Pgd 3 Supply Chain Management

7/23/2019 Pgd 3 Supply Chain Management

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INSTITUTE OF PROCUREMENT AND

SUPPLY

POSTGRADUATEDIPLOMA INPOSTGRADUATEDIPLOMA IN

PROCUREMENT AND SUPPLYPROCUREMENT AND SUPPLY

MANAGEMENTMANAGEMENT

SUBJECT:

Supply Chain Management inPractice

PGD 3



Session 1

Introduction to the Case Study Option

Learning Outcomes

At the end of this session candidateswill be able to:

!plain CIPS"s re#uirements and e!pectations forthe Strategic Chain Management in Practicecase study option

!plain di$erences in the approach to learning andassessment used in this unit to that used forother units in the CIPS %raduate &iploma

!plain the main stages of preparation of a casestudy and the outcomes from each stage

!plain how to present analysis' (usti)ed solutionsand a plan for implementation in thee!amination

Start determining the problem*s+ for a specimencase study



,he Case Study Option

Pro-ides e!perience of a real.lifesituation

Pro-ides a conte!t for e!amining howa range of concepts and principlescan be applied to real.life problems

Consists of:

A case study issued in ad-ancePreparation of analysis and

solutions ,hree.hour open boo/ e!amination

with unseen #uestions *usuallymandatory+



0hat is a Case Study

A case study *or case+ is a descriptionof a situation or an account of ase#uence of e-ents that:

raises issues for discussionraises problems for analysis and

ma/ing decisions or pro-idingsolutions



Learning ,hrough CaseStudies

Case studies can pro-ide practice in:Analysis and critical thin/ing&ecision ma/ing

2udging between courses of action3andling assumptions and inferencesPresenting a point of -iewListening to and understanding others4elating theory to practice



0hat the !aminer is Loo/ingfor:

5se of analytical s/ills todemonstrate:a good understanding of the case and

the constraintsinsights into the causes of the problem

A coherent and (usti)ed practicalsolution incorporating SCM

Ability to apply rele-ant s/ills and/nowledge from all CIPS unitsAwareness of contemporary strategic

management and SCM thin/ing



Preparing for the !am

&e-elop a detailed understanding of theorganisation and its conte!t

Identify the problems the organisation faces&iagnose problems and )nd solutions within

any constraintsAscertain e!pectations

*aspirations6ob(ecti-es+Identify the strategic options a-ailable-aluate the options and recommend a

preferred option 2ustify the recommendations0or/ through su7cient detail for

implementation and control



Case Study PreparationProcess

Step 1&etermine the problem

Step 8

&etermine alternati-e courses of action

Step 9

-aluate alternati-e courses of action

Step

Select and (ustify alternati-es

Step ;

Implement the selected alternati-e



Preparation Milestones

nd of 0ee/ 1: Problem determinednd of 0ee/ 8: Alternati-e selectednd of 0ee/ 9: Implementation

plannednd of 0ee/ : 4ehearsed on paper

<inal preparations




Step 1

&etermine the problem

Step 8


Step 9


Step Select and (ustify alternati-es

Step ;




Step 1: &etermine the

Points to noteIdentify and in-estigatecauses rather thansymptoms

,he case does not contain allthe information needed fora full =solution"

>ot all the information isrele-ant for the future

,echni#ues a-ailableInternal analysis tools!ternal analysis toolsConcepts for understanding

e!pectations and purposesStrategic theories and

framewor/sProblem.sol-ing techni#ues

Outcomes to aim for?ey issues facing the

organisation' includingdri-ers for change

Insights into the issuesA statement of the

=problem*s+"-idence to support your

-iew

0hat"s in-ol-ed4ead the case study se-eral

times&e-elop a thorough

understanding of theconte!t

Identify' analyse and e!plorethe issues

Consolidate the analysis



,echni#ues for !ternalAnalysis

Macro.en-ironment:SLP, or PS,L

Micro.en-ironment:Porter"s ; forcesStrategic groupsPorter"s -alue system6chainCompetitor analysis



