Solectron From Contract Manufacturer To Global Supply Chain Integrator2009

L o g o
Solectron: From Contract

Manufacturer to Global Supply
Chain Integrator

M9821803 Selenge
D9801001 Sean
D9601302 Ryan

www.themegallery.com
Outline
Overview of Solectron Corp
1
Case Introduction
2
Questions
3
Q & A
4
Solectron corporation
Solectron Corporation was a global
electronics manufacturing company for
original equipment manufacturers
(OEMs). It pioneered the electronics
manufacturing services (EMS) industry
in 1977 and is a leader in the field.
Solectron first customer designed and provides integrated
solutions that span the entire product cycle-from pre-
production planning and design, to manufacturing,
distribution and end-of-life product service support-for the
worlds leading electronics original equipment
manufacturers.
Solectron corporation
Electronics Manufacturing Services provider
Founded in 1977
Headquartered in Milpitas, Calif.
Sales of $10.4 billion in fiscal 2005
More than 50 locations worldwide
More than 50,000 employees
Spans five continents, in more than 20 countries
Serving customers in communications,
networking, computing and storage, consumer
products, automotive, medical and industrial
markets
Traded on the NYSE, under the symbol SLR
Two-time winner of the Malcolm Baldrige Award
Core Business
Telecommunications /29%/ Cellular infrastructure equipment, Voice over
Internet Protocol (VoIP) equipment, IP PBX, wireless and wire line Broadband
infrastructure, optical networking equipment and DSLAMS.
Networking /27%/ Core and edge routers, core and edge Ethernet switches, DSL
and cable broadband equipment, NICs and optical interconnect.
Computing and Storage /25%/ Mainframe computers, PCs and notebooks,
point-of-sale systems, servers, storage systems and workstations.
Others /19%/
Markets Automotive ABS and airbag control modules, car audio and navigation
systems, engine and ignition control modules, telemetric, HVAC units and body
electronics.
Consumer Handheld devices (MP3 players, mobile handsets, GPS), video game
systems, PDAs, personal video recorders and digital set-top boxes.
Industrial Process automation equipment, test and measurement instruments,
security systems, semiconductor fabrication equipment controls and handheld
instruments.
Medical X-ray equipment, ultrasound equipment, fetal monitors, MRI scanners,
blood analyzers and surgical robotic systems.
Field Services - Solectron also holds direct contracts with large companies,
providing an end user defect exchange solution for electronic units in the field.
Aftermarket services - warranty management, parts management and logistics,
forward and reverse logistics, fast repair and return, asset recovery and remarketing.

Solectron Corporation Business Segments
Solectron corporations Top Customers
Text
Solectron Financial Data
Solectron Corporations Business Units
Technology
Solutions
Which is provided technology building blocks that
helped customers minimize time-to-market for new
products
Global
Manufacturing
Which provided design, new product introduction, and
manufacturing and distribution services
Global Service
Which is provided repair, upgrade, and maintenance,
as well as logistics, return management, warehousing
and many other post-manufacture support activities
Global Materials Business Units
Global Materials
Providing
sourcing
Procurement
Other
common
supply base
management
resources
Culture and Development
Solectron cultural development
started in 1978, when Dr. Winston
Chen joined the company as
president. He used 2 basic principles
to run the company:
1. Superior customer service
2. Respect for the individual
3. Low cost & high quality

We dont tell people, Youre good, or Youre
bad. We say, Heres what the customers say. Thats
very powerful tool.
Dr. Winston Chen
Company Vision, Mission, Beliefs
Vision
Be the best and
continuously improve
Mission
Our mission is to prove worldwide responsiveness to our
customers by offering the highest quality, lowest total
cost, customized, integrated design, supply chain and
manufacturing solutions through long-term partnerships
based on integrity and ethical business practices
Beliefs
Customer first
Respect for the individual quality
Supplier partnership
Business Ethics
Shareholder Value
Social Responsibility

