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117-499: A conventional definition of lead time in a supply chain management context is the time from the moment the customer places an order (the moment the supplier learns of the requirement) to the moment it is ready for delivery. In the absence of finished goods or intermediate (work in progress) inventory, it is the time it takes to actually manufacture the order without any inventory other than raw materials. The Chartered Institute of Procurement & Supply identifies "total lead time" as

234-417: A l Q u a n t i t y D e l i v e r {\displaystyle OLTV={\frac {\sum _{j}{Quantity_{j}\cdot OLT_{j}}}{_{TotalQuantityDeliver}}}\,} By doing this the company will be able to find a relation of volume weighted between the quantities of material required for an order and the time requested to accomplish it. The volume metric could be applied to

351-432: A combination of "internal lead time" (the time required for the buying organisation's internal processes to progress from identification of a need to the issue of a purchase order ) and "external lead time" (the time required for the supplying organisation's processes, including any development required, manufacture, dispatch and delivery). The lead time applicable to material flows within a supply chain may be paralleled by

468-430: A competitive advantage. In the late 1990s, "supply chain management" (SCM) rose to prominence, and operations managers began to use it in their titles with increasing regularity. A supply chain, as opposed to supply chain management, is a set of firms who move materials "forward", or a set of organizations, directly linked by one or more upstream and downstream flows of products, services, finances, or information from

585-706: A continuous information flow. However, in many companies, management has concluded that optimizing product flows cannot be accomplished without implementing a process approach. The key supply chain processes as stated by Lambert (2004) are: Much has been written about demand management . Best-in-class companies have similar characteristics, which include the following: One could suggest other critical supply business processes that combine these processes stated by Lambert, such as: Effective business process integration in supply chain management requires not only continuous communication, but also strategic coordination across departments and partner companies. The main reason for this

702-443: A dish and the waiter writes it in his notepad. At that moment the customer has made an order which the restaurant has accepted – Order Lead Time and Order Handling Time have begun. Now the waiter marks the order in the cash register, rips the paper from the notepad, takes it into the kitchen and puts into the order queue. The order has been handled and is waiting in the factory (kitchen) for manufacturing. As there are no other customers,

819-455: A few key strategic activities. This inter-organizational supply network can be acknowledged as a new form of organization. However, with the complicated interactions among the players, the network structure fits neither "market" nor "hierarchy" categories. It is not clear what kind of performance impacts different supply-network structures could have on firms, and little is known about the coordination conditions and trade-offs that may exist among

936-421: A few. Beyond executing the change in the field, the change normally needs to be documented to show what was actually constructed. This is referred to as change management. Hence, the owner usually requires a final record to show all changes or, more specifically, any change that modifies the tangible portions of the finished work. The record is made on the contract documents – usually, but not necessarily limited to,

1053-410: A fundamentally new system. This leads to a panarchical interpretation of a supply chain, embedding it into a system of systems , allowing to analyze the interactions of the supply chain with systems that operate at other levels (e.g. society, political economy, planet Earth). For example, these three components of resilience can be discussed for the 2021 Suez Canal obstruction , when a ship blocked

1170-468: A little more difficult to use safely, requiring some strategy, risk or caution. Supply chain management In commerce , supply chain management ( SCM ) deals with a system of procurement (purchasing raw materials/components), operations management , logistics and marketing channels , through which raw materials can be developed into finished products and delivered to their end customers . A more narrow definition of supply chain management

1287-442: A positive test result with mammography , whereas the underlying disease would have taken many more years to manifest. Lead time in video games can refer to the amount of time certain special, important actions in high- twitch action games , such as using health -recovering items, may need to take in order to be completed successfully. Lead time can be used to prevent players from abusing helpful abilities or items by making them

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1404-455: A product from a truck, inspect it, and move it into storage ("put-away time") is not trivial. With tight manufacturing constraints or when a company is using Just In Time manufacturing, it is important for supply chain to know how long their own internal processes take. Lead time consists of: Example Company A needs a part that can be manufactured in two days once Company B has received an order. It takes three days for company A to receive

1521-772: A product. This set of partners may change according to a given market, region, or channel, resulting in a proliferation of trading partner environments, each with its own unique characteristics and demands. Specialization within the supply chain began in the 1980s with the inception of transportation brokerages, warehouse management (storage and inventory), and non-asset-based carriers, and has matured beyond transportation and logistics into aspects of supply planning, collaboration, execution, and performance management. Market forces sometimes demand rapid changes from suppliers, logistics providers, locations, or customers in their role as components of supply chain networks. This variability has significant effects on supply chain infrastructure, from

