Supply Chain Synchronisation For Effective Operations Planning (Revised)
- 1. Supply Chain Synchronization for Effective Operation Planning Group 4 Lek Yen Hoon Koh Mei York Zheng Liyue 1
- 2. Introduction of Supply Chain Management CONTENTS Eight Dimensions of Operation Planning Supply Chain Synchronisation 2
- 3. Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain as efficiently as possible. Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of- consumption. 3
- 4. Supply Chain Synchronisation is becoming the most important way to develop higher levels of supply chain competitive advantage. To achieve the highest level of supply chain synchronization benefit, you must address eight different dimensions of the supply chain. 4
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- 6. Educate the people. Explain in simple terms what synchronization is, what it intends to achieve, how it intends to achieve it and what their part is in it. Continue direct communication throughout the project to help develop linkages between employees of participating firms. Facilitate about data and ongoing communication is critical to ensure product, ordering and systems information are correctly updated to support the coordinated scheduling. 6
- 7. Develop the supply chain schedule Have realistic expectations Map the current process Allow for variances Err on the safe side Overlay volume and density information Inform the participants Collecting data is streamlining the process to minimize additional work. Data collection should be a by product of the supply chain process, not activity unto itself. 7
- 8. Order Timing – Map and understand current supply chain flows and timings by developing a new, optimized supply chain synchronization model. Unitization - taking production at the locations and rates it is most efficient to take it, without disruption of the scheme by the legal rights inhering in competing properties This is partially completed by the barcode symbology (or RFID in advanced cases) and the purchase order. These two key data streams can be easily integrated into the supply chain synchronization processes. 8
- 9. Collect information about each exception for monitoring and improvement purposes Exceptions should be manageable to prevent flaws in the information used to build the synchronized system The base level of service required is to determine the required service level or delivery lead time that is acceptable Once this determination is made, transportation mode and optimal load mix density will be selected 9
- 10. Rules and methods for ongoing adjustment and optimization of the process should be defined Integrate the ability to switch to varying size and capacity of containers Careful monitoring of these optimization opportunities will make the appropriate timing for such initiatives readily apparent 10
- 11. Operations Planning is a process where the executives of an organization gather monthly to review previous performance against plans and if necessary create new plans. The input to the process is the forecast and the output of the S&OP is the production plan, the demand plan, as well as the many other plans that are derived from these. The objective of Operations Planning is to arrive at a business "Game Plan" to help manage and allocate critical resources to meet the needs of the customer at the least cost to do so. S&OP works on pre-agreed Key Performance Indicators. It helps the Managers to identify the area for improvements through these KPI and track the plan vs. actual performance. 11
- 12. Improved customer service Reduced inventory Lower manufacturing & distribution costs Better control of overall business performance Increased team work within and across functions 12
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- 15. Supply Chain tends to focus on purchasing and procurement, but not necessarily so. It can include materials, inventory, and production planning. 15
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