Supply Chain Management Lecturing SS 2011 - PowerPoint PPT Presentation


Title: Supply Chain Management Lecturing SS 2011


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Supply Chain ManagementLecturing SS 2011
  • helmut.merkel_at_prologue-asia-pacific.com

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Supply Chain Management
  • Why Supply Chain Management ?
  • 1.1. Learning Curve Concept
  • 1.2 Innovation
  • 1.3 Specialization, Globalization, Cooperation
  • 2. Supply Chain Model
  • SCOR, DCOR, CCOR of the International Supply
    Chain Council
  • 3. Communication Architectures
  • 3.1 The Marathon Principle
  • 3.2 The Domino Principle
  • 3.3 The Shared Information Principle
  • 3.4 The Architecture behind
  • Design Principles
  • 4.1 Vision of the entire Process Chain
  • 4.2 Company overlapping Process Design (Vision
    of the entire Process Chain)
  • 4.3 Decision Making - Feedback Loops as basic
    Process Elements
  • 4.4 Self-Similarity the Formula for Growth
  • 4.5 Shared Information Communication
    Architecture
  • 4.6.Central- or decentralized control of Supply
    Chains ?

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Supply Chain Management (2)
  • Implementation
  • 5.1. Top Down Approach
  • 5.2 Business Re-engeneering
  • 5.3 Aris Business Process Modelling
  • 5.4 Business Process Modelling and Project
  • Management
  • Total Cost of Ownership
  • 6.1 How to calculate Implementation Projects ?
  • 6.2 Cost Curve Models
  • 6.3 Total Cost of Ownership Approach

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1. Why Supply Chain Management
1.1. Learning Curve Concept 1.2 Innovation
1.3 Specialization, Globalization, Cooperation
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1.1 The Learning Curve Model
In competition an individual company has to
proof its advanced learning curve, which leads to
competitive advantages, before at all to improved
Total Costs per Unit (Gesamtstückkosten)
costs per unit (c/u)
Unit price (1)
Unit price (2)
Company B
Company A
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Accumulated Volume
Output(0)
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1.1 The Learning Curve Model
costs per unit (c/u)
Accumulated Output Volume
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in the real world, many things can be changed
Costs per Unit
Transaction Costs
Total Costs per Unit
Innovation
Re-Engineering
Specialization
Globalization
Horizontal Cooperation
in Theory !
Vertical Cooperation
-
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1.3 Innovation is Change - How does Change
work ?
Product Innovation, Business Model Innovation,
Process Innovation and Infrastructural Innovation
impact each other Costs per unit (c/u) can be
significantly impacted byInnovation the
learning curve model shows the details Innovation
also triggers Productivity and Structure
i.e. productivity advantages and structural
advantages
Innovation
Structural Change (horizontal and vertical
Cooperation)
(Re-Engineering, Specialization, Globalization)
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1.2 Innovation is Change the destructive
power in the struggle for the better
Innovation in 1870 (Schumpeter)
  • - Introduction of a new product or a new quality
    of an existing product
  • - Implementation of a new production system in an
    industry (to improve costs per unit (cpu))
  • - A new sales-/distribution channel
  • Discovery of a new source for raw material or
    product components
  • Implementation of a new organization

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1.2 Innovation is Change - How does Change
work ?
Business Modell
Business Process
Systems/Infrastructure
Strategy
Operations
Tactics
Business Model
Business Model
Business
Process
Business
Process
Systems/Infrastructure
Systems/Infrastructure
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1.2 Innovation is Change - How does Change
work ?
Business Model
Process Model
Process Model
Systems/ Infrastructure
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1.2 Innovation is Change - How does Change
work ?
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1.3 Innovation is Change - How does Change
work ?
Idea
Product Innovation
Idea
Idea
Process Innovation
Systems Innovation
Idea
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1.3 Innovation reduces Costs per Unit
Innovation
c/u
The assumption, c/u are shifted in parallel,
implies the same process integration level.
change of the transaction costs posssible
Innovation lowers c/u
Accumulated Volume
Same Volume
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1.3 Innovation is Change - How does Change
work ?
In economies with an increasing degree of
specialization, communications and logistics
transactions are rapidly growing. Infrastructure
ports, airports, highways telecommunication and
education are becoming key success factors in an
economy.
Additional elements, additional relations
The car manufacturers reduced their own share of
production from 70 in 1970 to only 17 in 2005
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1.3 Specialization lowers the Costs per Unit
Specialization/Division of Labor (sharing of work)
Cost per unit c/u
The assumption, c/u and transaction costs are
shifted in parallel, implies the same process
integration level.
Supply Chain Management has to control
Transaction Costs. The increase in Transaction
costs must be lower then the decrease of the
Costs per Unit.
Sepicialization reduces C/U
but increases transaction costs
Accumulated Output
Same output
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1.3 Globalization lowers the Costs per Unit
Globalization
Cost per unit c/u
The assumption, c/u and transaction costs are
shifted in parallel, implies the same process
integration level.
Supply Chain Management has to control
Transaction Costs. The increase in Transaction
costs must be lower then the decrease of the
Costs per Unit.
Globalization reduces C/U
but increases transaction costs
Accumulated Output
Same output
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1.3 Horizontal Cooperation lowers the Costs per
Unit
(horizontal) Cooperation/Concentration
Cost per unit c/u
The assumption, c/u and transaction costs are
shifted in parallel, implies the same process
integration level.
but increases transaction costs
Supply Chain Management has to control
Transaction Costs. The increase in Transaction
costs must be lower then the decrease of the
Costs per Unit.
Cooperation reduces C/U
Accumulated Output
Increasing Output
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1.3 Vertical Cooperation changes Transaction
Costs
(vertical) Cooperation/Concentration
Cost per unit c/u
The assumption, c/u and transaction costs are
shifted in parallel, imply a higher process
integration level.
Supply Chain Management has to control
Transaction Costs. The decrease in Transaction
costs will lower the overall Costs per Unit.
but decreases transaction costs
Accumulated Output
Same Output
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2. Supply Chain Model
The leading Supply Chain Reference Model from
the international Supply Chain Council,
2005-2007 SCOR DCOR and CCOR
What is a Supply Chain ?
A supply chain is a well organized Process to
serve and supply a specific market, using
global resources and global logistics
infrastructure, IT systems, human skills etc.
Competition in all markets force companies to
develop time to market advantages, flexibility
abilities as well as competitive Costs per Unit
(Stückkosten).
The Supply Chain Operations Reference Model
(source Supply Chain Council, 2005a)
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2. Supply Chain Model
Vision of the entire Process Chain Push
SCOR/TOGAF
The Supply Chain Operations Reference Model
(source Supply Chain Council, 2005a)
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2. Supply Chain Model
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2. Supply Chain Model
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2. Supply Chain Model
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2. Supply Chain Model
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2. Supply Chain Model
  1. Design Process
  2. Product Development
  3. Sampling
  4. Order placement
  5. Inline Production
  6. Packaging
  7. Sourcing
  8. Consolidation
  9. Quality Checks
  10. Booking
  11. Document Handling
  12. Transportation
  13. Importmanagement
  14. Haulage
  15. Distribution Centre/Crossdock
  16. Distribution
  17. Storelogistics

