supply chain integration: practices & customer values

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UNIDEMI R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA October 17, 2013 Supply Chain Integration: Practices and Customer Values Meysam Maleki [email protected]

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Page 1: Supply Chain Integration: Practices & Customer values

UNIDEMI – R&D Unit in Mechanical & Industrial EngineeringUnidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial

UNIVERSIDADE NOVA DE LISBOA

October 17, 2013

Supply Chain Integration:

Practices and Customer Values

Meysam Maleki

[email protected]

Page 2: Supply Chain Integration: Practices & Customer values

UNIDEMI – R&D Unit in Mechanical & Industrial EngineeringUnidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial

UNIVERSIDADE NOVA DE LISBOA

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Agenda

1. Introduction

– Supply chain integration

– Research questions and objectives

– Methodology

2. Proposed approach

– Data collection

– Data analysis

– Expectations

3. Case studies

– Case study I: Customer values

– Case study II & III: SCI model in the fashion and food industries

4. Conclusion

– Contribution to theory

– Managerial contributions

Page 3: Supply Chain Integration: Practices & Customer values

UNIDEMI – R&D Unit in Mechanical & Industrial EngineeringUnidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial

UNIVERSIDADE NOVA DE LISBOA

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Definition of Supply Chain Management

Lambert, 2008

SCM is the integration of key business processes across

the supply chain for the purpose of creating value for

customers and stakeholders.

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UNIDEMI – R&D Unit in Mechanical & Industrial EngineeringUnidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial

UNIVERSIDADE NOVA DE LISBOA

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Definition of Supply Chain Management

Lambert, 2008

SCM is the integration of key business processes across

the supply chain for the purpose of creating value for

customers and stakeholders.

Integration is embedded in

the definition of SCM

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UNIDEMI – R&D Unit in Mechanical & Industrial EngineeringUnidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial

UNIVERSIDADE NOVA DE LISBOA

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Definition of Supply Chain Management:

Year wise frequency distribution of the keyword "supply chain integration": 2005 till

March 01, 2013 – Generated by Google Trends (the figure is on the scale of 100):

Figure 1.1; Page 3

Lambert, 2008

SCM is the integration of key business processes across

the supply chain for the purpose of creating value for

customers and stakeholders.

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UNIDEMI – R&D Unit in Mechanical & Industrial EngineeringUnidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial

UNIVERSIDADE NOVA DE LISBOA

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Positioning the research are

The literature agrees that a comprehensive SCI is not feasible

owing to barriers such as lack of financial integration, cultural

barriers, and lack of customer-centred metrics, inconsistent

relationships with customers and suppliers and inequality in risk

sharing.

Carter et al., 2009

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UNIDEMI – R&D Unit in Mechanical & Industrial EngineeringUnidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial

UNIVERSIDADE NOVA DE LISBOA

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Positioning the research area

The literature agrees that a comprehensive SCI is not feasible

owing to barriers such as lack of financial integration, cultural

barriers, and lack of customer-centred metrics, inconsistent

relationships with customers and suppliers and inequality in risk

sharing.

Carter et al., 2009

Supply chain

practices

Customer

values

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UNIDEMI – R&D Unit in Mechanical & Industrial EngineeringUnidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial

UNIVERSIDADE NOVA DE LISBOA

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Thesis structure

CHAPTER 1

Overview of the research

issues and objectives

CHAPTER 2

Supply chain integration,

integration models,

Bayesian network,

analytic network process

CHAPTER 3

Comparative analysis,

data collection methods

CHAPTER 4

Proposed model,

framework

CHAPTER 5

Customer value data

analysis, SCI model for

fashion and food

industries

CHAPTER 6

Conclusion and future

work

INTRODUCTION LITERATURE REVIEW METHODOLOGY

CONCEPTUAL MODEL CASE STUDIES CONCLUSION

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UNIVERSIDADE NOVA DE LISBOA

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Research questions

CHAPTER 1

Overview of the research

issues and objectives

CHAPTER 2

Supply chain integration,

integration models,

Bayesian network,

analytic network process

CHAPTER 3

Comparative analysis,

data collection methods

CHAPTER 4

Proposed model,

framework

CHAPTER 5

Customer value data

analysis, SCI model for

fashion and food

industries

CHAPTER 6

Conclusion and future

work

INTRODUCTION LITERATURE REVIEW METHODOLOGY

CONCEPTUAL MODEL CASE STUDIES CONCLUSION

o How can we integrate customer values and SCM practices?

