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E331 Supply Chain Management
     UT3 Summary Notes

  Date of UT3 : 21st February 2013
  Time : 1400 to 1530

  Block : W2
  Level : 4


    Setter : Vyner Gerard Albuquerque Junior
Key Learning Objectives (P02)
 Know Key differences among the 4 Supply Chain
  Designs according to different factors.
 Determine the appropriate supply chain design
  based on the scenario given.
   Know Key differences among the 4 Supply Chain Designs according to different
    factors.
   Determine the appropriate supply chain design based on the scenario given.
   Know Key differences among the 4 Supply Chain Designs according to different
    factors.
   Determine the appropriate supply chain design based on the scenario given.

    Summary : In Terms of Lead-Time / Response Time
   Know Key differences among the 4 Supply Chain Designs according to different
    factors.
   Determine the appropriate supply chain design based on the scenario given.

    Summary : In Terms of Level of Customization
                                                                       No
                                                                  Customization


                                                                      Low Level of
                                                                     Customization

                                                                       High Level of
                                                                       Customization


                                                                            Fully
                                                                         Customized
   Know Key differences among the 4 Supply Chain Designs according to different
    factors.
   Determine the appropriate supply chain design based on the scenario given.

    Summary : In Terms of Production Costs

        Production Costs is dependent on the Level of
                       Customization.

    No Customization (BTS) = Production Costs is low.
    Because products are standardized.

    Fully Customized (ETO) = Production Costs is high.
    Because products/parts are unique.
   Know Key differences among the 4 Supply Chain Designs according to different
    factors.
   Determine the appropriate supply chain design based on the scenario given.

    Summary : In Terms of Service Level

           Service Level is dependent on the Level of
                          Customization.

    No Customization (BTS) = Low Level of Service.
    Because products are standardized.

    Fully Customized (ETO) = High Level of Service.
    Because products/parts are unique.
   Know Key differences among the 4 Supply Chain Designs according to different
      factors.
     Determine the appropriate supply chain design based on the scenario given.

      Summary : In Terms of Inventory Costs




                                                                   CTO


                                                                    BTO




ETO will have the lowest inventory costs. BTS will have the highest inventory costs.
End-Products  Highest Inventory Costs.
Raw Materials / Unique Parts  Lowest Inventory Costs
 Able to identify the Push-Pull Boundaries for each
  Supply Chain Designs
 Able to identify the Push-Pull Boundaries for each
  Supply Chain Designs
 Able to identify the Push-Pull Boundaries for each
  Supply Chain Designs




                              PULL
           PUSH




                  PULL        PULL
   PUSH
Key Learning Objectives (P07 & P08)
 Know what a forward picking area is and how it
  helps.
  Forward Picking Area functions as a warehouse
  within the warehouse. This means that the
  most popular SKUs are stored an area in small
  amounts, so that order picking can be concentrated
  within a relatively small area which helps to reduce
  unproductive travel by order pickers.
                                          FAST-MOVING
                                             SKUs
 Know the three types of profits.
 Able to Perform ABC Analysis.




All Items that are Classified as A should be placed in the forward picking area.

                             WARNING:-
      REMEMBER to Sort the Picking Frequency/Year from Largest to
           Smallest Number before Classification of Items.
 Know the impact of applying various supply chain
  strategies to the financial documents and C2C.
 Know the impact of applying various supply chain
  strategies to the financial documents and C2C.
 Know the impact of applying various supply chain
  strategies to the financial documents and C2C.
 Able to Calculate Working Capital & ROA.
 Able to Suggest Supply Chain Strategies to Improve
  Working Capital.
 Formula for P07 & P08 Calculations
Key Learning Objectives (P09 & P11)
 Know the various factors that affect the supply chain
  network design.
 Understand the classification of facilities under
  strategic factor (offshore, contributor, etc)
 Comparison of 6 distribution network designs
  according to different factors.




