Friday, May 6, 2022

Supply Chain Industrial Engineering - Concept and Bibliography


Supply chain (SC) extends from suppliers to the ultimate customer. Supply chain fulfills the order given by the customer. So we can visualize marketing activity and sales activity that gets the customer order. Once the order is received by the organization, supply chain management (SCM) activity takes over and fulfills the order, that is delivers the product or the service and collects the payment. If a return is there, SCM has to take care of that also. 

In practice, the supply chain, that is focus of a company starts from the level of suppliers the company would like to include. Some company may include tier 2 suppliers, suppliers supplying to immediate suppliers or tier 1 suppliers. The ultimate customer who buys for personal use is included in the supply chain by definition.

What are the tasks of supply chain management. Production, inspection, transport, storage, after sales service, maintenance of equipment and facilities, production planning and control, production design, process design etc. fall under supply chain management. In a way, supply chain management is extension of works management, the earlier concept that used to include supply side management also. 

Industrial engineering is an engineering based discipline to take care of efficiency of systems. When efficiency increases, increased production of specified effectiveness or quality or customer satisfaction takes place. Hence when system efficiency increases, total effectiveness of the system goes up. Supply chain management offers scope to industrial engineers to go to supplier plants and offer IE expertise and support in the supplier development task. The two important performance dimensions of supply chain are responsiveness and efficiency. Industrial engineers focus on efficiency. As supply chain designers change engineering configurations to increase responsiveness, industrial engineers follow them to incrementally modify the configuration to increase efficiency while maintaining responsiveness for each unit supplied.

The follow three activities are relevant to include in this context.

Process Design & Reengineering

Process design is the original design. Supply chain has original design to provide required responsiveness and attainable efficiency. Reengineering is the fundamental rethinking and radical redesign of processes to improve performance dramatically in terms of cost, quality, service, and speed based on developments in science, technology or process management. Process reengineering is about engineering redesign and is done undertaken as a major project. It would normally involve substantial capital investment as number of new facilities including machines and equipment are acquired. It is normally undertaken by the facilities engineering and process engineering (process planning) department.

Process Analysis
Process analysis leads to process improvement. To analyze the process, documentation of the process needs to be done of the working of the existing process as taking place in the shop now. This activity of recording and analyzing existing processes is the main task undertaken by industrial engineers. It is incremental improvement of the process at planned periods to capture new developments in engineering and creative ideas to apply the existing knowledge to processes inside the company. In this exercise effort is made to involve many in the company by circulating existing process charts.  Examining  the strategic issues also can help identify opportunities for improvement apart from operational issues. A gap analysis can be done between a process’s competitive priorities and its current competitive capability requirements.

In engineering and manufacturing process, industrial engineers carry out process improvement to improve productivity. Process improvement is based on the systematic study of the activities and flows of each process to improve it. Productivity science, engineering and management activities are involved in process productivity improvement. Supply chain industrial engineering is process study and analysis in the area of supply chain management.

Process Improvement Based on Operator/Supervisor/Engineer Suggestions and Shop-floor Based Improvements
Process improvement is based on the   understanding of  the process, and digging out the details. Hence frontline operators have significant ideas to contribute to process improvement. Through seeking their suggestions, process improvement is made a continuous process and incremental improvements at small and micro level keep taking place. In Toyota Motors, Ohno gave responsibility to shop floor personnel also for process improvement apart from process planning and industrial engineering.
https://nraomtr.blogspot.com/2019/08/process-strategy-and-analysis-important.html



Supply chain industrial engineering can be done by industrial engineers from IE department or by being posted in supply chain departments. Supply chain industrial engineering can be part of supplier development activity.


Productivity and Efficiency Improvement in Supply Chain Partner activities is practiced by Toyota Motors.


Toyota Style Industrial Engineering - Waste Elimination - Ohno

"We have eliminated waste by examining available resources, rearranging machines, improving machining processes, installing autonomous systems, improving tools, analyzing transportation methods and optimizing the materials at hand for manufacturing. High production efficiency has also been maintained by preventing the recurrence of defective products, operational mistakes, and accidents, and by incorporating workers' ideas." Taiichi Ohno (P. 21)
https://nraoiekc.blogspot.com/2013/11/taiichi-ohno-on-industrial-engineering.html

For detailed treatment of process industrial engineering applicable to internal manufacturing facilities and supply chain partners' manufacturing facilities go through lessons of:

Process Industrial Engineering FREE ONLINE Course. 