The Five Ss
SEIRI
Organization:
Distinguish between those
things that are needed and not
needed.
Keep only needed materials
at the job site
Throw away all unneeded
items immediately

The Five Ss cont
SEITON
Orderliness:
Put things in the right order
in the designed area
Store all materials and
information in an orderly
fashion at all times. tidy, ready
to use, organized according to
frequency of use
A place for everything and
everything in its place

The Five Ss cont
Cleanliness
Problems are more visible
when everything is neat and
clean
Find minor defects while
sweeping clean

SEISO
The Five Ss cont
Standardize
Clean tools, equipment, and job
site immediately after use
Equipment that s kept clean
runs better

SEIKETSU
The Five Ss cont
Discipline
Use and follow standard
procedures
Follow company rules and
regulations
Follow safety procedures at
all times

SHITSUKE
The Five Ss
Supply Chain Solution
Design
Collaborative
design support
Design for
excellence
Launch
Supply chain
design and
sourcing
New product
introduction
engineering
service
Manufacturing
PCB and
subsystem
manufacturing
and test
System test
assembly and
test
Service
Fulfillment and
logistics
Repair
EOL services
Materials
and Supplier
Management
Information
flows
Baldrige Award
His approach was to never be satisfied,
continually question existing practises, and
strive for the continuous improvement
Dr. Koichi Nishimura joined company 1988.
For his contribution to advancing
manufacturing practices, Nishimura has been
recognized by the American Society of
Mechanical Engineers and Solectron was
twice awarded the Federal Government's
Malcom Baldrige Award for manufacturing
quality.
Most people think were a manufacturing company. Were good
at manufacturing, but were really a service company.
Koichi Nishimura, Solectron CEO
The Malcolm Baldrige
National Quality Award is
an annual award that
recognizes U.S.
organizations in the
business, health care,
education, and nonprofit
sectors for performance
excellence. It is
administered by the
Baldrige National Quality
Program, which is based at
and managed by the
National Institute of
Standards and Technology,
an agency of the U.S.
Department of Commerce.

The Benefits customer satisfaction assurance
Created a
new culture -
Total
Customer
Satisfaction
Retain
customers
longer
Become
more
customer
driven
Recognised
for excellent
service by
customers
Used as a
tool for
management
innovation
Increased
revenue
through
existing
customers
Solectron
won the
MBNQA
twice
Study Questions

1. How has Solectrons value
to its customers evolved over
time?
Solectron Beliefs
Customer First: strengthen customer partnerships by
providing products and services of the greatest value
through innovation and excellence
Respect for the Individual: emphasize associate dignity,
equality and individual growth
Quality: execute with excellence; drive to six-sigma
capability in all key processes; exceed customer
expectations
Supplier Partnerships: emphasize communication,
training, measurement and recognition
Business Ethics: conduct business with uncompromising
integrity
Shareholder Value: optimize business results through
continuous improvement
Social Responsibility: be an asset to the community
Solectrons Day-to-day practice
Wednesday
Thursday Tuesday

Customer satisfaction review
Management training provided
by a combination of company
executives and external guest
speakers

Quality
Process improvement
Knowledge sharing
Customer satisfaction
data review
Program management
Solectrons Customer Complaint
Resolution Process
Customer
complaint
Complaint
log-in
Weekly CSI
Acknowled
ge within
24hours
Update log
Customer
acknowled
ges closure
on next
CSI
CCRP 24
hours
QIP 72
hours
Problem
Process in
control
Yes
Yes No
Customer Loyalty

