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Course by J.PONS Evolution of the concept of logistics From Logistics to SCM To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003.

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Présentation au sujet: "Course by J.PONS Evolution of the concept of logistics From Logistics to SCM To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003."— Transcription de la présentation:

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2 Course by J.PONS Evolution of the concept of logistics From Logistics to SCM To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved.

3 Course by J.PONS Course Plan To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved.

4 3 Copyright 1999 ç CIF Europe Logistics Contents Introduction : from Logistics to SCM I. Operational logistics II. Functional logistics III. Strategical logistics IV. Place of logistics in the companys organization chart V.Place and importance of transport VI. Interface between physical & financial flows VII. Construction of an international physical flow.

5 Course by J.PONS Preambule Logistics in constant rebuiling To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved.

6 5 Copyright 1999 ç CIF Europe Evolution of logistics concept Logistics, for a long time, was confined to the execution of tasks such as : transport, storage, handling, conditionning, have moved upstairs over the last twenty years and now represents a strategic function.

7 6 Copyright 1999 ç CIF Europe Strategic logistics challenge Logistics & strategic feasability : Industrial Purchasing commercial No tactics without logistics «When logistics say no, it means they are right» Dwight EISENHOWER

8 7 Copyright 1999 ç CIF Europe Evolution of logistics concept De facto, no current corporate strategy must be undertaken without having consulted Logistics : -whether upstream with industrial strategies or purchasing strategies -Whether downstream with distribution strategies which are now, under the impulsion of the OMC, one a global scale. -These new strategies indeed require logistics at a more complex level in terms of customer techniques and transport.

9 8 Copyright 1999 ç CIF Europe Logistics in constant Rebuilding upstream logistics rebuilding Production unit specialisation Production delocalisation Postponment crossdocking «worldwide» OEM localisation

10 9 Copyright 1999 ç CIF Europe Logistics in constant rebuilding downstream logistics rebuilding Reduction of products life cycle Promotions Crossdocking E-commerce et « last mile » Global trading Logistics & Marketing

11 10 Copyright 1999 ç CIF Europe Logistics in constant rebuilding downstream strategies worldwide distribution Consumption and production are more and more geographically separated (delocalisation). Regions are spezialized in the commodities they can produce more efficiently (specialisation) Logistics activities provide the bridge between production and market locations

12 11 Copyright 1999 ç CIF Europe Logistics in constant rebuilding Permanent changing business logistics practices due to : Permanent changing business logistics practices due to : Growing internationalization and globalization Growing internationalization and globalization Shifting toward more service-oriented economies Shifting toward more service-oriented economies Computer software available to assist in solving practical-size problems (SCE, SCEM, APS,…) Computer software available to assist in solving practical-size problems (SCE, SCEM, APS,…)

13 Course by J.PONS Introduction Evolution of the logistics concept since one century To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved.

14 13 Copyright 1999 ç CIF Europe Supply Chain Mangement Evolution of logistics concept Focus of these lessons Focus of these lessons From From operational logistics operational logistics through through functional Logistics functional Logistics to to strategic logistics strategic logistics

15 14 Copyright 1999 ç CIF Europe J.PONS cursus & Logistics evolution Experience in operational logistics Secrétaire Général by GONDRAND Cie (3PL) Experience in functional logistics Operation manager by ALCATEL Group (imotics) Experience in sectorial logistics Operation manager by CE2M (automotive sector) Consulting (4PL) Manager by Anetys

16 15 Copyright 1999 ç CIF Europe J.PONS cursus & Logistics evolution Teachers cross-functional curriculum presentation : by GONDRAND : learning of the importance of mastering all the logistics tools like transportation, warehousing, packaging, handling, customs aspects for international supply chain : SAD, transit (T1), Common Tariff, economic customs arrangements

17 16 Copyright 1999 ç CIF Europe SCM Operational logistics

18 17 Copyright 1999 ç CIF Europe 1 PL or transport for own account First level logistics 1LP or One single logistics partner To perform their logistics, companies initially managed to organize themselves with their own vehicle fleet (transport for own account).

19 18 Copyright 1999 ç CIF Europe 2PL Two-level logistics Or 2PL ( principal and logistics supplier) Most companies outsourced at least the "low levels" of logistics, starting with transport operations, working with several public carriers to atomized professions (monoparcels, groupings, lots).

20 19 Copyright 1999 ç CIF Europe 3PL During the middle of the 1990s Companies have discovered the benefits of hiring outside, or third party, logistics expert to manage the total flow of products. The trend towards enterprises focusing on their core activities has also affected logistics. By abandoning this function, enterprises have allowed a true market for service provision to emerge in the sector.

21 20 Copyright 1999 ç CIF Europe 3PL Three-level logistics or 3PL and LLP (principal, logistics supplier executors' guarantor). Then the best world management practices led companies to generally reduce the number of suppliers and mainly the number of carriers. The 3PLs gradually developed concentric service companies with stronger added value, leading to carrying out more varied tasks such as cross-docking, co-manufacturing, co-packing, tracing & tracking..

22 21 Copyright 1999 ç CIF Europe 4PL « Supply chain integrator that assembles, manages the resources, capabilities & technology of its own organisation with those of complementary service providers to deliver a comprehensive supply chain solution» (Andersen Consulting). A 4PL is ideally placed to choose the best of breed in each category by integrating 3PL Providers, management and IT consultants to form a high-level alliance. It is through this collection of companies that a 4PL is formed, with the lead consultancy at the epicentre.

23 22 Copyright 1999 ç CIF Europe 4PL The 4PL: Physical flow Consultant Analysts and Supply Chain Optimisers To further optimize the logistics chain, company call on specialized logistics consultants who add on a 4th level of parties involved (or 4th Party Logistics). These 4PLs can be 3PLs who are not execution subcontractors, but who plan and coordinate physical flows executed by natural operators (2PLs) or providers of a supply chain (3PLs). They innovate and thus reduce total costs.

24 23 Copyright 1999 ç CIF Europe 5 PL The 5PL: Integrators of execution software As a final development, physical flow consultants (4PL), has to incorporate experts in the integration of logistics information systems (5PL) to fully pilot information, sharing between clients, suppliers and 3PLs.

25 24 Copyright 1999 ç CIF Europe Operational logistics Experience by GONDRAND Experience by GONDRAND Transportation management Transportation management Physical distribution Physical distribution Materials management Materials management Clearance procedure Clearance procedure From 2PL to 3PL From 2PL to 3PL

26 25 Copyright 1999 ç CIF Europe Field of operational Logistics Inventory maintenance Inventory maintenance Order processing Order processing Purchasing Purchasing Warehousing Warehousing Materials handling Materials handling Packaging Packaging Customer service standards Customer service standards Product scheduling Product scheduling

27 26 Copyright 1999 ç CIF Europe GONDRAND operational approach : carriage, customs, warehousing Import and export procedures. SAD : EX1n r 3 = the only relevant document for proving the export and justify the Tax Free Invoice IM4 n r 8 = delivered to the Importer and justifies the payment of eventual customs duties and taxes Inland Clearance Depot / CRD Nomenclature : Harmonised System, Combined Nomenclature 8 Binding Nomenclature Information BNI/RTC Origine: associated countries (EU & EFTA, EU & Magreb/Machrack). Binding Origin Information BOI / RTO EUR1, ATR1, Certificate of origin Form A Customs value: CIF,CIP,DAF price Release for free consumption : VAT T1 : transit title Economic customs arrangement (jobprocessing, duty suspension)

28 27 Copyright 1999 ç CIF Europe European Union (25) intrastat VAT EFTA Israël Turkey (ATR1) EUR 1 + DAU PTOM ACP EUR1 +VAT GPS USA... Canada New Zealand Taiwan Certificate of origin Form A Maghreb Machrach + VAT declaration Free entrance, free consumption processes

29 28 Copyright 1999 ç CIF Europe GONDRAND operational approach : customs procedure Import and export procedures with a Single Administration Document Export procedure with the first exemplars EX1n r 3 = the only relevant document for proving the export and justify the Tax Free Invoice IMPORT & Free Practice process (last three exemplars) IM4 n r 8 = delivered to the Importer and justifies the payment of eventual customs duties and taxes Inland Clearance Depot / CRD

30 29 Copyright 1999 ç CIF Europe GONDRAND operational approach : carriage, customs, warehousing Import and export procedures. Nomenclature : Harmonised System, Combined Nomenclature 8 Binding Nomenclature Information BNI/RTC

31 30 Copyright 1999 ç CIF Europe GONDRAND operational approach : carriage, customs, warehousing Import and export procedures. Origine: associated countries (EU & EFTA, EU & Magreb / Machrack, ACP, Yaoundé). Binding Origin Information BOI / RCO EUR1, ATR1, Certificate of origin Form A (China) for goods under quota.

32 31 Copyright 1999 ç CIF Europe GONDRAND operational approach : carriage, customs, warehousing Import and export procedures. Free Practice process : customs value Release for free consumption : VAT calculation T1, T2, TIR : transit title Economic customs arrangement : job-processing, duty suspension, economic customs arrangement, temporary importation arrangements, returned goods relief, inward or outward processing relief arrangements

33 32 Copyright 1999 ç CIF Europe Key activities transportation Mode and transport service selection Mode and transport service selection Freight consolidation (FCL) Freight consolidation (FCL) Carrier routing Carrier routing Vehicle scheduling Vehicle scheduling Equipment selection Equipment selection Claims processing Claims processing Rate auditing Rate auditing

34 33 Copyright 1999 ç CIF Europe Key activities inventory management Raw material and finidhed goods stocking policies Raw material and finidhed goods stocking policies Short-term sales forecasting Short-term sales forecasting Product mix at stocking points Product mix at stocking points Number, size, and location of stocking points Number, size, and location of stocking points JIT, push and pull strategies JIT, push and pull strategies

35 34 Copyright 1999 ç CIF Europe Key activities order processing Sales order-inventory interface procedures Sales order-inventory interface procedures Order information transmittal methods Order information transmittal methods Ordering rules Ordering rules

36 35 Copyright 1999 ç CIF Europe Support activities warehousing Support activities (depending on the circumstances) Warehousing Warehousing Space determination Space determination Stock layout and dock design Stock layout and dock design Warehouse configuration Warehouse configuration Stock placement Stock placement

37 36 Copyright 1999 ç CIF Europe Support activities materials handling Equipment selection Equipment selection Equipment replacement policies Equipment replacement policies Order picking procedures Order picking procedures Stock storage and retrieval Stock storage and retrieval

38 37 Copyright 1999 ç CIF Europe SCM Functional logistics Logistics & Procurement

39 38 Copyright 1999 ç CIF Europe ALCATEL Group Imotic sector functional approach Logistics & Purchasing function Case exposed : sourcing of EOM for active network products

40 39 Copyright 1999 ç CIF Europe ALCATEL Group Imotic sector functional approach Teachers cross-functional curriculum presentation : by ALCATEL : learning how logistics improves purchasing and procurement functions

41 40 Copyright 1999 ç CIF Europe ALCATEL Group Imotic sector « Domotic » or home automation: to make a flat « smart » like with the « blue tooth » technology of Ericson. « Imotic » : to make an Office-building « smart » Everywhere possibility to receive voice, images, data

42 41 Copyright 1999 ç CIF Europe ALCATEL Group Imotic sector 3 Kinds of components items : Cable : optical fiber (100 billions bits/second), coaxial cable, simple wire Leaders Pirelli, Nexans (Ex Alcatel Câble) Connectics : AMP, Areva (Framatome Connectics), AMPHENOL Active network products (modem, transceivers, repeaters) Supplier : Birktech.

43 42 Copyright 1999 ç CIF Europe Functional logistics experience by ALCATEL experience by ALCATEL Purchasing & Logistics Difference in the decision criteria Ex : LCL/FCL (sea carriage) « Paying load » rule (air carriage)

44 43 Copyright 1999 ç CIF Europe Purchaser/Logistician decision criteria comparison PURCHASER –OEM Sourcing –EOQ (Wilson) –Stocks level –Acquisition costs –obsolescence –Quality – Production and delivery time –Units –Innovation & development capacities LOGISTICIAN OEM localisation –Multimodal approach: Sea Air – FCL/LCL, –Price –Quality – Transit Time – Units – W/M ratio – « paying for » rule

45 Weight orVolume tarification Sea transport : 1 ton / 1cm W/M at ships convenience Road transport : 1 ton/ 3 cm Air transport : 1 ton / 6 cm (soon 1 ton / 5 cm) Ex : 24 cm3 and 300 Kgs. taxation : 24cm/6 = 400 Kgs

46 « paying for » rule (road/air) weight slot with degressive tariffs the « paying for » rule consists in applying to a good, a superior weight than its real weight, based on a more favorable tarification, at customers convenience. Ex : tarification from 20 to 45 kg : 5/kg 45 to 60 kg : 3/kg Normal tarification : 40 kg x 5 = 200 « paying for » rule : 45 kg x 3 = 135

47 46 Copyright 1999 ç CIF Europe Air / Sea Volume : 6 m 3 Weight : 1 tonne Air freight : 3 /kg Sea freight : 300 / tonnage or cubic meter 1 t1 cmSea 300 Air t2 cm t2 cm t4 cm t6 cm

48 Tarification: air quotes Flat rate Special rates Corates ULD / Unit Load Devices

49 Tarification : Sea quotes flat rate (+) or (-) CAF (currency Adjustment factor) (+) or (-) BAF (bunkerage Adjustment factor) + Congestion + Outport additionnal + Hazardous + MEES

50 49 Copyright 1999 ç CIF Europe Functional logistics experience by CE2M experience by CE2M Fabrication of automotive cable bundles Fabrication of automotive cable bundles Logistics challenge The 7 Rs by Shigeo Shingo : Zero Inventory, Delivery Time, Defect, Paper, Incident, breakdown, Scorn

51 50 Copyright 1999 ç CIF Europe SCM by CE2M automotive supplier in cable bundles : coping with the challenge and constraints of Seven Rs imposed by BOSCH Gmbh (right amount of the right product at the right place at the right time in the right condition at the right price with the right information and no SCORN) JIT, lower inventory, EOQ, make to order, make to stock, assemble to order, inventory management

52 Right inventory zéro stock Inventory Management To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved.

53 52 Copyright 1999 ç CIF Europe Les Modules R/3 de SAP : Achats et stocks (MM) MM permet à l entreprise de gérer ses stocks et son approvisionnement dans le cadre des opérations courantes. Ses principales composantes : – Approvisionnement (achats) – Gestion des stocks – Méthode du point de commande – Contrôle de la facturation – Valorisation des stocks – Évaluation des fournisseurs – Gestion des services externes – Système d information des achats et système d information du contrôle des stocks.

54 53 Copyright 1999 ç CIF Europe Gestion des stocks Problématique Satisfaire des besoins futurs mal connus, tout en minimisant les coûts eux-mêmes, en passant des commandes dont la livraison est soumise à aléas Les logiciels SCM ne règlent pas tout Il faut une étroite collaboration entre les services : achats, production, entretien, ventes, compta, finances, informatique, personnel, administration, magasins, DG.

55 54 Copyright 1999 ç CIF Europe Gestion des stocks pourquoi constituer un stock?. Pénurie Retard livraison Hausse des prix Retard de production Stocks de pièces de rechange pour éviter arrêt de production Bénéficier remises sur prix dachat, sur frais de port Éviter achats fréquents Objectif spéculatif Nécessité liée à saisonnalité de production (céréales) ou de la demande (jouets) Bonification de certains produits (cognac, bois) Satisfaction immédiate de la demande.

56 55 Copyright 1999 ç CIF Europe Gestion des stocks Définition et nature du stock Ensemble des produits accumulés en attente de consommation (lorsque le produit sort du stock) Nature du stock en fonction de leur utilisation ultérieure : Produits finis vendus en létat, produits finis prêts à la vente. Matières premières entrant dans produit fini Matières consommables nécessaires à la production et au fonctionnement de lentreprise Emballages Produits semi-finis, semi-ouvrés, WIP Résidus de fabrication

57 56 Copyright 1999 ç CIF Europe Gestion des stocks Partie constitutive du stock Quantité en stock Stock de protection Stock actif temps Stock théorique Stock réel

58 57 Copyright 1999 ç CIF Europe Gestion des stocks Stock actif : partie destinée à satisfaire la demande Stock de protection ou de sécurité : partie destinée à satisfaire une demande supérieure à la moyenne prévue ou à parer aux conséquences dun retard de livraison. Stock stratégique : pour les produits sensibles, stock fixé par DG.

59 58 Copyright 1999 ç CIF Europe Gestion des stocks Coût du stock Frais dacquisition générés par la constitution et le renouvellement du stock Frais de possession Frais de rupture générés par une défaillance du stock qui nest plus à même de satisfaire la demande.

