Production network Management Strategies .

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Supply Chain Management Strategies. Supply-Chain Management Strategies. Supply-Chain Management Defined Understanding Your Industry Model Business Alignment Defining Supply Chain Excellence SCM Ground Rules A Multi-Disciplinary Approach Operations, Finance, IT & eOPS.
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Store network Management Strategies

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Supply-Chain Management Strategies Supply-Chain Management Defined Understanding Your Industry Model Business Alignment Defining Supply Chain Excellence SCM Ground Rules A Multi-Disciplinary Approach Operations, Finance, IT & eOPS

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What is Supply-Chain Management? Store network is a term that portrays how associations (suppliers, makers, wholesalers, and clients) are connected together. Production network administration is an aggregate framework way to deal with dealing with the whole stream of data, materials, and administrations from crude material suppliers through manufacturing plants and distribution centers to the end client.

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Supply Chain Management Evolution Historical operational stages: From separated. Solely concentrate on development/cost. Independently oversaw capacities. Inner execution estimations. To incorporated. End-to-end handle approach. Client center, gainful development, liquidity, useful coordination.

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Consumer T3 Consumer Web Site T3 T2 OEM 1 Consumer Warehouse T3 Retailer T2 T1 Consumer T3 T2 T1 Consumer Retailer Consumer T3 T2 T1 OEM 2 Distributor/Retailer Consumer Tier 1 supplier Consumer T3 T2 Distributor Retailer Tier2 and 3 Suppliers T3 Consumer Direct Sales Force Supply Chain of a Typical Original Equipment Manufacturer

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Overall Strategy A Supply Chain is completely advanced when: Bundles of very much valued items/administrations make unassailable levels of client connection (obtaining and maintenance). Add up to inventory network expenses are at the most reduced level. The store network adds to gainful deals development by making cost/benefit points of interest. Overall powerful duty rates are at the least level. Capital productivity is at the most minimal level. The inventory network is rolled out adaptable to react to improvements speedier than contenders and to stratify benefit levels by item, client, and geology.

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Supply Chain Issues The primary motivation behind the levels in any store network is to add procedures to the item/benefit. Another reason for existing is to assimilate the contrasts between the steady supply on the upstream side and the unpredictable request on the downstream(consumer) side. The synchronization of the store network will streamline productivity along the chain.

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Matching Supply-Chains with Products Functional Products Innovative Products Efficient Supply-Chain Match Mismatch Responsive Supply-Chain Mismatch Match

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Few Major Products, Higher Volume High Volume, High Standard-ization Low Volume, One of a Kind Multiple Products, Low Volume Flexibility (High) Unit Cost (High) I. Work Shop Commercial Printer French Restaurant II. Group Heavy Equipment Coffee Shop III. Sequential construction system Automobile Assembly Burger King IV. Persistent Flow Sugar Refinery Flexibility (Low) Unit Cost (Low)

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Supply Chain Excellence New corporate condition of being: Supply chain magnificence requires compelling methodologies, supported administration responsibility, and changes in state of mind, culture, and association. All the more vitally, it requires predominant execution.

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Principles For Supply Chain Excellence Formulate a separated store network methodology by channel. For item classes, item channels, and target clients, build up a working system that, when executed, makes your store network not quite the same as the rest. Concentrate on long-and fleeting productivity, liquidity, and development.

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Principles For Supply Chain Excellence Organize your specialty unit around real procedures or channels, not capacities. Customary "storehouses" isolates work and interferes with streams which prompts wastefulness. Work cooperatively with clients, suppliers, accomplices, and outsiders to change the way operations perform, saw, and measured. Amplified store network.

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Principles For Supply Chain Excellence Invest/reinvest in production network data innovation to oversee streams end-to-end. IT ought to bolster both arranging, investigation, and execution. Contribute/reinvest in inventory network information, individuals, aptitudes, and learning. Production network practice is generally new. Change is a steady, with developments and issues continually happening. Associations must put resources into continuous preparing, tutoring, training, and input frameworks.

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Principles For Supply Chain Excellence Operate/oversee by item/channel. Think as far as item/administration packages that are sold through conceivably distinctive channels. Supply chains ought to be set up and driven by the attributes of every channel. Outsource parts of the chain for adaptability and better resource administration. Much of the time, capacities can be performed better by outsiders.

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Principles For Supply Chain Excellence Think all around… manufacture territorially… work locally. The best performing supply chains are dealt with incorporated arranging, local methodologies, and neighborhood operations. The most basic rule: Execution!!! Concentrate on it, measure it every day or constant, and give individuals the power and responsibility to exceed expectations at it.

