Usac 2018 -ilscm - scaan model

1. THE SCAAN© MODEL VERSION1.10
A Practical Way to Understand and Improve Your Supply Chains
Supply Chain Audit & Analytical Neuron
Axon Terminal = SCAAN Toolbox
Node of Ranvier
= IDEAL
Axon = Quick SCAAN
Dendrite = SCAAN Matrix
Nucleus = Value Matrix
Soma
= Supply Chain
Strategies
Schwann cell = SCAAN cases
Myelin = SCAAN team
by Pairach Piboonrungroj, PhD –Chiang Mai University (201ค)
Neuron picture is adapted from Wikipedia

2. What is the SCAAN Model?
• SCAAN => Supply Chain Audit and Analytical Neuron
• Reference Model => SCOR Model
• Audit Tools => Quick Scan

3. IDEAL: The SCAAN Structure
Identify
Design
ExtractAlign
Link

4. “Everything Can Change ExceptValue”
Tim Cook (CEO of Apple Inc.)
Source: Fast Company (2015) URL=http://www.fastcompany.com/3042435/steves-legacy-tim-looks-ahead

5. IDEAL: Identify Customer Value
• I = Identify customer value
• Using value matrix
• Specify Order-Winners & Market Qualifiers
Customer Value =
Quality x Service
Cost x Lead Time
Johansson et al. (1993)

6. IDEAL: Identify Customer Value
• Market Qualifiers = what make you in the business.
• Order-Winners = what make customer buy
– Hotel room ?
– Price
– Location (near downtown)
– Internet
– Swimming pool
– Golf court
Johansson et al. (1993)

7. IDEAL: Design the Supply Chain Structure
• D = Design the right supply chain
• Based on Order-winner & Market Qualifier
• Decide to be either
Cost Champion (Lean) or Service Champion (Agile)
• Or compromise cost & service = “Mass Customisation”

8. Lean or Agile ?
• Lean Strategy if Order Winner = Cost
= waste (Muda) reduction
= Cost reduction

9. Lean or Agile ?
• Lean -> Order Winner = Cost
= waste (Muda) reduction
= Cost reduction
• Agile ->Order Winner = Service
= Focus on Flexibility of the supply chain
= Aim to increase Service level

10. Cost or Service Champion ?
• Efficiency -> Order Winner = Cost
= Waste (Muda) reduction
= Cost reduction
• Responsive -> Order Winner = Service
= Focus on Flexibility
= Aim to increase Service level
• Hybrid
= Cost efficiency + Service Responsive?

11. Lean?
= Eliminating Seven wastes !!!
TIMWOOD Transports
1. Transports
2. Inventory
3. Motion
4. Waiting
5. Over-production
6. Over-processing
7. Defects

12. Lean in Service
7 wastes in service (Bicheno and Holweg, 2009)
1. Delay – late than planned
2. Duplication – Do again and again
3. Unnecessary Movement – no need to move
4. Unclear communication
5. Incorrect inventory – too much or too less
6. Lost to retain customers – switch to competitor
7. Service failure – Do it wrong

13. Agile = Move quickly and easily

14. Service Champion = Flexibility & Responsive
• Booking -> amendable or No cancellation fee
• More buffer stock -> prepare various type
of drinks
• Multiple skilled labour with quick-changeover
ability

15. Service Champion <- Flexible Supply Chain

16. Service Champion <- Flexible Supply Chain
Free Cancellation

17. Supply Chain Pipeline Types
define whether to be
cost or service champion?
? ?
? ?
Predictable Unpredictable
Short
lead time
Long
lead time
Source: Pairach Piboonrungroj (2014) adapted from Christopher (2011)
Demand Characteristics
SupplyCharacteristics

18. Supply Chain Pipeline Types
define whether to be
cost or service champion?
?
Predictable Unpredictable
Short
lead time
Long
lead time
Source: Pairach Piboonrungroj (2014) ปรับจาก Christopher (2011)
Demand Characteristics
SupplyCharacteristics

19. Supply Chain Pipeline Types
define whether to be
cost or service champion?
Cost
Continuous
Replenishment
Predictable Unpredictable
Short
lead time
Long
lead time
Source: Pairach Piboonrungroj (2014) ปรับจาก Christopher (2011)
Demand Characteristics
SupplyCharacteristics
?

20. Supply Chain Pipeline Types
define whether to be
cost or service champion?
Cost
Continuous
Replenishment
Cost
Plan, execute &
Control
Predictable Unpredictable
Short
lead time
Long
lead time
Source: Pairach Piboonrungroj (2014) ปรับจาก Christopher (2011)
Demand Characteristics
SupplyCharacteristics
?

