1 / 20

Chapter 10

Chapter 10. Enterprise Systems and Supply Chain Management. The Schedule. For Today Skipping a few chapters Current Events The Supply Chain & Problems Efforts to Integrate the Supply Chain For Next Time BPR & Supply Chain Mgmt Supply Chain Mgmt Examples. Supply Chain Components.

phuc
Télécharger la présentation

Chapter 10

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 10 Enterprise Systems and Supply Chain Management

  2. The Schedule • For Today • Skipping a few chapters • Current Events • The Supply Chain & Problems • Efforts to Integrate the Supply Chain • For Next Time • BPR & Supply Chain Mgmt • Supply Chain Mgmt Examples

  3. Supply Chain Components • What is Supply Chain Management? • Supply Chain Components: • Upstream Supply Chain • Internal Supply Chain • Downstream Supply Chain • “Cradle to Grave” responsibility (Budweiser, auto makers) • What might be included in a supply chain for a typical company (who are the players)? • Some items might not be so obvious

  4. Goals and Purpose of SCM • Goals of Supply Chain Management • Reduce uncertainty & risks, inventory, cycle time • Improve business processes, customer service (Road Work) • Increased profits & competitiveness (RFID proof)

  5. A Few Questions • What prevents supply chain software from returning value to all organizations? (Calif IT Crisis, Nestle) • What changes need to take place within an organization in order for supply chain management software to be more effective? • SC and VC both study connections with suppliers, customers, business partners • What is the difference between them? • How can Extranets improve SCM? (new case of pampers)

  6. Problems in the Supply Chain • Occur within complex / long supply chains • GM $85B, Ford $80B with its suppliers • 30,000 suppliers in auto industry • Average car has > 10,000 parts • How do you recognize supply chain problems? • What are some examples of problems? (cordless phone) • Why do they happen? • How do you fix them? (RFID box video)

  7. Example of Supply Chain Probs. • Toys ‘R’ Us • Online toy retail site unable to meet customer demands for 1999 holiday season • Some History… • Demand was very high for several reasons… • What factors contributed to this overall situation? • Performance measures & customer loyalty

  8. Traditional (Poor!) SC Solutions • Vertical Integration • Ford purchased a rubber plant in South America • Ryder Trucking purchased refineries in 1970’s • Accumulating large inventories • What is the benefit? • Why did/do companies do this? • Why are these such poor solutions today?

  9. What to do with large inventory?

  10. Early Supply Chain Systems • Late 1950’s and 1960’s • First industrial use of IS • Automate separatepieces of the supply chain, Why? • What was automated first? Second? • Goals: reduce cost, expedite processing, reduce errors; sounds good, right? • Resulted in “Stovepiping” • What are symptoms of stovepiping, both within the organization and from customer’s point of view? • How can IS and BPR fix stovepiping? • Why is IS alone not a sufficient solution?

  11. Today’s Supply Chain Systems • Works with existing IS to gather data from all parts of the supply chain • Provides a clear picture of where the organization is heading • Integrates additional functionality • Decision Support Systems, Customer Relationship Management, Electronic Commerce, Data warehousing • BPR trend has now ‘desrever’: watch out! • Before: Discover problems, find technology solution to fix it • Now: Create technology solutions, look for probs it fixes

  12. Retooling IT for BPR • Make sure that IT fits the business process!! (again…) • “Held Hostage” Often organizations discover a problem only to find there IS will not support the solution (legacy systems) • Important to understand existing infrastructure, benchmark technology use against best competitors • Don’t get left behind the rest of the field!

  13. Restructuring Processes & Orgs • Major BPR activities include, but are not limited to: • Redesign of Processes • Mass Production to Mass Customization • Cycle Time Reduction • Restructuring Organizations • The following are examples…

  14. Redesigning the Process • Ford Motor Company Accounts Payable • Old Process • Write Purchase Orders • Invoice mismatches between purchasing, material control, accounts payable, vendor • Had to manually match 14 items on every invoice • New Process • Invoiceless processing (EDI): no mismatches • Now automatically match only 4 items on PO • System pays vendor directly • 75% reduction in headcount, more accurate info

  15. Mass Production to Customization • Bally Engineered Structures: sales & ordering • Custom made insulated products • Old: 12 options, 86 sequential tasks, takes 5 to 7 weeks • Redesigned system to provide salespeople with cust requirements, prices, specifications, and increased communication • New: 10,000 options, 20 sequential tasks, takes 1-2 weeks • Possible through IT & flexible manuf systems (robotics)

  16. Cycle Time Reduction • Time to complete a process beginning to end • More than just saving time: First to market! • Chrysler’s technology center reduced cycle time by 30% • Boeing 777 design, no physical prototype • Fundamental change • Computer becomes a platform for total design rather than “just a tool” • Cultural change involving engineers and role of the computer - can be significant!

  17. Restructuring Organizations • Structure should: • Support critical activities and strategy • Support the link between strategy & IS • Problems with hierarchy: • All it takes is one person to say “No” • Restructure for customer focus • Single contact point for customer • Leverage competitive intelligence!

  18. Organizational Structures • Hierarchical (greater authority) • Manager makes decision, job is to “sell” decision to others, may invite questions • Flattened • Manager presents problem, solicits input to make decision, or group makes decision • Networked (greater freedom) • Subordinates have more power, use of “situational leadership” • Empowerment: give permission to the workforce to develop & utilize their skills & knowledge for the good of themselves & the organization • No single best structure for all organizations

  19. Important Concepts to Know • The Supply Chain • Early problems in SC • Vertical Integration: its benefits & problems • Supply Chain Management • Restructuring the process & organization

  20. For Next Time… • Minicase for Monday • Reading on Knowledge Management will be sent to you

More Related