PRODUCTION SYSTEM Lesson 2 • System - An arrangement or assembly of inter-

Production is an organized operation all methods dependent processes (activities) that are based
of production have a purpose. The machine converts onsome logic and function
the various inputs into functional outputs. It is not
operating in isolation from the other form of • PRODUCTION SYSTEM
organization. Feedback on the activities exists, which - Inputs
is important for monitoring and improving device - Conversion process
efficiency. - Output
- Examples: Tangible goods
Production Management Intangible goods
Involves planning, organizing and controlling of
the whole production process. The interrelation of Designing Workspaces to Meet Demand
these activities and operations involved in producing - Factories and other locations where assembly
the goods and the services. happens must be organized in a rational and efficient
way to increase production. Factories may be
PRODUCTION MODEL designed for maximum efficiency of one product.
Presents a set of resources used to describe a
product as a collection of components and the Distribution
processes applied to those components. - Transportation over land, water and air is
essential for getting goods to the market.
TWO PROTOTYPICAL CONTROL PROBLEMS
• DEMAND TRACKING CLASSICATION OF PRODUCTION SYSTEM
- Where we determine the start rate that JOB-SHOP PRODUCTION
generates an output rate which optimally tracks a - This characterized by manufacturing of one or
given the independent and dependent demand rate. few quantities of products designed andproduced as
• BACKLOG TRACKING per the specification of customers within prefixed
- Which optimally tracks the culmulative demand. time and cost.

Meaning of Production System Characteristics:

- Methods and procedures used to produce goods 1.High variety of products and low volume.
for the market. It utilized material 2. Use of general-purpose machines and facilities.
capital,transportation and labor resources to produce 3. Highly skilled operators who can take up each job
required output in form goods and distribute as a challenge because ofuniqueness.
products. 4. Large inventory of materials, tools, parts.
• ALLOCATING RESOURCES - Bringing in material and 5. Detailed planning is essential for sequencing the
equipment is an important step in production system. requirements of each product,capacities for each work
• DIVISION LABOR - It is how workers and their skills center and order priorities
are utilized assembly line methods simplifying a Advantages:
worker’s skills to limited tasks to increase productivity. 1.Because of general purpose machines and facilities
variety of products can be produced.
PRODUCTION SYSTEM DESIGN 2. Operators will become more skilled and
• Production - An act of either manufacturing or competent, as each job gives them learning
mining or growing of goods (commodities) generally in opportunities.
bulk for trade. 3. Full potential of operators can be utilized.
4. Opportunity exists for creative methods and
innovative ideas

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Limitations: Characteristics:
1. Higher cost due to frequent set up changes 1. Standardization of product and process sequence.
2. Higher level of inventory at all levels and hence 2. Dedicated special purpose machines having higher
higher inventory cost. production capacities and outputrates.
3. Production planning is complicated. 3. Large volume of products.
4. Larger space requirements 4. Shorter cycle time of production.
5. Lower in process inventory.
BATCH PRODUCTION 6. Perfectly balanced production lines.
- It is defined by American Production and 7. Flow of materials, components and parts is
Inventory Control Society (APICS) “as a form of continuous and without any back tracking.
manufacturing in which the job passes through the Advantages:
functional departments in lots or batches and each lot 1. Higher rate of production with reduced cycle time.
may have a different routing 2. Higher capacity utilization due to line balancing.
3. Less skilled operators are required
Characteristics: 4. Low process inventory.
1. When there are shorter production runs. 5. Manufacturing cost per unit is low
2. When plant and machinery are flexible. Limitations:
3. When plant and machinery set up is used for the 1. Breakdown of one machine will stop an entire
production of item in a batch andchange of set up is production line.
required for processing the next batch. 2. Line layout needs major change with the changes
4. When manufacturing lead time and cost are lower in theproduct design.
as compared to job orderproduction. 3. High investment in production facilities.
Advantages: 4. The cycle time is determined by the slowest
1. Better utilization of plant and machinery. operation
2. Promotes functional specialization.
3. Cost per unit is lower as compared to job order CONTINOUS PRODUCTION
production. - Production facilities are arranged as per the
4. Lower investment in plant and machinery. sequence of production operations from the first
5. Flexibility to accommodate and process number of operations to the finished product. The items are
products. made to flow through the sequence ofoperations
6. Job satisfaction exists for operators. through material handling devices such as conveyors,
Limitations: transfer devices, etc.
1. Material handling is complex because of irregular
and longer flows. Characteristics:
2. Production planning and control is complex. 1. Dedicated plant and equipment with zero
3. Work in process inventory is higher compared to flexibility.
continuous production. 2. Material handling is fully automated.
4. Higher set up costs due to frequent 3. Process follows a predetermined sequence of
changes in set up. operations.
4. Component materials cannot be readily identified
MASS PRODUCTION with final product.
- Manufacture of discrete parts or assemblies 5. Planning and scheduling is a routine action.
using a continuous process are called massproduction. Advantages:
This production system is justified by very large 1. Standardization of product and process sequence.
volume of production. 2. Higher rate of production with reduced cycle time.
3. Higher capacity utilization due to line balancing.

