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Delivering World Class Supply
   Chain Learning in Five Continents




www.logisticslearningalliance.com
+44 (0) 1530 276590
LLA is........
A group of people who have been working together,
  delivering Logistics/Supply Chain management
  performance improvement programmes for the last
  15 years.

LLA was formed six years ago with the management
 buy out of the CILT qualifications delivery element of
 People Development Group.


              www.logisticslearningalliance.com
              +44 (0) 1530 276590
What does LLA Do?
— Train in logistics and supply chain management


— Courses can be generic (off the shelf) or bespoke


— Courses can lead to CILT qualifications


— Ethos is to provide new or improved skills for
  application in the workplace

              www.logisticslearningalliance.com
              +44 (0) 1530 276590
The LLA Approach


—Knowledge or competence?




        www.logisticslearningalliance.com
        +44 (0) 1530 276590
Knowledge
— Knowledge based learning focuses on the theory rather than the
  practical. It adds no value unless the knowledge can be applied in
  the workplace. You don t get paid for what you know you get paid
  for what you do with what you know!

— With the ease of access of vast amounts of information on the
  internet, the importance of an individual s knowledge retention
  continues to decline.

— Studies have shown that post examination knowledge retention is as
  low as 15% - there can be precious little business benefit in this
  approach.


                   www.logisticslearningalliance.com
                   +44 (0) 1530 276590
Competence Based Learning
— Provides skills and expertise that can be applied in
  workplace making a tangible difference to the
  operation.

— Learning by doing    like
  learning to drive a car.
  Could you learn to safely
  drive from instructions
  in a book?

              www.logisticslearningalliance.com
              +44 (0) 1530 276590
LLA Believes......

— Training is of no value unless it brings about a
  change in the workplace..... Either by improving an
  existing process or by providing instruction and
  guidance on the development of a new process




              www.logisticslearningalliance.com
              +44 (0) 1530 276590
LLA training......
......leads to participants

— Doing different things
or
— Doing things different (sic)




                www.logisticslearningalliance.com
                +44 (0) 1530 276590
How Do We Do It?
— Through SCIL Plc - a fictitious organisation in which
  learners take on the role of the management of an
  underperforming department. It could be the
  warehouse, inventory or transport operation.
— Equally the learner may be called up to address
  underperformance throughout the supply chain




              www.logisticslearningalliance.com
              +44 (0) 1530 276590
SCIL Plc             A Case Study Simulation
— SCIL Plc may be a fictitious organisation but it
  accurately replicates the real world in its processes,
  personalities, product information and in its plethora
  of statistical data. The company has recently formed
  from the merger of two organisations, Air-flo and Bi-
  flo each with its own strengths and weaknesses.
  Therefore, in addition to a complex range of
  strategic, tactical and operational issues there are,
  within the simulation, issues involving the
  integration of two organisations with different
  cultures, attitudes and supply chains.
— Supported by a specialist coach, students take on
  the management of an underperforming
  department and demonstrate their competence by
  completing a series of tasks designed to lead to an
  improvement in functional performance.
                 www.logisticslearningalliance.com
                 +44 (0) 1530 276590
Induction
Learners new recruits to SCIL Plc - go through a comprehensive
   induction consisting of a series of presentations from the board of
   directors.
These presentations provide
the strategic context to the
management role the learner
is to perform



 .........we recognise that we must also become more innovative in our
product development, exploiting greater use of new technology.
Fundamentally, we must also improve product availability, which
will mean a greater focus on supply chain management.
Historically, neither business has been good in this area,
so strategically it represents our biggest challenge,.....

