CIPS L6M9 Supply Network Design Assignment Sample UAE
The design and leadership of a supply network is crucial to the effectiveness and efficiency. It’s operations processes that form an organisation’s strategic advantage, if materials or information flow through this efficiently adding value in return for their investment
The “design” aspect refers both internally at your own company as well as externally among competing businesses who may want what you have- it ensures clear lines between departments so they know where certain tasks fall within overall goals; while maintaining good relationships with partners helps maintain market share by leveraging expertise when needed most but also to maintain positive relationships with suppliers and customers.
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Assignment Task 1: Assess the meaning of supply network design and the influence that it has on the organisation
Supply network design is the process of designing a supply network that can effectively and efficiently deliver the right product to the right customer at the right time. The goal of supply network design is to optimize the flow of goods through the network so that inventory levels are reduced and customer service is improved.
One of the biggest challenges in supply network design is balancing the need for speed and accuracy with the need for cost efficiency. In order to reduce costs, it’s important to minimize the number of inventory points in the network, while still ensuring that products are available when customers need them. Another challenge is dealing with disruptions in the supply chain, such as natural disasters or supplier failures. A well-designed supply network will be able to quickly adapt to disruptions that affect specific products or suppliers.
The purpose of supply network design is to optimize the flow of goods and materials through the supply chain in order to minimize costs and maximize efficiencies. This can be done by designing an appropriate network structure, selecting the most efficient transportation modes and carriers, and routing goods to meet customer demand.
The influence that supply network design has on the organization can be significant. Properly designed networks can help companies to improve their competitive edge, increase profits, and improve customer satisfaction. However, if the network is not designed properly, it can lead to increased costs, decreased efficiency, and even stockouts.
The terms “supply network” and “supply chain” are often used interchangeably, but they actually have different meanings. A supply network refers to the collection of entities that are involved in the production and distribution of a product or service. This includes suppliers, manufacturers, distributors, and retailers. A supply chain, on the other hand, is the process by which products move from suppliers to customers. It includes the flow of materials, information, and finances along with the associated logistics activities.
The design of a company’s supply network can have a significant impact on its business operations. A well-designed supply network can help improve efficiency and reduce costs. It can also help ensure that products are available when customers need them. A good supply network can be a source of competitive advantage, because companies that have well-designed networks tend to have lower costs and better customer service than their competitors.
Assignment Task 2: Evaluate how a strategic supply chain network should be configured
A strategic supply chain network should be configured with the internet in mind. The internet has had a profound impact on business, referred to as disintermediation. This is the process of eliminating intermediaries from a supply chain.
The traditional model of business involved manufacturers selling to distributors, who then sold to retailers, who then sold to consumers. The advent of the internet allowed businesses to bypass the middleman and sell directly to consumers. This has led to the decline of brick-and-mortar stores and the rise of ecommerce.
As a result, businesses need to configure their supply chains so that they can reach consumers directly through their websites or through online marketplaces such as Amazon or eBay. They also need to be able to provide their customers with multiple delivery options, such as email/SMS notifications, express shipping and in-store pick up.
A strategic supply chain network should be configured to provide the greatest value to the organization by taking into account the four players – suppliers, customers, competitors and complements.
The value net is a tool that can be used to visualize how these players interact with each other. It shows the flow of value between them and can help identify ways to create more value for the organization.
For example, consider a company that sells televisions. The suppliers are the parts manufacturers, the customers are the retailers who sell the televisions, the competitors are other companies who make televisions, and complements are companies who make components that go into televisions.
Assignment Task 3: Assess the influence of capacity on strategic supply chain design
Capacity utilization is a measure of how much of the potential output of a manufacturing or production process is being achieved. A low capacity utilization means that there is unused capacity and resources lying idle, while a high capacity utilization means that the available resources are being fully utilized and there is no spare capacity.
In general, it is desirable to have a high capacity utilization in order to achieve maximum efficiency and economies of scale. However, there are times when it may be more economical to operate at less than full capacity. For example, if the fixed costs of operating at full capacity are very high, it may be more economical to operate at a lower level in order to minimize these costs.
Another factor that needs to be considered when making decisions about operating at full capacity or less than full capacity is the returns to scale for a manufacturing process. Returns to scale refers to whether output expands more rapidly with an increase in resources, or scales down faster when resources are reduced.
Capacity is a very important consideration in strategic supply chain design. A company has to weigh the pros and cons of having large or small capacity in order to make the most efficient and effective decisions for its supply chain.
