Assignment: Dhaka University of Engineering & Technology (DUET)
Assignment: Dhaka University of Engineering & Technology (DUET)
Assignment: Dhaka University of Engineering & Technology (DUET)
(DUET), Gazipur-1707
Assignment
Course Code: TE-3805
Course Title: Supply chain & Operation management
Assignment Title:
SCM, Scope of Operation management, importance of SCM,
example of SCM activities, influencing factors of SCM, challenges in
implementing effective SCM and mitigation of challenges,
classification of production system and advantages-disadvantages of
each system, difference between goods and services, Lean, six sigma,
Agile, Kaizen philosophy of SCM and their tenets, developing of
SCM using these philosophy.
Assuring quality: To assure the buyer’s expected quality like sewing thread,
seam strength, trimming and accessories and the size of product, specification
etc.
Supply planning: The supply planning determines how the needs created
from the demand plan can be best met. The objective is to balance supply and
demand in a way that achieves the financial and service objectives of the
enterprise.
For example, in spinning, weaving, denying and apparel industry need to
supply raw material i.e. fiber, yarn, fabric and finished fabric consistently.
This objectives is to balance the raw material supply and demand.
For example, 100 tones dyed fabric production capacity which needs to
complete the production with 130 kg reactive dye.
Increased Costs throughout the Supply Chain: Profit margins are under
pressure as costs creep up throughout the supply chain network. These costs
come from many areas, and a lack of visibility and accountability for
reducing them can result in rising operational expenses.
Intermittent Production:
Advantages:
Variety of products are produced.
General purpose machines are used.
Sequence of operation change as per design.
It is possible to changes in a product’s design or if a machine or tool breaks.
Disadvantages:
Production planning and scheduling is complicated since manufacturing
orders (MOs) come in at different times.
The flow of production is intermittent (irregular) or discontinuous.
Volume of production is small.
The raw materials and work-in-progress (WIP) inventories are high
because of the irregular flow of work.
Project Production:
Advantages:
Unique, high quality products are made.
Workers are often more motivated and take pride in their work.
Products are made according to individual customer needs and improve
customer satisfaction.
Production is easy to organize.
Disadvantages
Very labor-intensive, so selling prices are usually higher.
Production can take a long time and can have higher production cost.
Job Production:
Advantages:
Product usually high quality.
Producer meets individual customer needs.
Disadvantages:
Cost of producing one unit or job is higher.
Labor –intensive.
Batch Production:
Advantages:
Allows flexible production.
Inventories of part-finished goods can be stored and completed later.
Disadvantages:
Making many small batches can be expensive.
If production runs are different there may be additional costs and delays in
preparing equipment.
Continuous Production:
Advantages:
Flow of production is continuous.
Products are standardized.
Less wastage of resources.
Better utilization of resources.
Disadvantages:
The biggest drawback of continuous production is that it is dependent on
demand for the product.
This method of production is less flexible.
Chain Reaction.
Mass Production:
Advantages:
Increased productivity.
Uniformity.
Lower cost.
Faster production.
Less error.
Disadvantages:
Initial costs can make it hard for smaller businesses to mass produce their
products.
Less flexibility.
Higher energy consumption.
Lack of product uniqueness.
Process production
Advantages:
Processes can normally be automated which reduces unit costs.
Single product is produced, so it is risk free process.
Ideal for products which have to be of a consistent quality.
Disadvantages:
The flexibility of these plants is almost zero because only one product can
be produced.
Production cost is higher since small amount of production.
Goods Service
1. Goods are the material items that 1. Services are amenities, facilities,
can be seen, touched or felt and are benefits or help provided by other
ready for sale to the customers. people.
2. Goods are manufactured. 2. Services are provided or delivered.
3. Can be stored (inventoried). 3. Cannot be stored.
4. Low customer contact. 4. High customer contact.
5. Minimal participation by the 5. Customer often participates.
customer
6. Delay between production and 6. Production and consumption often
Production and consumption. simultaneous.
7. Productivity easily determined. 7. Productivity can difficult to
determine
8. Quality generally easy to measure. 8. Quality more difficult to measure.
7. What do you mean by Lean, six sigma, Agile, Kaizen philosophy of supply
chain management? What are the tenets of each of the philosophies? How
these philosophy help develop effective supply chain management?
Lean: Lean is a flexible system that uses minimum resources and produces
high quality goods or services. Lean systems tend to achieve greater
productivity, lower costs, shorter cycle times, and higher quality than
traditional systems.
Six Sigma: Six Sigma is a set of techniques, and tools for process
improvement. This process is one in which 99.9999966% of the products
manufactured are statistically expected to be free of defects.
Agile: Agile is an iterative approach to project management and software
development that helps teams deliver value to their customers faster and
with fewer headaches.
Kaizen: Kaizen is a Japanese term meaning "change for the better" or
"continuous improvement." It is a Japanese business philosophy regarding
the processes that continuously improve operations and involve all
employees. Kaizen sees improvement in productivity as a gradual and
methodical process.
Don’t try to justify the past and the so-called “best practices”, start by
questioning the best practices.
Discard your fixed ideas, always keep your mind open to change.
See waste and problems as an opportunity.
You develop wisdom when faced with hardship.
Maintain a positive attitude.
Do not make excuses and eliminate can't - Think of how to do it, not why
it cannot be done.
Creativity before capital - do not spend money for kaizen, use your
wisdom.
Seek the wisdom of ten people rather than the knowledge of one.
Understand the data and working principles, be data-driven.
Learn by taking action, it’s called validated learning.
Choose a simple solution, not the perfect one.
Do it right away, even if you only aim at the 50 % target.
If you make a mistake, correct it right away.
Kaizen is endless.
Have fun while implementing improvements.
Development of effective supply chain using lean, six sigma, agile and
kaizen philosophy:
Lean supply chain the focus on reducing lead times leads to shorter, simpler
distribution networks and it is a philosophical way of working which
emphasizes the removal of waste within a process. A lean operation is a
flexible system of operation that uses considerably fewer resources (i.e.
activities, people, inventory, and floor space) than a traditional system. Lean
systems tend to achieve greater productivity, lower costs, shorter cycle
times, and higher quality than non-lean systems. This is how the lean
philosophy help to develop supply chain management.