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7/23/2019 Pgd 3 Supply Chain Management
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INSTITUTE OF PROCUREMENT AND
SUPPLY
POSTGRADUATEDIPLOMA INPOSTGRADUATEDIPLOMA IN
PROCUREMENT AND SUPPLYPROCUREMENT AND SUPPLY
MANAGEMENTMANAGEMENT
SUBJECT:
Supply Chain Management inPractice
PGD 3
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Session 1
Introduction to the Case Study Option
Learning Outcomes
At the end of this session candidateswill be able to:
!plain CIPS"s re#uirements and e!pectations forthe Strategic Chain Management in Practicecase study option
!plain di$erences in the approach to learning andassessment used in this unit to that used forother units in the CIPS %raduate &iploma
!plain the main stages of preparation of a casestudy and the outcomes from each stage
!plain how to present analysis' (usti)ed solutionsand a plan for implementation in thee!amination
Start determining the problem*s+ for a specimencase study
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,he Case Study Option
Pro-ides e!perience of a real.lifesituation
Pro-ides a conte!t for e!amining howa range of concepts and principlescan be applied to real.life problems
Consists of:
A case study issued in ad-ancePreparation of analysis and
solutions ,hree.hour open boo/ e!amination
with unseen #uestions *usuallymandatory+
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0hat is a Case Study
A case study *or case+ is a descriptionof a situation or an account of ase#uence of e-ents that:
raises issues for discussionraises problems for analysis and
ma/ing decisions or pro-idingsolutions
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Learning ,hrough CaseStudies
Case studies can pro-ide practice in:Analysis and critical thin/ing&ecision ma/ing
2udging between courses of action3andling assumptions and inferencesPresenting a point of -iewListening to and understanding others4elating theory to practice
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0hat the !aminer is Loo/ingfor:
5se of analytical s/ills todemonstrate:a good understanding of the case and
the constraintsinsights into the causes of the problem
A coherent and (usti)ed practicalsolution incorporating SCM
Ability to apply rele-ant s/ills and/nowledge from all CIPS unitsAwareness of contemporary strategic
management and SCM thin/ing
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Preparing for the !am
&e-elop a detailed understanding of theorganisation and its conte!t
Identify the problems the organisation faces&iagnose problems and )nd solutions within
any constraintsAscertain e!pectations
*aspirations6ob(ecti-es+Identify the strategic options a-ailable-aluate the options and recommend a
preferred option 2ustify the recommendations0or/ through su7cient detail for
implementation and control
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Case Study PreparationProcess
Step 1&etermine the problem
Step 8
&etermine alternati-e courses of action
Step 9
-aluate alternati-e courses of action
Step
Select and (ustify alternati-es
Step ;
Implement the selected alternati-e
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Preparation Milestones
nd of 0ee/ 1: Problem determinednd of 0ee/ 8: Alternati-e selectednd of 0ee/ 9: Implementation
plannednd of 0ee/ : 4ehearsed on paper
<inal preparations
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Case Study PreparationProcess
Step 1
&etermine the problem
Step 8
&etermine alternati-e courses of action
Step 9
-aluate alternati-e courses of action
Step Select and (ustify alternati-es
Step ;
Implement the selected alternati-e
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Step 1: &etermine the
Points to noteIdentify and in-estigatecauses rather thansymptoms
,he case does not contain allthe information needed fora full =solution"
>ot all the information isrele-ant for the future
,echni#ues a-ailableInternal analysis tools!ternal analysis toolsConcepts for understanding
e!pectations and purposesStrategic theories and
framewor/sProblem.sol-ing techni#ues
Outcomes to aim for?ey issues facing the
organisation' includingdri-ers for change
Insights into the issuesA statement of the
=problem*s+"-idence to support your
-iew
0hat"s in-ol-ed4ead the case study se-eral
times&e-elop a thorough
understanding of theconte!t
Identify' analyse and e!plorethe issues
Consolidate the analysis
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,echni#ues for !ternalAnalysis
Macro.en-ironment:SLP, or PS,L
Micro.en-ironment:Porter"s ; forcesStrategic groupsPorter"s -alue system6chainCompetitor analysis
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,echni#ues for InternalAnalysis
Portfolio analysis tools' for e!ample@C% growth.share matri!One of the 9!9 matrices such as %
screen *multi.factor portfolio model+
alue chain analysis *Porter+<inancial ratiosCultural web
4esources6s/ills auditS0*O,+ analysis
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!pectations and Purpose
Sta/eholder mapping=Strategic intent":
PurposeisionMission
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Session 8
&etermining the Problem
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Learning Outcomes
At the end of this session candidateswill be able to:
&e-elop a thorough understanding of thecase study"s organisational conte!t
Synthesise conceptual and case study data
into a coherent structure&iagnose supply chain problems within a case
study situation!tend analysis and understanding of deep.
