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business logistics an overview g ran persson handelsh yskolen bi
Business Logistics- an overviewGöran PerssonHandelshøyskolen BI
slide2
Physical DistributionMarketing LogisticsMaterials ManagementLogistics Engineering Production ManagementOperations ManagementIndustrial LogisticsBusiness LogisticsLogistics ManagementIntegrated Logistics ManagementSupply ManagementLogistics pipeline ManagementDistribution ManagementSupply Chain Management
slide3
Business Logistics

• design and management of

• the physical flow of goods

• and the related managerial processes

• from point of origin to end user (or disposal)

slide4
BUSINESS LOGISTICS - a flow orientation

Planning, control and coordination of the

flow of materials and products from the

sources of supply to the final customers

Customers

Suppliers

*

*

*

*

*

*

*

*

*

Regional

warehouses

²

²

²

²

²

²

Raw materials

storage

²

²

²

Finished

goods

storage

²

² ²

O O O

²

Purchasing

Production

Physical distribution

Business logistics

slide5
The logistics process spans most functions

of the business.....

Customer

Order

processing

Manu-

facturing

Distribution

Accounting

Place

order

Report

order

Request

materials

Transmit

order

Scedule

production

Deliver

Funds

Invoice

Sales

Forecasting

Purchasing

Sales

Check

availability

and reorder

Customer

.. demands cross-functional planning,

coordination and control

slide6
Logistics efficiency

Company stucture Variables which strongly

and systems influence the company

efficiency and profitability

The company

organisation

Planning- and

control systems

Transport, ware-

housing and

materials handling

Revenue which varies

with the customer service

The costs of running

the logistics systems

The inventory costs

slide8
Scope of activitiesTransportationStoragePackagingMaterials HandlingOrder ProcessingForecastingProduction PlanningPurchasingCustomer ServiceSite LocationOther Activities
slide9
Reoccuring problem areas and perceived inefficiencies
  • • long lead-times
  • • lead-time variations
  • • throughput time long and uncertain
  • • excess inventories
  • • obsolete materials
  • • many slow-movers
  • • poor service levels
  • • communication and coordination among players
  • (functions, organisations)
  • • poor control
  • • poor forecasts
  • • costs too high
    • - order processing/order handling
    • - transportation
    • - warehouse operation
  • • etc.
slide10
Major tasks for the logistics manager:
  • • Opportunity assessment
    • - Diagnostic review
    • - Pre-study for identifying inefficiencies and opportunities
  • • Logistics infrastructure design and action plan
    • - Exploring the link between overall strategy and logistics
    • - Creating the strategic logistics vision
    • - Evaluating selected options
    • - Develop a logistics strategy
  • • Operational capability improvement
    • - Logistics Process Redesign and Cont. improvement
    • - Creating faster and more reliable processes
    • - Improve flexibility in production and distribution
slide11
• Product flow synchronisation
    • - Synchronised production
    • - Continuous replenishment
    • - Integrated suppliers
    • - Automated ordering
    • - Capacity management
    • - Integrated and coordinated decision making
    • (Acting and reacting as one system)
  • • Organisational issues
    • - Inter-organisational processes
    • - Internal logistics processes
    • - Work processes
slide12
“Flow analysis”

To understand the physical flow of goods

• Where is the capital tied-up

• How long - coverage in days or weeks

• Why is it there - functions

slide13
Gj.sn. leveringstid

bestillt og ikke levert/

input pr. tidsenh.

Gj.sn. leveringstid

bestillt og ikke levert/

output pr. tidsenh.

Kan gjennomføres på

ulike nivåer:

totalt

hovedgrupper

produktgrupper

artikkelnr.nivåen

input/tidsenh.

output/tidsenhet

Gj.sn. gjennomløpstid

  • EKS:
  • Prod. område Dekningstid Variasjon mellom prod.grupper
        • Gj.sn.siste Gj.sn.siste
        • 12 mån Siste mån 12 mån Siste mån
  • A 3 mån 3 mån 2 - 4 mån 1 - 11 mån
  • B 3 mån 5 mån 1 - 2 mån 0 - 40 mån
  • C 4 mån 7 mån 2 - 12 mån 0 - 106 mån
slide14
Basic Techniques
  • (1) DEMAND ANALYSIS
      • Forecasting
      • Forecast error
  • (2) INVENTORY CONTROL
      • Economic Order Quantity
      • Safety stock
      • ABC-analysis
  • (3) PRODUCTION CONTROL (AND WAREHOUSING)
      • Capacity planning
      • Scheduling
      • Lay-out planning
      • Line balancing techniques
  • (4) TRANSPORTATION
      • Location models
      • Routing
      • Sceduling
slide15
FORECASTING
  • • forecast and forecast error
  • expected demand and expected variation
  • • Item, product group, total output
    • - different levels
    • - kr
  • • Two dominating techniques
    • - moving average
    • - exponential smoothing
slide16
INVENTORY CONTROL
    • ... when to order?
    • ... how much?