1638-426: A project to requirements might be agreeing to deliver a computer system that will process staff data and manage payroll, holiday, and staff personnel records in shorter times with reduced errors. Under BRM, the agreement might be to achieve a specified reduction in staff hours and errors required to process and maintain staff data after the system installation when compared without the system. Critical path method (CPM)

1755-417: A project. With the correct documentation, a project's success can be tracked and observed as the project goes on. If performed correctly documentation can be the backbone of a project's success Monitoring and controlling consist of those processes performed to observe project execution so that potential problems can be identified in a timely manner and corrective action can be taken, when necessary, to control

1872-537: A second near Riverside, California . The centroid near Dayton is particularly important because it is closest to the population center of the US and Canada. Dayton is within 500 miles of 60% of the US population and manufacturing capacity, as well as 60% of Canada's population. The region includes the interchange between I-70 and I-75 , one of the busiest in the nation, with 154,000 vehicles passing through per day, of which 30–35% are trucks hauling goods. In addition,

1989-459: A significant exploratory element (e.g., research and development ), these stages may be supplemented with decision points (go/no go decisions) at which the project's continuation is debated and decided. An example is the Phase–gate model . Project management relies on a wide variety of meetings to coordinate actions. For instance, there is the kick-off meeting, which broadly involves stakeholders at

2106-447: A source to a customer. Supply chain management is the management of such a chain. Other commonly accepted definitions of supply chain management include: Mentzer et al. make a further distinction between "supply chain management" and a "supply chain orientation". The latter term involves a recognition that a business strategy cannot be fulfilled without managing the activities of suppliers and customers upstream and downstream, whereas

2223-463: A stage 2 supply chain, these are integrated under one plan, and enterprise resource planning (ERP) is enabled. A stage 3 supply chain is one that achieves vertical integration with upstream suppliers and downstream customers. An example of this kind of supply chain is Tesco . It is the third movement of supply chain management development, the globalization era, can be characterized by the attention given to global systems of supplier relationships and

2340-399: A structure can be defined as "a group of semi-independent organizations, each with their capabilities, which collaborate in ever-changing constellations to serve one or more markets in order to achieve some business goal specific to that collaboration". The importance of supply chain management proved crucial in the 2019-2020 fight against the coronavirus (COVID-19) pandemic that swept across

2457-432: A useful economic consideration. In mathematics and physics , a centroid is the arithmetic mean position of all the points in a plane figure . For supply chain management, a centroid is a location with a high proportion of a country's population and a high proportion of its manufacturing, generally within 500 mi (805 km). In the US, two major supply chain centroids have been defined, one near Dayton, Ohio , and

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2574-430: A very different discipline. For example, project managers have a key role in improving the translation even when they do not speak the language of the translation, because they know the study objectives well to make informed decisions. Similarly, research study management can also apply a project manage approach. There is public project management that covers all public works by the government, which can be carried out by

2691-422: Is PRINCE2 . Traditionally (depending on what project management methodology is being used), project management includes a number of elements: four to five project management process groups, and a control system. Regardless of the methodology or terminology used, the same basic project management processes or stages of development will be used. Major process groups generally include: In project environments with

2808-401: Is supply chain resilience , defined as "the capacity of a supply chain to persist, adapt, or transform in the face of change". For a long time, the interpretation of resilience in the sense of engineering resilience (= robustness ) prevailed in supply chain management, leading to the notion of persistence . A popular implementation of this idea is given by measuring the time-to-survive and

2925-762: Is also important for organizational learning. Firms with geographically more extensive supply chains connecting diverse trading cliques tend to become more innovative and productive. The security-management system for supply chains is described in ISO/IEC 28000 and ISO/IEC 28001 and related standards published jointly by the ISO and the IEC . Supply Chain Management draws heavily from the areas of operations management, logistics, procurement, and information technology, and strives for an integrated approach. An important element of SCM

3042-402: Is an algorithm for determining the schedule for project activities. It is the traditional process used for predictive-based project planning. The CPM method evaluates the sequence of activities, the work effort required, the inter-dependencies, and the resulting float time per line sequence to determine the required project duration. Thus, by definition, the critical path is the pathway of tasks on