seated issues within the case studyorganisation
Articulate a succinct description of theproblem*s+ the organisation is facing and
the underlying causes and conse#uences
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Step 1: &etermine the
Points to noteIdentify and in-estigate
causes rather thansymptoms
,he case does not contain all
the information needed fora full =solution"
>ot all the information isrele-ant for the future
,echni#ues a-ailableInternal analysis tools!ternal analysis toolsConcepts for understanding
e!pectations and purposes
Strategic theories andframewor/s
Problem.sol-ing techni#ues
Outcomes to aim for?ey issues facing the
organisation' includingdri-ers for change
Insights into the issuesA statement of the
=problem*s+"-idence to support your-iew
0hat"s in-ol-ed4ead the case study se-eral
times&e-elop a thorough
understanding of theconte!t
Identify' analyse and e!plorethe issuesConsolidate the analysis
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Progress Chec/ B
&etermining the Problem?ey issues facing the organisation&ri-ers for changeInsights into the issuesA statement of the =problem*s+"-idence to support your -iew based
on appropriate:!ternal analysisInternal analysis5nderstanding of e!pectations and
purpose
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Consolidating theAnalysis
S0O,Summary of e-aluation of business
and SCM performanceCapabilities6core competencesCompetiti-e position and sources of
competiti-e ad-antageSummary statement of the
problem*s+' including dri-ers forchange
Implications for strategy:?ey factors for successConstraints
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Constituents of a ProblemStatement
A short statement of what theproblem is
Its symptoms *what you can see+Its causes *what you probably can"t
see+ ,he impact the problem is ha-ing
now *#uanti)ed if possible+ ,he conse#uences if the problem isnot resol-ed *again' #uanti)ed ifpossible+
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Session 9
&etermining and -aluating Alternati-eCourses of Action
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Learning Outcomes
At the end of this session candidateswill be able to:
5se rele-ant theory and brainstormingtechni#ues to identify all possible optionsa-ailable
-aluate the -alidity and applicability of arange of possible solutions
Predict the conse#uences of adopting eachalternati-e course of action in the shortand long terms
2udge the appropriateness of supply chainprinciples to a particular supply chain
conte!t o-er the short and long term
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Progress Chec/ B
&etermining the Problem?ey issues facing the organisation&ri-ers for changeA statement of the =problem*s+"Insights into the issues-idence to support your -iew based
on appropriate:!ternal analysisinternal analysis5nderstanding of e!pectations and
purpose
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Case Study Preparation Process
Step 1
&etermine the problem
Step 8
&etermine alternati-e courses of action
Step 9
-aluate alternati-e courses of action
Step
Select and (ustify alternati-es
Step ;
Implement the selected alternati-e
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Step 8: &etermine
Points to note ,he options should address
at least part of the=problem" you de)ned inStep 1
@rainstorming within groups
may generate moreoptions
&on"t arbitrarily discard anyoptions at this stage
,echni#ues a-ailable%eneric strategies *Porter+Strategic directions *Anso$+Strategic de-elopment
methodsSCM strategies
Alliancing and partnershipmethods
Outcomes to aim forA clear statement of
alternati-esA short e!planation of what
each course means for theorganisation
5nderlying strategic
rationale for thesealternati-es
0hat"s in-ol-edIdentify all possible
alternati-es<irst for organisation le-el ,hen for SCM le-el!plore conse#uences on
each other
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Developmentstrategies
%enerating Strategic
Options%enericstrategie
s*Porter+
Strategicdirection
s *Anso$+
Strategic
methods
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%eneric Strategies*Porter+
STRATEGIC ADVANTAGE
S T R A T E G I C
T A R G E T
5ni#ueness percei-edby customer
Low costposition
Industry.wide
Segmentonly FOCUS
DIFFERENTIATIONOVERALL
COSTLEADERSHIP
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4is/
Strategic &irections *Anso$+
ar!etpenetration
Diversi"#ation
Pro$%#t$evelopment
> e w
a r ! e t
!isting >ew
Pro$%#t
ar!et$evelopment
Also:Consolidation0ithdrawal&o nothing
Source: Anso$
!
