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Transcript of Chapter Ten Process Analysis and Improvement Application: Supply Chain Management McGraw-Hill/Irwin...
Chapter Ten
Process Analysis and Improvement
Application: Supply Chain Management
McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc. All rights reserved.
Chapter Ten Learning Objectives
Learn how to view a product supply chain from process perspective
Develop a consumer product supply chain flow model using Visio
Develop and test various what-if business decision scenarios using Beer Game simulation models
Chapter Ten Worksheet Menu
Chapter 10 Exhibits
Use Ctrl-Shift-R to return to this
worksheet
Process Analysis and Improvement: Tools and Techniques Copyright ©2005 by The McGraw-Hill Companies, Inc.
Filename Sheet / Page Name Exhibit Number Application / Caption
Drawings.vsd Primis Custom Publishing 1 Primis Custom Publishing Textbook Supply Chain
Drawings.vsd Lead Time Syndrome 2 Lead Time/Safety Stock Syndrome
Drawings.vsd Inventory Reduction Syndrome 3 Inventory Reduction Syndrome
Drawings.vsd Supply Chain Network 4 Supply Chain Network
Drawings.vsd Manufacturing Supply Chain 5 Manufacturing Supply Chain Network
Worksheets.xls Textile Sector 6 Integrated Production Planning and Control Philosophy - Textile Sector
Drawings.vsd Marketing Strategies 7 Supply Chain Network: Marketing Strategies
Drawings.vsd Production Strategies 8 Supply Chain Network: Production Strategies
Drawings.vsd Coordinating Strategies 9 Supply Chain Network: Coordinating Strategies
Drawings.vsd Food Production Process 10 Supply Chain Network: Food Production Process
Drawings.vsd Steel Production Process 11 Supply Chain Network: Steel Production Process
Drawings.vsd Beer Game Process Model 12 Beer Game Production Process Model
Drawings.vsd Beer Game Flow Model 13 Beer Game Supply Chain Flow Model
Drawings.vsd Beer Game Node Model 14 Beer Game Node Model
Worksheets.xls Single Unit 15 Model Beer Game.doe Input Variables
Worksheets.xls Beer Game Output Files 31 Beer Game.doe Output Files
Worksheets.xls PAN_1 34 Model Beer Game.doe Results, PAN 1
Worksheets.xls PAN_2 35 Model Beer Game.doe Results, PAN 2
Worksheets.xls PAN_3 36 Model Beer Game.doe Results, PAN 3
Worksheets.xls PAN_4 37 Model Beer Game.doe Results, PAN 4
Worksheets.xls PAN_5 38 Model Beer Game.doe Results, PAN 5
Drawings.vsd Two Unit Beer Game 39 Two Unit Beer Game Flow Network
Worksheets.xls Two Units 40 Model Two Units.doe Variables
View Selected Worksheet or Drawing
Chapter Ten FilesCD File Description
Beer Game PAN 1.pan Four-level supply chain model Process Analyzer File 1
Beer Game PAN 2.pan Four-level supply chain model Process Analyzer File 2
Beer Game PAN 3.pan Four-level supply chain model Process Analyzer File 3
Beer Game PAN 4.pan Four-level supply chain model Process Analyzer File 4
Beer Game PAN 5.pan Four-level supply chain model Process Analyzer File 5
Beer Game PAN.doe Four-level supply chain model (No VBA)
Beer Game.doe Four-level supply chain model
Beer Game.pan Four-level supply chain model Process Analyzer File
Beer Game.xls Four-level supply chain model input data
Chapter 10 Drawings.vsd Chapter 10 Drawings
Chapter 10 Presentation.ppt Chapter 10 PowerPoint Presentation
Chapter 10 Worksheets.xls Chapter 10 Worksheets
Two Units.doe Four-level multiple-unit supply chain model
Two Units.xls Four-level multiple-unit supply chain model input data
Chapter Ten Outline
Learn how to view a product supply chain from process perspective
Develop a consumer product supply chain flow model using Visio
Develop and test various what-if business decision scenarios using Beer Game simulation models
Integrated Supply Chain Management
A Historical Perspective on Supply Chain
Supply Chain Management Philosophy
Strategies for Solving Supply Chain Problems
Integrated Supply Chain Management
An arrangement of suppliers of products and services
A network for efficient management of demand and flow of products and services
A philosophy of conducting business A strategy to gain competitive advantage
through coordination and synchronization of actions of its members
Supply Chain Historical Perspective
1960 to 1975 corporations had vertical organization structures and optimization of activities was focused
on functions Relationships with vendors were win-lose interactions and were many times adversarial Manufacturing systems were focused on Materials Requirements Planning (MRP)
1975 to 1990 corporations were still vertically aligned, but several were involved in process mapping and
analysis to evaluate their operations There was realization by organizations of the benefit of integration of functions such as,
product design and manufacturing. Manufacturing systems were focused on MRP II.