3159-401: Is an extension to the theory and practice of EVM. In critical studies of project management, it has been noted that phased approaches are not well suited for projects which are large-scale and multi-company, with undefined, ambiguous, or fast-changing requirements, or those with high degrees of risk, dependency, and fast-changing technologies. The cone of uncertainty explains some of this as

3276-523: Is based on a project as a production system view, in which a project transforms inputs (raw materials, information, labor, plant & machinery) into outputs (goods and services). Product-based planning is a structured approach to project management, based on identifying all of the products (project deliverables ) that contribute to achieving the project objectives. As such, it defines a successful project as output-oriented rather than activity- or task-oriented. The most common implementation of this approach

3393-559: Is concerned with topics related to resilience , sustainability , and risk management , among others. Some suggest that the "people dimension" of SCM, ethical issues, internal integration, transparency/visibility, and human capital/talent management are topics that have, so far, been underrepresented on the research agenda. Supply chain management, techniques with the aim of coordinating all parts of SC, from supplying raw materials to delivering and/or resumption of products, tries to minimize total costs with respect to existing conflicts among

3510-414: Is easy to see whether or not a project's requirement has been met. To go along with that, documentation provides information regarding what has already been completed for that project. Documentation throughout a project provides a paper trail for anyone who needs to go back and reference the work in the past. In most cases, documentation is the most successful way to monitor and control the specific phases of

3627-470: Is famous for his use of the Gantt chart as a project management tool (alternatively Harmonogram first proposed by Karol Adamiecki ); and Henri Fayol for his creation of the five management functions that form the foundation of the body of knowledge associated with project and program management. Both Gantt and Fayol were students of Frederick Winslow Taylor 's theories of scientific management . His work

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3744-426: Is happening to keep a project on track. This can help to reduce the risk of a completed project being a failure by delivering agreed upon requirements (outputs) i.e. project success but failing to deliver the benefits (outcomes) of those requirements i.e. product success. Note that good requirements management will ensure these benefits are captured as requirements of the project and their achievement monitored throughout

3861-528: Is meant to increase creativity, information sharing, and collaboration among users. At its core, the common attribute of Web 2.0 is to help navigate the vast information available on the Web in order to find what is being bought. It is the notion of a usable pathway. SCM 2.0 replicates this notion in supply chain operations. It is the pathway to SCM results, a combination of processes, methodologies, tools, and delivery options to guide companies to their results quickly as

3978-521: Is referred to as IT project management and which specializes in the delivery of technical assets and services that are required to pass through various lifecycle phases such as planning, design, development, testing, and deployment. Biotechnology project management focuses on the intricacies of biotechnology research and development. Localization project management includes application of many standard project management practices to translation works even though many consider this type of management to be

4095-542: Is that it can effectively improve agility. At the same time, this integration can help businesses respond quickly to changes in demand and improve customer satisfaction. Integration of suppliers into the new product development process was shown to have a major impact on product target cost, quality, delivery, and market share. Tapping into suppliers as a source of innovation requires an extensive process characterized by development of technology sharing, but also involves managing intellectual property issues. There are gaps in

4212-416: Is the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronising supply with demand and measuring performance globally". This can include the movement and storage of raw materials , work-in-process inventory , finished goods, and end to end order fulfilment from

4329-479: Is the forerunner to modern project management tools including work breakdown structure (WBS) and resource allocation . The 1950s marked the beginning of the modern project management era, where core engineering fields came together to work as one. Project management became recognized as a distinct discipline arising from the management discipline with the engineering model. In the United States, prior to

4446-472: Is to optimize the allocation of necessary inputs and apply them to meet predefined objectives. The objective of project management is to produce a complete project which complies with the client's objectives. In many cases, the objective of project management is also to shape or reform the client's brief to feasibly address the client's objectives. Once the client's objectives are established, they should influence all decisions made by other people involved in

4563-525: Is to increase the flow of projects in an organization ( throughput ). Applying the first three of the five focusing steps of TOC, the system constraint for all projects, as well as the resources, are identified. To exploit the constraint, tasks on the critical chain are given priority over all other activities. Earned value management (EVM) extends project management with techniques to improve project monitoring. It illustrates project progress towards completion in terms of work and value (cost). Earned Schedule