Focus Product Management
Overlapping processes not covered
!!! Supplier/Vendor Management Quality
Management Risc Management (ISO 28000) Finance
missing
Focus Buying, Sourcing
Focus Logistics, Supply Chain Management
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3. Communication Architectures 3.1 Marathon
Principle 3.2 Domino Principle 3.3 Shared
Information Principle 3.4 The Architecture
behind
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3. Communication Architectures
What is a Supply Chain ?
A supply chain is a well organized Process to
serve and supply a specific market, using
global resources and global logistics
infrastructure, IT systems, human skills etc.
Competition in all markets force companies to
develop time to market advantages as well as
cost per unit (Stückkosten) advantages.
The key to gain time and cost advantages is the
Process Design of a Supply Chain. The key of
Process Design is the Communication
Architecture. The Communication Achitecture
describes how regular communication between
hundreds of participants of a Supply Chain is
organized. How are order information forwarded
? Who has actual information ? How are Exceptions
(Alerts) organized etc. ?
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3. Communication Architectures
3.1 Marathon Principle Trigger concept
Phidippides or Pheidippides (or Philippides) 570
bC., when the Persians (Darius I) landed at
Marathon, was send by the Athenians to Sparta as
fast as possible he can, to ask for help. The
Spartans said that they will help after the moon
was full (probably in order to let the Athenians
alone with the Persians and not only for
religious reasons). Phidippides came back running
the 147 miles distance with the disappointing
news for the Athenians. Phidippides then returned
to Marathon in time to fight in the battle. He
was ordered to run to Athens to bring the news of
victory. In one week he had to run more than 300
miles.
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3. Communication Architectures
3.2 The Domino- or Chinese Wall Principle
221 bC, Qin Shi Huang completed the first part of
the Chinese wall, to protect Zhong Guo against
the Barbarians. Whenever the wall was attacked, a
fire was set up on the nearest watch tower and
all other watch towers followed to do the same.
So the message of an attack was much faster then
a messenger.
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3.2 The Domino Principle
Even in 2010, many companies organize their
process after the Domino Principle
Product Mgmt
Manufacturer
Agent
Pier to Pier Information flow (Domino Principle)
Distribution Centre
Store
Consolidation Hub
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3. 2 The Domino Principle
Even in 2010, many companies organize their BPR
after the Domino Principle
Buying
Agent
Vendor
Manufacturer
Forwarding Agent
Carrier
Holage Agent
Price competition, Time Pressure, Need for
Flexibility the Domino Principle is obsolete
QC
Cross Docking
Store
Sales
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3.3 Shared Information Principle
This principle was developed by nature. All
geese watch the top goose ahead and not their
direct predecessor. What would happen, if they
all follow only their direct predecessor ?
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3.3 The Shared Information Principle
Information in advance (Shared Information
Services) saves time, costs and increases
flexibility of all involved parties
... Same process structure for QC, AZO etc.
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3.3 The Shared Information Principle
Paradigm Shift The Shared Information Principle
QC
WWW Database
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3. Communication Architectures
3.4 The Architecture behind 3.4.1 Feed back
loop Model, Feed forward Model, Growth Model
Definition of System, Structure, Behavior
(Performance), Process, Second order System
3.4.2 Connecting Feed back loop Models as a
Domino Chain 3.4.3 Connecting Feed back loop
Models with a Shared
Information Hub 3.4.4 Exchanging Capacity
Information 3.4.5 Matching goals 3.4.6
Merging loops to avoid redundant functions 3.4.7
Forced self-similarity
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3.4 The Architecture behind
3.4.1 Feed-back-loop Model (first order, linear
system)
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3.4 The Architecture behind
3.4.1 Feed-back-loop Model (first order, linear
system)
Manage
Plan
Control
Control
Feed Back
Feed Back
Manage
Plan
Plan
Control
Feed Back
Manage
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3.4 The Architecture behind
The es are elements, the rs are relations.
Relations are connecting elements. Elements
perform Functions. Relations can be
information-, energy-, materials- moneyflow etc.
The Structure of a system is a frozen picture of
all elements and connections in a one moment.
Behavior of a system is the measurable
performance of a system during a period of time.
All Systems serve a purpose they are following
a target. A target can have several sub-targets.
In nature the central target of a system is
survival, and improving living conditions.
Living conditions can only be improved, if the
usage of the systems resources is efficient.
To follow a target, systems use the Functions of
their elements. Using the functions, is using up
limited resources. The limitation of resources
determines the capacity of an element.
In order to reach a specific target (sub-target),
the usage of the functions has to be
coordinated. Coordination means, to organize the
sequential or parallel use of all functions (i.e.
resources) efficiently.
Efficient means to reach a given target with a
minimum use of resources or to reach the best
level (maximum) of a target with given resources.
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3.4 The Architecture behind
Performance of a system is the measurable
behavior of a system during a period of time.
Performance has to be defined in relation to the
given targets. If the target is a quantity, for
example efficient production of 1000 units in
one month, an adequate performance measuring
would focus on the progress of production during
the period of time and on the cost level to
measure efficiency. Performance measurement
can be a complex task, because sub-targets have
to be measured and the functions of many
elements have to be observed. Therefore we use so
called KPI Systems. An intelligent set of all
Key Performance Indicators.
Process is an expression, which is widely used
in all areas of Science and Practice. We define
Process as System. A Process is a System .
  • Live systems in Nature have five basic process
    patterns
  • All processes to build up a living infrastructure
  • All processes to maintain survival levels
  • All processes to expand living conditions for
    growing populataions
  • All processes to overcome emergency (Exceptions)
    situations
  • All processes to recover and come back to normal
    survival levels

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3.4 The Architecture behind
Feed Forward Model (Steuerung)
Manage
Feed Back, after the entire process is
completed
Target Fill the bucket with 1 l water ! There
is no water in the bucket now.
Manage
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3.4 The Architecture behind
Growth
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3.4 The Architecture behind
Second order system
A Supply Chain is at least a second order
system or a higher order system. The self
similar loops represent legal independent
companies, with intedpendent goals/targets and
non transparent capacities for the participants.
From a birds perspective, there are multiple
redundant functions (like planning/decision
making). The communication between the different
loops is Domino like Every loop puts a
Purchase Order (PO) to the predecessor loop. The
predecessor is delivering what is requested in
the PO, according to the terms of the PO.
According to the terms, the payment is arranged
after the same terms.
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3.4 The Architecture behind
3.4.2 Connecting Feed back loop Models as a
Domino Chain
A Value Chain as higher order system with Domino
connected decision loops is not efficient The
Inefficiency is Delta R, Ressources and Detlat
T, Time
This (delayed) behavior results from the design
of the communication architecture
What are the natural reasons of R and T delays
in the real world
R
The mathematics behind is a (linear)
differential equation model of higher order
T
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3.4 The Architecture behind
3.4.2 Connecting Feed back loop Models as a
Domino Chain
The reasons for Inefficiency in Domino
connected Supply Chains are
  • - No exchange of capacity information/restrictio
    ns (walking bottle neck)
  • No procedure to match goals
  • No exchange of information about critical
    process situations (exception management)
  • Redundant functions
  • No forced self-similarity

