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  1. 1. ESPRIT R&D PROJECT INDUSTRIAL RTD PROJECT     INFORMATION TECHNOLOGIES PROGRAMME       Commission of the European Communities DIRECTORATE GENERAL III CHAMAN Advanced tools for integrated supply CHain MANagement in European SMEs USER REQUIREMENTS D.1.1 Co-ordinator: Type: Technical report ELECTRONIC TRAFIC S.A Document number: D11 Public status: Public Partners: Circulation: All actors University of Sunderland Delivery Date: January 1999 Prolog Development Center Version:1.3 - Final Vidal Grau Muebles S.A D line international AS FEOEIM Pages numbered from 1/100 through 100/100
  2. 2. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 Contents 1. INTRODUCTION...............................................................................7 2. PROJECT OBJECTIVES..................................................................9 2.1. Overall description of the Project...................................................9 2.2. CHAMAN Objectives ...................................................................11 2.3. Expected benefits........................................................................12 2.3.1. Expected benefits for the users of the application......................12 2.3.2. Expected benefits for the European Industries...........................12 3. METHODOLOGY FOR THE IDENTIFICATION AND ANALYSIS OF USERS..................................................................................14 4. SYSTEM USERS.............................................................................16 4.1. Users of CPSM (CHAMAN Production & Scheduling Module).....19 4.1.1. Users..........................................................................................19 4.1.2. Planning and scheduling ............................................................20 4.1.3. Strategies...................................................................................22 4.1.4. Examples from interviews...........................................................23 4.2. Users of CDM (CHAMAN Distribution Module)............................27 4.3. Users of CSM (CHAMAN Sales Module).....................................32 4.4. Users of CAM (CHAMAN Administration Module)........................35 5. METHODOLOGY FOR THE IDENTIFICATION AND ANALYSIS OF USERS NEEDS.....................................................................40 5.1. Identification of the Users Needs.................................................40 5.1.1. Interviews structure.....................................................................41 5.1.2. Questionnaire structure..............................................................41 5.2. Analysis of user needs.................................................................42 6. SPECIFICATION OF USER NEEDS..............................................44 6.1. Results From the Study of the questionnaires..............................44 6.1.1. Results from Section 1: General Data........................................47 6.1.2. Results from Section 1: Logistic environment.............................47 6.1.3. Results from Section 2: CPSM, CDM, CSM and CAM requirements..............................................................................51 6.1.4. Results from Section 2: Requirements for integrated system.....56 © 1999 CHAMAN Consortium Page 2/102
  3. 3. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 6.1.5. Results from Section 3: HW, SW and OS requirements.............58 6.1.6. Results from Section 4: Additional Remarkable Comments.......59 6.2. Production managers Needs and Requirements..........................59 6.3. Distribution managers Needs and Requirements.........................60 6.4. Sales Managers Needs and Requirements..................................64 6.5. Supply chain manager Needs and Requirements........................67 7. SMES SPECIFIC CONSTRAINTS..................................................68 8. USER GROUPS..............................................................................71 9. DEMONSTRATION SITES DESCRIPTION....................................75 9.1. Dline international as....................................................................75 9.1.1. Customer order handling............................................................75 9.1.2. Production order handling...........................................................76 9.1.3. Current information.....................................................................77 9.1.4. Shipping......................................................................................78 9.1.5. Forecasts....................................................................................78 9.1.6. Demonstration............................................................................78 9.2. Vidal Grau Muebles......................................................................80 9.2.1. Description..................................................................................80 9.2.2. Demonstration environment........................................................81 10. GLOSSARY...................................................................................85 10.1. Glossary of Acronyms................................................................85 11. BIBLIOGRAPHY...........................................................................87 12. ANNEX..........................................................................................88 © 1999 CHAMAN Consortium Page 3/102
  4. 4. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 SUMMARY CHAMAN project addresses task 8.21, of the Esprit Work-Programme on Integration in Manufacturing, Directorate General III of the European Commission. The CHAMAN strategic goal is improving the supply chain management in European SMEs, by means of the implementation and demonstration of a responsive pro-active system that covers the whole supply chain: production scheduling, distribution management and sales forecasting, on a low cost platform. The work plan is broken down into five main phases: • User and System requirements analysis, defining the user needs and system requirements for the introduction of CHAMAN in their application domains. The user and system requirements will form the base for the validation and evaluation of the work to be developed during the project work plan. • System specification and analysis, drawing up the specification for the modules to be developed afterwards as well as the formats and context of the messages to be interchanged. • Designing and implementing the integrated system having the following components: CAM (CHAMAN Administration module), CPSM (CHAMAN Production module), CSM (CHAMAN Sales Forecasting module), CDM (CHAMAN distribution module) with their GUI and the standard compliant interface for the message interchange. • Integrating the different applications in an integrated supply chain management system. Through the verification of the individual applications, performing the evaluation of the demonstration and obtaining a first evaluation and refinement of the systems developed. • Validating and demonstrating the system, by means of demonstrating the CHAMAN tool kit in specific supply chains, comparing the results with the zero state. Evaluating of cost-effectiveness and performing a system assessment multicriteria analysis. • Exploiting and disseminating the system by keeping track of technical or market changes affecting the project, ensuring the maximisation of exploitation opportunities and disseminating the work carried out and results achieved. © 19998 CHAMAN Consortium Page 4/102
