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    Serina Tseng
    This document provides an outline for a course on supply chain management. The course aims to provide knowledge of materials management fundamentals and a basis for APICS certification. It covers 10 sessions on topics like forecasting, inventory management, and quality. The course also addresses traditional silo organizations, manufacturing strategies, and integrated planning approaches like MRP and ERP.

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    Serina Tseng
    338 views34 pages
    This document provides an outline for a course on supply chain management. The course aims to provide knowledge of materials management fundamentals and a basis for APICS certification. It covers 10 sessions on topics like forecasting, inventory management, and quality. The course also addresses traditional silo organizations, manufacturing strategies, and integrated planning approaches like MRP and ERP.

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    This document provides an outline for a course on supply chain management. The course aims to provide knowledge of materials management fundamentals and a basis for APICS certification. It covers 10 sessions on topics like forecasting, inventory management, and quality. The course also addresses traditional silo organizations, manufacturing strategies, and integrated planning approaches like MRP and ERP.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    338 views34 pages

    BSCM01

    Uploaded by

    Serina Tseng
    This document provides an outline for a course on supply chain management. The course aims to provide knowledge of materials management fundamentals and a basis for APICS certification. It covers 10 sessions on topics like forecasting, inventory management, and quality. The course also addresses traditional silo organizations, manufacturing strategies, and integrated planning approaches like MRP and ERP.

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    Attribution Non-Commercial (BY-NC)
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    You are on page 1of 34

    Course Objectives

    Provide a knowledge of the fundamentals of materials management Provide a basis for further study leading to APICS certification

    Visual 1-1

    Basics of Supply Chain Management

    Course Outline
    Session 1: Session 2: Session 3: Session 4: Session 5: Session 6: Session 7: Session 8: Session 9: Session 10: Introduction to Materials Management Forecasting Master Planning Material Requirements Planning Capacity Management and Production Activity Control Inventory Fundamentals Inventory Management Physical Distribution Quality Management and Purchasing Just-in-Time Manufacturing

    Visual 1-2

    Basics of Supply Chain Management

    Session 1
    Role and importance of manufacturing Conflicts in traditional systems Role, objectives, and responsibilities of materials management Differences among manufacturing processes

    Visual 1-3

    Basics of Supply Chain Management

    Session 1Continued
    Importance of planning Planning and control system Planning hierarchy Manufacturing resource planning (MRP II) Material requirements planning (MRP) Enterprise resource planning (ERP)

    Visual 1-4

    Basics of Supply Chain Management

    Wealth Creation
    What is wealth? Where does wealth come from? How can we increase our wealth? How can we add value?

    Visual 1-5

    Basics of Supply Chain Management

    External Environment
    World competition Quality Customer expectations

    Visual 1-6

    Basics of Supply Chain Management

    Customer Expectations
    Characteristics that provide value to the customer Price Quality Delivery Pre- and post-sale service Flexibility (product and volume) Other ________________________

    Visual 1-7

    Basics of Supply Chain Management

    Customer Expectations
    Order qualifiers Competitive characteristics needed to be a viable competitor

    Order winners

    Competitive characteristics that cause customers to choose that firms products and services

    Visual 1-8

    Basics of Supply Chain Management

    Customer Expectations
    Meeting customer expectations requires good communications
    Understanding customer needs Two-way communication Working with customers to solve design and production problems Freeness and openness

    Visual 1-9

    Basics of Supply Chain Management

    Business Strategy
    To meet customer expectations, a company must be market-oriented All functions in a business must support this concept Operations must be tuned to meet the needs of the marketplace

    Visual 1-10

    Basics of Supply Chain Management

    Lead Time
    A span of time required to perform a process
    APICS Dictionary

    Delivery lead time The time from the receipt of a customer order to the delivery of the product
    APICS Dictionary

    Cumulative lead time The longest planned length of time to accomplish the activity in question
    APICS Dictionary
    Visual 1-11 Basics of Supply Chain Management

    Manufacturing Strategies
    Delivery Lead Time Cumulative Lead Time Purchase Manufacture Delivery Lead Time Manufacture Assemble Inventory Delivery Lead Time Inventory Manufacture Assemble Ship
    Make-toOrder

