IBM—华为PDM项目BR04.TotalSupplyChainMgmt0205.doc

Business Re-engineering Project PlanBR04. Total Supply Chain Management FeasibilityInformation Technology Strategy and Plan ConsultancyPhase 3 ReportFebruary, 1999BR04. Total Supply Chain Management FeasibilityScope and ObjectiveThis project is concerned with assessing the feasibility of implementing Total Supply Chain Management (TSCM) given that Huawei has a fully integrated, functioning , robust and efficient MRPII capability that has been delivered by the “MRPII Enhancement” project.TSCM optimizes the inbound and outbound logistics from order receiving to delivery to customers through integration upward with suppliers as well as downward with customers. The critical success factor of TSCM is close relationship with suppliers and customers. Therefore, this project will focus on evaluating costs/benefits of strengthening collaboration with major suppliers and customers through IT enabled linkages. The total benefits of implementing MRPII modules are expected to further expand while achieving effective collaboration with suppliers and customers. It is expected that implementing TSCM in Huawei brings the following competitive advantages: Secure on-time and stable material delivery from suppliers. Lower inventory carrying costs. Reduced production cycle time by implementing Just In Time system. Increased customer responsiveness through integrated customer relationships. Reduced late deliveries leading to higher customer satisfaction.The assessment covers all evaluation necessary for cost/benefits to be derived from implementing TSCM. It also includes implications for process, organization, and technology. Specifically this includes the analysis of: Interdependencies with suppliers. Relationship with customers. Collaboration with customers and suppliers. Potential organization and process changes. IT interfaces and applications.Specific areas of investigation within the scope of this project are as follows: Supplier details including procurement history, contact details, IT capabilities, and IT systems. Customer details including installed product details and service history, contact details, IT capabilities, and IT systems. Compatibility of customer and supllier systems with those of Huawei. Potential organization and process changes including Order Entry, Sales Forecast, Production Planning, Procurement, Manufacturing, Delivery, and Customer Service.It is understood inclusion of suppliers, more so than customers, into Huawei supply chain will offer greater benefits in the short term. The scope of this assessment has been designed to include suppliers and customers. When the project is initiated, the exact focus on suppliers and customers should be confirmed. Should it be determined that the focus on customers be reduced, then the project plan should be adjusted accordingly.The projects objective is to answer the following questions: Whether Huawei should implement TSCM, considering the feasibility and willingness of Huaweis suppliers and customers? If Huawei decides to implement TSCM, what changes should be made to the current organization and business processes? If Huawei decides to implement TSCM, what IT interfaces and application changes would be needed to facilitate operations of the supply chain? What would be the costs and benefits of achieving TSCM? What are the risks associated with achieving/not achieving TSCM? If feasible, how long would it take to implement TSCM? If feasible, what broad strategies are recommended to obtain the agreement of key suppliers and customers to join Huaweis TSCM? If feasible, which suppliers and customers would be selected as pilots?Note: This project has specifically excluded any reference to Year 2000 capability including Year 2000 contingency planning and compliance issues. As such the IBM consultant team has not provided any advice nor does it make any recommendations in respect of ensuring Year 2000 compliance for any existing or proposed systems. In all cases where technology solutions are referenced the technology supplier should be contacted to determine Year 2000 compliance status.Business BenefitsIntangible benefitsThis project will provide Huawei with information it needs to expand into TSCM, and if feasible, what will need to be done to achieve it.Tangible benefitsThis project will provide the following tangible benefits: Clear decision on how to proceed with supply chain management. Target list of suppliers and / or customers for implementing supply chain management.ApproachThis assessment project will be undertaken in four phases: Initiation. Internal Assessment. External Assessment. Feasibility Assessment.InitiationThe Initiation phase is concerned with reviewing the scope of supply chain and defining the research base to reach consensus on issues such as the number of suppliers and customers that are desired to be incorporated within TSCM. Upon confirmation on the scope of supply chain, a detailed assessment plan should be created to serve as guidelines for the assessment process as well as criteria for the selection process in the following three phases. Internal AssessmentThis phase is to provide an overall understanding of what tasks and processes are related to TSCM and what they are currently being operated (As-Is) and going to be changed for the purpose of implementing TSCM. Various internal analysis will be conducted regarding current IT environment, organization and business process changes, interdependencies