Index – Optimizing the Supply Chain

Index

A-3 format, problem-solving tools, 158

Ad valorem tax, 111

Affinity diagrams, 163

Aggregated forecasts, 56

Alibaba, 135

Alipay, 137

Assemble-to-order manufacturing, 67

Association of Southeast Asian Nations (ASEAN), 106–107

Availability, defined, 121

 

Baidu (search engine), 135

Balance sheet, xviii, 15

Beginning-of-life process, 47–50

    inactive, obsolete, and surplus inventories, 50

    new product introduction, 47

    product rationalization, 48–49

    simple SKU rationalization process, 49

    SIOP process, 48

Bill of materials (BOM), 50, 67, 74, 147

Boss types, 1

Brazilian trade management, 111–115

Broker management, 107

Business continuity, 123–132, 150–151

    disaster preparedness, 124

    leadership, 124–125

    supply chain security, 125–132

Business interruptions, 123

Business leader, role of, 125, 126

Business planning process, 35–42

    impact of demand changes on supply, 38–39

    maturity stages versus time, 42

    production planning, 39–40

    sales, inventory, and operations planning, 35–38

    tools for, 145–146

Business resource reviews, 6

Business strategy deployment, 3–5

 

Capacity planning

    basic data for, 66

    definitions, 66

    factors affecting, 65–66

Case study

    Brazilian trade management, 111–115

    cost management, 93–95

    demand changes on supply, impact of, 38–39

    German manufacturing and global customer, 148

    production planning, 39–40

    project Big Bowl, 99–102

    raw material purchases, 149–150

    St John Ambulance, 9–12

    supplier development, 93–95

    supply chain of vitamin, 25–31

Cash flow, 13, 21, 117, 118, 120

Cash management, 14

Cash on delivery (COD), 136, 137

Cash-to-cash cycle, 17, 143

Cause and effect diagram. See Fishbone chart

Check sheets, 163

China International Payment System (CIPS), 136–137

China’s e-commerce market, 134–135

Company values, principles, and strategy, 2–6

    business resource reviews, 6

    business strategy deployment, 3–5

    goals and objectives, 5

    human factor, 2–3

    performance evaluations, 5–6

Consensus building, 59–60

Continuous flow processing, 85

Contracts, 107

Control charts, 162–163

Conveyance, 66

Cost management, 90–91, 99

    case study, 93–95

Country of origin, 106, 110

Credit cards, 136

Customer care/order management, 127

Customer costs, 45

Customs Laws, 103

Customs-Trade Partnership Against Terrorism (C-TPAT), 108, 128

Cybersecurity, 129–130

Cycle time, xx–xxi, 15, 29, 40

 

Data integrity, for MRP system accuracy, 147–148

Declared value, 106, 110

Demand changes on supply, impact of, 38–39

Demand, defined, 55

Demand forecasting, 55, 58, 145

Demand planners, 48

Demand planning, 53–61

    consensus building, 59–60

    forecasting, 55–58

    multidimensional metrics, 60–61

Demand profiles, 52

Deming, Edwards, 80, 81, 155

Deming Wheel, 155–157

Deming’s 14 Points on Quality Management, 81–82, 156–157

Disaster preparedness, 124

 

E-commerce, 133–138

    in China, 134–135

    defined, 133

    EMEA, 134

    emerging markets, 135–137

    in United States, 133–134

Economic uncertainty, 53

Electronic payment processes, 136–137

EMEA, e-commerce, 134

Employee, 126–127

    recruitment, 6–7

    retention, 7–8

    training, 7

End-of-life process, 50–51

Enterprise resource planning (ERP), 141, 144–148

    customer service and care, 144–145

    data integrity, 147–148

    forecasting and business planning, tools for, 145–146

    materials resource planning, 146–147

Executive SIOP, 77–78

Export Control Classification Number (ECCN), 106, 110

Export Control Laws, 103

 

Factory scheduling, 66

Finance’s role, in supply chain design, 14–17

    balance sheet, 15

    profit and loss statement, 17

Fishbone chart, 159

“5S,” for TPM, 120

The 5 Whys technique, 87, 154, 158–159

Flowchart, 159–160

Fool-proofing. See Poka-yoke

Force field analysis, 163

Forecasting, 55–58

    benefits of, 56

    components and methods of, 57

    tools for, 145–146

Foreign Trade Zones (FTZs), 109–111

Free trade agreements (FTAs), 106–107

Freed-up cash, 14

 

