11

CPET 575 Management Of TechnologyCPET 575 Management Of Technology

Value Chain & Supply Chain Value Chain & Supply Chain Supporting & Enabling TechnologiesSupporting & Enabling Technologies

November 4, 2010November 4, 2010

Paul IPaul I--HaiHai Lin, Professor Lin, Professor http://http://www.ipfw.edu/~linwww.ipfw.edu/~lin

M.S. Technology M.S. Technology -- IT and Advanced Computer Applications & Industrial IT and Advanced Computer Applications & Industrial Technology/ManufacturingTechnology/Manufacturing

Purdue University Fort Wayne CampusPurdue University Fort Wayne Campus

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Topics of DiscussionTopics of Discussion

Value Chain & Enabling TechnologiesValue Chain & Enabling TechnologiesSupply Chain & Enabling TechnologiesSupply Chain & Enabling Technologies

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Value Chain & TechnologiesValue Chain & Technologies

Value ChainValue ChainCompetitive AdvantageCompetitive Advantage, 1985, by Michael E. Porter, , 1985, by Michael E. Porter, The Free Press, ISBN 0The Free Press, ISBN 0--684684--8414684146--00•• Competitive StrategiesCompetitive Strategies•• Representative Technologies in a FirmRepresentative Technologies in a Firm’’s Value Chain, s Value Chain,

page page

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Technological Policies and Generic Technological Policies and Generic Competitive StrategiesCompetitive Strategies

Product Tech. Change

Process Tech. Change

Overall cost leadership

Overall diff. Focus-seg. cost leadership

Technological Policies

• Product dev. to reduce prod. cost by lowering materials content

• Facilitating ease manufacturing

• Simplifying logistical req.

• Learning curve process improvement

• Process improvement to enhance economics of scale

• Product dev. to enhance quality, features, deliverability, or switching costs

• Process dev. to support high tolerance

• Greater QC

• More reliable scheduling

• Faster response time to orders

•Others

• Product dev. to design only enough performance for the segment’s needs

• Product dev. to tune production and delivery system to seg. needs in order to lower cost

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Representative Technologies in FirmRepresentative Technologies in Firm’’s Value s Value Chain Chain (from Part I, page 8)(from Part I, page 8)

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Value Chain TechnologiesValue Chain Technologies

Inbound Logistics Inbound Logistics -- TechnologiesTechnologies•• Transportation TechnologyTransportation Technology•• Material Handling TechnologyMaterial Handling Technology•• Storage and Preservation TechnologyStorage and Preservation Technology•• Communication System Technology (Wired & Communication System Technology (Wired &

wireless)wireless)•• Testing TechnologyTesting Technology•• Information System TechnologyInformation System Technology•• (RFID)(RFID)

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Value Chain TechnologiesValue Chain TechnologiesOperation Operation -- TechnologiesTechnologies•• Basic Product TechnologyBasic Product Technology•• Material TechnologyMaterial Technology•• Material Handling TechnologyMaterial Handling Technology•• Packaging TechnologyPackaging Technology•• Maintenance MethodsMaintenance Methods•• Testing TechnologyTesting Technology•• Building Design, Operation TechnologyBuilding Design, Operation Technology•• Information System Technology Information System Technology •• (Communication System Technology: Wired & (Communication System Technology: Wired &

wireless wireless –– newly added)newly added)

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Value Chain TechnologiesValue Chain Technologies

Outbound Logistics Outbound Logistics -- TechnologiesTechnologies•• Transportation TechnologyTransportation Technology•• Material Handling TechnologyMaterial Handling Technology•• Packaging TechnologyPackaging Technology•• Communication System Technology (wired & Communication System Technology (wired &

wireless)wireless)•• Information System TechnologyInformation System Technology•• (RFID)(RFID)

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Value Chain TechnologiesValue Chain Technologies

Marketing/Sales Marketing/Sales -- TechnologiesTechnologies•• Media TechnologyMedia Technology•• Audio and Video Recording TechnologyAudio and Video Recording Technology•• Communication System TechnologyCommunication System Technology•• Information System TechnologyInformation System Technology

