Supply Chain Dynamics – H. Akkermans
Chapter 1 – Introduction: The managerial imperative to master supply chain
dynamics........................................................................................................................3
Sysdea.......................................................................................................................5
Chapter 2 – Models of Man: Introducing the language of system dynamics................6
Sysdea.......................................................................................................................8
Chapter 3 – Boundly rational: Human limitations to effective decision-making in
dynamic environments...................................................................................................9
Part II – DEMAND SHOCK DYNAMICS IN SUPPLY CHAINS...................................15
Chapter 4 – The curse of cyclicality: managing semiconductor supply chain dynamics
.....................................................................................................................................15
Theory......................................................................................................................15
Model.......................................................................................................................17
Chapter 5 – In praise of lies? On information sharing in high-tech supply chains......21
Theory......................................................................................................................21
Model.......................................................................................................................21
Chapter 6 – Relevance assumed: surviving market growth dynamics in professional
services........................................................................................................................25
Theory......................................................................................................................25
Model.......................................................................................................................26
Part III – WORKLOAD-QUALITY DYNAMICS IN NEW PRODUCT DEVELOPMENT
AND INTRODUCTION................................................................................................31
Chapter 7 – The boiled frog: decision traps in managing new product development
projects........................................................................................................................31
Theory......................................................................................................................31
Model.......................................................................................................................33
Chapter 8 – Pilot error? Managerial decision biases in new aircraft development
programmes................................................................................................................37
Theory......................................................................................................................37
Model.......................................................................................................................38
Chapter 9 – The service quality cascade: managing ramp-ups in service supply
chains..........................................................................................................................43
Theory......................................................................................................................43
Model.......................................................................................................................45
Part IV – RELATIONSHIP DYNAMICS: TRANSPARANCY AND TRUST IN BUYER-
SUPPLIER COLLABORATION...................................................................................49
,Chapter 10 – Travail, transparency and trust: buyer-supplier relationship dynamics in
high-tech electronics....................................................................................................49
Theory......................................................................................................................49
Model.......................................................................................................................50
Chapter 11 – Virtuous and vicious cycles in ERP implementation: intra-organizational
collaboration dynamics in aerospace..........................................................................55
Theory......................................................................................................................55
Model.......................................................................................................................55
Chapter 12 – Collaborative KPIs: Managing buyer-supplier collaboration in
outsourced IT services................................................................................................59
Theory......................................................................................................................59
Model.......................................................................................................................62
PART V – MOVING FORWARD: UNDERSTANDING AND SURVIVING BUSINESS
TSUNAMI.....................................................................................................................67
Chapter 13 – Speeding up the management cycle: how to survive business tsunami
supply chain dynamics................................................................................................67
,Chapter 1 – Introduction: The managerial imperative to
master supply chain dynamics
#1: The electronics industry
- main components = semiconductors
- end 2008, sales of electronics goods declined (economic recession)
- inventory levels came down very quickly production decrease
- up down, up again in one year
#2: The aerospace industry
- leaders Airbus (A380) and Boeing (787 Dreamliner) < similar issues
- A380 -> Multiple delays were announced (technical issues related to the wiring
of the aircraft)
- Dreamliner -> Schedule delay several key systems were not installed in the
prototype and the plane simply was not yet ready to fly
#3: The telecom industry
- disruptive innovations
- not separating its existing customers from new ones
- IT
Problem is product lifecycle changes AND technological development IS responding
quickly or not? Everyone is running their own “firm” within a supply chain network.
The variety is the capability to be as flexible as its environment.
1) Collaborative planning is that independent companies coordinate the planning
together. 2) Sales and operations planning is collaborative planning (every week
everybody provide timely information on the current supply chain status). It is to
calculate what is the best for the chain. S&OP (travail) will be weekly, on basis of
current data of workloads (information transparency), quality, all phases in the
network are: monitored, forecast, kept consistent and within control limits. 3)
Collaborative KPIs (successful), 4) Operations planning with scenarios.
The supply chain, the independent companies, had to transform from decentralized
decision-making towards centralized decision-making. There was a need for central
control.
Inter-organizational supply network is that departments are strongly evaluated on
their local performance,, not on their contribution to company-wide performance, and
are behaving more as independent units, less as integral parts of a central whole.
These days, technology can not be an issue anymore because of the ERP systems.
On the other hand, it may well be so that the inherently closed nature of first
generation ERP systems has not made it all that much technically easier to share
data with other companies. The way forward will require some kind of information
sharing and coordinated decision-making in these networks.
, “Myopic” mindset is to stress that managers need to adopt a different and broader
view of their environment, since they are missing much which is important by
focusing on local and short-term and opportunities.
“Business dynamics” mindset is “we need a new perspective on management, one
that starts from the notion of business dynamics.
