UT Knoxville BUAD 331 - Chapter 6 (9 pages)

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Chapter 6



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Chapter 6

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Pages:
9
School:
University of Tennessee
Course:
Buad 331 - CBM I: Supply Chain Mgt
CBM I: Supply Chain Mgt Documents

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BA331 Supply Chain Management Chapter 6 Shay Scott Ph D Department of Marketing and SCM Managing Director Global Supply Chain Institute University of Tennessee sdscott utk edu Drivers of Time Based Competition Time Money 1 Shortening product and service life cycles 2 Customers drive for reduced inventories 3 Volatile markets make forecasting dangerous Examples Cars Televisions Cell phones Style of Clothing New Club Restaurant Stages of the Product Life Cycle PLC Introductory Stage Growth Stage Maturity Stage Decline Stage Dollars Sales AGILE AGILE LEAN Profits 0 Time LEAN Pipeline Management Value added time VAT total cycle time product is actually worked on usually expressed as a Provides Form Place or Time Utility Often as little as 5 of the total time Non value added time NVAT total cycle time product may spend waiting being moved being inspected or being counted Does not Provide Form Place or Time Utility The goal of Pipeline Management is to reduce the length of the pipeline and or speed up the flow through the pipeline Value Added 5 Causes of Non Value Added Time NVAT is often the result of firms own self inflicted rules such as Economic batch quantities Economic order quantities Minimum order sizes Fixed inventory review periods Production planning cycles Forecasting review periods Question for every activity in a supply chain Does this activity add value for the customer or does it simply add cost EVERYTHING must relate back to creating customer value Reducing NVAT 7 Responsiveness vs Reliability Speed defined as Responsiveness is not the only thing that is important in supply chain management The consistency of that speed is also important This is called Reliability Lead Time Discussion Given the data below regarding the order cycle time from one of Mast s major suppliers discuss the major areas that you would target to reduce lead time to 10 days 1 Order Prep Transmittal 2 Order Receipt Entry 1 2 3 4 5 6 6 TWDS receiving 3 Order Processing 5 Order shipped



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