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
- Business wide concepts
- Demand Planning
- Transformation of demand into supply
- Supply
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
Benefits
- Understand
the role, objectives, and responsibilities of materials management
- Describe
basics forecasting principles and techniques
- Understand
the function of production planning and master scheduling
- Explain
the role of material requirements planning in the planning process
- Describe
the objectives of capacity management and how it relates to priority
planning
- Describe
the purpose or inventory and the objectives of inventory management
- Define
purchasing, purchasing objectives, and the purchasing cycle
- Define
Just-in-Time (JIT)
- Demonstrate
how Total Quality Management (TQM) can reduce lot size, lead time, and
work-in-process