Chapter 1 – Introduction: The managerial imperative to master supply chain
dynamics........................................................................................................................3
Sysdea.......................................................................................................................5
Chapter 2 – Models of Man: Introducing the language of system dynamics................6
Sysdea.......................................................................................................................8
Chapter 3 – Boundly rational: Human limitations to effective decision-making in
dynamic environments...................................................................................................9
Part II – DEMAND SHOCK DYNAMICS IN SUPPLY CHAINS...................................15
Chapter 4 – The curse of cyclicality: managing semiconductor supply chain dynamics
.....................................................................................................................................15
Theory......................................................................................................................15
Model.......................................................................................................................17
Chapter 5 – In praise of lies? On information sharing in high-tech supply chains......21
Theory......................................................................................................................21
Model.......................................................................................................................21
Chapter 6 – Relevance assumed: surviving market growth dynamics in professional
services........................................................................................................................25
Theory......................................................................................................................25
Model.......................................................................................................................26
Part III – WORKLOAD-QUALITY DYNAMICS IN NEW PRODUCT DEVELOPMENT
AND INTRODUCTION................................................................................................31
Chapter 7 – The boiled frog: decision traps in managing new product development
projects........................................................................................................................31
Theory......................................................................................................................31
Model.......................................................................................................................33
Chapter 8 – Pilot error? Managerial decision biases in new aircraft development
programmes................................................................................................................37
Theory......................................................................................................................37
Model.......................................................................................................................38
Chapter 9 – The service quality cascade: managing ramp-ups in service supply
chains..........................................................................................................................43
Theory......................................................................................................................43
Model.......................................................................................................................45
Part IV – RELATIONSHIP DYNAMICS: TRANSPARANCY AND TRUST IN BUYER-
SUPPLIER COLLABORATION...................................................................................49
,Chapter 10 – Travail, transparency and trust: buyer-supplier relationship dynamics in
high-tech electronics....................................................................................................49
Theory......................................................................................................................49
Model.......................................................................................................................50
Chapter 11 – Virtuous and vicious cycles in ERP implementation: intra-organizational
collaboration dynamics in aerospace..........................................................................55
Theory......................................................................................................................55
Model.......................................................................................................................55
Chapter 12 – Collaborative KPIs: Managing buyer-supplier collaboration in
outsourced IT services................................................................................................59
Theory......................................................................................................................59
Model.......................................................................................................................62
PART V – MOVING FORWARD: UNDERSTANDING AND SURVIVING BUSINESS
TSUNAMI.....................................................................................................................67
Chapter 13 – Speeding up the management cycle: how to survive business tsunami
supply chain dynamics................................................................................................67
,Chapter 1 – Introduction: The managerial imperative to
master supply chain dynamics
#1: The electronics industry
- main components = semiconductors
- end 2008, sales of electronics goods declined (economic recession)
- inventory levels came down very quickly production decrease
- up down, up again in one year
#2: The aerospace industry
- leaders Airbus (A380) and Boeing (787 Dreamliner) < similar issues
- A380 -> Multiple delays were announced (technical issues related to the wiring
of the aircraft)
- Dreamliner -> Schedule delay several key systems were not installed in the
prototype and the plane simply was not yet ready to fly
#3: The telecom industry
- disruptive innovations
- not separating its existing customers from new ones
- IT
Problem is product lifecycle changes AND technological development IS responding
quickly or not? Everyone is running their own “firm” within a supply chain network.
The variety is the capability to be as flexible as its environment.
1) Collaborative planning is that independent companies coordinate the planning
together. 2) Sales and operations planning is collaborative planning (every week
everybody provide timely information on the current supply chain status). It is to
calculate what is the best for the chain. S&OP (travail) will be weekly, on basis of
current data of workloads (information transparency), quality, all phases in the
network are: monitored, forecast, kept consistent and within control limits. 3)
Collaborative KPIs (successful), 4) Operations planning with scenarios.
The supply chain, the independent companies, had to transform from decentralized
decision-making towards centralized decision-making. There was a need for central
control.
Inter-organizational supply network is that departments are strongly evaluated on
their local performance,, not on their contribution to company-wide performance, and
are behaving more as independent units, less as integral parts of a central whole.
These days, technology can not be an issue anymore because of the ERP systems.
On the other hand, it may well be so that the inherently closed nature of first
generation ERP systems has not made it all that much technically easier to share
data with other companies. The way forward will require some kind of information
sharing and coordinated decision-making in these networks.
, “Myopic” mindset is to stress that managers need to adopt a different and broader
view of their environment, since they are missing much which is important by
focusing on local and short-term and opportunities.
“Business dynamics” mindset is “we need a new perspective on management, one
that starts from the notion of business dynamics.
