15.2 Single - Factor (One - Way) Analysis of Variance
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Transcript 15.2 Single - Factor (One - Way) Analysis of Variance
Supply Chain Management
OPIM 5110 – Lecture # 6
Instructor: Jose Cruz
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Supply Chain
All activities associated with the flow
and transformation of goods and
services from raw materials to the end
user, the customer
A sequence of business activities
from suppliers through customers
that provide the products, services,
and information to achieve customer
satisfaction
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The Supply Chain
Information
Suppliers
Producers
Distributors
Customers
Materials,
parts, subassemblies,
and
services
Finished
goods, end
products
and services
Package
and delivery
Total
satisfaction
with quality,
price,
delivery, and
service
Inventory
Products
and
Services
Products
and
Services
Products
and
Services
Inventory
Inventory
Cash
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Supply Chain Management
Synchronization of activities
required to achieve maximum
competitive benefits
Coordination, cooperation, and
communication
Rapid flow of information
Vertical integration
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Supply Chain Uncertainty
Forecasting, lead times, batch
ordering, price fluctuations, and
inflated orders contribute to
variability
Inventory is a form of insurance
Distorted information is one of
the main causes of uncertainty
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Information in the
Supply Chain
Centralized coordination of
information flows
Integration of transportation,
distribution, ordering, and production
Direct access to domestic and global
transportation and distribution
channels
Locating and tracking the movement
of every item in the supply chain
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Information in the
Supply Chain
Consolidation of purchasing from all
suppliers
Intercompany and intracompany
information access
Data interchange
Data acquisition at the point of origin
and point of sale
Instantaneous updating of inventory
levels
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Electronic Business
Replacement of physical processes
with electronic ones
Cost and price reductions
Reduction or elimination of
intermediaries
Shortening transaction times for
ordering and delivery
Wider presence and increased visibility
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Electronic Business
Greater choices and more information for
customers
Improved service
Collection and analysis of customer data
and preferences
Virtual companies with lower prices
Leveling the playing field for smaller
companies
Gain global access to markets & customers
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Electronic Data Interchange
Computer-to-computer exchange of
business documents in a standard
format
Quick access, better customer service,
less paperwork, better communication,
increased productivity, improved
tracing and expediting, improves billing
and cost efficiency
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Bar Codes
Computer readable codes attached to
items flowing through the supply chain
Generates point-of-sale data which is
useful for determining sales trends,
ordering, production scheduling, and
deliver plans
1234
5678
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The Internet
Instant global access to organizations,
individuals, and information sources
Fundamentally changes the way
organizations do business
Removed geographic
barriers
Adds speed and accessibility
to the supply chain
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Intranets and Extranets
Intranets are internet-like networks that
operate within a single organization
Extranets are intranets that can be
connected to the global internet
Difference is in who has access to the
system
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IT Issues
Increased benefits and sophistication
come with increased costs
Efficient web sites do not necessarily
mean the rest of the supply chain will
be as efficient
Security problems are very real
Partnership and trust are important
elements that may be new to business
relationships
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Suppliers
Purchased materials account for about
half of manufacturing costs
Materials, parts, and service must be
delivered on time, of high quality, and
low cost
Suppliers should be integrated into
their customers’ supply chains
Partnerships should be established
On-demand delivery (JIT) is a frequent
requirement
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Sourcing
Relationship between customers and
suppliers focuses on collaboration and
cooperation
Outsourcing has become a long-term
strategic decision
Organizations focus on core
competencies
Single-sourcing is
increasingly a part
of supplier relations
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E-Procurement
Business-to-business commerce
conducted on the Internet
Benefits include lower transaction
costs, lower prices, reduce clerical labor
costs, and faster ordering and delivery
times
Currently used more for indirect goods
E-Marketplaces service industry-specific
companies and suppliers
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Figure 7.3 The Wal-Mart
Supply Chain
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Distribution
The actual movement of products
and materials between locations
Handling of materials and products at
receiving docks, storing products,
packaging, and shipping
Often called logistics
Driving force today
is speed
Particularly important
for Internet dot-coms
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Figure 7.5 Order Fulfillment
at Amazon.com
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Distribution Centers
and Warehousing
DCs are some of the largest business
facilities in the United States
Trend is for more frequent orders in
smaller quantities
Flow-through facilities and automated
material handling
Final assembly and product
configuration may be done at the DC
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Warehouse Management
Systems
Highly automated systems
Controls item putaway, picking,
packing, and shipping
Transportation management,
order management, yard
management, labor management,
warehouse optimization
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Vendor-Managed Inventory
Manufacturers generate orders, not
distributors
Stocking information is accessed
using EDI
A first step towards supply chain
collaboration
Increased speed, reduced errors, and
improved service
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Collaborative Distribution
and Outsourcing
Collaborative planning, forecasting, and
replenishment (CPFR)
Internet-based exchange of data and
information
Significant decrease in inventory levels
and more efficient logistics
Companies focus on core competencies
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Transportation
Important element, often
overlooked
Common methods are railroads,
trucking, water, air, intermodal,
package carriers, and pipelines
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Railroads
150,000 miles in US
Low cost, high-volume
Improving flexibility
intermodal service
double stacking
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Trucking
Most used mode in US
Flexible, small loads
Consolidation,
Internet load match sites
Part of TQM supplier-customer
relationship
Single sourcing reduces number of
trucking firms serving a company
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Air
Rapidly growing segment of
transportation industry
Lightweight, small items
Quick, reliable,
expensive
Major airlines
and US Postal Service,
UPS, FedEx, DHL
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Package Carriers
FedEx, UPS, US Postal Service, DHL
Significant growth driven by
e-businesses
Use several modes
of transportation
Expensive
Fast and reliable
Innovative use of
technologies
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Intermodal
Combination of several modes of
transportation
Most common are truck/rail/truck
and truck/water/rail/truck
Enabled by the
use of containers
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Water
One of oldest means of transport
Low-cost, high-volume, slow
Bulky, heavy and/or large items
Standardized shipping containers
improve service
The most common
form of international
shipping
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Pipelines
Primarily for oil & refined oil
products
Slurry lines carry coal or kaolin
High capital investment
Low operating costs
Can cross difficult terrain
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Internet Transportation
Exchanges
Bring together shippers and carriers
Initial contact, negotiations,
auctions
Typically only one
form of transportation,
intermodal exchanges
have been difficult to develop
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