Opera session2.pptx

8/19/2019 Opera session2.pptx

1/48

.

Opera 16

Overview of Operations & SupplyChain Management

Part 2


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Revision

1. Difference between SCM and Operations?

2. What is logistics?

3. 1PL 2PL 3PL ! "PL?". P#sh ! P#ll SC?

$. %&pes of Man#fact#ring Processes?

'. Strategies to (espond to De)and?

*. What is +,%?

-. C&cle Safet& Seasonal Pipeline ,nentor&?

/. %a0t %i)e Lead ti)e %hro#ghp#t ti)e?

1. C 4S5 ! 67D?11. #llwhip effect?

12. $S?

13. Lean Manage)ent?

1". * Wastes of Lean?

1$. ' sig)a? DMD6 ! DM,C?

1'. 8ai9en?

1*. 8anban?

1-. Po0a :o0e?

1/. +ido0a?

2. ;ei


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=#alitatie )ethods >S#bob


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It represents long term average after the remaining

components have been removed.Data cluster about a horizontal line.

Demand Patterns (Base)


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Long term shift in periodic sales.

Data consistently increase or decrease.

Demand Patterns (Trend)


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Recurring upward/downward trend repeated within a year.

Data consistently show peaks and valleys.

Demand Patterns (Seasonal)


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Data reveal gradual increases and decreases over extended

periods.

Demand Patterns (Cyclical)


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Product Demand over Time

:ear

1

:ear

2

:ear

3

:ear

"

D e ) a n

d f o r p r o d # c t

o r s e r . i c e

ct#alde)and line

%rend co)ponentSeasonal pea0s

(ando

)

ariatio

n


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Quantitative Method: Time-SerieMethods

@ Naive approach

@ Moving averages

@ Exponential smoothing@ Trend projection (linear regression)

@ Seasonal influences

@Comined seasonal and trend


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Perio

d

Sale

s>

1 "

2 '

3 $" 3$ *' ?

Moing

erage>n3

5

55

>"E'E$3 $

>'E$E33".''

Simple Moving Average


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Weighted Moving Average

Perio

d

Sale

s>

Weighte

dMoing

erage1 " 5

2 ' 5

3 $ 5 " 3 31'

$.1'*$ *

'

2$'

".1'*32'

Ft +1 = w1Dt + w 2Dt-1 + w3Dt-2 + ... + w n D t-n+1

with weights 3' 2' 1'


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Quantitative Approach: Causal Method /Regression Model (Linear Regression)

D e p e

n d e n t v a r i a b l e

Y

Actual

Estimate of Y fromregression

equation

valueof Y

Value of Xused toestimate Y

X

Independent variable

Deviation,or error

F

RegressionequationY ! a " bX


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Causal Methods LinearRegression

# $%& $'%r $ ! %'&(

)onth*ales

+%%% unitsAdvertising

+%%% -

. $(/ $'#

$ ..( .'00 .(# .'// .%. .'%

a ! 1 2'.03

b ! .%&'$0r ! %'&2


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Causal Methods - LinearRegression

*ales Advertising

)onth +%%% units +%%% -. $(/

$'#$ ..(

.'0

0 .(#.'/

/ .%..'%

# $%&

$'%

a ! 1 2'.03b ! .%&'$0r ! %'&2r $ ! %'&(

0%% 4

$#% 4

$%% 4

.#% 4

.%% 4

Y ! 1 2'.03 " .%&'$0 X * a l e s + t h o u s a n d s o f u n i t s ,

#%

Forecast for )onth (

X ! -.3#%, Y ! .20'%.#, or .20,%.# units


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Inventory or Stoc is the stored accumulation ofthe resources! mostl" material

#nventor" occurs in operations ecause the timing ofsuppl" and the timing of demand do not al$a"s

match%

Inventory planning and control& 'lanning andcontrolling the rate (uantit" and timing) of suppl" of

the material%

T"pical #nventor" decisions&

!ow much to order

When to order

INEVNTORY MANAEMENT


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5olding 6osts +6arr7ing costs 56%hese costs depend on the order si9e

– Cost of capital

– Storage space rental cost

– Costs of #tilities

– Labor

– ,ns#rance

– Sec#rit&

– %heft and brea0age

G Deterioration or Obsolescence

%&pe of Costs in ,nentor& Models


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8rder9*etup 6osts : 86%hese costs are independent of the order si9e.