                                www.logisticslearningalliance.com
                                +44 (0) 1530 276590
A Complete Hierarchy of Management

                                                                            You can access
                                                                            information
                                                                            about the
                                                                            operation, the
                                                                            culture and the
                                                                            current supply
                                                                            chain issues of
 Hi, I'm Shigeru Kozu, Managing
Director of Air-Flo. I began my                                             SCIL Plc by
career with Air-Flo just over 3 years
ago as the Production Director,
                                                                             meeting any of
where I had responsibility for all                                          the individuals in
the manufacturing operations of
the company. At that time the                                               the management
factory at C8 was experiencing                                              chart.
some major problems with quality,
waste and erratic lead times.
Initially, most of my time was spent
sorting out this site, by
implementing Just in Time and
some of the lean thinking
techniques          .
                                        www.logisticslearningalliance.com
                                        +44 (0) 1530 276590
A Multi-Site Organisation
                                           You can access
                                           information
                                           about the
                                           operation of any
                                           of the
                                           manufacturing,
                                           storage or
                                           distribution
                                           facilities by
                                            visiting the site
                                           of your choice




       www.logisticslearningalliance.com
       +44 (0) 1530 276590
Statistical Information




        www.logisticslearningalliance.com
        +44 (0) 1530 276590
An International Supply Chain
                                            SCIL Plc is based in
                                            Homeland but it has
                                            customers and
                                            suppliers in
                                            Alphaland, Betaland,
                                            Epsilonland and
                                            Forexland and
                                            therefore has a truly
                                            international supply
                                            chain
        www.logisticslearningalliance.com
        +44 (0) 1530 276590
LLA Generic Courses
— Briefings


— Operational Master Classes


— Planning Master Classes




              www.logisticslearningalliance.com
              +44 (0) 1530 276590
Briefings
— An introduction to the                                — Briefings are available in:
  fundamentals of logistics
  and supply chain                                      — Supply Chain
  understanding.
                                                        — Inventory
— Briefings provide essential
  knowledge on how each                                 — Production
  function fits into the supply                         — Warehouse
  chain, how they contribute
                                                        — Sourcing
  to supply chain
  performance and the                                   — Transport
  impact that functional
  activity can have
  elsewhere in the supply
  chain

                    www.logisticslearningalliance.com
                    +44 (0) 1530 276590
Operational Master Classes
— Ideal for first line                                   — Operational Master
  managers/supervisors -                                   Classes are available in:
  people who have a
  demanding operational                                  — Inventory,
  role but who are not
  involved in planning
                                                         — Sourcing
  issues.

                                                         — Warehouse
— Provide part of curriculum
  of the level three
  Certificate in Logistics                               — Transport
  and Transport
                                                         — Production
                     www.logisticslearningalliance.com
                     +44 (0) 1530 276590
Planning Master Classes
— Intended for middle                             — Planning Master Classes are
  managers whose operational                           available in:
  roles also have a planning
  dimension                                       —    Supply Chain Management
                                                  —    Supply Chain Network Planning
                                                  —    Inventory Planning
— Many planning Master                            —    Sourcing Planning
  Classes provide part of the                     —    Production Planning
  curriculum of the level five                    —    Warehouse Planning
  Professional Diploma in                         —    Transport Planning
  Logistics and Transport                         —    Retail Logistics
                                                  —    Supply Chain Flow Planning
                                                  —    Demand Management


                   www.logisticslearningalliance.com
                   +44 (0) 1530 276590
Master Classes                                Delivery Example
— Initial Workshop. Familiarisation with SCIL Plc and completion of three
    tasks
—   Home Study Complete a further 15 tasks at home over three months,
    mentored by a specialist tutor
—   Final Workshop Complete remaining three tasks and present to M&S
    management what changes you are going to make and in what time
    scales
—   Implementation. Using LLA mentor to assist with any obstacles,
    complete application of learning in your workplace
—   Follow up. Final meeting with LLA highlighting successes and any
    areas of difficulty.
—   Remember you will have already made the application within SCIL Plc,
    therefore you will have the competence and confidence to make the
    same application within your real workplace role.

                    www.logisticslearningalliance.com
                    +44 (0) 1530 276590
Available Qualifications
— Level 6 Advanced Diploma in Logistics and
  Transport
— Level 5 Professional Diploma in Logistics and
  Transport
— Level 3 Certificate in Logistics and Transport
— Level 2 Certificate in Logistics and Transport



               www.logisticslearningalliance.com
               +44 (0) 1530 276590
How Does it Work?
— LLA courses require students to demonstrate evidence of competence in a
  variety of areas.

