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 Ω Quality Assurance in Supply Chain Management (INSE 6300/4-UU) Winter 2011 Ω Overview Overview � Course Outline � Preliminary Notions � Objective and Importance of Supply Chain � Supply Chain Activity Levels � Process Views � Printed with FinePrint - purchase at www.fineprint.com

Ω Course Outline Course Outline � Instructor: Dr. J. Bentahar � Office: EV7.630 � Lectures: Monday, 17h45 – 20h15 � Office Hours: Thursday, 10h00 – 12h00 � Phone: 848-2424 ext. 5382 � E-Mail: b entahar@ciise.concordia.ca � Ω Course Outline Course Outline � Course Web: http://www.ciise.concordia.ca/~bentahar/inse6300.html � Lecture notes � Assignment � Useful links � Useful information � Printed with FinePrint - purchase at www.fineprint.com

Ω Software Systems Procurement � Ω INSE 6300/4- -UU UU INSE 6300/4 � 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 techniques related to supply chain and quality assurance � To learn to apply these techniques � To develop critical thinking skills � Printed with FinePrint - purchase at www.fineprint.com

Ω INSE 6300/4- -UU UU INSE 6300/4 Quality Assurance In Supply Chain Management Performance, Supply Chain Quality Assurance Metrics, Engineering System and Quality Attributes Information Decision Designing the Supply Chain Inventory Managing Technology in Support Supply Chain Coordination Management Uncertainty a Supply Chain Systems Network � Ω Textbooks Textbooks � 1) Supply Chain Management: Strategy, Planning, and Operation. (4th Edition), 2009 � Supply chain management and quality assurance principals: supply chain performance, drivers, and metrics, supply chain network design, planning demand, managing inventories, managing uncertainty, and coordination � Printed with FinePrint - purchase at www.fineprint.com

٠Textbooks Textbooks � 2) Designing & Managing the Supply Chain: Concepts, Strategies, and Case Studies. 2006 � Supply chain principals and challenging issues: inventory management, supply chain integration, Managing uncertainty, information technology and decision support systems for supply chain management � ٠Textbooks Textbooks � 3) Research Papers � Challenging and open problems � Verification and Validation � New developments within information technology: � Intelligent Agents � Simulations � Decision Support Systems �� Printed with FinePrint - purchase at www.fineprint.com

٠Requirements and Grading Requirements and Grading � 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 + report) � 25% �� ٠Important dates Important dates Project proposal January 31, 2011 Assignment February 07, 2011 Mid-term February 14, 2011 Project presentation March 28, 2011 Final exam April 04, 2011 Project report April 11, 2011 �� Printed with FinePrint - purchase at www.fineprint.com

٠Project Project � Project proposal � Deadline: January 31, 2011 � Team members � Topic and title � Abstract � Main references �� ٠Question Question � Please describe briefly about yourself: � Academic background � Industry experience � Research domains you are interested in �� Printed with FinePrint - purchase at www.fineprint.com

٠Overview Overview � � Course Outline � Preliminary Notions � Objective and Importance of Supply Chain � Supply Chain Activity Levels � Process Views �� ٠Definitions Definitions � A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request � The supply chain includes all functions involved in receiving and filling a customer request (Supply Chain Management) �� Printed with FinePrint - purchase at www.fineprint.com

Ω Definitions Definitions � Supply Chain management is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize “systemwide” costs while satisfying service level requirements (Designing & Managing the Supply Chain) �� Ω Definitions Definitions � Supply chain management deals with the control of materials, information, and financial flows in a network consisting of suppliers, manufacturers, distributors, and customers (Stanford Supply Chain Forum Website) �� Printed with FinePrint - purchase at www.fineprint.com

The Supply Chain The Supply Chain ٠�� The Supply Chain Network The Supply Chain Network ٠�� Printed with FinePrint - purchase at www.fineprint.com

٠Supply Chain Stages or Parts Supply Chain Stages or Parts �� ٠Supply Chain Example: Printer Supply Chain Example: Printer �� Printed with FinePrint - purchase at www.fineprint.com

٠Supply Chain Considerations Supply Chain Considerations Product Planning Design Development Supply Chain Customer Service Request Levels Management Transportation Inventory Marketing Control �� Supply Chain Management: A Supply Chain Management: A ٠Systems Engineering Approach Systems Engineering Approach � Systems engineering: the art and science of creating a product or service based on phased efforts: � Definition, design, development, production and maintenance activities � Supply chain management and systems engineering have the same objective: � Producing high quality products fulfilling the customer requirements �� Printed with FinePrint - purchase at www.fineprint.com

Supply Chain Management: A Supply Chain Management: A ٠Systems Engineering Approach Systems Engineering Approach � Systems engineering: a management technology that controls a total system life cycle process � 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 considers both the business and technical needs of all customers �� The Systems Engineering Life The Systems Engineering Life ٠Cycle Cycle Acquisition Phase Utilization Phase Conceptual and Detail Design Production Product Use, Preliminary and and/or Phase-out, and Design Development Construction Disposal NEED �� Printed with FinePrint - purchase at www.fineprint.com

٠Flows in a Supply Chain Flows in a Supply Chain Information Product Customer Funds �� ٠Flows in a Supply Chain Flows in a Supply Chain � Three flows: material, information, financial � Downstream � Material � Parts and products � Information � Production capacity, delivery schedule � Financial � Invoices, credit, funds �� Printed with FinePrint - purchase at www.fineprint.com

Challenges in Supply Chain Challenges in Supply Chain ٠Management Management � Complex supply chain network � Ex) worldwide suppliers � Complex product structure � Ex) product contains many hardware and software components � Decentralized control Ex) functional teams focused on narrow functional goals � � Increasing pressure for customer service � Multiple sources of uncertainty and variability � Ex) demand, supply, and process variability �� Challenges in Supply Chain Challenges in Supply Chain ٠Management Management � Uncertainty �� Printed with FinePrint - purchase at www.fineprint.com

Challenges in Supply Chain Challenges in Supply Chain Ω Management Management � Different stages in the supply chain have different conflicting objectives: � Objective of suppliers: manufacturers purchase large quantities with flexible delivery date � Manufacturers need to be flexible to their customers’ need � � � � Suppliers goals are in direct conflict with the manufacturers objectives � Manufacturers objectives of making large production conflicts with the objective of warehouses and distribution centers to reduce inventory �� Challenges in Supply Chain Challenges in Supply Chain Ω Management Management � Uncertainty is the most significant threats to supply chain quality � Three main sources of uncertainty in supply chains: � Demand variability � Ex) difficulty in forecasting sales � Process uncertainty � Ex) unexpected downtimes and yield losses � Supply uncertainty � Ex) supplier deliveries are late �� Printed with FinePrint - purchase at www.fineprint.com

٠Matching Supply with Demand Matching Supply with Demand � One of the most important issues in quality supply chain management � Matching supply with demand � Firms that are better at matching supply with demand enjoy a significant competitive advantage �� Order Variations Order Variations ٠�� Printed with FinePrint - purchase at www.fineprint.com