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1 1 © 2009 APICS CONFIDENTIAL AND PROPRIETARY Introduction to Supply Chain Management Basics of Supply Chain Management APICS Certified in Production and Inventory Management (CPIM) Session 1
Transcript of 01_BSCM_PPT_v3.0_VC (1)
1 1 © 2009 APICS CONFIDENTIAL AND PROPRIETARY
Introduction to Supply Chain Management
Basics of Supply Chain Management
APICS Certified in Production and Inventory Management (CPIM)
Session 1
© 2009 APICS CONFIDENTIAL AND PROPRIETARY© 2009 APICS CONFIDENTIAL AND PROPRIETARY1 2
Course Objectives
Provide a review of supply chain management from a manufacturing, planning and control perspective 看法，远景Provide a basis for further study leading to APICS CPIM certification
APICS The Association for Operations Management, is a not-for-profit international education organization, offering certification programs, training tools and networking opportunities to increase workplace performance. It was founded in 1957 as the American Production and Inventory Control Society, and currently has more than 43,000 individual and corporate members in more than 10,000 companies worldwide. In April 2008, the organization relocated to Chicago.
© 2009 APICS CONFIDENTIAL AND PROPRIETARY
Building the CPIM Program
Basics ofSupply ChainManagement
DetailedScheduling
And Planning
MasterPlanning ofResources
Execution andControl ofOperations
See Course Overview at the beginning of Session 1 in your participant guide
© 2009 APICS CONFIDENTIAL AND PROPRIETARY© 2009 APICS CONFIDENTIAL AND PROPRIETARY1 3
Basics of Supply Chain Management
Introduction to Supply
Chain Management
Aggregate Inventory
Management
Demand Management
Item Inventory Management
Capacity Management
and Production Activity Control
Theory of Constraints and Review
Activity
Material Requirements
Planning
Lean/JIT and
Quality Systems
Master Planning
Purchasing and Physical Distribution
1. 2. 3. 4. 5.
6. 7. 8. 9. 10.
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Introduction to Manufacturing
Introduction to Supply Chain Management
Session 1
© 2009 APICS CONFIDENTIAL AND PROPRIETARY© 2009 APICS CONFIDENTIAL AND PROPRIETARY1 9
Customers and Products
Types of customers• Industrial• Consumer• Institutional• Government
Market segmentationSales channelsMarket share/profitability
Product Definition Customer Definition
Choice of production environment(ETO, MTO, ATO, MTS)
Choice of manufacturing process(Project, intermittent, repetitive flow, continuous flow)
Product Design
PositioningBreadth of product linePriceQualityBrand name or genericPackagingReturns policyDesign
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Customer Expectations
Characteristics that provide value to the customer
A fair Price
Higher Quality
Delivery lead time
Better Pre- and post-sale service
Cost effective Flexibility (product and volume)
成本效率
1 16 © 2009 APICS CONFIDENTIAL AND PROPRIETARY
Production Environments and Process Choices
Introduction to Supply Chain Management
Session 1
© 2009 APICS CONFIDENTIAL AND PROPRIETARY© 2009 APICS CONFIDENTIAL AND PROPRIETARY1 17
Production Environments
Engineer-to-order
Make-to-order
Assemble-to-order
Make-to-stock
Mass customization
© 2009 APICS CONFIDENTIAL AND PROPRIETARY© 2009 APICS CONFIDENTIAL AND PROPRIETARY1 19
Lead Time and Production Environments
Engineer-to-Order
Make-to-Order
Make-to-Stock
Source: Arnold et al., Introduction to Materials Management, 6th ed.Reprinted by Permission of Pearson Education
Assemble-to-Order
Inventory
Manufacture Assemble
Inventory
Manufacture Assemble Ship
Design Purchase
Manufacture
Ship
Assemble Ship
