PowerPoint Presentations 13
Download
Report
Transcript PowerPoint Presentations 13
13.1
Chapter 13
Supply chain planning and control
Pearson Education Ltd. Arnos Design
13.1
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
13.2
Supply chain planning and control
Operations
strategy
Design
Supply chain
planning and control
Improvement
Planning and
control
The market requires…
specified time, quantity and
quality of products and
services
The operation supplies…
the coordinated delivery of
products and services
13.2
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
13.3
Key operations questions
In Chapter 13 – Supply chain planning and control – Slack
et al. identify the following key questions:
• What is supply chain management?
• What are the activities of supply chain management?
• What are the types of relationship between operations in
supply chains?
• How do supply chains behave in practice?
• How can supply chains be improved?
13.3
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
13.4
What is supply chain management?
‘Supply chain management is the management of
the interconnection of organizations that relate to
each other through upstream and downstream
linkages between the processes that produce
value to the ultimate consumer in the form of
products and services’.
13.4
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
13.5
Supply chain planning and control
…is concerned with managing the flow of materials and information between a
string of operations, that form the strands or ‘chains’ of a supply network
Flow between processes
Flow between processes
Flow between processes
Supply network
management concerns
flow between operations
Flow between processes
Flow between processes
Flow between processes
Flow between processes
Supply chain
management concerns
flow between a string of
operations
13.5
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
13.6
Supply chains management is concerned with the flow of
information and the flow of products and services
•
•
•
•
•
‘Upstream’ flow of
customer
Requirements
Flow between
processes
Long-term plans and requirements
Market research information
Individual orders
Payment
Potential new products and services.
Flow between
processes
Flow between
processes
Consumer
Operation 1
Operation 2
• Products and services
• New products and services
• Delivery information
• Payment request/Credit.
13.6
Operation 3
‘Downstream’ flow of
products and services for
customer
Fulfilment
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
13.7
Supply chain planning and control
Second tier
supplier
First tier
supplier
First tier
customer
Supply side
Information
flow
Physical
flow
Purchasing and
supply
management
Second tier
customer
End
customer
Demand
side
Physical distribution
management
Logistics
Materials management
Supply chain management
13.7
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
13.8
Taking a customer perspective of supply performance
can lead to very different conclusions
Customer
requirements
100
Customer
satisfaction
N
8
20
Product/
Y
service
80
appropriate?
Product/
service
available?
N
N
10
Y
70
40
N
50
Y
Meets price
and delivery 20
requirements?
N
Y
1
10
N
1
9
Y
10
Customer
orders?
8
N
Y
10
N
Y
Received
as
Produced as
N
promised?
9 Y promised?
1
From the operation’s perspective
90% satisfaction
Y
From the customers perspective
8
8% satisfaction
13.8
1
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
13.9
The purchasing function brings together the operation
and its suppliers
Suppliers
Purchasing function
Prepare
Requests
quotation for
specification,
price, delivery,
etc.
Request
for
quotations
Select
supplier(s)
Quotations
Produce
products
and services
Order
The operation
Request for
products
and services
Demand
from
customers
Liaison
between
purchasing
and the
operation
Prepare
purchase
order
Receive
products
and services
Supply to
customers
Deliver
13.9
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
13.10
Factors for rating alternative suppliers
Short-term ability to supply
Longer-term ability to supply
•Range of products or services
provided
•Potential for innovation
•Quality of products or services
•Ease of doing business
•Responsiveness
•Willingness to share risk
•Dependability of supply
•Long-term commitment to supply
•Delivery and volume flexibility
•Ability to transfer knowledge as
well as products and services
•Total cost of being supplied
•Technical capability
•Ability to supply in the required
quantity
•Operations capability
•Financial capability
•Managerial capability
13.10
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
13.11
Weighted supplier selection criteria for a hotel chain
Factor
Weight
Supplier A score Supplier B score
Cost performance
10
8 (8 x 10 = 80)
5 (5 x 10 = 50)
Quality record
10
7 (7 x 10 = 70)
9 (9 x 10 = 90)
Delivery speed
promised
7
5 (5 x 7 = 35)
5 (5 x 7 = 35)
Delivery speed
achieved
7
4 (4 x 7 = 28)
8 (8 x 7 = 56)
Dependability record
8
6 (6 x 8 = 48)
8 (8 x 8 = 64)
Range provided
5
8 (8 x 5 = 40)
5 (5 x 5 = 25)
Innovation capability
4
6 (6 x 4 = 24)
9 (9 x 4 = 36)
325
356
Total weighted score
13.11
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
13.12
Supply chain relationships
To…
Business
Business
Consumer
Business to business (B2B)
Business to consumer (B2C)
• Most common, all but the last
link in the supply chain
• Retail operations
• Catalogue operations, etc.
