280511_BSCM-intro download 26 mei 2011

Basic of Supply Chain Management: 

Basic of Supply Chain Management Intro to MM and Prod Planning Systems Bogor, 28 Mei 2011 Fajar Hidayat, ST, MsMM , CPIM

Building the CPIM Program: 

Prepared by: Vincent Gaspersz 2 BASICS of SUPPLY CHAIN MANAGEMENT Philosophies Strategies Targets Strategic Management of Resources Product Demand Internal Resource External Resource Material Plan Capacity Plan Supplier Plan Master Planning of Resources Execution & Conrol of Operations Detailed Scheduling & Planning Fundamentals of Operations Management Fundamentals of Manufacturing Control Fundamentals of Planning Fundamentals of Inventory Control Building the CPIM Program

PowerPoint Presentation: 

Prepared by: Vincent Gaspersz 3 The CPIM program: an overview The CPIM program consists of 5 individual modules: Entry module: -Basics of Supply Chain Management : Business process modules: -Master Planning of Resources , - Detailed Scheduling and Planning , - Execution and Control of Operations : Capstone module: -Strategic Management of Resources : Minimize Production Cost Minimize Inventory Investment Maximize Customer Service THE CPIM PROGRAM

Session 1: Objectives: 

Session 1: Objectives Recognize the difference between the order qualifier and order winner. Understand the conflicts in traditional systems. Describe the manufacturing strategy. Recognize the importance of planning Describe a planning and control system Understand the chase, level, hybrid and subcontracting strategy.

Customer Expectations: 

Customer Expectations Characteristics that provide value to the customer Price Quality Delivery Pre- and post-sale service Flexibility (product and volume) Other ________________________

Customer Expectations: 

Customer Expectations Order qualifiers: Competitive characteristics needed to be a viable competitor Order winners: Competitive characteristics that cause customers to choose that firm’s products and services

Customer Expectations: 

Customer Expectations Customer expectations may be based on price, quality, delivery, etc. To win orders, a supplier must have characteristics that encourage customer to choose its products -> order winner. Order winner may change over time and may different for different markets. Characteristic of order winner today may become order qualifier in the future.

Business Strategy: 

Business Strategy To meet customer expectations, a company must be market-oriented All functions in a business must support this concept Operations must be tuned to meet the needs of the marketplace

Company Objectives: 

Company Objectives Best customer service Lowest production costs Lowest inventory investment Lowest distribution costs Profit = Revenue – Expense Conflicting Objectives:

PowerPoint Presentation: 

Prepared by: Vincent Gaspersz 10 Four Main Objectives In Order To Get Most Profit Provide best customer service Provide lowest production costs Provide lowest inventory investment Provide lowest distribution costs

Lead Time: 

Lead Time Span of time required to perform a process —APICS Dictionary Delivery lead time: The time from the receipt of a customer order to the delivery of the product —APICS Dictionary

Manufacturing Strategy: 

Manufacturing Strategy Inventory Manufacture Assemble Ship Delivery Lead Time Purchase Manufacture Assemble Ship Make-to- Stock Make-to- Order Assemble- to-Order Delivery Lead Time Manufacture Assemble Inventory Ship Delivery Lead Time Manufacture Inventory Assemble Ship Delivery Lead Time Engineer-to- Order Design

Make-to-Order : 

Make-to-Order Firms make to order when: Goods are produced to customer specs. Customer is willing to wait till the order is being made. Product is expensive to make and store. Several product options are offered.

Make-to-Stock : 

Make-to-Stock Firms make to stock when: Demand is fairly constant and predictable. Few product options. Delivery times are much sorter than the time needed to make the product. Long shelf life.

Engineer –to-Order: 

Engineer –to-Order Firm engineer-to-order when:

Assemble-to-Order: 

Assemble-to-Order Firms assemble-to-order when:

Why Plan?: 

Why Plan? To satisfy customer demand, ensure the availability of resources Material Capacity Demand Resources

Priority-Capacity Relationship: 

Prepared by: Vincent Gaspersz 18 Priority-Capacity Relationship Priority (Demand) Capacity (Resources) Priority relates to what products are needed, how many are needed, and when they are needed. Manufacturing is responsible for devising plans to satisfy the market demand if possible. Capacity is the capability of manufacturing to produce goods and services. Eventually it depends on the resources of the company

A Good Planning and Control System: 

A Good Planning and Control System These are questions of priority and capacity.