with suppliers, and customer base. This phase is also aimed to define the appropriate interface for future effective collaboration with suppliers and customers.One key consideration is to assess the interdependencies with major suppliers to determine which suppliers hold critical and unique resources that Huawei needs to run a seamless TSCM. Another key consideration is to look at broad customer base in attempt to identify appropriate customers for incorporating into TSCM collaboration.Once the target lists of suppliers and customers are identified and confirmed, Huaweis top management will be involved in sending formal invitations to target partners to jointly assess the feasibility of implementing TSCM. Finally, in this Internal Assessment phase, the predefined assessment approach, together with the lists of confirmed suppliers and customers on which the external assessment will be based, are finalized prior to starting the External Assessment phase.External AssessmentThis phase undertakes the external assessment starting with interviews and onsite visits with target suppliers. Critical issues such as the suppliers current business environment, practice, processes and IT capability will be explored and documented in the format predefined for assessment. A detailed assessment report will be produced covering the IT feasibility, capital investment requirements, readiness and, most importantly, willingness of the target suppliers. It is critical to understand whether those target suppliers will be willing to participate in TSCM.Following the assessment of suppliers will be the research of target customers, similar to those of supplier analysis. The detailed report of customer analysis will provide Huawei with a clear understanding of the IT feasibility, capital investment requirements, readiness, and willingness of target customers to participate in TSCM.Through supplier and customer analysis, major obstacles and issues, if any, will be identified and strategies to resolve them will be recommended. At the end of this phase, potential candidate suppliers and customers will be identified for inclusion in Huaweis TSCM.Feasibility AssessmentDuring the feasibility assessment phase, a cost and benefit analysis will be undertaken. This report will incorporate cost and benefit information gathered through External Assessment phase, and will provide justification for implementing TSCM. A risk analysis will be conducted to highlight the potential threats associated with TSCM given the underlying business and IT environment of Huawei and its suppliers and customers.At the end of this Feasibility Assessment phase, the entire set of recommendations proposed will be presented and will serve as the foundation for developing an implementation strategy for TSCM collaboration with suppliers and customers.Details of the activities and tasks to be undertaken are set out in the appendix to this document.Resources and TimingSkills and Experience RequiredThis project requires a combination of resources that bring skills and experience in Supply Chain Management (SCM), feasibility assessment, cost/benefit analysis and implementation strategy and planning. The project will also require access to resources that have an in-depth knowledge of Huaweis current supply chain practices and procedures. Specifically the skills required are: Huawei Skills: Knowledge of current supply chain business processes and organization within Huawei e.g. order entry, marketing & sales, procurement, manufacturing and distribution. Knowledge of current systems being used in Huawei. Consultancy Skills: SCM subject matter expertise, including: On-time and stable material delivery from suppliers. Just In Time Management. Integrated customer relationships. Potential organization and process changes required to support TSCM. Cost/benefit analysis. Implementation strategy and planning. Feasibility assessment.Resources RequiredTo complete this project requires a coordinated team of Huawei and consulting resources as defined below: Huawei Project Core TeamProject Manager - full time responsibility (in conjunction with the Consulting Project Manager) for overall delivery of the project. Specifically the Project Manager will be responsible for liaison with the Consulting Project Manager to ensure project effectiveness, consultation with the Huawei Executive Sponsors and Huawei Management to ensure understanding and acceptability of recommendations. Project Manager should also advise the Project office and Steering Committee on the recommended approach in dealing with suppliers and customers through the study.Project Core Team Members - full time role to assist consulting team with coordination of Business Department Staff, administrative arrangements for the project, word processing and preparation of presentations. Huawei Business Department Staff - part time role to provide advice on current practices and work with the consulting team as required. These individuals will require an in-depth knowledge of the business areas, customers and suppliers within the scope of the project. ConsultantsProject Manager - full-time responsibility (in conjunction with the Huawei Project Manager) for overall project delivery. Specifically the Project Manager will be responsible for liaison with the Huawei Project Manager to ensure project effectiveness; consultation with Huawei Project Executive Sponsors and Huawei Management to ensure understanding and acceptability of