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3.4 The Architecture behind
3.4.2 Connecting Feed back loop Models as a
Domino Chain
Non synchronized capacity of Ressources
bottle-necks (Oliver Wight)
MRP, MRP II, ERP, SC(R)M
Non synchronized goals or targets
Redundancy of Functions
Reduce Complexity merge Loops
(Bullwhip-Effekt)
Consequent closed-loop Architecture self-similarit
y
Lacking control of critical Developments
missing feedback links
Quality of Information
Standardization
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3.4 The Architecture behind
3.4.3 Connecting Feed back loop Models with a
Shared Information Hub
only the Shared Information Architecture
allows an efficient operation
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3.4 The Architecture behind
3.4.3 Connecting Feed back loop Models with a
Shared Information Hub
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3.4 The Architecture behind
3.4.6 Merging loops to avoid redundant functions
In Supply Chains the successors and predecessors
can agree to merge multiple functions to avoid
redundancy
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3.4 The Architecture behind
3.4.7 Forced self similarity
The Process Design is following the control
loop principles, which is supported by adequate
Systems infrastructure (IT-Systems, Logistics)
Strategy
Operations
Tactics
Business Modell
Business Process
Systems/Infrastructure
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3.4 The Architecture behind
3.4.7 Forced self similarity
Self-Similarity is a key principle in nature and
allows a structure to grow systematically i.e.
with high producitivity
52
3.4 The Architecture behind
3.4.7 Forced self similarity
Business Models/Process Models are decision
process loops with high level Self-Similarity
Plan
Control
Feed Back
Manage
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4. Design Principles
4.1 Design Principles as elements of an SCM
Architecture 4.2 Vision of the entire Process
Chain 4.3 Company overlapping Process Design
(Vision of the entire Process Chain 4.4 Decision
Making - Feedback Loops as basic
Process Elements 4.5 Self-Similarity the
Formula for Growth 4.6 Shared Information
Communication Architecture 4.7.Central- or
decentralized control of Supply Chains ?
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4. Design Principles
4.1 Design Principles as elements of an SCM
Architecture
Vitruvius, 30BC collected all knowledge of Greek
and Roman architecture in 10 volumes. The word
civil engineer is developed from his works. The
word module can be found there. Unfortunately
there is not such a fundamental work How to
construct a Supply Chain
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4. Design Principles
4.1 Design Principles as elements of an SCM
Architecture
An Architecture is a design plan. In this
design plan, the Architect is figuring out his
idea, how to carry out the order. The order he
is requested to carry out can be a school
building, a temple or such a nice arch. The
purpose of the building determines the process
how to use the building or the Arch The
Architect has to study the purpose to define the
needed functions ( of the structural elements)
of the intended building or object. In the past
functions (i.e. functions of the structural
elements) were used to identify the tasks. Today
we also study the process in parallel, which is
using the structural elements (i.e. the
performance or behavior of a process). For the
needed functions the Architect has to know and
to consider for which capacity and/or size
dimensions his design has to go. To seize the
capacity and/or dimensions,
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4. Design Principles
4.1 Design Principles as elements of an SCM
Architecture
the Architect has to simulate all overlaying
processes, in which the functions are used, in
order to identify bottlenecks. As a lesson from
the past, today we develop a picture of the
needed and possible processes in parallel, to
verify the functions and even to identify missing
functions (i.e. structural elements). All these
details are put together in construction plan
which is the mathematial proof of stability under
even heavy process performance of the planned
functions. Furthermore he has to study the
location and the environment where the building
will be located. The Architect will complete a
visual draft of the building/object as a first
step, showing the figuration/shape which serves
the purpose and showing, how the functions can be
used in all overlaying processes.
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4. Design Principles
4.1 Design Principles as elements of an SCM
Architecture
Today and centuries ago, the design plans for the
same purpose would be completely different. The
use of light, energy, water, heating,
aircondition, the use of materials (stone, wood,
iron, artificial materials etc. are completely
different. Security requirements (emergency exits
f.e.), fire prevention, service and disposal
aspects, washrooms, lifts etc. are also
completely different. Every period of time had
its own design principles which reflect the art
expression and (architectural) knowledge of the
sciences of the related period. Even for
hundreds of centuries, the architecture of a
building can be traced back. All details, even
mathematics of the construction plans are still
known. We also still know the project and
execution plans of famous buildings. For sure
there also many secrets, we only re-discover step
by step.
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4. Design Principles
  • The architecture for a global supply chain is not
    obvious there is no documented history. IT
    Technology, which is driving the Design
    principles developed tremendously within the last
    50 years. There are also no proven project plans,
    which could help to implement a global supply
    chain.
  • Therefore we have to think about design
    principles of Supply Chains for the current time.
    In analogy, we define Design Principles
  • Integrity and Vision of an entire Supply Chain
    (Process)
  • Company overlapping processes
  • Definition of the structural Elements
  • Self Similar Organization of the entire Supply
    Chain
  • Shared Information as Communication Architecture
  • Centralized/decentralized management of the
    Supply Chain

4.1 Design Principles as elements of an SCM
Architecture
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4.2 Integrity and Vision of the entire Process
Chain
4.2.1 MRP (Materials Requirement Planning)
4.2.2 MRP II (Manufcaturing Ressource Planning)
4.2.3 ERP (Enterprise Ressource Planning)
4.2.3 SCRM (Supply Chain Ressource Management)
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4.2 Integrity and Vision of the entire Process
Chain (MRP Materials requirement
Planning)
- No Feedbacks, - No Ressource plan
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4.2 Integrity and Vision of the entire Process
Chain (MRP Materials requirement
Planning - Phase II)
No Resource Plan
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4.2 Integrity and Vision of the entire Process
Chain (MRP Materials requirement
Planning - Phase III)
63
4.2 Integrity and Vision of the entire Process
Chain (MRP II / ERP Manufacturing
Ressource Planning/Enterprise Ressource Planning
ERP)
Simulation
64
4.2 Integrity and Vision of the entire Process
Chain (MRP II/ERP Manufacturing
Enterprise Ressource Planning)
65
4.2 Integrity and Vision of the entire Process
Chain (SCRM - Supply Chain Ressource
Management )
Ressources Guidelines Manuals
Order Network
66
4.2 Integrity and Vision of the entire Process
Chain The entire Process View of SAP ERP
2.0
  1. Design Process
  2. Product Development
  3. Sampling
  4. Order placement
  5. Inline Production
  6. Packaging
  7. Sourcing
  8. Consolidation
  9. Quality Checks
  10. Booking
  11. Document Handling
  12. Transportation
  13. Importmanagement
  14. Haulage
  15. Distribution Centre/Crossdock
  16. Distribution
  17. Storelogistics

