lscm-1-2015 #2 introduction to lscm

1

I t d tiIntroductiontoto

Logistics and Supply Chain Management

Class #2Vithaya Suharitdamrong, Ph.D.

1‐201515 Aug 2015g

2Logistics and Supply Chain of “Value”Plan

Information Flow

Improve

Think in terms of End to End (E2E) in order to create Value

Management

Execute ControlWhat values are logistics and supply chain for?

We have to think as the whole of the value. Thinking in terms of process creating the valuent

Think(Pl i )

Think(Pl i )

Think(Pl i )

Think(Pl i )

Think(Pl i )n

Mana

gem

e

cutio

n

orm

ance

(Planning)

End Endcutio

n

orm

ance

(Planning)

cutio

n

orm

ance

(Planning)

cutio

n

orm

ance

(Planning)

cutio

n

orm

ance

(Planning)

Supp

ly Ch

ain

Move

exe

perf

oEnd End

ValueMove

exe

perf

o

Moveex

e

perf

o

Move

exe

perf

o

Move

exe

perf

o

ogist

ics an

d S

Do(Execute)

Input Output•Good•Fast•Cheap

•Better•Faster•Cheaper

Do(Execute)

Do(Execute)

Do(Execute)

Do(Execute)

ork,

this

is Lo

Flow of Values(Logistics)

Supply Chain Processes are functions in creating values according to the requirement of each value

p p

The target is the end point, not just finishing any functions of logistics process. It depends on the values at the end point of logistics and supply th

is fra

mew

o

Management

requirement of each value. values at the end point of logistics and supply chain management.

Have to win the game of competition, not just scoring points. Must complete the process, not just steps.

In t

My Lecture#215 Aug 2015

3Value Chain and Supply Chain

l h i f ( k )Value Creation Process of a glass

Value Chain = Process of (Make + Move)

S d Mi S d T k Gl F t l k Glass Shops

Value Chain of a glass

Values of Sand Mines Sand Trucks Glass Factory Glass Trucks Glass Shops

(Make) (Move) (Move)(Make) (Move & Store)

Values of

a glass

V l C f l k ll b i l l

Execution of value creating

process

Sand MineComp. A

Sand TrucksComp.B

Glass FactoryComp.C

Glass TrucksComp.D

Glass ShopsComp.E

Glass Supply Chain No.1

GlassNo.1

Value Creators of glass work collaboratively to create a glass.Better

Faster

ly ch

ains

p pCheaper

Better

Fasteretwe

en su

ppl

Sand MineComp. P

Sand TrucksComp.Q

Glass FactoryComp.R

Glass TrucksComp.S

Glass ShopsComp.T


GlassNo.2

Cheaper

Better

Fastermpe

titio

ns b

e

Sand MineComp. K

Sand TrucksComp.L

Glass FactoryComp.M

Glass TrucksComp.N

Glass ShopsComp.O


GlassNo.3

CheaperCom

Supply Chain = Process Owners of [ Make (Manufacturing) + Move(Logistics) ] My Lecture#215 Aug 2015

4Supply Chain and Value ChainValue Chain Thinking Process Design (Blueprint)

Improvementor Re-design

Determine processes or activities in value creationValue Chain

Value Chain

Changed Customer

Requirements

Think Design Analyze values until complete what customers want but it cannot be used It is just a design f th

We need to take the design of Value Chain to value creators in supply chains to use resources to create values according to design of value chain

Value Chain

OrdersSupply Chain Plan (Collaboration)

I f i Fl (C i i )

Supply Chain Thinking Process Execution

of the processes. according to design of value chain.

l f l ( )

Information Flow(Communication)

BetterSuppliers Flow of Values (Logistics) : Connection Faster

Cheaper

A Supply Chain is a network of value creators who execute the process

Suppliers

Internal Supply Chain (Source to Delivery)

A Supply Chain is a network of value creators who execute the process according to value chain in order to respond to customer requirements

