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LUCENTTECHNOLOGIES:DavidW.HoytACHIEVINGTHE“IMPOSSIBLE”BYUSINGPROVISIONINGANDPOSTPONEMENTLUCENTTECHNOLOGIES:DavidW.HContent37263134384347575962OpportunityHistoryofLucent5ESSDigitalSwitchTheOriginalProcessLucent’sManufacturingProblemsPostponementRelievingConstraintsProvisioningandParallelProcessingOrganizationalIssuesResultsandConclusionContent3OpportunityOpportunity1998SaudiArabiaManydigitalswitchesneedtobereplacedY2KcompliantMillionsofdollarsSignificantadditionalbusiness5ESSDigitalSwitch→23-25weeksTresCantos(Spain)→InsufficientCapacityOklahomaCity(US)→DifferentengineeringsystemOvercomecapacityconstraintsImprovedeliverytimeOpportunity1998SaudiArabiaMiOpportunity1998SaudiArabiaManydigitalswitchesneedtobereplacedY2KcompliantMillionsofdollarsSignificantadditionalbusiness5ESSDigitalSwitch→23-25weeksTresCantos(Spain)→InsufficientCapacityOklahomaCity(US)→DifferentengineeringsystemOvercomecapacityconstraintsImprovedeliverytimeOpportunity1998SaudiArabiaMiOpportunity1998SaudiArabiaManydigitalswitchesneedtobereplacedY2KcompliantMillionsofdollarsSignificantadditionalbusiness5ESSDigitalSwitch→23-25weeksTresCantos(Spain)→InsufficientCapacityOklahomaCity(US)→DifferentengineeringsystemOvercomecapacityconstraintsImprovedeliverytimeOpportunity1998SaudiArabiaMiOpportunity1998SaudiArabiaManydigitalswitchesneedtobereplacedY2KcompliantMillionsofdollarsSignificantadditionalbusiness5ESSDigitalSwitch→23-25weeksTresCantos(Spain)→InsufficientCapacityOklahomaCity(US)→DifferentengineeringsystemOvercomecapacityconstraintsImprovedeliverytimeOpportunity1998SaudiArabiaMiHistoryofLucent1877BellTelephoneCompany1880AT&TLongLine1885AT&T(AmericaTelephoneandTelegraphCompany)1899AmericaBell/BellSystem→AT&T1925BellLaboratories←3%outputofAT&T Communication/RadioAstronomy Semi-conductor/ComputerScience C/Unix/Telephone/Transistor/DigitalSwitch CommunicationsSatellite/OpticalFiber InformationTheory(Shannon)MonopolyPositioninAmericaandCanadaHistoryofLucent1877BellTeHistoryofLucent1877BellTelephoneCompany1880AT&TLongLine1885AT&T(AmericaTelephoneandTelegraphCompany)1899AmericaBell/BellSystem→AT&T1925BellLaboratories←3%outputofAT&T Communication/RadioAstronomy Semi-conductor/ComputerScience C/Unix/Telephone/Transistor/DigitalSwitch CommunicationsSatellite/OpticalFiber InformationTheory(Shannon)MonopolyPositioninAmericaandCanadaHistoryofLucent1877BellTeHistoryofLucent1877BellTelephoneCompany1880AT&TLongLine1885AT&T(AmericaTelephoneandTelegraphCompany)1899AmericaBell/BellSystem→AT&T1925BellLaboratories←3%outputofAT&T Communication/RadioAstronomy Semi-conductor/ComputerScience C/Unix/Telephone/Transistor/DigitalSwitch CommunicationsSatellite/OpticalFiber InformationTheory(Shannon)MonopolyPositioninAmericaandCanadaHistoryofLucent1877BellTeHistoryofLucent1877BellTelephoneCompany1880AT&TLongLine1885AT&T(AmericaTelephoneandTelegraphCompany)1899AmericaBell/BellSystem→AT&T1925BellLaboratories←3%outputofAT&T Communication/RadioAstronomy Semi-conductor/ComputerScience C/Unix/Telephone/Transistor/DigitalSwitch CommunicationsSatellite/OpticalFiber