Automate Performance Measurement to Drive Profitability_Plexus
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Systematic structuring of spend data set for automating analytics and procurement performance measurement to drive key business performance indicators such as cost reduction, profitability analysis, margin review, regional consolidation and best-pricing analysis.
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Automate Performance Measurement to Drive Profitability_Plexus
- 2. Automate Performance Measurement To Drive Profitability Ron Koepke Director - Global Material Costing, Plexus
- 4. Manufacturing solutions l Conceptualize l Design l Commercialize l Manufacture l Fulfill l Sustain l ENGINEERING SOLUTIONS MANUFACTURING SOLUTIONS • Optimized sources of supply • Plexpedite process • Counterfeit parts prevention • Strategic partnerships • Collaborative modeling tools • Risk mitigation tools • Supplier development • Component lifecycle management • Logistics management Integrated Supply Chain Assembly Spectrum Advanced Fulfillment/Sustaining Quality Systems/ Solutions Processes & Tools Solutions Compliance • Microelectronics • Integrated manufacturing • Configure to Order • ISO 9001 • JGMP solutions • Direct order fulfillment • ISO 14001 • TL 9000 • PCBA • Higher Level Assembly • Lean Sigma to drive • Reverse/forward logistics • OHSAS 18001 • ISO 13485 continuous improvement • System Integration • 3rd Party Logistics • REACh • AS 9100 • Focused factories • Mechatronics • Repair • RoHS/WEEE • NADCAP • Visual manufacturing • UL, CSA, etc. • ITAR/EAR • Refurbishment • Consistent global toolsets • SFDA (China) • C-TPAT • Replenishment • Failure analysis • QSR compliant • FAR (FDA Class II & III) Optimized Manufacturing Engagement Solutions
- 5. Complete Assembly Spectrum l Conceptualize l Design l Commercialize l Manufacture l Fulfill l Sustain l MicroElectronics Printed Circuit Basic System Mechatronic Assembly Board Assembly Assembly Integration Assembly Broad manufacturing capabilities and experience drives optimized solutions • Prototype through finished product • Cost optimization through Focused Factory model • Global technology development with global solution deployment • Controlled product flow with integrated data collection • Test and inspection solutions integrated into manufacturing • Well-allied with the electronic manufacturing industry
- 6. Higher Complexity Lower Complexity Customer Service: highly optimized, value-add Customer Service: fit into ‘standard’ service model Quality: stringent regulatory, reliability Quality: less stringent regulatory Manufacturing: mid-low volume, agility, flexibility Manufacturing: high volume, velocity Supply Chain: complex, horizontal Supply Chain: vertical, narrow Footprint: regional, integrated Footprint: huge low cost scale Financial Model: low capital turnover Financial Model: high capital turnover
- 7. Delivering solutions to diverse markets Our cross-sector experience provides an innovative perspective to your end market need Medical 21% Networking/ Communications 39% Agile, flexible manufacturing High-Tech, Reliable Full system build Industrial/ Regulatory requirements Global direct order fulfillment Commercial Hundreds of units / month Defense/ New Product Introduction 31% Customer for 20+ years Security/ After Market Service Aerospace 9% Very high reliability Rapid prototyping, board level Thousands of units/month mechanical design PCBA , service & repair LVHM PCBA and HLA manufacturing Functional and burn-in tests * Based on Q2F12
- 8. Our Market Sectors Exclusively focused in market sectors that require mid-to- low volume higher complexity value stream solutions Networking/ Medical Industrial/ Defense/Security/ Communications Commercial Aerospace Enabling our customers to grow market share
- 9. Our Market Sectors Exclusively focused in market sectors that require mid-to- low volume higher complexity value stream solutions Networking/ Medical Industrial/ Defense/Security/ Communications Commercial Aerospace Enabling our customers to grow market share
- 10. Our Market Sectors Exclusively focused in market sectors that require mid-to- low volume higher complexity value stream solutions Networking/ Medical Industrial/ Defense/Security/ Communications Commercial Aerospace Enabling our customers to grow market share
