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Advanced Solutions Concept

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October 17 - definition of business ... January 30 - special problems within the supply ... Source: Raad Consult, Studie 'SCM in der Chemischen Industrie' ... – PowerPoint PPT presentation

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Title: Advanced Solutions Concept


1
Logistical applications and optimizations
2
overview
Introduction
October 17 - definition of business processes
October 31 - overview of logistical business
processes
November 14 - functionality of purchase and
supply processes
December 05 - functionality of production
processes
December 19 - functionality of sales and
distribution processes
12th ?
January 30 - special problems within the supply
chain handling
3
Review on the last session
You have learned about business processes and
composed business process
  • You have seen the different types of business
    processes
  • supply chain business processes
  • logistical crossover business processes
  • business support processes
  • You have learned about procedures and tools to
  • analyse business processes
  • visualise business processes
  • document business processes
  • You have seen the needed components to implement
    an IT application system
  • customizing
  • master data management
  • user exits and modifications
  • You have learned
  • that translating business processes into IT
    application processes is a very challenging task
    which needs some experience
  • That process integration is an important factor
    for an optimal IT application system
  • Why to avoid individual developed interfaces if
    ever possible

4
About this lecture
All sessions are split into 2 blocks from 0830
to 1000 and from 1015 to 1145
Each session starts with a short review of the
last lectures subjects
Next I will give you a short theoretical overview
of the days subject
Next you probably will develop 3 different
subjects in a brainstorming session in 3 groups
Each group will then present the results of their
discussions
I will present theoretical explanations for the
discussed subjects
Then I will show a example solution for a
potential written test question
Finally I will give a summary of the key messages
for this session
5
overview
Introduction
October 17 - definition of business processes
October 31 - overview of logistical business
processes
November 14 - functionality of purchase and
supply processes
December 05 - functionality of production
processes
December 19 - functionality of sales and
distribution processes
12th ?
January 30 - special problems within the supply
chain handling
6
Overview of logistical processes
Part 1
Supply chain processes
Business support processes
Short break
Part 2
Logistical crossover processes
Applications tasks to assure process integration
7
Overview of logistical processes
Part 1
Supply chain processes
Business support processes
Short break
Part 2
Logistical crossover processes
Applications tasks to assure process integration
8
Overview of logistical processes, Part 1
Problems and potentials
  • Usage of SCM Tools in chemical industry (November
    2001)

none
considered
In use
planned
Source Raad Consult, Studie SCM in der
Chemischen Industrie, April 2002
9
Overview of logistical processes, Part 1
Problems and potentials
As a consequence many companies do not use the
potentials of an appropriate SCM
Very often suboptimal SCM processes are
implemented by the IT application system
10
Overview of logistical processes, Part 1
Learning targets
Understand the main component structure of a
supply chain application system
Understand the business support components, that
are needed in assistance to run a supply chain
application system
Understand the need for both external and
internal collaboration processes
Understand the important inputs and outputs of
each component
Understand the involved acting logical business
units
11
Overview of logistical processes
Part 1
Supply chain processes
Business support processes
Short break
Part 2
Logistical crossover processes
Applications tasks to assure process integration
12
Supply chain processes
Supply chain processes represent all main
logistical activities for creation of value
according to the business definition
13
Supply chain processes
14
Supply chain processes
Transfer Prices
15
Supply chain processes
Business support processes
Logistical crossover processes
Production planning and scheduling
Shipment and distribution
Sales
Purchasing
16
Core Business Processes and X-over Processes
CS
APS
MITO
BW

PTP purchase to pay
advanced Planning systems
FFG forecast to finished goods
chemistry services
material input to output
OTC order to cash
business information warehouse
AE - asset effectiveness
FAC finance accounting
core process
cross process
17
Supply chain processes
Sales and operations planning (SOP)
Sales order
Forecast
Purchase requirements
Materials requirements planning (MRP)
MRP lists
Conversion of planned orders
Planned order
release of production as process orders
MES
Production Papers
Actual production
Confirmation
Goods Receipt
Goods Issue
Time and Material
Production controlling
Distribution
18
Supply chain planning
Production
Distribution
Sale
Purchase
Supply Chain Cockpit
Monitor
Network Design (ND)
Demand Planning (DP)
Supply Network Planning (SNP)
Procurement Planning
Transport. Planning Vehicle Scheduling (TP/VS)
Production Planning Detailed Scheduling (PP/DS)
Distribution Planning Deployment
Global ATP
19
Supply chain planning
20
Supply chain planning model
External customer
Plant B
Plant C
External customer
Plant A
Internal customer
External customer
External customer
Plant E
Plant D
Supplier
Customer
Plant
External customer
21
From sequential supply chains...
2nd Supplier
Manufacturer
Retailer
1st Supplier
  • One-to-one Communication
  • Excessive Inventory (Bullwhip-Effect)
  • Manual Communication
  • Asynchronous Planning Cycles
  • Assumption bases Planning