60 59 Copyright 1999 ç CIF Europe Gestion des stocks Coût du stock Frais de rupture -Très élevés, mais non chiffrables à priori -Recours à laérien, aux intégrateurs, au lieu de solutions classiques route ou maritime. -Coût de la solution de remplacement -Coût dannulation de contrat, etc…

61 60 Copyright 1999 ç CIF Europe II. Gestion des stocks Coût du stock Frais dacquisition constitués de : Frais de fonctionnement du service achats (entre et /an/personne) Contrôle qualité Réception en magasin (10% en moyenne des frais de fonctionnement du magasin soit entre et /an/personne) Frais de fonctionnement de la comptabilité matière (entrées en stock) entre et / an/ personne Frais de fonctionnement de la comptabilité fournisseur et coût de lémission des instruments de paiement des factures liées aux achats de produits stockés (30 à 60% des factures reçues), entre et /an/personne Frais informatiques : gestion des commandes des produits stockés (12 à 30 /article/an), gestion du stock (10 à 40 /article/an), traitement comptable des entrées en stocks (1 à 3 /entrée). Frais élevés qui atteignent 1,5 à 4,5% environ des achats. Frais moyens par commande : entre 40 et 300 Frais moyens par produit :

62 61 Copyright 1999 ç CIF Europe Gestion des stocks Politique du stock Zéro Applicable si risque et coût de rupture faibles. Conditions à réunir : -Sources dapprovisionnement sûres grâce à une sélection rigoureuse de fournisseurs- partenaires. -Appareil de production souple -Maintenance préventive et politique de qualité -Sélection de Personnel qualifié et adhésion au projet dentreprise.

63 62 Copyright 1999 ç CIF Europe Inventory Stock of items held to meet future demand Inventory management answers two questions How much to order When to order

64 63 Copyright 1999 ç CIF Europe Types of Inventory Raw materials Purchased parts and supplies Labor In-process (partially completed products) Component parts Working capital Tools, machinery, and equipment

65 64 Copyright 1999 ç CIF Europe Reasons to Hold Inventory Meet unexpected demand Smooth seasonal or cyclical demand Meet variations in customer demand Take advantage of price discounts Hedge against price increases Quantity discounts

66 65 Copyright 1999 ç CIF Europe Two Forms of Demand Dependent Items used to produce final products Independent Items demanded by external customers

67 66 Copyright 1999 ç CIF Europe Inventory Costs Carrying Cost Cost of holding an item in inventory Ordering Cost Cost of replenishing inventory Shortage Cost Temporary or permanent loss of sales when demand cannot be met

68 67 Copyright 1999 ç CIF Europe Inventory Control Systems Continuous system (fixed-order-quantity) Constant amount ordered when inventory declines to predetermined level Periodic system (fixed-time-period) Order placed for variable amount after fixed passage of time

69 68 Copyright 1999 ç CIF Europe ABC Classification System Demand volume and value of items vary Classify inventory into 3 categories, typically on the basis of the dollar value to the firmPERCENTAGE CLASSOF UNITSOF DOLLARS A B3015 C

70 69 Copyright 1999 ç CIF Europe ABC Classification 1$ PARTUNIT COSTANNUAL USAGE Example 10.1

71 70 Copyright 1999 ç CIF Europe ABC Classification Example $ PARTUNIT COSTANNUAL USAGE TOTAL% OF TOTAL% OF TOTAL PARTVALUEVALUEQUANTITY% CUMULATIVE 9$30, , , , , , , , , , $85,400

72 71 Copyright 1999 ç CIF Europe ABC Classification Example $ PARTUNIT COSTANNUAL USAGE TOTAL% OF TOTAL% OF TOTAL PARTVALUEVALUEQUANTITY% CUMULATIVE 9$30, , , , , , , , , , $85,400 A B C

73 72 Copyright 1999 ç CIF Europe ABC Classification Example $ PARTUNIT COSTANNUAL USAGE TOTAL% OF TOTAL% OF TOTAL PARTVALUEVALUEQUANTITY% CUMMULATIVE 9$30, , , , , , , , , , $85,400 A B C % OF TOTAL CLASSITEMSVALUEQUANTITY A9, 8, B1, 4, C6, 5, 10,

74 73 Copyright 1999 ç CIF Europe ABC Classification 100 – 80 – 60 – 40 – 20 – 0 – |||||| % of Quantity % of Value A B C

75 74 Copyright 1999 ç CIF Europe Assumptions of Basic EOQ Model Demand is known with certainty and is constant over time No shortages are allowed Lead time for the receipt of orders is constant The order quantity is received all at once

76 75 Copyright 1999 ç CIF Europe The Inventory Order Cycle Demand rate Time Lead time Order placed Order receipt Inventory Level Reorder point, R Order quantity, Q 0 Figure 10.1

77 76 Copyright 1999 ç CIF Europe EOQ Cost Model D - annual demand C o - cost of placing order C c - annual per-unit carrying cost Q - order quantity Annual ordering cost = CoDQCoDQ Annual carrying cost = CcQ2CcQ2 Total cost = + CoDQCoDQ CcQ2CcQ2

78 77 Copyright 1999 ç CIF Europe EOQ Cost Model Slope = 0 Total Cost Order Quantity, Q Annual cost ($) Minimum total cost Optimal order Q opt Carrying Cost = CcQ2CcQ2 Ordering Cost = CoDQCoDQ Figure 10.2

79 78 Copyright 1999 ç CIF Europe EOQ Cost Model D - annual demand C o - cost of placing order C c - annual per-unit carrying cost Q - order quantity Annual ordering cost = CoDQCoDQ Annual carrying cost = CcQ2CcQ2 Total cost = + CoDQCoDQ CcQ2CcQ2 TC = + CoDQCoDQ CcQ2CcQ2 = + CoDQ2CoDQ2 Cc2Cc2 TC Q 0 = + C0DQ2C0DQ2 Cc2Cc2 Q opt = 2CoDCc2CoDCc Deriving Q opt Proving equality of costs at optimal point = CoDQCoDQ CcQ2CcQ2 Q 2 = 2CoDCc2CoDCc Q opt = 2CoDCc2CoDCc

80 79 Copyright 1999 ç CIF Europe EOQ Example D = 10,000 yards C c = $0.75 per yard C o = $150 Q opt = 2CoDCc2CoDCc 2(150)(10,000) (0.75) Q opt = 2,000 yards Example 10.2

81 80 Copyright 1999 ç CIF Europe EOQ Example TC = + CoDQCoDQ CcQ2CcQ2 (150)(10,000) 2,000 (0.75)(2,000) 2 TC = $750 + $750 = $1,500 Example 10.2 D = 10,000 yards C c = $0.75 per yard C o = $150 Q = 2,000

82 81 Copyright 1999 ç CIF Europe EOQ Example Orders per year =D/Q =10,000/2,000 =5 orders/year Example 10.2 D = 10,000 yards C c = $0.75 per yard C o = $150

83 82 Copyright 1999 ç CIF Europe EOQ Example Order cycle time =311 days/(D/Q) =311/5 =62.2 store days Example 10.2 D = 10,000 yards C c = $0.75 per yard C o = $150

84 83 Copyright 1999 ç CIF Europe EOQ with Noninstantaneous Receipt Inventory level Time 0 Order receipt period Begin order receipt End order receipt Figure 10.3 d=demand rate p=production rate slope =p-d

85 84 Copyright 1999 ç CIF Europe EOQ with Noninstantaneous Receipt Q(1-d/p) Inventory level (1-d/p) Q2Q2 Time 0 Order receipt period Begin order receipt End order receipt Maximum inventory level Average inventory level Figure 10.3

86 85 Copyright 1999 ç CIF Europe EOQ with Noninstantaneous Receipt p = production rated = demand rate Maximum inventory level =Q - d =Q 1 - QpQp dpdp Average inventory level = 1 - Q2Q2 dpdp TC = dpdp CoDQCoDQ CcQ2CcQ2 Q opt = 2C o D C c 1 - dpdp

87 86 Copyright 1999 ç CIF Europe Production Quantity C c = $0.75 per yardC o = $150D = 10,000 yards d = 10,000/311 = 32.2 yards per dayp = 150 yards per day Q opt = = = 2,256.8 yards 2C o D C c 1 - dpdp 2(150)(10,000) TC = = $1,329 dpdp CoDQCoDQ CcQ2CcQ2 Production run = = = days per order QpQp 2, Example 10.3

88 87 Copyright 1999 ç CIF Europe Production Quantity C c = $0.75 per yardC o = $150D = 10,000 yards d = 10,000/311 = 32.2 yards per dayp = 150 yards per day Q opt = = = 2,256.8 yards 2C o D C c 1 - dpdp 2(150)(10,000) TC = = $1,329 dpdp CoDQCoDQ CcQ2CcQ2 Production run = = = days per order QpQp 2, Example 10.3 Number of production runs = = = 4.43 runs/year DQDQ 10,000 2,256.8 Maximum inventory level =Q 1 - = 2, =1,772 yards dpdp

89 88 Copyright 1999 ç CIF Europe Quantity Discounts Price per unit decreases as order quantity increases TC = + + PD CoDQCoDQ CcQ2CcQ2 where P = per unit price of the item D = annual demand

90 89 Copyright 1999 ç CIF Europe Quantity Discounts Price per unit decreases as order quantity increases TC = + + PD CoDQCoDQ CcQ2CcQ2 where P = per unit price of the item D = annual demand

91 90 Copyright 1999 ç CIF Europe Quantity Discount Model Figure 10.4 Q opt Carrying cost Ordering cost Inventory cost ($) Q( d 1 ) = 100Q( d 2 ) = 200 TC ( d 2 = $6 ) TC ( d 1 = $8 ) TC = ($10 )

92 91 Copyright 1999 ç CIF Europe Quantity Discount QUANTITYPRICE $1, , C o =$2,500 C c =$190 per computer D =200 Q opt = = = 72.5 PCs 2CoDCc2CoDCc 2(2500)(200) 190 TC = + + PD = $233,784 C o D Q opt C c Q opt 2 For Q = 72.5 TC = + + PD = $194,105 CoDQCoDQ CcQ2CcQ2 For Q = 90 Example 10.4

93 92 Copyright 1999 ç CIF Europe When to Order Reorder Point is the level of inventory at which a new order is placed R = dL where d = demand rate per period L = lead time

94 93 Copyright 1999 ç CIF Europe Reorder Point Example Demand = 10,000 yards/year Store open 311 days/year Daily demand = 10,000 / 311 = yards/day Lead time = L = 10 days R = dL = (32.154)(10) = yards Example 10.5

95 94 Copyright 1999 ç CIF Europe Safety Stocks Safety stock –buffer added to on hand inventory during lead time Stockout –an inventory shortage Service level –probability that the inventory available during lead time will meet demand

96 95 Copyright 1999 ç CIF Europe Variable Demand with a Reorder Point Figure 10.5 Reorder point, R Q LT Time LT Inventory level 0

97 96 Copyright 1999 ç CIF Europe Reorder Point with a Safety Stock Figure 10.6 Reorder point, R Q LT Time LT Inventory level 0 Safety Stock

98 97 Copyright 1999 ç CIF Europe Reorder Point With Variable Demand R = dL + z d L where d=average daily demand L=lead time d =the standard deviation of daily demand z=number of standard deviations corresponding to the service level probability z d L=safety stock

99 98 Copyright 1999 ç CIF Europe Reorder Point for a Service Level Probability of meeting demand during lead time = service level Probability of a stockout R Safety stock dL Demand z d L Figure 10.7

100 99 Copyright 1999 ç CIF Europe Reorder Point for Variable Demand The carpet store wants a reorder point with a 95% service level (a 5% stockout probability) d= 30 yards per day L= 10 days d = 5 yards per day For a 95% service level, z = 1.65 R= dL + z d L = 30(10) + (1.65)(5) (10) = yards Example 10.6

101 100 Copyright 1999 ç CIF Europe Order Quantity for a Periodic Inventory System Q = d(t b + L) + z d t b + L - I where d= average demand rate t b = the fixed time between orders L= lead time d = standard deviation of demand z d t b + L = safety stock I= inventory level

102 101 Copyright 1999 ç CIF Europe Fixed-Period Model with Variable Demand d= 6 bottles per dayL= 5 days d = 1.2 bottles I = 8 bottles t b = 60 daysz = 1.65 (for a 95% service level) Q= d(t b + L) + z d t b + L - I = (6)(60 + 5) + (1.65)(1.2) = bottles

103 102 Copyright 1999 ç CIF Europe Strategic Decisions in Operations Products Processes and Technology Capacity Human Resources Quality Facilities Sourcing Services Operating Systems Figure 2.2

104 103 Copyright 1999 ç CIF Europe Products & Services Make-to-order Made to customer specifications after order received Made to customer specifications after order received Make-to-stock Made in anticipation of demand Made in anticipation of demand Assemble-to-order Add options according to customer specification Add options according to customer specification

105 104 Copyright 1999 ç CIF Europe Processes & Technology Project One-time production of product to customer order One-time production of product to customer order Batch production Process many jobs at same time in batch Process many jobs at same time in batch Mass production Produce large volumes of standard product for mass market Produce large volumes of standard product for mass market Continuous production Very high volume commodity product Very high volume commodity product

106 105 Copyright 1999 ç CIF Europe Production models and Inventory types (Zero Inventory) according to the APICS ATP : Available To Promise (flow production) Necessity of having big inventories BTO : Built To Order (job production) Plain-carrier, prototype, little batches No needs of finish product inventories ATO : Available to Order (batch production) Postponment : car manufacturing

107 106 Copyright 1999 ç CIF Europe Product-Process Matrix Volume Low LowHighHigh Projects Batch Production Mass Production Continuous Production Standardization Figure 2.3

108 107 Copyright 1999 ç CIF Europe Service-Process Matrix Volume Low LowHighHigh Professional Service Service Shop Mass Service Service Factory Standardization Figure 2.4

109 108 Copyright 1999 ç CIF Europe 2 nd topic 7 "R"s & Logistics excellence Fulfilment rate Tools Right amount DRP + JIT Right product TQM Right place DRP + ECR Right time JIT Right condition TQM Right price JIT + ABC + QFD Right information EDI + ERP + CALS +XML

110 Just in…trouble zéro délai Just-In-Time and Lean Production To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved.

111 110 Copyright 1999 ç CIF Europe What is JIT ? Producing only what is needed, when it is needed A philosophy An integrated management system JITs mandate: Eliminate all waste

112 111 Copyright 1999 ç CIF Europe Basic Elements of JIT 1.Flexible resources 2.Cellular layouts 3.Pull production system 4.Kanban production control 5.Small-lot production

113 112 Copyright 1999 ç CIF Europe Basic Elements of JIT 6.Quick setups 7.Uniform production levels 8.Quality at the source 9.Total productive maintenance 10.Supplier networks

114 113 Copyright 1999 ç CIF Europe Figure 11.1 Waste in Operations

115 114 Copyright 1999 ç CIF Europe Figure 11.1 Waste in Operations

116 115 Copyright 1999 ç CIF Europe Figure 11.1 Waste in Operations

117 116 Copyright 1999 ç CIF Europe Flexible Resources Multifunctional (cross-trained) workers General purpose machines Study operators and improve operations

118 117 Copyright 1999 ç CIF Europe Standard Operating Routine for a Worker Standard Operating Routine Sheet 1 Worker:Russell Cycle Time:2 min Order ofOperations time Operations:10:20:30:40:501:001:101:201:301:401:502:00 Pick up material Unload/ load machine 1 Unload/ load machine 2 Unload/ load machine 3 Inspect/ pack Figure 11.2

119 118 Copyright 1999 ç CIF Europe Cellular Layouts Group dissimilar machines in manufacturing cell to produce family of parts Work flows in one direction through cell Cycle time adjusted by changing worker paths

120 119 Copyright 1999 ç CIF Europe Manufacturing Cell with Worker Routes Worker 1 Worker 2 Worker 3 Cell 1 Figure 11.3

121 120 Copyright 1999 ç CIF Europe Worker Routes Lengthened as Volume Decreases Cell 5 Worker 2 Cell 2 Worker 1 Cell 1 Worker 3 Cell 3Cell 4 Figure 11.4

122 121 Copyright 1999 ç CIF Europe The Pull System Material is pulled through the system when needed Reversal of traditional push system where material is pushed according to a schedule Forces cooperation Prevents over and underproduction

123 122 Copyright 1999 ç CIF Europe Kanban Production Control System Kanban card indicates standard quantity of production Derived from two-bin inventory system Kanban maintains discipline of pull production Production kanban authorizes production Withdrawal kanban authorizes movement of goods

124 123 Copyright 1999 ç CIF Europe A Sample Kanban

125 124 Copyright 1999 ç CIF Europe The Origin of Kanban Reorder card Bin 1 Bin 2 Q - R Kanban R R Q = order quantity R = reorder point - demand during lead time Figure 11.5 b) Kanban inventory system a) Two-bin inventory system

