...Process Designs and Supply Chains Jennifer M. Conlin OPS/571 September 17, 2015 Arun Iyengar Process Designs and Supply Chains Businesses large and small utilize different process designs and supply chains to keep their company competitive, reduce cost and increase profits. The focus of this paper will be to identify Empire Today’s supply chain and analyze one of their internal processes. The author will also identify an appropriate design approach to internal process and create a flow chart. Finally, the author will identify a metric that the company uses to measure its process and incorporate Gap Analysis as a way for Empire to collect data in each step of the process. Company Background The company Empire Today, also known as Empire Carpets, is a nationally recognized for installing floors and windows treatments, began as a small family-owned business based out of Chicago in 1959. As a service-based business, Empire Today relies on their strong relationships with their suppliers to deliver and install high-quality goods to their customers. The company is currently experiencing issues with meeting contractual deadlines. Delays in the ordering and shipment of goods from their suppliers are causing installation delays with some of their customers. When the company receives the wrong product, they have to send it back which causes them to lose time, money and customer loyalty. Supply Chain An established supply chain outlines the critical steps that need to be...
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...Process Design for Riordan Manufacturing The Riordan Manufacturing plant in Hangzhou, China operates its manufacturing unit to prepare the electric fan to provide the worldwide supply based on the production forecast sales extrapolated using the theory of moving averages for last three years. This paper includes an analysis of the material requirement planning, existing process design, application of supply-chain concepts including any available global opportunities. Additionally, this paper will include a production forecast and as well as an implementation plan for lean production and a just-in-time system to optimize the profit at Riordan and improve customer satisfaction with timely delivery of orders with appropriate inventory management system. Material Requirement Planning The material requirement planning of Riordan manufacturing is designed to supply the required material for creating the parts of electric fan in order to produce the components at each phase of assembly line production. The receiving department collects the raw material, which is processed in the molding department to make it suitable for generating parts of the fan after being polished and trimmed in the trimming department. These parts are further processed in the assembly department to make larger components such as fan blades or fan housings. The packaging departments puts each parts of the fan in right package with adequate labeling so that it can be delivered to distribution center...
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...1 Introduction A supply chain may be defined as an integrated process wherein a number of various business entities (i.e., suppliers, manufacturers, distributors, and retailers) work together in an effort to: (1) acquire raw materials, (2) convert these raw materials into specified final products, and (3) deliver these final products to retailers. This chain is traditionally characterized by a forward flow of materials and a backward flow of information. For years, researchers and practitioners have primarily investigated the various processes of the supply chain individually. Recently, however, there has been increasing attention placed on the performance, design, and analysis of the supply chain as a whole. From a practical standpoint, the supply chain concept arose from a number of changes in the manufacturing environment, including the rising costs of manufacturing, the shrinking resources of manufacturing bases, shortened product life cycles, the leveling of the playing field within manufacturing, and the globalization of market economies. The current interest has sought to extend the traditional supply chain to include ìreverse logisticsî, to include product recovery for the purposes of recycling, re-manufacturing, and re-use. Within manufacturing research, the supply chain concept grew largely out of two-stage multi-echelon inventory models, and it is important to note that considerable progress has been made in the design and analysis of two-echelon systems...
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...Supply Chain Network Analysis and Design: Location Analysis PROC 5820 7 May 2014 Summary The principal thesis of this paper is to discuss location analysis and its role in supply chain network analysis and design. The emphasis of site location is of strategic importance to all organizations seeking to maximize profits and minimize costs. The logistics/supply chain network design has six major planning steps in the process of designing a comprehensive logistics/supply chain network: The first step is to define the logistics/supply chain design process. The second step is to perform a logistics/supply chain audit. The third step is to examine the logistics/supply chain network alternatives. The fourth step is to conduct a facility location analysis, followed by the fifth step, which is to make decisions regarding network and facility location. The sixth and final step is to develop an implementation plan. Location analysis is also discussed in terms of the advantages and disadvantages of globalization and major location site factors. The discussion then describes the methods for evaluating major location site factors and making location decisions based on the evaluation. The paper concludes with discussing different modeling approaches and the need for comprehensive planning. (Reid and Sanders, 2010) (Coyle, J., Langley, C., Novak, R., Gibson, B. 2013) Introduction As stated by Jeff Karrenbauer...