Focus Product Management
Overlapping processes not covered
!!! Supplier/Vendor Management Quality
Management Risc Management (ISO 28000)
Focus Buying, Sourcing
Focus Logistics, Supply Chain Management
67
4.2 Integrity and Vision of the entire Process
Chain Retail Loop
1
1
Strategic Marketing Demand Plan
Strategic Marketing Sales Plan
2
3
2
3
4
Buying Plan
Vendor
Strategic Buying
Buying Plan
Manufacturers, Vendors
Strategic Buying
0
5
4
0
5
4
Master data
Master Data
SCM
Sourcing, Direct Distribution
Consolidation Sea-/Air, Haulage
Procurement, Purchase Order (PO) Management
6
7
8
6
7
8
Cross Docking Distribution
Sales
Merchandise Flow Control
Warehousing Distribution
Stores Sale (POS)
Merchandise Flow Control
Administrations Process (HR, Finance etc.)
Administrations Process (HR, Finance, etc.)
68
4.2 Integrity and Vision of the entire Process
Company overlapping Process Design highly
integrated
G
Understand, Plan
B
D
E
Control
Feed Back
B
A
C
Manage Buy/Source, Move, Sell, Pay
F
69
4.3 Integrity and Vision of the entire Process
Company overlapping Process Design highly
integrated
Company 1
Business Model
Geschäfts- prozesse
Company overlapping Business Process
Informations- systeme
Company overlapping Systems (IT-/Logistics)
  • Integrated process links need standardized,
    integrated systems links
  • Integrated systems links have impacts on business
    models

70
4.4 Structual Elements Decision Making Process
Feed-back-loop Model
Plan
Control
Feed Back
Manage
Plan
Control
Feed Back
Manage
71
4.5 Self-Similarity
Self-Similarity is a key principle in nature and
allows a structure to grow systematically i.e.
with high producitivity
72
4.5 Self Similarity
Business Models/Process Models are decision
process loops with high level Self-Similarity
Plan
Control
Feed Back
Manage
73
4.6 Paradigm Shift The Shared Information
Communication Architecture
Shared Information Services
QC
WWW Database
74
4.7 Central- or decentralized control of Supply
Chains ? Summary Centralized and
decentralized control/behavior
Elements of an Supply Chain Management rule-set
(Regelwerk), which allows cooperative and
individual behavior at the same time
  • All process participants follow their individual
    business ideas, business models and process
    models such as MRP, MRPII, ERP etc.
  • All process participants acknowledge instructions
    from their predecessors in the process chain
    (domino) by orders/contracts which are
    legally binding.
  • One Party (retailer or brand) normally takes
    initiative to use its power to lead the whole
    supply chain by instructions or sets of rules
    (Ordnungsinformationen).
  • A company overlapping communication
    infrastructure (Shared Information) is
    established, all process participants are asked
    to
  • - share information about targets
  • - share information about actual stati,
  • - eliminate redundant functions,
  • - match ressources and capacities to avoid
    bottle necks
  • 5. All process participants accept the rule of
    immediate response and update about their own
    activities with accurate information to the
    Shared Information Hub

75
5. Implementation
5.1. Top Down Approach 5.2 Business
Re-engeneering 5.3 Aris Business Process
Modelling 5.4 Business Process Modelling and
Project Management
76
5. How is Change going to be implemented in
Companies
Case-Study Company A B decide to implement a
new Business Model. To implement the new Business
Model, the companies decide to share resources A
new Process Model needs to be implemented. The
needed Infrastructure will be shared.
Company B
Company A
77
5. How is Change going to be implemented in
Companies
Company A B decide to implement a new Business
Model. To implement the new Business Model, the
companies decide to share resources A new
Process Model needs to be implemented. The needed
Infrastructure will be shared.
Company B
Company A
1. A Project Team as a temporary organization
will organize/ Implement Change
78
5. How is Change going to be implemented in
Companies
Company A B decide to implement a new Business
Model. To implement the new Business Model, the
companies decide to share resources A new
Process Model needs to be implemented. The needed
Infrastructure will be shared.
Company B
Company A
The Project Team will design the new Business
Process along the six Design Principles Vision
of the entire Process, Company overlapping.
2.
79
5. How is Change going to be implemented in
Companies
Implementation Model
3. Design Implementation follows a top
down Approach
buttom up Workshop or Prototype Approach
Change
80
5. How is Change going to be implemented in
Companies
Implementation Model
Project Management
BPR Design Implementation
Strategy
Operations
Tactics
Team, Role, Objectives Expected Results
(Documents), As-Is Results, Ressources, Time
Team, Role, Objectives Expected Results
(Documents), As-Is Results, Ressources, Time
Team, Role, Objectives Expected Results
(Documents), As-Is Results, Ressources, Time
4. Design Implementation follows a six phases
learning process
81
5. How is Change going to be implemented in
Companies
5. Many different BPR DesignImplementation
(Re-Engineering) Models
BPR The Surest Way to the Top (source Muthu,
Whitman and Cheragi, 1999, Figure 1)
82
6.2 Cost Curve Models
83
6.2 Cost Curve Models
84
5. How is Change going to be implemented in
Companies
BPR Re-Engineering
The ARIS House of Business Engineering (source
Scheer, 1999b p 56 Figure 24)
85
Business Process Modelling (BPM) Source Zhou,
Vera
86
  • Total Cost of Ownership
  • 6.1 How to calculate Costs of Implementation
    (COI) ?
  • 6.2 Cost Curve Models
  • 6.3 Total Cost of Ownership (TCO) Approach

87
6.1 How to calculate Costs of Implementation
(COI)?
88
6.1 How to calculate Costs of Implementation
(COI)?
89
6.1 How to calculate Costs of Implementation
(COI)?
90
6.1 How to calculate Costs of Implementation ?
91
6.1 How to calculate Costs of Implementation
(COI)?
92
6.2 Cost of Implementation (COI)
93
6.2 Cost Curve Models
94
6.3 Total Cost of Ownership Approach
95
6.3 Total Cost of Ownership Approach
96
Backup
Supply-Chain Management Systemtheorie
97
Beispiel für ein zielsuchendes System
  • Struktur,
  • Beziehungen,
  • Prozess,
  • Verhalten

98
Relationen (Beziehungs) -Matrix
99
System und Subsystem offen vs. geschlossen
100
Camerons Prozessbeispiel Bibliothek
101
Datenmodell
102
Prozess- Beispiel Produktionsplanungs Prozess
103
zielsuchendes System erster Ordnung Beispiel und
Modell Negativer Regelkreis Architekturgesetz
104
linear negative und - positve
Systemcharakteristika
105
System erster Ordnung Regelkreis Struktur die
zu einem Zeitpunkt beobachtbare
Kopplung Architekturprinzip Rückkoppelung
106
)
) allgemeine Definition
107
(No Transcript)
108
(No Transcript)
109
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110
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111
Verhalten im Zeitablauf für ein System erster
Ordnung
112
Positiver Regelkreis Architekturgesetz
113
Steuerung Architekturgesetz
114
System höherer Ordnung - Verzögerungen
115
Gleichungssystem für ein System zweiter Ordnung
116
Verhalten im Zeitablauf System zweiter Ordnung
117
Sonderfall Resonanz
118
Sonderfall Chaos (Verhulst Modell)
mit B als Wachstumsparameter
B2.5
B3.0
119
Sonderfall Chaos
B3.9999
120
Sonderfall Chaos - Bifurcation
121
Sonderfall Chaos andere bekannte
Fraktaldarstellungen Selbstähnlichkeit
122
Phasenraum und Darstellung des Systemverhaltens
im Zeitablauf
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Title: Supply Chain Management Lecturing SS 2011


1
Supply Chain ManagementLecturing SS 2011
  • helmut.merkel_at_prologue-asia-pacific.com

2
Supply Chain Management
  • Why Supply Chain Management ?
  • 1.1. Learning Curve Concept
  • 1.2 Innovation
  • 1.3 Specialization, Globalization, Cooperation
  • 2. Supply Chain Model
  • SCOR, DCOR, CCOR of the International Supply
    Chain Council
  • 3. Communication Architectures
  • 3.1 The Marathon Principle
  • 3.2 The Domino Principle
  • 3.3 The Shared Information Principle
  • 3.4 The Architecture behind
  • Design Principles
  • 4.1 Vision of the entire Process Chain
  • 4.2 Company overlapping Process Design (Vision
    of the entire Process Chain)
  • 4.3 Decision Making - Feedback Loops as basic
    Process Elements
  • 4.4 Self-Similarity the Formula for Growth
  • 4.5 Shared Information Communication
    Architecture
  • 4.6.Central- or decentralized control of Supply
    Chains ?