Product (External) Supply Chain (upstream to downstream) My Lecture#215 Aug 2015

5Reductionism and Holism

OrgansHuman

Integrated

BicycleParts

Integrated

Organizations

Departments

Integrated


6CSSMP’s Definition of Logistics

Logistics Management – Boundaries and Relationships Logistics management activities typically include inbound and outbound transportation management, fleet management, warehousing, materials handling,transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory management, supply/demand planning, and management of third party logistics services providers. To varying degrees the logistics function also includes sourcing and procurement productiondegrees, the logistics function also includes sourcing and procurement, production planning and scheduling, packaging and assembly, and customer service. It is involved in all levels of planning and execution‐‐strategic, operational and tactical. L i ti t i i t ti f ti hi h di t d ti iLogistics management is an integrating function, which coordinates and optimizes all logistics activities, as well as integrates logistics activities with other functions including marketing, sales manufacturing, finance, and information technology

This definition considers logistics as a singular which means “unity”

So, I understand that logistics cannot have many meanings such as transportation, distribution, locations etc. On the other hand, those activities can be related to logistics.


7Logistics as an integrating function

Values from each musical instrumentsValues from each muscial instruments

Values from each musical instruments

Values from each musical instruments

Logistics Management = An integrating Function

Supply Chain Management is an act of Logistics Management is to manage or to orchestrate) all musical Supply Chain Management is an act of

planning together. Which songs, Which notesor to orchestrate) all musical instruments to play in harmonize.


8The Power of Two become One

Supply ChainDesign Chain and Value Chain

Value Designer

Value Creator and Deliverer

Thi k D i d D l

Source, Build and Distribute and SellValue Designer

Think, Design and Develop


9What is a model?

A picture is a model of the real world and it is not real.p

The reality of the worldPeople create a model by building a mockup (painting) from the reality and they will y yuse the model in communication their thoughts and experimenting their and experimenting their thoughts without real implementation. A model is used for a test of decision used for a test of decision making.

This painting is a model for communicating and making decisions


10Logistics Model Activities of planning together by using information flow in order to create logistics activities

Logistics Planning Customer Demand

Deci

sion

M

odel

Activities using information

Collaboration

Plan

ion

ance

Plan

on nce

Plan

on nce

atio

n

elD information

flow to support activities of logistics and planning.

CommunicationVolume

Availability VolumeAvailability

Exec

uti

Perf

orm

a

Exec

utio

Perf

orm

an

Exec

utio

Perf

orm

a

BetterF tLe

vel

Info

rma

Mod

l

Communication

Capacity

QualityAvailability

Capacity

QualityAvailability

Capacity

QualityAvailability

Distance

TimeQuality

ModeDistance

TimeQuality

ModeFasterCheaper

Serv

ice

L

Ope

ratio

nal

Mod

el

Connection

Cost

Q yTime

Cost

Q yTime

Cost

Q yTime

TimeCost

TimeCost

Factory Model

Transportation Model

Warehouse Model

Transportation Model

Retail Model

Logistics Model

กิจกรรม Logistics ที่

เราเห็นและไดส้ัมผัสModel เราเหนและไดสมผส

A logistics model normally consists of three sub‐model, Decision Model (Collaboration), Information Model(Communication) and Operational Model (Connection). The models must be linked to customer demand Logistics Model is foc sing on the linkages from decision model to information model and todemand. Logistics Model is focusing on the linkages from decision model to information model and to operational model in each functions of logistical processes until customers get products and services.


11Logistics Model for International Trades

International International

Exporter’s logistics Model

International InternationalDomestic

MfgW/HTransportPort

ServiceInternational

Transport Custom W/HTransport Port

ServiceCustom International

Transport

gist

ics

ices

Mfg

Log

Serv

i

Logistics Service Providers

LSP’s Logistics Model My Lecture#215 Aug 2015

12Logistics Model for Exporter

International International

Exporter’s logistics Model

International InternationalDomestic

Logistics Process

MfgW/HTransportPort




Transport

•Customer location

•Order size and frequency

•Transport costs

•Service level requirements

•Factory and supplier locations

•Ports of entry for imported products

A logistics model is built to represent the details of work and resources in execution logistical Transport costs

