朗讯公司供应链案例-延迟策略

1、LUCENT TECHNOLOGIES:David W. HoytACHIEVING THE “IMPOSSIBLE” BY USING PROVISIONING AND POSTPONEMENTContent37263134384347575962OpportunityHistory of Lucent5ESS Digital SwitchThe Original ProcessLucents ManufacturingProblemsPostponementRelieving ConstraintsProvisioning and Parallel ProcessingOrganizati

2、onal IssuesResults and ConclusionOpportunity1998 Saudi ArabiaMany digital switches need to be replacedY2K compliantMillions of dollarsSignificant additional business5ESS Digital Switch 23-25 weeksTres Cantos(Spain) Insufficient CapacityOklahoma City(US) Different engineering system Overcome capacity

3、 constraintsImprove delivery timeOpportunity1998 Saudi ArabiaMany digital switches need to be replacedY2K compliantMillions of dollarsSignificant additional business5ESS Digital Switch 23-25 weeksTres Cantos(Spain) Insufficient CapacityOklahoma City(US) Different engineering system Overcome capacity

4、 constraintsImprove delivery timeOpportunity1998 Saudi ArabiaMany digital switches need to be replacedY2K compliantMillions of dollarsSignificant additional business5ESS Digital Switch 23-25 weeksTres Cantos(Spain) Insufficient CapacityOklahoma City(US) Different engineering system Overcome capacity

5、 constraintsImprove delivery timeOpportunity1998 Saudi ArabiaMany digital switches need to be replacedY2K compliantMillions of dollarsSignificant additional business5ESS Digital Switch 23-25 weeksTres Cantos(Spain) Insufficient CapacityOklahoma City(US) Different engineering system Overcome capacity

6、 constraintsImprove delivery timeHistory of Lucent1877 Bell Telephone Company1880 AT&T Long Line1885 AT&T(America Telephone and Telegraph Company)1899 America Bell/Bell System AT&T1925 Bell Laboratories 3% output of AT&T Communication/Radio Astronomy Semi-conductor/Computer Science C/Unix/Telephone/

7、Transistor/Digital Switch Communications Satellite/Optical Fiber Information Theory(Shannon)Monopoly Position in America and CanadaHistory of Lucent1877 Bell Telephone Company1880 AT&T Long Line1885 AT&T(America Telephone and Telegraph Company)1899 America Bell/Bell System AT&T1925 Bell Laboratories

8、 3% output of AT&T Communication/Radio Astronomy Semi-conductor/Computer Science C/Unix/Telephone/Transistor/Digital Switch Communications Satellite/Optical Fiber Information Theory(Shannon)Monopoly Position in America and CanadaHistory of Lucent1877 Bell Telephone Company1880 AT&T Long Line1885 AT&

9、T(America Telephone and Telegraph Company)1899 America Bell/Bell System AT&T1925 Bell Laboratories 3% output of AT&T Communication/Radio Astronomy Semi-conductor/Computer Science C/Unix/Telephone/Transistor/Digital Switch Communications Satellite/Optical Fiber Information Theory(Shannon)Monopoly Pos

10、ition in America and CanadaHistory of Lucent1877 Bell Telephone Company1880 AT&T Long Line1885 AT&T(America Telephone and Telegraph Company)1899 America Bell/Bell System AT&T1925 Bell Laboratories 3% output of AT&T Communication/Radio Astronomy Semi-conductor/Computer Science C/Unix/Telephone/Transi

11、stor/Digital Switch Communications Satellite/Optical Fiber Information Theory(Shannon)Monopoly Position in America and CanadaHistory of Lucent1877 Bell Telephone Company1880 AT&T Long Line1885 AT&T(America Telephone and Telegraph Company)1899 America Bell/Bell System AT&T1925 Bell Laboratories 3% ou

