View
43
Download
0
Category
Tags:
Preview:
DESCRIPTION
Sustainable Growth through Network Optimization. Afief Baasir Botao Shao Hery Sofiaji Pengyu Zhai Team Name: Guerilla Consulting. Team Overview Botao Shao. Botao Shao. Afief Baasir. Hery Sofiaji. Pengyu Zhai. MSIA of 2014. MSHRM of 2014. MBA of 2015. - PowerPoint PPT Presentation
Citation preview
Sustainable Growth through Network Optimization
Afief BaasirBotao Shao Hery SofiajiPengyu Zhai
Team Name: Guerilla Consulting
GSCMI 2014 Case Competition 2
Team Overview Botao Shao
Hery SofiajiAfief Baasir Pengyu ZhaiBotao Shao
• MBA of 2015• MBA of 2014 • MSIA of 2014
• MSHRM of 2014
GSCMI 2014 Case Competition 3
Agenda Botao Shao
Current Condition & Challenges
Operation Analysis
Future Look
Recommendation
GSCMI 2014 Case Competition 4
Current Condition of Eaton Botao Shao
Condition & Challenges Operation Analysis Future Look Recommendation Q & A
SC Network
2 production plants16 CMSCs2 major warehousesCDC & DBN
Eaton Overview
Power managementComprise of 4 sectors
Material flow
Kanban system2 modes of transportation
GSCMI 2014 Case Competition 5
Key Challenges Botao Shao
• High utilization of warehouses and DBN• High inventory level at CMSCs in the west and south
High Inventory Level
• High expense for air freight to the CMSCs in the west and south
High Frequency of Premium Freight
Condition & Challenges Operation Analysis Future Look Recommendation Q & A
GSCMI 2014 Case Competition 6
Operation Analysis Afief Baasir Air shipment mostly occur from west coast
CMSC
Atlanta
Baltim
ore
Chicago
Clevelan
d
Dallas
Denver
Hartford
Houston
Los A
ngeles
New Jerse
y
Orlando
Phoen
ix
Portla
nd
Raleigh
San fra
ncisc
o
Seattle
St Lou
is -
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
• SF & LA contribute the biggest portion of air shipment in the west coast• Dallas DBN does not overcome the air shipment problem
Condition & Challenges Operation Analysis Future Look Recommendation Q & A
Order by Premium Shipment
GSCMI 2014 Case Competition 7
Operation Analysis Afief Baasir There are a huge different between
the two warehouse capacity
Faye
ttevil
le, NC
Sumter, S
C
W34 (S
C)
W87 (C
A)
CDC & D
BN
Arden,
NC
Beave
r, PA
El Pas
o, TX
Raleigh, NC
Puerto
Rico N
COthe
rs -
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
W34 (SC) has about 7 times bigger capacity compared to W87 (CA) Condition & Challenges Operation Analysis Future Look Recommendation Q & A
Order by Source
GSCMI 2014 Case Competition 8
Operation Analysis Afief Baasir
Air Shipment
Grounds Shipment
0 2 4 6 8 10 12
Shipping Cost ($/Lb)
Enormous differences between air and ground shipping cost
Condition & Challenges Operation Analysis Future Look Recommendation Q & A
GSCMI 2014 Case Competition 9
Operation Analysis Afief Baasir
Denver LA Phoenix SF Seattle -
20,000.00
40,000.00
60,000.00
80,000.00
100,000.00
120,000.00
140,000.00
160,000.00
Average shipping price from plant ($)
LA offer lowest distance to other CMSC in west coast
Denver LA Phoenix SF Seattle0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Distance to other west coast CMSC (miles)
Condition & Challenges Operation Analysis Future Look Recommendation Q & A
GSCMI 2014 Case Competition 10
Operation Analysis Afief Baasir Change into ground shipping would led into
significant cost reduction
Current Frieght Premium 2,694,892.34
OPTION from Plant to WH WH to CMSC TOTALWH in LA 133,422.74 45,030.42 178,453.17 WH in SF 148,556.57 47,454.34 196,010.91
WH in Seattle 145,667.33 88,518.83 234,186.15 WH in Denver 119,783.36 95,431.97 215,215.34 WH in Phoenix 121,455.62 69,306.69 190,762.31
