Executive Solution Overview
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**files (3)**
– ## WeekThreeAssignment1InstructionsHM.docx
– ## hp-inkjet-redsky_0-2.pdf
– flextronics_milpitas-2.pdf
**## WeekThreeAssignment1InstructionsHM.docx**
**Week Three Assignment 1**
**Week Three Assignment 1 of 3**
**Read and analyze one of the case studies below. Provide a background of the study as your introduction. Repeat each question as your main headings as you answer each part completely. Utilize at least**
**one course reference and**
**two outside references to support your statements. All writing assignments**
**must follow APA guidelines, such as: headings/sub-headings, referencing, quoting, paraphrasing, writing style and formatting.**
**_Do not include an abstract or table of contents for this short assignment._**
**If help is needed in this area, contact the NU's writing center immediately. Students should use National University's digital library for proper peer-reviewed papers as references**
·
[**Flextronics**](https://navigate.nu.edu/content/enforced/175602-SCM610-41662-2607/Week%20Three/flextronics_milpitas-2.pdf) **- PDF Document**
**_(1.35 MB)_**
·
[**https://marketatlas.mergent.com/stock/supplychain/?symbol=FLEX**](https://marketatlas.mergent.com/stock/supplychain/?symbol=FLEX)
·
[**HP Inkjet RedSky**](https://navigate.nu.edu/content/enforced/175602-SCM610-41662-2607/Week%20Three/hp-inkjet-redsky_0-2.pdf) **- PDF Document**
**_(1.08 MB)_**
·
[**https://marketatlas.mergent.com/stock/supplychain/?symbol=HPEWI**](https://marketatlas.mergent.com/stock/supplychain/?symbol=HPEWI)
**_Required for Question #1 below_:**
**- For supplier information, see National University Library, under the SoBE Get Started page (see** [**https://resources.nu.edu/getstarted_sobe/company_more**](https://resources.nu.edu/getstarted_sobe/company_more) **) – select the "**
**Mergent Online" database. (USE THE LINKS UNDER EACH PDF DOCUMENT ABOVE)**
**– Search for these companies by using the names "**
**Hewlett Packard Enterprise Co" (ticker=HPE) or "**
**Flex Ltd" (ticker=FLEX).**
**– Once in the database, click on the SUPPLY CHAIN tab for their supply chain data.**
**– Once you access the supply chain for your company, select a sub-sector or just click SUPPLIERS in the top menu.**
****
**- Don't mix external Supply Chain Member companies with internal functions.**
**- Don't mix cross-functional Processes with the individual functions themselves.**
**Questions:**
1.
**Who are the key supply chain members?**
·
**Describe their roles as responsibilities as they relate to the supply chain.**
·
**What are their key activities within Product Development and Commercialization in the process/function matrix?**
2.
**How was Product Development and Commercialization applied to this situation?**
·
**Which functions played a key role in Product Development and Commercialization process of the supply chain?**
3.
**How was Returns Management applied to this situation?**
·
**If not addressed, how would you implement Returns Management?**
·
**What strategies would you use in your implementation processes?**
4.
**What recommendations do you have for further implementation of the Supply Chain Management processes within this particular supply chain?**
**Provide examples and rationale for your findings.**
**Rubric Name: SCM – Case Study Rubric**
********
## image1.png
## image2.png
## image3.png
## image4.png
**## hp-inkjet-redsky_0-2.pdf**
HP's Inkjet Printer Design for Supply
Chain RedSky Database
Hewlett Packard – Inkjet Printer Solutions
By Rick Cortez, Scott McLean, C’Anne Vaughn
Executive Summary
RedSky is a supply chain tool that drives part and design reuse in the product development cycle. It
streamlines the product design process and limits component variation. Along the way, it provides
insight into themes such as price benchmarking, component usage and business analytics helping
optimize the supply chain and associated costs.
Innovation Statement
An approach of using big data to more easily gain insight into supply chain costs and component usage.
This allows us to more efficiently drive supply chain improvements into the products design as well as
optimize supply chain costs.
Impact Statement
Reduces complexity in the supply chain by minimizing component variation and saving HP greater than
$150M to date.
Applicability
RedSky is a process that can be used in any supply chain environment to reduce number of parts, drive
lower cost, and/or perform a wide range of big data analytics.
1
Introduction
Hewlett Packard is a global company with its inkjet printing organization consisting of multiple design
centers, manufacturers and suppliers across the world. This was certainly no mistake from a strategic
standpoint, but along the way development engineers began designing products with a diverse set of
eyes, creating a wealth of unique designs and selection of parts. This translated into a supply chain
organization that was burdened with procuring a large component mix and providing manufacturing
with a diverse set of designs to support. This ultimately led to higher costs.
