The Design and Analysis of Supply Chain Performance Measures in Industrial Production


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The Design and Analysis of Supply Chain Performance Measures in Industrial Production

  1. 1. The design and analysis ofSupply Chain PerformanceMeasures in industrialproduction Farhana Akter Hafez Shurrab Mohammed El Bouassami
  2. 2. Introduction Supply Chain Performance Measurement A lamp company name PT. SARSL Supply Chain Operations Reference (SCOR)
  3. 3. Supply Chain PerformanceMeasurement • Evaluate and measure supplier Supplier perfromance through supplier scorecard perfromance • Executive dashboard reports for entire measurement supplier base and supply chain performance • Define service level agreement based on Supplier contact contracts • Establish metrics and KPI for contratcs management • Track and manage certification status and compiance requirements of suppliers • Define supplier meta data • Create supplier contracts Supplier perfromance • Integrate quality, operational and scorecard functional metrics in contracts
  4. 4. Case Study PT. SARSL Compact Fluorescent Glass Lamp Special Lamp Fluorescent Lamp Lamp
  5. 5. Supply Chain Operations Reference(SCOR) SCOR Plan Source Make Deliver
  6. 6. Supply Chain Operations Reference(SCOR) Performance Matrix
  7. 7. Analytical Hierarchy Process (AHP) Problem decomposition and hierarchy construction Determine alternatives Pair-wise comparison Weight calculation Consistency check Hierarchical synthesis Determine priority for all alternatives
  8. 8. Key Performance Indicator (KPI)  There are 23 valid KPI from 44 KPI.  Then all of those KPI (23 KPI) are weighted with Analytical Hierarchy Process (AHP) concept.
  9. 9. The traffic light system The traffic light system uses three colors as indicator that is  Red for bad performance (performance score < 60).  Yellow for marginal performance (60 = performance score = 80)  Green for satisfying performance (performance score > 80),
  10. 10. ResultThere are 2 (two) KPI that need repair, priority considering importance level of weight Accuracy Forecast Techniques Product Failure in Sealing Process
  11. 11. Analysis of Supply Chain Performance Measures30.3.2013
  12. 12. •Performance Management Systems  Content  Contex  Process30.3.2013
  13. 13. Figure . Framework to analyze supply chain performance measurement system and literature classification 30.3.2013
  14. 14. Case Study: Unipart/Jaguar SCPM Analysis30.3.2013
  15. 15. Organizational context – The Unipart Group •Strategy •History •Experience •Management Methods and Philosophy •Company Size •Culture30.3.2013
  16. 16. Supply chain context (Unipart-Jaguar SC) •Industry/sector/model •Relationships/integration •Number of participant •Maturity •Products •Strategic goals •Geographical coverage/scope •Stakeholders30.3.2013
  17. 17. Process - how is the measurement carried out? •Methods and tools •System design •Metrics selections •Data capture and analysis •Metrics usage •Technology and enabling technology30.3.2013
  18. 18. Technology and enabling technology The Technology The Purpose DC’s and dealer’s inventory and replenish 1. Online Unipart Parts Replenishment System stock 2. SAP Parts Planning for Logistics Service Providers Planning and forecasting 3. SAP Extended Warehouse Management Planning and forecasting 4. SAP ERP R/3 (Initial implementation was Planning and forecasting completed in 2001) 5. Unipart Logistics System (ULS) (used currently) Planning and forecasting Internal incorporation of inventory 6. SAP Customization management algorithms into SAP 7. SAP Net Weaver platform Communication with dealers and suppliers 8. Online Electronic Parts Catalogue Online parts and track orders in real time 9. Multilingual Unidial Parts Communication Online parts and track orders in real time 10. RFID (in 2006, provided by Savi Technology and Cargo monitoring integrated with SAP) 11. GPS-based tracking trial (in 2007) Cargo monitoring Vehicle tracking and driver performance 12. Logi-Track solution analysis 13. mySAP (in 2006) IT infrastructure and outsourcing 14. Other Online Systems (under development)30.3.2013 Collection of environmental and social data
  19. 19. Content - what is measured at Unipart/Jaguar? •Metrics levels •Metrics groups •Metrics categories and sub-categories •Individual measures & metrics importance Availability Backorder and lead time Other common metrics for the whole supply: Other metrics specified to points in the supply chain: Social and environmental measures30.3.2013
  20. 20. Conclusion  Organisational and supply chain contexts  Importance of SCMPS framwork  Production problems  Better decisions30.3.2013