Click here to load reader

6 Jan Obsolescence

  • View
    174

  • Download
    0

Embed Size (px)

Text of 6 Jan Obsolescence

  • !!BA#244:#Supply#Chain#Management#

  • Reminders#

    ! CASE STUDY: Nike

    ! 20 minutes + 10 minutes ONLY

    ! Ask questions!

    ! You will grade the group ! 40% - Content and SCM Analysis ! 30% - Visual Ease and Presentation Flow ! 30% - Interaction with Audience

    ! Dont grade your own group

  • Differences#

    Parameter' Q)Model' P)Model'

    Order!Volume! Constant! Variable!

    When!to!Order! When!we!reach!re6order!point,!R!

    A;er!a!fixed!>me,!T!

    Stock!Level!Upda>ng! Each!>me!product!is!drawn!from!or!replenished!in!the!inventory!

    Only!during!stock!review!at!end!of!T!

    Inventory!Size! Less!than!P6Model! Larger!than!Q6Model!

    Effort!required! More!than!P6Model!due!to!constant!monitoring!

    Less!than!Q6Model!

    Category!Type! High!value!and!Cri>cal!Products!

    Low!value,!rou>ne,!and!non6cri>cal!products!

  • Modified#[email protected]:#Optional#Replenishment#System##

    ! Check!inventory!a;er!every!fixed!period,!T!

    ! Order!is!placed!only!if!the!level!is!below!a!set!amount!

  • Modified#[email protected]:#One#Bin#System#

  • Modified#[email protected]:#Two#Bin#System#

    !!

  • Other#Techniques#

    Technique' Solu6on'Approach' Characteris6cs'Linear!Programming! Op>mizing! Computerized;!linear!

    assump>ons!not!always!valid!

    Spreadsheet! Heuris>c!(trial!and!error)!

    Intui>vely!appealing,!easy!to!understand;!solu>on!not!necessarily!op>mal!

    Simula>on! Heuris>c!(trial!and!error)!

    Computerized!models!can!be!examined!under!a!variety!of!condi>ons!

  • Spreadsheet#Simulation#Models#

    ! Computerized!models!that!can!be!tested!under!different!scenarios!to!iden>fy!acceptable!(although!not!always!op>mal)!solu>ons!to!problems!

    ! In!majority!of!organiza>ons,!planning!is!done!on!the!basis!of!experience!along!with!trial6and6error!methods.!Why?'

  • Why?#

    ! Level!of!mathema>cal!sophis>ca>on!discourages!greater!use!

    ! Assump>ons!required!in!certain!models!appear!unrealis>c!

    ! Models!may!be!too!narrow!in!scope!

  • Spreadsheet#Simulation#Models#

  • Spreadsheet#Simulation#Models#

  • Spreadsheet#Simulation#Models#

  • Obsolescence#

    ! as!a!process!whereby!goods!or!services!no!longer!meet!the!needs!of!the!current!user!

    ! Four!main!types:!! Technical!or!func>onal!obsolescence!! Planned!obsolescence!! Style!obsolescence!! Postponed!Obsolescence!

  • Technical#Obsolescence#

    ! New!or!more!func>onal!product!or!technology!superseding!the!old!!

    ! A!product!targeted!for!technical!obsolescence!will!typically!cost!more!to!repair!than!to!replace!

    ! Product!or!service!may!even!be!withdrawn!from!service!

    ! e.g.!Microso;!withdrawing!its!service!support!for!Windows!95!opera>ng!systems!in!2002!

    ! e.g.!video!casse^es!to!digital!versa>le!disks!(DVDs)!

  • Planned#Obsolescence#

    ! Deliberate!introduc>on!of!obsolescence!into!the!marke>ng!strategy.!Why?!

    ! Results!in!the!consumer!reducing!the!period!between!purchases,!and!thereby!genera>ng!sales!for!the!organiza>on!

    ! Incongruent!with!CSR!!waste!of!resources!and!exploits!customers!

    ! Necessary!enabler!of!innova>on!and!economic!growth!

    ! e.g.!Japanese!electronics!manufacturer!Toshiba!and!Sony!are!in!discussions!over!the!format!of!the!next!change!in!technology!from!DVDs!to!Hi!Defini>on!(HD)!DVDs!

  • Brazilian#lawsuit#accuses#Apple#of#planned#obsolescence#with#[email protected]#iPad#(2013)#

    ! 66month!difference!

    ! Apple!could!have,!when!launching!iPad3,!implemented!all!of!the!technological!upgrades!introduced!in!iPad4!

    ! Consumers!thought!they!were!buying!high6end!equipment,!not!knowing!it!was!already!an!obsolete!version!

  • Style#Obsolescence#

    ! refers!to!a!change!in!style!that!results!in!a!product!no!longer!being!required!as!a!result!of!market!changes!

    ! Examples?!

    ! e.g.!automo>ve!industry!with!styling!on!motor!vehicles!being!implemented!annually!

    ! e.g.!clothing!industries!with!clothing!fashions!changing!seasonally!

  • Postponed#Obsolescence#

    ! Where!technological!improvements!are!not!introduced!even!though!they!could!be!

    ! e.g.!car!manufacturer!develops!a!new!feature!for!its!car!but!does!not!include!the!feature!in!the!cheaper!version!of!the!car!

    ! e.g.!base!model!Camry!does!not!have!electric!windows!or!seats!but!the!capability!is!there!

  • Drivers#of#Obsolescence#

    ! The!product!life!cycle!

    ! Changes!in!the!market!

    ! The!effect!of!compe>>on!

    ! The!business!risks!of!inaccurate!forecas>ng!

    ! Changes!in!produc>on!methods!

    ! Legisla>ve!and!Poli>cal!Environment!

  • Legislative#and#Political#Environment#

    ! Chlorofluorocarbon!(CFC)!/!Freon!! In!refrigera>on,!air6

    condi>oning,!and!aerosol!cans!

    ! 1987!! In!response!to!a!drama>c!

    seasonal!deple>on!of!the!ozone!layer!over!Antarc>ca!

    ! Montreal!Protocol,!which!called!for!dras>c!reduc>ons!in!the!produc>on!of!CFCs!

  • !!End#