126 125 Copyright 1999 ç CIF Europe Types of Kanbans Figure 11.6

127 126 Copyright 1999 ç CIF Europe Types of Kanbans Figure 11.6

128 127 Copyright 1999 ç CIF Europe Types of Kanbans Figure 11.6

129 128 Copyright 1999 ç CIF Europe Types of Kanbans Kanban Square –Marked area designed to hold items Signal Kanban –Triangular kanban used to signal production at the previous workstation Material Kanban –Used to order material in advance of a process Supplier Kanbans –Rotate between the factory and suppliers

130 129 Copyright 1999 ç CIF Europe Determining Number of Kanbans Number of Kanbans = average demand during lead time + safety stock container size whereN = number of kanbans or containers d = average demand over some time period L = lead time to replenish an order S = safety stock C = container size N = dL + S C

131 130 Copyright 1999 ç CIF Europe Determining the Number of Kanbans d = 150 bottles per hour S = 0.10(150 x 0.5) = 7.5 L = 30 minutes = 0.5 hours C = 25 bottles Round up to 4 (to allow some slack) or down to 3 (to force improvement) N= = = = 3.3 kanbans or containers dL + S C (150 x 0.5) Example 11.1

132 131 Copyright 1999 ç CIF Europe Small-Lot Production Requires less space and capital investment Moves processes closer together Makes quality problems easier to detect Makes processes more dependent on each other

133 132 Copyright 1999 ç CIF Europe Inventory Hides Problems

134 133 Copyright 1999 ç CIF Europe Lower Levels of Inventory Expose Problems

135 134 Copyright 1999 ç CIF Europe Components of Lead Time Processing time Reduce number of items or improve efficiency Move time Reduce distances, simplify movements, standardize routings Waiting time Better scheduling, sufficient capacity Setup time Generally the biggest bottleneck

136 135 Copyright 1999 ç CIF Europe SMED Principles 1.Separate internal setup from external setup 2.Convert internal setup to external setup 3.Streamline all aspects of setup 4.Perform setup activities in parallel or eliminate them entirely

137 136 Copyright 1999 ç CIF Europe Common Techniques for Reducing Setup Time Figure 11.8

138 137 Copyright 1999 ç CIF Europe Common Techniques for Reducing Setup Time Figure 11.8

139 138 Copyright 1999 ç CIF Europe Common Techniques for Reducing Setup Time Figure 11.8

140 139 Copyright 1999 ç CIF Europe Uniform Production Results from smoothing production requirements Kanban systems can handle +/- 10% demand changes Smooths demand across planning horizon Mixed-model assembly steadies component production

141 140 Copyright 1999 ç CIF Europe Mixed-Model Sequencing Example 11.2

142 141 Copyright 1999 ç CIF Europe Quality at the Source Jidoka is authority to stop production line Andon lights signal quality problems Undercapacity scheduling allows for planning, problem solving and maintenance Visual control makes problems visible Poka-yoke prevents defects

143 142 Copyright 1999 ç CIF Europe Visual Control Figure 11.9

144 143 Copyright 1999 ç CIF Europe Visual Control Figure 11.9

145 144 Copyright 1999 ç CIF Europe Visual Control Figure 11.9

146 145 Copyright 1999 ç CIF Europe Kaizen Continuous improvement Requires total employment involvement Essence of JIT is willingness of workers to Spot quality problems Halt production when necessary Generate ideas for improvement Analyze problems Perform different functions

147 146 Copyright 1999 ç CIF Europe Total Productive Maintenance (TPM) Breakdown maintenance –Repairs to make failed machine operational Preventive maintenance –System of periodic inspection and maintenance to keep machines operating TPM combines preventive maintenance and total quality concepts

148 147 Copyright 1999 ç CIF Europe TPM Requirements Design products that can be easily produced on existing machines Design machines for easier operation, changeover, maintenance Train and retrain workers to operate machines

149 148 Copyright 1999 ç CIF Europe TPM Requirements Purchase machines that maximize productive potential Design preventive maintenance plan spanning life of machine

150 149 Copyright 1999 ç CIF Europe Supplier Policies 1.Locate near to the customer 2.Use small, side loaded trucks and ship mixed loads 3.Consider establishing small warehouses near to the customer or consolidating warehouses with other suppliers

151 150 Copyright 1999 ç CIF Europe Supplier Policies 4.Use standardized containers and make deliveries according to a precise delivery schedule 5.Become a certified supplier and accept payment at regular intervals rather than upon delivery

152 151 Copyright 1999 ç CIF Europe Benefits of JIT 1.Reduced inventory 2.Improved quality 3.Lower costs 4.Reduced space requirements 5.Shorter lead time 6.Increased productivity 7.Greater flexibility

153 152 Copyright 1999 ç CIF Europe Benefits of JIT 8.Better relations with suppliers 9.Simplified scheduling and control activities 10.Increased capacity 11.Better use of human resources 12.More product variety

154 153 Copyright 1999 ç CIF Europe JIT Implementation Use JIT to finely tune an operating system Somewhat different in USA than Japan JIT is still evolving JIT isnt for everyone

155 154 Copyright 1999 ç CIF Europe JIT in Services Competition on speed & quality Multifunctional department store workers Work cells at fast-food restaurants Just-in-time publishing for textbooks Construction firms receiving material just as needed

156 155 Copyright 1999 ç CIF Europe SCM Right Time JIT or « Just in Trouble » Integrators ; FedEx, UPS, DHL, TNT PG « Blue Banana »

157 156 Copyright 1999 ç CIF Europe

158 157 Copyright 1999 ç CIF Europe Blue Banana The so-called « Blue Banana » belt constitutes the economic heart of the European Community, accounting for 2/3 of GNP. The regions of France (the North, the East, and the Southeast) are well placed on its periphery as sites for logistics platforms, being less congested than areas within it.

159 158 Copyright 1999 ç CIF Europe II. Aircraft Companies Internl traffic Lufthansa (6,5 MTK) Korean Air ways (5,7) Singapore AL (5,4) AF (4,7) BA JAL FedEx KLM Cathay Pacific United A Northwest Nippon Cargo UPS (15) National traffic FedEx (6,054) UPS (4 232) United A (0,958) Northwest A (0,765) AA FedEx Delta A L ANA China Southern A JAL Varig Air Canada China Eastern A Total traffic FedEx (14 632) (100%) AF + KLM (9 059) UPS (7 295) (100%) Lufhansa (7 158) (14%) Singapore (6 909) (24%) Korean (6 247) (29%) JAL (5 024) (10%) AF (4 862) (25%) Cathay (4 854) (28%) China (4 600) (39%) BA (4 210) (6%) KLM (4 197) (16%) Cargolux (4 157) (98%) United A (3658) (5%) Northwest (3 578) (8%)

160 159 Copyright 1999 ç CIF Europe II. Accident rates since 1990 Aero Peru Cubana Air Zimbabwe China Airline Royal Jordanian Turkish Airlines Air India Egypt Air Air Tran (Value Jet) USA Korean Airways 16,7 accidents/1 million of flight 15,2 12,5 10 8,82 7,3 6,82 6,67 5,88 5,38

161 160 Copyright 1999 ç CIF Europe III. Travelers Airport (in Mio travelers) Atlanta Hartsfield Chicago OHare LA London Dallas Tokyo Haneda Francfurt San Francisco Paris CDG Denver 73,5 72,5 61,2 60,6 60,4 51,5 42,7 40,1 38,7 36,8 (Source : Airports Council Il)

162 161 Copyright 1999 ç CIF Europe III.Freight Airports ( in MT 2000 ) Memphis (Headoffice of Fedex) HK LA Tokyo NY (JFK) Anchorage Seoul Miami Francfort Chicago Singapour Louisville London (LHR) Paris (CDG) Amsterdam 2,412 1,989 1,952 1,841 1,737 1,676 1,655 1,651 1,539 1,532 1,523 1,486 1,355 1,226 1,225 (Source:Airports Council Il)

163 162 Copyright 1999 ç CIF Europe IX. Integrators FedEx Created in ,3 m colis/day towards 210 countries employees warehouses &10 hubs 663 plains vehicules Turn over 19 M$ in 2001 Network : Memphis, Subic Bay, Dubaï, Paris. UPS Created in ,5 m colis/day towards 200 countries employees 1713 warehouses & 15 hubs 500 plains vehicules Turn over 24,8 M$

164 163 Copyright 1999 ç CIF Europe IX. Integrator DHL Created in countries employees 3002 agences et 35 hubs 252 plains vehicules EDI Connection Turn over : 0,2 m$

165 164 Copyright 1999 ç CIF Europe SCM Right product TQM & 6 Sigma Defect company (cf GE) Juran, Deming Gemba Kaizen & Gembutsu « to make the rocks lower » « to pursue the last grain into the corner » « When you are clean on the floor, you will be clean in your head »

166 165 Copyright 1999 ç CIF Europe KAIZEN (Zero Defect ) to keap his house in order Seiri (trier, to sort) Seiton (ranger, to straighten) Seiso (nettoyer, to scrub) Seiketsu (systématiser, to systematize) Shitsuke (standardiser, to standardize)

167 166 Copyright 1999 ç CIF Europe Gemba KAIZEN (Zero Defect) Struggle against the 7 wastes (Muda) Muda (surproduction) (pull production) Muda (storage) (stock holding costs dont create VA) Muda (refurbishing) (costly defective pieces) Muda (moving) (plant lay out) Muda (unnecessary treatment) (tasks elemination) Muda (waiting) (unbusy operator, Men muda)

168 167 Copyright 1999 ç CIF Europe SCM Paperless Production ERP, WMS, SCM Electronic Data Interchange (EDI) EDIFACT Web-EDI XML

169 Paperless production zéro papier Enterprise Resource Planning To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved.

170 169 Copyright 1999 ç CIF Europe Enterprise Resource Planning (ERP) Organizes and manages a companys business processes by sharing information across functional areas Connects with supply-chain and customer management applications

171 170 Copyright 1999 ç CIF Europe ERP Modules Figure 12.1

172 171 Copyright 1999 ç CIF Europe ERPs Central Database Finance & Accounting Sales & Marketing Human Resources Production & Materials Management ERP Data Repository Figure 12.2

173 172 Copyright 1999 ç CIF Europe ERP Implementation First step is to analyze business processes –Which processes have the biggest impact on customer relations? –Which process would benefit the most from integration? –Which processes should be standardized? Use of Internet portals can aid implementation

174 173 Copyright 1999 ç CIF Europe Customer Relationship Management (CRM) Plans and executes business processes that involve customer interaction Changes focus from managing products to managing customers Point-of-sale data is analyzed for patterns used to predict future behavior

175 174 Copyright 1999 ç CIF Europe Supply Chain Management Supply chain planning Supply chain execution Supplier relationships Distinctions between ERP and SCM are becoming increasingly blurred

176 175 Copyright 1999 ç CIF Europe Collaborative Product Commerce (CPC) New product design and development and product life cycle management Integrates customers and suppliers in the design process though the entire product life cycle

177 176 Copyright 1999 ç CIF Europe Collaborative Product Commerce (CPC) Customer Relationship Management (CRM) Enterprise Resource Planning (ERP) Collaborative Product Commerce (CPC) Supply Chain Management (SCM) Time to Market Time to Customer Customers Product Design Suppliers Collaborative Design Manufacture & Delivery Collaborative Manufacture DFMA Figure 12.3

178 177 Copyright 1999 ç CIF Europe Connectivity A very difficult problem Enterprise Application Integration (EAI) solutions EDI is being replaced by XML A continuing issue

179 178 Copyright 1999 ç CIF Europe ERP and MRP MRP (material requirements planning) was the precursor to ERP Primarily a production planning and control system MRP evolved to MRP II (manufacturing resource planning) ERP and ERP II continue to extend the links through all business processes

180 179 Copyright 1999 ç CIF Europe Material Requirements Planning Computerized inventory control and production planning system Schedules component items when they are needed - no earlier and no later

181 180 Copyright 1999 ç CIF Europe When to Use MRP Dependent and discrete items Complex products Job shop production Assemble-to-order environments

182 181 Copyright 1999 ç CIF Europe Demand Characteristics Week 400 – 300 – 200 – 100 – No. of tables Continuous demand M T W Th F 400 – 300 – 200 – 100 – No. of tables Discrete demand Independent demand 100 tables Dependent demand 100 x 1 = 100 tabletops 100 x 4 = 400 table legs Figure 12.4

183 182 Copyright 1999 ç CIF Europe Material Requirements Planning Material requirements planning Planned order releases Work orders Purchase orders Rescheduling notices Item master file Product structure file Master production schedule Figure 12.5

184 183 Copyright 1999 ç CIF Europe Master Production Schedule Drives MRP process with a schedule of finished products Quantities represent production not demand Quantities may consist of a combination of customer orders and demand forecasts Quantities represent what needs to be produced, not what can be produced

185 184 Copyright 1999 ç CIF Europe Master Production Schedule PERIOD MPS ITEM12345 Clipboard Lapdesk Lapboard Pencil Case

186 185 Copyright 1999 ç CIF Europe Product Structure Tree Top clip (1)Bottom clip (1) Pivot (1)Spring (1) Rivets (2) Finished clipboardPressboard (1) Clipboard Figure 12.6

187 186 Copyright 1999 ç CIF Europe Product Structure Tree Clipboard Level 0 Level 1 Level 2 Spring (1) Bottom Clip (1) Top Clip (1) Pivot (1) Rivets (2) Clip Assy (1) Pressboard (1) Figure 12.6

188 187 Copyright 1999 ç CIF Europe Indented Bill of Material Clipboardea Clip Assemblyea Top Clipea Bottom Clipea Pivotea Springea Rivetea Press Boardea1 LEVELITEMUNIT OF MEASUREQUANTITY

189 188 Copyright 1999 ç CIF Europe Specialized BOMS Phantom bills –Transient subassemblies –Never stocked –Immediately consumed in next stage K-bills –Group small, loose parts under pseudo-item number –Reduces paperwork

190 189 Copyright 1999 ç CIF Europe Specialized BOMS Modular bills –Product assembled from major subassemblies & customer options –Modular bill kept for each major subassembly –Simplifies forecasting & planning –X10 Automobile example 3 x 8 x 3 x 8 x 4 = 2,304 configurations = 26 modular bills

191 190 Copyright 1999 ç CIF Europe 4-Cylinder (.40)Bright red (.10)Leather (.20)Grey (.10)Sports coupe (.20) 6-Cylinder (.50)White linen (.10)Tweed (.40)Light blue (.10)Two-door (.20) 8-Cylinder (.10)Sulphur yellow (.10)Plush (.40)Rose (.10)Four-door (.30) Neon orange (.10)Off-white (.20)Station wagon (.30) Metallic blue (.10)Cool green (.10) Emerald green (.10)Black (.20) Jet black (.20)Brown (.10) Champagne (.20)B/W checked (.10) X10 Automobile EnginesExterior colorInteriorInterior colorBody (1 of 3)(1 of 8)(1 of 3)(1 of 8)(1 of 4) Modular Bills of Material Figure 12.7

192 191 Copyright 1999 ç CIF Europe Item Master File DESCRIPTIONINVENTORY POLICY ItemPressboardLead time1 Item no.734Annual demand5000 Item typePurchHolding cost1 Product/sales classCompOrdering/setup cost50 Value classBSafety stock 0 Buyer/plannerRSRReorder point39 Vendor/drawing07142EOQ316 Phantom codeNMinimum order qty100 Unit price/cost1.25Maximum order qty500 PeggingYMultiple order qty LLC1Policy code3 Table 12.4

193 192 Copyright 1999 ç CIF Europe Item Master File PHYSICAL INVENTORYUSAGE/SALES CODES On hand100YTD usage/sales1100 LocationW142MTD usage/sales75 On order100YTD receipts1200 Allocated75MTD receipts0 Cycle3Last receipt8/25 Last count9/5Last issue10/5 Difference-2 Cost acct Routing00326 Engr07142 Table 12.4

194 193 Copyright 1999 ç CIF Europe 1.Exploding the bill of material 2.Netting out inventory 3.Lot sizing 4.Time-phasing requirements Basic MRP Processes

195 194 Copyright 1999 ç CIF Europe ITEM NAME OR NO.LLC LOW LEVEL CODEPERIOD LOT SIZE QTY. MADE INLT LEAD TIME12345 The MRP Matrix When orders need to be placed to be received on time Planned Order Releases When orders need to be receivedPlanned Order Receipts Gross requirements net of inventory and scheduled receipts Net Requirements Beg InvAnticipated quantity on hand at the end of the period Projected on Hand On order and scheduled to be received Scheduled Receipts Derived from MPS or planned order releases of the parent(s) Gross Requirements Table 12.5

196 195 Copyright 1999 ç CIF Europe School Mate Products Master Production Schedule Clipboard Lapdesk Example 12.1 Item Master File CLIPBOARDLAPDESKPRESSBOARD On hand On order175 (Period 1)00 (scheduled receipts) LLC001 Lot sizeL4LMult 50Min 100 Lead time111

197 196 Copyright 1999 ç CIF Europe School Mate Products Example 12.1 Product Structure Record Clipboard Lapdesk Pressboard (2) Trim (3) Beanbag (1) Glue (4 oz) Level 0 Pressboard (1) Clip Assy (1) Rivets (2) Level 1