• Stock has different

functions

meaning: different cost

elements involved

Order quantity

turn-over stock

Safety stock

• Average inventory = turn-over stock + safety stock

• Inventory turn-over = Demand (yr)/av. inventory

• Coverage = actual stock level / output per time unit

slide17
PRODUCTION PLANNING AND CONTROL
  • • Do I have the right capacity?
    • - where are the bottlenecks?
    • - what can be done about them?
  • • Am I working on the right job right now?
    • - priorities?
slide18
TECHNIQUES AND TOOLS (used by logisticians)

• SUPPLY CHAIN MAPPING AND MODELLING

• PERFORMANCE MEASUREMENT TECHNIQUES

• DEMAND FORECASTING AND ANALYSIS

• PRODUCTION MANAGEMENT TECHNIQUES AND TOOLS

• MAINTENANCE MANAGEMENT TECHNIQUES AND TOOLS

• CHANGEOVER REDUCTION PROCESS

• STATISTICAL PROCESS CONTROL

• SUPPLIER ANALYSIS AND ASSESSMENT TECHNIQUES

• SUPPLY MANAGEMENT TECHNIQUES

• ACTIVITY BASED COSTING

• VALUE CHAIN ANALYSIS

• NETWORK ANALYSIS

• BENCHMARKING TECHNIQUES AND TOOLS (databases)

• CHANGE MANAGEMENT TECHNIQUES AND TOOLS

• ORGANISATION DESIGN MODELS

• PROCESS ANALYSIS TOOLS

(such as cause and effect diagrams and process flow charts)

• STATISTICAL ANALYSIS TECHNIQUES AND TOOLS

(such as Pareto charts, histograms & control charts)

slide20
60sTotal costAnalytical approachInternal perspectiveOptimising inventory costsOptimising transportation costsDecision models
slide21
70sSystems TheorySynergyDesign and management of Delivery SystemsHolistic (the flow of materials)Co-ordinationLogistics Management
slide22
80sSystems TheoryJust-in-timeEconomy of Scope vs economy of scaleCapital tied-upZero Defect & Zero InventoryElimination of wasteOrder production
slide23
90sValue chainsCompetitive advantageTime based managementResponsiveness, quality, andproductivity in thelogistics processes
slide24
00sShareholder value

Supply chains

Focus on interorganisational co-laboration

Networks and relationships

Positioning and operational excellence

Supply Chain Management

three perspectives
THREE PERSPECTIVES

CHANNEL

Industry

Comp

Supply Production

Logistics

Finance Marketing/

/Accounting Sales

Comp

Company

Source: Shapiro/Heskett, 1985

three perspectives1
THREE PERSPECTIVES

1. Company

* To create an efficient and effective materials flow

through an effective internal structure and through

an efficient co-ordination of logistics activities

* Focus on internal relationships

* Delivery service, logistics costs and capital tied-up

slide27
2. CHANNEL

* To create an effective co-operation and co-ordination

in the channel, as well as an effective network structure

* Focus on external relations (suppliers of materials,

components, services,and customers)

3. Industry

* To achieve competitiveness through a

logistics strategy

* Customer value and shareholder value

fem trender i utviklingen mot leading edge logistics
Fem trender i utviklingenmot "leading edge logistics"

Fokus på hele verdiskapningskjeden

• konkurranse vs outsourcing

• spesialisering vs koordinering

Prosessorientering

• TQM; TBM; Re-engineering etc.

• Prosessorienterte organisasjonsstrukturer

Kundedrevet strategi :

• "Customer focus" & å skape verdi for kunde

• Differensierte leveringsprosesser

Videre utvikling av strategiske allianser

• Mellom "marked og hierarki"

• Samspill i netverk

• Leverandørsamarbeide

Prosessorienterte målemetoder

• Prosessorientert måling av prestasjon og effektivitet

•• Benchmarking

slide29
Helhet: Logistikkens utvikling i en bedrift

Trinn 1:

Punktinnsatser i verdikjedens ulike ledd. Fokus på

kostnadsreduksjoner i ulike funksjoner, f.eks. innkjøp

eller distribusjon. "Funksjonell kostnadseffektivitet".

Kunde

Lev

F1

F2

F3

slide30
Trinn 2:

Integrasjon av de interne logistikk-prosessene. Fokus

på felles bidrag fra ulike funksjoner for å oppnå en gitt

leveringsservice mot kunde. Samordning av ulike

interne aktører. "Intern kostnadseffektivitet".

Lev

F1

F2

F3

Kund

slide31
Trinn 3:

Synergier gjennom ekstern samordning.Logistikk

som nøkkelelement for å skape konkurransefordeler.

Fokus på hvordan logistikk skaper verdi for kunde.