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 4. Manpower is not required for material handling as 3. Finite Capacity Planning
it is completely automatic. - a production planning method that assumes
5. Person with limited skills can be used on the available capacity is a definite constant, thereby
production line. identifying the actual capacity limits of your
6. Unit cost is lower due to high volume of production facility.
production.
Limitations: 4. Infinite Capacity Planning
1. Flexibility to accommodate and process number of - a method of planning production that leave
products does not exist. orders on the existing dates and shows whether the
2. Very high investment for setting flow lines. load on a resource is over or under its defined
3. Product differentiation is limited. capacity, without recommending changes.

Characteristics of Production System 4 TYPES OF CAPACITY PLANNING TECHNIQUES

• Stratum Formulation • Capacity Planning using Overall Factors
• Interrelationship Among System - it is a C2 software system that allows
• Specialization of Function commanders to maintain top sight over thebattlefield;
• Isofinality collaborate with superior, peers and subordinates over
• Increase of Entropy live data; andcommunication their intent.
• Capacity Bills
Scope of Production System - this technique takes Bill of Material used and
• Product parts produce, work center setup andactual run times
• Service and computes capacity by multiplying the number of
• Project units required by thetime needed to produce each.
• Resource Profiles
- this method is one of the techniques that can be
used for a company’s resource requirements planning.
Includes the time-phased profile of the capacity
requirements foreach end item.
CAPACITY PLANNING Lesson 3 • Capacity Requirements
- It is the procedure used to conclude how much - The process of determining the production
capacity is needed to construct greater product or capacity needed by an organization tomeet changing
begin product. The method is needed to achieve demands for its products. In the context of capacity
maximum firm performance. planning, design capacityis the maximum mount of
work that an organization is capable of completing in a
4 TYPES OF CAPACITY PLANNING given period.
1. Long Term Capacity Planning
- is the process of ensuring that sufficient MASTER PRODUCTION SCHEDULING
production resources are available to meet an - The process of master production scheduling
organization's long range production needs. involves the planning of activities to determine
whether or not an operation can achieve the
2. Short Term Capacity Planning production objectives mentioned in the MPS. Material
- concerns issues of scheduling, labor shifts, Requirements Planning (MRP) and Capacity
balancing resource capacities. It's goal is to handle Requirements Planning (CRP) are the two planning
unexpected shift demands in an ancient economic activities that are a part of the master production
manner. scheduling process.

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 Infinite Loading- schedules work ignoring the capacity
Aggregate Planning limits.
- it is a process of developing, analyzing and Finite Loading- schedules work up to fixed amount of
maintaining a preliminary, approximate schedule of capacity.
the overall operations of an organization. Load Chart- displays the loading and idle times for
machines or departments
Aggregate Plan Schedule Chart- is used to monitor job progress
- contains targeted sales forecast, production
levels, inventory levels and customer backlogs. Is an Priority rules or heuristics that can be used to select
attempt to balance capacity and demand in such a the order of jobs waiting for processing:
way that cost is minimized. • Random (R)
Steps taken to produce and aggregate plan: • First Come/First Served (FC/FS)
• Determinant of demand • Shortest Processing Time (SPT)
• Determinant of current capacity • Earliest Due Date (EDD)
• Critical Ratio (CR)
AGGREGATE PLANNING STRATEGIES • Least Work Remaining (LWR)
Level Strategy- seeks an aggregate plan that maintains • Fewest Operations Remaining (FOR)
a steady production rate and employment level. • Slack Time (ST)
• Slack Time per Operation (ST/O)
Chase Strategy- referred to as demand matching • Next Queue (NQ)
because the strategy varies production to meet • Least Setup (LSU)
demand.
DETERMINATION OF EQUIPMENT REQUIREMENTS
TECHNIQUES FOR AGGREGATE PLANNING 1. Equipment Selection- identifying suitable
INFORMAL TRIAL AND ERROR TECHNIQUES equipments for production.
- is a method of reaching correct solution or 2. Batch Production - produces multiple units in a
satisfactory result by trying out various means or series.
theories until error is sufficiently reduced or 3. Mass Production - produces a larger-sized
eliminates. products at a time.
Mathematical Techniques- symbol used in all
branches of mathematics a formula or to represent a Determination of Capacity
constant. A mathematical concept is independent of • They have a long-term impact.
the symbol chosen to represent it. • Capacity determines the selection of appropriate
P – Product technology, type of labor andequipments, etc.
T – Time • Right capacity ensures commercial viability of the
OT – Over Time business ventures.
X - Female • Capacity influences the competitiveness of a firm.

