Supply Chain Analysis White Paper
Available from Wright Williams & Kelly
April 10, 2001 (Pleasanton, CA) - Wright Williams & Kelly (WWK) announced today the availability of its Critical Path Supply Chain Analysis white paper. The white paper is available at no charge from WWK's web site at http://www.wwk.com under the "What's New" section.
"Managers often view supply chain management as an effort to 'pin the blame' for supply chain issues on someone else. They are looking to fix the problem with their suppliers," reports Daren L. Dance, WWK's VP of Technology. "However, they may be looking in the wrong direction. The problem may be inaccurate demand forecasts from their customers."
"External events have internal consequences. Our Critical Path Supply Chain Analysis helps management understand the risks and other internal consequences of supply chain issues, even if those issues are outside their control. With a clear understanding of internal risks and consequences, management is in a much better position to structure effective supply chain solutions and validate customers' demand forecasts."
Effective control of the flow of components and materials to the manufacturing or assembly line is a key to cost effective manufacturing. In an optimal supply chain, materials and components are received just-in-time to enable lean manufacturing, i.e., the right product, in the right place, at the right time, at the lowest possible cost. Critical Path Supply Chain Analysis is a methodology that identifies the supply chains with the highest potential to interrupt manufacturing and explores the risks of interruption. This methodology becomes the foundation for a corrective supply chain solution.
In the white paper, WWK analyzes a semiconductor supply chain from wafer fabrication through final assembled board test. For each stage in the supply chain WWK considers cost, yield, variability, and cycle time. Each stage also includes transportation and handling to the next stage. Some of the management questions that can be answered from this type of analysis include:
- How much lead-time must be provided to insure sufficient supplies of tested boards?
- How many wafers should be started to provide sufficient supplies of tested boards?
- How much time could alternate sources save?
- At which stages would alternate sources be most beneficial?
- How much time could accelerated transportation methods save?
- What is the average cost per good board shipped (Cost of Ownership)?