Logistics Management Group 3 Aaron Michelson Nabil Akanli

Logistics Management Group 3: Aaron Michelson, Nabil Akanli, Tarek Alsulami, Pegah Fakhar, Taoran Li, James Nakamura Aaron Michelson

Logistics Defined Definition: Management's influence on the transfer of resources between source and the person or entity that needs the resource. Aaron Michelson

MSE 401, Group 3 Data Collection Procurement Production Logistics Warehousing Handling Systems Emergency Sustainability Aaron Michelson

Procurement • The purchase of goods or services of the correct quality, at the appropriate quantity, at the required time, and from the best supplier. Pegah Fakhar

The Procurement Process Need Recognition by Management Supplier research and selection of best alternative Price Negotiation Inventory Control Pegah Fakhar

Management Need Recognition and Purchase Planning • Recognition that there is a need for a particular product or service • Maybe a new item or a product that needs to be reordered. Pegah Fakhar

Supplier Research and Selection • A process used to evaluate the performance of current suppliers for the purposes of reducing costs, risk and for continuous improvement. • The first step is research • Evaluate the list of potential suppliers, and select the one that best satisfies the needs of the company. Pegah Fakhar

Price Negotiation • Helps companies reduce their expenses while increasing their purchasing power. • Negotiate for better rates while maintaining or increasing quality and service. • Have clear and precise objectives Pegah Fakhar

Inventory Control • Uninterrupted availability of supplies • Addresses when to order and the quantity to order • Based on usage, delivery time, quantity, packaging, available storage space • Ensures cost effectiveness Pegah Fakhar

Inventory Control Challenges • Not having enough product in stock to meet customer demand • Excessive inventory in stock and unable to move it quickly enough • Temporary quality problems Pegah Fakhar

Production Logistics • Speed(implementation time) • Scheduling and Project Timeline • the process capability and reliability • Quality • Flexibility • Costs Tariq Alsulami

Production Logistics • It connects procurement to distribution logistics. • Production logistics activities are related to organizational concepts, layout planning, production planning, and control. • THE VALUE OF PRODUCTION LOGISTICS: Production logistics increase the efficiency in new and existing production systems, enhancing the ability to produce the right products in time, minimize waste and safeguard quality assurance. Tariq Alsulami

Value Chain • A value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver something valuable (product or service • The value chain categorizes the generic value-adding activities of an organization. The activities considered under this product/service enhancement process can be broadly categorized under two major activity sets: 1 -Physical/Traditional Value Change 2 -Virtual Value Chain Tariq Alsulami

Flow control in production logistic networks • Controlling network flow aims in most cases at maximizing the output, minimizing waiting or idle times at bottleneck systems, or maintaining some kind of system stability. Tariq Alsulami

WAREHOUSING LOGISTICS • Warehouse Tasks § Keep the products safe § Easy access when need specific product § Shipping to the store • Warehouse Resources § § § Labor Space Equipment Nabil Akanli

Warehouse Operations Goal is to Improve Warehouse Logistics Nabil Akanli

Warehouse Operations i. iii. iv. v. Order Picking Utilizing Cross-docking Increase Productivity Utilizing Spaces Increasing Services Nabil Akanli

Functions must be done on daily bases to assure product quality and costumer satisfaction Nabil Akanli

• Receiving • Inspection • Repackaging • Put away • Sorting Nabil Akanli

Location • Near airport • Close to seaport • Next to the highway Nabil Akanli

Processing and Quality Assurance (QA) • (Quality Assurance): This referring to the auditing of the shipping companies before the product is moved such that the processes are up to their specification. • (Processing): Products are processed to ensure safe arrival and safe delivery to the customer or vendor. James Nakamura

Shipping & Handling • Choosing is about reducing overhead cost. • Acquire quotes from multiple companies to choose best option. • Also can put up a bid and settle on a contract for a better deal as well. James Nakamura

(CASE STUDY) Fed. Ex Secure Shipping • Government used Fed. Ed Custom Critical Service to ship “sensitive” materials across the US instead of the US Armed Forces • Service chosen over the use of Armed Forces due to cost effectiveness. James Nakamura

Packaging • Depends on location, product, and customer. • Must be appropriate to the application. • (CASE STUDY) Digital Storm Computers Packaging: Digital Storm Customized Systems: • Sell upper tier work stations and gaming computers. • Advanced Packaging used to protect the thousand dollar plus investment. • Use Fed. Ex or UPS based on shipping cost. James Nakamura