o How can we quantify relations between customer values and SCM

practices?

o What tools can be used in this approach?

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UNIVERSIDADE NOVA DE LISBOA

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Research objectives

CHAPTER 1

Overview of the research

issues and objectives

CHAPTER 2

Supply chain integration,

integration models,

Bayesian network,

analytic network process

CHAPTER 3

Comparative analysis,

data collection methods

CHAPTER 4

Proposed model,

framework

CHAPTER 5

Customer value data

analysis, SCI model for

fashion and food

industries

CHAPTER 6

Conclusion and future

work

INTRODUCTION LITERATURE REVIEW METHODOLOGY

CONCEPTUAL MODEL CASE STUDIES CONCLUSION

o Quantify correlations

among customer values and

practices

o Provide possibility to plan

scenarios

o Study paiwise comparisons

among customer values

o Connect practices in supply

chain with customer values

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UNIVERSIDADE NOVA DE LISBOA

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Flow of materials and information in SC End Customer

Customer valuesManufacturing /

Assembly PracticesLogistics Practices

Interview with

expertsQuestionnaire

ANP Model BN Model

Supply Chain Integration

Model

PHASE 1PHASE 2

PHASE 3

Shared

factors

InputInput

InputInput

Research Methodology

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UNIVERSIDADE NOVA DE LISBOA

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CHAPTER 1

Overview of the research

issues and objectives

CHAPTER 2

Supply chain integration,

integration models,

Bayesian network,

analytic network process

CHAPTER 3

Comparative analysis,

data collection methods

CHAPTER 4

Proposed model,

framework

CHAPTER 5

Customer value data

analysis, SCI model for

fashion and food

industries

CHAPTER 6

Conclusion and future

work

INTRODUCTION LITERATURE REVIEW METHODOLOGY

CONCEPTUAL MODEL CASE STUDIES CONCLUSION

Case studies

CASE STUDY 1

Data collection and data

analysis of customer values

CASE STUDY 2

Development of SCI for the

fashion industry

CASE STUDY 3

Development of SCI for the

food industry

Input

Input

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UNIVERSIDADE NOVA DE LISBOA

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Agenda

1. Introduction

– Supply chain integration

– Research questions and objectives

– Methodology

2. Proposed approach

– Data collection

– Data analysis

– Expectations

3. Case studies

– Case study I: Customer values

– Case study II & III: SCI model in the fashion and food industries

4. Conclusion

– Contribution to theory

– Managerial contributions

Page 14: Supply Chain Integration: Practices & Customer values

UNIDEMI – R&D Unit in Mechanical & Industrial EngineeringUnidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial

UNIVERSIDADE NOVA DE LISBOA

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SCI

conceptual model

Identify industry sector

Identify customer values

Identify manufacturing

practicesIdentify logistics practices

SCI Conceptual Model

Pairwise analyses

[CV1…CVn]

[PM1…PMi] [PL1…PLj]

[PM1] [PMi][CV1…CVn]

[PL1] [PLj][CV1…CVn]

PMi: Manufacturing practices

PLj: Logistics Practices

CVn: Customer values

Data collection from end

customers

Data collection through

interview with experts

[CV1] [CVn]

SCM practices

BN data mining

ANP Analysis

PMi / PLj is

sensitive to CVn

Set BN state as

“Recommended”Yes

Set BN state as “Not

Recommended”

Dat

a C

oll

ecti

on

Dat

a A

nal

ysi

s an

d M

od

el D

evel

op

men

t

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UNIDEMI – R&D Unit in Mechanical & Industrial EngineeringUnidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial

UNIVERSIDADE NOVA DE LISBOA

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SCI

conceptual model

Identify industry sector

Identify customer values

Identify manufacturing

practicesIdentify logistics practices

SCI Conceptual Model

Pairwise analyses

[CV1…CVn]

[PM1…PMi] [PL1…PLj]

[PM1] [PMi][CV1…CVn]

[PL1] [PLj][CV1…CVn]

PMi: Manufacturing practices

PLj: Logistics Practices

CVn: Customer values

Data collection from end

customers

Data collection through

interview with experts

[CV1] [CVn]

SCM practices

BN data mining

ANP Analysis

PMi / PLj is

sensitive to CVn

Set BN state as

“Recommended”Yes

Set BN state as “Not

Recommended”

Dat

a C

oll

ecti

on

Dat

a A

nal

ysi

s an

d M

od

el D

evel

op

men

t

Customer value is the

perception of a customer

about a product or service.

Page 16: Supply Chain Integration: Practices & Customer values

UNIDEMI – R&D Unit in Mechanical & Industrial EngineeringUnidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial

UNIVERSIDADE NOVA DE LISBOA

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SCI

conceptual model

Identify industry sector

Identify customer values

Identify manufacturing

practicesIdentify logistics practices

SCI Conceptual Model

Pairwise analyses

[CV1…CVn]

[PM1…PMi] [PL1…PLj]

[PM1] [PMi][CV1…CVn]

[PL1] [PLj][CV1…CVn]

PMi: Manufacturing practices

PLj: Logistics Practices

CVn: Customer values

Data collection from end

customers

Data collection through

interview with experts

[CV1] [CVn]

SCM practices

BN data mining

ANP Analysis

PMi / PLj is

sensitive to CVn

Set BN state as

“Recommended”Yes

Set BN state as “Not

Recommended”

Dat

a C

oll

ecti

on

Dat

a A

nal

ysi

s an

d M

od

el D

evel

op

men

t

Customer value is the

perception of a customer

about a product or service.

1. Quality

2. Cost

3. Time

4. Customization

5. Know-how

6. Respect for the environment

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UNIDEMI – R&D Unit in Mechanical & Industrial EngineeringUnidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial

UNIVERSIDADE NOVA DE LISBOA

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SCI

conceptual model

Identify industry sector

Identify customer values

Identify manufacturing

practicesIdentify logistics practices

SCI Conceptual Model

Pairwise analyses

[CV1…CVn]

[PM1…PMi] [PL1…PLj]

[PM1] [PMi][CV1…CVn]

[PL1] [PLj][CV1…CVn]

PMi: Manufacturing practices

PLj: Logistics Practices

CVn: Customer values

Data collection from end

customers

Data collection through

interview with experts

[CV1] [CVn]

SCM practices

BN data mining

ANP Analysis

PMi / PLj is

sensitive to CVn

Set BN state as

“Recommended”Yes

Set BN state as “Not

Recommended”

Dat

a C

oll

ecti

on

Dat

a A

nal

ysi

s an

d M

od

el D

evel

op

men

t

Sig

nif

ican

tly

mo

reim

po

rtan

t

Mo

rere

imp

ort

ant

Th

esa

me

imp

ort

ance

mo

reim

po

rtan

t

Sig

nif

ican

tly

mo

reim

po

rtan

t

Cost Quality

4 : 0 3 : 1 2 : 2 1 : 3 0 : 4

Pairwise comparison of

customer values

Page 18: Supply Chain Integration: Practices & Customer values

UNIDEMI – R&D Unit in Mechanical & Industrial EngineeringUnidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial

UNIVERSIDADE NOVA DE LISBOA

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SCI

conceptual model

Identify industry sector

Identify customer values

Identify manufacturing

practicesIdentify logistics practices

SCI Conceptual Model

Pairwise analyses

[CV1…CVn]

[PM1…PMi] [PL1…PLj]