,echni#ues for InternalAnalysis

Portfolio analysis tools' for e!ample@C% growth.share matri!One of the 9!9 matrices such as %

screen *multi.factor portfolio model+

alue chain analysis *Porter+<inancial ratiosCultural web

4esources6s/ills auditS0*O,+ analysis



!pectations and Purpose

Sta/eholder mapping=Strategic intent":

PurposeisionMission



Session 8

&etermining the Problem



Learning Outcomes


&e-elop a thorough understanding of thecase study"s organisational conte!t

Synthesise conceptual and case study data

into a coherent structure&iagnose supply chain problems within a case

study situation!tend analysis and understanding of deep.

seated issues within the case studyorganisation

Articulate a succinct description of theproblem*s+ the organisation is facing and

the underlying causes and conse#uences



Step 1: &etermine the

Points to noteIdentify and in-estigate

causes rather thansymptoms

,he case does not contain all

the information needed fora full =solution"

>ot all the information isrele-ant for the future

,echni#ues a-ailableInternal analysis tools!ternal analysis toolsConcepts for understanding

e!pectations and purposes

Strategic theories andframewor/s

Problem.sol-ing techni#ues

Outcomes to aim for?ey issues facing the

organisation' includingdri-ers for change

Insights into the issuesA statement of the

=problem*s+"-idence to support your-iew

0hat"s in-ol-ed4ead the case study se-eral

times&e-elop a thorough

understanding of theconte!t

Identify' analyse and e!plorethe issuesConsolidate the analysis



Progress Chec/ B

&etermining the Problem?ey issues facing the organisation&ri-ers for changeInsights into the issuesA statement of the =problem*s+"-idence to support your -iew based

on appropriate:!ternal analysisInternal analysis5nderstanding of e!pectations and

purpose



Consolidating theAnalysis

S0O,Summary of e-aluation of business

and SCM performanceCapabilities6core competencesCompetiti-e position and sources of

competiti-e ad-antageSummary statement of the

problem*s+' including dri-ers forchange

Implications for strategy:?ey factors for successConstraints



Constituents of a ProblemStatement

A short statement of what theproblem is

Its symptoms *what you can see+Its causes *what you probably can"t

see+ ,he impact the problem is ha-ing

now *#uanti)ed if possible+ ,he conse#uences if the problem isnot resol-ed *again' #uanti)ed ifpossible+



Session 9

&etermining and -aluating Alternati-eCourses of Action



Learning Outcomes


5se rele-ant theory and brainstormingtechni#ues to identify all possible optionsa-ailable

-aluate the -alidity and applicability of arange of possible solutions

Predict the conse#uences of adopting eachalternati-e course of action in the shortand long terms

2udge the appropriateness of supply chainprinciples to a particular supply chain

conte!t o-er the short and long term



Progress Chec/ B

&etermining the Problem?ey issues facing the organisation&ri-ers for changeA statement of the =problem*s+"Insights into the issues-idence to support your -iew based

on appropriate:!ternal analysisinternal analysis5nderstanding of e!pectations and

purpose



Case Study Preparation Process

Step 1


Step 8


Step 9


Step


Step ;




Step 8: &etermine

Points to note ,he options should address

at least part of the=problem" you de)ned inStep 1

@rainstorming within groups

may generate moreoptions

&on"t arbitrarily discard anyoptions at this stage

,echni#ues a-ailable%eneric strategies *Porter+Strategic directions *Anso$+Strategic de-elopment

methodsSCM strategies

Alliancing and partnershipmethods

Outcomes to aim forA clear statement of

alternati-esA short e!planation of what

each course means for theorganisation

5nderlying strategic

rationale for thesealternati-es

0hat"s in-ol-edIdentify all possible

alternati-es<irst for organisation le-el ,hen for SCM le-el!plore conse#uences on

