scm_ch07

scm_ch07 - Supply Chain Management: From Vision to...

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Supply Chain Management: From Vision to Implementation Chapter 7: Supply Chain Mapping
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2 Chapter 7: Learning Objectives 1. Discuss the concept of SC design and its importance. 2. Explain process mapping and describe mapping’s role in SC design. 3. Describe several popular approaches for SC design. 4. Map out a supply chain. Describe key insights a manager can gain from a SC map.
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3 Supply Chain Management SCM is the design of seamless value added processes across organization boundaries to meet the real needs of the end customer. SC design and improvement is assisted by: 1. Process Mapping - creates visibility of current and improved processes. 2. Value Stream Mapping - depicts flow of information and materials 3. SC Mapping - displays the dynamics that govern how a supply chain works
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4 Failure to be Proactive in Design Failure to proactively design a SC results in: Poor coordination of effort Incompatible information systems Long cycle times Communication problems Customer service issues Excessive waste and environmental degradation Relatively high inventories for the level of customer service achieved Lower the optimal profit
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5 Process Mapping A process is defined as an activity that transforms or changes input into new output. A process map is a graphic representation of the system and contains a sequence of steps that are performed to produce some desired output. The primary goal behind process mapping is to make complex systems visible.
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6 Process Mapping
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7 Developing a Process Map Determine the purpose of the process map Establish level of detail Establish system boundaries Determine who has the required information or experience. Analyze the process through observation and interviews, document each step. Draw the map Have the people who are involved in the mapping process as well as others (including those who actually perform the process) review the map for clarity and completeness
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8 Process Map – Bake a Cake
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9 Process Analysis Process analysis is used to identify non-value added or redundant activities. 1. Begin process analysis by examining the time, cost, resources, and people involved in each step. Identify the steps that consume the most time or resources. Identify processes that take too long or vary greatly in time. Identify points of delay. Estimate the value added by each step and judge the value against the cost. Consider the reasons for problems and how to improve specific activities or processes.
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10 Process Analysis 1. Re-examine each decision symbol. Determine if the decision is necessary and adds value? Consider combining decisions or moving them to another point in the process to create more value. 2.
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scm_ch07 - Supply Chain Management: From Vision to...

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