Palestine Polytechnic University

College of Engineering
Mechanical Engineering Department

Management and economics engineering project

“Supply Chain Project Management”

Project Team

Bashar Ibrahim

Nasim kaki

Supervisor:
Prof. Nabil Joulani

Hebron - Palestine
 ABSTRACT

Supply chain management (SCM) adoption in a project-based environment brings substantial

benefits but requires careful planning and execution. The current research examines a number of
publications that are relevant to both SCM and project management in project management
journals. First, we identify the key antecedents of successful SCM implementation in a project-
based environment. Then we category these factors into four main areas, namely, IT integration,
organizational coordination, risk management, and supply chain resilience and complexity.
Third, we explore inter-relationships among these factors through a comprehensive literature
review. A broad and enhanced understanding of the conceptual integration of SCM with project
management is provided by exploring application areas outside the more common integration
domain of the construction industry. This research presents and interprets this integration using a
systemigram that visually illustrates a SCM strategy adoption pathway and depicts the complex
procedures in an understandable manner.

pg. 2
 ‫)‪- ABSTRACT(ARABIC‬ملخص‬

‫يجلب اعتماد إدارة سلسلة التوري‪1‬د (‪ )SCM‬في بيئ‪1‬ة قائم‪1‬ة على المش‪1‬اريع فوائ‪1‬د كب‪1‬يرة ولكن‪1‬ه يتطلب تخطيًط ا وتنفي‪ً1‬ذ ا دقيقين‪.‬‬
‫يفحص البحث الح‪11‬الي ع‪11‬دًدا من المنش‪11‬ورات ذات الص‪11‬لة بك‪11‬ل من ‪ SCM‬وإدارة المش‪11‬اريع في مجالت إدارة المش‪11‬اريع‪ .‬أوًال ‪،‬‬
‫نحدد السوابق الرئيسية لتطبيق ‪ SCM‬الناجح في بيئة قائمة على المشروع‪ .‬ثم نقوم بتصنيف ه‪11‬ذه العوام‪11‬ل إلى أربع‪11‬ة مج‪11‬االت‬
‫رئيسية ‪ ،‬وهي تكامل تكنولوجيا المعلومات ‪ ،‬والتنسيق التنظيمي ‪ ،‬وإدارة المخاطر ‪ ،‬ومرونة سلس‪11‬لة التوري‪11‬د وتعقي‪11‬دها‪ .‬ثالًث ا ‪،‬‬
‫نستكشف العالقات المتداخلة بين هذه العوامل من خالل مراجعة شاملة لألدبيات‪ .‬يتم توفير فهم واسع ومعزز للتكامل المف‪1‬اهيمي‬
‫لـ ‪ SCM‬مع إدارة المشروع من خالل استكشاف مجاالت التطبيق خارج مجال التكامل األكثر شيوًعا لصناعة البن‪11‬اء‪ .‬يق‪1‬دم ه‪11‬ذا‬
‫البحث ويفسر هذا التكامل باستخدام مخطط نظام يوضح بصرًيا مسار اعتم‪1‬اد اس‪1‬تراتيجية ‪ SCM‬ويص‪1‬ور اإلج‪1‬راءات المعق‪1‬دة‬
‫بطريقة مفهومة‪.‬‬

‫‪pg. 3‬‬
 DEDICATION

To those who have always believed in us …

To those who have been our source of inspiration …

To those who gave us strength …

To those who provide us their endless support and encouragement …

To our families …

pg. 4
 ACKNOWLEDGEMENT

It has been a great opportunity for us to gain a lot of knowledge through working on this project,

but the successful completion of any task would be incomplete without mention of the people

who made it possible.

For that we would like to thank everyone who helped, supported and encouraged us:

Palestine Polytechnic University, Engineering Collage, Mechanical Engineering

Department, including all members of the helpful and reverend staff.

Special thanks to our supervisor Prof. Nabil Joulani, who was the guiding light every step of

the way as we worked for this project.

Finally, our deep gratitude and sincere thanks to our parents, brothers and sisters for their

patience, for everyone who tried to help us during our work and gave us strength to complete

this task.

pg. 5
 INTRODUCTION

the management of multiple relationships across the supply chain is being referred to as supply
chain management (SCM). Strictly speaking, the supply chain is not a chain of businesses with
one-to-one, business-to-business relationships, but a network of multiple businesses and
relationships.

