The impact of data-driven technologies on supply chain design

Recent supply chain disruptions following Covid-19 and international crises have led to changing paradigms in supply chain design. Likewise, data-driven technologies housed under the term Industry 4.0 have an increasing impact on how supply chains are orchestrated and shaped. This paper gives an overview to several examples of recent and expectable trends in supply chain design. Advanced manufacturing technologies, data-driven technologies in logistics and supply chain management, electrification of vehicles, as well as microchips and semiconductor manufacturing are described as representative drivers of new forms of supply chain design. In this context, a special emphasis is devoted to European initiatives such as the European Chips Act or the European Battery Alliance. Examples such as manufacturing ecosystems or platform based manufacturing are given as well as locally independent supply chains that provide potentials for supply resilience and sustainability. The paper concludes with a research agenda that includes seven areas for future research, including changes in supply chain structure, changes in inter-firm interaction, integration of small and medium-sized enterprises, changing roles of humans and new forms of business models and collaboration. In this context, the interrelations between technologies (product and production level) as well as the research avenues must be emphasized

Advancing zero defect manufacturing: A state-of-the-art perspective and future research directions

Zero Defect Manufacturing is a disruptive concept that has the potential to entirely reshape the manufacturing ideology. Building on the same quality management philosophy that underpins both lean production and Six Sigma, the Zero Defect Manufacturing paradigm has in recent years developed significantly, given the onset of Industry 4.0 and the increasing maturity of its digital technologies. In this paper, we review contemporary advances in Zero Defect Manufacturing using structured literature review. We explore emergent themes and present important directions for future development in this continuously emerging field of research and practice. We highlight two specific Zero Defect Manufacturing strategy types: defect prevention, and defect compensation; as well as identify two important themes for future ZDM research, namely advancing ZDM research (particularly with a view to progressing from zero-defect processes to zero-waste value chain strategies) and overcoming the global application challenges of ZDM (with emphasis on cyber-security and the extension of defect prevention and compensation strategies to less explored manufacturing processes).publishedVersio

Navigating uncertainty : analyzing the impact of the global chip shortage on an original equipment manufacturer’s strategy

Since 2020, the global semiconductor shortage has significantly challenged industries worldwide, with still no solution in sight to date. Especially the car industry has been struck hard, with a lack of semiconductors nearly bringing car production to a complete stop. This thesis explores how an Original Equipment Manufacturer (OEM) was forced to adapt its production strategy due to the chip crisis by examining which dynamic capabilities are necessary for them to succeed now and in the future. A pedagogical case study is used in which students are given a real-world scenario to assess an OEM's crisis management strategy. Semi-structured interviews with industry professionals, the OEM's product management team and secondary data were used to investigate the issue further. The findings of the thesis highlight three main points: (1) The need to modernize traditional car manufacturing by enhancing software integration in assembly procedures (2) The need to restructure supplier relations and the global semiconductor supply chain network. (3) The need for better risk management and order forecasting through evolving technology and sharing vital data along the supply chain. The thesis underlines both the beneficial and adverse implications of rapidly advancing technology on traditional car manufacturing and how this relates to a company's successful utilization of dynamic capabilities.Desde 2020, a escassez global de semicondutores tem desafiado significativamente as indústrias em todo o mundo, não havendo ainda uma solução à vista. Especialmente a indústria automóvel tem sido duramente atingida, com a falta de semicondutores quase a parar completamente a produção. Esta tese explora como um Fabricante de Equipamento Original (OEM) foi forçado a adaptar a sua estratégia de produção devido à crise dos chips, examinando quais as capacidades dinâmicas necessárias para o seu sucesso agora e no futuro. É utilizado um estudo de caso pedagógico no qual os estudantes recebem um cenário do mundo real para avaliar uma estratégia de gestão de crises de OEM. Foram utilizadas entrevistas semi-estruturadas com profissionais da indústria, a equipa de gestão de produtos dos OEM e dados secundários para investigar mais aprofundadamente a questão. As conclusões da tese destacam três pontos principais: (1) A necessidade de modernizar o fabrico de automóveis tradicionais, melhorando a integração de software nos procedimentos de montagem (2) A necessidade de reestruturar as relações com os fornecedores e a rede global da cadeia de fornecimento de semicondutores. (3) A necessidade de uma melhor gestão de riscos e previsão de encomendas através da evolução da tecnologia e da partilha de dados vitais ao longo da cadeia de fornecimento. A tese destaca tanto as implicações benéficas como adversas de uma tecnologia de rápido avanço no fabrico de automóveis tradicionais e como isto se relaciona com a utilização bem sucedida de capacidades dinâmicas por parte de uma empresa