Designers lacked visibility:
• Component costs
• Product usage
• Existing solutions to reuse
Result:
• Component proliferation
• High complexity
• Costs not optimized
• Missed opportunities “Use this one” “Not this one”
Figure 1 – Engineers attaching several screw types to a wall as a method of communicating which parts should be used.
2
The response was to commission a team, known as Design for Supply Chain (DfSC), which was chartered
to drive component and design commonality. For the team to be successful, it was critical to have data
driven decisions. After all, data was needed to convince a strong and experienced team of product
development engineers that recommendations were in the best interest of the organization.
What started as a tool to help drive design commonality, quickly turned out to be much more as
evidenced by the team’s ability to drive cost savings (see Figure 2).
Annual Cost Savings
$
M
0
20
40
60
80
2009 2010 2014 2011 2012 2013
Figure 2 – In 2010, the HP Inkjet DfSC team was re-purposed from a Post Manufacturing cost reduction group to a team of
engineers that would engage early with R&D and have influence in the product design lifecycle.
3
RedSky
The RedSky Database (RSDB) is a tool developed by the DfSC team to provide the level of insight needed
to drive commonality and optimize costs. It is described as a merging of a product’s bill of material,
component costs, part attributes, forecast volume, and product attributes.
REDSKY
Bill of
Materials
Component
Cost Data
Product
Attributes
Part
Attributes
Volume
Forecast
Figure 3 – Ingredients which make up RedSky that are “relational” in nature.
4
The RedSky integration process involves three distinct steps:
Step 1: The production bill of materials (BOM) is imported from the product manufacturers identifying
the following key elements: products, parts quantities & prices, and assembly structure information.
Generally, this is 100,000 lines of data. While it’s possible to find the price of a given part, one would
need to know exactly where and how to search. Furthermore, it’s difficult to find if there are other
similar parts that might be a better choice based on price and usage.
Step 2: To provide the next level of insight, different attributes are assigned to parts. This allows for
logical organization. Examples of the different attributes are commodity type, such as screw or cable;
and design characteristics, such as glass thickness or inductor value.
Step 3: In the final step, each product is assigned attributes, such as volume forecast, manufacturer, and
product type. This produces a data set consisting of 100,000 rows and 60 fields of data, amounting to
6,000,000 pieces of information that can now be analyzed for different scenarios.
6
0
F
ie
ld
s
Figure 4 – Data set can be scaled up or down, depending on those attributes that are important for analysis and
the number of products and parts in the supply chain.
5
Influencing Product Design
Now that the usage of parts in production is well understood, the next challenge is to make an impact
on product development. Driving commonality means removing parts that are high in cost, low in usage
and steering towards others that are optimal from a supply chain standpoint. There is no better time to
switch to preferred parts than during the product development cycle. Thus, RedSky was enabled to
serve R&D by making data accessible and secondly, by incorporating an algorithm to see how well the
product aligns with commonality.
Figure 5 – Main Menu of RedSky that a typical user would navigate through. The front end interface was intended to be
simple and focused, whereas the large extent of data would be accessible behind the password protected Admin block.
6
7
Parts Catalog
Having insight into the type of parts being used for a given commodity, there is now an opportunity to
optimize. Component cost, purchase quantity, product usage and part design attributes are all key
pieces of information that can be fairly compared with one another.
Let’s take screws used for securing into plastic as an example. At one point in time, we had as many as
28 different screws that had a thread diameter of 3mm. While there are certain properties that are
diverse enough to be considered critical, there are other properties that are close enough to warrant
debate. We had four screws with lengths of 9, 9.1, 9.86 and 10mm along with head diameters of 5.6,
5.39, 5.6, and 4.85mm respectively. While one can argue that these property differences may have been
critical for their design application, we also knew that declaring one of these screws as our preferred
screw would be met with success for future designs. As such, we were able to identify 10 screws that
we call preferred, giving us a good mix of color, length, and head diameter.
Figure 6 – An example of a report designers see once a search is complete.
The Parts Catalog was rolled out in 2 phases. The first phase focused on a select number of
commodities. The format that allowed for easy searching was then tested with the design community.
Once fully tested and vetted by the R&D community, it was expanded to the other key commodities.
Figure 7 – Example of consolidation summary for electrical components.
Part Lookup
In addition to the Parts Catalog, a Part Lookup utility was provided in the form of a graphical user
interface (GUI). This provides basic queries without the need to navigate an overwhelming amount of
data. Its purpose is to allow a designer to acquire business intelligence for a part that can be searched by
part number, description, or commodity type. Price, purchase quantity, product usage, and
manufacturer usage are then presented back to the user.
Figure 8 – Part Lookup utility with built-in smart searching.
