SJRATi.GY PROCESS VALUE

Spreading the Word Across HP

For several years, Hewlett-Packard (HP)

has run a design for supply chain (DfSC)

program aimed at bringing supply chain

cost considerations to bear on product

design decisions.The program has been

an unqualified success.To date, DfSC

efforts have resulted in aggregate cost

savings that exceed $100 million.

Here's a look at how design for supply

cbain best practices are diffused

throughout HP

By Brian Cargille and Chris Fry

Brian Cargille is the Asia Pacific Japaumanuger of Strategic Phntiiiiig ami Modeling

lit Hi'u IL-lt'Packard Co. and was jtirttterty

tlw compmi) 's uorMwide Design for SupplyCluiiii prograni manager. Chris Fn is founder

and president of Strategic ManagementSolutions, a management considlancy.

hcscdius. there is o rowiti i acceptance (iling products with the suppK chain in mintl.We see more articles and success stories tout-ing the importance and impact of the "designfor sLippiy chain" (DfSC) eoncepl. Furihcr. theDfSC approaches themselves—such as varietymanagement, logistics enhancement, common-

ality and reuse, postponement, tax and duty reduction, and take-hack lacililatlon—are fast becoming staples of todays businessvocabulan.' As multinational corporations adapt to increasinglyglobal supply chains, product design decisions are affecting theirsLipply chain costs and efficiency to an unprecedented degree.

Despite the growing attention, however, many large man-Lilacturers are still a long way from making DfSC an integral|iart ot their product-development and product-managementmissions and processes. There are many circumstances wheremanagers may see some value in practicing DfSC. But otherconstraints-—limited time, scarce personnel resources, or lack oflamiliarity with the benefit.^ of DfSC. for instance—stand in theway. \ he challenge lies in the diffusion of re.sponsibility Supjilychain cost savings are rarely reflected in the [lerlormance score-card of a design engineer or marketing manager. New [iroductintroduction teams are already overwhelmed with directives to"design for X," and the\ prioritize their scarce resources to meetincreasingly stringent cost and performance objectives, it is cru-cial to find ways to ensure that professionals across functionalareas understand and act on the DISC principles.

Our experiences at Hewlett-Packard (IIP) have shown thatthere are effecti\e ways to spread DISC' best practices. Ilia'sdesign for supply chain efforts hegan in (he early l'-)9()s witha few visionaries making innovative decisions for their |>rotiuctlines, Project-by-projeet DISC' elTorts haw reduced material,inventory, and logistics eosts LIS well as in improved serviee locustomers. In 2001, we hegan asking, "How can we harness and

3 4 S L ' I > I > I \ (. II VI \ \1 \ . \ . \ ( ; L 1 RiEV nivv • i V 7 A L f , L s i 2 0 0 6

diffuse this knowledge across the company?" With more than30 different product lines, facilities in more than 70 coun-tries, and upwards ol 120,000 employees, it was far from e isy.Yet we have successfully developed a formal process that hashelped us spread hest practices across all our businesses.

The Story of the All-In-One PrinterIhe power of drawing together design-lor-supply-chLiin f)estpractices that were developed aeross the company can heseen in i lPs efforts to design a new all-in-one printer. In2002, HP wanted to Uiunch an all-in-one printer at a pricecomparable to thai of its existing low-end printers. Untilthen, all-in-ones had sold well, hut they were relatively large,complex products. Soon, they would no longer be competi-tive as inkjet printer prices dropped lower and lower. HPmanagement set aggressive targets for material cost, assem-bly cost/complexity, and shipping expense; there was no slackadded to the launch sebeduie.-

laced with these constraints, our R&D, supply chain, and

jiackaging groups knew they needed an even stronger part-nership lo reach their new goals. So they looked clcisek at tbeOfSC: techniques tbat bad been proven elsewhere at HP—indevclopinent of DeskJet and LaserJet printers, for instance.I hey improved the all-in-ones structural rohustness so tbatit could handle rougher handling with less padding. Theykept the unit small and cube-shaped to make hetter use ofcontainer space. They stuffed the cahles and pens inside the[irinter access door to further reduce final packaging size andthus fit more units on a pallet.