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Supply Chain Management Approach Three things that move through the production network: Information Money Materials Three zones of basic leadership: Materials Processes Logistics Two sorts of devices: Information Technology Operational Analysis

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12 SCM Ground Rules 1. Work in adaptability. Store network capacity(push things off your books). Move settled to variable expenses. More adaptable creation strategies. Enhanced data streams. Utilize subcontractors, co-pressing, outsourcing. Operations capacity. Administration\'s will to change.

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12 SCM Ground Rules - proceeded with 2. Plan and measure precisely. Add up to cost approach – genuine edges, gainfulness by client portion. Venture wide arranging – request driven and supply-mindful; decrease process durations; react quickly(for high material cost enterprises). Dashboard idea – 5 to 7 measurements in operational cost, time and reaction, edges, client benefit. Benchmark 1 st inside, then grow

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12 SCM Ground Rules - proceeded with 3. Grow strategically isolate operations/supply chains where fitting. Elements: suppliers, makers, wholesalers, cargo forwarders, contract bearers, 3 rd - party warehousing, 3 rd - party coordinations accomplices, 3 rd - party upkeep, financing organizations, import/trade/traditions specialists. Satisfaction channels: coordinate home, coordinate business, retailers, esteem included affiliates, mass merchandisers, OEMs, benefit focuses, integrators. Arrange courses that effect procedure: fax, Internet, telephone, deals constrain, POS orders, EDI, email.

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12 SCM Ground Rules - proceeded with 4. Get incline by stressing effortlessness and speed. Esteem Stream Map Current & Future States Reduce uniqueness (parts, outlines, suppliers, procedures) and variety(transportation assets, parts suppliers). Lessen process durations and expand stock speed. Key: data. Comprehend where esteem is caught and dispose of non-esteem

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12 SCM Ground Rules - proceeded with 5. Streamline Information. Concentrate on Time to Benefit and Decision Support. ERP? Numerous littler frameworks? Take responsibility for Information. Most undiscovered: not verbalized requirements. Supplant resources with Information. E.g. stock are moved a few times before achieving last goal. Supplant physical development with advanced development of client and item data.

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12 SCM Ground Rules - proceeded with 6. Treat clients unequally: Segment and Stratify. No superfluous perfection. 7. Work Globally. Monetary, time, charge contrasts. 8. Rehearse Virtuality (joining forces) and Collaborative Manufacturing/Management. Virtuality – endeavor to pick up scale. Requires more administration, not less.

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12 SCM Ground Rules - proceeded with 9. Misuse Electronic Commerce. Caving in store network levels. E.g. circulation channel. New channel: numerous to-numerous. Supply Web – key clients can have groups of suppliers; cooperatively arrange, estimate, renew on a genuine time(or close constant) premise. Esteemed based separation – include esteem along item, data, prepare. ace channel chiefs.

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12 SCM Ground Rules - proceeded with 10. Influence People. 11. Operationalize New Product Introductions and Phaseouts. 12. Mass Customize and Postpone. Items versus profoundly adaptable items. Downstream adaptability. E.g. HP printers. Car. Amazon.

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Performance Measurement: Operational 1. Throughput the rate at which cash is produced by the framework through deals: O2C 2. Stock all the cash that the framework has put resources into buying things it means to offer 3. Working Expenses all the cash that the framework spends to transform stock into throughput

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Inventory: Bullwhip Effect The amplification of inconstancy in requests in the production network. Retailer\'s Orders Wholesaler\'s Orders Manufacturer\'s Orders Order Quantity Order Quantity Order Quantity Time A considerable measure of retailers each with little changeability in their requests… . … can prompt more noteworthy changeability for a less number of wholesalers, and… … can prompt significantly more noteworthy fluctuation for a solitary producer.

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Minimizing Waste: Inventory Hides Problems Example: By distinguishing flawed things from a merchant ahead of schedule in the generation procedure the downstream work is spared. Machine downtime Scrap Vendor Change misconducts Work in requests prepare lines Engineering plan Design (banks) redundancies overabundances Example: By distinguishing inadequate work by representatives upstream, the downstream work is spared. Choice Paperwork Inspection excesses build-up overabundances

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Cost Minimization Goal By including the thing, holding, and requesting costs together, we decide the aggregate cost bend, which thusly is utilized to discover the Q select stock request point that minimizes add up to costs. Add up to Cost

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