— Taking on a relevant functional management role within SCIL Plc, the
  student completes a series of tasks (example follows) designed to address
  specific competences.

— There is no limit to the number of times that students can contact their
  allocated specialist coach for support and guidance throughout the
  programme.

— As each task is completed, a portfolio of evidence of competence is
  compiled. Completed portfolios are submitted to the Chartered Institute of
  Logistics and Transport where the course is intended to lead to a
  qualification .

                      www.logisticslearningalliance.com
                      +44 (0) 1530 276590
Centre of Excellence 1

                                           Learners are
                                           provided with the
                                           Centre of
                                           Excellence - a
                                           comprehensive
                                           encyclopaedia of
                                           logistics/supply
                                           chain knowledge.




       www.logisticslearningalliance.com
       +44 (0) 1530 276590
Centre of Excellence 2

                                    An extract from the supply chain
                                    section of the Centre of Excellence




       www.logisticslearningalliance.com
       +44 (0) 1530 276590
Task Example (level three)
To:            Sue Smith
               Warehouse Manager
From:          Alex Clifton,
               Manager C24 Distribution Centre
Date:          15 December 2009
Re:            ABC Analysis

  You ve got many items to manage in our Dependable range
  so it is very important you prioritise your time. To help you, I
  suggest you undertake an ABC analysis on the Dependable
  range. Write a report explaining ABC analysis and detailing
  your findings.

                 www.logisticslearningalliance.com
                 +44 (0) 1530 276590
How to Carry Out the Task 1
— To define ABC analysis, refer to the Centre of
  Excellence and use the A-Z index to locate definition


    The Centre of Excellence is a
    computerised encyclopaedia of
    supply chain theory and terminology.

    The ABC analysis entry provides
    detailed definitions, (expressed in
    volume and in value) together with
    graphical illustrations as shown




                       www.logisticslearningalliance.com
                       +44 (0) 1530 276590
How to Carry Out the Task 2
Research within SCIL Plc
— Locate the relevant data within SCIL Plc (this is an extract from the 280
  product lines and the 52 weeks of the analysis of the dependable product
  range )




                     www.logisticslearningalliance.com
                     +44 (0) 1530 276590
How to Carry Out the Task 3
Student s Response
MEMORANDUM
To:           Alex Clifton Manager, C24 Distribution Centre
From:         Sue Smith Warehouse Manager
Date:         16 December 2009
Re:           Inventory Management Task 11 ABC Analysis

An ABC Analysis is an analysis which is applied to selective inventory management controls. It is concerned with ranking the
    inventory products in some form of hierarchy so that focus can be placed on the most relevant products. Often Inventory
    Value is used as the ranking criterion which is calculated from multiplying Annual demand by inventory cost. Other different
    classification parameters can be used, for instance rate of return of products or item demand.
Once the analysis has been carried out, an ABC classification can be undertaken which classifies the products into a number of
   different groups. Often 3 groups are chosen, hence the term ABC analysis.
A items Products which represent 75-80% of annual demand in monetary terms but only 15-20% of inventory items. These
    products may be of strategic importance to the business. The greatest focus should be placed on these products since
    improvements in the management of these products is likely to yield the most favourable results.
B items An intermediate group of products representing 5-10% of annual demand but some 20-25% of the total inventory items.
    Products in this group are likely to receive less management attention than products in Group A but more than those in
    Group C .
C items Products which represent only 10-15% of annual demand but represent 60-65% of inventory items. Procurement
    decisions for these products are usually automated.
Since no unit cost data is available on the CD, I will carry out an ABC analysis using item demand only.
It can be identified that there are 280 different Dependable products (4 styles which are available in 7 colours and which have 10
     variants of each colour). Using the data in the item_dem_dep_pr_tb table, I have totalled the Period demand for each of the
     280 Dependable lines and then sorted this data in descending order of item demand.
It can be identified from the spreadsheet that Product DS1D5 has the greatest annual demand. Similarly, products DS4G10 and
     DS4A10 have the lowest annual demand.