[PM1] [PMi][CV1…CVn]

[PL1] [PLj][CV1…CVn]

PMi: Manufacturing practices

PLj: Logistics Practices

CVn: Customer values

Data collection from end

customers

Data collection through

interview with experts

[CV1] [CVn]

SCM practices

BN data mining

ANP Analysis

PMi / PLj is

sensitive to CVn

Set BN state as

“Recommended”Yes

Set BN state as “Not

Recommended”

Dat

a C

oll

ecti

on

Dat

a A

nal

ysi

s an

d M

od

el D

evel

op

men

t

SCM practices:

Actions employed by firms

in order to achieve their

goals along the chain

• Just in time

• Decrease work in process

• Mixed production planning

• …

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UNIDEMI – R&D Unit in Mechanical & Industrial EngineeringUnidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial

UNIVERSIDADE NOVA DE LISBOA

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SCI

conceptual model

Identify industry sector

Identify customer values

Identify manufacturing

practicesIdentify logistics practices

SCI Conceptual Model

Pairwise analyses

[CV1…CVn]

[PM1…PMi] [PL1…PLj]

[PM1] [PMi][CV1…CVn]

[PL1] [PLj][CV1…CVn]

PMi: Manufacturing practices

PLj: Logistics Practices

CVn: Customer values

Data collection from end

customers

Data collection through

interview with experts

[CV1] [CVn]

SCM practices

BN data mining

ANP Analysis

PMi / PLj is

sensitive to CVn

Set BN state as

“Recommended”Yes

Set BN state as “Not

Recommended”

Dat

a C

oll

ecti

on

Dat

a A

nal

ysi

s an

d M

od

el D

evel

op

men

t

Pairwise comparison of

SCM practices

[PM1] [PMi]

[CV1] [CVn]

[PL1] [PLj]

Manufacturing / Assembly

practices

Logistics practices

Customer values

Page 20: Supply Chain Integration: Practices & Customer values

UNIDEMI – R&D Unit in Mechanical & Industrial EngineeringUnidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial

UNIVERSIDADE NOVA DE LISBOA

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SCI

conceptual model

Identify industry sector

Identify customer values

Identify manufacturing

practicesIdentify logistics practices

SCI Conceptual Model

Pairwise analyses

[CV1…CVn]

[PM1…PMi] [PL1…PLj]

[PM1] [PMi][CV1…CVn]

[PL1] [PLj][CV1…CVn]

PMi: Manufacturing practices

PLj: Logistics Practices

CVn: Customer values

Data collection from end

customers

Data collection through

interview with experts

[CV1] [CVn]

SCM practices

BN data mining

ANP Analysis

PMi / PLj is

sensitive to CVn

Set BN state as

“Recommended”Yes

Set BN state as “Not

Recommended”

Dat

a C

oll

ecti

on

Dat

a A

nal

ysi

s an

d M

od

el D

evel

op

men

t

Customer values have three states:

• Important

• Neutral

• Not important

SCP practices have two states:

• Recommended

• Not recommended

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UNIVERSIDADE NOVA DE LISBOA

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Expectations from the SCI

conceptual model

1. Present the current state

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UNIVERSIDADE NOVA DE LISBOA

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Expectations from the SCI

conceptual model

1. Present the current state

2. Monitor scenarios

If customer value X is important, which SCM practice is

more recommended

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UNIVERSIDADE NOVA DE LISBOA

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Expectations from the SCI

conceptual model

1. Present the current state

2. Monitor scenarios

If customer value X is important, which SCM practice is

more recommended

If we implement practice Y, how does it contribute to the

customer values.

