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Supply Chain Management. Juliet Bodley Melissa McLymont Darian Richards. Contents. Supply Chain Management Overview Attributes of Supply Chain Management Constraints of Supply Chain Management Military Supply Chain Management Jamaica Defence Force Utility Supply Chain Management
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Supply Chain Management Juliet Bodley Melissa McLymont Darian Richards
Contents • Supply Chain Management Overview • Attributes of Supply Chain Management • Constraints of Supply Chain Management • Military Supply Chain Management • Jamaica Defence Force • Utility Supply Chain Management • Jamaica Public Service Company
Supply chain management overview • Supply Chain is the movement of materials as they flow from their source to the end customer. • Supply Chain includes: • Purchasing, • Manufacturing, • Warehousing, • Transportation, • Customer Service • Demand Planning • Supply Planning • Supply Chain Management Reference: http://www.supplychaindefinitions.com/
Supply CHAIN MANAGEMENT OVERVIEW • Supply Chain Management (SCM) is a process used by companies to ensure that their supply chain is efficient and cost-effective. Typically, supply chain management is comprised of five stages: plan, develop, make, deliver, and return. • Supply chain management (SCM) is the combination of art and science that goes into improving the way your company finds the raw components it needs to make a product or service and deliver it to customers.
Supply chain management overview Five Basic Components of Supply Chain Management • Plan—This is the strategic portion of SCM. Companies need a strategy for managing all the resources that go toward meeting customer demand for their product or service. • Source— Companies must choose suppliers to deliver the goods and services they need to create their product. • Make—This is the manufacturing step. Supply chain managers schedule the activities necessary for production, testing, packaging and preparation for delivery. • Deliver—This is part is referred to as logistics, where companies coordinate the receipt of orders from customers, develop a network of warehouses, pick carriers to get products to customers and set up an invoicing system to receive payments. • Return—This can be a problematic part of the supply chain for many companies. Supply chain planners have to create a responsive and flexible network for receiving defective and excess products back from their customers and supporting customers who have problems with delivered products. Reference: http://www.cio.com/article/40940/Supply_Chain_Management_Definition_and_Solutions#scm_abc
Attributes of supply chain management • Customer Power • Long-Term Orientation • Leveraging Technology • Enhanced Communication across Organizations • Inventory Control • Inter-organizational Collaboration
Constraints to supply chain management • Regulatory and Political Considerations • Lack of Top Management Commitment • Reluctance to Share, or Use, Relevant Information • Incompatible Information Systems • Incompatible Corporate Cultures • Globalization
Jamaica Defence Force Military supply Chain management
OVERVIEW • This segment focuses on Military Supply Chain Management with respect to the Jamaica Defence Force • The Jamaica Defence Force is the military arm of the Jamaican Government • This segment will demonstrate how the basic elements of supply chain is involved in the product creation and its delivery to the customer
Logistics Company of the Jamaica defence force (JDF Logs Coy) • How do we utilise the supply chain management concept? • Is the supply chain concept pure theory? • Or is it practical and applicable? The logistics company is the supply arm of the Jamaica Defence force. It fits into the complex supply chain as illustrated
Illustration Supplier Transportation 8 regiments Manu-facturer JDF Logs coy Individual Soldiers Ministry of National Security for funding
who does the JDF logs coy supply? (Customer) • 1st battalion Jamaica regiment • 2nd battalion Jamaica regiment • 3rd battalion Jamaica regiment • Engineer regiment • Support and services battalion • Combat support battalion • JDF air wing • JDF coast guard (Organization) JDF Logs coy Ultimate Customer
What does the JDF Logs coy supply? Office supplies and furniture Army Ration, MRE, meats, veggies Ammunition and Small arms Uniforms and accoutrements Combat EQ. Construction EQ.