InformationTheory(Shannon)MonopolyPositioninAmericaandCanadaHistoryofLucent1877BellTeHistoryofLucent1877BellTelephoneCompany1880AT&TLongLine1885AT&T(AmericaTelephoneandTelegraphCompany)1899AmericaBell/BellSystem→AT&T1925BellLaboratories←3%outputofAT&T Communication/RadioAstronomy Semi-conductor/ComputerScience C/Unix/Telephone/Transistor/DigitalSwitch CommunicationsSatellite/OpticalFiber InformationTheory(Shannon)MonopolyPositioninAmericaandCanadaHistoryofLucent1877BellTeHistoryofLucent1984UnitedStatesantitrustlaw AT&T(MaBell)and7BabyBellsMarketshare/Profit/R&DExpenseCommunication/Semi-conductor1995Backtothetop1996Separation AT&T:TelecommunicationService Lucent:EquipmentManufacture NCR:Computer2005AcquisitionbySBCHistoryofLucent1984UnitedHistoryofLucent1984UnitedStatesantitrustlaw AT&T(MaBell)and7BabyBellsMarketshare/Profit/R&DExpenseCommunication/Semi-conductor1995Backtothetop1996Separation AT&T:TelecommunicationService Lucent:EquipmentManufacture NCR:Computer2005AcquisitionbySBCHistoryofLucent1984UnitedHistoryofLucent1984UnitedStatesantitrustlaw AT&T(MaBell)and7BabyBellsMarketshare/Profit/R&DExpenseCommunication/Semi-conductor1995Backtothetop1996Separation AT&T:TelecommunicationService Lucent:EquipmentManufacture NCR:Computer2005AcquisitionbySBCHistoryofLucent1984UnitedHistoryofLucent1984UnitedStatesantitrustlaw AT&T(MaBell)and7BabyBellsMarketshare/Profit/R&DExpenseCommunication/Semi-conductor1995Backtothetop1996Separation AT&T:TelecommunicationService Lucent:EquipmentManufacture NCR:Computer2005AcquisitionbySBCHistoryofLucent1984UnitedHistoryofLucent1984UnitedStatesantitrustlaw AT&T(MaBell)and7BabyBellsMarketshare/Profit/R&DExpenseCommunication/Semi-conductor1995Backtothetop1996Separation AT&T:TelecommunicationService Lucent:EquipmentManufacture NCR:Computer2005AcquisitionbySBCHistoryofLucent1984UnitedHistoryofLucentLucent→OrderofSprintandMCI1996Listing,90+countries,4unitsNetworkSystems→50%revenuesTheDot-comBubbleMassAccountsReceivables2000CrumbletodustCarlyFiorinaAvayaofLucentBellLabsAlcatel,CISCOHistoryofLucentLucent→OrdeHistoryofLucentLucent→OrderofSprintandMCI1996Listing,90+countries,4unitsNetworkSystems→50%revenuesTheDot-comBubbleMassAccountsReceivables2000CrumbletodustCarlyFiorinaAvayaofLucentBellLabsAlcatel,CISCOHistoryofLucentLucent→OrdeHistoryofLucentLucent→OrderofSprintandMCI1996Listing,90+countries,4unitsNetworkSystems→50%revenuesTheDot-comBubbleMassAccountsReceivables2000CrumbletodustCarlyFiorinaAvayaofLucentBellLabsAlcatel,CISCOHistoryofLucentLucent→OrdeHistoryofLucentLucent→OrderofSprintandMCI1996Listing,90+countries,4unitsNetworkSystems→50%revenuesTheDot-comBubbleMassAccountsReceivables2000CrumbletodustCarlyFiorinaAvayaofLucentBellLabsAlcatel,CISCOHistoryofLucentLucent→OrdeHistoryofLucentLucent→OrderofSprintandMCI1996Listing,90+countries,4unitsNetworkSystems→50%revenuesTheDot-comBubbleMassAccountsReceivables2000CrumbletodustCarlyFiorinaAvayaofLucentBellLabsAlcatel,CISCOHistoryofLucentLucent→OrdeHistoryofLucentTrend:Internet,MobilephoneLeadingenterprise,Money,TechAfter2000SeparationAgain AT&T AT&TWireless AT&TInternet→Outofpotential→OutofmoneyShannonLabs,9·11SouthwestBell,SBCSecondTelecomCompanyM&A→AT&T,AT&T,ResourceServiceHistoryofLucentTrend:InternHistoryofLucentTrend:Internet,MobilephoneLeadingenterprise,Money,TechAfter2000SeparationAgain