supply chain managmentt

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SupplyChainManagement--Lesson11.docx

SCM. SUPPLY CHAIN MANAGEMENT.

SCM. SUPPLY CHAIN MANAGEMENT.

SCM. SUPPLY CHAIN MANAGEMENT.

SUPPLY CHAIN, LOGISTICS AND OPERATIONS MANAGEMENT

Supply Chain Management or Logistics is the part in Operations Management to control the flows in a Production System. Flows can be:

- Information (customer’s demand) - Materials and products.

Logistics controls the external flows (between customers and suppliers) and the internal flows (transportations, storage, stocks, etc.)

COMPANY

SUPPLIERS

CUSTOMERS

Information flow

Materials flow

Stocks

OBJECTIVES:

[MAXIMIZE]: Profits, Quality, Customers’ satisfaction, … (EFFICIENCY)

[MINIMIZE]: Times, Defects, Customers’ complaints, … (COSTS)

Examples of SCM:

SYSTEM

INPUTS

RESOURCES

OUTPUTS

Automotive manufacturer

Pieces, customer’s demand

Workers, machinery, tools,

Cars

Hospital

Patients

Doctors, nurses, clinical apparels, beds, medicines

Healthy people

University

Students

Teachers, classrooms, PCs, books, …

Graduate people

Not

Conform

(0 points)

Acceptable (1 point)

Conform (2 points)

Observations

PURCHASING

Does it exist a procedure with the steps to do when you have to purchase any product?

Can you guarantee the purchasing in quantity, time and the best price?

Are the suppliers and subcontractors evaluated frequently?

Does it exist a list of evaluated suppliers for all the products and materials and sorted according ABC system?

Do you know if the methods implemented by suppliers are effective?

Do you have quality agreements?

Are the purchasing documents containing all the specifications about the required products?

Do you know the status of your purchasing when you require? Is there a traceability?

Does it exist an action plan in case of nonconformities?

WAREHOUSE

Do all the products arrive with full documentation?

Are all the products controlled when they arrive to the warehouse?

Are the warehouse procedures updated?

Does it exist documentation about how to store the products and materials?

Do the employees know the steps to follow in every warehousing operation?

Do you control the rotation of products? Do you keep products and materials using FIFO or FEFO?

Do you keep a minimum stock for each product (Safety Stock)?

Are all the stored products identified in their areas?

Are there different areas of storage in function of the families of products?

Are the anomalies communicated and documented?

Is there a file for all this information?

Is there information about the movements in the warehouse in time?

Do you check the stored products (if they are broken, expired, obsolete, correct identification, etc.)?

Do you have all the documentation and information before picking?

Is there a correct environment in warehouse (light, noise, dust, etc.)?

Do the fire extinguishers and safety elements work properly?

Is the area clean and in order? Are there tools to keep it clean?

ADMINISTRATION

Do you use KPI to measure the efficiency of the different activities?

Do you use information systems to manage all information?

Do you know exactly the value of the inventory that is stored in warehouse?

Do you check frequently the safety stocks?

Do you try to minimize the stocks of noncritical products?

Do you evaluate the suppliers’ service

(deliveries in time, quality, etc.)?