Lecture 1.pptx
- 1. LECTURE 1 SUPPLY CHAIN MANAGEMENT AND THE MODELS NURUL AFSAR CHOWDHURY LECTURER, ZUMS COURSE NAME: SUPPLY CHAIN ANALYSIS (SCM-630)
- 2. ABOUT MYSELF BSC IN MATERIALS & METALLURGICAL ENGINEERING FROM BUET MSE IN MATERIALS SCIENCE & ENGINEERING FROM UNIVERSITY OF TORONTO MASTER OF BUSINESS ADMINISTRATION FROM IBA, DHAKA UNIVERSITY CERTIFIED SUPPLY CHAIN MANAGER (CSCM) FROM ISCEA, USA CHARTERED MEMBER OF CHARTERED INSTITUTE OF LOGISTICS & TRANSPORT MEMBER OF BANGLADESH SUPPLY CHAIN MANAGEMENT SOCIETY FORMER SUPPLY CHAIN DEPUTY HEAD OF WALTON CURRENT DEMAND PLANNING MANAGER OF SINGER BANGLADESH LIMITED
- 3. SCM-630 : SUPPLY CHAIN ANALYSIS
- 7. WEEKLY BREAKDOWN WEEK 1, SUPPLY CHAIN MANAGEMENT AND THE MODELS. WEEK 2, UNDERSTANDING GLOBAL SUPPLY CHAIN NETWORKS WEEK 3, SUPPLY CHAIN ANALYSIS BASICS WEEK 4, ANALYSIS FOR SOURCING PRODUCTS AND SERVICES WEEK 5, ANALYSIS ON INTERNAL OPERATIONS AND INVENTORY WEEK 6, ANALYSIS ON FORWARD AND REVERSE LOGISTICS WEEK 7, SUPPLY CHAIN RELATIONSHIP ANALYSIS WEEK 8, DEMAND ANALYSIS & DEMAND MANAGEMENT ROADMAP WEEK 9, FORECASTING TECHNIQUES WEEK 10, IMPLEMENTATION FOR SUPPLY CHAIN ANALYTICS IN REAL FIELDS WEEK 11, FIELD VISIT TO UNDERSTAND DIRECT APPLICATIONS OF SUPPLY CHAIN ANALYSIS WEEK 12, UNDERSTANDING RISK, OPTIMIZATION, SUSTAINABILITY AND TECHNOLOGY WEEK 13, YOU WILL LEARN SUPPLY CHAIN ANALYSIS JOB OPPORTUNITIES AND JOB INTELLIGENCE. WEEK 14, GENERAL DISCUSSIONS ON LEARNING EXPERIENCE, INCLUDING QUESTIONS FOR CLARITY. WEEK 15, FINAL EXAMINATION.
- 8. A PICTURE IS BETTER THAN 1000 WORDS! HOW MANY WORDS WOULD BE BETTER THAN 3 PICTURES? - A SUPPLY CHAIN CONSISTS OF - aims to Match Supply and Demand, profitably for products and services SUPPLY SIDE DEMAND SIDE The right Product Higher Profits The right Time The right Customer The right Quantity The right Store The right Price = + + + + + - achieves Supplier Manufacturer Distributor Retailer Customer Upstream Downstream
- 9. WHAT IS SUPPLY CHAIN MANAGEMENT “SUPPLY CHAIN IS A GLOBAL NETWORK USED TO DELIVER PRODUCTS AND SERVICES FROM RAW MATERIALS TO END CUSTOMERS THROUGH AN ENGINEERED FLOW OF INFORMATION, PHYSICAL DISTRIBUTION, AND CASH” (APICS DICTIONARY, 16TH EDITION) SUPPLY CHAIN MANAGEMENT IS THE DESIGN, PLANNING, EXECUTION, CONTROL, AND MONITORING OF SUPPLY CHAIN ACTIVITIES WITH THE OBJECTIVE OF CREATING NET VALUE, BUILDING A COMPETITIVE INFRASTRUCTURE, LEVERAGING WORLDWIDE LOGISTICS,SYNCHRONIZING SUPPLY WITH DEMAND, AND MEASURING PERFORMANCE GLOBALLY
- 10. THREE ENTITIES OF SUPPLY CHAIN • A SUPPLIER • A PRODUCER • A CUSTOMER FOUR BASIC FLOWS OF SUPPLY CHAIN • THE FLOW OF INFORMATION • THE PRIMARY PRODUCT FLOW • PRIMARY CASH FLOW • REVERSE FLOW OF PRODUCTS RETURNED
- 11. CASH TO CASH CYCLE TIME IT IS A KEY METRIC FOR MEASURING THE EFFICIENCY OF THE FLOW OF FUNDS. IT BASICALLY MEASURES HOW LONG IT TAKES FOR AN INVESTMENT OF CASH INTO OPERATIONS TO BE RETURNED IN THE FORM OF CASH RECEIPTS FROM SALES TO CUSTOMERS. STAKEHOLDERS PEOPLE WITH A VESTED INTEREST IN A COMPANY, INCLUDING MANAGERS, EMPLOYEES, STOCK-HOLDERS, CUSTOMERS, SUPPLIERS, AND OTHERS
- 12. SUPPLY CHAIN FLOWS supplier customer Information Flow Material Flow There must be a good inter-organizational information provide the required information flow.
