SUMMARY SUPPLY CHAIN
OPTIMIZATION
Supply Chain Management, Artevelde University of
Applied sciences
Ewout Vermeersch
[E-mailadres]
,Inhoud
Part 1: Project Management.....................................................................................................................................5
Scope window.......................................................................................................................................................5
Project charter = statement of work.....................................................................................................................5
Team and roles......................................................................................................................................................5
Project team......................................................................................................................................................5
PMO...................................................................................................................................................................5
Project roles.......................................................................................................................................................6
Tool: stakeholder mapping................................................................................................................................6
Tollgate review......................................................................................................................................................6
LEAN SIX SIGMA.................................................................................................................................................6
Tollgate review..................................................................................................................................................7
Project planning....................................................................................................................................................7
Three tools.........................................................................................................................................................7
Project financials...................................................................................................................................................8
CAPEX VS OPEX..................................................................................................................................................8
Timing of financials............................................................................................................................................8
NPV = Net Present Value...................................................................................................................................8
AT= Asset Turnover ratio...................................................................................................................................8
Project close-out...................................................................................................................................................9
Part 2: Supply Chain Management..........................................................................................................................10
Supply Chain Management recap.......................................................................................................................10
Definition.........................................................................................................................................................10
Logistics vs SCM...............................................................................................................................................10
Supply chain goals...........................................................................................................................................11
Competitive advantage...................................................................................................................................11
delivering customer value...............................................................................................................................11
bottom line = ROI = return on investment......................................................................................................13
Shareholder value...........................................................................................................................................13
total cost analysis............................................................................................................................................14
The cost of holding inventory..........................................................................................................................14
Customer profitability analysis........................................................................................................................14
activity based costing......................................................................................................................................14
Supply Chain finance...........................................................................................................................................15
The supply chain triangle................................................................................................................................15
Financial benchmarking in two dimensions....................................................................................................19
Supply Chain Optimization Ewout Vermeersch 1
, Financial target setting....................................................................................................................................19
The KPI dashboard (example).........................................................................................................................21
Part 3: Process optimization...................................................................................................................................22
introduction to lean management......................................................................................................................22
the term lean...................................................................................................................................................22
TPS toyota production system.......................................................................................................................22
the Toyota way 4p’s........................................................................................................................................24
introduction to six sigma.....................................................................................................................................24
theory of constraints.......................................................................................................................................25
principles of Womack..............................................................................................................................................25
specify value....................................................................................................................................................26
identify the value stream map........................................................................................................................27
create flow.......................................................................................................................................................29
let the customer pull value.............................................................................................................................30
pursuir of perfection.......................................................................................................................................30
lean phylosophy of Toyota..................................................................................................................................30
main characteristics of lean............................................................................................................................30
Lean tools............................................................................................................................................................35
VSM Value Stream Map.................................................................................................................................35
Flow.................................................................................................................................................................35
process optimization methods............................................................................................................................41
quantitative data analysis...............................................................................................................................41
qualitative 5W2H.............................................................................................................................................41
kaizen...............................................................................................................................................................41
CAPA................................................................................................................................................................42
Where do lean and six sigma meet.................................................................................................................43
Part 4: Change Management..................................................................................................................................47
Introduction to change management.................................................................................................................47
Scope definition...............................................................................................................................................47
failed projects..................................................................................................................................................47
30 – 70.............................................................................................................................................................47
Change management in practice........................................................................................................................48
MBTI................................................................................................................................................................48
Kotter change management............................................................................................................................48
Kubler-Ross......................................................................................................................................................49
Starting conditions for change........................................................................................................................51
Part 5: Supply chain of the future...........................................................................................................................52
Supply Chain Optimization Ewout Vermeersch 2
, Gartner report: developing the supply chain professional of 2025....................................................................52
The supply chain of the future............................................................................................................................53
Emerging mega trends....................................................................................................................................53
Shifting centres of gravity...............................................................................................................................54
Supply chain governance and compliance......................................................................................................54
The need for adaptability................................................................................................................................55
Seeking structural flexibility............................................................................................................................55
2020 vision......................................................................................................................................................56
Waste in the supply chain...............................................................................................................................56
The new industrial revolution.........................................................................................................................56
Seven major business transformations...........................................................................................................57
The implication for tomorrow’s logistics managers........................................................................................57
Chapter 8 : The synchronous supply chain.............................................................................................................59
8.1: The extended entreprise and the virtual supply chain................................................................................59
8.2: The role of information in the virtual supply chain.....................................................................................59
8.3: Laying the foundations for synchronisation.................................................................................................59
8.4: QR Quick response logistics........................................................................................................................60
8.5: Production strategies for QR........................................................................................................................60
8.6: Logistics systems dynamics..........................................................................................................................60
Chapter 11: Service Logistics...................................................................................................................................62
What is a service?................................................................................................................................................62
Buying performance............................................................................................................................................62
The service dominant logic.................................................................................................................................62
The trend to servitisation....................................................................................................................................62
Implications of servitisation for logistics.............................................................................................................63
The critical role of capacity.................................................................................................................................63
Service supply chain processes...........................................................................................................................64
Managing the service supply chain.....................................................................................................................64
Chapter 14: overcoming the barriers to supply chain integration..........................................................................65
Creating the logistics vision.................................................................................................................................65
The problems with conventional organisations..................................................................................................65
Developing the logistics organisation.................................................................................................................66
Logistics as a vehicle for change..........................................................................................................................67
Benchmarking......................................................................................................................................................67
Chapter 15 : Creating a sustainable supply chain...................................................................................................70
The triple bottom line..........................................................................................................................................70
Greenhouse gases and the supply chain.............................................................................................................70
Supply Chain Optimization Ewout Vermeersch 3
