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I take this opportunity. as I started my first job in PPC (Production Planning &Control) department of a big steel company a decades ago.. Know more now. where the companies normally need to make strategy for managing all the resource that go towards fulfilling the customer demand for the product and services that they offers. Plan: This is vital part of SCM philosophy. as this is one of my favorite topic. 4. Res. In Business word this art and science become functions that an organization undertake..oracleappshub. 5. 2. This model organized and focused on the five primary management 1. 4 of 13 22-02-2012 23:46 . http://www. In fact lot of people have requested some more information on SCM.KNOW WHAT IS SUPPLY CHAIN MANAGEMENT (SCM)? : An Ov. versus the ability to deliver goods at prices and delivery dates agreed with customers.com Process Manufacturing ERP Scalable & Flexible ERP solutions for your Businesses. OPM and other manufacturing area. cost effective and deliver high quality and value to the customer.Ramco. so I hope I will surly help in giving a clear picture of SCM. PLAN SOURCE MAKE DELIVER RETURN 1. both inwards logistics operations to acquire materials to make products and outwards logistics operations shipping finished goods to final customers are monitored. If you are IT guys you can understood SCM as: Systems that support manufacturing managers in making decisions that optimize the trade off between capital tied up in stocks and inventories. Let's start with basic and gradually will move into ERP arena: SCM is defined as combination of art and science that goes into improving the way your company find the raw components that needs to make a product or services and deliver it to customer. Fusion Application Security Blogroll David Haimes Floyd Teter Steven Chan Tim Dexter Trioragroup Blog Total Page View User Onlines 53 Users KNOW WHAT IS SUPPLY CHAIN MANAGEMENT (SCM)? : An Overview Posted on November 10th. 3.SAS.umd. try it today The Smith School MS Amplify Your Impact! Apply by 2/15 for the Fall Semester www. Free Info! www.rhsmith.edu/ms/ SAS Supply Chain Solution Get the most of your supply chain & expert advice. WHAT EXACTLY IS SUPPLY CHAIN MANAGEMENT OR WHAT IS BASIC COMPONENT OF SCM? As per Supply-Chain Operations Reference-model (SCORÃ‚Ã‚ÂÂ®) which has been developed by Supply-Chain Council.. A big piece of planning is developing a set of matrices to monitor the Supply chain so that it would be efficient.com/Process_Mfg This is one of the basic areas from management books. In principle and reality..com/ebs-suite/know-what-is-supply-chain-. therefore. 2007 by Sanjit Anand | Print This Post | Email This Post Have you tried OracleappsHub in ipad/iphone/smart Phone? Don't wait.
.KNOW WHAT IS SUPPLY CHAIN MANAGEMENT (SCM)? : An Ov. packaging and preparation for delivery. and services you receive from your suppliers. 5 of 13 22-02-2012 23:46 . and equipment maintenance. Schedule activity necessary for production.. Inventory This driver addressing these questions: What inventory should be stocked at each stage in a supply chain? How much inventory should be held as raw materials. typically including order management. including receiving shipping. This part of SCM consists of selecting right suppliers that will deliver the good and services that need to create your product. verifying them. Deliver: This is also called Logistic Process. Make: This is basically a step where your company starts fulfilling the request or BUILT for products into finished state to meet planned or actual demand. Also this will also take care of managing the inventory of goods.This is real pain of SCM model. 5. quality control. delivery and payment process with supplier is important. http://www. which defined as processes associated with returning or receiving returned products for any reason. 4. 2. Source: It means processes that procure goods and services to meet planned or actual demand. or finished goods? The primary purpose of inventory is to act as a buffer against uncertainty in the supply chain.com/ebs-suite/know-what-is-supply-chain-. workload balancing. Production This driver addressing these questions: what products does the market want? How much of which products should be produced and by when? This activity includes the creation of master production schedules that take into account plant capacities. 3. 2. Developing a set of pricing. testing. Return .. semi finished. and distribution management. This is the processes that provide finished goods and services to meet planned or actual demand.oracleappshub. transferring them into various facilities and authorizing supplier payment. Typical model can be best described as: WHO IS THE STAKEHOLDER OF SUPPLY CHAIN These are considered as stake holder of SCM: Customers Your Company Design Partners Material Suppliers Contract Manufacturers Logistic Providers WHAT ARE DRIVERS OF THE SUPPLY CHAIN? These are the main drivers : Production Inventory Location Transportation Information 1.. transportation management.
