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Re-architecting the failure analysis supply chain

With customer satisfaction and lifecycle product quality becoming a competitive advantage, technology companies are motivated to look beyond their historical focus on forward supply chain management. Operational excellence in customer returns management, failure analysis, and closed loop corrective action is taking on an increasingly important role as companies strive to improve their business processes, policies and supply chains to achieve a world-class leadership position in their industry. In the competitive high-tech industry, companies face a number of challenges in managing customer returns and re-architecting their failure analysis supply chains to support a closed loop corrective action approach to product quality. Supporting globally distributed customers through a diverse network of outsourced manufacturing, repair, failure analysis and logistics partners increases the complexity of the supply chain architecting problem. This thesis proposes a holistic enterprise architecting approach, including governance, process, network design, organization, enabling technology, and performance management elements that should be considered when re-architecting the failure analysis supply chain. During this process, strategic decisions need to be made regarding supply chain designs that are aligned with the vision of the enterprise. Operations managers and leaders can use data-driven, collaborative approaches supported by decision support tools like the “Decision Model for Failure Analysis Supply Chain” to align decisions with customer value and stakeholders’ needs. Implementing changes based on these strategic decisions requires understanding organizational dynamics within the enterprise. An understanding of the “frame of reference” that guides decision makers can help address implementation challenges. In addition, communication, training and alignment of incentives across functional groups to encourage collaboration can allow enterprises to make strategic decisions that are successfully implemented. The strategies proposed in this thesis are intended to aid managers in making monumental changes to their “reverse” operations and exceeding customer expectations. Thesis Supervisor: Deborah J. Nightingale Title: Professor of the Practice, Dept. of Aeronautics and Astronautics and Engineering Systems Division Thesis Supervisor: Sara Beckman Title: Senior Lecturer, Haas School of Business, University of California, Berkeley Thesis Reader: Donald Rosenfield Title: Senior Lecturer, MIT Sloan School of Management & Director, Leaders for Manufacturing Program