The team achieved profit in each period of the business simulation game, with growth in the first 4 rounds and a slight decrease in the last 2 rounds. The overall strategy was to make integrated decisions across all departments to minimize costs and maximize benefits, while evaluating the effects of decisions. Some difficulties included fully predicting decision impacts and aligning strategic goals across departments. The team was able to increase gross margins, negotiate better service levels and supplier contracts, optimize production and inventory, and decrease raw material costs over the 6 rounds.
The document provides a stakeholder analysis for a business game called The Fresh Connection. It analyzes the internal and external impacts of decisions made by roles in sales, supply chain management, operations, and purchasing. For each role, key decisions are outlined along with how they affect other internal departments and external stakeholders such as suppliers and customers. The goal is to understand how the decisions of each role can impact performance. The document also includes examples of analyses from rounds of the game.
A Comprehensive Supply Chain Simulation Game Played in 4 rounds. Every rounds present new variables and correspondence decisions from our team. This was a course project for DSO557b for MSGSCM cohort of USC Marshall.
This document provides tips for collaborating effectively and understanding game logic in Fresh Connection. It recommends that teams 1) read about their roles and explain them to each other to collaborate well. Teams should make decisions together, considering the perspectives of different roles. It also advises 2) understanding that the game has programmed logic and limits, requiring a strategic approach. Teams must know how each role's decisions impact one another. Finally, it suggests 3) reading the finance page to understand ROI, as changing one parameter may not directly impact ROI but have various effects through related factors like supplier quality and inventory levels.
The Fresh Connection - Simulation based Supply Chain Learning PlatformFrinson Francis
The Fresh Connection is a Web based Business Simulation in the area of Supply Chain Management and Organisation Wide Collaboration used for Experiential Learning. Learn Supply Chain Management, Supply Chain Performance and Analysis, Sales and Operations Planning, Inventory Management, Supply Chain Strategy, Demand Planning, Collaboration, Risk Management in Supply Chains with in-house workshops at your company
The Fresh Connection Business Game - Learningsstephanietfelt
We tested The Fresh Connection Business Game with professionals active in the industry sector. They provided us with valuable insights on the strenghts of the business game and on the main points of attention.
Challenges
Inaccurate forecasts of retailer demand has become a major issue at Obermeyer. The two major factors that made this task more difficult was the increase in product variety and intense competition in market. Second challenge the company had faced was to allocate production between Hong Kong and China. Although Obermeyer had 1/3 of Parka production in China for 1992, this year the organization insisted on increasing the sales to half. There was difference in quality and labor rate at China and Hong Kong which made allocation decision more difficult.
Another challenge the company faced was the larger lead time. The company had supplies of raw materials from various countries which resulted in delayed production time. Organization challenges along with competition from competitor companies were major challenges the company had faced.
Analysis
From the sales predictions that the six managers forecasted, a coefficient of variation (COV) was determined, which indicated the level of spread of the forecasted data. The COV values were broadly divided into two levels, the low risk group and the high risk group. Every value below 0.2 were considered to be among the lower risk items and all the items above COV value of 0.2 were considered to be of higher risks. Once the risk levels of each item were determined, the quantities of items to be produced in first and second production cycles could be calculated with least risk. 70% of the entire sales forecast for the lower risk items were ordered to be produced. Only 30% of higher risk items were ordered to be produced in the first production cycle. The quantities which amounted to 1200 were manufactured in China and that which were close to 600, were manufactured in Hong Kong in the first production cycle.
Once the 80% of the orders were received from the retailers from the Vegas show, a clear picture of the demand forecast could be obtained, according to which the rest of the items could be manufactured either in China or Hong Kong. Referring to exhibit 1, the four products to be produced in China in the first production cycle are: Assault, Seduced, Entice and Electra. These four products have COV less than 0.2. However Gail, Daphne, ISIS, Anita, Teri, Stephanie are produced in Hong Kong for the first production cycle as they have a high level of risk associated with it.
Conclusion
Short term operational changes
o Decrease lead time by obtaining raw materials from geographically closer locations to ensure timely delivery
Long term operational changes
o Cross scaling Chinese labors which would help the company produce quality and reliable goods at a cheaper price
Barilla Spa: A case on Supply Chain IntegrationHimadri Singha
Barilla is the world's largest pasta producer. It faced issues like extreme demand fluctuations, high inventory costs, and low service levels. It implemented a Just-in-Time Distribution system where it took over inventory management from distributors. Pilots showed lower inventory, higher service levels. Implementation with other distributors included daily electronic data sharing. The system reduced costs and improved supply chain visibility for both Barilla and distributors.
The case study optimizes the HP DeskJet printer supply chain by redesigning the network using component commonality and risk pooling. The redesign leads to considerable savings to the business.
The document provides a stakeholder analysis for a business game called The Fresh Connection. It analyzes the internal and external impacts of decisions made by roles in sales, supply chain management, operations, and purchasing. For each role, key decisions are outlined along with how they affect other internal departments and external stakeholders such as suppliers and customers. The goal is to understand how the decisions of each role can impact performance. The document also includes examples of analyses from rounds of the game.
A Comprehensive Supply Chain Simulation Game Played in 4 rounds. Every rounds present new variables and correspondence decisions from our team. This was a course project for DSO557b for MSGSCM cohort of USC Marshall.
This document provides tips for collaborating effectively and understanding game logic in Fresh Connection. It recommends that teams 1) read about their roles and explain them to each other to collaborate well. Teams should make decisions together, considering the perspectives of different roles. It also advises 2) understanding that the game has programmed logic and limits, requiring a strategic approach. Teams must know how each role's decisions impact one another. Finally, it suggests 3) reading the finance page to understand ROI, as changing one parameter may not directly impact ROI but have various effects through related factors like supplier quality and inventory levels.
