Enterprise quality data for the supply chain
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Slide presentation on Optimizing the Supply Chain throughout the supply chain, where attendees were able to have a framework for reviewing the systems that support their supply chain.
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Enterprise quality data for the supply chain
- 1. Enterprise Quality-Data for Optimizing the Supply Chain © IBS America Slide 1 software4quality THE PRODUCTIVITY ADVANTAGE
- 2. Agenda and Introduction Agenda and Introduction What is the supply chain? Biggest problem in supply chain management How quality-data management drives supply chain optimization Types of quality-data: How quality-data management can support a multi-tiered supply chain Q&A © IBS America, Inc. Slide 2 software4quality THE PRODUCTIVITY ADVANTAGE
- 3. What is the Supply Chain? Customers Suppliers Plan Source Make Deliver Return © IBS America, Inc. Slide 3 software4quality THE PRODUCTIVITY ADVANTAGE
- 4. Big Problems of Supply Chain Management 1. Customer Service / Customer Expectations 2. Cost Control 3. Planning and Risk Management 4. Supplier relationship management 5. Changing regulatory requirements © IBS America, Inc. Slide 4 software4quality THE PRODUCTIVITY ADVANTAGE
- 5. Supply Chain – Manufacturing Strategies Efficient Agile Hybrid Demand Profile Cost focused Differentiation Blended Markets Global and Regional Regional Regional Primary Focus Cost Agility Balance Metrics Maximized Utilization and Speed and mix Speed and upside cost Tradeoffs Flexibility Efficiency Complexity Critical Enablers • Volume per • Product price • Demand product points planning • Global • Pooled • Mixed lines, Distribution demand postponement volume • Scheduling Source: Gartner 2012 © IBS America, Inc. Slide 5 software4quality THE PRODUCTIVITY ADVANTAGE
- 6. End-to-End Design of a Supply Chain Portfolio Customer Value Supply Chain Attribute Options Plan Source Make Deliver Return Lowest Price Supply Chain A Efficient Efficient BTS Ocean Good Fastest Speed Supply Chain B Responsive Responsive BTO Truck Better Highest Supply Chain C Agile Agile CTO Air and Best Differentiation Truck Source: Gartner 2012 © IBS America, Inc. Slide 6 software4quality THE PRODUCTIVITY ADVANTAGE
- 7. Agenda and Introduction Agenda and Introduction What is the supply chain? Biggest problem in supply chain management How quality-data management drives supply chain optimization Types of quality-data: How quality-data management can support a multi-tiered supply chain Q&A © IBS America, Inc. Slide 7 software4quality THE PRODUCTIVITY ADVANTAGE
- 8. 3 Perspectives of a QMS The Past The Present The Future Demonstration of Business process & Continuous Compliance People management Improvement Example: Example: How can we prevent Prove to the auditor that Who is qualified to run these kinds of a business control was this machine? problems? being followed What do we do with these What lessons can Show how a component defective items? be learned? in a returned item can be tracked to its supplier © IBS America, Inc. Slide 8 software4quality THE PRODUCTIVITY ADVANTAGE
- 9. Quality Management : Business Solution Master Data Quality Orders Management Data Warehouse ERP ESB Business Operations Cost Data Data Inventory Logic Rules Workflow MS Excel Compliance External Data Management Sources © IBS America, Inc. Slide 9 software4quality THE PRODUCTIVITY ADVANTAGE
- 10. “Beyond finance, there‟s no one function in business other than quality that touches more organizational functions or the bottom line.” Simon Jacobson, Gartner Group © IBS America, Inc. Slide 10 software4quality THE PRODUCTIVITY ADVANTAGE
- 11. Quality Data Management The volume, velocity, and complexity of data in today‟s manufacturing enterprise has been growing exponentially… …this is nowhere more true than for quality-data… 2010 2000 1990 © IBS America, Inc. Slide 11 software4quality THE PRODUCTIVITY ADVANTAGE
- 12. Production Quality Management Management Quality- Data Traceability Compliance Management Management © IBS America, Inc. Slide 12 software4quality THE PRODUCTIVITY ADVANTAGE
- 13. What is “quality-data”? • Product data = data required from product conception to manufacturing • Quality-data = Product data + Supplier Data + Post-Manufacturing Data © IBS America, Inc. Slide 13 software4quality THE PRODUCTIVITY ADVANTAGE
- 14. Agenda and Introduction Agenda and Introduction What is the supply chain? Biggest problem in supply chain management How quality-data management drives supply chain optimization Types of quality-data: How quality-data management can support a multi-tiered supply chain Q&A © IBS America, Inc. Slide 14 software4quality THE PRODUCTIVITY ADVANTAGE