  5. 5. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 This is the first project deliverable. The document, based on an in-depth literature review, questionnaires and direct interviews to a group of interested actors involved in the supply chain, describes the current situation of the supply chain management systems in the European companies. Then the observed trends in technological and organisational developments are reported. The deliverable is structured in the following sections: • Introduction: it is underlined the importance of the role of integrated management of the supply chain in the SMEs in the light of the expected increase in their competitiveness. The problem of supply chain management is stated. • Project objectives: an overall description of the project is stated jointly with its main objectives and the expected benefits for the users of the application and European industries in general. • Identification and analysis of users methodology: in order to define the user needs, it has been needed to identify first the users from which these needs have been described. The methodology for the identification of these users is shown in this section. • System users: following the methodology defined in the previous section, the system users are described in detail giving a general description for each application with a further description of their individual characteristics. • Identification and analysis of users needs methodology: once the system users have been described, the user needs have been defined following a methodology, which is presented in this section. • Specification of user needs: following the methodology defined in the previous section, the data gathered is presented in this section summarising the state of the art of the companies, their aims, technology installed and requirements for a successful system. • SMEs specific constraints: From the results of user needs the specific constraints of SMEs are summarised. The contribution of CHAMAN to improve SMEs situation in European market is described, taking into account the internal and external necessities of SMEs to work co-ordinately. • User groups: in order to define the user needs, a group of users have been contacted to be directly involved during the whole project in the development of CHAMAN applications. A brief description of these users is presented in this section. © 19998 CHAMAN Consortium Page 5/102
  6. 6. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 • Demonstration sites description: the industrial partners who supply chain will be managed by CHAMAN are described on detail. Vidal Grau Muebles S.A and d line international as has been described from a general view point and assessing the specific constraints at their sites. The participants in the study that led to this deliverable are: • Ramón Ferri, Vicente Sebastián Javier Nuñez, (ETRA). • Eric Fletcher (UOS). • Hans Rast, (PDC). • Aurelio Gómez (VGM). • Lars Svendsen (d line international as). • Mariano Carrillo (FEOEIM). The experts who have contributed to the definition of the framework of the state of the art in supply chain management and to the identification of users' requirements are: • Vicente Juan, Fernando Juan (INTEREXIT). • Carmelo Parandinos (Transportes Alabau). • Javier Martí (Salvessen Logística). • Eduardo Grau (Federico Giner Muebles). • Juan Runo (Confortec). • Carlos Payá (Muebles Picó). • Peter Atkinson (Tagor Limited). • Bill Stewart (Federation Brewery ltd.). • Norman McBain (CAMM). • Ole B. Nielsen (Elwis Royal A/S). • V. Lund (Rynkeby Maskinfabrik A/S). • S.N. Jensen (Jyda-Sekvensa A/S) © 19998 CHAMAN Consortium Page 6/102
  7. 7. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 1. INTRODUCTION The supply chain is a collection of functional activities, which span enterprise functions from the ordering and receipt of raw materials through the manufacturing of products and their distribution and delivery to the customer. In order to operate efficiently, these functions must operate in an integrated manner. Providing rapid and quality responses to supply chain events. It requires the co-ordination of multiple functions across the enterprise and between enterprises as well. The integrated view of the supply chain means considering activities like transport, warehousing, goods handling, stock control, purchasing, planning and suppliers schedule and order processing like elements or components of the same system. Therefore, these elements will be related and are interdependent, that is, a decision taken over one element of this system will affect the other elements of it. Industrial organisations are continually faced with challenges to reduce product development time, improve product quality and reduce production cost and lead times. Increasingly, these challenges cannot be effectively met by isolated change to specific organisational units, but instead depend critically on the relationships and interdependencies among different organisation or organisational units. With the movement towards a global economy, companies are increasingly inclined towards specific, high-value-adding manufacturing niches. This, in turn, increasingly transforms the above challenges into problems of establishing and maintaining efficient material flows along product supply chain. The ongoing competitiveness of an organisation is tied to the dynamics of the supply chains in which it participates, and recognition of this fact is leading to considerable change in the way organisations interact with their supply chain partners. Transportation management is also an integral part of supply chain management. Many manufacturers have not planned and co-ordinated their transport causing excess travel for commercial vehicles having detrimental effects on economy, environment and their own business. Implementing CHAMAN will enhance not only SMEs industrial processes, but besides it will provide a gate to new entrepreneurial ways to face the traditional industry. The successful use of IT tools will place in a similar technology stage small enterprises and bigger competitors. The process, which will lead to the implementation of a set of tools for the management of a wide range of supply chains, has to be bottom-up. The first phase of the process, of which © 19998 CHAMAN Consortium Page 7/102
  8. 8. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 this document is the final output, is to make a review of existing SMEs management procedures as well as to collect inputs and requirements from the relevant key actors, who represent the potential market of CHAMAN outputs. After a preliminary analysis gathered from technical literature and current standards, relevant information has been collected through the questionnaires, personal interviews and direct observation in three selected countries Spain, Denmark and United Kingdom. The output of this combination of surveys was useful in defining the current state of a large number of logistic chains and more important to define the user needs requested to evolve from the current stage to an integrated supply chain management. This deliverable will serve, apart from its own value in setting the current state of sales forecasting, production, distribution and supply chain management in European SMEs, as a basis for the development of the CHAMAN tools which will be developed later in the project. © 19998 CHAMAN Consortium Page 8/102
  9. 9. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 2. PROJECT OBJECTIVES The CHAMAN project is a 30-month running project in the Integration in Manufacturing domain. The projects are grouped in project clusters and this project is inside the Enterprise Logistic Cluster. The domain, cluster and project objectives can be summarised as follows: • The goal of Integration and Manufacturing activities is to accelerate and enhance the ability of the European Manufacturing industry to capitalise on the emergence of the global information infrastructure, through the development of new IT solutions. • The objective of the Enterprise logistic cluster is to develop and demonstrate advanced IT solutions for the design, management and control of enterprise chain of logistics, taking consideration of both intra- and inter-enterprise logistic chains. • The project strategic goal is improving the supply chain management in European SMEs, by means of the implementation and demonstration of a responsive pro- active system that covers the integration of critical areas of the supply chain: production scheduling, distribution management and sales prediction. CHAMAN is a user driven and application oriented project. Its goal is developing a set of advanced tools, making use of some pre-existing ESPRIT technology, for environmentally friendly integrated supply chain management, which incorporates a common data exchange format. As exploitation is the priority for a consortium with a strong industrial lead, the technology will be demonstrated through two practical implementations at Vidal Grau and d line international as. 2.1.Overall description of the Project Recent studies (‘Strategic Sourcing’, Co. Development International) have shown that a 10% reduction in Supply Chain Costs can in the best case result in a 30-50% increase in profit. The problem is especially acute for EU manufacturing SMEs that are increasingly pressed by the global competition. These demanding constraints and the perspective of current and future economic environment has caused enterprises seeking ways and means by which they may be prepared to gain competitive advantage. It is assumed the need to change business processes to allow better organisations, which can be more flexible to supply chains pulled by customers' demand. Information technology tools exist and are used by large companies, but SMEs both © 19998 CHAMAN Consortium Page 9/102