BOM Analyzer
Lastly, the BOM Analyzer is a tool embedded in RedSky that evaluates an itemized BOM in its entirety
for commonality and preferred parts performance. Once a BOM is loaded, it makes the determination
whether a part is new or pre-existing via calculation. Furthermore, it analyzes parts by commodity to
determine if designers are using preferred parts or non-preferred parts.
Behind the calculations, lies a sophisticated algorithm that allows RedSky to make recommendations on
whether a preferred part should be used in the event a non-preferred part is in use. For instance, if a
8
non-preferred part is being used on a legacy assembly, it’s in the best interest of the business to not
make any changes. On the other hand, if there is non-preferred part that is being used for a new design,
its preferred part equivalent is identified along with other information to justify its use such as savings,
usage, etc.
Product Design
R&D REDSKY
BOM Analysis
Production
Target: Lean
Supply Chain
Figure 9 – Closed loop process for maximizing preferred part usage. RedSky imports a BOM under design, analyzes for
performance, and reports back to the design team where there are opportunities.
9
Other Welcomed Benefits of RedSky
What once started off as a tool to provide insight for component commonality, proved to be much more
fruitful in the areas of Cost Optimization, Price Benchmarking and general analytics.
REDSKYParts Catalog
Part Lookup
BOM Analysis
Analytics
Figure 10 – The information and tools that RedSky provides.
Should Cost Price Optimization
Now that design attributes and pricing for similar components are easily accessible, patterns in cost can
now be seen.
For example, as a result of design proliferation, we had two A4-sized scanner glass parts being used in
production, one 2mm shorter in length than the other. What was odd was that the glass with 1% less
material was 10% higher in cost. We challenged the supplier with this knowledge and ultimately drove
the price down by 14%. In addition, we also managed to design the higher material glass out of
production and settled on the lower cost preferred glass.
10
Manufacturer Price Benchmarking
With multiple manufacturers for our products, pricing can be compared for the same components.
Whereas two manufacturers might be charging us $1.00, the other might be charging us $1.10. Since we
can also associate these components with purchase quantity, we have the right level of insight and focus
to determine if these are opportunities to investigate. Was there something unique about the supply
base or were we simply not receiving competitive pricing?
General Analytics
The underlying ability of RedSky is the power to perform different levels of analytics which are
correlated to the attributes loaded into the system. These analytics have been used to drive
commonality and look for opportunities for driving down cost.
There is a wealth of reports that can be produced based on your imagination. You can use RedSky to
summarize how much is spent annually on 100Ω resistors. Maybe instead, you want to generate a part
count for each one of your products in production. Better yet, why not use RedSky to help you
determine the cost impact of one second cycle time for your plastic molded parts.
Conclusion
The RedSky supply chain tool has driven part and design reuse into the HP Inkjet Printer product
development cycle streamlining the product design process and limiting component variation. It has
been well received by the R&D design community due to the fact that it simplifies the part selection
process and makes it easier to design with these parts in mind. Consequently, there is an average 85%
preferred part usage in all new Hewlett Packard Inkjet Printer development. All of this has netted HP
greater than $150M to date.
11
**flextronics_milpitas-2.pdf**
This file is too large to display. [View in new window](https://www.sweetstudy.com/files/flextronics-milpitas-2-pdf)
**flextronics_milpitas-2.pdf**
This file is too large to display. [View in new window](https://www.sweetstudy.com/files/flextronics-milpitas-2-pdf)
**## WeekThreeAssignment1InstructionsHM.docx**
**Week Three Assignment 1**
**Week Three Assignment 1 of 3**
**Read and analyze one of the case studies below. Provide a background of the study as your introduction. Repeat each question as your main headings as you answer each part completely. Utilize at least**
**one course reference and**
**two outside references to support your statements. All writing assignments**
**must follow APA guidelines, such as: headings/sub-headings, referencing, quoting, paraphrasing, writing style and formatting.**
**_Do not include an abstract or table of contents for this short assignment._**
**If help is needed in this area, contact the NU's writing center immediately. Students should use National University's digital library for proper peer-reviewed papers as references**
·
[**Flextronics**](https://navigate.nu.edu/content/enforced/175602-SCM610-41662-2607/Week%20Three/flextronics_milpitas-2.pdf) **- PDF Document**
**_(1.35 MB)_**
·
[**https://marketatlas.mergent.com/stock/supplychain/?symbol=FLEX**](https://marketatlas.mergent.com/stock/supplychain/?symbol=FLEX)
·
[**HP Inkjet RedSky**](https://navigate.nu.edu/content/enforced/175602-SCM610-41662-2607/Week%20Three/hp-inkjet-redsky_0-2.pdf) **- PDF Document**
**_(1.08 MB)_**
·
[**https://marketatlas.mergent.com/stock/supplychain/?symbol=HPEWI**](https://marketatlas.mergent.com/stock/supplychain/?symbol=HPEWI)
**_Required for Question #1 below_:**
**- For supplier information, see National University Library, under the SoBE Get Started page (see** [**https://resources.nu.edu/getstarted_sobe/company_more**](https://resources.nu.edu/getstarted_sobe/company_more) **) – select the "**
**Mergent Online" database. (USE THE LINKS UNDER EACH PDF DOCUMENT ABOVE)**
**– Search for these companies by using the names "**
**Hewlett Packard Enterprise Co" (ticker=HPE) or "**
**Flex Ltd" (ticker=FLEX).**
**– Once in the database, click on the SUPPLY CHAIN tab for their supply chain data.**
**– Once you access the supply chain for your company, select a sub-sector or just click SUPPLIERS in the top menu.**
****
**- Don't mix external Supply Chain Member companies with internal functions.**
**- Don't mix cross-functional Processes with the individual functions themselves.**
**Questions:**
1.
