CPET 575 Management Of Technology. Value Chain & Supply Chain Supporting & Enabling Technologies
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1 CPET 575 Management Of Technology Value Chain & Supply Chain Supporting & Enabling Technologies November 4, 2010 Paul I-HaiI Lin, Professor M.S. Technology - IT and Advanced Computer Applications & Industrial Technology/Manufacturing Purdue University Fort Wayne Campus 1 Topics of Discussion Value Chain & Enabling Technologies Supply Chain & Enabling Technologies 2
2 Value Chain & Technologies Value Chain Competitive Advantage,, 1985, by Michael E. Porter, The Free Press, ISBN Competitive Strategies Representative Technologies in a Firm s s Value Chain, page 3 Technological Policies and Generic Competitive Strategies Product Tech. Change Process Tech. Change Overall cost leadership Product dev. to reduce prod. cost by lowering materials content Facilitating ease manufacturing Simplifying logistical req. Learning curve process improvement Process improvement to enhance economics of scale Focus-seg. cost Overall diff. leadership Technological Policies Product dev. to enhance quality, features, deliverability, or switching costs Process dev. to support high tolerance Greater QC More reliable scheduling Faster response time to orders Others Product dev. to design only enough performance for the segment s needs Product dev. to tune production and delivery system to seg. needs in order to lower cost 4
3 Representative Technologies in Firm s s Value Chain (from Part I, page 8) 5 Value Chain Technologies Inbound Logistics - Technologies Transportation Technology Material Handling Technology Storage and Preservation Technology Communication System Technology (Wired & wireless) Testing Technology Information System Technology (RFID) 6
4 Value Chain Technologies Operation - Technologies Basic Product Technology Material Technology Material Handling Technology Packaging Technology Maintenance Methods Testing Technology Building Design, Operation Technology Information System Technology (Communication System Technology: Wired & wireless newly added) 7 Value Chain Technologies Outbound Logistics - Technologies Transportation Technology Material Handling Technology Packaging Technology Communication System Technology (wired & wireless) Information System Technology (RFID) 8
5 Value Chain Technologies Marketing/Sales - Technologies Media Technology Audio and Video Recording Technology Communication System Technology Information System Technology 9 Value Chain Technologies Services - Technologies Media Technology Audio and Video Recording Technology Communication System Technology Information System Technology 10
6 Value Chain Technologies New Supporting Technologies Media Technology Multimedia, Web media Audio and Video Recording Technology High Definition Video Conferencing (HDVC) Communication System Technology TCP/IP, Internet, , e wired & wireless connection and devices: RFID, sensors, etc Information System Technology Enterprise Resource Planning, Manufacturing Management, Supply Chain Management, Sales-Force Management, Customer Relationship Management 11 Value Chain Technologies Video Conferencing & Collaboration Video Conferencing Cisco Collaboration, Cisco TANDBERG, Polycom Telepresence,, Voice and Video Conference, Sony Video Conferencing, broadcastvideoconferencing/ broadcast/mkt-broadcastvideoconferencing Logitech LifeSize Video Conferencing - Panasonic HD Visual Communications System, WSJ Ad 11/4/2010, 12
7 Value Chain Technologies Video Conferencing & Collaboration Internet/Web Video Conferencing Adobe Connect Web conferencing for the enterprise, Cisco WebEx Web Conferencing, Video & Web Conferencing, Nefsis Video Conference Software, Microsoft Office Live Meeting IBM LotusLive Engage, p ivisit,, (free), Skype, 13 Value Chain Technologies Information Technology Enterprise IT Systems Enterprise Resource Planning (assets, financial resources, distribution, materials, human resources, product lifecycle management, Decision support) Manufacturing Resource Management Sales-Force Management Customer Relationship Management (CRM) Supply Chain Management (purchasing, manufacturing, distribution) Warehouse Management Major Software Vendors 14
8 Value Chain Technologies Information Technology Major ERP Software Vendors SAP, suite/erp/index.epx Oracle (PeopleSoft Enterprise, JD Edwards Enterprise), Epicor ERP, Microsoft Dynamic, us/dynamics/why-dynamics.aspx dynamics.aspx 15 Medical Device Manufacturer An Example 16
9 Enterprise IT Application Integration Medical Device Manufacturing 17 Mobile Agent Sales Automation Medical Device Manufacturing 18
10 Mobile Agent Sales Automation Medical Device Manufacturing Inventory Data Item Details Customer Data PC Customer Orders Invoices; Status Orders Status Process Order Approval Error Customer Service Error PC Sales Mobile Agent Sales Automation System (Context Diagram) 19 Mobile Agent Sales Automation 20
11 Supply Chain Management & Technologies Supply Chain Management concerns Suppliers Transportation & Logistics Credit and Cash Payment (Transfers) Distributers Account Payables and Receivable Warehousing & Inventory Order Fulfillment Information Sharing: Customer, Forecasting, and Production 21 Supply Chain Management & Technologies Supply Chain Management Topics 1 Supply chain risk and management Supply chain economics: Supply chain cost (52% as a percentage of sales 79%) Make-or or-buy decision Outsourcing Supply-Chain Strategies Many suppliers, Few suppliers Vertical integration: Raw materials Finished goods Joint venture Keiretsu networks ( 系列取引 ) Virtual companies (on-demand) 1 Operations Management, 1oth ed, by Jay Heizer and Barry Render, Prentice Hall 22
12 Supply Chain Management & Technologies Supply Chain Decision Strategies 1 What is the Right Supply Chain for Your Product? Marshall L. Fisher, Harvard Business Review, March- April Strategies: Low-cost Strategy Response Strategy Differentiation Strategy Six Factors (goals, criteria, characteristics): Supplier s s Goal, Primary Selection Criteria Process Characteristics, Lead-Time Characteristics Product-Design Characteristics 23 Supply Chain Management & Technologies Managing Supply Chain 1 Mutual Agreement on Goals Trust Compatible Organizational Cultures Issues in an Integrated Supply Chain 1 Local Optimization Incentives (sales incentives, Quantity discounts, Quotas, Promotions, etc) Large Lots 1 Operations Management, 1oth ed, by Jay Heizer and Barry Render, Prentice Hall 24
13 Supply Chain Management & Technologies Opportunities in an Integrated Supply Chain 1 Accurate Pull Data Lot Size Reduction Single-Stage Stage Control of Replenishment: RFID tags, monitoring and managing inventory Vendor-Managed Inventory Collaborative Planning, Forecasting, and Replenishment Blanket Orders (long-term purchase commitment to a supplier for items..) Standardization Postponement 1 Operations Management, 1oth ed, by Jay Heizer and Barry Render, Prentice Hall 25 Supply Chain Management & Technologies Opportunities in an Integrated Supply Chain (cont.) 1 Drop Shipping and Special Packaging Drop Shipping direct shipping from the supplier to the end customer Pass-through Facility (distribution center) Channel Assembly 1 Operations Management, 1oth ed, by Jay Heizer and Barry Render, Prentice Hall 26
14 Supply Chain Management & Technologies Aggregate Planning, Forecast E-Procurement, Online Catalog, Auctions, Request For Quotes (RFQs( RFQs) Capacity & Level Planning Production/Demand, Workforce/Subcontract, Outsourcing/Vendors Material Requirements Planning Inventory Management Real-Time Inventory Tracking Security and Just-In In-Time 27 Conclusion MIT ESD 290 Special Topics in Supply Chain Management (April 28, 2008, 16 Video presentations), =&p=f f59ba1f0&index=0&playnext=1 28
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