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2014 GSCMI Case Competition

2014 GSCMI Case Competition. Team MECE Presentation. Yejin Lee| Bumsun Ryu Saya Lee| Ryan Seongjin Shin. Agenda ( Yejin ). Problem Statement Recommendation Analysis Implementation / Risk Mitigation Evaluation of Alternatives Conclusion. Problem Statement ( Yejin ). Key Issues?.

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2014 GSCMI Case Competition

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  1. 2014 GSCMI Case Competition Team MECE Presentation Yejin Lee| BumsunRyu Saya Lee| Ryan Seongjin Shin

  2. Agenda (Yejin) • Problem Statement • Recommendation • Analysis • Implementation / Risk Mitigation • Evaluation of Alternatives • Conclusion

  3. Problem Statement (Yejin) Key Issues? • Unbalanced performance between the west and the east • High premium freight frequency • High overall inventory level Short-Term Long-Term Premium Freight Frequency Build Supply Network Inventory Level Sustains the Growth Problem Statement Recommendation Analysis Implementation & Risk Evaluation of Alternative Conclusion

  4. Recommendation (Yejin) Short-Term Long-Term Kanbanized Warehouse CMSC Problem Statement Recommendation Analysis Implementation & Risk Evaluation of Alternative Conclusion

  5. Multiples Analysis (Saya) • How to reduce inventory level? • Lean manufacturing – Dallas • Balanced lead-time • Barely use of plants and CDCs • Lead-time vs. Inventory level • Balanced lead-time  Less WIP  low Inventory • No bottleneck • Bottleneck in Supply Chain Problem Statement Recommendation Analysis Implementation & Risk Evaluation of Alternative Conclusion

  6. Analysis Continued (Saya) What causes bottleneck? Lean Manufacturing – Dallas • Overcome Basic time by maximizing warehouse uses • Overcome Transportation time by Premium Freight • Overcome Shipping rotation time, Consolidation wait time by barely use of plants or CDCs Basic time (item to item) Transportation time Shipping rotation time Consolidation wait time Problem Statement Recommendation Analysis Implementation & Risk Evaluation of Alternative Conclusion

  7. Graphic Analysis (Bumsun) Before and After Dallasized San Francisco – SAT It shows high freight cost, inventory, and difference between COGS and order. The average turn over ratio is 50%. Dallasized SF – SAT By matching COGS and order, it showed decreasing inventory and no premium shipment cost. Problem Statement Recommendation Analysis Implementation & Risk Evaluation of Alternative Conclusion

  8. Analysis Continued (Bumsun) Dallasized and Kanbanized Problem Statement Recommendation Analysis Implementation & Risk Evaluation of Alternative Conclusion

  9. Implementation & Risk (Ryan) Short-Term Action Plan • Contract with warehouse in West based on an optimized location • Change Shipping Structure • Hire Supply Network Director in West • Store longer lead-time needed materials Long-Term Action Plan • Purchase new warehouse location and customize based on the efficiency of the center • Build CMSC in West based on the data collected • Global Market Problem Statement Recommendation Analysis Implementation & Risk Evaluation of Alternative Conclusion

  10. Evaluation of Alternative (Ryan) Problem Statement Recommendation Analysis Implementation & Risk Evaluation of Alternative Conclusion

  11. Conclusion (Ryan) Recommendation Implementation • Build an optimized location for the warehouse • Purchase new warehouse on the efficiency of the center • Build CMSC in West based on the data collected • Build CMSC for further market • Build a warehouse • Dallasization & Kabanization • Compliance with DOE terms necessary • No experience with mass production Strategic Approach Potential Risks • Collect more data to build or buy any additional needed • Target Global market • Site of warehouse related issues • Demand Uncertainty • Competitors Problem Statement Recommendation Analysis Implementation & Risk Evaluation of Alternative Conclusion

  12. Financial Result Q A &

  13. Appendix

  14. Key Assumption • Manufacturing process and ability are similar across all CMSC. • CMSC is focused on customization orders that leads Advanced Purchase items. • The amount of order in dollar matches the COGS within 10% distribution due to Dallasizing (Slide 7). • Manufacturing process takes 5 days and same for all parts (Slide 8). • *Premium Shipment Frequency & Total Order Amount is Equally Weighted (Appendix) • *Premium Order / Total Order = Average Above 7.5% Considered (Appendix)

  15. Location Optimization Based on the Minisum Analysis, Results are 39°81‘44.9"N -110°25‘14“W

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