Intel’s Approach to Supply Chain and CSR
Post on 02-Jan-2016
52 Views
Preview:
DESCRIPTION
Transcript
1
Intel’sIntel’s Approach toApproach toSupply Chain and Supply Chain and
CSRCSRBob Leet
Supplier HR/EHS Program Manager
2
Agenda
Intel Background
Overview of Current Supply Chain CSR Program
Philosophy on Future Program Direction
Vision in Action
3
Intel SnapshotIntel Snapshot
Year founded: 1968Year founded: 1968 Number of employees: 78,000Number of employees: 78,000 Revenues: $30.1 Billion (2003)Revenues: $30.1 Billion (2003) Products and services: over 450Products and services: over 450 Stock symbol: INTCStock symbol: INTC Worldwide offices and facilities: 294Worldwide offices and facilities: 294
Intel is the world's leading innovator in Intel is the world's leading innovator in advanced silicon technology, with more than 35 advanced silicon technology, with more than 35 years of leadership in computing and years of leadership in computing and communications.communications.
4
Intel Employees Around the Intel Employees Around the WorldWorld 78,000 employees 78,000 employees
(as of July 1, 2003)(as of July 1, 2003)– 48,000 in the U.S.48,000 in the U.S.
– 30,000 internationally30,000 internationally
Intel has employees in 48 countries worldwide Intel has employees in 48 countries worldwide with large sites in Ireland, Israel, India, China, with large sites in Ireland, Israel, India, China, Malaysia, Philippines, Costa Rica and the U.S.Malaysia, Philippines, Costa Rica and the U.S.
Diversity is valued: different people bring a variety of thinking to business and technical solutions
5
IrelandIrelandIFOIFO
IsraelIsraelFab 8/18Fab 8/18OregonOregon
F15, F20, D1F15, F20, D1
CaliforniaCaliforniaD2D2
ColoradoColoradoFab 23Fab 23
ArizonaArizonaFab12/22Fab12/22
New MexicoNew MexicoFab 7/11/11XFab 7/11/11X
Mass.Mass.Fab 17Fab 17
Costa RicaCosta RicaSan Jose A/TSan Jose A/T
MalaysiaMalaysiaPenang A/TPenang A/TKulim A/TKulim A/T
ChinaChinaShanghai A/TShanghai A/T
PhilippinesPhilippinesCavite A/TCavite A/T
WashingtonWashington
Intel’s High Volume Fabrication and Assembly/Test Sites
ChinaChina Chengdu A/TChengdu A/T(announced)(announced)
6
Intel as Industry Leader…Intel as Industry Leader…
FortuneFortune 500 ranking: 58 - 2003 500 ranking: 58 - 2003 FortuneFortune Global 500 ranking: 155 - 2003 Global 500 ranking: 155 - 2003 Top 50 Top 50 FortuneFortune “Best Companies to Work For” list “Best Companies to Work For” list FortuneFortune Most Admired Companies: #1 in industry group Most Admired Companies: #1 in industry group ComputerworldComputerworld "100 Best Places to Work in IT 2003" "100 Best Places to Work in IT 2003" FortuneFortune selected Intel Ireland as one of "10 Great Companies selected Intel Ireland as one of "10 Great Companies
to Work for in Europe." - 2003to Work for in Europe." - 2003 Intel was named Sector Leader in the Dow Jones Intel was named Sector Leader in the Dow Jones
Sustainability Group Index for the third year in a row. Sustainability Group Index for the third year in a row. Key component of Domini, Citizens, NASDAQ, FTSE4Good, Key component of Domini, Citizens, NASDAQ, FTSE4Good,
Calvert and other social indexes Calvert and other social indexes
7
Intel’s Strategic Direction: Intel’s Strategic Direction: Convergence of Computing and CommunicationsConvergence of Computing and Communications
8
Intel’s Current Supply Chain CSR Program The program starts at the top:
– Intel Corporate Business Principles (CBP) include Supplier HR/EHS Expectations
At the supplier engagement level:– Contracts include the Intel Corp. Business Principles key
Supplier HR/EHS points
– Supplier HR/EHS Expectation document given to each new supplier in most business units
– Intel Commodity Managers attend required trained
– Supplier selection audits include HR/EHS criteria in most business units
Continuous engagement activities:– Supplier continuous improvement assessments (SSQA)
– Annual Supplier End-of-Year Communication
– Annual “Supplier Day” Event
9
Supplier End-of-Year Communication:– More than 3,500 letters sent out refreshing our HR\EHS
Supplier Expectations in 2003
Supplier HR\EHS Assessment Results:– More than 650 assessments cumulative worldwide
– 173 in 2003 – 100% of planned
– All 2002 issues closed, all 2003 issues closed or in progress
– Findings dispersed across Asia and the U.S.