The Fresh Connection - Simulation based Supply Chain Learning PlatformFrinson Francis
The Fresh Connection is a Web based Business Simulation in the area of Supply Chain Management and Organisation Wide Collaboration used for Experiential Learning. Learn Supply Chain Management, Supply Chain Performance and Analysis, Sales and Operations Planning, Inventory Management, Supply Chain Strategy, Demand Planning, Collaboration, Risk Management in Supply Chains with in-house workshops at your company
The Fresh Connection Business Game - Learningsstephanietfelt
We tested The Fresh Connection Business Game with professionals active in the industry sector. They provided us with valuable insights on the strenghts of the business game and on the main points of attention.
Challenges
Inaccurate forecasts of retailer demand has become a major issue at Obermeyer. The two major factors that made this task more difficult was the increase in product variety and intense competition in market. Second challenge the company had faced was to allocate production between Hong Kong and China. Although Obermeyer had 1/3 of Parka production in China for 1992, this year the organization insisted on increasing the sales to half. There was difference in quality and labor rate at China and Hong Kong which made allocation decision more difficult.
Another challenge the company faced was the larger lead time. The company had supplies of raw materials from various countries which resulted in delayed production time. Organization challenges along with competition from competitor companies were major challenges the company had faced.
Analysis
From the sales predictions that the six managers forecasted, a coefficient of variation (COV) was determined, which indicated the level of spread of the forecasted data. The COV values were broadly divided into two levels, the low risk group and the high risk group. Every value below 0.2 were considered to be among the lower risk items and all the items above COV value of 0.2 were considered to be of higher risks. Once the risk levels of each item were determined, the quantities of items to be produced in first and second production cycles could be calculated with least risk. 70% of the entire sales forecast for the lower risk items were ordered to be produced. Only 30% of higher risk items were ordered to be produced in the first production cycle. The quantities which amounted to 1200 were manufactured in China and that which were close to 600, were manufactured in Hong Kong in the first production cycle.
Once the 80% of the orders were received from the retailers from the Vegas show, a clear picture of the demand forecast could be obtained, according to which the rest of the items could be manufactured either in China or Hong Kong. Referring to exhibit 1, the four products to be produced in China in the first production cycle are: Assault, Seduced, Entice and Electra. These four products have COV less than 0.2. However Gail, Daphne, ISIS, Anita, Teri, Stephanie are produced in Hong Kong for the first production cycle as they have a high level of risk associated with it.
Conclusion
Short term operational changes
o Decrease lead time by obtaining raw materials from geographically closer locations to ensure timely delivery
Long term operational changes
o Cross scaling Chinese labors which would help the company produce quality and reliable goods at a cheaper price
Barilla Spa: A case on Supply Chain IntegrationHimadri Singha
Barilla is the world's largest pasta producer. It faced issues like extreme demand fluctuations, high inventory costs, and low service levels. It implemented a Just-in-Time Distribution system where it took over inventory management from distributors. Pilots showed lower inventory, higher service levels. Implementation with other distributors included daily electronic data sharing. The system reduced costs and improved supply chain visibility for both Barilla and distributors.
The case study optimizes the HP DeskJet printer supply chain by redesigning the network using component commonality and risk pooling. The redesign leads to considerable savings to the business.
American Connector Company (ACC) faces competitive threats from Denso Japan Connector's (DJC) manufacturing strategies of standardized, continuous flow production and lower costs. DJC utilizes older, paid-off technology and achieves 100% capacity through 24/7 production, while ACC uses flexible batch processing at only 50-85% capacity. If DJC opens a US plant, it could attract ACC customers with even lower costs from standardized products and more efficient delivery. To compete, ACC must improve technology, productivity, utilization and standardization while reducing inventory, depreciation and other costs.
Global supply chain case study team8_submit v2Meghan Histand
The team selected design options and suppliers that balanced low production costs with flexibility. They split production between overseas and domestic suppliers. For forecasting, they averaged all forecasts rather than following the consensus. They set initial production slightly above forecasts and issued change orders when costs outweighed $2M adjustment fees. Investing in market research helped inform change orders. Overall, balancing costs and flexibility along with responsiveness to new data worked well.
Signode Industries faces several problems including increased raw material prices and declining market share. It must decide whether to increase prices to offset costs, maintain prices, or implement a flex-pricing strategy. Maintaining prices would lead to losses while increasing prices could further reduce its market share against competitors offering discounts. A flex-pricing strategy allows selective discounting to meet competitors' prices while retaining large accounts. The recommended plan is to implement flex-pricing initially while monitoring discount levels and shifting focus to the value of Signode's services as steel strapping becomes a commodity.
Goodyear: The Aquatred Launch : Harvard Case AnalysisSameer Mathur
- Five tire companies once dominated the US tire market but faced decline due to foreign competition and rising costs. Radial tires with increased mileage replaced bias tires in the 1970s and 1980s.
- The document discusses the US tire market in the 1990s, noting increased average mileage per tire, lower prices due to overcapacity, and consumers' lack of brand loyalty. It profiles Goodyear as the only remaining US company and discusses its new Aquatred tire.
- Goodyear launched the Aquatred, positioned as an innovative radial tire with best-in-class wet traction and a 60,000 mile warranty. It was priced competitively at $89.95-$93.95 and marketed toward safety
Buckmeister's proposal of using on-site customer feedback cards is recommended. Feedback cards can provide real-time customer preferences cost-effectively. Descriptive research techniques will be used, including quantitative observation methods like an NPS survey. Primary data sources are interviews, surveys, and social media monitoring. The expected outcomes are insights into customer preferences, purchasing decisions, and behaviors to identify areas for menu, marketing, and promotional improvements.
Manzana Insurance's Fruitvale branch is experiencing declining profits due to high turnaround times, uneven workload distribution, rising late renewals, increased renewal losses, inconsistent departmental priorities, and outdated completion time standards. This has allowed competitor Golden Gate to capture more market share by announcing a one-day turnaround time. Recommendations include revising how turnaround time is calculated using mean times rather than outdated standards, balancing workloads, prioritizing renewals, standardizing departmental processes, and potentially automating parts of the underwriting process.
Klaus Obermeyer founded Obermeyer in 1947 in Aspen, Colorado. In 1985, Obermeyer formed a joint venture called Obersport in Hong Kong to increase production capacity. Obermeyer's supply chain stretches from Asia to Aspen, with textile and accessory suppliers in Asia manufacturing garments that are then shipped through Obersport and Sport Obermeyer to retailers in the US. Obermeyer faces challenges in uncertain demand forecasting for its seasonal ski fashion products and long lead times in its Asian manufacturing process.
