case study on ibm

8/7/2019 Case study on IBM

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PLANNING,CONTROLLING ANDINTEGRATED SUPPLY CHAIN

From:-K.A. Asraar Ahmed


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WHAT IS TPM(TOTAL PRODUCTIVE

MAINTENANCE)?

MAX. FLEXIBILITY

ZERO WASTAGES

SMOOTH PROCESS FUNCTION.


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IT ALSO MANAGES

BREAKDOWN MAINTENANCE

PREVENTIVEMAINTENANCE

PREDICTIVE MAINTENANCE


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SIMPLIFICATION

REDUCE COMPLEXITY.

REDUCE NUMBER OF ACTIVITIES.

DECREASE POTENTIAL FOR ERRORS.

EX: TATA MOTORS.


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STANDARDIZATION

PRODUCTS BASED ON STANDARDS

VARIOUS STANDARDS USED ARE

American National Standards Institute(ANSI)International Organization for

Standardization(ISO)


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WHAT IS INTEGRATED SUPPLY

CHAIN?

Integrating relations between suppliers and

distributers to make effective supply chain.


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7

SUPPLY CHAIN INTEGRATION PUSH STRATEGIES

Classical manufacturing supply chain strategy

Manufacturing forecasts are long-range Orders from retailers warehouses

Longer response time to react to marketplace changes Unable to meet changing demand patterns

Supply chain inventory becomes obsolete as demand forcertain products disappears

Increased variability (Bullwhip effect) leading to: Large inventory safety stocks

Larger and more variably sized production batches

Unacceptable service levels

Inventory obsolescence

Inefficient use of production facilities (factories) How is demand determined? Peak? Average?

How is transportation capacity determined?

Examples: Auto industry, large appliances, others?


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8

SUPPLY CHAIN INTEGRATION PULL STRATEGIES

Production and distribution are demand-driven

Coordinated with true customer demand

None or little inventory held

Only in response to specific orders

Fast information flow mechanisms

Decreased lead times

Decreased retailer inventory

Decreased variability in the supply chain and especially atmanufacturers

Decreased manufacturer inventory More efficient use of resources

More difficult to take advantage of scale opportunities

Examples: Dell, Amazon


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CASE RELATED TO

ISC ON IBM


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IBM

Business area-computer technology and IT consultant

One of the major supply chain software consultant.

19,000 employees in 61 countries (200+ with Ph.D.s)

Responsible for USD$ 40 Billion of IBM cost and expense

Shipping 1 Billion kilograms of product annually


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ISC IN IBM

IBM at one point had 30 supply chains, one for

each of its business units, with each

considering the cost of doing business.

Today that delivers significant cost saving

competitive advantage and enterprise

alignment

ISC at IBM is an innovative, strategic business

unit


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ISC

IBM formed ISC in 2001-2002

Why ISC?

Inefficient traditional supply chain approach

Increasing customer expectations

IBM Goals:-

To maintain its position as a worlds largest ITprovider

To correct company level customer service.


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MAJOR ISSUES

Non suitability of traditional supply chain to

offer on demand service

Everyone must think in terms of total supplychain management, not just their individual

jobs.

Case facts:-

In 2002 IBM saved $5.3 bn

96% of transactions became hands free


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6 PRINCIPLES

Customer satisfaction and shareholder value

Competitive advantage

Superior end to end customer experiance Process simplification

Improving employee skills


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RESULTS OF ISC

Shorter

operating

cycle

Time savings

Expansion of

business


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case study on ibm

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