Technical Department SCM Overview NOC OSS CH 1

Technical Department

SCM Overview NOC OSS CH 1 & 2 CH # 3 NOC Integration NOC Infrastructure Marking & Class Norms Introduction SCM Technical Department Case Study: NOC Operations Bull whip effect

ZEESHAN KHAN. EDUCATION: MBA ( SUPPLY CHAIN MANAGEMENT & PROJECT MANAGEMENT) ELECTRICAL ENGINEERING ( COMMUNICATIONS) 2 RESEARCH ARTICLES IN IEEE. PMP PDUs COMPLETED. EXPERIENCE: WORKING IN PTCL AS MANAGER NOC (5 YEARS) ASSOCIATED WITH VENDORS LIKE ZTE, HUAWEI, AL-LUCENT ETC. LECTURER IN UET (ONE SEMESTER) CONSULTANT FOR TELEPHONE INDUSTRIES OF PAKISTAN FOR OPTIMIZING DISTRIBUTION SYSTEM OF TELEPHONE SETS GUEST SPEAKER TO MS-ENGINEERING MANAGEMENT PROFESSIONALS FOR QUALITY FUNCTION DEPLOYMENT. CONDUCTED SEVERAL PRESENTATION TO ROSHAN TELECOM AFGHANISTAN, ETISILAT GROUP UAE & PAK ARMED FORCES Technical Department AND MANY OTHERS

ZEESHAN KHAN. COMMUNICATE: zeeshanpmp@gmail. com 0345 -9571133 (only in case of emergency) Your Introduction: Name Specialization Student ID Current Semester & MBA/BBA Signature Technical Department CGPA:

SCM Overview NOC OSS CH 1 & 2 CH # 3 NOC Integration NOC Infrastructure Marking & Class Norms Introduction SCM Technical Department Case Study: NOC Operations Bull whip effect

MARKING: DISTRIBUTION: v v v Quizzes…(5%) Assignments…(10%) Grand Quizzes/Presentation…(10%) Mid-Term…(25%) End-Term…(40%) Class participation marks (-10% up to +10%) WHAT YOU HAVE GOT: I HAVE GIVEN YOU 100/100 MARKS (i-e A GRADE) NOW ITS UP TO YOU … DON’T LOSE MARKS AND SUSTAIN YOUR POSITION. 12 MARKS MARGIN FOR A GRADE. 18 MARKS MARGIN FOR B+ GRADE & 40 MARKS MARGIN FOR F GRADE. Technical Department

NORMS: v v Late comers not allowed ( margin 10 mins) Assignments (suggestion: do at your own) Quiz (in the class in which assignment is to be submitted) Bonus quiz (any time, ADD to class participation marks) v No LAUGH on questions being asked by fellow students or if there is a wrong answer. v CONDUCIVE LEARNING ENVIRONMENT VIOLATIONS: WILL LEAD TO REDUCTION IN CLASS PARTICIPATION MARKS (-10% TO +10%) Technical Department THAT COULD HURT YOUR GRADES EVENTUALLY.

SCM Overview NOC OSS CH 1 & 2 CH # 3 NOC Integration NOC Infrastructure Marking & Class Norms Introduction SCM Technical Department Case Study: NOC Operations Bull whip effect

What is Supply chain Management? Why SCM is important or why companies put emphasis on SCM? SCM: “A supply chain is the alignment of firms that bring products or services to market. ”—from Lambert, Stock, and Ellram “A supply chain consists of all stages involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves. ”— from Chopra and Meindle Technical Department

What is Supply chain Management? Why SCM is important or why companies put emphasis on SCM? SCM: “A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. ”—from Ganeshan and Harrison Supply chain management is the coordination of production, inventory, location, and transportation among the participants in a supply chain to achieve the best mix of responsiveness and efficiency for the market being served. ”— Technical Department

What is Supply chain Management? Why SCM is important or why companies put emphasis on SCM? SCM: A set of approaches used to efficiently integrate Ø Suppliers Ø Manufacturers Ø Warehouses Ø Distribution centers So that the product is produced and distributed Ø In the right quantities Ø To the right locations Ø And at the right time System-wide costs are minimized and Service level requirements are satisfied Technical Department

What is Supply chain Management? Why SCM is important or why companies put emphasis on SCM? SCM: Source of Competitive advantage Suppliers Material Costs Manufacturers Transportation Costs Warehouses & Distribution Centers Transportation Costs Technical Manufacturing Costs. Department Inventory Costs Customers Transportation Costs

What is Supply chain Management? Why SCM is important or why companies put emphasis on SCM? Why Is SCM Difficult? • Uncertainty is inherent to every supply chain – – Travel times Breakdowns of machines and vehicles Weather, natural catastrophe, war Local politics, labor conditions, border issues • The complexity of the problem to globally optimize a supply chain is significant – – – Minimize internal costs Minimize uncertainty Deal with remaining uncertainty Technical Department

