The design and analysis of Supply Chain Performance Measures in industrial production

Farhana Akter

Hafez Shurrab

Mohammed El Bouassami

Introduction

Supply Chain Performance Measurement

A lamp company name PT. SARSL

Supply Chain Operations Reference (SCOR)

Supply Chain Performance Measurement

Supplier perfromance measurement

Supplier contact

management

Supplier perfromance scorecardSupp

lier p

erfr

oman

ce m

anag

emen

t pro

cess

• Evaluate and measure supplier perfromance through supplier scorecard

• Executive dashboard reports for entire supplier base and supply chain performance

• Define service level agreement based on contracts

• Establish metrics and KPI for contratcs• Track and manage certification status

and compiance requirements of suppliers

• Define supplier meta data• Create supplier contracts• Integrate quality, operational

and functional metrics in contracts

Case Study

Supply Chain Operations Reference (SCOR)

Supply Chain Operations Reference (SCOR) Performance Matrix

Analytical Hierarchy Process (AHP)

Problem decomposition and hierarchy construction

Determine alternatives

Pair-wise comparison

Weight calculation

Consistency check

Hierarchical synthesis

Determine priority for all alternatives

Key Performance Indicator (KPI)

There are 23 valid KPI from 44 KPI.

Then all of those KPI (23 KPI) are weighted with Analytical Hierarchy Process (AHP) concept.

The traffic light system

The traffic light system uses three colors as indicator that is

Red for bad performance (performance score < 60).

Yellow for marginal performance (60 = performance score = 80)

Green for satisfying performance (performance score > 80),

Result

There are 2 (two) KPI that need repair, priority considering importance level of weight

Accuracy Forecast Techniques

Product Failure in Sealing Process

Analysis of Supply Chain Performance Measures

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• Performance Management Systems

Content Contex Process

Figure . Framework to analyze supply chain performance measurement system and literature classification

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Case Study: Unipart/Jaguar SCPM Analysis

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Organizational context – The Unipart Group

• Strategy

• History

• Experience

• Management Methods and

Philosophy

• Company Size

• Culture

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Supply chain context (Unipart-Jaguar SC)

• Industry/sector/model

• Relationships/integration

• Number of participant

• Maturity

• Products

• Strategic goals

• Geographical

coverage/scope

• Stakeholders11.04.2023

Process - how is the measurement carried out?

• Methods and tools

• System design

• Metrics selections

• Data capture and analysis

• Metrics usage

• Technology and enabling

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Technology and enabling technology

The Technology The Purpose

1. Online Unipart Parts Replenishment SystemDC’s and dealer’s inventory and replenish stock

2. SAP Parts Planning for Logistics Service Providers

Planning and forecasting

3. SAP Extended Warehouse Management Planning and forecasting

4. SAP ERP R/3 (Initial implementation was completed in 2001)

Planning and forecasting

5. Unipart Logistics System (ULS) (used currently)

Planning and forecasting

6. SAP CustomizationInternal incorporation of inventory management algorithms into SAP

7. SAP Net Weaver platformCommunication with dealers and suppliers

8. Online Electronic Parts Catalogue Online parts and track orders in real time

9. Multilingual Unidial Parts CommunicationOnline parts and track orders in real time

10. RFID (in 2006, provided by Savi Technology and integrated with SAP)

Cargo monitoring

11. GPS-based tracking trial (in 2007) Cargo monitoring

12. Logi-Track solution Vehicle tracking and driver performance analysis

13. mySAP (in 2006) IT infrastructure and outsourcing

14. Other Online Systems (under development)Collection of environmental and social data

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Content - what is measured at Unipart/Jaguar?

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• Metrics levels

• Metrics groups

• Metrics categories and sub-categories

• Individual measures & metrics importance

Availability

Backorder and lead time

Other common metrics for the whole supply:

Other metrics specified to points in the supply chain:

Social and environmental measures

Conclusion

Organisational and supply chain contexts

Importance of SCMPS framwork

Production problems

Better decisions

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