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Questions 1. What were the problems of Corning's old system? 2. What was the logic behind decentralizing operations? 3. How is integration of information done in the decen- tralized environment? 4. How is flexibility provided by the new system?

Questions 1. What were the problems of Corning's old system? 2. What was the logic behind decentralizing operations? 3. How is integration of information done in the decen- tralized environment? 4. How is flexibility provided by the new system?

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
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CASE 8.1 EC Application GLOBAL SUPPLY CHAIN SYNCHRONIZATION AT CORNING, INC. Corning Inc., a glass manufacturer headquartered in upstate New York, makes optical fiber, cables and photonic compo- nents, LCD glass for flat panel displays and other products, as well as the glassware and cookware that were the company's original products. The company has multiple businesses and research, production, and distribution sites in 34 countries. Although they share the direction and global focus of the organization, the company's 12 business units have been managing independently, since 1995, their own planning, order management, production, and other supply chain operations. Such decentralization empowers the units, but the company has experienced problems ranging from delivery delays to excessive inventory costs along its long and unsyn- chronized supply chains. To ease these problems, Corning looked for solutions that would enable it to create and optimize truly global sup- ply chains within its businesses. The Supply Chain Technology Strategy group, along with the process owners (the Corning managers who are responsible for the various processes), did wide-ranging analyses of each business unit. The group planned improvements in the supply chain process and tried to find the best SCM solutions to help carry out the improvements. Corning chose PeopleSoft as its ERP vendor. Using PeopleSoft technology, Corning was able to integrate the relevant activities of its manufacturers, suppliers, cus- tomer service organizations, sales organizations, and tech- nology innovators. To enable an optimized, real-time "virtual factory" envi- ronment, Corning Specialty Materials Group (manufacturer of semiconductors, photonics, and technical materials) com- bines PeopleSoft manufacturing, customer fulfillment man- agement, and supply chain planning solutions to improve col- laboration among the 14 factories and sales and research sites worldwide. Rick Beers, Director of Supply Chain Technology at Corning, explains, "High performance at Corning means agility. We need to react quickly to opportunities or problems in our supply chains-to see snags coming and plan accord- ingly, or adjust production levels in response to demand. That requires real-time data and interoperability among applications. It all comes down to having the right informa- tion at the right place at the right time" (peoplesoft.com 2002). The improved infrastructure, specifically a common database shared throughout Corning's organization, has made possible the flexibility to increase yield, decrease cycle time, and maintain low levels of inventory based on sales fore- casts. The new process has transformed the supply chain by increasing or improving collaboration, workflow, planning, strategic analysis, and e-business initiatives. Corning is now experiencing significantly fewer problems along its sup- ply chain. Sources: Compiled from Springer (2002), corning.com (press releases 2002), and peoplesoft.com/go/pt_scm (2002). Questions 1. What were the problems of Corning's old system? 2. What was the logic behind decentralizing operations? 3. How is integration of information done in the decen- tralized environment? 4. How is flexibility provided by the new system?
Transcribed Image Text:CASE 8.1 EC Application GLOBAL SUPPLY CHAIN SYNCHRONIZATION AT CORNING, INC. Corning Inc., a glass manufacturer headquartered in upstate New York, makes optical fiber, cables and photonic compo- nents, LCD glass for flat panel displays and other products, as well as the glassware and cookware that were the company's original products. The company has multiple businesses and research, production, and distribution sites in 34 countries. Although they share the direction and global focus of the organization, the company's 12 business units have been managing independently, since 1995, their own planning, order management, production, and other supply chain operations. Such decentralization empowers the units, but the company has experienced problems ranging from delivery delays to excessive inventory costs along its long and unsyn- chronized supply chains. To ease these problems, Corning looked for solutions that would enable it to create and optimize truly global sup- ply chains within its businesses. The Supply Chain Technology Strategy group, along with the process owners (the Corning managers who are responsible for the various processes), did wide-ranging analyses of each business unit. The group planned improvements in the supply chain process and tried to find the best SCM solutions to help carry out the improvements. Corning chose PeopleSoft as its ERP vendor. Using PeopleSoft technology, Corning was able to integrate the relevant activities of its manufacturers, suppliers, cus- tomer service organizations, sales organizations, and tech- nology innovators. To enable an optimized, real-time "virtual factory" envi- ronment, Corning Specialty Materials Group (manufacturer of semiconductors, photonics, and technical materials) com- bines PeopleSoft manufacturing, customer fulfillment man- agement, and supply chain planning solutions to improve col- laboration among the 14 factories and sales and research sites worldwide. Rick Beers, Director of Supply Chain Technology at Corning, explains, "High performance at Corning means agility. We need to react quickly to opportunities or problems in our supply chains-to see snags coming and plan accord- ingly, or adjust production levels in response to demand. That requires real-time data and interoperability among applications. It all comes down to having the right informa- tion at the right place at the right time" (peoplesoft.com 2002). The improved infrastructure, specifically a common database shared throughout Corning's organization, has made possible the flexibility to increase yield, decrease cycle time, and maintain low levels of inventory based on sales fore- casts. The new process has transformed the supply chain by increasing or improving collaboration, workflow, planning, strategic analysis, and e-business initiatives. Corning is now experiencing significantly fewer problems along its sup- ply chain. Sources: Compiled from Springer (2002), corning.com (press releases 2002), and peoplesoft.com/go/pt_scm (2002). Questions 1. What were the problems of Corning's old system? 2. What was the logic behind decentralizing operations? 3. How is integration of information done in the decen- tralized environment? 4. How is flexibility provided by the new system?
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