Bài giảng Operations Management - Chapter 11: Supply-Chain Management

Operations ManagementSupply-Chain ManagementChapter 111OutlineGLOBAL COMPANY PROFILE: VOLKSWAGENTHE STRATEGIC IMPORTANCE OF THE SUPPLY-CHAINGlobal Supply-Chain IssuesSUPPLY-CHAIN ECONOMICSMake-or-Buy DecisionsOutsourcing2Outline - ContinuedSUPPLY-CHAIN STRATEGIESMany SuppliersFew SuppliersVertical IntegrationKeiretsu NetworksVirtual CompaniesManaging the Supply ChainIssues In an Integrated Supply ChainOpportunities in an Integrated Supply Chain3Outline - ContinuedINTERNET PURCHASINGVENDOR SELECTIONVendor EvaluationVendor DevelopmentNegotiationsMATERIALS MANAGEMENTBENCHMARKING SUPPLY-CHAIN MANAGEMENT4When you complete this chapter, you should be able to :Identify or Define:Supply-chain managementPurchasingOutsourcingE-procurementMaterials managementKeiretsuVirtual companiesLearning Objectives5When you complete this chapter, you should be able to :Describe or Explain:Supply-Chain StrategiesPurchasing strategiesApproaches to negotiationsLearning Objectives6VolkswagenBrazilian plant employs 1000 workers200 work for VW800 work for other contractors:Rockwell International, Cummins Engines, Deluge Automotiva, MWM, Remon and VDO, etc.VW responsible for overall quality, marketing, research and designVW looks to innovative supply-chain to improve quality and drive down costs7VolkswagenUnusual elements:VW is buying not only materials, but also the labor and related servicesSuppliers are integrated tightly into VW’s own network, right down to assembly work in the plant8Planning, organizing, directing, & controlling flows of materials Begins with raw materialsContinues through internal operations Ends with distribution of finished goodsInvolves everyone in supply-chainExample: Your supplier’s supplierObjective: Maximize value & lower wasteSupply-Chain Management9ConsumerRetailerManufacturingMaterial FlowVISA®Credit FlowSupplierSupplierWholesalerRetailerCashFlowOrderFlowSchedulesThe Supply-Chain10The Supply ChainSupplierSupplierSupplierInventoryInventoryDistributorInventoryInventoryManufacturerCustomerCustomerCustomerMarket research dataScheduling informationEngineering and design dataOrder flow and cash flowIdeas and design to satisfy end customerMaterial flowCredit flow1111%31%58%MaterialDir WagesOther71%16%13%COGSPayrollOther83%9%8%COGSPayrollOtherManufacturingWholesaleRetailMaterial Costs in Supply-Chain12Supply-Chain Support for Overall StrategySupplier’sgoalPrimary Selection CriteriaSupply demand at lowest possible costSelect primarily for costLow CostRespond quickly to changing requirements and demand to minimize stockoutsSelect primarily for capacity, speed, and flexibilityResponseShare market research; jointly develop products and optionsSelect primarily for product development skillsDifferentiation13Supply-Chain Support for Overall Strategy - continuedProcess CharacteristicsMaintain high average utilizationLow CostInvest in excess capacity and flexible processesResponseModular processes that lend themselves to mass customizationInventory CharacteristicsMinimize inventory throughout the chain to hold down costsDevelop responsive system, with buffer stocks positioned to ensure supplyMinimize inventory in the chain to avoid obsolescenceDifferentiation14Supply-Chain Support for Overall Strategy - continuedLead-timeCharacteristicsShorten lead-time as long as it does not increase costsLow CostInvest aggressively to reduce production lead-timeResponseInvest aggressively to reduce development lead-timeDifferentiationProduct-design CharacteristicsMaximize performance and minimize costUse product designs that lead to low set-up time and rapid production ramp-upUse modular design to postpone product differentiation for as long as possible15Global Supply-Chain IssuesSupply chains in a global environment must be:Flexible enough to react to sudden changes in parts availability, distribution, or shipping channels, import duties, and currency ratesAble to use the latest computer and transmission technologies to schedule and manage the shipment of parts in and finished products outStaffed with local specialists to handle duties, trade, freight, customs and political issues16Major cost centerAffects quality of final productAids