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UNIDEMI – R&D Unit in Mechanical & Industrial EngineeringUnidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial

UNIVERSIDADE NOVA DE LISBOA

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Agenda

1. Introduction

– Supply chain integration

– Research questions and objectives

– Methodology

2. Proposed approach

– Data collection

– Data analysis

– Expectations

3. Case studies

– Case study I: Customer values

– Case study II & III: SCI model in the fashion and food industries

4. Conclusion

– Contribution to theory

– Managerial contributions

Page 25: Supply Chain Integration: Practices & Customer values

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UNIVERSIDADE NOVA DE LISBOA

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Case studies Pairwise comparison of

customer values

Data analysis

CASE STUDY 1

CASE STUDY 2 & 3

Import analysis of customer value dataInterview with experts in the respected

industry

Identify importance of SCM practices

with respect to customer values

Development of the integration model

Imp

ort

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UNIVERSIDADE NOVA DE LISBOA

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Case Study # 1: Customer values

Time Customization

Know-how

Respect

environment

CostQuality

Automotive Electronics Furniture Food Fashion Pharmaceutical

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UNIVERSIDADE NOVA DE LISBOA

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Case Study # 1: Customer values

Time Customization

Know-how

Respect

environment

CostQuality

Automotive Electronics Furniture Food Fashion Pharmaceutical

Customer value coefficient in 6

industries

Coefficient of Cost in

Electronics industry is: 0.23

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UNIVERSIDADE NOVA DE LISBOA

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Case Study 2 & 3: SCI model in Fashion and

Food industries

Company namePosition of

intervieweeCountry Industry sector

Upward UnlimitedSupply chain

specialistUSA Fashion

Sopplan Director New Zealand Food

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UNIVERSIDADE NOVA DE LISBOA

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29

Case Study 2 & 3: SCI model in Fashion and

Food industries

Company namePosition of

intervieweeCountry Industry sector

Upward UnlimitedSupply chain

specialistUSA Fashion

Sopplan Director New Zealand Food

Food industry

Constant products

Local market influences

Short time to market

Complex network of suppliers

Not season sensitive products

Fashion industry

Highly changing products

Global market influences

Long time to market

Simple network of suppliers

Season sensitive products

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Case Study # 2: SCI model in fashion industry

Quality

Not important

Neutral

Important

15%

29%

56%

Cost

Not important

Neutral

Important

21%

29%

50%

Know-how

Not important

Neutral

Important

46%

36%

17%

Customization

Not important

Neutral

Important

37%

33%

30%

Respect environment

Not important

Neutral

Important

26%

35%

39%

Time

Not important

Neutral

Important

58%

29%

13%

Phase1: Analysis of customer values

Bayesian network of customer values in the

fashion industry- Generated by GeNIe 2.0

Dataset volume: 131

Order of customer

values with respect to

“important” priority

1. Quality

2. Cost

3. Respect Env.

4. Customization

5. Know-how

6. Time

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UNIVERSIDADE NOVA DE LISBOA

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Case Study # 2: SCI model in fashion industry

Quality

Not important

Neutral

Important

15%

29%

56%

Cost

Not important

Neutral

Important

21%

29%

50%

Know-how

Not important

Neutral

Important

46%

36%

17%

Customization

Not important

Neutral

Important

37%

33%

30%

Respect environment

Not important

Neutral

Important

26%

35%

39%

Time

Not important

Neutral

Important

58%

29%

13%

Phase1: Analysis of customer values

Bayesian network of customer values in the

fashion industry- Generated by GeNIe 2.0

Dataset volume: 131

End customers prefer

to sacrifice Time to

get higher value on

other dimensions.

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Case Study # 2: SCI model in fashion industry

Phase1: Analysis of customer values

Bayesian network of customer values in the fashion industry- Generated by GeNIe 2.0

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Case Study # 2: SCI model in fashion industry

Phase 2: Pairwise comparison of SCM

practices with respect to customer values

Criteria

Cost Customization Know-how Quality Respect env Time

Alternative Manufacturing Practices

Cross functional oprations

Decrease work in process

Implement standards

Mixed production planning

Use recyclable materials

Alternative Logistics Practices

Implement standards

Information sharing with customer

Just in time

Visibility to up/down stream inventories

The ANP clusters: criteria and alternatives

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Case Study # 2: SCI model in fashion industry

