W. P. Carey School of Business
MBA Supply Chain Management Specialization
2007-2008 Corporate Projects
1. Apple, Inc.: Apple Latin America Supply Chain Optimization
2. Boeing Company: SCOR/GreenSCOR Assessment of Boeing Mesa Integrated Defense
Systems Component and Sub-Assembly Operation Supply Chain
3. Cisco Systems, Inc.: Beyond Landed Cost: How do Logistical Alternatives Stack Up?
4. Intel Corporation: Cost/benefit of Supply-chain Duration Reductions in Volatile Demand
5. Honeywell Aviation Aftermarket Services: Honeywell Aerospace Spare Parts Delivery
6. Rockford Corporation: Rockford Fosgate Warehouse and Distribution Solution
7. Temple-Inland: Market Analysis & Risk Assessment for Direct Material (Wax)
Apple Latin America Supply Chain Optimization
Company/Division Apple, Inc., Americas Sales and Operations
Project Problem or Interest in improving the supply chain for Latin America has
Opportunity increased with the recent opening of the online Apple store for
APPLE/WebObjects/mexicostore). At this time we would like to
ensure the successful low cost operation of the Latin America
Supply Chain Operations for outbound product, and would better
like to benchmark and understand the options for supplying Latin
Project Objectives Develop a best-in-class outbound logistics model for Apple
products sold in Latin America.
1. Determine optimal customer service objectives for Latin
2. Minimize total supply chain costs for the Latin American
Primary Project 1. Benchmark Apple's supply chain with other leading computer
Activities/Tasks and electronics companies for Latin America. Identify best-in-
class supply chains. Focus on the following countries in which
product would be shipped: Mexico, Brazil, Puerto Rico,
Argentina, Chile and Columbia. Consider all Latin American
countries as potential hub sources of shipments, in addition to
direct shipments from OEM supplier in China, US warehouses and
2. Identify the optimal supply chain solutions for each of the
countries listed. Be sure to include tax implications in your
3. Once optimal supply chains are identified, research
requirements (import, export, customs paperwork, etc.) and
leading transportation carriers for the movement of product into
4. Develop a reverse logistics model for each of the countries with
product ultimately being returned into US.
Anticipated 1. Presentation to Apple Supply Chain officers in Austin on results of
Deliverables above tasks
2. Tool for evaluating Latin American supply chain.
Special (For example, non-disclosure agreement, drug testing, U.S.
Requirements for citizenship):
Student Team Desire but don’t require Spanish and Portuguese language
Boeing: SCOR/GreenSCOR Assessment of Boeing Mesa Integrated
Defense Systems (IDS) Component and Sub-Assembly Operation
Company/Division The Boeing Company
Integrated Defense Systems, Rotorcraft
5000 E. McDowell Rd
Mesa, AZ 85215
Project Problem or The Boeing Company in Mesa, Arizona is home to the AH-64D
Opportunity Apache Longbow, the premier multi-role combat helicopter, as
well as a manufacturing center for high tech aviation electrical
sub-assemblies, a developer of advanced rotorcraft systems and a
leader in aviation simulation.
A significant portion of the Mesa facility’s production base is short
run, highly competitive products that depend on our ability to
rapidly respond to new customer requirements. To maintain and
grow this business in today’s environment of limited supplier
capacity and lengthening lead times it is crucial that we have a
clear understanding of our supply chain competitive strengths and
weaknesses, and where we can best leverage improvement
Additionally, understanding the environmental impact of our supply
chain processes, and being able to quantify reductions in our
environmental footprint is necessary when considering new business
acquisition under our current environmental requirements, and
when looking at how we can continue to reduce our overall
Project Objectives Reduce supply chain costs by providing a baseline supply chain
assessment, from which targeted improvement initiatives can be
identified and quantified, and booked into the long range business
Primary Project Identify where the supply chain is competitively advantaged and
Activities/Tasks disadvantaged, and consequently where we can focus our
marketing and business acquisition strategy to leverage the
advantages, and where we need to develop and how we prioritize
our improvement projects to increase our new business acquisition
Provide an initial view of the environmental footprint of our supply
chain processes. Identify opportunities to reduce our footprint, and
recommend a method by which we can evaluate
impact/changeability of supply chain environmental
Validate the usefulness and practical application(s) of the SCOR
and GreenSCOR models.
