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Ω
Lectures 1&2: Lectures 1&2: Introduction to Introduction to
Supply Chain ManagementSupply Chain Management
Quality Assurance in Supply Chain
Management (INSE 6300/4-UU)
Winter 2011
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Ω OverviewOverview
Course Outline
Preliminary Notions
Objective and Importance of Supply
Chain
Supply Chain Activity Levels
Process Views
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Software Systems Procurement
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Ω INSE 6300/4INSE 6300/4--UUUU
Quality Assurance in Supply Chain Management: Supply chain operations, activities, and processes Quality assurance in these processes Engineering vs. business perspective
Objectives: To discover and learn various concepts and
techniques related to supply chain and quality assurance
To learn to apply these techniques To develop critical thinking skills
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Supply chain management and quality assurance principals: supply chain performance, drivers, and metrics, supply chain network design, planning demand, managing inventories, managing uncertainty, and coordination
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Ω TextbooksTextbooks
2) Designing & Managing the Supply Chain: Concepts, Strategies, and Case Studies. 2006
Supply chain principals and challenging issues: inventory management, supply chain integration, Managing uncertainty, information technology and decision support systems for supply chain management
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Ω TextbooksTextbooks
3) Research Papers
Challenging and open problems
Verification and Validation
New developments within information technology:
Intelligent Agents
Simulations
Decision Support Systems
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Ω Requirements and Grading Requirements and Grading
One individual/group assignment 15%
One in-class mid-term exam (closed book) 25%
One in-class final exam (closed book) 35%
One team project (2~3 members, presentation + report) 25%
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Ω Important datesImportant dates
April 11, 2011Project report
April 04, 2011Final exam
March 28, 2011 Project presentation
February 14, 2011Mid-term
February 07, 2011Assignment
January 31, 2011Project proposal
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Ω ProjectProject
Project proposal
Deadline: January 31, 2011
Team members
Topic and title
Abstract
Main references
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Ω QuestionQuestion
Please describe briefly about yourself:
Academic background
Industry experience
Research domains you are interested in
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Ω OverviewOverview
Course Outline
Preliminary Notions
Objective and Importance of Supply
Chain
Supply Chain Activity Levels
Process Views
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Ω DefinitionsDefinitions
A supply chain consists of all partiesinvolved, directly or indirectly, in fulfilling a customer request
The supply chain includes all functionsinvolved in receiving and filling a customer request
(Supply Chain Management)
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Ω DefinitionsDefinitions
Supply Chain management is a set of approaches utilized to efficiently integratesuppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize “systemwide” costs while satisfying service level requirements
(Designing & Managing the Supply Chain)
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Ω DefinitionsDefinitions
Supply chain management deals with
the control of materials, information, and financial flows in a network consisting of
suppliers, manufacturers, distributors,
and customers
(Stanford Supply Chain Forum Website)
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Ω
The Supply Chain The Supply Chain
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ΩThe Supply Chain NetworkThe Supply Chain Network
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Ω Supply Chain Stages or PartsSupply Chain Stages or Parts
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Ω Key Quality IssuesKey Quality Issues
Supply Chain
Quality Issues
Network Planning
Inventory Control
Distribution Strategies
Product Design
Outsourcing Strategies
Integration & Partnering
Information Technology
Decision-
Support Sys.