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... When ETO companies design the supply chain during new product development process R. Cigolini1, M. Pero1*, A. Sianesi1 1 * Department of Management, Economics and Industrial Engineering, Politecnico di Milano, ITALY Corresponding Author: E-mail: margherita.pero@polimi.it Phone: +39.02.2399.2819; Fax: .2700 Abstract This paper outlines the interface between product development process and supply chain configuration. It highlights the relevance of product features on the time the sourcing decisions are taken with respect to the product development phases. Multiple case studies in Engineer-To-Order (ETO) industries have been performed to investigate how companies configure the product development process and choose the timing of sourcing decisions along the process. Results suggest that the time companies take supply chain configuration decisions varies according to product features: high techno-logical complexity pushes companies to re-think their supply chain in the early phases of product development process, e.g. in terms of make-or-buy decisions and suppliers selection. The proposed framework helps decisions makers arrange the product development process by defining when supply chain configuration should take place. Keywords: Supply Chain, New Product Development, Engineer To Order, Supply Chain Design.. DOI: http://dx.doi.org/10.4314/ijest.v6i3.3S 1. Introduction The coordination of supply chain (SC) configuration with new product development process has become extremely...
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...Running Head: Hewlett-Packard Supply Chain 1 DeskJet Printer Inventory Ernesto Gutierrez 5850 Logistics/Case 2 Webster University Stephen Lee 27 September 2014 Hewlett-Packard Supply Chain 2 Abstract In 1998 Hewlett Packard introduce one of the first printer products to gain sales over 600,000 units in 1990. With over $400 million in sales, Hewlett Packard had gain a foot hold on this market and was growing steadily at a rapid rate. Unfortunately, inventory growth had tracked sales growth closely. Already HP’s distribution centers were having issues maintaining inventory levels and were not able to maintain satisfactory product availability. Can a new logistics design be used to control this issue, will a delayed differentiation help with the issues faced at HP, When is it the right time for suppliers to be involved with new product development process. This paper will attempt to answer these questions to better understand the operations at HP and their supply chain. Hewlett-Packard Supply Chain 3 DeskJet Printer Inventory The inventory problems in the European distribution...
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... * Inbound versus outbound * Consumer demand versus derived demand All demand is derived from consumers * Demand originates from consumers (individual wants and needs) * It propagates as derived demand along the supply chain through retailers, wholesalers, manufacturers, raw materials suppliers. * If your customers can’t sell you can’t sell! * Why care about customers’ customers, etc? 2. Quality of distribution channel * Who has bought a product from Coca Cola? * The quality of a firm’s distribution channel can significantly impact its sales performance (revenue, profits, etc.) * Sales agreements, business relationships, competitors * Geographical coverage 3. Market orientation * Gathering, analyzing and disseminating customer information * Channel members provide important information about customers, markets, trends, changes, opportunities and challenges 4. Reverse logistics * Returns, repairs, unsold merchandize, etc. * Important for customer satisfaction, major concern for customers * Improve customer satisfaction, reduce unnecessary costs 5. Supply chain evolution * Supply chains are in constant evolution * New customers, markets, suppliers * Identify, evaluate, implement opportunities * Why their suppliers’ suppliers, etc? 1. Your suppliers’ costs are your costs * Suppliers pass on their...
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...Business Report Managing Operations Tamera Fluaitt Western Governors University Business Report Supply Chain Strategy The strategy I recommend is the Few Suppliers Strategy. This strategy is based on forming long-term relationships with few suppliers and they more likely understand the end user. In using the few supplier strategy your company can create value by allowing economies of scale which can lower transaction and production cost. Long term suppliers also are more likely to understand what the acquiring firm and the end customer wants. If you can attain a few suppliers with a large commitment they may be willing to participate in the Just-in-Time (JIT) system. They also can help add to the design of the product by using their technological expertise. You may also have contracts with these suppliers that last through the products life cycle. The reason this strategy is recommended is because it can be difficult to deal with many suppliers. Your company needs to be assured that you can get the best product for the lowest price. When you are dealing with many suppliers you are using valuable time trying to get the supplies needed at the lowest price to produce your product. This can cause a lapse in production because of late raw material shipments which converts to loss of income. The few supplier strategy can eliminate the game playing. Your agreement with the supplier can help save money by negotiating the lowest price. As your relationship trust builds and...