The Blue team purchased additional machines to eliminate bottlenecks and increase production capacity. They took on debt to quickly process a backlog of over 100 jobs. The team determined re-order quantities based on cash on hand, historical demand, and minimizing inventory levels while maintaining high probability of meeting demand. Re-order points were set using statistical analysis of demand and a goal of 99% probability of meeting an arrival rate of 18 jobs per day. The end strategy focused on being risk averse while maximizing profit by experimenting with lower inventory levels that reduced shipment costs and inventory holding losses.
Toko Bunga Surabaya, Jual Karangan Bunga Surabaya, Jual Bunga Papan Surabaya, Jual Bunga Ucapan Surabaya, Jual Rangkaian Bunga Surabaya, Jual Buket Bunga Surabaya, Bunga Ucapan Selamat, Bunga Ucapan Duka Cita, Bunga Papan Selamat, Bunga Papan Duka Cita
1. The express mail industry evolved in the 1970s with the creation of overnight delivery by Federal Express. Companies like UPS and Airborne Express soon followed suit. A key development was Federal Express's creation of the hub-and-spoke system, which allowed for nationwide overnight delivery.
2. Airborne Express positioned itself as the low-cost provider in the industry, targeting large business customers. It aimed to offer the lowest prices compared to FedEx and UPS. Airborne also reduced costs by owning its own airports.
3. However, Airborne's competitive advantages of low prices and proprietary technology were not sustainable long-term as competitors matched its offerings. It struggled with low profit margins, and was eventually
- Apex Corporation is facing problems with its organizational structure including informality, lack of structure and financial planning, and increasing customer complaints.
- The document evaluates changing to a circular, functional, or divisional structure.
- It recommends a divisional structure to improve accountability, budgeting, planning and focus on financial targets while balancing control from upper management and freedom from lower management.
The document discusses how the e*Logistics program became institutionalized within the company. It describes how the program was developed with both business and IT experts to ensure it followed product/service flows and data flows. The program uses reminders and forces users to utilize it in order to make processes independent of individual users. It also interfaces with various ERP systems through a middleware broker to allow for staged and easier deployment while reducing change resistance. Ultimately, the e*Logistics program provided visibility and coordination across the entire business from sales to order fulfillment to finance.
McKinsey & Company: Managing Knowledge and LearningDisha Ghoshal
As part of Strategy execution, this presentation on was on how McKinsey & Company flourished throughout the years by Managing Knowledge and Learning diligently.
- Edgar Newell started Newell Company in 1902 through the acquisition of a curtain rod manufacturer.
- Dan Ferguson crafted a growth strategy of acquiring companies to expand Newell's product line.
- In the late 1990s, Newell faced challenges from increased customer buying power and consolidation in the retail industry.
- Newell acquired Calphalon and Rubbermaid but integrating the large Rubbermaid presented challenges due to its size, reputation, and operations that could impact Newell's strategy.
Sport Obermeyer is a high-end skiwear company that produces around 800 stock keeping units each year through a global supply chain. It works with a joint venture partner Obersport in Hong Kong and China to source materials and manufacture products. Sport Obermeyer is looking for ways to improve its forecasting accuracy and production flexibility to better meet demand. Some options it is considering include adjusting production allocation between Hong Kong and China factories and revising minimum order quantities.
ForldRite Furniture Co is planning strategies to meet a surge in demand for its folding chairs, tables, and other furniture. One strategy is to hire and train new workers to exactly meet production requirements each month. This would allow the company to sustain production levels if demand continues increasing. However, it risks demoralizing workers with future layoffs of extra labor. It also increases costs for hiring, unemployment insurance if workers are later laid off, and the time needed for training. Maintaining a stable workforce may better fit the company's goals.
Cisco implemented Oracle's ERP software to address deteriorating legacy systems. A 100-person team selected Oracle over other vendors. The implementation used rapid prototyping through "conference room pilots" to configure the software for Cisco's needs. While go-live faced hardware and capacity issues, strong vendor support stabilized the system within 3 months, concluding a successful ERP implementation.
The document summarizes the operations of the Mumbai Dabbawalas, who deliver home-cooked lunches to office workers in Mumbai. It outlines their highly efficient system for sorting and delivering over 200,000 lunch boxes per day across Mumbai within 3 hours, with an extremely low error rate of 1 in 16 million transactions, equivalent to Six Sigma quality levels. The Dabbawalas have no formal education or technology, yet achieve world-class reliability through their simple coding system and cultural values like trust and ownership.
1) Six Sigma is a data-driven approach to process improvement that aims to reduce defects to 3.4 parts per million. It involves defining customer needs, measuring processes, analyzing data for improvement opportunities, and controlling processes.
2) Quality is defined as meeting or exceeding customer requirements. Total quality cost includes prevention, appraisal, internal failure, and external failure costs. Understanding customer needs through methods like the KANO model is important for defining critical quality characteristics.
3) Measurement and statistics are essential for understanding process capability. Descriptive statistics summarize data while inferential statistics allow estimating population parameters from samples. Tools like histograms, box plots, and statistical parameters
American Connector Company (ACC) faces competitive threats from Denso Japan Connector's (DJC) manufacturing strategies of standardized, continuous flow production and lower costs. DJC utilizes older, paid-off technology and achieves 100% capacity through 24/7 production, while ACC uses flexible batch processing at only 50-85% capacity. If DJC opens a US plant, it could attract ACC customers with even lower costs from standardized products and more efficient delivery. To compete, ACC must improve technology, productivity, utilization and standardization while reducing inventory, depreciation and other costs.
Global supply chain case study team8_submit v2Meghan Histand
The team selected design options and suppliers that balanced low production costs with flexibility. They split production between overseas and domestic suppliers. For forecasting, they averaged all forecasts rather than following the consensus. They set initial production slightly above forecasts and issued change orders when costs outweighed $2M adjustment fees. Investing in market research helped inform change orders. Overall, balancing costs and flexibility along with responsiveness to new data worked well.