recommendations from the study. It is essential that this person possesses the consulting skills listed above.Associate Consultant - full time responsibility for assisting the Project Manager with the assessments and the production of deliverables.Timing and InterdependenciesThis project should be completed within an elapsed time of 4 months.This project is dependent on “MRPII Enhancement” project as TSCM will be feasible only if Huawei has a fully integrated, functioning, robust and efficient MRPII capability that has been delivered by the “MRPII Enhancement” project.10 / 10Project PlanActivityElapsedResponsibilityWeeksDays1234567891011121314151 Initiation1.01 Initiate Project3PM, AC1.02 Confirm the target scope of supply chain3PM, AC1.03 Confirm the assessment approach4PM, AC2 Internal assessment2.01 Assess current IT environment3PM, AC2.02 Assess organization and business processes2PM, AC2.03 Assess the interdependencies with major suppliers3PM, AC2.04 Assess the customer base2PM, AC2.05 Confirm major suppliers and customers to be assessed 3PM, AC2.06 Obtain agreement from target suppliers and customers to participate in feasibility assessment5PM, AC2.07 Milestone2PM, AC3 External assessmentAssess target suppliers (this covers activities 3.01, 3.02, 3.03)15PM, AC3.01 Evaluate potential strategic alliance opportunities among target suppliers3.02 Assess target suppliers current IT environment and business processes3.03 Assess the IT feasibility, potential capital investment, readiness and willingness of target suppliers Assess target customers (this covers activities 3.04, 3.05, 3.06)20PM, AC3.04 Evaluate target major customers3.05 Assess target customers current IT environment and business processes3.06 Assess the IT feasibility, potential capital investment, readiness and willingness of target customers3.07 Milestone1PM, AC4 Feasibility assessment4.01 Conduct cost/benefit analysis2PM, AC4.02 Assess the risk associated with the implementation and potential alliances2PM, AC4.03 Prepare recommendation report based on overall assessment of costs, benefits, and risks2PM, AC4.04 Develop strategies and plan for TSCM implementation2PM, AC4.05 Milestone1PM, ACAssumptions:The plan assumes the following numbers of suppliers and customers will be involved in the assessment: 5 Suppliers. 10 Customers.Legend of ResponsibilitiesThe responsibility codes used in the Project Plan are described in the table below.Responsibility CodeDescription of ResourcePMProject ManagerACAssociate ConsultantAppendix: Detailed Activities by Phase1 INITIATION1.01Initiate ProjectArrange project logistics, assign resources and assets to orient project team.1.02Confirm the target scope of supply chainReview the scope of supply chain as well as the research base, and gain consensus on issues, i.e. how many suppliers and customers should be included in TSCM.1.03Confirm the assessment approachDetermine how to analyze internal business and IT environments and how to approach the external suppliers and customers.2INTERNAL ASSESSMENT2.01 Assess current IT environment Identify current IT application, system, and network related to future TSCM implementation in order to recommend the appropriate interfaces with suppliers and customers after comprehensive assessments being done.2.02 Assess organization and business processesIdentify potential organization and business changes necessary to accommodate TSCM in an attempt to facilitate design seamless collaboration with suppliers and customers within TSCM.2.03 Assess the interdependencies with major suppliersDetermine the criticality of each major supplier to decide which should be included in the target list for further evaluation of potential to participate in Huaweis TSCM, i.e. which suppliers could provide the economies of scale to Huawei or which dominates the most important resources that Huawei needs.2.04 Assess the customer baseConduct analysis of broad customer base and identify major customers to be included in the target list for further evaluation of potential.2.05 Confirm major suppliers and customers to be assessedReview and finalize target suppliers and customer list for in-depth evaluation of collaboration potential.2.06 Obtain agreement from target suppliers and customers to participate in feasibility assessmentInvolve Huaweis Executive management in the process of inviting target suppliers and customers to jointly assess the feasibility of TSCM collaboration. List down evaluation criteria, including but not limited to criticality, capability, readiness and willingness, for customers and suppliers selection of potential TSCM collaboration.2.07 MilestonePresent results of Internal Assessments and success rate of invitations issued to suppliers and customers. Agree on most appropriate way to proceed through External Assessment phase.3EXTERNAL ASSESSMENT3.01 Evaluate potential strategic alliance opportunities among target suppliers Conduct on-site visits and interviews with Executive Management of target suppliers to gain overall understanding of their current business environment and willingness to participate in Huaweis TSCM.3.02 Assess target suppliers current IT environment and business processesReview target suppliers current IT application, system, and network as well as key business processes to decide on how the suppliers internal capabilities would need to be changed to accommodate participation in Huaweis TSCM.3.03 Assess the IT feasibility, potential capital investment, readin