- 11. Plexus Global Locations Supporting your end-markets
- 12. Sector portfolio Management Revenue per Cust. Revenue ($M) ($M) # Cust. $50 $2,500 500 $2,231 $45 450 $2,013 $40 $2,000 400 $1,842 $35 $1,617 350 $1,546 $1,500 $1,461 $30 300 $884 $1,062 238 $1,229 $25 226 $808 250 $1,041 208 $20 $1,000 161 130 200 $16.7 $13.3 $15.5 $15 132 107 131 134 129 150 124 $500 $13.6 $10 $12.5 $12.1 100 $6.2 $4.4 $3.7 $9.1 $5 $3.4 50 $0 $0 0 F01 F02 F03 F04 F05 F06 F07 F08 F09 F10 F11 Number of Customers Revenue per Customer * Street Consensus Estimates ** Assumes 15% YoY Growth
- 13. Initial objectives 1. Diversity: Minority, women, veterans, etc. 2. Compliance: Ocean ship, dumping, REACH. ROHS 3. Geographic risk (hurricane, earthquake, geo-political) 4. Profit Margin Reporting 5. Cost Savings Reporting 6. Consolidation/leverage opportunities 7. 2nd tier supplier 8. Commodity pricing (steel, Cu, etc.) 9. Raw material 10. Market conditions 11. Supplier Rating System – OTD, Quality, LPI 12. D&B Data 13. Dashboard 14. Currency Fluctuations 15. Auto classification 16. Cash cycle analysis by supplier
- 14. Zycus challenges 125+ OEM customers, all unique with their own applications Nearly 200,000 customer part numbers (CPN) Each CPN could have up to 12 MPN’s associated with it. Many MPN’s are common to multiple CPN’s Need to meet regulatory requirements in multiple industries Complex calculations for cost reduction Multiple currencies, multiple source systems
- 15. Project Needs Global aggregation at the manufacturer part number level Vendor consolidation and leverage Report of like manufacturer part numbers with different prices AP terms normalization Price indexing to market Cost reduction reporting – Enhance and replace current spreadsheet reports – Replace existing older tools – Analyze margin impact Currently have no user dashboard capabilities Site Customer Team visibility into spend Commodity code accuracy Better visibility into indirect spend Diversity spend
- 16. Business deliverables Generate more savings and compliance (Cost Down Report) Global inventory visibility ROCE-lite by supplier (Inv$-AP$) Leaner component contracting process Reduced vendor base Improve net margin Near real time metric updates (Dashboard by Group)
- 17. Report of Like Manufacturer Part Numbers With Different Prices Spend In USD Average invoice unit M F G Pa r t N o Ple x u s Pa r t price 32N5210 802796 - 480 2,441,918.17 85.58 535887 - 480 1,302,452.96 84.61 80602002265AB 948615 - 380 4,044,895.37 493.52 947655 - 380 5,796,395.00 560.07 80614003591AB 1054400 - 380 3,217,364.88 569.77 872904 - 370 2,085,900.00 1,020.00 91R40008-66 971901 - 370 15,020.64 2.78 889157 - 680 5,436,463.25 3.93 1480B1K900 601500 - 480 6,745,122.72 616.32 514077 - 603 152,936.14 564.34 M45T2-T94-0 808397 - 605 148,630.00 835.00 708496 - 605 2,830,115.00 850.00 878899 - 605 1,655,805.00 835.00 5-260P-PF-M02-F 701737 - 603 205,303.76 51.25 855076 - 380 3,878,628.39 47.61 2S130F780I4 523490 - 680 4,919,537.60 394.86 2S180F1508C3 862167 - 830 1,865,330.00 714.47 762169 - 830 4,292,015.20 316.95 601339 - 603 9,236,107.50 870.45 BR-772BWZ 955072 - 380 4,278.57 588.48 772084 - 403 41,846.17 525.70 651180 - 605 5,341,794.00 286.06 641882M-FC25000 575644 - 400 5,460.00 54.60 909591 - 480 4,695,952.74 32.19 49H16M36FM-25:A 728174 - 605 150,000.00 30.00 621174 - 480 6,854,216.27 22.76 1028171 - 480 1,104,000.00 21.75 2VP50-6FF1152 302377 - 605 860,702.76 274.34 102476 - 605 745.00 745.00 385867 - 480 4,219,517.09 273.94 4VSX35-10FF668 616473 - 480 6,110,113.20 96.29 621184 - 480 138,836.36 190.24 543482 - 603 5,317,872.02 114.68
- 18. Vendor Consolidation And Leverage MEASURES Spend In USD AMER APAC EMEA Par ent Vendor 281852 94,697,818.72 83,178,405.38 6,740,928.88 282419 59,990,999.96 56,193,026.02 8,866,796.66 578543 20,742,318.24 31,129,974.74 1,005,063.99 637217 18,178,609.24 9,870,889.33 713,432.19 478544 16,688,775.52 5,160,539.13 1,958,830.72 637216 2,724,168.14 14,352,197.44 124,379.85 678545 4,841,935.60 8,574,163.43 36,290.39 578546 1,907,783.66 9,971,249.23 5,898.85 281853 4,158,929.65 7,417,904.58 158,225.99 378547 2,931,140.24 7,067,983.45 138,497.00 637215 1,771,496.91 7,644,731.66 4,135.31 631591 4,157,402.58 4,685,564.93 423,931.58 637214 3,675,875.59 3,569,888.60 254,561.54 558207 10,028.66 7,364,241.48 6,032.95 278548 1,161,776.93 5,775,945.83 23,084.44 637213 1,450,263.87 5,124,408.94 15,312.20 631591 128,702.15 6,223,904.59 8,342.91 637212 3,899,775.89 726,239.35 1,470,930.61 637211 2,200,524.83 2,794,143.90 299,477.01 378549 985,053.90 3,939,756.52 273,249.63