Signode Industries faces several problems including increased raw material prices and declining market share. It must decide whether to increase prices to offset costs, maintain prices, or implement a flex-pricing strategy. Maintaining prices would lead to losses while increasing prices could further reduce its market share against competitors offering discounts. A flex-pricing strategy allows selective discounting to meet competitors' prices while retaining large accounts. The recommended plan is to implement flex-pricing initially while monitoring discount levels and shifting focus to the value of Signode's services as steel strapping becomes a commodity.
Goodyear: The Aquatred Launch : Harvard Case AnalysisSameer Mathur
- Five tire companies once dominated the US tire market but faced decline due to foreign competition and rising costs. Radial tires with increased mileage replaced bias tires in the 1970s and 1980s.
- The document discusses the US tire market in the 1990s, noting increased average mileage per tire, lower prices due to overcapacity, and consumers' lack of brand loyalty. It profiles Goodyear as the only remaining US company and discusses its new Aquatred tire.
- Goodyear launched the Aquatred, positioned as an innovative radial tire with best-in-class wet traction and a 60,000 mile warranty. It was priced competitively at $89.95-$93.95 and marketed toward safety
Buckmeister's proposal of using on-site customer feedback cards is recommended. Feedback cards can provide real-time customer preferences cost-effectively. Descriptive research techniques will be used, including quantitative observation methods like an NPS survey. Primary data sources are interviews, surveys, and social media monitoring. The expected outcomes are insights into customer preferences, purchasing decisions, and behaviors to identify areas for menu, marketing, and promotional improvements.
Manzana Insurance's Fruitvale branch is experiencing declining profits due to high turnaround times, uneven workload distribution, rising late renewals, increased renewal losses, inconsistent departmental priorities, and outdated completion time standards. This has allowed competitor Golden Gate to capture more market share by announcing a one-day turnaround time. Recommendations include revising how turnaround time is calculated using mean times rather than outdated standards, balancing workloads, prioritizing renewals, standardizing departmental processes, and potentially automating parts of the underwriting process.
Klaus Obermeyer founded Obermeyer in 1947 in Aspen, Colorado. In 1985, Obermeyer formed a joint venture called Obersport in Hong Kong to increase production capacity. Obermeyer's supply chain stretches from Asia to Aspen, with textile and accessory suppliers in Asia manufacturing garments that are then shipped through Obersport and Sport Obermeyer to retailers in the US. Obermeyer faces challenges in uncertain demand forecasting for its seasonal ski fashion products and long lead times in its Asian manufacturing process.
The Blue team purchased additional machines to eliminate bottlenecks and increase production capacity. They took on debt to quickly process a backlog of over 100 jobs. The team determined re-order quantities based on cash on hand, historical demand, and minimizing inventory levels while maintaining high probability of meeting demand. Re-order points were set using statistical analysis of demand and a goal of 99% probability of meeting an arrival rate of 18 jobs per day. The end strategy focused on being risk averse while maximizing profit by experimenting with lower inventory levels that reduced shipment costs and inventory holding losses.
Toko Bunga Surabaya, Jual Karangan Bunga Surabaya, Jual Bunga Papan Surabaya, Jual Bunga Ucapan Surabaya, Jual Rangkaian Bunga Surabaya, Jual Buket Bunga Surabaya, Bunga Ucapan Selamat, Bunga Ucapan Duka Cita, Bunga Papan Selamat, Bunga Papan Duka Cita
1. The express mail industry evolved in the 1970s with the creation of overnight delivery by Federal Express. Companies like UPS and Airborne Express soon followed suit. A key development was Federal Express's creation of the hub-and-spoke system, which allowed for nationwide overnight delivery.
2. Airborne Express positioned itself as the low-cost provider in the industry, targeting large business customers. It aimed to offer the lowest prices compared to FedEx and UPS. Airborne also reduced costs by owning its own airports.
3. However, Airborne's competitive advantages of low prices and proprietary technology were not sustainable long-term as competitors matched its offerings. It struggled with low profit margins, and was eventually
- Apex Corporation is facing problems with its organizational structure including informality, lack of structure and financial planning, and increasing customer complaints.
- The document evaluates changing to a circular, functional, or divisional structure.
- It recommends a divisional structure to improve accountability, budgeting, planning and focus on financial targets while balancing control from upper management and freedom from lower management.
The document discusses how the e*Logistics program became institutionalized within the company. It describes how the program was developed with both business and IT experts to ensure it followed product/service flows and data flows. The program uses reminders and forces users to utilize it in order to make processes independent of individual users. It also interfaces with various ERP systems through a middleware broker to allow for staged and easier deployment while reducing change resistance. Ultimately, the e*Logistics program provided visibility and coordination across the entire business from sales to order fulfillment to finance.
McKinsey & Company: Managing Knowledge and LearningDisha Ghoshal
As part of Strategy execution, this presentation on was on how McKinsey & Company flourished throughout the years by Managing Knowledge and Learning diligently.
- Edgar Newell started Newell Company in 1902 through the acquisition of a curtain rod manufacturer.
- Dan Ferguson crafted a growth strategy of acquiring companies to expand Newell's product line.
- In the late 1990s, Newell faced challenges from increased customer buying power and consolidation in the retail industry.
- Newell acquired Calphalon and Rubbermaid but integrating the large Rubbermaid presented challenges due to its size, reputation, and operations that could impact Newell's strategy.
Sport Obermeyer is a high-end skiwear company that produces around 800 stock keeping units each year through a global supply chain. It works with a joint venture partner Obersport in Hong Kong and China to source materials and manufacture products. Sport Obermeyer is looking for ways to improve its forecasting accuracy and production flexibility to better meet demand. Some options it is considering include adjusting production allocation between Hong Kong and China factories and revising minimum order quantities.