OPTIMIZATION
Supply Chain Management, Artevelde University of
Applied sciences
Ewout Vermeersch
[E-mailadres]
,Inhoud
Part 1: Project Management.....................................................................................................................................5
Scope window.......................................................................................................................................................5
Project charter = statement of work.....................................................................................................................5
Team and roles......................................................................................................................................................5
Project team......................................................................................................................................................5
PMO...................................................................................................................................................................5
Project roles.......................................................................................................................................................6
Tool: stakeholder mapping................................................................................................................................6
Tollgate review......................................................................................................................................................6
LEAN SIX SIGMA.................................................................................................................................................6
Tollgate review..................................................................................................................................................7
Project planning....................................................................................................................................................7
Three tools.........................................................................................................................................................7
Project financials...................................................................................................................................................8
CAPEX VS OPEX..................................................................................................................................................8
Timing of financials............................................................................................................................................8
NPV = Net Present Value...................................................................................................................................8
AT= Asset Turnover ratio...................................................................................................................................8
Project close-out...................................................................................................................................................9
Part 2: Supply Chain Management..........................................................................................................................10
Supply Chain Management recap.......................................................................................................................10
Definition.........................................................................................................................................................10
Logistics vs SCM...............................................................................................................................................10
Supply chain goals...........................................................................................................................................11
Competitive advantage...................................................................................................................................11
delivering customer value...............................................................................................................................11
bottom line = ROI = return on investment......................................................................................................13
Shareholder value...........................................................................................................................................13
total cost analysis............................................................................................................................................14
The cost of holding inventory..........................................................................................................................14
Customer profitability analysis........................................................................................................................14
activity based costing......................................................................................................................................14
Supply Chain finance...........................................................................................................................................15
The supply chain triangle................................................................................................................................15
Financial benchmarking in two dimensions....................................................................................................19
Supply Chain Optimization Ewout Vermeersch 1
, Financial target setting....................................................................................................................................19
The KPI dashboard (example).........................................................................................................................21
Part 3: Process optimization...................................................................................................................................22
introduction to lean management......................................................................................................................22
the term lean...................................................................................................................................................22
TPS toyota production system.......................................................................................................................22
the Toyota way 4p’s........................................................................................................................................24
introduction to six sigma.....................................................................................................................................24
theory of constraints.......................................................................................................................................25
principles of Womack..............................................................................................................................................25
specify value....................................................................................................................................................26
identify the value stream map........................................................................................................................27
create flow.......................................................................................................................................................29
let the customer pull value.............................................................................................................................30
pursuir of perfection.......................................................................................................................................30
lean phylosophy of Toyota..................................................................................................................................30
main characteristics of lean............................................................................................................................30
Lean tools............................................................................................................................................................35
VSM Value Stream Map.................................................................................................................................35
Flow.................................................................................................................................................................35
process optimization methods............................................................................................................................41
quantitative data analysis...............................................................................................................................41
qualitative 5W2H.............................................................................................................................................41
kaizen...............................................................................................................................................................41
CAPA................................................................................................................................................................42
Where do lean and six sigma meet.................................................................................................................43
Part 4: Change Management..................................................................................................................................47
Introduction to change management.................................................................................................................47
Scope definition...............................................................................................................................................47
failed projects..................................................................................................................................................47
30 – 70.............................................................................................................................................................47
Change management in practice........................................................................................................................48
MBTI................................................................................................................................................................48
Kotter change management............................................................................................................................48
Kubler-Ross......................................................................................................................................................49
Starting conditions for change........................................................................................................................51
Part 5: Supply chain of the future...........................................................................................................................52
Supply Chain Optimization Ewout Vermeersch 2
, Gartner report: developing the supply chain professional of 2025....................................................................52
The supply chain of the future............................................................................................................................53
Emerging mega trends....................................................................................................................................53
Shifting centres of gravity...............................................................................................................................54
Supply chain governance and compliance......................................................................................................54
The need for adaptability................................................................................................................................55
Seeking structural flexibility............................................................................................................................55
2020 vision......................................................................................................................................................56
Waste in the supply chain...............................................................................................................................56
The new industrial revolution.........................................................................................................................56
Seven major business transformations...........................................................................................................57
The implication for tomorrow’s logistics managers........................................................................................57
Chapter 8 : The synchronous supply chain.............................................................................................................59
8.1: The extended entreprise and the virtual supply chain................................................................................59
8.2: The role of information in the virtual supply chain.....................................................................................59
8.3: Laying the foundations for synchronisation.................................................................................................59
8.4: QR Quick response logistics........................................................................................................................60
8.5: Production strategies for QR........................................................................................................................60
8.6: Logistics systems dynamics..........................................................................................................................60
Chapter 11: Service Logistics...................................................................................................................................62
What is a service?................................................................................................................................................62
Buying performance............................................................................................................................................62
The service dominant logic.................................................................................................................................62
The trend to servitisation....................................................................................................................................62
Implications of servitisation for logistics.............................................................................................................63
The critical role of capacity.................................................................................................................................63
Service supply chain processes...........................................................................................................................64
Managing the service supply chain.....................................................................................................................64
Chapter 14: overcoming the barriers to supply chain integration..........................................................................65
Creating the logistics vision.................................................................................................................................65
The problems with conventional organisations..................................................................................................65
Developing the logistics organisation.................................................................................................................66
Logistics as a vehicle for change..........................................................................................................................67
Benchmarking......................................................................................................................................................67
Chapter 15 : Creating a sustainable supply chain...................................................................................................70
The triple bottom line..........................................................................................................................................70
Greenhouse gases and the supply chain.............................................................................................................70
Supply Chain Optimization Ewout Vermeersch 3
