Ch%2011_mod

Ch%2011_mod - Operations Management MGT 3200 Dr. Samia Siha...

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Unformatted text preview: Operations Management MGT 3200 Dr. Samia Siha Supply-Chain Management Chapter 11 Chapter Map Supply­Chain (SC) Supply­Chain (SC) Management Management Importance Of Importance Of Supply Chain Supply Chain Supply Chain Supply Chain Economies Economies Supply Chain Supply Chain Strategies Strategies Managing Managing Supply Chain Supply Chain Logistic Logistic Management Management Affect Strategy Affect Strategy Make or Buy Make or Buy Many Suppliers Many Suppliers Success Factors Success Factors Of Integration Of Integration Distribution Distribution Systems Systems Global Issues Global Issues Outsourcing Outsourcing Few Suppliers Few Suppliers Issues affect Efficient Issues affect Efficient Integrated SC Integrated SC Shipping Alternatives Shipping Alternatives Vertical Integration Vertical Integration Opportunities Opportunities For effective SCM For effective SCM Security Security Keiretsu Networks Keiretsu Networks Internet Purchasing Internet Purchasing Virtual Companies Virtual Companies Vendor Selection Vendor Selection Ethical Issues Ethical Issues © Copyrighted 2 Learning Objectives 1. Define supply chain management, including primary concerns 2. Diagram and describe an example of a supply chain 3. Relate supply chain to strategic approaches: differentiation, cost leadership, and response 4. Define outsourcing. Describe at least three reasons to make and at least three reasons to buy 5. List and describe at least three supply chain ethical principles 6. Contrast reasons approaches for many suppliers and few suppliers 7. Recognize critical success factors and issues in managing the supply chain 8. Define the bullwhip effect 9. Define supply chain opportunities: pull data, vendor-managed inventory, postponement, and Define EDI EDI 10. Define logistics management 11. © Copyrighted Describe the challenge of global supply chain and security 3 Volkswagen Brazilian plant employs 1000 Brazilian workers workers 200 work for VW and are responsible 200 for overall quality, marketing, research, and design research, 800 work for other contractors and do 800 the assembly work the VW looks to innovative supply VW chain to improve quality and drive down costs down © Copyrighted 4 Volkswagen Important elements of this concept VW is buying not only materials, but also the labor and related services Suppliers are integrated tightly into VW’s own network, right down to assembly work in the plant Purchase costs in the auto industry exceed 60% of the sales dollar, so any savings are significant © Copyrighted 5 Volkswagen © Copyrighted 6 The Strategic Importance of the Supply Chain Supply-chain management is the Supply-chain integration of the activities that procure materials and services, transform them into intermediate goods and the final product, and deliver them to customers deliver Competition is no longer between Competition companies; it is between supply chains companies; © Copyrighted 7 A Supply Chain © Copyrighted Figure811.1 How Supply-Chain Decisions Impact Strategy Low-Cost Strategy Response Strategy Differentiation Strategy Supplier’s Goal Supply demand at lowest possible cost (e.g., Emerson Electric, Taco Bell) Respond quickly to changing requirements and demand to minimize stockouts (e.g., Dell Computers) Share market research; jointly develop products and options (e.g., Benetton) Primary Selection Criteria Select primarily for cost Select primarily for capacity, speed, and flexibility Select primarily for product development skills © Copyrighted Table 11.1 9 ...
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