1010

Value Chain TechnologiesValue Chain Technologies

Services Services -- TechnologiesTechnologies•• Media TechnologyMedia Technology•• Audio and Video Recording TechnologyAudio and Video Recording Technology•• Communication System TechnologyCommunication System Technology•• Information System TechnologyInformation System Technology

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Value Chain TechnologiesValue Chain Technologies

New Supporting TechnologiesNew Supporting Technologies•• Media TechnologyMedia Technology

Multimedia, Web mediaMultimedia, Web media•• Audio and Video Recording TechnologyAudio and Video Recording Technology

High Definition Video Conferencing (HDVC)High Definition Video Conferencing (HDVC)•• Communication System TechnologyCommunication System Technology

TCP/IP, Internet, eTCP/IP, Internet, e--mail, wired & wireless mail, wired & wireless connection and devices: RFID, sensors, etcconnection and devices: RFID, sensors, etc

•• Information System TechnologyInformation System TechnologyEnterprise Resource Planning, Manufacturing Enterprise Resource Planning, Manufacturing Management, Supply Chain Management, Management, Supply Chain Management, SalesSales--Force Management, Force Management, Customer Customer Relationship ManagementRelationship Management

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Value Chain Technologies Value Chain Technologies Video Conferencing & CollaborationVideo Conferencing & Collaboration

Video ConferencingVideo ConferencingCisco Collaboration, Cisco Collaboration,

http://www.cisco.com/en/US/netsol/ns1007/index.htmlhttp://www.cisco.com/en/US/netsol/ns1007/index.html

Cisco TANDBERG, Cisco TANDBERG, http://http://www.tandberg.comwww.tandberg.com//PolycomPolycom –– TelepresenceTelepresence, Voice and Video Conference, , Voice and Video Conference,

http://http://www.polycom.com/index.html?showmewww.polycom.com/index.html?showme=y=y

Sony Video Conferencing, Sony Video Conferencing, http://pro.sony.com/bbsc/ssr/mkthttp://pro.sony.com/bbsc/ssr/mkt--broadcast/mktbroadcast/mkt--broadcastvideoconferencingbroadcastvideoconferencing//Logitech Logitech LifeSizeLifeSize Video Conferencing Video Conferencing -- www.LifeSize.cowww.LifeSize.commPanasonic HD Visual Communications System, WSJ Panasonic HD Visual Communications System, WSJ

Ad 11/4/2010, Ad 11/4/2010, www.panasonic.com/hdvcwww.panasonic.com/hdvc

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Value Chain Technologies Value Chain Technologies Video Conferencing & CollaborationVideo Conferencing & Collaboration

Internet/Web Video ConferencingInternet/Web Video ConferencingAdobe Connect Adobe Connect –– Web conferencing for the Web conferencing for the

enterprise, enterprise, http://http://www.adobe.com/products/adobeconnect.htmlwww.adobe.com/products/adobeconnect.html

Cisco Cisco WebExWebEx Web Conferencing, Web Conferencing, http://http://www.webex.comwww.webex.com//

Video & Web Conferencing, Video & Web Conferencing, www.MegaMeeting.comwww.MegaMeeting.com

NefsisNefsis Video Conference Software, Video Conference Software, http://http://www.nefsis.comwww.nefsis.com//

Microsoft Office Live MeetingMicrosoft Office Live MeetingIBM IBM LotusLiveLotusLive Engage, Engage,

https://https://www.lotuslive.com/en/campaigns/sesimple.phwww.lotuslive.com/en/campaigns/sesimple.phppiVisitiVisit, (free), , (free), http://http://www.ivisit.comwww.ivisit.com//

SkypeSkype,, www.skype.comwww.skype.com

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Value Chain TechnologiesValue Chain TechnologiesInformation TechnologyInformation Technology

Enterprise IT SystemsEnterprise IT Systems•• Enterprise Resource Planning (assets, financial Enterprise Resource Planning (assets, financial

resources, distribution, materials, human resources, resources, distribution, materials, human resources, product lifecycle management, Decision support)product lifecycle management, Decision support)