  10. 10. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 manufacturers and carriers can not afford them due to: • The need of large investments to access to advanced technology. • The lack of integration among the different tools covering different stages of the supply chain. • The lack of a SME-specific oriented standard framework giving the companies independence from a given tool supplier. PROVIDERS CUSTOMERS MANUFACTURING SME Unintegrated unresponsive systems covering just part of the Supply Chain Figure 1Current Situation It must be remarked the growing use of information flow as a feedback element from the customer to the other actors of the supply chain in order to better focus the products, processes and services with the final objective of adapting them to the demand. CHAMAN will have two major interested activities: the flow of goods and information from the manufacturer to the customer and the flow of information from the retails to the other elements of the supply chain. The project objectives and results can be visualised in the next figure, where the situation after CHAMAN would be reflected. © 19998 CHAMAN Consortium Page 10/102
  11. 11. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 WWW CUSTOMERS PROVIDERS SUPERBUS CIM REFLEX FORESIGHT MANUFACTURING SME S I C Open, integrated, responsive system with cost-efficient, coverage of the Supply Chain Figure 2 Situation after CHAMAN All these activities imply a new model of management in the relations among the retails, manufacturers, suppliers and logistic operators. Concerning the added value of the service offered, the goal is to establish a "pull" service, pulled by the customer against the current "push" situation, interchanging information with the retails and working jointly with distributors and suppliers by shared forecast demand. Logistics in this way is concerned with the integration of activities that always existed in the supply chain (warehousing, transport, orders management, etc.). Until now the decisions with respect these activities had been taken in an isolated way inside the companies under different functional areas like purchasing, goods management, planning, production control, sales, distribution, etc. Changes in the companies' competitive environment and the capability to access to new IT solutions will permit us through CHAMAN the integration of these activities and decisions. 2.2.CHAMAN Objectives The operational objectives arisen from the strategic goals described previously are as follows: • Development of a Production scheduling tool: CHAMAN will adapt and enhance an advanced scheduling tool to respond to point of sales prediction and distribution via a standard interface. • Development of a Distribution tool: CHAMAN will develop an advanced fleet management system to respond to point of sales prediction and requirements of production via a standard interface. This system will incorporate real time dynamic © 19998 CHAMAN Consortium Page 11/102
  12. 12. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 scheduling features: traceability of shipments and rescheduling of transporting vehicles in case of unexpected incidents. • Development of a Sales prediction tool: CHAMAN will adapt an advanced and user friendly Bayes linear decision support system for management forecasting and decision making, this tool will respond to production scheduling and distribution management via standard interface. • Usage of Information technologies: CHAMAN will develop a SME-oriented data based application that spans the total supply chain (from order generation to customer delivery) and provides an open, integrative framework where other tools- not only CHAMAN ones- can be plugged in. This framework will focus on the specific needs of European SMEs. • Implementation and Demonstration of the system as an integrated complete supply chain management tool at two companies that are good examples of the current situation of the European SMEs: Vidal Grau S.A. and d line international as. 2.3.Expected benefits 2.3.1.Expected benefits for the users of the application The CHAMAN application will permit the different actors in the supply chain, that is, suppliers, manufacturers and logistic operators to work jointly with the objective to provide a better service to the customers. This will permit them to eliminate most of the activities that do not provide an added value to the supply chain, reducing their costs and improving their service quality. More detailed benefits for the users of each application can be seen in section 4. 2.3.2.Expected benefits for the European Industries The implementation of a system with the CHAMAN characteristics will facilitate different kinds of industries to inter-actuate together providing an integrated virtual enterprise pulled by customer needs. This will permit each company to provide a set of services that was not able to provide working in an isolated way. The benefits will not only refer to improve the user services but also the improvement of the own industrial processes by the use of distributed IT solutions. In a general way, the implementation of IT solutions will help SMEs to think their own © 19998 CHAMAN Consortium Page 12/102
  13. 13. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 process before implementing a new application. This kind of “rethinking” is the base of the industrial improvement. In this process SME studies analyse and review all its business processes and at that point of time redefine its way of operating. As one of these IT solutions, CHAMAN will help these companies to better understand their own processes. CHAMAN aims to be a useful tool for SMEs with a simplified implementation so that it gives SMEs the possibility of using methodologies usually accessible only to big corporations. CHAMAN should not only be a new integrated tool, but it could also provide to SMEs a vehicle for changing their traditional business culture into a new model of operating. © 19998 CHAMAN Consortium Page 13/102
  14. 14. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 3. METHODOLOGY FOR THE IDENTIFICATION AND ANALYSIS OF USERS The need to establish a methodology for the identification and analysis of the users of an integrated system like CHAMAN arises from the nature of the problem the project will deal with i.e. integrated supply chain management. The problem affects a wide and diverse community of users, with different needs and problems. Taking into account the social, environmental and industrial impacts that the project might have, it is very important not to miss any of its potential users. This can only be done by defining a proper methodology. The methodology to identify the users is similar to those proposed by the European Commission through specific task forces and horizontal projects, in order to contribute to standards and to compare results achieved among different projects. Concerning the methodology to be used we have followed the stakeholder analysis method, herewith it can found an explanation of the methodology and the work expected for all the application. A full description of the methodology can be seen in [1]. Stakeholder Analysis Identified all users/stakeholders and their roles in the system? Ë Specified goals of each user/stakeholder group? Ë Specified potential costs and benefits to each group? Ë Tried to optimise costs/benefits for each user group? Ë Specified high level needs for each user/stakeholder group? Ë Table 1 Stakeholder analysis method Stakeholder analysis approach Stakeholder analysis is a tool to assist in identifying the range of stakeholders whose views should be consulted, and also helps to summarise the costs and benefits that a system may give to each stakeholder group. It consists also in deciding who should take part in evaluation activities. The technique will also be of value later in the evaluation phases of design when the relative advantages and disadvantages of different design solutions are being considered. Stakeholder analysis can also be used to assist developers in checking why a particular system or application is required and what benefits each stakeholder group may gain from it. In addition, the activity also assists in identifying what costs are associated with © 19998 CHAMAN Consortium Page 14/102