ForldRite Furniture Co is planning strategies to meet a surge in demand for its folding chairs, tables, and other furniture. One strategy is to hire and train new workers to exactly meet production requirements each month. This would allow the company to sustain production levels if demand continues increasing. However, it risks demoralizing workers with future layoffs of extra labor. It also increases costs for hiring, unemployment insurance if workers are later laid off, and the time needed for training. Maintaining a stable workforce may better fit the company's goals.
Cisco implemented Oracle's ERP software to address deteriorating legacy systems. A 100-person team selected Oracle over other vendors. The implementation used rapid prototyping through "conference room pilots" to configure the software for Cisco's needs. While go-live faced hardware and capacity issues, strong vendor support stabilized the system within 3 months, concluding a successful ERP implementation.
The document summarizes the operations of the Mumbai Dabbawalas, who deliver home-cooked lunches to office workers in Mumbai. It outlines their highly efficient system for sorting and delivering over 200,000 lunch boxes per day across Mumbai within 3 hours, with an extremely low error rate of 1 in 16 million transactions, equivalent to Six Sigma quality levels. The Dabbawalas have no formal education or technology, yet achieve world-class reliability through their simple coding system and cultural values like trust and ownership.
1) Six Sigma is a data-driven approach to process improvement that aims to reduce defects to 3.4 parts per million. It involves defining customer needs, measuring processes, analyzing data for improvement opportunities, and controlling processes.
2) Quality is defined as meeting or exceeding customer requirements. Total quality cost includes prevention, appraisal, internal failure, and external failure costs. Understanding customer needs through methods like the KANO model is important for defining critical quality characteristics.
3) Measurement and statistics are essential for understanding process capability. Descriptive statistics summarize data while inferential statistics allow estimating population parameters from samples. Tools like histograms, box plots, and statistical parameters
This document outlines goals and strategies for the East Central supply chain of a beverage company. It aims to increase sales volume and market share while reducing costs and improving efficiency, quality, and safety. Key priorities include strengthening leadership capabilities, improving process management systems, embedding a quality and safety culture, and driving cost leadership through reduced manufacturing defects and overhead costs. Specific initiatives are outlined to boost productivity, quality, sustainability and regulatory compliance across plants in the region. Metrics such as sales, costs, yields, losses, and safety incidents will be used to track progress towards goals.
This document provides an overview of supply chain management. It defines SCM and its key concepts, including planning, sourcing, manufacturing, delivery, and returns. The goals of SCM are to create an efficient low-cost network to get products from concept to market while satisfying customers. SCM encompasses various activities like forecasting, purchasing, processing, delivery and more. The document also discusses SCM in different organization sizes and how it can increase profitability through cost reductions. It profiles the 2016 Gartner Supply Chain Top 25 companies and discusses career opportunities and courses in SCM.
This document discusses demand forecasting frameworks and processes. It covers selecting the appropriate level of granularity and time period for forecasts based on the decisions that need to be made. Metrics for evaluating forecast accuracy like bias and error are presented. The document also discusses setting up a sales and operations planning process for generating a consensus demand forecast and tracking the value added by different stages. Weighted metrics that account for item importance are recommended for portfolios with many items.
This document discusses integrating Lean and Six Sigma approaches to achieve breakthrough improvements in quality, productivity, and competitive position. It outlines key metrics like cost of poor quality, process lead times, inventory turns, and process efficiency that can be improved. Value stream mapping is presented as a tool to identify improvement opportunities and track progress. Linked scorecards are proposed to monitor performance across key areas like profits, products, processes, projects and people.
This document provides an agenda for a program on resisting price increases and implementing cost improvement initiatives. The program schedule is laid out over four sessions throughout the day, with breaks for lunch and Q&A. The document discusses topics like the impact of globalization on businesses, strategies for survival, inflation and how to beat it, analyzing costs, vendor assessment, and techniques for cost reduction through value engineering and supplier development.
Relationship between working capital management nd profitabilitySoumitra Kansabanik
A statistical study has been conducted on few companies in FMCG sector to understand the relationship between working capital management and profitability
The document discusses balancing the need for control in automated bakery production lines while allowing bakers flexibility. It describes using Lean Six Sigma tools like critical process parameters to monitor key variables and statistical process control charts. This can provide control through data-driven decision making but still enable bakers to make necessary changes. The conclusion is that a collaborative industry effort is needed to attract bakers and that Lean Six Sigma can discipline decision-making while maintaining creative freedom.
This document discusses how Toyota developed its just-in-time (JIT) production system to compete in low volumes against high-volume automobile companies. It explains how Toyota moved from functional departments to cellular production and JIT to reduce waste. Key aspects of JIT discussed include pull production to reduce wait time, continuous improvement, setup reduction, quality management, and strategic partnering with suppliers for JIT deliveries. The role of management accounting is to provide performance measures to support continuous improvement in production, purchasing, delivery, and overall value creation through strategies like JIT, quality management, and cost reduction.
The document discusses Just-in-Time (JIT) manufacturing and Material Requirements Planning (MRP). It describes the key concepts and elements of JIT, including continuous improvement, eliminating waste, good housekeeping, setup time reduction, and kanbans. The advantages of JIT inventory systems are lower costs, less waste, and higher customer satisfaction. Potential disadvantages include disruptions in the supply chain if suppliers fail. MRP is also discussed as a production planning system to ensure materials and products are available when needed at the lowest possible levels. The document provides an overview of JIT and MRP concepts.
Lean Six Sigma and the principles of Kaizen for your business Brent Spilkin
Lean Six Sigma and the principles of Kaizen for your business
This presentation covers: Lean business practises, Six Sigma and its principles, Kaizen, Value streaming and the 5S's.
Its a working document that at a very high level covers all these principles.
Growing Pains Business Coaching is available here www.spillly.com or via mail kim@spillly.com
Thank you.
This document contains sample questions and answers from a Production and Operations Management exam. It discusses topics like value engineering, supply chain management, business processes, productivity, forecasting, risk management, and factory layouts. For value engineering, it defines the concept and lists its main benefits as cost reduction and an overall culture of cost consciousness. It also provides short notes on various topics, including the key ingredients of a business process, acceptance sampling techniques, work breakdown structures, and defining productivity. The document aims to provide comprehensive yet concise coverage of operations management topics to help students prepare for their exam.
