scm - lecture 01

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Arnold, Chapman, & Clive: Intro Materials

Management, 6thed.

2008 Pearson Education, Upper Saddle River, NJ 07458.

All Rights Reserved.

Waqar Ahmed COMMECS Supply Chain Management

Supply Chain Management

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Management, 6thed.



Waqar Ahmed COMMECS Supply Chain Management

Introduction

Chapter 1

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Management, 6thed.



Waqar Ahmed Iqra University Supply Chain Management

Wealth

What is it?

Where does it come from?

Adding value

Designing the process

Managing the process

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Management, 6thed.




Wealth

Natural resources

Transformation

Conversion

Managing the process

Services

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Management, 6thed.




Operating Environment

Government regulations safety

Economy effects demand shortages and surpluses

Competition is now global reduced costs of transportation communications, reduced costs and increased

speed

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Management, 6thed.




Operating Environment

continued Customers demand

Lower prices

Improved quality Reduced lead time

Improved pre-sale and after-sale service

Product and volume flexibility

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Management, 6thed.


All Rights Reserved.Waqar Ahmed Iqra University Supply Chain Management

Quality

Order Qualifiers:

customer requirements for price, quality,

delivery, etc Order Winners:

those characteristics that persuade customers toselect a product or service

Todays order winners are tomorrows orderqualifiers

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Management, 6thed.



Manufacturing Strategy

Figure 1.1Manufacturing strategy and lead time

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Management, 6thed.



Engineer-to-Order

Manufacturer does not start until the order

is received

Custom designs

Unique products

Long lead time

Inventory purchased after order is received

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Management, 6thed.



Make-to-Order

Manufacturer does not start until the order

is received

Often uses standard components

Little design time

Lead time is reduced

Inventory held as raw materials

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Management, 6thed.



Assemble-to-Order

Manufacturer inventories standard

components

No design time required

Assembly only required

Shorter lead time

Inventory held as standard components

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Management, 6thed.



Make-to-Stock

Manufacturer produces the goods in

anticipation of customer demand

Little customer involvement with design

Shortest lead time

Inventory held as finished goods

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Arnold, Chapman, & Clive: Intro MaterialsManagement, 6thed.

2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.


The Supply Chain Concept

Figure 1.2Supply-production-distribution system

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Arnold, Chapman, & Clive: Intro MaterialsManagement 6th ed

2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved


The Supply Chain Concept

Includes all activities and processes to

supply a product or service to the customer

Links many companies

Has a number of supplier/customer

relationships

May contain intermediaries such as:

wholesalers, warehouses and retailers

scm - lecture 01

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