AT&T AT&TWireless AT&TInternet→Outofpotential→OutofmoneyShannonLabs,9·11SouthwestBell,SBCSecondTelecomCompanyM&A→AT&T,AT&T,ResourceServiceHistoryofLucentTrend:InternHistoryofLucentTrend:Internet,MobilephoneLeadingenterprise,Money,TechAfter2000SeparationAgain AT&T AT&TWireless AT&TInternet→Outofpotential→OutofmoneyShannonLabs,9·11SouthwestBell,SBCSecondTelecomCompanyM&A→AT&T,AT&T,ResourceServiceHistoryofLucentTrend:InternHistoryofLucentTrend:Internet,MobilephoneLeadingenterprise,Money,TechAfter2000SeparationAgain AT&T AT&TWireless AT&TInternet→Outofpotential→OutofmoneyShannonLabs,9·11SouthwestBell,SBCSecondTelecomCompanyM&A→AT&T,AT&T,ResourceServiceHistoryofLucentTrend:Intern5ESSDigitalSwitch250thousandsubscriberlines100thousandtrunklinesdigital/voice/data/video/wired/wirelessModulardesignAMCMSMSMSMAdministrationCommunicationSwitching5ESSDigitalSwitch250thousan250thousandsubscriberlines100thousandtrunklinesdigital/voice/data/video/wired/wirelessModulardesignAMCMSMSMSMAdministrationCommunicationSwitching5ESSDigitalSwitch250thousandsubscriberlinesM5ESSDigitalSwitchPCB(PrintedCircuitBoards)CablesPowerSuppliesOtherComponents→Cabinets298PCBs,22Cabinets,21OtherunitsCombinedwithcustom-builtassembliesCustomizedproductsAtypicalsystem→6/7Cabinets1MilliondollarsDetailedrequirement→ConfigurationRequiredanalogtrafficlevel5ESSDigitalSwitchPCB(Printe5ESSDigitalSwitchPCB(PrintedCircuitBoards)CablesPowerSuppliesOtherComponents→Cabinets298PCBs,22Cabinets,21OtherunitsCombinedwithcustom-builtassembliesCustomizedproductsAtypicalsystem→6/7Cabinets1MilliondollarsDetailedrequirement→ConfigurationRequiredanalogtrafficlevel5ESSDigitalSwitchPCB(Printe5ESSDigitalSwitchPCB(PrintedCircuitBoards)CablesPowerSuppliesOtherComponents→Cabinets298PCBs,22Cabinets,21OtherunitsCombinedwithcustom-builtassembliesCustomizedproductsAtypicalsystem→6/7Cabinets1MilliondollarsDetailedrequirement→ConfigurationRequiredanalogtrafficlevel5ESSDigitalSwitchPCB(PrinteTheOriginalProcessLucentengineers→On-siteinspection↓Configuration←Requirements←Information↓(Bill

of

materials)

BOMBasicproductmanufacturedCustompartsaddedShippingandcustomsclearanceAssembleandtestsystemDelivertocustomersiteInstallandtestequipmentShipmentbyseatookabout10daysShipmentbyairwasexpensiveTimingofclearancewasunpredictableTheOriginalProcessLucentengTheOriginalProcessLucentengineers→On-siteinspection↓Configuration←Requirements←Information↓(Bill

of

materials)

BOMBasicproductmanufacturedCustompartsaddedShippingandcustomsclearanceAssembleandtestsystemDelivertocustomersiteInstallandtestequipmentShipmentbyseatookabout10daysShipmentbyairwasexpensiveTimingofclearancewasunpredictableTheOriginalProcessLucentengTheOriginalProcessLucentengineers→On-siteinspection↓Configuration←Requirements←Information↓(Bill

of

materials)