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...TOWARDS A BETTER UNDERSTANDING OF SUPPLY CHAIN QUALITY MANAGEMENT PRACTICES Article: International Journal of Production Research • This paper reports the result of a comparative study of quality tools and methods adaptation by operations and supply chain managers. • SCQM is defined as a system based approach to performance improvement that leverages opportunities created by upstream and downstream linkages with suppliers and customers. • Operation management is traditional been explained by some version of an ‘inputs-transformation process- outputs’ view of the productive capability of the firms. From Quality perspective, operation managers have focused on internal activities such as process control process improvement, product design improvement and design of experiment. As a result, more and more six-sigma improvement project evolved. • In addition experts like Deming have long emphasized importance of customers and supplier. • In this paper, it explored the difference between quality management practice of operation managers and each type of managers emphasizes supply chain managers, including what quality tools. Tool can here mean the method such as benchmarking, an approach to improving quality such as process improvement team (PIT) and leadership. Literature review and hypothesis development • Supply chain management has developed as a field from the integration of operations and marketing management. As a result, a linkage with upstream firms – which...
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...Supplier chain strategies are one of the most important aspects of supply chain management. The key to success of an organization is the supply chain strategy. The supply chain makes up 55-85% to total costs for a business, so it is understandable why so many people are searching for newer and better strategies. (Bruce O. Bartschenfeld) A Keiretsu Network: Keiretsu network is a network composed of manufactures, supply chain partners, distributors and financiers who remain financially independent but work closely together to ensure each other’s success. The formation of a keiretsu allows a manufacturer to establish stable, long-term partnerships, which in turn helps them to stay lean and focus on core business requirements. (Whatis.com) Virtual Company: Virtual companies rely on a variety of supplier relationship to provide services on demand. In this strategy, a company forms a network with other companies. All companies are dependent upon one another. Each member of the network performs essential functions to the project. (Bruce O. Bartchenfeld) Vertical Integration: A vertical integration refers to a firm’s ownership of vertically related activities. The greater a firm’s ownership extends over successive states of the value chain for its product, the greater its degree of vertical integration. The extent of vertical integration is indicated by the ratio of a firm’s value added to its sales revenue: the more a firm makes rather than buys, the lower are its bought-in...
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...Supply chain Management six sigma at RMG Prepared by Mohammad Mesbah Uddin, ID-2013-3-5-019, MBA@BUTEX 1 Mohammad Mesbah Uddin, 27-12-2014 ID-2013-3-5-019, MBA@BUTEX TABLE OF CONTENTS S.I PAGE 0 ABSTRACT 3 1 INTRODUCTION 4 2 SIX SIGMA APPROACH TO DESIGN 5 3 ANANLYSIS OF SUPPLY CHAIN DELIVERY PERFRMANCE 6-7 4 DESIGN OF SIX SIGMA SUPPLY CHAIN 8 5 OUTLINE OF THE PACKAGE 9-10 6 SMMARY AND FUTURE WORK 11 7 2 NAME OF ARTICLE REFERENCES 12 Mohammad Mesbah Uddin, ID-2013-3-5-019, MBA@BUTEX ABSTRACT The ready-made garment (RMG) industry has recently occupied the largest part of exports and foreign currency in Bangladesh and has been for more than a decade the second largest contributor to gross domestic product (GDP). Millions of poor women and men are employed in this industry. However, a supporting import quota system in the USA was stopped in 2005 which has left the RMG sector struggling against new challenges that need to be properly addressed. As the end consumers of the apparel fashion market are becoming increasingly time-sensitive, a decrease in lead time, besides quality and cost criteria, is needed to win more orders from buyers. We have examined the opportunity that lies in an integrated supply chain six sigma to provide a competitive advantage to the Bangladesh RMG sector. A system dynamics approach has been used to identify the dominant variables of supply chain performance (such as enablers, performance or results, and inhibitors) in the...