- 19. Cost Savings
- 20. AP Analysis
- 22. Business Deliverables Achieved To Date Generate more savings and compliance (Cost Down Report) Leverage spend on common MFG part numbers Cost reduction cube Reduced vendor base Mfg part number analysis Improve net margin Supplier consolidation AP improvement analysis Cost reduction cube AP Analysis
- 23. Concluding Thoughts Zycus solution implementation driving improvements in data integrity in ERP system Forces detailed process analysis and improvement Time to detail data is quick, updated weekly Dashboard capabilities enables KPI’s be to highly visible Can log-in from off-site, anywhere the internet is available Meeting prep time is reduced with one consolidated spend analysis tool Can set standard reports and push them to peers
Editor's Notes
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- NOTE: This slide is constructed at a high-level to speak to our Manufacturing Solutions. Depending on the customer’s needs/requirements, various messages within should be spoken to by the speaker (again, ensure the message is tailored to selling a solution to your audience).KEY MESSAGES TO DELIVER VIA ANIMATIONInitial slide (no click):At Plexus, we deliver optimized Product Realization solutions; therefore, we do not have a standard service model for our customer engagements. We access common building blocks in order to design solutions that makes sense for our customer’s market and service level needs. As such, we have a wide variety of capabilities, service offerings and execution strategies that we will cover in today’s overview. Our Integrated Supply solutions cover the entire Product realization spectrum. The earlier in the Value stream that it is engaged- the more impactful it cane be. We will explore this in more detail in the following slide. e being with our integrated Supply Chain solutions (advance to next slide)… Assembly Spectrum solutions encompass all key capabilities and will be covered further later in the presentation.Advanced Processes and tools are based on a platform of common practices which we will expand on later as we discuss the theme of Intelligent Alignment.Fulfillment/Sustaining Solutions are a critical area of capability as we create best Total Cost of Ownership solutions. Quality systems and Compliance are part of our foundation in Customer Service Excellence. On this view you see a representative sample of our Quality and Compliance methodologies and certifications.
- KEY MESSAGES TO DELIVER VIA ANIMATIONInitial slide (no click):We have a complete assembly spectrum of capabilities to deliver your manufacturing solution. Our broad base of experience and technologies within our chosen market sectors enables us to leverage across other disciplines to drive the latest technologies and industry best-practices. From a scale of MicroElectronics to large form factor products within Mechatronics, we have the depth of experience to meet your product needs. [Note: add tailored comments with our scope of experience that directly relates to the customers’ product type]We manufacture mid-low volume, higher complexity programs that range from prototyping to finished product solutions, all with an approach to optimize your cost through our unique focused factor model that offers a dedicated team driving your program success. We are focused to provide you with leading edge technology development and solution deployment. Our system driven processes ensures materials and products flow through the correct process with data acquisition and relationship tracking. Before your product ships, we ensure robust testing and inspection requirements are integrated into our process to control defects and deliver quality product to your end markets. We are able to stay current on technologies and requirements to meet your needs because of our strong level of active participation in the industry (SMTA, IMAPS, etc.)