Operations Scheduling- establishing time and MEASURING CAPACITY

resources. • An estimate of demand for each period in the
Forward Scheduling- manufacturing items as soon as planning horizon, expressed by the number of
possible before the due date. acceptable or good or conforming units needed per
Backward Scheduling- make their items available at period, and obtained from a detailed demand
the last possible available period before the due date. forecast.
Loading- assigning jobs to work centers and various • An estimate of processing time for the work
machines. station where the equipment willbe used

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 PURCHASING DEPARTMENTS
Usually obtained by one of the work measurement - also called procurement department buys
methods: materials based on the purchase requisition from user
Let the following: departments and store departments and annual
P - Production rate of work station in units of output production plan.
T - Processing time per unit in minutes - Support operations by serving as the primary
D - Duration of the period in hours buyer of goods and services in a private sector
(For three shift, D =8; D=16; and D=24) company, government agency, educational institution
E - Efficiency of equipment expressed as 5% of running or another type of organization.
time per period
N - Number of machines required by work station MATERIAL PLANNING
- is a scientific technique of determining in
The requirements base formula is: N = TP/60 DE advance the requirement of raw materials, ancillary
parts and components, spares etc. ad directed by the
production program.

It is the overall planning activity Material planning is

concerned with answering three basic questions :
● What materials are required?
● How many are required?
● When are they Ready?
MATERIAL MANAGEMENT Lesson 4
- is a total concept having its definite organization FOUR BASIC PURCHASING ACTIVITIES
to plan and control all types of materials, its supply, 1. Selecting suppliers
and its flow from raw stage to finish stage. 2. Expediting delivery from suppliers
- it can be defined as the function of the business 3. Acting as a liaison between suppliers and
that is responsible for coordination of planning, other company department
sourcing, purchasing, moving and storing materials. 4. Looking for new product, materials and
suppliers that can contribute to company
SCOPE OF MATERIAL MANAGEMENT objectivenes
-Material management strives to ensure that the
material cost component of the total cost Be the least. PURCHASE SYSTEM
• Forward buying- retailers purchase units during a
In order to achieve this, the control is exercised in the particular period
following fields: • Tender Buying- invites bids for a project accept a
● Materials Planning formal offer.
● Purchasing • Blanket Order System- a purchase order the
● Store Keeping campus end user makes with its supplier
● Inventory Control that contains multiple delivery dates over a period of
● Receiving, Inspection and Dispatching time, negotiated to take
● Value Analysis, Standardization and Variety advantage of predetermined pricing.
Reduction • Zero Stock- no on hand inventory
● Materials Handling and Traffic • Rate Contract or rate of agreement- is
● Disposal of Scrap and Surplus, Material procurement cost reduction strategy aimed at
Preservation standardizing procurement prices for commonly
procured, homogenous and price varying inputs.