3
Supply Chain Management (2)
  • Implementation
  • 5.1. Top Down Approach
  • 5.2 Business Re-engeneering
  • 5.3 Aris Business Process Modelling
  • 5.4 Business Process Modelling and Project
  • Management
  • Total Cost of Ownership
  • 6.1 How to calculate Implementation Projects ?
  • 6.2 Cost Curve Models
  • 6.3 Total Cost of Ownership Approach

4
1. Why Supply Chain Management
1.1. Learning Curve Concept 1.2 Innovation
1.3 Specialization, Globalization, Cooperation
5
1.1 The Learning Curve Model
In competition an individual company has to
proof its advanced learning curve, which leads to
competitive advantages, before at all to improved
Total Costs per Unit (Gesamtstückkosten)
costs per unit (c/u)
Unit price (1)
Unit price (2)
Company B
Company A
5
Accumulated Volume
Output(0)
6
1.1 The Learning Curve Model
costs per unit (c/u)
Accumulated Output Volume
7
in the real world, many things can be changed
Costs per Unit
Transaction Costs
Total Costs per Unit
Innovation
Re-Engineering
Specialization
Globalization
Horizontal Cooperation
in Theory !
Vertical Cooperation
-
8
1.3 Innovation is Change - How does Change
work ?
Product Innovation, Business Model Innovation,
Process Innovation and Infrastructural Innovation
impact each other Costs per unit (c/u) can be
significantly impacted byInnovation the
learning curve model shows the details Innovation
also triggers Productivity and Structure
i.e. productivity advantages and structural
advantages
Innovation
Structural Change (horizontal and vertical
Cooperation)
(Re-Engineering, Specialization, Globalization)
9
1.2 Innovation is Change the destructive
power in the struggle for the better
Innovation in 1870 (Schumpeter)
  • - Introduction of a new product or a new quality
    of an existing product
  • - Implementation of a new production system in an
    industry (to improve costs per unit (cpu))
  • - A new sales-/distribution channel
  • Discovery of a new source for raw material or
    product components
  • Implementation of a new organization

10
1.2 Innovation is Change - How does Change
work ?
Business Modell
Business Process
Systems/Infrastructure
Strategy
Operations
Tactics
Business Model
Business Model
Business
Process
Business
Process
Systems/Infrastructure
Systems/Infrastructure
11
1.2 Innovation is Change - How does Change
work ?
Business Model
Process Model
Process Model
Systems/ Infrastructure
12
1.2 Innovation is Change - How does Change
work ?
13
1.3 Innovation is Change - How does Change
work ?
Idea
Product Innovation
Idea
Idea
Process Innovation
Systems Innovation
Idea
14
1.3 Innovation reduces Costs per Unit
Innovation
c/u
The assumption, c/u are shifted in parallel,
implies the same process integration level.
change of the transaction costs posssible
Innovation lowers c/u
Accumulated Volume
Same Volume
15
1.3 Innovation is Change - How does Change
work ?
In economies with an increasing degree of
specialization, communications and logistics
transactions are rapidly growing. Infrastructure
ports, airports, highways telecommunication and
education are becoming key success factors in an
economy.
Additional elements, additional relations
The car manufacturers reduced their own share of
production from 70 in 1970 to only 17 in 2005
16
1.3 Specialization lowers the Costs per Unit
Specialization/Division of Labor (sharing of work)
Cost per unit c/u
The assumption, c/u and transaction costs are
shifted in parallel, implies the same process
integration level.
Supply Chain Management has to control
Transaction Costs. The increase in Transaction
costs must be lower then the decrease of the
Costs per Unit.
Sepicialization reduces C/U
but increases transaction costs
Accumulated Output
Same output
17
1.3 Globalization lowers the Costs per Unit
Globalization
Cost per unit c/u
The assumption, c/u and transaction costs are
shifted in parallel, implies the same process
integration level.
Supply Chain Management has to control
Transaction Costs. The increase in Transaction
costs must be lower then the decrease of the
Costs per Unit.
Globalization reduces C/U
but increases transaction costs
Accumulated Output
Same output
18
1.3 Horizontal Cooperation lowers the Costs per
Unit
(horizontal) Cooperation/Concentration
Cost per unit c/u
The assumption, c/u and transaction costs are
shifted in parallel, implies the same process
integration level.
but increases transaction costs
Supply Chain Management has to control
Transaction Costs. The increase in Transaction
costs must be lower then the decrease of the
Costs per Unit.
Cooperation reduces C/U
Accumulated Output
Increasing Output
19
1.3 Vertical Cooperation changes Transaction
Costs
(vertical) Cooperation/Concentration
Cost per unit c/u
The assumption, c/u and transaction costs are
shifted in parallel, imply a higher process
integration level.
Supply Chain Management has to control
Transaction Costs. The decrease in Transaction
costs will lower the overall Costs per Unit.
but decreases transaction costs
Accumulated Output
Same Output
20
2. Supply Chain Model
The leading Supply Chain Reference Model from
the international Supply Chain Council,
2005-2007 SCOR DCOR and CCOR
What is a Supply Chain ?
A supply chain is a well organized Process to
serve and supply a specific market, using
global resources and global logistics
infrastructure, IT systems, human skills etc.
Competition in all markets force companies to
develop time to market advantages, flexibility
abilities as well as competitive Costs per Unit
(Stückkosten).
The Supply Chain Operations Reference Model
(source Supply Chain Council, 2005a)
21
2. Supply Chain Model
Vision of the entire Process Chain Push
SCOR/TOGAF
The Supply Chain Operations Reference Model
(source Supply Chain Council, 2005a)
22
2. Supply Chain Model
23
2. Supply Chain Model
24
2. Supply Chain Model
25
2. Supply Chain Model
26
2. Supply Chain Model
  1. Design Process
  2. Product Development
  3. Sampling
  4. Order placement
  5. Inline Production
  6. Packaging
  7. Sourcing
  8. Consolidation
  9. Quality Checks
  10. Booking
  11. Document Handling
  12. Transportation
  13. Importmanagement
  14. Haulage
  15. Distribution Centre/Crossdock
  16. Distribution
  17. Storelogistics