- 13. VERTICAL VS LATERAL INTEGRATION VERTICAL: HENRY FORD OWNED IRON ORE MINES, STEEL MILLS, AND A FLEET OF SHEEPS AS WELL AS MANUFACTURING PLANTS AND SHOWROOMS. LATERAL: CORPORATE AROUND THE GLOBE TURNS TO OUTSOURCING THOSE ASPECTS OF THEIR BUSINESS IN WHICH THEY JUDGE THEMSELVES TO BE LEAST EFFECTIVE. GENERAL MOTORS DIVESTED ITS COMPONENT SUPPLIER AS A SEPARATE ORGANIZATION, DELPHI CORPORATION.
- 14. PUSH VS PULL SYSTEM • WHAT INSTIGATES THE MOVEMENT OF THE WORK IN THE SYSTEM? • IN PUSH SYSTEMS, WORK RELEASE IS BASED ON DOWNSTREAM DEMAND FORECASTS • KEEPS INVENTORY TO MEET ACTUAL DEMAND • ACTS PROACTIVELY • E.G. MAKING GENERIC JOB APPLICATION RESUMES TODAY (E.G.: EXEMPLI GRATIA) • IN PULL SYSTEMS, WORK RELEASE IS BASED ON ACTUAL DEMAND OR THE ACTUAL STATUS OF THE DOWNSTREAM CUSTOMERS • MAY CAUSE LONG DELIVERY LEAD TIMES • ACTS REACTIVELY • E.G. MAKING A SPECIFIC RESUME FOR A COMPANY AFTER TALKING TO THE RECRUITER
- 15. PUSH/PULL VIEW OF SUPPLY CHAINS Procurement, Manufacturing and Replenishment cycles Customer Order Cycle Customer Order Arrives Push Pull Boundary PUSH PROCESSES PULL PROCESSES
- 16. 5 S IN SUPPLY CHAIN MANAGEMENT
- 18. WINGS OF SUPPLY CHAIN MANAGEMENT • PLANNING & SOURCING • PURCHASING/PROCUREMENT • SHIPPING & LOGISTICS (ALL TYPES OF TRANSPORTATION) • CLEARING & FORWARDING • INVENTORY MANAGEMENT
- 19. THE SIX MODELS OF SUPPLY CHAIN MANAGEMENT • CONTINUOUS FLOW • FAST CHAIN • EFFICIENT CHAIN • AGILE • CUSTOM-CONFIGURED • FLEXIBLE THESE ARE ALL BASED ON EFFICIENCY AND RESPONSIVENESS!!!
- 20. THE CONTINUOUS FLOW MODEL • THE CONTINUOUS FLOW MODEL IS BUILT AROUND EFFICIENCY. IT OFFERS STABILITY IN HIGH-VOLUME ENVIRONMENTS. THIS CLASSIC MODEL IS BEST SUITED FOR MANUFACTURERS WHO PRODUCE THE SAME PRODUCT REPEATEDLY, WITH LITTLE DESIGN FLUCTUATION OR ALTERATION. • THIS MODEL IS IDEAL FOR COMMODITY MANUFACTURING. ITS HIGH LEVEL OF EFFICIENCY IS REFLECTED IN LOW PRODUCT PRICES. FOR MANUFACTURERS, MARGINS ARE BASED ON RAW MATERIAL PRICES. THAT SOUNDS LIKE SCIENCE TO ME.
- 21. THE FAST CHAIN MODEL • THE FAST CHAIN MODEL IS BUILT FOR RESPONSIVENESS. IT’S IDEAL FOR MANUFACTURERS WHO CHANGE THEIR PRODUCT LINE FREQUENTLY. THIS MODEL IS THE BEST SUITED FOR TRENDY PRODUCTS WITH SHORT LIFE SPANS. IN THIS EXAMPLE, THE MANUFACTURER THAT CAN FLOOD THE MARKET BEFORE THE TREND CYCLE ENDS IS THE MANUFACTURER THAT WINS. • THIS MODEL EMPHASIZES THE COMPETITIVE ADVANTAGE OF THE FIRST ADOPTER. BUT THE TRUE DRIVER OF THE FAST CHAIN IS THE DESIGNER—AND THE MARKETING DEPARTMENT. PUT ANOTHER WAY, IF YOU CAN CREATE YOUR OWN TREND, YOU’LL BE THE FIRST TO MARKET. IN SHORT, THIS MODEL IS DRIVEN BY ART.