The master production schedule defines the anticipated build schedule for all products. Location This driver addressing these questions: Where should facilities for production and inventory storage be located? Where are the most cost efficient locations for production and for storage of inventory? Should existing facilities be used or new ones built? Once these decisions are made they determine the possible paths available for product to flow through for delivery to the final consumer. Information This driver addressing these questions: How much data should be collected and how much information should be shared? Timely and accurate information holds the promise of better coordination and better decision making.ASCP Constrained Based and optimized version of MRP Planned Order Automatically suggested action from planning engine Consumption The process of "relieving" the forecast to prevent double counting of demand Drop Ship Having an order ship directly from the vendor to the customer without physically being in your inventory. 4. Transportation This driver addressing these questions: How should inventory be moved from one supply chain location to another? Air freight and truck delivery are generally fast and reliable but they are expensive.oracleappshub. 5. Vendor Managed Inventory.VMI The process of giving the vendor the authority and visibility to determine what your inventory should be Customer Owned Inventory.com/ebs-suite/know-what-is-supply-chain-. http://www..KNOW WHAT IS SUPPLY CHAIN MANAGEMENT (SCM)? : An Ov. The master production schedule also provides the basis for order promising (ATP) function Material Requirements Plan-MRP The Material requirements planning (MRP) calculates net requirements from gross requirements by evaluating: The master schedule Bills of material Scheduled receipts On-hand inventory balances Lead times Order modifiers Advanced Supply Chain Plan. 3.. Shipping by sea or rail is much less expensive but usually involves longer transit times and more uncertainty..MDS The MDS is a consolidation of demand by product and time bucket Master Production Schedule. GET FAMILIAR WITH TOP 10 TERMS. people can make effective decisions about what to produce and how much.MPS The MPS is a statement of supply required to meet the demand for the items contained in the MDS.. DEFINITIONS AND TERMINOLOGY IN SCM Master Demand Schedule . With good information.COI Where you are managing the customers inventory on your premises and supply as required Work Order/Sales Order 6 of 13 22-02-2012 23:46 . about where to locate inventory and how best to transport it.
Forecast Planning Cycle This is the scenario where normally we are building to stock and satisfying sales order demand from stock. The materials would be received into inventory and the purchase order would be closed. The vendor would supply the materials. When released from MRP the planned orders for "buy" items become requisitions or purchase orders in the purchasing module and the "make" items become discrete jobs in the Work In Process Module. The planned order is released and becomes a requisition or purchase order in the purchasing module. forecast and other demand such internal orders into the master demand schedule (MDS).com/ebs-suite/know-what-is-supply-chain-.. Here you will see the difference as planned orders are released to become purchase requisitions for components and work orders for sub assemblies and finished goods. The request that you received from the customer for fulfilling there demand.. A purchase order is then created from the requisition and sent to the vendor. That demand statement would then be used as the schedule that drives the Master Production Schedule (MPS) .oracleappshub.Procurement Cycle In the Planning-Procurement cycle we normally start where the first part of the planning cycle is complete and we have a planned order for a buy item from MRP. The finished goods are then shipped to satisfy the sales orders.KNOW WHAT IS SUPPLY CHAIN MANAGEMENT (SCM)? : An Ov. Once the MPS is reviewed and updated is used as the schedule to drive the MRP process. The result of the MRP process is planned orders and exception messages. 7 of 13 22-02-2012 23:46 . Once the finished goods are received into inventory it is shipped to satisfy customer orders. Scenario II : Planning . SIMPLE PLANNING CYCLE WITHIN AN ORGANIZATION A typical planning cycle would start by loading the sales orders. Scenario I :Sales Order . Take a note in regular MRP implementations the MPS is used as the schedule for ATP.. http://www..