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 • Reciprocity- practice of exchanging things with markets for more environmentally responsible
business to other business for mutual products Strengthening and expansion of both local
benefits and national economies.
• System Contract- are exclusive contracts with
designated suppliers for specific commodities of COMPREHENSIVE WASTE STREAM ANALYSIS-
goods or services, with pricing and others agreement methods used to determine the types of materials
• Stock level- production parts and materials are being dispatched in a waste stream and in what
checked against blueprints and specifications. proportion.
• Cost- material handling section is responsible for
the transport of materials to various departments. 1.SELECTION OF SUPPLIERS
● Specialized trade directories
FIVE BASIC TRAFFIC ACTIVITIES ● Assistance of professional bodies or
• Selecting common or charter carriers and routing consultant
for dispatch/shipments as required ● Buyer’s guide or purchase handbook
• Tracing in-bound shipments of materials Tracing ● Manufacturers or distributors’ catalogue
inbound shipments of materials ● Advertisements in dailies
• Auditing invoices from carriers and filing claims for ● Advertisements in specialized trade journals
refunds or excess charges or for damage shipments ● Trade fair exhibitions
when required 2.DEVELOPMENT OF APPROVED LIST OF SUPPLIERS
• Developing techniques to reduce transportation 3.EVALUATION AND SELECTION OF SUPPLIERS
cost 4.COST FACTORS
• Packaging of finished products, labeling, and 5.DELIVERY
loading of end product in the trades. Finally, the -LEADTIME -RELIABILITY
disposal of scraps and surplus must be done -SHIPPING OPTIONS -FREQUENCY
periodically to release the capital locked in those -PACKAGING AND HANDLING -LOCATION
items
HUMAN ENGINEERING
NONPRODUCTION STORES Also known as Ergonomics:
● Maintains physical stocks of non-production - The study of the man in relation to work.
items to be drawn on as needed for operations - Is concerned with man-machine system.
or maintenance. Physical ergonomics: This involves the design of
● Manages inventories of non-production physical systems and products to
materials and prepares purchase requisition for optimize human comfort and safety.
needed materials when stocks from to the reorder Cognitive ergonomics: This involves the design of
point. systems and products to optimize
● Keeps record and maintains control Organizational ergonomics: This involves the design of
work systems and processes
INTEGRATED WASTE MANAGEMENT- Its goal is to Environmental ergonomics: This involves the design of
divert as much solid waste as possible, and to environments to optimize,
minimize other methods such as incineration that OBJECTIVES OF ERGONOMICS
harm the environment. 1. To enhance the efficiency and effectiveness with
BENEFITS OF INTEGRATED WASTE MANAGEMENT: which the activities are carried out to
• Benefits of integrated waste Management increase the convenience of use, reduce errors and
Conservation of energy and natural resources, increase productivity.
reduction of greenhouse gas emissions and reduction 2. To enhance certain desirable human values
in landfills and incineration disposal. Growing the

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CONFIDICATION
It is a process of representing each item by a STORE MANAGEMENT
number, the digit of which indicated the group, Functions of Store:
the sub-group, and the dimension of the items. ➢ To receive raw materials, components, tools, equipment
OBJECTIVES OF CONFIDICATION and other items and
account for them.
Bringing all the items together.
➢ To provide adequate and proper storage and
- Enable putting up of any future item in its proper
preservation to the various items.
place.
➢ To meet the demands of the consuming departments by
- Classify an item according to its characteristics. proper issues and account
- Give a unique code number to each item to avoid for the consumption.
duplication and ambiguity. ➢ To minimize obsolescence, surplus, and scrap through
- Reveal excessive variety and promote proper codification,
standardization and variety reduction. preservation, and handling.
- Establish common language for the identification of ➢ To highlight stock accumulation, discrepancies, and
the items. abnormal consumption and
effective control measures.
- Fix essential parameters for specifying an item.
➢ To ensure good housekeeping so that material handling,
- Specify items as per national and international
preservation, stocking,
standards.
receipt and issue can be done adequately.
- Enable data processing analysis. ➢ To assist in verification and provide supporting
information for effective purchase
VALUE ANALYSIS action
- An organized creative approach which has its
objective, the efficient identification of unnecessary
cost which provides neither quality nor use nor life
nor appearance nor customer features.
- Value analysis focuses engineering,
manufacturing and purchasing attention to one
objective-equivalent performance at a lower cost.
- Value analysis is concerned with the costs added
due to inefficient or unnecessary specifications and
features. Value is not inherent in a product, it is a
relative term, and value can change with time and
place.

VALUE ANALYSIS FRAMEWORK

What is the item?
What does it do?
What does it cost?
What else would do the job?
What would the alternative cost be?

