Chapter 3 in Manufacturing Planning and Control by Vollman
It coordinates sales and operations effort at the top level.
It is generally done over a horizon period of one month.
But with digitization companies are doing it for a week also.
Some are going to do on a day's horizon (Simchi Levi)
Increase in Effectiveness increases Revenue, the Top Line
Increase in Efficiency reduces unit cost and comparative total cost.
Supply Chain Digitization and Digitalization have applications that increase effectiveness.
Supply Chain Digitization and Digitalization have applications that increase efficiency
NITIE Online https://www.nitie.ac.in/digital-scm-2021/#1001
End-to-End Supply Chain Transformation
Registrations Open! Last Date for Domestic Participants' Registrations - Jan 10th, 2021
Dates: 16th Jan ’21 – 21st March ’21 (5:30 PM – 7:00 PM IST | Saturday & Sunday)
Download Brochure - Register https://www.nitie.ac.in/digital-scm-2021/#1001
Digitalization is the use and adoption of external digital technologies (i.e. resources (such as machine learning, IoT, big data and blockchain)) by organizations, to improve their supply chain and operational performance.
EDITORIAL
Rethinking supply chains in the age of digitalization
PRODUCTION PLANNING & CONTROL
2020, VOL. 31, NOS. 2–3, 93–95
https://doi.org/10.1080/09537287.2019.1631469
31 Dec 2020 (Last One Week Articles)
https://www.sme10x.com/industry/how-digitization-is-transforming-global-logistics
https://www.quantzig.com/services/supply-chain-analytics
https://www.supplychain247.com/company/capgemini
https://www.globaltrademag.com/digitization-helps-shippers-address-challenges-capture-opportunities/
https://www.supplychainbrief.com/2020/procurement/
https://newsopener.com/entrepreneurs/council-post-bringing-supply-chains-into-the-digital-world/
https://www.livemint.com/brand-stories/digital-is-the-way-forward-in-a-post-covid-world-11609135294441.html
https://sloanreview.mit.edu/article/data-not-digitalization-transforms-the-post-pandemic-supply-chain/
Servitization, digitization and supply chain interdependency
Industrial Marketing Management
Volume 60, January 2017, Pages 69-81
https://www.sciencedirect.com/science/article/pii/S0019850116301213
http://www.digitaljournal.com/tech-and-science/technology/accelerating-end-to-end-supply-chain-digitization/article/573403
https://chiefexecutive.net/digital-supply-chain-how-to-drive-value/
Enablers to supply chain performance on the basis of digitization technologies
Himanshu Gupta, Sarangdhar Kumar, Simonov Kusi-Sarpong, Charbel Jose Chiappetta Jabbour, Martin Agyemang
Industrial Management & Data Systems
ISSN: 0263-5577
Publication date: 11 November 2020
15 Jun 2019
_____________________
https://www.youtube.com/watch?v=opYGrCky3lY
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Stuart M. Rosenberg
Routledge, 09-Nov-2020 - Business & Economics - 252 pages
The goal of this book is to gain a clear picture of the current status and future challenges with regard to the digitalization of the supply chain.
Digitization has touched upon all aspects of businesses, including supply chains. Technologies such as RFID, GPS, and sensors have enabled organizations to transform their existing hybrid (combination of paper-based and IT-supported processes) supply chain structures into more flexible, open, agile, and collaborative digital models. Digital supply chains further improve and enable business process automation, organizational flexibility, and digital management of corporate assets.
The technologies discussed in this text – artificial intelligence, 3D printing, Internet of things, etc. – are beginning to come together to help digitize, automate, integrate, and improve the global supply chains. Both new supply chain professionals and long-time supply chain professionals have to learn the applications of new technologies in supply chain activities.