- 22. THE EFFICIENT CHAIN MODEL THE EFFICIENT CHAIN MODEL IS FOR HYPERCOMPETITIVE INDUSTRIES WHERE END- TO-END EFFICIENCY IS THE ULTIMATE GOAL. THIS MODEL RELIES HEAVILY ON PRODUCTION FORECASTING IN ORDER TO PROPERLY BURDEN AND SWEAT MACHINERY ASSETS. THE EFFICIENT MODEL ALSO RELIES HEAVILY ON COMMODITY AND RAW MATERIAL PRICES. IN THE POST-PANDEMIC WORLD, EFFICIENT CHAINS ARE STRUGGLING WITH CAPACITY ISSUES. DRIVERS FOR THIS ARE LABOR SHORTAGES, MATERIAL SHORTAGES, AND DELAYS. THE BOTTOM LINE IS THIS. WHEN YOU MISS A FORECAST, IT CAN CREATE A RIPPLE EFFECT. THIS CAN RESULT IN LENGTHY LEAD TIMES AND INFLATED PRICES FOR MANUFACTURERS UP AND DOWN THE SUPPLY CHAIN. AND THAT’S WHEN YOU HEAR A LOT OF ARTFUL LANGUAGE.
- 23. THE AGILE MODEL THE AGILE MODEL IS IDEAL FOR MANUFACTURERS THAT DEAL IN SPECIALTY ITEMS. THIS MODEL IS FINELY TUNED FOR SMALL BATCHES OF PRODUCT. THAT REQUIRES LESS AUTOMATION AND MORE EXPERTISE. AND THAT ADDITIONAL VALUE-ADD IN TURN ALLOWS BUSINESSES USING THIS MODEL TO COMMAND HIGHER PRICES. AGILE-MODEL BUSINESSES CAN RAMP UP VOLUME. BUT PAST A CERTAIN VOLUME THRESHOLD, THEY TYPICALLY PROVE UNCOMPETITIVE. COMPARED WITH EFFICIENT-CHAIN-MODEL BUSINESSES, AT HIGHER VOLUMES AGILE BUSINESSES GET BLOWN OUT OF THE WATER FROM A PRICING STANDPOINT.
- 24. THE CUSTOM-CONFIGURED MODEL THE CUSTOM-CONFIGURATION MODEL FOCUSES ON PROVIDING CUSTOM SETUPS DURING PRODUCTION AND ASSEMBLY. MOST OFTEN, THIS SETUP TIME OCCURS AT THE BEGINNING OF A LENGTHIER PRODUCTION AND ASSEMBLY RUN PROCESS. FOR EXAMPLE, CERTAIN PROTOTYPE OR LIMITED-PRODUCTION BUILDS FALL INTO CUSTOM-CONFIGURED MANUFACTURING. THIS IS A HIGHER-TOUCH MODEL THAT CAN INCLUDE QUICKER TURNAROUND TIMES AND SMALL BATCHES OF PRODUCTS. IN ESSENCE, THE CUSTOM- CONFIGURATION MODEL IS COMBINATION OF THE AGILE AND CONTINUOUS FLOW MODELS.
- 25. THE FLEXIBLE MODEL • THE FLEXIBLE MODEL TRIES TO BE THE BEST OF ALL WORLDS. IT CAN REACT TO HIGH VOLUME DEMANDS DURING A PEAK SEASON. ON THE OTHER HAND, FLEXIBLE MODEL BUSINESSES CAN MANAGE AND ABSORB STRETCHES OF LOW OR NO DEMAND. THIS MODEL IS LIKE A LIGHT SWITCH. FLIP IT ON OR OFF AS NEEDED. • TO PULL OFF THE FLEXIBLE SUPPLY CHAIN MODEL, A BUSINESS REQUIRES THE RIGHT TOOL (OR AUTOMATED MACHINERY) FOR THE JOB. THIS MODEL ALSO REQUIRES A BROAD SUPPLIER NETWORK OR PERSONNEL WHO HAVE A BROAD KNOWLEDGE BASE.
- 26. LET US ALL BELIEVE IN SMART GOALS
Editor's Notes
- #16: In this view processes are divided based on their timing relative to the timing of a customer order. Define push and pull processes. They key difference is the uncertainty during the two phases. Give examples at Amazon and Borders to illustrate the two views