  15. 15. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 using a system, which of them will include financial considerations, what effort is needed to learn to use the system, what changes will be introduced in working habits, etc. The way we have implemented the stakeholder approach can be seen in the next figure: Initial identification of generic actors which can be involved in the problem Section 4 domain. STEP 1 Definition of the typology of roles which the different actors can play. Table 2 CAM Section 4.4 CSM CDM STEP 2 Section 4.3 CPS Identification of actors directly or indirectly involved in the project, Section 4.2 including their categorisation within the range of possible roles. Section 4.1 CAM Table 8 CSM CDM Table 7 CPS STEP 3 Identification of goals, benefits and Table 6 disadvantages for each actor. Table 4 Figure 3 User needs methodology © 19998 CHAMAN Consortium Page 15/102
  16. 16. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 4. SYSTEM USERS A supply chain, is a network of facilities and distribution elements that carries out the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these intermediate products to the transform actors or of these finished products to final customers. Supply chains exist in both service and manufacturing organisations, although the complexity of the chain may vary greatly from industry to industry and from product to product. This section identifies the actors and defines the roles they play in their supply chains. This classification has been conducted following the methodology defined in the previous section. Firstly, it is presented an example of four different supply chains that have helped us to identify the components involved in the supply chain. These components must develop a role in its supply chain, which is also described. Secondly, a more detailed description of the users of each application is shown. Below it is an example of four simple supply chains for a group of products, where raw materials are procured from vendors, transformed into intermediate or finished goods in a number of steps, then transported to distribution centres, and ultimately, customers. Realistic supply chains have multiple end products with shared components, facilities and capacities. The flow of materials is not always along an arborescent network, various modes of transport may be considered. Ss4 S2 Logistic Operator S1 M1 Wb1 M2 W a1 S3 Wb4 DS1 Distributo r M3 R2 Rs1 Rs4 DS3 © 19998 CHAMAN Consortium Page 16/102
  17. 17. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 Figure 4 Supply Chains examples In this figure, four supply chains can be seen coloured in red, blue, green and black. Starting with the first supply chain, let us suppose it deals with home electrical appliances, following the red colour, six different actors can be identified. The first one, S1 represents the plastic, metallic and electrical material supplier (we could have different physical suppliers for each type of material). This supplier has not a warehousing capacity and leaves the warehousing, distribution and handling to a logistic operator. This logistic operator will work at the same time with a number of distribution companies or subcontracted vehicles to perform its function in the supply chain as well as a group of personnel to manage the warehouse (this is the second physical component of this supply chain Wa1). This logistic operator delivers a number of components to the home electrical appliances manufacturing company (M1), which produces its new model of refrigerator, which is having a commercial success this year. This manufacturing company is working with its own fleet of vehicles, which carry its products to a special warehouse (Wb1). This warehouse is working for a set of companies, having among its best customers a big department store (DS1) which has a sales promotion of this type of product. The Distribution Company that manages the warehouse is in charge of distributing this type of products to the retails of a given group (Rs1). The physical elements in this supply chain and the roles they play can be summarised in the following diagram. Dept. Store 1 Company Warehouse Company Warehouse Clientele 1 1 2 2 Retail 1 Supplier Logistic Distributor Point of Customers operator Manufacturer sales Figure 5 Actors and Roles of a supply chain Concerning the second supply chain, let us suppose it is concerned with the manufacturing and distribution to a retail chain of plugs. The supply chain starts with the production of the plug pins, this supplier (S2) is very close to the manufacturing company, so the shipping is made by vans owned by the supplier. This manufacturing company (M2), which is the same supplier of the previous supply chain (S1), adds all the plastic components and assembles the plug. Once the product is produced, it is distributed to retail chain specialised in electric devices (R2). © 19998 CHAMAN Consortium Page 17/102
  18. 18. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 The physical elements in this supply chain and the roles they play can be summarised in the following diagram. Company Company Retail Clientele 1 2 Supplier Point of Customers Manufacturer sales Figure 6 Actors and Roles The actors and roles of the rest of the supply chains given in the example can be easily identified. A great number of supply chains could have been described, but looking for the generality of project results, we have summarised them by describing the roles that these actors must accomplish in their supply chains. Role Description They are the first input to the supply chain. They supply the raw material and/or Suppliers components or intermediate products to the following link in the supply chain that is generally formed by the manufacturer. They transform the raw material and/or components or by-products in the final product by means of processes that provide added value. This added value may Manufacturers have a very wide range, which in some cases may only consist on attributing a commercial name or product trade name. Distributors They provide the product to the end customer in the retails. The logistic operators step in some parts of the physical flow of raw materials Logistic and/or information. Concerning the flow of raw materials, it can be stressed the following: warehousing, load handling, goods discharge, transport, physical operators distribution and internal goods reposition. Likewise, they can step in the information flow classifying the data, generating orders and logistic orders. Customers Those who determine the demand in the origin. Point of sales Retail chain and the origin of the demand determined by customers. Table 2 Roles typology © 19998 CHAMAN Consortium Page 18/102
  19. 19. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 A detailed description of the direct, indirect and likely affected users will be given in the following sections following the stakeholder methodology. 4.1.Users of CPSM (CHAMAN Production & Scheduling Module) 4.1.1.Users The users of the production module are the actors described in the supply chain management environment as material suppliers and manufactures, which are those organisations that perform the first levels of the logistic chain. As far as CHAMAN is concerned we will focus on the manufacturer alone, as the manufacturer adds most of the value to the chain. The typical processes at a manufacturer are order handling, production preparation, planning, procurement, scheduling, production, assembling, inspection, packaging and shipment. In an integrated Supply Chain Management System the focus should be on reducing the work and in order to reduce the factory time (= the time from order receipt to the final shipment). It’s often seen that the work time for an order take a few hours, but the time overall handling time might be weeks. The typical processes are shown in the following table for standard and non- standard products and for non-standard products (make to order/”one-of-a-kind”). Standard products have a well-defined construction, quality and process specifications as well as bills of material and processes. Materials and parts used in standard products are often at hand in inventories and provided based on sales forecasts. Non standard products on the other hand must be constructed and specified, bills of materials and processes defined before the actual planning and scheduling can be carried out, which might be time consuming and add substantially to the overall turn-around time. © 19998 CHAMAN Consortium Page 19/102