Table of Contents
Introduction
Part 1. Digitalization of 21st Century Supply Chain with LEAN Methodology
1. Introduction Supply Chain Terminology
2. Just-in-Time
3. Value Stream Mapping
4. Kaizen
5. The Five S’s
6. The Five Why’s
Part 2. Digitalization of Supply Chain Procurement
1. The Reinvention of Procurement
2. The Transformation of Procurement into a Global Force
3. Procurement and Digitalization – Automation
4. Saving Procurement from Itself
5. Procurement and Supply Chain Sustainability
6. Procurement Solutions in the Digital Age
Part 3. Supply Chain Logistics/Transportation
1. What is Logistics
2. Logistics in the 21st Century
3. The Merger of the Physical and Digital Supply Chains
4. 21st Century Digital Logistical Solutions
Part 4. Inventory Management in the Age of Digital Automation
1. How Artificial Intelligence solves the riddles of Inventory Management
2. How Big Data is changing Inventory Management
3. Misconceptions on Managing Inventory in A Digital Driven World
4. Best Practices in Inventory Management in The Digital Age
Part 5. Supply Chain Warehousing in the 21st Century
1. 20th Century Warehouses are Passe
2. How to Keep Up With Distribution Center Automation & Digitalization
3. The Five Steps to A 21st Century Warehouse
Part 6. Supply Chain Demand Planning
1. The Ten Critical differences between 20th Century and the 21st Century Demand Planning
2. Demand Planning Needs to Incorporate More Than……
3. 20th Century Leadership versus 21st Century Leadership
Part 7. Supply Chain Customer Service
1. Contemplating On The History Of Customer Service
2. Customer Service Re-invented for the 21st Century
3. How Will Customer Service be Reinvented for the Digital Age
4. Improving Customer Service in the Age of E-Commerce
5. Customer Focus Innovation
6. Customer First Culture & Alignment
7. Navigating the Internal Politics of Change
Part 8. Supply Chain Predictive Analytics
1. Looking into the Future: Predictive Analytics & Supply Chain
2. Predictive Analytics and Manufacturing
3. Predictive Analytics and Transportation Management Systems
4. Transportation in the Age of Artificial Intelligence
5. The Final Mile Delivery
6. Predictive Analytics and Mainstream Business Tools
7. Using Predictive Analytics to Drive Sales and Customer Service
Part 9. The Role of the Human Factor in the Digitalized Supply Chain
1. Are Human Jobs at Risk with Automation
2. Human Factor Engineering in the Supply Chain
3. Automation Grows, But Will We Still Need People
4.: What Impact will Automation Have On Warehouse Workers
5. The Role of Human Factors on Future of Manufacturing
https://books.google.co.in/books/about/The_Digitalization_of_the_21st_Century_S.html?id=jVYAEAAAQBAJ
Thomas Mrozek, Daniel Seitz, Kai-Uwe Gundermann, Matthias Dicke
Campus Verlag, 20-May-2020 - Business & Economics - 240 pages
Supply Chain Management is without question deeply affected by the disruptive forces of a modern organization, positively as well as negatively. Between advanced analytics and AI, agile role models and autonomous warehouses a senior executive is often in danger of losing track in the digital jungle. In these exciting times, with their many turning points, digital experts aim to share insights around digital supply chains, their application in business and the so vital transformation to successfully prepare organizations for this challenge. This book provides insights into best practices current supply chain and how CSOs apply technologies and advancements. It also makes daring forecasts about how processes and leadership must be designed so that the digital transformation does not fail in its infancy, but leads to a truly agile organization.
https://www.ifc.org/wps/wcm/connect/industry_ext_content/ifc_external_corporate_site/financial+institutions/priorities/digital+finance/digitization-scf-handbook
Supply chain digitalization: past, present and future
Zahra Seyedghorban, Hossein Tahernejad, Royston Meriton & Gary Graham
(2020)
Production Planning & Control, 31:2-3,
96-114, DOI: 10.1080/09537287.2019.1631461
https://www.tandfonline.com/doi/abs/10.1080/09537287.2019.1631461
Special Issue: Rethinking Supply Chains in the Age of Digitalization
Production Planning & Control
Volume 31, 2020 - Issue 2-3.
https://www.tandfonline.com/toc/tppc20/31/2-3
The Future of Supply chain: A digitized Supply Chain
Shereen Mosallam, March 12, 2018
In digital supply chain the whole system is interconnected like an orchestra to convert from traditional linear model to a digitalized dynamic grid and customers are placed in heart of the supply chain.