Customer satisfaction management at Solectron
The ability to reliably meet variable end-market
demand
The ability to capture upsides and accommodate
downsides at lowest possible cost
Faster, more predictable and measurable performance
Highest
possible
Service
Lowest total cost of ownership through optimized
supply chain networks
Continuous improvements through shorter lead-
times and rapid information
Continuous
Cost and Risk
Reduction
Rapid access to reliable information
Standardized processes, tools, and reports at all
nodes in the supply chain
Supply Chain
Visibility
Study Questions
2. How has global expansion
contributed to Solectrons
ability to move from a
contract manufacturing
supplier to a supply chain
integrator?
Supply Chain Integrator Dimension
Dimension Elements Benefits
Information Integration Information sharing &
transparency
Direct & real-time
accessibility
Reduced bullwhip effect
Early problem detection
Faster response
Trust Building
Synchronized Planning Collaborative planning
forecasting & replenishment
Joint Design
Reduced bullwhip effect
Lower cost
Optimized capacity
utilization
Improved service
Workflow Coordination Coordinated production
planning & operations,
procurement, order
processing, engineering
change & design
Integrated, automated
business process
Efficiency & accuracy gains
Fast response
Improved service
Earlier time to market
Expanded network

New Business Models

Virtual resources
Logistics restructuring
Mass Customization
New Service

Better asset utilization
Higher efficiency
Penetrate new markets
Create new product
Supplier
Web
Publishing
Supplier
/Customer info
thru the WEB
WW Matls
Date
Sites
Report writer
Fast what if
CRM
Other Financial
Apps
Financial
Consolidation
Core ERP Applications:
Materials
Manufacturing
Finance
Service

Multisite Integration Model
Ware house
Mgmt. system
PDM
Connectivity
Shop floor
Control

Customer
Solectron Pull Production System
Complain
Complain
customer
Product
Customer
Satisfaction
Center
Manufacturing
Product
Assembly
test
Information Distortion and Bullwhip Effect

Synchronized Planning

Product Definition
Product
Development
Product
Introduction
Customer
Concept
New Product
Introduction
Prototype
New Product
Introduction
Launch
Produce
Workflow Coordination
New Business Model
Solectron introduced a new Business Model
purchased manufacturing sites from IBM.
Model was repeated many times, and
Solectron rapidly grew.
It acquired manufacturing facilities from
customers, and used those to fulfill long-
term supply contracts.
It allowed for risk pooling, as fluctuating
demands from different companies were
smoothed, and safety stock levels of
common component inventory could be
reduced

Question
How has the company
been able to successfully
integrate its acquisitions?
Assign An Integration Team (4 to
8 members)
Consists of Finance, Human
resources, operations, Materials,
IT
Acquisition Business Integration
Checklist
Work with acquired company for
3 to 6 months
Until the new employees acting
as a Solectron resource

Question
What was the impact of the
companys culture on the success of
the company on the business
downturn of 2001, and on its ability
to respond to the business downturn?
On the success stage: Quality Awards
and day-to-day practice make
Solectron eager to expand its scale
On the downturn: Fulfilling its
customers forecast( proved wrong),
impact Solectrons inventory and
suppliers.
On the ability to response business
downturn: Solectron has excellent
culture on quality & diligent practice.
The downturn may impact Solectrons
acquisition culture (strategy)
P.S.: Solectron was acquired by Flextronics in 2007.

Question
What additional products and
services should Solectron
provide to its customers in
the future

Technology solutions
Global manufacturing
Global services
Global Service
Logistics
-Channel Returns
-Exchange
-Fulfillment & CTO
-Service Parts Logistics

Recovery & Remarketing
-Asset Recovery
-Remarketing
-e-waste
Repair
-Like-Unit Repair
-Same-Unit Repair
-Field Service Repair
Question
What should the company do
in the short termIn the long
term

In the short term
a restructuring that included
workforce reductions and facility
closures
In the long term
The use of outsourcing as an
OEM strategy continued to accelerate

L o g o

Solectron From Contract Manufacturer To Global Supply Chain Integrator2009

Uploaded by

Copyright:

Available Formats

You might also like

Solectron From Contract Manufacturer To Global Supply Chain Integrator2009

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Solectron From Contract Manufacturer To Global Supply Chain Integrator2009

Uploaded by

Copyright:

Available Formats

L o g o

Solectron: From Contract

You might also like