other items JDF uses but are not supplied by the logistics company These include. Medical Supplies Communication Equipment Vehicles (earth, air and sea) and their maintenance equipment
WHICH SUPPLY CHAIN MODEL DOES THE JDF LOGS COY USE? Mostly: SUPPLY CHAIN OPERATIONS REFERENCE MODEL. PLAN *Demand pull VS Supply push* mandatory in some cases • Diets-Ration (dp-sp) • Location of soldiers (Spanish Town VS on camp)(dp) • Kind of training, or activities (dp) • Amount of uniforms needed (dp-sp) • Number of soldiers (dp) • Length on time they would need certain supplies for (dp)
SOuRCE Government procurement guidelines, NCC, TCC *Price! and seldom quality!* Third party logistics: • Delivery Companies, • construction equipment repair companies
MAKE Uniforms locally made • Logs coy supplies raw materials • Source tailors Food prepared at the Force Catering Center • Logs coy supplies raw food • Food is prepared at each base and distributed
DELIVER Items from overseas delivered to Kingston will harvest Logs Coy All locations island wide by means of military transportation
returns Room for Improvement No return procedures on Uniforms nor combat equipment: bullwhip effect kept and recycled locally Soldiers returning a product to the Logs Coy??! Construction equipment: Returns are handled by the Engineer regiment and returned physically to the supplier if defective. (post delivery costumer support) Foods: If spoiled or infected are thrown away but never returned
Do the supply chain attributes even tie in?? Customer power! Contrary to what you may believe, though the customer is just a soldier, customer power does exist. Lamb, not a very popular dish though cheap and easy to prepare. Though Pork is popular not every one eats it
BOOTS Uncomfortable Comfortable Will soldiers continue to purchase or accept issued boots from the JDF if there is a better alternative?
JDF Logs coy agile, and fast! E.G.: Deployment in the garden parish rapid increase in the supply of : • Bullet Proof Vests SCOR……….. -----Bull whip not so bad-------
Long Term Orientation (alliances) • Chinese Government: relational Exchange • US • Canadian Government • Grace Kennedy • Local Hardware stores
Leveraging technology • Obvious - Internet : orders , visualise, communicate • Ships that are more reliable • Air lift
Enhanced Communication Room for Improvement! • No system in place to alert JDF logs coy that and item will soon be needed. • Use of supply chain software • Update it to the logs coy
Inventory control FOOD! Wastage Payday vs, middle of the month Uniforms! • Specialised uniforms- dry rot • Severe stock outs- uniforms only supplied once per year, one set does not last the entire year. However!...disasters, bullwhip might be a good thing, Logs coy to strike a balance
Inter Organizational Collaboration Not a competitive organization Demand Chain:
Barriers to our supply chain Transactional: • Invoices • Product specifications Top management commitment • Though essential to its performance, it is not the number one function of the JDF
Jamaica Public Service Company Utility supply chain management
Utility Supply Chain Management • All utility companies market their product. • Their objective is to achieve customer satisfaction so that the company can remain viable.
What is the Product? • The product is electrical energy that the customer receives for Domestic or Commercial purposes.
OVERVIEW • This segment focuses on Utility Supply Chain Management with respect to the Jamaica Public Service Company • The Jamaica Public Service Company is the sole distributor of energy in Jamaica • This segment will demonstrate how the basic elements of supply chain is involved in the product creation and its delivery to the customer
Links in the supply chain Call Center Material Management Maintenance & Protection System Control Dispatch Center Power Stations Petrojam (Oil Refinery) 3PLs Private Contractor
Core of the JPS power supply Chain • Generation System • Transmission System • Distribution System
Where do we begin? • The sources of the product begins at the generating power station.
Power Plant(Generation) Ships(4PLs) Power Plant Petrojam Contractual agreements between JPS and 3PLs (Petrojam) to supply fuel. Petrojam supplies two(2) basic types of fuel HFO and ADO. Fuel is usually transported via pipeline or trucks.
