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Click to edit title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,*,The Characteristics of,Supply Chain Management,Complexity, Variability, Conflicting Objectives,0,Order Response Time,Product Availability,Lead Time,Order Changes,Due Date Performance,Resource Investment,Asset Productivity,Inventory,Supplier & Capacity Contracts,Level of,Service,Cost of,Service,The Business Challenges,1,Complexity,Variability,Conflicting Objectives,What are the characteristics of Supply Chan Management, why is it so hard to manage?,2,Complexity,Lead Times Limit Flexibility,Little or No Predictability and Poor Product Mix,?,Chronic Capacity,Shortages,Current Processes and Structures Inhibit Performance,Inventory Used to Cover Problems,Complications in the Electronics Industry,Complexity in Component / Semiconductor Manufacturing,Mass customization,Personalization,Product mix effects on capacity,Multiple options,Contracted,vs,. owned capacity,Combined make-to-forecast and make-to-order,Inverted BOM,Binning,Multi-stage global production,3,Uncertainty in the supply chain results in significant variability,Early,On-time,Late,Early,On-time,Late,Under,Forecast,Over,Early,On-time,Late,Customer Demand,Supplier Performance,Manufacturing,Customer,Deliveries,Raw,Materials,Finished,Goods,Past Performance,Market Research,Analytical Technique,Incentive Programs,Responsiveness,Transportation,Location,Quality,Process Design,Product Design,Capacity,Quality,By Tom Davis,4,Supply,Channel Orders,Actual,Launch,Real Shortage,Returns/Cancellations,Over-Supply,Channel Fill and Phantom Demand,Target,Launch,End of Life,True End Customer Demand,Units Per Period,Time,Multiple forecasts and unreliable fulfillment today create the bullwhip effect.,5,Shortened product life cycle has increased the uncertainty.,Ramp-up,Ongoing,End of Life,Ramp-upOngoingEnd of Life,Role of Inventory,HighUsualLow,Cost of Shortage,HighUsualLow,Cost of Overage,LowUsualHigh,By Professor Hau L. Lee, Stanford University,6,Variability,Natural,Demand,Material supply,Production,Distribution,Self-Introduced,Replenishment strategies,Planning processes,Inventory strategies,7,Traditional functional alignments continue to impede Supply Chain Performance.,Misaligned Functional Goals & Behaviors,Purchasing,Manufacturing,Distribution,Sales & Customer Service,Goal:,Behavior:,Lowest purchase price,Highest utilization,Lowest cost,100%,customer satisfaction,Long lead times,High raw material inventory level,Long run lengths,Inflexible schedules,High WIP inventory,Long order fill times,Inflexible schedules,High inventories,Promise flexibility,8,Conflicting Objectives - Manufacturing,Littles Law,Littles Law,Asset,Utilization,WIP,INV,Cycle,Time,Variability,Throughput,WIP,Cycle Time,Variability,9,Conflicting Objectives - Customer,Littles Law,Asset,Utilization,WIP,INV,Cycle,Time,Variability,Order Response Time,Early,Warnings,Due Date Performance,Fill,Rates,10,Conflicting Objectives - Corporate,Littles Law,Asset,Utilization,WIP,INV,Cycle,Time,Variability,Order Response Time,Early,Warnings,Due Date Performance,Fill,Rates,Market Share,Profit,Market,Risk,11,
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