Upstream optimization: How continuous improvement methods are having a positi...Tara Bilby
The experiences of four energy industry companies show how continuous improvement techniques can produce measurable benefits, including improved on-time work order completion, cost savings, increased productivity, inventory reductions, and improved process effectiveness.
Upstream optimization: How continuous improvement methods are having a positi...Argo, Inc.
Continuous improvement techniques can help energy companies improve performance in changing market conditions. The document discusses four case studies where energy companies used continuous improvement to streamline operations, reduce waste, and lower costs. This resulted in benefits like improved on-time work completion, higher productivity, lower inventory levels, and increased process effectiveness. Continuous improvement helps identify inefficiencies and implement improvements to address issues across all levels of a company's operations.
Business Performance Management - Process ApproachAjay Koul
The document describes Business Performance Management (BPM) as a method for improving business growth, profitability, productivity and customer retention. It provides examples of BPM processes used across various parts of the business to identify opportunities, analyze data, prioritize actions and monitor outcomes. Key BPM examples addressed sales time optimization, customer retention, product pricing approaches, operational scenario analysis, and the development of strategic ambitions and tactical actions. The overall document outlines the BPM approach and shares examples of its application to drive business performance.
SOLVED SMU MBA ASSIGNMENTS AVAILABLE....Naveen Kumar
Remaining Answers are available in Paid Assignments……..
Contact us for complete assignments…..
NAVEEN KUMAR: 09958511016 /09971164259
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ALL OF OUR ASSIGNMENTS ARE IN WORD FORMAT AND AS PER NEW GUIDELINES OF SMU………
This document outlines a presentation on Total Productive Maintenance (TPM). It begins with an introduction of the presenter and then covers topics such as the definition of maintenance, types of maintenance, what TPM is, the history and objectives of TPM, similarities and differences between TPM and Total Quality Management (TQM), the eight pillars of TPM, why TPM is popular, benefits and losses of implementing TPM, and concludes with how TPM can help increase quality and productivity.
The document discusses managing product and process variations according to the 9103 standard. It defines key characteristics as measurable features of a product or process that have a significant influence on meeting customer requirements. Identifying key characteristics helps reduce variation and costs by focusing control efforts on the attributes that matter most. The 9103 standard provides a seven-stage process for understanding, planning, operating, analyzing, and improving processes to minimize variation of key characteristics.
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ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
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Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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Article: https://pecb.com/article
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Website: https://pecb.com/
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it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.
2. EXECUTIVE SUMMARY
WHAT DID WE ACHIEVE:
✓ The company obtained profit in each period, growing uninterruptedly in the first 4 rounds and with
a slight decrease in the last 2 rounds.
✓ Since round 1, ROI has always been positive.
WHAT WAS THE GENERAL STRATEGY :
✓ Make decisions integrating all departments, evaluating the possible positive or negative effects on
them in order to minimize costs and maximize the benefit to the company.
✓ Evaluate the decisions made in each period, provide feedback and take corrective actions to make
better use of company resources.
PROBLEMS ENCOUNTERED:
✓ Difficulties in predicting how some decisions will impact the performance of the company.
(The simulator restrained some functionalities at the first stages of the game)
✓ Align strategic decisions of departments in a common goal
THE FRESH CONNECTION | TEAM 2 2
3. CONTENTS
TEAM & RESPONSIBILITIES
◦ SALES
◦ OPERATIONS
◦ SUPPLY CHAIN
◦ PURCHASING
FINANCIAL RESULTS & CONCLUSIONS
THE FRESH CONNECTION | TEAM 2 3
4. Cube utilization %
Prod.Plan Adherence %
Unused capacity %
Nr. of shifts
Responsibilities:
Optimize and control
production and
warehouses
Components %
Stock Components
Stock Products
Responsibilities:
Coordinate different
departments, inventory
control and production
Rejection Components %
Raw Material Costs %
Delivery Reliability
Suppliers
Responsibilities:
Purchasing components,
negotiating with suppliers
Service level %
Obsoletes %
Gross Margin
Responsibilities:
Sell all produced goods
with highest possible
price
TEAM & RESPONSIBILITIES
THE FRESH CONNECTION | TEAM 2 4
R O I %
PURCHASING
SUPPLY
CHAIN
OPERATIONSSALES
5. SALES – GROSS MARGIN
THE FRESH CONNECTION | TEAM 2 5
✓ Increase gross margin as much as possible
prioritizing biggest customers
✓ Try not to lose gross margin on smaller customers
significantly
✓ Introduce promotional pressure for customers
during later rounds
I. STRATEGY II. RESULTS
✓ Gross began to grow on F&C and Dominick’s during
round 3 when customer order priorization was
implemented
✓ Further increases in later rounds with promotional
pressure
✓ Overall increase in gross for F&C and Dominick’s
was attained without losing gross margin on Land
Market
✓ F&C gross increased by almost 5 000 and
Dominick’s by 3000 during 6 periods
III. ANALYSIS
11610
14510
22486
27303
6. SALES – NEGOTIATIONS
THE FRESH CONNECTION | TEAM 2 6
✓ Align capacity of SC and Operations to match
negotiated service and shelf life levels
✓ Take advantage of one customer with full product
range to decrease potential obsoletes
✓ Trade unit: Pallets for all and VMI for F&C and
Dominick’s to reduce outbound stress
✓ Customer priorities: 1. F&C, 2. Dominick’s, 3. LM
I. STRATEGY
✓ Obsoletes were solved with having LM with shelf
life of 62-65%
✓ Negotiated service level % was calculated and
estimated based on improvements in SC and
Operations
✓ Decision-making in Sales was first based on
improvements made in SC and Operations, further
the decisions in SC and Operations were changed
based on Sales.
