Sumários
Questions – doubts session on demand of the Students
17 Maio 2024, 21:00 • João Vilas-Boas
Questions – doubts session on
demand of MGA2 and MGA4 Students, 17th May:
The question concerning «go through»
layout was explained. Big trucks and small vans do not mix because their
related docks are on the opposite sides of the bulding (in go through).
Otherwise accidents may happen.
Z, % meaning: probability of stock
out from the normal distribution table (chp.2). A safety stock is generated to
ensure that the required probability of stock out is not broken.
When EOQ model, when CRS or PRS are
applied: EOQ model is for deterministic demand and lead time (no Std deviation
of both demand and lead times). Note that, we only solve problems for demand as
a stochastic variable, in the course.
«i» is defined as a %/year. Why?
Because the time horizon considered is the year, in our problems. If the time
horizon is different adjustments are required, namely to «i» time units (and
others) but this is out of scope in the course.
What is the difference between the
AVE.Stock and the total cost KPIs? Total cost is broader: it includes the Ave.
Stock and other aspects of performance.
Problems 8 and 9. Resolutions? I
consulted my Colleagues. These problems are for students’ resolution on their
own. If full solutions are provided then Students will not solve them, just
read the resolutions as it happens with the solved examples. Nevertheless, if
we had had time during the lectures we could have solved them. For example, Prof
Ulpan solved one of them. Please get in touch with your Colleagues and ask for
the resolution (of that one).
Advice: Focus on the solved exercises
provided and try to UNDERSTAND what you are doing. Check the slides pack or even
a book to clarify specific aspects you may be questioning but please focus. I
saw Students going to find other exercises outside. In general, it is ok and I
praise the merit of the initiative but for the exam, you have to focus because
time is not unlimited. Otherwise, you may loose track.
Can AGILE be LEAN? Decreasing waste
helps to be more responsive but targets are very different; Lean aims at efficiency,
working in a stable as regards both demand and supply environment; Agile
promotes responsiveness (variety and time) to answer unstable demand.
IDP versus MDP. IDP – how far does information
concerning demand, coming from the marketplace, penetrate in the SC; MDP where
do you place the strategic stock of standard parts made in advance, they will
be assembled to generate final product variety after receiving a customer order
(against)
Push/pull definitions and application?
They are related to the MDP- until the MDP you push your production, ie make standard
parts against forecasts perhaps with information from the marketplace or not;
after MDP customer orders pull the finished product where we want variety (not
in parts); this is applied for complex engineering products; for FMCG the
customer wants product on the shelf. Otherwise, he/she goes out, buys in
another store where stock is available, and does not come back.
Purchasing function progress. The
more you progress on the SC model, the more you externalise operations and buy
out parts instead of making them internally. So, the purchasing function
increases in importance. For example, in complex engineering products, the cost
of bought-out parts may weigh something like 60% of the cost structure of the
product. So, the purchasing function changes its nature from operational to
strategic. Moreover, strategic suppliers do have a different treatment by
developing partnerships. Examples are: collaborative design, or quality
assurance based on auditing instead of quality control based on inspection by
the reception, etc.
Sequential/Adaptive SCs differences
and progress: Moving from Seq to Adap requires: 1) Internal integration; 2)
External integration; 3) IT, real-time, online data,….4) and then CPFR, ie
managing the whole SC together. But collaboration is required and for
collaboration one needs trust. Only then we can solve intra- and
inter-organisational disputes opposing the CPFR process that eliminates the bullwhip
effect, hopefully. Nevertheless, an adaptive responsive SC is expensive
and complex. Do you really need it? Is it the standard for your business? What
are your competitors doing?
Of course, there were more questions
being asked, but these are the ones I can recall. For a full overview, please
contact the Students attending the session.
All the best.
Questions – doubts session on demand of the Students
17 Maio 2024, 20:00 • João Vilas-Boas
Questions – doubts session on demand of MGA2 and MGA4 Students, 17th May:
The question concerning «go through» layout was explained. Big trucks and small vans do not mix because their related docks are on the opposite sides of the bulding (in go through). Otherwise accidents may happen.
Z, % meaning: probability of stock out from the normal distribution table (chp.2). A safety stock is generated to ensure that the required probability of stock out is not broken.
When EOQ model, when CRS or PRS are applied: EOQ model is for deterministic demand and lead time (no Std deviation of both demand and lead times). Note that, we only solve problems for demand as a stochastic variable, in the course.
«i» is defined as a %/year. Why? Because the time horizon considered is the year, in our problems. If the time horizon is different adjustments are required, namely to «i» time units (and others) but this is out of scope in the course.
What is the difference between the AVE.Stock and the total cost KPIs? Total cost is broader: it includes the Ave. Stock and other aspects of performance.
Problems 8 and 9. Resolutions? I consulted my Colleagues. These problems are for students’ resolution on their own. If full solutions are provided then Students will not solve them, just read the resolutions as it happens with the solved examples. Nevertheless, if we had had time during the lectures we could have solved them. For example, Prof Ulpan solved one of them. Please get in touch with your Colleagues and ask for the resolution (of that one).
Advice: Focus on the solved exercises provided and try to UNDERSTAND what you are doing. Check the slides pack or even a book to clarify specific aspects you may be questioning but please focus. I saw Students going to find other exercises outside. In general, it is ok and I praise the merit of the initiative but for the exam, you have to focus because time is not unlimited. Otherwise, you may loose track.
Can AGILE be LEAN? Decreasing waste helps to be more responsive but targets are very different; Lean aims at efficiency, working in a stable as regards both demand and supply environment; Agile promotes responsiveness (variety and time) to answer unstable demand.
IDP versus MDP. IDP – how far does information concerning demand, coming from the marketplace, penetrate in the SC; MDP where do you place the strategic stock of standard parts made in advance, they will be assembled to generate final product variety after receiving a customer order (against)
Push/pull definitions and application? They are related to the MDP- until the MDP you push your production, ie make standard parts against forecasts perhaps with information from the marketplace or not; after MDP customer orders pull the finished product where we want variety (not in parts); this is applied for complex engineering products; for FMCG the customer wants product on the shelf. Otherwise, he/she goes out, buys in another store where stock is available, and does not come back.
Purchasing function progress. The more you progress on the SC model, the more you externalise operations and buy out parts instead of making them internally. So, the purchasing function increases in importance. For example, in complex engineering products, the cost of bought-out parts may weigh something like 60% of the cost structure of the product. So, the purchasing function changes its nature from operational to strategic. Moreover, strategic suppliers do have a different treatment by developing partnerships. Examples are: collaborative design, or quality assurance based on auditing instead of quality control based on inspection by the reception, etc.
Sequential/Adaptive SCs differences and progress: Moving from Seq to Adap requires: 1) Internal integration; 2) External integration; 3) IT, real-time, online data,….4) and then CPFR, ie managing the whole SC together. But collaboration is required and for collaboration one needs trust. Only then we can solve intra- and inter-organisational disputes opposing the CPFR process that eliminates the bullwhip effect, hopefully. Nevertheless, an adaptive responsive SC is expensive and complex. Do you really need it? Is it the standard for your business? What are your competitors doing?
Of course, there were more questions being asked, but these are the ones I can recall. For a full overview, please contact the Students attending the session.
All the best.