Scenario V : Planning . The requisition is imported to Purchasing and a purchase order is created. The job is completed from Work In Process to Inventory. The purchase order is sent to the vendor. quantity and required date information on purchase order matches that information on the sales order. The ship to address on the purchase order is the ship to address of the customer.Outside Processing Cycle With Outside Processing you could be buying a service. 8 of 13 22-02-2012 23:46 . Scenario III :Planning .WIP Cycle In the Work In Process cycle after the planning cycle is complete a planned order is released to create a discrete job.Drop Ship Cycle In the Drop Ship cycle the process is as follows: A sales order is received from the customer. assembly number and quantity is tied to the purchase order. Material/components is issued the job or back flushed from inventory. Once the Discrete job is moved to a outside processing operation.KNOW WHAT IS SUPPLY CHAIN MANAGEMENT (SCM)? : An Ov. The setup for each of these scenarios will be described in the training sessions to follow. however they all follow a similar process. Scenario IV :Planning .com/ebs-suite/know-what-is-supply-chain-. A routing with an outside processing operation is setup. After the planning cycle is complete a planned order is released to create a discrete job. Matching accounting transactions complete the process You can also see technical details for drop ship cycle in my earlier post. The vendor ships the product directly to your customer.. http://www... Once the vendor ships the product you receive" the purchase order and that creates the shipping transaction to satisfy the sales order.. an item or capacity from an outside vendor. After the sales order is entered a process is run that creates a purchase order that matches the sales orders The item. a purchase requisition is triggered.oracleappshub. When the purchase order is received its destination will be shop floor and the assembly will be returned to the next operation on the work order. The details of the discrete job such as job number.
Prativa Says: November 13th. Any comment is welcome Demand Sensing Technology Demand Sensing increases forecast accuracy by up to 50%... Functional.oracleappshub. www. Oracle Manufacturing | 27 Comments » Have you tried OracleappsHub in ipad/iphone/smart Phone? Don't wait. 3. In Next post we will see what are the different subsystem SCM will have and what are the modules which comes under SCM Implementation.TerraTechnology.com Related Posts 1.com/ebs-suite/know-what-is-supply-chain-. 4.to PO release Understand “Drop Shipment” in Order Management? Oracle Purchasing Product Overview Understanding data flow for “Internal Orders” Learn and implement – Purchase Orders in Oracle EBS Suite. Email This Post | Print This Post Posted in EBS Suite. Production requisitions ….KNOW WHAT IS SUPPLY CHAIN MANAGEMENT (SCM)? : An Ov. try it today 27 Responses 1. 2007 at 12:01 pm 9 of 13 22-02-2012 23:46 .. This make an end of this discussion. 5. http://www. 2...
Excellant work done and knowledge is epitomized & reduced to comprehensive yet concise matter.Quality. 2008 at 1:43 am 10 of 13 22-02-2012 23:46 . 2008 at 2:52 am Hi. http://www.MRP. Excellent work.Purchasing and OM with related to the discrete manufacturing. 3. Thank you so much for these nice articles.KNOW WHAT IS SUPPLY CHAIN MANAGEMENT (SCM)? : An Ov. 2008 at 3:07 am Thank you. Can you help me in this regard. can u send me the Total types of Cycles in SCM? If so iam very thankful to you. sandesh Says: March 27th. Thanks 5. Prativa. 9. Ajit Shirwalkar Says: August 2nd. 7.The article which can cover the maximum functinality to cover the all business processes and also give the navigation path in the sequence to complete the process in EBS. WIP and Cost Management? 8. Ajit 10. Regard. 2. I am looking at OSP in OPM – in r12. 2008 at 11:04 pm Veri nice to learn briefly about SCM 4..oracleappshub. 2008 at 4:08 am very Nice. 11. 2008 at 1:01 am Very simple and good narration of function. Please keep up the good work ! Any posts planned on Bill of Material. Sudhakar Jukanti Says: September 19th. 2008 at 4:17 am Hi Anand. Where will I get this information. Quazi Ahmad Faruque Says: February 25th. Keep going. specially the simple way of explanation makes it so easy to understand. Pankaj Singh Says: May 1st.WIP. Excellent work but can you provide any article on the functional mapping of inventory. 2008 at 4:22 pm nice presentation 6. 2008 at 3:37 am Excellent Blog.. chandru Says: March 12th.BOM..Thanks in advance & waiting for your response. sajeed Says: April 13th. Ak Says: February 20th.. 2008 at 2:48 am Hi Anand. Thambu Says: March 3rd.Costing. Hi Anand.com/ebs-suite/know-what-is-supply-chain-. Danish Says: October 15th.
