IBM Systems Magazine, Power Systems Edition - July 2011 - (Page 12)

Q&A Direct from the source Taming the Supply Chain How IBM reduced its microelectronics inventory but elevated service levels By Jim Utsler I n today’s uncertain economic times, companies of all sorts are keeping a close eye on inventory levels. They must avoid both having too much stock during lean times and not having enough should orders suddenly arrive. Some organizations haven’t quite mastered this delicate balance. ¶ But IBM does. In fact, its Microelectronics Division recently reduced its inventory by 10 times while still achieving service levels above 95 percent. It accomplished this using one of its own tools, the IBM Researchdeveloped Advanced Cross-Inventory Optimizer (AXIO), formerly known as DIOS, the Dynamic Inventory Optimization Solution (version 5). on optimizing production for concepts like Lean manufacturing, but very little attention was being paid to inventory 12 J U LY 2 0 1 1 ILLUSTRATION BY EMILIANO PONZI And as IBM’s Satyadeep Vajjala, Lean execution planning; Manuel Parente, Lean project team; and Ulrich Schimpel, business optimization scientist, describe, IBM’s success with keeping more precise control over inventory can be realized across many industries. Using the powerful AXIO tool, they take into account inventory’s many vagaries. IBM SYSTEMS MAGAZINE: Back in the 1990s, supply chain was a big deal, with large MRP and ERP vendors supporting it. That interest seemed to have waned only to resurface. Why? ULRICH SCHIMPEL: I think the focus was

Table of Contents for the Digital Edition of IBM Systems Magazine, Power Systems Edition - July 2011

IBM Systems Magazine, Power Systems Edition - July 2011
Table of Contents
On the Web
Editor’s Desk: Milestones
Dashboard: Commercial Space Flight - Can Your Computer Brew Coffee?- Multitool Keychain - Opinion Matters
Q&A: How IBM Reduced its Microelectronics Inventory but Elevated Service Levels
Data Display: The Cost of a Breach
Case Study: VoiceWave Saves Money for itself and its Customers with BladeCenter and Power 750 Technology.
Forward Thinking: Power and Mainframe VPs See IBM’s Past and Future on Similar Paths.
100 Icons of Progress: The Making of International Business Machines.
Focus on Storage: IBM Information Archive Automates Data Security and Management
Next: R3 Messaging Holds Promise as a Key Technology for Smarter Planet Solutions
Advertisers’ Index
IBM Perspective: 100 Years of Innovation
Snapshot: Software Architect Prefers Harmony
Reference Point
IBM 100: 10 IBMers who contributed to 100 years of success

IBM Systems Magazine, Power Systems Edition - July 2011