"Kundetilpasset kostnadseffektiv tillgjenglighet"

Leverandør

Bedriften

Kunde

outsourcing som strategisk tiln rmning
Outsourcing som strategisk tilnærmning

• Konsentrasjon av bedriftens ressurser på

et set av “kjernekompetanser”, hvor man har mulighet

å oppnå en definerbar fordel fremfor konkurrentene

gjennom å skape unik verdi for kunde

• Outsource andre aktiviteter, inkludert mange som

av tradisjon er blitt betraktet som nødvendige interne

aktiviteter og funksjoner

• Skape strategiske allianser med et set komplementære

levrendører for å redusere risiko eller for å skape

konkurransefordeler knyttet til posisjon eller prosess

hvorfor outsourcing
Hvorfor “Outsourcing”?

1. Bedre fokusering på kjernevirksomheten

2. Tilgang til “world-class” produkter/processer/tjenester/teknologi

3. Raskere omstilling

4. Fordele risk

5. Frigjøre ressurser (også ledelsesressurser)

for annen (kjerne-) virksomhet

6. Redusere investeringsbehov - konsentrere

7. Bedre Cash-flow

8. Redusere og styre driftskostnader

9. Ressurser ikke tilgjengelige innen egen organisasjon

10. Funksjonen er vanskelig å lede/styre

Kilde:Outsourcing Institute, 1996

1200 bedrifter i perioden -91/-96

2 prosessorientering som strategi hvordan skape konkurransefordel
2. Prosessorientering som strategi: Hvordan skape konkurransefordel...

1. Posisjonell fordel - strukturell fordel

* Hva og hvor

* Produkt- / marked

2. Prestasjonsfordel - prosess kompetanse

* Hvordan konkurrere gitt posisjonen

* “Operational excellence”

* Hvordan bli "best i klassen"

leveransprocesserna
Fokuseringen flyttas från "funktionell kompetens" till "affärsprocess kompetens", där leverantörerna är integrerade i processen.Leveransprocesserna

Affärs

process

innkj pets betydelse
1. Stor andel av våra kostnader

2. Andelen av de totala kostnaderna ökar

3. Potential: en minskad inköpskrona (eller bättre kostkrona

ytill skillnad från priskrona) är en vinstkrona

4. Leverantören får ökad betydelse för våra leveransprocesser

5. Ökad komplexitet i inköpsarbetet ökar dess betydelse

• köpta produkter och komponenter mer sofistikerade

• högre teknikinnehåll

• andel internationella köp ökar

6. Ny insikt: fördelar med långsiktiga relationer coh allianser

• gemensamma satsningar, öppenhet, ömsesidigt förtroende,

flexibilitet

Innkjøpets betydelse
benchmarking
1. En prosess for å sette realistiske og "riktige" målsettninger

2. Oppdage og forstå hvilken praksis som er nødvendig for å nå målene

3. Motivere og oppmuntre organisasjonen til kontinuerlig forbedring av sine ytelser for at den skal bli mer konkurransedyktig

4. Legitimere kort- og langsiktige mål ved å knytte dem til observerte ytelser hos de ledende konkurrentene

5. Konsentrere organisasjonens oppmerksomhet og innsamot de viktigste leveringsprosessene

Benchmarking
slide39
From..

function

profit

products

transaction

inventory

To...

process

profitability

customers

relationships

information

Leading to...

Integral management of

materials & goods flow

Ressource management

and asset utilization

Focus on markets

and customer service

Co-makership and

co-shipper partnerships

Demand-based replenishment

& quick response systems

europeans leaders prioriterte tiltak
Europeans leaders - prioriterte tiltak

Forbedring av kundeservicen

gjennom

1. TQM

2. Fokus på kjernen

3. Differensiering av

leveranseprosesser

Bedre fleksibilitet gjennom

1. Målstyrte teams

2. Strategiske allianser

3. Prosessorient./TBM

Forbedring av logistikken gjennom

1. Process reenginerring

2. Effktivisering av distr.struktur

3. Målstyrte grupper

4. Omlokalisering

5. Differensiering av leveranseprosesser

vinnarna
1. Kundorientering inom hela organisationen.

2. Flexibel och lärande organisation.

3. Arbeta med värdekedjor, ökat värde för kunden (value added, kvalitet).

4. Individen som pådrivare i förändringsprocessen. Individens och arbetsgruppens förmåga att genomföra förändringar och driva processen måste vara stor.

5. Använda information- och kommunikations- teknologin fullt ut.

Vinnarna
vinnarna1
6. Tid som konkurrensmedel.

7. En tydlig vision som drivkraft.

8. Globalt perspektiv vid utveckling av strategier.

9. Innovationskraft och entreprenörskap.

10. Platta organisationshierarkier, inga hierarkier alls.

11. Nätverksstrukturer.

Vinnarna
ad