III. ANALYSIS
II. RESULTS
7. 900 900 920 900 900 900 900
1500
1200
1050
950 930
975 1000
98% 99%
94% 96% 97% 100%
108%
71%
79%
85%
95% 97%
101% 101%
0%
20%
40%
60%
80%
100%
120%
0
200
400
600
800
1000
1200
1400
Round 0 Round 1 Round 2 Round 3 Round 4 Round 5 Round 6
CubeUtilisation
WarehouseCapacity
Inbound Capacity Outbound Capacity
Inbound Cube Utilisation Outbound Cube Utilisation
OPERATIONS - WAREHOUSES
THE FRESH CONNECTION | TEAM 2 7
✓ Optimise pallet allocations (to avoid overflow and
outsourcing / too large unsued capacity)
✓ Allocate adequate number of shifts
✓ Reduce variability in processes and smooth raw
materials income and finished goods storage (align
with Supply Chain and Purchasing)
✓ Be ready to handle all demand (align with Sales)
I. STRATEGY II. RESULTS
✓ Round 4 was the most successful
✓ Starting in Round 5, the demand overpassed the
warehouses‘ capacities and it was not adjusted
correctly
✓ Outsourcing of warehouses would lead to
significantly higher costs
III. ANALYSIS
8. 79%
94%
87%
92% 93% 94%
89%
78%
58%
73% 73% 73%
53%
81%
5%
25%
6%
10% 11%
39%
10%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Round 0 Round 1 Round 2 Round 3 Round 4 Round 5 Round 6
Production Plan Adherence Runtime Unused Capacity
OPERATIONS - PRODUCTION
THE FRESH CONNECTION | TEAM 2 8
´
✓ Allocate adequate number of shifts
✓ Select wisely new investments to smooth
production and increase ROI (mixing and botteling)
✓ Minimize production costs, unused capacity,
changeover and breakdown times
✓ Maximize production plan adherence
✓ Align with all other functions to be ready to satisfy
all demand at lowest cost
I. STRATEGY II. RESULTS
✓ In Round 5, the bottling line was changed and
shifts increased too much this mistake was
corrected in round 6
✓ New investment lead to higher production costs
and consequently lower ROI (lack of alignment
with other functions) on longterm, the company
would improve its business results (lower variability in
production, less rejection component rate, less breakdown,
low unused capcity, high runtime %, etc.)
III. ANALYSIS
9. 98.8% 98.9%
99.6%
99.8% 99.9% 99.8%
90.0%
92.0%
94.0%
96.0%
98.0%
100.0%
102.0%
0
5
10
15
20
25
30
35
40
45
50
Round 1 Round 2 Round 3 Round 4 Round 5 Round 6
ANALYSIS PER COMPONENTS
Mango Orange Pack 1 liter
PET Vitamin C Stock Availability %
SUPPLY CHAIN - COMPONENTS
THE FRESH CONNECTION | TEAM 2 9
✓ Guarantee availability of components to meet
demand (depending on supplier reliability, lot sizes
and safety stock )
✓ Keep cost of stock at min level (in accordance with
operations decisions) – Pet and Pack 1L (1-2
rounds)
✓ Adequate lot sizes depending on the stock cost and
transport costs given by procurement
I. STRATEGY II. RESULTS
✓ It was possible to guarantee availability over 99%
but in some cases compromising average stock –
which increased the cost
✓ Increasing supplier reliability in some products
(vitamin C) was key to have a better stock control
✓ Round 3 and 4 best results obtained
✓ Round 6 problem lack alignment with other
departments
III. ANALYSIS
Low availability of Vitamin
C – High stock PET and
Pack 1
Adjust Pack 1 –
Reduction of lot sizes
Increased Stock
per Week PET –
increase demand
10. SUPPLY CHAIN – FINISHED GOODS
THE FRESH CONNECTION | TEAM 2 10
✓ Lower average stock weeks of demand and %
obsolete products without compromising service
level - in accordance with contract index per
customer
✓ Adjust production interval to decrease overall cost
and increase utilization rate (7 day)
✓ Frozen period allows to keep flexibility to react to
demand changes
I. STRATEGY II. RESULTS
✓ Achieved to keep obsoletes between (0%-1%) –
Round 6 increase -> due to plan adherence bottling
line involving PET related products and production
interval
(Increasing production due to increase in demand)
✓ Round 2 and Round 6 lowest prod plan adherence
– higher production interval increase average stock
III. ANALYSIS
5.64 5.24 5.50 5.56 5.67 5.32
20%
0% 0% 1% 1% 3%
97% 95% 96% 96% 98%
97%
94% 87% 92% 93%
94%
89%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
0
1
2
3
4
5
6
7
8
9
10
Round 1 Round 2 Round 3 Round 4 Round 5 Round 6
Stock(weeksofdemand) Stock per week Average % Obsoletes
Average % Service Level Average % Product Plan Adherance
11. PURCHASING –Component Focus
THE FRESH CONNECTION | TEAM 2 11
✓ Ensure high delivery reliability and low rejection
rates, for the best price.
✓ Make sure lead times & trade units and expected
amounts are planned and aligned with operations.
I. STRATEGY II. RESULTS
✓ Round 4: Supplier is changed
✓ Round 5: Supplier Development Plan is introduced
Lower rejection rate is obtained
Other benefits of the SDP may be observed in
further rounds
III. ANALYSIS
3.40% 3.50% 3.60% 3.20% 2.40% 2.30%
0.99
0.995
1
1.005
1.01
1.015
1.02
1.025
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
1 2 3 4 5 6
Pack 1 Liter
Delivery reliability (%) Rejection(%) Contract Index
12. PURCHASING – Component Focus
THE FRESH CONNECTION | TEAM 2 12
✓ Round 2: Trade unit is changed
✓ Round 3: Supplier is changed
✓ Round 5: Supplier is changed & Bottling Line is changed with a
more tolerant one.
✓ Round 2: Trade unit is changed
✓ Round 4: Higher delivery reliability rate is negotiated.
5.60% 5.70% 3.10% 3.30% 2.10% 2.00%
0.94
0.95
0.96
0.97
0.98
0.99
1
1.01
1.02
1.03
1.04
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
1 2 3 4 5 6
PET
Delivery reliability (%) Rejection(%) Contract Index
1.00% 1.00% 0.90% 0.90% 0.80% 0.70%
0.996
0.998
1
1.002
1.004
1.006
1.008
1.01
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
1 2 3 4 5 6
Orange
Delivery reliability (%) Rejection(%) Contract Index
13. PURCHASING – Component Focus
THE FRESH CONNECTION | TEAM 2 13
✓ Round 2: Higher delivery reliability rate is negotiated. ✓ Round 3: Supplier is changed & Higher deliveriy reliability
rate is negotiated.