each other



Developmentstrategies

%enerating Strategic

Options%enericstrategie

s*Porter+

Strategicdirection

s *Anso$+

Strategic

methods



%eneric Strategies*Porter+

STRATEGIC ADVANTAGE

S T R A T E G I C

T A R G E T

5ni#ueness percei-edby customer

Low costposition

Industry.wide

Segmentonly FOCUS

DIFFERENTIATIONOVERALL

COSTLEADERSHIP



4is/

Strategic &irections *Anso$+

ar!etpenetration

Diversi"#ation

Pro$%#t$evelopment

> e w

a r ! e t

!isting >ew

Pro$%#t

ar!et$evelopment

Also:Consolidation0ithdrawal&o nothing

Source: Anso$

!

i s t i n

g



Strategic Methods

Internal de-elopment 2oint de-elopmentMergers and ac#uisitions

?ey decision factors: In-estment returns In-estment costs ,ime &egree of control Strategic compatibility



Alliancing and

PartnershipsAc#uisitions or

mergersConsortium or (oint

-entures

AlliancesContract or licensingagreements

>etwor/s

&egreeof

control

Adapted from 2ohnson Scholes



,owards a SCM Strategy

%oals of SCM Cost reduction

Duality impro-ement Inno-ation &eli-ery

Scope of SCM 0hat do we ma/e6do

0hat do we buy

4elationships 4elationship typesSupplier categories

Duality Duality attributes Duality standards

Process6systems

SCMstrategy



Case Study Preparation

ProcessStep 1


Step 8


Step 9


Step


Step ;




Step 9: -aluate

Points to noteStrong options will be those

that address the underlyingproblem*s+ in the short andlong term

Sometimes the alternati-esare ran/ed or weighted

,echni#ues a-ailableSuitability' acceptability and

feasibility framewor/*2'S0+

<inancial appraisal

techni#uesScreening techni#ues' eEgE

% screen' Abell 3ammond

Outcomes to aim forA summary showing:

ach alternati-e0hat it would entailStrengths *or pros+0ea/nesses *or cons+

0hat"s in-ol-edIdentify e-aluation criteria5se to e-aluate each option'

including )nancialcalculations

!amine the conse#uences

of each in both short long term



-aluating Strategic

Options

S%ita&ilit' A##epta&ilit' Feasi&ilit'

Eval%atingstrategi# options

stablishing therationale

Screening optionsand criteria

&oes it sol-ethe problem

Is it acceptableto sta/eholders

4eturns4is/4eactions by

sta/eholders

Can we deli-er

Cash Fow@rea/.e-en4esourcesCompetences

Adapted from 2ohnson Scholes



<inancial Appraisal ,echni#ues

Cash.Fow pro(ection&iscounted cash.Fow *&C<+ methodInternal rate of return *I44+ methodSensiti-ity analysis@rea/.e-en analysisModelling



Assessing the <easibility ofOptionsAbell and 3ammond"s in-estment opportunitymatri!

Competitive position

O p t i o n a t t r a # t

i v e n e s s

L

o w

3 i g h

M e d i u m

Strong Medium 0ea/

L o ( o v

e r a l l a

t t r a # t i v

e n e s s

e $

i % m

o v e

r a l l

a t t r a

# t i v

e n e s s

Source: Adapted from Abell and 3ammond

H i g )

o v e

r a l l

a t t r a

# t i v e n e s s



Session

Selecting and 2ustifyinga Preferred Course of Action



Learning Outcomes

At the end of this sessioncandidates will be able to:

Sol-e problems with reference tosupply chain principles

Propose solutions that will enable thecase study organisation to operatemore e$ecti-ely in the short andlong term

2ustify the solutions in terms of theirfeasibility and appropriateness



Progress Chec/ B&etermining Alternati-eCourses of ActionA clear statement of alternati-e

courses a-ailableA short e!planation of what each

course means for the organisation5nderlying strategic rationale for

these alternati-es



Progress Chec/ B -aluatingAlternati-e Courses of Action

A summary showing:ach alternati-e course of action

0hat it would entailStrengths *or pros+0ea/nesses *or cons+




Step 1


Step 8


Step 9


Step


Step ;




