cpet 575 management of technology value chain & supply ...lin/cpet575_mangoftech/2011f/1... ·...

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CPET 575 Management Of Technology

Value Chain & Supply Chain Supporting & Enabling Technologies

Dec. 1, 2011

Paul I-Hai Lin, Professor http://www.etcs.ipfw.edu/~lin

M.S. Technology - IT and Advanced Computer Applications & Industrial Technology/Manufacturing

Purdue University Fort Wayne Campus

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Topics of Discussion

Value Chain & Enabling Technologies

Supply Chain & Enabling Technologies

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Value Chain & Technologies

Value Chain

Competitive Advantage, 1985, by Michael E. Porter, The Free Press, ISBN 0-684-84146-0

• Competitive Strategies• Representative Technologies in a Firm’s Value Chain,

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Technological Policies and Generic Competitive Strategies

Product Tech. Change

Process Tech. Change

Overall cost leadership Overall diff. Focus-seg. cost

leadershipTechnological Policies

• Product dev. to reduce prod. cost by lowering materials content

• Facilitating ease manufacturing

• Simplifying logistical req.

• Learning curve process improvement

• Process improvement to enhance economics of scale

• Product dev. to enhance quality, features, deliverability, or switching costs

• Process dev. to support high tolerance

• Greater QC

• More reliable scheduling

• Faster response time to orders

•Others

• Product dev. to design only enough performance for the segment’s needs

• Product dev. to tune production and delivery system to seg. needs in order to lower cost

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Representative Technologies in Firm’s Value Chain (from Part I, page 8)

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Value Chain Technologies

Inbound Logistics - Technologies• Transportation Technology

• Material Handling Technology

• Storage and Preservation Technology

• Communication System Technology (Wired & wireless)

• Testing Technology

• Information System Technology

• (RFID)

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Operation - Technologies• Basic Product Technology

• Material Technology


• Packaging Technology

• Maintenance Methods

• Testing Technology

• Building Design, Operation Technology


• (Communication System Technology: Wired & wireless – newly added)

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Outbound Logistics - Technologies• Transportation Technology


• Packaging Technology

• Communication System Technology (wired & wireless)


• (RFID)

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Marketing/Sales - Technologies• Media Technology

• Audio and Video Recording Technology

• Communication System Technology


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Services - Technologies• Media Technology




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New Supporting Technologies• Media Technology

Multimedia, Web media


High Definition Video Conferencing (HDVC)


TCP/IP, Internet, e-mail, wired & wireless connection and devices: RFID, sensors, etc


Enterprise Resource Planning, Manufacturing Management, Supply Chain Management, Sales-Force Management, Customer Relationship Management

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Value Chain Technologies Video Conferencing & Collaboration

Video ConferencingCisco Collaboration, http://www.cisco.com/en/US/netsol/ns1007/index.html

Cisco TANDBERG, http://www.tandberg.com/

Polycom – Telepresence, Voice and Video Conference, http://www.polycom.com/index.html?showme=y

Sony Video Conferencing, http://pro.sony.com/bbsc/ssr/mkt-

broadcast/mkt-broadcastvideoconferencing/

Logitech LifeSize Video Conferencing - www.LifeSize.com

Panasonic HD Visual Communications System, WSJ Ad 11/4/2010, www.panasonic.com/hdvc

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Value Chain Technologies Video Conferencing & Collaboration

Internet/Web Video ConferencingAdobe Connect – Web conferencing for the enterprise, http://www.adobe.com/products/adobeconnect.html

Cisco WebEx Web Conferencing, http://www.webex.com/

Video & Web Conferencing, www.MegaMeeting.com

Nefsis Video Conference Software, http://www.nefsis.com/

Microsoft Office Live MeetingIBM LotusLive Engage, https://www.lotuslive.com/en/campaigns/sesimple.phpiVisit, (free), http://www.ivisit.com/

Skype, www.skype.com

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Value Chain TechnologiesInformation Technology

Enterprise IT Systems

• Enterprise Resource Planning (assets, financial resources, distribution, materials, human resources, product lifecycle management, Decision support)

• Manufacturing Resource Management

• Sales-Force Management

• Customer Relationship Management (CRM)