SCM opportunity to capture the synergy of intra- and intercompany integration and management
[and] deals with total business process excellence four main uses of the term 'supply chain
management': the internal supply chain that integrates business functions involved in the flow of
materials and information from inbound to outbound ends of the business; the management of
dyadic or two party relationships with immediate suppliers; the management of a chain of
business including a supplier, a supplier's suppliers, a customer and a customer's customers and
so on, and; the management of a network of interconnected businesses involved in the ultimate
provision of prod! Service packages required by end customers.

The current study investigates the inter-relationships among the critical antecedents of SCM
implementation to the project-based in-dustries and explores the high-level process of
initiation. Employing systemigram, which is discussed in the next section, enables us to
transform “rich text” from the comprehensive literature review into a structured diagram and
present findings in a narrative manner. This is the first attempt to visually show the role of SCM
related to project management. The contribution is tri-fold. First, in this research, the diagram
of the structural model shown in Fig. 1 is further extended by distilling lengthy documentation
down to “concentrated text” through the systemigram design to show how SCM is relevant to
many applica-tions in the project management. To make this case, the systemigram is defined,
and a literature review about the role of SCM to project man-agement is conducted. The
development of this research presents a novel method of how to design a systemigram for the
system of interest, make a complex system understandable, as well as retain the critical infor-
mation and key perspectives

Second, this is the first application of the systemigram to illustrate the integration of SCM with
project management. This theoretical integration was illustrated by creating a systematic view of
initiating the implementation of SCM in the project. The clarity gained from examining and
diagraming the integration resulted in knowledge codi-fication by highlighting the key
antecedents and the relationships be-tween each element. The value of such visualization is
significant because it emphasizes the importance of the knowledge that is com-plementary to the
existing project management body of knowledge (PMBOK) areas (Project Management
Institute, 2017). Third, from the explanation of each scene, the illustration of inter- relationship
between those steps, and the presentation of the holistic systemigram, project managers will
better understand the role of SCM and the initiating process of integrating SCM into projects. A
compre-hensive list of references supplied in this study provides a good resource for project
managers designing context-specific strategies. Detailed practical contributions are discussed
later in this research

pg. 6
 Chapter 1

"supply chain"

1.1-WHAT IS SUPPLY CHAIN?

In its simplest form a supply chain is the activities required by the organisation to deliver goods
or services to the consumer.

A supply chain is a focus on the core activities within our organisation required to convert raw
materials or component parts through to finished products or services. We look upstream to our
suppliers and their supply of raw materials or components into our own organisations supply
chain.

In a traditional manufacturing environment the activity of interfacing with suppliers is generally

supported by “Procurement”, the materials will then pass through goods in warehouses (if
products) through the manufacturing site and onto the finished goods warehouse, this activity is
the core activity of “Operations Management”, throughout the supply chain logistics will play an
integral role in the movement of inbound materials and outbound goods in order to ensure the
finished product flows downstream to our consumer.

Figure#1: supply chain

pg. 7
 1.2 WHAT ARE THE STAGES WITHIN A SUPPLY CHAIN?

In its simplest form the stages in a supply chain are as depicted within
the Porters Value Chain and this can be considered a good guide to a supply
chain structure

 Logistics
 Operations
 Marketing and Sales
 Services

1.3 WHAT IS SUPPLY CHAIN MANAGEMENT?

Supply chain management takes a broader view of influences that will impact our supply chain,
and when we discuss supply chain management we must start to understand the strategic
decisions that influence the supply chain activity.

There are many tools that can support the building of the supply chain strategy, value as
perceived by our consumer must have full consideration when building any strategy. Value is
usually delivered through differentiation of our product or service offering through innovation or
cost. Cost or differentation will form part of the main corporate strategic objective.

Once the strategy has been set for the organisation, any decisions then made within the supply
chain must ensure that they deliver against the corporate strategy, this is supply chain
management in operation.

Within supply chain management as a topic we will go further into strategy, identifying the
importance that organisational strategy plays on our operational supply chain activities, along
with the role that other functions within the organisations play in supporting the decisions made
within the supply chain to ensure alignment to the corporate and operational strategy.

How we remove waste activities in the supply chain in order to drive value will be influenced by
micro and macros factors, STEEPLED factors can influence our supply chain decisions.

pg. 8
1.4 WHAT IS THE MAIN GOAL OF SUPPLY CHAIN MANAGEMENT?

The goal of supply chain management is to look holistically at the entire supply chain

from supplier through to the consumer, and review three core areas of people, process

and systems in order to maximise value from all activities.

1.5 WHAT IS SUPPLY CHAIN MANAGEMENT AND WHY IS IT IMPORTANT?

A concern, at the most fundamental level, is that unless we can describe what we do
and demonstrate our success to our stakeholders we cannot win their recognition and
support.