21. Supply Chain Pipeline Types
define whether to be
cost or service champion?
Cost
Continuous
Replenishment
Service
Quick Response /
Time Compression
Cost
Plan, execute &
Control
Predictable Unpredictable
Short
lead time
Long
lead time
Source: Pairach Piboonrungroj (2014) ปรับจาก Christopher (2011)
Demand Characteristics
SupplyCharacteristics
?

22. Supply Chain Pipeline Types
define whether to be
cost or service champion?
Cost
Continuous
Replenishment
Service
Quick Response /
Time Compression
Cost
Plan, execute &
Control
Mass Customisation
Modular component
& Postponement
Predictable Unpredictable
Short
lead time
Long
lead time
Source: Pairach Piboonrungroj (2014) ปรับจาก Christopher (2011)
Demand Characteristics
SupplyCharacteristics

23. Mass Customisation
needs Decoupling Point (Changing point)
Mass
Mass
Mass
Mass
Customisation
Customisation
Customisation
Cus.
ไพรัช พิบูลย์รุ่งโรจน์ (2557) ปรับจาก
Christopher (2011)

24. Mass
Mass
Mass
Mass
Customisation
Customisation
Customisation
Cus.
Pick their own
ingredient
Bento
A la cate
Create their
own menu
Mass Customisation needs Decoupling Point Lunch Options
ไพรัช พิบูลย์รุ่งโรจน์ (2557) ปรับจาก Christopher (2011)
Farm Table

25. Lean + Agile
Christopher (2011)

26. Craft vs Mass Production
Slow delivery High
cost
Fast delivery Low
cost
Highly customised
very Standardised
Craft
Mass production

27. Mass Customisation
Slow delivery High
cost
Fast delivery Low
cost
Highly customised
Mass customisation
very Standardised
Craft
Mass production

28. Product – Process Matrix
Continuous
Assembly
Batch
Job Shop
Low volume, custom
products
Low-medium volume,
many products
Medium-high volume,
a few standardised
products
Very high volume, a
couple of commodity
Product
Process
Aerospace,
Construction
Industrial
equipment
Automobiles,
Appliances
Oil, Sugar
Adapted from Hayes and Wheelwright (1979)

29. Product – Process Matrix
Continuous
Assembly
Batch
Job Shop
Low volume, custom
products
Low-medium volume,
many products
Medium-high volume,
a few standardised
products
Very high volume, a
couple of commodity
Product
Process
Aerospace,
Construction
Industrial
equipment
Automobiles,
Appliances
Oil, Sugar
Mass Customisation
opportunities
Adapted from Hayes and Wheelwright (1979)

30. Identify Decoupling point from Demand
Demand upstream from the
decoupling point
Demand downstream from the
decoupling point
Cost efficiency and
effectiveness
Flexibility /
responsive

31. Postponement
Make
Store
Coloured
clothes
Fulfill with
final polo shirt
Make Store
Fulfill
Example: Dell, Benetton, New concept of paint
1. Colouring 2. Cutting into
a polo shirt
1. Cutting into
a polo shirt 2. Colouring

32. Postponement Breakfast
eggs
Fried egg Serve
Eggs Wait for
order
Deliver
Omelet
Boiled eggs
Make to Stock Make to Order
Omelet
Boiled
eggs
Fried egg

33. Postponement 2 day trip in Chiang mai
Day1 = 9
Temple
tour Day2C = Shopping
Fixed Programme
Trip
9 temple
Split on the second day
Day2A = + Tea tasting
Day2B = Spa
All together Together then split
Tea
Spa
Shopping

34. Assignment
Postponement for 2 Day trip in your home town
Day1 =
modular ?
Day2C = + ?
Fixed Programme
Mass-customised
tour
Modular?
Decoupling time = ?
Day2A = + ?
Day2B = + ?
All together 4 the whole trip Split after day 1
?
?
?

35. Categorising Products
Functional Products Innovative Products
Efficient SC
Responsive SC
(Lean)
(Agile)

36. Modularity (Component Commonality)
Economies of scope are gained
by using the modular components
over and over in different products;
and customisation is gained by
the myriad of products that can be
configured
(Pine, 1993)

37. Modularity Tour
= Modular programme with options to amend
Couple in Chiang Mai
• Modularity - together
= Doi Suthep
= Food and Hotel
• Customised = Split
= Boy -> Hiking
= Girl -> Spa

38. Thank you