Supply Chain Engineering (SCE) describes the desired efficiency and effectiveness. The most important element of SCE is the integral view that manifests
o Local Customization
o Technical
o Information Technology
The engineering character is not only visible in SCE's content but also in its name.
Since SCE is still a very young method, only a few standard works have been published so far; however, Kukkuk C, (Snr) in its opening speech to the South African mining industry by 2015, the SEC site should be considered an upstream practice and should not be a silo business unit, possibly integrated with other major disciplines that form part of the 'value chain' some of the principles we apply are interactive sessions for front end planning, industry lessons, lean optimization strategies and ERP/MRP solution updates "
Therefore the following definition mainly refers to the standard work, "Supply Chain Engineering - integrated logistics planning method", published in July 2010 by Dr. Joachim Miebach and Dominik BÃÆ'¼hring. Here SCE is defined as an independent and comprehensive method for designing the supply chain.
Video Supply chain engineering
Basics and definitions
The SCE method moves along the classic definition of value-added supply chains within, from and between companies and markets. Thus SCE creates network structures, processes and establishments along the supply chain in a certain way. Therefore strategy, engineering and IT are not considered separately but equally and integrated in all planning steps. Solutions for supply chain design that follow the SCE approach are therefore considered holistically and always influenced by engineering. All the steps that follow the SCE process focus on the construction of the most ideal supply chain while on cost optimization, correct use of engineering and IT as well as training and integration of employees in production centers and logistics facilities. For the German-speaking region, this approach is largely determined by Dr. Miebach. "Supply Chain Engineering - integrated logistics planning method" was published in July 2010 and is by far the only work that describes SCE as a holistic and well-defined method. Following the publisher's experience, both top-down approaches (mostly used by strategy consultants) and bottom-up approach (used by most engineering offices as a unique point of view) achieve satisfactory results when trying to create the most optimal supply chain. The French writers Alexandre Dolgui and Jean Marie Proth have also handled SCE's words in their book, Supply Chain Engineering - Useful Methods and Techniques "(Springer-Verlag London Limited, 2010.) However the authors do not use SCE as an independent method but different subsume planning and realization of the elements of the supply chain.So their focus is put more on the production process and less on the holistic view of the supply chain.Another driver of the words is the "Supply Chain Engineering" area of ​​the Fraunhofer Institute where SCE is understood to be the name giver.. The methodology of this area still uses a fairly narrow conception of Supply Chain Management.
Maps Supply chain engineering
Supply Chain-Management_ (SCM) "> Supply Chain Supply Chain-Management (SCM)
SCE approach as defined by Dr. Miebach considers itself an upstream authority and a basic principle for efficient and effective SCM. SCM - as defined by the Council of Supply Chain Management Professionals (CSCMP) - is a strategic operations control tool for the supply chain that is already installed. Instead SCE's approach addresses the basic and first creation or optimization of the supply chain and integrates SCM as a subsystem to control the supply chain. Common goals - such as coordination and integration along the supply chain on cross-functional business processes and value-added perspectives - are therefore an integral part of SCE's goals.
SCE - Top-Down and Bottom-Up
The general assumption of the Miebach SCE concept is based on the realization that both top-down and bottom-up approaches are single methods that provide satisfactory results when building the supply chain. Because the top-down approach is strategic enough and thus first consider the network, strategy, delivery rhythm and other economic tools. Furthermore, best practice methods emerge that define top-down all basic organizational structures and processes as well as all technical facilities and specifications. Then this approach is most likely for strategic consulting firms. The technically oriented bottom-up approach considers the cost and quality issues along the supply chain almost exclusively from a technical standpoint and is therefore often applied by engineering firms and factory engineers. Thus propositions such as installations, warehouse techniques and administrative organizations emerged. Reconciliation with a strategic full picture hardly ever happens. Following the SCE approach, the optimal supply chain only contributes to the success of the company if its structure is holistically designed as well as in both technical and economic understanding. The definition of the supply chain has the sovereignty over economic construction such as firm bound liquidity (inventory), customer satisfaction (delivery reliability), EDV systems and equipment and construction investment depending on technical and process such as cost for staff and transportation or delivery quality. Because all supply chain elements affect each other, they can not be separated.
