Basics of Supply Chain Management







Basics of Supply Chain Management covers basic concepts in managing the complete flow of materials in a supply chain. Participants gain an understanding of material flow, from internal and external suppliers, to and from organizations.

Major Topics




The planning Hierarchy
Outline and Objectives

Session 1:       Introduction to Supply Chain Management

l      Role and importance of manufacturing

l      Conflicts in traditional systems

l      Role, objectives, and responsibilities of materials management

l      Differences among manufacturing processes

Session 2:       Forecasting

l      Factors influencing demand

l      Basic demand patterns

l      Basic principles of forecasting

l      Principles of data collection

l      Basic forecasting techniques

l      Seasonality

l      Sources and types of forecast error

Session 3:       Master Planning

l      Level production plan for make-to-stock products

l      Relationship of resource requirements planning to production planning

l      Purpose of a master production schedule (MPS) and relationship to the production plan

l      MPS and rough-cut capacity plan

l      Relationship of the MPS to sales and the ability to promise delivery

Session 4:       Material Requirements Planning

l      Nature of demand and use of material requirements planning (MRP)

l      The MRP process

l      Purpose of bill of materials

l      Different bill of materials formats

l      Lead time, exploding, and offsetting

l      Order planning and control

  Session 5:       Capacity Management and Production Activity Control

l      Capacity management and its relation to priority planning

l      Rated or calculated capacity

l      Capacity required for a shop order

l      Purpose and activities of production activity control (PAC)

l      Process of order preparation and data requirements for a PAC system

l      Techniques of scheduling

l      Purpose of a shop order and necessary information

l      Implementation and control of work orders

l      Input/output reports

Session 6:       Inventory Fundamentals

l      Importance of good inventory management

l      Classification of inventory based on flow of material

l      Functions that inventories perform

l      Objectives of inventory management

l      Costs that are relevant to inventory decisions

l      Costs of ordering and carrying inventory

l      Simple financial statements

l      Simple inventory turns ratio

Session 7:       Inventory Management

l      Costs that are relevant in deciding how much to order

l      Economic order quantity (EOQ) formula

l      Order point

l      Safety stock

l      Service level

l      Two-bin and perpetual inventory systems

l      The periodic review system

l      Auditing inventory records

l      Cycle counting process

Session 8:       Physical Distribution

l      Concepts of ABC inventory control

l      Steps in a simple ABC inventory analysis

l      Activities of a physical distribution system

l      Physical distribution, marketing, and production relationships

l      Warehouse activities

l      Packaging

l      Unitization

l      Pull, push, and distribution requirements planning

l      Transportation modes

l      Transportation cost structure

Session 9:       Quality Management and Purchasing

l      Marketplace pressures that are driving quality standards higher in manufacturing

l      Costs of quality

l      Attributes of normal variability

l      Quality in manufactured products

l      Pareto analysis, control charts, and fishbone diagrams

l      Process control and product inspection

l      Purchasing, its objectives, and steps in the purchasing cycle

l      Purchase order control

l      Factors to consider in establishing specifications

l      Supplier selection

l      Supplier agreements

Session 10:     Just-in-Time Manufacturing

l      Definition of Just-in-Time (JIT)

l      Concept and causes of waste

l      Continuous flow manufacturing and intermittent manufacturing

l      Advantages of machine flexibility and setup time reduction

l      Total quality management (TQM) and lot size, lead time, and work in process

l      Pull systems

l      JIT relationships with suppliers

l      Total productive maintenance

l      Employee empowerment

l      JIT and traditional manufacturing planning and control systems

l      MRP, JIT, and TQM