Otber enhancements enabled the generic printer to beto be sold in all of HP's markets hut configured for any lan-guage, managing variety while keeping assembly costs low.The team employed old tricks such as using a 110/22()V uni-versal power supply. And it came up with some novel ideas.One example; shipping the all-in-one with a harcode lahelthat is scanned hy the user during startup. Tbe scan aetivatesthe unit's own software to configure the language tbat willappear on its display, among other region-specific cbaracter-

Javier RoiTiaro

u v\ vv.stnir.com S L I > P I . V t i [ R t \ n - : \ v • J U L V / A L t ; LS r 2 0 0 6 3 5

Design

the unit's ov\n sohware to conCigLire the language thai w ill successes . At I IP. we perform this education through the work

appear on its display, a m o n g o ther region-specific character- done by our internal constil tants—-members of HP's Strategic

istics, Witb tbose and a few o ther devi-lopmcnts. the team Planning and Motleling (SPaM) t e a m ^ i n partnership with

met its goals, and the [iroducl has heen very suceessful , protiuct-iine managers, SLICCCSSCS are publicized iiUernallv to

I be ou t come ol tbis par tnership is an example of the hest huild excitcmetit abotit the a|i | iroaches. By reeogni/ing and

that DISC' has to olicr at IIP, Instead of reiving on a single- rewarding early wins, v\e luiiitf a [xisitive reinforcement mech-

minded, aeross- thc-hoard ptish for one tyjie of improvement anism to generate Itirther interest, granting more responsihil-

ity, additional resources, and a wider range of

leadership opportunit ies to those who generate

the w ins.

O n e story v\'e tell is about the motint ing

I . . r 1 • I - I racks for HP's mid-rantic ser\ 'ers. W h e n }W

chain practices. It begins by proving the conceptwith early wins.

HP follows a well-defined, four stepprocess to develop and diffuse design for supply

anti C"ompat| C'ompiiter merged some yearsago, HP's siip|i!y chain managers lound (hatthe raeks on HP's ser\ers had round holeswhile those lor C'ompacj used square holes,

sueh us commonality or postponement, different departmcn- That might nol seem to be a big issue, but it meant that thetal functions work together using multiple techniques in merged company had to order, stock, anddistribute 12 dit'fer-coneert so they can meet aggressive cost and schedule goals, ent rail kits for mounting scners to cabinet raeks—an unncc-'Ihese techni(.|ues ha\e spread across all of HP's businesses, essary cost since the rack mounting did not matter to HP'sincluding printing, personal computing, and ser\ers. customers. The eventual decision was to create H\c common

rail kits for both families ol ser\'crs. The expeeted sa\'ings inmaterials and in\entory o\er the lilecycic of the prodticts:SM million.

A Four-Step Process,At 1 IP, we loliow a defined process (see b,\hihit I) to de\elopand dilluse design for supply chain practices,' We belie\e thelour-step process is generally applicable to other businesses Step 2: Formalize the concept. Torniali/ing the concept

in\()Kes making it easy to understand so it resonates with oth-L'rs, At HP, we came up with the "DISC' Si\ Pack" as a gra|)hi-cal rejiresentation ol the concept as a whole, (See fi,\hil)it 2 on

and other types of best practices. While each step is impor-tant to DfSC's diffusion, we vviN focus the second half of thisarticle on an interesting and \aiuable process that is central

to the (ourth step: what we call our "opportunity assessment" page XX,) Over the life of our program, we have redesigned theprocess. First, however, we review the overall diilusion pro- Si\ Pack se\eral times. Although we don't belie\'e it is periect.cess thai we iia\c usetl at fiP.

Step i: Prove the concept with early wins. I h i s s l e j iin\ol\es demonstrating the viability of the concept tising earhsuccess stories and developing collateral that summarizes the

EXHIBIT 1

Key Steps for Diffusing Best PracticesDevelop Collateral

(1) Prove the conceptwith early wins

(2) Formalizethe concept

(3) Formafizethe program

(4) Accelerateadoption

• Use a combination ofbusiness experts andinternal consultants

• Recognize and rewardearly successes

• Create brief, positivemessages that appealto the needs of theadopters

• Crystallize defniitiofis

* Develop educationalmaterials that identifyadopter concerns,provide relevantexamples, and givereliable information

• Promote discussion withsatisfied peer adopters

• Develop nol only livecourses but also onlinetraining, experiencestories, articles, etc.

• Assign business owners •and create incentivesfor success

•• Establish metrics and

use them to measure thecompany's performance

• Set up a process fornonexperts to learn skills,adopt the practices, andconnect with a networkof experts for support

tJse metrics to identifygaps in performance

Conduct opportunityassessments to helpmanagement prioritizefuture applications

the Si,\ Paek diagram pri'scnts j clear and tinderstandable mes-sage—something that has been marketable to a broati audience.