Impact of shipping Ball-Grid-Array Notebook processors in tape and reel on the PC supply chain

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Electrical Engineering and Computer Science; in conjunction with the Leaders for Global Operations Program at MIT, 2012.Cataloged from PDF version of thesis.Includes bibliographical references (p. 72-76).Today, approximately 90% of Intel notebook processors are packaged in PGA (Pin Grid Array) and 10% are packaged in BGA (Ball Grid Array). Intel has recently made a decision to transform the notebook industry by creating a new system size category called Ultrabook TM . In order to create such a thin form factor, PGA (Pin Grid Array) CPUs must now be offered as BGA (Ball Grid Array) CPUs to reduce the height of one of the taller items of the system. With the increased number of Ultrabooks [TM] being offered, the overall volume of BGA CPUs shipped by Intel is expected to increase. BGA CPUs can be shipped in one of two mediums: tape and reel or trays. By making tape and reel available, customers would be able to utilize the benefit of a more efficient pick and place process on their surface mount technology (SMT) lines compared to when using trays. However, from Intel's standpoint, BGA CPUs have a very high product mix, and shipping BGA CPUs in trays allows Intel to ship in smaller order quantities to customers. Intel currently ships its BGA CPUs in trays. Because BGA processors used in Ultrabook m and other systems will become the majority of processor volume, some customers have made a request to have BGA CPUs delivered in tape and reel in addition to trays. The objective of the thesis is to determine if packaging CPUs in tape and reel in conjunction with tray packaging will improve overall CPU supply chain performance. Based on the analysis, we conclude that tape and reel should not be offered due to the minimal savings received by its ODM customers, and the expense that would be incurred by Intel based on current market conditions. Key drivers that influence this decision on the Intel side include SKU management issues, lack of shipping efficiency, and capital equipment purchase costs. From the customer point of view, it was identified that the request came from ODM Surface Mount Technology line managers and did not take into consideration procurement or inventory holding issues.by Pamela Chuang.S.M.M.B.A

Optimizing inventory levels using financial, lifecycle and forecast variance data

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Electrical Engineering and Computer Science; in conjunction with the Leaders for Manufacturing Program at MIT, 2007.Includes bibliographical references (leaves 47-48).Significant inventory write-offs have recently plagued ATI Technologies, a world leader in graphics and media processors. ATI's product-centric culture has long deterred attention from supply chain efficiency. Given that manufacturing lead time exceeds customer order lead time for its semiconductors, ATI relies heavily on their demand forecasting team to instigate supply chain activities. The PC business unit forecasting team translates market information into product-line forecast and also sets finished goods inventory levels intended to offset demand uncertainty. Today's inventory decisions are made in response to customer escalations, often ignoring financial implications. To add necessary rigor when setting these inventory levels, this thesis presents a model using wafer and unit cost, profit margin, product lifecycle stage and historical forecast error to categorize products into inventory risk levels. The resultant risk levels become a critical input to monthly demand-supply meetings with marketing, operations and senior executives - the outcome of which are wafer orders and assembly and test plans at the world's largest contract foundries and subcontractors. Finally, the 2006 acquisition of ATI by Advanced Micro Devices (AMD) offers unforeseen flexibility, scale and challenges to the outsourced semiconductor supply chain.by Irene S. Hwang.S.M.M.B.A