  20. 20. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 +: applies (+): may apply Processes Standard products Non-std. products Order reception and handling + + Construction/specification + Preparation of production orders through (+) + bill of materials and bill of processes Production planning + + Procurement of raw materials and parts (+) + Reservation of materials and parts from own + (+) stock Production preparation + + Production scheduling + + Production execution + + Assembling + + Quality control + + Packing and dispatching + + Table 3 Processes for standard and non-standard products The finished goods from one manufacturer might be input to another manufacturer in the supply chain, and the finished goods may either be standard products with fixed design and specification or “one-of-a-kind”/”modification”/”variation” – make to order product. Though the focus in the CHAMAN project is on the planning and scheduling, integration to the other processes should not be neglected, as the success in practice is very dependent on the other issues 4.1.2.Planning and scheduling The planning process focus on longer-term tactical objectives (includes master scheduling, balancing demand, procurement and inventory). The planning defines certain © 19998 CHAMAN Consortium Page 20/102
  21. 21. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 business objectives and the subsequent analysis determines the constraints that might affect the accomplishment of these objectives. These constraints might be less specific and more flexible the longer the planning horizon is. The planning process for a manufacturer in a supply chain focuses on the determination of the necessary production capacity, level of materials and parts in stock in order to meet the sales forecast for different products or product groups securing a decided service level as f. ex. a standard delivery time. In the CHAMAN case data from the CSM could be the base for the planning at the manufacturers taking into account the agreed service levels and ordering procedures agreed between the partners in the chain and administered through the CAM. For a longer term planing following parameters are typically taken into account: • Average delivery time, service level • Level of utilisation of resources • Level of inventory of materials, components, parts and semi-finished goods • Change of capacity for production means (facilities, equipment, shifts) • Mowing production to other sites or sub suppliers • Change the capacity of manpower (quantity and skills) As far as the manufacturer sees it, the manufacturer could be member of several supply chains and have own production and sales besides the CHAMAN activities. This makes the planning process more complicated as the manufacturer may want to use the same resources to support different supply chains and own sales. In order to make an optimal utilisation of the production capacity, the manufacturer must do the planning for all interested parties at the same time and with the same planning tool. Scheduling usually focuses more on short-term issues and tactical objectives. A short- term schedule is based on actual orders (customer and stock orders) and is generated for shop floor production, short-term material deliveries and immediate shipments. Constraints for short-term scheduling are very tangible and only adjustable to a certain degree. Finite capacity of machines, personnel and tools capacity is often a given and allow only limited changes (overtime – extra shifts is considered a medium or long-term parameter). Material availability at the right time might still be a constraint that can be influenced to some extend through Just-In-Time delivery, both often material and component availability must be considered as given constraints. © 19998 CHAMAN Consortium Page 21/102
  22. 22. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 The short-term scheduling should be designed to deal with the above mentioned finite constraints and secure that required production output is achieved. The scheduling has following parameters to take into consideration: • Time of delivery • Selection of production means (machinery, equipment, sub suppliers, etc • Production sequence • Work hours (overtime, manning of shifts) • Service level (standard delivery times) • Utilisation of resources • Costs (fixed and variable costs, activity based costing) For short term scheduling based on a given order mix the number of parameters will decrease, often being limited to delivery time, production sequence or work hours. Particularly keeping delivery time seems to be a very important competitive factor, if not the most important for a supply chain concept, when quality and price are with satisfactory limits. In the short term scheduling both orders handled through CHAMAN and orders from other sources should be handled simultaneously in order to utilise the manufacturers resources most beneficial. 4.1.3.Strategies Therefore companies try to find better ways to control the production flow process, either by very tight planning and scheduling, monitoring and follow-up or by having a over capacity. The latter is the easiest but also the most costly, so many companies are looking for better ways to do their planning and scheduling process as they want to reduce the costs. An Advanced Planning and Scheduling (APS) System with close integration to traditional MRP systems gives the manufacturer the possibility to make realistic, synchronised production plans and schedules based on real-world factors. APS distinct itself from traditional materials and capacity planning which work with fixed queue and buffer times and unlimited capacity. This gives fixed turn around times and unrealistic plans. The major difference to APS is that APS works with limited capacity and the order mix dynamically determines queue and waiting times particularly based on the loads at bottleneck resources. In the APS concept both materials and capacity are handled simultaneous. In some © 19998 CHAMAN Consortium Page 22/102
  23. 23. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 companies the materials and production order control is the heaviest; in other companies (flow and assembly) the capacity utilisation is the most important factor in the planning/scheduling process. The scheduling shall synchronise all operations in production and assembly in an intelligent and dynamic way. This includes both forward and backward planning and combinations as for example scheduling from bottlenecks. Resources, particular bottlenecks, and processes shall be modelled very detailed with precise specification of requirements and constraints. It’s not so important to find the optimal schedule as the conditions change very rapidly. It’s more important that the scheduling system can handle feed back from the real world on the shop floor, currently arrival of new order in an online environment and respond to “upsets”, that requires immediate synchronised rescheduling. The CPSM should be able to combine Supply Chain Planning, Enterprise Resource Planning, Production Scheduling and Order Promising in order to: • Enhance customer responsiveness and delivery accuracy; • Reduce inventory and manufacturing costs; • Provide flexibility to meet competitive challenges; • Improve make-span ratios (the ration of total factory time to actual work time) and resource utilisation • Improve financial performance significantly 4.1.4.Examples from interviews A number of companies has been contacted and visited in order to define the stakeholder analysis; typical examples for these companies are the following four: • A manufacturer with about 60 employees supplying washers to machine and automotive industry. The company utilises two types of international supply chains: one related to large manufacturer of machine equipment and automobiles utilising make-to-order customer specific products and one related to distributors of spare parts in the automotive market with standard products, but with customised packing. Delivery times are defined for each major customer and for standard products. High © 19998 CHAMAN Consortium Page 23/102
