CONTEXT

An international leader of the high tech industry, 150.000 collaborators around the world, Multi-billions € of income.

IT Servers Business Unit issues :

  • An unmanaged component diversity that has exploded generating extra costs,
  • Manufacturing lead time too important.
OUR APPROACH

Here are the 4 main phases that we followed:

1.

Construction of the IT Server 150% Product Breakdown Structure (including packaging), 

2.

For each key component, thorough analysis of sales data to determine minimal component variability (performance steps) to fully cover market expectations with a minimal number of different references

3.

Implementation of product line a configurator to automate product configuration generation,

4.

Development of a capability model to forecast component volumes & manage component stocks optimally

CREATED VALUE

  • -10M€ / year reduction of inventory costs,
  • -75% reduction order-to-product lead time,
  • -70% reduction test time,
  • Drastic reduction of key components variability:
Component As-is variants To-be standard modules Diversity reduction
CPU 35 différent CPUs 11 standard CPU modules -69%
Hard disk 26 different hard disks 14 standard hard disk modules -54%
Back plane 7 different back planes 3 standard back plane modules -57%
Memory 6 different memories 3 standard memory modules -50%
RAID card 24 different RAID cards 4 standard RAID card modules -83%
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