SCM 301 Final Chelko
Top 10 Traits of the best Supply Chains 1-5
1. Sound Strategy Supported by Solid Leadership 2. Intense Focus on Financial Metrics 3. Commitment to Innovation and Process Improvement 4. Close Collaboration with selected partners 5. Superior Strategic Sourcing
Steps for crashing a project
3 steps
Steps to creating a Network Diagram
6 Steps
Top 10 Traits of the best Supply Chains 6-10
6. Excellence in Logistics Execution 7. Proficiency in Planning and Responsiveness 8. High Customer Integration and Satisfaction 9. Ability to Anticipate and manage risk 10. Global Optimization
Slack
= Amount of allowable delay in an activity Slack = LS - ES
Network Diagrams
A graphical tool that shows the logical linkages between activities in a project
Quality Function Deployment (QFD)
A graphical tool used to help organizations move from vague notions of what customers want to specific engineering and operational requirements aka House of Quality
Gantt Charts
A graphical tool used to show expected start and end times for project activities and to track actual progress against these time targets
Network Path
A logically linked sequence of activities in a network design
Cloud Computing
A model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources that can be rapidly provisioned and released with minimal management effort or service provider interaction
Critical Path
A network path that has the longest, or is tied for the longest, linked sequence of activities
Program evaluation and review technique (PERT)
A network-based technique in which there are multiple time estimates for each activity
Critical-Path Method
A network-based technique in which there is a single time estimate for each activity
Match with existing capabilities
A new product or service that allows a manufacturer to use existing parts and manufacturing facilities is usually easier to support than one that requires new ones Service that exploit existing capabilities are especially attractive Companies should consider such factors as production volumes and existing capabilities when designing new products or services
Sequential Development
A process in which a product or service idea must clear specific hurdles before it can go to the next development phase
Information System
A set of interrelated components that collect(or retrieve), process, store, and distribute information to support decision making, coordination, and control in an organization
Project
A temporary endeavor undertaken to create a unique product, service, or result
Concurrent Engineering
An Alternative to sequential development in which activities in different development strategies stages are allowed to overlap with one another, shortening the total development time
Computer-aided design/computer-aided manufacturing system (CAD/CAM)
An extension of CAD where CAD-based designs are translated into machine instructions, which are the fed automatically into computer-controlled manufacturing equipment
Computer-aided design (CAD) System
An information system that allows engineers to develop, modify, share, and even test designs in a virtual world
Project Mngmt gaining importance as discipline due to:
Companies accepting the fact that complex projects can be managed well Pro Organizations such as Project management institute (PMI) have emerged Pace of strategic planning has quickened Traditional role of middle management has shrunk
Decision Support System
Computer-based information systems that allow users to analyze, manipulate, and present data in a manner that aids higher-level decision making
Project Phases
Concept Project Definition Planning Performance Post-Completion
The Development Process
Concept Development Planning Design and Development Commercial Preparation Launch
Obvious Costs
Costs that are easiest to see and manage
Hidden Costs
Costs that are not easy to track but can have major impact Number of parts in a product Engineering Changes Transportation costs
DMADV
Define the project goals and customer deliverables Measure and determine customer needs and specifications Analyze the product or process options to meet the customer needs Design the product or process Verify the new product or process
Step 6:
Determine the critical activities and path(s) in the project
Step 4:
Determine the earliest start time (ES) and the earliest finish time (EF) for each activity
Step 5:
Determine the latest finish time (LF) and latest Start time (LS) for each activity
ERP Things it does
ERP systems pull together all of the classic business functions such as accounting, finance, sales, and operations into a single, tightly integrated package that uses a common database ERP's traditional strengths are in routine decision making and in execution and transaction processing ERP systems capture much of the raw data needed to support higher-level decision support systems (DSS)
Differences across organization levels
Execution and transaction processing Routine decision making Tactical Planning Strategic Decision making
Concept Phase
First of 5 phases where project planners develop a broad definition of what the project is and what its scope will be
Crashing Step 2:
Focus on the critical path or paths. Working one period at a time, choose the activity(s) that will shorten all critical paths at the least cost
Performance Phase
Fourth phase where the organization actually starts to execute the plan
Characteristics of Projects
Have clear starting and ending points after which the people and resources dedicated to the project are reassigned Non-Routine, large or small, may be difficult to manage Typically require significant levels of cross functional and inter-organizational coordination
Step 1:
Identify each unique activity in a project by a capital letter that corresponds only to that activity
Step 3:
If an activity has an immediate predecessor, show that relationship by connecting the two activities with an arrow
Production Volumes
Increased volumes due to developing a new product or service can be handled by expanding a firm's own operations by building new facilities, hiring additional workers, buying new equipment, or joint planning with key suppliers
Internal Supply Chain Management
Information Flows between higher and lower levels of planning and control systems within an organization
Outputs
Initial budget estimates, estimates of personnel needed, and required completion dates
Enterprise Resource Planning (ERP) systems
Large, integrated, computer-based business transaction processing and reporting systems
Crashing Step 1:
List all network paths and their current lengths
Network Design Applications
Logistics information systems that address such long-term strategic questions as facility location and sizing and transportation networks Often using simulation and optimization modeling
Warehouse and Transportation planning systems
Logistics information systems that allocate "fixed" logistics capacity in the best possible way given business requirements
Warehouse Management and transportation execution systems