Phase 2: Pairwise comparison of SCM

practices with respect to customer values

The ANP clusters: criteria and alternatives

Screenshot from SuperDecisions 2.2.6

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ClustersNorm.

values

Logis

tics

Pra

ctic

es

Implementing logistics standards0.03

Information Sharing with

Customer 0.09

Just in Time 0.10

Visibility to upstream /

downstream inventories 0.11

Man

ufa

ctu

rin

g

Pra

ctic

es

Cross functional operations 0.14

Decrease work in process 0.20

Implement standards 0.14

Mixed production planning 0.12

Use recyclable materials 0.05

Com

par

iso

n c

rite

rio

n Cost 0.29

Customization 0.11

Know-how 0.06

Quality 0.16

Respect Environment 0.07

Time 0.30

Case Study # 2: SCI model in fashion industry

Phase 2: Pairwise comparison of SCM

practices with respect to customer values

The ANP clusters: criteria and alternatives

Notice: Time was the least

important value from

customer’s perspective,

while it is the most

important from expert’s

perspective.

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Case Study # 2: SCI in fashion industry

Phase 3: Development of SCI model in the fashion industry

Quality

Not important

Neutral

Important

15%

29%

56%

Cost

Not important

Neutral

Important

21%

29%

50%

Customization

Not important

Neutral

Important

37%

33%

30%

Respect environment

Not important

Neutral

Important

26%

35%

39%

Time

Not important

Neutral

Important

58%

29%

13%

Q 3

Recommended

Not Recommended19%

81%

Q 4

Recommended

Not Recommended11%

89%

Q 5

Recommended

Not Recommended4%

96%

Q 6

Recommended

Not Recommended3

97%

Q 7

Recommended

Not Recommended6%

94%

Q 8

Recommended

Not Recommended6%

94%

Q 9

Recommended

Not Recommended7%

93%

Q 1

Recommended

Not Recommended13%

87%

Q 2

Recommended

Not Recommended31%

69%

T 1

Recommended

Not Recommended14%

86%

T 2

Recommended

Not Recommended21%

79%

T 3

Recommended

Not Recommended14%

86%T 4

Recommended

Not Recommended12%

88%

T 6

Recommended

Not Recommended3%

97%

T 5

Recommended

Not Recommended6%

94%

T 7

Recommended

Not Recommended9%

91%

T 8

Recommended

Not Recommended10%

90%

T 9

Recommended

Not Recommended11%

89%

C 1

Recommended

Not Recommended11%

89%

C 4

Recommended

Not Recommended12%

88%

C 3

Recommended

Not Recommended11%

89%

C 2

Recommended

Not Recommended21%

79%

C 5

Recommended

Not Recommended4%

96%

C 7

Recommended

Not Recommended5%

95%

C 8

Recommended

Not Recommended12%

88%

C 6

Recommended

Not Recommended3%

97%

C 9

Recommended

Not Recommended14%

86%

Cu 2

Recommended

Not Recommended18%

82%

Cu 1

Recommended

Not Recommended22%

78%

Cu 4

Recommended

Not Recommended13%

91%

Cu 3

Recommended

Not Recommended13%

87%

Cu 5

Recommended

Not Recommended5%

95%

Cu 6

Recommended

Not Recommended3%

97%

Cu 7

Recommended

Not Recommended8%

92%

Cu 8

Recommended

Not Recommended9%

91%

Cu 9

Recommended

Not Recommended9%

91%

R 1

Recommended

Not Recommended11%

89%

R 4

Recommended

Not Recommended10%

90%

R 2

Recommended

Not Recommended18%

82%

R 3

Recommended

Not Recommended23%

77%

R 5

Recommended

Not Recommended11%

89%

R 6

Recommended

Not Recommended2%

98%

R 7

Recommended

Not Recommended6%

94%

R 8

Recommended

Not Recommended5%

95%

R 9

Recommended

Not Recommended8%

92%

Know-how

Not important

Neutral

Important

46%

36%

18%

K 1

Recommended

Not Recommended13%

87%

K 2

Recommended

Not Recommended18%

82%

K 3

Recommended

Not Recommended14%

86%

K 4

Recommended

Not Recommended12%

88%

K 5

Recommended

Not Recommended5%

95%

K 6

Recommended

Not Recommended4%

96%

K 7

Recommended

Not Recommended13%

87%

K 8

Recommended

Not Recommended10%

90%

K 9

Recommended

Not Recommended11%

89%

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Case Study # 3: SCI model in food industry