BOMBasicproductmanufacturedCustompartsaddedShippingandcustomsclearanceAssembleandtestsystemDelivertocustomersiteInstallandtestequipmentShipmentbyseatookabout10daysShipmentbyairwasexpensiveTimingofclearancewasunpredictableTheOriginalProcessLucentengLucent’sManufacturingOklahomaCity(US)→WorldwideBythelate1990s SuppliedprimarilybylocalfacilitiesTresCantos(Spain)→EMEAregion (Europe,MiddleEast,andAfrica)Fast-growingcapacitySlow-growingneedofcapacity 1circuitboardsupply8→32subscribersEffectivecapacityhadgrowndramaticallyCapacitysurplus,ImbalanceLucent’sManufacturingOklahomaLucent’sManufacturingOklahomaCity(US)→WorldwideBythelate1990s SuppliedprimarilybylocalfacilitiesTresCantos(Spain)→EMEAregion (Europe,MiddleEast,andAfrica)Fast-growingcapacitySlow-growingneedofcapacity 1circuitboardsupply8→32subscribersEffectivecapacityhadgrowndramaticallyCapacitysurplus,ImbalanceLucent’sManufacturingOklahomaLucent’sManufacturingOklahomaCity(US)→WorldwideBythelate1990s SuppliedprimarilybylocalfacilitiesTresCantos(Spain)→EMEAregion (Europe,MiddleEast,andAfrica)Fast-growingcapacitySlow-growingneedofcapacity 1circuitboardsupply8→32subscribersEffectivecapacityhadgrowndramaticallyCapacitysurplus,ImbalanceLucent’sManufacturingOklahomaLucent’sManufacturingOklahomaCity(US)→WorldwideBythelate1990s SuppliedprimarilybylocalfacilitiesTresCantos(Spain)→EMEAregion (Europe,MiddleEast,andAfrica)Fast-growingcapacitySlow-growingneedofcapacity 1circuitboardsupply8→32subscribersEffectivecapacityhadgrowndramaticallyCapacitysurplus,ImbalanceLucent’sManufacturingOklahomaProblemsInsufficientcapacityinEuropeLongoverallfulfillmentcycle400cabinetsand44000circuitpack AllEuropeanfacilities+Nootherorders Overa12monthperiod OKC→DifferentengineeringsystemIncreasethecapacityinTC $10millions,months;Workers,EquipmentProductioninSaudiArabia→ImpossibleStockpilecompletedsystems→ImpossibleRequirementsbeknown→InstallationCustomclearance→3weeksProblemsInsufficientcapacityProblemsInsufficientcapacityinEuropeLongoverallfulfillmentcycle400cabinetsand44000circuitpack AllEuropeanfacilities+Nootherorders Overa12monthperiod OKC→DifferentengineeringsystemIncreasethecapacityinTC $10millions,months;Workers,EquipmentProductioninSaudiArabia→ImpossibleStockpilecompletedsystems→ImpossibleRequirementsbeknown→InstallationCustomclearance→3weeksProblemsInsufficientcapacityProblemsInsufficientcapacityinEuropeLongoverallfulfillmentcycle400cabinetsand44000circuitpack AllEuropeanfacilities+Nootherorders Overa12monthperiod OKC→DifferentengineeringsystemIncreasethecapacityinTC $10millions,months;Workers,EquipmentProductioninSaudiArabia→ImpossibleStockpilecompletedsystems→ImpossibleRequirementsbeknown→InstallationCustomclearance→3weeksProblemsInsufficientcapacityProblemsInsufficientcapacityinEuropeLongoverallfulfillmentcycle400cabinetsand44000circuitpack AllEuropeanfacilities+Nootherorders Overa12monthperiod OKC→DifferentengineeringsystemIncreasethecapacityinTC $10millions,months;Workers,EquipmentProductioninSaudiArabia→ImpossibleStockpilecompletedsystems→ImpossibleRequirementsbeknown→InstallationCustomclearance→3weeksProblemsInsufficientcapacityProblemsInsufficientcapacityinEuropeLongoverallfulfillmentcycle400cabinetsand44000circuitpack AllEuropeanfacilities+Nootherorders Overa12monthperiod OKC→DifferentengineeringsystemIncreasethecapacityinTC $10millions,months;Workers,EquipmentProductioninSaudiArabia→ImpossibleStockpilecompletedsystems→ImpossibleRequirementsbeknown→InstallationCustomclearance→3weeksProblemsInsufficientcapacityPostponementRedesigningandbuildingTime,Cost,EffortPush→Build-to-stock→PlaceinstockPull→Build-to-order→meetspecificrequirementPush-pullboundary←Standardization,CustomizationOriginalprocess:farleft