thanks a lot for this. 2010 at 2:33 am Nice presentation. Lakshmi Ramesh Says: January 20th.. Ram Shankar Kushwaha Says: November 12th. Suyog Says: 11 of 13 22-02-2012 23:46 .com 14.oracleappshub. Nicely and well written article on SCM. Regard. Could you please help in this regard. 2009 at 4:04 am Thnaks. http://www. 20. alvin Says: August 6th. 2008 at 6:19 am Hi Sanjit. 2009 at 4:42 pm Hi. Hi.com Regards Srini 13. Please... 2009 at 4:46 am very informative. simple…. Manju mkuppam@gmail. I am looking for student guides for Manufacturing.ik@gmail..com/ebs-suite/know-what-is-supply-chain-. kartik Says: August 12th.Please keep up the good work. thank you !!! 15. good job 18. let me know your valuable suggesstion. excellent article with crisp and clear understanding. 2009 at 5:29 am Hi Anand. Regards. clear.. 2009 at 8:45 am awesome one …. 12. Abhi Says: August 25th.Easy to understand narration. I have gone through SCM process explanation it is Excellent work.. Neatly describe and very use full article. Srini Says: December 30th. I have query regarding Dropship Sales Order in case of forcast consumption. srini..KNOW WHAT IS SUPPLY CHAIN MANAGEMENT (SCM)? : An Ov. Renuka Says: October 9th. 2009 at 4:17 am Very good keep it up! RAM 19. 16. Thanks! 17. Manjunath Says: July 27th.. Appreciate your hardwork and sharing knowledge.
2010 at 11:47 am I was always confused about SCM. 23. 27. Sanjil Jain Says: August 4th. I want to switch to IT.. but first time somebody has made me understand SCM in 5 mins… YOU ARE GREAT! I really want to thank you!!!!! Leave a Comment Name Mail (will not be published) Website 12 of 13 22-02-2012 23:46 . 21. chs Says: November 23rd. How should you deal with this? Thank you 22. Sanjay Says: December 14th. 2010 at 1:33 am Good morning. 24. Biren Shah Says: October 21st.The system allows you to backout the receipt after it was billed and paid.KNOW WHAT IS SUPPLY CHAIN MANAGEMENT (SCM)? : An Ov. I am doing MBA in Operations and Supply chain management from one of the best schools in US. 2010 at 11:01 am Hi Anand… Your definitions and explanations are so simple. http://www. can u suggest me the areas I should concentrate on? any trainings and job opportunities? Ur help will be greatly appreciated. 2010 at 10:27 pm Please tell me about the tables of SCM as well. This is all what I have and will be learning for one more year. pakala ramu Says: September 14th. Gr8 job.. 2010 at 12:03 am hello Anand. 2010 at 7:40 am please advise the navigation of oracle supply chain management. Tell me about SCM responsibility to be added as I am from HRMS and need to learn SCM as well.com/ebs-suite/know-what-is-supply-chain-. Francois Says: July 22nd. Thank you very much for sharing your knowledge. 2010 at 4:22 am if u don t mind pl s give me a brief e with scm 25. nayudu Says: October 2nd.. 2010 at 3:20 am Very well eplained! 26...oracleappshub. I have a problem how to deal with a return to vendor after it was BILLED AND PAID. April 3rd. It will be nice if you could provide screen shots for SCM product.
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