ENCYCLOPEDIA OF SUPPLY CHAIN MANAGEMENT VOLUME I JAMES B. AYERS. CRC Press Taylor & Francis Croup Boca Raton London New York
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1 ENCYCLOPEDIA OF SUPPLY CHAIN MANAGEMENT VOLUME I JAMES B. AYERS CRC Press Taylor & Francis Croup Boca Raton London New York CRC Press is an imprint of the Taylor Sc Francis Group, an informa business AN AUERBACH BOOK
2 Contents Topical Table of Contents Preface Acknowledgments Acronyms Source Material About the Editor-in-Chief xxi xxxix xli xliii xlix li Volume I Activity System Methodology / James B. Ayers 1 Activity-Based Costs / James B. Ayers and Mary Ann Odegaard 6 Activity-Based Costs: Implementation / Douglas T. Hicks 15 Activity-Based Costs: Product Price Adjustments / James B. Ayers and Mary Ann Odegaard 18 Available-to-Promise and Capable-to-Promise (ATP/CTP): Distinguishing Network Features / Charles C. Poirer 23 Available-to-Promise and Capable-to-Promise (ATP/CTP): Validation and Planning / Charles C. Poirer 26 Benchmarking: Role / Paul Husby and Dan Swartwood 29 Bicycle Manufacturer's Internet Strategy: Case Study / Charles A. Cox 34 Buffer Management: Traditional TOC Approach / Eli Schragenheim, H. William Dettmer, and J. Wayne Patterson 37 Business Practice and Performance / Eli Schragenheim, H. William Dettmer, and J. Wayne Patterson 41 Business Travelers / Thomas A. Cook 52 Businesses Inside the Business: Definition / James B. Ayers 53 Businesses Inside the Business: Retail Supply Chains / James B. Ayers and Mary Ann Odegaard 56 Buyer Metrics for Performance Improvements: Case Study / David Malmberg 61 Capability Assessment / James B. Ayers 65 Cash Flow and Performance Measures / Lawrence D. Fredendall and Ed Hill 69 Cause and Vision / Paul Husby and Dan Swartwood. 76 Change Management: Functional Roles / James B. Ayers 77 Change Management: Locking In / James B. Ayers TVTT Change Management: Model / James B. Ayers 83 Closed Loop Supply Chain: Commentary / Mark E. Ferguson and Gilvan C. Souza 86 Closed-Loop Supply Chain: Environmental Management / Vishal Agrawal andl. Beril Toktay 89 Closed-Loop Supply Chain: Interdisciplinary Research / Vishal Agrawal and L. Beril Toktay 97 Collaboration / James B. Ayers 106 Collaboration Models: CPFR / Charles C. Poirer 110 Collaboration Models: CPFR Implementation / Charles C. Poirer 114 Collaboration Strategy Implementation / James B. Ayers 119 Collaboration: Examples / James B. Ayers 124 Collaboration: Product Design / Charles C. Poirer 126 Collaboration: Strategic Sourcing / Charles C. Poirer 130 xiii
3 xiv Contents Volume I (cont'd) Collaborative Relationships Template: 1. Plan Organization / James B. Ayers 132 Collaborative Relationships Template: 2. Acquire Staff / James B. Ayers 137 Collaborative Relationships Template: 3. Organize for Activity System Implementation / James B. Ayers 138 Collaborative Relationships Template: 4. Implement Metrics / James B. Ayers 142 Collaborative Relationships Template: 5. Control Schedule / James B. Ayers 145 Communications Management / James B. Ayers 147 Competitive Advantage / Lawrence D. Fredendall and Ed Hill 149 Compliance and Security: Trading Partners / Thomas A. Cook 153 Compliance Program / Thomas A. Cook 162 Constraints Management and Synchronization / Lawrence D. Fredendall and Ed Hill 167 Consumption, Capacity, and Commonality (3C): MRP II (Material Requirements Planning) Alternative / James B. Ayers r Container Security Update: 2007 / Thomas A. Cook 175 Continuous Improvement Imperative / Paul Husby and Dan Swartwood 185 Corporate Social Responsibility (CSR) and Strategy: Retail Change Driver / James B. Ayers and Mary Ann Odegaard : 188 Corrupt Practices Act / Thomas A. Cook 192 Cost Management / James B. Ayers 194 Cost Reduction: Multicompany Efforts / James B. Ayers and Mary Ann Odegaard 196 Cost Visibility: Retail Supply Chains / James B. Ayers and Mary Ann Odegaard 206 Customer Linkages / James B. Ayers > 209 Customer Order Process Improvement: Action Plans / Charles C. Poirer 212 Customer Relationship Management (CRM): Business Case / Charles C. Poirer 219 Customer Relationship Management (CRM): Database Analysis / Charles C. Poirer. 223 Customer Relationship Management (CRM): Implementation / Charles C. Poirer 226 Customer Relationship Management (CRM): Implementation Shortfalls / Charles C. Poirer 233 Customer Relationship Management (CRM): Keys to Success / Charles C. Poirer 236 Customer Value: Assessment / Paul Husby and Dan Swartwood. 238 Customer Value: Creation / Paul Husby and Dan Swartwood 240 Definitions / James B. Ayers 241 Demand Management / Lawrence D. Fredendall and Ed Hill 246 Demand Management: Customer Linkages / Lawrence D. Fredendall and Ed Hill 250 Demand: Nature of / James B. Ayers 251 Demand-Driven Supply Chain / James B. Ayers 253 Demand-Driven Supply Chain: Path to the Retail Market / James B. Ayers and Mary Ann Odegaard. 261 Demand-Driven Supply Chain: Vision for the Retail Market / James B. Ayers and Mary Ann Odegaard.265 Design and Manufacturing: Partner Collaboration / Charles C. Poirer 272 Design: Case Study / Paul Husby and Dan Swartwood 276 Design: Effective / Paul Husby and Dan Swartwood 288 Dimensions of the Supply Chain Effort / Charles C. Poirer 292 Discovery-Driven Planning / James B. Ayers 296 Distributor's Role: Case Study / Don Derewecki and Emile Lemay 298 Drivers and Barriers / Lawrence D. Fredendall and Ed Hill 301 Drivers of Change / James B. Ayers \ 303 Drum-Buffer-Rope (DBR): Traditional Approach / Eli Schragenheim, H. William Dettmer, andj. Wayne Patterson 311
4 Contents Drum-Buffer-Rope: Simplified Approach (S-DBR) / Eli Schragenheim, H. William Dettmer, andj. Wayne Patterson 313 Drum-Buffer-Rope: Simplified Approach (S-DBR) Complications / Eli Schragenheim, H. William Dettmer, andj. Wayne Patterson 324 Drum-Buffer-Rope: Simplified Approach (S-DBR) Enhancement / Eli Schragenheim, H. William Dettmer, andj. Wayne Patterson 340 Drum-Buffer-Rope: Simplified Approach (S-DBR) Making to Availability / Eli Schragenheim, H. William Dettmer, andj. Wayne Patterson 350 Emerging Partnership Model / James B. Ayers 368 Enablers of Change: Cultural / Paul Husby and Dan Swartwood. 372 Enablers of Change: IT Systems / Paul Husby and Dan Swartwood 375 Enablers of Change: Leadership / Paul Husby and Dan Swartwood 377 Enablers of Change: Metrics / Paul Husby and Dan Swartwood 379 r' Enablers of Change: Skills / Paul Husby and Dan Swartwood 381 Engineering and Manufacturing: Linked Processes / Charles C. Poirer 383 Environmental Legislation / Atalay Atasu and Luk N. Van Wassenhove 384 Environmental Legislation: Operations Management Perspective / Atalay Atasu and Luk N. Van Wassenhove 389 Evolution of Supply Chain Management / Lawrence D. Fredendall and Ed Hill 393 Export Compliance / Thomas A. Cook 396 Extended Product Design: Retail Change Driver / James B. Ayers and Mary Ann Odegaard. 403 Extended Products / James B. Ayers 405 Failed Supply Chain Initiative: Case Study / Louis J. DeRose 407 Financial Analysis: Financial Success in Retailing / James B. Ayers and Mary Ann Odegaard. 