•Transport vehicle types

•Transport modes

•Warehouse (Distribution Centre) size

•Ports of entry for imported products

•and many more key variablesresources in execution logistical process from factory to customer’s hands. The elements of decisions

i th f ll i Elements of ModelWarehouse (Distribution Centre) size,

location, resources, costs…are in the followings. Elements of Model


13Logistics Model for LSPsI t ti l I t ti lInternational International

Domestic

Logistics Process (outsourced)

s

MfgW/HTransportPort




Transport

•Customer location •S i l l i t ort

es e for

LSP

s

•Customer location

•Order size and frequency

•Transport costs

•Transport vehicle types

•Service level requirements

•Factory and supplier locations

•Ports of entry for imported

products i i S i P id

Tran

spo

Serv

ice

Port

Se

rvic

e

Mod

el f

Transport vehicle types

•Transport modes

•Warehouse (Distribution Centre) size,

• location, resources, costs…

products

•and many more key variablesLogistics Service Providers

rs ogist

ics

Elements of a model, ,Su

pplie

r LoElements of a model

A logistics model is built to represent the details of works and resources in execution logistical process of LSPs from factory S


(LSP’s customers) to customer’s hands (LSP’s customers) . The elements of decisions are in the followings.

14Logistics Engineering vs Logistics Management

Management is the one who operate the system by handling the customer orders and supplying the products and services by delivering them to customers

e

Supply Chain Planning

ng

m

orders

LogisticsPerspe

ctive

Logistics (Planning)

Plan Planf

Plan Plan Plan

Manufacturing (Planning)

Plan

nin

System

Point

omers

xSystem

s P Procurement Manufacturing Warehouse Transport Retail

ution

tem

End Cu

sto

make make move Retail Shops

x

End

End move R/M Supplier Manufacturing

PlantsTransportservices

Warehouseservices

move

XExecu

Syst

Engineering designs and builds a system (Planning and Executing) and its elements, logistics and manufacturing, to be operated as a supply chain and logistics system of a company but they are not the ones who operate the system. They improve and redesign the system to handle changes. My Lecture#2

15 Aug 2015

15The evolution of a supply chain from unaligned to alignedpe

ting in th

e ufacturin

g etho

ds of C

omvice and

Manu

andall New

Me

ctors from Serv

all, William Cra

cal Success Fac

2008

hard E. C

rand

aketplace‐C

ritic

Managem

ent)

Source : Ric

Global M

ark

(Resou

rce M

My L

ectu

re#2

15 A

ug 20

15

16Process ManagementPlan Re‐Plan : Process Improvement or

Master Planning

Pl Pl Pl Pl Pl

Plan Redesign ProcessIT for Collaborative Planning

Products& Services

rsmove make movemove move

PlanProcurement

PlanManufacturing

PlanWarehouse

PlanTransport

PlanRetail

emen

t

ject

IT for Operational Planning

Custom

ermove make move Retail x

End End

move Procurement Manufacturing TransportWarehouse

move

Man

age

X

S l vemen

t Proj

IT for execution

Process Execution (Manufacturing &Logistics Activities)

rocess M

ExecutionSupply

=Demand ?

ocess Im

pro

IT for Performance Measurement

Process Measurement (Control)

Process Improvement

Pr Control Pro

Performance Benchmark and Analysis

Company (internal) Process

Process ImprovementImprove

(Re) Plan

Execution Control

ImproveManagement Process Management


17Logistics, Logistical and Logistically

JITLogistics Planning

Logistics (Status)

Logistics Management as an Integrating FunctionLogistics (adj) : ลอจิสติกส์

is the state of supply perfectly meet Demand at the end of Supply = Demand

Make MakeMakeMake

Move MoveMove

Store Store

Products& Services

Process Metrics

is the state of supply perfectly meet Demand at the end of process, so customers (users) can get the values that they demand. Logistics Management is the single function to integrate activities of moving and storing values in the whole process in order to achieve the objectives of the process Make MakeMakeMake

End to End Process

Process Metrics•Good•Fast

•CheapLogistics Activities (Integrated Functions)

Logistically (adv) : อย่างลอจิสติกส์is characteristics of how the process is executed or how the actions

order to achieve the objectives of the process.