I'ormali/ing tbe concc|Jt also ineltides developing eduea-lional materials stich as live courses, online training classes.short case studies that we call "experience stories," and pub-

. lisbed articles as a wav to establishI

credibility and iacilitate knowledgesharing. Once tbe concept is clear(not perfect, jusl clear), formalizingihe jirogram can begin, I'or exam-ple, tor DfSC!. we have iiroducetlmore than 20 online and instruelor-leil training moilules as wx'li as cal-euiators and process guides tliLit areavailable on tiP's internal Web site.These were itnaluablc in stantlard-i/ing the approaches, sharing theideas, and creating huy-in across ourbroad and com|iic\ organization.

Step 3: iormalize the program.This step ealls for chartering a teamthat is responsible lor diffusing and

36 M A N ACT JL v \ , s c r n r , i ( H i \

Design

inijilemenling the DISC' hest practices across the organiza-tion. /\t HP, this team included internal supply chain andproduct design consultants along with managers from eachol HP's business groups. By assigning specific project man-agement and technical support resources and estahlishingappropriate metrics and incentives (for example, cost reduc-tions per product line or number of units shipped per pallet),the rate of adoption inereases.

The Opportunity Assessment Approach

The DtSC opportunity assessment is an easy and relativelyt|uick \:ay to help businesses identify specific opportunitiesfor applying DfSC in their product lines. It also helps pri-oritize opportunities according to their potential impacts onoperations and the hottom line. The assessment scans eachof the DfSC- Six-Pack techniques to pinpoint (jpportimiticsand attempts lo estimate the potential of each one. liach

Step 4: Accelerate adoption. Adoption occursonce sufficient attention is heing given toapplying the techniques across a \\ ide range ofproducts. At this stage, management must pri-oritize and focus resources to capture the mostvalue. In other words, having diseo\'ered appli-cations for DfSC. we must now focus attentionon those of greatest value to the compan\- as awhole. This can he challenging in corjiorationsas hroad and fast-moving as I IP. where the "bigvalue" opportunities may not he concentratctl in one place.In fact, they may he spread across multijile product lines thatare managed from many sites around the world. That's whatmakes adoption of DfSC dilficult.

The design-for-supply-chainopportunity assessmnt is an easy andrelatively quick way to help businesses identify

specific opportunities for applying DfSC intheir product lines.

assessment comprises a six-week in\estigation during whichthe assessment team collects data and performs analysis,wrapping up with a week-long, face-to-face working session.Here are its main elements;

EXHIBIT 2

HP'S "Six-Pack" View of DfSCThe following graphic illustrates HP's view of what DfSC " is." HP has used these techniques

successfully for more than a decade.

Variety Management Logistics Enhancement

Weigh costs of variety againstsales impacts to determinecustomer offering

Postponement

Redesign product and pack-agini) to improve density factorand size as well as optimizing# per pallet/load

Tax and Duty Reduction

Commonaiity and Reuse

Platform Comttiotality

Make components, modules,and interfaces commonacross more products, nowand in future

Environment & Take-Back

• 0Modify product to allowprocess sequencing changesand postponed differentiation

Cbanqe build location andtransfer prices to reduce taxand duty burden

Product and packagingchanges to reduce reversesupply chain costs

To identify these opportunities, we have developed anapproach that ue call the DfSC. opportunity assessment. Theassessment process makes the hest use ol' husiness manag-ers' limited time hy introducing them to the benefits of usingDfSC techniques and helping them understand where t(jlocus their teams.

Project Objec t ives• Identify opportunities lor ihc htisiness team

to implement an\ or all of the six DfSC'techniques.

• Estimate the potential \,iluc lit HP ol actingon the icicntified oiiportunitics.

Project Timeline• Kickoff {om: week): Team meetings to revjev\-

the assessment process, roles, and responsi-hilities. Includes training for the team mem-hers on how to complde their tasks dtiringthe assessment.

'Phase 1 (four weeks): Data colleclion/prcpa-ration of initial findings—data collectionand phone inter\iews. followed by offsiieanalysis hy SPaM team.

• Phase 2 (one week): ()n-site working ses-sion—joint working session for fi\'e days tode\e iop final opporttinity list.

Expected Outcome and Results• A list ol polenlial DISC impn)\ement oppor-

tunities for the husiness team.f'or each identified op|iorltinity. a rotigh estimation ofits impact for I fP.