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...Study for Supply Chain Leaders: Dell's Transformative Journey Through Supply Chain Segmentation Matthew Davis Faced with ever-changing customer needs, product commoditization, unique global requirements and new, low-cost competitors, Dell embarked on a three-year journey to segment its supply chain response capabilities. The company designed its supply chains based on a mix of cost optimization, delivery speed and product choices that customers value, while aligning internally across all functions to execute against this vision. Key Findings Dell's market and business strategies changed, requiring the company to move from a single supply chain to a customer segmentation supply chain approach. A unified, cross-functional business strategy with collaborative, decision-making processes across sales, marketing, product design, finance and supply chain is essential for segmentation. Segmentation is enabled by a cost-to-serve (CTS) methodology to dynamically allocate costs to business decisions, highlight net profitability and drive the right actions for each supply chain. Supply chain segmentation is a multiyear journey enabled by the development and alignment of organizational skills to the needs of the journey's different phases. Recommendations Start with segmentation of your company's customers and channels to understand the different demand rhythms and cycles. Focus on decreasing the time required to sense or shape changes to end-customer demand. Begin the design of your...
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...important requirement for many businesses. Provisioning of mass customisation, however, has its pitfalls. Forecasting gets complex, overhead for product support increases, inventory control becomes more difficult, manufacturing complexity upsurges, and after-sales support gets more challenging. Mass customization is a manufacturing process that combines the flexibility of customised product variety, along with the low cost leadership of economies of scale. 2. BACKGROUND OF STUDY To the problems thrown by mass customisation, many solutions exist. One solution that pioneering firms have utilised is the influence of product and process designing. This is rendered possible by incorporating design in their supply chain operations, to seek control over product variety expansion. Design has always been viewed as a central driver of manufacturing costs. As high as eighty percent of the manufacturing cost is decided by the design, or the process through which the product is to be developed. Therefore, design can be leveraged to solve the problem of mass customization (Martin M., W. Hausman, K. Ishii, 1998). By cautiously designing the manufacturing and supply chain processes and the product structure, firms can postpone the point in which the finishing nature of the merchandise is to be determined, thereby increasing the flexibility to tackle varying demands for the multiple products. This...
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...important requirement for many businesses. Provisioning of mass customisation, however, has its pitfalls. Forecasting gets complex, overhead for product support increases, inventory control becomes more difficult, manufacturing complexity upsurges, and after-sales support gets more challenging. Mass customization is a manufacturing process that combines the flexibility of customised product variety, along with the low cost leadership of economies of scale. 2. BACKGROUND OF STUDY To the problems thrown by mass customisation, many solutions exist. One solution that pioneering firms have utilised is the influence of product and process designing. This is rendered possible by incorporating design in their supply chain operations, to seek control over product variety expansion. Design has always been viewed as a central driver of manufacturing costs. As high as eighty percent of the manufacturing cost is decided by the design, or the process through which the product is to be developed. Therefore, design can be leveraged to solve the problem of mass customization (Martin M., W. Hausman, K. Ishii, 1998). By cautiously designing the manufacturing and supply chain processes and the product structure, firms can postpone the point in which the finishing nature of the merchandise is to be determined, thereby increasing the flexibility to tackle varying demands for the multiple products. This methodology is termed as...
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...Defining value chain architectures: Linking strategic value creation to operational supply chain design Matthias Holweg a, Petri Helo b,n a b Judge Business School, University of Cambridge, UK Department of Production, Faculty of Technology, University of Vaasa, Finland art ic l e i nf o Article history: Received 31 May 2012 Accepted 13 June 2013 Available online 28 June 2013 Keywords: Value chain Supply chain management Operations strategy a b s t r a c t Over the past three decades scholars have developed comprehensive insights into the operational and strategic aspect of designing and managing the supply chain. Reviewing this ample body of knowledge however one cannot help but notice a persistent disunion between the “value chain” view that considers aspects of value creation and appropriation, and the operational “supply chain” view that considers strategies and tools for designing and operating efficient inter-firm networks. Commonly these views do not interact: value creation has the aim of capturing the maximum value-added in financial terms, the supply chain view aims for designing operationally efficient supply chains. In contrast to their treatise within the academic literature, from a practical point of view these two aspects are both necessary (and thus in their own right insufficient) components to a firm's supply chain strategy. In this paper we thus turn to an exploratory case study to identify what such a combined view of the value and supply chain would entail...
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