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This is a presentation given by Dr. Hank Campbell (my father) and myself at the 2003 NAIT convention. I was featured as an industry speaker regarding Motorola\'s Supplier Development Engineering ...

This is a presentation given by Dr. Hank Campbell (my father) and myself at the 2003 NAIT convention. I was featured as an industry speaker regarding Motorola\'s Supplier Development Engineering philosophy of procurement and quality vs. buying at the chapest price.

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NAIT Presentation 2003 Presentation Transcript

  • 1. Global Sourcing and Supply Chain Management at Motorola Corporation: A Key Strategy for Economic Survival Presented By Ryan Campbell Supply Development Engineer Motorola Corporation Arlington Heights, IL Dr. Hank Campbell Professor Illinois State University Normal, IL NAIT Conference 11/19/2003 Nashville, TN
  • 2. What is Supply Chain Management?  A supply chain has interrelated organizations, resources, and processes that create and deliver products and services to end customers. (Taylor,2001)  Functions include planning and managing supply/demand, acquiring materials, qualifying suppliers, producing schedules, warehousing, inventory control, distribution, delivery, customer service, and with highest quality at least cost. November 19, 2003 2
  • 3. Purchasing wants…  Stable volumes  Flexible delivery  Conformance to specs  Large quantities  Reduced costs November 19, 2003 3
  • 4. Manufacturing wants …  Long run economics  High quality inputs  High productivity  Low cost facilities  Low labor input  High consistency  Lean operations  Good profit margins November 19, 2003 4
  • 5. Customers want …  Short lead times  Low prices  Individual attention  Satisfaction every time  Ability to change their minds November 19, 2003 5
  • 6. Why is SCM so complex?  Wrong forecasts  Engineering changes  Poor quality  Poor market demand parts/service  Too much inventory  Downtime  Too little inventory  Labor shortages  Canceled orders  Global transportation  Slow decision making  $ exchange rates  Poor information flow  Political changes All the UNCERTAINTIES!!! November 19, 2003 6
  • 7. What is the up-side of effective Supply Chain Management?  Competitive advantage  Catching peak demand  Reduced system costs  Satisfied customers  Company reputation  Stakeholder rewards (Increased Stock Price) November 19, 2003 7
  • 8. Motorola’s Supply Chain: The role of “Supplier Development Engineers” Presented By Ryan Campbell Sr. Supply Development Engineer Motorola Corporation Arlington Heights, IL Dr. Hank Campbell Professor Illinois State University Normal, IL NAIT Conference 11/19/2003 Nashville, TN
  • 9. MOTOROLA CORPORATION A company that practices Supply Chain Management. A case study presented by a member of the Motorola Global Strategic Sourcing team, Ryan Campbell
  • 10. About Motorola Motorola is a global leader in providing integrated communications solutions and embedded electronic solutions. Motorola’s Intelligence EverywhereTM solutions include:  Software-enhanced wireless telephone and messaging, two-way radio products and systems, as well as networking and Internet-access products, for consumers, network operators, and commercial, government and industrial customers.  End-to-end systems for the delivery of interactive digital video, voice and high-speed data solutions for broadband operators.  Embedded semiconductor solutions for customers in wireless communications, networking and transportation markets.  Integrated electronic systems for automotive, Telematics, industrial, telecommunications, computing and portable energy systems markets. November 19, 2003 10
  • 11. We make things smarter, simpler, safer and synchronized for people and the environments in which they live, work, and play. The Work The Person Team The Home The Auto Wireless Broadband Internet November 19, 2003 11
  • 12. Motorola’s Global Telecom Solutions Sector Wireless infrastructure: CDMA, GSM/UMTS and iDEN November 19, 2003 12
  • 13. In 2002, Motorola’s Global Telecommunications Solution Sector saved $650+ Million A significant portion of these cost reductions were the result of Supply Chain efforts to:  Team with Development Engineering at the concept stage  Negotiate significant material savings through increased leverage  Transition to global suppliers with low-cost locations  Outsource manufacturing lines to low-cost regions November 19, 2003 13
  • 14. “We had to get further upstream in the design & development process. We knew we could make an even bigger impact to the bottom line if we put our heads together with DE (development engineering) at pre-design …at the “notes on a napkin” stage. And we couldn’t just do that here & there; we had to do it Globally .” --- Randy Peters, Global Manager of GTSS Supplier Development Engineering team November 19, 2003 14
  • 15. What Is Supplier Development Engineering? Supplier Development Engineering (SDE) is a Procurement Function,  Procure (verb) To bring about; To effect Not a Purchasing Function Purchase (verb) To obtain in exchange for money SDE seeks ways to align the goals of the company with those of strategic suppliers, then considers ways to November 19, 2003 reduce costs & enhance capabilities. 15
  • 16. SDE Core Goals  Cost Reduction & Avoidance  Low Cost Sourcing  Use of Approved Suppliers  Multiple Sourcing  Technology Alignment  Lead Time Analysis  Risk Mitigation November 19, 2003 16
