Principles & Mechanics of Supply Chain Management

The Principles & Mechanics of Supply Chain Management (SCM) course is intended to give students an overview, and better understanding, of the whole supply chain process. This encompasses the supply and demand sides of SCM, as both determine the best approaches to planning, sourcing, producing, delivering, and returning materials.

Establishing an SCM network that enables a reliable flow of goods, services and information is a major component of this course. Students will learn via short lectures, followed by concrete exercises and reflections on how the material can/should be applied in the workplace.

Who Should Attend?

Supply Chain/Materials Managers, Shipping/Receiving, Purchasing, Scheduling, General Managers, Plant Managers, Project Managers, Engineers, Quality, Cost Accounting, Finance and Information Technology personnel.

Course Outline:

• SCM definitions
• SCM strategy & performance measures
• SCM strategic sourcing
• SCM networks
• SCM supplier scorecards
• SCM inventory management
• Lean SCM
• SCM risk management
• SCM supplier development
• Exercise: Beer Game Supply Chain simulation

Learning Outcomes

After attending this course, learners should be able to do the following:

• Define and properly sequence the five basic components of a supply chain.
• Draw the material, information and cash flows in supply chain management.
• Define and describe the three levels of SCM.
• Articulate which SCM levels your company is already good at and which levels it needs to improve upon and why.
• Compute SCM performance measures using a worksheet.
• Articulate which SCM performance measures your company already tracks and those that it should.
• Explain what factors should influence purchasing decisions (other than price).
• Articulate the various ways a company can/should analyze its spending.
• Perform a should-cost analysis.
• Explain what should be considered in a make vs. buy scenario.
• Describe the six different types of SCM networks.
• Define what critical path means and why it is important.
• Draw an SCM network diagram for your company.
• Objectively evaluate the suppliers to your company.
• Design and use a supplier scorecard.
• List and describe some of the dimensions of inventory cost.
• Calculate and explain inventory turns, days supply on hand & backorder rate.
• List and describe the eight types of waste.
• Draw a simple value stream map.
• Describe a push system and why it causes problems for a production system.
• Describe a pull system and why it is preferred to a push system.
• Understand the mechanics and calculation of pull systems.
• Define risk and risk management.
• Quantify risk using probability, detectability and severity.
• Quantify value at risk.
• Identify critical parts and suppliers for development.
• Develop supplier value stream maps. Be able to develop supplier improvement key performance indicators.