Digital supply chain typically consists of:
Digital/ Intelligent planning
Digital sourcing
SMART manufacturing
Digital Logistics/ e-logistics
A digital supply chain steeply leverages intelligence embedded in devices, analytics, external big data sources, and intelligent supply chain software to realize improved customer experience, increased value of products in the markets, generate new revenue streams and new markets and increase high profits.
https://opexsociety.org/body-of-knowledge/the-future-of-supply-chain-a-digitized-supply-chain/
A Classic Taste of Supply Chain Digitization: Coca-Cola
https://thebossmagazine.com/supply-chain-digitization-coca-cola/
https://www.tcs.com/transforming-supply-chain-digitization
https://www.capgemini.com/in-en/2019/05/supply-chain-digitization-vs-digitalization-why-understanding-the-difference-between-the-two-is-still-important/
PWC Services - Digital Transformation of Supply Chain
https://www.pwc.in/consulting/digital-transformation/supply-chain-transformation.html
ud 31 July 2021
pub: 31 Dec 2020
Code of ethics - SCMA
https://scma.com/en/about-scma/join-scma/code-of-ethics
The ethical supply chain
New research from APICS, Supply Chain Management Review and Loyola University Chicago finds that operating a responsible supply chain is an increasing priority. But gaps remain between practice and the goal.
By Judd Aschendbrand, Jennifer Proctor and Bob Trebilcock · November 14, 2018
https://www.scmr.com/article/the_ethical_supply_chain
https://bized.aacsb.edu/articles/2020/september/deans-diary-first-60-days
https://bized.aacsb.edu/articles/2020/december/deans-diary-first-semester-down
What Makes a College Administrator an Effective Leader?: An Exploratory Study
Valentini Kalargyrou &Robert (Bob) Woods
Journal of Teaching in Travel & Tourism
Volume 9, 2009 - Issue 1-2
THOMAS, Howard and THOMAS, Lynne. Perspectives on Leadership in Business Schools. (2011). Journal of Management Development. 30, (5), 526-540.
20 July 2021 Popular Posts of the Day - Management Theory Review Blog
Evaluating a Company’s External Environment - Summary and Key Points.
Crafting and Executing Strategy: Concepts and Readings
http://nraomtr.blogspot.com//2016/08/evaluating-companys-external.html
(12, 8, 13.12)
Understanding the Supply Chain - Review Notes.
Supply Chain Management: Review Notes Based on Chopra and Meindl's Book
http://nraomtr.blogspot.com//2011/12/understanding-supply-chain.html
(4,4,6.10)
Operations Management - ICFAI University 2020 Syllabus
Operations Management Decisions - Historical Evolution of Operations Management: Scientific Management, Moving Assembly Line, Hawthorne Studies, Operations Research - Computers and Advanced Operations Technology.
Shorter Product life cycle, production flexibility, Low cost process, Convenience and location, product variety and facility size, quality.
Elements of Operations Strategy: Designing the Production System, Product/service Design and Development, Technology Selection and Process Development, Allocation of Resources to Strategic Alternatives, Facility Planning.
Developing an Operations Strategy.
Operations Strategy and Competitiveness
Forecasting in Operations - Forecasting Methods - Qualitative Method, Delphi Method, Nominal Group Technique, Time-series Methods: Simple Moving Average, Weighted Moving Average, Exponential Smoothing, Causal Quantitative Methods - Linear Regression - Selecting a Forecasting system: Time span, Data availability, Cost and Accuracy - Measures of Forecasting Accuracy: Mean Absolute Deviation, Mean Square Error, Mean Forecast Error, Mean Absolute Percentage Error, Tracking signal - Monitoring and Controlling Forecasts.
