A Roadmap To Move In Supply Chain Management


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A presentation delivered at seminar of Toronto Chinese Supply Chain Management group in Victory College on March 20, 2009

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  • A Roadmap To Move In Supply Chain Management

    1. 1. A Roadmap to Move in Supply Chain Management Jie Wang, Ph.D. PMP, (P.E.)
    2. 2. Part I. Introduction
    3. 3. Contents <ul><li>Introduction </li></ul><ul><li>Supply Chain Practice in Canadian Tire Corporation </li></ul><ul><li>Roadmap to move in Supply Chain Management </li></ul>
    4. 4. Introduction <ul><li>Jie Wang - [email_address] </li></ul><ul><ul><li>Education: </li></ul></ul><ul><ul><ul><li>Bachelor Civil Engineering (1982) </li></ul></ul></ul><ul><ul><ul><li>Master System Analyst / Environmental Engineering (1985) </li></ul></ul></ul><ul><ul><ul><li>Ph.D. in Civil Engineering </li></ul></ul></ul><ul><ul><li>Professional development </li></ul></ul><ul><ul><ul><li>P.E in Civil Engineering (participate in several national projects in China </li></ul></ul></ul><ul><ul><ul><li>Consultant in business/commercial analysis In Milan </li></ul></ul></ul><ul><ul><ul><li>IT Consultant in Canada since 1995 </li></ul></ul></ul><ul><ul><ul><li>Project management </li></ul></ul></ul>
    5. 5. Work Experience <ul><li>1 st phase – strategy management of nature resource (water, environment) – systems dynamics – national research projects </li></ul><ul><li>2 nd phase – commercial/business analysis – systems thinking, industrial re-engineering, continuous process improvement </li></ul><ul><li>3 rd phase – IT consultant in transportation, distribution and logistics – information integration </li></ul><ul><li>4 th phase – Supply chain management – Operation Planning Centre – how to operate the supply chain </li></ul>
    6. 6. Two Professors <ul><li>Prof. Jay W. Forrester </li></ul><ul><ul><li>the founder of System Dynamics , which deals with the simulation of interactions between objects in dynamic systems </li></ul></ul><ul><ul><li>The industrial dynamics approaches are uncovering new evidence about how firms compete and how competition should operate. That is in sharp contrast with the results of more basic industrial organization studies </li></ul></ul><ul><ul><li>Contribution to Supply Chain – Beer Game </li></ul></ul><ul><li>Prof. Xu ShouBo </li></ul><ul><ul><li>Professor Xu Shoubo , 1st Director of the Institute for Technical Economics of the State Planning Commission </li></ul></ul><ul><ul><ul><li>1970’s technical Economics </li></ul></ul></ul><ul><ul><ul><li>Director of Energy Saving Institute </li></ul></ul></ul><ul><ul><ul><li>Director of Supply Chain Institute </li></ul></ul></ul><ul><ul><li>From the economic issues in engineering to supply chain management </li></ul></ul>
    7. 7. Beer Game <ul><li>The Beer Distribution Game (Beer Game) is a simulation game created by a group of professors at MIT Sloan School of Management in early 1960's to demonstrate a number of key principles of supply chain management . </li></ul><ul><ul><li>http://www.solonline.org/pra/tool/beer.html </li></ul></ul><ul><ul><li>http://beergame.mit.edu/ </li></ul></ul><ul><ul><li>http://web.mit.edu/jsterman/www/SDG/beergame.html </li></ul></ul>
    8. 8. History of Industrial Revolution <ul><li>Industry History in north America </li></ul><ul><ul><li>1750 – 1865 Early industrial revolution in Britain - manual labor–based economy towards machine -based manufacturing </li></ul></ul><ul><ul><li>1865 – 1918 Reconstruction + industrialization / immigration </li></ul></ul><ul><ul><ul><li>Civil war > Railroads, Iron/Steel, Telephone, petroleum, Electricity, Automobiles, </li></ul></ul></ul><ul><ul><li>1918 – 1945 depression > marketing and resource > war </li></ul></ul><ul><li>Centralization – monopolization > marketing + resources </li></ul><ul><li>Decentralization – Professionalization, down-sizing and outsourcing </li></ul><ul><li>Management, Business process re-engineering </li></ul><ul><li>Information revolution – Service oriented </li></ul><ul><li>Supply Chain Management </li></ul>
    9. 9. MRP II “ A method for the effective planning of all resources of a manufacturing company” APICS Dictionary to integrate the resources of an organization