**Who are the key supply chain members?**
·
**Describe their roles as responsibilities as they relate to the supply chain.**
·
**What are their key activities within Product Development and Commercialization in the process/function matrix?**
2.
**How was Product Development and Commercialization applied to this situation?**
·
**Which functions played a key role in Product Development and Commercialization process of the supply chain?**
3.
**How was Returns Management applied to this situation?**
·
**If not addressed, how would you implement Returns Management?**
·
**What strategies would you use in your implementation processes?**
4.
**What recommendations do you have for further implementation of the Supply Chain Management processes within this particular supply chain?**
**Provide examples and rationale for your findings.**
**Rubric Name: SCM – Case Study Rubric**
********
## image1.png
## image2.png
## image3.png
## image4.png
**## hp-inkjet-redsky_0-2.pdf**
HP's Inkjet Printer Design for Supply
Chain RedSky Database
Hewlett Packard – Inkjet Printer Solutions
By Rick Cortez, Scott McLean, C’Anne Vaughn
Executive Summary
RedSky is a supply chain tool that drives part and design reuse in the product development cycle. It
streamlines the product design process and limits component variation. Along the way, it provides
insight into themes such as price benchmarking, component usage and business analytics helping
optimize the supply chain and associated costs.
Innovation Statement
An approach of using big data to more easily gain insight into supply chain costs and component usage.
This allows us to more efficiently drive supply chain improvements into the products design as well as
optimize supply chain costs.
Impact Statement
Reduces complexity in the supply chain by minimizing component variation and saving HP greater than
$150M to date.
Applicability
RedSky is a process that can be used in any supply chain environment to reduce number of parts, drive
lower cost, and/or perform a wide range of big data analytics.
1
Introduction
Hewlett Packard is a global company with its inkjet printing organization consisting of multiple design
centers, manufacturers and suppliers across the world. This was certainly no mistake from a strategic
standpoint, but along the way development engineers began designing products with a diverse set of
eyes, creating a wealth of unique designs and selection of parts. This translated into a supply chain
organization that was burdened with procuring a large component mix and providing manufacturing
with a diverse set of designs to support. This ultimately led to higher costs.
Designers lacked visibility:
• Component costs
• Product usage
• Existing solutions to reuse
Result:
• Component proliferation
• High complexity
• Costs not optimized
• Missed opportunities “Use this one” “Not this one”
Figure 1 – Engineers attaching several screw types to a wall as a method of communicating which parts should be used.
2
The response was to commission a team, known as Design for Supply Chain (DfSC), which was chartered
to drive component and design commonality. For the team to be successful, it was critical to have data
driven decisions. After all, data was needed to convince a strong and experienced team of product
development engineers that recommendations were in the best interest of the organization.
What started as a tool to help drive design commonality, quickly turned out to be much more as
evidenced by the team’s ability to drive cost savings (see Figure 2).
Annual Cost Savings
$
M
0
20
40
60
80
2009 2010 2014 2011 2012 2013
Figure 2 – In 2010, the HP Inkjet DfSC team was re-purposed from a Post Manufacturing cost reduction group to a team of
engineers that would engage early with R&D and have influence in the product design lifecycle.
3
RedSky
The RedSky Database (RSDB) is a tool developed by the DfSC team to provide the level of insight needed
to drive commonality and optimize costs. It is described as a merging of a product’s bill of material,
component costs, part attributes, forecast volume, and product attributes.
REDSKY
Bill of
Materials
Component
Cost Data
Product
Attributes
Part
Attributes
Volume
Forecast
Figure 3 – Ingredients which make up RedSky that are “relational” in nature.
