Transcript Resiliency_Track_Readout_August

Resiliency Track Readout
August 2009
Objective and Scope
• Objective:
– To share best practices in supply chain resiliency
• Track Scope:
Product, Supplier and Physical Network Resiliency
– Planning and Implementation for: Existing and New
Products, Existing and New Suppliers, Existing and
New Networks/Network Design
• Out of Scope:
– Product Quality Process
– S&OP (sales and operations planning)
Resiliency Planning
• Understand your supply chain
Resiliency Planning
•
Setting Objectives, Targets and
Establishing Resiliency Metrics
1. BP firms have a method to determine which
elements of the supply chain and the
product pose the most risk
•
•
BP firms utilize supply chain ‘value stream
mapping’ to understand the node-network
BP firms have the ability to map their locations,
supplier locations, customer locations globally
Resiliency Planning
Item 1 Examples:
•
•
•
CISCO: Leverage the BCP Program to collect Time To Recover
for Partner Manufacturing and Logistics sites and for single/sole
sourced components.
GE Energy Infrastructure: Determine single/sole source
suppliers, identify which of those components are critical to the
product/customer, identify components with unique/rare raw
materials. Launch a Risk Assessment questionnaire for internal
suppliers. External suppliers get a BCP questionnaire that ranks
their Resiliency. This information is used to identify suppliers
both internal and external that are at high risk.
Genentech:
GENENTECH
1
2
3
4
Identify Supply
Chain Current State
and Assumptions
Assess Operational
Process Risk
Identify Product
Contingency
Options
Assess Risk/Benefit
and Provide
Recommendations
3
Identify
Product Contingency Options and Network Risk Inventory
Step 1: Calculate network risk inventory needed per each manufacturing process in the event of an outage at the
primary site:
Bulk Outage
Start-Up
Time
Primary
Site
18 weeks outage
6w
Bulk Cycle Fill/Pack
Time
Cycle Time
10 wks
7 wks
Network Risk Inventory for bulk outage: 41 weeks DS or DP
41 weeks
Fill Outage
Start-Up Fill/Pack
Time Cycle Time
Primary
Site
15 wks outage
4w
7 wks
Network Risk Inventory for fill outage: 26 weeks DP
26 weeks
Pack Outage
Start-Up
Primary
Site
13 w outage
19 weeks
4w
Pack
Cycle Time
2
Network Risk Inventory: 19 weeks DP
Definitions:
• DS: Drug substance / DP: Drug product (packaged units)
• Start-Up: Time needed to change over equipment, modify
schedule, and/or seed train development time
CISCO BCP Program
Resiliency Planning
2. Best Practices firms can identify the
consequences of making optimal risk choices
and acceptable mitigations for known risks.
– Revenue, brand impact, or market value
– Proven methodology for choosing what to mitigate
– Regular management review and approval of risk
mitigation investments
– Budget allocated for risk mitigation and manage a
portfolio of risk mitigation projects and programs to
improve resiliency
– Consistent method of measuring resiliency across
their organization.
Resiliency Planning
Item 2 Example:
•
CISCO: Resiliency Index
Implementation and Operation
1. Process and program to drive resiliency
projects across Products/Services,
Suppliers and the Supply Chain
–
–
–

Program ownership of risk mitigation projects (both internally
and externally)
Process in place to validate supplier responses (Validate Site
Time to Recover, Validate Part Time to Recover)
Partnerships with customers to ensure demand signals are
comprehended into capacity planning
Visibility and influence the Product Lifecycle
•
Ability to know if past mitigation strategies are changing as part of
the routine Engineering Change Control or a Supplier’s decision
Implementation Example
• FedEx:
– Resiliency is enabled through excess
capacity/redundancy to account for operational and
non operational issues.
– Capacity Planning to include further levels into the
supply chain (mother’s day flower delivery). Partner
with the customers shipping to ensure there is
resiliency by sharing and having an understanding of
the customers demand needs and FedEx’s ability to
deliver.
Final Thoughts
• Interdependencies
– BCP, Risk Measurement
• Tiered Approach to Implementation
– Different sets of minimum requirements depending on
the complexity and size of the business; Example:
Tier 1 = Self BCP, Tier 2 = Self BCP and Vendor BCP
• Phased Implementation
– Choose which products or elements of the supply
chain apply for certification, i.e. new products