4680-535: The Financial Times . In 1983 WirtschaftsWoche in Germany published for the first time the results of an implemented and so called "Supply Chain Management project", led by Wolfgang Partsch . In the mid-1990s, the term "supply chain management" gained popularity when a flurry of articles and books came out on the subject. Supply chains were originally defined as encompassing all activities associated with

4797-426: The management of such distinct production approaches requires the development of distinct technical skills and management strategies. Until 1900, civil engineering projects were generally managed by creative architects, engineers, and master builders themselves, for example, Vitruvius (first century BC), Christopher Wren (1632–1723), Thomas Telford (1757–1834), and Isambard Kingdom Brunel (1806–1859). In

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4914-415: The methodology employed, careful consideration must be given to the overall project objectives, timeline, and cost, as well as the roles and responsibilities of all participants and stakeholders . Benefits realization management (BRM) enhances normal project management techniques through a focus on outcomes (benefits) of a project rather than products or outputs and then measuring the degree to which that

5031-467: The time-to-recover of the supply chain, allowing to identify weak points in the system. The APICS Certified Supply Chain Professional (CSCP) program emphasizes the importance of managing risks and enhancing resilience. According to APICS, in order to manage global interruptions and preserve operational continuity, a robust supply chain is vital. More recently, the interpretations of resilience in

5148-496: The velocity of inventory movement. Organizations increasingly find that they must rely on effective supply chains, or networks, to compete in the global market and networked economy. In Peter Drucker 's (1998) new management paradigms, this concept of business relationships extends beyond traditional enterprise boundaries and seeks to organize entire business processes throughout a value chain of multiple companies. According to Drucker, "the greatest change in corporate culture—and

5265-408: The 1950s, organizations started to apply project-management tools and techniques more systematically to complex engineering projects. As a discipline, project management developed from several fields of application including civil construction, engineering, and heavy defense activity. Two forefathers of project management are Henry Gantt , called the father of planning and control techniques, who

5382-413: The 1950s, projects were managed on an ad-hoc basis, using mostly Gantt charts and informal techniques and tools. At that time, two mathematical project-scheduling models were developed. The critical path method (CPM) was developed as a joint venture between DuPont Corporation and Remington Rand Corporation for managing plant maintenance projects. The program evaluation and review technique (PERT),

5499-571: The 1960s and developed through the 1990s by the introduction of enterprise resource planning (ERP) systems. This era has continued to develop into the 21st century with the expansion of Internet-based collaborative systems. This era of supply chain evolution is characterized by both increasing value-added and reducing costs through integration. A supply chain can be classified as a stage 1, 2, or 3 network. In stage 1–type supply chain, systems such as production, storage, distribution, and material control are not linked and are independent of each other. In

5616-465: The 21st century, changes in the business environment have contributed to the development of supply chain networks. First, as an outcome of globalization and the proliferation of multinational companies, joint ventures, strategic alliances , and business partnerships, significant success factors were identified, complementing the earlier " just-in-time ", lean manufacturing , and agile manufacturing practices. Second, technological changes, particularly

5733-440: The 4 types of OLT. The figure obtained from this calculation will be the average time (e.g. in days) between order placing and the requested delivery date of a specific customer under consideration of the average quantities ordered during that particular time. The correct analysis of OLT will give the company: In project management , lead time is the time it takes to complete a task or a set of interdependent tasks. The lead of

5850-580: The I-75 corridor is home to the busiest north–south rail route east of the Mississippi River . Project management Project management is the process of supervising the work of a team to achieve all project goals within the given constraints. This information is usually described in project documentation , created at the beginning of the development process. The primary constraints are scope , time and budget . The secondary challenge

5967-531: The Iron Triangle or Triple Constraint in order for projects to be considered a success or failure. For each type of project management, project managers develop and utilize repeatable templates that are specific to the industry they're dealing with. This allows project plans to become very thorough and highly repeatable, with the specific intent to increase quality, lower delivery costs, and lower time to deliver project results. A 2017 study suggested that

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6084-460: The activities better or more cost effectively. The effect is to increase the number of organizations involved in satisfying customer demand, while reducing managerial control of daily logistics operations. Less control and more supply chain partners lead to the creation of the concept of supply chain management. Supply chain management is concerned with improving trust and collaboration among supply chain partners, thus improving inventory visibility and

