Supply Chain Managmeent 2 Flashcards
What is the reverse supply chain
starts at the citizens home and goes backwards!
why has the reverse supply chain started to reverse?
because of:
a) used products being recycled
b) new products being returned
steps in the reverse supply chain
1) product acquistions
2) reverse logistics
3) testing, sorting, disposition
4) refurbishing
5) remarketing
This has increased because of product returns and recycling of goods.
->THESE HIGH RETURNS ARE IMPACTING OUR ENVIRONMENT, THEY MAY BE FREE TO THE CONSUMER BUT NOT FREE TO THE PLANET
This has increased because of product returns and recycling of goods.
->THESE HIGH RETURNS ARE IMPACTING OUR ENVIRONMENT, THEY MAY BE FREE TO THE CONSUMER BUT NOT FREE TO THE PLANET
Usual product returns:
-fedex comes to drop off a box, fedex delivers that broken item to the supplier, then fedex comes back to deliver the fixed good to us
-NEW SOLUTION:fedex only comes to your house once, driver and the consumer CO-ORDINATE ot meet irl, the consumer puts old in box and takes new one!!
-> there is an org called ISO that is making a certification that will prove a refurbished good is equal to a new good
Usual product returns:
-fedex comes to drop off a box, fedex delivers that broken item to the supplier, then fedex comes back to deliver the fixed good to us
-NEW SOLUTION:fedex only comes to your house once, driver and the consumer CO-ORDINATE ot meet irl, the consumer puts old in box and takes new one!!
-> there is an org called ISO that is making a certification that will prove a refurbished good is equal to a new good
Xerox reverse supply chain
-photocopiers were returned on lease every year
-so they considered product design
-made printers easy to disammeble
-lowered waste per machine, by lowering TYPES OF MATERIAL SIN MACHINE (500 plastic types to 50)
-Now only 2% of returned equipment goes to landfills, saves 100s million
how does the city of calgary use the reverse supply chain
when it comes to recyclicing facitilites
what are optical sosrters
detect objects (colour.material) and they will use blasts of air to separate those objects
EX: grapes
7 aspects of product design elements in the supply chain
1) design for manufacturability
2) shipping and handling considerations
3) eco-design startegy
4) modular design flexibility
5) design to target cost
6) compress the design process (concurrent engineering)
7) formalize for production (BOM & routing)
How can we design a product for manufacturability
DESIGN IT SO IT IS EASY TO MAKE
a) use standard materials and parts of well known quality [not everything has to be new]
b) set tolerances that wont strain the systmem
[dont push system to the limit, not everything has to be 100% perfect for functionality]
c) REDUCE # of distinct components
why is it good to reduce components needed in manufacturing
+ 1 con
having less parts=less purchases need ot be made
staff doesnt have to find specific components
less assembly and cosnistent quality!!!
CON: very hard to repair!!! cuz it is only one piece
what are shipping and handling considerations
the product needs to be designed so it is eeasy to ship and handle
Handling: happens during production/assembly
(there needs to be openings and handles for lifting)
Packaging/Shipping: need to have no wasted space! so things can be as compact as possible!
milk jug crate, shipping and handling considerations
- old had a lot of dead space, that is trying to be fixed by costco
what does the modified milk carton shape do?
- store more milk per cubic foot
-no water is needed for washing containers before reuse
-less trips to get goods to the store
what is an eco design strategy?
has 7 elements
0) product design review
1) low impact materials
2) material use
3) production techhniuqes are considerd
4) distribution system
5) impact during use
6) initial lifetime consideration
7) end of life system
logic behind eco design strategy
design for recycling!! have the longterm
what is modular design flexibiility
Think legos: simple pieces that can easily be combined with a lot of diffeernt other pieces!!
creating products from some combo of basic “modules”
what is the benefit of non modular design? “STANDARD PRODUCTION”
what is the benefit of modular design?
“CUSTOMER SPECIFIC PRODUCTIONS”
set designs, lower inventory, production is efficiceny
-> customization at a reasonable price
modular design, GM and Toyota
GM had 26 seat frames for its cars, Toyota had 2, this saved costs of 500million
Modular deisgn flexibility: honeywell cameras
like build your own camera type shit!!!
How can we design to target cost?