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Ω Key Quality IssuesKey Quality Issues
Network Planning: optimization aspect
Inventory Control: minimizing inventory
ordering and holding cost
Distribution Strategies: relationships
between suppliers and manufacturers
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Ω Key Quality IssuesKey Quality Issues
Supply Chain Integration and Strategic Partnering: global optimization, information sharing and operational planning
Outsourcing and Procurement Strategies: what to make internally and what to buy from outside sources
Information Technology and Decision-Support Systems: data transfer and analysis, efficiency in supply chain management
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Ω OverviewOverview
Course Outline
Preliminary Notions
Objective and Importance of Supply
Chain
Supply Chain Activity Levels
Process Views
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Ω The Objective of a Supply ChainThe Objective of a Supply Chain
Maximize overall value created
Supply chain value: difference between what the final product is worth to the customer and the effort the supply chain expends in filling the customer’s request
Value is correlated to supply chain profitability (difference between revenue generated from the customer and the overall cost across the supply chain)
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Ω The Objective of a Supply ChainThe Objective of a Supply Chain
Example: Dell receives $2000 from a customer for a computer (revenue)
Ω Decision Phases of a Supply Decision Phases of a Supply
ChainChain
Supply chain strategy or design
Supply chain planning
Supply chain operation
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Ω Supply Chain Strategy or DesignSupply Chain Strategy or Design
Decisions about the structure of the supply chain and what processes each stage will perform
Strategic supply chain decisions Locations and capacities of facilities Products to be made or stored at various locations Modes of transportation Information systems
Supply chain design must support strategic objectives
Supply chain design decisions are long-term and expensive to reverse – must take into account market uncertainty
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Ω Supply Chain PlanningSupply Chain Planning
Definition of a set of policies that govern
short-term operations
Fixed by the supply configuration from
previous phase
Starts with a forecast of demand in the
coming year
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Ω Supply Chain PlanningSupply Chain Planning
Planning decisions: Which markets will be supplied from which
locations
Planned buildup of inventories
Subcontracting, backup locations
Inventory policies
Timing and size of market promotions
Must consider in planning decisions demand uncertainty, exchange rates, competition over the time horizon
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Ω Supply Chain OperationSupply Chain Operation
Time horizon is weekly or daily
Decisions regarding individual customer orders
Supply chain configuration is fixed and operating policies are determined
Goal is to implement the operating policies as effectively as possible
Allocate orders to inventory or production, set order due dates, generate pick lists at a warehouse, allocate an order to a particular shipment, set delivery schedules, place replenishment orders
Much less uncertainty (short time horizon)
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Ω OverviewOverview
Course Outline
Preliminary Notions
Objective and Importance of Supply
Chain
Supply Chain Activity Levels
Process Views
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Ω Process Views of a Supply ChainProcess Views of a Supply Chain
Cycle view: processes in a supply chain are divided into a series of cycles, each performed at the interfaces between two successive supply chain stages
Push/Pull (Speculate/React) view: processes in a supply chain are divided into two categories depending on whether they are executed in response to a customer order (pull) or in anticipation of a customer order (push)
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Process Views of a Supply Chain: Process Views of a Supply Chain:
Cycle ViewCycle View
Customer Order Cycle
Replenishment Cycle
Manufacturing Cycle
Procurement Cycle
Customer
Retailer
Distributor
Manufacturer
Supplier
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Ω Process Views of a Supply Chain: Process Views of a Supply Chain:
Cycle ViewCycle View
Each cycle occurs at the interface between two successive stages
Customer order cycle (customer-retailer)
Replenishment cycle (retailer-distributor)
Manufacturing cycle (distributor-manufacturer)
Procurement cycle (manufacturer-supplier)
Cycle view clearly defines processes involved and the owners of each process. Specifies the roles and responsibilities of each member and the desired outcome of each process
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Ω Push/Pull View of Supply ChainsPush/Pull View of Supply Chains
Procurement,Manufacturing andReplenishment cycles
Customer OrderCycle
CustomerOrder Arrives
PUSH PROCESSES PULL PROCESSES
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Ω Push/Pull View of Push/Pull View of
Supply Chain ProcessesSupply Chain Processes
Supply chain processes fall into one of two categories depending on the timing of their execution relative to customer demand
Pull: execution is initiated in response to a customer order (reactive)
Push: execution is initiated in anticipation of customer orders (speculative)
Push/pull boundary separates push processes from pull processes
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Ω Push/Pull View of Push/Pull View of
Supply Chain ProcessesSupply Chain Processes
Useful in considering strategic decisions relating to supply chain design – more global view of how supply chain processes relate to customer orders
Can combine the push/pull and cycle views Dell (build-to-order strategy)
The relative proportion of push and pull processes can have an impact on supply chain performance
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Ω Dell Supply ChainDell Supply Chain
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