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Lecture 1 & 2 (2).pptx

  2. TOPICS HOURLY • Risk Management, calculation, Zoning and treatments • Vertical + horizontal and Virtual integration • Case study Sony Ericsion • Transportation n Mode of transportation • SCM  Importance of SCM n Logistics  Difference between LM and SCM  TQM  SIX SIGMA  LEAN  MUDA<MURI MURA  Kaizen  JIDOKA  VMI  JIT  HEJUNIKA  5S Technique  G - GETBSU (See Yourself)
  3. Delivering a Burger to You ● When you buy a burger from McDonald or a Zinger from KFC, have you thought where all of the ingredients came from that produced your burger? ● Depending on the restaurant’s location, McDonald’s and KFC source their ingredients from both local and global suppliers. ● The challenge is to ensure that all restaurants in their network have enough ingredients to meet customer demand. ● This requires planning, implementing, and controlling the efficient, effective flow and storage of goods and services to deliver the burger to you
  4. Fighting a War is not easy planning and carrying out the movement and maintenance of forces.... those aspects of military operations that deal with the design and development, acquisition, storage, movement, distribution, maintenance, evacuation and disposition of material; movement, evacuation, and hospitalization of personnel; acquisition of construction, maintenance, operation and disposition of facilities a gigantic task indeed.
  5. Logistics ● The word logistics was first associated with the military in 1905 as a branch of war that pertains to the movement and the supply for armies. ● Now, Logistics is not only used in military but also by managers in almost all spheres of activity to fine tune the process of delivery through various supply lines with the primary objective of being able to deliver not just 'in time‘ but also at 'the desired place'.
  6. Definition of Logistics ● Logistics - ...the process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements." – (Reference: Council of Logistics Management) (Note that this definition includes inbound, outbound, internal, and external movements, and return of materials)
  7. THE PURPOSE OF A LOGISTICS SYSTEM ● RIGHT QUANTITIES of the ● RIGHT GOODS to the ● RIGHT PLACES at the ● RIGHT TIME in the ● RIGHT CONDITION at the ● RIGHT COST. Creating a logistics strategy Creating a logistics strategy is a balancing act which takes many variables into account.
  8. Supply Chain Management ● The network of organizations that fulfill customer needs – Can either be product or service oriented ● Product: cars, computers, etc. ● Service: MBA students, Hospitals ● By definition, incorporates multiple firms or organizations not under central control
  9. Some More Definitions ● Supply Chain Management is primarily concerned with the efficient integration of suppliers, factories, warehouses and stores so that merchandise is produced and distributed in the right quantities, to the right locations and at the right time, and so as to minimize total system cost subject to satisfying service requirements. Simchi-Levi ● Call it distribution or logistics or supply chain management. By whatever name, it is the graceful, gritty, and bulky process by which companies move, materials, parts, and products to customers. Fortune (1994)
  10. Philosophy of SCM ● The entire supply chain is a single, integrated entity. ● The cost, quality and delivery requirements of the customer are objectives shared by every company in the chain. ● Inventory is the last resort for resolving supply and demand imbalances.
  11. Simplistic Supply Chain ● Customer ● Retailer ● Distributor ● Manufacturer ● Supplier
  12. More Realistic Supply Chain
  13. Why is SCM Important? ● Strategic Advantage – It Can Drive Strategy * Manufacturing is becoming more efficient * SCM offers opportunity for differentiation (Dell) or cost reduction (Wal-Mart or Big Bazaar) ● Globalization – It Covers The World * Requires greater coordination of production and distribution * Increased risk of supply chain interruption * Increases need for robust and flexible supply chains
  14. Why is SCM Important? (continued) ● At the company level, supply chain management impacts * COST – For many products, 20% to 40% of total product costs are controllable logistics costs. * SERVICE – For many products, performance factors such as inventory availability and speed of delivery are critical to customer satisfaction.
  16. Traditional View of Suppliers & SCM
  17. More Advanced View of SCM
  18. Shift in focus in supply chains Kopczak & Johnson, 2003
  19. Shift in focus in supply chains Kopczak & Johnson, 2003
  20. Shift in focus in supply chains Kopczak & Johnson, 2003
  21. Process view of a supply chain ● Cycle view ● Push/pull view
  22. Cycle View of Supply Chains
  23. Push/Pull View of Supply Chains ● Pull processes: execution is initiated in response to a customer order ● Push processes: execution is initiated in anticipation of customer orders
  24. Push/Pull View of Supply Chains
  25. 04 difference b/w goods & services: •1) Tangibility •2) Inseparability •3) Perishability •4) Variability
  26. Competitive Advantage & 3Cs • Uniqueness of Product or Service offered • Leverage over Competitors
  27. Competitive Advantage Commercial Success
  28. Productivity & Value Advantage Matrix
  29. SCM and Marketing ● Due to increased competition and product improvements power of brand value is declining. ● Technological difference between company product is also declining ● Availability at the point of sales is important to retain even an old satisfied customer, otherwise the sale will be lost to competitor ● Customer service is a major ‘value advantage’.
  30. Barriers to SC Integration ● Organization Structure ● Measurement Systems ● Inventory Ownership ● Information Technology ● Knowledge Transfer Capability
  31. Logistics/SC Competency ● Network Design ● Information ● Transportation ● Inventory ● Warehousing, material handling and Packaging
  32. Thank you