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The Supply Chain Cockpit

Dhejne, Carl-Johan (2010) MIO920
Production Management
Abstract
Organizations have over the latest decades seen a growing need for new multi-dimensional measures for evaluating their business performance, since traditional accounting models for long have proven not to be applicable to the modern business environment. Together with the need for timely information this has caused extensive requirements on the ERP-systems which often do not meet the needed requirements. This study investigates how a performance measurement cockpit can be developed for a supply chain to serve this purpose.
The wireless semiconductor company, ST-Ericsson, was formed in 2009 by bringing together Ericsson Mobile Platforms (EMP) and ST-NXP Wireless, into a joint venture between the parent companies Ericsson and... (More)
Organizations have over the latest decades seen a growing need for new multi-dimensional measures for evaluating their business performance, since traditional accounting models for long have proven not to be applicable to the modern business environment. Together with the need for timely information this has caused extensive requirements on the ERP-systems which often do not meet the needed requirements. This study investigates how a performance measurement cockpit can be developed for a supply chain to serve this purpose.
The wireless semiconductor company, ST-Ericsson, was formed in 2009 by bringing together Ericsson Mobile Platforms (EMP) and ST-NXP Wireless, into a joint venture between the parent companies Ericsson and STMicroelectronics. As a result of the merger ST-Ericsson became one of the market leaders in wireless technology and a supplier to four of the top five handset manufacturers in the world.
After the merger the division L3M was created, mainly from parts of the past EMP organization, and became operational in 2010. EMP was a design house for mobile platforms which relied on partners for supplying the hardware, only delivering the accompanying software themselves. ST-Ericsson was also made into a non-manufacturing company that outsourced its production, but still had full product ownership. For the former EMP employees and the L3M team this meant a whole new supply chain process, with real hardware ownership. L3M partly lacked capabilities and competences in the supply chain management field. Another problem was keeping track of the allocated cost in the supply chain, which resulted in a need for a performance measurement system.
With the use of the business intelligence tool QlikView a performance measurement system-prototype, named the Supply Chain Cockpit was developed, and studied in a clinical method, for L3M’s supply chain. By mapping the supply chain process, the cockpit was developed to align the performance measurement system with the division’s strategy and targets to enable competitive advantage through sustainable supply chain performance.
Together with deeper knowledge of the supply chain, the result was a prototype of a user-friendly, clear and visual performance measurement tool, with the ability to extract timely reports for upper management. The prototype compiles and stores data, with a powerful ability to drill down into the data for analysis of the material. Organizations can easily drown in their own data and the Supply Chain Cockpit displays how data can be compiled and performance visualized without lowering the data granularity. (Less)
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author
Dhejne, Carl-Johan
supervisor
organization
course
MIO920
year
type
M1 - University Diploma
subject
other publication id
10/5366
language
English
id
1976080
date added to LUP
2011-06-17 08:11:45
date last changed
2011-06-20 12:22:32
@misc{1976080,
  abstract     = {Organizations have over the latest decades seen a growing need for new multi-dimensional measures for evaluating their business performance, since traditional accounting models for long have proven not to be applicable to the modern business environment. Together with the need for timely information this has caused extensive requirements on the ERP-systems which often do not meet the needed requirements. This study investigates how a performance measurement cockpit can be developed for a supply chain to serve this purpose.
The wireless semiconductor company, ST-Ericsson, was formed in 2009 by bringing together Ericsson Mobile Platforms (EMP) and ST-NXP Wireless, into a joint venture between the parent companies Ericsson and STMicroelectronics. As a result of the merger ST-Ericsson became one of the market leaders in wireless technology and a supplier to four of the top five handset manufacturers in the world.
After the merger the division L3M was created, mainly from parts of the past EMP organization, and became operational in 2010. EMP was a design house for mobile platforms which relied on partners for supplying the hardware, only delivering the accompanying software themselves. ST-Ericsson was also made into a non-manufacturing company that outsourced its production, but still had full product ownership. For the former EMP employees and the L3M team this meant a whole new supply chain process, with real hardware ownership. L3M partly lacked capabilities and competences in the supply chain management field. Another problem was keeping track of the allocated cost in the supply chain, which resulted in a need for a performance measurement system.
With the use of the business intelligence tool QlikView a performance measurement system-prototype, named the Supply Chain Cockpit was developed, and studied in a clinical method, for L3M’s supply chain. By mapping the supply chain process, the cockpit was developed to align the performance measurement system with the division’s strategy and targets to enable competitive advantage through sustainable supply chain performance.
Together with deeper knowledge of the supply chain, the result was a prototype of a user-friendly, clear and visual performance measurement tool, with the ability to extract timely reports for upper management. The prototype compiles and stores data, with a powerful ability to drill down into the data for analysis of the material. Organizations can easily drown in their own data and the Supply Chain Cockpit displays how data can be compiled and performance visualized without lowering the data granularity.},
  author       = {Dhejne, Carl-Johan},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Supply Chain Cockpit},
  year         = {2010},
}