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1、The Characteristics of Supply Chain ManagementComplexity, Variability, Conflicting Objectives2003 Andersen Consulting1Order Response TimeProduct AvailabilityLead TimeOrder ChangesDue Date PerformanceResource InvestmentAsset ProductivityInventorySupplier & Capacity ContractsLevel ofServiceCost ofServ
2、iceThe Business Challenges2003 Andersen Consulting2ComplexityVariabilityConflicting ObjectivesWhat are the characteristics of Supply Chan Management, why is it so hard to manage?2003 Andersen Consulting3ComplexityLead Times Limit FlexibilityLittle or No Predictability and Poor Product MixJanuary? ?
3、? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?Chronic CapacityShortagesCurrent Processes and Structures Inhibit PerformanceInventory Used to Cover ProblemsComplications in the Electronics IndustryComplexity in Component / Semiconductor Manufacturing Mass customization Personalization Product mix effe
4、cts on capacity Multiple options Contracted vs. owned capacity Combined make-to-forecast and make-to-order Inverted BOM Binning Multi-stage global production2003 Andersen Consulting4Uncertainty in the supply chain results in significant variabilityEarlyOn-timeLateEarlyOn-timeLateUnderForecastOverEar
5、lyOn-timeLateCustomer DemandSupplier PerformanceManufacturingCustomer DeliveriesRawMaterialsFinishedGoods Past Performance Market Research Analytical Technique Incentive Programs Responsiveness Transportation Location Quality Process Design Product Design Capacity QualityBy Tom Davis2003 Andersen Co
6、nsulting5SupplyChannel OrdersActualLaunchReal ShortageReturns/CancellationsOver-SupplyChannel Fill and Phantom DemandTargetLaunchEnd of LifeTrue End Customer DemandUnits Per PeriodTimeMultiple forecasts and unreliable fulfillment today create the bullwhip effect.2003 Andersen Consulting6Shortened pr
7、oduct life cycle has increased the uncertainty.Ramp-upOngoingEnd of LifeRamp-upOngoingEnd of LifeRole of InventoryHighUsualLowCost of ShortageHighUsualLowCost of OverageLowUsualHighBy Professor Hau L. Lee, Stanford University2003 Andersen Consulting7VariabilityNatural Demand Material supply Producti
8、on DistributionSelf-Introduced Replenishment strategies Planning processes Inventory strategies2003 Andersen Consulting8Traditional functional alignments continue to impede Supply Chain Performance. Misaligned Functional Goals & BehaviorsPurchasingManufacturingDistributionSales & Customer ServiceGoa
9、l: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 2003 Andersen Consulting
10、9Conflicting Objectives - ManufacturingLittles Law Littles LawAssetUtilizationWIPINVCycleTimeVariabilityThroughputWIPCycle TimeVariability2003 Andersen Consulting10Conflicting Objectives - Customer Littles LawAssetUtilization WIPINVCycleTimeVariabilityOrder Response Time Early WarningsDue Date PerformanceFill Rates2003 Andersen Consulting11Conflicting Objective
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