i s t i n
g
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Strategic Methods
Internal de-elopment 2oint de-elopmentMergers and ac#uisitions
?ey decision factors: In-estment returns In-estment costs ,ime &egree of control Strategic compatibility
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Alliancing and
PartnershipsAc#uisitions or
mergersConsortium or (oint
-entures
AlliancesContract or licensingagreements
>etwor/s
&egreeof
control
Adapted from 2ohnson Scholes
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,owards a SCM Strategy
%oals of SCM Cost reduction
Duality impro-ement Inno-ation &eli-ery
Scope of SCM 0hat do we ma/e6do
0hat do we buy
4elationships 4elationship typesSupplier categories
Duality Duality attributes Duality standards
Process6systems
SCMstrategy
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Case Study Preparation
ProcessStep 1
&etermine the problem
Step 8
&etermine alternati-e courses of action
Step 9
-aluate alternati-e courses of action
Step
Select and (ustify alternati-es
Step ;
Implement the selected alternati-e
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Step 9: -aluate
Points to noteStrong options will be those
that address the underlyingproblem*s+ in the short andlong term
Sometimes the alternati-esare ran/ed or weighted
,echni#ues a-ailableSuitability' acceptability and
feasibility framewor/*2'S0+
<inancial appraisal
techni#uesScreening techni#ues' eEgE
% screen' Abell 3ammond
Outcomes to aim forA summary showing:
ach alternati-e0hat it would entailStrengths *or pros+0ea/nesses *or cons+
0hat"s in-ol-edIdentify e-aluation criteria5se to e-aluate each option'
including )nancialcalculations
!amine the conse#uences
of each in both short long term
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-aluating Strategic
Options
S%ita&ilit' A##epta&ilit' Feasi&ilit'
Eval%atingstrategi# options
stablishing therationale
Screening optionsand criteria
&oes it sol-ethe problem
Is it acceptableto sta/eholders
4eturns4is/4eactions by
sta/eholders
Can we deli-er
Cash Fow@rea/.e-en4esourcesCompetences
Adapted from 2ohnson Scholes
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<inancial Appraisal ,echni#ues
Cash.Fow pro(ection&iscounted cash.Fow *&C<+ methodInternal rate of return *I44+ methodSensiti-ity analysis@rea/.e-en analysisModelling
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Assessing the <easibility ofOptionsAbell and 3ammond"s in-estment opportunitymatri!