strategy of low cost, response, and differentiationImportance of Purchasing17Supply-Chain Costs as a Percent of SalesAll industryAutomobileFoodLumberPaperPetroleumTransportation52%67%60%61%55%79%62%IndustryPercent of Sales18Dollars of Additional Sales Needed to Equal 1$ Saved Through PurchasingPercent of Sales Spent in the Supply-Chain30%40%50%60%70%80%90%2$2.78$3.23$3.85$4.76$6.25$9.09$16.674$2.70$3.13$3.70$4.55$5.88$8.33$14.296$2.63$3.03$3.57$4.35$5.56$7.69$12.508$2.56$2.94$3.45$4.17$5.26$7.14$11.1110$2.50$2.86$3.33$4.00$5.00$6.67$10.00Percent Net Profit of Firm19Objectives of the Purchasing FunctionHelp identify the products and services that can be best obtained externally; andDevelop, evaluate, and determine the best supplier, price, and delivery for those products and services20The Purchasing FocusMaterials Management-High transportation cost-High inventory costsSupply Management-High costs-Scarcity: national or internationalSource Management-Unique items-Custom-made items-High technology itemsPurchasingManagement-Commodity items-Standard products21ReceivingDockPurchaseOrderPackingListOrderProcessingInvoiceReceivables ReportCheckAccounts ReceivableAccounts PayableMailMailReconcileMailCustomerSupplierTraditional Purchasing Process22Purchasing TechniquesDrop shipping and special packagingBlanket ordersInvoiceless purchasingElectronic ordering and funds transferElectronic data interchange (EDI)Stockless purchasingStandardizationOutsourcing23Make/Buy ConsiderationsMaintain core competencies and protect personnel from layoffLower production costUnsuitable suppliersAssure adequate supplyUtilize surplus labor and make a marginal contributionFrees management to deal with its primary businessLower acquisition costPreserve supplier commitmentObtain technical or management abilityInadequate capacity Reasons for Making Reasons for Buying24Make/Buy Considerations - ContinuedObtain desired quantityRemove supplier collusionObtain a unique item that would entail a prohibitive commitment from the supplierProtect proprietary design or qualityIncrease or maintain size of companyReduce inventory costsEnsure flexibility and alternate source of supplyInadequate managerial or technical resourcesReciprocityItem is protected by patent or trade secret Reasons for Making Reasons for Buying25Plans to help achieve company missionAffect long-term competitive positionStrategic optionsMany suppliersFew suppliersKeiretsu networkVertical integrationVirtual companyPlan© 1995 Corel Corp.Supply-Chain Strategies26Supply-Chain StrategiesNegotiate with many suppliers; play one supplier against anotherDevelop long-term “partnering” arrangements with a few suppliers who will work with you to satisfy the end customerVertically integrate; buy the actual supplierKeiretsu - have your suppliers become part of a company coalitionCreate a virtual company that uses suppliers on an as-needed basis.27Many sources per itemAdversarial relationshipShort-termLittle opennessNegotiated, sporadic PO’sHigh pricesInfrequent, large lotsDelivery to receiving dock© 1995 Corel Corp.Many Suppliers Strategy281 or few sources per itemPartnership (JIT)Long-term, stableOn-site audits & visitsExclusive contractsLow prices (large orders)Frequent, small lotsDelivery to point of use© 1995 Corel Corp.Few Suppliers Strategy29Daimler Chrysler’s Supplier Cost Reduction EffortSupplierSuggestionModelSavingsRockwellUse passenger car doorlocks on trucksDodgetrucks$280,000RockwellSimplify design/substitutematerials on manualwindow systemVarious$300,0003MChange tooling for wood-grain panels to allow threefrom one die instead of twoCaravan,Voyager$1,500,000TricoChange wiper-bladeformulationVarious$140,000Leslie MetalArtsExterior lighting suggestionsVarious$1,500,00030Tactics for Close Supplier RelationshipsTacticReduce total number of suppliersCertify suppliersAsk for JIT delivery from key suppliersInvolve key suppliers in new product designDevelop software linkages to suppliersResultsAverage 20% reduction in 5 yearsAlmost 40% of all companies surveyed were themselves currently certifiedAbout 60% ask for thisAbout 54% do thisAlmost 80% claim to do this About 50% claim this31Raw Material(Suppliers)BackwardIntegrationCurrentTransformationForwardIntegrationFinished