This document provides an overview of Professor Bowon Kim's lecture on supply chain management. The key points are:
1) Supply chain management is about coordinating activities and participants to create value for customers through optimizing processes, resources, and capabilities.
2) Value is created through a hierarchy from profitability down to capabilities, processes, and resources both within and across firms through inter-firm coordination known as supply chain management.
3) A supply chain consists of multi-tier suppliers upstream and distributors and customers downstream connected in a system to deliver value from raw materials to end customers.
Original Description:
Lecture 1, supply chain management course.
this is a lecture from the course supply chain management, a learning perspective.
This document provides an overview of Professor Bowon Kim's lecture on supply chain management. The key points are:
1) Supply chain management is about coordinating activities and participants to create value for customers through optimizing processes, resources, and capabilities.
2) Value is created through a hierarchy from profitability down to capabilities, processes, and resources both within and across firms through inter-firm coordination known as supply chain management.
3) A supply chain consists of multi-tier suppliers upstream and distributors and customers downstream connected in a system to deliver value from raw materials to end customers.
This document provides an overview of Professor Bowon Kim's lecture on supply chain management. The key points are:
1) Supply chain management is about coordinating activities and participants to create value for customers through optimizing processes, resources, and capabilities.
2) Value is created through a hierarchy from profitability down to capabilities, processes, and resources both within and across firms through inter-firm coordination known as supply chain management.
3) A supply chain consists of multi-tier suppliers upstream and distributors and customers downstream connected in a system to deliver value from raw materials to end customers.
Supply Chain Management A Learning Perspective Lecture 1 Coursera KAIST: SCM101 1 What is Supply Chain Management Why does a firm exist? A firm exists to earn profit. In turn, the firm maximizes its profit by creating value for the market. Value creation by providing products and services to the customers through optimally managing processes, resources, and capabilities Supply chain management is about creating value by coordinating various activities, functions, and participants Value = Utility Cost 2 Value Creation Hierarchy Profitability Value Creation Product/Service Resource Process Capabilities Value-Chain Perspective Inter-firm coordination Supply Chain Management Fundamental Building blocks Capability Process Resource 3 What is Value Chain Value Chain (Porter 1985) Infrastructure Human Resources Technology, R&D Procurement I n b o u n d L o g i s t i c s O p e r a t i o n s O u t b o u n d L o g i s t i c s M a r k e t i n g , S a l e s S e r v i c e s Market, Customers Sources Supportive Activities Primary Activities Upstream Activities Downstream Activities 4 Supply Chain 1 st -tier supplier (e.g., engine) 1 st -tier supplier (e.g., tire) 1 st -tier supplier (e.g., car seat) 1 st -tier supplier (e.g., windows) 1 st -tier supplier (e.g., electronics) Carmaker: assembly car Consumer Dealer 2 nd -tier supplier (e.g., steel, aluminum) 2 nd -tier supplier (e.g., plastic, Rubber) 2 nd -tier supplier (e.g., bolts, nuts) 2 nd -tier supplier (e.g., electronic parts) 2 nd -tier supplier (e.g., auto glass) Multi-tier suppliers Manufacturer Distributor Value Chain/Supply Chain System 5 Supply Chain 6 Value through Supply Chain Management Value S M D C Supplier/vendor Service supporter Manufacturer Service creator Distributor Service contact /provider Customer Supply Chain System Efficiency-driven value more relevant Responsiveness-driven value more relevant Value = Utility Cost Responsiveness Efficiency 7 Supply Chain A Focal Company S M D C Supplier/vendor Service supporter Manufacturer Service creator Distributor Service contact /provider Customer INTEL LGD Microsoft DELL BestBuy Circuit City WALMART End Customer Part suppliers Raw materials INTEL Third-party Logistics Companies DELL HP CJ (a food company) EMART (a major supermarket chain) Individual Retail Stores End customer Farm (farmers, growers) CJ Third-party Logistics Companies EMART Writers Actors Filmmaking (film producers) CGV (a multiplex movie theater) End consumer (movie goers) Focal company Approach the SCM issues from Ms perspective Supply Chain System Various suppliers, vendors (for foods, laundry, ) Ritz-Carlton Hotel (ladies and gentlemen serving) Internal customer contact points External contact points (e.g., on-line sites) End consumer (hotel guests) 8 Value Life Cycle Value Life Cycle Integration of new product innovation and SCM New product innovation