تواصل_تطوير
المحاضرة رقم 191
المهندس / تامر فودة
عنوان المحاضرة
" Supply Chain Management "
يوم السبت 14 يناير 2023
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5. Agenda
I n t r o d u c t i o n t o S u p p l y C h a i n
M a n a g e m e n t
1
D e m a n d M a n a g e m e n t a n d
F o r e c a s t i n g
2
I n v e n t o r y M a n a g e m e n t a n d
P r o d u c t L i f e c y c l e M a n a g e m e n t
3
W a r e h o u s e M a n a g e m e n t
4
T r a n s p o r t a t i o n M a n a g e m e n t
5
6
7 L o g i s t i c s M a n a g e m e n t
8
S u p p l y C h a i n O p e r a t i o n s
E x c e l l e n c e
11
S u p p l y C h a i n M a n a g e m e n t
K P I s
12
S C M E R P A p p l i c a t i o n s
13
F u t u r e o f S u p p l y C h a i n
M a n a g e m e n t
14
P r o c u r e m e n t a n d S o u r c i n g
P r o d u c t i o n P l a n n i n g ,
M o n i t o r i n g , a n d C o n t r o l
O r d e r M a n a g e m e n t
9
A s s e t M a n a g e m e n t
10
7. Supply Chain Management Definition
• Supply Chain Management (SCM), the management of the flow of goods and services,
involves the movement and storage of raw materials, work-in-process inventory, and
finished goods from point of origin to point of consumption.
• Supply Chain Management (SCM), is the control of materials, information, and
finances as they move in a process from supplier to manufacturer to wholesaler to
retailer to consumer. Supply chain management involves coordinating and integrating
these flows within and among companies.
• It is said that the ultimate goal of any effective supply chain management system is to
reduce inventory (with the assumption that materials and products are available when
needed).
16. Demand Management
• Defined as “focused efforts to estimate and manage
customers’ demand, with the intention of using this
information to shape operating decisions.”
• Gathering and analyzing knowledge about consumers, their
problems, and their unmet needs.
18. Demand Planning Process Steps
Approve
Forecast
Analyze
Demand
Plan
Metrics
Review
&Modify
Forecast
Generate
Statistical
Forecast
Create
Demand
Plan
Collect
&Load
Historical
Demand
19. Forecast Methods
There are four basic methods to use when doing forecasts.
Most forecasts are done using various combinations of these four
methods
20. Forecast Qualitative Technique
• Projections based on judgment, expectations. and informed opinions.
• By their nature, they are subjective.
• Qualitative techniques are used to forecast general business trends and
the potential demand for large families of products over an extended
period of time.
• They are used mainly by senior management.
21. Forecast Quantitative Technique
• Quantitative forecasting techniques are based on the assumption
that what happened in the past will happen in the future.
• Historical data is usually recorded in the organization and is readily
available.
• They are usually used as input to master production scheduling
where end-item forecasts are needed for the planning horizon of the
plan
22. Forecast Quantitative Methods
• Causal Techniques: Based on External Data such as economic indicators, or income
figures. Least Square Regression Analysis usually used.
• Moving Average (Naïve, Simple & Weighted): Assumes that sales of this
month will be the same as those last month (Simple), or the average demand for, say, the last
three or six periods and use that figure as the forecast for the next period. This forecast would
then always be based on the average of the actual demand over the specified period.
• Exponential Smoothing: Assumes the most recent data should be given either more or
less weight than previous data. Exponential smoothing will detect trends although the forecast
will lag actual demand if a definite trend exists.
• Seasonal Forecasting: A useful indication of the degree of seasonal variation for a
product is the seasonal index.
23. Forecast Error
• Defined as the difference between actual demand and forecast demand.
• Mean Absolute Deviation (MAD)
– Determined by calculating the total error ignoring the plus and minus signs and taking the average.
MAD = sum of absolute deviations
number of observations
• MAD as Measure of Error Dispersion
– The Mean Absolute Deviation (MAD) is an approximation of the standard deviation of the forecast
error around the mean
– MAD can be used as a basis for setting safety stock.
27. Procurement and Sourcing
Procurement involves every activity involved in obtaining the goods and
services a company needs to support its daily operations, including
sourcing, negotiating terms, purchasing items, receiving and inspecting
goods as necessary and keeping records of all the steps in the process.
35. Suppliers
Tabbed Region Supplier Level Site Level
Organization Yes No
Tax Details Yes Yes
Address Book No Yes
Contact Directory Yes No
Business Classification Yes No
Products and Services Yes No
Bank Details Yes Yes
Surveys Yes No
Accounting No Yes
Tax and Reporting Yes Yes
Purchasing Yes Yes
Receiving Yes No
Payment Details Yes No
Invoice Details Yes Yes
40. Definition of Inventory
• Inventory-A physical resource that a firm holds in stock with the intent of
selling it or transforming it into a more valuable state.
