1 / 10

Bourgon Frederic/Tina Tsai / Shirley Lu Feb., 2009

February ESS Business Interlocks Foxconn / hp Inventory concerns and actions on high valued parts Status update. Bourgon Frederic/Tina Tsai / Shirley Lu Feb., 2009. Summary. January results. Obsolescence Risk - CPU $396K,$66K decreased from Dec. Memory $34K flat compared to Dec.

irene-miles
Download Presentation

Bourgon Frederic/Tina Tsai / Shirley Lu Feb., 2009

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. February ESS Business InterlocksFoxconn / hpInventory concerns andactions on high valued partsStatus update Bourgon Frederic/Tina Tsai / Shirley Lu Feb., 2009

  2. Summary • January results • Obsolescence Risk - CPU $396K,$66K decreased from Dec. Memory $34K flat compared to Dec. - Inventory Level - High DOI across the board. - Layering cost - Jan layering CPU $114K and memory $401K owned to Foxconn.

  3. Inventory Level • Intel chipset DOI increased from 27 days (Dec) to 46 days as the 1st month • consumption was 20% decreased from Dec. • NA AMD CPU DOI flat compared with Dec. • Memory WW high DOI resulted from DL380G & DL160G5 forecast drop. • HDD CZ DOI was improved compared with Dec and will further improve after Feb. • rebalancing to Wistron.

  4. Layering Cost • Microprocessor • 6 AMD PNs had price drop in Jan. $0.6K $17K Total layering $114K -Raw material :$33K -FGI:$81K $76K • No price drop expected in March. • Memory • Price drop on Jan. 1st. Total layering $401K. - Raw material :$341K - FGI:$60K • 18parts price drop in March. $114K $401K $600.2K

  5. Back up

  6. Hub V.S. ODM Locations Hub Original warehouse ODM site Amsterdam (Intel/AMD CPU) Brno (HDD RR Donnelly) Pardubice (FCZ) Dallas (AMD CPU) HDD RR Donnelley Foxconn China Houston Intel CPU FHS Costa Rica (Intel CPU 20% non hub parts ) HDD RR Donnelley Penang (Intel Chipset) AMD CPU Singapore Parts Buffered in hub

  7. Memory- supplier region warehouse Assumption: Parts available in warehouse

  8. Questions from Sep. Interlock • DOI Calculation - DOI is in calendar days Provided by HP RBU according to expected service level & transportation lead time Formula: ODM QOH/(4 week FCST demand/30 days); FCST is provided by HP • Why CPU DOI target is different in NA and EMEA? - Target DOI is provided based on transportation lead time. Transportation Lead time is a function of ODM V.S. Hub location. • Need to be sure all regions are ok with target DOI - Yes, all regions are ok with target DOI. However, it may change in the future. • Include PCA, Chassis and PSU in inventory review ? - No, because of no layering impact on HP. Should be ODM focus

  9. Obsolescence Risk - CPU total 396K. $95K return to AMD in end of Jan.

  10. Obsolescence Risk - Memory total $34K will rebalance.

More Related