- 15. Examples of Quality Data Consider the many examples of quality-data in today‟s enterprise: Machine Networked Documents PLC / SCADA ERP Email Instruments PLM Word Documents Bar Codes MES Excel Spreadsheet RFID Customer Portals CAD drawings iPad / Mobile Data Warehouses © IBS America, Inc. Slide 15 software4quality THE PRODUCTIVITY ADVANTAGE
- 16. At the same time, the number of people in the organization is dropping… © IBS America, Inc. Slide 16 software4quality THE PRODUCTIVITY ADVANTAGE
- 17. Quality Data This means the importance of information technology to the enterprise has never been higher… …and poor “Quality-data” results in poor quality products. © IBS America, Inc. Slide 17 software4quality THE PRODUCTIVITY ADVANTAGE
- 18. Quality Data The Quality of cars from US auto makers exceeded the Imports in 2010 for the first time time in 24 years… How many problems were reported for new cars made in the US? A. 108 problems per 100 cars B. 67 problems per 100 cars C. 33 problems per 100 cars © IBS America, Inc. Slide 18 software4quality THE PRODUCTIVITY ADVANTAGE
- 19. Quality Data Despite improvements across the industry, car-makers still see more than 1 problem per car made on average © IBS America, Inc. Slide 19 software4quality THE PRODUCTIVITY ADVANTAGE
- 20. Quality Data Why manufacturing companies need an Enterprise-aware approach when considering systems that manage quality-data: © IBS America, Inc. Slide 20 software4quality THE PRODUCTIVITY ADVANTAGE
- 21. Quality-Data Acquisition in the value chain Archiving Assignee Workflow: alerts, alarms, esc Search Scheduling alations Customers Unstructured Data Suppliers Approval Incoming Goods Purchasing Engineering Manufacturing Shipping Warranty Structured Data e.g. Parts, BOM, suba ssemblies © IBS America, Inc. Slide 21 software4quality THE PRODUCTIVITY ADVANTAGE
- 22. Quality-Data Acquistion in the Value Chain ERP System PLM System Customers Suppliers Process Generated Quality-Data Incoming Goods Purchasing Engineering Manufacturing Shipping Warranty MES / MOM Instruments, Controllers, etc. © IBS America, Inc. Slide 22 software4quality THE PRODUCTIVITY ADVANTAGE
- 23. Quality-Data Processes in the Value Chain ERP System PLM System Customers Suppliers Incoming Goods Purchasing Engineering Manufacturing Shipping Warranty Purchasing: Manufacturing: Price CARs SPC On-time Delivery NCMR PFMEA Warranty: Right quantity Andon Control Plan Administration Right quality In-process Inspections RMA Payment Terms Defect Feedback Engineering: Specifications Shipping: PPAP APQP Outgoing Goods Inspections Drawings RMA Design FMEA © IBS America, Inc. Slide 23 software4quality THE PRODUCTIVITY ADVANTAGE
- 24. Quality-Data Processes in the Value Chain ERP System PLM System Supplier Mgt / PPAP / T & Q / MRB / NCMR / SPC / AUDITS / PPAP / Inspections / FMEA / Control Customers Plans / Customer Management Suppliers Incoming Goods Purchasing Engineering Manufacturing Shipping Warranty MES – Shop Floor © IBS America, Inc. Slide 24 software4quality THE PRODUCTIVITY ADVANTAGE
- 25. Quality-Data in the Value Chain ERP System PLM System Customers Suppliers Incoming Goods Quality-Data Purchasing Engineering Manufacturing Shipping Warranty Single information source : KPI„s / Decision Support / Reporting / Actions / Event triggers © IBS America, Inc. Slide 25 software4quality THE PRODUCTIVITY ADVANTAGE
- 26. Summary • The problem is complicated, and continues to get more so • One size doesn’t always fit all. we provide more options than “standard” software vendors • It takes a team. We partner with IT and your business sector managers – and we make it work • Experience counts. We‟ve worked with many customers like you. © IBS America, Inc. Slide 27 software4quality THE PRODUCTIVITY ADVANTAGE
- 27. Problems we address Lack of a coherent way to manage quality throughout the sourcing, product development, manufacturing, delivery and service process Silo‟d or unconnected systems (e.g. ERP, PLM, MES, etc.) Lack of a way to control the creation and sharing of quality documentation and records across the supply chain Difficulty in working with partners to achieve mutual quality objectives Repetitive quality inspections and checks No way to see quality data across supply chain entities Uncoordinated problem reporting, tracking and resolution across the supply chain. Defects re-occur that should not. © IBS America, Inc. Slide 28 software4quality THE PRODUCTIVITY ADVANTAGE
