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4. Dell uses a pull (lean) system to allow customers to customize computers. Is customization important to router (individual or business) customers, explain? Cisco Lean intends “to convert Cisco and its extended supply chain to a system in which product was built only after a customer has actually ordered it”. Does this pull system conflict with the practice of using overseas contract manufacturers, explain. Although the ASR 9000 could be configured and upgraded according to customer needs, there isn't a whole lot of other features or build options similar to that of Dell that can be achieved here. The inherent design of ASR 9000 comes up selecting the chassis (box). The box would have up to eight slots for "line cards" and cards can be upgraded with more ports. The fully upgraded and loaded router will have capacity of 6.4 terabits per second, so they definitely the customer can select their choices of configuration and capacity. Although not very exhaustive this type of customisation to build router according to the customer capacity needs is important , the beauty the customer can select in a way that he can go for lower capacity but upgrade at later point in time. This is essential in routers product market Yes definitey the Pull system conflicts with the practice of using overseas manufacturers. This is because in order to be effective for Pull system to work the Supply chain lead time should be very minimal so that the firm can immediately react to the new orders. In case of using contract manufacturer overseas the firm will still have to do the traditional forecast of the demand and plan for it as opposed to completely Pull system where the firm will start the product build only after receiving the customer order. But the vision of CISCO is go towards the lean manufacturing 'pull' in order to realize the benefits of reduced inventory across the supply chain and to have more predictability in lead times. 5. Each ASR 9000 chasis is a box that can accommodate up to eight slots inside for line cards or circuit boards. How does Cisco facilitate postponement through these generic chassis? Which inventory benefits from this postponement in the sense that it can be reduced due to aggregation of demand, is it the chassis inventory, line card inventory, circuit board inventory, or any other inventory, explain. As explained in earlier response, the box can accommodate 8 line cards or circuuit boards. Each card will have ports or connections for plugging in cables and the card coud be designed to have more or less ports depending upon the capacity needs. So initial card will have capacity that could handle 80gigabits per second but with more ports it can handle capacity upto 400 gigabits per second. So Cisco faciliates postponement here by delaying the configuration of line cards or circuit boards inside the chasis. The Line card inventory and circuit board inventory being a key work in process inventory for the router after the build of chasis. So CISCO by making the inventory aggregation on Line card and circuit board, it could realize the savings in inventory holding cost for these. The reason is by doing this inventory aggregation it can keep lower safety stock for these.
6. Cisco seems to be very worried about the launch of the Viking router? Is Viking the most complicated product that Cisco has ever launched? If not, why is Cisco so worried, explain. Cisco team knew it faced many challenges. The Viking project would be one of the company’s most complex new product introductions ever. First, even though the project had been essentially re-started in mid-2007, Cisco was still aiming to announce the machine in November 2008. This was just a year to line up manufacturing, supply chain and marketing arrangements—an unusually accelerated schedule. Second, Cisco, which outsourced virtually all its manufacturing, wanted to start making the high-end router immediately in a low- cost location: China. This differed from Cisco’s past practice of outsourcing a complex new product in the United States first and later shifting overseas once production matured. Third, Cisco proposed to use one of its contract manufacturers, Foxconn Technology Group, to build the product in Shenzhen, China, and to give Foxconn a broad role overseeing manufacturing and the supply chain. But Foxconn had never made such a complex product for Cisco. Finally, Viking would test Cisco’s well-honed new product introduction, or NPI, expertise. Also The project would require tremendous global collaboration among far-flung teams within Cisco, and close coordination with Foxconn’s manufacturing site half a world away from Cisco’s San Jose headquarters and labs.

Yes VIKING would be the most complicated product ever made from CISCO . As acknowledgedf rom Sri Hosakote, vice president of engineering,The Cisco’s CRS-1, a massive 92-terabit-per-second core router launched in 2004 which took more than four years, $500 million and 500 engineers to develop was largest development prooject an “engineering marvel,” he remarked. But in contrast, Viking was “a very complex execution marvel,” he said, since it involved many different geographies, close cooperation among numerous teams within Cisco, and an accelerated development schedule. 7) What is Jabil? What is the relationship between Cisco and Jabil? According to the case, what is Jabil’s involvement in Viking router manufacturing? Cisco’s high-end routers in the past had been produced by its three other major contract manufacturers—and Jabil is one of them. Cisco rated and qualified its contract manufacturers using three levels, with Level 1 indicating the simplest products and manufacturing processes, Level 2 indicating a middle ground, and Level 3 indicating the most complex products and processes. Jabil had been qualified at Level 3 for CISCO.