Specific steps of the analysis include:
1. Select and propose the elements of a SCOR assessment that
would be appropriate to meet the project objectives.
2. Research and propose a GreenSCOR assessment approach.
3. Develop the project plan for a SCOR/GreenSCOR analysis of a
segment of the Boeing Mesa supply chain. Include data and
resource (personnel and budget) requirements. Present to the
sponsor and business unit director for approval to execute.
4. Perform the SCOR/GreenSCOR assessment as defined and
approved in the project plan. Operate within budget and
5. Present the results of the assessment, and any associated
recommendations, in both report and presentation format to the
sponsor, business unit director, and site leadership team, and to
an enterprise level materials management leadership team.
6. Submit the appropriate elements of the assessment to the APQC
SCORMark database for additional benchmark evaluation.
Anticipated • A baseline model from which Boeing Mesa can prioritize and
Deliverables quantify supply chain improvement opportunities.
• Recommendations for changes to our supply chain processes
that can reduce our direct and overhead costs, increase our
competitive advantage, and reduce our environmental
footprint. Quantification of the potential cost, cycle time, and
environmental impact credits improvement. This may include,
but not be limited to, changes in:
• Recommendation as to continued use and/or expansion of
the SCOR/GreenSCOR models as viable supply chain
assessment, benchmark, and improvement tool.
• Feedback as to the overall project experience, and the value
to you as a team and as individuals in meeting your personal,
professional, and career development expectations.
Recommendations on how we at Boeing might improve our
program for providing industry experience to the next year’s
Special • US Persons status required
Requirements for • Non-disclosure agreement (presentations outside of Boeing
Student Team containing information relative to this project must be
approved by the sponsor and Boeing Mesa communications)
• Project members badged for access to Boeing – Mesa facility
• Travel to selected sites. Tentatively Philadelphia and St Louis
• Team presentation to site senior management
• Team presentation to enterprise steering team, and associated
process action teams and councils.
Cisco: Beyond Landed Cost: How do Logistical Alternatives
Company/Division Cisco, World-Wide Manufacturing, EMS Supply Chain Management
Project Problem or Cisco utilizes an internally developed landed cost tool that allows us
Opportunity to make informed supply chain decisions. The tool’s primary
purpose is to provide a relative cost and risk comparison across
various supply chains that we could choose to build our products.
Some of its key considerations include:
Transformation cost at the various EMS partners
Direct Fulfillment cost at the various EMS partners
Logistics costs between EMS partner sites
Logistics costs to various SLC sites, based on customer
demand (theater distribution)
Taxes / Duties
Inventory carrying cost
Risk (index based on site, financial, geography, natural
hazard, geo-political, etc.)
The output of this tool shows a relative comparison of the costs and
trade-offs between choosing one site over another.
In supply chain management cost is king. However, there are
many hidden costs that are less obvious or more difficult to quantify
than ones listed in the key considerations above. Cisco aspires to
supplement our future supply chain analysis capabilities with
additional intelligence that exposes some of these “hidden costs”,
so that we can integrate them into our overall analysis process.
For the purpose of this project, the “hidden cost” that we want to
expose is “carbon footprint”. The scope of this assessment should
be limited to the logistics options associated with moving our
products throughout our supply chain, as depicted below.
Printed Circuit Direct Fulfillment /
Board Assembly Final Assembly & Source SLC Destination SLC
Supplier #2 (~500)
(PCBA) Test (DF/FA&T)
Project Objectives Optimize total supply chain costs for Cisco, including the costs of
The primary output of this project should be a model that allows
Cisco to compare the carbon footprint of various supply chain
alternatives. For example, Cisco often compares different supply
chain combinations which might include PCBA in China, and DF in
North America, vs. PCBA and DF in North America. We are
currently unable to quantify the carbon impact of a product
traveling across the ocean on a boat to the same product
traveling domestically on a truck. Alternatively, the same route
might include air transportation instead of boat, or air
transportation as a percentage of total transportation between
China and North America.