JIT

Logistics (status)

is characteristics of how the process is executed or how the actions of work steps in the process are operated. Please note that logistics is how supply meet demand or how customers would receive the products or services. Moreover, to act or to operate is concerned about how the single plan is collaboratively created and

Think and plan logistically and link together to create logistics

Logistical Planning

Supply = Demand

Make MakeMakeMake

Move MoveMove

Store Store

Products& Services

Process Metrics

concerned about how the single plan is collaboratively created and sharing information for a seamless connectivity of value flow in the process.

Logistical (adj) : เชิงลอจสิติกส์ Make MakeMakeMake Process Metrics•Good•Fast

•CheapLogistical ActivitiesLogistics Activities with linkage and seamless attributes to create logistics

Logistical (adj) : เชงลอจสตกส

Execute or Flow Logisticallyis attributes of process elements that support the linkages of the perfect fit between supply and demand and delivering values from one step to another step seamlessly Moreover there are information

End to End Process


step to another step seamlessly. Moreover there are information sharing between steps in the process in order to achieve the objective of the process, the logistics at the end of process.

18Logistics, Logistical, Logistically of Company Supply Chain

If you see planning and

collaboration or sharing risks

and rewards with common If you see the Optimal

(Supply meet Demand) or

Logistics (Planning)Manufacturing (Planning)

Supply Chain Planningand rewards with common

goals, this is Logistically(Supply meet Demand) or

the fitness, just in time, this

is Logistics

LogisticsPointiv

eg ( g)

PlanProcurement

PlanManufacturing

PlanWarehouse

PlanTransport

PlanRetail

g ( g)

Point

ustomersmove make move

Retail xE d d


move

X X X X Xrspe

cti

CuEnd End X X X X XLP.P LP.M LP.RLP.TLP.W LP.E2E

Logistics ofProcurement

Logistics of Manufacturing

Logistics of Warehouse

Logistics of Transport

Logistics of RetailI I I I I I

Supply = Demand? Supply = Demand? Supply = Demand? Supply = Demand? Supply = Demand?ms P

er

Logistics of E2E (End to End)

Sup‐process Sup‐process Sup‐process Sup‐process Sup‐process

Supply emand? Supply emand? Supply emand? Supply emand? Supply emand?

Supply = Demand?System

Company (internal) Supply Chain LP.P = Logistics point of ProcurementLP.M = = Logistics point of Manufacturing

Process (End to End : E2E)

og s cs po o a u ac u gLP.W = = Logistics point of WarehouseLP.T= = Logistics point of TransportLP.R= Logistics point of RetailLP.E2E=Logistics point of E2E (End to End)

If you see the status in the process (E2E) optimal (Supply meet

Demand) or fitted, so the process (E2E) is Logistical. My Lecture#215 Aug 2015

19

Transport Logistics

Transport and Logistics

Look at End to End (E2E) logistically or viewing integration of End to End Process by Transport Logistics

Logistics (Planning)LogisticsM i

( ) g y g g yfocusing on transport as collaborative plan of E2E in order to respond customer needs

LogisticsPoint

Customersmove make move move

Transport x

Main

Modifier

Logistics (Execution) (L i i A i i i )

Customers

Supply =Demand

Transport xEnd End

The objective is to manage E2E which determine a

transport plan to respond Logistics of E2E

Logistics Transport

(Logistics Activities)

Look at execution process of transport logistically or being integrated by logistically sharing transport information to collaborative plan in order to respond to customers needs

Logistics (Planning) LogisticsPoint

Main

transport information to collaborative plan in order to respond to customers needs

Customersmove make move move

Transport x

Modifier

End EndThe objective is to manage transport

Logistics (Execution) (Logistics Activities)

Supply =Demand End End execution according to

logistics plan of E2E


20

Warehouse Logistics

Warehouse and Logistics

Look at End to End (E2E) logistically or viewing integration of End to End Process by Warehouse Logistics