InventoryManufacture Assemble Ship
ETO Delivery Lead Time
MTO Delivery Lead Time
ATO Delivery Lead Time
MTS DeliveryLead Time
© 2009 APICS CONFIDENTIAL AND PROPRIETARY© 2009 APICS CONFIDENTIAL AND PROPRIETARY1 22
Product Life Cycle and Production Environments
ETO
MTO
ATO
MTS
MC
Introduction Growth Maturity Decline Phase-out
Unitssold Time
© 2009 APICS CONFIDENTIAL AND PROPRIETARY© 2009 APICS CONFIDENTIAL AND PROPRIETARY1 24
Intermittent Manufacturing Process
Source: Arnold et al., Introduction to Materials Management, 6th ed.Reprinted by Permission of Pearson Education
Product A
Product B
Product C
Workstations
7Grinding
8Mixing
9Trying
4Grinding
5Mixing
6Trying
1Grinding
2Mixing
3Trying
© 2009 APICS CONFIDENTIAL AND PROPRIETARY© 2009 APICS CONFIDENTIAL AND PROPRIETARY1 25
Intermittent Process Characteristics
Intermittent lot / batch production
Work moves only to required stations
Many different parts processed at workstations
General-purpose machinery
Relatively easy to change product or volume
Complex and expensive production and inventory control
High WIP inventory levels; long lead time
© 2009 APICS CONFIDENTIAL AND PROPRIETARY© 2009 APICS CONFIDENTIAL AND PROPRIETARY1 26
Intermittent Manufacturing Layout
Intermittent manufacturing layout is called process layout
Also called functional or job shop layout
Equipment and operations grouped together by functional specialty
Similar types of skills and equipment in each department
Volume not high enough to justify assembly line
© 2009 APICS CONFIDENTIAL AND PROPRIETARY© 2009 APICS CONFIDENTIAL AND PROPRIETARY1 27
Flow Manufacturing Process
Workstations are in the sequence needed to make the product
Work flows at a nearly constant rate
Little work-in-process inventory
WorkstationsOutputInput
1Grinding
2Mixing
3Drying
4Filling
© 2009 APICS CONFIDENTIAL AND PROPRIETARY© 2009 APICS CONFIDENTIAL AND PROPRIETARY1 28
Flow Process Characteristics
Layout is called product layout
Fixed routings and dedicated machinery
Capital intensive
Two types of flow: repetitive/line and continuous
Repetitive = discrete units (Automoblie)
Continuous = not discrete (Steel/ Mixing, heating, cooling, ..)
Limited range of similar products
High product volumes
© 2009 APICS CONFIDENTIAL AND PROPRIETARY© 2009 APICS CONFIDENTIAL AND PROPRIETARY1 29
Advantages of Product Layout (Flow Mfg)
Little work-in-process inventory
Short throughput and manufacturing lead times
Lower unit cost
© 2009 APICS CONFIDENTIAL AND PROPRIETARY© 2009 APICS CONFIDENTIAL AND PROPRIETARY1 30
Project Manufacturing
Used for large, complex projects
Project remains in one location for assembly
Site layout
Avoids cost of moving the product
© 2009 APICS CONFIDENTIAL AND PROPRIETARY© 2009 APICS CONFIDENTIAL AND PROPRIETARY1 31
Problem 1.1
Product Layout vs. Process LayoutProduct Process
Capital cost
Flexibility
Annual setup cost
Run cost
Work-in-process inventory
Production and inventory control costs
Lead time
Solution WorkstationsOutputInput
1Grinding
2Mixing
3Drying
4Filling
1 33 © 2009 APICS CONFIDENTIAL AND PROPRIETARY
The Manufacturing Supply Chain
Introduction to Supply Chain Management
Session 1
© 2009 APICS CONFIDENTIAL AND PROPRIETARY© 2009 APICS CONFIDENTIAL AND PROPRIETARY1 34
Supply Chain Management Definitions
Supply chain: The global network used to deliver products and services from raw materials to end customers through an engineered flow of information, physical distribution, and cash.
Supply chain management: The design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging world-wide logistics, synchronizing supply with demand, and measuring performance globally.
