Foundations of Global Supply Chain Management :Foundations of Global Supply Chain Management


Building Blocks of Supply Chain Management :Building Blocks of Supply Chain Management INDIAN INSTITUTE OF SCIENCE Bangalore – 560 012 hari@csa.iisc.ernet.in Foundations of Global Supply Chain Management September 27, 2003


Enterprise :Enterprise Network of independent companies possibly in different geographical locations forming a strategic alliance toward the common goal of designing, manufacturing and delivering right quality products/services to customers Functional perspective Process perspective


Slide 4:Functional and Process Perspective ORDER - TO - DELIVERY PROCESS SUPPLY CHAIN PROCESS Procurement Distribution Manufacturing Logistics


Business Process :Business Process A structured, measured set of activities ordered in time and space, designed to produce a customer desired output. A business process could be decomposed into several other business processes. Business Process Macro Micro SCP ODP NPDP CRM Process Order Mgmt Answering a query from a customer Checking the credit history of customer


Supply Chain Process :Supply Chain Process Integrated , coordinated network of value delivering business processes that procure raw materials, transform them into final products, services and delivers the product to the customers Procurement Manufacturing/assembly Inbound logistics Warehousing Distribution Outbound logistics


Why study Supply Chains ? :Why study Supply Chains ? Supply chains are ubiquitous: you could consider every product or service to have its own supply chain. Companies world-wide are spending trillions of rupees on SCM Backbone of E-business Wholesome mix of industrial engineering, mathematics, computer science, and management


Examples of Supply Chains in India :Examples of Supply Chains in India Automotive - Telco, ALL, Mahindra, Maruti Aerospace - ADA, HAL Chemicals - Asian Paints, Apollo tyres, Reliance Apparel - Madura Coats, Reliance Food - Cadbury, Parle, Amul Products, HLL Consumer durables - HLL, P & G Forest Products - Papermills Construction - L & T Pharmaceutical - Ranbaxy, Glaxo Electromechanical – Kirloskar, L & T Tooling - HMT, Widia, Mico PC/ Computer - IBM, WIPRO, HCL, Intel


Supply Chain Building Blocks :Supply Chain Building Blocks Structural Logical IT / ITEC Informational


Structural Building Blocks :Structural Building Blocks Suppliers Manufacturing / Assembly Plants Warehouses Distribution Centers Retailers / Customers Logistics Network Inbound Outbound Customers Orders


Slide 11:Example of a Typical Supply Chain: IBM Europe PC Supply Chain


Slide 12:Logical Building Blocks OPERATIONAL TACTICAL STRATEGIC Procurement Distribution Manufacturing Logistics Logistics


Slide 13:Order/ Product Flow through Supply Chain Functions Order Management Channel A Channel B Customer Channel C Product Distribution Manufacturing Demand Planning Supply Planning Part Supply Orders Demand Forecast Component Requirement Parts Production Plans Products Products Orders Products Products Orders Orders


Examples of Decisions :Examples of Decisions Supplier Selection (Tactical) Plant Location (Strategic) Product Line Selection (Strat) Inventory Control (Tactical) Production Scheduling (Ops) Dynamic routing (Ops) MTO vs MTS vs BTO (Str)


Mathematical Models :Mathematical Models Optimization Models (LP, ILP, MILP, CO, DP) Stochastic Models (Markov chains, Queuing networks, etc.) Statistical Models Game Theory Simulation Machine learning Auctions and Mechanism Design


Information Building Blocks :Information Building Blocks IT : MRP, ERP, EDI Internet Technologies Sensor Networks E-Commerce, E-Markets E-CRM Decision Support Software Standards


Key Problem in SCM :Key Problem in SCM Design a supply chain network that delivers high quality products to the right customers at the right time at minimum cost


Foundations of Global SCM :Foundations of Global SCM This one day workshop will introduce to you the important concepts and issues involved in successful design and operation of supply chain networks


What is Coming…. :What is Coming…. Srinivas Raghavan - Dynamics Dinesh Garg - Planning Mathirajan - Logistics Shyam Bhaskar – Best Practices Kameshwaran – E-Markets Chandrashekar - Procurement Visvanathan - SCM Automation Narahari Y– What Next?


What Next? Books on SCM: :What Next? Books on SCM: Sunil Chopra and Peter Meindl. Supply Chain Management: Strategy, Planning, and Operation. Pearson Education Asia, 2001. David Simchi Levi, P. Kaminsky, and Edith Simchi Levi, Designing and Managing the Supply Chain, Irwin-McGrawHill, 2000 W.J. Hopp and M.L. Spearman. Factory Physics: Foundations of Manufacturing Management, Irwin-McGrawHill, 1996 N. Viswanadham . Analysis and Design of Manufacturing Enterprises, Kluwer, 2000 N. Viswanadham and Y. Narahari. Performance Modeling of Automated Manuafacturing Systems, Prentice Hall, 1992


What Next? Papers on SCM :What Next? Papers on SCM Journals such as Interfaces, Operations Research, Management Science, European Journal of Operational Research Websites such as www.amrresearch.com Our own website: http://lcm.csa.iisc.ernet.in/scm/scm.html http://lcm.csa.iisc.ernet.in/workshop/index.html


What Next? Contact any of us: :What Next? Contact any of us: Narahari hari@csa.iisc.ernet.in Raghavan raghavan@mgmt Mathirajan msdmathi@mgmt Shyam Bhaskar shyam_bhaskar@dell.com Kameshwaran kameshn@csa Chandrashekar chandra@csa Dinesh Garg garg@csa Visvanathan vkvisva@hotmail.com


What Next? :What Next? Start working in SCM ….. Wish you all the very best …. See you again very soon …. December 15th and 16th, 2003 International Workshop on IT Enabled Manufacturing, Logistics, and SCM