Logistics Management
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LOGISTCS SYSTEM DESIGN
NINO REINER F. BADIOLA | PLM MAB-TEP SEC. 6
DR. MARIETTA V. GOMEZ | JULY 25, 2009
Planning and Design Techniques
LM
DISCUSSION: Planning and Design Techniques Planning Methodology
Phase I: Problem Definition and Planning
Phase II: Data Collection and Analysis
Phase III: Recommendations and Implementation
Supply Chain Analysis Methods and Techniques
Work Application: UNIONBANK – Cash Mobilization System
Something New! ORACLE
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PHASE IPHASE II PHASE III
RESEARCH PROCESS
PLANNING METHODOLOGY
Phase I: Problem Definition and Planning
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PHASE I
Feasibility Assessment Project Planning
Phase I: Problem Definition and Planning
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Phase I: Problem Definition and Planning
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FEASIBILITY ASSESSMENT
The objective is to understand the environment, process and performance characteristics of the current system and to determine what, if any, modifications appear worthy of evaluation.
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Situational AnalysisThe collection of performance measures, characteristics and information that describes the current logistics environment.1. Internal Operational Review2. Market Assessment3. Technology Assessment
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Supporting LogicThe development of a supporting logic to integrate the findings of the internal review, market assessment and technology study. This constitutes the most difficult part of the strategic planning process.
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Cost/Benefit EstimateEstimating potential benefits and risks associated with performing a logistics analysis and implementing the recommendation.
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Project PlanningAny effort to identify and evaluate strategic or tactical alternatives must be planned thoroughly to provide a sound basis for implementing change.
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Statement of ObjectiveDocuments the cost and service expectations for the logistics system revisions. It is essential that they be stated specifically and in terms of measurable factors. This also defines market segments, time frame and performance expectations.
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Statement of ConstraintsThe expected restrictions on the scope of permissible system modifications that top management places.
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Measurement of Standard and Assumptive Logic
Identifying cost assumptions and performance objectives essential to evaluate recommendations.
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Project Work PlanOn the basis of feasibility and defined objectives, constraints, standards and analysis techniques, a project work plan can be developed.
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Phase II: Data Collection and Analysis
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PHASE II
Assumptions and Data Collection
Analysis
Phase II: Data Collection and Analysis
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Assumptions and Data Collection
Once the feasibility assessment and project plan are completed, Phase II of a network design study focuses on the data collection and analysis. This phase requires assumption definition, data collection, and analysis of alternatives.N
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Defining Analysis Approaches and Techniques
Determination of the appropriate analysis technique for the planning situation under consideration. Options available are analytical, simulation and optimization.
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Defining and Reviewing Assumptions
Builds the situation analysis, project objectives, constraints. And measurement of standards. Assumptions fall on three classes;1. Business Assumptions2. Management Assumptions3. Analysis Assumptions
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Identifying Data Sources
Detailed data must be collected and organized to support the analysis. When unnecessary data is difficult to collect, sensitivity analysis should be used to the identify data impact.
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Data Collection
Assembly of collected data and conversion to appropriate formats for the analysis tool.
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Validation Data
Base case or validation data must also be collected to verify that the results accurately reflect reality. The objective is to increase the credibility with the management with the analysis process.
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Analysis
Analysis involves use of the technique and data to evaluate strategic and tactical logistics alternatives. Process includes:1. Analysis Questions2. Validating Baseline Analysis3. Analyses of Alternatives4. Sensitivity Analysis
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Analysis Questions
Defines specific analysis questions concerning alternatives and the ranged of acceptable uncertainty. The specific questions build on research objectives and constraints by identifying specific operating policies and procedures.
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Validating Baseline Analysis
It is the analysis of current business environment. Results should be compared with the validation data collected previously to determine the degree of fit between historical and analytical findings.
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Analyses of Alternatives
Completing an evaluation of design alternatives. The analysis should determine the relevant performance characteristics for each alternative design or strategy.
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Sensitivity Analysis
The best performing alternatives can be targeted for further sensitivity evaluation. Here, uncontrollable factors such as demand, factor costs and competitive actions can be varied to assess each alternative’s ability to operate under a variety of conditions.
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Phase III: Recommendations and Implementations
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PHASE III
Development and Recommendations
Implementation
Phase III: Recommendations and Implementations
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High level Implementation
Detailed Implementation
Recommendation
Alternatives and sensitivity analysis results are reviewed to finalize managerial recommendations. This review process includes four tasks;1. Identifying the best alternatives.2. Estimating costs and benefits.3. Developing a risk appraisal and,4. developing a presentationN
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Identifying Best Alternatives
Identifying the best options to be considered for implementation.
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Estimating Costs and Benefits
Service improvement, cost reduction and cost prevention.
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Evaluating Risk
Risk assessment considers the probability that the planning environment will match the assumptions.
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Presentation
Final presentation that identifies, quantifies and justifies suggested changes.
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Implementation
Actual plan or design implementation is the final process activity. An adequate implementation plan is critical since putting the plan or design into action is the only means to obtain a return on the planning process.
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Defining the Plan
Defines the implementation plan in terms of the individual events, their sequence and dependencies.
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Scheduling
Schedules the implementation and time-phases the assignments identified previously. The schedule must allow adequate time for acquiring facilities and equipment, negotiating agreements, developing procedures and training.
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Acceptance
Acceptance criteria should focus on the service improvements, cost reduction, improved asset utilization and enhanced quality.
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Plan Implementation
Implementation must include adequate controls to ensure that performance as scheduled and that acceptance criteria are carefully monitored.
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RESEARCH PROCESS MAP
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Phase I
Phase II
Phase III
FeasibilityAssessmen
t
ProjectPlanning
Assumptions and Data
Collection
Analysis
Development of
Recommendation
Implementation
SUPPLY CHAIN ANALYSIS METHODS AND TECHNIQUES
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Design Decisions
Design Logic
Inventory Decision
Transportation Decision
Freight Lane Analysis
Inventory Analysis
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Cash MobilizationSystem
RECEIVE CALLSFROM REQUESTINGCLIENTS
RECEIVE E-MAIL REQUESTSFROM BRANCHES
PREPARE CASH REQUEST
DISPATCH ROVING TELLERS
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WORK APPLICATION
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Cash MobilizationSystem
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Cash MobilizationSystem
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Cash MobilizationSystem
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Cash MobilizationSystem
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Cash MobilizationSystem
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Cash MobilizationSystem
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SOMETHING NEW
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Oracle Logistics
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Oracle Logistics
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Oracle Logistics
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Oracle Logistics
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Oracle Logistics
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THANK YOU!
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