OMIS 320 Final Exam
Patient Care Strategies for
Scares Resource Situations
Silos
companies had unintegrated information systems that supported only the activities of individual buisness functional areas,
Efficient, integrated information systems are very important for companies to be
competitive
Futher impetus for adopting Enterprise Resource Planning system has come from ?
compliance with the Sarbanes-Oxley Act of 2002
A supply chain is only as secure as its
weakest link
Use of emergency control center to manage responses to unexpected supply chain distributions
Risk and Security Advanced Initiatives
Active participation of employees in industry security associations and conferences
Risks and Security - Proactive
Creating an excuetivelevel postion such as director of corporate secruity
Risks and Security - Proactive
Develop formal and comprehensive approach for assessing the firms exposure to security risks
Risks and Security - Proactive
Development of freight security plans in collaborations with 3PLS
Risks and Security - Proactive
Use of cyber-intrusion detection system
Risks and Security - Proactive
Largest company to sell ERP is
SAP
Use of Access Badges
Warehouse Security
Use of Photo ID Badges
Warehouse Security
Bullwhip Effects causes
- demand forecast updating - order batching - price fluctuations - rationing *effect every company in every buisness*
2. Total SCM Costs
$ amount to process orders, purchase, manage inventory, transportation and information systems
1. Forecast Accuracy
% accuracy of forecasts
Current ERP system evolved as a result of
- Advancement of hardware and software technology - development of a vision of integrated information systems - reengineering of companies to shift from a functional focus to a business process focus
Performance measurement systems must
- Link SC trading partners to achieve breakthrough performance in satisfying end users - Overlay the entire supply chain to assure that all contribute to supply chain strategy
Key Considerations for Patient Care Strategies for Scares Resource Situations
- Mass casualty Events - Infrastructure Damage/Loss - Pandemic/Epidemic - Supplier Shortage - Recall/Contaminations of Product - Isolations of Facility due to Access Problems (flooding etc.)
Other branches of ERP Software Emerges
- Oracle - Peoplesoft
The evolution of Information System
- Silos - Current ERP system evolved as a result of
Obstacles to Process Integration
- The Silo Mentality - Lack of Visibility - Lack of Trust - Lack of Knowledge - The Bullwhip Effect
Strategies for Risk Management "In Practice"
- prepare - substitute - adapt - conserve - re-use - re-allocate
What are the 8 Key Supply Chain Business Processes to INTEGRATE
1. Customer Relationships Management 2. Customer Service management 3. Demand Management 4. Order fulfillment 5. Manufacturing flow Management 4. Supplier relationship management 7. Product development and commercialization 8. Returns Management
"You can't improve what you don't measure"
1. Firms with best supply chains create hierarchies of precise performance measures at the execution level 2. Performance measures must be visible and communicated to all members of the Supply Chain
8 Specific Measures to Adopt
1. Forecast Accuracy 2. Total SCM Costs 3. Cash-to-Cash Cycle Time 4. Production Flexibility 5. Delivery Performance 6. Perfect Order 7. E-Buisness Performance 8. Environmental Performance
What are the two many objectives?
1. Integrate Information Systems 2. Mitigate Risks
ERP Software Emerges: SAP and R/3
1972: fiver former IBM system analysts in Mannahelm, Germany formed Systems Analysis and Program Development, or SAP (Systemanalyse und Programmentwucklung)
Risk Mitigation
A risk response strategy whereby the project team acts to decrease the probability of occurrence or impacts of a threat.
3. Cash-to-Cash Cycle Time
Average # of days between paying for materials and getting paid by customers
5. Delivery Performance
Average % of deliveries shipped or received on time
7. E-Buisness Performance
Average % of electronic orders received for all SC members
6. Perfect Order
Average % of orders that arrive on time, complete, and undamaged
4. Production Flexibility
Average time required to provide an unplanned 20% increase in production
Allows management to manage operations, not just monitor them
Benefits of Enterprise Resource Planning
Can dramatically reduce costs and improve operational efficiency
Benefits of Enterprise Resource Planning
Easier global integration
Benefits of Enterprise Resource Planning
Integrates people and data while eliminating the need to update and repair many seperate computer systems
Benefits of Enterprise Resource Planning
More efficient business processes that cost less than those in unintegrated systems
Benefits of Enterprise Resource Planning
Computer hardware and software developed in the 1960s and 1970s
Computer Hardware and Software Development
First practical buisness computers were the mainframe computer of the 1960s
Computer Hardware and Software Development
Over time, computers got faster, smaller and cheaper
Computer Hardware and Software Development
The Silo Mentality
Controlling every detail in business but makes people loss creativity. - Using the cheapest suppliers. - Ignoring customers. - Assigning few resources to new product & service design
Traditional Performance Measures
Cost-based and financial statistics from: annual report, balance sheet and income statement data
Acts as a company-wide computing eviroment
Enterprise Resource Planning system
Can deliver consistent data across all buisess functions in real time
Enterprise Resource Planning system
Includes a database that is shared by all functional areas
Enterprise Resource Planning system
Customs-Trade Partnership Against Terrorism (C-TPAT) and its security program Free and Secure Trade program (FAST)
Freight Security
Data available in real time
Goals of SAP
Develop a standard software product that could be configured to meet the needs of each company
Goals of SAP
Users working on computer screens, rather than the voluminous printed output.