  24. 24. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 service is provided with an over capacity in machinery and workforce, availability of special tools and a high stock level of raw material. The competitive advantage is know-how, flexibility, production capacity and raw materials at hand resulting in precise deliveries. Forecast is done on different types of raw materials and on standard product to the automotive market. Scheduling is based on standard delivery times. Idle time, after customer orders has been scheduled, are utilised for production of semi-finished standard products or standard products for stock. The company has no control over the supply chain. A carrier does all transportation. (ELWIS ROYAL A/S, Copenhagen, Denmark). • A machine part manufacturer with about 80 employees and the production focuses on components that require special machines, tools and skills. The major customers are equipment manufactures and all production is “make to order”. Materials is either provided by the customer or directly purchased. The customer also provides drawings and instructions. The competitive advance is the specialised machinery, workforce skills and flexibility in capacity. The planning problem is to secure promised delivery times, which is not satisfactory resulting in delays, frequent, near daily, changes in production schedules, overtime etc. Long term planning is done based on estimates for capacity to be sold to major customers, which again is based on their sales forecast per product group. The company has no control over the supply chain. (R. Maskinfabrik A/S, Odense, Denmark) • A bookbindery employing 80 people. Bookbinding is the last process in the production of books, magazines, brochures etc. and requires special machinery and labour capacity. The orders are often known in advance, but the delivery of the material to be bind is often delayed, but the due time for delivery of the bounded material cannot be delayed (magazines has to out on a specific day). This requires a very flexible production capacity and possibility to move workforce between day and night shifts or even adding other shifts and overtime. Rescheduling is done frequently, often several times a day. The company considers itself as part of several supply chains without control and is looking for possible ways to improve the co- ordination between production at the printers who are the preceding entity in the chain. The competitive advantages are keeping delivery times, special machinery, labour capacity, flexibility and neighbourhood. (Th. Jensen & Son Bogbinderi A/S, Hjorring, Denmark) • A supplier of parts to do-it-yourself-assembling furniture manufactures. The service provided is procurement of parts or providing parts from stock and packing specified number of parts in small plastic bags or boxes - Not a screw too much and certainly not a nut to less. The production is just packing either manually or using machines. © 19998 CHAMAN Consortium Page 24/102
  25. 25. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 The orders are placed with both short and long notices, by the scheduling is very dynamic due to delay in deliveries of special parts or due to changes in the customers own production plans. The variables are capacity in different shifts (day- and nightshift plus overtime) and delivery times. The schedule is altered several times a day due to attendance and the dynamics in delivery from 3’th parts and the changes in customer requirements. The competitive advantages are flexibility, reliability, quality and prices of the parts due to large volumes as the company act as a wholesaler and importer. As far as supply chain is concerned the company would like it’s customers to have access to the production plan, so they can use this information in their own production and distribution planning. . (Jyda-Sekvensa, Aarhus, Denmark) © 19998 CHAMAN Consortium Page 25/102
  26. 26. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 SYSTEM NAME: CPSM (CHAMAN PRODUCTION MODULE) STAKEHOLDERS GOALS FOR THE STAKEHOLDERS POTENTIAL BENEFITS POTENTIAL DISADVANTAGES. Direct users • Reduce costs, improve utilisation • Right product at right time to right costs • Precise data foundation, and competitiveness • Manufactures and with the agreed quality • Tight control and • Right product at right time to right costs monitoring. • Production and with the agreed quality • Communication and data Planners processing means and • Material and support systems. parts suppliers Indirect users • Keep the delivery schedules • Reduce cost, improve utilisation • Precise data foundation, Distributors • Keep delivery promises, satisfy demand and competitiveness • Tight control and • Sales organisation • Satisfied Customers and improved monitoring, customer loyalty towards product and sales organisation • Communication and data processing means and support systems Others likely to be • Getting the right product at the right time, • Higher satisfaction with the • influenced at the place and at the right quality and product and service competitive price • Customers Table 4 Goals benefits and disadvantages for each actor © 1999 CHAMAN Consortium Page 26/102
  27. 27. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 4.2.Users of CDM (CHAMAN Distribution Module) The transport sector, which we have referred during all our study as distributors, could been divided in the following types of companies: Figure 7 Types of transport companies • Intermodal transport: These companies are concerned with the integrated transport based on interconnectivity and interoperability of different modal networks. A great number of actors are involved in this type of transport, and although part of the issues are common to CHAMAN, special intermodal transport constraints (intermodal terminal management, intermodal forwarders, special constraints of rail, maritime and air transport) are out of the scope of this project. • Express courier: this is a special case of transport companies focused on the delivery of parcels at a given time. They could be considered as a specific intermodal transport since part of the shipment is realised by means of combined transport i.e. road-air-road. • Full loads: These transport companies are dedicated to the transport of goods by means of complete trucks. As general characteristics, these companies do not have fixed destinations, are mainly focused on export-oriented transport and are normally working with low-price, high-weight and/or high-volume products. © 1999 CHAMAN Consortium Page 27/102
  28. 28. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 • Part loads: These companies are highly dedicated to manage part loads. Most of its business is national, having most of its fleet working in a regional area and co- ordinating its national transport with associated companies. • Integrated services: The recent logistics trend to outsourcing the transportation function in the increasingly elastic supply chains helps to the creation of a special type of companies offering integrated services. These companies that we will call logistics operator may perform all or part of the services described for the previous companies. Most part of the needs required by these types of companies will be solved by the CHAMAN distribution module. In order to define the users of the distribution module we will focus on the logistics operators, which offer transport services, but also a number of added- value services which are summarised in the following table: Added-value services Examples Shared information between • Percentage of on-schedule deliveries to a specific manufacturers and distributors customer. • Delivery time commitment to the customer. • Commercial information  Sales by product/zone/distribution channel.  Order size.  Stock rotation.  Loading and Unloading. Product handling • Labelled. • Single order preparation: picking and shipping. • Raw material packing. Management of stocks and supplies • Supplies need estimation. • Supply management Manufacturer-Warehousing. • Just in time deliveries to production lines. • Retails delivery. Table 5 Examples of added-value services Therefore the users of the distribution module are the distributors and logistic operators. These companies offer to its customers different types of services as explained on Figure 7. © 1999 CHAMAN Consortium Page 28/102