EMERGENCY LOGISTICS Definitio n • Emergency logistics is a term used by the logistics, supply chain and manufacturing industries to denote specific time critical modes of transport used to move goods or object rapidly in the event of an emergency Taoran Li

CAUSES • • • 1. 2. 3. 4. 5. Disasters (natural). Decision making error. Consumer return Internationl environment Laws Taoran Li

Characteristics of Emergency Logistics • • Sudden and unpredictability Randomness Timing constraint Uncoventionality Taoran Li

Tool • AHP (Analytical Hierarchy Process) method • is a structured technique for organizing and analyzing complex decisions. Based on mathematics and psychology Taoran Li

AHP Method Taoran Li

Emergency Logistics Plan&Management • Draft a logistics plan covering the supply chain and other relevant aspects based on the operation • Time (rapidity)- As the commodities are in most instances urgently needed save time. • Dynamic (flexibility)- Because circumstances change and there frequently in an urgent need to adapt to a changed situation • Security- To reduce hazards for staff and so as to reduce theft and looting. Taoran Li

Example • 2003 SARS(Severe Acute Respiratory Syndromes) • The hospitals control of SARS materials transportation, storage, packaging and management cost wasted 3 billion dollars Taoran Li

Sustainable Logistics Definition: "An approach to progress which meets the needs of the present without compromising the ability of future generations to meet their own needs" -Bruntland Report to UN World Commision on Environmental Development i. Socially Responsible Supply Chains ii. Sustainable Transport iii. Planning Tools Aaron Michelson

Sustainable Supply Chains NOT only Green, But Sustainable! Key To Success 1. Strategic Planning -Explore Options 2. Controlling -Policies and Quality Ecologic (World) Social (People) Economic (Profit) Aaron Michelson

Setting Goals to Accomplish Sustainable Transport 1. Establish Benchmarks a. Collect Data, Planning, Forecasting b. Alternative Solutions 2. Establish Policies a. Controlling- Review b. Motivation 3. Plan to deal with Potential Challenges a. Planning, Forecasting b. Challenges to Integration Aaron Michelson

Management Organizing Systems Set Policies and Standards o Requires Proactive management Case Example: "Life Magazine Report in 1996: Child Labor in Pakistan" CEO took Defensive Stance Factors o Code Of Conduct- Insufficient o Large Corporation Size- Activists Setting Bar • Aaron Michelson

Sustainable Transport At What Stage Does The Manager Consider Sustainability? Analyze Collect Data Assess Alternatives Evaluate Integrate Review http: //www. solarfeeds. com/bullet-train-comingto-india/ Aaron Michelson

Case Example: Analysis Social 1. Passenger activity rise 51% 2. Freight up 82% Ecological Impact 1. CO 2 emissions 31% Higher than 1990 levels Cost 1. 20 Billion Euro in Maintenance, 2. 60 Euro Billion in External Accident costs. 3. Congestion cost: 50% rise to 200 billion Euro Annually Aaron Michelson

Planning Tools Objectives: • • Eco-Efficiency: o Reduce Resource Inputs Design for Environment: o Considers Environment and Health impact http: //www. tbl. com. pk/wpcontent/uploads/2009/01/cover. gif Aaron Michelson

Eco Efficiency Value Stream Mapping Analysis of utilization of resource in existing or proposed process Process Milling Welding Part Washing Surface Coating Total Water Savings Water Used 10 kgal 15 kgal 45 kgal 75 kgal Actual Needed 10 kgal 5 kgal 30 kgal Wasted 0 10 kgal 35 kgal 0 45 kgal Aaron Michelson

Design For Environment Life Cycle Assessment Used to Assess the Social or Environmental effects of a product holistically Recycling and End of Life Extracting & Processing Raw Materials Useful Life Manufacturing and Packaging Transportation Aaron Michelson

Conclusions- Logistics Managerial Logistics Tasks Procurement - Creating reliable information to Evaluate and Select Suppliers Production- Optimization of Resources and Deliverance of Valuables Shipping and handling- Minimizing Cost while Delivering Safe Quality Products Warehousing- Utilization and Allocation of Space to Facilitate Flow of Products Emergency - Managing Risk to Protect People and Profit Sustainability - Focus on World, People, and Profit Sources for Images and Material Provided in Final Paper Aaron Michelson