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9/21/2018 5:04 PM How Microsoft does IT: Digitally transforming the Microsoft manufacturing supply chain Darren S. Coil Principal Program Manager Core Services Engineering © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.
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Agenda Microsoft Manufacturing SC Overview Transformation Motivation
9/21/2018 5:04 PM Agenda Microsoft Manufacturing SC Overview Transformation Motivation Digital Journey Strategy The Transformation Journey Our results and future thoughts © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.
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MSC- Who We Are and What We Do
9/21/2018 5:04 PM MSC- Who We Are and What We Do >77M Units Manufactured & Shipped >42,000 Number of Active SKU’s Transformation, Technology and Analytics Supply Chain Mgmt./ New Product Introduction ~$8B Total Amount of Annual Spend >390 Number of Suppliers (includes component suppliers) Strategic Sourcing Care 1TB Total Daily SC Data Generation 33 Number of Mfg & Distribution Operations Global Supply Chain Integrated Business Planning 1.7M+ Est. FY17 Number of Retail and Commercial Sales Orders 2.0M+ Est. FY17 SAP Deliveries Safety, Compliance & Sustainability Manufacturing 107 Countries Serve 30K Ship To Locations © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.
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Our Products PC Hardware Surface Hub HoloLens Software Xbox Surface
9/21/2018 5:04 PM Our Products PC Hardware Surface Hub HoloLens Software Xbox Surface Surface Studio © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.
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MSC Global Presence 9/21/2018 5:04 PM Argentina Colombia Canada
Australia Austria China France Ireland Japan Singapore Malaysia UK United States UAE Germany Russia Brazil Hong Kong SAR Czech Republic Netherlands Taiwan Mexico India Finland © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.
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Microsoft Supply Chain Challenges
9/21/2018 5:04 PM Microsoft Supply Chain Challenges Pricing and Margin Pressure Increasing Customer Service Expectations Virtualized and Distributed Supply Network Shortening Product Lifecycles Aging processes and systems were no longer sufficient. A Digital Transformation of Microsoft’s Supply Chain was required 1 Digitized Supply Chain © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.
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MSC’s 1DSC Transformation Journey
9/21/2018 5:04 PM MSC’s 1DSC Transformation Journey Wave 3: Cognitive Amplify with algorithmic decision making and automated execution. Intelligent. Empowered Wave 2: Predictive Move from Reactive to Predictive with big data, machine learning, IoT. Smarter. Faster Wave 1: Connected Leverage the cloud to connect, automate, visualize E2E view of business. Interconnected. Aligned © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.
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9/21/2018 5:04 PM The Azure Platform Enables our Connected Digital Supply Chain Foundation Supply Chain Partner Systems Supplier ERP BOM Management Shop Floor Control System Warehouse Management Transportation Management Point of Sales Freight Management Enterprise Services Supply Chain Cloud Supply Chain Services Azure API Management Microservices Azure Application Insights Event Hubs Commerce Device Telemetry CRM Subscriptions Product Catalog Sales Corporate systems Data & Advanced Analytics Platform Azure Data Factory Azure Data Lake HD Insight Microsoft Supply Chain Core Transactional Systems Dev/NPI Plan Source Make (MDS) Deliver Care Finance © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.
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Factory Video Microsoft Manufacturing Digital Transformation: Leading the Industry with Microsoft Tools/Technologies
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Predictive Factory’s with MDS, a Azure-based system for real-time factory floor & product lifecycle analytics Before: Static, siloed data (TCS, Shop Floor…) After: Enables proactive alerting, predictive analytics T2 T1 Data Lake Azure Factory Blob SharePoint Event Hub T2 Critical T2 Other T1 SQL JDM1 Shop Floor EIP JDM1 Shop Floor MTE TCS Returns Returns TCS TCS JDM1 Any T1 or Critical T2 Scale Capture - 1B data points/day, Analyzed < 1% Capture – up to 10B data points/day, able to analyze 100% Speed Accessibility to data measured in hours/days Accessibility to data measured in min/secs Reduced Returns, Higher Yields, Better Productivity
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System enables Power BI, machine learning, advanced analytics & decision making capability
E2E Visibility from Incoming to Customer Proactive Alerting, Real time Insights Incoming Manufacturing Customer Incoming Part Quality & Availability CTF/CTQ IoT Process Monitoring Product Yield Outgoing Quality Field Quality Returns Repair & Refurb T2 Quality Output & Shipment Progress Big Data Mining Proactive Alerting Real time Insights Predictive Analytics Creating Clarity via Personalized Dashboards Increasing Collaboration, Connected Data Streams enable Teamwork Improving Factory Productivity/Optimization Big Data insight and Machine Learning Proactive Alerting Predictive Analytics
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Implementation is changing the way we (Microsoft & partners) manage the day to day factory operations Example: Factory Manager Product Dashboard Example: Proactive Alerting Personalized dashboards align to Factory Manager’s purpose Proactive alerting monitoring critical IoT enabled measurement data Surface Pro 4 Alerts identify one tester drifting out of control Tester taken off line, and issue corrected before yield impacted Alerts identify significantly different battery placement measurements on one line vs others Fixture alignment issue corrected before quality impact