https://nraoiekc.blogspot.com/2020/06/process-industrial-engineering-free.html

Implement Toyota Style Industrial Engineering in Supply Chain


2021

Supply Chain Costing and Performance Management

Gary Cokins, Terry Pohlen, Tom Klammer
John Wiley & Sons, 22-Jun-2021 - Business & Economics - 272 pages

A “how-to” guide for supply chain professionals who need accurate cost information for end-to-end processes

With the increasing pace of globalization, supply chain professionals find that they have less and less margin for error in their decisions making. Competition is getting more intense, and, unfortunately, CFOs and accountants do not currently provide supply chain managers with the information required to make better decisions. Supply Chain Costing and Performance Management, 2nd Edition, will show you (and the executives you report to) how to understand and apply various enterprise and corporate performance management (EPM/CPM) methods related to costs and profit margins and performance measurements.

This book is a “how-to” guide to assist supply chain managers and employee teams to obtain interenterprise cost information on supply chain processes. It provides techniques for obtaining accurate cost and performance information on the activities performed within your firm and on activities performed by trading partners. The techniques and approaches in this book were developed from supply chain costing practices implemented by leading-edge firms. You will learn how you can gain access to reasonably accurate costs and profit margins involved with suppliers, products, stock keeping units (SKUs), service-lines, channels, and customers. In addition, you will gain insight into the activity costs in end-to-end business processes, including the “drivers” for each type of cost.

Learn how to access accurate cost and pricing information related to both your company and your trading partners
Overcome siloed information by creating your own costing practices using proven methods drawn from leading firms
Understand what drives activity costs for each step in end-to-end business processes
Assess the performance of your costing activities with step-by-step measurement guidelines
Make better decisions and improve performance and profitability with clearer, more transparent cost and price data
The information in this book will empower supply chain managers with the ability to make better decisions and improve their organizations’ performance and profitability.

2020


Chapter 9. Supplier Management and Development: Creating a World-Class Supply Base

in Purchasing & Supply Chain Management, 7th Edition
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Cengage Learning, 2020

2nd Edition Link

8 November 2020



SUPPLIER MANAGEMENT–BENEFITS, PROCESS, & BEST PRACTICES
By Jijnyasa Patowarya In Supplier Management Dec 13th, 2018



Research Article | Open Access
Volume 2016 |Article ID 8641702 | https://doi.org/10.1155/2016/8641702
Strategy for Improving Efficiency of Supply Chain Quality Management in Buyer-Supplier Dyads: The Suppliers’ Perspective
Hyun Jung Kim,1 Jiyoon Son,2 and Soo Wook Kim2
Mathematical Problems in Engineering / 2016

Supplier quality improvement: The value of information under uncertainty
John Quigley Lesley Walls Güven Demirel Bart L.MacCarthy Mahdi Parsa
European Journal of Operational Research
Volume 264, Issue 3, 1 February 2018, Pages 932-947

3 Supplier Management Strategies That Drive Results

Research and Practical Issues of Enterprise Information Systems II pp 717-726| 
A Model of Lean Supplier Management Based on the Lean Production

Improve Vendor Quality Control
By F. Curtis Barry & Company

Managing Supplier Involvement in Process Improvement in Manufacturing
Michael A. McGinnis  Rafeekh Mele Vallopra
Journal of Supply Chain Management, Volume 37, Issue 2, June 2001, Pages 48-53
First published: 05 April 2006 https://doi.org/10.1111/j.1745-493X.2001.tb00105.x

Open access peer-reviewed chapter
Supply Chain Quality Management
By Lynn A. Fish
Published: August 1st 2011
DOI: 10.5772/19973

Vendor and Clients: Integrating Process Improvement Efforts across Both Sides of a Strategic Partner Relationship (Part 1)
James Thompson
10/27/2009

Supplier Development - A Strategy for Improvement
Purchasing and Supply Chain Management
2015
By Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Supplier quality development: A review of literature and industry practices
Khosrow Noshad & Anjali Awasthi
International Journal of Production Research 
Volume 53, 2015 - Issue 2
Pages 466-487



5 September 2020






2019

What makes a Supply Chain leader?

These organizations prioritize their value chains, ensuring that the supply chain and its related functions are fully integrated with organizational strategy.