Order costs are inc#rred when p#rchasing

a good fro) a s#pplier. %he& incl#de costs

s#ch as

– %elephone – Order chec0ing

– Labor

– %ransportation

Set#p costs are inc#rred when prod#cing

goods in a plant. %he& )a& incl#de costs of – Cleaning )achines

– Calibrating eA#ip)ent

– %raining staff

%&pe of Costs in ,nentor& Models


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6h6h

%he opti)al order Si9e%he opti)al order Si9e

2 D 6

o;< !;< !

asic 7O= ModelB

5o= )uch To 8rder>

Total Relevant 6ost, T6 +; ! Annual 5olding6ost" Annual 8rdering 6ost" Annual Procurement6ost

%C>= >=2ChE >D=C

oE DC

Mini)i9e %C >= with respect to =

d>%Cd= Ch2 G DH C>=H= E

⇒ =2

I2D CoChJ?8TE

D and 6h )@*T be

specified for the sametime length +7earl7,

monthl7, dail7


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6h6h

2 D 6

o;< !;< !

asic 7O= )odel

A

n n u a l c o s t + d o l l

a r s ,

ot *iBe +Q

5olding cost +HC

8rdering cost +OC

Annual +holding" inventor7 costs! HC " OC

2'

T=o t7pes of costs are relevant in determining ;


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!"en to Order Decision ##


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Periodic Re$ie% System (P Model)


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ProCect )anagement

%hree goalsB

1. Sched#le

2. (eso#rce

3. Scope

.$ steps of ProWS

2. Diagra))ing the networ0 >2 techniA#esB P7(% ! CPM

3. Deeloping the sched#le

". nal&sing cost G ti)e trade offs

$. ssessing ris0s


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ProCect )anagement'''

P7(% CPM

>Progra))e 7al#ation and (eiew %echniA#e Critical Path Method

1. Precedence (elationshipsB SeA#ence for #nderta0ing actiities. Specif& that an& gien actiit&

cannot start #ntil a preceding actiit& has been co)pleted.

2. O5 >ctiit& on 5ode pproachB Circles represent ctiities rrows represent (elationships


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ProCect )anagement'''


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Eample

ProCect A ne= 5ospital

.' G*


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Eample'''

$' ?ET8RH DIARA)


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Eample'''


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Eample'''


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Eample'''


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Sched#le is deeloped after this b& ta0ing into consideration Float'

Cost %i)e %radeoff nal&sis

(is0 ssess)entB %i)e esti)ates of ctiities

1. Opti)istic ti)e

2. Most li0el& ti)e

3. Pessi)istic ti)e

%he eHpected ti)e of actiit& then beco)esB


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F)6 *uppl7 6hain

Facts, 8pportunities and 6oncerns


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6haracteristics of F)6 industries


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)aCor 6osts in F)6 *uppl7 6hain


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F)6 *uppl7 6hain Performance Indicators

*68R ) d l


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*68R )odel


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Inventor7 Turnover and D8*

Inventor7 Turnover Ratio ! 68*9 Average Inventor7

Da7s of *uppl7 ! 0(#9 Inventor7 Turnover Ratio


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5ub and *poJe )odel

Distrib#tion Model

dantagesB

7as& to add new spo0es

Co)pleH Operations can be carried o#t at h#b Drawbac0sB

Dela& in h#b ca#ses dela& in whole networ0

Cargo sho#ld pass thro#gh h#b d#ring its


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)ilJ Run )odel

Logistics Distrib#tion Model

Genefits ;igher tilisation of %r#c0s (ed#ction of %ransportation costs b& 3N

Poll#tion red#ction

Disadvantages ,ncreased dependence on roads Poor planning leads to eHtra trips and th#s )ore transportation cost