Project Team• Two SPaM consultants (. 0 percent of their time each).• Project manager (20 percent).

38 I'i'i 1 C II \1 \ \ At, 1. Ml \ I i l l \ M w • J L 1 1 / A L ciL ST ioo6 wwM.scmr.t'om

• Data collection coordinator (20 percent).• Finance representative (15 percent), marketing repre-

sentative (15 percent), operations representative (15percent).

• Executive sponsor (5-10 percent), general manager (lessthan 5 percent).

The effort culminates in a presentation to managementhighlighting the identified opporttinities and potential valueto the husiness. One |ioint to note: Although the assessmentis easy and fairly fast, it is no small commitment. If you cal-culate the aggregate person-hours required from the husinessteam, it calls for about one full-time equivalent staff for sixweeks. But as we will diseuss later, the results make it wellworth while.

An assessment might start when an f i D manager callsin our SPaM team to resolve design-for-supply-chain chal-lenges on a planned inkjet printer. In the first week, a forma!kickoff is held to make sure that the partieipantsare in syne with the objectives and scope of theassessment. All relevant stakeholders agree to theplan and resource commitments.

l o conduct the assessment itself—which usu-ally takes place during weeks two through Hve—weform a cross-functional team that comprises twool our in-house SPaM consultants along with par-ticipants from finance, marketing, and operalionsgroups that are already serving the product linebeing evaluated For DfSC. All those deployed arepart-time on the project. The assessment is led h\the SPaM ci)nsultants working alongside a projectmanager from the inisiness. Early in this phase,the data collection templates are coin[)lcted antl a series ofphone inter\iews takes place with key stakeholders—manag-ers from HiiD, marketing, antl o[ierations, for instance. Bythe cut! ol the phase, an initial "'opportunity list' has heende\eloped (see h.xhibit .^).

1 he project team works together lo collect data, conductinterxiews. anti perform an analysis to idenliK and measuret!ie potential impact of opportLinities for im|ilementing DfSC'

approaches in that husiness. The team re\icws theentire product line, using simple metrics to assessopportunities across the six technit|ties along w ithany additional opportunities itlenlified hy our in-house experts. Exhihit 4 shows examples of hasicestimation approaches tised to si/e the identifiedopportunities. Of course, each case is different, sothe approaches are adjusted as appropriate to thebusiness situation.

Example of tho OpportunityAnalysisHere's an example of the results from one sectionof an assessment for evaluating a postponcmenl

opportunity.'' The typical postponement choice in high-techproducts is between shipping finished-goods in\entor\' (FCJI)from a worfdwide factor)' directK to demand regions or ship-ping a generic unfinished product from the factory' that wiffundergo finaf assemhfy and test in each region.

For tbe first alternative, our example assumes a six-v\'eek!ead time for full assemhiy tbrough to finished goods atthe faetory in Asia, followed by four weeks in transit to theregional distrihution center (DC') in the United States. In tbesecond situation, lead time lor partial assembly is just fourweeks; transit time is tbe same, but another two weeks arespent later (at tbe DC) to eomplete tbe product. Delayingdifferentiation of products often enables dramatic inven-tory reductions while maintaining high service levels, hut italso carries increased manufacturing costs.'' Our opportunityassessment teams compare the major cost elements undereach afternati\'e to assess whetber or not a savings opportu-nitv exists.

Example

1 Variety Management

• Reduce packaging variety

• Manage SKUs

• Decrease feature set

1 Postponement

• Add multi-ianguagecapability

• Decrease touches

• Manage increased lead time

EXHIBIT 3

of an Initial Opportunity List

, Logistics Enhancement

• Reduce product size

• Change packing orientation

• Eliminate in-box materials

Tax and Duty Reduction

Existing programs alreadyin place

Commonality and Reuse 1

• Leverage key components

• Improve suppliermanagement

Take-Back Facilitation 1

Existing programs alreadyin place

TTie finisbed-goods inventory direct-sbip scenario mayrequire slightly larger boxes in ocean sbipment, which willincrease freigbt cost per unit. However, tbe freight costincrease may be offset somewhat by a reduetion in manu-facturing overhead at the destination region. By measuringand combining these cost changes with the expected changesin invcntor\-dri\'en costs for both stock and transit inventory,we can ohtain a rough approximation of the cost difference