Goals of SAP
100% of air cargo prescreened, as mandated by the
Improving America's Security Act of 2007
The bullwhip effect can result in
Inefficiencies, excess inventory and increased costs within the supply chain
Process Business Model
Information flows between the operating levels without top management's involvement
Productivity and Utilization Measures Formula
Output / Costs of (labor + capital + energy + material) or Output / Cost of Labor
Focus of system should beo n value of creation for end customers
Performance Measurement Systems
Link SC trading partners to achieve breakthrough performance in satisfying end users
Performance measurement systems must
Overlay the entire supply chain to assure that all contribute to supply chain strategy
Performance measurement systems must
Costs and Profits can be hidden or manipulated
Problem with Traditional Performance Measures
Financial performance measures cannot adequately capture a firm's ability to excel in these areas.
Problem with Traditional Performance Measures
Maximizing current stock prices does not mean firm is performing well
Problem with Traditional Performance Measures
This information does not reflect the underlying performance of an organizations productive systems.
Problem with Traditional Performance Measures
Less time spent doing preventive maintenance and training for greater performance and profits in the future
Productivity Measures
Tendency to continue producing and adding to inventory to keep machines and people busy
Productivity Measures
Traditional measures favor the short term
Productivity Measures
Information systems configuration used until recently
Silos
The continuing evolution of ERP
Understanding the social and business implications of new technologies is not easy
Productivity Measures
Useful but have same problems as revenues, costs, and profits
8. Environmental Performance
Various including % of ISO 14001 partners, Assessments of enviromenta; performance, amount of carbon emissions
Hiring of security services and guards
Warehouse Security
Inbound and outbound checks
Warehouse Security
Risk Matrix
a simple grid in which the horizontal axis represents the probability that an event will occur and the vertical axis relates to the severity of the impact on the organization or function if the event occurs
Transportation Worker Identification Credential (TWIC)
became mandatory for all oort workers in 2009
An Enterprise Resource Planning System
can help integrate a company's operations
Secruity management collaboration should include, for example
contractual requirements for secure systems
Productivity decisions may actually increase
costs and reduce quality
Department of Homeland Security (DHS) (2002)
created to coordinate and unify national homeland security efforts.
Aviation and Transportation Security Act of 2001
created transportation security administration (TSA) to oversee transportation security which oversees 430 US airports
Lack of Trust
doing something that breaks trust for department, etc.
The Bullwhip Effect
erratic shifts in orders up and down the supply chain
Lack of Visibility
example - stack of papers on desk to be logged but hasn't been yet, other workers can't complete work until papers are logged
- Customers Complaints: late delivery - New customer Set up - New Product Development - Complete Inventory audit
examples of business processes
Risk and Security Advanced Initiatives
full collaborations with key suppliers and customers in developing quick recovery and continuity plans for supply chain disruptions
Management's Impetus to Adopt ER
functional model led to tip-heavy and overstaffed organizational incapable mof reacting quickly to change
Firms with best supply chains create
hierarchies of precise performance measures at the execution level
Performance measures must be
visible and communicated to all members of the Supply Chain
Performance Measurement Systems
members must jointly agree on a supply Chain performance measurement system
Lack of Knowledge
not knowing what you don't know example - software installed on computers, but no one knows how to use it.
Moore's Law
number of transistors that could be built into a computer chip doubled every 18 months
Enterprise Resource Planning vendors are working to solve adaptability problems that
plague customers
PrePass
prequalified U.S. motor carriers bypass state inspection & weigh stations at highway speeds, using automated vehicle identification technology
Managing Supply Chain Risk and Security
reducing the risk of intentionally created distributions in supply chain operations
The phenomenon where a small fluctuations and demand for a product at the consumer level can lead to much larger fluctuations in demand at the upstream stages of supply chain, such as retailers, wholesalers and manufacturers
refers to the BULLWHIP effect
Sarbanes-Oxley Act of 2002
requires companies to substantiate internal controls on all information
Enterprise Resource Planning systems have been in common use only since
the mid-1990s
Process Intergration
the sharing of information and coordinating resources to jointly manage a process
Goal of Freight Security
to ensure the security of global supply chainhs in general and international trucking
Train Participants
to test the resilience of the supply chain to security disruptions
Freight Security
transportation across national boundaries introduces added complexity, particularly security
