L_SMS L-Supply systems management

Process management in the supply systems.

Testing-chapt.1-6

 
Key words:

Logistics function, logistics objectives, STEP and SWOT analysis, logistics strategies and concepts, Lean Management, TQM

Chapter objectives:

  • To apply the logistics function to supply systems,
  • To understand the relationships of logistics and process objectives within supply chains
  • To warn about transformation management logistics methods. 

Time required to study the chapter: 8 hours

Interpretation:

Corporate philosophy and strategy
During any business activities, it is necessary to formulate their purpose and objectives. We also need to take into consideration relevant circumstances and influences, both positive and negative, which will affect the intended activities. It is important to take into account both external and internal factors. It is appropriate to apply the STEP and SWOT analyzes.
STEP analysis consists in assessing the impact of only external factors (global environment factors) on the enterprise position in following segments:
  • S-social factors
  • T-technical (technical and technological) factors
  • E-economic factors
  • P-political-legal factors
SWOT analysis is a tool especially used within value management and corporate strategy creation to identify enterprise strengths and weaknesses taking into account opportunities and threats.

Enterprise strengths:
  • Individual approach
  • Favorable prices
  • New innovative products and services
  • Enterprise location
  • Experience in the field
  • New technologies
Enterprise weaknesses:
  • Bad marketing strategy
  • Enterprise size and location
  • Low awareness among potential clients
  • Poor quality of products and services
Enterprise opportunities:
  • Opening the EU market
  • Possibility to extend for additional services
  • Increasing need for tax advice
  • Low competition
  • Possibility to expand outside the region
  • Inflow of foreign investment
Enterprise threats:
  • Unexpected entry of the competition
  • Change in regulations (directives)
  • Government policy oppressing small entrepreneurs
Another important part of this matter is to determine the position on the market. Each company should continuously perform a market segmentation of its products or services.

Logistics objectives
In relation to the concept and approach to logistics, we have come to the conclusion that if a company wants to gain a market position allowing selling its products at market prices, then these products must be of interest to customers by their parameters, quality, design, service and price; comparable or even better than competing products and customers - offered to customers at the desired location, in the required quantity, at the required time, in the specified quality and at prices corresponding to the market situation.
From aforementioned, relevant objectives in the field of logistics, ranging from large to small companies and individual craftsmen can be specified:
  • to provide the necessary performance in the field of supply, transport, handling, storage,
  • to ensure the required quality of these performances (supplier capacity, flexibility, meeting terms, consignments quality, ...) and
  • to optimize costs (personal, transport, handling, storage, ...).
while respecting the requirements of the environment throughout the entire process chains.

Transformation management methods
Total Quality Management characterizes focus on quality and builds customer-contractor business relationships. The quality of the products (goods or services) that are the subject of the transaction is the relevant parameter in this relationship. An efficient information network enabling the necessary information flow to ensure the quality of the logistics transformation process is the prerequisite for all of it; i.e. the product delivery or the process assurance at the specified quality, at the desired place, just in time. TQM is a systematic learning process that focuses on the customer. Quality can be achieved by a permanent improvement process.
Lean Production or Lean Management is based on Japanese conditions (Kaizen). Lean business can be achieved by processes continuous improvement through the evolutionary way - in small steps. The corporate hierarchy and boundaries of enterprise units are of secondary importance compared to overall enterprise success. Responsibility for quality is required at all enterprise levels.
 

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.

Recommended study materials:
JEŘÁBEK, K. Transport, Handling, Storage - Logistics. Construction information, Volume XI, September 2004, Monothematic Number, 28th Edition, pp. 3-31. ISSN 1211-2259.
KULČÁK, L., K RÁL, D. Logistika. Study materials for part-time students. Brno, Sting Academy in Brno, 2010. ISBN 978-80-86342-88-7.
Jeřábek, K., FRAJOVÁ, M. Výroba a distribuce stavebních materiálů – racionalizační potenciály logistiky. Construction information, Volume XIII. September 2006, monothematic number, 44th publication, pp. 3-27. ISSN 1211-2259.
 

Questions and tasks

  1. STEP consists in:
    1. assessing the impact of only external factors (global environment factors) on the enterprise position
    2. identification of enterprise strengths and weaknesses taking into account opportunities and threats
    3. respecting the requirements of the environment across the entire process chain
  2. „E“ in the term STEP means:
    1. E- econometric factors
    2. E-environmental factors
    3. E- economic factors
  3. SWOT analysis is a tool especially used within value management and corporate strategy creation:
    1. to identify enterprise strengths and weaknesses taking into account opportunities and threats
    2. to respect the requirements of the environment across the entire process chain
    3. to assess the impact of only external factors (global environment factors) on the enterprise position
  4. Relevant objectives in the field of logistics, ranging from large to small companies and individual craftsmen include:
    1. required performance, required quality of these performances, optimize costs
    2. individual approach, favorable prices and new innovative products and services
    3. opening the EU market, possibility to extend for additional services, low competition
  5. Lean Production  or  Lean Management is based on Japanese conditions:
    1. Kanban
    2. Kaizen
    3. Seiketsu
Key to solve the questions:
  1. a
  2. c
  3. a
  4. a
  5. b
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