basics of supply chain management
1. businesswide concepts 24%
this section of the outline covers basic business wide concepts, including the various production environments used for the transformation process and financial fundamentals.
also in this section, three of the more common company wide management approaches (mrpii, jit/lean and tqm) are individually presented, together with their interrelationships.
a. organization fundamentals:
the basic concept of a supply chain includes all activities and processes used to provide a product or service to the ultimate customer. it also includes internal organization dynamics, such as the traditional conflict between functional areas.
1. elements of the supply chain
a.supplier: provider of goods or services. seller with whom the buyer does
business. vendor is generic term referring to all sellers in the marketplace.
b.producer: one who creates a good or service.
c. distributors: a business that does not manufacture its own products, but purchase and resell these products. such a business usually maintains a finished goods inventory.
d.retailer: a business that takes title to products and resells them to final
consumers.
e.customer:
a person or organization who receives a good, service, or
information. there are two types of customer:
f. service and support:
2. internal organizational dynamics
b. operating environments:
environments are the individual market and manufacturing factors that combine
to determine the specific operating conditions.
1. definition and impact of
a.customer expectations
b. cumulative lead-time: the longest planned length of time to accomplish the
activity in question. for any item planned thru mrp, it is found by reviewing the lead time for each bill of material path below the item, whichever path adds up to the greatest number defines cumulative lead time. syn. aggregate lead- time, combined lead-time, composite lead-time, critical path lead-time, stacked lead-time.
c. inventory
1) those stocks or items used to support production (raw materials and work-in \u2013process items), supporting activities (maintenance, repair and operating supplies), and customer service (finished goods and spare parts). demand for inventory may be dependant or independent. inventory functions are anticipation, hedge, cycle (lot size), fluctuation (safety, buffer, or reserve), transportation (pipeline), and service parts.
2) in the theory of constraints, inventory is defined as those items purchased for resale and includes finished goods, work in process, and raw materials. inventory is always valued at purchase price and includes no value-added costs, as opposed to the traditional cost accounting practice of adding direct labor and allocating overhead as work in process progresses through the production process.
d. product life cycle
2. process choices
a. project
b. lot/batch/intermittent
c. line/repetitive
d. continuous
3. impact of product design
4. production environment
a. design/engineer to order
b. make to order
c. assemble or package to order
d. make to stock
e. remanufacture
c. financial fundamentals: basic financial statements define the financial reporting
common to most businesses. underlying costs and analysis terms provide further
understanding of statement information and often serve as the basis for
management decisions.
1. statements
a. balance sheet
b. income statement
2. costs
a. cost of goods sold
b. general and administrative
3. analysis
a. cash flow
b. profit
c. margin
d. inventory turns
d. manufacturing resource planning (mrp ii): mrp ii is best understood as a fully
integrated planning and control system that serves as a master game plan for the
business.
1. objectives
2. key principles and characteristics
a. top-management planning tool
b. integrated planning structure
c. cross-functional integration
d. closed loop (feedback)
e. what-if- simulations
f. financial data
e. just-in-time (jit): jit can be understood as a philosophy embodying certain
objectives and as a set of manufacturing techniques described by specific
characteristics.
1. objectives
2. key principles and characteristics
a. flow manufacturing
b. process flexibility
c. quality at the source
d. continuous improvement
e. supplier partnership
f. employee involvement
g. total productive maintenance
h. pull systems
i. work cells
j. elimination of waste
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Basics of Supply Chain Management
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| Upload Date: | 10/14/2008 |
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