Supply chain project types

In Figure 5.4 we described the types of supply chain projects an organization might undertake. The six types included strategic and nonstrategic projects at the function (or department), the business unit, and the supply chain (multicompany) levels. 

Note that the maturity matrix applies to any project work conducted in the organization, not just supply chain projects. Other project types could include new product development, information systems improvements, facility additions, and incorporating acquisitions into operations. 

Sourcing efforts to rationalize procurement across the supply chain. This type of project often produces immediate savings in the bill for purchased goods and services. It requires mobilizing internal teams as well as partnering with outside suppliers. 

Our discussion of Task 1 describes how one might go about designing a strategy that defines what supply chain projects you should pursue. The discussions of the remaining foiu tasks more or less assume that one has a charter that requires knowledge in each particular area. And that charter arises from the need to implement a supply chain-related project. This project may be either strategic or nonstrategic and have a scope of any of the three types — fxmctional, business xmit, or supply chain. 

The project group designed a questionnaire with 286 questions, structured to cover each substep of all the types of major steps encountered in the supply chains. If an enterprise covered more than one major step, this meant that more than one interview was carried out, with more than one person or more interviews with the same person. For each enterprise, the interviewees typically answered 150-200 questions about 1-3 major steps. The questions were designed by experts to describe the principles and intentions of the... 

The constellations of actors in the supply chain vary between comparatively simple and linear stracture with few actors, and highly networked and complex stractures. Two basic types of iimovative system and innovation level complexity can be deduced and to which each of the 13 case studies of the SubChem project can be assigned. As an ideal type ... 

The SubChem project has produced numerous interesting scientific perspectives which require further examination. In the area of framework conditions, questions arise relating to the quality of markets or the type of competition as the main driving forces of innovation. An increased comprehension of the markets where companies (or supply chains) operate also reveals a novel appreciation of their scope and restrictions for action as well as their vulnerability towards other external influences. For example, market research explicidy devoted to the types of competition would be beneficial and provide comparative observations for a more precise classification than we have been able to discern with our resources. 

The net effect of the changes in the supply chain was to provide a more finely tuned link between supply and demand by product type. The impact on the supply chain was projected to be 14 million (out of 87.9 million spent). The impacts on individual steps in the supply chain are as shown in Figure 1.12. This example shows how supply chain structure and its adjustment can impact cost competitiveness. 

Strategy. The usual process for supply chain improvement sets result-type objectives. The strategy begins the project and delivers the roadmap for achieving the results. As the project proceeds, progressive elaboration causes the strategy and the follow-on projects to be redefined. 

The E-type projects are joint efforts with multicompany participation. We address the issues surrounding alliance and partnering projects in our discussion of partnerships beginning in Chapter 19. Chapter 29 also describes some techniques for coordinating supply chain change during the product development process. The discussions in these chapters can apply to all five types of project shown in Table 12.1. 

Figure 24.1 is a fictitious top-down flowchart of a supply chain that we use in illustrating some of our documentation examples. The Figure 24.1 map is the type of presentation that might establish the scope of a project and acquaint executives with the issues faced in the project. 

New theories or frameworks need to be developed to identify patterns within or between industry sectors and product development project types. Several attempts have been made in the past, while new challenges have also emerged. In this chapter CE has been described as an innovation system aimed at generating a production system that is capable to sustainably produce the new product envisioned. The production system is often also a complex system of collaborating companies, for example in a supply chain. Based on this view a framework has been proposed that can be used to describe CE processes and its resulting production system for farther analysis. Examples of innovation in the food industry have been presented, which show that several innovation systems may co-exist and interact. In addition, specific properties of food production systems, in particular integration and coordination, have been presented that need to be taken into account when developing a production system. 

Finally, there are multiple financial measures for improvement projects. Indeed most proposed projects will encoxmter a capital budgeting process at one time or anotiier on the path to approval and implementation. This process frequently includes a financial justification. There, projects will be subjected to Internal Rates of Return, Net Present Value, or Earned Value types of examination. We ll discuss these in more depth in our chapters on cost reduction in the supply chain. 

The Design Team (DT) includes those who work in the process or area under study. The DT can also include consultants, suppliers, customers, and other stakeholders in the improvement. Chapter 11 described recommended participation in different types of projects. The Front Line Team (FLT) represents users of the supply chain process under review. They are available to test solutions and offer "sanity checks" on questions of design. The FLT may... 

As supply chain and operations personnel, we are responsible for projects of all types. Our expertise is called upon for implementing new processes that help the organization become more productive, more efficient, and more effective in its dealings with employees, suppliers, and customers. We are responsible for carrying out projects... 

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