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Supply Chain Synchronization for
Effective Operation Planning




                                Group 4
                           Lek Yen Hoon
                            Koh Mei York
                             Zheng Liyue

                                    1
Introduction of Supply Chain Management




                CONTENTS



Eight Dimensions of        Operation Planning
Supply Chain
Synchronisation

                                        2
   Supply chain management (SCM)
    is the process of planning,
    implementing, and controlling
    the operations of the supply chain
    as efficiently as possible.

   Supply Chain Management spans
    all movement and storage of raw
    materials, work-in-process
    inventory, and finished goods
    from point-of-origin to point-of-
    consumption.




                                         3
   Supply Chain Synchronisation is
    becoming the most important way to
    develop higher levels of supply chain
    competitive advantage.

   To achieve the highest level of supply
    chain synchronization benefit, you must
    address eight different dimensions of
    the supply chain.




                                        4
5
   Educate the people. Explain in simple terms what
    synchronization is, what it intends to achieve, how it intends to
    achieve it and what their part is in it.

   Continue direct communication throughout the project to help
    develop linkages between employees of participating firms.

   Facilitate about data and ongoing communication is critical to
    ensure product, ordering and systems information are correctly
    updated to support the coordinated scheduling.

                                                                6
   Develop the supply chain schedule
   Have realistic expectations
   Map the current process
   Allow for variances
   Err on the safe side
   Overlay volume and density information
   Inform the participants



       Collecting data is streamlining the process to minimize
        additional work.
       Data collection should be a by product of the supply
        chain process, not activity unto itself.

                                                        7
   Order Timing – Map and understand current supply chain
    flows and timings by developing a new, optimized supply
    chain synchronization model.
   Unitization - taking production at the locations and rates it
    is most efficient to take it, without disruption of the
    scheme by the legal rights inhering in competing
    properties




   This is partially completed by the barcode symbology
    (or RFID in advanced cases) and the purchase order.
   These two key data streams can be easily integrated
    into the supply chain synchronization processes.



                                                         8
   Collect information about each exception for
    monitoring and improvement purposes

   Exceptions should be manageable to prevent flaws in
    the information used to build the synchronized system




   The base level of service required is
    to determine the required service
    level or delivery lead time that is
    acceptable

   Once this determination is made,
    transportation mode and optimal
    load mix density will be selected
                                                      9
   Rules and methods for ongoing adjustment and
    optimization of the process should be defined
   Integrate the ability to switch to varying size and
    capacity of containers
   Careful monitoring of these optimization
    opportunities will make the appropriate timing for
    such initiatives readily apparent




                                                          10
   Operations Planning is a process where the executives of an
    organization gather monthly to review previous performance
    against plans and if necessary create new plans.

   The input to the process is the forecast and the output of the
    S&OP is the production plan, the demand plan, as well as the
    many other plans that are derived from these.

   The objective of Operations Planning is to arrive at a business
    "Game Plan" to help manage and allocate critical resources to
    meet the needs of the customer at the least cost to do so.

   S&OP works on pre-agreed Key Performance Indicators. It helps
    the Managers to identify the area for improvements through
    these KPI and track the plan vs. actual performance.

                                                             11
 Improved  customer service
 Reduced inventory
 Lower manufacturing & distribution costs
 Better control of overall business
  performance
 Increased team work within and across
  functions




                                      12
13
14
   Supply Chain tends to focus on purchasing and
    procurement, but not necessarily so. It can
    include materials, inventory, and production
    planning.
                                             15
16

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Supply Chain Synchronisation For Effective Operations Planning (Revised)

  • 1. Supply Chain Synchronization for Effective Operation Planning Group 4 Lek Yen Hoon Koh Mei York Zheng Liyue 1
  • 2. Introduction of Supply Chain Management CONTENTS Eight Dimensions of Operation Planning Supply Chain Synchronisation 2
  • 3. Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain as efficiently as possible.  Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of- consumption. 3
  • 4. Supply Chain Synchronisation is becoming the most important way to develop higher levels of supply chain competitive advantage.  To achieve the highest level of supply chain synchronization benefit, you must address eight different dimensions of the supply chain. 4
  • 5. 5
  • 6. Educate the people. Explain in simple terms what synchronization is, what it intends to achieve, how it intends to achieve it and what their part is in it.  Continue direct communication throughout the project to help develop linkages between employees of participating firms.  Facilitate about data and ongoing communication is critical to ensure product, ordering and systems information are correctly updated to support the coordinated scheduling. 6
  • 7. Develop the supply chain schedule  Have realistic expectations  Map the current process  Allow for variances  Err on the safe side  Overlay volume and density information  Inform the participants  Collecting data is streamlining the process to minimize additional work.  Data collection should be a by product of the supply chain process, not activity unto itself. 7
  • 8. Order Timing – Map and understand current supply chain flows and timings by developing a new, optimized supply chain synchronization model.  Unitization - taking production at the locations and rates it is most efficient to take it, without disruption of the scheme by the legal rights inhering in competing properties  This is partially completed by the barcode symbology (or RFID in advanced cases) and the purchase order.  These two key data streams can be easily integrated into the supply chain synchronization processes. 8
  • 9. Collect information about each exception for monitoring and improvement purposes  Exceptions should be manageable to prevent flaws in the information used to build the synchronized system  The base level of service required is to determine the required service level or delivery lead time that is acceptable  Once this determination is made, transportation mode and optimal load mix density will be selected 9
  • 10. Rules and methods for ongoing adjustment and optimization of the process should be defined  Integrate the ability to switch to varying size and capacity of containers  Careful monitoring of these optimization opportunities will make the appropriate timing for such initiatives readily apparent 10
  • 11. Operations Planning is a process where the executives of an organization gather monthly to review previous performance against plans and if necessary create new plans.  The input to the process is the forecast and the output of the S&OP is the production plan, the demand plan, as well as the many other plans that are derived from these.  The objective of Operations Planning is to arrive at a business "Game Plan" to help manage and allocate critical resources to meet the needs of the customer at the least cost to do so.  S&OP works on pre-agreed Key Performance Indicators. It helps the Managers to identify the area for improvements through these KPI and track the plan vs. actual performance. 11
  • 12.  Improved customer service  Reduced inventory  Lower manufacturing & distribution costs  Better control of overall business performance  Increased team work within and across functions 12
  • 13. 13
  • 14. 14
  • 15. Supply Chain tends to focus on purchasing and procurement, but not necessarily so. It can include materials, inventory, and production planning. 15
  • 16. 16