Allocation Decisions in Operations Strategy: Components of Constrained Optimization Models, Merits and Demerits of Constrained Optimization Models - Linear Programming in Operations Management : Assumptions of Linear Programming, Characteristics of Linear Programming - Formulation of Linear Programming Problems: Identify the decision variables, Define the objective function, Identify and express relevant constraints- Solution of Linear Programming Problems: Graphical Method, Simplex Method – The Transportation problem in linear programming : North-west corner method, Least cost method, Vogel's approximation method, Stepping stone method.
Optimizing the Use of Resources with Linear Programming - Review Notes
Process Planning and Design - Major Factors Affecting Process Design Decisions: Nature of Demand, Degree of Vertical Integration, Flexibility, Degree of Automation, Quality Level and Degree of Customer Contact - Types of Process Designs: Product Focused, Process Focused, Group Technology - Process Planning Aids: Assembly Charts, Process Charts - Selecting the Type of Process Design -Variety and Volume, Investment, Economic analysis.
Job Design and Work Measurement
Product Design and Process Selection—Manufacturing
Facility Layout
Product Design and Process Selection—Services
Waiting Line Management
Importance of Location – Factors affecting the location decision: market proximity, Integration with other Parts of the Organization, Availability of Labor and Skills, Site Cost, Availability of Amenities, Availability of Transportation Facilities, Availability of Inputs, Availability of Services, Suitability of Land and Climate, Regional Regulations, Room for Expansion, Safety Requirements, Political, Cultural and Economic Situation, Regional Taxes, Special Grants and Import / Export Barriers - General Steps in Location Selection and Location Decision Process: Define the Location Objectives and Associated Constraints, Identify the Relevant Decision Criteria, Relate the Objectives to the Criteria Using Appropriate Models, Do Field Research to Relevant Data and Use the Models to Evaluate the Alternative Locations, Select the Location that Best Satisfies the Criteria - Location Evaluation Methods: Cost-profit-volume or Break-even analysis, point rating method, The transportation method of linear programming - Facility Layout: Criteria for good layout - Basic Layout Formats: Process layout, Product layout, Group technology layout, Fixed position layout, Hybrid layout - Developing a Process Layout: Graphic and Schematic analysis, Computer Models-CRAFT, Load distance model - Developing a Product Layout: Line balancing, Steps in assembly line balancing, Mixed-model line balancing - Developing A Cellular Manufacturing Layout - Japanese Approaches and Trends in Manufacturing Layouts - Service Facility Layouts.
Overview of Planning Activities: business planning, operational planning- The aggregate planning process: Concept of Aggregation, Aggregate Planning Goals, Forecasts of Aggregate Demand, Inter Relationships Among Decisions - Strategies for Aggregate Planning: Pure Planning Strategies-Aggregate planning Techniques: Graphical Method for Aggregate Output Planning, Optimal Models for Aggregate Planning, Heuristic models, Computer search models, computer simulation in capacity evaluation - Master production Schedule: master production scheduling, Master schedule formation - Implementing aggregate plans and master schedules: Unplanned events, Behavioral considerations-Capacity planning.
