Lectures 1&2: Introduction to Supply Chain Management Supply - - PDF document
Lectures 1&2: Introduction to Lectures 1&2: Introduction to Supply Chain Management Supply Chain Management Quality Assurance in Supply Chain Management (INSE 6300/4-UU) Winter 2011 Overview Overview Course Outline
Course Outline Preliminary Notions Objective and Importance of Supply
Supply Chain Activity Levels Process Views
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Instructor: Dr. J. Bentahar Office: EV7.630 Lectures: Monday, 17h45 – 20h15 Office Hours: Thursday, 10h00 – 12h00 Phone: 848-2424 ext. 5382 E-Mail: bentahar@ciise.concordia.ca
Course Web:
Lecture notes Assignment Useful links Useful information Printed with FinePrint - purchase at www.fineprint.com
Quality Assurance in Supply Chain Management:
Supply chain operations, activities, and processes Quality assurance in these processes Engineering vs. business perspective
Objectives:
To discover and learn various concepts and
To learn to apply these techniques To develop critical thinking skills
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Quality Assurance In Supply Chain Management Supply Chain Engineering Performance, Metrics, and Quality Attributes Quality Assurance System Designing the Supply Chain Network Inventory Management Supply Chain Coordination Information Technology in a Supply Chain Decision Support Systems Managing Uncertainty
1) Supply Chain Management: Strategy,
Supply chain management and quality assurance
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2) Designing & Managing the Supply
Supply chain principals and challenging issues:
3) Research Papers
Challenging and open problems Verification and Validation New developments within information
Intelligent Agents Simulations Decision Support Systems
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One individual/group assignment
15%
One in-class mid-term exam (closed book)
25%
One in-class final exam (closed book)
35%
One team project (2~3 members, presentation
25%
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Project proposal
Deadline: January 31, 2011 Team members Topic and title Abstract Main references
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Academic background Industry experience Research domains you are interested in Printed with FinePrint - purchase at www.fineprint.com
Course Outline Preliminary Notions Objective and Importance of Supply
Supply Chain Activity Levels Process Views
A supply chain consists of all parties
The supply chain includes all functions
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Supply Chain management is a set of
Supply chain management deals with
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Design Planning Product Development Inventory Control Transportation Marketing Customer Request Service Levels
Systems engineering: the art and
Definition, design, development, production
Supply chain management and systems
Producing high quality products fulfilling
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Systems engineering: a management technology that
Systems engineering focuses on:
Defining customer needs and required functionality, Documenting requirements, Proceeding with design synthesis and system validation
Like systems engineering, Supply chain management
Product Use, Phase-out, and Disposal Production and/or Construction Detail Design and Development Conceptual and Preliminary Design
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Three flows: material, information, financial Downstream
Material
Parts and products
Information
Production capacity, delivery schedule
Financial
Invoices, credit, funds
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Complex supply chain network
Ex) worldwide suppliers
Complex product structure
Ex) product contains many hardware and software components
Decentralized control
Increasing pressure for customer service Multiple sources of uncertainty and variability
Ex) demand, supply, and process variability
Uncertainty
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Different stages in the supply chain have different
Objective of suppliers: manufacturers purchase large
quantities with flexible delivery date
Manufacturers need to be flexible to their customers’ need
Manufacturers objectives of making large production
conflicts with the objective of warehouses and distribution centers to reduce inventory
Uncertainty is the most significant threats to
Three main sources of uncertainty in supply
Demand variability
Ex) difficulty in forecasting sales
Process uncertainty
Ex) unexpected downtimes and yield losses
Supply uncertainty
Ex) supplier deliveries are late
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One of the most important issues in
Matching supply with demand
Firms that are better at matching supply
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Supply Chain Quality Quality of Design Quality of Conformance Product Design Supply Chain Process Design Supply Chain Control Supply Chain Monitoring
Quality Planning (Quality Assurance) Quality Control Quality Improvement
Quality issues Quality attributes Managing uncertainty Managing inventory Designing the supply chain network
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Network Planning Inventory Control Distribution Strategies Product Design Outsourcing Strategies Integration & Partnering Information Technology
Decision- Support Sys.
Network Planning: optimization aspect Inventory Control: minimizing inventory
Distribution Strategies: relationships
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Supply Chain Integration and Strategic
Outsourcing and Procurement Strategies:
Information Technology and Decision-
Course Outline Preliminary Notions Objective and Importance of Supply
Supply Chain Activity Levels Process Views
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Maximize overall value created Supply chain value: difference between what
Value is correlated to supply chain profitability
Example: Dell receives $2000 from a customer for a
Supply chain incurs costs (information, storage,
Difference between $2000 and the sum of all of these
Supply chain profitability is total profit to be shared
Supply chain success should be measured by total
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Sources of supply chain revenue: the
Sources of supply chain cost: flows of
Supply chain management is the
Course Outline Preliminary Notions Objective and Importance of Supply
Supply Chain Activity Levels Process Views
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Decisions about the number, locations, and capacity of warehouses, plants
Purchasing and production decisions, Inventory and transportation policies
Day-to-day decisions: scheduling, truck loading, …
Supply chain strategy or design Supply chain planning Supply chain operation
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Decisions about the structure of the supply chain and
Strategic supply chain decisions
Locations and capacities of facilities Products to be made or stored at various locations Modes of transportation Information systems
Supply chain design must support strategic
Supply chain design decisions are long-term and
Definition of a set of policies that govern
Fixed by the supply configuration from
Starts with a forecast of demand in the
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Planning decisions:
Which markets will be supplied from which
Planned buildup of inventories Subcontracting, backup locations Inventory policies Timing and size of market promotions
Must consider in planning decisions demand
Time horizon is weekly or daily Decisions regarding individual customer orders Supply chain configuration is fixed and operating
Goal is to implement the operating policies as
Allocate orders to inventory or production, set order
Much less uncertainty (short time horizon)
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Course Outline Preliminary Notions Objective and Importance of Supply
Supply Chain Activity Levels Process Views
Cycle view: processes in a supply chain are
Push/Pull (Speculate/React) view: processes
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Each cycle occurs at the interface between two
Customer order cycle (customer-retailer) Replenishment cycle (retailer-distributor) Manufacturing cycle (distributor-manufacturer) Procurement cycle (manufacturer-supplier) Cycle view clearly defines processes involved
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Supply chain processes fall into one of two
Pull: execution is initiated in response to a
Push: execution is initiated in anticipation of
Push/pull boundary separates push
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Useful in considering strategic decisions
Can combine the push/pull and cycle views
Dell (build-to-order strategy)
The relative proportion of push and pull
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Customer Relationship Management (CRM):
Internal Supply Chain Management (ISCM): Internal
Supplier Relationship Management (SRM): Interface
CRM: Market analysis; pricing strategies;
ISCM: Strategic planning; Demand planning
SRM: Negotiation strategies; design
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Lectures 1&2:
Chapter 1 of Supply Chain Management Chapter 1 of Designing & Managing the
Lecture 3:
Chapter 2 of Supply Chain Management Printed with FinePrint - purchase at www.fineprint.com