STEPS IN VALUE ANALYSIS

Identifying the Function
Evaluation of the Function by Comparison
Develop Alternatives
Brain Storming sessions

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WORK MEASUREMENT Lesson 8
- series of techniques employed to evaluate the
time needed for completion of a task. Also called time Use of Work Measurement
study. - To compare the efficiency of alternative
methods. Other conditions being equal, the method
STANDARD TIME which takes the least time will be the best method.
- It is the time required by qualified and
well-trained person working at a normal time pace, to Normal Time
do a specified task. - It is the expected time required to perform some
work activity at normal pace, under normal operating
WORK MEASUREMENT AND STANDARD TIME conditions, and using a prescribed method
- Work measurement is often also called time study.
- Work measurement largely concerned with human Normal Time are calculated using:
work output Normal time
- Time study considers any automated work output = observed time x performance rating factor
= OT x PRF
Work Measurement Techniques
- Direct time study predetermined motion time Performance rating factor (PRF) is an adjustment by
system standard data systemwork sampling time study the person doing the time study as to whether the
or work measurement has several important uses. employee is working at the normal pace (1.0 or 100%)
- It helps in the determination of schedules and
the planning of work. It can aid in determining Example: a PRF of 115% indicates that work is being
standards cost. performed at a pace that 15% above normal. Typically,
three or more highly trained work study analysts make
Purpose of Work Measurement these judgments independently and then the average
- To reveal the nature and extent of ineffective PRF is used in equation.
time, from whatever cause so that action can be taken
to eliminate. For example, if work study analyst A rates an
- To set standards of performance that are employee
attainable only if all avoidable ineffective time is
eliminated and work is performed by the best method For example, if work study analyst: rates the employee
available of the following:
A: Employee = 1.2 and an observed time of 2.5 min
Work Measurement leads to the development of labor per unit
and equipment time standard that are used for: B: Employee = 1.0 and an observed time of 2.2 min
• Estimating work-force and equipment capacity per unit
• Establishing budgets C: Employee = 0.9 and an observed time of 2.1 min
• Determining what new work procedure will cost per unit
• Evaluating time and cost trade-offs among process
design alternatives Normal time is 2.363 minutes per unit
• Establishing wage-incentive system NT= (1.2x2.5+1.0x2.2+0.9x2.1) / 3
• Monitoring and evaluating employee performance (3 + 2.2 + 1.89) /3
and productivity 7.09 / 3
• Providing accurate information for scheduling and NT= 2.363333
sequencing

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Normal Time - To determine, in association with man and
1. Must be also be adjusted for personal time and machine multiple activity charts, the number of
unavoidable delays. machines an workers can run.
2. Allowance includes time for labor fatigue and
personal needs, equipment breakdown, rest periods,
information delays, and so on. APPLICATION
3. Most allowance factors are in the range of 10 to - Standard time for operation in industry are useful
20% for several application
4. Standard time is normal time adjusted for ESTIMATING
allowances. - Material machinery and equipment
- Production cost per unit as an input
Standard Time Preparation of budgets
• is the time allowed to an operator to carry out the Determination of selling price
specified task under specified conditions and defined Make or buy decision
level of performance. - Man-power requirements
• the various allowances ared added to the normal - Delivery schedules
time as applicable to get the stadard time “ - Balancing the work of operators working
Components standard time” - Performance of workers

Standard time computation: WORK MEASUREMENT TECHNIQUES WORK UNDER:

Standard Time = normal time (1 + allowance factor) Repetitive– element of operation will repeat many
times during the study
Example: If the normal is 2.363 Non-repetitive type- work cycle is hardly repeated.
Allowance factor of 1.2 is used Ex: Maintenance work & construction work
Standard time is 2.863 minutes per unit
=2.363(1+1.2) Methods of Work Measurement
=2.363(2.2) • Stop watch time study
ST = 5.1986 • Predetermined motion study time study (PMTS)
• Analytical estimating
The performance rating factor and allowance • Comparative estimating
factor are based on human judgments, and therefore, • Time study
the procedure for establishing standard times must • Activity sampling; and rated activity sampling
include audits, third-party reviews, and extensive • Synthesis from standard data
training and retraining of work-study analysts to keep
them properly calibrated. Videotapes of employee TIME STUDY
work activities are often used to train work-study · Worker Factor
analysts. · Allowances and time standard
· Time study equipment
Uses of Work Management Time device
- To compare the efficiency of alternative Time study observation sheet
methods. Other conditions being equal, the method Time study observation board
which takes the least time will be the best method. Other equipment
- To balance the work of members of teams, in Time study procedure
association with the multiple activity charts, so that, · Term and definition
as far as possible, each member has tasks taking an Normal performance
equal time. Performance rating

