Presentation Transcript

1. Supply Chain Systems Engineering Overview

   by Dr. Andrew Junfang Yu
2. What is a Supply Chain (SC)? It consists of all parties involved in fulfilling a customer request Directly or indirectly It includes The manufacturer, suppliers, transporters, warehouses, retailers, and even customers themselves All functions involved in receiving and filling a customer request within each organization
3. Example – a Detergent Supply Chain A SC is dynamic and involves constant flow of information, product, and funds between different stages Customers, retailers, wholesalers/distributors, manufacturers, component/raw material suppliers Timber Company Paper Manufacturer Tenneco Packaging P&G or Other Manufacturer Wal-Mart or Third Party DC Wal-Mart Store Customer Chemical Manufacturer Plastic Producer
4. Supply Chain Systems The set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores so that merchandize is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize the total cost while satisfying the service level requirements
5. Supply Chain Systems Suppliers Manufacturers At right time quantities locations Warehouses Stores Satisfies service level Minimize system cost Efficient approaches
6. Supply Chain Management The seamless integration and management of material movement, information flows, and financial transactions across all nodes of the supply chain and with all supply chain partners It involves the management of activities surrounding the flow of raw materials to the finished product or service enjoyed by end customers, and back, in the case of recycling or returns
7. Supply Chain Decisions Many SCM decisions relating to flow of information, product and funds Each should be made to raise SC surplus Three categories Supply chain strategy or design Supply chain planning Supply chain operation
8. Supply Chain Process Customer A supply chain is a sequence of processes and flows that take place within and between different stages and combine to fill a customer need for a product or service Customer Order Cycle Retailer Replenishment Cycle Distributor Manufacturing Cycle manufacturer Procurement Cycle Supplier
9. Categories of Supply Chain Processes All supply chain processes can be categorized into three categories: Customer Relationship Management (CRM) Internal Supply Chain Management (ISCM) Supplier Relationship Management (SRM) Supplier Customer Enterprise SRM ISCM CRM
10. Supply Chain Systems Engineering Supply chain management and logistics are an important part of system development process and life-cycle activities Supply chain itself should be designed, developed, built, operated and supported as a system Supply chain systems engineering discusses: How the supply chain activities should be included in the acquisition life-cycle of a complex system Identify SC activities in each stage of life-cycle Identify the importance of such activities How a supply chain system should be designed, developed, built, operated and supported using system engineering approach
11. Relating System Life-Cycle Activities to SC Activities Requirement analysis Supply chain requirement for design, development, production and support Supplier scorecard criteria Supply allocation policy Standards for supply quality and risk Supply quality and risk control mechanism System analysis Design collaboration Identify suppliers for different elements of system Supplier evaluation and selection criteria for different elements of system Sourcing portfolio for different elements of system Supply chain network requirement and design for different elements of system for both production and support
12. Relating System Life-Cycle Activities to SC Activities System optimization Evaluate alternative elements of system Evaluate alternative suppliers Optimize supply allocation Optimize sourcing portfolio Optimize design for production Optimize design for support Optimize design for supply chain network System synthesis Identify supply chain requirements for each element in system Detail system design Identify and finalize supply chain requirements for production and support Suppliers, supply chain network, supply allocation Real time supply collaboration Supplier performance measures Finalize supply chain system
13. Relating System Life-Cycle Activities to SC Activities Production/construction MRP Procurement planning Production scheduling Supply collaboration Quality control Supply chain performance control System operation, maintenance and support Spare and repair parts planning Maintenance planning and scheduling Repair scheduling Logistics network for support System retirement and disposal Reverse logistics network
14. System Engineering Process for Supply Chain System Development Definition of SC problem (identification of SCS need) SC system feasibility analysis SC system operational requirements SC system maintenance support concept Identification and prioritization of SC performance measures Feedback SC functional analysis SC requirements allocation SC system synthesis, analysis, and design optimization SC design integration SC system test and evaluation (validation) SC system implementation SC system operational use and support
15. Supply Chain System Feasibility Analysis Evaluate different technological approaches that may be considered in responding to the requirements Identify various possible design approaches Evaluate the most likely candidates in terms of performance, effectiveness, implementation challenges, user adaptability, cost of ownership, and etc. Recommend a preferred approach The result will have significant impact on Future of operational characteristics of the system Usability, performance, integration, updatability
