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SCMMS2 (Fach) / Network design (Lektion)
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- What are key factors surrounding manufacturing locations? Proximity to supply markets Proximtiy to demand markets Risk management and backups Relative labor costs
- What are key points to consider when planning the demand footprint design? Shifting market and customer requirements Possibility of new markets to enter Short- and long-term implications of technology changes
- What are key points to consider when planning a supply footprint design? Impact of key cost drivers Economic volume of production and plant scale Right locations to produce Mission of each plant regarding focus on tech and processes Possible change of technology needed Competitors offerings Vertical integration vs. separation
- What are key points to consider when planning the distribution footprint design? Transport mode and macroeconomic developtments Reduction of inventory levels/working capital Reduction of response times/time to market
- What are factors influencing the network design decisions? Strategic Factors Technological Factors Macroeconomical factors, e.g. tax incentives, exchange rates, freight and fuel costs Political factors infrastructure factors competitive factors customer resposne time and local presence logistics and facility costs
- What happens in the first phase of the network design framework? Competitive Strategy Internal constraints, e.g. capital, growth strategy, existing network global competition
- What happens in the second phase in the network design framework? Production technologies, e.g. cost, scale, support required, flexibility competitive environment traiffs and tax incentives regional demand political, exchange rate and demand risk
- What happens in the third phase in the network design framework? Production methods available infrastructure
- What happens in the fourth phase in the network design framework? Factor costs logistics costs
- What are dicisions in the strategic network design? Number of locations, size and flexibility of plants acquisition of new production equipment and design of working centers within each plant value chain depth with itnernal and external activities
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- What ar the steps of the decision tree methodology? 1. Identfity the duration of each period and the number of T periods 2. Identify factors such as demand, price and exchange rate fluctuations 3. Identify representations of uncertainty for each factor 4. Identify the discount rate for each period 5. represent the dicision tree with defined states in each period as well as transition probability between the states in successive periods 6. Starting in period T, work back to period 0 identifying the optimal decision
- Whata are the proccesses for a structured production network design? 1. Project team Definition of a project team Create data base for project team 2. Definition of a Planning scope Definition of scope planning System environment determines system load of the subsystem investigated 3. Generation of planning data Data collection ( process parameters, quantiles, etc) Update of data base through feed back 4. Development of solution scenarios Development of an ideal plan development of alternative solutions scenarios Process design 5. Modelling and Visualisation Transparency Modelling with evaluation tools 6. Analysis Simulation Optimization Static analysis, mathematical optimization, dynamic simulation indicator-based assessment of solutions 7. Assessment Assessment and selection of alternative solutions Feedback by stakeholders 8. Proposal for decision Editing of assessment results decision support
- What cost factors affect the production network design? 1. Relative factor cost , e.g. relative labor cost, raw material, utility cost 2. Plant size, e.g. scale and utilization effect 3. Transport cost, proximity to demand and supply, transportation modes 4. Inventory holding cost, Proximity, demand uncertainty 5. Other, e.g. Taxes, Tariffs