4
The RedSky integration process involves three distinct steps:
Step 1: The production bill of materials (BOM) is imported from the product manufacturers identifying
the following key elements: products, parts quantities & prices, and assembly structure information.
Generally, this is 100,000 lines of data. While it’s possible to find the price of a given part, one would
need to know exactly where and how to search. Furthermore, it’s difficult to find if there are other
similar parts that might be a better choice based on price and usage.
Step 2: To provide the next level of insight, different attributes are assigned to parts. This allows for
logical organization. Examples of the different attributes are commodity type, such as screw or cable;
and design characteristics, such as glass thickness or inductor value.
Step 3: In the final step, each product is assigned attributes, such as volume forecast, manufacturer, and
product type. This produces a data set consisting of 100,000 rows and 60 fields of data, amounting to
6,000,000 pieces of information that can now be analyzed for different scenarios.
6
0
F
ie
ld
s
Figure 4 – Data set can be scaled up or down, depending on those attributes that are important for analysis and
the number of products and parts in the supply chain.
5
Influencing Product Design
Now that the usage of parts in production is well understood, the next challenge is to make an impact
on product development. Driving commonality means removing parts that are high in cost, low in usage
and steering towards others that are optimal from a supply chain standpoint. There is no better time to
switch to preferred parts than during the product development cycle. Thus, RedSky was enabled to
serve R&D by making data accessible and secondly, by incorporating an algorithm to see how well the
product aligns with commonality.
Figure 5 – Main Menu of RedSky that a typical user would navigate through. The front end interface was intended to be
simple and focused, whereas the large extent of data would be accessible behind the password protected Admin block.
6
7
Parts Catalog
Having insight into the type of parts being used for a given commodity, there is now an opportunity to
optimize. Component cost, purchase quantity, product usage and part design attributes are all key
pieces of information that can be fairly compared with one another.
Let’s take screws used for securing into plastic as an example. At one point in time, we had as many as
28 different screws that had a thread diameter of 3mm. While there are certain properties that are
diverse enough to be considered critical, there are other properties that are close enough to warrant
debate. We had four screws with lengths of 9, 9.1, 9.86 and 10mm along with head diameters of 5.6,
5.39, 5.6, and 4.85mm respectively. While one can argue that these property differences may have been
critical for their design application, we also knew that declaring one of these screws as our preferred
screw would be met with success for future designs. As such, we were able to identify 10 screws that
we call preferred, giving us a good mix of color, length, and head diameter.
Figure 6 – An example of a report designers see once a search is complete.
The Parts Catalog was rolled out in 2 phases. The first phase focused on a select number of
commodities. The format that allowed for easy searching was then tested with the design community.
Once fully tested and vetted by the R&D community, it was expanded to the other key commodities.
Figure 7 – Example of consolidation summary for electrical components.
Part Lookup
In addition to the Parts Catalog, a Part Lookup utility was provided in the form of a graphical user
interface (GUI). This provides basic queries without the need to navigate an overwhelming amount of
data. Its purpose is to allow a designer to acquire business intelligence for a part that can be searched by
part number, description, or commodity type. Price, purchase quantity, product usage, and
manufacturer usage are then presented back to the user.
Figure 8 – Part Lookup utility with built-in smart searching.
BOM Analyzer
Lastly, the BOM Analyzer is a tool embedded in RedSky that evaluates an itemized BOM in its entirety
for commonality and preferred parts performance. Once a BOM is loaded, it makes the determination
whether a part is new or pre-existing via calculation. Furthermore, it analyzes parts by commodity to
determine if designers are using preferred parts or non-preferred parts.
Behind the calculations, lies a sophisticated algorithm that allows RedSky to make recommendations on
whether a preferred part should be used in the event a non-preferred part is in use. For instance, if a
8
non-preferred part is being used on a legacy assembly, it’s in the best interest of the business to not
make any changes. On the other hand, if there is non-preferred part that is being used for a new design,
its preferred part equivalent is identified along with other information to justify its use such as savings,
usage, etc.
Product Design
R&D REDSKY
BOM Analysis
Production
Target: Lean
Supply Chain
Figure 9 – Closed loop process for maximizing preferred part usage. RedSky imports a BOM under design, analyzes for
performance, and reports back to the design team where there are opportunities.
9
Other Welcomed Benefits of RedSky
What once started off as a tool to provide insight for component commonality, proved to be much more
fruitful in the areas of Cost Optimization, Price Benchmarking and general analytics.
REDSKYParts Catalog
Part Lookup
BOM Analysis
Analytics
Figure 10 – The information and tools that RedSky provides.
Should Cost Price Optimization
Now that design attributes and pricing for similar components are easily accessible, patterns in cost can
now be seen.