Logistics (Planning) LogisticsMain

( ) g y g g yfocusing on warehouse as collaborative plan of E2E in order to respond customer needs

og st cs ( a g) LogisticsPoint

Customersmove make Storage

(move ) move

Warehouse x

Modifier

The objective is to manage Customers

Supply =Demand

Warehouse xEnd End


warehouse plan to respond Logistics of E2E


Logistics Warehouse Look at execution process of Warehouse logistically or being integrated by logistically sharing warehouse information to collaborative plan in order to respond to customers needs

Supply Chain


sharing warehouse information to collaborative plan in order to respond to customers needs

MainModifier Storage

Customersmove make move

Warehouse

Supply Demand

xEnd End

g(move )

The objective is to manage warehouse

execution according to Logistics (Execution) Supply =Demand glogistics plan of E2E


Supply Chain My Lecture#215 Aug 2015

21

Procurement Logistics

Procurement and Logistics

Look at End to End (E2E) logistically or viewing integration of End to End Process by Procurement Logistics

Logistics (Planning)Logistics

Look at End to End (E2E) logistically or viewing integration of End to End Process by focusing on procurement as collaborative plan of E2E in order to respond customer needs

Main LogisticsPoint


(move )move

Procurement x

Modifier


Supply =Demand

Procurement xEnd End



procurement plan to respond Logistics of E2E

Logistics ProcurementSupply Chain

Look at execution process of procurement logistically or being integrated by logistically sharing procurement information to collaborative plan in order to respond to customers


sharing procurement information to collaborative plan in order to respond to customers needs

MainModifier


Supply Demand

xEnd End

Storage(move )

Logistics (Execution)

ProcurementThe objective is to manage procurement

execution according to Supply =Demand Logistics (Execution) (Logistics Activities)

Supply Chain

glogistics plan of E2E


22

Manufacturing Logistics

Manufacturing and Logistics

Look at End to End (E2E) logistically or viewing integration of End to End Process by Manufacturing Logistics

Logistics (Planning)LogisticsMain

Look at End to End (E2E) logistically or viewing integration of End to End Process by focusing on manufacturing as collaborative plan of E2E in order to respond customer needs

LogisticsPoint


(move )move

Manufacturing x

Modifier


Supply =Demand

Manufacturing xEnd End


The objective is to manage E2E which determine a Manufacturing plan to

respond Logistics of E2E

Logistics ManufacturingCompany (internal) Supply Chain

Look at execution process of Manufacturing logistically or being integrated by logistically sharing manufacturing information to collaborative plan in order to respond to customers


MainModifier

sharing manufacturing information to collaborative plan in order to respond to customers needs


Supply Demand

xEnd End

Storage(move )

Logistics (Execution)

ManufacturingThe objective is to manage manufacturing execution according to Supply =Demand Logistics (Execution)


Company (internal) Supply Chain



23

Distribution Logistics

Distribution and Logistics

Look at End to End (E2E) logistically or viewing integration of End to End Process by Distribution Logistics


Look at End to End (E2E) logistically or viewing integration of End to End Process by focusing on distribution as collaborative plan of E2E in order to respond customer needs

LogisticsPoint


Distribution xmove

Modifier


Supply =Demand

Distribution xEnd End



distribution plan to respond Logistics of E2E

Logistics DistributionCompany (internal) Supply Chain

Look at execution process of procurement logistically or being integrated by logistically sharing distribution information to collaborative plan in order to respond to customers needs


MainModifier

sharing distribution information to collaborative plan in order to respond to customers needs


Supply Demand

xEnd End Logistics (Execution)

move DistributionThe objective is to

manage distribution execution according to Supply =Demand Logistics (Execution)





24

Retail Logistics

Retail and Logistics

Look at End to End (E2E) logistically or viewing integration of End to End Process by Retail Logistics


Look at End to End (E2E) logistically or viewing integration of End to End Process by focusing on retail as collaborative plan of E2E in order to respond customer needs