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 System rating Information- the technology for collecting and
Pace rating sharing information become more widespread, easier
Westinghouse system of rating to use, and less expensive.
Objective rating
Synthetic rating Benefits of SCM
· Issues with time study • Improve business performance
Advantages and disadvantages • Improve system capability
• Improve supply chain effectiveness
Work Sampling • Improve channel management and
- It is a highly efficient system through which, communication
needed information can be obtained in less time, and • Supply chain integration
at a lower cost, compared to other methods of work • Supply chain Information Sharing and Visibility
measurement. • Improved supply chain partnerships
• Sampling procedure: • Improved productivity
Number of observations
Based on judgment ELEMENTS OF SCM
Using cumulative plot of result ● Sales and Operations planning
Use of statistics ● Collaborative Planning, Fulfillment And
• Activity sampling Replenishment
Fixed and random interval sampling ● Concurrent Engineering
Confidence levels ● Extended ERP
Standard time determination ● Integrated Supply Planning
• Sampling and confidence intervals
• Random observations Sales and Operations Planning Process
Advantages of work sampling and 1. Data gathering
disadvantages of work sampling 2. Demand planning
3. Production (supply) planning
4. Reconciliation
What is Supply Chain Management or SCM? Lesson 9 5. Executive meeting
- SUPPLY CHAIN MANAGEMENT IS THE
MANAGEMENT OF THE FLOW OF GOODS AND
SERVICES

What exactly SCM needs?

- Supply chains encompasses the companies and
the business activities needed to design, make,
deliver, and use a product or services.

Production- very responsive by building factories

that have a lot of excess capacity and that use flexible
manufacturing techniques to produce a wide range of COLLABORATIVE PLANNING, FULFILLMENT AND
items. REPLENISHMENT
Inventory -by stocking high levels of inventory for a The VICS committee, who have originally defined
wide range of products. CPFR and consist of leading retailers, manufacturers
Location -physically close to its customer and solution providers, defines it as business practice
Transportation -mode that fast and flexible wherein trading partners use Information Technology
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(IT) and a standard set of business procedures to Logistic Viewpoints
combine their intelligence in the planning and • Inbound
fulfillment of customer demand. • Outbound
Retail event collaboration
DC replenishment collaboration Logistic Fields
Store replenishment collaboration • Procurement
• Production
COLLABORATIVE ASSORTMENT PLANNING • Distribution
– IS APPLICABLE FOR INDUSTRIES WHERE • After Sales
PRODUCT LIFECYCLE IS SHORT AND DEMAND PATTERN • Disposal
FOLLOW A SEASONS RHYTHM SUCH FASHION
APPAREL AND ACCESSORIES. Outsourcing Logistics
• Third Party
CONCURRENT ENGINEERING • Fourth Party
Product design and development is one of the • Emergency
most effective tools for an organization to
differentiate itself from its competitors.
APICS – defines concurrent engineering as “ a
concept that refers to the participation of all the
functional areas of the firm the product design activity
including the suppliers and customer with the intent
to enhances the design with the inputs of all the key
stakeholders so that a product can be quickly brought
to the marketplace while maximizing quality and
minimizing costs.

ELECTRONIC DATA INTERCHANGE (EDI)

- Is electronic transfer of a standardized business
transaction between a sender and receiver computer,
over some kind of private network or value added
network (VAN).

Integrated Supply Planning

Supplier rationalization – firm may have more
suppliers that it may actually needs.
Vendors Managed Inventory –where inventory is
managed by the vendor instead of the consuming
party

SUPPLY CHAIN MANAGEMENT: LOGISTICS

Transportation, Distribution & Logistics

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E-COMMERCE
- Electronics commerce is sharing information,
maintaining business relationship and conducting
business by means of telecommunications networks.

Key supply chain activities:

• Production planning
• Purchasing
• Materials Management
• Distribution
• Customer service
• Sales forecasting
• E-commerce impact supply chain management in
variety of keyways

These are includes:

• Cost efficiency
• Changes in the distribution system
• Customer orientation
• Shipment tracking
• Shipping notice
• Freight auditing
• Shipping documentation and Labeling
• Online shipping inquiry

REQUIREMENT FOR SUPPLY CHAIN MANAGEMENT

• Challenge of managing global supply chains
• Outsourcing creates supply chain visibility
challenges
• Going beyond supply chain visibility to rapid
response
• High value solutions for supply chain management
• IT service are stretched, but operation
performance goals are as important as ever
• Supply chain management tools meet software as
a service
• On-demand service production optimize value
from the data center
• High value solution combined with improvement
driven service drive real value
• Steps to optimizing supply chain management

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