1

INTRODUCTION TO SUPPLY CHAIN

By- Prof. Avinash Potdar

WHAT IS SUPPLY CHAIN ?

 Two or more parties linked by a flow of resources – typically material, information,

and money – that ultimately fulfill a customer request.
 The primary purpose of a supply Chain is to satisfy customer needs.
 Only one source of revenue – the customer.
 Payments between parties are just fund exchanges.
 Division of intra-Supply Chain payments are a function of power, market conditions, etc.

 Supply Chains try to maximize the total value generated :

Equals to = ( What customer pays) – (Total effort expended to fulfill)

WHAT IS LOGISTICS ?
 It is the process of planning & implementing cost-effective flow of goods from the
point of origin to the point of consumption.
 LOGISTIC is nothing but STORE and MOVE.
WHAT IS SUPPLY CHAIN MANAGEMENT?

 Logistics involves “ managing the flow of items, information, cash and ideas
through the coordination of supply chain processes and through the strategic
addition of place , period, and pattern values.”
- MIT Center of Transportation & Logistic.

 Supply Chain Management deals with the management of materials, information,

and financial flows in a network consisting of suppliers, manufacturers, distributors,
and customers.
- Standard Supply Chain Forum.

 “ Call it distribution or logistics or supply chain management, By whatever name it

is the sinuous, gritty and cumbersome process by which companies move material,
parts and products to customers.”
- Fortune (1994)
LOGISTIC Vs. SUPPLY CHAIN MANAGEMENT:

According to the Council of Supply Chain Management Professionals:

 Logistic Management is that part of supply Chain management that plans,

implements, and controls the efficient, effective forward and reverse flow and
storage of goods, services and related information between the point of origin and
the point of consumption in order to meet customer’s requirements.

 Supply Chain Management encompasses the planning and management of all

activities involved in sourcing and procurement, conversion, and all logistics
management activities. Importantly, it also includes coordination and collaboration
with channel partners, which can be suppliers, intermediaries, third party service
providers, and customers. In essence, supply chain management integrates supply
and demand management within and across companies.
 2

COMPARING HRM ACROSS INDUSTRIES

By- Prof. Nitasha Gutgutia

HUMAN RESOURCE MANAGEMENT (HRM) :
 HRM is management of procurement, development, compensation, integration &
maintenance of people resources of an organization in order to contribute duly to the
individual, organizational and social goods.

KEY HRM FUNCTIONS:

 Staffing:
 Manpower Planning-forecasting & budgeting, Hiring sources, Selection,
Employee on –boarding.
 Learning & development:
 Organizational Skill gap analysis, L&D planning(including career /succession
planning), L&D sources, implementation of Plan, Training Evaluation.
 Performance Management:
 Goal Setting exercise, Mid-year reviews, Annual review & feedback,
Development planning.
 Compensation & Benefits:
HRM IN PHARMACEUTICALS, HEALTHCARE & LIFE SCIENCES :

 HR has become a strategic function, with a holistic integrated approach.

 Formal processes are laid down with clear SOPs.
 Most HRM processes are system driven.
 Greater focus on smooth HR Operations than employee development &
engagement.

 There is presence of industrial relations at field force level(unionized employees).

 Differences in HR practices for Field force (unionized employees) & management
employees.
 Attrition level moderately high- Employee Retention & Engagement critical.

HRM in IT & ITeS :

 HR is a strategic function, with holistic , integrated approach.

 Formal processes are laid down with clear SOPs.
HRM in IT & ITeS (Continued) :

 All HRM processes are system driven.

 Equal focus on smooth HR operations & Employee Development & Engagement.
 No Industrial Relations Management, HR practices common across all employees.
 Attrition level highest – Employee Retention & Engagement highly critical.

HRM in Media, Entertainment & Advertising :

 HR function is more operational, administrative, developing & fragmented in

approach.
 Formal processes are being laid down.
 Few HRM processes are system driven – payroll, leave management.
 Greater focus on smooth HR operations than Employee Development &
Engagement.
 Differences in HR practices for Creative and Non Creative employees.
 High Attrition rate - Employee Retention & Engagement highly critical.
 3

CONTRACTING STRATEGY

By- Cajetan Fernandes

“ Contract Strategy means selecting organizational and contractual policies
required for execution of a specific project.”

 TYPES OF CONTRACTS:
1. Lump Sum Contract.
2. Item rate Contract
3. Cost Plus Contract.
4. BOT( Built Operate and Transfer)
5. Labor Contracts.

SELECTION OF CONTRACTS:
 Focus should be on :
 What is my requirement?
 What I need to achieve?
 The Concept is clear and will not have any change then we can adopt Lump sum contract as
the award can happen faster and design is ready.
SELECTION OF CONTRACTS (Continued):

 Same way if the design is not frozen and changes may take place, one can adopt the
Item rate contract and the work can be started.
 If you have strong supplier based and the procurement is strong. One can go for
cost plus contract or labour contract.
 If funds are not available or doesn’t want to invest but want to give advantage to
user. BOT(Built Operate and Transfer) can be adopted. E.g. Government Roads and
Bridges.
 The terms and conditions:
- follow standard pattern ( IS standards, BIS or Fiddic).
 “Hybrid Contracts” One can break the total works in to packages and pick and
choose the correct combination to avail the benefits.
- Like in construction, the civil and MEP are separated,
- This will give you much more flexibility and control over the requirement and the
changes after it’s awarded.
VENDOR ANALYSIS:
 Identify vendors:
- After knowing the scope of work to be awarded, the basic criteria is known.
- Search the vendors which fits into basic criteria, list them up for analysis.
The following can be used.
# The approved vendor list of company, # Google it,
# Use references, # Compare and shortlist.
 Compare the vendors on the parameters fixed, based on the scope of work.
 Ratings & weightage shall be defined to suit the requirement of project.
 Shortlist the vendors based on ratings.
 Only considered the vendors who are on the top of the rating scale.

