Supply Chain Management (1)Chapter TwoLearning Objectivesn nThe goals of SCMn nThe stages of SCMn nThe Bullwhip Effect and Beer Gamen nThe Development of SCM Erasn nThe Principles of SCMn ncase analysisThe Goals of SCMn nThree goals of SCM:n n(1) to reduce inventoryn n(2) to increase the speed of transactions with real-time data exchangen n(3) to increase revenue What is Optimization?n nOptimization means to organize all relevant activities for the purpose of minimizing the total cost of providing the consumer with the value required. This implies the elimination or minimization of all unproductive activities and activities that do not provide or provide less value added. The optimization is to be assured on the entire process of providing the product or service instead of on only a part of it.Phases of SCMn nFive stages of SCM:n n(1) Plan: good or service meet the needsn n(2) developn n(3) Maken n(4) delivern n(5) returnBullwhip Effectn n中文：牛鞭效应中文：牛鞭效应Information Distortions and the “Bullwhip Effect”The Bullwhip Effect in ActionProductionSales growth volatilityProduction growth volatilityReasons for Bullwhip Effectn nInventory is insurance against supply chain Inventory is insurance against supply chain uncertaintiesuncertaintiesn nSupply chain management substitutes Supply chain management substitutes information for inventoryinformation for inventoryReduced Bullwhip Effect for Durablesn nIn the view of bullwhip effect, can you find ways to solve this problem to ensure the effective and efficient SCM?Beer Gamen nHome worknCustomer customize customizationEvolution of Operations and Supply Chain Managementn nCraft productionn nprocess of handcrafting products or services for process of handcrafting products or services for individual customersindividual customersn nDivision of laborn ndividing a job into a series of small tasks each dividing a job into a series of small tasks each performed by a different workerperformed by a different workern nInterchangeable partsn nstandardization of parts initially as replacement standardization of parts initially as replacement parts; enabled mass productionparts; enabled mass productionw w1-1-1515Evolution of Operations and Supply Chain Managementn nScientific managementn nsystematic analysis of work methodssystematic analysis of work methodsn nMass productionn nhigh-volume production of a standardized high-volume production of a standardized product for a mass marketproduct for a mass marketn nLean productionn nadaptation of mass production that prizes quality adaptation of mass production that prizes quality and flexibilityand flexibilityw w1-1-1616Historical Events in Operations ManagementEraEraEvents/ConceptsEvents/ConceptsDatesDatesOriginatorOriginatorIndustrialIndustrialRevolutionRevolutionSteam engineSteam engine17691769James WattJames WattDivision of laborDivision of labor17761776Adam SmithAdam SmithInterchangeable partsInterchangeable parts17901790Eli WhitneyEli WhitneyScientific Scientific ManagementManagementPrinciples of scientificPrinciples of scientificmanagementmanagement19111911Frederick W. TaylorFrederick W. TaylorTime and motion studiesTime and motion studies19111911Frank and Lillian Frank and Lillian GilbrethGilbrethActivity scheduling chartActivity scheduling chart19121912Henry GanttHenry GanttMoving assembly lineMoving assembly line19131913Henry FordHenry FordHistorical Events in Operations Management (cont.)EraEraEvents/ConceptsEvents/ConceptsDatesDatesOriginatorOriginatorHuman Human RelationsRelationsHawthorne studiesHawthorne studies19301930Elton MayoElton MayoMotivation theoriesMotivation theories1940s1940sAbraham MaslowAbraham Maslow1950s1950sFrederick HerzbergFrederick Herzberg1960s1960sDouglas McGregorDouglas McGregorOperations Operations ResearchResearchLinear programmingLinear programming19471947George George DantzigDantzigDigital computerDigital computer19511951Remington RandRemington RandSimulation, waitingSimulation, waitingline theory, decisionline theory, decisiontheory, PERT/CPMtheory, PERT/CPM1950s1950sOperations research Operations research groupsgroupsMRP, EDI, EFT, CIMMRP, EDI, EFT, CIM1960s, 1960s, 1970s1970sJoseph Joseph OrlickyOrlicky, IBM, IBMand othersand othersHistorical Events in Operations Management (cont.)EraEraEvents/ConceptsEvents/ConceptsDatesDates OriginatorOriginatorQualityQualityRevolutionRevolutionJIT (just-in-time)JIT (just-in-time)1970s1970sTaiichiTaiichi OhnoOhno (Toyota) (Toyota)TQM (total qualityTQM (total qualitymanagement)management)1980s1980sW. Edwards Deming, W. Edwards Deming, Joseph Joseph JuranJuranStrategy andStrategy andoperationsoperations1980s1980sWickham Skinner, Wickham Skinner, Robert HayesRobert HayesBusiness process Business process reengineeringreengineering1990s1990sMichael Hammer,Michael Hammer,James James ChampyChampySix SigmaSix Sigma1990s1990sGE, MotorolaGE, MotorolaHistorical Events in Operations Management (cont.)EraEraEvents/ConceptsEvents/ConceptsDatesDates OriginatorOriginatorInternet Internet RevolutionRevolutionInternet, WWW, ERP, Internet, WWW, ERP, supply chain managementsupply chain management1990s1990sARPANET, TimARPANET, TimBerners-Lee SAP,Berners-Lee SAP,i2 Technologies,i2 Technologies,ORACLEORACLEE-commerceE-commerce2000s2000sAmazon, Yahoo, Amazon, Yahoo, eBay, Google, and eBay, Google, and othersothersGlobalizationGlobalization WTO, European Union, WTO, European Union, and other trade and other trade agreements, global supply agreements, global supply chains, outsourcing, BPO, chains, outsourcing, BPO, Services ScienceServices Science1990s1990s2000s2000sNumerous countriesNumerous countriesand companiesand companiesSupply Chain Evolution (1800s)n nDivision/specialization of laborDivision/specialization of laborn nInterchangeable partsInterchangeable partsn nRailroads, electricity, Railroads, electricity, communicationscommunicationsMass Production Era (1900-1973)n nMoving assembly linesMoving assembly linesn nScientific management Scientific management methodsmethodsn nOperations research techniquesOperations research techniquesLean Manufacturing Era (1974-1995)n nIncreased global competitionIncreased global competitionn nImproved flexibility and Improved flexibility and quality controlquality controln nSix-Sigma QC, JIT, TQMSix-Sigma QC, JIT, TQMMass Customization Era (1996-today)n nBetter information engineering Better information engineering n nInternet, wireless Internet, wireless communications, B2B e-communications, B2B e-commercecommercen nIntegrate internal systems with Integrate internal systems with external partnersexternal partnersIm Next?!n n2.2 Principles of Supply Chain Management1. Segment customers based on the service needs 2. Customize the logistics network to service and profitability3. Listen to market signals for best resource allocation4. Speed conversion of product5. Reduce the total cost of owning materials and services 6. Develop a supply chain-wide technology strategy 7. Adopt channel-spanning performance measures Summaryn nGoals of the SCMn nBullwhip Effectn nPrinciples of SCMTerms n n1. 1. 大规模生产时期大规模生产时期n n2. 2. 精益生产时期精益生产时期n n3. 3. 六西格玛质量控制时期六西格玛质量控制时期n n4 4 准时制库存准时制库存n n5 5 全面质量管理全面质量管理n n安全库存安全库存n nMass production EraMass production Eran nLean Manufacturing EraLean Manufacturing Eran nSix-Sigma quality Six-Sigma quality controlcontroln nJust-in-time inventoryJust-in-time inventoryn nTotal quality Total quality managementmanagementn nSafe stockSafe stockAssignment (2)n nAmazon.com: An E-Business n n本次作业以小组为单位完成，最后每小组提交一份书面答卷，要求为打印稿，全部问题答案应在2页内完成,并在最后签署小组成员姓名。n n截止日期：2010年9月26日n nQuestions:n nWhat advantages does selling books via the Internet provide over traditional bookstores? Are there any disadvantages to selling via the Internet?n nDoes Amazon realize its SCM goals? Briefly Explain it.n nShould Amazon stock every book it sells? From the perspective of 7 principles of SCM, which principles does the Amazons practice best illustrate? （Amazon 的做法阐释了哪些原则？）n nFor what products does the e-commerce channel offer For what products does the e-commerce channel offer the greatest advantage? What characterizes these the greatest advantage? What characterizes these products?products?n nIf YOUR TEAM were the members of the board of If YOUR TEAM were the members of the board of directors directors （董事会）（董事会） of the traditional bookseller of the traditional bookseller Barnes and NobleBarnes and Noble, Would you integrate e-commerce , Would you integrate e-commerce channel into your current supply chain or manage channel into your current supply chain or manage them as two independent channels? How could you them as two independent channels? How could you use the two channels to gain maximum advantage?use the two channels to gain maximum advantage?