L_SMS L-Supply systems management

Value-creating chains, characteristics, system functions, process approach.

Testing-chapt.1-6

Key words:

Value-creating chain model, inputs to element, outputs from element, elements structure, element parameters, SCM

Chapter objectives:

  • Get acquainted with the value-creating chain model
  • Learn how to define the structure and parameters of elements
  • Manage the identification of technological and logistics elements of the value-creating chain
 

Time required to study the chapter: 8 hours

Interpretation:

Functional model of a logistics chain element   
Logistics ensures and manages the movement of objects (products, pallets, orders, etc.) through partial chain processes. In the individual partial processes, the transformations of objects are performed, i.e. for example, the excavation of foundations, their concrete, masonry, or brick molding, their control, storage, handling, transportation, etc. Among processes, there is a change of materials (masses, substances) and information. The task of logistics is to manage interactions between material and information in enterprise process chains. The functionality of transformation processes in the process chain constantly influences the quality of logistics.
Each element acts in the process chain both as a customer and as a supplier, and has to handle a number of partial processes that have acharacter of business processes. Logistics model to allow for the evaluation of the process chains quality and uncover potential reserves for improvement and improvement of the current state must be able to describe the relationships between the supplier and the customer not only in terms of quality but also quantity. This is a requirement for the basic function of the logistics chain elements.
Structure and characteristics of process chain elements
The process chain elements model in Figure 2-1 shows an element in the "Black Box" concept. Only inputs and outputs are displayed.

 
Fig. 2- 1: Inputs and outputs of the value-creating chain

The material enters into the elements (operand in state 1) from which the semi-product or the final product is made, thus the material leaves the element after the transformation in the form of the final product (operand in state 2) and some residues (splinters, waste, etc.). Transformation is carried out by labor by work tools (operators). Both operators also leave the element, but in the transformed form so-called worn-out tools, part of their value is depreciated and is passed on to product costs. The labor force is tired, exhausted, but on the other hand, it gets better, increases its qualification. Their contribution to transformation is also passed on to product costs. Similarly, it is with energy that is necessary for transformation, and with information, without which the transformation process could not be managed.
 
Processes management
From the point of view of logistics goals, the influencing the process chain elements or the whole chains is limited to four basic factors. These factors are:
  • processe,
  • management,
  • tools,
  • structures.
From these four factors, a set of 17 classes of rationalization potentials, which are the building blocks of strategic logistics planning, can be derived by:
  • customer,
  • supplier,
  • structure of processes.
Management includes:
  • normatives,
  • administrative,
  • networks,
  • control.
Tools are represented by:
  • personnel,
  • space,
  • stocks,
  • work tools,
  • aids (ancillary tools),
  • organizational tools.
Structure is represented by:
  • layout,
  • organizational structure,
  • communicational structure.


Study materials:

Basic literature:
JEŘÁBEK, Karel. Logistika: study support for combined study. 1. ed. České Budějovice: Institute of Technology and Business in České Budějovice, 2012. 96p. ISBN 978-80-7468-016-8.
TOUŠEK, R. Management dopravy. České Budějovice: Jihočeská univerzita v Českých Budějovicích, 2009. ISBN 978-80-7394-172-7.
BAZALA, J. et al. Logistika v praxi. Prague: Verlag Dashöfer 2004. ISBN 80-86229-71-8.

Recommended study materials:
SCHULTE, CH.: Logistika. Prague, Victoria publishing, 1994. ISBN 80-85605-87-2.
KUHN, A.: Prozessketten in der Logistik. Dortmund, Verlag Praxiswissen 1995. ISBN 3-929443-49-X.
 

Questions and tasks

  1. Logistics ensures and manages the movement of:
    1. normative, administrative and auxiliary tools
    2. objects (products, pallets, orders, etc.) through partial chain processes
    3. work tools, aids, and communication
  2. Each element acts in the process chain as:
    1. both as a customer and as a supplier
    2. only as a customer
    3. only as a supplier
  3. Structure of process chain elements includes inputs and outputs. The inputs do not include:
    1. material
    2. labor
    3. final products
  4. From the point of view of logistics goals, the influencing the process chain elements or the whole chains is limited to four basic factors. These factors do not include:
    1. procesess
    2. structures
    3. customers
  5. Tools within processes management do not include:
    1. personnel
    2. normatives
    3. stocks

Key to solve the questions:

  1. b
  2. a
  3. c
  4. c
  5. b
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