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8/10/2019 The Introduction of Lean Manufacturing Concepts at Qualcomm.ppt
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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
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The Value Chain
Value Chain Processes
MarketProducts /Services
SellProducts /Services
Plan /Manufacture
Distribution /Service
& Support
ProcureMaterials /Services
Generate Demand Fulf i l l Demand
Develop-IntroduceProducts /Services
The Quantum value chain is driven by Qualcomms leadershipposition as the developer of CDMA technologies. QCT CDMA
technologies accounts for 90-95% of QSCO demand, principally
FFAs 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.
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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
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Lean Concepts
T O :
Inconsistent InventoryKanbans, Min/Max and Safety
Stock Demand Triggers
Disconnected Forecasts Intelligent Forecasts
Inconsistent Signal to Partner Defined Signal to CM Partner
Complex Processes Radical Simplification
F R O M :
Predominately Push Pullfrom the Partner
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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
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2 Oracle instances: The QCT Instance
Qualcomm
SAT OrganizationsFAB Suppliers
PO forDIE items
Service PO forFG items
3B2_C-Imessage
fromFAB
3B2_C-Omessageto
SAT
4B2messagefrom
SAT
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 BUs
QCT Instance
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2 Oracle instances: The Quantum Instance
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Why two instances?
The QCT instance is geared to Qualcomms chip manufacturingbusiness, 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 11.5.8and the other, an Oracle 11.5.9 instance, primarily to support Oracles
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
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Separation of Prod & Non-Prod Procurement
QSCO
(ProductionProcurement)
CORP (Non-
Production
Procurement)
MRP/ASCP
Completely automated
Procurement Process
Qualcomm USD Set of Books
iProcurement
Oracle Contracts
Oracle Services
Procurement
Directand
NPI
Shelterand
Bldg M
Indirectand
Services
CorpProcure
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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)
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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
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ASCP Overview
Generate Baseline Forecast
Oracle Modules:
ODP ASCPCollaborative
PlanningiSupplier
Portal
Order
Management
In addition, DBI may be used for KPI / Metric reporting
Collaborative Demand
Planning
Generate Consensus
Forecast
Capture Inventory
Visibility
Collaborate with
Contract Manufacturer
Generate Constrained
Long Term Supply Plan
Generate Short Term
Manufacturing Plan
Release Work Orders
to Contract Manufacturer
Release Purchase Orders
to 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 POs are created and transmitted to Suppliers via EDI
(Harbinger)
Entire production procurement process is automated, end-to-end
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Forecasts Drive Demand into QSCO
QC 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
Supply
ProductionPOs
QCT OU
QCT225
225-249
Subassembly
Supply
SubassyDem
Forecast/SO Demand
Projects
Issue to Projects
Foreca
st
Forecasts or SOs created in QCT, MUI, QMT OU
Demand is placed against QSCO OU, 3 inventory orgs
POs are generated and sent via EDI to suppliers
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Sales Orders
Drive Demand
Run ASCP
Engine
SIM versus
REGEN Run
POs using EDI
850Forecast using
EDI 830
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ICG Process:
Item is
Planning
Enabled
POs marked
with an -NPI
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Oracle Configuration: Item Master (1 of 2)
Defines period
for which
releases created
Create Supplyto Match
Demand
Indicates an
Active Item
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Oracle Configuration: ASCP Engine (2 of 2)
ASCP Plan is
not Constrained
Enforced
Demand Drivesthe Planning
Engine
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Quality and RTS Design Highlights
Uses standard Oracle hooks from Procurement to Quality
8 Quality Collection Plans developed for each state an NCed item may
take
HandlesRTS for both Production and Ancillary Items
Coversall RTS scenarios:Credit
Outside Rework
SOI (Supplier Owned Inventory)
Legacy Receipts
Utilizes standardQuantum shipping process (custom, integration with RTS)
Leverages standardOracle WO/PO process to capture all relevant inventory
consumption, item conversions, labor charges and other variances
ImprovesA/P debit memo process using the AP Open Invoices API for
automatic debit memo creation
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Automated
QUALCOMM Virtual MRB Process
RepairVendor
Disposition
Sub (SQE)
Scrap
Factory
Part is not salvageable
and is scrapped.
NC part is sent to
outsourced repair
facility
Supplier
MRB
Sub
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 IsAccept
Use as Is
NC part is retuned to
MRB Sub-inventory
Rework: Manually
Create Work
Order for internal
rework itemsNC
Process
Start
RTS
(Buyer)
Hold
Manual
Work Order
NC Rework
Inv Move
Key
Collection Plans
Master Main
Detail
Audit
Disp Master
RoHS-WEES
WFR Master
RTS Master
OSP Master
RCV INSP
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Quality Automated Processes (incl. RTS)
AutomaticCreation of Sales OrdersTrigger on RTS disposition
Utilize Item set up
Feed Shipping documents
Create Vendor address (site)
Automatic E-mail Notification to next Person in Chain
Reports
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ERP
Order
Mgmt
LEAN Process Flow To Be Model
Resp
MPS Planning
ContractManufacturer
ERP
Customer
HealthMonitoring
Eng ChangeMgmt
Qualcomm
SupplyChain
Partner
MRP Planning
Bad Board/Virtual MRB
Process
Pack-out
ROP Sizing
Costing
Transit
SLC
CMPack-out
Kanban/ROP
ComponentMgmt
Kanban/ROP
Kanban/ROP
CM Dist Site#`1
Transfer FGI toCompany
CM Dist Site#2
Kanban/ROP
CdeC Site
On line Orders
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Conclusion
Recommended