                                  www.logisticslearningalliance.com
                                  +44 (0) 1530 276590
How to Carry Out the Task 4
Supporting Spreadsheet
I tem    Cum %    %           Demand
DS1D5        5.50     5. 50     886400
DS1D6       10.00     4. 50     725233
DS1D7       13.75     3. 75     604357
DS1D4       16.75     3. 00     483491
DS2D5       19.50     2. 75     443197
DS1D8       22.00     2. 50     402907
DS2D6       24.25     2. 25     362616                                                                                                Cum %
DS3D5       26.45     2. 20     354559

                                         Percentage
DS1D3       28.45     2. 00     322324
                                                      120. 00
DS1C5       30.43     1. 98     319101
DS1E5       32.41     1. 98     319101                100. 00
DS2D7       34.28     1. 88     302186
DS3D6       36.08     1. 80     290092                 80. 00
DS1C6       37.70     1. 62     261085
                                                       60. 00                                                                                                                                                        Cum %
DS1E6       39.32     1. 62     261085
DS2D4       40.82     1. 50     241745                 40. 00
DS3D7       42.32     1. 50     241745
                                                       20. 00




                                                                                                                                                                                                            DS4B10
DS1C7       43.67     1. 35     217575                          DS1D5




                                                                                        DS2C4


                                                                                                DS3C4




                                                                                                                            DS3C9




                                                                                                                                            DS4C4




                                                                                                                                                                    DS2G8
                                                                        DS3D7




                                                                                                                                                                                            DS3G2
                                                                                DS2E6




                                                                                                            DS2B5




                                                                                                                                    DS1B2




                                                                                                                                                                                    DS2A2
                                                                                                                                                    DS1A3


                                                                                                                                                            DS2B9




                                                                                                                                                                            DS3A8




                                                                                                                                                                                                    DS3A1
                                                                                                                    DS3B5
DS1E7       45.02     1. 35     217575
                                                        0. 00
DS1D2       46.27     1. 25     201455
DS1D9       47.52     1. 25     201455
DS2D8       48.77     1. 25     201455
DS3D4       49.97     1. 20     193394
DS1C4       51.05     1. 08     174052
                                                                                                                                    Product
DS1E4       52.13     1. 08     174052                                                                  A                                                   B
DS2D3       53.13     1. 00     161165
DS3D8       54.13     1. 00     161165
DS2C5       55.12     0. 99     159551
DS2E5       56.11     0. 99     159551
DS1C8       57.01     0. 90     145046
DS1E8       57.91     0. 90     145046
DS2C6       58.72     0. 81     130543
DS2E6       59.53     0. 81     130543
DS3D3       60.33     0. 80     128931
DS3C5       61.13     0. 79     127643
DS3E5       61.92     0. 79     127643
DS1D1       62.67     0. 75     120873
DS1C3       63.39     0. 72     116039
DS1E3       64.11     0. 72     116039
DS2C7       64.78     0. 67     108782
DS2E7       65.46     0. 67     108782
DS3C6       66.11     0. 65     104434
DS3E6       66.75     0. 65     104434
DS2D2       67.38     0. 63     100730
DS2D9       68.00     0. 63     100730
DS1B5       68.55     0. 55      88637
DS1F5       69.10     0. 55      88637
DS4D5       69.65     0. 55      88637
DS2C4       70.19     0. 54      87031
DS2E4       70.73     0. 54      87031
DS3C7       71.27     0. 54      87031
DS3E7       71.81     0. 54      87031
DS1D10      72.31     0. 50      80580
DS3D2       72.81     0. 50      80580
DS3D9       73.31     0. 50      80580
DS1B6       73.76     0. 45      72525
DS1C2       74.21     0. 45      72525
DS1C9       74.66     0. 45      72525
DS1E2       75.11     0. 45      72525
DS1E9       75.56     0. 45      72525
DS1F6       76.01     0. 45      72525
DS2C8       76.46     0. 45      72525




                                                 www.logisticslearningalliance.com
                                                 +44 (0) 1530 276590
How to Carry Out the Task 5
The Outcome


— The research into the definition of an ABC analysis
  together with its application in the simulated
  commercial world of SCIL Plc gives the learner the
  competence and confidence to make a similar
  application in the real life workplace, giving a
  personal development benefit to the student and a
  business benefit to the company.



              www.logisticslearningalliance.com
              +44 (0) 1530 276590
Completing the Course
— The learner s response to task number one is submitted
  for assessment and this automatically triggers off the
  despatch of task number two.

