APICS - CSCP 2020 Module 1 Section B

The key processes that supply chain managers need to be able to perform related to designing the supply chain are

• Identifying customer and business requirements

• Identifying the current and future states

• Performing a gap analysis between the current and future states

• Developing an action plan to close gaps.

The following is a general overview of these processes. The information required to plan and execute these processes is presented in this sections chapters.

The process of identifying the current and future states involves the following steps:

• Collecting historical data for several periods up to the present on

  • Actual inventory levels per location and in transit

  • Inventory ordering methods and communications

  • Actual transit times and costs

  • Facility costs

  • Efficiency, responsiveness, and other metrics and key performance indicators

  • Technology usage, usefulness, and administrative costs

• Mapping process flow for manufacturing and logistics for current products

• Analyzing inventory trends and ordering methods

• Modeling the supply chain in its as-is state using mathematical models, process flowcharts, and descriptive techniques

• Developing a product or service design future state that will accommodate customer and business requirements and supply chain strategy

• Using supply chain network optimization tools such as network modeling and operations research to design a supply chain that meets strategic goals including responsiveness and efficiency

• Developing a technology model for desired information flows, analytic support, and electronic business

• Communicating the product/service and supply chain designs to stakeholders and gathering feedback

• Getting approval for the finalized designs

• Documenting the finalized designs

The process of performing a gap analysis between the current and future states involves the following steps:

• Comparing the as-is to the to-be state to determine needed changes to

  • Suppliers

  • Supplier contracts and expectations

  • Collaboration agreements and processes

  • Facilities (e.g., opened, closed, modified, relocated)

  • Product or service design

  • Production process flows and production lines

  • Processes, policies, and procedures that incorporate continuous improvement and other forms of responsiveness

  • Transportation modes or providers

  • Inventory policy and ordering methods

  • Technologies (adding or retiring)

  • Communications policies or procedures

  • Metrics to provide incentives to align with strategy

• Estimating the scope of the changes and time and cost involved

• Performing a feasibility study and financial analysis to determine the return on investment

• Preparing a business plan and getting executive approval for it

The process of developing an action plan to close gaps involves the following steps:

• Planning how to develop continuous improvement philosophies in ongoing operational processes, policies, and procedures

• Planning how to communicate and manage change initially and over the long term

• Developing project charters for all changes to be implemented as projects

• Getting approval and funding for each project charter, including the authority to plan projects and expend funds

• Planning each project to define the integration, scope, schedule, budget, quality, and how to manage human resources, communications, risks, procurements, and stakeholders

• Planning the execution, monitoring and controlling, and closing process groups for each project

Note that implementing action plans involve the following steps:

• Communicating and receiving feedback

• Executing, monitoring and controlling, and closing projects using project management

• Using change management to change the culture and ensure that project results become standard operating procedure

Change management is an important part of planning and implementing action plans but is addressed in a later section on continuous improvement.