Logistics information systems that initiate and control the movement of materials between supply chain partners
Cloud Computing Benefits for Operations and Supply Chain Management
Makes it easier for firms to outsource key portions of business process information flows to outside firms Allows for individual or computer systems to upload and retrieve information through a wide range of devices virtually anywhere Makes supply chain information flows faster, more flexible, and cheaper than ever
Four Reasons for developing New products and services
New products or services can give firms a competitive advantage in the marketplace New products or services provide benefits to the firm Companies develop new products or services to exploit existing capabilities Companies can use new product development to block out competitors
Production Costs
Obvious Hidden
Cloud Model's Five Essential Characterisitics
On-Demand self-service Broad Network Access Resource Pooling Rapid Elasticity Measured Service
PMBOK
Part 1: Various Business processes that organizations follow in carrying out projects Part 2: Nine Knowledge areas applicable to nearly all projects
Supplier Relationship Management (SRM)
Planning and Control Activities and information systems that link a firm with its upstream suppliers Ex: Design collaboration, sourcing decisions, negotiations, buy process, supply collaboration
Customer Relationship Management (CRM)
Planning and control activities and information systems that link a firm with its downstream customers Examples: Market analysis, sell process, order management, call/service center management
PMI
Project Management Institute: Sponsors education and certification Sponsors conferences, research, special interest groups Publishes Guide to Project Management Body of Knowledge
Critical Activity
Project activity for which the earliest start time and latest start time are equal. A critical activity cannot be delayed without lengthening the overall project duration
Crashing Step 3:
Recalculate the lengths of all paths and repeat step 2 until the target project completion time is reached or until all options have been exhausted.
Step 2:
Represent each activity in the project by a node that shows the estimated length
Project definition phase
Second phase where project planners identify how to accomplish the work, how to organize the project, the key personnel and resources required to support the project, tentative schedules, and tentative budget requirements
Crashing a Project
Shortening the overall duration of a project by reducing the time it takes to perform certain activities
Business Process Modeling Tools
Software tools that aid business teams in the analysis, modeling, and redesign of business process Graphically design processes, simulate the performance of new processes, help develop costs estimates
Business process management systems (BPMS) products
Software tools that allow analysts to model processes and then automate the execution of the process at run time Develop process maps, define business rules, carry out future business activity
Project Management
The application of knowledge, skills, tools, and techniques to project activities to meet project requirements
Product Design
The characteristics or features of a product or service that determine its ability to meet the needs of the user
Repeatability
The design of products to be less sensitive to variations, including manufacturing variation and misuse, increasing the probability that they will perform as intended
Forward Pass
The determination of the earliest start and finish times for each project activity
Backward Pass
The determination of the latest finish and start times for each activity
Earliest Start time (ES)
The earliest activity can be started, as determined by the earliest finish times for all immediate predecessors ES = Latest EF for all immediate predecessors
Earliest Finish time (EF)
The earliest an activity can be finished, calculated by adding the activity's duration to its earliest start time EF = ES + Duration
Testability
The ease with which critical components or functions can be tested during production
Serviceability
The ease with which parts can be replaced, serviced, or evaluated
Launch Phase
The final phase of a product development effort. For products, this means "filling up" the supply chain with products. For services, it can mean making the services broadly available to the target marketplace.
Concept Development Phase
The first phase of a product development effort where a company identifies ideas for new or revised products and services
Commercial Preparation Phase
The fourth phase of a product development effort where firms start to invest heavily in the operations and supply chain resources needed to support the new product or services
Latest Finish Time (LF)
The latest an activity can be finished and still finish the project on time, as determined by the latest start time for all immediate successors LF = Earliest LS for all Immediate Successors
Latest Start Time (LS)
The latest an activity can be started and still finished the project on time, calculated by subtracting the activity's duration from the latest finish time LS = LF - Activity's Duration
Product development Process
The overall process of strategy, organization, concept generation, product and marketing plan creation and evaluation, and commercialization of a new product
Target costing
The process of designing a product to meet a specific cost objective Setting the planned selling price and subtracting the desired profits as well as marketing and distribution costs, thus leaving the required target costs (design to cost)
Value Analysis
The process that involves examining all elements of a component, an assembly, an end product, or a service to make sure it fulfills its intended function at the lowest total cost
Planning Phase
The second phase of a product development effort company where a company begins to address the feasibility of a product or service
Design for maintainability (DFMt)
The systematic consideration of maintainability issues over the product's projected life cycle in the design and development process
Design for manufacturability (DFM)
The systematic consideration of manufacturing issues on the design and development process, facilitating the fabrication of the products components and their assembly into the overall product Parts standardization Modular Architecture
Design and Development Phase
The third phase of a product development effort where the company starts to invest heavily in the development effort and builds and evaluates prototypes
Planning Phase
Third phase where project planners prepare detailed plans that identify activities, time and budget targets, and the resources needed to complete each task, while also putting into place the organization that will carry out the project
Value =
Value = Function/Cost
Post completion phase
fifth and final phase where the project manager or team confirms the final outcome, conducts a post implementation meeting to critique the project and personnel, and reassigns project personnel.