Essential condition for sustainable competitive advantage But, until very recently Lack of identity Treated as a separate issue, and dispersed research Supply chain management Traditionally focused on existing products/services Coincided with traditional PLC (product life cycle) Integration of NPI and SCM Looking at the entire value cycle from the new product/service conception to the end of the product/service life (and starting recycling) Firm must understand it to achieve competitive advantage in the global market 9 Value Life Cycle Product Life Cycle C o n c e p t D e v e l o p m e n t NPD-Process Knowledge Product-specific Knowledge (Design, R&D, Marketing, Quality, Mfg, Procure.) Initial Ramp-up Production New Product Innovation P i l o t
P r o d u c t i o n F i n a l
P r o c e s s
f o r M a n u f a c t u r a b i l i t y Ramp-up Quality I mprovement On-going Production Value Life Cycle Cumulative Sales ($) # of Alternative Concepts/Designs PLC NPC (New Product Cycle) 10 SCM101 Course Syllabus Course Objectives As human beings, we all consume products and/or services all the time. Consider fresh strawberries. In order for the strawberries to be on your breakfast table, there must be numerous functions, activities, transactions, and people involved in planting, cultivating, delivering, and consuming strawberries. Moreover, all of these functions, activities, transactions, and people are connected as an integral chain, through which physical products like strawberries themselves and virtual elements such as information and communication flow back and forth constantly. By grouping related functions or activities systematically, we have a supply chain, which is comprised of four primary functions such as supplier, manufacturer, distributor, and finally consumer. A supply chain is essentially a value chain. In this course, we want to understand fundamental principles of value creation for the consumers or the market. We answer questions like how the product or service is made, how the value-creating activities or functions are coordinated, who should play what leadership roles in realizing all these, and so on. We approach all of these issues from a learning perspective, which is dynamic in nature and emphasizes long-term capability building rather than short-term symptomatic problem solving. Grading Policy The final grade is based on eight quizzes and biweekly assignments. To receive a Statement of Accomplishment, you are expected to obtain more than or equal to 60% of the maximum possible score. To receive a Statement of Accomplishment with Distinction you are expected to obtain more than or equal to 80% of the maximum possible score. 11 SCM101 Course Syllabus Main Topic Sub Topic Video length week1 Introduction to value, value creation, and supply chain management 1.1 Value, value creation, supply chain management 20 min 1.2 Efficiency-driven and responsiveness-driven value 20 min 1.3 Focal company in supply chain management 15 min 1.4 Value life cycle 15 min Quiz/Assignment Quiz Sub-total: 70 min week2 Management capabilities 2.1 Definition of management capability 15 min 2.2 Controllability, flexibility, and tradeoff between capabilities 20 min 2.3 Integrating capability 20 min 2.4 Dynamic changes of capability 15 min Quiz/Assignment Quiz, Assignment Sub-total: 70 min week3 Learning perspective 3.1 Definition of learning, learning capability 15 min 3.2 Double-loop and single-loop learning 20 min 3.3 Cause-and-effect diagram 20 min 3.4 Learning propensity model 15 min Quiz/Assignment Quiz Sub-total: 70 min week4 Quality management 4.1 Quality is free? 15 min 4.2 Dimensions of quality 20 min 4.3 Order-qualifying versus order-winning attributes 10 min 4.4 Assignable versus common causes 10 min 4.5 Principles of statistical process control 15 min Quiz/Assignment Quiz, Assignment Sub-total: 70 min 12 SCM101 Course Syllabus week5 New product innovation 5.1 Sequential new product development process 15 min 5.2 Flexible or cross-functional new product development process 20 min 5.3 Implementation strategy 20 min 5.4 Integration with supply chain management 15 min Quiz/Assignment Quiz Sub-total: 70 min week6 Supply chain strategy I: structural and infrastructural dimensions 6.1 Structural dimension 25 min 6.2 Infrastructural dimension 20 min 6.3 Minimization of mismatch between supply and demand 10 min 6.4 Information quality 15 min Quiz/Assignment Quiz, Assignment Sub-total: 70 min week7 Supply chain strategy II: coordination for value creation 7.1 Supply chain coordination 15 min 7.2 Bullwhip effect 15 min 7.3 Postponement 20 min 7.4 Vendor-managed inventory (VMI) 20 min Quiz/Assignment Quiz Sub-total: 70 min week8 Supply chain globalization and sustainability 8.1 Global supply chain management 20 8.2 Scale, scope, and speed in global SCM 15 8.3 Sustainable SCM 20 8.4 Calculus, creativity, and commitment 15 Quiz/Assignment Quiz, Assignment Sub-total: 70 min Total Quiz: 8 times; Assignments: 4 times Total: 560 min