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Slide 1Slide 2Slide 3Syllabus continuedSyllabusSyllabusSlide 7Slide 8Reading 1Reading 1 – last articleExamples of SCM effortsSome other examplesDefinitionsMore definitionsAll this means what?There is a problem with all of these definitionsStep backTwo views of value creationWhy move away from the traditional modelWhy SCM ?Why you should care ?Key functions in a supply chainA note on terminologyMore terminologyFor next weekWhat is SCM 1Supply Chain Management•Day 1 agenda•Who Am I•Syllabus•Who are you•getting up to speed / IntroductionWhat is SCM 2Who am I•Mark - casual but professional•Work experience –McJobs / Project Manager = purchasing•NAPM / ISM chapter in Salem – next meeting 4/19/05•Research – SCM is the area I am an “expert” in–There are not many of us in the country / world –Throughout the term my research will be part of class•Teaching –Because this is a new and growing area the information changes. Which means that when I learn new things you will as well. But it also means that the schedule is more like an outline. Things will change.What is SCM 3SyllabusMark Pagell, Ph.D.400E Bexell Hall737-6036541-431-3950 (home in Eugene)[email protected] hours:Tuesday 9-10Thursday – 2-3Otherwise by appointment – the pop-in is unlikely to work outWhat is SCM 4Syllabus continued•Course-pac is required and in the library – VR308•Rules on academic honesty will be strictly enforced•If you have special needs see me ASAP•Slides will be on the web in materials folder (subject to change – we are switching to a new set-up) •2 tests–NOT multiple choice–May be take home?–Can cover anything we cover in class (including readings and guests) –Test 1 25% of grade–Test 2 (final) 30% of gradeWhat is SCM 5Syllabus •Participation is expected – this is an elective course–10% of grade–Get either 0,5 or 10 points based on criteria in syllabus- not going to argue over a single point. –Attendance does not equal participation•Team projects- requires significant work – you will not do this (well) at the last minute–35% of grade–You will be in a group - and you will be held accountable for your behavior in the group–3 parts – 1&2 milestones – 3 final project. Grade is based on final project. Will not be able to wait till last minute to do. –This is a big project that will require input form the entire group as well as serious research - librarianWhat is SCM 6Syllabus•Grades:–A: 90% or above–B: 80-89.5%–C: 70-79.5%–D: 60-69.5%–F < 60%–Will discuss pluses and minuses if you really want them?•Schedule- tentativeWhat is SCM 7Who are you?•Name•Career goal – what do you want to do when you leave OSU?•What you hope to get out of this class•Form groupsWhat is SCM 8Introduction – agenda •Supply Chain Management ?•Traditional views of the value creation process•Non-traditional (but becoming accepted) views of the value creation process•The functions that participate directly in value creation–operations–purchasing–logistics•Note on terminologyWhat is SCM 9Reading 1•First “article”–This is the best advertisement for this class / material–At any given time in business there is one area that is getting the most attention- because it is the area that firms can leverage the most–For most companies the supply chain is the last place left to really gain a competitive advantage•There is a reason for this- it is messy and this is the only article you will ever see with the words sexy and SCM in it.What is SCM 10Reading 1 – last article•Not very well written•Good synopsis of the course – and a good outline for your commodity study–Strategic role of SCM – what business is the organization in ? –Resource acquisition–Building and maintaining relationships–Make verses buy – and the role of SCM even if we do decide to make somethingWhat is SCM 11Examples of SCM efforts•Reading one gives many examples of activities being undertaken to leverage the supply chain•Jeep - this is the state of the art for JIT and SCM in the USA–JIS / 420 trucks a day / modular construction /supplier selection based on previous relationship / •Smart car – also state of the art–Suppliers’ plants hooked into final assembly / hang on body panels -DFM /no paint booths / pay on build•Wal-Mart–Vendorville / partnering mode – working together•Steelmakers and new types of contractsWhat is SCM 12Some other examples•GE jet engines article in 12/30/02 Fortune – see reading 4–Work with customers (mainly Boeing)–Work with suppliers- and have unique incentives – suppliers pay to be revenue sharing partners–Partner with companies who they sometimes compete with•Move to digital film–Easy to make Movies (Blair Witch)–Some argue quality suffers – Speilberg is an example–Is inevitable- because of distribution / logistics –Good example of optimizing the entire chain as opposed to part•Timber harvesting and preparation at WeyerhaeuserWhat is SCM 13Definitions •“The process of planning and controlling the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption” (CLM)•“… the planning and control of all factors that will have an impact on getting the correct product where it is needed, on time and at the optimal cost” (Daskin)What is SCM 14More definitions •The supply chain encompasses all activities associated with the flow and transformation of goods from the raw materials stage, through to the end user, as well as the associated information flows. Material and information flow both up and down the supply chain.•Supply Chain Management is the integration of these activities through improved supply chain relationships, to achieve a sustainable competitive advantage.(Handfield and Nichols)What is SCM 15All this means what?•In general many organizations are needed to create value for a customer•In almost all of these organizations many functions create value for the customer–Reading one gave examples of these activities•Managing each function within each organization separately is not likely to optimize the value of the good or service the customer receives.–Bullwhips–HR at Boeing WichitaWhat is SCM 16There is a problem with all of these definitions•All assume goods production•Is this a valid assumption?•If not why do you think the


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OSU BA 457 - Supply Chain Management

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