    10. 10. Environment for Supply Chain Development <ul><li>50-60’s human/paper chain: a set of linear, individualized processes that linked manufacturers, warehouses, wholesalers, retailers and consumers together </li></ul><ul><li>70’s, Material Requirements Planning (MRP) ensures that the flow of raw materials and in-process inventories matches the manufacturer's production schedules for finished products. </li></ul><ul><li>80’s MRP-II planning all manufacturing resources, including those related to operational planning, financial planning, business planning, capacity requirements planning, and master production scheduling – ERP. </li></ul><ul><li>Information Technology, Business intelligence – Baan, SAP, PeopleSoft, Manugistics, Numetrics, ILOG (operational research / system engineering </li></ul><ul><li>B2B, Service-oriented, Customer Relationship management, </li></ul>
    11. 11. Management in Modern Industry <ul><li>Italian Style vs. American Style vs. Japanese Style </li></ul><ul><li>New concepts – lean tool box </li></ul><ul><ul><li>Just in time </li></ul></ul><ul><ul><li>Total Quality Control / Process improvement </li></ul></ul><ul><ul><li>Value Engineering </li></ul></ul><ul><ul><li>Concurrent Engineering (Customization) </li></ul></ul><ul><ul><li>Prima Contracting </li></ul></ul><ul><li>Systems Engineering and Systems Thinking </li></ul><ul><ul><li>coordination and collaboration </li></ul></ul>
    12. 12. Development of SCM methodology <ul><li>Creation: assemble line in automotive industry </li></ul><ul><li>Integration: Enterprise Resource Management and EDI – MRP + MRP II </li></ul><ul><li>Globalization: resources and labor market </li></ul><ul><li>Specialization I - Outsourced Manufacturing & Distribution </li></ul><ul><li>Specialization II - Supply Chain Management as a Service – Dell </li></ul><ul><li>Supply Chain Management 2.0 </li></ul>
    13. 13. Basic Supply Chain Dominant flow of products and services Dominant flow of demand and design information
    14. 14. Issues of Retail Supply Chain <ul><ul><li>Example: order a pizza – </li></ul></ul><ul><ul><li>What are customer’s expectation? </li></ul></ul><ul><ul><li>Price </li></ul></ul><ul><ul><li>Quality </li></ul></ul><ul><ul><li>Delivery service – </li></ul></ul><ul><ul><ul><li>waiting time </li></ul></ul></ul><ul><ul><li>Price x Quality x Time </li></ul></ul><ul><ul><li>= Value $ </li></ul></ul>
    15. 15. Elements in Retail Supply Chain <ul><li>What are flowing in Supply Chain? </li></ul><ul><ul><li>Materials, goods, services </li></ul></ul><ul><ul><li>Data, information </li></ul></ul><ul><ul><li>Cash </li></ul></ul>
    16. 16. Material, Information, Dollar Customer Satisfaction Execution Capacity Planning Strategy Vision Supply Chain Management IT Infrastructure EDI / Database / IW OLAP / BI Knowledge Culture Information Service Inventory Revenue/Expenses Assets Profit POS Finance
    17. 17. Part II. Supply Chain in Canadian Tire
    18. 18. Canadian Tire <ul><li>The first Canadian Tire store opened on September 15 , 1925 </li></ul><ul><li>Employees 57,000 </li></ul><ul><li>CTR, CTFS, PartSource, CT Petroleum, Mark’s Work Warehouse </li></ul><ul><li>Revenue 07: 10.1 Billions </li></ul><ul><li>Main products </li></ul><ul><ul><li>Auto parts </li></ul></ul><ul><ul><li>Hardware </li></ul></ul><ul><ul><li>Leisure </li></ul></ul><ul><ul><li>Home and garden </li></ul></ul>
    19. 19. Company Profile
    20. 20. Canadian Tire SCM Transportation Forecasting & Replenishment by CTC Network of Resources coordinated and planned centrally Transportation Distribution Stores Suppliers
    21. 21. Store Locations 480 stores
    22. 22. Supplier Locations in Canada 78% 15% 7% rest of Canada
    23. 23. Supplier Locations in US & Mexico 16% total inbound from US + Mexico
    24. 24. Total Inbound Volume <ul><li>Domestic = 64% </li></ul><ul><li>USA/Mexico = 16% </li></ul><ul><li>Offshore = 20% </li></ul>
    25. 25. Distribution Center Locations Calgary(07) Brampton(03) Montreal(08) A J Billes(05) <ul><li>173 store </li></ul><ul><li>5300 SKUs </li></ul><ul><li>385 stores </li></ul><ul><li>6000 SKUs </li></ul><ul><li>36000 SKUs </li></ul><ul><li>504 stores </li></ul><ul><li>15000 SKUs </li></ul>
