Basics Of Supply Chain Management.docx

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Basics Of Supply Chain Management.docx

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Basics Of Supply Chain Management.docx

BasicsOfSupplyChainManagement

Session1

IntroductiontoSupplyChainManagement

CustomerExpectations

Characteristicsthatprovidevaluetothecustomer

Price

Quality

Delivery

Pre-andpost-saleservice

Flexibility（productandvolume）

1-7

CustomerExpectations（cont3>.）

OrderqualifiersCompetitivecharacteristicsneededtobeaviablecompetitor

OrderwinnersCompetitivecharacteristicsthatcausecustomerstochoosefirm’sproductsandservices

1-8

LeadTime

“Aspanoftimerequiredtoperformaprocess”

—APICSDictionary

Deliveryleadtime

“Thetimefromthereceiptofacustomerordertothedeliveryoftheproduct”

—APICSDictionary

Cumulativeleadtime

“Thelongestplannedlengthoftimetoaccomplishtheactivityinquestion”

—APICSDictionary

1-11

ManufacturingStrategies

Make-to-Stock

Design

Inventory

Manufacture

Assemble

Ship

DeliveryLeadTime

Manufacture

Inventory

Assemble

Ship

Manufacture

Assemble

Inventory

Ship

Purchase

Manufacture

Assemble

Ship

Engineer-to-Order

Make-to-Order

Assemble-to-Order

DeliveryLeadTime

Reprintedwithpermission,J.R.TonyArnold,IntroductiontoMaterialsManagement,Prentice-Hall.

1-12

ConflictsinTraditionalSupplySystems

Finance

Marketing

Operations

Thisimplies

Inventoryinvestment

Traditional

Objective

Customerservice

Productionefficiency

Increaseprofitandcashflow,reduceinvestment

Increaserevenue

Reducemanufacturingcost

1-18

ManufacturingProcesses

Continuous

Production

Repetitive

Production

ProductLayout

IntermittentProduction

（JobShop）

ProcessLayout

ProjectLayout

ManufacturingProcesses

1-21

CharacteristicsofProductLayout

Limitedrangeofsimilarproducts

Dedicatedworkstations

Sufficientdemand

Capitalintensive

1-23

AdvantagesofProductLayout

Littlework-in-processinventory

Shortthroughputandmanufacturingleadtimes

Lowerunitcost

1-24

CharacteristicsofProcessLayout

Intermittentlotproduction

Manydifferentpartsprocessedatworkstations

General-purposemachinery

Similartypesofskillsandequipmentineachdepartment

Workmovesonlytorequiredstations

1-26

CharacteristicsofProcessLayout

Relativelyeasytochangeproductorvolume

Complexandexpensiveproductionandinventorycontrol

Highwork-in-processinventorylevels

Longerleadtimes

1-27

CharacteristicsofProjectLayout

Usedforlarge,complexprojects

Projectremainsinonelocationforassembly

Avoidscostofmovingtheproduct

1-29

BasicsofSupplyChainManagement

Session2

Forecasting

PlanningandControlHierarchy

Ateachlevel,therearethreequestions:

Whatarethepriorities?

Whatcapacityisavailable?

Howcandifferencesberesolved?

CapacityManagementTechniques

CapacityRequirementsPlanning（CRP）

PriorityManagementTechniques

ResourcePlanning（RP）

ProductionPlan

Rough-CutCapacityPlanning（RCCP）

MasterProductionSchedule

MaterialRequirementsPlanning（MRP）

ProductionActivityControl（PAC）

OperationSequencing

Input/OutputControl

1-32

ManufacturingResourcePlanning（MRPII）

“Amethodfortheeffectiveplanningofallresourcesofamanufacturingcompany”

—APICSDictionary

Objective:

tointegratetheresourcesofanorganization

1-33

SourcesofDemand

Allsourcesofdemandmustbeidentified:

Customers

Spareparts

Promotions

Intracompany

Other

2-4

WhatShouldBeForecast?

Businessplan

Marketdirection

2to10years

Salesandoperations

planning

Productlinesand

families

1to3years

Masterproduction

schedule

Enditemand

option

Months

Forecast

TimeFrame

Level

2-8

PrinciplesofForecasting

Forecasts

Arerarely100%accurateovertime

Shouldincludeanestimateoferror

Aremoreaccurateforproductlinesandfamilies

Aremoreaccuratefornearerperiodsoftime

2-9

QualitativeTechniques

Arebasedonintuitionandinformedopinion

Tendtobesubjective

Areusedforbusinessplanningandforecastingfornewproducts

Areusedformedium-termtolong-termforecasting

2-11

QuantitativeTechniques

Basedonhistoricaldatausuallyavailableinthecompany

Assumefuturewillrepeatpast

2-12

ExtrinsicTechniques

Basedonexternalindicators

Usefulinforecastingtotalcompanydemandordemandforfamiliesofproducts

2-13

IntrinsicQuantitativeTechniques

Month

Sales

January

February

March

April

May

June

July

August

September

October

November

December

January

2-14

MovingAverageForecasting

Canbeusedtofilteroutrandomvariation.

Longerperiodssmoothoutrandomvariation.

Ifatrendexists,itishardtodetect.

Manualcalculationscanbecumbersomewhendealingwithmoreperiods.

