Automation of Supply Chain Planning Processes at Intel IT, India

By Gautham Sunder Srilakshmi Madhu Vishal Kumar Prerana Chinappa

Overview of the Organization

Supply Chain IT

Problem Definition
Currently all export and import customs processes performed by Intel in Vietnam are done manually. As per the new Vietnamese Law, all these processes need to be automated, which requires Intel to reform their processes.

The lead time for getting new manufacturing partners and subcontractors data transfer systems onboard Intel Corporation system is currently 10 months. This lead time affects the in time valuation of the inventory. By leveraging automation Intel Corporation plans to reduce this lead time to 4-6 months.
Current system in Intel is generating cycle time based on weekly buckets. For this reason planned cycle time and confirmation dates to customers are not meeting customer expectations. Too long lead times are generating risk of losing market share at certain customers and additional inventories.

Objectives
Intel will be legally compliant for the shipment moved into or out of Vietnam. It will decrease the Throughput Time in delivering the goods to customers as well as within the warehouse. To reduce the lead time for installing data transfer system for new manufacturing partners and sub-contractors at Intel Corporation from 10 months to 4-6 months by creating an application that automates the process. Improving the quality of data received from the subcontractors, thus improving the accuracy of data moving down stream Reduce system overhead times to minimize planned order lead times by switching from Weekly planning bucket to daily so that throughput time can be specified in days and thereby reduce the inefficiency in planning and execution. Do an assessment of throughput time and cycle time based on actual values to identity how much of decrease is possible in throughput time

Methodology
1. 1. To study the existing supply chain processes and collect the data and information on All customs documents that are filled by the Intel Team and the 3rd party in order to obtain customs approval material number, quantity, batch ,HTS code ,sold to and ship to address, country of origin, unit of measure, custom valuation price, airway bill, payment terms and custom office code.

Requirements gathering session with sub-contractors and manufacturing partners to understand the pain points.
Two product groups containing a minimum of 5 products are identified. The planning versus actual execution dates are recorded and the deviation noted.

Tools Used
1.CIBR: Corporate Inventory Business Repository
CIBR is the planning application at Intel Corporation. It is a central repository that stores the data on short term inventory Lot Genealogy- Tracks the wafers from inception to shipping Receives data from upstream applications like subcontractors, SAP, work streams Downstream applications like SAP, MARS pull data from CIBR

2.BIZTALK:
BIZTALK is the gateway that receives the 7B1 PIP from the subcontractors. It converts the XML format of the PIP to oracle data base

3.PL/SQL:
PL/SQL is a structured query language that is used to manipulate the ORACLE database.

Existing Scenario

Proposed Improvement
In the current process the data monitoring step takes place just before inserting the subcontractor data into the core table. This results in delays in posting the data in the core table in case there is an error in the data. The proposed method suggests developing an data monitoring application that could be installed in the subcontractor system that carries out the data quality checks at the source itself. Any error that is flagged is corrected at the source itself and only quality data enters the Intel system.

Expected Results

Reduction in the lead time for installing data transfer systems for gathering information from subcontractors and manufacturing partners to 4-6 months from 10 months by leveraging automation. Improvement in the quality of data flowing to the downstream systems like SAP and thus improving the overall efficiency of supply planning. Improved accuracy of inventory reports and more relevant reporting of inventory status to downstream systems.