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As a result of the foundation, we are now starting to use predictive analytics & machine learning in the factory Example: Predictive Yield Improvement Example: Predictive Return Insights Factory Data Assembly component, Genealogy, MES, Environmental Product Big Data Product Design & Mfg Mfg/Test process Components/supplier Hardware/device design Product Experience SW release/updates App/accy Incompatibility Windows telemetry Analytics engine evaluated multiple attribute variables to predict top patterns across Wafers, Chips Training Machine Learning models to identify drivers/patterns of SP4 returns attributed to critical HW genealogy, software telemetry & CSS data Azure ML Azure ML Current model predicts ~80% recall rate for a returned device. Improving precision with additional Factory and Customer/Retailer data Model predicted optimal patterns and optimized manufacturing parameters for improved yield Current insights Predictive insights Targeting to achieve: Improved CSS/Customer interaction 1st Returns reductions, better quality Improved returns forecasting Targeted patterns/combinations demonstrated ~30% yield improvements and $2M in scrap reduction Expected Results Results
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Digital Transformation increases PACE
Trusted Validate data & be correct, build credibility and convey the right message Intelligent Use cloud & analytics, understand variations and lead a conversation Real Time Move from weekly to real time, increase ability to respond – Requires a Culture Shift Collaborative Connect data streams, build reusable information assets and increase visibility & velocity Data is the new Currency
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<Event Name Here>
9/21/2018 IT Showcase We offer what no one else can—the inside story of how Microsoft does IT. Our early adopter experiences, best practices, and proof points offer an inside view of the Microsoft enterprise in order to help inform your most crucial IT implementer decisions. Technical content Case studies and white papers Productivity guidance Videos and webinars Adoption suites How Microsoft does IT Content Courses Productivity microsoft.com/ITShowcase
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IT Showcase sessions (Mon, Tue)
9/21/2018 5:04 PM View our session list at: aka.ms/itshowcaseignite2017 Code Day Time Location* Title Session Type THR1092 Monday 1:15PM - 1:35PM Microsoft Theater 12 How Microsoft does IT: Learn from our IT experiences by exploring content resources from IT Showcase Theater | 20 minutes THR1095 1:45PM – 2:05PM How Microsoft does IT: a playbook to empower and inspire your employees THR1094 4:35PM – 4:55PM How Microsoft does IT: Top tips for service managers transforming to a cloud-based world THR2278 5:05PM – 5:25PM How Microsoft does IT: Digitally transforming the Microsoft manufacturing supply chain THR1088 6:35PM – 6:55PM How Microsoft does IT: Accelerate adoption and productivity with quality communications THR2290 7:05PM – 7:25PM How Microsoft does IT: How Microsoft is embracing and building modern SharePoint experiences internally BRK3113 Tuesday 9:00AM – 9:45AM OCCC West Hall F3-4 How Microsoft used Windows 10 and Windows Server 2016 to implement privileged access workstations internally Breakout | 45 minutes THR1093 11:35AM – 11:55PM THR2287 12:35PM – 12:55PM How Microsoft does IT: Meet our IT experts in SharePoint and Office 365 (panel) THR1091 1:05PM - 1:25PM How Microsoft does IT: How our IT experts are transforming to build modern skills in a cloud world THR2276 1:35PM – 1:55PM How Microsoft does IT: All aboard for the Microsoft journey to the cloud THR2274 2:10PM – 2:30PM How Microsoft does IT: Achieve your cloud-first vision with modern cloud networking THR1090 3:35PM – 3:55PM How Microsoft does IT: Empower your organization to embrace a data culture with Power BI THR2284 4:05PM -4:25PM How Microsoft does IT: How Microsoft modernized and improved its existing intranet portals THR1096 5:05PM - 5:25PM © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.
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IT Showcase sessions (Wed, Thu)
9/21/2018 5:04 PM IT Showcase sessions (Wed, Thu) View our session list at: aka.ms/itshowcaseignite2017 Code Day Time Location* Title Session Type THR2282 Wednesday 10:20AM – 10:40AM Microsoft Theater 12 How Microsoft does IT: Empower your teams with secure devops in the cloud Theater | 20 minutes THR2281 11:35AM – 11:55AM How Microsoft does IT: Drive resource and cost efficiencies with Microsoft Azure optimization THR2279 12:35PM - 12:55PM How Microsoft does IT: Digitally transforming the Microsoft manufacturing supply chain BRK3124 12:45PM – 1:30PM OCCC W240 Manage Microsoft Azure at enterprise Scale: The Microsoft internal story Breakout | 45 minutes THR3091 1:05PM – 1:25PM How Microsoft does IT: Deploy an Office 365 groups expiration policy to enable lifecycle management THR2289 1:35PM – 1:55PM How Microsoft does IT: Our journey to internal customer success with Microsoft Teams THR2288 2:10PM – 2:30PM How Microsoft does IT: Modern cloud management with Microsoft Operations Management Suite (OMS) BRK3047 2:15PM – 2:30PM OCCC West Hall B4 How Microsoft deploys Windows 10 and implements Windows as a service internally BRK2060 3:15PM – 4:00PM How Microsoft uses Windows Defender ATP: Welcome to a SecOps world THR2275 4:05PM – 4:25PM How Microsoft does IT: Achieve your cloud-first vision with modern cloud networking THR2285 5:35PM – 5:55PM How Microsoft does IT: Key takeaways from the Windows 10 deployment at Microsoft THR2283 Thursday How Microsoft does IT: Get out of your users’ way while still protecting the enterprise THR2277 How Microsoft does IT: All aboard for the Microsoft journey to the cloud THR2280 12:05AM - 12:25PM THR1089 1:10PM - 1:20PM How Microsoft does IT: Digital transformation at Microsoft THR2286 How Microsoft does IT: Key takeaways from the Windows 10 deployment at Microsoft © Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.
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Please evaluate this session Your feedback is important to us!
9/21/2018 5:04 PM Please evaluate this session Your feedback is important to us! The slide will be replaced onsite through Silver Fox Productions with an updated QR code. This slide is required. Do NOT delete or alter the slide. From your PC or Tablet visit MyIgnite at From your phone download and use the Ignite Mobile App by scanning the QR code above or visiting © 2014 Microsoft Corporation. All rights reserved. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.
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