Supply Chain Enterprise Resources Planning

CHAPTER 4 Supply Chain, Enterprise Resources Planning, and Business Processes Engineering 4-

Learning Objectives ,[object Object],[object Object],[object Object],[object Object]

Learning Objectives ,[object Object],[object Object],[object Object],[object Object],[object Object]

How Dell Reengineered and Managed its Supply Chain to Become #1 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],How Dell Reengineered and Managed its Supply Chain to Become #1

Essentials of the Supply Chains ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Essentials of the Supply Chains ,[object Object],[object Object],[object Object],[object Object]

Essentials of the Supply Chains ,[object Object],reduce uncertainty and risks in the supply chain positively affecting inventory levels, cycle time, business processes, and customer service increase profitability and competitiveness

Supply Chain 2 nd Tier Suppliers 2 nd Tier Suppliers 2 nd Tier Suppliers 1 st Tier Suppliers 1 st Tier Suppliers Assembly/ Manufacturing and Packaging Distribution Centers Retailers Customers The Generic Process Upstream Internal Downstream Corrugate Paper Co. Lumber Company Label Manufacturing Grain Producer Processing Facility Distribution Centers Stores Customers The Cereal Manufacturing Process Packaging Grain Cereal Packaged Cereal Box Paperboard Labels

Problems Along the Supply Chains ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Some Solutions to the Supply Chain Problems ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

The Evaluation of Computerized Aids Inventory Purchasing Production scheduling MRP 1960 Production Management + MRP Finance, labor MRP II 1970 Major Manufacturing Resources + MRP II All internal resources ERP 1980 Coordinated Manufacturing and Service Transactions + ERP Internal customers and suppliers Internal SCM 1990 Extended ERP/SCM + Internal ERP/SCM External suppliers and customers Extended SCM 2000 Extreme/ Integration +

Why Integration? ,[object Object],[object Object]

Integrating the Supply Chain ,[object Object],[object Object]

Enterprise Resources Planning (ERP) ,[object Object],[object Object],[object Object],[object Object],[object Object]

SAP - The Complete Solution ,[object Object],[object Object],[object Object]

Example of How R/3 Work ,[object Object],[object Object]

Example of How R/3 Work ,[object Object],[object Object],[object Object]

ERP ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

First Generation ERP ,[object Object],[object Object],[object Object],[object Object]

Second Generation ERP ,[object Object],[object Object],[object Object],[object Object]

Application Service Providers and ERP Outsourcing ,[object Object],[object Object],[object Object]

Global Supply Chains ,[object Object],[object Object],[object Object]

Business Process Reengineering (BPR) ,[object Object]

The Need for BPR ,[object Object],[object Object],[object Object],[object Object]

Problem of the Stovepipe ,[object Object],[object Object]

Need for Information Integration Business processes across functional areas and organizational boundaries. Distribution Logistics, Services Purchasing Finance R & D Production Sales Distribution Vendors, Suppliers Organization Customers Product development Order fulfillment Planning, resourcing, and control Customer service

IBM Credit Corporation Reduced Cycle Time by 90% ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

The Enabling Role of Information Technology in BPR ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Retooling of IT for BPR ,[object Object],[object Object]

Tools for BPR ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Ford’s Process Redesign Payment OLD PROCESS Purchasing Ford receiving Accounts payable Supplier Purchase order Copy of purchase order Goods Receiving document Invoice 500 Employees NEW PROCESS Purchasing Ford receiving Accounts payable Supplier Purchase order Goods Payment 125 Employees Data-base

From Mass Production to Mass Customization ,[object Object],[object Object],[object Object],[object Object]

Push-based Supply Chain vs. Pull-based Supply Chain PUSH PULL Manufacturer Retail Distribution Center Retail Store Customers Purchase Merchandise Manufacturer Retail Distribution Center Retail Store Customers Purchase Merchandise

Cycle Time Reduction ,[object Object],[object Object]

Reengineering Organizations ,[object Object],[object Object],[object Object],[object Object],[object Object]

Networked vs. Hierarchical Organization Hierarchical Organization Networked Organization Formal Highly structured Manage Control Direct Employees a cost Information management -owned Hierarchical Organizations Risk avoidance Individual contributions Informal Loosely structured Delegate/lead Ownership/participation Empower Employees an asset Information shared ownership Flatter Organizations Risk management Team contributions          

From Hierarchy to a Network Hierarchical Organization Flattened Organization Network Organization

Empowerment ,[object Object],[object Object]

Empowerment’s Relationship to Information Technology ,[object Object],[object Object],[object Object]

Teams ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Virtual Corporations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

How IT Supports Virtual Corporation ,[object Object],[object Object],[object Object],[object Object],[object Object]

Buying and Selling Along the Supply Chain ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Implementing EC Solutions Along the Supply Chain ,[object Object],[object Object],[object Object],[object Object],[object Object]

Copyright  2001 John Wiley & Sons, Incorporated. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner in unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Son, Inc. Adopters of the textbook are granted permission to make back-up copies for his/her own use only, to make copies for distribution to student of the course the textbook is used in, and to modify this material to best suit their instructional needs. Under no circumstances can copies be made for resale. The publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein. IT for Management Prof. Efraim Turban 6-

Supply Chain Enterprise Resources Planning

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Supply Chain Enterprise Resources Planning