Power plant(generation) • Hunts Bay B6 is a 68.5MW oil fired power plant (unit) consumes 12-14 ft of HFO per day. • The Unit day tank stores in one tank 28ft fuel. (Total volume164,739 US GAL) • B6’s fuel consumption and storage is monitored by the plant engineers with the help of Power Plant Monitoring System(PPMS) which triggers an alarms prompting the engineer to reorder fuel to prevent stock-out scenarios.
Power plant(generation) The fuel is burned in furnaces to heat pure water into superheated dry steam at 950 °F and 1250psi. The steam is then used to turn a prime mover(turbine shaft) which cuts a magnetic field to produce an induce E.M.F.(current). This is then transported to the transmission network.
24 kV 13.8 kV 12 kV Maintenance and Protection(transmission) 138 KV 69 KV LOAD CENTRE GENERATION STATIONS
Maintenance and Protection(Transmission) • Engineers manage the reliability of Power supplied to the various customer while maintain the integrity of the power grid using various power flow tools. • Ensure the safety during operation of there internal and external customer. • Contract 3PLs for the equipment. Eg trucks testing equipment and consultants • Tools Used to simulate various possibilities to correct and prevent system incidents. • CYME • PSAF • OSI Monarch
Materials Management(Transmission & Distribution) • If their is damage to an electrical equipment on the network affecting customers. Example reclosers, PTs,CTs or conductors a formal request is made for equipment. Using oracle data base management tool. • This tool is used to reorder, track and locate inventory whenever they fall below the reorder level. Tools used - Oracle Data based
Distribution • Power (I,V) is stepped down to the distribution levels via transformers and transported to customers through conductors and other equipment along the lenght of the line. • Engineers, journey linesmen, and other 3PLs (contractor, ameco,security) help to ensure custome have continues supply on a 24hrs basis. Tools used: Synergee (Advantica Inc.) JPS GIS
Dispatch Call Centers(Distribution) • Tools • Currently Call log based operation • Moving to a GIS based Outage Management System (GeNome) • Core Functions • Minimize the duration of outages or faults • Ensure completeness of remedial actions and accuracy of records for OUR reporting • Maintain effective communication with customers and staff when resolving trouble call issues
Call Centres(distribution) • Core functions - Customer queries and bill payment. - Reconnections (3PLs contractors) - Fault Reports. Tools Used: - CIS Banner - CMS
System Control • The System Control Center , also referred to as the “nerve center” of the Company’s technical operations, monitors and controls the Supply Chain.
System control Anticipate customer electrical demand to ensure customer satisfaction • Daily demand predictable with evening peak from 6:30pm to 9:30pm driven by residential demand requiring the use of expensive GT generation • Day Peak up to 50MW less than evening peak. Equal some times of the year. • Drop in demand between 4:30pm and 6:00pm as commercial load reduces • Weekend (Sat & Sun) demand profile similar to weekday except for a significantly curtailed day peak and a reduced evening peak JPS single largest customer is the Caribbean Cement Company with a demand of 18MW (Exp to 28MW 2011). Largest aggregate customer is the National Water Commission Some other large customers in the 3MW to 5MW range Port Authority slated to increase demand to (15MW) when expansion is complete
System Control(plan) • The actual demand is obtain by extensive load research utilizing different techniques. • End use data • Econometrics • Historical information Electrical demand is forecasted using Neural Networks.(growth rate of 5% per year)
MASTER STATION RTU RTU System Control(SCADA) Data Acquisition -A fault occurs. The signal is sent to the master station. Supervisory Control -To counter the fault, a control is sent to the RTU to open the breaker.
System Control PETROJAM Taxes & Mark-up Local Storage Power Plants US GULF MEAN PRICE Electricity Payments kWh $/BTU Payments JPS & IPPs $/BBL. SHIP To Customers • FUEL • Quantity (BBLS.) • Calorific Value (BTU/BBL) kWh