supply chain types and project management

8/11/2019 Supply Chain Types and Project Management

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Supply Chain

Species


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Kanban System


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"OK, you've swallowed the pig; now what do you do with it?" This is a common

problem in push production systems.

Constrictor snakes such as the one shown above are designed to process meals inthe indicated manner, and they often sleep for several months while they digest

their meals. This is not how we want a factory to operate; pig-swallowing should be

left to systems that are designed to handle it.

The Problem with Push Production


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A method of JIT inventory replenishment that originated in Japan.

Kanban techniques can be used by bothmanufacturingand non-manufacturing organizations

Kanban systems can be:

100% manual

100% Automated

A hybrid of Automated and manual techniques

Non-manufacturing companies may use a hybrid approach

Suited for particular types of inventory items such as

items with frequent usage

items with short lead times

items with willing suppliers


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Can use different methods to trigger replenishment activity

kanban cards are the most common

kanban containers are also frequently used

bar coding of cards / containers helps when

automating kanban systems

McDonalds method of keeping burger lanes full during peak

periods is a recognizable example of a pull system in a service

application

Using an Andon System

Numero de Parte

Uso Suministro

Kanban card


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THE KANBAN CYCLE

Planner determines when to

add / remove cards

When order minimum is

reached, a Job, PO, or Move

Order is created

In-ProcessWhen received, kanban status isupdated and container is moved to

usage area

Full

Empty

Wait until minimum order

quantity is reached

When container is empty, signal sent

to source to replenish kanban

New

Wait


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KANBAN BENEFITS

Reduce inventory and product obsolescence

Reduces waste and scrap

Increases output

Reduces wait time

Provides flexibility in production

In essence all the above lead to reduced totalcost of production and increased efficiency


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Vendor Managed Inventoryaka(VMI)


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Supplier responsible for replenishment

EDI, POS information provided by buyer

Shared risk format of doing business

Usually supplier buys back unsold inventory

Ownership passed to buyer on consumption and

not shipment

Wal-Mart, Nestle , Home Depot use VMI

Oil companies use this to maintain oil levels atservice stations


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BILL OF MATERIAL

A list of materials (raw material / sub assembly / finished goods)

A document used for tracking and recording materials

Details covered in a Bill of Material (BOM)

Sl. No.

Item code

Item description

Make / Manufacturer

Relation with other components

Quantity Relevant information as per document application

(e.g. Excise amount, vehicle information in EDGP etc.)


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Bill of Material (BOM)

Data base of all parts

Part Number

Description

Engineer

Quantity

Item

PN Description Engineer Qty. Item Size Weight Each U/M Used On

110 Steel pipes Ryan N/A part A N/A each 100

120 vehicle cover Ryan N/A part A N/A each 100

130 seat Nick 1 part A N/A each 100

Size

Weight

Unit of Measure

Used on


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Bill of Material (BOM)

Indented by subassemblies

400 Braking system

410 uprights

411 Mounting bolts

412 Nuts

420 calipers

421 Mounting bolts422 Brake pads

430 brake discs

440 hubs (4)

450 tires (4)

460 rims (4)

470 master cylinder

471 brake cables

472 brake fluid

480 brake petals

Assembly

Subassemblies

Detailed Parts


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Create a BOM for your Pen.

You dont buy refills you only buy plastic and metal components and Ink


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PROJECT MANAGEMENT


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PROJECT DEFINITION

THEORY

A temporaryendeavor

to create a unique

product or service:

a specific timeframe

a budget

unique

specifications

working across

organizationalboundaries

TATA NANO

Feasibility(safety, power,

affordability)

Project Team,

Networking and

Project Scheduling

Tendering, Bidding,

Contracting; Quality,

IT and technology

Resource Management,

Project Close Out

INCEPTION

Planned Vs Unplanned


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PROJECT MANAGEMENT TRIANGLE

COST MANAGEMENT

Resource Planning

Cost Estimating

Cost Budgeting

Cost Control

SCOPE MANAGEMENT

Scope Planning

Scope Definition

Scope Verification

Scope Change Control

TIME MANAGEMENT

Activity Definition

Work Breakdown

Activity Scheduling

Schedule Monitoring

RISKQUALITY MANAGEMENT

Quality Planning

Quality Assurance

Quality Control


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PROJECT PROCESS

Important Aspects:

Define Project structure organizational

Key responsibilities, deliverables

Define Documentation protocol and standards


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CHANGE POSSIBILITY vs COST


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PROJECT MANAGEMENT TOOLS Work Breakdown Structure

Scheduling toolsMS PROJECT

MS EXCEL

PRIMEVERA etc.


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WORK BREAKDOWN STRUCTURE (example)

System Hardware

Replacement

RFP Development

Needs Assessment

Needs Analysis

Write RFP

Finalize with

Purchasing

Vendor Selection

Research Vendors

Research Sites

Select Vendors to

mail RFP

Review Proposals

Rank Proposals

Recommendation

Staff Training

Identify training

Plan

Schedule Training

Train

Hardware

Implementation

Schedule

Installation

Prepare Site

Arrange Vendor

Support

Configure System

Install System

A methodology to divide work into small sub tasks

Identify the major task categories

Identify sub-tasks, and sub-sub-tasks


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WORK BREAKDOWN STRUCTURE (example)System Hardware

Replacement

RFP Development

Needs Assessment

Needs Analysis

Write RFP

Finalize with

Purchasing

Vendor Selection

Research Vendors

Research Sites

Select Vendors to

mail RFP

Review Proposals

Rank Proposals

Recommendation

Staff Training

Identify training

Plan

Schedule Training

Train

Hardware

Implementation

Schedule

Installation

Prepare Site

Arrange Vendor

Support

Configure System

Install System


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PROJECT SCHEDULE (GANTT CHART)


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Basics Of PERT/CPM

PERT=Project Evaluation Review Technique

CPM = Critical Path Method


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The CPM Diagram

Tasks are Arrows Events are Circles

Dummy Tasks are Dashed Arrows

Critical Tasks are Thick Arrows


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IMPORTANT TERMINOLOGY PROJECT PHASES

Bid / No Bid

Acquired / Order Received

Order booked

Basic engineering phase

Detail Engineering phase

Supply

Installation

Commissioning

Acceptance Tests


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IMPORTANT TERMINOLOGY MILESTONES

It is the end of a stage that marks the completion of a workpackage / phase

signals the completion of a key deliverable

Project monitoring is done based on milestones

CRITICAL PATH

The shortest path to complete the projectThe activity sequence which impacts downstream milestones

and the overall timeline of project

If you miss a Critical Path, the entire project is delayed, or

You have to make up ground on downstream critical paths

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