Aggregate Sales and Operations Planning
Purpose of Inventories: Smooth production, better service to customers, protection against business uncertainties, Take advantage of quantity discount - Inventory Costs – Purchase costs, Carrying Costs, Ordering Costs, Stock-Out Costs - Inventory Systems - Fixed Order Quantity System, Fixed Order Period System - Economic Order Quantity Model – Reorder Point, Optimal Order Quantity
Importance of Purchasing: Impact of Costs on Profits, Increasing Prominence of Automated manufacturing, Increased Global Competition - Organizing Purchasing – Responsibilities of Purchase Manager - Vendor Development, Selection of Suppliers, Contract Negotiation and Communication Interface, Value analysis- Purchasing Process - Duties of Buyers - Make-or-Buy Analysis - Ethics in Buying
Design fundamentals: Objectives of Job Design, Technical Feasibility, Economic Feasibility, Behavioral Feasibility - Considerations in Job Design: Job Content, Specialization -Work Environment: Tools and Equipment, Atmosphere, Worker Motivation - Uses of Job Design -Job Analysis, Job Description
Job Design and Work Measurement
Uses of Setting Work Standards - Work Measurement Techniques: Time Study, Standard Data, Predetermined Motion Time study, Work Sampling, Historical Analysis, Employee Self Timing - Compensation
Automation: Advantages and disadvantages of automation - Overview of Manufacturing Activities - Automation in Engineering Design and Support, Computer Aided Design-Automation in Controlling Processing Equipment: Computer Aided Manufacturing, Flexible Manufacturing System, Computer Integrated Manufacturing - Artificial Intelligence: Expert Systems, Robotics - Electronic Data Interchange
Necessity of Materials Management - Functions of Materials Management: Production Control, Inventory Control, Materials Handling - Materials Management Technology – Robots, Automated Storage and Retrieval Systems, Automated guided vehicles - Materials Management Techniques: JIT Purchasing, Kanban Systems, ABC Classification Systems.
Dependent Demand: Fundamentals of Materials Requirement Planning: Objectives of MRP: Improved customer service, reduced investment in inventory, Improved operating efficiency, faster response to market change - Components of an MRP system: MRP system inputs, MRP system information processing, MRP system outputs- Advantages and disadvantages of MRP system - Problems in implementing MRP systems: Inadequate employee training and involvement, Use of inaccurate and obsolete data, inappropriate product environment - Manufacturing resource planning (MRP II)
Evolution of ERP – Business Process Reengineering: BPR and IT – Business Modeling for ERP: Integrated data model - ERP Implementation: ERP implementation methodology - Guidelines for ERP implementation: Define corporate needs and culture, complete business process change, communication across the organization, provide strong leadership, select a balanced team, select a good method of implementation, organization wide training – ERP and competitive advantages: price, delivery reliability and speed, quality, product range
Business Drivers in Supply Chain Management: Inventory, Transportation, facilities, information - Principles of Supply Chain: segment customers based on service needs, Customize the logistic network, Plan based on market demand, Enhance ability to meet customer requirements, Improve relationships with the suppliers, have a supply chain wide technology strategy, devise a complete supply chain performance measure- Forces shaping supply chain management: consumer demand, globalization, Competition, Information and communication, Government regulation, Environment- Supply Chain Management Framework: The seven SCM components, The six SCM enablers – Customer Focus in Supply Chain Management: Demand Chains A focus on end users, Broad trends and misconceptions, creating the demand chains of the future - Electronic Supply Chain Management: ESCM advantages, ESCM Implementation
MANAGING SUPPLY CHAINS
Supply Chain Design
Supply Chain Logistic Networks
Supply Chain Integration
Supply Chain Sustainability
Purpose of Scheduling - Scheduling methods: Forward scheduling, Backward scheduling - Scheduling Activities: Routing, Loading, Dispatching - Scheduling by Type of Operations: Job operations, Repetitive operations, Labor intensive operations, Service operations- - Scheduling techniques: Gantt charts, Johnson’s job sequencing rules, Queuing analysis, Critical ratio method.
The Concept of the JIT: People Involvement, Teamwork, Discipline, Supplier Involvement, Total Quality Control, Concept of immediate customer - Advantages of JIT systems – Characteristics of JIT systems: uniform workstation loads, small lot sizes, closer supplier ties, maintaining high quality, Quick and economic setups, Flexible facilities and Multi-skilled Workforce, preventive maintenance, Continuous improvement.
Strategic Role of Quality: Performance, features, Reliability, Conformance, Durability, Serviceability, Aesthetics, Perceived quality-Role of Inspection in Quality Control - The Cost of Quality: Cost of prevention, Cost of detection/appraisal, Cost of failure – Statistical Concepts in Quality Control: Control charts, Essential steps in starting a control chart, Control charts for variables, Control charts for attributes, Acceptance plans – Computers in Quality Control - Concept of TQM.
