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Introduction to supply chain management
The document provides an introduction to supply chain management and manufacturing. It discusses the components of the manufacturing business model including defining products and customers, designing products and processes, managing material flow, and providing customer service. It also covers manufacturing environments like engineer-to-order, make-to-order, assemble-to-order, and make-to-stock. Additionally, it presents an overview of manufacturing planning and control including objectives like meeting customer demand and ensuring availability of materials and capacity. Finally, it discusses the evolution of systems from MRP to ERP and the impact of new philosophies like lean, total quality management, and six sigma.
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Introduction to supply chain management
- 1. 1 1 Basicsof Supply Chain Management Introduction to Supply Chain Management Aggregate Inventory Management Demand Management Item Inventory Management Capacity Management and Production Activity Control Material Requirements Planning Lean and Quality Systems Master Planning Purchasing and Physical Distribution 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
- 2. Learning Objectives • Introductionto Manufacturing – Describe the components of the manufacturing business model. – Describe the impact of four significant aspects of the business environment on manufacturing. • Manufacturing Planning and Control – Identify five objectives of manufacturing. – Describe the concepts of priority and capacity. – Present an overview of the manufacturing planning and control (MPC) hierarchy. – Describe the four steps in the evolution of MRP to ERP. • The Impact of New Systems and Philosophies – Present a high-level description of lean, total quality management (TQM), six sigma. 1 2
- 3. 1 3 Introductionto Manufacturing Introduction to Supply Chain Management
- 4. 1 4 Roleof Manufacturing Product Adding value creates wealth Value to the customer Raw material
- 5. 1 5 ManagingMaterial Flow Material acquisition Manufacturing Distribution
- 6. 1 6 ManufacturingBusiness Model • Defining products and customers • Designing products and processes • Managing material flow • Providing customer service and support
- 7. 1 7 DesigningProducts and Processes Meet customer needs Cost effectiveness Quality Efficiency DESIGN Accommodate planning parameters
- 8. 1 8 ProvidingCustomer Service and Support • Understanding and meeting customer wants and needs • Two-way communication • Working with customers to solve problems
- 9. 1 9 CustomerExpectations Characteristics that provide value to the customer: • Cost (price) • Quality • Speed (order lead time) • Dependability • Flexibility (product and volume)
- 10. 1 10 ManufacturingEnvironments and Process Choices Introduction to Supply Chain Management
- 11. 1 11 ManufacturingEnvironments • Engineer-to-order (ETO) • Make-to-order (MTO) • Assemble-to-order (ATO) • Make-to-stock (MTS) • Mass customization
- 12. 1 12 Determinantsof Manufacturing Environments • Lead time expectations • Product design input from customers • Product volume and variety • Product life cycle
- 13. 1 13 LeadTime and Manufacturing Environments Design Purchase Manufacture Ship Inventory Manufacture Ship Manufacture Inventory Ship MTS delivery lead time Manufacture Assemble ShipInventory ETO delivery lead time MTO delivery lead time ATO delivery lead time Assemble Assemble Assemble Engineer-to- order Make-to-order Make-to-stock Assemble-to- order
- 14. 1 14 Volumeand Variety Relationships Product volume Productvariety HighLow High Engineer-to-order Make-to-order Assemble-to-order Make-to-stock Mass customization
- 15. 1 15 ProductLife Cycle Introduction Growth Maturity Decline Phase-out Units sold Time
- 16. 1 16 ProductLife Cycle and Manufacturing Environments ETO MTO ATO MTS Mass customization Introduction Growth Maturity Decline Phase-out Units sold Time
- 17. 1 17 TheManufacturing Supply Chain Introduction to Supply Chain Management
- 18. 1 18 BasicSupply Chain: External ManufacturerSuppliers Distributors Retailers Consumers Dominant flow of goods and services Dominant flow of demand and design information Dominant flow of cash Returns and reverse logistics
- 19. 1 19 TraditionalInternal Supply Chain View Raw materials Customers Purchasing Production Distribution Lowest purchase price Inventory buffers High utilization percent Long runs (minimal changeovers) Low unit costs Safety stocks Full truckload quantities Best shipping rate Safety stocks
- 20. 1 20 Conflictsin Traditional Supply Systems FinanceMarketing Operations Inventory investment Traditional objective Customer service Production efficiency Increase profit and cash flow, reduce investment Increase revenue and satisfy customers Reduce manufacturing cost 82 5 93 6 71 4
- 21. 1 21 Roleof Materials Management Demand Resources
- 22. 1 22 ManufacturingPlanning and Control Introduction to Supply Chain Management
- 23. 1 23 WhyPlan? • To satisfy customer demand and ensure the availability of the following resources: – material – capacity Demand Resources
- 24. 1 24 Theseare questions of priority and capacity. A Good Planning and Control System What must we get and when?
- 25. 1 25 ManufacturingPlanning and Control Order sequencing Input/output control Master scheduling Capacity requirements planning (CRP) Sales and operations planning Strategic and business planning Resource planning (RP) Rough-cut capacity planning (RCCP) PriorityplanningExecution CapacityplanningExecution Material requirements planning (MRP) Production activity control (PAC)
- 26. 1 26 FromMRP to ERP Introduction to Supply Chain Management Session 1
- 27. MRP processor Closed-loop feedback Bestpractice processes Common database 1 27 Evolution from MRP to ERP MRP MRP closed loop ERP
- 28. 1 28 TheImpact of New Systems and Philosophies Introduction to Supply Chain Management
- 29. 1 29 Impactof New Systems • Reduced lead times • Reduced inventory levels • Improved worker productivity • Improved product quality • Cost reductions • Increased profitability TOCLean TQM Six sigma