• Supply Chain Management (purchasing, manufacturing, distribution)

• Warehouse Management

Major Software Vendors

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Value Chain TechnologiesInformation Technology

Major ERP Software Vendors• SAP, http://www.sap.com/solutions/business-

suite/erp/index.epx

• Oracle (PeopleSoft Enterprise, JD Edwards Enterprise), http://www.oracle.com/index.html

• Epicor ERP, http://www.epicor.com/Solutions/Pages/ERP.aspx

• Microsoft Dynamic, http://www.microsoft.com/en-us/dynamics/why-dynamics.aspx

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Medical Device Manufacturer – An Example

Linux/Progress Database Server

MFG/Pro ERP ServerEverypath Mobile Application Server

MS Access ServerCompliant System

Commerce server

Medical Device Enterprise Application Area

Mobile Application entityProxy Server

New York

Country

Miami, FL

Beijing, China Paris, FR

Country

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Enterprise IT Application IntegrationMedical Device Manufacturing

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Mobile Agent Sales AutomationMedical Device Manufacturing

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Mobile Agent Sales AutomationMedical Device Manufacturing

Process Order

Approval

ItemDetails

Customer ServiceError

Customer Data

Inventory Data

ErrorPC

Customer

Orders

Invoices;Status

PC

Sales

Orders Status

Mobile Agent Sales Automation System (Context Diagram)

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Mobile Agent Sales Automation

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Supply Chain Management & Technologies

Supply Chain Management concerns• Suppliers• Transportation & Logistics

• Credit and Cash Payment (Transfers)

• Distributers

• Account Payables and Receivable

• Warehousing & Inventory

• Order Fulfillment

• Information Sharing: Customer, Forecasting, and Production

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Supply Chain Management Topics1

• Supply chain risk and management• Supply chain economics:

Supply chain cost (52% ≤ as a percentage of sales ≤ 79%)

Make-or-buy decision

Outsourcing

• Supply-Chain Strategies Many suppliers, Few suppliers

Vertical integration: Raw materials Finished goods

Joint venture

Keiretsu networks (系列取引)

Virtual companies (on-demand)

1Operations Management, 1oth ed, by Jay Heizer and Barry Render, Prentice Hall

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Supply Chain Decision Strategies1

• “What is the Right Supply Chain for Your Product?” Marshall L. Fisher, Harvard Business Review, March-April 1997.

• Strategies: Low-cost Strategy

Response Strategy

Differentiation Strategy

• Six Factors (goals, criteria, characteristics): Supplier’s Goal, Primary Selection Criteria

Process Characteristics, Lead-Time Characteristics

Product-Design Characteristics

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Managing Supply Chain1

• Mutual Agreement on Goals• Trust

• Compatible Organizational Cultures

Issues in an Integrated Supply Chain1

• Local Optimization

• Incentives (sales incentives, Quantity discounts, Quotas, Promotions, etc)

• Large Lots


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Opportunities in an Integrated Supply Chain1

• Accurate “Pull” Data

• Lot Size Reduction

• Single-Stage Control of Replenishment: RFID tags, monitoring and managing inventory

• Vendor-Managed Inventory

• Collaborative Planning, Forecasting, and Replenishment

• Blanket Orders (long-term purchase commitment to a supplier for items..)

• Standardization

• Postponement1Operations Management, 1oth ed, by Jay Heizer and Barry Render, Prentice Hall

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Opportunities in an Integrated Supply Chain (cont.)1

• Drop Shipping and Special Packaging Drop Shipping – direct shipping from the supplier to the end

customer

• Pass-through Facility (distribution center)

• Channel Assembly


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Aggregate Planning, Forecast

E-Procurement, Online Catalog, Auctions, Request For Quotes (RFQs)

Capacity & Level Planning

Production/Demand, Workforce/Subcontract, Outsourcing/Vendors

Material Requirements Planning

Inventory Management

Real-Time Inventory Tracking

Security and Just-In-Time

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Conclusion

MIT ESD 290 Special Topics in Supply Chain Management (April 28, 2008, 16 Video presentations), http://www.youtube.com/watch?v=IqmrNUoiy7g&feature=&p=F9071540F59BA1F0&index=0&playnext=1

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