198 197 Copyright 1999 ç CIF Europe School Mate Products Example 12.1 ITEM: CLIPBOARDLLC: 0PERIOD LOT SIZE: L4LLT: Gross Requirements Scheduled Receipts175 Projected on Hand25 Net Requirements Planned Order Receipts Planned Order Releases

199 198 Copyright 1999 ç CIF Europe School Mate Products ITEM: CLIPBOARDLLC: 0PERIOD LOT SIZE: L4LLT: Gross Requirements Scheduled Receipts175 Projected on Hand25 Net Requirements0 Planned Order Receipts Planned Order Releases ( ) = 200 units available

200 199 Copyright 1999 ç CIF Europe School Mate Products ITEM: CLIPBOARDLLC: 0PERIOD LOT SIZE: L4LLT: Gross Requirements Scheduled Receipts175 Projected on Hand25115 Net Requirements0 Planned Order Receipts Planned Order Releases ( ) = 200 units available ( ) = 115 on hand at the end of Period 1

201 200 Copyright 1999 ç CIF Europe School Mate Products ITEM: CLIPBOARDLLC: 0PERIOD LOT SIZE: L4LLT: Gross Requirements Scheduled Receipts175 Projected on Hand Net Requirements00 Planned Order Receipts Planned Order Releases 115 units available at the beginning of Period 1 ( ) = 20 on hand at the end of Period 2

202 201 Copyright 1999 ç CIF Europe School Mate Products ITEM: CLIPBOARDLLC: 0PERIOD LOT SIZE: L4LLT: Gross Requirements Scheduled Receipts175 Projected on Hand Net Requirements00100 Planned Order Receipts Planned Order Releases 20 units available at the beginning of Period 3 ( ) = -100 Since this result is negative, it means that 100 additional Clipboards are required at the beginning of Period 3

203 202 Copyright 1999 ç CIF Europe School Mate Products ITEM: CLIPBOARDLLC: 0PERIOD LOT SIZE: L4LLT: Gross Requirements Scheduled Receipts175 Projected on Hand Net Requirements00100 Planned Order Receipts100 Planned Order Releases Since the lot size for this item is L4L, we plan to have an order receipt of 100 additional Clipboards at the beginning of Period 3

204 203 Copyright 1999 ç CIF Europe School Mate Products Example 12.1 ITEM: CLIPBOARDLLC: 0PERIOD LOT SIZE: L4LLT: Gross Requirements Scheduled Receipts175 Projected on Hand Net Requirements00100 Planned Order Receipts100 Planned Order Releases100 Since the LT for this item is 1 period, we plan to place this order at the beginning of Period 2 so that it received at the beginning of Period 3. This is known as the lead time offset

205 204 Copyright 1999 ç CIF Europe School Mate Products ITEM: CLIPBOARDLLC: 0PERIOD LOT SIZE: L4LLT: Gross Requirements Scheduled Receipts175 Projected on Hand Net Requirements Planned Order Receipts Planned Order Releases Following the same logic, use the Gross Requirements in Periods 4 and 5 and develop Net Requirements, Planned Order Receipts, and Planned Order Releases

206 205 Copyright 1999 ç CIF Europe School Mate Products Example 12.1 ITEM: LAPDESKLLC: 0PERIOD LOT SIZE: MULT 50LT: Gross Requirements Scheduled Receipts Projected on Hand 20 Net Requirements Planned Order Receipts Planned Order Releases

207 206 Copyright 1999 ç CIF Europe School Mate Products Example 12.1 ITEM: LAPDESKLLC: 0PERIOD LOT SIZE: MULT 50LT: Gross Requirements Scheduled Receipts Projected on Hand Net Requirements04050 Planned Order Receipts5050 Planned Order Releases5050 Following the same logic, the Lapdesk MRP matrix is completed as shown

208 207 Copyright 1999 ç CIF Europe School Mate Products Example 12.1 ITEM: PRESSBOARDLLC: 0PERIOD LOT SIZE: MIN 100LT: Gross Requirements Scheduled Receipts Projected on Hand150 Net Requirements Planned Order Receipts Planned Order Releases ITEM: CLIPBOARDLLC: 0PERIOD LOT SIZE: L4LLT: Planned Order Releases ITEM: LAPDESKLLC: 0PERIOD LOT SIZE: MULT 50LT: Planned Order Releases5050

209 208 Copyright 1999 ç CIF Europe School Mate Products Example 12.1 ITEM: PRESSBOARDLLC: 0PERIOD LOT SIZE: MIN 100LT: Gross Requirements Scheduled Receipts Projected on Hand150 Net Requirements Planned Order Receipts Planned Order Releases ITEM: CLIPBOARDLLC: 0PERIOD LOT SIZE: L4LLT: Planned Order Releases ITEM: LAPDESKLLC: 0PERIOD LOT SIZE: MULT 50LT: Planned Order Releases5050 x2 x1

210 209 Copyright 1999 ç CIF Europe School Mate Products Example 12.1 ITEM: PRESSBOARDLLC: 0PERIOD LOT SIZE: MIN 100LT: Gross Requirements Scheduled Receipts Projected on Hand Net Requirements Planned Order Receipts Planned Order Releases ITEM: CLIPBOARDLLC: 0PERIOD LOT SIZE: L4LLT: Planned Order Releases ITEM: LAPDESKLLC: 0PERIOD LOT SIZE: MULT 50LT: Planned Order Releases5050

211 210 Copyright 1999 ç CIF Europe School Mate Products Example 12.1 Planned Order Report PERIOD ITEM12345 Clipboard Lapdesk5050 Pressboard

212 211 Copyright 1999 ç CIF Europe MRP Outputs Planned orders –Work orders –Purchase orders Changes to previous plans or existing schedules –Action notices –Rescheduling notices

213 212 Copyright 1999 ç CIF Europe Planned Order Report Table 12.6 Item#2740Date On hand100Lead time2 weeks On order200Lot size200 Allocated50Safety stock50 SCHEDULEDPROJECTED DATEORDER NO.GROSS REQS.RECEIPTSON HANDACTION AL AL GR SR Expedite SR CO GR GR GR Release PO Key:AL= allocatedWO= work order CO= customer orderSR= scheduled receipt PO= purchase orderGR= gross requirement

214 213 Copyright 1999 ç CIF Europe MRP Action Report Table 12.7 Current date ITEMDATEORDER NO.QTY.ACTION # ExpediteSR10-01 # Move forwardPO10-07 # Move forwardPO10-05 # Move backwardPO10-25 # De-expediteSR10-30 # ReleasePO10-13 # ReleaseWO10-24

215 214 Copyright 1999 ç CIF Europe Capacity Requirements Planning (CRP) Computerized system that projects load from material plan Creates load profile Identifies underloads and overloads

216 215 Copyright 1999 ç CIF Europe Capacity Usually expressed as standard machine hours or labor hours Capacity= (no. machines or workers) x (no. shifts) x (utilization) x (efficiency)

217 216 Copyright 1999 ç CIF Europe Capacity Terms Load profile –Compares released and planned orders with work center capacity Capacity –Productive capability; includes utilization and efficiency Utilization –Percentage of available working time spent working

218 217 Copyright 1999 ç CIF Europe More Capacity Terms Efficiency Load –The standard hours of work assigned to a facility Load percent –The ratio of load to capacity Load percent = (load/capacity)x100%

219 218 Copyright 1999 ç CIF Europe Capacity Requirements Planning MRP planned order releases Routing file Capacity requirements planning Open orders file Load profile for each machine center Figure 12.8

220 219 Copyright 1999 ç CIF Europe Determining Loads and Capacities 2 copiers, 2 operators 5 days/wk, 8 hr/day 1/2 hr meals, 1/2 hr maintenance per day Efficiency= 100% Utilization= 7/8 = 87.5% Daily capacity= 2 machines x 2 shifts x 8 hours/shift x 100% efficiency x 87.5% utilization = 28 hours or 1,680 minutes Example 12.2

221 220 Copyright 1999 ç CIF Europe Add another shift: Daily capacity= 2 machines x 3 shifts x 8 hours/shift x 100% efficiency x 87.5% utilization = 42 hours or 2,520 minutes Revised load percent = 2,385.7/2,520 = x100% = 94.67% Determining Loads and Capacities JOBNO. OFSETUPRUN TIME NO.COPIESTIME (MIN)(MIN/UNIT) TOTAL TIME (500 x 0.08) = , (1,000 x 0.10) = , (5,000 x 0.12) = , (10,000 x 0.14) =1, , (2,000 x 0.10) = ,385.7 min Load percent = 2,385.7 / 1,680 = 1.42 x 100% = 142%

222 221 Copyright 1999 ç CIF Europe Initial Load Profile Figure 12.9 Hours of capacity Time (weeks) Normal capacity 120 – 110 – 100 – 90 – 80 – 70 – 60 – 50 – 40 – 30 – 20 – 10 – 0 –

223 222 Copyright 1999 ç CIF Europe Remedies for Underloads 1.Acquire more work 2.Pull work ahead that is scheduled for later time periods 3.Reduce normal capacity

224 223 Copyright 1999 ç CIF Europe Remedies for Overloads 1.Eliminate unnecessary requirements 2.Reroute jobs to alternative machines or work centers 3.Split lots between two or more machines 4.Increase normal capacity 5.Subcontract 6.Increase the efficiency of the operation 7.Push work back to later time periods 8.Revise master schedule

225 224 Copyright 1999 ç CIF Europe Adjusted Load Profile Figure Hours of capacity Time (weeks) Normal capacity 120 – 110 – 100 – 90 – 80 – 70 – 60 – 50 – 40 – 30 – 20 – 10 – 0 – Pull ahead Push back Overtime Work an extra shift

226 225 Copyright 1999 ç CIF Europe Relaxing MRP Assumptions Material is not always the constraining resource Lead times can vary Not every transaction needs to be recorded JIT can be used with MRP The shop floor may require a more sophisticated scheduling system

227 226 Copyright 1999 ç CIF Europe Manufacturing Resource Planning (MRP II) Forecast Aggregate production plan Customer orders Feasible? Master production schedule Material requirements planning Capacity requirements planning Feasible? Purchase orders Work orders Inventory Shop floor control Manufacture No Yes Feedback No Yes Figure 12.11

228 227 Copyright 1999 ç CIF Europe Manufacturing Resource Planning (MRP II) Forecast Aggregate production plan Customer orders Feasible? Master production schedule Material requirements planning Capacity requirements planning Feasible? Purchase orders Work orders Inventory Shop floor control Manufacture No Yes Feedback No Yes Figure Forecast Aggregate production plan Customer orders Feasible? Master production schedule No Yes

229 228 Copyright 1999 ç CIF Europe Manufacturing Resource Planning (MRP II) Forecast Aggregate production plan Customer orders Feasible? Master production schedule Material requirements planning Capacity requirements planning Feasible? Purchase orders Work orders Inventory Shop floor control Manufacture No Yes Feedback No Yes Figure Master production schedule Material requirements planning Capacity requirements planning Feasible? Yes No

230 229 Copyright 1999 ç CIF Europe Forecast Aggregate production plan Customer orders Feasible? Master production schedule Material requirements planning Capacity requirements planning Feasible? Purchase orders Work orders Inventory Shop floor control Manufacture No Yes Feedback No Yes Manufacturing Resource Planning (MRP II) Figure Inventory Shop floor control Manufacture Purchase orders Work orders

231 230 Copyright 1999 ç CIF Europe Enterprise Software Collect, analyze, and make decisions based on data Collect, analyze, and make decisions based on data ERP - Enterprise Resource Planning ERP - Enterprise Resource Planning Managing wide range of processes Managing wide range of processes Human resources, materials management, supply chains, accounting, finance, manufacturing, sales force automation, customer service, customer order entry Human resources, materials management, supply chains, accounting, finance, manufacturing, sales force automation, customer service, customer order entry Finding hidden patterns through data mining Finding hidden patterns through data mining

232 231 Copyright 1999 ç CIF Europe Advanced Communications Electronic data interchange (EDI) Electronic data interchange (EDI) Internet, extranets Internet, extranets Wireless communications Wireless communications Teleconferencing & telecommuting Teleconferencing & telecommuting Bar coding, RFT Bar coding, RFT Virtual reality Virtual reality

233 232 Copyright 1999 ç CIF Europe Manufacturing Technology Numerically controlled (NC) machines Numerically controlled (NC) machines Controlled by punched tape Controlled by punched tape Computer numerical controlled (CNC) Computer numerical controlled (CNC) Controlled by attached computer Controlled by attached computer Direct numerical control (DNC) Direct numerical control (DNC) Several NC machines controlled by single computer Several NC machines controlled by single computer Flexible manufacturing systems (FMS) Flexible manufacturing systems (FMS) Includes automated material handling Includes automated material handling

234 233 Copyright 1999 ç CIF Europe Automated Material Handling Conveyors Conveyors Automated guided vehicle (AGV) Automated guided vehicle (AGV) Automated storage & retrieval system (ASRS) Automated storage & retrieval system (ASRS)

235 234 Copyright 1999 ç CIF Europe Flexible Manufacturing Systems (FMS) Programmable machine tools Programmable machine tools Controlled by common computer network Controlled by common computer network Combines flexibility with efficiency Combines flexibility with efficiency Reduces setup & queue times Reduces setup & queue times

236 235 Copyright 1999 ç CIF Europe Flexible Manufacturing System Parts Finished goods Computer control room Terminal CNC Machine Pallet Automatic tool changer Figure 4.13

237 236 Copyright 1999 ç CIF Europe Robotics Programmable manipulators Programmable manipulators Follow specified path Follow specified path Better than humans with respect to Better than humans with respect to Hostile environments Hostile environments Long hours Long hours Consistency Consistency Adoption has been slowed by ineffective integration and adaptation of systems Adoption has been slowed by ineffective integration and adaptation of systems

238 237 Copyright 1999 ç CIF Europe SCM No Breakdown (Total Productive Maintenance)

239 238 Copyright 1999 ç CIF Europe SCM « one stitch in time saves nine » No Breakdown Mean Time Between Failure (MTBF) Mean Time to Repair (MTTR) Corrective, curative, predictive maintenance

240 Course by J.PONS Evolution of the concept of logistics From Logistics to SCM To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved.

241 240 Copyright 1999 ç CIF Europe Original Process Layout CABRaw materials Assembly Figure 5.8

242 241 Copyright 1999 ç CIF Europe Cellular Layout Figure Assembly A B C Raw materials Cell 1 Cell 2 Cell 3

243 242 Copyright 1999 ç CIF Europe SCM No scorn (contempt, disdain) empowerment enablement enlargment collaborative relationship

244 Course by J.PONS Strategic logistics To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved.

245 244 Copyright 1999 ç CIF Europe Ideal Position of the logistics function to face the challenge Ideal Position of the logistics function to face the challenge

246 245 Copyright 1999 ç CIF Europe Supply Chain Management R & DConception Human ResourcesPurchasingSuppliers Board Finance Production Plant Quality Logistics Distribution B to B Marketing Client B to C ERP SCM Fonctional links Operational links Information links APS

247 246 Copyright 1999 ç CIF Europe

248 247 Copyright 1999 ç CIF Europe Blue Banana The so-called « Blue Banana » belt constitutes the economic heart of the European Community, accounting for 2/3 of GNP. The regions of France (the North, the East, and the Southeast) are well placed on its periphery as sites for logistics platforms, being less congested than areas within it.