  29. 29. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 At the heart of these services, it is needed a fleet management system which will be a common element for all these companies. In the overall enterprise logistics field, we have considered logistics operators those distributors that are offering a set of services integrated in the supply chains they are working in. So we will focus on the logistics operators characteristics since a distributor can be considered as a potential logistics operator. The information flow depends directly on the way of working of each organisation and the way each organisation interacts with the next element of the supply chain. We have identified the following types of management: • Pull: the demand from the next stage triggers the activity of the previous one. With this type of management, it is obtained better level of stocks and lower obsolescence risks but, however, it requires the sufficient capability to react against the different fluctuations of the demand. An adequate forecasting of the demand improves notably this capacity. • Push: the products are situated at the end of each stage waiting for the demand from the following one. This type of management reduces the risks against uncertainty on the demand but increases the stock level and therefore the obsolescence risk. Until now SMEs had been working in a pushing way, nevertheless, and with the advent of new technologies, the companies are working in a pulling market driven by customers demand. This new trend can be summarised as follows: if a product is not available at a precise time at a precise place, the results may be lost sales, customer dissatisfaction and production down time. This pulled market determines changed requirements in terms of place and time. Indeed, a product produced at one point has a very little value unless it is moved to a point where it could be consumed by a prospective customer. In this sense transportation creates a "place" utility. Time utility is created by warehousing and storage. But indirectly transport influences this process by determining the speed and reliability of moving goods from one node to another. Following the methodology defined in section 3, a number of interested companies have been contacted. The companies' description and their stakeholder analysis are as follows: • International Distribution Company established in the southern part of Valencia's Community, this company is eminently export-oriented, having its target markets in Central Europe. This company works with a high percentage of vehicles of its own, using a small percentage of subcontracted vehicles especially for the local operations. A high percentage of its business is inside the toy and footwear supply © 1999 CHAMAN Consortium Page 29/102
  30. 30. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 chain. They are working jointly with an associated company established in Lyon and have a high part of the fleet management problem solved by an EUTELTRACK based system. • Parcel Distribution Company established in Valencia and dedicated to non-urgent parcel transport (however, they have a delivery time of 24-48 hours in almost any place in Spain by using the network provided by a group of associated companies). The parcel distribution marketplace is demanding the monitorisation of the parcels in all the stages of the supply chain, this fact is of critical importance for the parcel distribution companies contacted by CHAMAN. They are really interested in the control centres integration in order to be able to offer to the user the location, status and other important information related to his shipment. • Perishable goods distribution company: it is specialised in the distribution of perishable products that must be maintained to a certain temperature. They have a high percentage of subcontracted vehicles (over 90%). The company is highly dependent on a very large food company strongly positioned in the marketplace, having the benefits of using its network and using it to distribute other type of products. The stock level in the perishable goods companies is lower and the restocking must be continuous depending on the customer needed. It is based in a greater visibility of the demand and sometimes it is needed to know when and where a product is bought in the overall network of retails. This company needs to work in an integrated way with the manufacturer that at the same time must have this level of visibility from the retails. In this way the manufacturer and logistic operator are able to make consolidated forecasts and later a preparation and shipping of orders from the manufacturer to the logistic operator. © 1999 CHAMAN Consortium Page 30/102
  31. 31. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 SYSTEM NAME: CDM (CHAMAN DISTRIBUTION MODULE) STAKEHOLDERS GOALS FOR THE STAKEHOLDERS POTENTIAL BENEFITS POTENTIAL DISADVANTAGES. Direct users • Being able to offer resources, working as a • An increase of the potential The disadvantages are quite virtual company. business. common for these users. • Logistic department • Complete visibility of their resources, • Better services provided to their • Data integrity needs to be manager vehicles, cargo, warehouse, etc. customers. assured. • Import/Export • Capability of controlling the traffic co- • Optimisation of the trip • Time requested for the traffic operator ordinately. generation. training of these systems. • Planner & • Route optimisation with respect the load • Cost reduction concerning the • It supposes a radical change Scheduler and rendezvous. optimisation of the routes. in the way of work. Indirect users • Real time communication between vehicles • Control of incidents (deviations, • Users want to be assured that and control centres. delays, breakdowns) in real time. the new tools will improve • Truck drivers the visibility of the process to • Integrated management of the • Overall control of a given load by • Order manager make possible further administrative and logistic areas. the order identification. improvements. • Associated • Integrated information between associated • Optimisation of the shared • Difficult integration with the company operator companies. resources. • Customers huge amount of administrative programs. Others likely to be • Optimise their resources by offering them • Resources optimisation working • Users do not want to make influenced in a global way. co-ordinately. visible information on their customers to potential • Other logistic • Offer to their customers updated • Improve their supply chain by the competitors. operators information on the order through the whole distribution integration. supply chain. • Manufacturers/Su • Reduction of freight vehicles in ppliers • Better use of the road, lower congestion, roads. • Citizens pollution, etc. Table 6 Goals, benefits and disadvantages for each actor © 1999 CHAMAN Consortium Page 31/102
  32. 32. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 4.3.Users of CSM (CHAMAN Sales Module) The users of the sales module are primarily Customers and Distributors. The customers in particular will wish to feed data to the sales module and generate sales forecasting models for their own immediate requirements. The customers will be generating short term forecasts covering the immediate sales period which can be assumed to be accurate by the remainder of the supply chain. Intermediate and longer range forecasts will also be generated. Distributors being very close to suppliers will require the short term forecast results in near real time in order to plan distribution. They will also be interested in the longer range forecasts for forward planning. Manufacturers and their suppliers will in general already have responded to the sales patterns which are the subject of short term predictions and they will be most interested in the medium term predictions which, in their term, will generate the next batch of orders. The longer term predictions will inform their future planning activity. © 1999 CHAMAN Consortium Page 32/102
