ppt scm unit iv

7/30/2019 PPT SCM UNIT IV

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UNIT IV

SUPPLY CHAINMANAGEMENT


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TOPICS

Strategic Issues in Supply Chain

Bench marking

Lean Manufacturing


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STRATEGIC PARTNERSHIP

AND ALLIANCES

Partnership:

Vertical relationshipbetween supplier and

customer/buyer are known as partnerships.

Alliances:

Horizontal relationshipsbetween two

suppliers are called alliances.


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HORIZONTAL

RELATIONSHIP - Alliances

+ ++ ++ +

+ +

M

S

C

LS

Supplier1 2


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VERTICAL RELATIONSHIP -

Partnership

+ +

+ +

M

S

C

LS

Supplier customer

+

++

+


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Examples of Horizontal

relationships - alliances

Alcatel , C-Dot join hands- global R&D-

wireless product- Chennai

Allahabad bank + with PNB- 40:60-

banking operations in Kazakhstan, branch

in Hong Kong

British airways and Air Sahara


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Examples for vertical

relationship - partnership

IOCLretails outlets in Srilanka

Tata steelinvest in coal mines

carborough downs coal project in

Queensland, Australia.-


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STRATEGIC

PARTNERSHIP/ALLIANCES Interdependence of partners

Achieve strategic objectives

Reduce overall riskincreasing ROI

Maximizing utilization of scarce resources

Share difficulties-differentiated intermediate or

long- term current and future benefitsJoint competitive advantagejoint strategies


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ra eg c re a ons ps n

og s cs,Handling systems, Equipment Warehousing,

PPP environment


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SC restructuring-issues,

problems and benefits


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TYPES OF STRATEGICRELATIONSHIPS

Partnership sourcing

Supplier--- Customer

Objective: stability/quality

Third party

Supplier- third party -- customer

Objective: focus/cost


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BENCHMARKING

Benchmarking is the process of

comparing one's business processes

andperformance metrics to industry bestsand/orbest practices from other industries.

The term benchmarkingwas first used

by cobblers to measure people's feet forshoes. They would place someone's foot on

a "bench" and mark it out to make the

pattern for the shoes.
http://en.wikipedia.org/wiki/Performance_metrichttp://en.wikipedia.org/wiki/Best_practicehttp://en.wikipedia.org/wiki/Shoemakinghttp://en.wikipedia.org/wiki/Shoemakinghttp://en.wikipedia.org/wiki/Best_practicehttp://en.wikipedia.org/wiki/Performance_metric


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Definition

"Benchmarking is the process of

measuring an organization's internal

processes then identifying, understanding,and adapting outstanding practices from

other organizations considered to be best-

in-class.


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WHY BENCHMARKING

Identify opportunities to improve

performance

Learn from others experiences

Set realistic but ambitious targets

Uncover strengths in ones own

organization

Better prioritize and allocate resources


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Issues and Problems inBenchmarking


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TYPES OF BENCHMARKING

Process benchmarking

Financial benchmarking

Performance benchmarking

Product benchmarking

Strategic benchmarking

Functional benchmarking


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Methods of Benchmarking

Four types of benchmarking methods are

1. Internal: Benchmark within a

corporation for e.g.: between business

units

2. Competitive: Benchmark performance or

processes with the competitors

3. Functional: Benchmark similar processes

within an industry.

4. Generic: Comparing operations between

unrelated industries.


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Process of Benchmarking

Planning

CollectingData

Analysis

ImprovingPractices


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Planning

Determine the purpose and scope of the

project

Select the process to be benchmarked

Choose the team

Define the scope

Develop a flow chart for the process

Establish process measures

Identify benchmarking partners


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Collecting Data

Conduct background research to gain

thorough understanding on the process

and partnering organizations

Use questionnaires to gather

information necessary for benchmarking

Conduct site visits if additionalinformation is needed

Conduct interviews if more detail

information is needed


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Analysis

Analyze quantitative data of partnering

organizations and your organization

Analyze qualitative data of partnering

organizations and your organization

Determine the performance gap


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Improving practices

Report findings and brief management

Develop an improvement

implementation plan

Implement process improvements

Monitor performance measurements

and track progress

Recalibrate the process as needed


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LEAN MANUFACTURING

Introduction: An overall methodology

that seeks to minimize the resources

required for production by eliminatingwaste (non-value added activities) that

inflate costs, lead times and inventory

requirements, and emphasizing the use ofpreventive maintenance , quality

improvement programs.


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Lean manufacturing concepts are proven

strategies to help manufacturers obtain

attributes such as: focusing on wastereduction improved lead time maximised

flexibility and upgraded quality.

The term lean was used becauseJapanese business methods used less

human effort, capital invest, floor space,

materials and time in all the aspects of

o erations.