Supply-Production-Distribution System: 

Prepared by: Vincent Gaspersz 20 Supply-Production-Distribution System S U P P L I E R Physical Supply MANUFACTURER Manufacturing Planning and Control (MPC) DISTRIBUTION SYSTEM C U S T O M E R Physical Distribution Flow of Products and Services Flow of Demand and Design Information

Supply Chain: 

Prepared by: Vincent Gaspersz 21 Supply Chain Customers Warehousing Transportation Vendors/plants/ports Transportation Factory Transportation Warehousing Transportation Information flows

Manufacturing Planning and Control Systems: 

Manufacturing Planning and Control Systems Production Planning Forecasting, MPS, MRP, Capacity Planning. Implementation and Control PAC and Purchasing. Inventory Management

Input to MPC: 

Input to MPC Product Descriptions. Source: BOM Process Specifications. Source: Routing. Time needed to performs operations. Source: Routing. Available Facilities and Resources. Source: Work center file/work center load file. Quantities Required. Source: Forecast, customer order and MRP.

Five Major Level for MPC: 

Five Major Level for MPC Business Plan Production (Sales and Operations Plan). MPS MRP Purchasing and PAC. Each differs in purpose, planning horizon, level of detail and planning cycle.

Five Major Level for MPC: 

Five Major Level for MPC At each level, there are three questions: What are the priorities? What capacity is available? How can differences be resolved? Figure adapted from CPIM Exam Content Manual, APICS, 1997

Strategic Business Plan: 

Strategic Business Plan Statement of the major goals and objectives the company expect to achieve. Planning horizon: 2-10 years. Level of detail: broad (markets, product lines, etc)

Production Plan: 

Production Plan Answered the questions for the quantity to produced, desired inventory level, resources needed, availability of the resources. Planning horizon: 6-18 months. Level of detail: not high (product groups/product families).

MPS: 

MPS Plan for production of individual end items. Planning horizon: 3-18 months. Level of detail: higher. Input to MPS: production plan, forecast for individual end items, sales order, current OH, existing capacity.

MRP: 

MRP Plan for the production and purchase of the components used in the making the items in MPS. Planning horizon: 1-18 months. Level of detail: High.

Purchasing and PAC: 

Purchasing and PAC Purchasing responsible for establishing and controlling the flow of raw materials into the factory. PAC responsible for planning and controlling the flow of work in the factory. Planning horizon: 1-30 days. Review: daily. Level of detail: high, concerned with individual components, order and work centers.

Sales and Operations Planning: 

Sales and Operations Planning The process that integrates all the plans for the business; customers, sales, marketing, development, manufacturing and financial. It is done once a month. It is reviewed by senior management at an aggregate (product family) level. The Purpose is to balance demand and supply.

Products Grouping: 

Products Grouping Grouping the products based on its similarity. It involves; manufacturing, sales and finances. For the planning of the capacity, it should be based on the similarity of manufacturing process .

Making the Production Plan: 

Making the Production Plan Production Planning…. : ... setting the overall levels of manufacturing output ... —APICS Dictionary …is concerned with: Planning for each product group Meeting desired inventory levels Determining resources needed Comparing with available resources

Production Planning - Basic Strategies: 

Production Planning - Basic Strategies Chase Level Subcontracting Hybrid

Chase : 

Chase

Chase: 

Chase Producing the amount demanded at any given time. Inventory levels remain stable. Productions will vary to meet the demand. Plus: inventories can be kept at minimum level. Minus: the cost of changing the productions level.

Level : 

Level

Level: 

Level Continually producing an amount equal to the average demand. Plus: the cost of changing the production level is less then chase. Minus: inventories will build up in the low seasons.

Subcontracting : 

Subcontracting Producing the level minimum demand and meet any additional demand through sub contracting. Plus: No excess capacity, level production. Minus: Cost of subcontracting is higher then normal cost.

Hybrid : 

Hybrid Combine strategy. Try to minimize all of the cost involved, while providing the level of service required.

Make to Stock Production Plan: 

Make to Stock Production Plan The information needed to develop a make-to-stock Production Plan: Forecast. Opening Inventory. Desired ending inventory. Past due customer order.

Make to Order Production Plan: 

Make to Order Production Plan The information needed to develop a make-to-stock Production Plan: Forecast. Opening Backlog. Desired Ending Backlog.

Level Productions Problems:: 

Level Productions Problems: Total production needed = total forecast demand + ending inventory – opening inventory = _____ + _____ – _____ = _____ units Example: Opening inventory = 50 units Desired ending inventory = 40 units Production each period = units Ending inventory for period 1 = opening inventory + production – forecast demand = _____ + _____ – ____ = _____ units

Chase Productions Problems:: 

Chase Productions Problems: Produce exactly what is needed each period Example: Cost of plan: $20 per unit to change production level Changing production level = 50 x $20 = $1,000 Inventory carrying cost = 0 Total cost of the plan = $1,000

PowerPoint Presentation: 

QUESTIONS/DISCUSSIONS?