SUPPLY CHAIN MANAGEMENT

1. SUPPLY CHAIN MANAGEMENT FLOW OF MATERIAL Presented by : Neha samdani Prajjwal Dewaskar Shailesh Prajapati Sneha B. Hulkoti M.F.Tech 3rdSem

2. MATERIAL FLOW • Material flow involves Production Planning, Purchasing, Just-In-Time (JIT), and Inventory Management / Inventory Control. • Material flow, distribution, logistics, purchasing and planning are all important factors for success and competitiveness. 

3. MATERIAL FLOW • Inventory Solutions can help by optimizing your material flow. • Efficient and Stream-lined processes are required to remain competitive in today's marketplace. 

4. Benefits • Improve Product Quality • Reduce Purchasing Costs • Reduce Freight / Transportation Cost • Reduce Manufacturing Waste • Increase Production

5. Benefits • Improve Customer Satisfaction • Reduce Downtime • Reduce Product Cost • Increase Cash Flow

6. Added Value Chain • A value chain is a chain of activities. • Products pass through all activities of the chain in order and at each activity the product gains some value. • The chain of activities gives the products more added value than the sum of added values of all activities.

7. Added Value Chain • Manufacturing consists of physical transformation to a physical, tangible product. • Transportation and distribution systems provide a desired re-location of goods, services and customers. • In the case of distribution value can be added by re-sizing or re-packaging goods.

8. Information provision organizes and delivers data in a way suitable for use by customers but with no other involvement. • Education and training use base knowledge information along with learning process knowledge to modify customer's thought processes and action choices.

9. Added Value Chain • Psychological and physiological value can also be added by food/drink sectors as well as by the medical services.

10. Value chain model SUPPORT ACTIVITIES Firm Infrastructure Margin Human Resource Management Technology Development Procurement Inbound Logistics Outbound Logistics Marketing & Sales Service Operations Margin PRIMARY ACTIVITIES

11. Value networks

12. Transformation of goods downstream • The concept of flow of materials is as river flowing from the hills to the sea. • It is nevertheless a transformation process in which different patterns of flow can be discerned for different market situations. • The primary distinction is : • Progressively removed • Added as we go downstream

13. Physical reduction process • It could be the production of pure chemical from a complex feed stock. • It could be the process of editing for the news media where extended reports are progressively reduced to bare essentials often being captured in a punchy headline or sound-bite.

14. Adding process • Adding process can be understand by the I-V-A-T analysis. • The form of the letter suggests the pattern of material flow. • Consider the letters are superimposed on to a flow of material. • The direction of flow is from the base of the letter to the apex.

15. I - shape • I – shape is unidirectional,unvarying,production of multiple identical items or of a continuous material as in our chemical process. • Because of its uniqueness and inflexibility this pattern is less of a problem in supply chain term since the decisions are limited to when to switch on the flow and for how long.

16. V - shape • Characteristics : • Limited raw materials at input stage. • Wide range of finished products. • Generally diverging pattern. • Product variety determined early in the transformation process. • Parallel streams with similar processing capabilities.

17. V- Plant Orders Raw material input

18. Use of V-shape pattern • This type of pattern generally used by : • Textile manufacture • Metal fabrication • chemicals

19. Problems associated • As it is offering a capability of variety of output, in supply chain terms the problem comes from the need to define actual final product early in the process. • Management of response to changing orders or customer requirements becomes more complex.

20. A- shape pattern • Characteristics : • Numerous raw material at input stage. • Limited variety of finished products. • Generally converging pattern built up in a hierarchy of sub-assembly. • Difficult streams of component parts using different facilities.

21. A -Plant Orders Final Assembly Sub Assembly Raw Material

22. Use of A-shape pattern • Aerospace • Civil engineering • Fast food stores • Retail distribution

23. Problem associated • Supply chain problem here relates to when a demand has to be made firm to allow for the long path from start to finish.

24. T-shape pattern • T –shape tries to keep a simple flow path until the latest possible moment before suddenly branching out in to a wide variety .

25. Characteristics • Wide range of products from a restricted number of component or sub-assembly parts. • Final process stage can be driven by actual customer demand. • Holding of part-finished items can be large and forecasting effort is directed here. • Labor intensity at final stages to be able to react quickly.

26. T- Plant Orders

27. Use of T-shape pattern • Electronics • Garden • Household appliances

28. Information is power • Information is certainly power but the way in which it is used is also important. • The philosophical difference in information usage is that • In the first, control is exerted by a few on the many through selective use of information. • Second is based on the belief that by providing full information to all, control will be exercised by each to the mutual benefits of all.