409 Financial Performance / Lawrence D. Fredendall and Ed Hill 414 Flexibility / James B. Ayers 416 Flow versus Batch / James B. Ayers 420 Food and Drug Administration (FDA) and Environmental Protection Agency (EPA) Regulation / Thomas A. Cook 423 Food and Drug Administration (FDA): Record Keeping for / Thomas A. Cook 425 Forecasting: Customer Linkages / Lawrence D. Fredendall and Ed Hill 427 Forecasting: Weaknesses / Charles C. Poirer 433 Foundation for Knowledge: Five Tasks / James B. Ayers : 439 Globalization / James B. Ayers 457 Globalization: Impact / James B. Ayers 459 Globalization: Retail Change Driver / James B. Ayers and Mary Ann Odegaard 467 Hazardous Materials / Thomas A. Cook. 468 Hospital Reverse Supply Chain: Case Study / Rajesh K. Tyagi, Stephan Vachon, Sylvain Landry, and Martin Beaulieu 473 Human Resources in Transition / Charles C. Poirer 479 Human Resources Management / James B. Ayers 480 Implementation: Manufacturing Plant Case Study / Paul Husby and Dan Swartwood 482 Importation and Sourcing / Thomas A. Cook 499 Improvement Disciplines: Merging / Charles C. Poirer 508 Inadequate Technical Capability: Project Failure Root Cause / James B. Ayers 511 Incoterms / Thomas A. Cook 514 Information Technology Industry: Best Practice Tools / James B. Ayers 517 Information Technology Project: Lessons Learned / James B. Ayers 523 Information Technology: Engine for Change / Charles C. Poirer 524
5 xvi Contents Volume I (cont'd) Inherent Simplicity: Planning to Execution / Eli Schragenheim, H. William Dettmer, andj. Wayne Patterson 525 Innovation: Retail Change Driver / James B. Ayers and Mary Ann Odegaard 529 Insufficient Flexibility: Project Failure Root Cause / James B. Ayers 532 Integration Management / James B. Ayers 534 Inventory Management / Lawrence D. Fredendall and Ed Hill 536 Just in Time (JIT) and Pull Systems / Lawrence D. Fredendall and Ed Hill 542 Keiretsu: Formation / Charles C. Poirer 547 Keiretsu: Network Roles for Technology / Charles C. Poirer 553 Leadership Champion / Paul Husby and Dan Swartwood 556 Lean Supply Chain Consolidation Centers: Case Study / Michel Baudin 557 Lean System Improvement Methodology / Paul Husby and Dan Swartwood 562 Lean: Strengths and Limitations / Paul Husby and Dan Swartwood 567 Logistics / Lawrence D. Fredendall and Ed Hill 569 Logistics Improvement: Case Study / Charles C. Poirer 572 Logistics: Advanced Levels of Maturity / Charles C. Poirer 575 Logistics: Maturity at Levels 4 and 5 / Charles C. Poirer. '. 579 Maintenance / Paul Husby and Dan Swartwood 583 Maintenance, Repair, and Overhaul Operations: Case Study / Crispin Vincenti-Brown 586 Make-to-Availability (MTA), Make-to-Stock (MTS), and Make-to-Order (MTO) Issues / Eli Schragenheim, H. William Dettmer, andj. Wayne Patterson 590 Management Tasks / James B. Ayers ; 599 Market Environments / Lawrence D. Fredendall and Ed Hill 601 Market Mediation Costs / James B. Ayers 606 Material Flow: Little's Law / Lawrence D. Fredendall and Ed Hill 608 Materials Requirements Planning (MRP) / Lawrence D. Fredendall and Ed Hill 610 Maturity Levels: Logistics Models / Charles C. Poirer 614 Maturity Levels: Moving Up / Charles C. Poirer.619 Maturity Levels: Supply Chain Evolution / Charles C. Poirer 622 Maturity Models / James B. Ayers 627 Merchandise Budgeting: Financial Success in Retailing / James B. Ayers and Mary Ann Odegaard 636 Methodologies: Implementation Barriers / Paul Husby and Dan Swartwood 643 Metrics: Retail Supply Chains / James B. Ayers and Mary Ann Odegaard 645 Models: Purchasing, Procurement, and Strategic Sourcing / Charles C. Poirer. 654
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