Competitive position
O p t i o n a t t r a # t
i v e n e s s
L
o w
3 i g h
M e d i u m
Strong Medium 0ea/
L o ( o v
e r a l l a
t t r a # t i v
e n e s s
e $
i % m
o v e
r a l l
a t t r a
# t i v
e n e s s
Source: Adapted from Abell and 3ammond
H i g )
o v e
r a l l
a t t r a
# t i v e n e s s
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Session
Selecting and 2ustifyinga Preferred Course of Action
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Learning Outcomes
At the end of this sessioncandidates will be able to:
Sol-e problems with reference tosupply chain principles
Propose solutions that will enable thecase study organisation to operatemore e$ecti-ely in the short andlong term
2ustify the solutions in terms of theirfeasibility and appropriateness
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Progress Chec/ B&etermining Alternati-eCourses of ActionA clear statement of alternati-e
courses a-ailableA short e!planation of what each
course means for the organisation5nderlying strategic rationale for
these alternati-es
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Progress Chec/ B -aluatingAlternati-e Courses of Action
A summary showing:ach alternati-e course of action
0hat it would entailStrengths *or pros+0ea/nesses *or cons+
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Case Study PreparationProcess
Step 1
&etermine the problem
Step 8
&etermine alternati-e courses of action
Step 9
-aluate alternati-e courses of action
Step
Select and (ustify alternati-es
Step ;
Implement the selected alternati-e
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Step : 2ustify alternati-es
Points to note ,he (usti)cation should be
ob(ecti-e' not sub(ecti-e
*GIt"s the only optionH+ ,he decision6recommendationmay ha-e to be #uali)ed inthe absence of enoughinformation eEgE If appliesthen Option A' but if Japplies then Option @
,echni#ues a-ailable4an/ing and weightingScreening techni#ues
Strategicconcepts6framewor/s
Outcomes to aim forA clear statement of the
option selected ,he (usti)cation and rationale
for the decision-idence to support or defend
the decision
0hat"s in-ol-edMa/e *or con)rm+ the
selection decision resultingfrom the e-aluation ofalternati-es
Collate e-idenceConsider how to present and (ustify the decision
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Session ;
Planning Implementationand Preparing for the !amination
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Learning Outcomes
At the end of this session candidateswill be able to:
&e-elop a suitable plan for implementing theproposed course of action within anyconstraints identi)ed
&escribe the structure of the e!aminationpaper' possible areas for #uestions andthe rationale that might lin/ the #uestions
Prepare a coherent written presentation of theanalysis' options' decisions and plans for
implementationCarry out )nal preparations for the
e!amination' including a rehearsal
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Progress Chec/ B Selectingand 2ustifying a Course ofActionA clear statement of the option
selected
,he (usti)cation and rationale for thedecision
-idence to support or defend thedecision
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Case Study PreparationProcess
Step 1
&etermine the problem
Step 8
&etermine alternati-e courses of action
Step 9
-aluate alternati-e courses of action
Step
Select and (ustify alternati-es
Step ;
Implement the selected alternati-e
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Step ;: Plan
Points to notensure SCM tactics are
integrated and aligned withstrategy
Control measures areessential for assessingwhether the plan iswor/ing
,echni#ues a-ailableMc?insey"s KS framewor/Planning framewor/s'
including ob(ecti-e settingLeadership modelsOrganisation structuresConcepts for control
Outcomes to aim forProblem de)nitionCorporate6business
ob(ecti-esCorporate6business strategySCM ob(ecti-esSCM strategy ,actics for implementationControl approach6measures
0hat"s in-ol-ed&e-elop a plan for all
aspects of theimplementation of thepreferred alternati-e
Specify what is re#uired toimplement strategicchange
Consider appropriatestructures and leadershipstyle
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Strategic Alignment
Strategy
Style
Systems Structure
Sta$
S/ills
Source: Mc?insey KS framewor/
Sharedpurpose
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Aligning Supply ChainStrategies
@usinessprocesse
s
Managementcomponents
>etwor/structure
Order processing Customer ser-ice &istribution Productde-elopment
Supply
Physical technical Planning control Process structure Organisationalstructure Informationdistribution Production Fow
4elationships to lead6coordinate
4elationships to be
monitored>on.critical relationships4elationships to other
supply chains
Operational beha-ioural
Management principles Power structure Payment structure Company culture
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Creating Ma(or Change
stablish sense of urgencyCreate the guiding coalition&e-elop a -ision and strategyCommunicate the change -ision
mpower broad.based action%enerate short.term winsConsolidate gains and produce more
changeAnchor new approaches in the culture
?otter 1
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3eadings for a ,ypicalPlan
!ecuti-e summary
Problem de)nition6situation analysisCorporate ob(ecti-esCorporate6business le-el strategySCM ob(ecti-esSCM strategy
,actics for implementationControl approach and measures
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@ene)ts of the Moc/!am
4ecognise the time constraints of thee!amination and plan your time for the=real" e!am accordingly
4ehearse planning and writing answers
*laying out a synopsis of the =problem" anda solution on paper+ against an unseen#uestion under e!am conditions
-aluate the e$ecti-eness and thoroughnessof your preparation so that' if re#uired' youcan modify your approach to the =real"case
Identify any gaps in your /nowledge so thatyou can underta/e appropriate re-isionbefore the =real" case