LogisticsPoint


Retail xmove

Modifier


Supply =Demand

Retail xEnd End


The objective is to manage E2E which determine a retail plan to respond

Logistics of E2E

Logistics RetailCompany (internal) Supply Chain

Look at execution process of procurement logistically or being integrated by logistically sharing retail information to collaborative plan in order to respond to customers needs


MainModifier

sharing retail information to collaborative plan in order to respond to customers needs


Supply Demand

xEnd End Logistics (Execution)

move RetailThe objective is to

manage retail execution according to logistics Supply =Demand Logistics (Execution)



g gplan of E2E


25Logistics and Logistics Management

Plan Re‐Plan : Process Improvement or


Pl Pl Pl Pl Pl

Plan Redesign ProcessIT for Collaborative Planning

LogisticsPoint

smove make movemove move

PlanProcurement

PlanManufacturing

PlanWarehouse

PlanTransport

PlanRetail

gemen

t

men

t

IT for Operational Planning

Custom

ersmove make move

Retail xEnd End


move

Man

ag

X X X X XLP.P LP.M LP.RLP.TLP.W

S l ct Im

provem

IT for execution

LP.E2E


ogistics Execution

Supply=

Demand ?

gistics Projec

IT for Performance Measurement

Logistics Measurement (Control)

Logistics Improvement

Lo Control Log

Performance Benchmark and Analysis


Logistics ImprovementImprove

LP.P = Logistics point of ProcurementLP.M = = Logistics point of ManufacturingLP.W = = Logistics point of WarehouseLP.T= = Logistics point of TransportLP.R= Logistics point of RetailLP.E2E=Logistics point of E2E (End to End)

(Re) Plan

Execution Control

ImproveLogisticsManagement

Process Logistics My Lecture#2

15 Aug 2015

26Holistic View of Logistics


Pl Pl Pl Pl Pl

LogisticsPoint

smove make movemove moveective Plan

ProcurementPlan

ManufacturingPlan

WarehousePlan

TransportPlanRetail

Custom

ersmove make move

Retail xEnd End


move

X X X X XLP.P LP.M LP.RLP.TLP.W LP.E2EPe

rspe





Logistics of Retail


I I I I I ISupply = Demand? Supply = Demand? Supply = Demand? Supply = Demand? Supply = Demand?

stem

s

Sup‐process Sup‐process Sup‐process Sup‐process Sup‐process


Supply = Demand?Sys

Company (internal) Supply Chain LP.P = Logistics point of ProcurementLP.M = = Logistics point of ManufacturingLP.W = = Logistics point of Warehouse The result at the end of process is created from integration of LP.T= = Logistics point of TransportLP.R= Logistics point of RetailLP.E2E=Logistics point of E2E (End to End)

p gprocess elements or its systemic structure of sup processes

which the whole is more than sum of its partsMy Lecture#215 Aug 2015

27Holistic View of Product Supply Chain

S l Ch i l i



LogisticsPoint

ctive

PlanProcurement

PlanManufacturing

PlanWarehouse

PlanTransport

PlanRetail

Custom

ersmake make move

Retail Shops x

End End

move R/M Supplier Manufacturing

PlantsTransportservices

Warehouseservices

move

X X X X XLPC1 LPC2 LPC5LPC4LPC3 LP.E2Eer

spec

Company 1 Company 2 Company 3 Company 4 Company 5

End LP.C1 LP.C2 LP.C5LP.C4LP.C3 LP.E2E

Logistics ofCompany 1

Logistics of Company 2





I I I I I ISupply = Demand? Supply = Demand? Supply = Demand? Supply = Demand? Supply = Demand?

tems P

LSP LSP

E2E (End to End)Company‐process

Product Process (End to End : E2E)

Supply = Demand?Syst Company‐processCompany‐process Company‐process Company‐process

Upstream Downstream

Product (external) Supply Chain LP.C1 = Logistics point of R/M SupplierLP.C2 = Logistics point of Manufacturing PlantsLP.C3 = Logistics point of Warehouse Services

Product Process (End to End : E2E)

LP.C4 = Logistics point of Transport ServicesLP.C5 = Logistics point of Retail ShopsLP.C6 = Logistics point of E2E (Product Supply Chain)