Step : 2ustify alternati-es

Points to note ,he (usti)cation should be

ob(ecti-e' not sub(ecti-e

*GIt"s the only optionH+ ,he decision6recommendationmay ha-e to be #uali)ed inthe absence of enoughinformation eEgE If appliesthen Option A' but if Japplies then Option @

,echni#ues a-ailable4an/ing and weightingScreening techni#ues

Strategicconcepts6framewor/s

Outcomes to aim forA clear statement of the

option selected ,he (usti)cation and rationale

for the decision-idence to support or defend

the decision

0hat"s in-ol-edMa/e *or con)rm+ the

selection decision resultingfrom the e-aluation ofalternati-es

Collate e-idenceConsider how to present and (ustify the decision



Session ;

Planning Implementationand Preparing for the !amination



Learning Outcomes


&e-elop a suitable plan for implementing theproposed course of action within anyconstraints identi)ed

&escribe the structure of the e!aminationpaper' possible areas for #uestions andthe rationale that might lin/ the #uestions

Prepare a coherent written presentation of theanalysis' options' decisions and plans for

implementationCarry out )nal preparations for the

e!amination' including a rehearsal



Progress Chec/ B Selectingand 2ustifying a Course ofActionA clear statement of the option

selected

,he (usti)cation and rationale for thedecision

-idence to support or defend thedecision




Step 1


Step 8


Step 9


Step


Step ;




Step ;: Plan

Points to notensure SCM tactics are

integrated and aligned withstrategy

Control measures areessential for assessingwhether the plan iswor/ing

,echni#ues a-ailableMc?insey"s KS framewor/Planning framewor/s'

including ob(ecti-e settingLeadership modelsOrganisation structuresConcepts for control

Outcomes to aim forProblem de)nitionCorporate6business

ob(ecti-esCorporate6business strategySCM ob(ecti-esSCM strategy ,actics for implementationControl approach6measures

0hat"s in-ol-ed&e-elop a plan for all

aspects of theimplementation of thepreferred alternati-e

Specify what is re#uired toimplement strategicchange

Consider appropriatestructures and leadershipstyle



Strategic Alignment

Strategy

Style

Systems Structure

Sta$

S/ills

Source: Mc?insey KS framewor/

Sharedpurpose



Aligning Supply ChainStrategies

@usinessprocesse

s

Managementcomponents

>etwor/structure

Order processing Customer ser-ice &istribution Productde-elopment

Supply

Physical technical Planning control Process structure Organisationalstructure Informationdistribution Production Fow

4elationships to lead6coordinate

4elationships to be

monitored>on.critical relationships4elationships to other

supply chains

Operational beha-ioural

Management principles Power structure Payment structure Company culture



Creating Ma(or Change

stablish sense of urgencyCreate the guiding coalition&e-elop a -ision and strategyCommunicate the change -ision

mpower broad.based action%enerate short.term winsConsolidate gains and produce more

changeAnchor new approaches in the culture

?otter 1



3eadings for a ,ypicalPlan

!ecuti-e summary

Problem de)nition6situation analysisCorporate ob(ecti-esCorporate6business le-el strategySCM ob(ecti-esSCM strategy

,actics for implementationControl approach and measures



@ene)ts of the Moc/!am

4ecognise the time constraints of thee!amination and plan your time for the=real" e!am accordingly

4ehearse planning and writing answers

*laying out a synopsis of the =problem" anda solution on paper+ against an unseen#uestion under e!am conditions

-aluate the e$ecti-eness and thoroughnessof your preparation so that' if re#uired' youcan modify your approach to the =real"case

Identify any gaps in your /nowledge so thatyou can underta/e appropriate re-isionbefore the =real" case

Documents

Pgd 3 Supply Chain Management