Advantages of Large Capacity:
- economies of scale (more production leads to lower per-unit costs)
- can better meet high demand periods
- can serve as a hedge against unexpected increases in demand
Disadvantages of Large Capacity:
- higher fixed costs (meaning less flexibility)
- can lead to overproduction and stockouts if demand fluctuates unpredictably or there are unexpected dips in demand
Advantages of Small Capacity:
- lower fixed costs (meaning greater flexibility)
- can lead to better customer service and closer relationships if production varies with demand, instead of being predetermined by the amount of available capacity.
Disadvantages of Small Capacity:
- larger order sizes would have to be placed to meet high demand periods, influencing the total cost of a product
- more difficult to hedge against unexpected changes in demand
In every case, capacity needs to be analyzed on a case-by-case basis. It is not always more efficient and economical to have large capacity. In order for businesses to determine what works best for them, they must consider their own business and operations, and make decisions based on their specific criteria.
Assignment Task 4: Assess the meaning of operations strategy and the impact that it has on the organisation
Operations strategy is the plan and direction of an organization’s operational activity in order to achieve its objectives. The operational activity can be described as the work that needs to be done in order to deliver a product or service to a customer.
There are three main goals of operations strategy: efficiency, effectiveness, and agility. Efficiency is about using resources in the most effective way possible so that the organization can produce more with less. Effectiveness is about delivering the right product or service to the customer at the right time and at the right price. Agility is about being able to quickly adapt to changes in the market so that the organization can stay competitive.
The goal of operations strategy is to ensure that there is alignment between the organization’s objectives and its operational activities. In order for this to happen, it is critical to create an environment where everyone in the organization understands their role in achieving strategic objectives through daily work.
An operations strategy is a plan that outlines the organisation’s approach to producing and delivering its products or services. It can be used to make decisions about things like which facilities to use, what types of processes to employ, how much inventory to carry, and what delivery methods to use.
An effective operations strategy can have a big impact on an organisation’s efficiency and competitiveness. For example, if the organisation decides to produce its products in-house, it will need a facility that is large enough and has the appropriate equipment. If it decides to outsource production instead, it will need a different type of facility altogether.
Assignment Task 5: Evaluate the key elements of an operations strategy
An operations strategy should be based on a clear vision and objectives. The vision should be realistic and achievable, and should take into account the company’s strengths and weaknesses. The objectives should be specific, measurable, achievable, relevant, and time-bound.
The operations strategy should also include a plan for resources (human, financial, and physical), processes (including planning and execution), and performance measurement. The resources plan should identify the necessary resources and allocate them accordingly. The process plan should specify how the work will be done, who will do it, and what tools or equipment they will need. And the performance measurement plan should establish how progress towards the objectives will be tracked and evaluated.
An operations strategy aims to create efficiencies within the business in order to improve performance and better serve customers. The 4 stages model of operations – internal neutrality, external neutrality, customer intimacy, and product leadership – provides a framework for evaluating an organization’s ability to achieve these goals.
Internal neutrality refers to the ability to maintain a consistent level of quality and service regardless of changes in demand or supply. External neutrality means being able to adapt quickly to changes in the market without compromising on quality or service. Customer intimacy is about focusing on the customer’s needs and exceeding their expectations.
And finally, product leadership is about innovation and creating products that are differentiated from those of competitors. By understanding these four stages, businesses can assess their own strengths and weaknesses and develop a strategy that will take them to the next level.
Assignment Task 6: Assess the role of improvement in operations strategy
There are many benefits to continuous improvement in operations strategy. Continuous improvement drives effectiveness and efficiency, which leads to improved financial performance, lower costs, and higher customer satisfaction. In addition, it enables businesses to stay ahead of the competition by continually innovating and improving their products and services. Finally, it creates a culture of continuous learning and growth within an organization.
There are a number of drivers for improvement in operations strategy. Two of the most important are effectiveness and efficiency.
Effectiveness is about doing the right things – achieving the desired outcomes or results. Efficiency is about doing things right – using resources in the most effective way possible to achieve the desired outcomes or results. Both effectiveness and efficiency are important for improving operations performance.
Other important drivers for improvement include: quality, speed, flexibility, and cost. All of these factors need to be considered when trying to improve operations performance.
Operations strategy is all about making trade-offs between different performance objectives in order to improve overall system performance. For example, a company might decide to sacrifice short-term quality objectives in order to increase production volume or vice versa.
There are typically three ways to improve operational performance:
- Improving efficiency
- Improving effectiveness
- Improving agility.
