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1、The Characteristics of Supply Chain ManagementComplexity,Variability,Conflicting ObjectivesOrder Response TimeProduct AvailabilityLead TimeOrder ChangesDue Date PerformanceResource InvestmentAsset ProductivityInventorySupplier&Capacity ContractsLevel ofServiceCost ofServiceThe Business ChallengesCom
2、plexityVariabilityConflicting ObjectivesWhat are the characteristics of Supply Chan Management,why is it so hard to manage?ComplexityLead Times Limit FlexibilityLittle or No Predictability and Poor Product MixJanuary?Chronic CapacityShortagesCurrent Processes and Structures Inhibit PerformanceInvent
3、ory Used to Cover ProblemsComplications in the Electronics IndustryComplexity in Component/Semiconductor ManufacturingMass customizationPersonalizationProduct mix effects on capacityMultiple optionsContracted vs.owned capacityCombined make-to-forecast and make-to-orderInverted BOMBinningMulti-stage
4、global productionUncertainty in the supply chain results in significant variabilityEarlyOn-timeLateEarlyOn-timeLateUnderForecastOverEarlyOn-timeLateCustomer DemandSupplier PerformanceManufacturingCustomer DeliveriesRawMaterialsFinishedGoods Past Performance Market Research Analytical Technique Incen
5、tive Programs Responsiveness Transportation Location Quality Process Design Product Design Capacity QualityBy Tom DavisSupplyChannel OrdersActualLaunchReal ShortageReturns/CancellationsOver-SupplyChannel Fill and Phantom DemandTargetLaunchEnd of LifeTrue End Customer DemandUnits Per PeriodTimeMultip
6、le forecasts and unreliable fulfillment today create the bullwhip effect.Shortened product life cycle has increased the uncertainty.Ramp-upOngoingEnd of LifeRamp-upOngoingEnd of LifeRole of InventoryHighUsualLowCost of ShortageHighUsualLowCost of OverageLowUsualHighBy Professor Hau L.Lee,Stanford Un
7、iversityVariabilityNaturalDemandMaterial supplyProductionDistributionSelf-IntroducedReplenishment strategiesPlanning processesInventory strategiesTraditional functional alignments continue to impede Supply Chain Performance.Misaligned Functional Goals&BehaviorsPurchasingManufacturingDistributionSale
8、s&Customer ServiceGoal:Behavior:Lowest purchase priceHighest utilizationLowest cost100%customer satisfactionnLong lead timesnHigh raw material inventory levelnLong run lengthsnInflexible schedulesnHigh WIP inventorynLong order fill timesnInflexible schedulesnHigh inventoriesnPromise flexibility Conf
9、licting Objectives-ManufacturingLittles Law Littles LawAssetUtilizationWIPINVCycleTimeVariabilityThroughputWIPCycle TimeVariabilityConflicting Objectives-Customer Littles LawAssetUtilization WIPINVCycleTimeVariabilityOrder Response Time Early WarningsDue Date PerformanceFill RatesConflicting Objectives-Corporate Littles LawAssetUtilization WIPINVCycleTimeVariabilityOrder Response Time Early WarningsDue Date PerformanceFill RatesMarket ShareProfitMarket Risk