1 Page Supply Chain Management- Need In 3 Hrs Max

Additional-Lectures.pptx

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Additional Lecture

Additional Lecture 1

Lecture Notes:

Managing Processes

International management

Deals with managing

diverse processes

Lecture Notes:

International management deals with managing various processes.

Managing inputs: is to manage the performance of people, equipment, facilities, lands, and energies.

Managing external environment: is to manage the performance of various operations, information, technology, and customer’s preferences and inputs.

Managing outputs: is to manage the performance of goods and services after they’re offered. This could be done by studying customer’s feedback.

International Management For 2 types of processes

Physical, durable output

Output can be inventoried

Low customer contact

Long response time

Capital intensive

Quality easily measured

Intangible, perishable output

Output cannot be inventoried

High customer contact

Short response time

Labor intensive

Quality not easily measured

More like a manufacturing process if it has:

More like a service process if it has:

China

India

Lecture Notes:

Mangers manage various processes. In here, we study managing two types of process: manufacturing and service. The management of these two processes differ because of the nature of the output and the degree of labor and customer involvement.

Examples of managing service companies: managing banks, delivery and transportation services, food services, retails and more. In the past, managing service organizations involved managing heavy labor and customers. Recently, due to technology and automation the degree of intensity for managing labor and customers have decreased. For example ATM, and self checkouts have decreased the need to manage labor. Automation is also used for contacting customers and analyzing their feedbacks, which has decreased the need to manage customers.

The line between services and manufacturing is not always clear. For example, a restaurant produces (cooks) food, which makes its operation similar to manufacturing but it serves its customers, which makes its operation similar to service. However, a restaurant is often considered as a service company.

International Management Managing Supply Chain

Effective Management

Every activity in the entire supply chain should add value and all wastes and unnecessary costs should be eliminated everywhere.

Lecture Notes:

International management usually involves managing worldwide supply chain of an organization. Effective management is to reduce costs and increase profit. In order to do that, every activity should add value either to its preceding activities or to the whole. Various wastes and unnecessary activities that increase costs without adding any value should be eliminated.

Managing Waste

Panasonic Corporation is a Japanese company that originally started by selling lamps in 1918. today, this company is the largest electronic manufacturing in the world and a model for others because of its successful waste management.

Managing waste allows managers to gain profit by ‘trimming the fat’, improving efficiency, improving delivery, decreasing production lead time, and lowering required inventory.

Waste can be integrated in managing various activities such as managing transportation, inventory, product movements, deliveries, and production.

Managing Waste Using Lean Practice

Lean Practice

Is a practice that maximizes value by removing waste and delays from all of company’s activities.

JIT (just-in-time) is one of the oldest and most common practices of lean that was pioneered by Toyota. This practice eliminates wastes by organizing resources and information appropriately to cut excess movement, capacity, and inventory.

Managing Eight Types of Waste

Don’t over produce. Demand must match supply.

Don’t allow inappropriate processing. Don’t use expensive equipment when a simple one could do the job. Don’t over utilize resources, equipment, or capital.

Don’t wait too long for a product to deliver. Cut down on long production time, poor material flow, and connect processes tightly to decrease waiting time.

Don’t allow excessive and unnecessary transportation or movement of products.

Lecture Notes:

There are eight types of wastes that managers could reduce in order to add value, make operations efficient and make more profit.

Each of the above wastes contributes to increase in resources, capital, while not adding any value for the company.

Managing Eight Types of Waste

Don’t use excessive motion. Cut unnecessary efforts such as bending, stretching, lifting, walking and more.

Don’t have excess inventory. Allow flexible inventory levels to have your inventory match your demand pattern.

Don’t produce bad quality products or services because you might need to re-produce them, which would increase costs and ties up resources.

Don’t under utilize employees’ knowledge. Take advantage of employees education and skills.