12、tput of AT&T Communication/Radio Astronomy Semi-conductor/Computer Science C/Unix/Telephone/Transistor/Digital Switch Communications Satellite/Optical Fiber Information Theory(Shannon)Monopoly Position in America and CanadaHistory of Lucent1984 United States antitrust law AT&T(Ma Bell) and 7 Baby Be

13、llsMarket share/Profit/R&D ExpenseCommunication/Semi-conductor1995 Back to the top1996 Separation AT&T: Telecommunication Service Lucent: Equipment Manufacture NCR: Computer2005 Acquisition by SBCHistory of Lucent1984 United States antitrust law AT&T(Ma Bell) and 7 Baby BellsMarket share/Profit/R&D

14、ExpenseCommunication/Semi-conductor1995 Back to the top1996 Separation AT&T: Telecommunication Service Lucent: Equipment Manufacture NCR: Computer2005 Acquisition by SBCHistory of Lucent1984 United States antitrust law AT&T(Ma Bell) and 7 Baby BellsMarket share/Profit/R&D ExpenseCommunication/Semi-c

15、onductor1995 Back to the top1996 Separation AT&T: Telecommunication Service Lucent: Equipment Manufacture NCR: Computer2005 Acquisition by SBCHistory of Lucent1984 United States antitrust law AT&T(Ma Bell) and 7 Baby BellsMarket share/Profit/R&D ExpenseCommunication/Semi-conductor1995 Back to the to

16、p1996 Separation AT&T: Telecommunication Service Lucent: Equipment Manufacture NCR: Computer2005 Acquisition by SBCHistory of Lucent1984 United States antitrust law AT&T(Ma Bell) and 7 Baby BellsMarket share/Profit/R&D ExpenseCommunication/Semi-conductor1995 Back to the top1996 Separation AT&T: Tele

17、communication Service Lucent: Equipment Manufacture NCR: Computer2005 Acquisition by SBCHistory of LucentLucent Order of Sprint and MCI1996 Listing, 90+ countries, 4 unitsNetwork Systems 50% revenuesThe Dot-com BubbleMass Accounts Receivables2000 Crumble to dustCarly FiorinaAvaya of LucentBell LabsA

18、lcatel, CISCOHistory of LucentLucent Order of Sprint and MCI1996 Listing, 90+ countries, 4 unitsNetwork Systems 50% revenuesThe Dot-com BubbleMass Accounts Receivables2000 Crumble to dustCarly FiorinaAvaya of LucentBell LabsAlcatel, CISCOHistory of LucentLucent Order of Sprint and MCI1996 Listing, 9

19、0+ countries, 4 unitsNetwork Systems 50% revenuesThe Dot-com BubbleMass Accounts Receivables2000 Crumble to dustCarly FiorinaAvaya of LucentBell LabsAlcatel, CISCOHistory of LucentLucent Order of Sprint and MCI1996 Listing, 90+ countries, 4 unitsNetwork Systems 50% revenuesThe Dot-com BubbleMass Acc

20、ounts Receivables2000 Crumble to dustCarly FiorinaAvaya of LucentBell LabsAlcatel, CISCOHistory of LucentLucent Order of Sprint and MCI1996 Listing, 90+ countries, 4 unitsNetwork Systems 50% revenuesThe Dot-com BubbleMass Accounts Receivables2000 Crumble to dustCarly FiorinaAvaya of LucentBell LabsA

21、lcatel, CISCOHistory of LucentTrend: Internet, Mobile phoneLeading enterprise, Money, TechAfter 2000 Separation Again AT&T AT&T Wireless AT&T Internet Out of potential Out of moneyShannon Labs, 911Southwest Bell, SBCSecond Telecom CompanyM&A AT&T, AT&T, Resource ServiceHistory of LucentTrend: Intern

22、et, Mobile phoneLeading enterprise, Money, TechAfter 2000 Separation Again AT&T AT&T Wireless AT&T Internet Out of potential Out of moneyShannon Labs, 911Southwest Bell, SBCSecond Telecom CompanyM&A AT&T, AT&T, Resource ServiceHistory of LucentTrend: Internet, Mobile phoneLeading enterprise, Money,