Phase1: Analysis of customer values

Bayesian network of customer values in the

food industry- Generated by GeNIe 2.0

Dataset volume: 131

Quality

Not important

Neutral

Important

12%

25%

63%

Cost

Not important

Neutral

Important

28%

25%

47%

Know-how

Not important

Neutral

Important

43%

34%

23%

Customization

Not important

Neutral

Important

48%

29%

24%

Respect environment

Not important

Neutral

Important

27%

33%

41%

Time

Not important

Neutral

Important

54%

26%

19%

Order of customer

values with respect to

“important” priority

1. Quality

2. Cost

3. Respect Env.

4. Customization

5. Know-how

6. Time

Page 38: Supply Chain Integration: Practices & Customer values

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Case Study # 3: SCI model in food industry

Phase 2: Pairwise comparison of SCM

practices with respect to customer values

Criteria

Cost Customization Know-how Quality Respect env Time

Alternative Manufacturing Practices

Cross functional oprations

Decrease work in process

Implement standards

Mixed production planning

Use recyclable materials

Alternative Logistics Practices

Implement standards

Information sharing with customer

Just in time

Visibility to up/down stream inventories

The ANP clusters: criteria and alternatives

ClustersNormalize

d values

Logis

tics

Pra

ctic

es

Implementing logistics

standards 0.01

Information Sharing with

Customer 0.04

Just in Time 0.02

Visibility to upstream /

downstream inventories 0.02

Man

ufa

cturi

ng

Pra

ctic

es

Cross functional operations 0.22

Decrease work in process 0.15

Implement standards 0.42

Mixed production planning 0.09

Use recyclable materials 0.02

Com

par

ison

cri

teri

on Cost 0.25

Customization 0.05

Know-how 0.11

Quality 0.51

Respect Environment 0.015

Time 0.06

Page 39: Supply Chain Integration: Practices & Customer values

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Case Study # 3: SCI in food industry