249 248 Copyright 1999 ç CIF Europe II. Aircraft Companies Internl traffic Lufthansa (6,5 MTK) Korean Air ways (5,7) Singapore AL (5,4) AF (4,7) BA JAL FedEx KLM Cathay Pacific United A Northwest Nippon Cargo UPS (15) National traffic FedEx (6,054) UPS (4 232) United A (0,958) Northwest A (0,765) AA FedEx Delta A L ANA China Southern A JAL Varig Air Canada China Eastern A Total traffic FedEx (14 632) (100%) AF + KLM (9 059) UPS (7 295) (100%) Lufhansa (7 158) (14%) Singapore (6 909) (24%) Korean (6 247) (29%) JAL (5 024) (10%) AF (4 862) (25%) Cathay (4 854) (28%) China (4 600) (39%) BA (4 210) (6%) KLM (4 197) (16%) Cargolux (4 157) (98%) United A (3658) (5%) Northwest (3 578) (8%)

250 249 Copyright 1999 ç CIF Europe II. Accident rates since 1990 Aero Peru Cubana Air Zimbabwe China Airline Royal Jordanian Turkish Airlines Air India Egypt Air Air Tran (Value Jet) USA Korean Airways 16,7 accidents/1 million of flight 15,2 12,5 10 8,82 7,3 6,82 6,67 5,88 5,38

251 250 Copyright 1999 ç CIF Europe III. Travelers Airport (in Mio travelers) Atlanta Hartsfield Chicago OHare LA London Dallas Tokyo Haneda Francfurt San Francisco Paris CDG Denver 73,5 72,5 61,2 60,6 60,4 51,5 42,7 40,1 38,7 36,8 (Source : Airports Council Il)

252 251 Copyright 1999 ç CIF Europe III.Freight Airports ( in MT 2000 ) Memphis (Headoffice of Fedex) HK LA Tokyo NY (JFK) Anchorage Seoul Miami Francfort Chicago Singapour Louisville London (LHR) Paris (CDG) Amsterdam 2,412 1,989 1,952 1,841 1,737 1,676 1,655 1,651 1,539 1,532 1,523 1,486 1,355 1,226 1,225 (Source:Airports Council Il)

253 252 Copyright 1999 ç CIF Europe IX. Integrators FedEx Created in ,3 m colis/day towards 210 countries employees warehouses &10 hubs 663 plains vehicules Turn over 19 M$ in 2001 Network : Memphis, Subic Bay, Dubaï, Paris. UPS Created in ,5 m colis/day towards 200 countries employees 1713 warehouses & 15 hubs 500 plains vehicules Turn over 24,8 M$

254 253 Copyright 1999 ç CIF Europe IX. Integrator DHL Created in countries employees 3002 agences et 35 hubs 252 plains vehicules EDI Connection Turn over : 0,2 m$

255 254 Copyright 1999 ç CIF Europe Contribution of Logistics to the value of the products Logistics & Marketing Logistics & Marketing Logistics is a success key factor for : 4Availibility, 4Timeliness, 4Delivery in good condition, 4Responsiveness 4Time to market = Logistics and 7 "R"s

256 255 Copyright 1999 ç CIF Europe Supply Chain Mangement strategical logistics Mission of a Logistician To set the level of logistics activities so as to make products and services available to customers : - at the time, place and in the condition and form desired _ in the most profitable or cost-effective way.

257 256 Copyright 1999 ç CIF Europe Business Logistics defined scope and content Customer service standards set the level of output and degree of readiness to which the logistics system must respond Logistics costs increase in proportion to the level of customer service provided

258 257 Copyright 1999 ç CIF Europe SCM Operationnal logistics Logistics entails in 5 layers

259 258 Copyright 1999 ç CIF Europe SCM and LOGISTICS R & DConception Purchasing Suppliers Production Plant Logistics Marketing Distribution B to B upperdown logistics Client B to C Fonctional links Operational links Information links Board Board Upperstream Log Upstream Log Internal Log Downstream Log EDIEDIEDIEDI EDIEDIEDIEDI PullPullPullPull PullPullPullPull

260 259 Copyright 1999 ç CIF Europe SCM Downstream logistics : «last mile » (B2C) Downstream logistics & DRP (B2B) tools : ECR, CRM,CPFR, JIT, CMI, VMI Internal logistics MRP2, JIT, KANBAN, POKA YOKE, JIDOKA, SMED, OTED, TAKTIME Upstream Logistics Upperstream logistics ( simultaneous and concurrent logistics, Value analysis ) & reverse logistics

261 260 Copyright 1999 ç CIF Europe «Last mile» logistics Modern logistics alters the relationship between the producer and the end user of a product, by making it possible to do without intermedaries. However, this brings new constraints to bear on the supply chain.

262 261 Copyright 1999 ç CIF Europe SCM Upperstream logistics simultaneous and concurrent logistics, Value analysis Design for cost & reverse logistics

263 262 Copyright 1999 ç CIF Europe LOGISTICS TOOLS R & DConception Purchasing Suppliers Production Plant Logistics Distribution Marketing Fonctional links Operational links Information links Board Board EDIEDIEDIEDI JITECRCRMDRP JIT, Kanban, Jidoka Poka, Yoké, MRP2... SRM Reverse Reverse LogisticsLogisticsReverse Reverse LogisticsLogistics TQMTQM QFD QFDABCABCTQMTQM QFD QFDABCABC Concurrent engineering simultaneous engineering

264 263 Copyright 1999 ç CIF Europe Third Party Logistics R & DConception Purchasing Production Suppliers Logistics Plant Marketing Distribution Fonctional links Operational links Information links Board Board Logistics providers Performance metrics EDI Concurrent engineering simultaneous engineering reverse logistics Co-manufacturing, crossdocking co-packing, warehousing Continuous replenishment, carrier selection & rate negotiation, shipment planning, order processing, packaging, product return, e-trade

265 264 Copyright 1999 ç CIF Europe Logistics & Marketing Key activities customer service standards Key activities (in every logistics channels) Customer service standards : cooperate with marketing to Determine customer needs and wants for logistics customer service Determine customer needs and wants for logistics customer service Determine customer response to service (ECR) Determine customer response to service (ECR) Set customer service levels Set customer service levels

266 265 Copyright 1999 ç CIF Europe Product Design Specifies materials Specifies materials Determines dimensions & tolerances Determines dimensions & tolerances Defines appearance Defines appearance Sets performance standards Sets performance standards

267 266 Copyright 1999 ç CIF Europe Service Design Specifies what the customer is to experience Specifies what the customer is to experience Physical items Physical items Sensual benefits Sensual benefits Psychological benefits Psychological benefits

268 267 Copyright 1999 ç CIF Europe An Effective Design Process Matches product/service characteristics with customer needs Matches product/service characteristics with customer needs Meets customer requirements in simplest, most cost-effective manner Meets customer requirements in simplest, most cost-effective manner Reduces time to market Reduces time to market Minimizes revisions Minimizes revisions

269 268 Copyright 1999 ç CIF Europe Stages in the Design Process Idea Generation Product/Service Concept Idea Generation Product/Service Concept Feasibility Study Performance Specifications Feasibility Study Performance Specifications Preliminary Design Prototype Preliminary Design Prototype Final Design Final Design Specifications Final Design Final Design Specifications Process Planning Manufacturing Specifications Process Planning Manufacturing Specifications

270 269 Copyright 1999 ç CIF Europe The Design Process Pilot run and final tests New product or service launch Final design & process plans Idea generation Feasibility study Product or service concept Performance specifications Functional design Form design Production design Revising and testing prototypes Design specifications Manufacturing or delivery specifications Suppliers R&D Customers MarketingCompetitors Figure 3.1

271 270 Copyright 1999 ç CIF Europe Idea Generation Suppliers, distributors, salespersons Suppliers, distributors, salespersons Trade journals and other published material Trade journals and other published material Warranty claims, customer complaints, failures Warranty claims, customer complaints, failures Customer surveys, focus groups, interviews Customer surveys, focus groups, interviews Field testing, trial users Field testing, trial users Research and development Research and development

272 271 Copyright 1999 ç CIF Europe More Idea Generators Perceptual Maps Perceptual Maps Visual comparison of customer perceptions Visual comparison of customer perceptions Benchmarking Benchmarking Comparing product/service against best-in-class Comparing product/service against best-in-class Reverse engineering Reverse engineering Dismantling competitors product to improve your own product Dismantling competitors product to improve your own product

273 272 Copyright 1999 ç CIF Europe Feasibility Study Market Analysis Market Analysis Economic Analysis Economic Analysis Technical / Strategic Analysis Technical / Strategic Analysis Performance Specifications Performance Specifications

274 273 Copyright 1999 ç CIF Europe Preliminary Design Create form & functional design Create form & functional design Build prototype Build prototype Test prototype Test prototype Revise prototype Revise prototype Retest Retest

275 274 Copyright 1999 ç CIF Europe Form Design (How the Product Looks) Cellular Personal Safety Alarm Personal Computer

276 275 Copyright 1999 ç CIF Europe Functional Design (How the Product Performs) Reliability Reliability Probability product performs intended function for specified length of time under normal conditions of use Probability product performs intended function for specified length of time under normal conditions of use Maintainability Maintainability Ease and/or cost or maintaining/repairing product Ease and/or cost or maintaining/repairing product

277 276 Copyright 1999 ç CIF Europe Computing Reliability x 0.90 = [(1-.95)(1-.90)]=1-[(.05)(.10)]=1-[.005]=.995 Components in series Components in parallel R2R2R2R2 R1R1R1R1 Original Backup

278 277 Copyright 1999 ç CIF Europe Other Measures of Reliability/Maintainability Mean time between failures (MTBF) – length of time a product or service is in operation before it fails Maintainability (Serviceability) – ease and/or cost with which the product or service is maintained or repaired –Mean time to repair (MTTR) –System Availability

279 278 Copyright 1999 ç CIF Europe Production Design How will the product be made? How will the product be made? Part of the preliminary design phase Part of the preliminary design phase Simplification Simplification Standardization Standardization Modularity Modularity

280 279 Copyright 1999 ç CIF Europe Design Simplification (a) The original design Assembly using common fasteners (b) Revised design One-piece base & elimination of fasteners (c) Final design Design for push-and-snap assembly Figure 3.3

281 280 Copyright 1999 ç CIF Europe Final Design & Process Plans Produce detailed drawings & specifications Produce detailed drawings & specifications Create workable instructions for manufacture Create workable instructions for manufacture Select tooling & equipment Select tooling & equipment Prepare job descriptions Prepare job descriptions Determine operation & assembly order Determine operation & assembly order Program automated machines Program automated machines

282 281 Copyright 1999 ç CIF Europe Improving the Design Process Design teams Design teams Concurrent design Concurrent design Design for manufacture & assembly Design for manufacture & assembly Design to prevent failures and ensure value Design to prevent failures and ensure value Design for environment Design for environment Measure design quality Measure design quality Utilize quality function deployment Utilize quality function deployment Design for robustness Design for robustness Engage in collaborative design Engage in collaborative design

283 282 Copyright 1999 ç CIF Europe Figure 3.4Breaking Down Barriers to Effective Design

284 283 Copyright 1999 ç CIF Europe Design Teams Marketing, manufacturing, engineering Marketing, manufacturing, engineering Suppliers, dealers, customers Suppliers, dealers, customers Lawyers, accountants, insurance companies Lawyers, accountants, insurance companies

285 284 Copyright 1999 ç CIF Europe Concurrent Design Improves quality of early design decisions Improves quality of early design decisions Design decisions overlap Design decisions overlap Decentralized - suppliers complete detailed design Decentralized - suppliers complete detailed design Incorporates production process Incorporates production process Often uses a price-minus system Often uses a price-minus system Scheduling and management can be complex as tasks are done in parallel Scheduling and management can be complex as tasks are done in parallel

286 285 Copyright 1999 ç CIF Europe General Performance Specifications Instructions to supplier: Instructions to supplier: Design a set of brakes that can stop a 2200 pound car from 60 miles per hour in 200 feet ten times in succession without fading. The brakes should fit into a space 6 x 8 x 10 at the end of each axle and be delivered to the assembly plant for $40 a set. Design a set of brakes that can stop a 2200 pound car from 60 miles per hour in 200 feet ten times in succession without fading. The brakes should fit into a space 6 x 8 x 10 at the end of each axle and be delivered to the assembly plant for $40 a set. Supplier submits design specifications and prepares a prototype for testing Supplier submits design specifications and prepares a prototype for testing

287 286 Copyright 1999 ç CIF Europe Design for Manufacture and Assembly Design a product for easy & economical production Design a product for easy & economical production Incorporate production design early in the design phase Incorporate production design early in the design phase Improves quality and reduces costs Improves quality and reduces costs Shortens time to design and manufacture Shortens time to design and manufacture

288 287 Copyright 1999 ç CIF Europe DFM Guidelines 1.Minimize the number of parts, tools, fasteners, and assemblies 2.Use standard parts and repeatable processes 3.Modular design 4.Design for ease of assembly, minimal handling 5.Allow for efficient testing and parts replacement

289 288 Copyright 1999 ç CIF Europe Design for Assembly (DFA) Procedure for reducing number of parts Procedure for reducing number of parts Evaluate methods for assembly Evaluate methods for assembly Determine assembly sequence Determine assembly sequence

290 289 Copyright 1999 ç CIF Europe Design Review Failure Mode and Effects Analysis (FMEA) Failure Mode and Effects Analysis (FMEA) A systematic approach for analyzing causes & effects of failures A systematic approach for analyzing causes & effects of failures Prioritizes failures Prioritizes failures Attempts to eliminate causes Attempts to eliminate causes Fault Tree Analysis (FTA) Fault Tree Analysis (FTA) Study interrelationship between failures Study interrelationship between failures

291 290 Copyright 1999 ç CIF Europe Figure 3.5Fault Tree for Potato Chips

292 291 Copyright 1999 ç CIF Europe FMEA for Potato Chips Stale Low moisture content, expired shelf life, poor packaging Tastes bad, wont crunch, thrown out, lost sales Add m cure longer, better package seal, shorter shelf life Broken Too thin, too brittle, rough handling, rough use, poor packaging Cant dip, poor display, injures mouth, chocking, perceived as old, lost sales Change recipe, change process, change packaging Too Salty Outdated receipt, process not in control, uneven distribution of salt Eat less, drink more, health hazard, lost sales Experiment with recipe, experiment with process, introduce low salt version FAILURE MODECAUSE OF FAILUREEFFECT OF FAILURECORRECTIVE ACTION Table 3.1

293 292 Copyright 1999 ç CIF Europe Value Analysis (Value Engineering) Improve the ratio of value/cost Improve the ratio of value/cost Assessment of value : Assessment of value : 1. Can we do without it? 2. Does it do more than is required? 3. Does it cost more than it is worth? 4. Can something else do a better job 5. Can it be made by less costly method, tools, material? 6. Can it be made cheaper, better or faster by someone else?

294 293 Copyright 1999 ç CIF Europe Design for Environment Design from recycled material Design from recycled material Use materials which can be recycled Use materials which can be recycled Design for ease of repair Design for ease of repair Minimize packaging Minimize packaging Minimize material & energy used during manufacture, consumption & disposal Minimize material & energy used during manufacture, consumption & disposal

295 294 Copyright 1999 ç CIF Europe Figure 3.6Design for Environment

296 295 Copyright 1999 ç CIF Europe Metrics for the Quality of Design 1.Percent of revenue from new products or services 2.Percent of products capturing 50% or more of the market 3.Percent of process initiatives yielding a 50% or more improvement in effectiveness 4.Percent of suppliers engaged in collaborative design

297 296 Copyright 1999 ç CIF Europe Metrics for the Quality of Design 5.Percent of parts that can be recycled 6.Percent of parts used in multiple products 7.Average number of components per product 8.Percent of parts with no engineering change orders 9.Things gone wrong

298 297 Copyright 1999 ç CIF Europe Quality Function Deployment (QFD) Translates the voice of the customer into technical design requirements Translates the voice of the customer into technical design requirements Displays requirements in matrix diagrams Displays requirements in matrix diagrams First matrix called house of quality First matrix called house of quality Series of connected houses Series of connected houses

299 298 Copyright 1999 ç CIF Europe House of Quality Trade-off matrix Design characteristics Customer requirements Target values Relationship matrix Competitive assessment Importance Figure 3.7

300 299 Copyright 1999 ç CIF Europe House of Quality Figure 3.8 Irons well Easy and safe to use Competitive Assessment Customer Requirements Customer Requirements12345 X Presses quickly9BAX X Removes wrinkles8ABX X Doesnt stick to fabric6XBA X Provides enough steam8ABX X Doesnt spot fabric6XAB X Doesnt scorch fabric9AXB X Heats quickly6XBA X Automatic shut-off3ABX X Quick cool-down3XAB X Doesnt break when dropped5ABX X Doesnt burn when touched5ABX X Not too heavy8XAB

301 300 Copyright 1999 ç CIF Europe House of Quality Figure 3.9 Energy needed to press Weight of iron Size of soleplate Thickness of soleplate Material used in soleplate Number of holes Size of holes Flow of water from holes Time required to reach 450º F Time to go from 450º to 100º Protective cover for soleplate Automatic shutoff Customer Requirements Presses quickly Removes wrinkles+++++ Doesnt stick to fabric-++++ Provides enough steam++++ Doesnt spot fabric+--- Doesnt scorch fabric+++-+ Heats quickly--+- Automatic shut-off+ Quick cool-down--++ Doesnt break when dropped++++ Doesnt burn when touched++++ Not too heavy Irons well Easy and safe to use

302 301 Copyright 1999 ç CIF Europe House of Quality Figure 3.10 Energy needed to press Weight of iron Size of soleplate Thickness of soleplate Material used in soleplate Number of holes Size of holes Flow of water from holes Time required to reach 450º Time to go from 450º to 100º Protective cover for soleplate Automatic shutoff

303 302 Copyright 1999 ç CIF Europe House of Quality Figure 3.11 Energy needed to press Weight of iron Size of soleplate Thickness of soleplate Material used in soleplate Number of holes Size of holes Flow of water from holes Time required to reach 450º Time to go from 450º to 100º Protective cover for soleplate Automatic shutoff Units of measure ft-lblbin.cmtyeammoz/ssecsecY/NY/N Iron A 31.48x42SS NY Iron B 41.28x41MG NY Our Iron (X) 21.79x54T NY Estimated impact Estimated cost Targets 1.28x53SS Design changes ******* Objective measures

304 303 Copyright 1999 ç CIF Europe House of Quality Figure 3.12

305 304 Copyright 1999 ç CIF Europe Series of QFD Houses Customer requirements House of quality Product characteristics A-1 Product characteristics Parts deployment Part characteristics A-2 Part characteristics Process planning Process characteristics A-3 Process characteristics Operating requirements Operations A-4 Figure 3.13

306 305 Copyright 1999 ç CIF Europe Benefits of QFD Promotes better understanding of customer demands Promotes better understanding of customer demands Promotes better understanding of design interactions Promotes better understanding of design interactions Involves manufacturing in the design process Involves manufacturing in the design process Breaks down barriers between functions and departments Breaks down barriers between functions and departments Provides documentation of the design process Provides documentation of the design process

307 306 Copyright 1999 ç CIF Europe Robust Design Product can fail due to poor design quality Product can fail due to poor design quality Products subjected to many conditions Products subjected to many conditions Robust design studies Robust design studies Controllable factors - under designers control Controllable factors - under designers control Uncontrollable factors - from user or environment Uncontrollable factors - from user or environment Designs products for consistent performance Designs products for consistent performance

308 Course by J.PONS Place and importance of Transport in the SCM process To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved.

