248540776 the Introduction of Lean Manufacturing Concepts at Qualcomm Ppt

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    The Introduction of Lean Manufacturing

    Concepts at Qualcomm

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    2

    Introduction: Agenda

     The Value Chain

     Lean Concepts

     Benefits of Lean Manufacturing

     2 Oracle Instances

    The QCT instance

    The Quantum instance

     Wh 2 instances!

     "eparation of #roduction and $on%#rod #rocurement

     2&&' Implementation "ites

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    3

    The Value Chain

    Value Chain #rocesses

    Mar(et#roducts )"er*ices

    "ell#roducts )"er*ices

    #lan )Manufacture

    +istri,ution )"er*ice

    - "upport

    #rocureMaterials )"er*ices

    Generate Demand  Fulfill Demand 

    +e*elop%Introduce#roducts )"er*ices

    The Quantum value chain is driven by Qualcomm’s leadershipposition as the developer of CDMA technologies. QCT CDMA

    technologies accounts for !"#$ of Q%C& demand' principally

    ((A’s and %)*(% +test e,uipment used to test chip ,uality and

    functionality-. The remaining #"!$ of Q%C& demand is

    generated by Q/0% +Qualcomm /ireless 0usiness %olutions-'1hich manufactures &mniision and other 1ireless products.

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    Lean Concepts: The ." "stem

    /apanese Meaning Translation

    "eiri Organi0ation "ort

    "eiton Orderliness "et%in%Order  

    "eiso Cleanliness "hine

    "ei(etsu "tandardi0ed Cleanup "tandardi0e

    "hitsu(e +iscipline "ustain

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    #

    Lean Concepts

    T O :

    Inconsistent In*entor

    1an,ans Min)Ma3 and "afet

    "toc( +emand Triggers

    +isconnected 4orecasts Intelligent 4orecasts

    Inconsistent "ignal to #artner +efined "ignal to CM #artner 

    Comple3 #rocesses 5adical "implification

    4 5 O M :

    #redominatel 6#ush7 6#ull7 from the #artner 

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    4

    Benefits of Lean Manufacturing

     5educed in*entor across the suppl chain

     8reater predicta,ilit around lead times and on%time shipments

     Increased relia,ilit the right product at the right time at the right price

     Better customer satisfaction due to greater accurac in forecast deli*er

     Better data ro,ust processes and sstems management effecti*eness

     Increase control o*er 9ualit defects and root cause of defects ;"igma<

     Optimi0e operations ,et=een e3isting Q"CO and 6shelter7 organi0ation

     Better manage throughput =ith ne= Contract Manufacturing partner 

     #osition Qualcomm for rapid gro=th in emerging ,usiness and mar(ets

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    2 Oracle instances: The QCT Instance

    Qualcomm

    SAT OrganizationsFAB Suppliers

    PO forDIE items

    Service POfor FG items

    3B!"#Imessage

    from

    FAB

    3B!"#Ome

    ssage

    toSAT

    $Bmessag

    efrom

    SAT

     QCT instance has t=o application ser*ers: >>?.?@ and >>?.? lot controlled<

     Quantum instance is an Oracle >>?.?>& instance =ith min? customi0ations

     ach organi0ation 6o=ns7 its o=n in*entor common in*entor items

     Q"CO manufacturing< has no #-L and =ill li9uidate costs to other BDEs

    QCT Instance

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    2 Oracle instances: The Quantum Instance

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    Wh t=o instances!

     The QCT instance is geared to QualcommEs chip manufacturing,usiness is hea*il customi0ed and uses 6lot control7 and other

    features that are not attracti*e to the Qualcomm discrete

    manufacturing ,usinesses

     The QCT instance uses t=o application ser*ers one Oracle >>?.?@and the other an Oracle >>?.? instance primaril to support OracleEs

    Ad*anced "uppl Chain #lanning A"C#< engine

     The QCT instance does not include proFect accounting nor does it

    ma(e allo=ance for international rollout

     There is continuing discussion in the press a,out 6spinning off7 the

    chip ,usiness

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    "eparation of #rod - $on%#rod #rocurement

    Directand

    NPI

    Shelterand

    Bldg M

    Indirectand

    Services

    CorpProcure

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    SD1

    SD2

    Quantum Implementation "ites

    Actual sites 2&&' rollout

    QMT Taiwan

    San Diego

    Tijuana, MexicoQMT San Jose

    India(3)

    China(3)Japan(2)

    Koea(2)

    !K(")

    #! (D#, #S, $%,IT, , S#) (')

    Mexico(')

    Isae(1)

    us*aia (2)

    gen*ina (1)

    +ai (1)

    Canada (1)

    #otential sites 2&&@ G glo,al rollout

    Indonesia (1)

    %ussia (2)

    Singapoe (1)

    Sou*h -ica (1)

    Taiwan (3)

    .ie*na/(1)

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    Lean Manufacturing: Agenda

