Supply Network Design (L6M9)

1.1  Assess the meaning of supply network design and the influence that it has on the organisation

• What is supply network design
• Supply network terminology and structures
• Supply network vs. supply chain
• Where are operations located in the supply network– logistical impact
• What influence does capacity and resources have on the supply network
• Value adding and competitive advantage

1.2  Evaluate how a strategic supply chain network should be configured

• Influence of the internet – ‘disintermediation’
• The value net and four players - suppliers, customers, competitors and complementors
• Decisions such as:
• Make or buy
• Insource or outsource
• Vertical integration
• Outsourcing and offshoring

1.3  Assess the influence of capacity on strategic supply chain design

• Optimum capacity
• Large vs. small capacity – advantages and disadvantages
• The timing of capacity change
• Capacity increments:
• Capacity leading and lagging strategies
• Inventory ‘smoothing’
• Break even analysis for capacity expansion

2.1  Assess the meaning of operations strategy and the impact that it has on the organisation

• What is operations strategy
• How to identify if an organisation has an operations strategy
• Is the operations strategy relevant and aligned to the overall business strategy
• Does the operations strategy align with market requirements and available resources
• The contribution of operations strategy to competitive advantage and added value

2.2 Evaluate the key elements of an operations strategy

• Should include key elements such as:
• A clear vision and objectives
• The 4 stages model of operations – internal neutrality,  external  neutrality, internally supportive and externally supportive
• Performance objectives – quality, speed, dependability,  flexibility and cost
• Reconcile strategic decisions to objectives
• capacity and resources vs. timescales and outputs

2.3 Assess the role of improvement in operations strategy

• Continuous improvement
• Drivers for effectiveness and efficiency
• Improving operations through trade-offs between performance objectives
• Trade-offs and the efficient frontier
• Improving operational effectiveness by overcoming trade-offs

3.1  Evaluate the concept of strategic resource planning and control

• What is resource planning and control
• Influences on resource planning such as:
• Translating customer need into operational delivery
• Customer expectation and management
• Forecasting, capacity, resources, priorities,scheduling,  monitoring, control
• Information and data gathering and management

3.2  Assess the key elements of a resource strategic planning and control system

• Core mechanics of the process such as:
• Loading
• Prioritisation and sequencing
• Scheduling
• Monitoring and control
• Decision mechanism:
• Planning and control staff
• Planning and control information system
• Customer interface
• Supply interface
• Other business functions

3.3  Contrast methods of monitoring and controlling the strategic operation

• Degree of difficulty in controlling operations
• Consider methods of control such as:
• Push and pull
• Theory of constraints (TOC) and drum (bottleneck), buffer stock and rope
• MRP and MRP II
• Web-integrated and supply network ERP