After studying this chapter you will be able to: Explain the terms lean operations and JIT, describe the main characteristics of lean systems, list the five principles of the way lean system function, list some of the benefits and some of the risks of lean operations,. | PART III IMPLEMENTING ADVANCED PLANNING SYSTEMS SUMMARY of Last Lecture Supply Chain Management aims at improving competitiveness of the supply chain as a whole, by integrating organizational units along the supply chain and by coordinating material, information and financial flows in order to fulfill (ultimate) customer demands. Supply Chain Management projects range from functional improvements on the IT level to large-scale change programmes. The supply chain evaluation is structured according to the functional areas of the supply chain organization, including executive management, the IT function, suppliers, customers and competitors. The following paragraphs discuss topics that have to be clarified with the various functional entities in an organization before entering an APS implementation project. Figure shows the structure of a supply chain evaluation. CHAP 15 (Cont’d) The Definition of a Supply Chain Project LAYOUT Supply Chain Potential Analysis Financial Performance Indicators Return on Assets External Variability Demand Fluctuation Excess Expanses/Costs Excess Assets Project Roadmap Enabler-KPI-Value Network SUPPLY CHAIN POTENTIAL ANALYSIS Based on the results from the supply chain evaluation and the analysis of the business strategy potential improvement areas are identified and the initial scope of the project is defined. To achieve the improvements and related benefits specific SCM concepts are applied and to-be models for an APS implementation are designed. To-be SCM concepts include Processes: planning, execution, performance measurement Organizational models: intra-organizational and inter-organizational models (. collaboration mode with supply chain partners) Structure of the supply chain: physical structure of the production and distribution network IT support: support from APS and other IT systems to support the intended to-be models. The design of the to-be SCM concepts and the required APS-functionality to support | PART III IMPLEMENTING ADVANCED PLANNING SYSTEMS SUMMARY of Last Lecture Supply Chain Management aims at improving competitiveness of the supply chain as a whole, by integrating organizational units along the supply chain and by coordinating material, information and financial flows in order to fulfill (ultimate) customer demands. Supply Chain Management projects range from functional improvements on the IT level to large-scale change programmes. The supply chain evaluation is structured according to the functional areas of the supply chain organization, including executive management, the IT function, suppliers, customers and competitors. The following paragraphs discuss topics that have to be clarified with the various functional entities in an organization before entering an APS implementation project. Figure shows the structure of a supply chain evaluation. CHAP 15 (Cont’d) The Definition of a Supply Chain Project LAYOUT Supply Chain Potential Analysis .