Total Quality Management: Focus on Six Sigma
Process Capability and Statistical Quality Control
Maintenance Management:
Necessity of Maintenance Management: Impact of poor maintenance, Area of maintenance - Types of maintenance - Preventive maintenance, Predictive maintenance, Remedial maintenance- Economies of maintenance - Modern approaches to preventive maintenance – Evaluation of preventive maintenance - Recent trends in maintenance
Necessity of Project Management - Network based scheduling techniques: Advantages of network scheduling - Networking conventions: Activity-On-Node, Activity- On-Arrow - Networking terminology - Project management methods: Program evaluation and Review Technique, Cautions regarding PERT, Advantages and disadvantages of PERT - Phased PERT/CPM: Project planning and sequencing, Time estimating and critical path, project scheduling, Reporting and updating – Project crashing
Significance of Globalization - Sources of global competitive advantage: Comparative advantages, Economies of scale, Proprietary product technology - Difficulties in managing globalization: Economic impediments, Managerial impediments, Institutional impediments, Trade-offs in globalization – Operations strategy changes necessary for globalization: Selection of markets, Product development and technology choice, Allocation of resources- Managing Globalization: Changing the organization's structure, Changing manager's attitude, Developing core competencies for global learning – Operations in Global Business Strategy: Management and Organization, Facilities, Capacity, Technology, Innovation, Integration, Workforce, Procedures Planning
Important Points - Summary
1. Using Operations to Create Value
Supplement A: Decision Making
PART I: MANAGING PROCESSES
2. Process Strategy and Analysis
3. Quality and Performance
4. Capacity Planning
Supplement B: Waiting Lines
5. Constraint Management
6. Lean Systems
7. Project Management
PART II: MANAGING CUSTOMER DEMAND
8. Forecasting
9. Inventory management
Supplement C: Special Inventory Models
10. Operations Planning and Scheduling
Supplement D: Linear Programming
11. Resource Planning
PART III: MANAGING SUPPLY CHAINS
12. Supply Chain Design
13. Supply Chain Logistic Networks
14. Supply Chain Integration
15. Supply Chain Sustainability
Operations Management for Competitive Advantage
Richard B. Chase, University of Southern California
F. Robert Jacobs, Indiana University–Bloomington
Nicholas J. Aquilano, University of Arizona
McGraw-Hill
ISBN: 0072506369
Copyright year: 2004
SECTION ONE: OPERATIONS STRATEGY AND MANAGING CHANGE
1. Introduction to the Field
2. Operations Strategy and Competitiveness
Technical note 2 Learning Curves
3. Project Management
SECTION TWO: PRODUCT DESIGN AND PROCESS SELECTION
4. Process Analysis
Technical note 4 Job Design and Work Measurement
5. Product Design and Process Selection—Manufacturing
Technical note 5 Facility Layout
6. Product Design and Process Selection—Services
Technical note 6 Waiting Line Management
7. Total Quality Management: Focus on Six Sigma
Technical note 7 Process Capability and Statistical Quality Control
8. Operations Consulting and Reengineering
SECTION THREE: SUPPLY CHAIN DESIGN
(Managerial Briefing Electronic Commerce and E-Ops©)
9. Supply Chain Strategy
10. Strategic Capacity Management
Technical note 10 Facility Location
11. Just-in-Time and Lean Systems
SECTION FOUR: PLANNING AND CONTROLLING THE SUPPLY CHAIN
(Managerial Briefing Enterprise Resource Planning Systems)
12. Forecasting
13. Aggregate Sales and Operations Planning
14. Inventory Control
15. Material Requirements Planning
16. Operations Scheduling
Technical note 16 Simulation
17. Synchronous Manufacturing and Theory of Constraints
SUPPLEMENTS
B. Financial Analysis
C. Operations Technology
Updated 19 July 2021