HOI Process Optimization Brainstorm
Meeting Agenda:
Goal of the meeting: uncover and document key pain points and gaps of the current HOI Blanket Process
Document and brainstorm the impact of the current process
Next steps, action items to highlight the opportunities with SCA Mgt team
Pain Points
Ideas to optimize
Why monthly budget became more important than hitting our quarterly numbers?
Attendees
Why ask for what we want, if the answer is already determined since the budget already being decided??? Fin calculated the number, why ask?
Bill: CM for Displays/LCD Panels, pricing for large monitors
Glenn: HOI department level
Kim S. report HOI budget for variety of commodities, under Joe
Claire: DR and SSD
Lisa: DRAM
Georgina: manage PO Blanket process
Luis, Mariano, Robert: Team 6
Kim: how we have to report the blanket, budget and actual. Every week, every week we are reporting some number, a lot to manage. Tell what you are planning to exit the month. Too many reporting requirements??? All confusing to me?
They way the process works in DRAM, reporting is fine as is? Automation will eliminate the email traffic. What is the PP: why the monthly vs quartly, DRAM and SSD. How ending inventory targets are calculated by Fin Team. We have no input to the $$ and dont understand how they calculate it. Planning cycle vs Fin team timeline. Updated guidance for Oct, changing inventory values within the planning cycle?
HOI forecast based on the requirements on all our agreements as % of our business. If OEM decided not to pull and we dont have HOI dollars? Meeting our fin # for the quarter and managing strategic agreements with our customers. You get squized inside the fiscal quarter. All Asian suppliers ob calendar fiscal quarter. SO to get the Sept quarter down.
Decouple calendar quarter and HOI requirements from the budget! It makes us do the wrong thing. We can not Support our suppliers if we are manaing.
CM ability to manage our HOI. Calendar vs quartert. Prices increase and price increases. Cost avoidance steps can not be properly executed. Prices are going now? We don't understand the why?? It can be constrained
HOI process change was not Fin driven? Or is it?
We are still learning about the new process.
Digitizing should make our life easier and now it is WEEKLY?? The tool is not making life better? Bad timing.
Communication and training did not happen at all. New process was not explained or communicated bby Fin team
Georgina ask: how many weeks of inventory and what is the fin impact? This month will be similar. How much do you need for this month ending and blanket? At the same we provide the set budget. CM were not informed. Russ is the escalation point for the CM team.
We have LTA with our suppliers, if the market changes, like it is changing now. There is not enough $$ to support the plan. It acts as our insurance policy. We dont understand the process from planning process.
Need to understand the exception process?
Old days: fin impact to insufficient HOI, we can communicate directly to Tim Brown to justify the extra funding to get the approval for the funding. Now we send it to Russ?
Georgina: lets get 100M approved and you need 125M. Justification section is where do you add all the information + the email cc Russ and Georgina to explain the exception with the reason.
Does the team understand the implications of the monthly vs quarterly process. We do not always have visibility on what we need but we dont know since the timing is not aligned. I do not have Buy-Sell/ I need to release HOI POs to get released by GPS so the supplier can get things moved on time. Timing is off. It is hard to do this monthly!! Past experience where we ignored the budget when we did whatever. Dont understand the process change??? Why monthly now?
We need to adjust the timing and engaging your directors for the justification for the change.
Provide as much details and involve management/Directors
WHO is driving the change from quarter to monthly planning and budgeting process? The micro-management of HOI is causing issues with commodity managers? What is the purpose and why the change is needed?
Meeting with Russ to discuss the most recent HOI process change.
Meeting with Fin team to understand the HOI budget and how the dollars are calculated, What is the formula? Where is the coming from?? How do they come up with that? Prices are changing all the time.
We are given our goals, we are not asked how our goals should be! How inventory dollars are calculated?
Desktop has in region factories. There is some commodities that are rolled up as one number and some are different. At times we have 10 locations to allocate the $$. How they
Is there one point of contact? Stacy provided the ### before. Who do we contact when we need clarity. Who is wizard behind the curtain?
Have a follow up meeting with Russ.
Giving up monthly # but i do not want to give up my quarter. What is the team can get the # down? Did we make mistakes? What si the corrective action for our team? We want to understand they WHY behind the change for DPA team?
Stacy: meeting with Tim Brown every month, so we need to have the ##.
Someone lost confidence in us/CM to hit our numbers? Why now and why the change? Stacy: this is internal numbers, we still have situations when teams are asking for $$ to come in lower than the target we were given, this happened twice. There is a lot of other things that are happening. It is ops issue.
New Monthly Process. How they calculate $$ and changes they are making? We need to bring in Fin team who provide the HOI $$ in SC. What is the for How they drive changes? How we supposed to make changes within lead time and planning cycle??? Dialog with Fin is needed. Last two weeks.
We are looking at one metric instead of give me the budget, and let us manage the budget.
Design a better exception process and comm tool between CM and the team