309 308 Copyright 1999 ç CIF Europe Supply Chain Mangement business logistics Area of management that absorbs 30 % of the sales Area of management that absorbs 30 % of the sales (cost reducers) (cost reducers) Essential element to meeting the customer service goals Essential element to meeting the customer service goals ( Fulfillment rate) ( Fulfillment rate)

310 309 Copyright 1999 ç CIF Europe SCM Total logistics activities make up 15% of finished product costs broke down as follows : Upstream logistics : 29% Production logistics : 7% Downstream logistics : 64%

311 310 Copyright 1999 ç CIF Europe SCM Transport costs : 34 % Storage costs (financial, handling, insurance, loss& profit) : 41,3 % Personal costs : 19 % Warehousing (Premises) : 5 % Material costs : 0,7 %

312 311 Copyright 1999 ç CIF Europe Business Logistics defined Transportation & inventory Transportation and inventories are the primary cost-absorbing logistics activities Transportation and inventories are the primary cost-absorbing logistics activities They represent together one-half or two- thirds of the total logistics costs. Transportation add « place » value to products and services Inventories add «time» value.

313 312 Copyright 1999 ç CIF Europe Business Logistics Transportation & inventory Without transportation (because of strike for instance), markets cannot be served and products back up in the pipe line to detoriate or become obsolete. Without transportation (because of strike for instance), markets cannot be served and products back up in the pipe line to detoriate or become obsolete. Inventories are essential to logistics management because it is usually not possible or practical to provide instant production or certain delivery times to customers. Inventories are essential to logistics management because it is usually not possible or practical to provide instant production or certain delivery times to customers. Inventories serve as buffers between supply and demand so that needed product availability may be maintened for customers while providing flexibility for production Inventories serve as buffers between supply and demand so that needed product availability may be maintened for customers while providing flexibility for production

314 313 Copyright 1999 ç CIF Europe Key activities customer service standards Key activities (in every logistics channels) Customer service standards : cooperate with marketing to Determine customer needs and wants for logistics customer service Determine customer needs and wants for logistics customer service Determine customer response to service (ECR) Determine customer response to service (ECR) Set customer service levels Set customer service levels

315 314 Copyright 1999 ç CIF Europe Business Logistics defined scope and content Customer service standards set the level of output and degree of readiness to which the logistics system must respond Logistics costs increase in proportion to the level of customer service provided

316 315 Copyright 1999 ç CIF Europe Actors in the carriage chain Brokers Forwarders Customs brokers Carriers 3PL, 4PL, 5PL, LLP

317 316 Copyright 1999 ç CIF Europe 3 PL european Top-ten EXEL 2,5 Md / qm TNT Post Groep1,562 Md / 3, qm HAYS pic 1,5 Md / qm TIBETT&BRITTEN 1,2 Md / 2,4NC Christian Salvesen 1,150 Md /idNC DANZAS Solution 1,114 Md / 8, m2 FIEGE 1,080 Md /1,2NC GEODIS 0,799 Md /1, m2 TDG Logistics0,686 Md / id m2 Frigoscandia0,560 Md /id m2

318 317 Copyright 1999 ç CIF Europe Physical & financial flows Beneficiary Insured Beneficiary Seller Consignor Broker Agent advising confirming B. confirming B. Forwarder Forwarder Insurance Co Incoterms ICC 2000 Carrier Insurance Co Incoterms issuing B. ICC 2000 Carrier Insurance LC Sales Carriage Contract Stand By contract contract 500, New York CMR, CIM, ILU covers UCP 500 Den Haag, New York CMR, CIM, Vienna Warsaw, Brussels Vienna Warsaw, Brussels Insured Applicant Buyer Consignee Insured Applicant Buyer Consignee

319 318 Copyright 1999 ç CIF Europe SCM Interfaces between physical & financial flows –C–Carriage contract –S–Sales contract –L–Letter of credit, C.A.D, SBLC –I–Insurance contract

320 319 Copyright 1999 ç CIF Europe Carriage contract Carriage contract –C–CMR or Geneva Convention (1956) –C–CIM or Bern Convention (1890) –W–Warsaw (1929) & Protocol n°4 –B–Brussels (1924), Visby (1968), French law (1966),Hamburg Convention(1970) –B–Budapest Convention(2000) –(–(french) domestic contracts

321 320 Copyright 1999 ç CIF Europe Limitation of liability Conventions CMR Geneva (1956) CIM Bern (1890) Warsaw (1929) Montreal Protocol Brussels (1924) French Law1966 Hamburg rules 1977 Budapest < 3 tonnes 1998 > 3 tonnes 1999 Repair Limits 8,33 SDR/Kg 17 SDR/Kg 250 Golden French Franc Poincaré 17 SDR/Kg 100 golden £/package 2 SDR/Kg ou 666,67 SDR/package 2,5 SDR/Kg ou 875 SDR/package 2 SDR/kg 23 /Kg max 750 /package 14 /Kg max x total weight

322 321 Copyright 1999 ç CIF Europe Sales contract – NY Convention and arbitration clause (1958) –Vienna or UN Convention (1980) –Incoterms ICC 2000 –Interfaces with carriage contracts : examples Freight collect and prepaid Delivery time

323 322 Copyright 1999 ç CIF Europe Sale contract Sale contract and latin right Penitus extranei : fully allien Specialia generalibus derogant : particular provisions are superior to general rules Dura lex, sed lex : law is hard, but its law Nemo censitur ignorare legem : nobody is supposed to ignore the law

324 323 Copyright 1999 ç CIF Europe Documentary credit Letter of credit (UCP 500) Main Actors Applicant (50) Issuing Bank (31 C) Advising and confirming Bank, Beneficiary Documentary chain Letter of credit and logistics instructions

325 324 Copyright 1999 ç CIF Europe Documentary credit Date of maturity or expiry (31 D) Payment at sight, deferred, (42 P) by acceptation, by negociation Irrevocable (40 A) Period of presentation : 15 days instead of 21 (48) Details of charges (71 B)

326 325 Copyright 1999 ç CIF Europe Documentary credit Documents Certificate of weight (5) Shipment advice (6) Certificates that the carrying ship can enter U.A.E seaports (7), is ISM compliant (8), classified (10) Commercial Invoice (46) Certificate of origin (46 A 3) Packing List (46 A 4) B/L

327 326 Copyright 1999 ç CIF Europe Documentary credit Letter of credit & logistics instructions Shipment on a conference vessel (47 A II) On a vessel which is not over 15 years of age Classified as per institute classification clause Partial shipment not allowed (43 P) Loading on board in France (44 A) Latest date of shipment (44 C)

328 327 Copyright 1999 ç CIF Europe Goods Insurance Insurance contract –Actors : insured, underwriters, Cies, brokers, agents –ILU and ABC covers, WRCC –Forclusion –General average –Interfaces with 3PL –Third shipper policies –Goods insurance & SDI

329 328 Copyright 1999 ç CIF Europe Construction of a physical chain Architecture of the physical chain –The architect : the Freight forwarder –The commissionned broker –The carrier

330 329 Copyright 1999 ç CIF Europe Freightforwarder & Broker Freightforwarder –Legislation : art ex 94 à 99 (L to L C of C) –Comparison with forwarder,Spediteur,… –Presomption of Liability –Result obligation –Way & Means obligations –Advise obligation – limitations of liability –Retention right –Time limitation (1 year) Broker –Legislation : art 1992 to 1996 of Civil Code. –Liability of a «good familly father » –Onus of proof –Means obligation –Commissionned company –Advised obligation – limitations of liability –Lien –Prescription or Time limitation (10 years)

331 Chapter 7 Supply Chain Management To Accompany Russell and Taylor, Operations Management, 4th Edition, 2003 Prentice-Hall, Inc. All rights reserved.

332 331 Copyright 1999 ç CIF Europe Supply Chain All activities associated with the flow and transformation of goods and services from raw materials stage to the end user (the customer), as well as the associated information flows A sequence of business activities from suppliers through customers that provide the products, services, and information to achieve customer satisfaction

333 332 Copyright 1999 ç CIF Europe Products and Services Supply Chain Example Products and Services Customers Total satisfaction with quality, price, delivery, and service Distributors Package and delivery Inventory Producers Finished goods, end products and services Inventory Suppliers Inventory Materials, parts, sub- assemblies, and services Figure 7.1 Information Cash

334 333 Copyright 1999 ç CIF Europe Supply Chain Management Synchronization of activities required to achieve maximum competitive benefits while lowering cost –Coordination, cooperation, and communication –Rapid flow of information –Customer and supplier have the same goals –Trust –Share in the design of the supply chain Vertical integration

335 334 Copyright 1999 ç CIF Europe Supply Chain Uncertainty Contributors to variability –demand forecasts –lead time variability –batch ordering –price fluctuations –inflated orders Inventory is a form of insurance Distorted information is one of the main causes of uncertainty –Bullwhip effect

336 335 Copyright 1999 ç CIF Europe Bullwhip Effect Tier 2 Suppliers Tier 1 Suppliers ProducerDistributorCustomers Ordering information Amount of inventory =

337 336 Copyright 1999 ç CIF Europe Demand Distortion along the Supply Chain

338 337 Copyright 1999 ç CIF Europe Improving the Supply Chain Through IT Centralized coordination of information flows Integration of transportation, distribution, ordering, and production Direct access to domestic and global transportation and distribution channels Locating and tracking the movement of every item in the supply chain

339 338 Copyright 1999 ç CIF Europe Improving the Supply Chain Through IT Consolidation of purchasing from all suppliers Intercompany and intracompany information access Data interchange Data acquisition at the point of origin and point of sale Instantaneous updating of inventory levels

340 339 Copyright 1999 ç CIF Europe Electronic Business (E-Commerce) Replacement of physical processes with electronic ones Cost and price reductions Reduction or elimination of intermediaries, thus reducing costs Shortening transaction times for ordering and delivery Wider presence and increased visibility

341 340 Copyright 1999 ç CIF Europe Electronic Business (E-Commerce) Greater choices and more information for customers Improved service Collection and analysis of customer data and preferences Virtual companies with lower prices Leveling the playing field for smaller companies Gain global access to markets & customers

342 341 Copyright 1999 ç CIF Europe Table 7.1 Supply Chain Evolution at Nabisco

343 342 Copyright 1999 ç CIF Europe Electronic Data Interchange (EDI) Computer-to-computer exchange of business documents in a standard format Quick access, better customer service, less paperwork, better communication, increased productivity, improved tracing and expediting, improves billing and cost efficiency Effective in eliminating the bullwhip effect

344 343 Copyright 1999 ç CIF Europe Bar Codes Computer readable codes attached to items flowing through the supply chain Generates point-of-sale data which is useful for determining sales trends, ordering, production scheduling, and deliver plans

345 344 Copyright 1999 ç CIF Europe The Internet Instant global access to organizations, individuals, and information sources Fundamentally changes the way organizations do business Removes geographic barriers Shifts the advantage in the transaction process from the seller to the buyer Adds speed and accessibility to the supply chain

346 345 Copyright 1999 ç CIF Europe Figure 7.2Build-to-Order Cars over the Internet

347 346 Copyright 1999 ç CIF Europe The E-Automotive Supply Chain SUPPLY CHAIN PROCESS AUTOMOTIVE PASTE-AUTOMOTIVE Customer salesPushsell from inventoryPullBuild-to-order ProductionGoal of even and stable production Focus on customer demand, respond with supply chain flexibility DistributionMass approachFast, reliable, and customized to get cars to specific customer location Customer relationshipsDealer-ownedShared by dealers and manufacturers Managing uncertaintyLarge car inventory at dealersSmall inventories with shared information and strategically placed parts inventories ProcurementBatch-oriented; dealers order based on allocations Orders made in real time based on available-to-promise information Product designComplex products dont match customer needs Simplified products based on better information about what customers want Table 7.2

348 347 Copyright 1999 ç CIF Europe Intranets and Extranets Intranets are internet-like networks that operate within a single organization Extranets are intranets that can be connected to the global internet Difference is in who has access to the system

349 348 Copyright 1999 ç CIF Europe IT Issues Increased benefits and sophistication come with increased costs Efficient web sites do not necessarily mean the rest of the supply chain will be as efficient Security problems are very real Partnership and trust are important elements that may be new to business relationships

350 349 Copyright 1999 ç CIF Europe Suppliers Purchased materials account for about half of manufacturing costs Materials, parts, and service must be delivered on time, of high quality, and low cost Suppliers should be integrated into their customers supply chains Partnerships should be established

351 350 Copyright 1999 ç CIF Europe Suppliers On-demand (direct response) delivery is a frequent requirement to support just-in-time (JIT) inventory system In continuous replenishment, a company shares real-time demand and inventory data

352 351 Copyright 1999 ç CIF Europe Sourcing Sourcing is the selection of suppliers Relationship between customers and suppliers focuses on collaboration and cooperation Outsourcing has become a long-term strategic decision –Organizations focus on core competencies Single-sourcing is increasingly a part of supplier relations

353 352 Copyright 1999 ç CIF Europe E-Procurement Business-to-business commerce conducted on the Internet Benefits include lower transaction costs, lower prices, reduce clerical labor costs, and faster ordering and delivery times Currently used more for indirect goods E-Marketplaces service industry-specific companies and suppliers

354 353 Copyright 1999 ç CIF Europe Figure 7.3 The Wal-Mart Supply Chain

355 354 Copyright 1999 ç CIF Europe Figure 7.4 Centralized Supply at Honda America

356 355 Copyright 1999 ç CIF Europe Distribution (Logistics) The actual movement of products and materials between locations Order fulfillment is ensuring on-time delivery of the customers order Handling of materials and products at receiving docks, storing products, packaging, and shipping

357 356 Copyright 1999 ç CIF Europe Distribution (Logistics) Driving force today is speed Particularly important for Internet dot-coms (virtual companies)

358 357 Copyright 1999 ç CIF Europe Figure 7.5Order Fulfillment at Amazon.com

359 358 Copyright 1999 ç CIF Europe Distribution Centers and Warehousing DCs are some of the largest business facilities in the United States Trend is for more frequent orders in smaller quantities Flow-through facilities and automated material handling Final assembly and product configuration may be done at the DC

360 359 Copyright 1999 ç CIF Europe Warehouse Management Systems Highly automated systems Controls item putaway, picking, packing, and shipping Transportation management –Track inbound and outbound shipments –Consolidate and build economical loads –Select the best carrier

361 360 Copyright 1999 ç CIF Europe Warehouse Management Systems Order management –Add, modify, or cancel orders in real time Yard management –Controls activities at the facilitys dock –Schedules dock appointments Labor management –Plans, manages, and reports performance level of personnel

362 361 Copyright 1999 ç CIF Europe Warehouse Management Systems Warehouse optimization –Optimizes placement of items in the warehouse (slotting) based on demand, product grouping, and the physical characteristic s of the item Creates custom labeling and packaging Facilitates cross-docking

363 362 Copyright 1999 ç CIF Europe Figure 7.6A WMS

364 363 Copyright 1999 ç CIF Europe Vendor-Managed Inventory (VMI) Manufacturers generate orders, not distributors Stocking information is accessed using EDI A first step towards supply chain collaboration Increased speed, reduced errors, and improved service

365 364 Copyright 1999 ç CIF Europe Collaborative Planning, Forecasting, and Replenishment (CPFR) Web-based standard that enhances VMI Continuous replenishment through joint forecasting through the exchange of data and information Reduces bullwhip effect Significant decrease in inventory levels and more efficient logistics

366 365 Copyright 1999 ç CIF Europe Marketing Achats Le marketing achats consiste à assurer à lentreprise la pérennité des sources et des produits en vérifiant par anticipation ladéquation des besoins de lentreprise et du marché. Le marketing vente fait fabriquer ce qui pourra se vendre. Les services internes font acheter ce dont ils ont besoin pour produire ce que les vendeurs espèrent vendre. Le marketing achats fait connaître ce quon peut trouver sur le marché en q, Q, t Services de lentreprise Mktg Achats Mktg vente

367 366 Copyright 1999 ç CIF Europe SRM ou Supplier Relationship Management Introduit début par I2 Technologies RFI : request for information RFQ : request for quotation Etape 1 Design collaboratif : qualité équivalente avec nombre de pièces réduites Etape 2 sourcing : identification, qualification (taille critique, capacité à livrer dans les temps, emplacement géographique), short list Etape n°3 négociation Etape n°4 approvisionnement : (logistique, modalités de paiement). Etape n°5 récurrente : évaluation des performances

368 367 Copyright 1999 ç CIF Europe SRM & e-procurement Gains de productivité et optimisation de la relation avec les fournisseurs (SRM) Outils du e-procurement pour achats hors- production : catalogues en ligne et commande selon un circuit de validation (workflow) Entre 5 et 10% de gains pour un ROI de 18 mois.

