Basics of scm

Technical Department


Introduction

NOC Infrastructure

NOC OSS

NOC Integration

NOC Operations

Marking & Class Norms

SCM OverviewCH 1 & 2

CH # 3

Case Study:Bull whip effect

Technical DepartmentAND MANY OTHERS

ASSOCIATED WITH VENDORS LIKE ZTE, HUAWEI, AL-LUCENT ETC.

GUEST SPEAKER TO MS-ENGINEERING MANAGEMENT PROFESSIONALS FOR QUALITY FUNCTION DEPLOYMENT.

CONDUCTED SEVERAL PRESENTATION TO ROSHAN TELECOM AFGHANISTAN, ETISILAT GROUP UAE & PAK ARMED FORCES

ZEESHAN KHAN.

EDUCATION:MBA ( SUPPLY CHAIN MANAGEMENT & PROJECT MANAGEMENT)ELECTRICAL ENGINEERING ( COMMUNICATIONS) 2 RESEARCH ARTICLES IN IEEE.

EXPERIENCE:

LECTURER IN UET (ONE SEMESTER)

WORKING IN PTCL AS MANAGER NOC (5 YEARS)

CONSULTANT FOR TELEPHONE INDUSTRIES OF PAKISTAN FOR OPTIMIZING DISTRIBUTION SYSTEM OF TELEPHONE SETS

PMP PDUs COMPLETED.


ZEESHAN KHAN.

COMMUNICATE:

[email protected] (only in case of emergency)

Your Introduction:

Name Student ID CGPA:

Specialization

Current Semester & MBA/BBA

Signature


Introduction

NOC Infrastructure

NOC OSS

NOC Integration

NOC Operations



CH # 3



MARKING:

DISTRIBUTION:

Quizzes…(5%) Assignments…(10%) Grand Quizzes/Presentation…(10%) Mid-Term…(25%) End-Term…(40%) Class participation marks (-10% up to +10%)

WHAT YOU HAVE GOT:

I HAVE GIVEN YOU 100/100 MARKS (i-e A GRADE)NOW ITS UP TO YOU … DON’T LOSE MARKS AND SUSTAIN YOUR

POSITION.12 MARKS MARGIN FOR A GRADE.18 MARKS MARGIN FOR B+ GRADE &40 MARKS MARGIN FOR F GRADE.


NORMS:

Late comers not allowed ( margin 10 mins) Assignments (suggestion: do at your own) Quiz (in the class in which assignment is to be

submitted) Bonus quiz (any time, ADD to class participation marks)

No LAUGH on questions being asked by fellow students or if there is a wrong answer.

CONDUCIVE LEARNING ENVIRONMENT

VIOLATIONS:

WILL LEAD TO REDUCTION IN CLASS PARTICIPATION MARKS

(-10% TO +10%) THAT COULD HURT YOUR GRADES EVENTUALLY.


Introduction

NOC Infrastructure

NOC OSS

NOC Integration

NOC Operations



CH # 3



What is Supply chain Management? Why SCM is important or why companies put emphasis on SCM?

SCM:

“A supply chain is the alignment of firms that bring products or services to market.”—from Lambert, Stock, and Ellram

“A supply chain consists of all stages involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves.”—from Chopra and Meindle



SCM:

“A supply chain is a network of facilities and distributionoptions that performs the functions of procurement ofmaterials, transformation of these materials into intermediateand finished products, and the distribution of these finishedproducts to customers.”—from Ganeshan and Harrison

Supply chain management is the coordination of production,inventory, location, and transportation among the participantsin a supply chain to achieve the best mix of responsivenessand efficiency for the market being served.”—



SCM:

A set of approaches used to efficiently integrateSuppliersManufacturersWarehousesDistribution centersSo that the product is produced and distributedIn the right quantitiesTo the right locationsAnd at the right timeSystem-wide costs are minimized andService level requirements are satisfied



SCM: Source of Competitive advantage

Suppliers Manufacturers Warehouses &Distribution Centers

Customers

Material Costs

TransportationCosts

TransportationCosts Transportation

CostsInventory CostsManufacturing Costs


Why Is SCM Difficult?