• Inventory System- A set of policies and controls that monitors levels of
inventory and determines what levels should be maintained, when stock
should be replenished, and how large orders should be
41. Types of Inventory
. Raw Materials
. Components
. Packaging Materials
. Work in Process (WIP)
. Finished Goods
. Maintenance, Repair and Operations (MRO)
. Scrap and Damage
. … etc
42. Overview of Inventory
What is inventory?
Spare parts
Finished goods Services
Raw materials
Consigned
inventory
50. Sample Inventory Organization
Outbound Outbound
Receiving
sub
Raw materials
sub
Manufacturing
sub
Finished goods
sub
Inspection
sub
Defective
goods
sub
Shipping sub
Inbound
51. Product Management
Item Identification in an Inventory Catalog
* Item Number / Code / SKU
* Name / Description
* Brand
* Full Description
* Classification
* Supplier’s Item Number
* Weight & Dimensions
* Storing & Handling Requirements
* Degree of danger and safety requirements.
* Shelf Life
* Relevant physical and other properties.
53. Unit of Measure
Each Liter
A unit of measure is a value that specifies the quantity of an item.
54. Unit of Measure Classes
Each Box of 4 Box of 8
Volume Weight Temperature
Count Class
Classes
55. UOM Conversion
Base UOM
No
Yes
No
UOM
lbs
Kg
Gm
1 Kg = 1000 X Gm
1 Kg = 2.208 X lbs
UOM Class = Weight UOM Conversion
UOM Interclass Conversion
Conversion
2
Weight
Kg
Item
Sugar Bag
Destination
Base UOM
Destination
UOM Class
Source
Base UOM
Source
UOM Class
Quantity
Each
2 Each = 1 Kg
58. Revision, Lot, Serial, and License Plate Number (LPN) Parameters
Item AS5222
Serial #5847329
Serial parameters LPN parameters
LPN101
Revision parameters
Revision A
Lot parameters
Lot 403B
71. Warehouse Management
• Used to store and manage inventory.
• The management of warehouses involves such problems as site selection, number
of warehouses in the system layout, and methods of receiving, storing, and
retrieving goods.
• Minimize the total physical effort and thus the cost of moving goods into and out
of storage.
73. Warehouse Layout and Design
• Develop a demand forecast.
• Determine each item’s order
quantity.
• Convert units into cubic
footage requirements.
• Allow for growth.
• Allow for adequate aisle space
for materials handling
equipment.
74. Warehouse Layout and Design
• Layout and Design Principles:
– Use one story facilities where
possible.
– Move goods in a straight-
line.
– Use the most efficient
materials handling
equipment.
– Minimize aisle space.
– Use full building height.
75. Warehouse Layout and Design
Layout and Design Objectives
– Cubic capacity
utilization
– Protection
– Efficiency
– Productivity
76. Barcoding
• Standard markings that can be read by automatic or handheld
scanners that allow for labor saving logistical activities for all supply
chain members.
• Bar Codes contain information regarding:
– Vendor
– Product type
– Place of manufacture
– Product price
78. Transportation Management
Getting the required items at their required destination on time at the lowest
cost to both parties.
Intense global competition REQUIRES that purchasing, marketing, and
transportation work together to achieve cost efficiency without sacrificing
service.
The International buyer works with the world's most efficient domestic
transportation system.
More significant when using more distant foreign sources whose transportation
network may not be properly tied-in with the global logistics pipeline.
79. Modes of Transportation
• Air
• Rail
• Truck
• Water
• Pipeline
• Multimodal (MOST INTERNATIONAL SHIPMENTS)
80. Factors to Consider in Selecting Mode
• Date needed
• Rates, cost of shipping
• Cost of insurance
• Cubic size and weight of shipment
• Value of products
• Discharge and destination point
• Possibility of damage
• Handling requirements during shipment
• Possibilities of theft
• Use of containers
• Paperwork required
• Carrier's ability to operate in your source country
81. Transportation Rates dependencies
• Description of the item shipped;
• Type of material used to make the product;
• Whether it is assembled or folded or nested, packaged in crates, in
packages/on skids;
• The density (weight/cubic foot) and length of the item;
• Whether it's new, used, reconditioned, or scrap;
• Liquid or solid;
• Finished or rough form;
• Hazardous, dangerous, or "reportable'' as such.
84. Logistics Management
• Increased sensitivity to service quality (fast & reliable) provided by
logistics.
• The two largest cost categories in logistics systems are transportation and
inventory.
• The most frequent trade-off in logistics is between transportation and
inventory cost.
85. Value-Added Role of Logistics
Also referred to as the 7 Rights
• Right product,
• Right quantity,
• Right condition,
• Right place,
• Right time,
• Right customer, and
• Right cost.