— While working through task number two, the learner will
  receive feedback on task number one, either task
  complete or requesting additional work/clarification.

— This process continues until all tasks (and therefore the
  course) are completed to the assessor s satisfaction

                www.logisticslearningalliance.com
                +44 (0) 1530 276590
LLA Personal Development Staircase
               Supervisors/
New entrants                               Middle        Senior
                First Line
   to the                                 Managers -   Managers -
               Managers -
 profession                                Tactical     Strategic
               Operational




               www.logisticslearningalliance.com
               +44 (0) 1530 276590

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Competence based learning 060710 pdf

  • 1. Delivering World Class Supply Chain Learning in Five Continents www.logisticslearningalliance.com +44 (0) 1530 276590
  • 2. LLA is........ A group of people who have been working together, delivering Logistics/Supply Chain management performance improvement programmes for the last 15 years. LLA was formed six years ago with the management buy out of the CILT qualifications delivery element of People Development Group. www.logisticslearningalliance.com +44 (0) 1530 276590
  • 3. What does LLA Do? — Train in logistics and supply chain management — Courses can be generic (off the shelf) or bespoke — Courses can lead to CILT qualifications — Ethos is to provide new or improved skills for application in the workplace www.logisticslearningalliance.com +44 (0) 1530 276590
  • 4. The LLA Approach —Knowledge or competence? www.logisticslearningalliance.com +44 (0) 1530 276590
  • 5. Knowledge — Knowledge based learning focuses on the theory rather than the practical. It adds no value unless the knowledge can be applied in the workplace. You don t get paid for what you know you get paid for what you do with what you know! — With the ease of access of vast amounts of information on the internet, the importance of an individual s knowledge retention continues to decline. — Studies have shown that post examination knowledge retention is as low as 15% - there can be precious little business benefit in this approach. www.logisticslearningalliance.com +44 (0) 1530 276590
  • 6. Competence Based Learning — Provides skills and expertise that can be applied in workplace making a tangible difference to the operation. — Learning by doing like learning to drive a car. Could you learn to safely drive from instructions in a book? www.logisticslearningalliance.com +44 (0) 1530 276590
  • 7. LLA Believes...... — Training is of no value unless it brings about a change in the workplace..... Either by improving an existing process or by providing instruction and guidance on the development of a new process www.logisticslearningalliance.com +44 (0) 1530 276590
  • 8. LLA training...... ......leads to participants — Doing different things or — Doing things different (sic) www.logisticslearningalliance.com +44 (0) 1530 276590
  • 9. How Do We Do It? — Through SCIL Plc - a fictitious organisation in which learners take on the role of the management of an underperforming department. It could be the warehouse, inventory or transport operation. — Equally the learner may be called up to address underperformance throughout the supply chain www.logisticslearningalliance.com +44 (0) 1530 276590
  • 10. SCIL Plc A Case Study Simulation — SCIL Plc may be a fictitious organisation but it accurately replicates the real world in its processes, personalities, product information and in its plethora of statistical data. The company has recently formed from the merger of two organisations, Air-flo and Bi- flo each with its own strengths and weaknesses. Therefore, in addition to a complex range of strategic, tactical and operational issues there are, within the simulation, issues involving the integration of two organisations with different cultures, attitudes and supply chains. — Supported by a specialist coach, students take on the management of an underperforming department and demonstrate their competence by completing a series of tasks designed to lead to an improvement in functional performance. www.logisticslearningalliance.com +44 (0) 1530 276590
