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Supply Chain Management Fundamentals & Implication During Recession
- 1. Supply Chain Management Fundamentals & Implication during Recession PremKumar Badragiri
- 2. Goal of Organisation Market Share Productivity Jobs to people Quality Customer Satisfaction Low cost production Technology
- 4. Goal of Departments Operations Sales Marketing HR Customer Service IT Finance
- 5. To Make Money Operations Sales Marketing HR Customer Service IT Finance
- 6. Goal of Organisation There is only one goal, no matter what the company is
- 16. Balancing Supply & Demand Why such a hue and cry over “ SCM ” ? Challenge !!
- 17. Balancing Supply & Demand
- 18. Balancing Supply & Demand Lets take car plant for example Avg. demand of 250 cars per day A car can be rolled out only if all the components/activities mentioned above are available/complete. Can we exactly match the market demand and capacity of the plant. Engine Gear Box Welding Painting Assembly Line
- 19. Balancing Supply & Demand
- 21. Dependant Events & Statistical Fluctuation Process of making Chicken Tikka Statistical Fluctuation Time taken to chop the chicken, application of masala will vary from individual to individual as well as for the same individual; on an average it remains the same. How to overcome statistical fluctuation & shortage of dependant events? Purchase Chopping Marinate Masala’s Tandoori
- 22. Inventory
- 27. Cost of bottleneck 10 INR/Hr Cost of bottleneck is the cost of the complete system, that is 60 INR/Hr 15 INR/Hr 25 INR/Hr 10 INR/Hr Purchase Chopping Marinate Masala’s Tandoori
Editor's Notes
- Notes: Key message here is that logistics costs are a significant fraction of the total value of a product. The problem here is that this a purely cost based view of the supply chain and drives a firm to simply reducing logistics costs. This is an incomplete picture.
- Notes: Key message here is that logistics costs are a significant fraction of the total value of a product. The problem here is that this a purely cost based view of the supply chain and drives a firm to simply reducing logistics costs. This is an incomplete picture.
- Notes: Key message here is that logistics costs are a significant fraction of the total value of a product. The problem here is that this a purely cost based view of the supply chain and drives a firm to simply reducing logistics costs. This is an incomplete picture.
- The supply chain is a concatenation of cycles with each cycle at the interface of two successive stages in the supply chain. Each cycle involves the customer stage placing an order and receiving it after it has been supplied by the supplier stage. One difference is in size of order. Second difference is in predictability of orders - orders in the procurement cycle are predictable once manufacturing planning has been done. This is the predominant view for ERP systems. It is a transaction level view and clearly defines each process and its owner.
- In this view processes are divided based on their timing relative to the timing of a customer order. Define push and pull processes. They key difference is the uncertainty during the two phases. Give examples at Amazon and Borders to illustrate the two views
- In this view processes are divided based on their timing relative to the timing of a customer order. Define push and pull processes. They key difference is the uncertainty during the two phases. Give examples at Amazon and Borders to illustrate the two views
- Dell has three production sites worldwide and builds to order. Compaq does both. Consider some decisions involved - where to locate facilities? How to size them? Where is the push/pull boundary? What modes of transport to use? How much inventory to carry? In what form? Where to source from?
- Competitive strategy: a set of customer needs that a company emphasizes and concentrates on while producing / servicing. Compare Wal-Mart, 7 eleven, Sam’s club.