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.