(10th March 2018) BFBM စီးပြားေရးဆိုင္ရာ အခမဲ့ေဟာေျပာပြဲတြင္ ဆရာ ဦးတင္ဇံေက်ာ္ ေဟာေျပာခဲ့သည့္ Presentation File

2. Content
1. Value Chain
2. Concepts to Manage Values
3. Logistics Process & Distribution
4. Production Management
5. Supply Chain Planning
6. Integrated Value Chain Management
7. Value Chain Management Methods

3. Vision
Structure
System
Strategy
Philosophy
Culture

4. Many business turnaround situations can be planned in four
phases; Structure, People, Process & Strategy
Structure1
2
3
4
People
Process
Strategy
Align structure with the needs of
the business and customers
Hire, develop and retain world-
class talent.
Build processes that drive
efficiencies and focus on delivering
value to customers.
Now that we are winning, start
thinking longer term.

5. People & Process Balanced by Leaders

6. Social & Technical System
Social

7. Social & Technical System
Technical

8. People & Process – aligned by leaders to achieve
purpose

9. Value Chain
Raw Material Finished Product
What transforms raw materials
into a Finished Product ?
1

10. Value Chain
1. Create Value
2. Conformance
3. Perceived Value
4. Raw Materials For Purchase By A
Consumer.

11. Value Chain
1. Integrate Communication
2. Increase Cooperation
3. Production Chain
4. To Decrease Delivery Times
5. Reduce Inventories
6. Increase Customer Satisfaction

12. Value Drivers
 Improving The Perception
 Competitive Advantage
 Technology
 Brand Recognition

13. COMPETITIVE ADVANTAGE
Quality
Service
Innovation
Excellence
Profit
Superior
Cost
SellingPrice
Resources
Competence
Capabilities
Talent

14. Value for Money (VFM)
1. Minimum Purchase of Price
2. Maximum Efficiency and Effectiveness of The
Purchase.

15. Value Chain Management
Corporate Decision
Strategic Decision
Tactic Decision
Operational
Decision
Vision/
Top Management
Senior Management
Middle
Management
Lower
Management

16. Value Chain Management
Inbound
Logistics
Operations
Outbound
Logistics
Marketing &
Sales
Service
Procurement
Technology Development
Human Resource Management
Firm Infrastructure
Primary
Activities
Support
Activities

17. The Value Chain was further enhanced towards
1. Cross-company-orientation
2. Network-orientation

18. Procurement Production Distribution Sales ProcurementSales
Value chains of
multiple suppliers
Value chains of
multiple customers
Value Chain considered in the study
Company-internal value chain
Distribution Production
Support functions Support functionsSupport functions

19. Procurement Production Distribution Sales ProcurementSales
Support SupportSupport
Material flow Information exchange Financial flow Central information control
Value Chain-internal Financial Flows between Separated Legal Entities not Considered
Sales
locations
Production
location
Production
location
Production
location
Sales
locations
Procurement
locations
Distribution locations
Transportation
lanes/
Value chain networks
of multiple suppliers
Company-internal value chain network Value chain networks
of multiple customers

20. Four aspects should be mapped in the
Value Network
1. Money
2. Goods & Services
3. Information
4. Intangibles

21. Concepts to Manage the Value Chain
Three research areas :
1. Concepts to manage values in the value chain
2. Concepts to manage demand in the value chain
3. Concepts to manage supply in the value chain

22. Procurement Production Distribution Sales
Support functions
Concepts to Manage Values
• Financial Accounting
• Profile and Cost Controlling
• Value-based Management
Supply Demand
Value
Chain
Value
Focus
Concepts to Mange Supply
• Logistics Management
• Production Management
• Procurement and Sourcing
• Supply Chain Management
Concepts to Manage
Demand
• Micro-economics
• Sales and
Marketing
• Revenue
Management
Value
Focus
Management Concepts in the Value Chain

23. Concepts to Manage Values2

24. Concepts to Manage Values
1. Financial Accounting
2. Profit and Cost Controlling

25. OPERATING PROFIT
OPERATING EXPENSES
PRODUCT VARIABLE
COST (PVC)/COGS
REVENUE
Gross Sales
Less Discount & Allowances
= Net Revenue
Less Product Variable Cost /COGS
= Net Revenue
Less Total Operating Expenses
= Operating Profit

26. Major contributors to business health and growth are Leverage Points relating to volume and
revenues.
Examples of Volume Drivers:
• Quality
• Pricing
• Advertising
• New Products
• New Brands
• Distribution Systems
• Customer Service
• Merchandising
• Channel Development
• Organization
• Functional Support
• Operating Knowledge
• Packaging Consumer Activity
• Media
• Promotions
• Merchandising
• Public Relations
• Special Events
Consumer Activity
• Ordering
• Delivery
• Merchandising
• Joint Promotions
• Customer Services

27. Product Variable Cost (PVC) – Leverage Points like Quality, Purchasing and
Manufacturing Efficiency, play a major role.
What other leverages would you consider important for your market?