This 5th element is more of a concept than a practical design
->working backwards desgined to target costs, look at the market for an acceptable market price, then subtract the desired margin (the profit you want to have) and then the target cost is found
Finding the cost before the selling price
This works because you find a cost that WILL ACTUALLY SELL!!! You are constrianted to a target cost, and if you can not meet the target cost of the product maybe you hsould not be creating product in the first place
in old economics, how did they determine selling price
in new economics how do they determine targt cost
Cost (established by design) + Desired margin= Selling Price
PRICE MAY OR MAY NOT BE FEASIBLE
NEW ECONOMICS: find selling price as established by market- desired margin= cost of the production that you will target
new economics: design to target cost
Have the selling price in mind, figure out the desired margin you want, and then get the target cost of the production!
How do you compress the design proces?
reduce the time needed to introduce new products!
USE CONCURRENT ENGINEERING! have cross funcitonal teams working together so easy to touch base between mktg, engg, acct, and operations
->If you are the first entrant in a market you will have a longer lifecylce
-> if you are a competitor who enters later chances are you will leave earlier
visual on slide 7.45
How do you formalize for production
when product design is complete, make it into 2 separate things:
1) bill of materials
2) routing
what is bill of materials for a finished product:
ingredients list of the components required
WHAT items to order/pick to make good
what is routing for finished product
the instructions to make the item
PROCESSING INSTRUCTIONS on HOW TO MAKE TH EPRODUCT
this is the recipe
what are new supply chain tech
RFID
3D PRINTING
BLOCK CHAIN
what is RFID
RADIO frequency ID! using a cheap chip tag attached to items that stores info, and allows live tracking!!!
how does rfid impact scma
-improved inventory visiability and accuracy (good for customer service)
-ability to stock a wider variety of products (lower admin cost per item)
Slide Notes: Different technologaies that are out there for supply chain
RFID= radio frequency identificaiton!!!
-> this is an rfid tag that only needs a radio signal instead of having to use a scanning of a barcode
THIS IS AN ALTERNATIVE TO SCANNING ALL ITEMS,RFID USES A TINY SILICONE CHIP AND ATENNA THAT TRANSMITS WIRELESS DATA TO A REMOTE ID
->Why use this: because it cuts time, costs, and manpower! Pallets can be simply passed through a scanner and all of the items in the box can update all the inventory by itself
-> you can also even use a mobile scanner, to scan the items barcodes
-> some businesses have radio coverage in the warehouse or even the parking lot because when the radio waves are sent out they will bounce off of every item
-> tech is still sort of expensive and used further back in the supply chain! Rf technology is used in retail stores on cloth tags
Slide Notes: Different technologaies that are out there for supply chain
RFID= radio frequency identificaiton!!!
-> this is an rfid tag that only needs a radio signal instead of having to use a scanning of a barcode
THIS IS AN ALTERNATIVE TO SCANNING ALL ITEMS,RFID USES A TINY SILICONE CHIP AND ATENNA THAT TRANSMITS WIRELESS DATA TO A REMOTE ID
->Why use this: because it cuts time, costs, and manpower! Pallets can be simply passed through a scanner and all of the items in the box can update all the inventory by itself
-> you can also even use a mobile scanner, to scan the items barcodes
-> some businesses have radio coverage in the warehouse or even the parking lot because when the radio waves are sent out they will bounce off of every item
-> tech is still sort of expensive and used further back in the supply chain! Rf technology is used in retail stores on cloth tags
3D printing
uses additive manufactuiring to build layers up!!!
reduces lead time!! (batch manufcaturing and trasnportation)
reduces transportation costs and carbon footprint (print near where u need it)
5 ways 3D printing impacts SCMA
1) decentralize production
2) drive product customization
3) reduce complexity and improve time to market
4) improve resourec effeciviy
5) rationalize inventory and logistics
Block chain
=no one owns it
= provides all records of transactions to all
= more transpacrncy
block chain pros for scma
= proof of sustianbitliy tracing
=lower admin costs
= food safety recalls can be done fast
blockchain in scma:
1) what is a block representing
2) what are the 5 steps in blockchain
a block contains the data (supplier, shipping, buyer), and has the contract
request, transaction in the peer to peer network, once verfiied then a block is created, the block is added to the chain, once transaction completed ledger updated
4 characteristics of blockchain & importance to oscm
1) distributed and synchronised (this improves transparency and agility)
2) smart contracts (payments made automatically so less error)
3) p2p network (no need for middle man)
4) immutability of data (Forged papers no longer a risk and auditing is easy)
BLOCHCHAIN HAS A HIGH VALUE OF BOTH
AUTOMATION AND TRUST