  33. 33. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 SYSTEM NAME: CSM (CHAMAN SALES MODULE)) STAKEHOLDERS GOALS FOR THE STAKEHOLDERS POTENTIAL BENEFITS POTENTIAL DISADVANTAGES. Direct users • Monitor product sales • Correct stocking of sale goods. • • Retailers • Analyse sales patterns through time and • Ability to respond to changes in by location. demand . • Sales Dept. • Predict short term sales • Improved targeting of sales promotions • Model and predict intermediate and long term sales trends • Identification of new markets. Indirect users • Advanced visibility of likely demand • Better distribution planning • patterns. • Forwarder • Reduced inventory costs. s • Pre planning of material supplies. • Optimisation of the production • Production • Avoidance of excessive inventory resources. Dept. Others likely to • Reduction of replanning. • Visibility of potential supply chain • be influenced problems. • Offer to manufacturers/suppliers updated • Other information on potential orders • Improve the supply chain by logistic throughout the supply chain. forward planning operators • Manufactur ers/Supplie rs © 1999 CHAMAN Consortium Page 33/102
  34. 34. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 Table 7 Goals, benefits and disadvantages for each actor © 1999 CHAMAN Consortium Page 34/102
  35. 35. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 4.4.Users of CAM (CHAMAN Administration Module) The users of the administration module are all actors directly involved in the Supply chain, that is: Suppliers Manufacturers Distributors Logistics operators Customers Each one of the above mentioned actors will use the administration module, designed to give to each of them the information they require. Being CHAMAN market driven and user oriented, the first user of the administration module should be: The customer, who must have access to the information of its own orders in process. It must be informed of the latest status of its order in case of need. The customer must have access to the status of an order of his own in progress, and must have access to the status of a delivery of his own Continuing the chain, Distributors must have visibility of the potential demand of its services. As other elements of the supply chain, they must also give visibility of the in transit goods to the first stage of the chain, the customer. Manufacturers, must have control of the total chain management, as they are customers and suppliers at the same time. When a manufacturer is involved in a supply chain, he is the most important step of the chain. Manufacturing is the centre of the Value Chain: It must provide to the rest of the chain, Requirements ========== to Suppliers Requirements ========== to Distributors Services and Goods ======to Customers But Manufacturer must also control From suppliers ========= that requirements are committed and met. From Distributor/transport = That components are in the right transit. For Customers ========= That lead time is met In general, Manufacturing controls all critical situations which could impact all the © 1999 CHAMAN Consortium Page 35/102
  36. 36. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 process. Several SMEs have been contacted in the process to define CHAMAN users requirements, and all of them have agreed that CAM must provide above mentioned kind of visibility. Specific requirements will be defined in chapter 6. A general introduction of the user needs approach for this type of innovative system should be conducted through the following levels: Information, Forecast/planning, Direct actions and General issues. • The information level considers which information should be available in the different links of the supply chain. • The forecast/planning level considers which tools and data should be available for order planning. • The direct action level considers which direct actions should be possible via the system. • The general issues level considers which requirements exist for the system in general. Information: Between the customer and the sales department The customer must be able to inquire after a product and find out whether it is in stock. If the product is not in stock, information must be provided as to whether it is possible to assemble the product from semi-finished products. Alternatively, production time must be stated, either according to the total production time stated on the product sheet or according to the duration of the various sub-processes combined with available capacity according to the CPSM of the individual suppliers. Between the sales/purchasing departments and the supplier The sales department must have access to the same information as the customer. In addition, the sales/purchasing departments must be informed in case of deviations from the plan by a supplier, and it must be possible to draw up delivery schedules for each supplier. It must be possible to follow the quality documentation of a product throughout production at the supplier’s factory. © 1999 CHAMAN Consortium Page 36/102
  37. 37. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 Access must be provided to all data in the supplier’s CPSM/MRP. Forecast/planning: If a customer inquires after a specialised product, the purchasing department must be able to simulate the production time of the product in question and obtain an expected delivery time from the supplier’s planning system (CPSM). In case of several equivalent suppliers, the system must be able to state the supplier who offers the shortest delivery time. The purchasing department must be able to simulate changes in the order sequence and determine the consequences of doing so. The system must be able to forecast and simulate the order sequence of standard products of the individual suppliers which would comply with the sales forecast based on sales figures, goods in stock, orders in progress, the available capacity of the individual suppliers, and other factors. It must be possible to transform one forecast and one simulated delivery schedule into an order. Direct actions: The customer must be able to place an order directly into the system. However, such orders must be checked by the sales department before being processed through the system. In case of deviations in the supplier’s delivery/production schedule, the system must warn the purchasing department, and it must be possible to simulate new delivery schedules. The delivery schedule obtained by the purchasing department does not apply until it has been approved by the supplier. The most suitable supplier is chosen based on the simulated production schedules, and the order is placed with this supplier. On the supplier’s acceptance of the order, the order confirmation must be registered in the purchasing/sales system. The acceptance by a supplier of an alteration to a drawing must be registered, and new orders for the product in question must not be commenced until such an acceptance is given. © 1999 CHAMAN Consortium Page 37/102
  38. 38. CHAMAN- 26.805 15/06/99 Deliverable 1.1: User requirements CHAMAN/WP1/Version 2.1 It must be possible to maintain quality management documents at the suppliers’ premises. It must be possible to exchange all types of documents through the entire supply chain. General issues: It must be possible to prepare schedules for updating different parts of the system, in order for the different suppliers to have different updating frequencies. When an inquiry is made anywhere in the system, the time of the latest update must be stated. Access must be provided to all information anywhere in the system, and subsequently restricted admission must be made for the individual links of the supply chain. A supplier must be able to define the information available from other customers which he wishes to be accessible to the system. The purpose of the system is to streamline and reduce the risks of errors in communication between the individual participants in the supply chain and thus obtain a reduction in transaction costs for all participants. © 1999 CHAMAN Consortium Page 38/102