Abb Inc. medium-voltage products' supply chain analysis, including inventory, supplier scorecard, and risk assessments

Abstract

In conformance with ABB's process excellence plan, this thesis study was undertaken to support improvements in on-time delivery of components, decreased order cycles, and reduced inventory levels for ADVAC (spring-mechanized)/AMVAC (magnetic-actuated) medium-voltage circuit breakers. With the goal of improving the efficiency of the ADVAC/AMVAC supply chain, the study involved analyzing circuit breaker inventory level and position, assessing a supplier scorecard, and assessing general supply chain risk methodologies. In an effort to assess supply chain risk, a value stream map was created to uncover where the project team should focus to best address supply chain risk and contingency planning. The project team identified opportunities to improve order processing using an electronic ordering system. The team investigated the feasibility of eliminating or reducing air freight to improve transportation costs. Also, the team examined ADVAC/AMVAC inventory holdings at various stages in the supply chain and determined that it was more cost-effective to hold as much component inventory as possible instead of finished goods inventory, while standardizing delivery cycles, in order to move toward a just-in-time order-fulfillment process.