2-16

Seasonality

Measurestheamountofseasonalvariationofdemandforaproduct

Relatestheaveragedemandinaparticularperiodtotheaveragedemandforallperiods

2-20

SeasonalSales

AverageSales

forAllPeriods

2-22

PlanningandControl

Ateachlevelwemustanswerthesequestions:

Whatarethedemandpriorities?

Whatcapacityisrequired?

Whatcapacityisavailable?

3-2

ProductionPlan

Business

Plan

MasterProductionSchedule

Planning

Execution

MaterialRequirementsPlan

ProductionActivityControlandPurchasing

TypicalCharacteristicsoftheProductionPlan

12-monthtimehorizon

Fluctuatingorseasonaldemand

Planmadeforproductfamilies

Varietyofmanagementobjectives

3-4

DevelopingaProductionPlan

Threebasicstrategiescanbeused:

Match/chase

Level

Combination/hybrid

3-5

ChaseStrategy

Production

Demand

3-6

Period

Units

ChaseStrategy

Advantages:

Stableinventory

Variedproductiontomeetsalesrequirements

Disadvantages:

Costsofhiring,training,overtime,andextrashifts

Costsoflayoffsandimpactonemployeemorale

Possibleunavailabilityofneededworkskills

Maximumcapacityneeded

3-7

LevelProductionStrategy

Reprintedwithpermission,J.R.TonyArnold,IntroductiontoMaterialsManagement,Prentice-Hall.

3-8

LevelProductionStrategy（cont.）

Advantage:

Smooth,levelproductionavoidslaborandcapitolcostsofdemandmatching

Disadvantage:

Buildupofinventory

Requiresamoreaccurateforecast

3-9

CombinationStrategy

Reprintedwithpermission,J.R.TonyArnold,IntroductiontoMaterialsManagement,Prentice-Hall.

3-10

CombinationStrategy（cont.）

Producesatorclosetofullcapacityforsomepartofthecycle

Producesatalowerrate（ordoesnotproduce）duringtherestofthecycle

Makesuseofavailablecapacity,yetlimitsinventorybuildupandinventorycarryingcosts

3-11

Make-to-StockProductionPlan

Goodsareputintoinventoryandsoldfrominventory

Usedwhen

Demandisconstantandpredictable

Onlyafewproductoptionsexist

Deliverytimesareshorterthantimeneededtomaketheproduct

3-12

Make-to-StockProductionPlan

Informationneeded

Forecastbytimeperiodfortheplanninghorizon

Openinginventory

Desiredendinginventory

3-13

ResourceRequirementsPlanning

Theproductionplanmustbecomparedwithexistingresources

Arerequiredresourcesavailable?

Ifnot,howwilldifferencesbereconciled?

3-20

BasicsofSupplyChainManagement

Session3

MasterPlanning

MasterProductionSchedule

Statesrequirementsforindividualenditemsandoptionsbydateandquantity

Constrainedbyandsupportstheproductionplan

“Disaggregates”theproductionplan

3-22

ObjectivesofMasterScheduling

Maintaindesiredlevelofcustomerservice

Makebestuseofresources

Keepinventoriesatdesiredlevel

3-23

RelationshiptotheProductionPlan

3-25

Rough-CutCapacityPlanning

Rough-cutcapacityplanningcheckswhethercriticalresourcesareavailabletosupportthepreliminarymasterschedule

Aresourcebillshowsthetimerequiredforindividualitemsonacriticalresource

3-29

TheMPS

TheMPSisnot

Asalesforecast

Awishlist

Afinalassemblyschedule

TheMPSshouldbe

Theanticipatedbuildschedule

Realisticandachievable

3-31

Available-to-Promise（ATP）

Onhand=200units

Period123456

Customerorders160202060

MPSscheduledreceipts200200200

Available-to-promise

3-33

PlanningHorizon

Theplanninghorizonistheamountoftimethemasterscheduleextendsintothefuture

Thisisnormallysettocoveraminimumofcumulativeleadtimeplustimeforlotsizinglow-levelcomponentsandforcapacitychangesofprimaryworkcenters

—APICSDictionary

3-34

BasicsofSupplyChainManagement

Session4

MaterialRequirementsPlanning（MRP）

ObjectivesofMRP

Todeterminethematerialsrequired

Whatisrequired

Howmuchisrequired

Whenitisrequired

Toestablishandmaintainpriorities

4-4

InputstoMRPProcess

MPS

MRP

PlanningData

BillofMaterial

InventoryStatus

4-5

BillofMaterials

Abillofmateriallistsallthecomponentsneededtomakeoneassembly

Eachparthasauniquepartnumber

Description:

Table

PartNumber:

100

PartNumberDescriptionQuantityRequiredUnitofMeasure

306Woodenlegs4EA433Woodenends2EA

711Woodensides2EA

025Tabletop1EA

822Hardware1Kit

4-6

BillofMaterials

SingleLevel

Multilevel

4-7

Where-UsedandPeggingData

Where-UsedListsalltheparentsinwhichacomponentisused,whetherthereisademandfortheparentornot

PeggingShowstheparentscreatingthedemandforcomponents,thequantitiesneeded,andwhen

Useswhere-usedlogictoidentifycurrentsourcesofdemand

Maybesingle-levelorfull-level

4-9

TheMRPProcess

Determines

Whatisneeded

Howmuchisneeded

Whentoorder

Involves

MPSdata

Billsofmaterial

Inve

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