14. PURCHASING – Raw Material Costs (%)
THE FRESH CONNECTION | TEAM 2 14
✓ Raw material cost (%) (purchase costs as a
percentage of total revenue) is one of the crucial
KPI’s of the company
✓ It is calculated taking into consideration the bonus
& penalties
✓ Strategy: Lower Values
I. STRATEGY II. RESULTS
✓ Decreasing Trend during the first 5 rounds
✓ High obsolete products in round 6 Causes
unnecessary purchases
✓ Unmatched Service Level Agreements in round 6
Causes high penalties
✓ Best performance: Round 4 & 5
III. ANALYSIS
1,014,346
857,446
828,373 839,319 840,809 861,096
37.48
34.14
32.47 32.14
30.96
31.70
10.00
15.00
20.00
25.00
30.00
35.00
40.00
1 2 3 4 5 6
500,000
600,000
700,000
800,000
900,000
1,000,000
1,100,000
Purchase Costs (%) - Purchase Value
Purchase Value Purchase Costs (%)
15. FINACIAL RESULTS & CONCLUSIONS
THE FRESH CONNECTION | TEAM 2 15
✓ The average of goods sold in the 6 rounds was $ 2.66 million. The periods
with the highest sales were rounds 1, 5 and 6.
✓ The cost of goods sold drastically influenced the gross margin, the average of
this in the 6 rounds was $ 1.37 million. It can be seen that the periods with
the highest cost of goods sold were 1 and 5.
✓ The ROI went from negative in the first period to positive in the second,
having the best percentages in periods 3 and 4 and lower results in periods 5
and 6 caused by lack of alignment on following factors:
• Change of filling line
• Increased demand
• Decreased production interval
• Not sufficiently increased warehouse capacity
Not allocating the capacity correctly lead to
• High obsoletes % and penalty costs
• High cube utilisation % in warehouses
• Low production plan adherence
✓ The weighted average was 4%
I. RESULTS
FINANCE
ROI EVOLUTION
II. CONCLUSIONS
17. SALES - Decisions
THE FRESH CONNECTION | TEAM 2 17
ROUND 1
✓ Understand how the game works
✓ Use real life experience in decisions
✓ Find correlations between other
departments when making decisions
ROUND 2
✓ Get rid of high % of obsoletes by
drastically decreasing shelf life and
introducing FIFS shortage rule
✓ Calculate service level based on changes
made in SC and Operations
ROUND 3
✓ Calculate service level and shelf life based
on changes made in SC and Operations
✓ Obsoletes value at 0,2%
✓ Set goal to increase obsoletes to 1-2% in
order to find how much « air » is in
between actual capacity and negotiated
ROUND 4
✓ Obsoletes still at 0,2% -> Increase shelf
life more
✓ Calculate service level and shelf life based
on changes made in SC and Operations
ROUND 5
✓ Install VMI for 1 customer
✓ Trade unit to Pallet for all customers
✓ Communicate promotional pressure and
implemented changes VMI to SC and
Operations
ROUND 6
✓ Calculate service level to align with
achieved service levels from round 5
✓ VMI for 2 customers
✓ Communicate promotional pressure and
implemented VMI to SC and Operations
18. OPERATIONS - Decisions
THE FRESH CONNECTION | TEAM 2 18
Decision Period 0
Period 1
30.03.17
Period 2
06.04.17
Period 3
20.04.17
Period 4
20.04.17
Period 5
27.04.17
Period 6
27.04.17
Inbound
(Raw materials)
Pallets location 900 920 900
Shifts 5 3 2 3
IntakeTime days N/A 5 6
Inspection N/A No Pets,Pack 1 liter Pets, Plastics
Mixing Mixer Type Fruit Mix MQ
Bottling
Shifts 2 3 2 3 2
Projects - SMED - -
Preventive
Maintenance
N/A A little A lot
Solve
Breakdown
Training
N/A Yes No
Bottling Line Swiss Fill 2 Multi Flex 1
Outbound
(finished
goods)
Pallets location 1500 1200 1050 950 930 975 1000
Shifts 4 3 4
19. SUPPLY CHAIN - Decisions
THE FRESH CONNECTION | TEAM 2 19
ROUND 1
✓ Safety Stock: increased Vitamin C, decrease safety
for all finish products (depending on the shelf life)
✓ Lot Size: decreased for PET and Pack 1
✓ Production Interval: Increased production interval of
Freassie Orange/c-Power 1 liter, Fressie Orange PET,
Fressie Orange/C- power PET
✓ Frozen Period: 3
ROUND 2
✓ Safety Stock: reduced Pack 1L and brought back
Vitamin C , unified to 2 SS of finished goods
✓ Lot Size: Decreased Pack 1 liter, orange, mango and
Vitamin C
✓ Production Interval: unified to 8
✓ Frozen Period: 3
ROUND 3
✓ Safety Stock: increased Vitamin C, Fressie Orange/C-
power
✓ Lot Size: decrease Vitamin C
✓ Production Interval: Changed back to 7 Fressie
Orange 1 liter, Fressie Orange/c-Power 1 liter, Fressie
Orange/Mango PET, Fressie Orange/C - power PET
✓ Frozen Period: 4
ROUND 4
✓ Safety Stock: lower vitamin C
✓ Lot Size: no changes
✓ Production Interval: no changes
✓ Frozen Period: 3
ROUND 5
✓ Safety Stock: Fressie Orange 1 liter, Fressie Orange
/C-Power
✓ Lot Size: Reduced for orange and mango
✓ Production Interval: unified to 7
✓ Frozen Period: 3
ROUND 6
✓ Safety Stock: decreased orange, mango, vitamin c
✓ Lot Size: no changes
✓ Production Interval: no changes
✓ Frozen Period: 3