16. Supply Chain System Operational Requirements Reflect the needs of the user in terms of system deployment, utilization, effectiveness, and the accomplishment of its intended missions Operational concept includes: Operational distribution or deployment Number and type of users organizationally and geographically Mission profiles or scenarios The specific functions must be accomplished Performance and related operational parameters Critical SC system performance parameters necessary to accomplish the mission Utilization and effectiveness requirements Usage and effectiveness of the SC system in accomplishing its mission System integration Environment – business and users
17. Supply Chain System Maintenance Support Concept Supply chain system maintenance support: Business workflow System integration Software subsystems Data availability User training User support (both internal and external) Software upgrade Security Maintain certain performance level
18. Identification and Prioritization of SC Performance Measures Interpret and translate operational requirements and maintenance support concept into design objectives Organize the objectives into a tree structure and then prioritize them Transform the initial “qualitative” objectives to subsequent “quantitative” measures Team work – communication with all supply chain participators
19. Supply Chain Functional Analysis A function is a specific, a discrete action, or a series of actions necessary to achieve a given objective Functional analysis is an iterative process of breaking down requirements from system level to subsystem recursively Types of functions: Operational functions Maintenance and support functions Interfaces with other systems in SOS
20. Supply Chain Requirements Allocation Requirements for the system must be allocated down to its various major components as appropriate A top-down distribution process Objective is to define specific qualitative and quantitative design requirements for each significant element of the system Functional packaging and partitioning Allocation of system-level requirements to the subsystem level and below Traceability of requirements (top-down/bottom-up)
21. System Synthesis, Analysis, and Design Optimization Synthesis: Combining and structuring of components to represent a feasible system configurations It is design It defines “how” in response to “what” requirements Synthesis process usually leads to several alternative design approaches Needs further analysis, evaluation, refinement, and optimization
22. Supply Chain System Life Cycle Two dimensional life cycle Product Life Cycle SC Use, Support, Phase-out, and Disposal Product Use, Support, Phase-out, and Disposal Supply Chain (SC) Implementation SC Use, Support, Phase-out, and Disposal Product Production and/or Construction Product Detail Design and Development SC Detail Design and Development Supply Chain (SC) Implementation SC Detail Design and Development Product Conceptual/ Preliminary Design SC Conceptual/ Preliminary Design Supply Chain Life Cycle
23. Designing Supply Chain for Life Cycle Product Life Cycle System retirement and material disposal SC operational use and support System operational use and LC support SC implementation SC operational use and support SC test and evaluation (validation) Construction and/or production SC implementation SC synthesis, analysis, and design opt. SC design integration SC operational use and support SC functional analysis SC requirements allocation SC test and evaluation (validation) System test and evaluation (validation) SC implementation SC performance measures SC synthesis, analysis, and design opt. SC design integration SC maintenance support concept SC operational use and support SC functional analysis SC requirements allocation SC test and evaluation (validation) Design integration SC operational requirements SC implementation SC performance measures SC synthesis, analysis, and design opt. SC design integration SC maintenance support concept SC operational use and support SC feasibility analysis SC functional analysis SC requirements allocation SC test and evaluation (validation) Sys synthesis, analysis, and design opt. SC operational requirements SC implementation Definition of SC problem SC performance measures SC synthesis, analysis, and design opt. SC design integration SC maintenance support concept SC feasibility analysis SC functional analysis SC requirements allocation SC test and evaluation (validation) Requirements allocation SC operational requirements Definition of SC problem SC performance measures SC synthesis, analysis, and design opt. SC design integration SC maintenance support concept SC feasibility analysis SC functional analysis SC requirements allocation Functional analysis SC operational requirements Definition of SC problem SC performance measures SC synthesis, analysis, and design opt. SC maintenance support concept SC feasibility analysis SC functional analysis SC requirements allocation Technical performance measures SC operational requirements Definition of SC problem SC performance measures SC maintenance support concept SC feasibility analysis Maintenance and support concept SC operational requirements Definition of SC problem SC feasibility analysis System operational requirements Definition of SC problem System feasibility analysis Definition of problem Supply Chain System Life Cycle