SCE Methodical Approach
SCE methodology can be separated into 5 different sections of the planning cycle o
- Key-Performance-Indicators (KPI) as the target number
o Network strategy o Process planning o Techniques and business o Total system optimization
Basically an evaluation of the current supply chain architecture is required and also develops different scenarios using quantitative calculation models. Conception - according to this method - is based on the actual situation and each data (location-oriented) and not on a rough benchmark scale. Therefore, the SCE approach assumes that no calculation model can automatically generate an ideal solution based on all networking strategies, processes, and techniques that can be thought of as effort will be too great. Throughout the cycle of unfavorable solution planning is issued gradually but the others will be determined more closely. So the optimization of the goals is questioned constantly. Important SCE tools are knowledge management, simulation and emulation databases, EDV tools for detailed calculations, implementation experience in the program - and project management and the motivation and experience of domain experts.
I. Key-Performance-Indicators as target targets
If the logistics network design follows the SCE approach, there is a general rule: if it can not be measured, it can not be built. Therefore, all supply chain requirements must be quantified in terms of key performance indicators as economic target targets. Looking back at the integration of top-down and bottom-up approaches, purchasing, production and distribution strategies combine with "top-of-the-line" systems while performance and cost data are set "from below". For example, they refer to can be achieved through time delay or amount of return. A limited definition of a separate cost type is not done at this point because the necessary changes may arise if the cost of the warehouse and transportation must shift.
II. Network strategy
Part of the SCE's planning cycle relates to location, production network, cooperation and suppliers and also to the degree of centralization and specialization and other influence on the network structure. Here, a new approach of some options is established by the site and quantifies the alternative strategy, and is matched against the target set by the KPI. This is done for example by simulating the flow of goods.
III. Planning process
First of all this step considers the processes that take place at the company level. These processes are mapped in Enterprise-Resource-Planning-System (ERP). This mainly involves demand and resource planning, batch size development, delivery planning, refilling strategies along storage levels in push or pull approaches, inventory planning and general software architecture. At this stage quantification of all processes is also required to achieve the most ideal solution. For the use of process planning simulation is also an adequate tool to reach a decision.
IV. Operational techniques and procedures
The next step is to observe processes and systems at the operating level. These include shipping and warehouse systems, select packing and packing systems, loading tools, warehouse management systems, tour planning, staff planning and safety issues. Since most manufacturers only offer data for their own solutions, the SCE methodology requires additional quantification of possible alternatives. Usually as much as possible comparable projects are used. If they are revived in terms of databases, the better. Collected experience data must be available, as well as performance data such as play time, selecting performance, error rate or transport performance.
V. Optimizing total system
The final step of SCE's planning cycle is to optimize the entire system. The system obtained through the previous three steps is now compared with the KIP step system. Thus it is analyzed whether the planned system meets the requirements, exceeds them or not and if changing alternatives is required. This adjustment is made before applying the planned supply chain system. In addition, the robustness of the selected alternatives is questionable and its efficiency is checked throughout the product or market changes. This methodology is also possible to generate awareness that targets are too ambitious.
Source
- Dolgui, Prof Alexander/Protz, Jean-Marie (2010): Supply Chain Techniques - Useful Methods and Techniques Springer-Verlag, London
- Miebach, Dr. Joachim/BÃÆ'¼hring, Dominik (Hrsg., 2010): Supply Chain Engineering - Die Methodic integrierter Planung in der Logistics, Gabler-Verlag, Wiesbaden
- Poluha, R. G. (2009): Quintessenz des Supply Chain Managements. Is Sie wirklich ÃÆ'¼ber Ihre Prozesse in Beschaffung, Fertigung, Lagerung und Logistic wissen mÃÆ'¼ssen, Berlin and Heidelberg
- Kukkuk, C. SNR (2015) Ã,: Supply Chain Engineering, integrated approach, Johannesburg, South Africa
External links
- Professional Supply Chain Management Board
Source of the article : Wikipedia
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