BIÑAS, Miraflor S.

BSA 3RD YEAR

ECOPY

SUPPLY CHAIN, SUPPLY CHAIN MANAGEMENT & 5S

To keep up with the demands of such consensus and temper mental consumers it is important
for a business to work effectively in its supply chain. Managing the supply chain is not the
modern business idea. The wide variety of products will not give the business an advantage
against their rivals, unless it is back up by the equally powerful supply chain ensuring that the
potentials by access is the full products range. Just always remember that supply chain is
always around us. Supply chain and operations are always linked to each other, no business
organization can insist without organization and supply chain.

Supply chain is the sequence of the organizations such as their facilities, functions, and
activities that are involved in producing and delivering a product or service. The clearest
definition of supply chain comes from the small business advancement national center in 2014,
stating that a supply chain consists of all parties involved, directly or indirectly, in fulfilling a
customer request. The supply chain not only includes the manufacturer and suppliers, but also
transporters, warehouses, retailers and customers themselves. Within each organization, such
as manufacturer, the supply chain includes all functions involved in receiving and filing a
customer request. These functions include, but are not limited to, new product development,
marketing operations, distribution, financing and customer service.

The supply chain starts with the raw materials then it will be taken by the logistics provider to a
supplier which is the wholesaler and it will be taken to manufacturers that process the raw
materials into finished products then next it goes to distributer to deliver the product to retailers
and they will sell it to consumers the once the consumers buy the product, it will completes the
cycle and the demand is the one that back and drives the production of the materials and the
cycle will continue. EXAMPLE. (strawberry farm, supplier or the wholesaler, manufacturer that
will make it to strawberry jam. Next is distributer that will deliver the product to retailers which is
the supermarket and they will sell it to consumers, once the consumers buys the product, it will
complete the cycle.

Logistics is the part of the supply chain involved with the forward and reverse flow of goods,
services, cash and information. Logistic management includes management of inbound and
outbound transportation, material handling, warehousing, inventory, order fulfillment and
distribution, third-party logistics, and reversed logistics which is the return of goods from
customers.

Supply chain has the external and internal parts, the external parts provide the raw materials,
parts, equipment, supplies, and other inputs to organization and they deliver outputs that are
goods to the organization’s customers. While the internal parts are part of the operations
function itself, supplying operations with parts and materials, performing work on products, and
performing services.

Supply chain management is a set of approaches utilized to efficiently integrate suppliers,

manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the
right quantities, to the right locations, and the right time, in order to minimize systems wide cost
while satisfying service level requirement.

According to Institute for Supply Management, supply chain management is the design and
management of seamless, value added process across organizational boundaries to meet the
real needs of the end customer.

According to the supply chain council, supply chain management is managing supply and
demand, sourcing raw materials and parts, manufacturing and assembly, warehousing and
inventory tracking, order entry and order management, distribution across all channels and
delivery to the customer.

Simplest definition of supply chain management is getting the RIGHT MATERIALS to produce
the RIGHT PRODUCT in the RIGHT PLACE at the RIGHT TIME with the RIGHT QUALITY and
RIGHT COST.

The 6 Components of the Supply Chain Management are planning, sourcing, making,
delivering, returning and enabling.

PLANNING – It is all about planning the capital needed for the product and services to satisfy
the consumers. It is important that the company is always planning their supply chain in order to
ensure that their supply chain is successful, reliable and delivers value to customers and fulfills
company objectives.

SOURCING – Selecting suppliers to provide the necessary foods and services to create their
product. Once the suppliers are under contract, supply chain administrators are using a method
to track and handle supplier relationship.

MAKING – it is organizing the activities needed to accept raw materials, produce the product,
monitor quality, shipping package and delivery schedule. To ensure that the business produces
goods that meet quality expectations, many businesses assess quality, output from
manufacturing and productivity from workers.

DISTRIBUTION – Also known as logistics, it includes arranging the customer orders,

transporting loads, customer’s invoice and payment collection and organizing distributions.

RETURN – If the product is faulty, it will be reprocessed but if the commodity is unacceptable, it
needs to be returned for sale to the warehouse because every retailer, need a reliable supplier
and is accountable for every faulty products hey made.

