john o’connor director, global supply chain management cisco systems, inc. supply chain risk...
Post on 21-Dec-2015
220 views
TRANSCRIPT
John O’ConnorJohn O’Connor
Director, Global Supply Chain ManagementCisco Systems, Inc.
SSupply upply CChain hain RRisk isk MManagementanagement
Business Continuity PlanningBusiness Continuity Planning
CMs SLCs Components
BCP Cisco RegularBCP Cisco Regular
BCP Site ResiliencyBCP Site Resiliency
BCP Validation BCP Validation
<10 suppliers < 5 suppliers
> 500 suppliers
BCP LightBCP Light
Contact information, site locations, TTR & alternates
Contact information, site locations, TTR & alternates
BCP data including emergency contacts, primary & alternate site locations, part site mapping, and Time to Recover (TTR)
BCP data including emergency contacts, primary & alternate site locations, part site mapping, and Time to Recover (TTR)
Onsite crisis drills to test supplier Cisco-Specific BCPs
Onsite crisis drills to test supplier Cisco-Specific BCPs
Physical site preparedness questions in the Cisco Specific BCP
Physical site preparedness questions in the Cisco Specific BCP
© 2008 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 3
Customer ImpactCustomer Impact
Product B Product A
Product C Product D
Max Rev ImpactMax Rev ImpactTTR: XX Weeks
Max/ Rev Impact: $XXM
Partner ImpactPartner Impact
No Impact(CM 1, CM2, CM3, CM4)
No Impact(SLC)
Moderate Impact(4 suppliers)
Crisis Response: ChengduCrisis Response: Chengdu
Events FocusEvents Focus
© 2007 Cisco Systems, Inc. All rights reserved. Cisco Confidential 6
Image NASA© 2008 Europa TechnologiesImage © 2008 DigitalGlobe
© 2008 Tele Atlas
Image NASA© 2008 Europa TechnologiesImage © 2008 DigitalGlobe
© 2008 Tele Atlas
Image NASA© 2008 Europa TechnologiesImage © 2008 DigitalGlobe
© 2008 Tele Atlas
Image NASA© 2008 Europa TechnologiesImage © 2008 DigitalGlobe
© 2008 Tele Atlas
Image NASA© 2008 Europa TechnologiesImage © 2008 DigitalGlobe
© 2008 Tele Atlas
Risk: Earthquake HeadquartersRisk: Earthquake Headquarters
Risk: EarthquakeFoundriesRisk: EarthquakeFoundries
Risk: EarthquakeSingle / Sole Sourced PartsRisk: EarthquakeSingle / Sole Sourced Parts
Risk: Typhoon & Flooding Single / Sole Sourced Parts CM concentration
Risk: Typhoon & Flooding Single / Sole Sourced Parts CM concentration
Risk: Typhoon & Flooding Highest Revenue CM Site
Risk: Typhoon & Flooding Highest Revenue CM Site
San JoseSan Jose
CM siteCM site
Hong KongHong Kong
JapanJapan
TaiwanTaiwan
Products FocusProducts Focus
100%All200 Product Families
8500 Products
50%Revenue Coverage
TopRevenueProducts
25Product Families
100 Products
25Product Families
100 Products
80%
Top Revenue Product Families
25 Product Families
4000 Products
How We Deliver Resiliency:How We Deliver Resiliency:Sustaining ProductsSustaining Products
TTR GoalsTTR GoalsT0 T75Weeks
MfgTTR
TestTTR
ComponentTTR
2nd source, alternate supplier site and/or inventory2nd source, alternate supplier site and/or inventory
Alternate site readinessAlternate site readiness
Lead-time programs and/or inventory for test equipmentLead-time programs and/or inventory for test equipment
Time to Recover (TTR): number of weeks required to restore 100% operational output following a supply chain disruptionsTime to Recover (TTR): number of weeks required to restore 100% operational output following a supply chain disruptions
How We Deliver Resiliency:How We Deliver Resiliency:New ProductsNew Products
Phase II – FY’09 Phase II – FY’09
Comp TTR
First Customer Ship
Mfg TTRTest TTR
TTR-based SC design
Risk-based
bus. awards
Supply ChainDesign for RiskSupply Chain
Design for RiskProduct
Design for RiskProduct
Design for Risk
TTR-based risk rating
BCP requiremnt Risk Board
How We Measure Supply Chain How We Measure Supply Chain ResiliencyResiliency
GoalGoalIndex MetricsIndex Metrics
Not ResilientNot Resilient
Very ResilientVery Resilient10
1
2
3
4
5
6
7
8
9 Manufacturing Recovery
Manufacturing Recovery
TestRecovery
TestRecovery
Component Recovery
Component Recovery
Single / Sole Sourced
Single / Sole Sourced
Likelihood of Disruption
Likelihood of Disruption 44
X Weeks X Weeks
X WeeksX Weeks
X WeeksX Weeks
xx%xx%
Resiliency by Business Unit Resiliency by Business Unit BU 1BU 1
NotResilient
NotResilient
VeryResilient
VeryResilient
10
1
2
3
4
5
6
7
8
9
BU 2BU 2
NotResilient
NotResilient
VeryResilient
VeryResilient
10
1
2
3
4
5
6
7
8
9
BU 3BU 3
NotResilient
NotResilient
VeryResilient
VeryResilient
10
1
2
3
4
5
6
7
8
9
BU 4BU 4
NotResilient
NotResilient
VeryResilient
VeryResilient
10
1
2
3
4
5
6
7
8
9
BU 5BU 5
NotResilient
NotResilient
VeryResilient
VeryResilient
10
1
2
3
4
5
6
7
8
9
Key Take AwaysKey Take Aways
BCP program is a necessary foundation
Many ways to focus your risk management program – pick one!
Design for Risk approach for highest impact
SCRM standards needed!
BCP program is a necessary foundation
Many ways to focus your risk management program – pick one!
Design for Risk approach for highest impact
SCRM standards needed!