22
.. to networked Supply Chains.
Transportation Exchange
Carrier
Customer
  • Collaboration
  • One-to-many Communication
  • Synchronous/asynchronous Communication
  • Synchronized Planning Cycles
  • Automated Decisions
  • Tracking and Tracing
  • Technological Openness

Retailer
1st Supplier
2 nd Supplier
Trade Exchange
23
Advantages of Collaboration
24
Overview of logistical processes
Part 1
Supply chain processes
Business support processes
Short break
Part 2
Logistical crossover processes
Applications tasks to assure process integration
25
Business support processes
Business Support Processes represent all non
logistical activities to support the main
logistical activities
Controlling
Budgeting
Invoicing
26
Business support processes, strategic planning
and reporting
Cluster Business Warehouse
Cluster B
Cluster C
Cluster D
Cluster A
ERP Systems





...
27
Practical part developing the subjects
  • Group A Please design the SC Model for
  • 4 Plants A,B,C,D
  • A, B, D have own Customers
  • C, B have own Suppliers
  • A supplies C and B, B supplies C and D
  • Please design as an sequential model
  • Please design as a network model
  • Group B Please design the SC Model for
  • 4 Plants A,B,C,D
  • A, C have own Customers
  • C, B, D have own Suppliers
  • A supplies C and B and D, C supplies B and D
  • Please design as an sequential model
  • Please design as a network model
  • you have 20 minutes for group discussion and
    writing down your ideas
  • afterwards each group has 5 minutes for the
    presentation of your ideas
  • your are free to use any presentation medium

28
Example solution for a potential test task, Part 1
  • design the SC model for
  • 4 Plants A,B,C,D
  • A, B, D have own Customers
  • A, C, B have own Suppliers
  • A supplies C and B, C and B supply D

Plant C
Plant D
Plant A
Plant B
29
Summary and key messages, Part 1
The SC components are sales, purchase, production
and distribution
SC planning processes effect all SC components
There are models and tools to describe SC
processes
SC networks are the basis for collaboration
Business support processes are mainly
calculation, budgeting and reporting
  • Literature
  • Stadtler, Kilger Supply chain management and
    advanced planning, Springer Verlag, Berlin
    Heidelberg, 2000
  • Dangelmaier, Busch (Hrsg.) (in german)
    Integriertes Supply Chain Management, Gabler
    Verlag, Wiesbaden, 5/2004

30
Overview of logistical processes
Part 1
Supply chain processes
Business support processes
Short break
Part 2
Logistical crossover processes
Applications tasks to assure process integration
31
Overview of logistical processes
Part 1
Supply chain processes
Business support processes
Short break
Part 2
Logistical crossover processes
Applications tasks to assure process integration
32
Overview of logistical processes, Part 2
Problems and potentials
There are many logistical processes, which do not
belong to the main SC processes, but effect all
those components
The integration of these components assure the
most effective use of the supply chain
Distribution of information in case of
disturbances is a challenge a high potential
33
Overview of logistical processes, Part 2
Learning targets
Understand the structure of logistical crossover
processes
Understand the applications tasks to assure
process integration
Understand the important inputs and outputs of
each component
Understand the involved acting logical business
units
34
Overview of logistical processes
Part 1
Supply chain processes
Business support processes
Short break
Part 2
Logistical crossover processes
Applications tasks to assure process integration
35
Logistical crossover processes
Logistical crossover business processes represent
all logistical activities to support the main
logistical activities
36
Quality management in the SC
Program and Project Management
Program Management
Project Planning
Project Execution
Interfaces
Life-Cycle Collaboration and Analytics
Design Collaboration
Collaborative Project Management
Quality Collaboration
Enterprise Portal Content
Analytics
Quality Management
Quality Improvement
Audit Management
Quality Control
Environment, Health and Safety
Basic Data and Tools
Product Safety
Hazardous Substance Management
Dangerous Goods Management
Waste Management
Industrial Hygiene and Safety
Occupational Health
37
Quality management in the SC
  • Q Info
  • Technical delivery terms and conditions
  • Inspection lots
  • Fault reports
  • In-process inspection
  • Batch classification
  • Quality control charts
  • Quality reports
  • Inspection lots/Delivery
  • Certificates
  • Customer reports
  • Service reports

38
Quality management reporting in the SC
  • Quality reports can be evaluated according to
    different criteria.
  • For instance, an overview of problems occurring
    with one material can be provided.
  • Questions such as what happened during production
    or have complaints been received from customers
    can be answered easily.