23、TechAfter 2000 Separation Again AT&T AT&T Wireless AT&T Internet Out of potential Out of moneyShannon Labs, 911Southwest Bell, SBCSecond Telecom CompanyM&A AT&T, AT&T, Resource ServiceHistory of LucentTrend: Internet, Mobile phoneLeading enterprise, Money, TechAfter 2000 Separation Again AT&T AT&T W

24、ireless AT&T Internet Out of potential Out of moneyShannon Labs, 911Southwest Bell, SBCSecond Telecom CompanyM&A AT&T, AT&T, Resource Service5ESS Digital Switch250 thousand subscriber lines100 thousand trunk linesdigital/voice/data/video/wired/wirelessModular designAMCMSMSMSMAdministrationCommunicat

25、ionSwitching250 thousand subscriber lines100 thousand trunk linesdigital/voice/data/video/wired/wirelessModular designAMCMSMSMSMAdministrationCommunicationSwitching5ESS Digital Switch5ESS Digital SwitchPCB (Printed Circuit Boards)CablesPower SuppliesOther Components Cabinets298 PCBs, 22 Cabinets, 21

26、 Other unitsCombined with custom-built assembliesCustomized productsA typical system 6/7 Cabinets1 Million dollarsDetailed requirement ConfigurationRequired analog traffic level5ESS Digital SwitchPCB (Printed Circuit Boards)CablesPower SuppliesOther Components Cabinets298 PCBs, 22 Cabinets, 21 Other

27、 unitsCombined with custom-built assembliesCustomized productsA typical system 6/7 Cabinets1 Million dollarsDetailed requirement ConfigurationRequired analog traffic level5ESS Digital SwitchPCB (Printed Circuit Boards)CablesPower SuppliesOther Components Cabinets298 PCBs, 22 Cabinets, 21 Other units

28、Combined with custom-built assembliesCustomized productsA typical system 6/7 Cabinets1 Million dollarsDetailed requirement ConfigurationRequired analog traffic levelThe Original ProcessLucent engineers On-site inspection Configuration Requirements Information (Bill of materials) BOMBasic product man

29、ufacturedCustom parts addedShipping and customs clearanceAssemble and test systemDeliver to customer siteInstall and test equipmentShipment by sea took about 10 daysShipment by air was expensiveTiming of clearance was unpredictableThe Original ProcessLucent engineers On-site inspection Configuration

30、 Requirements Information (Bill of materials) BOMBasic product manufacturedCustom parts addedShipping and customs clearanceAssemble and test systemDeliver to customer siteInstall and test equipmentShipment by sea took about 10 daysShipment by air was expensiveTiming of clearance was unpredictableThe

31、 Original ProcessLucent engineers On-site inspection Configuration Requirements Information (Bill of materials) BOMBasic product manufacturedCustom parts addedShipping and customs clearanceAssemble and test systemDeliver to customer siteInstall and test equipmentShipment by sea took about 10 daysShi

32、pment by air was expensiveTiming of clearance was unpredictableLucents ManufacturingOklahoma City (US) WorldwideBy the late 1990s Supplied primarily by local facilitiesTres Cantos (Spain) EMEA region (Europe, Middle East, and Africa)Fast-growing capacitySlow-growing need of capacity 1 circuit board

33、supply 8 32 subscribersEffective capacity had grown dramaticallyCapacity surplus, ImbalanceLucents ManufacturingOklahoma City (US) WorldwideBy the late 1990s Supplied primarily by local facilitiesTres Cantos (Spain) EMEA region (Europe, Middle East, and Africa)Fast-growing capacitySlow-growing need

34、of capacity 1 circuit board supply 8 32 subscribersEffective capacity had grown dramaticallyCapacity surplus, ImbalanceLucents ManufacturingOklahoma City (US) WorldwideBy the late 1990s Supplied primarily by local facilitiesTres Cantos (Spain) EMEA region (Europe, Middle East, and Africa)Fast-growin