Focus Product Management
Overlapping processes not covered
!!! Supplier/Vendor Management Quality
Management Risc Management (ISO 28000) Finance
missing
Focus Buying, Sourcing
Focus Logistics, Supply Chain Management
27
3. Communication Architectures 3.1 Marathon
Principle 3.2 Domino Principle 3.3 Shared
Information Principle 3.4 The Architecture
behind
28
3. Communication Architectures
What is a Supply Chain ?
A supply chain is a well organized Process to
serve and supply a specific market, using
global resources and global logistics
infrastructure, IT systems, human skills etc.
Competition in all markets force companies to
develop time to market advantages as well as
cost per unit (Stückkosten) advantages.
The key to gain time and cost advantages is the
Process Design of a Supply Chain. The key of
Process Design is the Communication
Architecture. The Communication Achitecture
describes how regular communication between
hundreds of participants of a Supply Chain is
organized. How are order information forwarded
? Who has actual information ? How are Exceptions
(Alerts) organized etc. ?
29
3. Communication Architectures
3.1 Marathon Principle Trigger concept
Phidippides or Pheidippides (or Philippides) 570
bC., when the Persians (Darius I) landed at
Marathon, was send by the Athenians to Sparta as
fast as possible he can, to ask for help. The
Spartans said that they will help after the moon
was full (probably in order to let the Athenians
alone with the Persians and not only for
religious reasons). Phidippides came back running
the 147 miles distance with the disappointing
news for the Athenians. Phidippides then returned
to Marathon in time to fight in the battle. He
was ordered to run to Athens to bring the news of
victory. In one week he had to run more than 300
miles.
30
3. Communication Architectures
3.2 The Domino- or Chinese Wall Principle
221 bC, Qin Shi Huang completed the first part of
the Chinese wall, to protect Zhong Guo against
the Barbarians. Whenever the wall was attacked, a
fire was set up on the nearest watch tower and
all other watch towers followed to do the same.
So the message of an attack was much faster then
a messenger.
31
3.2 The Domino Principle
Even in 2010, many companies organize their
process after the Domino Principle
Product Mgmt
Manufacturer
Agent
Pier to Pier Information flow (Domino Principle)
Distribution Centre
Store
Consolidation Hub
32
3. 2 The Domino Principle
Even in 2010, many companies organize their BPR
after the Domino Principle
Buying
Agent
Vendor
Manufacturer
Forwarding Agent
Carrier
Holage Agent
Price competition, Time Pressure, Need for
Flexibility the Domino Principle is obsolete
QC
Cross Docking
Store
Sales
33
3.3 Shared Information Principle
This principle was developed by nature. All
geese watch the top goose ahead and not their
direct predecessor. What would happen, if they
all follow only their direct predecessor ?
34
3.3 The Shared Information Principle
Information in advance (Shared Information
Services) saves time, costs and increases
flexibility of all involved parties
... Same process structure for QC, AZO etc.
35
3.3 The Shared Information Principle
Paradigm Shift The Shared Information Principle
QC
WWW Database
36
3. Communication Architectures
3.4 The Architecture behind 3.4.1 Feed back
loop Model, Feed forward Model, Growth Model
Definition of System, Structure, Behavior
(Performance), Process, Second order System
3.4.2 Connecting Feed back loop Models as a
Domino Chain 3.4.3 Connecting Feed back loop
Models with a Shared
Information Hub 3.4.4 Exchanging Capacity
Information 3.4.5 Matching goals 3.4.6
Merging loops to avoid redundant functions 3.4.7
Forced self-similarity
37
3.4 The Architecture behind
3.4.1 Feed-back-loop Model (first order, linear
system)
38
3.4 The Architecture behind
3.4.1 Feed-back-loop Model (first order, linear
system)
Manage
Plan
Control
Control
Feed Back
Feed Back
Manage
Plan
Plan
Control
Feed Back
Manage
39
3.4 The Architecture behind
The es are elements, the rs are relations.
Relations are connecting elements. Elements
perform Functions. Relations can be
information-, energy-, materials- moneyflow etc.
The Structure of a system is a frozen picture of
all elements and connections in a one moment.
Behavior of a system is the measurable
performance of a system during a period of time.
All Systems serve a purpose they are following
a target. A target can have several sub-targets.
In nature the central target of a system is
survival, and improving living conditions.
Living conditions can only be improved, if the
usage of the systems resources is efficient.
To follow a target, systems use the Functions of
their elements. Using the functions, is using up
limited resources. The limitation of resources
determines the capacity of an element.
In order to reach a specific target (sub-target),
the usage of the functions has to be
coordinated. Coordination means, to organize the
sequential or parallel use of all functions (i.e.
resources) efficiently.
Efficient means to reach a given target with a
minimum use of resources or to reach the best
level (maximum) of a target with given resources.
40
3.4 The Architecture behind
Performance of a system is the measurable
behavior of a system during a period of time.
Performance has to be defined in relation to the
given targets. If the target is a quantity, for
example efficient production of 1000 units in
one month, an adequate performance measuring
would focus on the progress of production during
the period of time and on the cost level to
measure efficiency. Performance measurement
can be a complex task, because sub-targets have
to be measured and the functions of many
elements have to be observed. Therefore we use so
called KPI Systems. An intelligent set of all
Key Performance Indicators.
Process is an expression, which is widely used
in all areas of Science and Practice. We define
Process as System. A Process is a System .
  • Live systems in Nature have five basic process
    patterns
  • All processes to build up a living infrastructure
  • All processes to maintain survival levels
  • All processes to expand living conditions for
    growing populataions
  • All processes to overcome emergency (Exceptions)
    situations
  • All processes to recover and come back to normal
    survival levels

41
3.4 The Architecture behind
Feed Forward Model (Steuerung)
Manage
Feed Back, after the entire process is
completed
Target Fill the bucket with 1 l water ! There
is no water in the bucket now.
Manage
42
3.4 The Architecture behind
Growth
43
3.4 The Architecture behind
Second order system
A Supply Chain is at least a second order
system or a higher order system. The self
similar loops represent legal independent
companies, with intedpendent goals/targets and
non transparent capacities for the participants.
From a birds perspective, there are multiple
redundant functions (like planning/decision
making). The communication between the different
loops is Domino like Every loop puts a
Purchase Order (PO) to the predecessor loop. The
predecessor is delivering what is requested in
the PO, according to the terms of the PO.
According to the terms, the payment is arranged
after the same terms.
44
3.4 The Architecture behind
3.4.2 Connecting Feed back loop Models as a
Domino Chain
A Value Chain as higher order system with Domino
connected decision loops is not efficient The
Inefficiency is Delta R, Ressources and Detlat
T, Time
This (delayed) behavior results from the design
of the communication architecture
What are the natural reasons of R and T delays
in the real world
R
The mathematics behind is a (linear)
differential equation model of higher order
T
45
3.4 The Architecture behind
3.4.2 Connecting Feed back loop Models as a
Domino Chain
The reasons for Inefficiency in Domino
connected Supply Chains are
  • - No exchange of capacity information/restrictio
    ns (walking bottle neck)
  • No procedure to match goals
  • No exchange of information about critical
    process situations (exception management)
  • Redundant functions
  • No forced self-similarity

