Stryker <> Noetive | Supply Chain Foundation Pilot

Introduction

Stryker makes and buys hundreds of thousands of parts across plants in several countries and many enterprise resource planning (ERP) systems. Where a part gets made, in-house or bought, at which plant, in which country, from which supplier, is a core function of the business, and cost reduction and speed of decision are the two outcomes Stryker expects from doing it better.

Today that is decided one analysis at a time, by hand: a set of products for a supplier, or a product family. The analysis's stock-keeping units (SKUs) are pulled from the Spend Cube or filtered from the Global Item Master. Each part is then checked for what it is, its drawing is found in the quality management system (QMS), its bill of materials and process steps are rebuilt from the drawing, and it is costed in the Siemens tool. Most of the time goes to cleaning data. After that, a supplier change takes six to twelve months, sometimes eighteen. The judgment that a move would be cheaper rests on experience.

The goal is a supply chain cockpit: one structured picture of every part, with its classification, its drawing and its should-cost at every site, so the network can be designed across the whole company rather than piecemeal, product by product, and refreshed as new SKUs arrive, maybe every quarter, half-year or year. A system that costs every product at every site means no one has to guess.

  • W1 SKU Classification: know what every part is, against Stryker's taxonomy, so no part falls out of an analysis unseen.
  • W2 QMS/PLM Drawing and Data Harvesting: get each part's drawing and technical data out of OnePLM, the quality management and product lifecycle management (QMS/PLM) system, in bulk, instead of one search at a time.
  • W3 Drawing, Process and Costing Feasibility: from the drawing, derive the bill of materials, the process steps and what the part should cost, by region. W3 runs only if W1 and W2 show feasibility.

Together they let any product family be taken from a SKU list to a should-cost at each location, which is what the make-or-buy and production-location analysis needs. Each workstream is proved first on examples the costing team has already completed by hand, so results can be measured against the team's own.

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How each workstream runs today (Click on a process below to see more)

W1 SKU ClassificationSKU classification places each of Stryker's stock-keeping units (SKUs), its parts and products, in its taxonomy: first finished good or component, then the category.Today it is done by hand from the technical drawing, for one costing analysis at a time; no reclassification of all SKUs has been done. The category a system alreadyholds is often wrong or empty, so misclassified SKUs drop out of a costing analysis unseen.S8 Global Item MasterItem masterS6 EncompassFinancial reporting toolS10 OnePLM (Windchill)Drawings and QMSS17 Spend CubePurchase spend reportingS9 Lama.aiProduct taxonomyS13 Power BIReporting toolW1.1Take up a batch of SKUsAn analysis's SKUs, from theSpend Cube or the Global ItemMaster.W1.2Consult the item systemsThe SKU's aliases, fields andcurrent category, from theGlobal Item Master.W1.3Pull up the technicaldrawing in the QMSIn OnePLM, from the SKU's partnumber to its saved drawing.W1.4Classify the SKU againstthe common naming,checking it is what thesystem saysFrom the drawing to a checkand a category in thetaxonomy.◇ Is the SKU what the systemsays it is?W1.5Correct the classificationof the SKUs found wrongWrong or empty categories, tothe reclassified Spend Cube.W2 QMS/PLM Drawing and Data HarvestingDrawing and data harvesting pulls the technical drawing of each stock-keeping unit (SKU) on a list out of the quality management system (QMS), for classifying andcosting. Today it is done by hand: the QMS is searched one SKU at a time, and the SKU's drawings are downloaded and reviewed for the one to use. A project can holdthousands of SKUs and take days to harvest, and the SKU numbers on a list do not always match the QMS.S8 Global Item MasterItem masterS17 Spend CubePurchase spend reportingS10 OnePLM (Windchill)Drawings and QMSW2.1Build the listof SKUsThe analysis'sSKU list, to theOnePLM searchW2.2Search the QMSfor the partnumberOnePLM searchscreens: fromthe listed…◇ Is the SKUfound under itspart number aslisted?W2.3Search againwith thenumberreformattedOnePLM: from anumber with azero or dashes…◇ Is the SKUfound once thenumber isreformatted?W2.4Search by thedescriptionOnePLM: from theSKU'sdescription to a…W2.5Find anddownload theSKU's drawingsOnePLM: from thesearch resultsto every…W2.6Pick thedrawing to useDownloadeddrawings: fromall of the SKU's…◇ Does thecomponent havedrawings forseveral metals,with the costingfor one metal?system not named yetW2.7Save thechosen drawingThe chosendrawing, savedfor the…system not named yetW2.8Retrieve thedrawingthrough theWindchillservicesOnePLM's API,from a partnumber to the…W3 Drawing, Process and Costing FeasibilityCosting feasibility works out a part's should-cost from its bill of materials and processes, for a make versus buy or a product transfer; a should-cost helps checkvendor quotes, some set low to win the business. Today it is done by hand, across tens of analyses at once that can hold thousands of stock-keeping units (SKUs)each, for existing products, maybe 100 new products a year and 2 or 3 acquisitions a year, which may take most of the analysis; the first should-cost for a type ofproduct takes probably a week or more. Costing a move (W3.5 to W3.8) goes back to the part's earlier costing: the cost is broken out, the elements that change arepointed out, and it is put back together for the new place; which products to look at moving is judged on experience.S16 Siemens costing toolCosting calculatorS17 Spend CubePurchase spend reportingS11 Optimization toolsOptimization softwareS7 ExcelSpreadsheet toolW3.1Read thedrawingDownloadeddrawing to itsparts…◇ Is this a moveof a partalready costed?system not named yetW3.2Extract thecomponents andcreate thebill ofmaterialsBy hand, fromthe drawing tothe part's bill…system not named yetW3.3Work out themanufacturingprocessesFrom the drawingor Stryker'splants to…system not named yetW3.4Cost theprocesses andthe componentsIn the Siemenstool: bill ofmaterials and…W3.5Go back to thepart's earliercostingRepository orapprovedhandbooks to the…W3.6Break the costinto its keycomponentsEarlier cost toraw material,labor and…W3.7Point out theelements thatchangeFrom thebroken-out costto the elements…W3.8Reconstructthe costChanged elementsto the newplace's cost…