Phase 3: Development of SCI model in the food industry

Quality

Not important

Neutral

Important

12%

25%

63%

Cost

Not important

Neutral

Important

28%

25%

47%

Customization

Not important

Neutral

Important

48%

29%

23%

Respect environment

Not important

Neutral

Important

27%

33%

41%

Time

Not important

Neutral

Important

54%

26%

19%

Q 3

Recommended

Not Recommended48%

52%

Q 4

Recommended

Not Recommended9%

91%

Q 5

Recommended

Not Recommended2%

92%

Q 6

Recommended

Not Recommended1%

99%

Q 7

Recommended

Not Recommended3%

97%

Q 8

Recommended

Not Recommended2%

98%

Q 9

Recommended

Not Recommended2%

98%

Q 1

Recommended

Not Recommended18%

82%

Q 2

Recommended

Not Recommended16%

84%

T 1

Recommended

Not Recommended21%

79%

T 2

Recommended

Not Recommended17%

83%

T 3

Recommended

Not Recommended40%

60%T 4

Recommended

Not Recommended9%

91%

T 6

Recommended

Not Recommended1%

99%

T 5

Recommended

Not Recommended2%

98%

T 7

Recommended

Not Recommended4%

96%

T 8

Recommended

Not Recommended2%

98%

T 9

Recommended

Not Recommended2%

98%

C 1

Recommended

Not Recommended29%

71%

C 4

Recommended

Not Recommended9%

91%

C 3

Recommended

Not Recommended37%

63%

C 2

Recommended

Not Recommended12%

88%

C 5

Recommended

Not Recommended2%

98%

C 7

Recommended

Not Recommended4%

96%

C 8

Recommended

Not Recommended2%

98%

C 6

Recommended

Not Recommended1%

99%

C 9

Recommended

Not Recommended3%

97%

Cu 2

Recommended

Not Recommended14%

86%

Cu 1

Recommended

Not Recommended24%

76%

Cu 4

Recommended

Not Recommended9%

91%

Cu 3

Recommended

Not Recommended36%

64%

Cu 5

Recommended

Not Recommended2%

98%

Cu 6

Recommended

Not Recommended1%

99%

Cu 7

Recommended

Not Recommended7%

93%

Cu 8

Recommended

Not Recommended3%

97%

Cu 9

Recommended

Not Recommended3%

97%

R 1

Recommended

Not Recommended16%

84%

R 4

Recommended

Not Recommended8%

92%

R 2

Recommended

Not Recommended10%

90%

R 3

Recommended

Not Recommended30%

70%

R 5

Recommended

Not Recommended9%

91%

R 6

Recommended

Not Recommended3%

97%

R 7

Recommended

Not Recommended10%

90%

R 8

Recommended

Not Recommended7%

93%

R 9

Recommended

Not Recommended7%

93%

Know-how

Not important

Neutral

Important

43%

34%

23%

K 1

Recommended

Not Recommended23%

77%

K 2

Recommended

Not Recommended13%

87%

K 3

Recommended

Not Recommended42%

58%

K 4

Recommended

Not Recommended11%

89%

K 5

Recommended

Not Recommended2%

98%

K 6

Recommended

Not Recommended1%

99%

K 7

Recommended

Not Recommended4%

96%

K 8

Recommended

Not Recommended2%

98%

K 9

Recommended

Not Recommended2%

98%

Page 40: Supply Chain Integration: Practices & Customer values

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Case Study # 3: SCI in food industry

Play the videoGenerated by GeNIe 2.0

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Case Study # 3: Scenario monitoring

PracticesNormal

state

“respect

environment”

is important

Difference

Logis

tics

Pra

ctic

es

Implementing logistics standards 3% 7% +4%

Information Sharing with Customer 10% 19% +9%

Just in Time 7% 13% +6%

Visibility to up/down stream inventories 7% 13% +6%

Man

ufa

cturi

ng

Pra

ctic

es

Cross functional operations 16% 7% -9%

Decrease work in process 10% 4% -6%

Implement standards 30% 13% -17%

Mixed production planning 8% 5% -3%

Use recyclable materials 9% 19% +10%

If “Respect Env” is grounded as “important”

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Agenda

1. Introduction

– Supply chain integration

– Research questions and objectives

– Methodology

2. Proposed approach

– Data collection

– Data analysis

– Expectations

3. Case studies

– Case study I: Customer values

– Case study II & III: SCI model in the fashion and food industries

4. Conclusion

– Contribution to theory

– Managerial contributions

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Conclusions

Although development of a comprehensive model is not feasible

but it is possible to shed light to some of its aspects.

Identifying correlations between customer values and SCM

practices is one step toward development of SCI model.

Combination of ANP and BN as tools leads to quantifying mutual

correlations between customer values and practices, also it provides

platform to monitor variety of scenarios.

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ConclusionsQuantifying mutual correlations between customer values and

SCM practices assist decision makers to:

Provides an illustrative presentation of the current state of

the chain

Align internal activities in their firms with expectations of

the end customers

Truly understand which value is more preferred by the end

customers

Predict the market influence of their practices

Page 45: Supply Chain Integration: Practices & Customer values

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Acknowledgments

• DEMIo Prof. V. Cruz Machado

o Teachers

o Staffs

o Students and friends

• Case companieso Eric Hargraves, Upward Limited Inc., USA

o John Chase, Sopplan, New Zealand

• Softwareo GeNIe 2.0: Decision Systems Laboratory, University of Pittsburgh

o Super Decisions 2.2.6: Creative Decisions Foundation, Pittsburgh