46
3.4 The Architecture behind
3.4.2 Connecting Feed back loop Models as a
Domino Chain
Non synchronized capacity of Ressources
bottle-necks (Oliver Wight)
MRP, MRP II, ERP, SC(R)M
Non synchronized goals or targets
Redundancy of Functions
Reduce Complexity merge Loops
(Bullwhip-Effekt)
Consequent closed-loop Architecture self-similarit
y
Lacking control of critical Developments
missing feedback links
Quality of Information
Standardization
47
3.4 The Architecture behind
3.4.3 Connecting Feed back loop Models with a
Shared Information Hub
only the Shared Information Architecture
allows an efficient operation
48
3.4 The Architecture behind
3.4.3 Connecting Feed back loop Models with a
Shared Information Hub
49
3.4 The Architecture behind
3.4.6 Merging loops to avoid redundant functions
In Supply Chains the successors and predecessors
can agree to merge multiple functions to avoid
redundancy
50
3.4 The Architecture behind
3.4.7 Forced self similarity
The Process Design is following the control
loop principles, which is supported by adequate
Systems infrastructure (IT-Systems, Logistics)
Strategy
Operations
Tactics
Business Modell
Business Process
Systems/Infrastructure
51
3.4 The Architecture behind
3.4.7 Forced self similarity
Self-Similarity is a key principle in nature and
allows a structure to grow systematically i.e.
with high producitivity
52
3.4 The Architecture behind
3.4.7 Forced self similarity
Business Models/Process Models are decision
process loops with high level Self-Similarity
Plan
Control
Feed Back
Manage
53
4. Design Principles
4.1 Design Principles as elements of an SCM
Architecture 4.2 Vision of the entire Process
Chain 4.3 Company overlapping Process Design
(Vision of the entire Process Chain 4.4 Decision
Making - Feedback Loops as basic
Process Elements 4.5 Self-Similarity the
Formula for Growth 4.6 Shared Information
Communication Architecture 4.7.Central- or
decentralized control of Supply Chains ?
54
4. Design Principles
4.1 Design Principles as elements of an SCM
Architecture
Vitruvius, 30BC collected all knowledge of Greek
and Roman architecture in 10 volumes. The word
civil engineer is developed from his works. The
word module can be found there. Unfortunately
there is not such a fundamental work How to
construct a Supply Chain
55
4. Design Principles
4.1 Design Principles as elements of an SCM
Architecture
An Architecture is a design plan. In this
design plan, the Architect is figuring out his
idea, how to carry out the order. The order he
is requested to carry out can be a school
building, a temple or such a nice arch. The
purpose of the building determines the process
how to use the building or the Arch The
Architect has to study the purpose to define the
needed functions ( of the structural elements)
of the intended building or object. In the past
functions (i.e. functions of the structural
elements) were used to identify the tasks. Today
we also study the process in parallel, which is
using the structural elements (i.e. the
performance or behavior of a process). For the
needed functions the Architect has to know and
to consider for which capacity and/or size
dimensions his design has to go. To seize the
capacity and/or dimensions,
56
4. Design Principles
4.1 Design Principles as elements of an SCM
Architecture
the Architect has to simulate all overlaying
processes, in which the functions are used, in
order to identify bottlenecks. As a lesson from
the past, today we develop a picture of the
needed and possible processes in parallel, to
verify the functions and even to identify missing
functions (i.e. structural elements). All these
details are put together in construction plan
which is the mathematial proof of stability under
even heavy process performance of the planned
functions. Furthermore he has to study the
location and the environment where the building
will be located. The Architect will complete a
visual draft of the building/object as a first
step, showing the figuration/shape which serves
the purpose and showing, how the functions can be
used in all overlaying processes.
57
4. Design Principles
4.1 Design Principles as elements of an SCM
Architecture
Today and centuries ago, the design plans for the
same purpose would be completely different. The
use of light, energy, water, heating,
aircondition, the use of materials (stone, wood,
iron, artificial materials etc. are completely
different. Security requirements (emergency exits
f.e.), fire prevention, service and disposal
aspects, washrooms, lifts etc. are also
completely different. Every period of time had
its own design principles which reflect the art
expression and (architectural) knowledge of the
sciences of the related period. Even for
hundreds of centuries, the architecture of a
building can be traced back. All details, even
mathematics of the construction plans are still
known. We also still know the project and
execution plans of famous buildings. For sure
there also many secrets, we only re-discover step
by step.
58
4. Design Principles
  • The architecture for a global supply chain is not
    obvious there is no documented history. IT
    Technology, which is driving the Design
    principles developed tremendously within the last
    50 years. There are also no proven project plans,
    which could help to implement a global supply
    chain.
  • Therefore we have to think about design
    principles of Supply Chains for the current time.
    In analogy, we define Design Principles
  • Integrity and Vision of an entire Supply Chain
    (Process)
  • Company overlapping processes
  • Definition of the structural Elements
  • Self Similar Organization of the entire Supply
    Chain
  • Shared Information as Communication Architecture
  • Centralized/decentralized management of the
    Supply Chain

4.1 Design Principles as elements of an SCM
Architecture
59
4.2 Integrity and Vision of the entire Process
Chain
4.2.1 MRP (Materials Requirement Planning)
4.2.2 MRP II (Manufcaturing Ressource Planning)
4.2.3 ERP (Enterprise Ressource Planning)
4.2.3 SCRM (Supply Chain Ressource Management)
60
4.2 Integrity and Vision of the entire Process
Chain (MRP Materials requirement
Planning)
- No Feedbacks, - No Ressource plan
61
4.2 Integrity and Vision of the entire Process
Chain (MRP Materials requirement
Planning - Phase II)
No Resource Plan
62
4.2 Integrity and Vision of the entire Process
Chain (MRP Materials requirement
Planning - Phase III)
63
4.2 Integrity and Vision of the entire Process
Chain (MRP II / ERP Manufacturing
Ressource Planning/Enterprise Ressource Planning
ERP)
Simulation
64
4.2 Integrity and Vision of the entire Process
Chain (MRP II/ERP Manufacturing
Enterprise Ressource Planning)
65
4.2 Integrity and Vision of the entire Process
Chain (SCRM - Supply Chain Ressource
Management )
Ressources Guidelines Manuals
Order Network
66
4.2 Integrity and Vision of the entire Process
Chain The entire Process View of SAP ERP
2.0
  1. Design Process
  2. Product Development
  3. Sampling
  4. Order placement
  5. Inline Production
  6. Packaging
  7. Sourcing
  8. Consolidation
  9. Quality Checks
  10. Booking
  11. Document Handling
  12. Transportation
  13. Importmanagement
  14. Haulage
  15. Distribution Centre/Crossdock
  16. Distribution
  17. Storelogistics