• E-commerce examples:
• E-commerce examples:
– EDI networks
– Business information
exchanges.
– Internet retailers
– Amazon.com, etc.
From…
Consumer
Consumer to consumer (C2B)
or ‘peer to peer (P2P)
Consumer to business (C2B)
• Consumers ‘offer’,
business responds
• Trading ‘swap’ and auction
transactions
• E-commerce examples:
– Some airline ticket operators
• E-commerce examples:
– Priceline.com, etc.
13.12
– Specialist ‘collector’ sites
– Ebay.com, etc.
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
Do
everything
Types of supply relationship
Vertically
integrated
operation
Traditional supply
management
Do
nothing
Do
everything
important
The character of internal operations activity
13.13
‘Partnership’
supply
management
Virtual
spot
trading
Transactional –
many suppliers
13.13
Long-term
virtual
operation
Type of inter-firm contact
Close –
few suppliers
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
13.14
Elements of process partnership relationships
Attitudes
Trust
Sharing
success
Long-term
expectations
Multiple
points of
contact
Joint
learning
Closeness of
relationship
Joint coordination of
activities
Few
relationships
Information
transparency
Joint problem
solving
Dedicated
assets
13.14
Actions
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
13.15
The effects of supply chain compression
Supply chain time compression
Schedule
changes impact
market faster
so can
respond to
market changes
better
Forecasts
made closer to
demand time
Defects are
detected faster
so improved
forecasts
so easier to
improve quality
New products
and service
faster to market
so fewer lost
sales from
delayed launch
so reduced
risk of
obsolescence
so revenues
are maximized
so less
discounted
sales
so less need for
safety stocks
so revenues
are maximized
so reduced
stockholding
costs
so reduced
wastage costs
Improved profitability
13.15
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
13.16
The bullwhip effect
3rd LEVEL
SUPPLIER
2nd LEVEL
SUPPLIER
1st LEVEL
SUPPLIER
ORIGINAL
EQUIPMENT
MFG.
Prodn. Stock
Prodn. Stock
Prodn. Stock
Prodn. Stock
1
2
100
3
4
180
60
100
100
100
60
60
120
120
90
5
100
6
95
20
3
90
100
100
100
80
80
100
100
95
90
95
95
95
95
95
100
60
120
2
95
100
100
100
90
90
95
95
95
95
95
95
95
95
95
100
100
100
95
95
95
95
95
95
95
95
95
95
95
95
95
95
95
100
80
100
1
100
90
95
95
OEM
100
95
95
95
95
95
MARKET
ALL OPERATIONS HOLD ONE PERIODS STOCK
13.16
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
13.17
The bullwhip effect (Continued)
1
2
3rd LEVEL
SUPPLIER
2nd LEVEL
SUPPLIER
1st LEVEL
SUPPLIER
ORIGINAL
EQUIPMENT
MFG.
Prodn. Stock
Prodn. Stock
Prodn. Stock
Prodn. Stock
100
100
100
100
100
100
100
100
100
100
100
100
100
95
3
4
105
95
5
105
6
95
3
2
1
OEM
MARKET
ALL OPERATIONS HOLD ONE PERIODS STOCK
13.17
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
13.18
The bullwhip effect (Continued)
Manufacturer’s
orders to its
suppliers
0
Supplier
13.18
Time
Wholesaler’s
orders to
manufacturer
0
Store’s orders to
wholesaler
0
Time
Manuf
acturer
Whole
saler
Time
Sales from
store
0
Retail
store
Time
Consumers
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
13.19
Supply chain dynamics
Supply chains with different end
objectives need to be managed in
different ways
13.19
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
13.20
Matching the supply chain with market requirements
Nature of demand
Functional products
Innovative products
13.20
Low cost – Low throughput times
High utilization – Low utilization
Minimum inventory – Deployed inventory
Low cost suppliers – Flexible suppliers
Supply chain objectives
Efficient
Responsive
Predictable –
Few changes –
Low variety –
Price stable –
Long lead-times –
Low margin –
Unpredictable
Many changes
High variety
Price markdowns
Short lead-times
High margins
Lean supply
chain
management
Mismatch
Mismatch
Agile supply
chain
management
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
13.21
Where is the inventory?
Customer responsive supply
Manufacturer
Information
Supplier
Products
Depot
Depot
Outlets
13.21
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010
13.22
Where is the inventory? (Continued)
Efficient fast throughput supply
Depot
Products
Supplier
Manufacturer
Information
Depot
Outlets
13.22
Slack, Chambers and Johnston, Operations Management, 6th Edition,
© Nigel Slack, Stuart Chambers, and Robert Johnston 2010