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When managers make dicidions they must think of their environment, the

environments as follows:

☐Internal –company culture, functional relationships, reward and

measurement system

☐External – competitive, economic, legal, and political environments Resources – all assets(资产) a firm can bring to bear, including:

people,

technology,

infrastructure,

materials,

money.

Success strategies consist of:

1. A clearly communicated goal to help customers succeed

2. A clear understanding of downstream requirements

3.Investment in customer-valued capabilities

4.Training provided to customers

5.Resources shared with customers

When cost performance improves, companies:

⏹Increase market share

⏹Increase scale economies

⏹Improve profitability

⏹Invest in future capabilities

Customers seek value in terms of:

⏹Quality

⏹Cost

⏹Flexibility

⏹Delivery

⏹Innovation

Cost Leadership– ability to deliver at a cost below competitors 成本导向

Differentiation– ability to deliver some unique value which reduces price sensitivity 差异化Systems thinking requires that companies and their employees understand their place in the larger chain. Therefore, the following must be addressed:

⏹Establish the Core Goal

⏹Define System Boundaries

⏹Determine Interrelationships

⏹Determine Information Requirements

⏹Perform Trade-Off Analysis

⏹Consider System Constraints

Systems thinking is the holistic process of considering both the immediate local outcomes and the longer-term system-wide ramifications 枝of decisions. It requires:

⏹ A Holistic View 整体思维

⏹Information Availability and Accuracy 有效信息

⏹Cross-Functional and Interorganizational Teamwork 部门协作

⏹Measurement

⏹Systems Analysis

Each process consists of a set of flows and value-added activities,as following Information Flow

⏹Physical Flow

⏹Financial Flow

New Product Development “Design for”could consider:

⏹Design for Manufacturability – ease of production

⏹Design for Purchasing – support the product from the existing supply base

⏹Design for Logistics – ease of distribution

⏹Design for Environment – minimize environment impact

⏹Design for Disassembly – disassemble, recycle, and reuse

⏹Design for Reuse – new design using existing parts

NPD New product development

Target Cost must include:

⏹Cost of Development

⏹Cost of Materials

⏹Labor

⏹Logistics

⏹Packaging

⏹Equipment

⏹Utilities

⏹Sales and Marketing Expense

SCOR Mode l(supply chain operations reference model)

Elements of the SCOR Model

Plan

Source

Make

Deliver

Return

Transportation Modes

⏹Trucks

⏹TL

⏹LTL 卡车零担(货物)

⏹Rail

⏹Carload

⏹Intermodal 联合运输

Air

⏹Package Carriers

⏹Water

⏹Pipeline

EOQ

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