MGMT614 Official Handouts

Supply Chain Management –MGMT614 COMPLETE

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LECTURE 1

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If your career path has already provided you with an opportunity to witness and be a part of the formulation and implementation of important strategies pursued by your enterprise you are already aware of the importance of customer requirements. On the other hand, if you are contemplating a strategic job after completing your MBA, you may have already started to notice in your lectures and text books that organizations pay attention to what the customers have to say. And, it should not come as a big surprise to you that in most of the cases the primary driver of these strategies is Customer Satisfaction. As a matter of fact, Customer Satisfaction is now a global strategic objective and should be aimed for at cost effectiveness. This strategy is contingent upon smooth coordinated flow of raw materials, transformed finished goods (services), information and off course Cash Flow. In other words a business can only be considered successful if it has a competitive supply chain that can result in Competitive Advantage. It would be to your benefit to study this class with the same objective in mind. Please do understand that you are not alone in this regard, business managers all over the globe whether working for any small or nascent, gigantic or established organization, are made to work relentlessly with the same aim and objective of cost effective based customer satisfaction through smooth coordinated Supply Chain.

Supply Chain Management has emerged, in the last 25 years or so, as a road map to Enterprise Success and Competitive advantage. Integration of functional areas of the enterprise is possible through proper management and control of Supply Chain Operations. Information Technology (IT) plays a vital role in seamless integration of Supply Chain.

Decisions in Supply Chain are mostly based on Information Technology (IT). This is possible due to IT ensuring access to real life data. The fine tuning of the information that is collected is processed and distributed at various decision making points along the supply chain.

If you are planning to become one or already working as a business manager in the functional areas of Marketing, Operations or Procurement, the importance of SCM can be readily understood. Supply Chain encompasses all functional areas of enterprise.

This course would help the business manager/ virtual university student or manager in training to develop the important skill of qualitative and quantitative analyses.

This means you would be applying directly or indirectly the four generic Supply Chain strategies of optimization, customization, innovation and Rationalization.

1. The current managerial perspective of competitive advantage entails that we do not carry out static comparison of an enterprise with another enterprise (or COMPARING its product or service being offered with the product or service of its competitor) rather we now carry out the COMPARISON OF A SUPPLY CHAIN OF AN ENTERPRISE WITH THE SUPPLY CHAIN OF THE COMPETITOR’S ENTERPRISE.
2. So for the whole semester the VIRTUAL UNIVERSITY STUDENT SHOULD try to identify and accept all those opportunities that would allow him or her to gain an in depth knowledge about Supply Chain’s functioning with respect to its own enterprise and its competitor’s firm.

The Learning Objectives are covered in the form of distinct and unique modules in each and every lecture. The modules are not of any fixed duration or length rather the duration is contingent to the length, depth, qualitative and quantitative based content. For this lecture number 1, the following modules have been designed to address the respective learning objectives.

Module 4: Learning Methodologies

Module 5: Generic Supply Chain Module 6: Pakistan’s place in Comity of Nations

MODULE 1: WHY THIS COURSE?

Supply Chain Management is an essential and indispensable area of management that business executives are bound to learn and practice.

1. The objective in this course is specifically to help the students understand, appreciate and, consequently, develop purchasing, logistics and supply chain strategies that contribute positively to overall business objectives of their organizations.
2. The same objective should ideally meet the routine and non-routine situations (with few exceptions), with practical, rigorous and thorough approach.
3. This course will introduce concepts and techniques which will enable the student to comprehend and make good use of, in his or her practical job engagements and assignments as purchasing, supply chain management, sourcing management, sourcing management and other similar titles like logistics or transportation managers.
4. Having an understanding of Sourcing, Logistics and Supply Chain Management is critical for today’s business leaders.
5. After successful completion students of this course would be in a position to replicate (adopt) successful and avoid the failed supply chain strategies experienced by business enterprises, around the globe.