  • 11. Induction Learners new recruits to SCIL Plc - go through a comprehensive induction consisting of a series of presentations from the board of directors. These presentations provide the strategic context to the management role the learner is to perform .........we recognise that we must also become more innovative in our product development, exploiting greater use of new technology. Fundamentally, we must also improve product availability, which will mean a greater focus on supply chain management. Historically, neither business has been good in this area, so strategically it represents our biggest challenge,..... www.logisticslearningalliance.com +44 (0) 1530 276590
  • 12. A Complete Hierarchy of Management You can access information about the operation, the culture and the current supply chain issues of Hi, I'm Shigeru Kozu, Managing Director of Air-Flo. I began my SCIL Plc by career with Air-Flo just over 3 years ago as the Production Director, meeting any of where I had responsibility for all the individuals in the manufacturing operations of the company. At that time the the management factory at C8 was experiencing chart. some major problems with quality, waste and erratic lead times. Initially, most of my time was spent sorting out this site, by implementing Just in Time and some of the lean thinking techniques . www.logisticslearningalliance.com +44 (0) 1530 276590
  • 13. A Multi-Site Organisation You can access information about the operation of any of the manufacturing, storage or distribution facilities by visiting the site of your choice www.logisticslearningalliance.com +44 (0) 1530 276590
  • 14. Statistical Information www.logisticslearningalliance.com +44 (0) 1530 276590
  • 15. An International Supply Chain SCIL Plc is based in Homeland but it has customers and suppliers in Alphaland, Betaland, Epsilonland and Forexland and therefore has a truly international supply chain www.logisticslearningalliance.com +44 (0) 1530 276590
  • 16. LLA Generic Courses — Briefings — Operational Master Classes — Planning Master Classes www.logisticslearningalliance.com +44 (0) 1530 276590
  • 17. Briefings — An introduction to the — Briefings are available in: fundamentals of logistics and supply chain — Supply Chain understanding. — Inventory — Briefings provide essential knowledge on how each — Production function fits into the supply — Warehouse chain, how they contribute — Sourcing to supply chain performance and the — Transport impact that functional activity can have elsewhere in the supply chain www.logisticslearningalliance.com +44 (0) 1530 276590
  • 18. Operational Master Classes — Ideal for first line — Operational Master managers/supervisors - Classes are available in: people who have a demanding operational — Inventory, role but who are not involved in planning — Sourcing issues. — Warehouse — Provide part of curriculum of the level three Certificate in Logistics — Transport and Transport — Production www.logisticslearningalliance.com +44 (0) 1530 276590
  • 19. Planning Master Classes — Intended for middle — Planning Master Classes are managers whose operational available in: roles also have a planning dimension — Supply Chain Management — Supply Chain Network Planning — Inventory Planning — Many planning Master — Sourcing Planning Classes provide part of the — Production Planning curriculum of the level five — Warehouse Planning Professional Diploma in — Transport Planning Logistics and Transport — Retail Logistics — Supply Chain Flow Planning — Demand Management www.logisticslearningalliance.com +44 (0) 1530 276590