Goods(Customers)Ability to produce goods previously purchasedSetup operationsBuy supplierMake-buy issueMajor financial commitmentHard to do all things wellVertical Integration Strategy32Forms of Vertical IntegrationIron OreSteelAutomobilesDistributionSystemDealersSiliconIntegratedCircuitsCircuit BoardsComputersWatchesCalculatorsFarmingFlour MillingRaw Material(Suppliers)BackwardIntegrationCurrentTransformationForwardIntegrationFinished Goods(Customers)Baked Goods33Vertical Integration Can be Forward or BackwardVertical IntegrationExamples of Vertical IntegrationRaw material (suppliers)Iron oreSiliconFarmingBackward IntegrationSteelCurrent TransformationAutomobilesIntegrated CircuitsFlour MillingForward IntegrationDistribution SystemCircuit boardsFinished goods (customers)DealersComputers, watches, calculatorsBaked Goods34Japanese word for ‘affiliated chain’System of mutual alliances and cross-ownershipCompany stock is held by allied firmsLowers need for short-term profitsLinks manufacturers, suppliers, distributors, & lenders‘Partnerships’ extend across entire supply chainKeiretsu Network Strategy35Virtual CompaniesCompanies that rely on a variety of supplier relationships to provide services on demand.Also known as hollow corporations, or network corporations36© 1995 Corel Corp.Virtual Company StrategyNetwork of independent companiesLinked by technologyPC’s, faxes, Internet etc.Each contributes core competenciesTypically provide servicesPayroll, editing, designingMay be long or short-termUsually, only until opportunity is met37Managing the Supply-ChainOptions:Postponement Channel assemblyDrop shippingBlanket orders Invoiceless purchasing Electronic ordering and funds transferStockless purchasingStandardizationInternet purchasing (e-procurement)38Managing the Supply-Chain - Other OptionsEstablishing lines of credit for suppliersReducing bank “float”Coordinating production and shipping schedules with suppliers and distributorsSharing market researchMaking optimal use of warehouse space39Successful Supply-Chain Management Requires:A mutual agreement on goalsTrustCompatible organizational cultures40Issues in an Integrated Supply-ChainLocal optimizationIncentivesLarge lots41Opportunities in an Integrated Supply-ChainGeneration of accurate “pull” dataReduction of lot sizeSingle stage control of replenishment42Vendor Managed Inventory (VMI)Postponement – keeps product generic as long as possibleChannel Assembly – sends to distributor individual components and modules rather than finished goodsDrop Shipping and Special Packaging – supplier will ship to end consumer rather than to sellerBlanket Orders – a long-term purchase commitment to a supplier for items that are to be delivered against short-term releases to shipStandardization – reducing the number of variations in materials and componentsElectronic Ordering and Funds Transfer – “paperless” ordering and 100% material acceptance, payment by “wire”43Vendor evaluationIdentifying & selecting potential vendorsVendor developmentIntegrating buyer & supplierExample: Electronic data exchangeNegotiationsResults in contractSpecifies period of agreement, price, delivery terms etc.Vendor Selection Steps44CompanyFinancial stabilityManagementLocationProductQualityPriceServiceDelivery on timeCondition on arrivalTechnical supportTrainingSupplier Selection Criteria45Vendor Selection Rating Form46Negotiation StrategiesThree types:cost-based price model - supplier opens its books to purchaser; price based upon fixed cost plus escalation clause for materials and labormarket-based price model - published price or indexcompetitive bidding - potential suppliers bid for contract47Logistics ManagementIntegrates all materials functionsPurchasingInventory managementProduction controlInbound trafficWarehousing and storesIncoming quality controlObjective: Efficient, low cost operations48Goods Movement OptionsTruckingRailwaysAirfreightWaterwaysPipelines49Supply-Chain Performance ComparedTypical FirmsBenchmark FirmsAdministrative costs as percent of purchases3.3%0.8%Lead time (weeks)158Time spent in placing order42 minutes15 minutesPercentage of late deliveries33%2%Percentage of rejected material1.5%.0001%Number of shortages per year400450