86. Logistics Activities
• Transportation
• Storage
• Packaging
• Materials handling
• Order fulfillment
• Forecasting
• Production planning
• Purchasing
• Customer service
• Site location
85
88. 3rd Party Logistics Services
• First party: the manufacturer, wholesaler, or retailer,
otherwise called the “shipper”.
• Second party: the customer (or supplier) of the first
party.
• Third party: the logistics provider, such as a freight
carrier or public warehouse. A third party may also be a
provider of (pure) services, such as freight broker,
forwarder, consolidator, customs broker, etc. Logistics
providers normally own/lease the equipment and
facilities.
90. Master Planning Activities
• Business planning
• Production planning
• Master production scheduling
• Material requirements planning
• Production Or Purchasing activity control
91. Make-to-Stock (MTS)
• A limited number of standard items are assembled from many
components.
• Televisions are an example.
• The MPS is usually a schedule of finished-goods items.
• Schedules are based mainly on forecasts.
• It provides the fastest responsiveness to customer order.
92. Make-to-Order (MTO)
• Many different end items are made from a relatively small number of
components.
• Custom-tailored clothes is an example.
• The MPS is usually a schedule of the actual customer orders.
• It provides high flexibility to customer orders, but slow responsiveness.
93. Assemble to Order (ATO)
• Many end items can be made from combinations of basic components
and subassemblies.
• This last step, assembly to customer order, is usually planned using a
final assembly schedule (FAS).
• The FAS Is a schedule of what will actually be assembled. It is used
when there are many options and it is difficult to forecast the
combination customers will want.
• Master production/operations scheduling is done at the component
level.
• ATO provides intermediate flexibility and responsiveness
94. Rough Cut Capacity Planning
• Checks whether critical resources are available to support the various
preliminary MPS.
• Critical resources include "bottleneck" operations, labor, and critical
materials (perhaps material that is in short supply or has a long lead
time).
95. Material Requirements Plan
• A plan for the production and purchase of the components used in
making the items in the master production schedule.
• It shows the quantities needed and when manufacturing intends to make
or use them.
• The MRP will be used by purchasing and production activity control to
decide the purchase or manufacture of specific items.
• The level of detail is high. The MRP establishes when the components
and parts are needed to make each end item.
98. Order Management
Order management is the process of order capturing, tracking,
and fulfilling customer orders. The order management process
begins when an order is placed and ends when the customer
receives their package.
101. Asset Management
Asset managers manage and monitor a company's assets. This
could include property, stocks, commodities, and other financial
products. As an asset manager, you'd aim to maximize your
employer's return on investment.
109. Just In Time (JIT)
• Just-in-time: Repetitive production system in which processing and
movement of materials and goods occur just as they are needed, usually
in small batches
• JIT is characteristic of lean production systems
• JIT operates with very little “fat” (inventory)
110. Just In Time (JIT)
• Eliminate disruptions
• Make system flexible
• Reduce setup and lead times
• Eliminate waste
• Minimize WIP
• Simplify the process
111. Process Design
• Small lot sizes
• Setup time reduction
• Manufacturing cells
• Limited work in process
• Quality improvement
• Production flexibility
• Little inventory storage
112. Production Flexibility
• Reduce downtime by reducing changeover time
• Use preventive maintenance to reduce breakdowns
• Cross-train workers to help clear bottlenecks
• Reserve capacity for important customers
113. Lean Operations
• Different from JIT in that it is externally focused on the
customer
• Starts with understanding what the customer wants
• Optimize the entire process from the customer’s
perspective
114. Six Sigma
• It is a methodology for continuous improvement
• It is a methodology for creating products/ processes that perform at high
standards
• It is a set of statistical and other quality tools arranged in unique way
• It is a way of knowing where you are and where you could be!
• It is a Quality Philosophy and a management technique
Six Sigma is not:
• A standard
• A certification
• Another metric like percentage
115. Paths of Six Sigma
4 Sigma 6,210 Defects
2 Sigma 308,537 Defects
3 Sigma 66,807 Defects
5 Sigma 233 Defects
6 Sigma 3.4 Defects
Sigma levels and
Defects per million
opportunities
(DPMO)
125. On Prim and Cloud ERP
ERP systems was previously implemented in servers and data centers owned
by the customer in their premises.
After 2010, most of the big ERP providers such as Oracle, SAP, Microsoft, and
Infor established their data centers over cloud in USA, Asia, and Europe and
recently in middle east and Africa.
These ERP providers are now selling their service subscription to their Cloud
ERP instead of selling hardware and licenses as they were doing before.
127. Future of Supply Chain Management
• Digital Supply Chain
• Cloud Based Supply Chain
• IoT
• AI
• Robots and Automation
• Blockchain
• Supply Chain As A Service
• Post Pandemic Solutions