• Uncertainty is inherent to every supply chain– Travel times– Breakdowns of machines and vehicles– Weather, natural catastrophe, war– Local politics, labor conditions, border issues

• The complexity of the problem to globally optimize a supply chain is significant– Minimize internal costs– Minimize uncertainty– Deal with remaining uncertainty



The Importance of Supply Chain Management

• Dealing with uncertain environments – matching supply and demand– Boeing announced a $2.6 billion write-off in 1997 due to “raw

materials shortages, internal and supplier parts shortages and productivity inefficiencies”

– U.S Surgical Corporation announced a $22 million loss in 1993 due to “larger than anticipated inventories on the shelves of hospitals”

– IBM sold out its supply of its new Aptiva PC in 1994 costing it millions in potential revenue

– Hewlett-Packard and Dell found it difficult to obtain important components for its PC’s from Taiwanese suppliers in 1999 due to a massive earthquake

• U.S. firms spent $898 billion (10% of GDP) on supply-chain related activities in 1998



Competitive Strategy:

• Competitive strategy: defines the set of customer needs a firm seeks to satisfy through its products and services, relative to its competitors.

– Wallmart – low price, product availability– Dell – Customization and variety

• Priories of the customer is the determining factor in competitive strategy.

Competitive and Supply Chain Strategies?


SC Strategy:

Supply chain strategy:•Determines the nature of material procurement, transportation of materials, manufacture of product or creation of service, distribution of product.•Determines the broad structure, what the processes within company must focus “to do well”, and what roles each entity in the supply chain should play.•Supply chain strategy is simply the collection of the strategies for new product development, marketing, operations, distributions, and service.

•Consistency and support between supply chain strategy, competitive strategy, and other functional strategies is important.



Seven Eleven Japan

• A chain of small stores selling groceries and variety of products and services.

• Competitive strategy; convenience and easy access to stores, availability of variety of products and services (like bill payment).

• Supply chain strategy; emphasizing the convenience and variety in marketing, high density of stores, excellent information system, very responsive forecasting and inventory management system, flexible distribution system in delivery schedules.



DELL:

Competitive strategy; Customization and variety at reasonable price.Supply chain strategy; broad structure-direct sale to customer, built-to-order system to achieve the customization and variety, using internet (or phone) and e-business for customization, no finished product inventory, low component inventories, close relations and information sharing with suppliers for speedy delivery and reduced defects, using parcel carriers for speedy delivery, a few assembly plants for economies of scale in production.



Dell Achieving Strategic Fit: Which option is better?

• Competitive strategy; Customization and variety• Supply chain strategy;• Two extreme options;• Efficient supply chain for low cost products (consolidated

production and distribution, dedicated production capacity, limited variety, slow modes of distribution, standard products etc.)

• Responsive supply chain; Flexible production capacity, fast distribution options, product variety, designing easily customizable products with as many as possible common components)

Achieving Strategic Fit:

Second option of course better fits with competitive strategy of Dell.


Introduction

NOC Infrastructure

NOC OSS

NOC Integration

NOC Operations



CH # 3



Predictable variability :

Predictable variability is change in demand that can be forecasted.Can cause increased costs and decreased responsiveness in the supply chainA firm can handle predictable variability using two broad approaches:Manage supply using capacity, inventory & subcontractingManage demand using short-term price discounts and trade promotions.

Planning Supply and Demand in a Supply Chain: Managing Predictable Variability


Predictable variability : Managing Supply

Managing capacityTime flexibility from workforceUse of seasonal workforceUse of subcontractingUse of dual facilities – dedicated and flexibleDesigning product flexibility into production processesManaging inventoryBuilding inventory of high demand or predictable demand products




Inventory Capacity Trade-off:Leveling capacity forces inventory to build up in anticipation of seasonal variation in demandCarrying low levels of inventory requires capacity to vary with seasonal variation in demand or enough capacity to cover peak demand during season




Implementing Solutions to Predictable Variability in PracticeCoordinate planning across enterprises in the supply chainTake predictable variability into account when making strategic decisionsPreempt, do not just react to, predictable variability



Predictable variability : Managing Demand

Promotion Pricing Timing of promotion and pricing changes is important Demand increases can result from a combination of factors:

Market growth (increased sales, increased market size) Stealing share (increased sales, same market size)



Assignment # 1:

How can supply be managed to improve synchronization in the supply chain in the face of predictable variability?

How can demand be managed to improve synchronization in the supply chain in the face of predictable variability?

How can strategic planning be used to maximize profitability when faced with predictable variability in the supply chain?

Submit by next Saturday (hardcopy, Computerized Print) +2 BONUS MARKS if softcopy is sent before 25th september

11:59:59 pm



Introduction

NOC Infrastructure

NOC OSS

NOC Integration

NOC Operations



CH # 3



Read NOW and be prepared for the quiz in the next class.

Bull whip Effect

Documents

Basics of scm