20140928 sdsc for apics_ibm_thorsten schroeer final v2

The New Software Defined Supply Chain

© 2014 IBM Corporation© 2014 IBM Corporation

Thorsten SchroeerIBM Director Electronics Industry [email protected]

Wiesbaden, September 2014

People can have the Model T in any

© 2014 IBM Corporation

People can have the Model T in any color – so long as it’s black.

HENRY FORD

Ford Automotive Output, 1901-1914

$5 Daily Wage IntroducedAssembly time down to 1.5 hours


Shift to moving production line

Model T IntroductionAssembly Time Per Car: 14 Hours

Ford Automotive Output, 1901-1924


STANDARDIZATION MODULARIZATION DIGITIZATION


PARTSCUSTOM STANDARD

3 KEY RULESOF PRODUCT DESIGN


COMPONENTS MODULESASSEMBLY

MECHANICAL DIGITALCONTROLS

3 CHARACTERISTICSOF INDUSTRY STRUCTURE & TRADE

Economies of Scale BIG


Multi-Tier Supply Chains COMPLEX

Low Cost Supply Chains GLOBAL

3 NEWTECHNOLOGIES

3D PRINTING OPEN SOURCEINTELLIGENT ROBOTICS



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STANDARDIZATION

3D PRINTING

NO ECONOMIES OF SCALE

COST PER UNIT VOLUME PRINTED$/CUBIC CM - BLENDED AVERAGE

-


ON DEMAND MANUFACTURING

LOCATION ELASTIC

-79% -

92%


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MODULARIZATION

ROBOTICS

HARD AUTOMATION

FLEXIBLE

TYPICAL COST PER ROBOTIC ASSEMBLY STATION


FLEXIBLE ROBOTICS

INTELLIGENT ROBOTICS

-90%

DIGITIZATION

INTELLIGENCE

MOORE’S LAW

OPEN SOURCE HARDWARE DESIGNS ON THINGIVERSE


OPEN SOURCE

HARDWARE CONSTRAINED

BUILD A MOLD OR

CAST

HARDWIRE PRODUCTION

LINE

DEVELOP EMBEDDED

CHIP


SOFTWARE DEFINED

PRINT PARTS DIRECTLY BY SOFTWARE

RECONFIGURE ASSEMBLY THROUGH

SOFTWARE

DIGITAL CONTROLS USING SOFTWARE

SOFTWARE DEFINED

SUPPLY CHAIN


SUPPLY CHAIN

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


these technologies?

adopt to be competitive?

invest going forward?

impact investment decisions?

end-to-end business processes?

4 DIFFERENT PRODUCTS COSTVOLUMESIZECOMPLEXITYPERSONALIZATION


WASHING MACHINE

INDUSTRIAL DISPLAY

MOBILE PHONE

HEARING AID

EACH PRODUCT INDIVIDUALLY TORN DOWN


5 GLOBAL LEADERS

IBM RESEARCHJohn Cohn

Phil Reeves Leo Bonnanni


John Cohn

PLANT LOCATION INTERNATIONALDavid Zaharachuk

Mike Watson Alex Scott

1 INTEGRATED MODEL


PLANT LOCATION INTERNATIONAL

3 AMAZING RESULTS

COST

SCALE


SCALE

CO2 IMPACT

LOWER COST

23%CHEAPER

AGGREGATE NORMALIZED UNIT COST


LOWER SCALE

90%LESS VOLUME

REQUIRED

AGGREGATE NORMALIZEDMINIMUM ECONOMIC SCALE


REQUIRED

NOT NECESSARILY GREENERAGGREGATE NORMALIZED CO2 ANALYSIS

9%HIGHER


HIGHER

67%LOWER

Centralized

Finished Goods

LocalizedCentralized

Raw MaterialsFinished Goods

Aggregate Unique/IndividualAggregate

IMPACT on Supply Chains

Inventory Management

Demand Management

Procurement/Sourcing

Today Future


Forecast-Based

Make to Stock

Centralized

Global

Standard Cost

Real-TimeForecast-Based

Engineer to OrderMake to Stock

DistributedCentralized

LocalGlobal

Real (Dynamic) CostStandard Cost

Distribution

Manufacturing

Scheduling & Planning

Logistics

Cost Management

“Change Is Good! You Go First!”


“Change Is Good! You Go First!”

FULL REPORT & MODEL NOW AVAILABLE ONLINE AND ON YOUR MOBILE DEVICE

© 2014 IBM Corporation© 2013 IBM Corporation42

www.xing.com/profile/Thorsten_Schroeerwwww.linkedin.com/in/thorstenschroeer

20140928 sdsc for apics_ibm_thorsten schroeer final v2

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