For example, as a result of design proliferation, we had two A4-sized scanner glass parts being used in
production, one 2mm shorter in length than the other. What was odd was that the glass with 1% less
material was 10% higher in cost. We challenged the supplier with this knowledge and ultimately drove
the price down by 14%. In addition, we also managed to design the higher material glass out of
production and settled on the lower cost preferred glass.
10
Manufacturer Price Benchmarking
With multiple manufacturers for our products, pricing can be compared for the same components.
Whereas two manufacturers might be charging us $1.00, the other might be charging us $1.10. Since we
can also associate these components with purchase quantity, we have the right level of insight and focus
to determine if these are opportunities to investigate. Was there something unique about the supply
base or were we simply not receiving competitive pricing?
General Analytics
The underlying ability of RedSky is the power to perform different levels of analytics which are
correlated to the attributes loaded into the system. These analytics have been used to drive
commonality and look for opportunities for driving down cost.
There is a wealth of reports that can be produced based on your imagination. You can use RedSky to
summarize how much is spent annually on 100Ω resistors. Maybe instead, you want to generate a part
count for each one of your products in production. Better yet, why not use RedSky to help you
determine the cost impact of one second cycle time for your plastic molded parts.
Conclusion
The RedSky supply chain tool has driven part and design reuse into the HP Inkjet Printer product
development cycle streamlining the product design process and limiting component variation. It has
been well received by the R&D design community due to the fact that it simplifies the part selection
process and makes it easier to design with these parts in mind. Consequently, there is an average 85%
preferred part usage in all new Hewlett Packard Inkjet Printer development. All of this has netted HP
greater than $150M to date.
11
**flextronics_milpitas-2.pdf**
This file is too large to display. [View in new window](https://www.sweetstudy.com/files/flextronics-milpitas-2-pdf)
**## WeekThreeAssignment1InstructionsHM.docx**
**Week Three Assignment 1**
**Week Three Assignment 1 of 3**
**Read and analyze one of the case studies below. Provide a background of the study as your introduction. Repeat each question as your main headings as you answer each part completely. Utilize at least**
**one course reference and**
**two outside references to support your statements. All writing assignments**
**must follow APA guidelines, such as: headings/sub-headings, referencing, quoting, paraphrasing, writing style and formatting.**
**_Do not include an abstract or table of contents for this short assignment._**
**If help is needed in this area, contact the NU's writing center immediately. Students should use National University's digital library for proper peer-reviewed papers as references**
·
[**Flextronics**](https://navigate.nu.edu/content/enforced/175602-SCM610-41662-2607/Week%20Three/flextronics_milpitas-2.pdf) **- PDF Document**
**_(1.35 MB)_**
·
[**https://marketatlas.mergent.com/stock/supplychain/?symbol=FLEX**](https://marketatlas.mergent.com/stock/supplychain/?symbol=FLEX)
·
[**HP Inkjet RedSky**](https://navigate.nu.edu/content/enforced/175602-SCM610-41662-2607/Week%20Three/hp-inkjet-redsky_0-2.pdf) **- PDF Document**
**_(1.08 MB)_**
·
[**https://marketatlas.mergent.com/stock/supplychain/?symbol=HPEWI**](https://marketatlas.mergent.com/stock/supplychain/?symbol=HPEWI)
**_Required for Question #1 below_:**
**- For supplier information, see National University Library, under the SoBE Get Started page (see** [**https://resources.nu.edu/getstarted_sobe/company_more**](https://resources.nu.edu/getstarted_sobe/company_more) **) – select the "**
**Mergent Online" database. (USE THE LINKS UNDER EACH PDF DOCUMENT ABOVE)**
**– Search for these companies by using the names "**
**Hewlett Packard Enterprise Co" (ticker=HPE) or "**
**Flex Ltd" (ticker=FLEX).**
**– Once in the database, click on the SUPPLY CHAIN tab for their supply chain data.**
**– Once you access the supply chain for your company, select a sub-sector or just click SUPPLIERS in the top menu.**
****
**- Don't mix external Supply Chain Member companies with internal functions.**
**- Don't mix cross-functional Processes with the individual functions themselves.**
**Questions:**
1.
**Who are the key supply chain members?**
·
**Describe their roles as responsibilities as they relate to the supply chain.**
·
**What are their key activities within Product Development and Commercialization in the process/function matrix?**
2.
**How was Product Development and Commercialization applied to this situation?**
·
**Which functions played a key role in Product Development and Commercialization process of the supply chain?**
3.
**How was Returns Management applied to this situation?**
·
**If not addressed, how would you implement Returns Management?**
·
**What strategies would you use in your implementation processes?**
4.