                                   1 = Best, 5 = Worse
 Comparison of 6 distribution network designs
  according to different factors. (contd)




                                  +2 = Best, -2 = Worse
Key Learning Objectives (P12 & P13)
 Able to describe the environmental impacts from the
  supply chain activities.
 Able to explain how the green practices (Rs, JIT, etc.)
  may help in greening each part of the supply chain.
 Know what is carbon footprint and how to calculate.
    A carbon footprint is a measure of the impact of the supply chain
     activities on the environment and climate change.
    It is commonly used to describe the total amount of CO2 and other
     greenhouse gas (GHG) emissions for which an individual or
     organization is responsible.
    For example, the carbon footprint of a can of food is the total amount
     of carbon emissions from production, transportation, consumption
     and disposal of the single can of food.
    Types of footprint: Organizational/ Product
    Performance Metric: Total supply chain carbon footprint = sum of
     emissions from energy and fuel consumption and process related
     emissions = Plan Carbon Emissions + Source + Make + Deliver + Return
 Drivers of Greening Supply Chains.
   Rising energy costs
   Reduce logistics costs
   Rising cost of transportation
   Global concerns about greenhouse gases
   Climate change
   Regulations like RoHS (Restriction of the Use of Certain Hazardous Substances in

                           Electrical and Electronic Equipment), etc.
   Technology innovations
   Increased public awareness of environmental issues
   Achieve regulatory compliance
   Differentiation from competitors
Key Learning Objectives (P14 & P15)
 Know the Organizational Units Required in a
  Purchase Order Creation. (Note : PO = MM.)




                                       Organizational
                                           Units
 Understand the various types of POs available in SAP
  (Item Category)
 Know the key steps involved in a procure-to-order
  cycle and the steps performed during class hands-on.




     Steps performed during class hands-on = Refer to P14 Worksheet.
 Understand the SD specific organizational units.
 Know the order-to-cash cycle in SAP SD and the steps
  performed during hands-on.




     Steps performed during class hands-on = Refer to P15 Worksheet.
 Know how Document Flow helps in SD module.




  In addition, document flow is updated online automatically after each
  relevant transaction.
Workshop Questions & Solutions
E331 Excel