1990 Onwards corporations all over the world have been experiencing increasing national and international
competition Strategic alliances among organizations have been growing Organization structures are starting to align with processes Manufacturing systems in organizations have been enhanced with information technology
tools such as, • Enterprise Resource Planning• Distribution Requirements Planning• Electronic Commerce• Product Data Management• Collaborative Engineering
Supply Chain - Channel Integration
Organizational structures and associated relationships
Supply chain coordination Inter and intra enterprise
communication Sourcing Manufacturing orientation Inventory and cost management
Supply Chain Management Issues
Flexible Organizations Organizational Relationships Total supply chain coordination Improved Communications Outsourcing non-core competencies Build to Order Manufacturing Strategy Inventory Management Cost Control
Solving Supply Chain Problems
The Acceleration Principle Lead Time/Safety Stock Inventory Reduction Syndromes
Implementing Effective Supply Chain Management Strategies
A Framework for Analysis
Acceleration Principle: Inventory Reduction Syndromes
Exhibit 10-3 p. 286 Page: Inventory Reduction Syndrome
Implementing Effective Supply Chain Management Strategies
Manage inventory investment in the chain Establish supplier relationships Increase customer responsiveness Build a competitive advantage for the
channel Introduce supply chain management
solutions and enabling information technology
A Framework for Analysis
Building blocks Production Operations Management
Systems (POMS) Integrated Production Planning and
Control (IPPC)
Supply Chain Framework Elements
Goals Objectives
Increase throughput Reduce cycle time Reduce stage inventory
Modeling Principles Developing Coordinated strategies Implementation
Reducing the influence of
lead-time variability in the productive process
inventory variability at different supply chain stages and locations
batching effects variability in the productive process
variability due to supply chain bottleneck operations
Productive Process Lead-time Variability
Set-up time can be alleviated by ensuring constant demand in the system
Process time variations can be reduced / and or eliminated by standardizing methods and procedures
Queue time can be eliminated by coordinating schedules between servers so that elapsed time for service can be minimized and server efficiency improved, and
Idle time can be eliminated or alleviated by scheduling maintenance of productive resources
Developing Coordinated Strategies
Maintaining effective inventories while realizing production efficiencies
Achieving integration through synchronization and coordination of various system components
Potential of increase in supply chain payoffs
Supply Chain Simulation: Beer Game
Beer Game Description Beer Game Arena Simulation Model Two Unit Beer Game Model
Beer Game Simulation Model
Input VariablesNetwork Logic FlowDisplayCrystal ReportsOutput FilesOptimization Analysis
Beer Game.doe
Exhibit 10-18 p. 301 Route Order Module
Exhibit 10-17 p. 301 Generate Demand Costs Assign Module
Beer Game.doe
Exhibit 10-19 p. 301Order Inventory Update Assign Module
Exhibit 10-20 p. 302Retail Sale Assign Module
Beer Game.doe
Exhibit 10-22 p. 302Reorder Assign Module
Exhibit 10-21 p. 302Retailer Lost Sale Assign Module
Beer Game.doe
Exhibit 10-24 p. 303Update Inventory Assign Module
Exhibit 10-23 p. 303Factory Order Assign Module
Beer Game.doe
Exhibit 10-25 p. 303Fill BackOrders Assign Module
Exhibit 10-26 p. 303Ship Order Assign Module
Exhibit 10-27 p. 304Route Kegs Spreadsheet
Beer Game.doe Output Files
Exhibit 10-31 p. 306Sheet Beer Game Output Files
Output Description Output Filename
Inventory Kegs 1 Retailer InventoryRetailer.datInventory Kegs 2 Wholesaler InventoryWholesaler.datInventory Kegs 3 Distributor InventoryDistributor.datInventory Kegs 4 Factory InventoryFactory.datKegs Backordered 1 Retailer KegsBackOrderedRetailer.datKegs Backordered 2 Wholesaler KegsBackOrderedWholesaler.datKegs Backordered 3 Distributor KegsBackOrderedDistributor.datKegs Backordered 4 Factory KegsBackOrderedFactory.datKegs On Hand 1 Retailer KegsOnHandRetailer.datKegs On Hand 2 Wholesaler KegsOnHandWholesaler.datKegs On Hand 3 Distributor KegsOnHandDistributor.datKegs On Hand 4 Factory KegsOnHandFactory.datKegs On Order 1 Retailer KegsOnOrderRetailer.datKegs On Order 2 Wholesaler KegsOnOrderWholesaler.datKegs On Order 3 Distributor KegsOnOrderDistributor.datKegs On Order 4 Factory KegsOnOrderFactory.dat
Beer Game.doe Output Files
Exhibit 10-32 p. 306Beer Game Output Files
InventoryRetailer.datKegsOnOrderRetailer.dat