39
Quality management reporting in the SC
40
Sample management in the SC
41
Inspection orders in the SC
Outward stock movement
Goods receipt
Manually
Deadline monitoringbatch
Periodically
In-process
Create inspection lot
Print inspection instruction/labels
Record results
Usage decisionsubsequent action
42
R D in the supply chain
  • New products and processes are the driving force
    of the continued international competitiveness
  • A company can aim to win on lower overall cost or
    with differentiated products and services that
    can command a price premium
  • It is expected that by 2004 over 20 of sales are
    from new products, compared to only 13 in 1994
  • Innovation is
  • long-term driver of future financial performance
    and value creation
  • provides business opportunities as well as the
    sustainable foundation for continued growth
  • can lead to shifts in relative cost relationships
    as well as provide sustained competitive
    advantages

43
R D in the supply chain
A manufacturer of chemicals has to
gt
comply with the respective laws
be able to provide seamless information about the
properties of the products that leaves no room
for doubt
gt
provide foresighted information about handling
gt
gt
take preventive action against emergencies
have clearly structured development routines,
production procedures and supply chains
gt
44
R D in the supply chain
Regarding RD, the product life cycle management
consists of
Strategic RD planning
Phases
Operational RD handling
Compliance of RD requirements in the running
system
45
R D in the supply chain
Requirements for an Operational RD handling
gt
RD handling is more than writing down structures
and recipies
IT support of the total actual RD process
gt
gt
Document the results of the RD activities
gt
Implementation of subsequent settings in the ERP
environment
46
Overview of logistical processes
Part 1
Supply chain processes
Business support processes
Short break
Part 2
Logistical crossover processes
Applications tasks to assure process integration
47
Applications tasks to assure process integration
Lacking exchange of information is one of the
main problems, why business processes do not run
optimal. Very often you will find human factors
as a reason
JIT manufacturing and outsourcing are creating
many more shipments to a wider variety of
destinations. The likelihood of breakdowns
increases.
48
Applications tasks to assure process integration
  • Which logistical consequences emerge through a
    missing Process integration?
  • ? Work Arounds
  • ? Badly designed Process flows
  • ? Additional Manual effort for coordination
  • Which costs arise through a missing Process
    integration?
  • ? Costs for individual Interfaces
  • ? Costs for necessary modifications
  • What should already be considered during a
    project planning ?
  • ? Cost analysis for the Process Integration
  • ? Detailed functional Process analysis
  • ? Preliminary Study

49
Applications tasks to assure process integration
  • Process Integration is surely not given by
    creating interfaces between individual solutions
    afterwards, Process Integration is part of the
    System planning process
  • Process Integration is more than a try to connect
    two different Plugs,
  • but rather a complex Challenge where the
    interactive details of a lot of components have
    to be identified and where the following
    implementation has to be kept in mind

50
What is Supply Chain Event Management (SCEM)?
  • SCEM is a solution to
  • MONITOR and CONTROL
  • Supply Chain Processes.
  • It enables to react to events
  • immediately,
  • over heterogenious systems,
  • over company boundaries.

51
What is Supply Chain Event Management (SCEM)?
  • SC Event Management consists of four steps
  • Define Event Profiles for business processes
  • Monitor Event Messages
  • Notify Actual and coming Problems by As-Is
    Comparison
  • Control by manual Interference, automatically,
  • SAP AG 2001, SCEM, Andreas Otto 51

52
Summary and key messages, Part 2
QM and material management are the most important
crossover processes
Distribution of information in case of
disturbances is an important success factor
A supply chain event manager (SCEM) is urgently
recommended for an optimal SC organisation
  • Literature
  • Stadtler, Kilger Supply chain management and
    advanced planning, Springer Verlag, Berlin
    Heidelberg, 2000
  • Dangelmaier, Busch (Hrsg.) (in german)
    Integriertes Supply Chain Management, Gabler
    Verlag, Wiesbaden, 5/2004

53
Thank you very much for your participation
and see you on friday, 14th of November
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