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Supply Chain Management (1) Chapter Two Learning Objectives nThe goals of SCM nThe stages of SCM nThe Bullwhip Effect and Beer Game nThe Development of SCM Eras nThe Principles of SCM ncase analysis The Goals of SCM nThree goals of SCM: n(1) to reduce inventory n(2) to increase the speed of transactions with real-time data exchange n(3) to increase revenue What is Optimization? nOptimization means to organize all relevant activities for the purpose of minimizing the total cost of providing the consumer with the value required. This implies the elimination or minimization of all unproductive activities and activities that do not provide or provide less value added. The optimization is to be assured on the entire process of providing the product or service instead of on only a part of it. Phases of SCM nFive stages of SCM: n(1) Plan: good or service meet the needs n(2) develop n(3) Make n(4) deliver n(5) return Bullwhip Effect n中文:牛鞭效应 Information Distortions and the “Bullwhip Effect” The Bullwhip Effect in Action Production Sales growth volatilityProduction growth volatility Reasons for Bullwhip Effect nInventory is insurance against supply chain uncertainties nSupply chain management substitutes information for inventory Reduced “Bullwhip Effect“ for Durables nIn the view of bullwhip effect, can you find ways to solve this problem to ensure the effective and efficient SCM? Beer Game nHome work nCustomer customize customization Evolution of Operations and Supply Chain Management nCraft production nprocess of handcrafting products or services for individual customers nDivision of labor ndividing a job into a series of small tasks each performed by a different worker nInterchangeable parts nstandardization of parts initially as replacement parts; enabled mass production w w1-1-1515 Evolution of Operations and Supply Chain Management nScientific management nsystematic analysis of work methods nMass production nhigh-volume production of a standardized product for a mass market nLean production nadaptation of mass production that prizes quality and flexibility w w1-1-1616 Historical Events in Operations Management EraEvents/ConceptsDatesOriginator Industrial Revolution Steam engine1769James Watt Division of labor1776Adam Smith Interchangeable parts1790Eli Whitney Scientific Management Principles of scientific management 1911Frederick W. Taylor Time and motion studies1911 Frank and Lillian Gilbreth Activity scheduling chart1912Henry Gantt Moving assembly line1913 Henry Ford Historical Events in Operations Management (cont.) EraEvents/ConceptsDatesOriginator Human Relations Hawthorne studies1930Elton Mayo Motivation theories 1940sAbraham Maslow 1950sFrederick Herzberg 1960sDouglas McGregor Operations Research Linear programming1947George Dantzig Digital computer1951Remington Rand Simulation, waiting line theory, decision theory, PERT/CPM 1950s Operations research groups MRP, EDI, EFT, CIM 1960s, 1970s Joseph Orlicky, IBM and others Historical Events in Operations Management (cont.) EraEvents/Concepts Dates Originator Quality Revolution JIT (just-in-time)1970sTaiichi Ohno (Toyota) TQM (total quality management) 1980s W. Edwards Deming, Joseph Juran Strategy and operations 1980s Wickham Skinner, Robert Hayes Business process reengineering 1990s Michael Hammer, James Champy Six Sigma1990sGE, Motorola Historical Events in Operations Management (cont.) EraEvents/ConceptsDates Originator Internet Revolution Internet, WWW, ERP, supply chain management 1990sARPANET, Tim Berners-Lee SAP, i2 Technologies, ORACLE E-commerce2000sAmazon, Yahoo, eBay, Google, and others Globalization WTO, European Union, and other trade agreements, global supply chains, outsourcing, BPO, Services Science 1990s 2000s Numerous countries and companies Supply Chain Evolution (1800s) nDivision/specialization of labor nInterchangeable parts nRailroads, electricity, communications Mass Production Era (1900-1973) nMoving assembly lines nScientific management methods nOperations research techniques Lean Manufacturing Era (1974- 1995) nIncreased global competition nImproved flexibility and quality control nSix-Sigma QC, JIT, TQM Mass Customization Era (1996-today) nBetter information engineering nInternet, wireless communications, B2B e- commerce nIntegrate internal systems with external partners Im Next? ! n2.2 Principles of Supply Chain Management 1. Segment customers based on the service needs 2. Customize the logistics network to service and profitability 3. Listen to market signals for best resource allocation 4. Speed conversion of product 5. Reduce the total cost of owning materials and services 6. Develop a supply chain-wide technology strategy 7. Adopt channel-spanning performance measures Summary nGoals of the SCM nBullwhip Effect nPrinciples of SCM Terms n1. 大规模生产时期 n2. 精益生产时期 n3. 六西格玛质量控制时期 n4 准时制库存 n5 全面质量管理 n安全库存 nMass production Era nLean Manufacturing Era nSix-Sigma quality control nJust-in-time inventory nTotal quality management nSafe stock Assignment (2) nA: An E-Business n本次作业以小组为单位完成,最后每小组 提交一份书面答卷,要求为打印稿,全部问 题答案应在2页内完成,并在最后签署小组成 员姓名。 n截止日期:2010年9月26日 nQuestions: nWhat advantages does selling books via the Internet provide over traditional bookstores? Are there any disadvantages to selling via the Internet? nDoes Amazon realize its SCM goals? Briefly Explain it. nShould Amazon stock every book it sells? From the perspective of 7 principles of SCM, which principles does the Amazons practice best illustrate? (Amazon 的做法阐释了哪些原则 ?) nFor what products does the e-commerce channel offer the greatest advantage? What characterizes these p
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