6201-443: The assumptions of globalization, outsourcing and linear supply chains and to envision alternatives; in this example this could lead to local and circular supply chains that do not need global transportation routes any longer. Six major movements can be observed in the evolution of supply chain management studies: creation, integration, globalization , specialization phases one and two, and SCM 2.0. The term "supply chain management"

6318-495: The backlog, to the end of the iteration or release. A smaller lead time means that the process is more effective and the project team is more productive. Lead time is also the saved time by starting an activity before its predecessor is completed. According to the PMBOK (7th edition) by PMI, lead is "The amount of time whereby a successor activity can be advanced with respect to a predecessor activity". An example would be scheduling

6435-472: The canal for several days. Persistence means to "bounce back"; in our example it is about removing the ship as quickly as possible to allow "normal" operations. Adaptation means to accept that the system has reached a "new normal" state and to act accordingly; here, this can be implemented by redirecting ships around the African cape or use alternative modes of transport. Finally, transformation means to question

6552-399: The chain partners. An example of these conflicts is the interrelation between the sale department desiring to have higher inventory levels to fulfill demands and the warehouse for which lower inventories are desired to reduce holding costs . In 1982, Keith Oliver , a consultant at Booz Allen Hamilton , introduced the term "supply chain management" to the public domain in an interview for

6669-544: The chef rings a bell and stops his clock. At the same time, the waiter stops calculating Manufacturing Lead Time and rushes through the kitchen door to get the food while it is hot. When he picks it up, he begins timing the Delivery Lead Time that ends when the dish is served to the customer, who can now happily say that the Order Lead Time was shorter than he had expected. Possible ways of shortening

6786-423: The complexity and speed of the supply chain increase due to global competition; rapid price fluctuations; changing oil prices; short product life cycles; expanded specialization; near-, far-, and off-shoring; and talent scarcity. Increasing volatility has characterized supply chains since about 2000. Douglass in 2010 referred to an SCM management style known as "extreme supply chain management", which: recognizes

6903-440: The concept of "information lead time". Mason-Jones and Towill report that reductions in both material flow lead time and information lead time are necessary to secure supply chain performance improvements. Several writers have referred to the importance of "information enriched supply chains" in this context. In the manufacturing environment, lead time has the same definition as that used in supply chain management , but it includes

7020-414: The date when the order is provided to the supplier. The OLT Actual will be determined by the difference between the day the provider deliver the material (Delivery date) and the date when they enter the order in the system. The OLT Confirmed will be determined by the difference between the date the confirmed date by the provider to deliver the material in the customer facilities (Confirmed date) and

7137-544: The date when they provide the order to the supplier. The Average OLT based on Volume (OLT) is the addition of all the multiplications between the volume of product we deliver (quantity) and the OLT divided by the total quantity delivered in the period of time we are studying for that specific facility. O L T V = ∑ j Q u a n t i t y j ⋅ O L T j T o t

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7254-405: The design drawings. The end product of this effort is what the industry terms as-built drawings, or more simply, "as built." The requirement for providing them is a norm in construction contracts. Construction document management is a highly important task undertaken with the aid of an online or desktop software system or maintained through physical documentation. The increasing legality pertaining to

7371-440: The dramatic fall in communication costs (a significant component of transaction costs), have led to changes in coordination among the members of the supply chain network. Many researchers have recognized supply network structures as a new organizational form, using terms such as " Keiretsu ", "Extended Enterprise", "virtual supply chain", " Global Production Network ", and "Next Generation Manufacturing System". In general, such

7488-485: The entire project would be the overall duration of the critical path for the project. According to the PMBOK (7th edition) by the Project Management Institute (PMI), lead time is the "time between a customer request and the actual delivery." The lead time is a deliverable metric and a customary measure. The lead time shows the amount of elapsed time from a chunk of work or story entering

7605-467: The evolution of processes, methods, and tools to manage them in a new era of globalization and specialization. One element of this is the growing popularity of supply chain collaboration platforms that connect multiple buyers and suppliers with financial institutions, enabling them to conduct automated supply chain finance transactions. Web 2.0 is a trend in the use of the World Wide Web that

7722-471: The execution of the project. The key benefit is that project performance is observed and measured regularly to identify variances from the project management plan. Monitoring and controlling include: Two main mechanisms support monitoring and controlling in projects. On the one hand, contracts offer a set of rules and incentives often supported by potential penalties and sanctions. On the other hand, scholars in business and management have paid attention to

