Logistics Management

LOGISTCS SYSTEM DESIGN

Planning and Design Techniques

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LM

DISCUSSION: Planning and Design Techniques  Planning Methodology  Phase I: Problem

Definition and Planning  Phase II: Data Collection and Analysis  Phase III: Recommendations and Implementation

 Supply Chain Analysis Met  Work Application:  UNIONBANK – Cash

Mobilization System

 Something New!

PLA N N IN G M E TH O D O LO G Y

RESEARCH PROCESS

Phase I: Problem Definition and Planning

Phase I: Problem Definition and

Phase I: Problem Definition and

FEASIBILITY ASSESSMENT The objective is to understand the environment, process and performance characteristics of the current system and to determine what, if any, modifications appear worthy of evaluation.

Situational Analysis The collection of performance measures, characteristics and information that describes the current logistics environment. 1. Internal Operational Review 2. Market Assessment 3. Technology Assessment

Supporting Logic The development of a supporting logic to integrate the findings of the internal review, market assessment and technology study. This constitutes the most difficult part of the strategic planning process.

Cost/Benefit Estimate Estimating potential benefits and risks associated with performing a logistics analysis and implementing the recommendation.

Project Planning Any effort to identify and evaluate strategic or tactical alternatives must be planned thoroughly to provide a sound basis for implementing change.

Statement of Objective Documents the cost and service expectations for the logistics system revisions. It is essential that they be stated specifically and in terms of measurable factors. This also defines market segments, time frame and performance expectations.

Statement of Constraints The expected restrictions on the scope of permissible system modifications that top management places.

Measurement of Standard and A Identifying cost assumptions and performance objectives essential to evaluate recommendations.

Project Work Plan On the basis of feasibility and defined objectives, constraints, standards and analysis techniques, a project work plan can be developed.

Phase II: Data Collection and Analysis

Phase II: Data Collection and An

Assumptions and Data Collection Once the feasibility assessment and project plan are completed, Phase II of a network design study focuses on the data collection and analysis. This phase requires assumption definition, data collection, and analysis of alternatives.

Defining Analysis Approaches and Determination of the appropriate analysis technique for the planning situation under consideration. Options available are analytical, simulation and optimization.

Defining and Reviewing Assump Builds the situation analysis, project objectives, constraints. And measurement of standards. Assumptions fall on three classes; 1. Business Assumptions 2. Management Assumptions 3. Analysis Assumptions

Identifying Data Sources Detailed data must be collected and organized to support the analysis. When unnecessary data is difficult to collect, sensitivity analysis should be used to the identify data impact.

Data Collection Assembly of collected data and conversion to appropriate formats for the analysis tool.

Validation Data Base case or validation data must also be collected to verify that the results accurately reflect reality. The objective is to increase the credibility with the management with the analysis process.

Analysis Analysis involves use of the technique and data to evaluate strategic and tactical logistics alternatives. Process includes: 1. Analysis Questions 2. Validating Baseline Analysis 3. Analyses of Alternatives 4. Sensitivity Analysis

Analysis Questions Defines specific analysis questions concerning alternatives and the ranged of acceptable uncertainty. The specific questions build on research objectives and constraints by identifying specific operating policies and procedures.

Validating Baseline Analysis It is the analysis of current business environment. Results should be compared with the validation data collected previously to determine the degree of fit between historical and analytical findings.

Analyses of Alternatives Completing an evaluation of design alternatives. The analysis should determine the relevant performance characteristics for each alternative design or strategy.

Sensitivity Analysis The best performing alternatives can be targeted for further sensitivity evaluation. Here, uncontrollable factors such as demand, factor costs and competitive actions can be varied to assess each alternative’s ability to operate under a variety of conditions.

Phase III: Recommendations and Implementations

Phase III: Recommendations an

High level

Implementation

Detailed Implementation

Recommendation Alternatives and sensitivity analysis results are reviewed to finalize managerial recommendations. This review process includes four tasks; 1. Identifying the best alternatives. 2. Estimating costs and benefits. 3. Developing a risk appraisal and, 4. developing a presentation

Identifying Best Alternatives Identifying the best options to be considered for implementation.

Estimating Costs and Benefits Service improvement, cost reduction and cost prevention.

Evaluating Risk Risk assessment considers the probability that the planning environment will match the assumptions.

Presentation Final presentation that identifies, quantifies and justifies suggested changes.

Implementation Actual plan or design implementation is the final process activity. An adequate implementation plan is critical since putting the plan or design into action is the only means to obtain a return on the planning process.

Defining the Plan Defines the implementation plan in terms of the individual events, their sequence and dependencies.

Scheduling Schedules the implementation and timephases the assignments identified previously. The schedule must allow adequate time for acquiring facilities and equipment, negotiating agreements, developing procedures and training.

Acceptance Acceptance criteria should focus on the service improvements, cost reduction, improved asset utilization and enhanced quality.

Plan Implementation Implementation must include adequate controls to ensure that performance as scheduled and that acceptance criteria are carefully monitored.

RESEARCH PROCESS MAP Feasibilit y Assessment

Phase I Project Planning Assumption s and Data Collection

Phase II Analysis

Development of Recommendation

Phase III Implementati on

SUPPLY CHAIN ANALYSIS MET

Cash Mobilization System RECEIVE CALLS FROM REQUESTING CLIENTS

RECEIVE EMAIL REQUESTS FROM BRANCHES

PREPARE CASH REQUEST

DISPATCH ROVING TELLERS

WORK APPLICATION

Cash Mobilization System

Cash Mobilization System

Cash Mobilization System

Cash Mobilization System

Cash Mobilization System

Cash Mobilization System

SOMETHING NEW

Oracle Logistics

Oracle Logistics

Oracle Logistics

Oracle Logistics

Oracle Logistics

THANK YOU !