Essay about MANAGING OPERATIONS

4220 Words Sep 13th, 2013 17 Pages
JCT Task 3

Business Report Based on a Scenario

JCT2 Supply Chain (V2 GRADUATE-0610)-PA

A. Recommend, with sufficient support, the adoption of one of the following strategies by the power tool company: a Keiretsu network, a virtue company, a vertical integration, or a different supplier chain strategy:

Supplier chain strategies are one of the most important aspects of supply chain management. The key to success of an organization is the supply chain strategy. The supply chain makes up 55-85% to total costs for a business, so it is understandable why so many people are searching for newer and better strategies. (Bruce O. Bartschenfeld)

A Keiretsu Network: Keiretsu network is a network composed of manufactures,
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This calculation can vary. Some companies count items that are not confirmed (not allocated) and past the Requested Delivery Date (or Requested Ship Date). Other companies may also count those items with stock confirmed, but past due.

ii. Cycle Time Measurements: The following are some of the Cycle Times that should be considered for the supply chain:
a. Customer Order Promised Cycle Time: the anticipated or agreed upon cycle time of a Purchase Order. It is gap between the Purchase Order Creation date and the Requested Delivery Date. This tells us the cycle that we should except – not the actual. (John Taras)
b. Customer Order Actual Cycle Time: the coverage time it takes to actually fill a customer purchase order. This measure can be viewed on an Order or an Order Line level. (John Taras)
c. Manufacturing Cycle Time: Measured from the Firm Planned Order until the final production is reported. Is usually takes into account the original planned production quantity versus the actual production quantity. (John Taras)
d. Purchase Order Cycle Time: Measured from the creation of the PO to the receipt at your location (Distribution Center, Hub, etc.). One of the keys here is not to have your RDD (Requested Delivery Date) exceed the agreed to lead time. If it does, it may artificially inflate your lead time. (John Taras)

iii. Defects Per Million Opportunities (DPMO): DPMO is a Six Sigma calculation used to indicate the amount of defects in a process per one
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