7839-450: The expansion of supply chains beyond national boundaries and into other continents. Although the use of global sources in organizations' supply chains can be traced back several decades (e.g., in the oil industry), it was not until the late 1980s that a considerable number of organizations started to integrate global sources into their core business. This era is characterized by the globalization of supply chain management in organizations with

7956-419: The firm or the supplier-buyer relationship. Among the few exceptions is the relational view , which outlines a theory for considering dyads and networks of firms as a key unit of analysis for explaining superior individual firm performance (Dyer and Singh, 1998). The management of supply chains involve a number of specific challenges regarding the organization of relationships among the different partners along

8073-560: The first integrated process for portfolio, program, and project management ( total cost management framework). In 1969, the Project Management Institute (PMI) was formed in the USA. PMI publishes the original version of A Guide to the Project Management Body of Knowledge (PMBOK Guide) in 1996 with William Duncan as its primary author, which describes project management practices that are common to "most projects, most of

8190-412: The flow and transformation of goods from raw materials through to the end user or final consumer , as well as the associated information flows. Mentzer et al. consider it worthy of note that the final consumer was included within these early definitions. Supply chain management was then further defined as the integration of supply chain activities through improved supply chain relationships to achieve

8307-669: The former term is used for "the actual implementation of this orientation". Supply chain visibility, in its origins, was concerned with knowledge of the location/production stage and expected delivery date of incoming products and materials, so that production could be planned, but the development of the term has enabled it to be used to plan orders using knowledge of potential supplies, and to track post-production processes as far as delivery to customers. Supply chain management software includes tools or modules used to execute supply chain transactions, manage supplier relationships, and control associated business processes. The overall goal of

8424-527: The foundation layers of establishing and managing electronic communication between trading partners to more complex requirements such as the configuration of processes and workflows that are essential to the management of the network itself. Supply chain specialization enables companies to improve their overall competencies in the same way that outsourced manufacturing and distribution has done; it allows them to focus on their core competencies and assemble networks of specific, best-in-class partners to contribute to

8541-419: The goal of increasing their competitive advantage, adding value, and reducing costs through global sourcing. In the 1990s, companies began to focus on "core competencies" and specialization. They abandoned vertical integration, sold off non-core operations, and outsourced those functions to other companies. This changed management requirements, as the supply chain extended beyond the company walls and management

8658-409: The government agencies or contracted out to contractors. Another classification of project management is based on the hard (physical) or soft (non-physical) type. Common among all the project management types is that they focus on three important goals: time, quality, and cost. Successful projects are completed on schedule, within budget, and according to previously agreed quality standards i.e. meeting

8775-672: The initiation stage, the project is planned to an appropriate level of detail (see an example of a flowchart ). The main purpose is to plan time, cost, and resources adequately to estimate the work needed and to effectively manage risk during project execution. As with the Initiation process group, a failure to adequately plan greatly reduces the project's chances of successfully accomplishing its goals. Project planning generally consists of Additional processes, such as planning for communications and for scope management, identifying roles and responsibilities, determining what to purchase for

8892-399: The integrated planning and execution of processes required to optimize the flow of materials, information and capital in functions that broadly include demand planning, sourcing, production, inventory management and logistics—or storage and transportation. Supply chain management strives for an integrated, multidisciplinary, multimethod approach. Current research in supply chain management

9009-424: The late 1990s and has taken root primarily in transportation and collaboration categories. This has progressed from the application service provider (ASP) model from roughly 1998 through 2003 to the on-demand model from approximately 2003 through 2006, to the software as a service (SaaS) model currently in focus today. The term SCM 2.0 has been coined to describe both changes within supply chains themselves as well as

9126-409: The lead time: To best meet the customer needs, a company should work towards the shortest possible lead time in manufacturing, production, and delivery. It can be helped by: When talking about Order Lead Time (OLT) it is important to differentiate between the definitions that may exist around this concept. Although they look similar, there are differences between them that help the industry to model

9243-441: The literature on supply chain management studies at present. A few authors, such as Halldorsson et al., Ketchen and Hult (2006), and Lavassani et al. (2009), have tried to provide theoretical foundations for different areas related to supply chain by employing organizational theories, which may include the following: However, the unit of analysis of most of these theories is not the supply chain but rather another system, such as