A focus on the customer

Visibility through networks of suppliers and partners

Effectiveness and Efficiency (Sustainable) practices in design, manufacturing and delivery.
https://www.sap.com/cmp/dg/supply-chain-leaders/index.html

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 13 June 2019
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SAP Design Module
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SAP Design Module Playlist
https://www.youtube.com/watch?v=_I0MnfCMkbQ&list=PL00ZizFAuhWshhrvZfOdlnPe0H_BMXieB
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Proposal for Supply Chain Industrial Engineering


Presentation made in a seminar "Recent Trends in Industrial Engineering" organized by  National Institute of Technology, Surat and IIIE Chapter Surat on 6 April 2013.


Part 2
Supply Chain Industrial Engineering
7 Apr 2013
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Part 1
Supply Chain - Industrial Engineering Tools and Techniques
7 Apr 2013
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Toyota Supply Chain Management
https://www.youtube.com/watch?v=IRb4yOKrzs0
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Supply Chain Engineering - What is it?
https://thesupplychainengineer.com/supply-chain-engineering-2/

How to Apply IE Techniques in SCM to Reduce Cost and Cut Wastage
Vincent Cheung, M.Phil (IE) BPS Global, 2009 Presentation
http://www.bps-group.net/download/CILT_Seminar_in_Singapore_4_Nov_09.pdf

Supply Chain  - Open Access Book Edited by Vedran Kordic
D. Giglio and R. Minciardi, “Modelling and Optimization of Multi-Site Production Systems in Supply Chain Networks,” Proceedings of the 2003 IEEE International Conference

Y. S. Li, F. F. Ye, Z. M. Fang, and J. G. Yang, “Flexible Supply Chain Optimization and Its SRT Analysis,” Industrial Engineering and Management, vol. 10, no. 1, February 2005, Springer-Verlag, China, pp. 89-93.
Steve Hopper, Supply Chain Industrial Engineer
http://www.linkedin.com/in/SteveHopper


Measurement of Supply Chain Performance

Measuring Supply Chain Performance
Benita M. Beamon
1999 paper
ftp://ftpserv.uncc.edu/coba/mbad/cooper/mbad6208_Spring10/class13(current)/ReadingsReDesign/SCPerformance(Beamon).pdf
( Cost is given as one dimension and responsiveness is given as the other dimension. )

Performance Assessment of Supply Chain Management: A Balanced Scorecard Approach
Computers and Industrial Engineering 2007 - Paper
http://kertogral.etu.edu.tr/SCM_performance_measurement_balanced_score_card_2007_CAIE.pdf
( In internal perspective to promote efficiency and effectiveness in our business processes is given as the mission )


Planing Supply Chain - System Design and Operations Planning
Measurements Provided by Industrial Engineering Discipline/Departments


Controlling Supply Chain
Measurements Provided by IED and Actions Initiated by IED




Scott Stephens, Craig Gustin, and Jim Ayers, "Reengineering the Supply Chain
- The Next Hurdle,"  Information Strategy: The Executive's Journal, Fall 1997, pp. 13-18

The authors said improvements have to be extended to the supply partners. It is not any more sufficient to improve internal operations of a company.

Supply Chain Efficiency - Supply Chain Waste Elimination -





Supply Chain Efficiency - Concept and Measures


Exploring Efficiency and Effectiveness in the Supply Chain - Conceptual Analysis
http://impgroup.org/uploads/papers/4670.pdf

Measurement of Efficiency in a Supply Chain'
Doctoral Thesis
http://pure.ltu.se/portal/files/2331159/LTU-LIC-0851-SE.pdf


Supply Chain Responsiveness and Efficiency – Complementing or Contradicting Each Other?
http://www.systemdynamics.org/conferences/2006/proceed/papers/MINNI308.pdf

Measuring Supply Chain Efficiency - DEA Approach
Indian Pharma Industry - 2012 paper
http://www.joscm.com.br/download/JOSCM_VOL5_NUMBER1_4.pdf



Ilsuk Kim, Hokey Min, (2011) "Measuring supply chain efficiency from a green perspective", Management Research Review, Vol. 34 Iss: 11, pp.1169 - 1189
http://www.emeraldinsight.com/journals.htm?articleid=1959373

Measuring Supply Chain Efficiency and Congestion - DEA approach - Shipping
2003
http://www.engineeringletters.com/issues_v18/issue_4/EL_18_4_08.pdf

How SCOR Model Enhances Global Supply Chain Efficiency and Effectiveness
http://ihome.ust.hk/~al_mtm/files/How_SCOR_Model_Enhance_Global_Supply_Chain_Efficiency_Effectiveness.pdf

An Approach towards Overall Supply Chain Efficiency - MS Thesis 2002
https://gupea.ub.gu.se/bitstream/2077/2360/1/gbs_thesis_2002_29.pdf

Lean Supply Chain

Lean supply chain. The aim is to reduce the total cost of the supply chain-removing waste and creating the most value for the customer.