Minimizedinventory,LongdeliverytimeSolution:movetotheright Standardization,Product/ProcessdesignPostponementRedesigningandbuPostponementRedesigningandbuildingTime,Cost,EffortPush→Build-to-stock→PlaceinstockPull→Build-to-order→meetspecificrequirementPush-pullboundary←Standardization,CustomizationOriginalprocess:farleft Minimizedinventory,LongdeliverytimeSolution:movetotheright Standardization,Product/ProcessdesignPostponementRedesigningandbuPostponementRedesigningandbuildingTime,Cost,EffortPush→Build-to-stock→PlaceinstockPull→Build-to-order→meetspecificrequirementPush-pullboundary←Standardization,CustomizationOriginalprocess:farleft Minimizedinventory,LongdeliverytimeSolution:movetotheright Standardization,Product/ProcessdesignPostponementRedesigningandbuPostponementRedesigningandbuildingTime,Cost,EffortPush→Build-to-stock→PlaceinstockPull→Build-to-order→meetspecificrequirementPush-pullboundary←Standardization,CustomizationOriginalprocess:farleft Minimizedinventory,LongdeliverytimeSolution:movetotheright Standardization,Product/ProcessdesignPostponementRedesigningandbuRelievingConstraintsTheSupplyChainEngineeringGroupIrrelevanttocustomer: Options,Configurations Conventions→Decision→RequirementAllsystem→Sufficientcabling→simplified Modestmaterialscost ReducedexpeditingchargesTotalmanufacturingcost: Planning,Building MaintainingmultiplevariationsCreateonestandardversionRelievingConstraintsTheSupplRelievingConstraintsTheSupplyChainEngineeringGroupIrrelevanttocustomer: Options,Configurations Conventions→Decision→RequirementAllsystem→Sufficientcabling→simplified Modestmaterialscost ReducedexpeditingchargesTotalmanufacturingcost: Planning,Building MaintainingmultiplevariationsCreateonestandardversionRelievingConstraintsTheSupplRelievingConstraintsTheSupplyChainEngineeringGroupIrrelevanttocustomer: Options,Configurations Conventions→Decision→RequirementAllsystem→Sufficientcabling→simplified Modestmaterialscost ReducedexpeditingchargesTotalmanufacturingcost: Planning,Building MaintainingmultiplevariationsCreateonestandardversionRelievingConstraintsTheSupplRelievingConstraintsTheSupplyChainEngineeringGroupIrrelevanttocustomer: Options,Configurations Conventions→Decision→RequirementAllsystem→Sufficientcabling→simplified Modestmaterialscost ReducedexpeditingchargesTotalmanufacturingcost: Planning,Building MaintainingmultiplevariationsCreateonestandardversionRelievingConstraintsTheSupplRelievingConstraintsTheSupplyChainEngineeringGroupIrrelevanttocustomer: Options,Configurations Conventions→Decision→RequirementAllsystem→Sufficientcabling→simplified Modestmaterialscost ReducedexpeditingchargesTotalmanufacturingcost: Planning,Building