EXHIBIT 4

Illustration of Simple Estimation Method

Variety Management

Net complexity costreduction from eliminatingproducts contributing last5% of margin

Logistics Enhancement

Freight savings from adding1 layer to each pallet

Tax and Duty Reduction

Savings if switch 100%of production to lowesttax region

S U P P L Y C H , \ I \ Rtv iEW • J L I . V / A L C L S I " 2006 3 9

Design

EXHIBIT 5

Example of Costs Comparison for aPostponement Opportunity

Final AssemblyCost Differential

Freight Costs

Transit Inventory

Stock Inventory

Postponed Assembly FGI Direct

between the two alternatives. (See Exhibit 5.)In our exampit'. there were actu;iiiy higher inventor\' costs

under the postponement scenario (contrary to the popularwisdom about postponement) because each base unit waslinked onl\' to one single finished product. When one baseunit is used in many end products, inventory pooling ben-efits generally outweigh the added cost of additional stockpil-ing, changing the economics of the decision, 1 his is a goodexample of how- a rigorous opportunity assessment exerciseean turn up findings that managers may not be expecting.

A variety of techniques exisl lor creating rough, yetrealistic, assessments of opportunity size. For examples ofother techniques we use at IIP, see the September 2001and September 2005 issues ot Supply Ckahi ManagementRevieiv/'

In the last week ol the opporttinity assessment project, thebusiness leadership decides how to proceed with the oppor-tunities identified, I he initial opportunity list is reviewed bythe whole projeet team. Final working sessions allow for revi-sions to the list and refinement of the impact estimates. Theteam then presents the opportunities to the managers. FheSix Pack fraTnev\ork now acts as a color-coJed "opportunitymap" that pro\ ides an at-a-glance idea ol the potential impactfor each initiative identified. (See Exhibit (l.)

Senior managers may decide not to takeaction on some opportunities it priorities clashor if the potential for savings seems small.They may also choose to pursue opportunitiesindependently without further support, or theymay request additional help from HP's DfSCexperts.

tools to lacililate deployment. The challenge WLIS to balancethe need tor a standard approach lor all ot HPs businesseswith the need for some level ol eustomi/ation lo address thediversity of the company's business activities. We createda suite of tools and templates to aid the DfSC experts indelivering fast, reliable, and eonsistent assessments, Tbeseinclude:

• A project memorandum of understanding (MOU) tem-plate describing the prohlem statement, project objec-tives, and project approaeh,

• ,'\ customizable kiekoff-presentation template, whichgives a week-by-week timetable tor tbe project witb abreakdown of wbu is doing what,

• A projeet data-collection template, whieh clearly definesthe financial and operational data required and providesa format that team members can use to inptit theirinformation into.

•Analysis tools that automate a portion of the analyses,so as to expedite the workflow for our consultants.

• A template for the presentation of results, usiially tea-turing a waterfall diagram that categorizes the impactacross each of the six components ot the Six Pack,

• A process guide that describes bow to deliver the assess-ment,

Togetber, this Iriimeuork and the accomininying tools gettbe team aliotit hallway to a complete high-quality assess-ment, making the proeess quick and re|ieatable, Tbe other50 percent ot the journey calls tor domain knowledge, busi-ness judgment, and |)roject management skills—traits thateaeh SPaM consultant must bring to tbe table.

Results of the Opportunity AssessmentSo is it worth going to such lengths to perform such an assess-ment? Do the residts merit this kind ol statt invoKement toras long as six weeks'? The questions are not inapprofiriate,particularly for managers more accustomed to making t|uickdecisions and taking adion than to deliberating over inputsto tbose decisions.

At HP, we ba\e no doubts about tbe value of the opportti-nity assessment approach. We not only sec measurable ben-

The Opportunity AssessmentToolkitln order to deliver the opportunity assessmentrepeatedly across HP, it was important to devel-op a striicttired proeess and a reusable set ot

EXHIBIT 6

DfSC Assessment Results

Variety Management $X-Y I Logistics Enhancement $X-Y I Commonality and Reuse SX-Y

Reduce packaging variety

Manage SKUs

Reduce product size

Increase pallet-loadingefficiency

Leverage key components

Improve suppliermanagement

Postponement $X-Y | Tax and Duty Reduction | Take-Back Faciittation

Existing programs alreadyin place

Decrease touches

Manage increased lead time

Existing programs alreadyin place

^f' Significant opportunity Moderate opportunity

40 SLPPLI M A N A C L M L N I R L V I L U • j L L v / A L i t . u s i 200b

cfits but also find that the effort has a powerful proselyti/ingeffect. 'rhroLighnut the assessment exercise, team membersgain a much greater understanding of DfSC prineiplcs andpractices overall—to the point where thc\' can implementand sustain those practices themseK'cs.