     In*entor Orgs "tructure

     A"C# O*er*ie=

     4orecasts and "ales Order +ri*e +emand

     Business #rocesses

    %C& +%upply Chain &rgani7ation- 8rocurement

    %helter Manufacturing and CM 8rocurement

    98: 8rocurement

     Qualit and 5T" Highlights

     The concept of a 6Virtual M5B7

     Lean Manufacturing 6to ,e7 Model

     Conclusion

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    Qualcomm In*entor Orgs "tructure

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    A"C# O*er*ie=

    8enerate Baseline 4orecast

    &racle Modules;

    O+# A"C#Colla,orati*e

    #lanningi"upplier 

    #ortal

    Order 

    Management

    :n addition' D0: may be used for  As Demand drops into the 8lanners /or?bench' 8lanners route @ma?e

    orders to MB% +@%hop (loor Control-' material re,uirements are

    identified' and 8&’s are created and transmitted to %uppliers via BD:

    +arbinger-

    > Bntire production procurement process is automated' end"to"end

    http://www.oracle.com/index.html

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    4orecasts +ri*e +emand into Q"CO

    • (orecasts or %&’s created in QCT' M):' QMT &)

    > Demand is placed against Q%C& &)' 3 inventory orgs

    > 8&’s are generated and sent via BD: to suppliers

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    Adjustments to

    Plan made with

    Arrow

    orecastsentered via

    spreadsheet!eleases

    against

    Blan"et P#

    $%DI &'()

    Sales #rders

    Drive

    Demand

    orecast

    $%DI &*()

    Includes +MI,

    S#I, -tollmanu.acture/

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    5

    Sales #rders

    Drive Demand

    !un ASCP

    %ngine

    SIM versus

    !%0%N !un

    P#1s using %DI

    &'(orecast using

    %DI &*(

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    6

    IC0 Process2

    Item is

    -Planning

    %na3led/

    P#1s mar"ed

    with an -4NPI/

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    Oracle Configuration: Item Master > of 2<

    De.ines period

    .or which

    releases created

    Create Suppl5to Match

    Demand

    Indicates an

    -Active Item/

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    2!

    Oracle Configuration: A"C# ngine 2 of 2<

    ASCP Plan is

    not Constrained

    %n.orced

    Demand Drivesthe Planning

    %ngine

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    2

    Qualit and 5T" +esign Highlights

    Dses standard Oracle hoo(s from 8rocurement to Quality

    @ Qualit Collection #lans de*eloped for each @state an 9C’ed item may

    ta?e

    Handles *T% for both 8roduction and Ancillary :tems

    Co*ers all *T% scenarios; Credit

     &utside *e1or?

     %&: +%upplier &1ned :nventory-

     egacy *eceipts

    Dtili0es standard Quantum shipping process +custom' integration 1ith *T%-

    Le*erages standard &racle /&=8& process to capture all relevant inventory

    consumption' item conversions' labor charges and other variances

    Impro*es A=8 debit memo process using the A8 &pen :nvoices A8: for

    automatic debit memo creation

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    22

    Automated

    QDALCOMM 6Virtual7 M5B #rocess

    !epair+endor

    Disposition

    Su3 $SQ%)

    Scrap

    actor5

    Part is not salvagea3le

    and is scrapped6

    NC part is sent to

    outsourced repair

     .acilit5

    Supplier

    M!B

    Su3

    !TS7!T+

    $ Credit7 S#I) 

    actor5 receives part, and a.ter inspection $-reject/),

    trans.ers NC part to M!B Inventor56

    Scrap

    #SP

    Material !eceipt into M!B Inventor5

    !TS Process2 Create #M

    Shipping 8ines .rom

    !eceipt 8ines6

    -Accept,

    9se as Is/-Accept

     9se as Is/

    NC part is retuned to

    M!B Su34inventor5

    !ewor"2 Manuall5

    Create :or"

    #rder .or internal

    rewor" itemsNC

    Process

     Start

    !TS

    $Bu5er)

    ;old

    Manual

    :or" #rder

    NC !ewor"  

    Inv Move

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    23

    Qualit Automated #rocesses incl? 5T"<

    Automatic Creation of %ales &rders Trigger on *T% disposition

     )tili7e :tem set up

     @(eed %hipping documents

     Create endor address +site-

    Automatic B"mail 9otification to neEt 8erson in Chain

    5eports

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    2

    5#

    Order 

    Mgmt

    LA$ #rocess 4lo= 6To Be7 Model

    5esp

    M#" #lanning

    ContractManufacturer 

    5#

    Customer 

    HealthMonitoring

    ng ChangeMgmt

       Q  u  a   (  c  o  /  /

       S  u  p  p   (  0   C   h  a   i  n

       1  a     *  n  e  

    M5# #lanning

    Bad Board)Virtual M5B

    #rocess

    #ac(%out

    5O# "i0ing

    Costing

    Transit

    "LC

    CM#ac(%out

    1an,an)5O#

    Component Mgmt

    1an,an)5O#

    1an,an)5O#

    CM +ist "iteJ>

    Transfer 48I toCompan

    CM +ist "ite2

    1an,an)5O#

    CdeC "ite

    On line Orders

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    Conclusion