    Assemble

    Ship

    Ship

    Make-toStock

    Delivery Lead Time Manufacture Inventory Assemble Ship


    Assembleto-Order

    Visual 1-12

    Basics of Supply Chain Management

    A Typical Manufacturing Organization

    Visual 1-13

    Basics of Supply Chain Management

    Traditional Silo Organizations

    E N G I N E E R I N G

    M A R K E T I N G

    S A L E S

    P R O D U C T I O N

    F I N A N C E

    Q U A L I T Y

    Visual 1-14

    Basics of Supply Chain Management

    Basic Supply Chain

    Dominant flow of products and services Dominant flow of demand and design information

    Visual 1-15

    Basics of Supply Chain Management

    Physical Supply/Distribution
    Movement of goods from suppliers to the beginning of the production process and from the end of the production process to consumers Activities: Transportation Distribution inventory Warehousing Packaging Materials handling Order entry

    Visual 1-16

    Basics of Supply Chain Management

    Company Objectives
    Profit = Revenue Expense
    Best customer service Lowest production costs Lowest inventory investment Lowest distribution costs

    Visual 1-17

    Basics of Supply Chain Management

    Conflicts in Traditional Systems


    Marketing Objective Implications Customer service Production efficiency Inventories (investment) Production Finance

    Visual 1-18

    Basics of Supply Chain Management

    Role of Materials Management


    Demand Resources

    Visual 1-19

    Basics of Supply Chain Management

    Manufacturing Planning and Control


    Involves Production planning Implementation and control Inventory management

    Visual 1-20

    Basics of Supply Chain Management

    Manufacturing Processes

    M an ufac turing P ro ce s se s P rod uc t L ay ou t C on tin uo us P rod uc tio n R e pe titive P rod uc tio n P ro ce ss L ay o ut Interm itten t P ro du ction (Jo b S h op ) P ro je c t L ay ou t

    Visual 1-21

    Basics of Supply Chain Management

    Product Layout

    Workstations in sequence needed to make product Work flows at a nearly constant rate Little work-in-process inventory

    Visual 1-22

    Basics of Supply Chain Management

    Characteristics of Product Layout


    Limited range of similar products Dedicated workstations Sufficient demand Capital-intensive

    Visual 1-23

    Basics of Supply Chain Management

    Advantages of Product Layout


    Little work-in-process inventory Short throughput and manufacturing lead times Lower unit cost

    Visual 1-24

    Basics of Supply Chain Management

    Process Layout

    Reprinted with permission, J.R. Tony Arnold, Introduction to Materials Management, second edition, Prentice-Hall, 1996

    Visual 1-25

    Basics of Supply Chain Management

    Characteristics of Process Layout


    Intermittent lot production Many different parts processed at workstations General-purpose machinery Similar types of skills and equipment in each department Work moves only to required stations

    Visual 1-26

    Basics of Supply Chain Management

    Characteristics of Process Layout


    Relatively easy to change product or volume Complex and expensive production and inventory control High work-in-process inventory levels Longer lead times

    Visual 1-27

    Basics of Supply Chain Management

    Product Layout vs. Process Layout


    Product Process

    Capital cost Flexibility Annual setup cost Run cost Work-in-process inventory Production and inventory control costs Lead time
    Visual 1-28 Basics of Supply Chain Management

    Characteristics of Project Layout


    Used for large, complex projects Project remains in one location for assembly Avoids cost of moving the product

    Visual 1-29

    Basics of Supply Chain Management

    Why Plan?
    To satisfy customer demand, ensure the availability of resources Material Capacity
    Demand Resources

    Visual 1-30

    Basics of Supply Chain Management

    A Good Planning and Control System

    These are questions of priority and capacity.


    Visual 1-31 Basics of Supply Chain Management

    Planning and Control Hierarchy


    At each level, there are three questions:
    What are the priorities? What capacity is available? How can differences be resolved?

    Figure adapted from CPIM Exam Content Manual, APICS, 1997

    Visual 1-32

    Basics of Supply Chain Management

    Manufacturing Resource Planning


    A method for the effective planning of all resources of a manufacturing company. APICS Dictionary

    Objective: To integrate the resources of an organization

    Visual 1-33

    Basics of Supply Chain Management

    Session 1: Objectives
    Describe the role and importance of manufacturing in our economy Understand the conflicts in traditional systems Understand the role, objectives, and responsibilities of materials management Understand the differences among the various manufacturing processes Recognize the importance of planning Describe a planning and control system Understand the planning hierarchy Define manufacturing resource planning (MRP II)

    Visual 1-34

    Basics of Supply Chain Management

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