Transcript Document 7673600

Supply Chain Management
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Day 1 agenda
Who Am I
Syllabus
Who are you
getting up to speed / Introduction
What is SCM 1
Who am I
• Mark - casual but professional
• Work experience
– McJobs / Project Manager = purchasing
• NAPM / ISM chapter in Salem – next meeting 4/11/06
• Research – SCM is the area I am an “expert” in
– There are not many of us in the country / world
– Throughout the term my research will be part of class
• Teaching
– Because this is a new and growing area the information
changes. Which means that when I learn new things
you will as well. But it also means that the schedule is
more like an outline. Things will change.
What is SCM 2
Syllabus
Mark Pagell, Ph.D.
400E Bexell Hall
737-6036
541-431-3950 (home in Eugene)
[email protected]
Office hours:
Monday 9-10
Wednesday – 2-3
Otherwise by appointment – the pop-in is unlikely to work
out
What is SCM 3
Syllabus continued
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Course-pac is required and in the library – VR301
Rules on academic honesty will be strictly enforced
If you have special needs see me ASAP
Slides will be on the web under course materials
2 tests
– NOT multiple choice
– May be take home?
– Can cover anything we cover in class (including readings and
guests)
– Test 1 30% of grade
– Test 2 (final) 35% of grade
What is SCM 4
Syllabus
• Participation is expected – this is an elective
course
– 10% of grade
– Get either 0,5 or 10 points based on criteria in syllabusnot going to argue over a single point.
– Attendance does not equal participation
• Team presentation – you will not do this (well) at
the last minute
– 25% of grade
– Details next class
What is SCM 5
Syllabus
• Grades:
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A: 90% or above
B: 80-89.5%
C: 70-79.5%
D: 60-69.5%
F < 60%
Will discuss pluses and minuses if you want them?
• Schedule- very tentative
What is SCM 6
Who are you?
• Name
• Career goal – what do you want to do when you
leave OSU?
• What you hope to get out of this class
• Form groups
What is SCM 7
Introduction – agenda
• Supply Chain Management ?
• Traditional views of the value creation process
• Non-traditional (but becoming accepted) views of
the value creation process
• The functions that participate directly in value
creation
– operations
– purchasing
– logistics
• Note on terminology
What is SCM 8
Examples of SCM efforts
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Reading one gives many examples of activities
being undertaken to leverage the supply chain
Smart car - this is the state of the art for JIT and
SCM
– Suppliers’ plants hooked into final assembly / hang on
body panels -DFM /no paint booths / pay on build
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Wal-Mart and Fed-Ex
– Why were they able to respond to Katrina and Rita so
fast? Because of SCM
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Jet engine makers and new types of relationships
What is SCM 9
Definitions
• “The process of planning and controlling the
efficient, effective flow and storage of goods,
services, and related information from the point of
origin to the point of consumption” (CLM)
• “… the planning and control of all factors that will
have an impact on getting the correct product
where it is needed, on time and at the optimal
cost” (Daskin)
What is SCM 10
More definitions
• The supply chain encompasses all activities
associated with the flow and transformation of
goods from the raw materials stage, through to the
end user, as well as the associated information
flows. Material and information flow both up and
down the supply chain.
• Supply Chain Management is the integration of
these activities through improved supply chain
relationships, to achieve a sustainable competitive
advantage.
(Handfield and Nichols)
What is SCM 11
All this means what?
• In general many organizations are needed to create
value for a customer
• In almost all of these organizations many
functions create value for the customer
– Reading one gave examples of these activities
• Managing each function within each organization
separately is not likely to optimize the value of the
good or service the customer receives.
– Bullwhips
– HR at Boeing Wichita
What is SCM 12
There is a problem with all of these definitions
• All assume goods production
• Is this a valid assumption?
• If not why do you think the authors (and your
professor) focus on goods production?
– Hint – think of the processes and outputs needed to
make a car as compared to the processes and outputs
needed to do the venture funding for a new company.
• Key point – SCM is just as applicable to service
production as goods production
What is SCM 13
Step back
• Lets actually walk through a supply chain
What is SCM 14
The future – reverse chains
• This is a mainly a goods production issue but not
completely
– Most goods producers presently have (poorly managed)
reverse chains for returns, warranty, repairs and so on.
Obviously they would prefer not to have them.
– In the future (which is today in the EU, California and
Japan) some companies are taking all of their products
back when the product’s economic life is over
• Services – wont have to take anything physical
back but… may have to return many things. Plus
intellectual property- GreenDisk.
What is SCM 15
Why SCM ?
• Companies have started to get beyond functional
silos and NIH syndrome
• Most companies can not do everything
• Outsourcing as a pure cost play does not add much
• Purchasing becomes strategic –Chrysler
• Logistics becomes strategic – Wal-Mart
• Information systems become strategic
• Leading edge success stories
What is SCM 16
Why you should care ?
• Money - SCM graduates at the few schools with such
programs tend to be the highest paid and get the most job
offers. People come from all over the world to recruit MSU
students in this field.
– Undergrad starting salaries average $60,000 (2002)
– MBA salaries over $110,000
– PSU – claims placement at 98% last year
• Broad knowledge base - managing value creation in many
places not just one.
• Most companies do this really badly. The need has been
identified but most managers do not have the skills
(opportunity)
– Some of my recent scary research
What is SCM 17
Key functions in a supply chain
• Operations- anyplace a process is performed to
transform something
– machining and other traditional factory tasks
– calculation of credit risk in a venture capital supply
chain
• Purchasing - anytime we buy a good, service, or
information from another organization
• Logistics - moving goods and or information from
step to step in a supply chain -and to the end
customer
What is SCM 18
A note on terminology
• If you look back at our definitions of logistics and
SCM the only real difference is that definitions of
logistics do not deal with transformation
processes.
• Purchasing, logistics and operations have
traditionally been dealt with as different processes
and functions - but a supply chain view tends to
obscure these differences. So the key point is we
are talking about the flows (stuff, information and
$$) through a supply chain - regardless of what we
call it.
What is SCM 19
More terminology
• Push chains verses demand (or pull chains)
• Inbound supply chain
– Often linked with lean production (or JIT)
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Outbound Supply chain (value chain)
Enterprise systems (ERP)
EDI
Channels of Distribution
What is SCM 20
For next week
• Reading 2
• Look at the topic your group has for the
presentation. If you want to do something else on
that day get back to me ASAP
• Strategy slides already posted
What is SCM 21