- ***Updated 07 MAR 2012Print Version
- KEY MESSAGES TO DELIVER VIA ANIMATIONInitial slide (no click):COMING SOON
- KEY MESSAGES TO DELIVER VIA ANIMATIONInitial slide (no click):We are experts and exclusively focused in our key market sectors.We understand market needs within these sectors to enable our customers to grow market share.Our expertise across market sectors provides us with an advantage to cross-share advanced technologies, processes, etc. First and Second Click:Creates the ability for the speaker to discuss some of these products in depth to highlight Plexus capabilities. EXAMPLES HIGHLIGHTED INCLUDENetworking/Communications1. Customer: JuniperProduct description: The T640 Core Router provides scalable core routing at a fraction of the size of competitive offerings. Each of its eight slots delivers 40 Gbps and is scalable beyond that capacity.Plexus site(s): Neenah 1, Riverside2. Customer: iDirectProduct description: The Evolution® XLC-10 line card features the DVB-S2/ACM on the outbound making it ideal for broadband applications such as Internet and VPN access to enterprise networks, along with real-time VoIP and video conferencingPlexus site(s): BoisePlexus contribution:3. Customer: ArrisProduct description: The ARRIS C4® CMTS Release 7.1 system is a carrier-class DOCSIS® 3.0 CMTS. It allows an operator to cost effectively deploy DOCSIS, PacketCable™, DSG/ADSG, and PCMM servicesPlexus site(s): Chicago, XiamenPlexus contribution: Medical: QIAGEN- (product name): insert Plexus capabilities GE Ultrasound- (product name): insert Plexus capabilities St. Jude- Home Monitoring Device: insert Plexus capabilitiesIndustrial/Commercial: Customer: LTX-Credence Product Description: Automated Semi-test equipment Site: Penang Riverside Plexus contribution: Alpha/beta build, PCBA, basic assembly, system integration, direct order fulfillment2. Customer: Onstream Product Description: Smart Utility Meter Site: Kelso Plexus contribution: Prototype, RF design, mechanical design, Dfx, test strategy, alpha/beta build, PCBA, system integration3. Customer: Coca Cola Company Product Description: Beverage dispensing unit Site: Appleton 2, Juarez Plexus contribution: Verification, prototype, unit cost estimation, specification, mechanical design, mechatronics, material sourcing, Dfx, capacity planning, alpha/beta build, configure to order, design maintenanceDefense/Security/Aerospace:Customer: Trapeze (Allen Vanguard) Product description: IED Jammer Plexus site(s): Neenah 1Plexus contribution: Aftermarket accessories, Service & Repair2. Customer: General Dynamics (GD-UK – Hastings, UK)Product description: Bowman radio program – land based radios in vehicles for British Armed forcesPlexus site(s): Kelso Plexus contribution: Primarily Board Level manufacturing (about 30 different cards), some limited sub module builds,Test solutions,Upgrade and repair services3. Customer: BAEProduct description: Thermal Weapon SitesPlexus site(s): Neenah 1 for production, Neenah Design Center for Engineering Solutions Plexus contribution: PCBA, service & repair*, Hardware and Software Product Design*repair activity is limited to Warranty repair
- KEY MESSAGES TO DELIVER VIA ANIMATIONInitial slide (no click):We are experts and exclusively focused in our key market sectors.We understand market needs within these sectors to enable our customers to grow market share.Our expertise across market sectors provides us with an advantage to cross-share advanced technologies, processes, etc. First and Second Click:Creates the ability for the speaker to discuss some of these products in depth to highlight Plexus capabilities. EXAMPLES HIGHLIGHTED INCLUDENetworking/Communications1. Customer: JuniperProduct description: The T640 Core Router provides scalable core routing at a fraction of the size of competitive offerings. Each of its eight slots delivers 40 Gbps and is scalable beyond that capacity.Plexus site(s): Neenah 1, Riverside2. Customer: iDirectProduct description: The Evolution® XLC-10 line card features the DVB-S2/ACM on the outbound making it ideal for broadband applications such as Internet and VPN access to enterprise networks, along with real-time VoIP and video conferencingPlexus site(s): BoisePlexus contribution:3. Customer: ArrisProduct description: The ARRIS C4® CMTS Release 7.1 system is a carrier-class DOCSIS® 3.0 CMTS. It allows an operator to cost effectively deploy DOCSIS, PacketCable™, DSG/ADSG, and PCMM servicesPlexus site(s): Chicago, XiamenPlexus contribution: Medical: QIAGEN- (product name): insert Plexus capabilities GE Ultrasound- (product name): insert Plexus capabilities St. Jude- Home Monitoring Device: insert Plexus capabilitiesIndustrial/Commercial: Customer: LTX-Credence Product Description: Automated Semi-test equipment Site: Penang Riverside Plexus contribution: Alpha/beta build, PCBA, basic assembly, system integration, direct order fulfillment2. Customer: Onstream Product Description: Smart Utility Meter Site: Kelso Plexus contribution: Prototype, RF design, mechanical design, Dfx, test strategy, alpha/beta