By defining ‘Supply Chain’ as the functions and activities that go into producing goods
or services from supply of components/raw materials through to finished goods being
provided to the consumer, then this starts to build a picture.

pg. 9
 Chapter 2

" Project management"

2.1 WHAT IS PROJECT MANAGEMENT?

is the process of leading the work of a team to achieve all project goals within the given
constraints.[1] This information is usually described in project documentation, created at the
beginning of the development process. The primary constraints are scope, time, and budget.
[2]
The secondary challenge is to optimize the allocation of necessary inputs and apply them to
meet pre-defined objectives.
The objective of project management is to produce a complete project which complies with the
client's objectives. In many cases the objective of project management is also to shape or reform
the client's brief to feasibly address the client's objectives. Once the client's objectives are clearly
established they should influence all decisions made by other people involved in the project – for
example project managers, designers, contractors and sub-contractors. Ill-defined or too tightly
prescribed project management objectives are detrimental to decision making.
A project is a temporary endeavor designed to produce a unique product, service, or result with a
defined beginning and end (usually time-constrained, and often constrained by funding or
staffing) undertaken to meet unique goals and objectives, typically to bring about beneficial
change or added value.[3][4] The temporary nature of projects stands in contrast with business as
usual (or operations),[5] which are repetitive, permanent, or semi-permanent functional activities
to produce products or services. In practice, the management of such distinct production
approaches requires the development of distinct technical skills and management strategies

2.2 WHAT DIFFERENT PROJECT MANAGEMENT METHODOLOGIES?

Project management methodologies all ultimately accomplish the same thing — a completed
project — but with very different approaches and journeys there. While there are numerous
project management types, there are seven primary ones that get used the most often.

pg. 10
 Types Project Management

 Waterfall Project Management

 Agile Project Management
 Scrum Project Management
 Kanban Project Management
 Lean Project Management
 Six Sigma Project Management
 PRINCE2 Project Management

 Waterfall Project Management

Waterfall project management is easily one of the oldest methods, but still used by many
development teams. This style involves working in waves, with each step being heavily
dependent on the one before it.

While waterfall style is much slower than its counterparts, it can be useful for those looking to
have a lot of structure or predictability. Unfortunately, it can result in numerous hangups,
especially if bugs are detected during a later step in the process and previous steps must be
revisited.

 Agile Project Management

Agile is a faster and more versatile solution to the dated waterfall model. Agile isn't a precise
project management methodology, but a mindset or ethos that is applied to other versions of
project management. It involves working in smaller chunks, or sprints, that allow projects to
pivot when needed.

 Scrum Project Management

Scrum is the epitome of agile. It's fast, very small in scope, and able to turn on a dime. Scrum is
all about using sprints to accomplish projects in small pieces, often based on a one-month
timetable. Scrum is great for smaller teams that are looking to iterate quickly.

 Kanban Project Management

Kanban is another variant of agile project management. Unlike Scrum, which is focused on time-
based pieces, Kanban is all about organisation. To accomplish this, Kanban looks primarily at

pg. 11
the number of tasks that go into any process and how they can be streamlined, reduced, and so
on. This is an especially great model for those with a factory-like output that doesn't vary .

 Lean Project Management

Lean management is similar to Kanban in that it's all about process, but it has an even higher
emphasis on trimming the fat. Lean is all about focusing on a customer-first mindset and how
processes can be stripped away to deliver the best, most affordable, timely experience for
customers.

 Six Sigma Project Management

The Six Sigma method focuses on improving the quality of a project's output. This is especially
helpful if you've undergone a lean management style and found the end result less than
satisfactory, as Six Sigma emphasises creating a better end result for the customer. This method
can be tacked onto other management styles, and is a great way to refine.

 PRINCE2 Project Management

The PRINCE2 method is often used by private sectors in the government, and is focused on
efficiency and minimising risks and errors. This detail-focused method is all about chunking
projects up into product-based steps that can be tackled one at a time, ensuring no stone is
unturned anywhere in the process.

pg. 12
 Figure#3: Waterfall Project Management

Figure#4: Agile Project Management

 Figure#4: Scrum Project Management

pg. 13
  Figure#5: Lean Project Management Figure#6: Six Sigma Project
Management

Figure#5: PRINCE2 Project Management

pg. 14
 Chapter 3

"improve the supply chain"

3.1 HOW COULD PROJECT MANAGEMENT FUNCTIONS IMPROVE

THE SUPPLY CHAIN?

To bring about improvement to the supply chain, project managers can apply the following
functions:

1. Project integration management

A strategy that factors in other existing projects and initiatives. It looks at the tasks, tools,
methods, expenses, staffing needs, process tracking, communication between
stakeholders, risks, constraints, challenges, and contingencies, in order to deliver the
project on time and within budget.