  • 20. Master Classes Delivery Example — Initial Workshop. Familiarisation with SCIL Plc and completion of three tasks — Home Study Complete a further 15 tasks at home over three months, mentored by a specialist tutor — Final Workshop Complete remaining three tasks and present to M&S management what changes you are going to make and in what time scales — Implementation. Using LLA mentor to assist with any obstacles, complete application of learning in your workplace — Follow up. Final meeting with LLA highlighting successes and any areas of difficulty. — Remember you will have already made the application within SCIL Plc, therefore you will have the competence and confidence to make the same application within your real workplace role. www.logisticslearningalliance.com +44 (0) 1530 276590
  • 21. Available Qualifications — Level 6 Advanced Diploma in Logistics and Transport — Level 5 Professional Diploma in Logistics and Transport — Level 3 Certificate in Logistics and Transport — Level 2 Certificate in Logistics and Transport www.logisticslearningalliance.com +44 (0) 1530 276590
  • 22. How Does it Work? — LLA courses require students to demonstrate evidence of competence in a variety of areas. — Taking on a relevant functional management role within SCIL Plc, the student completes a series of tasks (example follows) designed to address specific competences. — There is no limit to the number of times that students can contact their allocated specialist coach for support and guidance throughout the programme. — As each task is completed, a portfolio of evidence of competence is compiled. Completed portfolios are submitted to the Chartered Institute of Logistics and Transport where the course is intended to lead to a qualification . www.logisticslearningalliance.com +44 (0) 1530 276590
  • 23. Centre of Excellence 1 Learners are provided with the Centre of Excellence - a comprehensive encyclopaedia of logistics/supply chain knowledge. www.logisticslearningalliance.com +44 (0) 1530 276590
  • 24. Centre of Excellence 2 An extract from the supply chain section of the Centre of Excellence www.logisticslearningalliance.com +44 (0) 1530 276590
  • 25. Task Example (level three) To: Sue Smith Warehouse Manager From: Alex Clifton, Manager C24 Distribution Centre Date: 15 December 2009 Re: ABC Analysis You ve got many items to manage in our Dependable range so it is very important you prioritise your time. To help you, I suggest you undertake an ABC analysis on the Dependable range. Write a report explaining ABC analysis and detailing your findings. www.logisticslearningalliance.com +44 (0) 1530 276590
  • 26. How to Carry Out the Task 1 — To define ABC analysis, refer to the Centre of Excellence and use the A-Z index to locate definition The Centre of Excellence is a computerised encyclopaedia of supply chain theory and terminology. The ABC analysis entry provides detailed definitions, (expressed in volume and in value) together with graphical illustrations as shown www.logisticslearningalliance.com +44 (0) 1530 276590
  • 27. How to Carry Out the Task 2 Research within SCIL Plc — Locate the relevant data within SCIL Plc (this is an extract from the 280 product lines and the 52 weeks of the analysis of the dependable product range ) www.logisticslearningalliance.com +44 (0) 1530 276590
  • 28. How to Carry Out the Task 3 Student s Response MEMORANDUM To: Alex Clifton Manager, C24 Distribution Centre From: Sue Smith Warehouse Manager Date: 16 December 2009 Re: Inventory Management Task 11 ABC Analysis An ABC Analysis is an analysis which is applied to selective inventory management controls. It is concerned with ranking the inventory products in some form of hierarchy so that focus can be placed on the most relevant products. Often Inventory Value is used as the ranking criterion which is calculated from multiplying Annual demand by inventory cost. Other different classification parameters can be used, for instance rate of return of products or item demand. Once the analysis has been carried out, an ABC classification can be undertaken which classifies the products into a number of different groups. Often 3 groups are chosen, hence the term ABC analysis. A items Products which represent 75-80% of annual demand in monetary terms but only 15-20% of inventory items. These products may be of strategic importance to the business. The greatest focus should be placed on these products since improvements in the management of these