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Definition

In general, lean production refers to

manufacturing processes that improve

upon mass production techniques to

reduce cost, reduce time to produce,

improve quality, and better respond to

market demands.


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Definition

Lean manufacturing can be defined as a

systematic approach to identifying and

eliminating waste through continuous

improvement by flowing the product at

the pull of the customer in pursuit of

perfection.


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Lean Chart


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5 Elements of LM

Value

Continuous ImprovementCustomer Focus

Perfection

Focus on wastage


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TRADITIONAL VS LEANMANUFACTURING

A key difference in Lean manufacturing is

that it is based on the concept that

production can and should be driven byreal customer demand.

Instead of producing what you hope to sell,

Lean manufacturing can produce whatyour customer wants with shorter lead

times.


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Cont

Instead of pushing the products to the

market, they are pulled through a system

thats set up to quickly respond tocustomer demands.

Lean manufacturing are capable of

producing high quality productseconomically in lower volumes and

bringing them to market faster that mass

producers.


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Cont

Lean management is about operating the

most efficient and effective organisation

possible, with the least cost and zero waste.


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Elements of LeanManufacturing

Elimination of Waste: Waste is defined as

anything that consumes material or labor

and that does not add value to the final endcustomer.

Equipment Reliability: Equipment that

runs when production requires it to runProcess Capability: Processes which

always make good parts.


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Continuous Flow:

Material flows one part at a time vs. mass

production using big batches.Less inventory required throughout the

production process, raw material, WIP, and

finished goods.Reduces defects

Reduces lead time. Speeds up order to

delivery time.


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Cont.

Error Proofing: Ways to prevent the

product from being built incorrectly.

Stop the Line Quality System: Theproduction line is stopped when bad

quality is being produced.

Kanban System: Kanban is a pull materialsystem. The material is pulled through the

production process by customer demand.

Kanban uses cards to move material along

the value stream.


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Cont..

Standard Work: Standard Work is a

system of organizing work steps and

documenting them. The team leaderprepares the Standard Work.

Visual Management: When a plantutilizes Visual Management fully, a new

employee can understand how to do his job

from the visual information in the plant.


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Cont..

In Station Process Control: Each

workstation has the information and

equipment for the worker to inspect andproduce good quality parts.

Level Production: Production is leveled tocustomer demand.


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Cont.

Takt Time: Production is paced to

customer demand. Takt Time = Time

available to produce a product divided bythe number of parts that the customer

wants to buy.

Quick Changeover: A system to change

over from one product to another quickly.


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Agile Manufacturing

Introduction: Manufacturing industry is

on the verge of a major paradigm shift.

This shift will take us away from mass

production, way beyond lean

manufacturing, into a world of Agile

Manufacturing.


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Definition

Agile manufacturing is a method for

manufacturing which combine our

organization, people and technology into

an integrated and coordinated whole.


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Definition

Agile manufacturing is a term applied to

an organization that has created the

processes, tools, and training to enable it

to respond quickly to customer needs and

market changes while still controlling costs

and quality.

h d d il


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Why do we need agile

Global Competition is intensifying.

Mass markets are fragmenting into

niche markets.

Cooperation among companies is

becoming necessary, including

companies who are in direct competitionwith each other.


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Cont

Customers are expecting:

Low volume products

High quality productsCustom products

Very short product life-cycles,

development time, and production lead

times are required.

Customers want to treated and

individuals.

Goldman et al suggest


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Goldman et al. suggestthatAgility has four underlying

components:1. Delivering value to the customer;

2. Being ready for change;

3. Valuing human knowledge and skills;

4. Forming virtual partnerships.


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Benefits of agile manufacturing

Specialization

Customization

Flexibility

Lower costs

Higher quality

Lower inventory

Shorter lead times


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I t ti f l


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Integration of leanmanufacturing and SCM


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STRATEGIC RELATIONSHIPSIN LOGISTICS

Dowling & Robinson(1990) & Bucklin andSchmalensee(1987)

Cooperation among channel members

Manufacturers necessitydevelop new &improved products

Increasing need for segmentation

Impact and importance of ITIncreasing diversity of delivery systems

Impact of increasing costs


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THE VALUE CHAIN AND STRATEGICRELATIONSHIP IN LOGISTICS

Productivity

Cost

Cust

Valueadded

manufacturer

distributor1

distributor2

S OL M&S

O IL

Incremental

Increases in

Value added

STEPS f t t i


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STEPS for strategicrelationships

Vision formulation

environmental scan- internal & external

Issues formulation - critical

Issues identification and defined

Issue prioritization

Articulating the issues-

assumption,objectives,strategies, action plans,time frames, budgets,monitor plans andresponsibilities.


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THANK YOU

ppt scm unit iv

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