanban/ROP
CdeC Site
On line Orders
Conclusion
Recommended