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The Grand Plan

The Grand Plan. Ahmad Kian VP Global Procurement Rosemount Measurement July 2008. We have a Complex Supply Chain. Gothenburg, Sweden. Minnesota, USA. New. Neesved, Denmark. Wessling, Germany. Beijing, China. Daman, India. New. Pusan, S. Korea. Shanghai, China. New. London, U.K.

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The Grand Plan

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  1. The Grand Plan Ahmad Kian VP Global Procurement Rosemount Measurement July 2008

  2. We have a Complex Supply Chain Gothenburg, Sweden Minnesota, USA New Neesved, Denmark Wessling, Germany Beijing, China Daman, India New Pusan, S. Korea Shanghai, China New London, U.K. Antwerp, Belgium Colorado, USA Texas, USA Singapore Karlstein, Germany Chelyabinsk, Russia 17 Manufacturing Sites 2000+ Global Suppliers

  3. Lowest Annual Spend of “A” Parts by Site • RTC $53k • RTR $14k • PIC $25k • Damcos $12k • BMMC $103k • Mobrey $9k • GTMC $13k EMR Corporate Wide $26k This phenomenon exists across all Emerson Sites

  4. The Grand Plan The Grand Plan - is based on when a part hits $1,000 in spend • A+ : More than $1,000 per day average • More than $260,000 annual spend • Goal : daily Kanban • A : More than $1,000 per week average • More than $52,000 annual spend • Goal : weekly deliveries/Kanbans • B : More than $1,000 per month average • Between $52,000 and $12,000 annual spend • Goal : monthly deliveries • C : Less than $1,000 per month average • Less than $12,000 annual spend • D : Non-forecasted / low usage A simpler way to categorize the ABC parts that makes more economical and logistics sense

  5. Current (A) compared to The Grand plan

  6. Guidelines

  7. ABC Template - RMD

  8. We will still focus on using this standard process to address (A+) part issues

  9. We will still focus on using this standard process to address (A) part issues

  10. Summary • Reduce Complexity without sacrificing the opportunity • Aligning opportunities with Resources • Data Driven Decision making • Leveraging MIN Database • Clear Accountability by Functional Organizations • Supplier Quality/Lean • Commodity Mangers • Planning • Logistics Weekly MIN Inventory feeds and Inventory Analysis Tool (IAT) similar to Parts Analysis are essential to succeed corporate wide

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