What is Supply chain Management? Why SCM is important or why companies put emphasis on SCM? The Importance of Supply Chain Management • Dealing with uncertain environments – matching supply and demand – – Boeing announced a $2. 6 billion write-off in 1997 due to “raw materials shortages, internal and supplier parts shortages and productivity inefficiencies” U. S Surgical Corporation announced a $22 million loss in 1993 due to “larger than anticipated inventories on the shelves of hospitals” IBM sold out its supply of its new Aptiva PC in 1994 costing it millions in potential revenue Hewlett-Packard and Dell found it difficult to obtain important components for its PC’s from Taiwanese suppliers in 1999 due to a massive earthquake • U. S. firms spent $898 billion (10% of GDP) on supply-chain related activities in 1998 Technical Department

Competitive and Supply Chain Strategies? Competitive Strategy: • Competitive strategy: defines the set of customer needs a firm seeks to satisfy through its products and services, relative to its competitors. – Wallmart – low price, product availability – Dell – Customization and variety • Priories of the customer is the determining factor in competitive strategy. Technical Department

Competitive and Supply Chain Strategies? SC Strategy: Supply chain strategy: • Determines the nature of material procurement, transportation of materials, manufacture of product or creation of service, distribution of product. • Determines the broad structure, what the processes within company must focus “to do well”, and what roles each entity in the supply chain should play. • Supply chain strategy is simply the collection of the strategies for new product development, marketing, operations, distributions, and service. • Consistency and support between supply chain strategy, competitive strategy, and other functional strategies is important. Technical Department

Competitive and Supply Chain Strategies? Seven Eleven Japan • A chain of small stores selling groceries and variety of products and services. • Competitive strategy; convenience and easy access to stores, availability of variety of products and services (like bill payment). • Supply chain strategy; emphasizing the convenience and variety in marketing, high density of stores, excellent information system, very responsive forecasting and inventory management system, flexible distribution system in delivery schedules. Technical Department

Competitive and Supply Chain Strategies? DELL: Competitive strategy; Customization and variety at reasonable price. Supply chain strategy; broad structure-direct sale to customer, built-to-order system to achieve the customization and variety, using internet (or phone) and e-business for customization, no finished product inventory, low component inventories, close relations and information sharing with suppliers for speedy delivery and reduced defects, using parcel carriers for speedy delivery, a few assembly plants for economies of scale in production. Technical Department

Achieving Strategic Fit: Dell Achieving Strategic Fit: Which option is better? Competitive strategy; Customization and variety Supply chain strategy; Two extreme options; Efficient supply chain for low cost products (consolidated production and distribution, dedicated production capacity, limited variety, slow modes of distribution, standard products etc. ) • Responsive supply chain; Flexible production capacity, fast distribution options, product variety, designing easily customizable products with as many as possible common components) • • Second option of course better fits with competitive strategy of Dell. Technical Department

SCM Overview NOC OSS CH 1 & 2 CH # 3 NOC Integration NOC Infrastructure Marking & Class Norms Introduction SCM Technical Department Case Study: NOC Operations Bull whip effect

Planning Supply and Demand in a Supply Chain: Managing Predictable Variability Predictable variability : Predictable variability is change in demand that can be forecasted. Can cause increased costs and decreased responsiveness in the supply chain A firm can handle predictable variability using two broad approaches: Manage supply using capacity, inventory & subcontracting Manage demand using short-term price discounts and trade promotions. Technical Department

Planning Supply and Demand in a Supply Chain: Managing Predictable Variability Predictable variability : Managing Supply Managing capacity Ø Time flexibility from workforce Ø Use of seasonal workforce Ø Use of subcontracting Ø Use of dual facilities – dedicated and flexible Ø Designing product flexibility into production processes Managing inventory Ø Building inventory of high demand or predictable demand products Technical Department

Planning Supply and Demand in a Supply Chain: Managing Predictable Variability Predictable variability : Managing Supply Inventory Capacity Trade-off: Ø Leveling capacity forces inventory to build up in anticipation of seasonal variation in demand Ø Carrying low levels of inventory requires capacity to vary with seasonal variation in demand or enough capacity to cover peak demand during season Technical Department

Planning Supply and Demand in a Supply Chain: Managing Predictable Variability Predictable variability : Managing Supply Implementing Solutions to Predictable Variability in Practice Ø Coordinate planning across enterprises in the supply chain Ø Take predictable variability into account when making strategic decisions Ø Preempt, do not just react to, predictable variability Technical Department

Planning Supply and Demand in a Supply Chain: Managing Predictable Variability Predictable variability : Managing Demand Ø Ø Promotion Pricing Timing of promotion and pricing changes is important Demand increases can result from a combination of factors: Ø Market growth (increased sales, increased market size) Ø Stealing share (increased sales, same market size) Technical Department

Planning Supply and Demand in a Supply Chain: Managing Predictable Variability Assignment # 1: Ø How can supply be managed to improve synchronization in the supply chain in the face of predictable variability? Ø How can demand be managed to improve synchronization in the supply chain in the face of predictable variability? Ø How can strategic planning be used to maximize profitability when faced with predictable variability in the supply chain? Ø Submit by next Saturday (hardcopy, Computerized Print) Ø +2 BONUS MARKS if softcopy is sent before 25 th september 11: 59 pm Technical Department

SCM Overview NOC OSS CH 1 & 2 CH # 3 NOC Integration NOC Infrastructure Marking & Class Norms Introduction SCM Technical Department Case Study: NOC Operations Bull whip effect

Bull whip Effect Read NOW and be prepared for the quiz in the next class. Technical Department