Section 4
Cisco is committing to produce Viking at a single source Foxconn. Moreover, the Viking production mostly takes place within two-hour driving distance of the Hong Kong fulfillment center. “Cisco ran the risk of being overly dependent on a single supplier and whatever financial and operational constraints it had”. What are the potential risk factors in and around Hong Kong? Some risk factors are natural disasters (flood, tornado, earthquake), medical emergencies (bird flu or similar outbreaks that halt trade), accidents (fires), sabo- tage, political unrest. Can you add to this list? Discuss which of these adverse events are more likely.
Suppose that a severe typhoon damages the infrastructure (power lines and bridges) in Hong Kong and Guang Zhou, and makes it useless for three months. What actions can Cisco take to satisfy customer needs for routers? Organize your thoughts/discussion/proposed plan in 2-3 items so that it can be briefly presented to executives in an executive summary.

Cisco, choosing Foxconn was a high-risk, high-reward decision.
The upside would come from validating this partner’s ability to successfully make a complex but extremely cost-sensitive product. But there would be a downside if Foxconn proved unable to handle the Viking router’s technical complexity with the quality, reliability, speed and low costs that Cisco needed .

Also relying on Single sourcing for Viking with Foxconn in Hongkong is definitely a risk that cannot be written down. Just categorizing the type of risk events , we list the below events Natural disaster
Medical emergencies
Government Regulation - Political disruption, Sabotage etc
Talent Pool - leading to technical risk
Global Competitiveness
Cost risk - any increase in labor rate leading to higher cost We will analyze each aspect of this risk below Natural Disaster
Hong Kong’s natural disasters have largely been wildfires, floods and storms, with the city being vulnerable to heavy rain, tropical cyclones and intense heat.However, the impact of such occurrences has been minimised in recent years thanks to protection plans and thorough weather warnings.According to the inaugural Sustainable Cities Index from ARCADIS – which is apparently “the leading global natural and built asset design and consultancy firm” Hong Kong is the city most at risk of Mother Nature’s wrath in Asia, and third in the world[1]. This placed CISCO at risk to some extent here but with advancement in technologies in being prepared for this can allow FOXCONN overcome that as well. Its both parties CISCO and Foxconn that will get impacted here Medical emergencies -
There is no way to measure this every city/coutry at equal risk here.This may not have any adverse effects to CISCOs business Government Regulation
Hong Kong falls under the sovereignty of the People’s Republic China, which is responsible for its foreign affairs and defence. However, Hong Kong enjoys a high degree of autonomy in the other areas of its governance, including economic and trade affairs. [2]The law provides for an independent judiciary, and the government generally respects judicial independence in practice. This considered low or no risk for CISCO to do business in hongkong Talent Pool Hong Kong’s competitiveness faces some medium-term risks. The consensus across the business community is that air pollution and access to international school places threaten the talent pool. [2]This would be a medium term risk leading to technical risk of continuing business in hongkong. Global Competitiveness Hong Kong is a highly competitive global business hub. As an international finance centre, the World Bank has consistently ranked Hong Kong behind only London and New York. The IMD World Competitiveness rankings place Hong Kong as the 2nd best place to do business worldwide, and the Heritage Foundation has ranked Hong Kong as the world’s freest economy for 20 consecutive years. This competitiveness is based on a solid set of attributes: stable institutions; strong regulators; good infrastructure; large talent pool; and judicial independence and rule of law.[2]
So based on this, this risk is low

Cost Risk
Hong Kong continues to be the highest-ranked country for contingent workforce operations, followed closely by the United States and China, according to global HR consulting firm ManpowerGroup.
Manpower’s 2014 Contingent Workforce Index report concluded that while Hong Kong and the United States are both cost-effective markets, Hong Kong has the added benefit of higher productivity, defined as the amount of hours an employer can pay a worker at base pay.
According to the report, Hong Kong is attributed with a favorable regulatory environment, low cost of manufacturing labor and relatively high productivity due to no overtime, eight-hour workdays and six-day workweeks.[3]
So for CISCO , with Foxconn operating at Hongkong would continue to be low cost manufacturing facility and cost risk is low here [1] http://hongkong.coconuts.co/2015/05/26/study-hong-kong-city-most-risk-natural-disaster-asia [2] https://www.gov.uk/government/publications/overseas-business-risk-hong-kong/overseas-business-risk-hong-kong [3] https://www.shrm.org/hrdisciplines/global/articles/pages/hong-kong-engaging-contingent-labor.aspx#sthash.jw8YhpDV.dpuf

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