•• Manufacturing Resource ManagementManufacturing Resource Management•• SalesSales--Force ManagementForce Management•• Customer Relationship Management (CRM)Customer Relationship Management (CRM)•• Supply Chain Management (purchasing, Supply Chain Management (purchasing,

manufacturing, distribution)manufacturing, distribution)•• Warehouse Management Warehouse Management

Major Software VendorsMajor Software Vendors

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Value Chain TechnologiesValue Chain TechnologiesInformation TechnologyInformation Technology

Major ERP Software VendorsMajor ERP Software Vendors•• SAP, SAP, http://www.sap.com/solutions/businesshttp://www.sap.com/solutions/business--

suite/erp/index.epxsuite/erp/index.epx•• Oracle (PeopleSoft Enterprise, JD Edwards Oracle (PeopleSoft Enterprise, JD Edwards

Enterprise), Enterprise), http://http://www.oracle.com/index.htmlwww.oracle.com/index.html•• EpicorEpicor ERP, ERP,

http://http://www.epicor.com/Solutions/Pages/ERP.aspxwww.epicor.com/Solutions/Pages/ERP.aspx•• Microsoft Dynamic, Microsoft Dynamic, http://www.microsoft.com/enhttp://www.microsoft.com/en--

us/dynamics/whyus/dynamics/why--dynamics.aspxdynamics.aspx

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Medical Device Manufacturer Medical Device Manufacturer –– An An ExampleExample

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Enterprise IT Application IntegrationEnterprise IT Application IntegrationMedical Device ManufacturingMedical Device Manufacturing

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Mobile Agent Sales AutomationMobile Agent Sales AutomationMedical Device ManufacturingMedical Device Manufacturing

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Mobile Agent Sales AutomationMobile Agent Sales AutomationMedical Device ManufacturingMedical Device Manufacturing

Process Order

Approval

ItemDetails

Customer ServiceError

Customer Data

Inventory Data

ErrorPC

Customer

Orders

Invoices;Status

PC

Sales

Orders Status

Mobile Agent Sales Automation System (Context Diagram)

2020

Mobile Agent Sales AutomationMobile Agent Sales Automation

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Supply Chain Management & TechnologiesSupply Chain Management & Technologies

Supply Chain Management concernsSupply Chain Management concerns•• SuppliersSuppliers•• Transportation & LogisticsTransportation & Logistics•• Credit and Cash Payment (Transfers)Credit and Cash Payment (Transfers)•• DistributersDistributers•• Account Payables and ReceivableAccount Payables and Receivable•• Warehousing & InventoryWarehousing & Inventory•• Order FulfillmentOrder Fulfillment•• Information Sharing: Customer, Forecasting, and Information Sharing: Customer, Forecasting, and

ProductionProduction

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Supply Chain Management & TechnologiesSupply Chain Management & TechnologiesSupply Chain Management TopicsSupply Chain Management Topics11

•• Supply chain risk and managementSupply chain risk and management•• Supply chain economics: Supply chain economics:

Supply chain cost (52% Supply chain cost (52% ≤≤ as a percentage of sales as a percentage of sales ≤≤ 79%)79%)MakeMake--oror--buy decisionbuy decisionOutsourcingOutsourcing

•• SupplySupply--Chain StrategiesChain StrategiesMany suppliers, Few suppliersMany suppliers, Few suppliersVertical integration: Raw materials Vertical integration: Raw materials Finished goodsFinished goodsJoint ventureJoint ventureKeiretsu networks (Keiretsu networks (系列取引))Virtual companies (onVirtual companies (on--demand)demand)

1Operations Management, 1oth ed, by Jay Heizer and Barry Render, Prentice Hall

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Supply Chain Management & TechnologiesSupply Chain Management & Technologies

Supply Chain Decision StrategiesSupply Chain Decision Strategies11

•• ““What is the Right Supply Chain for Your Product?What is the Right Supply Chain for Your Product?””Marshall L. Fisher, Harvard Business Review, MarchMarshall L. Fisher, Harvard Business Review, March--April 1997. April 1997.