GAC 26 Rule, 135

Gantt chart, 163

German manufacturing, and global customer, 148

Global exporters/importers, 106

Good manufacturing practice (GMP), 118–119

Great trade program, elements of, 105–111

    automation tools, 108–111

    broker management, 107

    free trade agreements, 106–107

    people, 105–106

    process, 106–108

    regulatory partnerships, 108

 

Harmonized Commodity Description and Coding System (HS code), 135

Heijunka, 84, 85

Histograms, 161–162

Human factor, 2–3

 

Importer Security Filing (ISF), 100

Inactive, obsolete, and surplus (IOS) inventories, 50

Income statement. See Profit and loss (P&L) statement

Insource versus outsource decision matrix, 22–23

Inspections, 117

International Society for Pharmaceutical Engineering (ISPE), 118

International trade, 103

Inventory, xix, 70–71

    in balance sheet, 15

    types of, 71

Inventory-carrying cost, components, 16–17

Inventory Control and Recordkeeping System (ICRS), 110

 

Jidoka, 86–87

Just in Time (JIT) Production, 81, 83–84

 

Kaizen, 87, 120, 153–154

Kanban, 71, 81, 84–85

 

Labor analysis by region/country, 23–24

Leadership, 8–9, 124–125

    defined, 8

Leading indicators, 59–60

Lean, 81–88

Logistics, 97–102

    costs, 45

    introduction to, 97–98

    project Big Bowl, 99–102

    providers, 128

    quality, cost, and delivery, 98–99

    three pillars of, 99

Long-term forecasts, 56

 

Make-to-order manufacturing, 67

Make-to-stock manufacturing, 67

Managing supplier relationships, 92–93

Manufacturer, 127

Manufacturing, 66–69

    costs, 44

    key role, 67

    supply chain with, 68

    types of, 67

Mapping, 21

Marketing costs, 45, 92

Material planning, 66

Materials management, 69–70

Materials resource planning (MRP) system, 71, 73–76, 146–147

    data integrity and, 147–148

Matrix diagrams, 163

Maturity stages versus time, 42

Milk-run pickups, 95

Mistake-proofing. See Poka-yoke

Mistakes, 122, 141–143

Mitigation, 53

Modeling, 22

Muda, xxi, 83

Muir, Robert, 99

Multidimensional metrics, 60–61

 

Nakajima, Seiichi, 120

Net weight, 106, 110

Network design, 99

New product introduction (NPI), 47, 52

    and SIOP process, 48

 

Ohno, Taiichi, 80, 81, 90

On-the-job training, 7

“one-piece flow”, 85

Order fulfilment, 30, 134

Organizational effectiveness, 6–9

    leadership, 8–9

    recruitment, 6–7

    retention, 7–8

    training, 7

Organization’s values, 2–3

Outputs, defined, 55

Overall equipment effectiveness (OEE), elements of, 121–122

 

Pareto chart, 160–161

Pareto, Vilfredo, 160

People, process, and tools, 1–12

    company values, principles, and strategy, 2–6

    methodology based on, 35–38

    organizational effectiveness, 6–9

    overview of, 1

    St John Ambulance, case study, 9–12

Performance, defined, 122

Performance evaluations, 5–6

Plan-do-check-act (PDCA) process, 155–157

Poka-yoke, 118

Portfolio management, 43–52

    beginning-of-life process, 47–50

    defined, 43

    elements for, 51

    end-of-life process, 50–51

    product cost, 44–45

    product review, 45–46

Prioritization matrices, 163

Problem-solving tools, 158–163

    A-3 format, 158

    control charts, 162–163

    fishbone chart, 159

    flowchart, 159–160

    histograms, 161–162

    Pareto chart, 160–161

    run charts, 161

    scatter diagrams, 162

Process flow diagram. See Flowchart

Process optimization, 99

Procurement costs, 45

Product development, costs involved in, 44–45

Product lifecycle management, 45–46

Product rationalization, 48–49

Production planning, 39–40

Productivity machine, building, 153–163

    5 Whys technique, 158–159

    plan-do-check-act process, 155–157

    problem-solving tools, 158–163

    team assembling, 157–158

Profit and loss (P&L) statement, xix, 17

Project Big Bowl, 99–102

Pull system, 85

    versus push system, 71–73

Push versus pull system, 56, 71–73

Pyramid, trade, 104–105

 