369 368 Copyright 1999 ç CIF Europe SRM & e-procurement Hubwoo.com, compatible avec SAP.(choisi par Saint Gobain) mySAP SRM : solution SAP qui gère tout le cycle de la relation fournisseur, des fonctions stratégiques aux fonctions opérationnelles. SAP : plate-forme collaborative interagissant entre outils SCM (logistique), PLM (conception) et ERP (relation transactionnelle).

370 369 Copyright 1999 ç CIF Europe GPA Intermarché M Bruno BORDE : Dr du projet EDI/ECR chez Les Mousquetaires 6 ans pour atteindre 90% des commandes en EDI Envisagé au départ pour améliorer livraisons de produits frais sur points de vente Coûts élevés : traducteur, machine, adhésion à RVA : gros fournisseurs Pour les 1000 petits fournisseurs Web-EDI « Gpiste », nouveau métier, différent de lADV car il faut avoir une vision sur les stocks et les rotations des distributeurs, savoir réagir à des données extérieures (météo…) Les lacunes de la GPA ont généré les besoins en CPFR A lorigine, les USA avaient prévu la GPA sans promotion, ce qui nest pas conforme à nos pratiques

371 370 Copyright 1999 ç CIF Europe SCM III.a) Logistique stratégique

372 371 Copyright 1999 ç CIF Europe CE2M (automotive sector) Approche logistique sectorielle Les 7 « Zéros » de Shigeo Shingo ou vers lexcellence logistique Positionnement idoine de la fonction logistique Interfaces fonctionnelles et ERP Interfaces opérationnelles Interfaces sectorielles

373 Excellence logistique O Stock Right Inventory

374 373 Copyright 1999 ç CIF Europe Les Modules R/3 de SAP : Contrôle de Gestion (CO) CO gère le contrôle des coûts et des produits d une entreprise Ses principales composantes sont : – Comptabilité analytique des natures comptables – Comptabilité analytique des centres de coûts – Comptabilité analytique des supports de coûts – Comptabilité analytique des projets – Compte de résultats – Comptabilité analytique des centres de profit – Méthode des coûts de l activité – Contrôle de gestion de l entreprise

375 374 Copyright 1999 ç CIF Europe Les Modules R/3 de SAP : Gestion des Immobilisation (AM) Il est conçu pour la gestion et le suivi des différents aspects de l actif immobilisé. Ses principales composantes sont : – Gestion des immobilisation technique et de la maintenance Entretien Remise en état – Suivi de investissements Cession d immobilisations Comptabilité des immobilisations – Amortissement Gestion des investissements

376 375 Copyright 1999 ç CIF Europe Les Modules R/3 de SAP : Comptabilité Financière (FI) Ce module est conçu pour la gestion automatique des comptes généraux et le reporting externe pour la comptabilité clients, la comptabilité fournisseur, ainsi que pour d autre compte de tiers, à l aide d un plan comptable personnalisé. Ses principales composantes sont : – Comptabilité générale – Comptabilité fournisseurs – Comptabilité clients – Gestion de trésorerie – Consolidation – Système d information de la comptabilité.

377 Excellence logistique Zéro Défaut Flawless

378 377 Copyright 1999 ç CIF Europe Integrators FedEx Created in ,3 millions parcels/day towards 210 countries employees warehouses &10 hubs 649 planes vehicules Turn over 22 M$ in 2002 Network : Memphis, Subic Bay, Dubaï, Paris. UPS Created in ,5 millions parcels/day towards 200 countries employees 1713 warehouses & 15 hubs 584 planes vehicules Turn over 31,3 M$ Network in Europe: Köln, Bonn

379 378 Copyright 1999 ç CIF Europe Integrators DHL Created in countries employees 3002 agences et 35 hubs Brussels in Europe 252 planes vehicules EDI Connection Turn over : 6,2 m$ TNT employees 8 hubs in the world (Liege in Europe) 43 planes vehicules Turn over : 11,78 m$

380 379 Copyright 1999 ç CIF Europe Aircraft Companies Internl traffic Lufthansa (6,5 MTK) Korean Air ways (5,7) Singapore AL (5,4) AF (4,7) BA JAL FedEx KLM Cathay Pacific United A Northwest Nippon Cargo UPS (15) National traffic FedEx (6,054) UPS (4 232) United A (0,958) Northwest A (0,765) AA FedEx Delta A L ANA China Southern A JAL Varig Air Canada China Eastern A Total traffic FedEx (10 069) Lufthansa (6 603) UPS (5,9) Korean A (5,8) Singapore A (5,4) AF (4,7) JAL BA KLM Cathay United A Northwest A AA

381 380 Copyright 1999 ç CIF Europe Intégrateurs US et banane bleue

382 381 Copyright 1999 ç CIF Europe Le diagramme Causes-Effet : "ISHIKAWA" Le diagramme Causes-effet est un support graphique : De discussion en servant de guide, de fil conducteur De formation en capitalisant lexpérience de chacun De présentation en formalisant le savoir faire de chacun MatièreMain dœuvre EFFET Méthodes Matériel Milieu

383 382 Copyright 1999 ç CIF Europe Les Modules R/3 de SAP : Management de la Qualité (QM) QM est un système de contrôle et d information permettant de gérer la planification, le suivi, ainsi que la maitrise de la qualité dans le domaine de la production, des coûts et de l approvisionnement. Principales composantes du module QM – Contrôle qualité – Planification de la qualité – Système d information de management de la qualité (SIMQ)

384 383 Copyright 1999 ç CIF Europe "Les 5 S" S EIRI : Débarras S EITON : Rangement S EISO : Nettoyage S EIKETSU : Ordre S HITSUKE : Rigueur

385 384 Copyright 1999 ç CIF Europe KAIZEN Tenir sa maison en ordre Seiri (trier, to sort) Seiton (ranger, to straighten) Seiso (nettoyer, to scrub) Seiketsu (systématiser, to systematize) Shitsuke (standardiser, to standardize)

386 385 Copyright 1999 ç CIF Europe P.D.C.A

387 386 Copyright 1999 ç CIF Europe Les outils qualité

388 387 Copyright 1999 ç CIF Europe Gemba KAIZEN Lutter contre les 7 gaspillages (Muda) Muda de surproduction (production par avance crée stocks) Muda de stockage (pièces stockées ne créent pas de VA) Muda de rejets (pièces défectueuses coûteuses) Muda de mouvement (optimisation des postes de travail) Muda de traitements superflus (élimination de tâches) Muda dattente (opérateur inoccupé, muda de Main dOeuvre) Muda de transport (move time)

389 388 Copyright 1999 ç CIF Europe "L'A.M.D.E.C." Analyse des Modes de Défaillances, de leur Effets et de leurs Criticités Analyse préventive, en conception généralement AMDEC produit, AMDEC processus Objectif : 1.Identifier les risques de non qualité pour le client, l'utilisateur… ou l'actionnaire 2.Adapter les actions aux risques encourus

390 389 Copyright 1999 ç CIF Europe "L'A.M.D.E.C." Analyse des Modes de Défaillances, de leur Effets et de leurs Criticités C = D x O x S C = Criticité D = probabilité de non détection O = occurrence S = gravité

391 390 Copyright 1999 ç CIF Europe "L'A.M.D.E.C." Analyse des Modes de Défaillances, de leur Effets et de leurs Criticités Méthode : Création d'un groupe de travail (multidisciplinaire) Définition des critères d'évaluation pour les facteurs D, O, S Echelle de notation de 1 à 10 Décomposition fonctionnelle Actions préventives Evaluation après mise en place de l'action

392 391 Copyright 1999 ç CIF Europe "Le Chantier HOSHIN" Objectif : Améliorer lorganisation du travail, les installations et les flux de production Principaux acteurs : Fabrication, Etudes/Méthodes, Ressources humaines Point négatif : Non responsabilisation des opérateurs impliqués dans le chantier HOSHIN

393 392 Copyright 1999 ç CIF Europe "Le Chantier HOSHIN" Méthode : 1.Sélection du chantier et constitution du groupe 2.Analyse et élaboration des propositions damélioration et de la nouvelle implantation 3.Réalisation des travaux daménagement 4.Mise en place des modifications de processus et/ou des actions d'amélioration 5.Validation du process – Evaluation du résultat Objectifs et Avantages : 1.Chasser tout gaspillage 2.Éliminer les temps dattente 3.Optimiser la manutention 4.Motiver les collaborateurs

394 393 Copyright 1999 ç CIF Europe Le diagramme Causes-Effet : "ISHIKAWA" OBJECTIF : Déterminer toutes les causes possibles dun problème pour trouver les causes les plus probables PRINCIPE : 1. Définir clairement leffet dont on cherche les causes 2. Tracer le diagramme avec les familles : les 5 M (Milieu, Main dœuvre, Méthode, Matière, Matériel) 3. Rechercher en séance de brainstorming toutes les causes possibles et les classer dans les différentes familles choisies. REMARQUE : Le diagramme "ISHIKAWA" est un outil très utilisé dans le cadre d'une démarche "A.M.D.E.C"

395 Excellence Logistique 0 papier

396 395 Copyright 1999 ç CIF Europe Les Modules R/3 de SAP : WorkFlow (WF) Ce module assure la liaison entre les modules R/3 de SAP intégrés et les technologies, outils et services inter-application (EAI) WF permet le lancement automatique des processus de gestion, selon des règles et des procédures prédéfinies. – Le gestionnaire de Workflow crée un « work item » chaque fois que des événements lancent un processus de gestion – La logique d exécution permet au Workflow d incorporer à chaque étape des données, ainsi que des documents. – Les règles de traitement définies permettent au gestionnaire de Workflow d acheminer le « work item » crée au rôle approprié (emplacement, personne ou unité) WF peut être lancé automatiquement via des données ou des exeptions

397 396 Copyright 1999 ç CIF Europe "KANBAN" En japonais : Etiquette Objectifs : –Réduire les coûts de production –Améliorer la qualité des produits –Répondre plus rapidement aux besoins des clients Principe : Supprimer tout ce qui n'ajoute pas de valeur au produit ! –Stocks de matières premières –Stocks d'encours de production –Temps de changements d'outils (S.M.E.D) –Nombre de fournisseurs

398 Excellence Logistique O panne et 0 incident

399 Excellence Logistique O Mépris

400 399 Copyright 1999 ç CIF Europe Les Modules R/3 de SAP : Gestion du Personnel (HR) HR es un système intégré qui permet de gérer la planification et le contrôle des activités du personnel Ses principales composantes sont : – Administration du personnel et calcul de paie Gestion des temps Calcul des frais de déplacement Avantages sociaux Recrutement... – Gestion des carrières et des compétences Planification de l affectation Gestion de la formation Gestion de l organisation Gestion prévisionnelle du personnel – Système d information de la gestion du personnel

401 400 Copyright 1999 ç CIF Europe Les Modules R/3 de SAP : Gestion de la maintenance (PM) PM gère la planification, le traitement et l exécution des tâches liées à la maintenance Ses principales composantes sont : – Traitement des tâches non planifiées – Gestion des services – Avis de maintenance par date ou compteur – Planification de la maintenance – Nomenclature de maintenance – Système d information de gestion de la maintenance (SIGM)

402 401 Copyright 1999 ç CIF Europe Intégration sectorielle de la logistique Contexte : déstabilisation des modèles logistiques par laval et par lamont Conséquences : comportements nouveaux dans les canaux de distribution Facteurs de changement : -Évolution de la concurrence qui se place sur le plan de la vitesse de réponse aux attentes des consommateurs et non plus sur la seule composante prix -Sophistication croissante des consommateurs -NTIC qui permettent des changemennts structurels importants -Coopération entre acteurs considérée comme essentielle

403 402 Copyright 1999 ç CIF Europe Intégration sectorielle de la Logistique Motivations de la coopération Recherche dune alternative aux schémas concurrentiels Réduction des coûts de transaction Création de valeur distinctive et unique Gestion de lincertitude Limitations et problèmes posés par la coopération Dimension comportementale Contrôle et normalisation des relations Modalités de répartition des ressources crées Conséquences organisationelles

404 403 Copyright 1999 ç CIF Europe Logistique aval Les 5 fonctions dutilité dun canal de distribution : 1.Fonction de lieu : lieu de production->lieu de vente 2.Fonction dassortiment : recomposition de la gamme (co-packing) 3.Fonction de lot : lot de fab-> lot de vente 4.Fonction de transformation : différenciation retardée 5.Fonction de temps : maintenance du produit (respect de la chaîne du froid)

405 404 Copyright 1999 ç CIF Europe Intégration sectorielle de la Logistique Typologie des canaux de distribution Agents passifs ou actifs / relations conflictuelles ou collaboratives Canal classique: relations ponctuelles des acteurs, pas de volonté de structuration ou de contrôle (ex boulangerie) Canal géré : poids plus important conquis et occupé par un des agents au sein du canal de distribution; pas de négociation, conflits importants (cas de la grande distribution en France). Canal contractualisé : formalisation après négociation préalable (ex distribution automobile jusquen 2002 ou Seita) Canal intégré : complètement maîtrisé par un agent du canal de distribution (ex Michelin et réseau Euromaster, Point P ou Benetton)

406 405 Copyright 1999 ç CIF Europe Intégration sectorielle de la Logistique Logistique et canaux de distribution Canal classique: approche désintégrée, pas de recherche de synergie ou de mise en cohérence; chaque acteur dispose de son propre processus logistique indépendant Canal géré : logistique, levier dadministration du canal pour lun des acteurs (producteur ou distributeur). Canal contractualisé : logistique concertée Canal intégré : optimisation de lensemble de la chaîne de mise à disposition

407 406 Copyright 1999 ç CIF Europe Les grandes Cies mondiales Maersk Sealand P&O Nedlloyd Evergreen Hanjin/DSR Senator MSC NOL/APL COSCO NYK CPShips CMA CGM MOL K Line ZIM OOCL, HLloyd, YangMing, ChinaShipping, Hyundai, CSAV, 297 n EVP 138 n EVP 129 n EVP 82 n EVP 138 n EVP 81 n EVP 113 n EVP 86 n EVP 80 n EVP 81 n EVP 65 n EVP 62 n EVP 75 n EVP Source BRS-Alphaliner 2001

408 407 Copyright 1999 ç CIF Europe Les grandes Cies mondiales tout type de vaisseaux (2002) MOL (J) COSCO (Chine) NYK (J) Fredriksen (Nv) Ofer (Israël) AP Moller (DK) K Line (J) Bergesen (Nv) 384n 23,- MTPL Tankers + bulkers+ CTR Ships Source Lloyds Maritime Database

409 408 Copyright 1999 ç CIF Europe Plus grands ports CTR HK Singapore Pusan Kaoshiung RDAM Shanghaï LA LB Hamburg Anvers Port Klang Doubaî NY Tokyo Felxstove Bremerhaven Giaio Tauro Tanjung Prioc Yokohama 18,098 Millions EVP 17,090 7,540 7,425 6,274

410 409 Copyright 1999 ç CIF Europe Plus grands ports volume cargo Singapore RDAM South Louisana Shanghaï HK Houston Chiba Nagoya Ulsan Kwangyang Antwerp NY Inchon Pusan Yokohama Kaoshiung Guangzou Quinhuangdao Ningbo Marseille Le Havre (39) Sources AAPA (American association of port Authorities ) 2001

411 410 Copyright 1999 ç CIF Europe SCM III.b) Positionnement de la logistique

412 411 Copyright 1999 ç CIF Europe Strategical Logistics Ideal Position of the logistics function in the organization Chart to take up the challenge of the 7 « Rs » Strategical Logistics Ideal Position of the logistics function in the organization Chart to take up the challenge of the 7 « Rs »

413 412 Copyright 1999 ç CIF Europe Supply Chain Management R & DConception Human ResourcesPurchasingSuppliers Board Finance Production Plant Quality Logistics Distribution B to B Marketing Client B to C ERP SCM Fonctional links Operational links Information links APS

414 413 Copyright 1999 ç CIF Europe Strategical Logistics MSP : Master Schedule Plan PCZ strategy : (develop New Products, New Consumers, New Zones) Strategical Logistics MSP : Master Schedule Plan PCZ strategy : (develop New Products, New Consumers, New Zones)

415 414 Copyright 1999 ç CIF Europe Approche Logistique fonctionnelle Logistico-Marketing Influence de la Logistique sur le marketing-mix Variable produit : -largeur et profondeur de la gamme, facteur de domination du marché si disponibilité réelle du produit et coûts acceptables. -Packaging : composantes marketing et logistique, influe sur le prix de revient, productivité logistique, performance commerciale du produit. -Vie du produit : disponibilité de stock, SLI, pièces de rechange.