•• Strategies: Strategies: LowLow--cost Strategycost StrategyResponse StrategyResponse StrategyDifferentiation StrategyDifferentiation Strategy

•• Six Factors (goals, criteria, characteristics): Six Factors (goals, criteria, characteristics): SupplierSupplier’’s Goal, Primary Selection Criteria s Goal, Primary Selection Criteria Process Characteristics, LeadProcess Characteristics, Lead--Time CharacteristicsTime CharacteristicsProductProduct--Design CharacteristicsDesign Characteristics

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Supply Chain Management & TechnologiesSupply Chain Management & TechnologiesManaging Supply ChainManaging Supply Chain11

•• Mutual Agreement on GoalsMutual Agreement on Goals•• TrustTrust•• Compatible Organizational CulturesCompatible Organizational Cultures

Issues in an Integrated Supply ChainIssues in an Integrated Supply Chain11

•• Local OptimizationLocal Optimization•• Incentives (sales incentives, Quantity discounts, Incentives (sales incentives, Quantity discounts,

Quotas, Promotions, etc)Quotas, Promotions, etc)•• Large LotsLarge Lots

1Operations Management, 1oth ed, by Jay Heizer and Barry Render, Prentice Hall

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Supply Chain Management & TechnologiesSupply Chain Management & TechnologiesOpportunities in an Integrated Supply ChainOpportunities in an Integrated Supply Chain11

•• Accurate Accurate ““PullPull”” DataData•• Lot Size ReductionLot Size Reduction•• SingleSingle--Stage Control of Replenishment: RFID tags, Stage Control of Replenishment: RFID tags,

monitoring and managing inventorymonitoring and managing inventory•• VendorVendor--Managed InventoryManaged Inventory•• Collaborative Planning, Forecasting, and Collaborative Planning, Forecasting, and

ReplenishmentReplenishment•• Blanket Orders (longBlanket Orders (long--term purchase commitment to a term purchase commitment to a

supplier for items..)supplier for items..)•• StandardizationStandardization•• PostponementPostponement

1Operations Management, 1oth ed, by Jay Heizer and Barry Render, Prentice Hall

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Supply Chain Management & TechnologiesSupply Chain Management & TechnologiesOpportunities in an Integrated Supply Chain Opportunities in an Integrated Supply Chain (cont.)(cont.)11

•• Drop Shipping and Special PackagingDrop Shipping and Special PackagingDrop Shipping Drop Shipping –– direct shipping from the supplier to the end direct shipping from the supplier to the end customercustomer

•• PassPass--through Facility (distribution center)through Facility (distribution center)•• Channel AssemblyChannel Assembly

1Operations Management, 1oth ed, by Jay Heizer and Barry Render, Prentice Hall

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Supply Chain Management & TechnologiesSupply Chain Management & Technologies

Aggregate Planning, ForecastAggregate Planning, ForecastEE--Procurement, Online Catalog, Auctions, Request For Procurement, Online Catalog, Auctions, Request For Quotes (Quotes (RFQsRFQs))Capacity & Level Planning Capacity & Level Planning Production/Demand, Workforce/Subcontract, Production/Demand, Workforce/Subcontract, Outsourcing/VendorsOutsourcing/VendorsMaterial Requirements PlanningMaterial Requirements PlanningInventory ManagementInventory ManagementRealReal--Time Inventory TrackingTime Inventory TrackingSecurity and JustSecurity and Just--InIn--TimeTime

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ConclusionConclusion

MIT ESD 290 Special Topics in Supply Chain MIT ESD 290 Special Topics in Supply Chain Management (April 28, 2008, 16 Video presentations), Management (April 28, 2008, 16 Video presentations), http://http://www.youtube.com/watch?vwww.youtube.com/watch?v=IqmrNUoiy7g&feature=IqmrNUoiy7g&feature=&p=F9071540F59BA1F0&index=0&playnext=1=&p=F9071540F59BA1F0&index=0&playnext=1