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CPET 575 Management Of Technology
Value Chain & Supply Chain Supporting & Enabling Technologies
Dec. 1, 2011
Paul I-Hai Lin, Professor http://www.etcs.ipfw.edu/~lin
M.S. Technology - IT and Advanced Computer Applications & Industrial Technology/Manufacturing
Purdue University Fort Wayne Campus
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Topics of Discussion
Value Chain & Enabling Technologies
Supply Chain & Enabling Technologies
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Value Chain & Technologies
Value Chain
Competitive Advantage, 1985, by Michael E. Porter, The Free Press, ISBN 0-684-84146-0
• Competitive Strategies• Representative Technologies in a Firm’s Value Chain,
page
4
Technological Policies and Generic Competitive Strategies
Product Tech. Change
Process Tech. Change
Overall cost leadership Overall diff. Focus-seg. cost
leadershipTechnological Policies
• Product dev. to reduce prod. cost by lowering materials content
• Facilitating ease manufacturing
• Simplifying logistical req.
• Learning curve process improvement
• Process improvement to enhance economics of scale
• Product dev. to enhance quality, features, deliverability, or switching costs
• Process dev. to support high tolerance
• Greater QC
• More reliable scheduling
• Faster response time to orders
•Others
• Product dev. to design only enough performance for the segment’s needs
• Product dev. to tune production and delivery system to seg. needs in order to lower cost
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Representative Technologies in Firm’s Value Chain (from Part I, page 8)
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Value Chain Technologies
Inbound Logistics - Technologies• Transportation Technology
• Material Handling Technology
• Storage and Preservation Technology
• Communication System Technology (Wired & wireless)
• Testing Technology
• Information System Technology
• (RFID)
4
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Value Chain Technologies
Operation - Technologies• Basic Product Technology
• Material Technology
• Material Handling Technology
• Packaging Technology
• Maintenance Methods
• Testing Technology
• Building Design, Operation Technology
• Information System Technology
• (Communication System Technology: Wired & wireless – newly added)
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Value Chain Technologies
Outbound Logistics - Technologies• Transportation Technology
• Material Handling Technology
• Packaging Technology
• Communication System Technology (wired & wireless)
• Information System Technology
• (RFID)
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Value Chain Technologies
Marketing/Sales - Technologies• Media Technology
• Audio and Video Recording Technology
• Communication System Technology
• Information System Technology
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Value Chain Technologies
Services - Technologies• Media Technology
• Audio and Video Recording Technology
• Communication System Technology
• Information System Technology
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Value Chain Technologies
New Supporting Technologies• Media Technology
Multimedia, Web media
• Audio and Video Recording Technology
High Definition Video Conferencing (HDVC)
• Communication System Technology
TCP/IP, Internet, e-mail, wired & wireless connection and devices: RFID, sensors, etc
• Information System Technology
Enterprise Resource Planning, Manufacturing Management, Supply Chain Management, Sales-Force Management, Customer Relationship Management
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Value Chain Technologies Video Conferencing & Collaboration
Video ConferencingCisco Collaboration, http://www.cisco.com/en/US/netsol/ns1007/index.html
Cisco TANDBERG, http://www.tandberg.com/
Polycom – Telepresence, Voice and Video Conference, http://www.polycom.com/index.html?showme=y
Sony Video Conferencing, http://pro.sony.com/bbsc/ssr/mkt-
broadcast/mkt-broadcastvideoconferencing/
Logitech LifeSize Video Conferencing - www.LifeSize.com
Panasonic HD Visual Communications System, WSJ Ad 11/4/2010, www.panasonic.com/hdvc
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Value Chain Technologies Video Conferencing & Collaboration
Internet/Web Video ConferencingAdobe Connect – Web conferencing for the enterprise, http://www.adobe.com/products/adobeconnect.html
Cisco WebEx Web Conferencing, http://www.webex.com/
Video & Web Conferencing, www.MegaMeeting.com
Nefsis Video Conference Software, http://www.nefsis.com/
Microsoft Office Live MeetingIBM LotusLive Engage, https://www.lotuslive.com/en/campaigns/sesimple.phpiVisit, (free), http://www.ivisit.com/
Skype, www.skype.com
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Value Chain TechnologiesInformation Technology
Enterprise IT Systems
• Enterprise Resource Planning (assets, financial resources, distribution, materials, human resources, product lifecycle management, Decision support)