Efficiency improvements reduce the amount of inputs required to produce a given level of outputs, effectiveness improvements increase the amount of outputs produced relative to inputs, and agility improvements allow a company to rapidly adapt to changes in market conditions.
All three approaches are important and should be considered when trying to improve operations performance. However, it’s important to note that all three approaches require trade-offs between different performance objectives. In other words, one approach might improve effectiveness without increasing agility or efficiency, another approach might increase all three objectives, and a third approach might reduce all three performance factors.
Assignment Task 7: Evaluate the concept of strategic resource planning and control
Strategic resource planning and control is the process of assessing, acquiring, and managing resources in order to achieve an organization’s strategic goals. It involves specifying the organization’s resource requirements, ascertaining the availability of those resources, and then allocating or acquiring them in a way that allows the organization to reach its objectives.
Resource planning and control is important because it enables organizations to respond effectively to changes in their environment. By having a clear understanding of their resource requirements and by being able to quickly acquire additional resources when needed, organizations can more easily adapt to new circumstances and take advantage of emerging opportunities.
Resource planning and control also plays a key role in enabling organizations to achieve economies of scale. In order to realize cost- efficiencies from sharing resources, those resources need to be managed as an integrated whole, rather than as a series of individual items or projects.
Strategic resource planning and control is the process of translating customer need into operational delivery. It allows for an understanding of how best to allocate resources, plan production, and manage demand in order to deliver a product or service that meets customer need.
It’s essential for businesses to have a clear understanding of what their customers want and need in order to be able to effectively meet those needs. By taking into account all aspects of the business–from marketing and sales to operations and production–strategic resource planning and control allows for a more holistic view of how the business can most efficiently deliver on customer demand.
Assignment Task 8: Assess the key elements of a resource strategic planning and control system
There are Few key elements to a successful resource strategic planning and control system. Such as:
- Loading is the process of allocating resources to tasks in order to meet the project plan.
- Prioritisation and sequencing is the process of ranking tasks in order of importance so that the most important tasks can be completed first.
- Scheduling is the creation of a timeline for completing tasks.
- Monitoring and control refers to checking that the task has been completed as planned and taking corrective action if it has not.
- The process for loading, prioritization and sequencing, scheduling, monitoring and control are illustrated in this diagram. This is based on the Systems Development Life Cycle (SDLC).
Work Breakdown Structure arises from how you break down your product into its constituent parts. The Work Breakdown Structure should be an output of the system design process that specifies the components, tasks and subtasks required to produce the product.
A key element of a resource strategic planning and control system is the customer interface. The customer interface allows for customers to provide information on demand and receive status updates on their orders. The supply interface allows suppliers to provide information on materials availability, delivery times, and other production issues.
Another key element of a resource strategic planning and control system is the integration with other business functions. This allows for the sharing of critical information such as sales forecasts, inventory levels, and purchasing plans. It also enables better decision making by allowing planners to see the impacts of their decisions across the entire company.
Assignment Task 9: Contrast methods of monitoring and controlling the strategic operation
Controlling strategic operations is more difficult than monitoring them because it requires making predictions about future events and then taking action based on those predictions.
Monitoring operations means observing what is happening in the present and taking action accordingly. This is relatively easy to do because the current situation is right in front of you. It’s a bit like being in a car and looking at the road ahead. You can see what’s coming up and plan your route accordingly.
Controlling operations, on the other hand, means intervening in order to shape future outcomes. It’s like being in a car and looking in the rear-view mirror as well as ahead on the road. You can see where you’ve been and where you’re going, but you can only really control the direction you’re heading.
The problem with spotting problems is that you can easily get bogged down in the minutia of details, rather than stepping back and seeing what is actually going on.
There are two main methods of monitoring and controlling the strategic operation of a business – the Theory of Constraints (TOC) and drum (bottleneck), buffer stock and rope.
The TOC focuses on identifying the constraint in a process and then managing it so that the entire process moves towards the target state. The constraint is the weakest link in the chain, and by managing it, the whole system improves. The drum or bottleneck approach focuses on identifying where there is most congestion in a process and then concentrating resources on resolving that congestion. This can be done by adding extra capacity to the congested area or by diverting resources from other parts of the process.
Web-integrated ERP systems are those that are accessed through a company’s website. This means that all the data related to the business – such as orders, inventory, sales, etc. – is available in one place. This makes it easy to track and control the strategic operation of the company as a whole.
Supply network ERP systems are different in that they monitor and control the strategic operation of a company by tracking the movement of goods through different parts of the supply chain. This type of system is valuable for companies that have complex supply chains with many different parts.
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