MaintainingmultiplevariationsCreateonestandardversionRelievingConstraintsTheSupplRelievingConstraints95%BNEs(BasicNetworkElements)5%“deltas”→CustommanufacturingLow-level:CircuitboardsTop-level:Site-specificconfigurationsBNEsdefined;CertifiedinOKCTC:AssembletheBNEsintothesystem;TestBNEs:buildcommonlyusedmodulestostockDeltas:customdesigned→Fast-responseengineeringteamCustomer→TimerequiredforthepullportionLonglead-time→PushsideShortcustomizationprocess→PullsideRelievingConstraints95%BNEsRelievingConstraints95%BNEs(BasicNetworkElements)5%“deltas”→CustommanufacturingLow-level:CircuitboardsTop-level:Site-specificconfigurationsBNEsdefined;CertifiedinOKCTC:AssembletheBNEsintothesystem;TestBNEs:buildcommonlyusedmodulestostockDeltas:customdesigned→Fast-responseengineeringteamCustomer→TimerequiredforthepullportionLonglead-time→PushsideShortcustomizationprocess→PullsideRelievingConstraints95%BNEsRelievingConstraints95%BNEs(BasicNetworkElements)5%“deltas”→CustommanufacturingLow-level:CircuitboardsTop-level:Site-specificconfigurationsBNEsdefined;CertifiedinOKCTC:AssembletheBNEsintothesystem;TestBNEs:buildcommonlyusedmodulestostockDeltas:customdesigned→Fast-responseengineeringteamCustomer→TimerequiredforthepullportionLonglead-time→PushsideShortcustomizationprocess→PullsideRelievingConstraints95%BNEsRelievingConstraints95%BNEs(BasicNetworkElements)5%“deltas”→CustommanufacturingLow-level:CircuitboardsTop-level:Site-specificconfigurationsBNEsdefined;CertifiedinOKCTC:AssembletheBNEsintothesystem;TestBNEs:buildcommonlyusedmodulestostockDeltas:customdesigned→Fast-responseengineeringteamCustomer→TimerequiredforthepullportionLonglead-time→PushsideShortcustomizationprocess→PullsideRelievingConstraints95%BNEsRelievingConstraints95%BNEs(BasicNetworkElements)5%“deltas”→CustommanufacturingLow-level:CircuitboardsTop-level:Site-specificconfigurationsBNEsdefined;CertifiedinOKCTC:AssembletheBNEsintothesystem;TestBNEs:buildcommonlyusedmodulestostockDeltas:customdesigned→Fast-responseengineeringteamCustomer→TimerequiredforthepullportionLonglead-time→PushsideShortcustomizationprocess→PullsideRelievingConstraints95%BNEsProvisioningandParallelProcessingTC:servedasanintegrationfacilityAdistributioncenter→SaudiArabiaDeltaassemblies→Fast-responseAcableassemblyfacility→SaudiArabiaFinalassemblybedoneonsiteProvisioningandParallelProcProvisioningandParallelProcessingTC:servedasanintegrationfacilityAdistributioncenter→SaudiArabiaDeltaassemblies→Fast-responseAcableassemblyfacility→SaudiArabiaFinalassemblybedoneonsiteProvisioningandParallelProcOrganizationalIssuesManypartsoftheLucentorganizationinvolvedHighpriorityinLucentseniormanagementOverallproject’simportance,changesrequiredTC:TestofBNEmodulesanddeltasInstallationengineers:FinalassemblyandfullsystemtestEngineeringstaff:RequirementsofBNEsanddeltasAfastmanufacturingteam→deltaAnewlogisticssystem→BNEinventorystockpiledAtrackingsystem→RightBNEsanddeltastransportOrganizationalIssuesManypartOrganizationalIssuesManypartsoftheLucentorganizationinvolvedHighpriorityinLucentseniormanagementOverallproject’simportance,changesrequiredTC:TestofBNEmodulesanddeltasInstallationengineers:FinalassemblyandfullsystemtestEngineeringstaff:RequirementsofBNEsanddeltasAfastmanufacturingteam→deltaAnewlogisticssystem→BNEinventorystockpiledAtrackingsystem→RightBNEsanddeltastransportOrganizationalIssuesManypartOrganizationalIssuesManypartsoftheLucentorganizationinvolvedHighpriorityinLucentseniormanagementOverallproject’simportance,changesrequiredTC:TestofBNEmodulesanddeltasInstallationengineers:FinalassemblyandfullsystemtestEngineeringstaff:RequirementsofBNEsanddeltasAfastmanufacturingteam→deltaAnewlogisticssystem→BNEinventorystockpiledAtrackingsystem→RightBNEsanddeltastransportOrganizationalIssuesManypartResultandConclusionTimewasreducedby80%Partsandinstallersarrivedwithin7-10daysAllcapacitywasutilizedTheprojectwasprofitableandcompletedonscheduleThechangescontinuedintheEMEAregionPostponingthepoint→Lowinventorylevel,Fastresponse