An Analytical Approach to Lean Six Sigma Deployment Strategies: Project Identification and Prioritization

abstract: The ever-changing economic landscape has forced many companies to re-examine their supply chains. Global resourcing and outsourcing of processes has been a strategy many organizations have adopted to reduce cost and to increase their global footprint. This has, however, resulted in increased process complexity and reduced customer satisfaction. In order to meet and exceed customer expectations, many companies are forced to improve quality and on-time delivery, and have looked towards Lean Six Sigma as an approach to enable process improvement. The Lean Six Sigma literature is rich in deployment strategies; however, there is a general lack of a mathematical approach to deploy Lean Six Sigma in a global enterprise. This includes both project identification and prioritization. The research presented here is two-fold. Firstly, a process characterization framework is presented to evaluate processes based on eight characteristics. An unsupervised learning technique, using clustering algorithms, is then utilized to group processes that are Lean Six Sigma conducive. The approach helps Lean Six Sigma deployment champions to identify key areas within the business to focus a Lean Six Sigma deployment. A case study is presented and 33% of the processes were found to be Lean Six Sigma conducive. Secondly, having identified parts of the business that are lean Six Sigma conducive, the next steps are to formulate and prioritize a portfolio of projects. Very often the deployment champion is faced with the decision of selecting a portfolio of Lean Six Sigma projects that meet multiple objectives which could include: maximizing productivity, customer satisfaction or return on investment, while meeting certain budgetary constraints. A multi-period 0-1 knapsack problem is presented that maximizes the expected net savings of the Lean Six Sigma portfolio over the life cycle of the deployment. Finally, a case study is presented that demonstrates the application of the model in a large multinational company. Traditionally, Lean Six Sigma found its roots in manufacturing. The research presented in this dissertation also emphasizes the applicability of the methodology to the non-manufacturing space. Additionally, a comparison is conducted between manufacturing and non-manufacturing processes to highlight the challenges in deploying the methodology in both spaces.Dissertation/ThesisPh.D. Industrial Engineering 201

Semiconductor Manufacturing Basics, Comparison Between Agent Based and Discrete Event Simulation

El trabajo consta de dos partes principales, la descripción detallada y caracterización de la industria de los semiconductores entendida en el contexto del transporte de materiales, donde los procesos de fabricación requeridos para conseguir el producto final son tan numerosos que hacen obligatorio el uso de tecnologías de simulación con el fin de optimizar la eficiencia en tanto la fabricación como el almacenamiento. Posteriormente se centra en el dilema creado en los últimos años debido a la utilización de diferentes técnicas y enfoques de simulación, teniendo como objeto de estudio los enfoques Agent Based y Discrete Event realiza una detallada comparativa donde se exponen argumentos a favor y en contra de la utilización de cada uno de estos enfoques dependiendo del modelado que se deba realizar siendo finalmente el usuario quien toma la decisión última según el tipo de sistema que desee modelar.Departamento de Ingeniería Energética y FluidomecánicaGrado en Ingeniería Mecánic

Migrating supply chain management process online: A study in Malaysian companies

There has been an increasing trend for companies to migrate their Supply Chain Management (SCM) online.In Malaysia however, many companies have not or are reluctant to invest in IT to improve their SCM.In order for companies to successfully migrate their SCM online, companies need to solve both technical and business issues that are involved during and after the migration.One example for solving the technical issues is that of the Rosettanet Standards.Rosettanet promised to solve the integration issues of online SCM in particular by allowing companies to communicate in the same e-business standards.However, there are few taker for this and there is a need to study the problems of migrating SCM online.. A framework is needed for Malaysian companies to successfully migrate their SCM online and using the Rosettanet standards.This paper presents an on-going study supported by Infineon Technologies Malacca