**What recommendations do you have for further implementation of the Supply Chain Management processes within this particular supply chain?**
**Provide examples and rationale for your findings.**
**Rubric Name: SCM – Case Study Rubric**
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**## hp-inkjet-redsky_0-2.pdf**
HP's Inkjet Printer Design for Supply
Chain RedSky Database
Hewlett Packard – Inkjet Printer Solutions
By Rick Cortez, Scott McLean, C’Anne Vaughn
Executive Summary
RedSky is a supply chain tool that drives part and design reuse in the product development cycle. It
streamlines the product design process and limits component variation. Along the way, it provides
insight into themes such as price benchmarking, component usage and business analytics helping
optimize the supply chain and associated costs.
Innovation Statement
An approach of using big data to more easily gain insight into supply chain costs and component usage.
This allows us to more efficiently drive supply chain improvements into the products design as well as
optimize supply chain costs.
Impact Statement
Reduces complexity in the supply chain by minimizing component variation and saving HP greater than
$150M to date.
Applicability
RedSky is a process that can be used in any supply chain environment to reduce number of parts, drive
lower cost, and/or perform a wide range of big data analytics.
1
Introduction
Hewlett Packard is a global company with its inkjet printing organization consisting of multiple design
centers, manufacturers and suppliers across the world. This was certainly no mistake from a strategic
standpoint, but along the way development engineers began designing products with a diverse set of
eyes, creating a wealth of unique designs and selection of parts. This translated into a supply chain
organization that was burdened with procuring a large component mix and providing manufacturing
with a diverse set of designs to support. This ultimately led to higher costs.
Designers lacked visibility:
• Component costs
• Product usage
• Existing solutions to reuse
Result:
• Component proliferation
• High complexity
• Costs not optimized
• Missed opportunities “Use this one” “Not this one”
Figure 1 – Engineers attaching several screw types to a wall as a method of communicating which parts should be used.
2
The response was to commission a team, known as Design for Supply Chain (DfSC), which was chartered
to drive component and design commonality. For the team to be successful, it was critical to have data
driven decisions. After all, data was needed to convince a strong and experienced team of product
development engineers that recommendations were in the best interest of the organization.
What started as a tool to help drive design commonality, quickly turned out to be much more as
evidenced by the team’s ability to drive cost savings (see Figure 2).
Annual Cost Savings
$
M
0
20
40
60
80
2009 2010 2014 2011 2012 2013
Figure 2 – In 2010, the HP Inkjet DfSC team was re-purposed from a Post Manufacturing cost reduction group to a team of
engineers that would engage early with R&D and have influence in the product design lifecycle.
3
RedSky
The RedSky Database (RSDB) is a tool developed by the DfSC team to provide the level of insight needed
to drive commonality and optimize costs. It is described as a merging of a product’s bill of material,
component costs, part attributes, forecast volume, and product attributes.
REDSKY
Bill of
Materials
Component
Cost Data
Product
Attributes
Part
Attributes
Volume
Forecast
Figure 3 – Ingredients which make up RedSky that are “relational” in nature.
4
The RedSky integration process involves three distinct steps:
Step 1: The production bill of materials (BOM) is imported from the product manufacturers identifying
the following key elements: products, parts quantities & prices, and assembly structure information.
Generally, this is 100,000 lines of data. While it’s possible to find the price of a given part, one would
need to know exactly where and how to search. Furthermore, it’s difficult to find if there are other
similar parts that might be a better choice based on price and usage.
Step 2: To provide the next level of insight, different attributes are assigned to parts. This allows for
logical organization. Examples of the different attributes are commodity type, such as screw or cable;
and design characteristics, such as glass thickness or inductor value.
Step 3: In the final step, each product is assigned attributes, such as volume forecast, manufacturer, and
product type. This produces a data set consisting of 100,000 rows and 60 fields of data, amounting to
6,000,000 pieces of information that can now be analyzed for different scenarios.
6
0
F
ie
ld
s
Figure 4 – Data set can be scaled up or down, depending on those attributes that are important for analysis and
the number of products and parts in the supply chain.
5
Influencing Product Design
Now that the usage of parts in production is well understood, the next challenge is to make an impact
on product development. Driving commonality means removing parts that are high in cost, low in usage
and steering towards others that are optimal from a supply chain standpoint. There is no better time to
switch to preferred parts than during the product development cycle. Thus, RedSky was enabled to
serve R&D by making data accessible and secondly, by incorporating an algorithm to see how well the
product aligns with commonality.
Figure 5 – Main Menu of RedSky that a typical user would navigate through. The front end interface was intended to be
simple and focused, whereas the large extent of data would be accessible behind the password protected Admin block.
6
7
Parts Catalog
Having insight into the type of parts being used for a given commodity, there is now an opportunity to
optimize. Component cost, purchase quantity, product usage and part design attributes are all key
pieces of information that can be fairly compared with one another.