416 415 Copyright 1999 ç CIF Europe Approche Logistique fonctionnelle Logistico-Marketing Influence de la Logistique sur le marketing-mix Variable prix : -taille de commandes et seuils tarifaires -Achats spéculatifs et prix dactivités -Incitations quantitatives -Niveaux de stocks -Lissage de charge difficile

417 416 Copyright 1999 ç CIF Europe Approche Logistique fonctionnelle Logistico-Marketing Influence de la Logistique sur le marketing-mix Variable promotions initiées par marketing et commercial -Effets sur pilotage des flux -Accélérateur momentané des ventes -Prise en compte par le distributeur du montant de la ristourne, de laccroissement des stocks, des coûts dentreposage, de lobsolescence éventuelle -Répercussions pour la logistique : post-manufacturing, copacking, présentoirs, TG, incertitude de la demande…

418 417 Copyright 1999 ç CIF Europe Approche Logistique fonctionnelle Logistico-Marketing The mission of Logistics is to get : - the right goods or services - to the right place - at the right time - and in the desired condition, - while making the greatest contribution to the firm

419 418 Copyright 1999 ç CIF Europe Contribution of Logistics to the value of the products Logistics & Marketing Logistics & Marketing Logistics is a key success factor for : 4Availibility, 4Timeliness, 4Delivery in good condition, 4Responsiveness 4Time to market = Logistics and 7 "R"s

420 419 Copyright 1999 ç CIF Europe Supply Chain Mangement strategical logistics Mission of a Logistician To set the level of logistics activities so as to make products and services available to customers : - at the time, place and in the condition and form desired _ in the most profitable or cost-effective way.

421 420 Copyright 1999 ç CIF Europe Business Logistics defined scope and content Customer service standards set the level of output and degree of readiness to which the logistics system must respond Logistics costs increase in proportion to the level of customer service provided

422 421 Copyright 1999 ç CIF Europe ERP

423 422 Copyright 1999 ç CIF Europe

424 423 Copyright 1999 ç CIF Europe

425 424 Copyright 1999 ç CIF Europe Stratégie Règles dor dOliver WIGHT Implication de la DG, Maître douvrage Mise en place dune structure de projet : maîtrise dœuvre : comité de pilotage mis en place par Comité de Direction, avec un Dr de Projet Mise à niveau des données techniques : fournisseurs, nomenclatures Impliquer et former les utilisateurs : conduite du changement

426 425 Copyright 1999 ç CIF Europe Couple vente production Lentreprise vit parce qu elle vend Le système de production est tiré par la fonction commerciale (et non linverse)

427 426 Copyright 1999 ç CIF Europe Stocks Magasins Achats Production O.F Livraison facturation Commande client B.Méthodes B.dEtudes Ordo-lancement Boîte noire = Système de production de lentreprise

428 427 Copyright 1999 ç CIF Europe Typologie de production Référentiel de lAPICS Il faut toujours ramener un modèle à une typologie de production Fabrication sur stock ou sur catalogue : (ATP) ex MGS : vêtements, petits électro-manager Nécessité dun stock de produits finis Fabrication à la commande (sur mesure): Porte-avion, prototype, petites séries Absence totale de stocks de produits finis Assemblage à la commande : Commande sur stock, Finition à la commande

429 428 Copyright 1999 ç CIF Europe Logistique & OGP Points de découplage et structures logistiques Fabrication et réapprovisionnement au point de vente Fabrication et réapprovisionnement pour le stock central Assemblage à la commande Fabrication sur commande Fabrication et achats fournisseurs sur commande

430 429 Copyright 1999 ç CIF Europe Logistique & OGP Joseph ORLICKY (1965), base du MRP2 Besoins indépendants (besoins aléatoires ou externes exprimés par le marché ) ne peuvent être questimés.(PDP) Gestion du point de commande basée sur un concept dindépendance Besoins dépendants (induits ou internes) doivent être calculés Le réapprovisionnement dun article donné est fonction de la commande dautres articles (fabrication de roues dépendante de la fabrication dune voiture)

431 430 Copyright 1999 ç CIF Europe Logistique & OGP Nomenclatures : données techniques, (fabriqué, acheté, semi fini, MP,…), délais MRP, ressources, règles de gestion (q exacte, q mn, q multiple), lot technique, stock sécurité, q en stock, rangs Résultats : échéancier

432 431 Copyright 1999 ç CIF Europe Pyramide de lAPICS NIVEAU I de lAPICS Plan stratégique Établi par Comité Directeur composé de la DG, du Dr commercial, Dr industriel, DRH, Logisticien

433 432 Copyright 1999 ç CIF Europe Pyramide de lAPICS NIVEAU II de lAPICS PIC : Plan Industriel & Commercial (long terme) (production plan) Outil de Direction, basé sur des prévisions de commande Communiqué au Conseil dAdministration et aux Banques Négociation entre les différents responsables de lentreprise : PIC objectif, puis arrêté Famille produits :ex bagages

434 433 Copyright 1999 ç CIF Europe Pyramide de lAPICS NIVEAU III de lAPICS PDP : Plan de Production (outil opérationnel) (master schedule plan) (moyen terme) 1ère Etape E clatement du PIC en PDP : Quels produits fabriquer?, en quelles quantités? Et pour quelles périodes?. on passe au produit fini : ex valise noire, rouge, verte,… Ensemble des PDP = PIC Permet calcul des besoins nets (CBN ou MRP1)

435 434 Copyright 1999 ç CIF Europe Pyramide de lAPICS NIVEAU III de lAPICS PDP : Plan de Production (outil opérationnel) 2ème Etape PDP établi à partir de la demande réelle (carnet de commandes) et des prévisions commerciales. Lancement des programmes ERP chaque semaine,chaque jour pour replanifier les besoins.

436 435 Copyright 1999 ç CIF Europe Pyramide de lAPICS NIVEAU III de lAPICS PDP : Plan de Production (outil opérationnel) 3ème Etape Lotissement et Formule de Wilson

437 436 Copyright 1999 ç CIF Europe Pyramide de lAPICS NIVEAU IV de lAPICS MRP1 (Material Requirement Planning) ou Planification de besoins en composants Calcul des composants nécessités par le carnet de commande par éclatement des nomenclatures et coefficients de liens. Différence avec des méthodes de réapprovisionnement en fonction du niveau de stocks (recomplétement)

438 437 Copyright 1999 ç CIF Europe Pyramide de lAPICS NIVEAU IV de lAPICS MRP2 (Manufacturing Resource Planning) ou Planification des Ressources de Production. Calcul mis en œuvre par MRP1, suivi dune phase de planification de la charge, puis dun plan valorisé dapprovisionnement et de charge. Prend en considération les besoins en capacité des machines, en MO, en outillage, et les ressources financières (CRP = Capacity Requirement Planning)

439 438 Copyright 1999 ç CIF Europe MRP Material (MRP1), Manufacturing(MRP2) ERP (finance)

440 439 Copyright 1999 ç CIF Europe MRP Material (MRP1), Limite des méthodes traditionnelles MRPII PIC Gestion de la demande MRP OF

441 440 Copyright 1999 ç CIF Europe MRP1 Limite des méthodes traditionnelles -Articles gérés indépendamment les uns les autres -Consommation antérieure de chacun des articles se répètera dans le futur -Besoin dans le futur de chaque article sera effectif sans se préoccuper de la date de ce besoin

442 441 Copyright 1999 ç CIF Europe MRP2 -Compte de résultat : objectifs / SIC / Prévisions -PIC (famille de produits) : famille 106, diesel, essence -Gestion de la demande : on ne travaille plus sur des agrégats mais sur des articles/ éclatement des familles/ on génère un PDP avec éclatement des besoins -CBN (MRP0) : on part des produits à besoin indépendant pour dérouler une arborescence des besoins dépendants pour fabriquer des besoins des articles au niveau supérieur -OF ou OA : ordre dachats ou de babrication -Fabrication répétitive par campagne (kanban), discrète, sur projet, en « process » (sidérurgie, chimie)

443 442 Copyright 1999 ç CIF Europe MRP2 PIC Gestion de la demande Planification des besoins en composants Pilotage datelier

444 443 Copyright 1999 ç CIF Europe MRP2 PIC Création du plan commercial Création du plan de production Désagrégation des valeurs prévisionnelle Gestion de la demande

445 444 Copyright 1999 ç CIF Europe MRP2 PIC Création du plan commercial Création du plan de production -Selon stock cible -Selon couverture cible : ex je veux 3 jours de stocks Gestion de la demande -Gérer les besoins bruts par le plan commercial ou le plan de production, les prévisions de vente, copie dun autre plan, saisie manuelle : sort un programme de production

446 445 Copyright 1999 ç CIF Europe MRP2 PIC Création du plan commercial Création du plan de production Gestion de la demande MRP/CBN

447 446 Copyright 1999 ç CIF Europe

448 447 Copyright 1999 ç CIF Europe Pyramide de lAPICS NIVEAU V de lAPICS Ordonnancement datelier Effectué par le contremaître et le chef déquipe Taylor a inventé les unités de temps : centième dheure TMU= Time Measurement Unit = 1/ h = O,036s Abaques : décomposition en temps élémentaire de tous les travaux (tourner la main, avancer, pencher le buste, déplacer, saisir un objet…)

449 448 Copyright 1999 ç CIF Europe Pyramide de lAPICS NIVEAU V de lAPICS Ordonnancement datelier Ensemble des actes de gestion visant à létablissement dun ordre de déroulement des opérations de production qui permet datteindre un certain optimum économique préalablement défini Choix de la machine, des outils, temps de réalisation, de réglage et de fabrication

450 449 Copyright 1999 ç CIF Europe Loi dASBY Loi de la variété requise « La régulation dun système nest efficace que si elle sappuie sur un système de contrôle aussi complexe que le système lui même »

451 450 Copyright 1999 ç CIF Europe ERP APS plus performants que les ERP pour la stratégie : algorithmes doptimisation, daide à la décision, macro-décisions (localisation, fermeture dusine,…) planification en une seule boucle tenant compte dun grand nombre de contraintes (ressources, capacités, délais, coûts). Difficultés : intégration des données. ERP/ MRP fonctionne lui en plusieurs boucles hiérarchiques. ERP noptimise pas.

452 451 Copyright 1999 ç CIF Europe ERP Intégration : avoir au moins une base de données unique recouvrant au moins trois fonctions. ProAlpha nest pas un ERP. EAI : menaces pour ERP Fiabilité : unicité, synchronisme, modification

453 452 Copyright 1999 ç CIF Europe ERP et MRP2 Calcul des besoins nets Eclatement des nomenclatures OF et OA

454 453 Copyright 1999 ç CIF Europe

455 454 Copyright 1999 ç CIF Europe Les Modules R/3 de SAP : Gestion de la Production (PP) PP permet à l entreprise de planifier et de contrôler ses activités de production Ses principales composantes sont : – Nomenclatures – Gammes – Postes de travail – Pic – PDP – CBN – Pilotage d atelier – Of – Calcul des coûts – Fabrication répétitives – KANBAN – Planification de la production des industries de process.

456 455 Copyright 1999 ç CIF Europe

457 456 Copyright 1999 ç CIF Europe SCM IV. Interfaces entre : logistique stratégique, fonctionnelle et opérationnelle La logistique se décompose en 5 strates.

458 457 Copyright 1999 ç CIF Europe SCM & LOGISTIQUE R & DConception Purchasing Suppliers Production Plant Logistics Marketing Distribution B to B « last mile » Client B to C Fonctional links Operational links Information links Board Board Upperstream Log Upstream Log Internal Log Downstream Log EDIEDIEDIEDI EDIEDIEDIEDI PullPullPullPull PullPullPullPull

459 458 Copyright 1999 ç CIF Europe LOGISTICS TOOLS R & DConception Purchasing Production Suppliers Logistics Plant Marketing Distribution B to B Client B to C Fonctional links Operational links Information links Board Board EDIEDIEDIEDI JITECRDRP JIT, Kanban, Jidoka PokaYoké,MRP2,SMED, JITSRM Reverse Reverse LogisticsLogisticsReverse Reverse LogisticsLogistics TQMTQM QFD QFDABCABCTQMTQM QFD QFDABCABC Concurrent engineering simultaneous engineering

460 459 Copyright 1999 ç CIF Europe Third Party Logistics R & DConception Purchasing Production Suppliers Logistics Plant Marketing Distribution Fonctional links Operational links Information links Board Board Logistics providers Performance metrics EDI Concurrent engineering simultaneous engineering reverse logistics Co-manufacturing, crossdocking co-packing, warehousing Continuous replenishment, carrier selection & rate negotiation, shipment planning, order processing, packaging, product return, e-trade

461 460 Copyright 1999 ç CIF Europe 7 "R"s & Logistics excellence Fulfilment rate Tools Right amount DRP + JIT Right product TQM Right place DRP + ECR Right time JIT Right condition TQM Right price JIT + ABC + QFD Right information EDI + ERP + CALS +XML

462 461 Copyright 1999 ç CIF Europe Crossdocking Non-stop logistics movement Consolidation of products from multiple manufacturers by 3PL in a single delivery to point of sale driven « pull » inventory replenishment system. Customized deliveries of multi-tier pallets with electronic pallet content identification coupled withadvanced shipping notification.

463 462 Copyright 1999 ç CIF Europe Crossdocking

464 463 Copyright 1999 ç CIF Europe Vendor Managed Inventory (VMI) This innovation approach shifts responsability for replenishment from buyer to supplier VMI allows continuous and frequent replenishment Popularized in the late 1980s by Wal-Mart and Procter&Gamble One of the key programs of ECR and Quick response The vendor monitors the buyers inventory levels via electronic messaging and makes resupply decisions Transactions customarily initiated by the buyer (such as purchase orders) are initiated by the supplier. EDI is an enabler

465 464 Copyright 1999 ç CIF Europe Collaborative approach The focus on SC solution will force unprecedented collaborative between vendors, manufacturers, warehouses, transport service providers, customers and end-consumers. The focus on SC solution will force unprecedented collaborative between vendors, manufacturers, warehouses, transport service providers, customers and end-consumers. Collaborative Planning & Forecasting Relationship (CPFR)

466 465 Copyright 1999 ç CIF Europe Les Modules R/3 de SAP : Gestion de Projet (PS) Il est conçu pour gérer la planification, le contrôle et le suivi de projets à long terme relativement complexes, dans le cadre d objectif clairement définis. Ses principales composantes sont : – Gestion de la trésorerie et des ressources – Maîtrise de la qualité – Gestion des temps – Système d information de direction du projet

467 466 Copyright 1999 ç CIF Europe Logistique intégrée ou SCM Logistique dextrême aval : « dernier km » Logistique aval et DRP Outils : ECR, CRM,CPFR, JIT Logistique interne de OGP MRP2, JIT, KANBAN, POKA YOKE, JIDOKA, SMED, OTED, TAKTIME Logistique amont dapprovisionnement Logistique dextrême amont ( ingénierie simultanée, analyse de la valeur ) et rétro-logistique

468 467 Copyright 1999 ç CIF Europe Les Modules R/3 de SAP : Administration des ventes (SD) SD permet à l entreprise d optimiser l ensemble des tâches et activités liées à la vente, la livraison et la facturation. Ses principales composantes sont : – Avant-vente – Gestion des demande d offre – Gestion des offres – Gestion des commande clients – Gestion des livraisons – Facturation – Système d information commerciales.

469 468 Copyright 1999 ç CIF Europe Distribution Outsourcing Companies focus on core competencies Takes advantage of the expertise that distribution companies have developed Tends to lower inventory levels and reduce costs

470 469 Copyright 1999 ç CIF Europe Transportation Movement of the product from one location to another Important element, often overlooked Common methods are railroads, trucking, water, air, intermodal, package carriers, and pipelines

471 470 Copyright 1999 ç CIF Europe Railroads 150,000 miles in US Good for low-value, high- density, bulk products over long distances Less flexible, slower and less convenient than trucks Worst record of quality performance

472 471 Copyright 1999 ç CIF Europe Most used mode in US Two major forms of trucking –Full-truckload (TL) –Less-than-truckload (LTL) Flexible, small loads Consolidation, Internet load match sites Single sourcing reduces number of trucking firms serving a company Trucking