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E331 Summary Notes

  • 1. E331 Supply Chain Management UT3 Summary Notes Date of UT3 : 21st February 2013 Time : 1400 to 1530 Block : W2 Level : 4 Setter : Vyner Gerard Albuquerque Junior
  • 2. Key Learning Objectives (P02) Know Key differences among the 4 Supply Chain Designs according to different factors. Determine the appropriate supply chain design based on the scenario given.
  • 3. Know Key differences among the 4 Supply Chain Designs according to different factors. Determine the appropriate supply chain design based on the scenario given.
  • 4. Know Key differences among the 4 Supply Chain Designs according to different factors. Determine the appropriate supply chain design based on the scenario given. Summary : In Terms of Lead-Time / Response Time
  • 5. Know Key differences among the 4 Supply Chain Designs according to different factors. Determine the appropriate supply chain design based on the scenario given. Summary : In Terms of Level of Customization No Customization Low Level of Customization High Level of Customization Fully Customized
  • 6. Know Key differences among the 4 Supply Chain Designs according to different factors. Determine the appropriate supply chain design based on the scenario given. Summary : In Terms of Production Costs Production Costs is dependent on the Level of Customization. No Customization (BTS) = Production Costs is low. Because products are standardized. Fully Customized (ETO) = Production Costs is high. Because products/parts are unique.
  • 7. Know Key differences among the 4 Supply Chain Designs according to different factors. Determine the appropriate supply chain design based on the scenario given. Summary : In Terms of Service Level Service Level is dependent on the Level of Customization. No Customization (BTS) = Low Level of Service. Because products are standardized. Fully Customized (ETO) = High Level of Service. Because products/parts are unique.
  • 8. Know Key differences among the 4 Supply Chain Designs according to different factors. Determine the appropriate supply chain design based on the scenario given. Summary : In Terms of Inventory Costs CTO BTO ETO will have the lowest inventory costs. BTS will have the highest inventory costs. End-Products Highest Inventory Costs. Raw Materials / Unique Parts Lowest Inventory Costs
  • 9. Able to identify the Push-Pull Boundaries for each Supply Chain Designs
  • 10. Able to identify the Push-Pull Boundaries for each Supply Chain Designs
  • 11. Able to identify the Push-Pull Boundaries for each Supply Chain Designs PULL PUSH PULL PULL PUSH
  • 12. Key Learning Objectives (P07 & P08) Know what a forward picking area is and how it helps. Forward Picking Area functions as a warehouse within the warehouse. This means that the most popular SKUs are stored an area in small amounts, so that order picking can be concentrated within a relatively small area which helps to reduce unproductive travel by order pickers. FAST-MOVING SKUs
  • 13. Know the three types of profits.
  • 14. Able to Perform ABC Analysis. All Items that are Classified as A should be placed in the forward picking area. WARNING:- REMEMBER to Sort the Picking Frequency/Year from Largest to Smallest Number before Classification of Items.
  • 15. Know the impact of applying various supply chain strategies to the financial documents and C2C.
  • 16. Know the impact of applying various supply chain strategies to the financial documents and C2C.
  • 17. Know the impact of applying various supply chain strategies to the financial documents and C2C.
  • 18. Able to Calculate Working Capital & ROA.
  • 19. Able to Suggest Supply Chain Strategies to Improve Working Capital.
  • 20. Formula for P07 & P08 Calculations
  • 21. Key Learning Objectives (P09 & P11) Know the various factors that affect the supply chain network design.
  • 22. Understand the classification of facilities under strategic factor (offshore, contributor, etc)
  • 23. Comparison of 6 distribution network designs according to different factors. 1 = Best, 5 = Worse
  • 24. Comparison of 6 distribution network designs according to different factors. (contd) +2 = Best, -2 = Worse
  • 25. Key Learning Objectives (P12 & P13) Able to describe the environmental impacts from the supply chain activities.
  • 26. Able to explain how the green practices (Rs, JIT, etc.) may help in greening each part of the supply chain.
  • 27. Know what is carbon footprint and how to calculate. A carbon footprint is a measure of the impact of the supply chain activities on the environment and climate change. It is commonly used to describe the total amount of CO2 and other greenhouse gas (GHG) emissions for which an individual or organization is responsible. For example, the carbon footprint of a can of food is the total amount of carbon emissions from production, transportation, consumption and disposal of the single can of food. Types of footprint: Organizational/ Product Performance Metric: Total supply chain carbon footprint = sum of emissions from energy and fuel consumption and process related emissions = Plan Carbon Emissions + Source + Make + Deliver + Return
  • 28. Drivers of Greening Supply Chains. Rising energy costs Reduce logistics costs Rising cost of transportation Global concerns about greenhouse gases Climate change Regulations like RoHS (Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment), etc. Technology innovations Increased public awareness of environmental issues Achieve regulatory compliance Differentiation from competitors
  • 29. Key Learning Objectives (P14 & P15) Know the Organizational Units Required in a Purchase Order Creation. (Note : PO = MM.) Organizational Units
  • 30. Understand the various types of POs available in SAP (Item Category)
  • 31. Know the key steps involved in a procure-to-order cycle and the steps performed during class hands-on. Steps performed during class hands-on = Refer to P14 Worksheet.
  • 32. Understand the SD specific organizational units.
  • 33. Know the order-to-cash cycle in SAP SD and the steps performed during hands-on. Steps performed during class hands-on = Refer to P15 Worksheet.
  • 34. Know how Document Flow helps in SD module. In addition, document flow is updated online automatically after each relevant transaction.
  • 35. Workshop Questions & Solutions