Ummc supply chain mgmt
1 / 40

UMMC – Supply Chain Mgmt. - PowerPoint PPT Presentation

  • Uploaded on

UMMC – Supply Chain Mgmt. Course 1 Introduction to Supply Chain Management Concepts Mike Almich and Tony Bucko. Course List. Intro to SC Concepts Financials Logistics and Distribution Purchasing Inventory Management 1 Inventory Management 2 SC Technology Production Management

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
Download Presentation

PowerPoint Slideshow about ' UMMC – Supply Chain Mgmt.' - dore

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Ummc supply chain mgmt
UMMC – Supply Chain Mgmt.

Course 1

Introduction to Supply Chain Management Concepts

Mike Almich and Tony Bucko

Course list
Course List

  • Intro to SC Concepts

  • Financials

  • Logistics and Distribution

  • Purchasing

  • Inventory Management 1

  • Inventory Management 2

  • SC Technology

  • Production Management

  • Quality Control and Improvement

What will we cover today
What will we cover today?

  • Importance of SC Management

  • Development of the SC Concept

  • Components of SC Management

  • Flow of Materials and Information

  • Issues and Challenges

  • Opportunities

What is scm
What is SCM

  • Supply chain management can be viewed as a pipeline or conduit for the efficient and effective flow of products/materials, services, information, and financials

Importance of scm
Importance of SCM

  • Dollars

    • SCM expenses average 25% of U.S. corporate budgets

    • Dollar value of U.S. inventory in 2004 equal to U.S. federal budget

  • Leverage

    • Cost reductions in SCM go directly to bottom line

    • Efficiency is amplified in ROA

    • SCM have direct effect on customer perceptions (timely delivery, quality, etc)

  • Opportunity

    • SCM has much opportunity for improvement in most organizations

Development of the Supply Chain Concept

Physical Distribution Concept

Logistics Management Concept

Value Chain Concept


Physical distribution concept
Physical Distribution Concept

  • 1950s and 1960s

  • Focused on outbound logistics

    • Logical due to value of finished goods

  • Total systems costs and analyzing tradeoff scenarios

Logistics management concept
Logistics Management Concept

  • 1970s and 1980s

  • LMC integrated inbound logistics into the Physical Distribution Concept

  • Came about due to deregulation of transportation

  • More international sourcing also led to focusing on inbound side

Logistics Management Concept

Physical supply Physical distribution

materials management outbound logistics

inbound logistics

Value chain concept
Value Chain Concept

  • 1990s

  • Further deregulation in the areas of finance and communication

  • Developed as a tool for evaluating competitive advantage

  • Integrated sales, marketing, purchasing, and manufacturing with logistics.

Supply chain management
Supply Chain Management

  • Mid 1990’s to present

  • Globalization

  • Technology

  • Organizational consolidation

  • The empowered consumer

Supply chain management2
Supply Chain Management

  • Organizational Consolidation

    • Move from adversarial relationships with suppliers to collaborative relationship

Supply chain management3
Supply Chain Management

  • The Empowered Consumer

    • Technology and globalization has shifted power to the consumer

    • This increases pressure on supply chain

Scm components
SCM Components

  • Financials

  • Inventory Management

  • Logistics and Distribution

  • Supply/Demand Management

  • SC Technology

  • Production Management

  • Quality Control and Improvement

  • Purchasing


  • Basic Business Financials

    • Income Statement

    • Balance Sheet

    • Cash Flow Statement

    • General Ledger

      • Accounting Practices

      • ROA/ROI


The Supply Chain Financial Impact

  • A major financial objective for any organization is to produce a satisfactory return for stockholders.

  • The absolute size of the profit must be considered in relation to the stockholders’ net investment, or net worth.

  • An organization’s financial performance is also judged by the profit it generates in relationship to the assets utilized, or return on assets (ROA).

  • The supply chain plays a critical role in determining the level of profitability in an organization.

Inventory management
Inventory Management

  • In U.S. Inventory investment averages about 14% of GDP or $2.1 Trillion

  • When to Order/How much to Order

  • Balancing Supply with Demand

  • Large Impacts on Financials and Customer Service

Inventory management1
Inventory Management

  • Critical Decision-making for Inventory Control

    • Quantity Issues

    • Classifying Inventory

    • Timing Issues

    • Systems for Inventory Control

      • Continuous/Periodic

        • Two Bin/Kanban

Inventory management2
Inventory Management

  • Approaches of Inventory Management

    • JIT

    • MRP and DDMRP

    • EOQ

      • Fixed Order Quantity/Order Interval

        • Condition of certainty

        • Condition of Uncertainty

Logistics distribution

  • In U.S. Logistics and Distribution accounts for 8.3% of GDP or $1.2 Trillion (2010)

  • The physical flow of goods and services up and down the supply chain

  • Critical to demand fulfillments

Supply demand management
Supply/Demand Management

  • Focused efforts to manage input fluctuations

  • Focused efforts to process, influence, manage, and anticipate customer demand


Supply demand management1
Supply/Demand Management

  • VMI

  • EDI

  • CPFR

  • Bullwhip Effect

  • Buyer/Seller Relationships

Sc technology
SC Technology

  • Supports critical supply chain capabilities and strategies

  • A well-designed SCIS framework links people, processes, and technology in a manner that provides actionable information and enhances decision making.

Production management
Production Management

  • Production Systems

    • Made to Stock (MTS)

    • Assemble to Order (ATO)

    • Make to Order (MTO)

    • Engineer to Order (ETO)

  • Push/Pull Systems

Quality control and improvement
Quality Control and Improvement

  • Service Process Design/Analysis

    • Factors Influencing Process Design

  • Strategic Importance

  • Continuous Process Improvement

  • Pareto Analysis

  • Ishikawa Diagrams

  • Modeling Principles

Quality control and improvement1
Quality Control and Improvement

  • Lean Principles

  • 6 Sigma

  • Benchmarking

  • Just-In-Time

  • TQM (Total Quality Management)

  • ISO:9000


  • Purchasing Activities

  • Strategic Sourcing

  • Vendor Management

  • Total Cost of Ownership

So what can we do
So what can we do?

  • Control our costs

    • Reduce Pricing to reduce cost

    • Reduce variation/standardize product to reduce costs

    • Manage our Inventory