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SCM - Coggle Diagram
SCM
chap 12
Purchasing and Supply
Chain Analysis:Tools and Techniques
Six Phases of a Project
Sample Projects
in Supply Management
Developing new products
Developing and implementing new
software and hardware
Implementing value analysis cost
reduction recommendations
Developing sourcing strategies
Initiating supplier performance
improvement plans
Defining Project Success
Within allocated time and budget
At proper performance or specification
level
At level accepted by customer, user, or
management
ith minimal or only mutually agreed-upon changes
Without disturbing main work flow of
organization
Project Definition Phase
Develop project description in greater
detail
How to accomplish work
How to organize for the project
Support personnel required
Tentative timing schedules
Tentative budget, personnel, resource
requirements
Planning Phase
Develop detailed plans that identify …
Tasks
Timing milestones
Budgets and resources
Create organization to effectively
manage project
Project Planning and
Control Techniques
Gantt charts
Visually displays tasks and times
associated with a project
Advantages
Relatively inexpensive to develop and use
Can convey great deal of information
Disadvantages
Difficult to use and maintain for larger
projects
Gantt Chart Example
Critical path method (CPM)
Use when there is single known time for
each activity with no variance
Program evaluation and review
technique (PERT)
Use where time estimates are variable or
uncertain
Most likely vs. pessimistic vs. optimistic
Learning Curves
Establish a rate of improvement due to direct-labor cost improvement as production volumes increase
Learning rate represents cumulative improvement as production doubles
85% learning rate indicates that direct labor declines by 15% each time production doubles in volume
Use to lower purchase price over
Learning Curve Illustrated
Value Analysis/Value Engineering
VA involves examining all elements of component, assembly, end product, or service to make sure that it fulfills its intended function at lowest total cost
Value = Function ÷ Cost
VE is the application of value analysis techniques during product or service design
Quantity Discount Analysis
Allows buyer to verify that quantity
discounts are reasonable
Buyer may be able to negotiate price
improvements
Better understanding of incremental unit
costs
Prices at specific quantities vs. prices
at different quantity ranges
Quantity Discount Analysis
Process Mapping
Reduces processes to component
parts or activities
Helps identify and then eliminate nonvalue-added activities (waste) or delays
Process
Is outcome composed of a set of tasks,
activities, or steps
Crosses multiple functional boundaries
Groups have conflicting goals
Types:
Concurrent processes
Sequential processes
Often conducted by cross-functional
teams
Generates buy-in from affected groups
Steps in Process Mapping
Search for better ways and methods to
perform tasks
Replace sequential activities with
concurrent activities wherever possible
Identify those activities that contribute to waste or add minimal value and target for elimination
Identify time associated with each part of process and identify how much is waste
Involve functional groups that impact
process
Represent process graphically for
clearer understanding
Process Mapping Example
Value Stream Mapping
Visual representation of flow of materials and information to identify wasted time and actions in a process
Streamlines processes for greater efficiency