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,Chapter 8 Coordinated product and Supply Chain Design,8.1 Design For Logistics,8.1.1 Introduction 产品和物流设计能影响运输成本与库存费用 Product and process design key cost drivers of product cost Design for Manufacturing used design to decrease manufacturing costs,Major supply chain costs include transportation costs, inventory costs, distribution costs Design for Logistics uses product design to address logistics costs Key Concepts of Design for Logistics Economic packaging and transportation Concurrent/Parallel Processing Postponement,8.1.2 Economic Transportation and Storage,对产品的设计,使其可以有效包装和储存 包装越紧凑,运费越便宜 IKEA家具 零售商喜欢体积小,易包装的产品 Wal-Mart的堆放 大批量到仓库,配送前最后包装 可获运输经济规模,Examples,Ikea Worlds largest furniture retailer 131 stores in 21 countries Large stores, centralized manufacturing, compactly and efficiently packed products Rubbermaid Clear Classic food containers - designed to fit 14x14” Wal-Mart shelves,8.1.3 Concurrent/ Parallel Processing,Objective is to minimize lead times Achieved by redesigning products so that several manufacturing steps can take place in parallel Modularity/Decoupling(模块化/分解概念) is key to implementation Enables different inventory levels for different parts,The Network Printer Example,Stage 1 (Europe),Stage 2 + Integration (Far East),Customer (Europe),Board,Printer,Stage 1 (Europe),Integration (Europe),Customer (Europe),Board,Printer,Plastics, motors, etc.,Stage 2 (Far East),8.1.4 Postponement,Shortening lead times is not always possible How else can inventory levels be reduced and forecast accuracy improved? 制造何种产品和产品差异化的决策延迟在产品开始生产以后,使一类或一系列产品延迟区分为专门的产成品,这种方法称为延迟产品差异。,为什么延迟能有帮助? 产品多样性大部分只是微小的变化 延迟是可能的 需求预测随风险共享而变得精确了 延迟减少库存水平 通用产品可用风险共担来预测 具体衍生产品可到最后生成以满足需求,实施延迟差异,1. 重新排序 对产品生产步骤进行修改, 使对具体物品或产品进行差异化的生产步骤尽可能地往后延迟. 案例: 本尼顿公司用重新排序改善供应链运营.,Benetton Background,A world leader in knitwear Massive volume, many stores Logistics Large, flexible production network Many independent subcontractors Subcontractors responsible for product movement Retailers Many, small stores with limited storage,Benetton Supply Cycle,Primary collection in stores in January Final designs in March of previous year Store owners place firm orders through July Production starts in July based on first 10% of orders August - December stores adjust orders (colors) 80%-90% of items in store for January sales Mini collection based on customer requests designed in January for Spring sales To refill hot selling items Late orders as items sell out Delivery promised in less than five weeks,Benetton Old Manufacturing Process,Spin or Purchase Yarn,Dye Yarn,Finish Yarn,Manufacture Garment Parts,Join Parts,Benetton New Manufacturing Process,Spin or Purchase Yarn,Manufacture Garment Parts,Join Parts,Dye Garment,Finish Garment,This step is postponed,Benetton Postponement,Why the change? The change enables Benetton to start manufacturing before color choices are made What does the change result in? Delayed forecasts of specific colors Still use aggregate forecasts to start manufacturing early React to customer demand and suggestions Issues with postponement Costs are 10% higher for manufacturing New processes had to be developed New equipment had to be purchased,2. 通用化和模块化,Modular Product:(模块化产品) Can be made by appropriately combining the different modules It entails providing customers a number of options for each module Modular Process: (模块化流程) 由一系列离散的具体操作所组成的生产流程。 Each product undergo a discrete set of operations making it possible to store inventory in semi-finished form Products differ from each other in terms of the subset of operations that are performed on them,Semiconductor wafer fabrication is modular since the type of chip produced depends on the unique set of operations performed Oil refining is not modular since it is continuous and inventory storage of semi-finished product is difficult,Modular products are not always made from modular processes Bio-tech and pharmaceutical industries make modular products but use non-modular processes; many products are made by varying the mix of a small number of ingredients,3.标准化,Part Standardization(部件标准化) Common parts(通用部件) are used across many processes Product redesign might be necessary Process Standardization(流程标准化) Standardizing as much of the process as possible, making a generic or family product Delaying differentiation Called “Delayed differentiation”, “Postponement”,Postponement: Key Concepts,Delay differentiation of products in the same family as late as possible Enables the use of aggregate forecasts Enables the delay of detailed forecasts Reduces scrapped or obsolete inventory, increases customer service May require new processes or product design with associated costs,Postponement Considerations,Tradeoff increased product cost with decreased inventory Need to decide where to postpone - the push-pull boundary Position in product lifecycle is factor in postponement strategies Inventory value may increase Consider tariffs and duties,HP DeskJet Case: Background,High volume, high speed manufacturing in Vancouver Many different models, all completed in Vancouver Three distribution centers North American Asian European Manufacturing time one week Transportation lead times: Europe: 4-5 weeks US : 1 day At distribution centers, simple standardized process,HP DeskJet Case: Analysis,Problems High inventory levels Inventory imbalance in Europe Causes Uncertainty about correct inventory levels Many geographic options (localization) Long lead times Uncertain market Difficulty at getting divisions to work together What are HPs options?,HP DeskJet Case: Options,Short Term Rationalize safety stock Long Term Air shipment European factory More inventory Better forecasting DC localization,Safety Stock Rationalization: Example Europe AB,Recall: Safety Stock = z STD * LT,Evaluating Alternatives,Air Shipment Expensive European Factory Not sufficient volume Better Forecasting How? More Inventory More problems DC Localization What will savings be?,Evaluating DC Localization,In DC localization, risk pooling can be used to reduce total inventory while maintaining service levels To evaluate inventory, compare total safety stock held if individual localized units are held in inventory or if generic units are held Other costs must also be evaluated,Evaluating DC Localization,DC Localization,Safety Stock Reduction Current 19,089 units (3.55 weeks) With localization 12,792 units (2.4 weeks) Other benefits Lower value of transit inventory Freight reductions Local presence of “manufacturing” Customs implications Local procurement of localization materials But there are costs Product redesign DC modifications,Implementation,R&D Support DC Support “Not our core competency” New packaging Capital investment,Results,Successful implementation Millions saved Service levels increased Packaging won awards Best practice spread to other HP divisions,8.2 Supplier Integration,Competitive forces are driving firms to integrate suppliers into product development Spectrum of Supplier Integration None White Box Informal integration Grey Box Formal integration, with collaborative teams Black Box Interface requirements are given, product is returned,外包非核心的业务流程 供应商的参入程度的影响 利用供应商的能力,改进产品设计与工艺流程 参与程度 零 供应商没有参与 白箱 非正式合作,向供应商咨询有关产品设计和说明书 灰箱 正式参与,与供应商的工程师一起开发产品 黑箱 对供应商提交产品要求,供应商独立设计开发,Supplier Integration,What approach is appropriate? Determine internal competencies Determine product development needs Identify external development and manufacturing needs If future products have components that require external expertise and can be separated from other components, a black box approach makes sense. If components cannot be separated, a grey box approach makes sense. If some expertise can be found in house, a white box approach might make sense.,The “Bookshelf” Approach,Monitor the development of new technologies Follow suppliers that have developed expertise When appropriate, integrate these new technologie

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