products is likely to yield the most favourable results. B items An intermediate group of products representing 5-10% of annual demand but some 20-25% of the total inventory items. Products in this group are likely to receive less management attention than products in Group A but more than those in Group C . C items Products which represent only 10-15% of annual demand but represent 60-65% of inventory items. Procurement decisions for these products are usually automated. Since no unit cost data is available on the CD, I will carry out an ABC analysis using item demand only. It can be identified that there are 280 different Dependable products (4 styles which are available in 7 colours and which have 10 variants of each colour). Using the data in the item_dem_dep_pr_tb table, I have totalled the Period demand for each of the 280 Dependable lines and then sorted this data in descending order of item demand. It can be identified from the spreadsheet that Product DS1D5 has the greatest annual demand. Similarly, products DS4G10 and DS4A10 have the lowest annual demand. www.logisticslearningalliance.com +44 (0) 1530 276590
  • 29. How to Carry Out the Task 4 Supporting Spreadsheet I tem Cum % % Demand DS1D5 5.50 5. 50 886400 DS1D6 10.00 4. 50 725233 DS1D7 13.75 3. 75 604357 DS1D4 16.75 3. 00 483491 DS2D5 19.50 2. 75 443197 DS1D8 22.00 2. 50 402907 DS2D6 24.25 2. 25 362616 Cum % DS3D5 26.45 2. 20 354559 Percentage DS1D3 28.45 2. 00 322324 120. 00 DS1C5 30.43 1. 98 319101 DS1E5 32.41 1. 98 319101 100. 00 DS2D7 34.28 1. 88 302186 DS3D6 36.08 1. 80 290092 80. 00 DS1C6 37.70 1. 62 261085 60. 00 Cum % DS1E6 39.32 1. 62 261085 DS2D4 40.82 1. 50 241745 40. 00 DS3D7 42.32 1. 50 241745 20. 00 DS4B10 DS1C7 43.67 1. 35 217575 DS1D5 DS2C4 DS3C4 DS3C9 DS4C4 DS2G8 DS3D7 DS3G2 DS2E6 DS2B5 DS1B2 DS2A2 DS1A3 DS2B9 DS3A8 DS3A1 DS3B5 DS1E7 45.02 1. 35 217575 0. 00 DS1D2 46.27 1. 25 201455 DS1D9 47.52 1. 25 201455 DS2D8 48.77 1. 25 201455 DS3D4 49.97 1. 20 193394 DS1C4 51.05 1. 08 174052 Product DS1E4 52.13 1. 08 174052 A B DS2D3 53.13 1. 00 161165 DS3D8 54.13 1. 00 161165 DS2C5 55.12 0. 99 159551 DS2E5 56.11 0. 99 159551 DS1C8 57.01 0. 90 145046 DS1E8 57.91 0. 90 145046 DS2C6 58.72 0. 81 130543 DS2E6 59.53 0. 81 130543 DS3D3 60.33 0. 80 128931 DS3C5 61.13 0. 79 127643 DS3E5 61.92 0. 79 127643 DS1D1 62.67 0. 75 120873 DS1C3 63.39 0. 72 116039 DS1E3 64.11 0. 72 116039 DS2C7 64.78 0. 67 108782 DS2E7 65.46 0. 67 108782 DS3C6 66.11 0. 65 104434 DS3E6 66.75 0. 65 104434 DS2D2 67.38 0. 63 100730 DS2D9 68.00 0. 63 100730 DS1B5 68.55 0. 55 88637 DS1F5 69.10 0. 55 88637 DS4D5 69.65 0. 55 88637 DS2C4 70.19 0. 54 87031 DS2E4 70.73 0. 54 87031 DS3C7 71.27 0. 54 87031 DS3E7 71.81 0. 54 87031 DS1D10 72.31 0. 50 80580 DS3D2 72.81 0. 50 80580 DS3D9 73.31 0. 50 80580 DS1B6 73.76 0. 45 72525 DS1C2 74.21 0. 45 72525 DS1C9 74.66 0. 45 72525 DS1E2 75.11 0. 45 72525 DS1E9 75.56 0. 45 72525 DS1F6 76.01 0. 45 72525 DS2C8 76.46 0. 45 72525 www.logisticslearningalliance.com +44 (0) 1530 276590
  • 30. How to Carry Out the Task 5 The Outcome — The research into the definition of an ABC analysis together with its application in the simulated commercial world of SCIL Plc gives the learner the competence and confidence to make a similar application in the real life workplace, giving a personal development benefit to the student and a business benefit to the company. www.logisticslearningalliance.com +44 (0) 1530 276590
  • 31. Completing the Course — The learner s response to task number one is submitted for assessment and this automatically triggers off the despatch of task number two. — While working through task number two, the learner will receive feedback on task number one, either task complete or requesting additional work/clarification. — This process continues until all tasks (and therefore the course) are completed to the assessor s satisfaction www.logisticslearningalliance.com +44 (0) 1530 276590
  • 32. LLA Personal Development Staircase Supervisors/ New entrants Middle Senior First Line to the Managers - Managers - Managers - profession Tactical Strategic Operational www.logisticslearningalliance.com +44 (0) 1530 276590