- 28. Problems we solve / Core Competencies / Differentiators Concepts: • Simplify compliance efforts / prevent findings • Manage change systematically • Reduce waste and costs • Improve product quality / Improve customer satisfaction • Reduce risk © IBS America, Inc. Slide 29 software4quality THE PRODUCTIVITY ADVANTAGE
- 29. IBS Customers OEMs Automotive Suppliers (40% of the top 100 are already IBS customers) Broad base of IBS solutions in the: plastics, metal, electronics, medical technology and process industries © IBS America, Inc. Slide 30 software4quality THE PRODUCTIVITY ADVANTAGE
- 30. Thank You! Questions? Consider the importance of managing the full range of quality-data as an essential aspect of the supply chain management problem. Contact IBS for more information about how we can make your supply chain more agile and more efficient. PRESENTER: Stephen Cummings stephen.cummings@ibs-ag.com (781) 862-9002 Quality Management 2.0 http://info.ibs-us.com @IBSAmerica © IBS America, Inc. Slide 31 software4quality THE PRODUCTIVITY ADVANTAGE
Editor's Notes
- Effective supply chain management is all about delivering the right product in the right quantity and in the right condition with the right documentation to the right place at the right time at the right price. If only it were as simple as it sounds
- Effective supply chain management is all about delivering the right product in the right quantity and in the right condition with the right documentation to the right place at the right time at the right price. If only it were as simple as it sounds.Supply chain operating costs are under pressure today from rising freight prices, more global customers, technology upgrades, rising labor rates, expanding healthcare costs, new regulatory demands and rising commodity prices. To control such costs there are thousands of potential metrics that supply chain organizations can and do measure. Managers need to zero in on the critical few that drive total supply chain costs within their organizations.
- Growing importance of the quality function.Scope: Enterprise-wide.Issues: consequences of M&A, Global plants, bus. Units and divisional segmentation and past trends of decentralization.Supply Chain, Product Design, Engineering, Manufacturing, Shipping, Finance, Customers are all directly involved.Evolution of Quality as an after-thought (something done on top of the production process) to an intrinsic, value-adding element of the enterprise.
- We are living today, says the Economist, in a third industrial revolution.1st was the textile industry in the UK.2nd was Henry Ford’s moving assemby line.3rd is the growing digitalization of manufacturing. (Extreme example of which is 3-D printing.)There are Millions of lines of running in each car today (on about 100 ECU’s (microprocessors) ), and millions more went into it’s design and production.Bottom line: manufacturing data, data-systems is exploding – and so is the volume and complexity of the quality-data management problem.
- “Product data” as defined by SASIG (Strategic Automotive product data Standards Industry Group)
- How can the variety of quality-data be efficiently handled?How can you get the quality-data when you need it and where you need it?Factor in the organizational complexity – often compounded by acquisitions.The critical importance of Info Technology to today’s manufacturing enterprise.
- A direct result of productivity gains. Importance of labor cost is diminishing.(E.g., A $499 iPad has only $33 of manufacturing-labor cost.)Consequently, manufacturing is moving closer to customers (increased globalization & dispersed mfg.).Labor important for designs, engineers, logistics experts AND IT SPECIALISTS in manufacturing.Quality-data management is becoming the critical differentiator. Those who perform badly will have customers and auditors finding problems after the fact, with consequences on the financials, on the supply chains, and on the corporate brand.Merging of shop-floor and back-office
- Without IT the industry cannot:Provide “mass customization” with “made to order” assembly
- http://seekingalpha.com/article/210884-auto-industry-domestics-pass-imports-in-quality-surveyThe auto industry has made huge strides in product quality, and the US makers do as well as the imports, but there is still room for improvement.
- What does it mean when we say “Enterprise Aware”?The framework must be able to scale across the organization (cross-functionally) and with other systems in the organization.
- The solutions offered by the IBS AG Group for quality, compliance, production and traceability form a single information source within the device (instruments and controls) to enterprise (ERP), allowing you to make timely and accurate decisions within the value chain.