35、g capacitySlow-growing need of capacity 1 circuit board supply 8 32 subscribersEffective capacity had grown dramaticallyCapacity surplus, ImbalanceLucents ManufacturingOklahoma City (US) WorldwideBy the late 1990s Supplied primarily by local facilitiesTres Cantos (Spain) EMEA region (Europe, Middle

36、East, and Africa)Fast-growing capacitySlow-growing need of capacity 1 circuit board supply 8 32 subscribersEffective capacity had grown dramaticallyCapacity surplus, ImbalanceProblemsInsufficient capacity in EuropeLong overall fulfillment cycle400 cabinets and 44000 circuit pack All European facilit

37、ies + No other orders Over a 12 month period OKC Different engineering systemIncrease the capacity in TC $10 millions, months; Workers, EquipmentProduction in Saudi Arabia ImpossibleStockpile completed systems ImpossibleRequirements be known InstallationCustom clearance 3 weeksProblemsInsufficient c

38、apacity in EuropeLong overall fulfillment cycle400 cabinets and 44000 circuit pack All European facilities + No other orders Over a 12 month period OKC Different engineering systemIncrease the capacity in TC $10 millions, months; Workers, EquipmentProduction in Saudi Arabia ImpossibleStockpile compl

39、eted systems ImpossibleRequirements be known InstallationCustom clearance 3 weeksProblemsInsufficient capacity in EuropeLong overall fulfillment cycle400 cabinets and 44000 circuit pack All European facilities + No other orders Over a 12 month period OKC Different engineering systemIncrease the capa

40、city in TC $10 millions, months; Workers, EquipmentProduction in Saudi Arabia ImpossibleStockpile completed systems ImpossibleRequirements be known InstallationCustom clearance 3 weeksProblemsInsufficient capacity in EuropeLong overall fulfillment cycle400 cabinets and 44000 circuit pack All Europea

41、n facilities + No other orders Over a 12 month period OKC Different engineering systemIncrease the capacity in TC $10 millions, months; Workers, EquipmentProduction in Saudi Arabia ImpossibleStockpile completed systems ImpossibleRequirements be known InstallationCustom clearance 3 weeksProblemsInsuf

42、ficient capacity in EuropeLong overall fulfillment cycle400 cabinets and 44000 circuit pack All European facilities + No other orders Over a 12 month period OKC Different engineering systemIncrease the capacity in TC $10 millions, months; Workers, EquipmentProduction in Saudi Arabia ImpossibleStockp

43、ile completed systems ImpossibleRequirements be known InstallationCustom clearance 3 weeksPostponementRedesigning and buildingTime, Cost, EffortPush Build-to-stock Place in stockPull Build-to-order meet specific requirementPush-pull boundary Standardization, CustomizationOriginal process: far left M

44、inimized inventory, Long delivery timeSolution: move to the right Standardization, Product/Process designPostponementRedesigning and buildingTime, Cost, EffortPush Build-to-stock Place in stockPull Build-to-order meet specific requirementPush-pull boundary Standardization, CustomizationOriginal proc

45、ess: far left Minimized inventory, Long delivery timeSolution: move to the right Standardization, Product/Process designPostponementRedesigning and buildingTime, Cost, EffortPush Build-to-stock Place in stockPull Build-to-order meet specific requirementPush-pull boundary Standardization, Customizati

46、onOriginal process: far left Minimized inventory, Long delivery timeSolution: move to the right Standardization, Product/Process designPostponementRedesigning and buildingTime, Cost, EffortPush Build-to-stock Place in stockPull Build-to-order meet specific requirementPush-pull boundary Standardizati

47、on, CustomizationOriginal process: far left Minimized inventory, Long delivery timeSolution: move to the right Standardization, Product/Process designRelieving ConstraintsThe Supply Chain Engineering GroupIrrelevant to customer: Options, Configurations Conventions Decision RequirementAll system Suff