Point:MTSandMTOassembliesaredecoupledOptimizethepoint→productandprocessdesignHighresponsiveness&LowinventorylevelPostponement→PowerfultoolCarefullyevaluatingthepointisnecessaryResultandConclusionTimewasResultandConclusionTimewasreducedby80%Partsandinstallersarrivedwithin7-10daysAllcapacitywasutilizedTheprojectwasprofitableandcompletedonscheduleThechangescontinuedintheEMEAregionPostponingthepoint→Lowinventorylevel,Fastresponse Point:MTSandMTOassembliesaredecoupledOptimizethepoint→productandprocessdesignHighresponsiveness&LowinventorylevelPostponement→PowerfultoolCarefullyevaluatingthepointisnecessaryResultandConclusionTimewasReferencesAT&T–WikipediaAT&TCorporation–WikipediaLucent–WikipediaBellTelephoneCompany-WikipediaSouthwesternBell–WikipediaCISCO–WikipediaAlcatel–Wikipedia《浪潮之巔》作者：吳軍ThePracticeofSupplyChainManagementReferencesAT&T–WikipediaThanks!Thanks!LUCENTTECHNOLOGIES:DavidW.HoytACHIEVINGTHE“IMPOSSIBLE”BYUSINGPROVISIONINGANDPOSTPONEMENTLUCENTTECHNOLOGIES:DavidW.HContent37263134384347575962OpportunityHistoryofLucent5ESSDigitalSwitchTheOriginalProcessLucent’sManufacturingProblemsPostponementRelievingConstraintsProvisioningandParallelProcessingOrganizationalIssuesResultsandConclusionContent3OpportunityOpportunity1998SaudiArabiaManydigitalswitchesneedtobereplacedY2KcompliantMillionsofdollarsSignificantadditionalbusiness5ESSDigitalSwitch→23-25weeksTresCantos(Spain)→InsufficientCapacityOklahomaCity(US)→DifferentengineeringsystemOvercomecapacityconstraintsImprovedeliverytimeOpportunity1998SaudiArabiaMiOpportunity1998SaudiArabiaManydigitalswitchesneedtobereplacedY2KcompliantMillionsofdollarsSignificantadditionalbusiness5ESSDigitalSwitch→23-25weeksTresCantos(Spain)→InsufficientCapacityOklahomaCity(US)→DifferentengineeringsystemOvercomecapacityconstraintsImprovedeliverytimeOpportunity1998SaudiArabiaMiOpportunity1998SaudiArabiaManydigitalswitchesneedtobereplacedY2KcompliantMillionsofdollarsSignificantadditionalbusiness5ESSDigitalSwitch→23-25weeksTresCantos(Spain)→InsufficientCapacityOklahomaCity(US)→DifferentengineeringsystemOvercomecapacityconstraintsImprovedeliverytimeOpportunity1998SaudiArabiaMiOpportunity1998SaudiArabiaManydigitalswitchesneedtobereplacedY2KcompliantMillionsofdollarsSignificantadditionalbusiness5ESSDigitalSwitch→23-25weeksTresCantos(Spain)→InsufficientCapacityOklahomaCity(US)→DifferentengineeringsystemOvercomecapacityconstraintsImprovedeliverytimeOpportunity1998SaudiArabiaMiHistoryofLucent1877BellTelephoneCompany1880AT&TLongLine1885AT&T(AmericaTelephoneandTelegraphCompany)1899AmericaBell/BellSystem→AT&T1925BellLaboratories←3%outputofAT&T Communication/RadioAstronomy Semi-conductor/ComputerScience C/Unix/Telephone/Transistor/DigitalSwitch CommunicationsSatellite/OpticalFiber InformationTheory(Shannon)MonopolyPositioninAmericaandCanadaHistoryofLucent1877BellTeHistoryofLucent1877BellTelep