    26. 26. CTR Supply Chain Highlights Supplier Distribution Associate Store Consumer Forecasting Replenishment Logistics In Out Operations Planning Transportation
    27. 27. Supply Chain Concepts Forecasting 1 Replenishment 2 In Out Planning 3 Transportation Distribution 4 Execution
    28. 28. Supply Chain Visibility Outbound Direct Ship Domestic Traffic Dealer Order Inbound Direct Ship Domestic Traffic International Traffic Customs Inbound Control Supplier Partners A.J. Billes DC Brampton DC Montreal DC Calgary DC Sheppard DC Vancouver Transload Express Auto Parts 3rd party facilites CTC Stores
    29. 29. CTR Supply Chain Details
    30. 30. Part III. Sustainable growth requires high skilled professionals
    31. 31. Sustainable Growth A modern rabbit and turtle racing <ul><li>Business has entered into a new phase in which sustainable business performance is of fundamental: </li></ul><ul><ul><li>A global competitive advantage </li></ul></ul><ul><ul><li>A catalyst for innovation </li></ul></ul><ul><ul><li>A way to capture new market and financing opportunities </li></ul></ul><ul><li>Business Sustainable Development is to encourage business people to develop a vision of a sustainable company, translate that vision into a management action plan and turn sustainability into a competitive advantage. </li></ul>
    32. 32. Enterprise Analysis <ul><li>Enterprise Analysis describes the business activities that take place in organizations to: </li></ul><ul><ul><li>Identify business opportunities. </li></ul></ul><ul><ul><li>Build their Business Architecture framework. </li></ul></ul><ul><ul><li>Determine the optimum project investment path for the enterprise growth. </li></ul></ul><ul><li>Enterprise Analysis creates a business model to describe how does the company operate to increase both stakeholder’s value and market share. </li></ul>
    33. 33. Role of Business Analyst
    34. 34. Sustainable Development Business Process Management Create Business Model of new enterprise Business process Re-design Continuous Business Improvement Cease of Business Model of old enterprise Improvement Assessment
    35. 35. Road map – portfolio, program and project Enterprise Business Model Project Portfolio (Portfolio) Business Process Management Requirement Group (Program) Business Change Management Requirement (Project) Enterprise Strategy Development Business Process Re-Design Process Continuous Improvement Business Analysts Senior Executive Team Executive Team Business Management Business Administrators Project Managers
    36. 36. Roles in CTR Supply Chain <ul><li>Business perspective </li></ul><ul><ul><li>Supply Chain Analysis </li></ul></ul><ul><ul><li>Operational Planning Centre </li></ul></ul><ul><li>Information Service </li></ul><ul><ul><li>Enterprise Resource Management </li></ul></ul><ul><ul><li>Service Oriented Architecture / WEB 2.0 </li></ul></ul><ul><ul><li>Business Intelligent </li></ul></ul><ul><li>Management </li></ul><ul><ul><li>Business Administration / Management </li></ul></ul><ul><ul><li>Business Analyst </li></ul></ul><ul><ul><li>Project Management </li></ul></ul><ul><ul><li>Quality Management </li></ul></ul><ul><ul><li>Risk Management </li></ul></ul>
    37. 37. Knowledge Body of SCM <ul><li>APICS required courses </li></ul><ul><ul><li>1. Basics Supply Chain Management </li></ul></ul><ul><ul><li>2. Master Schedule Planning </li></ul></ul><ul><ul><li>3. Detailed Schedule Planning </li></ul></ul><ul><ul><li>4. Execution And Control Operation </li></ul></ul><ul><ul><li>5. Strategic Management Resources </li></ul></ul><ul><li>P.Log. - Professional Logistics </li></ul><ul><ul><li>Process Management </li></ul></ul><ul><ul><li>Online Process Management   </li></ul></ul><ul><ul><li>Lean Supply Chain Logistics   </li></ul></ul><ul><ul><li>Lean Healthcare Logistics    </li></ul></ul><ul><ul><li>Frontline Logistics </li></ul></ul><ul><ul><li>Essentials in Logistics </li></ul></ul><ul><ul><li>Supply Management </li></ul></ul><ul><ul><li>Executive Program   </li></ul></ul><ul><li>Transportation CITT </li></ul><ul><ul><li>Transportation </li></ul></ul><ul><ul><li>Logistics professes </li></ul></ul><ul><ul><li>Business Approach to Writing </li></ul></ul><ul><ul><li>Business Law </li></ul></ul><ul><ul><li>Business Management </li></ul></ul><ul><ul><li>Business Strategy </li></ul></ul><ul><ul><li>Financial Management </li></ul></ul><ul><ul><li>Introductory Economics </li></ul></ul><ul><ul><li>Marketing: An Introduction </li></ul></ul><ul><ul><li>Organizational Behaviour </li></ul></ul><ul><ul><li>Risk Assessment </li></ul></ul><ul><ul><li>Integrated Logistics </li></ul></ul><ul><ul><li>any two (2) of the following: </li></ul></ul><ul><ul><li>Logistics Decision Modelling </li></ul></ul><ul><ul><li>Transportation Economics </li></ul></ul><ul><ul><li>Transportation Law </li></ul></ul>
