Group 4 Supply Chain Synchronisation For Effective Operations Planning (Rev)


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Group 4 Supply Chain Synchronisation For Effective Operations Planning (Rev)

  1. 1. <ul><ul><li>Supply Chain Synchronization for Effective Operation Planning </li></ul></ul>Group 4 Lek Yen Hoon Koh Mei York Zheng Liyue
  2. 2. CONTENTS Introduction of Supply Chain Management Eight Dimensions of Supply Chain Synchronisation Operation Planning
  3. 3. <ul><li>Supply chain management (SCM) is the process of planning , implementing , and controlling the operations of the supply chain as efficiently as possible. </li></ul><ul><li>Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption. </li></ul>
  4. 4. <ul><li>Supply Chain Synchronisation is becoming the most important way to develop higher levels of supply chain competitive advantage. </li></ul><ul><li>To achieve the highest level of supply chain synchronization benefit, you must address eight different dimensions of the supply chain. </li></ul>
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  6. 6. <ul><li>Educate the people. Explain in simple terms what synchronization is, what it intends to achieve, how it intends to achieve it and what their part is in it. </li></ul><ul><li>Continue direct communication throughout the project to help develop linkages between employees of participating firms. </li></ul><ul><li>Facilitate about data and ongoing communication is critical to ensure product, ordering and systems information are correctly updated to support the coordinated scheduling. </li></ul>
  7. 7. <ul><li>Develop the supply chain schedule </li></ul><ul><li>Have realistic expectations </li></ul><ul><li>Map the current process </li></ul><ul><li>Allow for variances </li></ul><ul><li>Err on the safe side </li></ul><ul><li>Overlay volume and density information </li></ul><ul><li>Inform the participants </li></ul><ul><li>Collecting data is streamlining the process to minimize additional work. </li></ul><ul><li>Data collection should be a by product of the supply chain process, not activity unto itself. </li></ul>
  8. 8. <ul><li>Order Timing – Map and understand current supply chain flows and timings by developing a new, optimized supply chain synchronization model. </li></ul><ul><li>Unitization - taking production at the locations and rates it is most efficient to take it, without disruption of the scheme by the legal rights inhering in competing properties </li></ul><ul><li>This is partially completed by the barcode symbology (or RFID in advanced cases) and the purchase order. </li></ul><ul><li>These two key data streams can be easily integrated into the supply chain synchronization processes. </li></ul>
  9. 9. <ul><li>Collect information about each exception for monitoring and improvement purposes </li></ul><ul><li>Exceptions should be manageable to prevent flaws in the information used to build the synchronized system </li></ul><ul><li>The base level of service required is to determine the required service level or delivery lead time that is acceptable </li></ul><ul><li>Once this determination is made, transportation mode and optimal load mix density will be selected </li></ul>
  10. 10. <ul><li>Rules and methods for ongoing adjustment and optimization of the process should be defined </li></ul><ul><li>Integrate the ability to switch to varying size and capacity of containers </li></ul><ul><li>Careful monitoring of these optimization opportunities will make the appropriate timing for such initiatives readily apparent </li></ul>
  11. 11. <ul><li>Operations Planning is a process where the executives of an organization gather monthly to review previous performance against plans and if necessary create new plans. </li></ul><ul><li>The input to the process is the forecast and the output of the S&OP is the production plan, the demand plan, as well as the many other plans that are derived from these. </li></ul><ul><li>The objective of Operations Planning is to arrive at a business &quot;Game Plan&quot; to help manage and allocate critical resources to meet the needs of the customer at the least cost to do so. </li></ul><ul><li>S&OP works on pre-agreed Key Performance Indicators. It helps the Managers to identify the area for improvements through these KPI and track the plan vs. actual performance. </li></ul>
  12. 12. <ul><li>Improved customer service </li></ul><ul><li>Reduced inventory </li></ul><ul><li>Lower manufacturing & distribution costs </li></ul><ul><li>Better control of overall business performance </li></ul><ul><li>Increased team work within and across functions </li></ul>
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  15. 15. <ul><li>Supply Chain tends to focus on purchasing and procurement, but not necessarily so. It can include materials, inventory, and production planning. </li></ul>