Improving Supply Chain Efficiency


Combining Lean and Agile Supply Chain - 2011 Paper
http://www.academicjournals.org/ajbm/PDF/pdf2011/4Sept/Banihashemi.pdf

Supply Chain Cost Reduction - Book by Amacom
http://nraomtr.blogspot.in/2011/11/supply-chain-cost-reduction.html

Lean Supply Chain - Concept, Development and Design


Lean Thinking for the Supply Chain
Tompkins
http://www.tompkinsinc.com/article/2004/lean-thinking-supply-chain/

Seven Steps to Building a Lean Supply Chain
Mandyam M. Srinivasan
Mandyam M. Srinivasan is The Ball Corporation Distinguished Professor of Business at the University of Tennessee. He is the author of the book, Streamlined: 14 Principles for Building and Managing the Lean Supply Chain.
http://www.industryweek.com/planning-amp-forecasting/goal-lean-supply-chain


From Lean Manufacturing to Lean Supply Chain: A Foundation for Change
2004 Paper by Lawson, USA
http://swe.lawson.com/www/resource.nsf/pub/Lawson_Whitepaper_2_A4_LowRes.pdf/$FILE/Lawson_Whitepaper_2_A4_LowRes.pdf

Understanding the Lean Supply Chain - Beginning the Journey
2005 Report on Lean Practices in  Supply Chain
APICS - ORACLE - Georgia Southern University
http://coba.georgiasouthern.edu/centers/lit/oracle_WP_supply_chain_r6.pdf


Lean practices in the supply Chain - 2008 Survey
Jones Long LaSalle Report - with participation of APICS, Georgia Tech, and Supply Chain Visions
http://www.joneslanglasalle.com/Documents/JLL-LeanPracticesInSupplyChain.pdf


Lean in Supply Chain Planning  - 2011 Report
Cap Gemini
http://www.capgemini.com/m/en/tl/Lean_in_Supply_Chain_Planning.pdf


Lean Supply Chain Road Map - Book Chapter - McGraw-Hill - 2011
http://www.mhprofessional.com/downloads/products/0071771212/0071771212_ch01.pdf

http://logistics.about.com/od/supplychainintroduction/a/Lean_SCM.htm


Webinars by Georgia Tech
Becoming a Lean Supply Chain Professional - Episode 1
Becoming a Lean Supply Chain Professional - Episode 2
https://www.scl.gatech.edu/resources/whitepapers

https://logistics.gatech.pa/en/education/courses#warehouse-layout




Analytics and Risk Management for Supply Chain Efficiency
http://www.verisk.com/Verisk-Review/Articles/Analytics-and-Risk-Management-for-Supply-Chain-Efficiency.html

From Supply to Demand Chain Management: Efficiency and Customer Satisifaction
2002 - JOM article
http://info.cba.ksu.edu/sheu/MANGT662/MT662_SC%20Reading/Demand%20chain%20Heikkila.pdf


USING SUPPLY CHAIN EFFICIENCY IN PORTFOLIO SELECTION
http://asbbs.org/files/2011/ASBBS2011v1/PDF/F/Farahbod.pdf


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Supply Chain Efficiency - Company News and Reports


Unilever supply chain efficiency, 2009
http://www.logisticsit.com/articles/2009/05/05/4342-unilever-supply-chain


Supply Chain Software


SunSmart Global Inc., an ISO 9001:2015 Certified Multinational Software Corporation incorporated in 2004. SunSmart is headquartered in Silicon Valley, USA and has offices in the UK, Europe, Middle East, India and Far East. SunSmart has more than 3000+ man years of Software Solutions & Services experience in the business verticals of Banking, Financial Services, Securities, Insurance, Government, Retail, Healthcare, Manufacturing and Education.
Products
CRM Software
ERP Software
Asset Management Software
HRMS Software
Procurement Management Software
https://www.sunsmartglobal.com/about-us/


Updated on 6.5.2022,  12.1.2022,  21.12.2021,  10 July 2020,   28 June 2020, 16 February 2020
First posted on 25 September 2012

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