At the end of the course, you (the virtual university student) should be able to accomplish the following objectives:

a. Develop an Understanding of the importance of Purchasing, Logistics and Supply Chain Management in the critical decision making process of any organization (manufacturing or services) and or for any government department.

b. Get familiarized with various production processes and service systems affected by Purchasing and SCM.

c. Develop an ability to identify what makes a specific issue important to contracting and procurement. Carry out research and analyze recognized or promising subject in the field of contracting and procurement.

d. Expand on the new issues related to strategic policy in contracting and procurement.

e. Develop Cognitive, Affective and Psychomotor approaches about Supply Chain Management with respect to building of a strategic framework, designing of the supply chain, planning demand and supply in the Supply Chain, Planning and Managing Inventories in the Supply Chain, Managing Cross functional drivers in a supply chain and applying all the same to the Pakistani Corporate and Government Departmental Environment

f. And last but not the least investigate theoretical and practical Supply Chain approaches that organizations have adopted or are planning to adopt with a point of view to enhance their business performance in the future.

The first 9 Lectures have been developed from listed books; whereas Chapters 10 to 45 have been developed primarily using Chopra and Meindl’s Supply Chain Management text.

The content of the modules has been developed from the following textbooks as the source material.

BUSINESS LOGISTICS MANAGEMENT

RONALD H BALLOU

Business Logistics Management textbook, by Ronald H Ballou, is an ideal resource for professionals who want to outshine in Business Logistics, Physical Distribution, Operations Management, Materials Management, and Supply Chain Management.

Students would learn the planning, organizing, and controlling of such activities as transportation, inventory maintenance, facility location, order processing, purchasing, warehousing, materials handling, packaging, customer service standards, and product scheduling-is specifically designed to help students solve actual challenges that they will encounter in today's marketplace. Practicing managers can make effective use of basic decision making tools; a lot of mathematical and quantitative support is available for cost reduction and strategic initiatives. Log ware software is also available on CD-ROM, which can be used by SCM professionals in Pakistan to develop

in house logistics solution with respect to Pakistani roads and means of

transportation.

PURCHASING & SUPPLY CHAIN MANAGEMENT

LYSONS AND FARRINGTON

Lysons & Farrington is a fundamental purchasing knowledge resource. This book is an ideal source if the student is interested in opting for a Purchasing Sourcing and Procurement career in the UK or the Middle East. It is one of the more comprehensive textbooks on Purchasing & Supply Chain management currently available. Clearly written and covering a wide range of information, models and definitions, this book is an ideal overall resource for any course in Purchasing or Supply Chain Management. The contents clearly cover the syllabus of the Chartered Institute of Purchasing and Supply at both the Foundation and Professional stages and the text will provide a quick source of reference for practitioners on many aspects of purchasing and supply. Virtual University students working in the government departments may use this textbook to renew the old procurement procedures and transform them into current purchasing and supply chain management methods.

ESSENTIALS OF SUPPLY CHAIN MANAGEMENT

MICHAEL E HUGOS

Essentials of Supply Chain Management, 2nd Edition, by Michael E Hugos, is focused on how supply chain managers can learn to utilize technology to boost efficiency and responsiveness, implement IT and adopt best practices available for supply chain management. The text also offers new cases. It helps the student in learning the strategies of creating an effective supply chain that is actually a key to staying ahead in today's complex business world.

PURCHASING & SUPPLY CHAIN MANAGEMENT

HANFIELD & GUINIPERO

This text book represents best practices and research with respect to purchasing and supply chain. It captures professional experience and research to further enhance managerial perspective of the core tasks and challenges required to effectively manage the purchasing function within the context of an integrated supply chain. Please do remember that the Purchasing function is now slowly, but surely assuming a strategic stature in the government departments of Pakistan. All these job opportunities would require you to master the art and science of purchasing, supply management and supply chain management.

OXFORD ATLAS PAKISTAN

Every important aspect of Pakistan’s geography is covered in detailed and clearly presented maps, including especially designed maps and graphs for crops, irrigation, energy, main industries, education and literacy, population, main cities, rural settlements, transport, natural hazards, and environmental damage.