• Manufacturing Resource Management
• Sales-Force Management
• Customer Relationship Management (CRM)
• Supply Chain Management (purchasing, manufacturing, distribution)
• Warehouse Management
Major Software Vendors
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Value Chain TechnologiesInformation Technology
Major ERP Software Vendors• SAP, http://www.sap.com/solutions/business-
suite/erp/index.epx
• Oracle (PeopleSoft Enterprise, JD Edwards Enterprise), http://www.oracle.com/index.html
• Epicor ERP, http://www.epicor.com/Solutions/Pages/ERP.aspx
• Microsoft Dynamic, http://www.microsoft.com/en-us/dynamics/why-dynamics.aspx
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Medical Device Manufacturer – An Example
Linux/Progress Database Server
MFG/Pro ERP ServerEverypath Mobile Application Server
MS Access ServerCompliant System
Commerce server
Medical Device Enterprise Application Area
Mobile Application entityProxy Server
New York
Country
Miami, FL
Beijing, China Paris, FR
Country
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Enterprise IT Application IntegrationMedical Device Manufacturing
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Mobile Agent Sales AutomationMedical Device Manufacturing
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Mobile Agent Sales AutomationMedical Device Manufacturing
Process Order
Approval
ItemDetails
Customer ServiceError
Customer Data
Inventory Data
ErrorPC
Customer
Orders
Invoices;Status
PC
Sales
Orders Status
Mobile Agent Sales Automation System (Context Diagram)
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Mobile Agent Sales Automation
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Supply Chain Management & Technologies
Supply Chain Management concerns• Suppliers• Transportation & Logistics
• Credit and Cash Payment (Transfers)
• Distributers
• Account Payables and Receivable
• Warehousing & Inventory
• Order Fulfillment
• Information Sharing: Customer, Forecasting, and Production
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Supply Chain Management & Technologies
Supply Chain Management Topics1
• Supply chain risk and management• Supply chain economics:
Supply chain cost (52% ≤ as a percentage of sales ≤ 79%)
Make-or-buy decision
Outsourcing
• Supply-Chain Strategies Many suppliers, Few suppliers
Vertical integration: Raw materials Finished goods
Joint venture
Keiretsu networks (系列取引)
Virtual companies (on-demand)
1Operations Management, 1oth ed, by Jay Heizer and Barry Render, Prentice Hall
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Supply Chain Management & Technologies
Supply Chain Decision Strategies1
• “What is the Right Supply Chain for Your Product?” Marshall L. Fisher, Harvard Business Review, March-April 1997.
• Strategies: Low-cost Strategy
Response Strategy
Differentiation Strategy
• Six Factors (goals, criteria, characteristics): Supplier’s Goal, Primary Selection Criteria
Process Characteristics, Lead-Time Characteristics
Product-Design Characteristics
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Supply Chain Management & Technologies
Managing Supply Chain1
• Mutual Agreement on Goals• Trust
• Compatible Organizational Cultures
Issues in an Integrated Supply Chain1
• Local Optimization
• Incentives (sales incentives, Quantity discounts, Quotas, Promotions, etc)
• Large Lots
1Operations Management, 1oth ed, by Jay Heizer and Barry Render, Prentice Hall
13
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Supply Chain Management & Technologies
Opportunities in an Integrated Supply Chain1
• Accurate “Pull” Data
• Lot Size Reduction
• Single-Stage Control of Replenishment: RFID tags, monitoring and managing inventory
• Vendor-Managed Inventory
• Collaborative Planning, Forecasting, and Replenishment
• Blanket Orders (long-term purchase commitment to a supplier for items..)
• Standardization
• Postponement1Operations Management, 1oth ed, by Jay Heizer and Barry Render, Prentice Hall
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Supply Chain Management & Technologies
Opportunities in an Integrated Supply Chain (cont.)1
• Drop Shipping and Special Packaging Drop Shipping – direct shipping from the supplier to the end
customer
• Pass-through Facility (distribution center)
• Channel Assembly
1Operations Management, 1oth ed, by Jay Heizer and Barry Render, Prentice Hall
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Supply Chain Management & Technologies
Aggregate Planning, Forecast
E-Procurement, Online Catalog, Auctions, Request For Quotes (RFQs)
Capacity & Level Planning
Production/Demand, Workforce/Subcontract, Outsourcing/Vendors
Material Requirements Planning
Inventory Management
Real-Time Inventory Tracking
Security and Just-In-Time
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Conclusion
MIT ESD 290 Special Topics in Supply Chain Management (April 28, 2008, 16 Video presentations), http://www.youtube.com/watch?v=IqmrNUoiy7g&feature=&p=F9071540F59BA1F0&index=0&playnext=1