Primary Project 1. Analyze the supply chain of a given product
Activities/Tasks a. Choose between 1-3 products
b. Map all supply chain nodes (current state and
2. Apply different modes of transportation (plane, boat, truck,
rail) between each node, then quantify:
a. Transit time
b. Carbon output
c. “Cost of carbon output” for each alternative
Anticipated 1. A report that compares
Deliverables a. The carbon output of various modes of transportation,
with stated assumptions
b. Environmental “costs” of each transportation mode
c. Environmental impact of JIT manufacturing; e.g., with
JIT we would expect more frequent shipments and
partial loads. How would this stack-up against fewer
shipments and full loads?
2. List of additional sources of carbon output for consideration
3. A scalable model that quantifies the carbon output of
various modes of transportation and associated costs.
Special Non-disclosure agreement
Requirements for Ownership rights to any model developed as part of this project
Intel: Cost/benefit of supply-chain duration reductions in
volatile demand markets
Project Problem or Build a model that we could use to quickly understand the financial
Opportunity impact – How much does it make sense to pay for cycle time
• What is the value of a day saved in the capital equipment
• Does the value of this day change as we move through the
• Where is the sweet spot?
• Should we accept equipment at the very last moment,
resulting in a need for overtime and accelerated schedules?
• Is an earlier acceptance better financially (assuming we
know the tool is required)?
• How should be make decisions on shipping alternatives – low
cost, slow TPT vs. high cost, fast TPT?
Project Objectives Define how to make effective trade-offs between cost and velocity
which would result in supply chain velocity improvements.
Primary Project • Define the current decision making methodology
Activities/Tasks • Build a velocity ROI model
• Apply the model to a particular toolset
• Model several potential outcomes and decisions
• Recommend application of model to additional situations
Anticipated • Provide a tool/algorithm that can be used to make ROI
Deliverables based decisions when confronted with choice that require
trading $ vs. velocity.
Special (For example, non-disclosure agreement, drug testing, U.S.
Requirements for citizenship)
Student Team Non-disclosure agreement would be required
Honeywell Aerospace Spare Parts Delivery Improvement
Company/Division Honeywell Aviation Aftermarket Services
Project Problem or Honeywell Aerospace Spares is a multi-billion dollar business global
Opportunity distribution business. We have undergone many system wide
changes in the last 6 months including a new planning system, and
order management system, as well as the separation our European
Distribution Business in a regionalization strategy. While each of the
changes is directionally correct they have impacted On Time
Project Objectives Improve Customer Service by 5% globally by identifying barriers to
historical performance levels and leveraging opportunities for
The solution space should be on the Systemic level, versus specific
material availability or Supplier Performance.
Primary Project 1. Review and map current high level value chain including
Activities/Tasks performance metrics.
2. Identify potential failure modes and severity.
3. Make recommendations for improved performance
requirement based on feasibility, cost, and benefit.
4. Process map the recommended alternative and create the
associated work instructions.
5. Develop an implementation plan for the high value activities
including required tasks and resources.
6. Pilot selected “quick payoff ” actions to the value stream.
Anticipated 1. Analysis of potential alternatives for daily replenishment, and a
Deliverables defensible recommendation for a replenishment strategy.
2. A detailed process map and work instructions supporting the
3. A Spares on time delivery improvement strategy implementation
plan, and control system.
4. Implementation plan for agreed quick payoff pilot activities.
Special Due to the nature of this Spares distribution operation US citizenship
Requirements for is required.
Rockford Fosgate Warehouse and Distribution Solution
Company/Division Rockford Corporation
Project Problem or Rockford Fosgate is a Tempe, AZ. based designer, and
Opportunity manufacturer of consumer audio products, including auto and
truck audio equipment. Rockford is currently shifting its US
manufacturing to an outsourced importing model, primarily from
Asia. Thus, we are currently transforming from a business model as
the primary manufacturer of their equipment to a design &
outsourcing business model, while maintaining some manufacturing
We are currently attempting to determine the optimal distribution
model for our organization for the future, given this transformation in
our business model. We would like to evaluate whether our current
configuration is ideal given the changes in our business model. We
would like the project team to evaluate our current distribution
model and then determine the most cost effective approach to
our multi warehouse system for the future. Determining the most
advantageous approach could yield substantial savings in fixed
costs to the company, and could yield saving of $.5 million or more.
