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1、The Characteristics of Supply Chain ManagementComplexity, Variability, Conflicting Objectives0 1999 Andersen ConsultingOrder Response TimeProduct AvailabilityLead TimeOrder ChangesDue Date PerformanceResource InvestmentAsset ProductivityInventorySupplier & Capacity ContractsLevel ofServiceCost ofSer
2、viceThe Business Challenges1 1999 Andersen ConsultingComplexityVariabilityConflicting ObjectivesWhat are the characteristics of Supply Chan Management, why is it so hard to manage?2 1999 Andersen ConsultingComplexityLead Times Limit FlexibilityLittle or No Predictability and Poor Product Mix?Chronic
3、 CapacityShortagesCurrent Processes and Structures Inhibit PerformanceInventory Used to Cover ProblemsComplications in the Electronics IndustryComplexity in Component / Semiconductor ManufacturingMass customizationPersonalizationProduct mix effects on capacityMultiple optionsContracted vs. owned cap
4、acityCombined make-to-forecast and make-to-orderInverted BOMBinningMulti-stage global production3 1999 Andersen ConsultingUncertainty in the supply chain results in significant variabilityEarlyOn-timeLateEarlyOn-timeLateUnderForecastOverEarlyOn-timeLateCustomer DemandSupplier PerformanceManufacturin
5、gCustomer DeliveriesRawMaterialsFinishedGoodsPast PerformanceMarket ResearchAnalytical TechniqueIncentive ProgramsResponsivenessTransportationLocationQualityProcess DesignProduct DesignCapacityQualityBy Tom Davis4 1999 Andersen ConsultingSupplyChannel OrdersActualLaunchReal ShortageReturns/Cancellat
6、ionsOver-SupplyChannel Fill and Phantom DemandTargetLaunchEnd of LifeTrue End Customer DemandUnits Per PeriodTimeMultiple forecasts and unreliable fulfillment today create the bullwhip effect.5Andersen Consulting 1998Shortened product life cycle has increased the uncertainty.Ramp-upOngoingEnd of Lif
7、eRamp-upOngoingEnd of LifeRole of InventoryHighUsualLowCost of ShortageHighUsualLowCost of OverageLowUsualHighBy Professor Hau L. Lee, Stanford University6 1999 Andersen ConsultingVariabilityNaturalDemandMaterial supplyProductionDistributionSelf-IntroducedReplenishment strategiesPlanning processesIn
8、ventory strategies7 1999 Andersen ConsultingTraditional functional alignments continue to impede Supply Chain Performance. Misaligned Functional Goals & BehaviorsPurchasingManufacturingDistributionSales & Customer ServiceGoal:Behavior:Lowest purchase priceHighest utilizationLowest cost100% customer
9、satisfactionLong lead timesHigh raw material inventory levelLong run lengthsInflexible schedulesHigh WIP inventoryLong order fill timesInflexible schedulesHigh inventoriesPromise flexibility 8 1999 Andersen ConsultingConflicting Objectives - ManufacturingLittles Law Littles LawAssetUtilizationWIPINV
10、CycleTimeVariabilityThroughputWIPCycle TimeVariability9 1999 Andersen ConsultingConflicting Objectives - Customer Littles LawAssetUtilization WIPINVCycleTimeVariabilityOrder Response Time Early WarningsDue Date PerformanceFill Rates10 1999 Andersen ConsultingConflicting Objectives - Corporate Littles LawAsset
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