We've seen an explosion in DfSCactivity in Hewlett-Packard'sbusinesses over the last few years, withaggregate cost savings that exceed $100million to date.

In the example described, the opportunity assessmentpointed to significant benefits from a simple packagingchange for an inkjet printer model that would reduce varietytrom 100 to less than 40 options without affecting the rangeot products themscKes. A similar exercise on a personal com-puter product yielded comparable benefits. Together, the twoOfSC' opportunity assessments identified more than $16 mil-lion in cost-saving and revenue-enhancement opportunities.

$100 Million and CountingWe've seen an explosion in DfSC acti\ity in Hewlett-Packard's businesses over the last few years, with aggregateeost-sa\ings results exceeding $100 million to date. The useof opportunity assessments to prioritize resources, followedhy focused improvement efforts with consultative support,has helped to speed both the diffusion of methods and theamount of value captured across HP.

We firmly believe that these experiences are transfer-able to a wide range of industries—particularly those withfrequent new product launches, worldwide markets, and abroad footprint spanning multiple product lines, manufactur-ing sites, and regions. While we believe tbat tbe opportunityassessment approacb and the OfSC' principles are relativelysimple and easy to apply, tbey do require work, commitment,and a formalized process. For HP, tbe impacts on our supplycbain ba\'e far outweighed the costs of the investment, gen-erating significant benefits for our shareholders. We wish youluck in the application and diffusion of these techniques inyour business.

Aitthors' note: The authors thank HP managers BillCraiidali, Director of Global Engineering Sen'ices: ScottEllis, Director of Strategic Planning and Modeling- andEric Skinner, Director oj Glohal Operations Learning andDevelopment, for supporting ayid championing Design for

Stipply Chain at HP. Bill proposed the idea oj the oppor-tunity asscssiiieiii and, with Eric Skinner, he sponsoredthe development oj ihe technique and supporting meth-odologies, ihanks also tojui Pin Er, R&D Director ojHP's Business Priutiiig Division, who enabled develop-iiient oj the opportunity assessment fraiiieivork hy request-ing an assessment and providing the resources to serve asan initial test case for the approach.

Endnotes

1 See for example: David Simchi-Le\i. Pliilip Kaniinsky, and F.ditliSimchi-Levi, "Coordinated Product and Supply Chain Design,"Designing ami Mamighig the Supply Chain, McCraw-Hill, 2000.Bradley Keup, "DFA Transforms Computer Chassis," AssemblyMagazine, ]une 2003. Mark Gottfrcdson and Keith Aspinall,"hinination Versus Comple\ity: What is Too Much of a CoodThing:" Han'ard Business Heriew, November 2005, LaurentDumarest, Ciilis Junk, and Bart van Dijk, "Learning a NewComplexity Language," Executive Agenda. First Quarter 2004.

2 "HP's Design Measure Reorientation," case study lor OperationsManagement Roundtjiblc (now Su])ply Chain Lxetutl\e Board),2002: v\ww.sceb.f\ecutiveboard.com

3 Developed based on principles Irom Di;ine Dormant "The ABCDsof Managing Change," Introduction tn Perfiirnitince Technology,cd. Martin Smith, International Society lor PerformanceImprovement, 1986: pp 238-256, and Fvcrctt M. Rogers,Diffusion of Inninalioiis 4th edition, The 1-ree Press, 1995.

4 Ail data presented arc for illustrative purposes only and do notreflect actual material, freigbt, manuliiLturing inerhead, or inven-tory-driven costs for HP products.

5 Hau L. Lee, Corey Billington, and Brent Carter, "HP CainsControl of Inventory and Sendee through Design for Localization"interfaces vol. 23, issue 4 (July-August 1993): pp 1-11.

6 See Brian Cargille and Robert Bliss, "How Supply Chain AnalysisEnhances Product Design," Supply Chain Management Review,September/October 2001: pp 64-74. Jason Amaral and BrianCargille, "How 'Rough Cut Analysis Smooths HP's SupplyChain," Supply Chain ManageuienI Review, September 2005: pp38-45

w.scriir.com C H A I N R t \ i t \v • J L i V / A C < ; L ' S T I O O 6 4 1