Quality, 117–122

    control, 117

    defined, 122

    good manufacturing practice, 118–119

    manufacturing maintenance control, 120–121

    overall equipment effectiveness, elements of, 121–122

Queue time, 66

Quote sheet, 90

 

Radar charts, 163

Raw material purchases, 149–150

Reconciliation, defined, 77

Recruitment, 6–7

Regression analysis, 59

Regulatory partnerships, 108, 128–129

Replenishment systems, 72

Resiliency, 123, 129

Retention, employee, 7–8

Right process for business, 18–20

Risk, 53, 124, 129, 130. See also Business interruptions

Route sheet, 66

Run charts, 161

Run time, 66

 

Sales costs, 45, 92

Sales, inventory, and operations planning (SIOP) process, 35–38

    for business management, 41–42

    cycle of events, 36, 44

    and new product introduction, 48

Scatter diagrams, 162

Servant leadership, 8

Setup time, 66

Shareholder value, 13

Shipments process, logistics, 97

Short-term forecasts, 56

Simultaneous indicators, 60

Six Sigma, 11

Sourcing, 89–95, 127–128

    case study, 93–95

    cost management, 90–91

    managing supplier relationships, 92–93

    mission of, 90–92

    sales and marketing costs, 92

Stage gate review process, 47

Statistical process control (SPC), 81

Stock-keeping units (SKU) rationalization process, 49

Supplier, 127

Supplier development, case study, 93–95

Supply chain, xxi–xxii, 13–31

    cash-to-cash cycle, 17

    defined, xxii

    description of, 17–18

    designing right process for business, 18–20

    elements, 19–20

    finance’s role in, 14–17

    introduction to, 13–14

    with manufacturing, 68

    technology and, 143–144

    tool, selection of, 20–24

    of vitamin, case study, 25–31

Supply chain security, 125–132

    customer care/order management, 127

    cybersecurity, 129–130

    facilities, 127

    logistics providers, 128

    manufacturer/supplier, 127

    regulatory partnerships, 128–129

    sourcing, 127–128

Supply planning, 63–76

    inventory, 70–71

    manufacturing, 66–69

    materials management, 69–70

    materials resource planning, 73–76

    push versus pull system, 71–73

 

Takt time, 68, 86

Taobao, 137

Tariff code, 106, 110

Tax, 111

Team assembling, 157–158

Technology, and supply chain, 143–144

Tencent, 135

Tencent’s WeChat, 137

The Theory of Constraints, 69

360-degree evaluation process, 6

Tools, 141–151

    business continuity, 150–151

    enterprise resource planning, 144–148

    German manufacturing and global customer, 148

    insource versus outsource decision matrix, 22–23

    labor analysis by region/country, 23–24

    mapping, 21

    mistakes, ultimate teacher, 141–143

    modeling, 22

    process automation, 108–111

    raw material purchases, 149–150

    technology and supply chain, 143–144

    total acquisition cost model, 22

    trade, administration of, 150

Total acquisition cost (TAC) model, 22, 91

Total Productive Maintenance (TPM) system, 120–121

Toyoda, Eiji, 80, 81

Toyoda, Kiichiro, 80, 81

Toyota Production System (TPS), 1, 81–88

    fundamentals, 83–87

    Jidoka, 86–87

    Just in Time production, 83–84

    Kaizen, 87

    Kanban, 84–85

    Takt Time, 86

    visual control, 86

Trade, administration of, 150

Trade and compliance, 103–115

    automation tools, 108–111

    Brazilian trade management, case study, 111–115

    great trade program, elements of, 105–111

    trade pyramid, 104–105

Trade pyramid, 104–105

Training, employees, 7

Tree diagrams, 163

 

UnionPay, 137

United States e-commerce market, 133–134

 

Value stream mapping (VSM), 156

Value streams, xx, 31

Vendor-managed inventory (VMI) system, 71, 73

Vietnam, e-commerce, 135–137

Visual control, 86

 

Year-over-year (YOY) versus P&L activities, 17

 

Zero defects, 117–118