ENABLING – It requires many support systems to track information across the supply chain and
ensuring if functions are efficiently running according to the laws and compliance of the
company.
The value of supply chain management to organizations are; scaling and boosting customer
service and support, reduce operating costs, and improve financial position. The three types of
flow to be management are product & service flow, information flow, and financial flow. The
management responsibilities in the supply chain management are the legal, economic and
ethical while the strategic responsibilities in the supply chain management are (1) supply chain
strategy alignment, (2) network configuration, (3) information technology, (4) products and
services, (5) capacity planning, (6) strategic partnerships, (7) distribution strategy, (8)
uncertainty and risk reduction.

The 5S is defined as a methodology that results in a workplace that is clean, uncluttered, safe,
and well organized to help reduce waste and optimize productivity. It can be defined as a set of
rules that will help you organize your surroundings to work in your favor, thus boost your
productivity. It also known as a workplace organization life-hack.

Why bother to organize? When tools or materials are not organized, people waste time trying to
find them or wondering where they belong. When space is messy, clutter can get in the way of
people moving efficiently through the workspace. Also when products are not organized, you
can’t get items to customer as quickly as possible. An organized workplace can inspire
confidence in employees, customers and other people who enter your workplace. Having an
organized workplace, it allows people to do their jobs more efficiently. The greatest benefit of
using 5S is realized when it is part of a larger initiative and the entire organization has adopted
its principles

The 5S quality tool is derived from five Japanese terms beginning with the letter “S”, seiri
(tidiness), seiton (orderliness), seiso (cleanliness), seiketsu (standardization) and shitsuke
(discipline).

THE 5S Model have 5 steps, sort, set in order, shine, standardized and sustain.

STEP 1 (Seiri/tidiness/sort) – Clearing out unnecessary materials that you don’t need in your
job, so basically leave the things that you will only use to do a certain job. Questions to ask
during this step;

What is the purpose of this item

Does it really need to be here

When was the item last used

How frequently is it used

RED TAG – cardboard tags or stickers that are attached to the items in question, it helps you
identify objects that need to be removed from the workplace. (location, description, name of the
person applying for the tag and date of application)

STEP 2 (seiton/orderliness/set in order) – Provide the space needed to organize the important
items, putting everything in a place that is easy to get to, all items should be clearly marked so
anyone can easily find its proper location. Its goal is to create a standardized and consistent
way to store and retrieve tools and materials

LABELS AND SIGNS – An easy way to identify proper placement of tools, materials and
equipment quickly and visually. Larger signs is helpful especially to the people who are not used
to your workplace or new to the company.

LINE MARKING – It divides the location of the raw materials, finished goods, shipping and other
static locations, having a line mark, it is easier for employees and visitors to make sense of
space and misplaced items and equipments are easy to spot if there’s a line marking. (industrial
floor tape, painted or tape lines).

FLOOR MAKING GUIDELINES (MESSENGER/PRINT SCREEN)

TOOL FOAM – it can help protect your toolbox and tools from damage, and it prevents the tools
from going missing.

STEP 3 (seiso/cleanliness/shine) – Once the work space is organized, dirts can be removed. It
focuses on cleaning up the working area like mopping, sweeping, dusting and etc. It’s helpful
especially to employees because they will like coming to work in a clean environment and
keeping the equipment in their right place, you will have fewer injuries and fewer equipment
breakdowns. It also involves performing regular maintenance on equipment and machinery so
that it will last longer and can prevent equipment breakdowns,

STEP 4 (seiketsu/standardization/standardized) – These changes to workers’ job duties and

work environment should be reflected in updated procedures. It is the task and procedures to
ensure the principles of 5S are performed efficiently. It utilizes a set of schedules and checklist
that can be easily followed so each step of 5S is performed exactly the same way every day.

STEP 5 (shitsuke/discipline/sustain) – If there’s responsibility in a workplace and progress is

tracked, new procedures will sustain properly. It refers to the process of keeping 5S running
smoothly. To help sustain 5S practices, make sure all new employees must receive training
about their area’s 5S procedures.

6TH – SAFETY – It involves focusing on what can be done to minimize risks in work processes
by arranging things in certain ways for a safer environment.