Let’s take screws used for securing into plastic as an example. At one point in time, we had as many as
28 different screws that had a thread diameter of 3mm. While there are certain properties that are
diverse enough to be considered critical, there are other properties that are close enough to warrant
debate. We had four screws with lengths of 9, 9.1, 9.86 and 10mm along with head diameters of 5.6,
5.39, 5.6, and 4.85mm respectively. While one can argue that these property differences may have been
critical for their design application, we also knew that declaring one of these screws as our preferred
screw would be met with success for future designs. As such, we were able to identify 10 screws that
we call preferred, giving us a good mix of color, length, and head diameter.
Figure 6 – An example of a report designers see once a search is complete.
The Parts Catalog was rolled out in 2 phases. The first phase focused on a select number of
commodities. The format that allowed for easy searching was then tested with the design community.
Once fully tested and vetted by the R&D community, it was expanded to the other key commodities.
Figure 7 – Example of consolidation summary for electrical components.
Part Lookup
In addition to the Parts Catalog, a Part Lookup utility was provided in the form of a graphical user
interface (GUI). This provides basic queries without the need to navigate an overwhelming amount of
data. Its purpose is to allow a designer to acquire business intelligence for a part that can be searched by
part number, description, or commodity type. Price, purchase quantity, product usage, and
manufacturer usage are then presented back to the user.
Figure 8 – Part Lookup utility with built-in smart searching.
BOM Analyzer
Lastly, the BOM Analyzer is a tool embedded in RedSky that evaluates an itemized BOM in its entirety
for commonality and preferred parts performance. Once a BOM is loaded, it makes the determination
whether a part is new or pre-existing via calculation. Furthermore, it analyzes parts by commodity to
determine if designers are using preferred parts or non-preferred parts.
Behind the calculations, lies a sophisticated algorithm that allows RedSky to make recommendations on
whether a preferred part should be used in the event a non-preferred part is in use. For instance, if a
8
non-preferred part is being used on a legacy assembly, it’s in the best interest of the business to not
make any changes. On the other hand, if there is non-preferred part that is being used for a new design,
its preferred part equivalent is identified along with other information to justify its use such as savings,
usage, etc.
Product Design
R&D REDSKY
BOM Analysis
Production
Target: Lean
Supply Chain
Figure 9 – Closed loop process for maximizing preferred part usage. RedSky imports a BOM under design, analyzes for
performance, and reports back to the design team where there are opportunities.
9
Other Welcomed Benefits of RedSky
What once started off as a tool to provide insight for component commonality, proved to be much more
fruitful in the areas of Cost Optimization, Price Benchmarking and general analytics.
REDSKYParts Catalog
Part Lookup
BOM Analysis
Analytics
Figure 10 – The information and tools that RedSky provides.
Should Cost Price Optimization
Now that design attributes and pricing for similar components are easily accessible, patterns in cost can
now be seen.
For example, as a result of design proliferation, we had two A4-sized scanner glass parts being used in
production, one 2mm shorter in length than the other. What was odd was that the glass with 1% less
material was 10% higher in cost. We challenged the supplier with this knowledge and ultimately drove
the price down by 14%. In addition, we also managed to design the higher material glass out of
production and settled on the lower cost preferred glass.
10
Manufacturer Price Benchmarking
With multiple manufacturers for our products, pricing can be compared for the same components.
Whereas two manufacturers might be charging us $1.00, the other might be charging us $1.10. Since we
can also associate these components with purchase quantity, we have the right level of insight and focus
to determine if these are opportunities to investigate. Was there something unique about the supply
base or were we simply not receiving competitive pricing?
General Analytics
The underlying ability of RedSky is the power to perform different levels of analytics which are
correlated to the attributes loaded into the system. These analytics have been used to drive
commonality and look for opportunities for driving down cost.
There is a wealth of reports that can be produced based on your imagination. You can use RedSky to
summarize how much is spent annually on 100Ω resistors. Maybe instead, you want to generate a part
count for each one of your products in production. Better yet, why not use RedSky to help you
determine the cost impact of one second cycle time for your plastic molded parts.
Conclusion
The RedSky supply chain tool has driven part and design reuse into the HP Inkjet Printer product
development cycle streamlining the product design process and limiting component variation. It has
been well received by the R&D design community due to the fact that it simplifies the part selection
process and makes it easier to design with these parts in mind. Consequently, there is an average 85%
preferred part usage in all new Hewlett Packard Inkjet Printer development. All of this has netted HP
greater than $150M to date.
11
**flextronics_milpitas-2.pdf**
This file is too large to display. [View in new window](https://www.sweetstudy.com/files/flextronics-milpitas-2-pdf)