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,ndian SC Challenges

%aHation Str#ct#re Dries Location Decisions

Poor State of Logistics ,nfrastr#ct#re

Co)pleH Distrib#tion Set p >4MC

Wor0ing with S)aller Pac0 Si9es >4MC

3PL #nable to proide econo)ies of scale to 4MC ind#stries


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Evolution of *6)

4ord SC >1/11/2 B ,ntegrated infleHible. Mass Prod#ction of single colo#r cars

%o&ota SC >1/'1/*B %ightl& held s#pplier relationships Lean Prod#ction S&ste)s

Dell S#ppl& Chain >1//$2B )edi#) ter) relationships with s#ppliers 7D, with s#ppliers sse)ble to order

,0ea G ,ntegrated SC Mini)#) Manpower 4lat pac0ed f#rnit#re Lasting relationship withS#ppliers

Wal)art G ;igh 6ol#)e p#rchases fro) s#ppliers Largest ,% infra of an& priate co)pan& in theworld 7D, for proc#re)ent Cross doc0ing PS S&ste) in tr#c0s (4,D >helps in enhancing +,%

S&ste)

;L G Distrib#tion s&ste)

)a9on G S#ppl& Chain nal&tics


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PE*TE Anal7sis

Political

%ata 5ano

4D, in (etail

4D, in Defence

4D, in ,ns#rance

Labo#r Laws

Land and #ilding pproals

Speed of 7niron)ental

Clearances

%aHation pproal for ,nfrastr#ct#re

;ar&ana

#


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PE*TE Anal7sis

Economic

,nflation

• De)and• Co)petitieness

DP

•

4MC• 7)plo&)ent

C#rrenc&

• Cr#de Oil• ,% Sector

,nterest(ates

• (eal 7state• #to)obile


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PE*TE Anal7sis

*ocial

Pop#lation

De)ograph&

C#lt#reCareer

ttit#des

7thics


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PE*TE Anal7sis

Technological

Cost

=#alit&

O#tso#rcing,nnoation

arriers toentr&

PE*TE A l i


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PE*TE Anal7sis

Environmental

Cli)ate

Location

Weather

Cli)ate Change

%o#ris)

,ns#rance

7nerg&

gric#lt#re

PE*TE A l i


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PE*TE Anal7sis

egal

Labo#r Laws

Cons#)erLaws

Safet& and;ealth

Standards

ntiDiscri)ination

Laws

ntitr#st Laws

T ti


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Taation

%aHes >Central ot

C#sto)D#t&

Serice%aH

7HciseD#t&

Corporate%aH

%aHes >State ot

CentralSales %aH 6%

Professional%aH

I t f *T * l 6h i i I di


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Impact of *T on *uppl7 6hain in India

Point 6ost )argin Ta6redit

PGT VAT 6*T Total Ta Final Price

4ir) 1 2$ 12$ N 2N 2.$ 12*.$

Wareho#se N N

Distrib#tor 12*.$ 1 13*.$ "N N $.$ 1"3

(etailer 1"3 *.$ $.$ 1"$ "N N $.- 1$.-

Point 6ost )argin Ta 6redit PGT *T Total Ta Final Price

4ir) 1 2$ 12$ N 12$

Wareho#se N

Distrib#tor 12$ 1 13$ "N $." 1"."

(etailer 1"." *.$ $." 1"2.$ "N $.* 1"-.2

C#rrent StateB CS% Sales to Distrib#tor

4#t#re StateB 7li)inate CS% charged on ,nterstate Sales Distrib#tor

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