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Supply chain strategy and optimization in an outsourced environment

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Mechanical Engineering; in conjunction with the Leaders for Manufacturing Program at MIT, 2005. / Includes bibliographical references (leaves 77-78). / Sun Microsystem's Network Storage (NWS) Division provides computer network storage hard disk arrays to accompany Sun's core server products. In recent years, all of the incumbent network storage providers, including Sun, have been squeezed by the combination of competitors encroaching on the low-end of the business and the increased commoditization of storage products. As a result, these incumbents are under pressure to reduce costs significantly, and are scrutinizing their supply chain to identify opportunities to improve performance. Most of the production of these storage products is outsourced through either OEM relationships or contract manufacturing, creating numerous challenges for managing the supply chain. This thesis sets forth a framework for improving supply chain performance, and applies it to the Sun's Network Storage group. The supply chain analysis framework used in this thesis suggests improving a supply chain by analyzing six key elements: Metrics, Benchmarking, Inventory Management, Cycle-Time, Design for Supply Chain, and Supply Chain Structure. Metrics were developed to improve supplier delivery. Benchmarking revealed Sun's competitive position. / (cont.) Inventory management was improved with the implementation of a min-max inventory scheme to select products. Cycle-time was investigated via a direct shipment initiative and test time investigations. The upstream component led to product development recommendations. And the supply chain strategy of postponement of customization concept was developed. Key learnings include the relevance of metrics, the difficulty of moving down market, and a greater understanding of the impact product development has on operations. The research for this thesis was conducted during an internship at Sun Microsystems, within the Worldwide Operations group, in affiliation with the Leaders for Manufacturing program at the Massachusetts Institute of Technology. / by John M. Clemens. / S.M. / M.B.A.

Identiferoai:union.ndltd.org:MIT/oai:dspace.mit.edu:1721.1/34836
Date January 2005
CreatorsCelmins, John M. (John Michael)
ContributorsAbbott Weiss and Sara Beckman., Leaders for Manufacturing Program., Leaders for Manufacturing Program at MIT, Massachusetts Institute of Technology. Department of Mechanical Engineering, Sloan School of Management
PublisherMassachusetts Institute of Technology
Source SetsM.I.T. Theses and Dissertation
LanguageEnglish
Detected LanguageEnglish
TypeThesis
Format78 leaves, 4972697 bytes, 4975891 bytes, application/pdf, application/pdf, application/pdf
RightsM.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission., http://dspace.mit.edu/handle/1721.1/7582

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