Supply Chain Management

Supply Chain Management

1. Introduction to Operations & Supply Chain Management

2. Group Project

   • •Supply chain analysis of an operation •Identify a business •Assign roles and tasks to team members •Discuss and identify the focus of your study •Arrange for collection of data   

3. Process Analysis

   • Process Analysis
     • any part of an organization that takes inputs and transforms them into outputs. 
     • Process Flowcharting--ideal methodology to begin analyzing a process
       • diagram; major elements; process.
       • The basic elements: tasks or operations, flows of materials or customers, decision points, and storage areas or queues. 
       • Process Step Terminologies
     • Cycle Time
       • the average successive time between completions of successive units. 
       • Ex. 100 units of product per 40 hour week. The average throughput rate is 1 unit per 0.4 hours, which is one unit every 24 minutes. Therefore the cycle time is 24 minutes on average.
       • The unit is ONE!!!
     • Utilization
       • the ratio of the time that a resource is actually activated relative to the time that it is available for use. 
   • Types of Processes
   • Process Performance Metrics
     • Operation time = Setup time + Run time Throughput time = Average time for a unit to move through the system Cycle time = Average time between completion of units (production/output) Throughput rate = 1 / Cycle timeEfficiency = Actual output / Standard OutputProductivity = Output / InputUtilization = Time Activated / Time Available
     • Process Throughput Time Reduction
       • 1. Perform activities in parallel   2. Change the sequence of activities  3. Reduce interruptions

4. Facility Layout

   • Facility Layout
     • the process by which the placement of departments, workgroups within departments, workstations, machines, and stock-holding points within a facility are determined. 
     • Basic Formats
       • Work Center (job-shop or functional layout)
         • similar equipment grouped together.
       • Assembly Line (flow-shop layout)
         • work processes arranged according to the steps by which the product is made.
         • Ex. 
         • Assembly Lines Balancing Concepts: The cycle time of the line (is the maximum rate of production) is always determined by the work station taking the longest time.
       • Manufacturing cell Layout
         • products that are similar in processing requirements are produced. 
         • Benefits:  1.Better human relations 2. Improved operator expertise 3. Less in-process inventory and material handling  4. Faster production setup
       • Continuous process
         • production follows a predetermined sequence of steps like assembly line but the flow is continuous rather than discrete. 
       • Project Layout
         • products remains in a fixed location and transforming resources move to the products.
         • Primary considerations: Arranging materials and equipment concentrically around the production point in their order of use.
   • Process Layout: Interdepartmental Flow
   • Service Layout
     • Retail Service Layout
       • Goal--maximize net profit per square foot of floor space Servicescapes   -Ambient Conditions   -Spatial Layout and Functionality -Signs, Symbols, and Artifacts

5. Forecasting

   • Types of Forecasts 1. Qualitative (Judgmental) 2. Quantitative-Time Series Analysis-Causal Relationships-Simulation
   • Demand Management
     • Independent demand:  Can take an active role to influence demand. Can take a passive role and simply respond to demand.
     • Dependent Demand: Raw Materials, Component parts, Sub-assemblies, etc.
     • finding Components of Demand: Average demand for a period of time Trend Seasonal element Cyclical elements Random variation Autocorrelation
   • Qualitative Forecasting Methods
     • Qualitative Methods: Executive Judgment Historical analogy Delphi Method Grass Roots Market Research Panel Consensus
     • why the Exponential Smoothing model has been a well accepted forecasting methodology? It is accurate It is easy to use Computer storage requirements are small
     • The value for alpha or α must be between 0 to 1.

6. Inventory Management

   • Inventory System
     • Defined
     • cost
     • Single-Period Inventory Model
       • -One time purchasing decision (Example: vendor selling t-shirts at a football game) -Seeks to balance the costs of inventory overstock and under stock (based on the average)
     • Multi-Period Inventory Models
       • Fixed-Order Quantity Models (ex. Milk every week)   Event triggered (Example: running out of stock)   Fixed-Time Period Models   Time triggered (Example: Monthly sales call by sales representative)
       • Fixed Order:  1.Demand for the product is constant anduniform throughout the period2. Lead time (time from ordering to receipt) isconstant (the time between place the orderand get them) 3. Price per unit of product is constant 4. Inventory holding cost is based on average inventory   5. Ordering or setup costs are constant (ex. gas the used to go to grocery) 6. All demands for the product will be satisfied (No back orders are allowed)Price per unit of product is constant
   • Miscellaneous Systems & Issue

Images and files in the map