─APICS Dictionary
© 2009 APICS CONFIDENTIAL AND PROPRIETARY© 2009 APICS CONFIDENTIAL AND PROPRIETARY1 35
Basic Supply Chain: External
ManufacturerSuppliers Distributors Retailers
Consumers
Dominant flow of goods and services
Dominant flow of demand and design information
Dominant flow of cash
External supply chain from a manufacturer’s perspective
Returns and reverse logistics
© 2009 APICS CONFIDENTIAL AND PROPRIETARY© 2009 APICS CONFIDENTIAL AND PROPRIETARY1 36
Traditional Supply Chain View
Raw Materials
CustomersPurchasing Production Distribution
Lowest purchase price
Inventory buffers
High utilization %
Long runs – minimize changeovers
Low unit costs
Safety stocks
Full truckload quantities
Best shipping rate
Safety stocks
© 2009 APICS CONFIDENTIAL AND PROPRIETARY© 2009 APICS CONFIDENTIAL AND PROPRIETARY1 38
Conflicts in Traditional Supply Systems
FinanceMarketing OperationsTraditionalObjective
Increase profit and cash flow, reduce
investment
Increase revenue/ satisfy customers
Reduce manufacturing cost
Inventory investment
Customer service
Production efficiency
82 5
93 6
71 4
© 2009 APICS CONFIDENTIAL AND PROPRIETARY© 2009 APICS CONFIDENTIAL AND PROPRIETARY1 39
Performance Measures
Key Performance Indicators
Strategic
Tactical
OperationalDay-to-Day,Detailed
High Level,Long Term
Mid Level,Medium Term
© 2009 APICS CONFIDENTIAL AND PROPRIETARY© 2009 APICS CONFIDENTIAL AND PROPRIETARY1 41
Role of Materials Management
Demand Resources
Plan&
Control
– Balance company resources with demands– Balance conflicting objectives by:
• Maximizing the use of the firm’s resources• Providing the required level of customer service
– Involved with:• Manufacturing planning and control• Physical supply / distribution
1 42 © 2009 APICS CONFIDENTIAL AND PROPRIETARY
Manufacturing Planning and Control
(MP&C)
Introduction to Supply Chain Management
Session 1
© 2009 APICS CONFIDENTIAL AND PROPRIETARY© 2009 APICS CONFIDENTIAL AND PROPRIETARY1 43
Objectives of Manufacturing
The right products
Of the right quality
In the right quantities
At the right time
At minimum cost (right price)
© 2009 APICS CONFIDENTIAL AND PROPRIETARY© 2009 APICS CONFIDENTIAL AND PROPRIETARY1 44
Why Plan?
To satisfy customer demand and ensure the availability of resources – Material
– Capacity
Demand Resources
Plan&
Control
Demand
Resources
© 2009 APICS CONFIDENTIAL AND PROPRIETARY© 2009 APICS CONFIDENTIAL AND PROPRIETARY1 46
Manufacturing Planning and Control
Order Sequencing
Input/Output Control
Master Scheduling
Capacity Requirements Planning (CRP)
Sales & Operations Planning
Business PlanningMaster Planning
ResourcePlanning (RP)
Rough-Cut Capacity Planning
(RCCP)
Pri
ority
Pla
nn
ing
Exe
cutio
nC
ap
acity Pla
nnin
gE
xecutio
n
Material Requirements
Planning (MRP)
Production Activity Control (PAC)
1 49 © 2009 APICS CONFIDENTIAL AND PROPRIETARY
The Impact of New Systems and
Philosophies
Introduction to Supply Chain Management
Session 1
© 2009 APICS CONFIDENTIAL AND PROPRIETARY© 2009 APICS CONFIDENTIAL AND PROPRIETARY1 50
Impact of New Systems
Reduced lead times
Reduced inventory levels
Improved worker productivity
Improved product quality
Cost reductions
Theory of Constraints
Lean/JITTQM
Six SigmaEach of these
philosophies will be covered in a later
class session
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