UNIT 3.pptx - Supply Chain Management Inc

1. Supply Chain
Operations
Making and Delivery

2. Learning Objectives
• Gain a fundamental knowledge of the supply chain activities
involved in the manufacture and delivery of goods
• Determine how product design impacts the supply chain that
supports the product
• Gain insight into the balancing act that is inherent in
production scheduling between utilization rates, inventory
levels, and customer service
• Be able to use the four principles of effective order
management in your organization; and
• Evaluate various delivery schedule alternatives and know
which ones apply to your own companies.

3. MAKE
3RD
STAGE

4. MAKE
-focused on the production of goods requested by the
consumer.
-goods are developed, crafted, checked, packed, and
synced for distribution at this level.
3 Activities
a. Product Design
b. Product Scheduling
c. Facility Management

5. Product Design
Goal: design products with fewer components, simple
structures, and modular fabrication from common sub-
assemblies.
- Components can be purchased from a selected
number of chosen manufacturers.
-Inventory should be stored in the form of standardized
to sub-assemblies
- The more adaptable, responsive and cost-effective the
supply chain, the more likely the product’s commercial
success.

6. Product Planning +Sourcing +Production People
=
Competitive Sustainable Product
People in architecture, procurement, and manufacturing have a
natural propensity to have opposing interests unless their
activities are planned.

7. Product Scheduling
- meeting contrasting demands of offering high levels of
customer care while keeping inventory down and plant
productivity high.
- ongoing balance between use of patterns, stock levels,
and the quality of customer support.

8. HIGH UTILIZATION RATES
Long runs in management,
central production, and
delivery systems.
HIGH LEVELS OF
CUSTOMER SERVICE
Many limited manufacturing
runs with high levels of
inventory
LOW LEVELS OF
INVENTORY
Short manufacturing
processes and just-in-time
raw material distribution.

9. FACILITY MANAGEMENT
3 KEY AREAS
1. The role each facility will play
2. How capacity is allocated in each Facility
3. The allocation of suppliers and markets to each
facility

10. The Role Each Facility Will Play
• Which services can be carried out
• One facility or one service on one particular market =
cannot easily be diverted to another purpose, or
service another market, as the supply chain needs
adjustment.

11. How Capacity is Allocated in Each Facility
• Decisions on capacity utilization result in the
equipment and labor that are employed at the facility.
• Changing decisions on capacity allocation is better
than changing decisions on a venue, but repeated
allocation changes are also not cost-efficient.

12. The Allocation of Suppliers and Markets to
Each Facility
• Proper allocation of suppliers and the goods and
quantities can allow and accommodate most orders.

13. DELIVER
4TH
STAGE

14. DELIVER
• Goods are shipped by the retailer to the customer at their
destination.
• Consumers orders are approved and suppliers are prepared
for delivery.
• Frequently known as logistics – accept orders, build network
of warehouse, pick up carriers to supply goods, and create a
payment invoicing system.

15. RULES OF ORDER MANAGEMENT
1. Enter the order once and only once
Capture the order as similar as possible to the original source remotely. Do not return
the order manually.
2. Automate Order Routing
Send orders immediately to convenient delivery points. People only handle
exceptions.
3. Make Order Status Visible
Allow customers and service agents to immediately view the details on the order
status if they choose to.
4. Use Integrated Order Management System
To protect data integrity, associate order management systems electronically with
other similar systems.

16. DELIVERY SCHEDULING
1. Direct Deliveries
- one place to the reception place.
- fastest route
- ease of procedures and the scheduling of delivery
2. Milk Run deliveries
- single place of origin to various receiving sites.
- supply volumes of various materials, the frequency of
supply, and the routing and sequencing of pickups and
supplies.

17. Sources of Delivery
1. Single-Product Locations
- narrow selection of similar products
2. Distribution Centers
- bulk commodities are transported from single-product
locations.
- where vendors are situated far from consumers, the use of a
logistics center ensures economies of scale in long-distance
shipping, bringing vast quantities of goods to the final
consumer.

18. Returning Processing
• Reverse logistics
• Returns are critical and can be managed effectively
• Work on ways of alleviating the root causes of
commodity returns.