28Holistic View of Company Supply Chain

S l Ch i l i



LogisticsPoint

tive Plan

ProcurementPlan

ManufacturingPlan

WarehousePlan

TransportPlanRetail

Custom

ersmove make move

Retail xEnd End


move

X X X X Xrspe

ct

CEnd End X X X X XLP.P LP.M LP.RLP.TLP.W LP.E2E





Logistics of RetailI I I I I I

Supply = Demand? Supply = Demand? Supply = Demand? Supply = Demand? Supply = Demand?ms P

e


Sup‐process Sup‐process Sup‐process Sup‐process Sup‐process Supply = Demand?Syste

Company (internal) Supply Chain LP.P = Logistics point of ProcurementLP.M = = Logistics point of ManufacturingLPW L i i i f W h


p y ( ) pp yLP.W = = Logistics point of WarehouseLP.T= = Logistics point of TransportLP.R= Logistics point of RetailLP.E2E=Logistics point of E2E (End to End) My Lecture#2

15 Aug 2015

29Central position of logistics in the enterprise between markets and productionbetween markets and production

Seamlessly, perfect fit, Just in Time with customer demand

Logistics is not just functions in execution process but it is an

function for integration.g

xx x x

Source : Michael Schenk ∙ Siegfried Wirth ∙ Egon M¨uller“Factory Planning Manual Situation‐Driven Production Facility Planning” 2010

Logistics FlowMy Lecture#215 Aug 2015

30Logistics and Supply Chain Thinking

ning

Logistics Planning (Collaboration)tics

ions

End Endto

Plan

n

Planning Planning PlanningLogist

Decis

Process

Logistics

form

ation

agem

ent P

Flow

LInf

gistics M

an

End End End End End End

Logistics F

Log

End End End End End End End End End End End End End End

gistics

orman

ce

My Notes of My Notes of Dr. Dr. VithayaVithaya3 3 Jun Jun 1515

Log

Perfo

Quality(No damages)

Quality(No damages)

Quality(No damages)My Lecture#2

15 Aug 2015

31A supply chain planning matrix

Strategic

Tactical

Operational

Procurement Production Distribution Sales

Source : Knolmayer, G.F., Mertens, P., Alexander Zeier, A. and Dickersbach, J. T. “Supply Chain Management Based on SAP Systems : Architecture and Planning Processes” 2009 My Lecture#2

15 Aug 2015

32

Supply Chain ThinkingSupply Chain Thinking

Collaboration(Co Planning)

Communication(Information Sharing)

(Co‐Planning)S&OP or

Supplier Relationship

Data & IT


333C in Supply Chain Model

PlanDecision Flows

C ll b i

Measure Execute

Collaboration

MeasureExecute

Communication

Execute M ExecuteMeasure

ActionsConnection

Measure

(Re) Plan Improve(Re) Plan

Execution Control

ImproveSupply Chain


34Performance : 3 KPIs – Effectiveness, Efficiency, Changeability

Measure KPI, check with the goal. If reach the goal, it’s ok or set the new goal higher. If not reach the goal nt

Analysis

not reach the goal, improve the process.

easuremen

t

Activities,Process

Changeability

Products & Services

Me

Measuremen

t

Change

Systems

Changeability CustomersOutput

Measuremen

t

If customers change their

requirements, we

M

Measure KPI, then check the target of resource utilization.

If the utilization is in control, it’s ok or improve process for better utilization.

have to change the processes. Analysis

AnalysisMy Lecture#215 Aug 2015

35

Scope levels of supply chains

Supply Chain Professionals must holistically look at supply chainSupply Chain Professionals must holistically look at supply chain.

CollaborationsCollaborations Collaborations

Collaborations

End to End

Working as individual functions with in supply chain is not Supply Chain Professional.Supply Chain Professional must define the boundary of supply chain as End

E d P d kto End Process and work as process management.


36

Remember Supply Chain is all about Teamwork from pp yEnd‐to‐End and Leadership, not just individual functions like transportationfunctions like transportationor warehousing in thecompanycompany.