48、icient cabling simplified Modest materials cost Reduced expediting chargesTotal manufacturing cost: Planning, Building Maintaining multiple variationsCreate one standard versionRelieving ConstraintsThe Supply Chain Engineering GroupIrrelevant to customer: Options, Configurations Conventions Decision

49、 RequirementAll system Sufficient cabling simplified Modest materials cost Reduced expediting chargesTotal manufacturing cost: Planning, Building Maintaining multiple variationsCreate one standard versionRelieving ConstraintsThe Supply Chain Engineering GroupIrrelevant to customer: Options, Configur

50、ations Conventions Decision RequirementAll system Sufficient cabling simplified Modest materials cost Reduced expediting chargesTotal manufacturing cost: Planning, Building Maintaining multiple variationsCreate one standard versionRelieving ConstraintsThe Supply Chain Engineering GroupIrrelevant to

51、customer: Options, Configurations Conventions Decision RequirementAll system Sufficient cabling simplified Modest materials cost Reduced expediting chargesTotal manufacturing cost: Planning, Building Maintaining multiple variationsCreate one standard versionRelieving ConstraintsThe Supply Chain Engi

52、neering GroupIrrelevant to customer: Options, Configurations Conventions Decision RequirementAll system Sufficient cabling simplified Modest materials cost Reduced expediting chargesTotal manufacturing cost: Planning, Building Maintaining multiple variationsCreate one standard versionRelieving Const

53、raints95% BNEs (Basic Network Elements)5% “deltas” Custom manufacturingLow-level: Circuit boardsTop-level: Site-specific configurationsBNEs defined; Certified in OKCTC: Assemble the BNEs into the system; TestBNEs: build commonly used modules to stockDeltas: custom designed Fast-response engineering

54、teamCustomer Time required for the pull portionLong lead-time Push sideShort customization process Pull sideRelieving Constraints95% BNEs (Basic Network Elements)5% “deltas” Custom manufacturingLow-level: Circuit boardsTop-level: Site-specific configurationsBNEs defined; Certified in OKCTC: Assemble

55、 the BNEs into the system; TestBNEs: build commonly used modules to stockDeltas: custom designed Fast-response engineering teamCustomer Time required for the pull portionLong lead-time Push sideShort customization process Pull sideRelieving Constraints95% BNEs (Basic Network Elements)5% “deltas” Cus

56、tom manufacturingLow-level: Circuit boardsTop-level: Site-specific configurationsBNEs defined; Certified in OKCTC: Assemble the BNEs into the system; TestBNEs: build commonly used modules to stockDeltas: custom designed Fast-response engineering teamCustomer Time required for the pull portionLong le

57、ad-time Push sideShort customization process Pull sideRelieving Constraints95% BNEs (Basic Network Elements)5% “deltas” Custom manufacturingLow-level: Circuit boardsTop-level: Site-specific configurationsBNEs defined; Certified in OKCTC: Assemble the BNEs into the system; TestBNEs: build commonly us

58、ed modules to stockDeltas: custom designed Fast-response engineering teamCustomer Time required for the pull portionLong lead-time Push sideShort customization process Pull sideRelieving Constraints95% BNEs (Basic Network Elements)5% “deltas” Custom manufacturingLow-level: Circuit boardsTop-level: S

59、ite-specific configurationsBNEs defined; Certified in OKCTC: Assemble the BNEs into the system; TestBNEs: build commonly used modules to stockDeltas: custom designed Fast-response engineering teamCustomer Time required for the pull portionLong lead-time Push sideShort customization process Pull side

60、Provisioning and Parallel ProcessingTC: served as an integration facilityA distribution center Saudi ArabiaDelta assemblies Fast-responseA cable assembly facility Saudi ArabiaFinal assembly be done on siteProvisioning and Parallel ProcessingTC: served as an integration facilityA distribution center