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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 L M
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Logistics Management

Nov 16, 2014

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Logistics Design and Operational Planning
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Page 1: Logistics Management

LOGISTCS SYSTEM DESIGN

NINO REINER F. BADIOLA | PLM MAB-TEP SEC. 6

DR. MARIETTA V. GOMEZ | JULY 25, 2009

Planning and Design Techniques

LM

Page 2: Logistics Management

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

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Phase I: Problem Definition and Planning

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PHASE I

Feasibility Assessment Project Planning

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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

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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

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Phase III: Recommendations and Implementations

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High level Implementation

Detailed Implementation

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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

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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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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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LY 2

5,

20

09

THANK YOU!