Building operational excellence in a multi-node supply chain
Author(s)Sahney, Mira K. (Mira Kirti)
Leaders for Manufacturing Program.
Stephen Graves and Abbott Weiss.
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This thesis shows how a combination of macro-economic, business, and organizational factors can lead a well-run company to adopt a "launch-and-expedite" behavior with detrimental effects on operational efficiency. It also demonstrates how it is possible, for an organization that finds itself in such a state, to apply basic operations principles and a data driven approach to systematically get out of the "launch-and-expedite" mode. The thesis presents a method to characterize a real, functioning supply chain in the context of changing conditions and in the absence of perfect data. It shows the analysis, recommendations, and results from a particular supply chain case study at Agilent Technologies, Inc. The project first analyzes and maps the current supply chain to characterize demand and supply variability. A selected menu of operational building blocks is then recommended to improve overall supply chain performance by reducing the internal bullwhip effect and improving on-time delivery. The recommendations are implemented in a successful pilot study and key operational metrics are recorded such as supply chain inventory, on-time delivery, variability of lead-time, and number of expedite/schedule change requests.(cont.) The particular organizational context of the project and its affect is also considered. Although this thesis provides a case study of the Colorado Springs Technical Center operations and supply chain, results and lessons learned are applicable to other component suppliers or component buyers within multi-node supply chains, particularly those in the capital equipment business.
Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Mechanical Engineering; in conjunction with the Leaders for Manufacturing Program at MIT, 2005.Includes bibliographical references (p. 92-93).
DepartmentSloan School of Management.; Massachusetts Institute of Technology. Dept. of Mechanical Engineering.; Leaders for Manufacturing Program.
Massachusetts Institute of Technology
Sloan School of Management., Mechanical Engineering., Leaders for Manufacturing Program.