2. Project scope management

In this role, the project manager takes care of all the legal requirements, civil
infrastructure or project fundraising required for the project to effectively increase the
business profits and productivity. This includes looking into the latest available
technology, current market demand, environmental restrictions, or social needs.

3. Agile scheduling and planning

An important aspect of project management in the supply chain is to develop and

maintain accurate delivery schedules that are relevant to project dependencies and
resources. Following an Agile approach, allow requirements to be delivered iteratively
and in smaller increments throughout the life cycle by scheduling, planning, and
collaborating throughout the project.

4. Risk management

The process of identifying, analysing and responding to risks that arise and threaten to
derail or delay a project. Risk management should be included in the planning process, so
that potential risks can be identified, made provision for, and consequences preempted,
thereby eliminating a ‘reactive’ risk-management approach.

5. Business case and financial awareness

pg. 15
 For a project to be successfully executed, personal assumptions about business initiatives
need to be put aside in favour of a well-developed business case. This will provide the
action needed to make the supply chain processes more efficient, and will ensure the
costs for executing it are planned for, and covered in the budget. It will also ensure key
players understand the business benefits of carrying out the project.

6. Resource management

Resources include people, materials, equipment, knowledge and time, of which most
businesses have a limited supply. Make provision for challenges in execution with
regards to limited resources, such as training, skills, equipment and processes that support
project execution. Counteraction of these challenges will ensure the execution phase of
supply chain project management is a success.

7. Quality systems

Strategically gaining goods with low costs are of little use to the business if they are not
fit for purpose or do not meet the quality standards of the business.

8. Document roles and responsibilities

A key part of project management is the documentation of tasks, priorities, and

responsibilities, with delivery dates. Meeting with project stakeholders regularly will
ensure that tasks have been prioritised accurately, and that the team and other individuals
involved understand their roles and responsibilities. Likewise, if external teams are
included in the project, the documentation should include their tasks and categorise any
dependencies. The documentation will help all involved understand the progress of the
project through the life cycle.

9. Communication

Even with the improvement of project software tools and applications, nothing can
replace communication and soft skills. Just as a supply chains incorporate technology to
analyse and track the movement of data, products, and finances through the supply chain,
so too human relationships and interactions remain the critical link to building trust,
setting expectations and conveying confidence.

-3.2 KEYS TO SUCCESSFUL SUPPLY CHAIN MANAGEMEN

Complex global supply chains, increasingly demanding clients and the strong trend toward more
customized products are putting more demands on supply chains.

pg. 16
In response, supply chain management—the design, control and monitoring of your supply chain
—has come to play an increasingly important role for businesses. And while information
technology is providing some solution to these problems, there are also more basic practices and
concepts that remain useful in a complex, fast-changing world.

Whether you are just beginning to establish your supply chain or are looking to improve what
you already have, here are 6 tips to improve supply chain management in your business

 Find the right people

The best supply chain professionals have strong communication and relationship management
skills to deal with both internal and external stakeholders. They also have the ability to think
strategically and create value.

Once you’ve found the right people, you’ll want to organize your supply chain to maximize their
effectiveness.

Some companies place supply chain professionals in various business units, while others
centralize their operations in a single department. You may also want to consider a hybrid
approach that combines centralized planning with decentralized execution to provide better
services.

 Establish alliances with key suppliers

You shouldn’t simply be telling your supplier what to do. You should listen to your suppliers and
create a partnership to achieve common goals. You’ll want to:

 Create a mechanism to ensure the continuity of the relationship;

 find methods to resolve problems;
 jointly pursue continuous improvement goals; and
 ensure that performance targets are being met
Such an approach will ensure that you use the talents of your supplier base and pursue
continuous improvements.

 Match supply chain and business line

Many businesses want their supply chain to simultaneously be efficient, fast, agile, customizable,
and flexible. Yet these capabilities are often mutually exclusive and tend to require different
skills.

pg. 17
One solution is to develop multiple supply chains within your business to respond to different
supply requirements and cost demands depending on the business line it serves.

By correctly identifying the priorities of your business strategy, you will be able to organize your
supply chain in a way that fits your business model.

 . Improve the flow of information

Getting the right product at the right place as fast as possible is one of the primary goals of
supply chain management. To achieve this goal, many supply chains will tend to carry too many
products at a time, leading to increased costs and inefficiencies.

To limit your inventory levels, focus on transferring information to your suppliers as quickly as
possible. They will then be able to increase or decrease supply in accordance.