37Dr. Vithaya’s Perspective on Logistics and SCM (Jellyfish Model)Upstream DownstreamEnd to End

Product Supply Chain Management

pSoft Side

Company

Plan Plan Plan

Source Make Deliver

Company Supply Chain Management

Plan Plan Plan

D li

Company Supply Chain Management

Plan Plan

S D li

CompanySupply Chain Management

Plan

Transport

CompanySupply Chain Management

Execution Execution Execution

Source(move)

Make Deliver(Move)

Flow of Values : Logistics

Execution Execution Execution

Source(Move)

Make Deliver(Move)

Flow of Values : logisticsExecution Execution

Source(Move)

Deliver(Move)

Flow of Values

Execution

Transport(Move)

Flow of Values

Custom

ersBetter

FasterCheaper

Hard Side

End to End End to End End to End End to End

CH

Logistics Flow My Lecture#215 Aug 2015

38

No Logistics Process

“Logistics” and “Not Logistics” how are they related to Supply Chain

Customers Customers

No Logistics Process

LogisticsActivities

Activities

L i ti i h

.and

ht co

st

Logistics is how customers

receive values at the right time and

the right place ith i ht t

No Logistics is how

customers receive values

at not the

anning

anning)

nning)

harin

g

Sharing

ties

g an

d st

orin

g.

effe

ctive

ly a

lace w

ith ri

gh with right cost

e

at not the right time and not the right

place with not right cost

y Ch

ain Pla

orative Pla

anning

rativ

ePlan

mation S

mation S

stics

Act

ivit

sical

mov

ing

o cu

stom

ers

d th

e rig

ht p

l

cust

omer

s ot

the r

ight

tim

eot

righ

t cos

t.

Supp

ly(Collabo Pl

Uncollabo

Inform

No Inform

Logi

s

vities

of p

hys

s of v

alues

torig

ht ti

me a

n

s of v

alues

to c

effic

iently

at n

ot p

lace w

ith n

o

( N

Activ

To m

ake f

lows

iently

at th

e r

To m

ake f

lows

ectiv

ely an

d in

end

not

the r

igh

My Lecture#2 15 Aug 2015

Tef

fici

inef

fe an

39From “Strategic” to “Tactical” to “Operational”

High VisionPlan

Plan

Execute Improve

LongControl

Execute ImprovePlan

Execute IWin

Control

Uncertainty

Wide

STRATEGIC

Control

Execute ImproveManagement process

Plan

Execute ITime

WidePlan Plan

Execute ExecuteImprove

ImproveInv Trans

Control

Execute Improve

Low

Scope

Short

TACTICALControl

Pl Plan Pl

ControlImprove

Plan

ExecuteShort

ExecuteImprove

Plan Plan Plan

Execute ExecuteImprove

ImproveSource Make Deliver Control

Execute Improve

Narrow OPERATIONALControl Control Control


40Pyramidal reference framework for Supply Chain Management

Customers

Logistics FlowReverse Logistics

Source : Knolmayer, G.F., Mertens, P., Alexander Zeier, A. and Dickersbach, J. T. “Supply Chain Management Based on SAP Systems : Architecture and Planning Processes” 2009 My Lecture#2

15 Aug 2015

41Modeling Levels of Abstraction

AbstractTheory

ConcretePractices


Mostly, we focus at concrete level which we can consume and utilize, and ignore thinking or abstraction which is the origin of things or concrete that we consume.

42Creating Supply Chain Roadmap(Guideline)(Guideline)

Your Company Values Customer Values

Question #1

agem

ent

rk

Question #1

SCOR GSCF

CM Process

ply Ch

ain mana

stics Networ

d GSCF on

SC

Strategic Supp

ions of Logis

SCOR and

Que

stions fo

r

48 Decis

100

Question #100

48 Decision

Supply Chain RoadmapMy Lecture#215 Aug 2015

lscm-1-2015 #2 introduction to lscm

Documents

supply chain management

value management

eglass supply chain

tglass supply chain

oglass supply chain

lexecution of value

value creation process

network of value creators