Condition & Challenges Operation Analysis Future Look Recommendation Q & A
Assumption if all item shipped by ground in west coast:
GSCMI 2014 Case Competition 11
CMSC Performance Comparison Hery Sofiaji
Condition & Challenges Operation Analysis Future Look Recommendation Q & A
GSCMI 2014 Case Competition 12
Eaton’s Options Hery Sofiaji
Options Benefits Drawbacks
Build new CMSC site
Build a major warehouse
Extending plant storage at CSMC
Increases responsiveness to demand’s changeImprove inventory turnoverEnhance market presence
Can consolidate supplier ordersShorten distance of supply to some CSMC siteReduce high utilization of W34 & W87
The least expensive investment and costsCan support local area
Need a lot of investmentsThe facility will need a lot of costs to be operated
Less responsive to support market fluctuation from farther location
Can not increase responsiveness to fluctuation of customer demand
Condition & Challenges Operation Analysis Future Look Recommendation Q & A
GSCMI 2014 Case Competition 13
Valuating the options Hery Sofiaji
Condition & Challenges Operation Analysis Future Look Recommendation Q & A
Cost
Responsive-ness
Build new CSMC
High Low
Low
High
Build new warehouse
Extend plant storage of CMSC
GSCMI 2014 Case Competition 14
Building a new warehouses Hery Sofiaji
Condition & Challenges Operation Analysis Future Look Recommendation Q & A
GSCMI 2014 Case Competition 15
Recommendation Pengyu (Peter) Zhai
Short-term Objectives Leverage the performance
between the west and the east Improve the existing supply chain
network
Creating new CMSC sites
Building a major warehouse
Extending the plant storage of CMSCs
Condition & Challenges Operation Analysis Future Look Recommendation Q & A
GSCMI 2014 Case Competition 16
Recommendation Pengyu (Peter) Zhai
• From inventory level perspective, expand capacity of plant storage in LA, Houston, and Dallas.
• From future developmental perspective, also expand capacity of plant storage in LA, Houston, and Dallas.
• From transportation optimization perspective, build warehouse in Los Angeles
• New CMSCs are costly, but suitable for long term expansion
Four CMSCs with Highest Average Monthly Inventory Level
Los Angeles-SAT 1507 1523 1566 1669 1717 1710 1586 1602 1748 1743 1658 1624
Houston-SVC 1331 1582 1556 1415 1391 1340 1366 1424 1625 1790 1594 1397
Dallas-SAT 1102 1223 1071 946 938 1011 1186 1399 1461 1495 1518 1245
Los Angeles-SVC 1018 1068 1212 1214 1104 1152 1192 1098 1051 1004 1036 1100
Condition & Challenges Operation Analysis Future Look Recommendation Q & A
GSCMI 2014 Case Competition 17
Recommendation Pengyu (Peter) Zhai
Long-term Objectives Develop a sustainable network
for future growth within the entire distribution system
Promote Eaton Power Distribution Systems at every medium to large size city
Employing Efficient Technology(i.e.:ERP, Cloud Computing, RFID.etc.)
Comprehensive Valuation System
Principle of Lean
Condition & Challenges Operation Analysis Future Look Recommendation Q & A
GSCMI 2014 Case Competition 18
Recommendation Pengyu (Peter) Zhai
Efficiency&
Sustainability
Lean Principle
Condition & Challenges Operation Analysis Future Look Recommendation Q & A
GSCMI 2014 Case Competition 19
Recommendation Pengyu (Peter) Zhai
• Staff Training• Future Demand Forecasting
Condition & Challenges Operation Analysis Future Look Recommendation Q & A
GSCMI 2014 Case Competition 20
Q & A
Thank you!Guerilla Consulting
Condition & Challenges Operation Analysis Future Look Recommendation Q & A
Recommended