– Mainly obvious EHS issues or program document/deployment of HR programs.
Intel’s Current Supply Chain EHS Program
10
Philosophy on Future Program Philosophy on Future Program DirectionDirection
Company Program
Developed
Passion Motivated Learning
International Standards
Established &
Accepted
WhatHappensIn Here?
0 ~5 ~8-10Years
You Are Here
11
Philosophy on Future Program Philosophy on Future Program DirectionDirection
Company Program
Developed
Passion Motivated Learning
International Standards
Established &
Accepted
0 ~5 ~8-10Years
You Are Here
Industry /Sector
Harmonization
Common Suppliers Common Customers Efficiency Gains
12
Philosophy on Future Program Philosophy on Future Program DirectionDirection Intel has had great success in the past both leading and Intel has had great success in the past both leading and
contributing to Industry–wide programscontributing to Industry–wide programs– ECMAECMA
– Intel launched an initiative to develop voluntary industry design for Intel launched an initiative to develop voluntary industry design for environment standards, ECMA 341 is the result of this effortenvironment standards, ECMA 341 is the result of this effort
– ECMA 341 principles have been integrated into Intel's DfE program ECMA 341 principles have been integrated into Intel's DfE program
– I300II300I– Program to define the detailed needs of the next generation of Program to define the detailed needs of the next generation of
Semiconductor processing tools (200mm => 300mm wafers).Semiconductor processing tools (200mm => 300mm wafers).– Included Byproducts and Natural Resources consumption targets.Included Byproducts and Natural Resources consumption targets.
– S2S2– Equipment safety & health standards program developed to ensure Equipment safety & health standards program developed to ensure
that new tools meet semiconductor manufacturers expectationsthat new tools meet semiconductor manufacturers expectations– Developed through Sematech with SEMIDeveloped through Sematech with SEMI
– SSQASSQA– Standardized Supplier Quality Assessment is a common checklist Standardized Supplier Quality Assessment is a common checklist
used to assess the level of supplier quality performanceused to assess the level of supplier quality performance– Includes ISO 9001, Baldrige (including HR & EHS), Motorola QSRIncludes ISO 9001, Baldrige (including HR & EHS), Motorola QSR– Intel’s standard roadmap supplier assessment toolIntel’s standard roadmap supplier assessment tool
13
Vision in ActionVision in Action
Intel continues to learn, so it can improve furtherIntel continues to learn, so it can improve further– Comparative Analysis / BenchmarkingComparative Analysis / Benchmarking
– Implementing some of these learning’s into the existing programImplementing some of these learning’s into the existing program
Refining where biggest Risks areRefining where biggest Risks are– Non-major first-tier suppliersNon-major first-tier suppliers
– GeographiesGeographies
Industry/Sector wideIndustry/Sector wide– Working with some sector players to identify areas for mutual Working with some sector players to identify areas for mutual
improvementimprovement
– Future may include an industry collaboration of some sortFuture may include an industry collaboration of some sort
14
ChallengesChallenges
Intel sees one of the biggest challenges as determining the Intel sees one of the biggest challenges as determining the appropriate level of management oversight for contract appropriate level of management oversight for contract manufacturing suppliersmanufacturing suppliers
– Higher Risk potential than first-tier suppliersHigher Risk potential than first-tier suppliers
– Greater engagement can mean greater resources necessaryGreater engagement can mean greater resources necessary
– Balance between partnership and “dictatorship”Balance between partnership and “dictatorship”
Another challenging area is the level of engagement over Another challenging area is the level of engagement over small suppliers (e.g. office supplies)small suppliers (e.g. office supplies)
– Return on resource investmentReturn on resource investment
15
Thank you.Thank you.
Bob LeetBob LeetSupplier HR/EHS Program ManagerSupplier HR/EHS Program Manager5000 W. Chandler Blvd., M/S:CH3-1135000 W. Chandler Blvd., M/S:CH3-113Chandler, AZ 85254 USAChandler, AZ 85254 USA(480) 554-8667(480) 554-8667bob.e.leet@intel.combob.e.leet@intel.com
top related