20140928 sdsc for apics_ibm_thorsten schroeer final v2

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Here the my presentation I did today in Wiesbaden for the Supply Chain Council / Apics (www.supply-chain.org) Topic: The Future of Supply Chain. Great event with a really packed conference room ca. 100 attendants across Europe.

Business

The New Software Defined Supply Chain
© 2014 IBM Corporation
Thorsten Schroeer
IBM Director Electronics Industry Europe
thorsten.schroeer@de.ibm.com
Wiesbaden, September 2014

People can have the Model T in any
© 2014 IBM Corporation
color – so long as it’s black.
HENRY FORD

Ford Automotive Output, 1901-1914
$5 Daily Wage Introduced
Assembly time down to 1.5 hours
© 2014 IBM Corporation
Shift to moving
production line
Model T Introduction
Assembly Time Per Car: 14 Hours

Ford Automotive Output, 1901-1924
© 2014 IBM Corporation

STANDARDIZATION MODULARIZATION DIGITIZATION
© 2014 IBM Corporation

3 KEY RULES
OF PRODUCT DESIGN
CUSTOM PARTS STANDARD
COMPONENTS ASSEMBLY MODULES
MECHANICAL CONTROLS DIGITAL
© 2014 IBM Corporation

3 CHARACTERISTICS
OF INDUSTRY STRUCTURE & TRADE
Economies of Scale BIG
© 2014 IBM Corporation
Multi-Tier Supply Chains COMPLEX
Low Cost Supply Chains GLOBAL

3 NEW
TECHNOLOGIES
3D PRINTING INTELLIGENT ROBOTICS OPEN SOURCE
© 2014 IBM Corporation

STANDARDIZATION
3D PRINTING
NO ECONOMIES
OF SCALE
COST PER UNIT VOLUME PRINTED
$/CUBIC CM - BLENDED AVERAGE
-
© 2014 IBM Corporation
ON DEMAND
MANUFACTURING
LOCATION
ELASTIC
79% -
92%

MODULARIZATION
ROBOTICS
HARD
AUTOMATION
FLEXIBLE
TYPICAL COST PER ROBOTIC
ASSEMBLY STATION
ROBOTICS
INTELLIGENT
ROBOTICS
© 2014 IBM Corporation
-
90%

DIGITIZATION
INTELLIGENCE
MOORE’S
LAW
OPEN SOURCE HARDWARE
DESIGNS ON THINGIVERSE
© 2014 IBM Corporation
OPEN
SOURCE

HARDWARE CONSTRAINED
BUILD A
MOLD OR
CAST
HARDWIRE
PRODUCTION
LINE
DEVELOP
EMBEDDED
CHIP
© 2014 IBM Corporation
SOFTWARE DEFINED
PRINT PARTS
DIRECTLY BY
SOFTWARE
RECONFIGURE
ASSEMBLY THROUGH
SOFTWARE
DIGITAL CONTROLS
USING SOFTWARE

SOFTWARE DEFINED
SUPPLY CHAIN
© 2014 IBM Corporation

Will be most
affected by
Strategies
should you
Are the best
locations to
Will these
technologies
Do I need to re-engineer
my
▶ WHO ▶ WHAT ▶ WHERE ▶ WHEN ▶ WHY
© 2014 IBM Corporation
these
technologies?
adopt to be
competitive?
invest going
forward?
impact
investment
decisions?
end-to-end
business
processes?

4 DIFFERENT PRODUCTS COST
VOLUME
SIZE
COMPLEXITY
PERSONALIZATION
© 2014 IBM Corporation
WASHING
MACHINE
INDUSTRIAL
DISPLAY
MOBILE
PHONE
HEARING
AID

EACH PRODUCT INDIVIDUALLY
TORN DOWN
© 2014 IBM Corporation

5 GLOBAL LEADERS
IBM RESEARCH
John Cohn
Phil Reeves Leo Bonnanni
© 2014 IBM Corporation
PLANT LOCATION
INTERNATIONAL
David Zaharachuk
Mike Watson Alex Scott

1 INTEGRATED MODEL
© 2014 IBM Corporation
PLANT LOCATION
INTERNATIONAL

3 AMAZING RESULTS
COST
SCALE
© 2014 IBM Corporation
CO2 IMPACT

LOWER COST
23%
CHEAPER
AGGREGATE NORMALIZED UNIT COST
© 2014 IBM Corporation

LOWER SCALE
90%
LESS VOLUME
REQUIRED
AGGREGATE NORMALIZED
MINIMUM ECONOMIC SCALE
© 2014 IBM Corporation

NOT NECESSARILY GREENER
AGGREGATE NORMALIZED
CO2 ANALYSIS
9%
HIGHER
67%
LOWER
© 2014 IBM Corporation

IMPACT on Supply Chains
Today Future
AAggggrreeggaattee Demand Management
Unique/Individual
Centralized Localized
Centralized
Procurement/Sourcing
Finished Goods Raw Materials
Finished Goods
Inventory Management
Forecast-Based Scheduling & Planning
Real-Time
Make to Stock Manufacturing
Engineer to Order
Centralized Distributed
Global Local
Standard Cost Real (Dynamic) Cost
© 2014 IBM Corporation
Forecast-Based
Make to Stock
Centralized
Global
Standard Cost
Distribution
Logistics
Cost Management

SMALL
SIMPLE
LOCAL
© 2014 39 IBM Corporation

“Change Is Good! You Go First!”
© 2014 IBM Corporation

RECOMMENDATIONS
FOR INDUSTRY
© 2014 41 IBM Corporation

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20140928 sdsc for apics_ibm_thorsten schroeer final v2

3. Ford Automotive Output, 1901-1914 $5 Daily Wage Introduced Assembly time down to 1.5 hours © 2014 IBM Corporation Shift to moving production line Model T Introduction Assembly Time Per Car: 14 Hours

19. HARDWARE CONSTRAINED BUILD A MOLD OR CAST HARDWIRE PRODUCTION LINE DEVELOP EMBEDDED CHIP © 2014 IBM Corporation SOFTWARE DEFINED PRINT PARTS DIRECTLY BY SOFTWARE RECONFIGURE ASSEMBLY THROUGH SOFTWARE DIGITAL CONTROLS USING SOFTWARE

22. Will be most affected by Strategies should you Are the best locations to Will these technologies Do I need to re-engineer my ▶ WHO ▶ WHAT ▶ WHERE ▶ WHEN ▶ WHY © 2014 IBM Corporation these technologies? adopt to be competitive? invest going forward? impact investment decisions? end-to-end business processes?

36. IMPACT on Supply Chains Today Future AAggggrreeggaattee Demand Management Unique/Individual Centralized Localized Centralized Procurement/Sourcing Finished Goods Raw Materials Finished Goods Inventory Management Forecast-Based Scheduling & Planning Real-Time Make to Stock Manufacturing Engineer to Order Centralized Distributed Global Local Standard Cost Real (Dynamic) Cost © 2014 IBM Corporation Forecast-Based Make to Stock Centralized Global Standard Cost Distribution Logistics Cost Management

20140928 sdsc for apics_ibm_thorsten schroeer final v2

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