3 packing and per delivery time operations leadtime

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3. Packing and per-delivery time:
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Operations Leadtime Operations Leadtime consist of 4 components: 1. Processing time – determined by engineering & alternative routings. 2. Setup time - determined by engineering & production scheduling. 3. Moving time - determined by layout design and technology. 4. Waiting time – can be reduced by shop managers.
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Supply Chain Management and E-Business
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Supply Chain Management Supply Chain Management (SCM): seeks to synchronize a firm’s functions and those of its suppliers to match the flow of materials, services, and information with customer demand. SCM can be viewed as an analogy for inventory flows similar to the water flow from a tank – to more effectively managing the flow of materials including three categories on inventories: Raw Materials (RM), Work- In- Process (WIP), and Finished Goods (FG). Manufacturers spend 60 percent of sales on purchased materials and services, and service providers spend as much as 40 percent. The management of materials flows in thus very important from a competition perspective.
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Supply Chain Management Supply Chains: an interconnected set of linkages between suppliers of materials and services that spans the transformation of raw materials into products and services and delivers them to a firm’s customers. Supply chain from service providers: service providers must purchase materials from manufacturers and services from other service providers. Developing integrated supply chains: Phase 1: independent supply- chain entities Phase 2: internal integration- materials management Encompasses materials and services purchasing, inventory, production planning, staffing, scheduling, and distribution The segmented structure is ”traditional” and creates three departments: purchasing, production control, and distribution The integrated structure combines three traditional departments into one called materials/ logistic management Phase 3: supply-chain integration: this form integrates the internal and external supply-chain entities.
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External Value-Chain Linkages Figure 9.1 First-Tier Supplier First-Tier Supplier Service/Product Provider Service/Product Provider Support Processes Support Processes Supplier Relationship Process New Service/ Product Development Process Order- Fulfillment Process Business-to- Business (B2B) Customer Relationship Process Supplier Relationship Process New Service/ Product Development Process Order- Fulfillment Process Business-to- Business (B2B) Customer Relationship Process External Suppliers E x t e r n a l C u s t o m e r s E x t e r n a l C u s t o m e r s
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Supply Chain for a Florist Figure 9.2 Figure 9.2 Required for facilitating goods Required for facilitating goods Required for explicit services Required for explicit services Required for supporting facilities Required for supporting facilities Required for implicit services Required for implicit services Home customers Commercial customers Florist FedEx delivery service Packaging Local delivery service Flowers – local/ international Arrangement materials Internet services Maintenance services
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