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Supply Chain
Management:
From Vision to
Implementation
Chapter 7: Supply Chain
Mapping
Chapter 7: Learning
Objectives
Question
What is
Supply
Chain
Design?
4
Question
Failure to be Proactive in
Design
Process Mapping
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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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Process Analysis
2. 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.
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Traditional
Supply Chain
Inventory Management
Approach
Only company-owned
Cost Management
Approach
Price focus
Total cost
Coordination of Sharing
and Monitoring in Chain
Limited
Amount of Coordination
of Multiple Levels in the
Chain
Limited
Extensive
None
Integrated with
information technology
Supplier Management
Arms-length and/or
adversarial
Traditional
Supply Chain
Leadership in Supply
Chain
None
None
Speed of Operations,
Information/Inventory
Flows
Slow, limited
Rapid, extensive
Information Technology
Extensive improvements
and linkages
Team Process
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Design Tools
1.
2.
3.
4.
SCOR Model
Supply Chain Double Helix
Nature of Product or Service
Product Life-Cycle
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Planning
Sourcing
LO 3
Making
Delivering
Returning
SCOR Model
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Functional Products
Supply Chains
Functional products have relatively:
Predictable demand
Long life cycles
Large number of substitutes
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