Project Objectives Evaluate the most cost effective approach to warehousing and
product distribution resulting in improved financial performance
and more efficient supply chain utilization.
Primary Project Evaluate current multi-warehouse distribution systems and
Activities/Tasks determining the most cost effective approach for the company.
(i.e., continue with current warehousing structure, utilize one of our
existing warehouses and close the other, eliminate both
warehouses and establish a new facility more centralized in the
United States, use third party warehousing, or any combination of
1. Collect and evaluate current product demand and shipping
data and determine the cost of the “as-is” system.
2. Using current forecast data develop cost and service level
estimates of a number of alternative solutions for the future,
and a tool for analyzing these solutions.
3. Determine the sensitivity of these solutions to changes in the
4. Present the preferred and alternative solutions along with the
tool developed to analyze these solutions.
Anticipated Cost and distribution analysis outlining the pros and cons of the
Deliverables model(s) presented, and a recommendation from the group on the
preferred warehousing structure. In addition, provide a brief
summary outlining reasons for not choosing the structures previously
Special (For example, non-disclosure agreement, drug testing, U.S.
Requirements for citizenship)
Student Team Rockford is a public company, and therefore we require non-
Temple-Inland: Market Analysis & Risk Assessment for Direct
Company/Division Temple-Inland / Strategic Sourcing
Project Problem or
Temple-Inland Inc. (NYSE:TIN) is headquartered in Austin, TX. We
are working together as one company to create superior and
sustainable value for shareholders, customers and employees. We
have made significant progress implementing major initiatives to
lower costs, improve operational efficiency, increase asset
utilization and drive return on investment. We are performance-
driven, and our goal is to have the highest ROI in our industry.
As of January 2008 we will have two core operations at Temple-
Inland; corrugated packaging and building products.
Our Corrugated Packaging operation has six containerboard mills
and can effectively serve our customers through our integrated -
nationwide system of converting facilities. Corrugated Packaging is
the largest segment of the paper market.
The Building Products operation manufactures a diverse line of
products for new home construction and for repair and remodeling
Our business philosophy is focused - we are a company on a
journey to be the best by consistently exceeding customer
expectations, maximizing assets, lowering operating costs and
Temple-Inland will spend approximately $40 million in 2007 on Wax
for use in its Corrugated Packaging (Box Plants) and Building
Products (Panel and Gypsum) operations.
Refined Petroleum Wax (RPW) is a by-product of lubricants
manufactured by crude oil refining. Of the 654 Refineries in the
world, only 30 continue to produce RPW. The disappearance of
heavy crudes along with technology changes in the manufacturing
of lubricants has resulted in a reduction in the worldwide
production of petroleum based waxes.
Temple-Inland needs to develop and implement a strategic souring
plan that ensures the uninterrupted supply of wax, at a fair and
reasonable value, to its Corrugated Packaging and Building
Project Objectives Ensure the long term supply of wax over upcoming XXX years to all
operations to meet all demand requirements at the lowest total
Primary Project Temple Inland has a clearly defined 5 Step Strategic Sourcing
Activities/Tasks Process. Completion of a Market Analysis and Risk Assessment will
satisfy the requirements for the first two steps in this process.
• Meet with Temple-Inland stakeholder team to gain an
understanding of volume requirements, locations, logistical
issues, historical spend, current and former suppliers, and
other issues pertinent to the sourcing of Wax.
• Complete a Category Strategy Profile for Wax:
a. External Analysis:
1. Industry Characteristics (Market Size, Market Segments,
2. Value Chain Process Map
3. Five Forces Analysis
b. Internal Analysis:
1. Volume Analysis (By Supplier, By Business Unit, etc.)
2. Internal trend Analysis
3. SWOT Analysis
c. Category Strategy
1. Risk / Opportunity Matrix
2. Strategy Project Plan
• Interaction of team with key Temple-Inland personnel will
include VP of Strategic Sourcing, Director of Sourcing , e-
Sourcing Manager, and Sourcing Manager of Production
Anticipated • Category Strategy Profile for Wax
Deliverables • Recommendation of how to purchase Wax (spot market or
• Risk Assessment – align our risk tolerance with the needs of the
Special Non-disclosure agreement. Approximately two trips to Austin, TX,
Requirements for for information collection and management presentations.