supply chain management Şahver damla coşkunlar statistical simulation 08 june 20151dokuz eylul...

Supply Chain Management

Şahver Damla CoşkunlarStatistical Simulation

18 April 2023 1Dokuz Eylul University

Contents What is Supply Chain ?

Elements of Supply ChainSupply Chain Development history

Supply Chain ManagementManufacturing StrategySupply Chain Management FlowsSupply Chain Management ActivitiesSupply Chain Management Technology

Firm Examples Lean Thinking

18 April 2023 2Supply Chain Management

What is Supply Chain

A supply chain is the group of components (suppliers, distribution points, transportation providers) necessary to bring your product from its raw material state to the end user.

18 April 2023 Supply Chain Management 3Up Stream Down Stream

Supply Chain

A simple supply chain model consists of four components:Supplier: supplies the raw materialsManufacturer: produces the productWarehouse or Distribution Center: stores and ships the product End User(customer): receives the product

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3 Types of Supply Chain


Basic Supply Chain

Enlarge Supply Chain

High Level Supply Chain

Elements of the Supply Chain

Customer: The customer starts the chain of events when they decide to purchase a product that has been offered for sale by a company. The customer contacts the sales department of the company, which enters the sales order for a specific quantity to be delivered on a specific date. If the product has to be manufactured, the sales order will include a requirement that needs to be fulfilled by the production facility.


Planning: The requirement triggered by the customer’s sales order will be combined with other orders. The planning department will create a production plan to produce the products to fulfill the customer’s orders. To manufacture the products the company will then have to purchase the raw materials needed.Purchasing: The purchasing department receives a list of raw materials and services required by the production department to complete the customer’s orders. The purchasing department sends purchase orders to selected suppliers to deliver the necessary raw materials to the manufacturing site on the required date.18 April 2023 Supply Chain Management 7


Inventory: The raw materials are received from the suppliers,checked for quality and accuracy and moved into the warehouse. Thesupplier will then send an invoice to the company for the items theydelivered. The raw materials are stored until they are required by theproduction department.

Production: Based on a production plan, the raw materials are moved inventory to the production area.The finished products ordered by the customer are manufactured using the raw materials purchased from suppliers. After the items have been completed and tested,they are stored back in the warehouse prior to delivery to thecustomer.




Transportation: When the finished product arrives in the warehouse, the shipping department determines the most efficient method to ship the products so that they are delivered on or before the date specified by the customer. When the goods are received by the customer, the company will send an invoice for the delivered products.


Supply Chain Development History


Before 1970: Traditional production (push production)

From 1970: Just in Time

1980 to 1990: ERP IT systems (Pull production)

(Start of Supply Chain)

From 1990: Developing of IT systems, Lean


Supply chain management is a set of approaches utilized efficiently to integrate suppliers, manufacturers, warehouses, and stores so that merchandise is distributed at the right quantities, to the right locations, and at the right time, in order to minimize system-wide costs while satisfying service level requirements.




IT systems (MRP)


To get most profit;Provide best customer serviceProvide lowest production costProvide lowest inventory investmentProvide lowest distribution cost


Manufacturing Strategy


Specifications require

Customization

Postponement

Global or standard products

SCM Flows

Supply chain management can be divided into three main flows:The product flowThe information flowThe finances flow


SCM Flows

The product flow includes the movement of goods from a supplier to a customer, as well as any customer returns or service needs.The information flow involves transmitting ordersand updating the status of delivery.The financial flow consists of credit terms, payment schedules, and consignment and title ownership arrangements.


SCM Activities

Supply Chain Management has three levels of activities that different parts of the company will focus on.Strategic, Tactical,Operational.


SCM Activities: Strategic

At this level, company management will be looking to high level strategic decisions concerning the whole organization, such as the size and location of manufacturing sites, partnerships with suppliers, products to be manufactured and sales markets.


SCM Activities:Tactical

Tactical decisions focus on adopting measures that will produce cost benefits such as using industry best practices, developing a purchasing strategy with favored suppliers, working with logistics companies to develop cost effect transportation and developing warehouse strategies to reduce the cost of storing inventory.


SCM Activities:Operational

Decisions at this level are made each day in businesses that affect how the products move along the supply chain. Operational decisions involve making schedule changes to production, purchasing agreements with suppliers, taking orders from customers and moving products in the warehouse.


Supply Chain Management Technology

If a company expects to achieve benefits from their supply chain management process, they will require some level of investment in technology.

Enterprise Resource Planning (ERP)

SAP and Oracle.


SCM Technology

Since the wide adoption of Internet technologies, all businesses can take advantage of Web-based software and Internet communications. Instant communication between vendors and customers allows for timely updates of information, which is key in management of the supply chain.


Firm Examples

Oyak RenaultTurkey RomainFrance GermanySlovakia PolandSouth Africa Spain


Firm Examples

Vestel ElectronicChina, Korea, Taivan, Indonezia, Tayland, India, Malezia, Brezilia, Mexico, Poland, Checz Republic, Slovakia ve Litvania.

Alarko Carrier 19 country, 256 firm from Europe and

Asia


LEAN THINKING


Lean History


Lean Thinking

• “All we are doing is looking at the time line.. from the moment the customer gives us an order to the point when we collect the cash. And we are reducing that time line by removing the non-value added wastes”

Quote by Taiichi Ohno


The Five Lean Principles


Value Stream


What is Kaizen?

Kaizen: Constant improvements

Two kinds of Kaizen

The 20 Charactiristics Of Lean

Customer Simplicity Waste Process Visibility Regularity Flow Pull Postponement Prevention

Time Improvement Partnership Value networks Gemba Variation reduction Participation Thinking small Trust Knowledge

WASTE (MUDA Japanese for

waste)

Waste elimination is a means to achieving the Lean ideal

Waste prevention is at least as important as waste elimination

Value is the converse of waste.Continually improvementsPreventing and reducing wasteEnhancement of specifically

The Seven Wastes (Ohno)

The Seven Wastes (Ohno)

The waste of: Overproduction Waiting Unnecessary motions Transporting Overprocessing (Inappropriate processing)

Unnecessary inventory Defects

Lean Thinking To Business Processes

Order to replenishment Order only what has been sold

Order to productionMake to order

Product development Develop only what can be sold

Role Of Lean Practise

Small-batch productionOften production costs onlyReducing total costs in supply chainDeliver at the expected time

Rapid changeoverReduce changeover timeSMED (Single minute exchange of dies)

SMEDSingle minute exchange of dies

Lean Designs

Design strategies Avoid inherent in the design

Product designReducing numbers of partsFeatures that aid assembly, only one wayModular designs, allows upgrading

Facility designModular design of equipment Modular design of layoutSmall machines

JIT Just in Time

The discipline of doing things just-in-time neither too early nor too late

Demand from the customer-next process

Pull schedulingNo stocks

THE PYRAMID OF KEY FACTORS

Application Methods

5S Value Stream Mapping

SMED CRMTPM KaizenKanban Poka Yoke( No

Failure)FMEA(Failure Mode & Effects Analysis)


References• Tedarik Zinciri Yönetimi ,U. E. Eymen,

Kaliteofisi Yayınları No: 14 Şubat 2007• Sürekli Akış Yaratmak,M.Rother,N.Harris,

2001Web sites• www.godependable.com/supply-chain-

management.asp• www.productionplanning.com• www.capital.com.tr• http://searchcio.techtarget.com• http://logistics.about.com18 April 2023 Supply Chain Management 43

Thank You


supply chain management Şahver damla coşkunlar statistical simulation 08 june 20151dokuz eylul...

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