Focus Product Management
Overlapping processes not covered
!!! Supplier/Vendor Management Quality
Management Risc Management (ISO 28000)
Focus Buying, Sourcing
Focus Logistics, Supply Chain Management
67
4.2 Integrity and Vision of the entire Process
Chain Retail Loop
1
1
Strategic Marketing Demand Plan
Strategic Marketing Sales Plan
2
3
2
3
4
Buying Plan
Vendor
Strategic Buying
Buying Plan
Manufacturers, Vendors
Strategic Buying
0
5
4
0
5
4
Master data
Master Data
SCM
Sourcing, Direct Distribution
Consolidation Sea-/Air, Haulage
Procurement, Purchase Order (PO) Management
6
7
8
6
7
8
Cross Docking Distribution
Sales
Merchandise Flow Control
Warehousing Distribution
Stores Sale (POS)
Merchandise Flow Control
Administrations Process (HR, Finance etc.)
Administrations Process (HR, Finance, etc.)
68
4.2 Integrity and Vision of the entire Process
Company overlapping Process Design highly
integrated
G
Understand, Plan
B
D
E
Control
Feed Back
B
A
C
Manage Buy/Source, Move, Sell, Pay
F
69
4.3 Integrity and Vision of the entire Process
Company overlapping Process Design highly
integrated
Company 1
Business Model
Geschäfts- prozesse
Company overlapping Business Process
Informations- systeme
Company overlapping Systems (IT-/Logistics)
  • Integrated process links need standardized,
    integrated systems links
  • Integrated systems links have impacts on business
    models

70
4.4 Structual Elements Decision Making Process
Feed-back-loop Model
Plan
Control
Feed Back
Manage
Plan
Control
Feed Back
Manage
71
4.5 Self-Similarity
Self-Similarity is a key principle in nature and
allows a structure to grow systematically i.e.
with high producitivity
72
4.5 Self Similarity
Business Models/Process Models are decision
process loops with high level Self-Similarity
Plan
Control
Feed Back
Manage
73
4.6 Paradigm Shift The Shared Information
Communication Architecture
Shared Information Services
QC
WWW Database
74
4.7 Central- or decentralized control of Supply
Chains ? Summary Centralized and
decentralized control/behavior
Elements of an Supply Chain Management rule-set
(Regelwerk), which allows cooperative and
individual behavior at the same time
  • All process participants follow their individual
    business ideas, business models and process
    models such as MRP, MRPII, ERP etc.
  • All process participants acknowledge instructions
    from their predecessors in the process chain
    (domino) by orders/contracts which are
    legally binding.
  • One Party (retailer or brand) normally takes
    initiative to use its power to lead the whole
    supply chain by instructions or sets of rules
    (Ordnungsinformationen).
  • A company overlapping communication
    infrastructure (Shared Information) is
    established, all process participants are asked
    to
  • - share information about targets
  • - share information about actual stati,
  • - eliminate redundant functions,
  • - match ressources and capacities to avoid
    bottle necks
  • 5. All process participants accept the rule of
    immediate response and update about their own
    activities with accurate information to the
    Shared Information Hub

75
5. Implementation
5.1. Top Down Approach 5.2 Business
Re-engeneering 5.3 Aris Business Process
Modelling 5.4 Business Process Modelling and
Project Management
76
5. How is Change going to be implemented in
Companies
Case-Study Company A B decide to implement a
new Business Model. To implement the new Business
Model, the companies decide to share resources A
new Process Model needs to be implemented. The
needed Infrastructure will be shared.
Company B
Company A
77
5. How is Change going to be implemented in
Companies
Company A B decide to implement a new Business
Model. To implement the new Business Model, the
companies decide to share resources A new
Process Model needs to be implemented. The needed
Infrastructure will be shared.
Company B
Company A
1. A Project Team as a temporary organization
will organize/ Implement Change
78
5. How is Change going to be implemented in
Companies
Company A B decide to implement a new Business
Model. To implement the new Business Model, the
companies decide to share resources A new
Process Model needs to be implemented. The needed
Infrastructure will be shared.
Company B
Company A
The Project Team will design the new Business
Process along the six Design Principles Vision
of the entire Process, Company overlapping.
2.
79
5. How is Change going to be implemented in
Companies
Implementation Model
3. Design Implementation follows a top
down Approach
buttom up Workshop or Prototype Approach
Change
80
5. How is Change going to be implemented in
Companies
Implementation Model
Project Management
BPR Design Implementation
Strategy
Operations
Tactics
Team, Role, Objectives Expected Results
(Documents), As-Is Results, Ressources, Time
Team, Role, Objectives Expected Results
(Documents), As-Is Results, Ressources, Time
Team, Role, Objectives Expected Results
(Documents), As-Is Results, Ressources, Time
4. Design Implementation follows a six phases
learning process
81
5. How is Change going to be implemented in
Companies
5. Many different BPR DesignImplementation
(Re-Engineering) Models
BPR The Surest Way to the Top (source Muthu,
Whitman and Cheragi, 1999, Figure 1)
82
6.2 Cost Curve Models
83
6.2 Cost Curve Models
84
5. How is Change going to be implemented in
Companies
BPR Re-Engineering
The ARIS House of Business Engineering (source
Scheer, 1999b p 56 Figure 24)
85
Business Process Modelling (BPM) Source Zhou,
Vera
86
  • Total Cost of Ownership
  • 6.1 How to calculate Costs of Implementation
    (COI) ?
  • 6.2 Cost Curve Models
  • 6.3 Total Cost of Ownership (TCO) Approach

87
6.1 How to calculate Costs of Implementation
(COI)?
88
6.1 How to calculate Costs of Implementation
(COI)?
89
6.1 How to calculate Costs of Implementation
(COI)?
90
6.1 How to calculate Costs of Implementation ?
91
6.1 How to calculate Costs of Implementation
(COI)?
92
6.2 Cost of Implementation (COI)
93
6.2 Cost Curve Models
94
6.3 Total Cost of Ownership Approach
95
6.3 Total Cost of Ownership Approach
96
Backup
Supply-Chain Management Systemtheorie
97
Beispiel für ein zielsuchendes System
  • Struktur,
  • Beziehungen,
  • Prozess,
  • Verhalten

98
Relationen (Beziehungs) -Matrix
99
System und Subsystem offen vs. geschlossen
100
Camerons Prozessbeispiel Bibliothek
101
Datenmodell
102
Prozess- Beispiel Produktionsplanungs Prozess
103
zielsuchendes System erster Ordnung Beispiel und
Modell Negativer Regelkreis Architekturgesetz
104
linear negative und - positve
Systemcharakteristika
105
System erster Ordnung Regelkreis Struktur die
zu einem Zeitpunkt beobachtbare
Kopplung Architekturprinzip Rückkoppelung
106
)
) allgemeine Definition
107
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108
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109
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110
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111
Verhalten im Zeitablauf für ein System erster
Ordnung
112
Positiver Regelkreis Architekturgesetz
113
Steuerung Architekturgesetz
114
System höherer Ordnung - Verzögerungen
115
Gleichungssystem für ein System zweiter Ordnung
116
Verhalten im Zeitablauf System zweiter Ordnung
117
Sonderfall Resonanz
118
Sonderfall Chaos (Verhulst Modell)
mit B als Wachstumsparameter
B2.5
B3.0
119
Sonderfall Chaos
B3.9999
120
Sonderfall Chaos - Bifurcation
121
Sonderfall Chaos andere bekannte
Fraktaldarstellungen Selbstähnlichkeit
122
Phasenraum und Darstellung des Systemverhaltens
im Zeitablauf
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