29. Logistics Process & Distribution3

30. 6. Loading on board
Sea transport
7. Discharging from sea -going vessel
9. Storage at stevedore’s premises
12. Transport to buye
r
Shipper Consignee
Forwarder Forwarder
Trucker Trucker
Warehouser Warehouser
Customs Customs
Stevedore Stevedore
Port, Carrier, Port
LOGISTICS PROCESS
(TRANSPORT CHAIN)

31. Suppliers
Raw material
Sub-assemblies
Manufactured
Parts
Packaging material
Inbound
Materials flow
Outbound
Finished
goods
Inventory
in the field
Work
in
Process
Producti
on
Finished
goods
Customer
Other
Equipment
Manufacturers
End Users
Government
Materials Management
Manufacturing and Supply Service
Physical Distribution Management
Customer Service
Logistics
Transit Depot Intermediary
COMPONETS OF LOGISTICS

32. Logistics Management
Inbound/
Procurement
Logistics
(For goods received)
Production
Logistics
(Logistics within
production)
Outbound/Distrib
ution Logistics
(For finished goods)
Disposal and Reverse Logistics
(Disposal, recycling, returns)
Supplier Customer

33. DISTRIBUTION
Customer
Service
Order Entry
Inventory
Control
Purchasing
E.D.ISales Analysis
Warehouse
Management
Point of Sale
Distribution
Architecture

34. Production Management4

35. Production
= transformation of
input materials
Output
product
Human
Resources
Machinery
Resources
Input
products
Production Working System
Production working system structure
Production
Management

36. The Seven
Deadly Wastes

37. Procurement and Sourcing
1. Product management
2. Product Quantities
Selection
1. Global Sourcing
2. Trade Shows
3. Literature

38. Supply Chain
Planning
5

39. Procurement Production Distribution Sales
Long-
term
mid-
term
short-
term
• Materials program
• Supplier selection
• Cooperations
• Plant location
• Production systems
• Physical distribution
structure
• Product program
• Strategic sales
planning
• Personnel
planning
• Material
requirements
planning
• contracts
• Personnel
planning
• Ordering
material
• Master
production
scheduling
• Capacity
planning
• Lot-sizing
• Machine
scheduling
• Shop floor
control
• Distribution
planning
• Warehouse
replenishment
• Transport
planning
• Mid-term sales
planning
• Short-term
sales planning
Flow of Goods Information Flows
Supply
Chain
Planning
Matrix

40. Procurement Production Distribution Sales
Strategic Network Design
Master Planning
Demand Planning
Demand
Fulfillment & ATP
Purchasing &
Materials
Requirements
Planning
Production
Planning
Distribution
Planning
Scheduling Transport Planning
Long-term
Mid-term
Short-term

41. Procurement Production Distribution Sales
Supply Demand
Value
Chain
Value
Focus
Value Chain Management Scope
Value
Focus
Comparison of management concepts in the value chain
Focus on total profits with given demand and supply
Focus on supply cost minimization with supply
volume decisions based on given demand
Focus on turnover
maximization
with sales volume
and price
decisions based
on given supply
Concepts Comparison

42. Integrated Value Chain Management6

43. Integrated Value Chain Management
Value Chain management is the integration of
demand, supply and value decisions from
sales to procurement using strategy, planning
and operational processes.

44. Procurement
Planning
Production
Planning
Distribution
Planning
Sales
Planning
basis
Negotiation &
collaboration
Negotiation &
collaboration
Integrated decisions on global volumes and values
Value Chain Planning

45. Integration of Sales and Supply Decisions in the Value Chain

46. Purchase Order
Management
Production
Scheduling
Distribution
Scheduling
Sales Order
Management
basis
Negotiation &
collaboration
Negotiation &
collaboration
Integrated decisions on regional order schedules and availability
Value Chain Planning

47. Value Chain Management Methods7

48. Value Chain Management Methods
Value Chain
Management Method
Categories
Simulation Optimization
Analysis and
Visualization
Reference
Analyze and
visualize future
state to support
decisions
Value Chain management method categories
Compare with a
good state
Comparison of
different future
states
Calculation of best
future state

49. Impact of VCM on Effectiveness of Company’s Operation
Company A
Process
A
Process
B
Process
C
Process
D
Process
E
99% 99% 99% 99% 99%
Total Effectiveness = (99%) x (99%) x (99%) x (99%) x (99%) = 95%
Company B
Process
A
Process
B
Process
C
Process
D
Process
E
95% 95% 95% 95% 95%
Total Effectiveness = (95%) x (95%) x (95%) x (95%) x (95%) = 77%

50. Value Chain Process Improvement
Improve Quality
Eliminate Waste
Reduce Lead Time
Reduce Total Costs

51. 1. Reach more customers
2. Reduce costs
3. Improve cash flow
4. Increase sales more rapidly
5. Focus on area of expertise
Value Chain Benefits

52. The Basic
Supply Chain
Finance Flow
Supplier
Raw material packaging
warehouse Manufacturer
Manufacturer warehouse
Retailer warehouse
Retailer
PhysicalFlow

53. Infographics
Process
1 Selection the Topic
2 Surveying & Researching
3 Gathering
the Data
4 Analyzing the Data
5 Finding the Narrative
6 Sketching the Idea
7 Editing
8 Designing
9 Testing
10 Completing the
Infographic

54. Conclusions

55. Value Chain Strategy, Planning and Operations
Value chain strategy is the integration of business
design and business rule decisions in the value
chain

56. Procurement Production Distribution Sales
Support functions
Procurement
Strategy
Production
Strategy
Distribution
Strategy
Sales
Strategy
basis
Business design and business rules
Procurement
Planning
Production
Planning
Distribution
Planning
Sales
Planning
Stable framework
Volumes and Values
Purchase Order
Management
Production
Scheduling
Distribution
Scheduling
Sales Order
Management
basis
Value
Chain
processes
Value chain
strategy
Value chain
planning
Value chain
operations
Negotiation &
collaboration
Negotiation &
collaboration
Reference Optimization Simulation Analysis & VisualizationMethods
Value Chain Management Framework

57. Thank You