9360-1002: The need for collective, rather than sequential, risk management and facilitates collaboration on a new scale that is necessary for survival. It challenges companies to be "perpetually vigilant". Successful SCM requires a change from managing individual functions to integrating activities into key supply chain processes. In an example scenario, a purchasing department places orders as its requirements become known. The marketing department, responding to customer demand, communicates with several distributors and retailers as it attempts to determine ways to satisfy this demand. Information shared between supply chain partners can only be fully leveraged through business process integration , e.g., using electronic data interchange . Supply chain business process integration involves collaborative work between buyers and suppliers, joint product development, common systems, and shared information. According to Lambert and Cooper (2000), operating an integrated supply chain requires

9477-475: The network diagram that has no extra time available (or very little extra time)." Critical chain project management (CCPM) is an application of the theory of constraints (TOC) to planning and managing projects and is designed to deal with the uncertainties inherent in managing projects, while taking into consideration the limited availability of resources (physical, human skills, as well as management & support capacity) needed to execute projects. The goal

9594-405: The objective, participant list, and facilitation methods. The initiating processes determine the nature and scope of the project. If this stage is not performed well, it is unlikely that the project will be successful in meeting the business' needs. The key project controls needed here are an understanding of the business environment and making sure that all necessary controls are incorporated into

9711-423: The order behavior of their customers. The four definitions are : The OLT Requested will be determined by the difference between the date the customer wants the material in his facilities (wish date) and the date when they provided its order to the supplier. The OLT Quote will be determined by the difference between the date the customer agree to receive the material in their facilities (Quote date) and

9828-512: The organization. For example, when working on a brick-and-mortar design and construction, projects will typically progress through stages like pre-planning, conceptual design, schematic design, design development, construction drawings (or contract documents), and construction administration. While the phased approach works well for small, well-defined projects, it often results in challenge or failure on larger projects, or those that are more complex or have more ambiguities, issues, and risks - see

9945-442: The other hand, allows for stochastic activity times; the times at which each activity will be carried out are uncertain or varied. Because of this core difference, CPM and PERT are used in different contexts. These mathematical techniques quickly spread into many private enterprises. At the same time, as project-scheduling models were being developed, technology for project cost estimating , cost management and engineering economics

10062-402: The overall value chain itself, thereby increasing overall performance and efficiency. The ability to quickly obtain and deploy this domain-specific supply chain expertise without developing and maintaining an entirely unique and complex competency in house is a leading reason why supply chain specialization is gaining popularity. Outsourced technology hosting for supply chain solutions debuted in

10179-511: The parodying 'six phases of a big project'. The incorporation of process-based management has been driven by the use of maturity models such as the OPM3 and the CMMI (capability maturity model integration; see Image:Capability Maturity Model.jpg Project production management is the application of operations management to the delivery of capital projects. The Project production management framework

10296-463: The part once shipped, and one additional day before the part is ready to go into manufacturing. In more detail Lead Time terminology has been defined in greater detail. The Supply Chain from customer order received to the moment the order is delivered is divided into five lead times. Example A restaurant opens up and a customer walks in. A waiter guides him to a table, gives him the menu and asks what he would like to order. The customer selects

10413-549: The planning made on the initial phase of the project suffers from a high degree of uncertainty. This becomes especially true as software development is often the realization of a new or novel product. These complexities are better handled with a more exploratory or iterative and incremental approach. Several models of iterative and incremental project management have evolved, including agile project management , dynamic systems development method , extreme project management , and Innovation Engineering®. Lean project management uses

10530-421: The players. From a systems perspective, a complex network structure can be decomposed into individual component firms. Traditionally, companies in a supply network concentrate on the inputs and outputs of the processes, with little concern for the internal management working of other individual players. Therefore, the choice of an internal management control structure is known to impact local firm performance. In

10647-427: The point of origin to the point of consumption. Interconnected, interrelated or interlinked networks, channels and node businesses combine in the provision of products and services required by end customers in a supply chain . SCM is the broad range of activities required to plan, control and execute a product's flow from materials to production to distribution in the most economical way possible. SCM encompasses

10764-523: The principles from lean manufacturing to focus on delivering value with less waste and reduced time. There are five phases to a project lifecycle; known as process groups. Each process group represents a series of inter-related processes to manage the work through a series of distinct steps to be completed. This type of project approach is often referred to as "traditional" or " waterfall ". The five process groups are: Some industries may use variations of these project stages and rename them to better suit