    38. 38. Quality - Six Sigma Certification <ul><li>Typical Six Sigma Courses: </li></ul><ul><ul><li>Six Sigma Champion Launch </li></ul></ul><ul><ul><li>Six Sigma Process Green Belt </li></ul></ul><ul><ul><li>Six Sigma Process Black Belt Six Sigma Transactional Green Belt </li></ul></ul><ul><ul><li>Six Sigma Transactional Process Black Belt - four weeks </li></ul></ul><ul><ul><li>Six Sigma Master Black Belt </li></ul></ul><ul><ul><li>Design for Six Sigma or DFSS </li></ul></ul><ul><ul><li>Introduction to Minitab for Six Sigma Belts </li></ul></ul><ul><ul><li>Advanced Minitab for trained Six Sigma Belts </li></ul></ul><ul><li>Other Courses: </li></ul><ul><ul><li>Project Management </li></ul></ul><ul><ul><li>Presentation Skills </li></ul></ul><ul><ul><li>Change Management </li></ul></ul><ul><ul><li>Statistical Thinking for Leaders </li></ul></ul><ul><ul><li>Business Process Charting </li></ul></ul><ul><ul><li>Design of Experiments </li></ul></ul><ul><ul><li>Statistical Process Control </li></ul></ul><ul><ul><li>Mixture Experimentation </li></ul></ul><ul><ul><li>Test Methods </li></ul></ul>
    39. 39. Customers Relationship Management <ul><li>Introduction to CRM - Redefining – Demystifying </li></ul><ul><li>CRM Business Strategy - Planning and Developing </li></ul><ul><li>Relationship Marketing - The People Perspective </li></ul><ul><li>Relationship Management - The Process Perspective </li></ul><ul><li>CRM and Sales Management - Internal Relationships </li></ul><ul><li>Managing Research - Knowing your Prospects and Customers </li></ul><ul><li>Building the CRM Business Case </li></ul><ul><li>Managing Loyalty </li></ul><ul><li>Creating and Managing Relationship Lifetime Value – Measurement </li></ul><ul><li>Harnessing the CRM Power of Data </li></ul><ul><li>Your Company's Future and CRM </li></ul><ul><li>Making it a Reality </li></ul>
    40. 40. Product Management Pragmatic Marketing Certification 16% The process of setting goals, developing strategies, and outlining tasks and schedules to produce a market-driven product. Product Planning 19% The process of determining a company's long-term goals relative to the product, and then identifying the best approach for achieving those goals. Product Strategy 17% The process of determining the value of a product by examining its numerical, measurable characteristics. Quantitative Analysis 38% Research intended to predict the future of a market. Market Analysis 10% An understanding of the product management profession, terminology and basic concepts. Product Management
    41. 41. University Related Subjects <ul><li>Industrial Engineering </li></ul><ul><li>Business Analyst – IIBA </li></ul><ul><ul><li>http://www.TheIIBA.org </li></ul></ul><ul><li>Project Management Professional – PMP </li></ul><ul><ul><li>http://www.PMI.org </li></ul></ul><ul><li>Processes Management – P.BPM </li></ul><ul><ul><li>http://www.bpmcouncil.org </li></ul></ul><ul><li>Product Management - Pragmatic Marketing (PMC) </li></ul><ul><ul><li>http://www.pragmaticmarketing.com </li></ul></ul><ul><li>Custums Relationship Management (P.CRM) </li></ul>
    42. 42. Modern Knowledge Structure ● ● ● ● ● ● ● ● Project management ● ● ● ● ● ● ● Product life cycle management ● ● Product design ● ● ● ● ● ● ● ● Supply Chain ● ● ● ● ● ● ● ● Business law ● ● ● ● ● ● ● ● Communication ● ● ● ● ● ● ● ● Quality Assurance ● ● ● ● ● ● ● ● Quality management ● ● ● Operational research ● ● ● ● ● ● ● ● Risk Management ● ● ● ● ● ● ● ● Quantitative analysis ● ● ● ● ● ● ● ● Qualitative analysis ● ● ● Marketing Analysis ● ● ● ● ● ● ● ● Business Analysis - Process ● ● ● ● ● ● ● ● Business Analysis - Strategy ● ● ● ● ● ● ● Business budget management ● ● ● ● ● ● ● Time schedule QA PMP P.BPM IIBA CITT CSCP P.LOG PMC