build, PCBA, system integration3. Customer: Coca Cola Company Product Description: Beverage dispensing unit Site: Appleton 2, Juarez Plexus contribution: Verification, prototype, unit cost estimation, specification, mechanical design, mechatronics, material sourcing, Dfx, capacity planning, alpha/beta build, configure to order, design maintenanceDefense/Security/Aerospace:Customer: Trapeze (Allen Vanguard) Product description: IED Jammer Plexus site(s): Neenah 1Plexus contribution: Aftermarket accessories, Service & Repair2. Customer: General Dynamics (GD-UK – Hastings, UK)Product description: Bowman radio program – land based radios in vehicles for British Armed forcesPlexus site(s): Kelso Plexus contribution: Primarily Board Level manufacturing (about 30 different cards), some limited sub module builds,Test solutions,Upgrade and repair services3. Customer: BAEProduct description: Thermal Weapon SitesPlexus site(s): Neenah 1 for production, Neenah Design Center for Engineering Solutions Plexus contribution: PCBA, service & repair*, Hardware and Software Product Design*repair activity is limited to Warranty repair
- KEY MESSAGES TO DELIVER VIA ANIMATIONInitial slide (no click):We are experts and exclusively focused in our key market sectors.We understand market needs within these sectors to enable our customers to grow market share.Our expertise across market sectors provides us with an advantage to cross-share advanced technologies, processes, etc. First and Second Click:Creates the ability for the speaker to discuss some of these products in depth to highlight Plexus capabilities. EXAMPLES HIGHLIGHTED INCLUDENetworking/Communications1. Customer: JuniperProduct description: The T640 Core Router provides scalable core routing at a fraction of the size of competitive offerings. Each of its eight slots delivers 40 Gbps and is scalable beyond that capacity.Plexus site(s): Neenah 1, Riverside2. Customer: iDirectProduct description: The Evolution® XLC-10 line card features the DVB-S2/ACM on the outbound making it ideal for broadband applications such as Internet and VPN access to enterprise networks, along with real-time VoIP and video conferencingPlexus site(s): BoisePlexus contribution:3. Customer: ArrisProduct description: The ARRIS C4® CMTS Release 7.1 system is a carrier-class DOCSIS® 3.0 CMTS. It allows an operator to cost effectively deploy DOCSIS, PacketCable™, DSG/ADSG, and PCMM servicesPlexus site(s): Chicago, XiamenPlexus contribution: Medical: QIAGEN- (product name): insert Plexus capabilities GE Ultrasound- (product name): insert Plexus capabilities St. Jude- Home Monitoring Device: insert Plexus capabilitiesIndustrial/Commercial: Customer: LTX-Credence Product Description: Automated Semi-test equipment Site: Penang Riverside Plexus contribution: Alpha/beta build, PCBA, basic assembly, system integration, direct order fulfillment2. Customer: Onstream Product Description: Smart Utility Meter Site: Kelso Plexus contribution: Prototype, RF design, mechanical design, Dfx, test strategy, alpha/beta build, PCBA, system integration3. Customer: Coca Cola Company Product Description: Beverage dispensing unit Site: Appleton 2, Juarez Plexus contribution: Verification, prototype, unit cost estimation, specification, mechanical design, mechatronics, material sourcing, Dfx, capacity planning, alpha/beta build, configure to order, design maintenanceDefense/Security/Aerospace:Customer: Trapeze (Allen Vanguard) Product description: IED Jammer Plexus site(s): Neenah 1Plexus contribution: Aftermarket accessories, Service & Repair2. Customer: General Dynamics (GD-UK – Hastings, UK)Product description: Bowman radio program – land based radios in vehicles for British Armed forcesPlexus site(s): Kelso Plexus contribution: Primarily Board Level manufacturing (about 30 different cards), some limited sub module builds,Test solutions,Upgrade and repair services3. Customer: BAEProduct description: Thermal Weapon SitesPlexus site(s): Neenah 1 for production, Neenah Design Center for Engineering Solutions Plexus contribution: PCBA, service & repair*, Hardware and Software Product Design*repair activity is limited to Warranty repair
- KEY MESSAGES TO DELIVER VIA ANIMATIONInitial slide (no click):We have a balanced regional footprint to support end-market needs.We have Engineering and Manufacturing capabilities in all regions.We are continuously focused on expansion opportunities; current focus includes:Europe: Darmstadt Design Center (operational March 2011) Oradea Manufacturing Site (Greenfield replacement to current leased facility, under negotiation with expectations announce construction start in F12)Asia Pacific: Penang-Islandview Manufacturing Site (operational early F12) Xiamen 2 Manufacturing Site (Operational mid-late F12)Americas: Expected growth in North America, no current planned activity for expansion. May update certain facilities.REFERENCE NOTESManufacturing Square Footage by RegionAmericas: 723,088Europe: 145,053Asia Pacific: 604,880F10 Revenue Breakdown by RegionAmericas: $956,510 Europe: $94,513Asia Pacific: $938,921