  • 17. SDE New Product Introduction (NPI) Engineers  Focus on individual programs, participating at the concept phase and acting as a program manger for all Sourcing-related aspects of the design.  Gets input from the SDE Commodity Engineers infused into the design process before parts or suppliers are finalized.  Continue the implementation of changes intended to mitigate risk, lower costs, improve lead-time, and improve profitability.  Follow the design from prototype to product launch November 19, 2003 17
  • 18. SDE Commodity Engineers  Experts in their commodity  Informed as to industry trends, manufacturing techniques, part obsolescence, process control, lead-times, and especially risk mitigation.  Responsible for completing Material Risk Assessments. November 19, 2003 18
  • 19. Key Traits for All Supplier Development Engineers  An analytical mind & good common sense.  A strong working knowledge of Six Sigma, quality methods, and process control.  Good people skills -- The ability & willingness to work toward common goals is essential.  Good negotiation skills -- The ability to create consensus with those who do not report to you is invaluable, as SDEs work as team members just as often as work as team leaders.  The Commodity Engineer should have, or acquire, a strong industry and process knowledge of the commodities for which they are responsible.  The NPI Engineer must have a strong knowledge of Project Management November 19, 2003 19
  • 20. Responsibilities of all SDE Engineers  Interface with Strategic & Tactical Suppliers • Synchronizing Technology Roadmaps • Introduce new programs & manage Early Supplier Involvement • Training on Six-Sigma methodology & Process Characterization • Feedback & Forecasts – Help suppliers prepare for business changes  Cost Savings / Reduction / Avoidance • China Sourcing - SDE Team • Event Driven Cost Reduction with Global Cost Teams November 19, 2003 20
  • 21. Responsibilities of all SDE Engineers  Interface with Development Engineering • Bring commodity focus and expertise ……….. Technology Roadmaps • Work on new programs ………………Deliverables & Assignments • Work with suppliers …….Archive presentations, notes, mtg minutes  SDE Champions Supply Chain Processes • Supplier Capability Assessments (Capability Mapping) • Supplier Technology Assessments (Tech Mappings & Addendums) • Material Risk Assessments (MRA) • Early Supplier Involvement (ESI) • Manufacturing Readiness Reviews (MRR) November 19, 2003 21
  • 22. Key Internal Relationships  Global Sourcing Organization • Commodity Teams, which determine:  Commodity strategy  GTSS Forward Looking Approved Supply List (FLASL)  Cost Reduction Strategy • Source Boards  Formal management review of supplier selection  Centers Of Excellence / Development Engineering • Develop, certify, qualify products for the market  Marketing • Forecasts Demand • Represents customer November 19, 2003 22
  • 23. More Key Internal Relationships  Manufacturing NPI (New Product Introduction) Organization • Program Management (PM) responsibility • Prototype Scheduling • Selection of Contract Manufacturers / Outsourcers  Component Engineering Organization • Component qualification  Purchasing / Buyers • Must Purchase per Approved Supplier List • Tremendous resource for feedback on November 19, 2003 23 deliveries, price, etc.
  • 24. A Supply Chain Job Sounds like Something I’d Like to Pursue… But at most Universities, there is not a fully developed curriculum for Supply Chain Management. What can I do? November 19, 2003 24
  • 25. Essential SC skills from an Industrial Technology Program  Quality systems: 6 Sigma, SPC, Systems Thinking  Negotiation skills  Financial savvy: cost, price, value  Process knowledge  Appreciate diversity in the workplace  People skills: local, regional, national, international November 19, 2003 25
  • 26. Essential SC skills continued  Project management skills  Scheduling, estimating, forecasting  Risk mitigation and assessment  Agile fundamentals  Value engineering fundamentals  Computer skills - electronic media  Leadership and ‘followership’ skills November 19, 2003 26
  • 27. end November 19, 2003 27
  • 28. Further Detail on the Functions of the SDE Team NAIT National Conference Nashville, TN November 2003 Ryan Campbell – Global Supplier Development Engineer, Motorola GTSS Dr. Hank Campbell – Illinois State University
  • 29. SDE Roadmap Highlights • Early DE input from Sourcing MRA • EOL prediction/forecast MRA • Drive use of industry std. components MRA/PPLs • Decrease lead time/supply chain complexity ESI • Drive for multiple sources ESI • Maximize cost avoidance ESI/ e Auctions • Drive for low cost China sources Tianjin/SDE • ASL clean-up and ePIMS roll-out Oracle • Readiness to launch production MRR November 19, 2003 29
  • 30. High Level Sourcing Process DE SDE #3b #4 CE • Material#3a DE/SDE/CE/NPI #1a #2a Mgt Review Capability ESI NPI/PUR Mapping? Proactive SDE-DE Comp Planning Engr #9 Risk Qual Path? #5 FTR Review #6 #1b D&B? PC/ AQP #2b Final New • Oracle Critical Parts / Source Initial Suppliers Part Initial Material Board Qualification Request …ESI? #7 Supplier Risk Selection Assess Training? MRR • Config. Control • PART ECO #2c PC/AQP? #8a Supplier MRR? Specs / #8b Protocol Drawings Etc.? PAF November 19, 2003 30
  • 31. Helpful Web Links Motorola University Supplier Resources November 19, 2003 31