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ProductionandOperationsManagement ManufacturingandServices PowerPointPresentationforChapter12ManagingtheSupplyChain ChaseAquilanoJacobs Irwin McGraw Hill TheMcGraw HillCompanies Inc 1998 2 Chapter12ManagingtheSupplyChain SupplyChainManagementOutsourcingValueDensityPurchasingTheFirmasSupplierJITPurchasingGlobalPurchasing 3 SupplyChainManagement Applyatotalsystemsapproachtomanagingtheentireflowofinformationmaterialsandservices Rawmaterialsuppliers 4 Outsourcing Purchaseditemsaccountfor60to70 ofthecostofgoodssold Outsourcingallowsfirmstofocusontheircorecompetencies Organizationsoutsourcewhentheydecidetopurchasesomethingtheyhadbeenmakingin house Typicallyhandledbymaterialsmanagementfunction 5 MakeorBuy Currenttrendfavorsoutsourcingallactivitiesthatdonotdirectlyrepresentorsupportcorecompetencies Arethereanydangersassociatedwithaggressiveoutsourcing WhataretheimplicationsforJITproduction 6 ValueDensity ValueperunitofweightWhyisitimportanttoknowvalueperunitofweight Ishighvaluedensitygoodorbad 7 Purchasing Nolongerjustordertakers Purchasingneedtoknowmaterialperformanceavailabilitysuppliers 8 TheFirmasaSupplier Inthischapter wediscusstheroleofthefirmasabuyerofgoodsandservices Howdoestheperspectivechangewhentheshoeisontheotherfoot 9 PartnershipRelationship Continuingrelationshipinvolvingacommitmentoveranextendedtimeperiod anexchangeofinformation andanacknowledgementoftherisks rewardsoftherelationship 10 SupplierSelectionUsingtheAnalyticalHierarchyProcess AHP Processusedtodetermineweightsforsupplier selectioncriteria AHPallowsindividualstousetheirownpersonalpsychometricscaleformakingpair wisecomparisonsbetweencriteriausedtoevaluatesuppliers Consistencymeasurescanbecalculatedasacross checktodeterminehowwellthescaleisbeingfollowed 11 JITPurchasing Requirements ReducedlotsizesFrequentandreliabledeliveryschedulesReducedandhighlyreliableleadtimesConsistentlyhighqualitylevelsforpurchasedmaterials 12 JITPurchasing Suppliers Fewer nearbysuppliersRepeatbusinessSupportsuppliers competitivenessClustersofremotesuppliersLimitcompetitivebiddingtonewpartsResistverticalintegrationEncouragesupplierstoimplementJITpurchasing 13 JITPurchasing Quantities Steadyoutputrate adesirableprerequisite FrequentdeliveriesinsmalllotquantitiesLong termcontractagreementswithminimalreleasepaperworkDeliverquantitiesvariablefromreleasetoreleasebutfixedforwholecontractterm 14 JITPurchasing Quantities Ctd LittleornopermissibleoverageorunderageofreceiptsSuppliersencouragedtopackageinexactquantitiesSuppliersencouragedtoreducetheirproductionlotsizes orstoreunreleasedmaterial 15 JITPurchasing Quality MinimalproductspecificationsimposedonsupplierHelpsupplierstomeetqualityrequirementsCloserelationshipsbetweenbuyers andsuppliers qualityassurancepeopleSuppliersencouragedtouseprocesscontrolchartsinsteadoflotsamplinginspection 16 JITPurchasing Shipping SchedulingofinboundfreightGaincontrolbyuseofcompany ownedorcontractshippingcontractwarehousingtrailersforfreightconsolidation storage 17 JITPurchasing Benefits ConsistentqualitySavingsonresourcesLowercostsSpecialattentionSavingontoolingLoyaltyassociatedwithlong termrelationshipswithsuppliers 18 GlobalSourcing Originalstrategywastoreduceproductioncosts Changingfocusofglobalpurchasingincludesproductava
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