CONCLUSION:
 Contracting Strategy is to choose the right type of contract, to modify the
contract to suit the requirement as per the scope of work.
 Select the Competent vendors for the type of contract selected and scope of
work and award the works to the best available Vendor at lowest possible price.
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KANO MODEL
(How to Delight your Customers?)

By- Nitesh Verma

KANO MODEL:
 A powerful and structured technique to address changing customer needs and
satisfaction.

HISTORY:
 Professor Noriaki Kano developed Kano Model in 1984 from Tokyo Rika University.
 He developed a set of ideas for planning a product, service or process. The model
helps in listing potential customer needs that the product, service or process should
perhaps try to satisfy.

KANO’s THEORY:
 For some customer requirements, customer satisfaction is proportional to the extent
to which the product or service is fully functional.
 Voice of the Customer is usually hazy and customer needs are not very clear.
 Customer ideas about quality are often confused and difficult to see clearly.
 Kano Model helps categorize invisible & hazy customer needs. As it makes customer
ideas about quality clear, many requirements emerge & they fall into several groups.
KANO MODEL ADDRESSES 3 TYPES OF CUSTOMER REQUIREMENT’S:

Satisfying Basic Satisfying Satisfying Excitement

Needs Performance Needs Needs

Allows a company to get Allows a company to Allows a company to

into the market. sustain and remain excel and be world
competitive. class.
1. One Dimensional Requirements:
 With regards to one-dimensional requirements, customer satisfaction is
proportional to the level of fulfillment.
 The higher the level of fulfillment, the higher the customer satisfaction & vice
versa.
 One-dimensional requirements are usually explicitly demanded by the
customer.

2. Must be Requirements:
 If not fulfilled, the customer will be extremely dissatisfied.
 On the other hand, as the customer takes these requirements for granted, their
fulfillment will not increase his satisfaction.
2. Must be Requirements (Continued):
 These are the basic criteria for a product or service & fulfilling these will only
lead to a state of “not dissatisfied”.
 The customer regards these as pre-requisites, and does not explicitly demand
them.
 If not fulfilled, the customer will not be interested in the product or service.

3. Attractive Requirements:
 These requirements are the product criteria which have the greatest influence
on how satisfied a customer will be with a given product or service.
 These are neither explicitly expressed nor expected by the customer.
 Fulfilling these requirements leads to more than proportional satisfaction.
 If not fulfilled, there is no feeling of dissatisfaction.

STRATEGIC GOALS:
 Fulfill all must-be requirements.
 Be competitive with regards to one-dimensional requirements.
 Stand out from the rest with regard’s to attractive requirements.
 5

PERT (PROGRAM EVALUATION &

REVIEW TECHNIQUE)

By- Gaurang Chandarana

WHAT IS PROJECT
 Project is nothing but implementation of certain set of activities, this is a time frame.
it means project is time bound, its not on going.

WHAT IS PERT?:
 The Program (or Project) Evaluation and Review Technique, commonly
abbreviated PERT. It is a model designed to analyze and represent the tasks involved
in completing a project.
 It also gives the minimus time required to complete a project and the time taken for
the individual activities.
 It is commonly used in conjunction with CPM(Critical Path Methhod).

BACKGROUND:
 PERT was developed primarily to simplify the planning and scheduling of large and
complex projects.
 It was developed for the U.S. Navy Special Projects Office in 1957 to support the
U.S. Navy’s Polaris nuclear submarine project
 It can incorporate uncertainly by making it possible to schedule a project while not
knowing precisely the details and durations of all the activities.
BACKGROUND (CONTINUED):
 It is more of an event-oriented technique rather than start- and completion-oriented
and is used more in projects where time, rather than cost, is the major factor.
 It is applied to very large-scale, one-time, complex, non-routine infrastructure and
Research & Development projects.
 An example of this war for the 1968 Winter Olympics in Grenoble which applied
PERT from 1965 until the opening of the 1968 Games.

RULES:
 A PERT chart is tool that facilitates decision making. The first draft of a PERT chart
will number its events sequentially in 10s (10, 20, 30, etc) to allow the later insertion
of additional events.
 Two consecutive events in a PERT chart are linked by activities, which are
conventionally represented as arrows.
 The events are presented in a logical sequence and no activity can commence until its
immediately preceding event is completed.
 The planner decides which milestones should PERT events & their Proper Sequence.
 A PERT Chart may have multiple pages with many sub-tasks.
 PERT is valuable to manage where multiple tasks occurring simultaneously.
IMPLEMENTATION:
 For each task, show the earliest start date.
 Show the estimated length of time required to complete the activity.
 Whether the activities are parallel or sequential.
 If the activities are sequential, show which stages they depend on.
 Prepare a Gantt Chart, Prepare a network Diagram, Map critical Path, Crash action.

ADVANTAGES:
 PERT chart explicitly defines and makes visible dependencies (precedence
relationships) between the elements.
 PERT facilitates identification of the critical path and makes the visible.
 PERT facilitates identification of early start, late start, and slack for each activity.
 PERT provides for potentially reduced project duration due to better understanding of
dependencies leading to improved overlapping of activities & tasks where feasible.
LIMITATIONS:
 There can be potentially 1000’s of activities & individual dependency relationships.
 The network charts tend to be large & unwieldy requiring several pages to print and
requiring special size papers.