Just like inventory should always be moving, delays in information transfer should also be
tackled as soon as they appear.

 Make technology work for you

Before selecting what technology solution you purchase, review what part of your process you
want to improve and select technology that best satisfies your need.
Many individual software solutions manage parts of the process, but there are very few overall
solutions. Also, many individual software solutions do not integrate well with other software,
which means that information flow is severely hampered.

Generally, the size of the software solution you require depends on the nature and complexity of
your business.

 Get outside help

An outside perspective can help you evaluate your business processes and eliminate waste.

Whether you are trying to implement a just-in-time inventory management system or simply
trying to increase your company’s operational efficiency, hiring an expert to look at your overall
supply chain management and production process is probably a good idea.

pg. 18
 Chapter 4

"Project management deals with the complexity of the supply chain"

4.1-SUPPLY CHAINS CONTINUE TO INCREASE IN COMPLEXITY

For starters, you want to identify the factors that contribute to these complexities:
the geographical spread of customers and suppliers; risk and security
considerations; regulatory and compliance hurdles; increased customer
expectations for shortened lead times, and an increase in the number of players
involved are all factors that are increasing supply chain complexity. After all, we
live in a global world!

pg. 19
4.2- CONNECTION POINTS DRIVE COMPLEXITY

Connection points: are those points that link two or more unique people, processes,
systems, functions or supply chain partners.

For example, when two functional departments work together to introduce a new
product, there will undoubtedly be several points of intersection. These points are
typically more complex to manage and create a higher degree of delays and issues
than other points in the new product development process.

-4.3 THE WAYS PROJECT MANAGEMENT HELPS TEAMS MANAGE

THE CONNECTION POINTS OF SUPPLY CHAIN COMPLEXITY

1. Use the Critical Path Method

Project management software lets you visualize this critical path—a path that includes tasks with
dependencies, arranged in a particular order that’s required to complete the project on the
shortest path to success.
Once you know the tasks specific to the critical path, the secret to success is to focus 80
percent of your attention on these particular tasks. This way you simplify your approach but
have the largest impact.

2. Communicate and Collaborate

There is a way to bridge any communication gaps is to use collaborative project management

software. It provides a single source of truth for project and team activity and schedule updates,

especially when connection points include global teams working in different time zones

Here’s another simple way to approach communication to streamline supply chain complexities:

Pick up the phone. If the operations plan or project management platform reveals incoming

pg. 20
issues, talk to those task owners who are dependent on you, as well as the people you’re

dependent upon.

3. Use Agile Processes

Last but definitely not least, consider following an agile approach to managing supply chain
complexity. Agile, a set of fast and flexible processes that accounts for change, helps teams
adapt to marketplace opportunities, and improves business performance, lets you break down
complexity into reasonable chunks. Once you try a simple set of circumstances, you add layers
of complexity and test again. Thus, it becomes easier to identify issues and manage complexity
because you understand what each layer of complexity affects.

The more you learn how to successfully manage complexity, the more you’ll thrive. And
simplifying complexity is a starting point that will pay big dividends. Also, in today’s Internet-
purchasing world, speed is a cornerstone. Since managing complexity improves speed and
effectiveness, companies that can manage complexity often leapfrog their competition.
.

Chapter 5

" Conclusion And Feed Back And References "

5.1 CONCLUSION

The current study contributes to the management of projects that involve supply chain
participants in several ways. First, this research identified and categorized the key antecedents of

pg. 21
successfully initiating SCM implementation in projects into IT integration, organizational co-
ordination, risk management, and supply chain resilience and complexity in project
management. Second, the inter-relationships be-tween these antecedents were explored. Third,
this research used a systemigram to present visually the conceptual integration of SCM and
project management derived from a systematic literature review in the business discipline. In the
process of developing such systemigram, this research explicitly introduced the rules of
designing a systemigram and illustrated how value is gained using it. Utilizing systemigram
over-comes the limitation of the linear text reading and helps one to under-stand a complex
system.

5.2FEED BACK

5.3 REFERENCES

https://www.cips.org/knowledge/procurement-topics-and-skills/supply-chain-
management/what-is-a-supply-chain/

https://en.wikipedia.org/wiki/Project_management

pg. 22
https://www.projectsmart.co.uk/lifecycle-and-methodology/7-project-management-types-
and-when-to-use-them.php

https://www.getsmarter.com/blog/career-advice/supply-chain-and-the-role-of-the-project-
manager/

https://www.liquidplanner.com/blog/manage-supply-chain-complexity-using-project-
management/

https://www.sciencedirect.com/science/article/pii/S2666721521000077

pg. 23