10881-572: The project into compliance with the project management plan. Project maintenance is an ongoing process, and it includes: In this stage, auditors should pay attention to how effectively and quickly user problems are resolved. Over the course of any construction project, the work scope may change. Change is a normal and expected part of the construction process. Changes can be the result of necessary design modifications, differing site conditions, material availability, contractor-requested changes, value engineering, and impacts from third parties, to name

10998-488: The project management plan's deliverables are executed accordingly. This phase involves proper allocation, coordination, and management of human resources and any other resources such as materials and budgets. The output of this phase is the project deliverables. Documenting everything within a project is key to being successful. To maintain budget, scope, effectiveness and pace a project must have physical documents pertaining to each specific task. With correct documentation, it

11115-446: The project's initiation. Project meetings or project committees enable the project team to define and monitor action plans. Steering committees are used to transition between phases and resolve issues. Project portfolio and program reviews are conducted in organizations running parallel projects. Lessons learned meetings are held to consolidate learnings. All these meetings employ techniques found in meeting science , particularly to define

11232-466: The project, and holding a kick-off meeting are also generally advisable. For new product development projects, conceptual design of the operation of the final product may be performed concurrent with the project planning activities and may help to inform the planning team when identifying deliverables and planning activities. While executing we must know what are the planned terms that need to be executed . The execution/implementation phase ensures that

11349-404: The project. In addition, BRM practices aim to ensure the strategic alignment between project outcomes and business strategies. The effectiveness of these practices is supported by recent research evidencing BRM practices influencing project success from a strategic perspective across different countries and industries. These wider effects are called the strategic impact. An example of delivering

11466-423: The project. Any deficiencies should be reported and a recommendation should be made to fix them. The initiating stage should include a plan that encompasses the following areas. These areas can be recorded in a series of documents called Project Initiation documents. Project Initiation documents are a series of planned documents used to create an order for the duration of the project. These tend to include: After

11583-723: The project– for example, project managers, designers, contractors and subcontractors. Ill-defined or too tightly prescribed project management objectives are detrimental to the decisionmaking process. A project is a temporary and unique endeavor designed to produce a product, service or result with a defined beginning and end (usually time-constrained, often constrained by funding or staffing) undertaken to meet unique goals and objectives, typically to bring about beneficial change or added value. The temporary nature of projects stands in contrast with business as usual (or operations) , which are repetitive, permanent or semi-permanent functional activities to produce products or services. In practice,

11700-409: The publication, lead times can be anything from a couple of hours to many months/years. Lead time (when referring to a disease) is the length of time between detection of a disease through screening and the moment in time where it would have normally presented with symptoms and led to a diagnosis. An example of this is seen with breast cancer population screening, where women who are asymptomatic have

11817-532: The role of integrators (also called project barons) to achieve a project's objectives. In turn, recent research in project management has questioned the type of interplay between contracts and integrators. Some have argued that these two monitoring mechanisms operate as substitutes as one type of organization would decrease the advantages of using the other one. In multi-phase projects, the monitoring and control process also provides feedback between project phases, to implement corrective or preventive actions to bring

11934-434: The sense of ecological resilience and social–ecological resilience have led to the notions of adaptation and transformation , respectively. A supply chain is thus interpreted as a social-ecological system that – similar to an ecosystem (e.g. forest) – is able to constantly adapt to external environmental conditions and – through the presence of social actors and their ability to foresight – also to transform itself into

12051-402: The software is to improve supply chain performance by monitoring a company's supply chain network from end-to-end (suppliers, transporters, returns, warehouses, retailers, manufacturers, and customers). In some cases, a supply chain includes the collection of goods after consumer use for recycling or the reverse logistics processes for returning faulty or unwanted products back to producers up

12168-423: The start of a 2-week activity dependent with the finish of the successor activity with a lead of 2 weeks so they will finish at the same time. Lead time in publishing describes the amount of time that a journalist has between receiving a writing assignment and submitting the completed piece. This is the production period of a particular publication before releasing it to the public as the issue date. Depending on

12285-454: The success of any project depends on how well four key aspects are aligned with the contextual dynamics affecting the project, these are referred to as the four P's : There are a number of approaches to organizing and completing project activities, including phased, lean, iterative, and incremental. There are also several extensions to project planning, for example, based on outcomes (product-based) or activities (process-based). Regardless of

12402-407: The term became widely adopted after the publication of the seminal book Introduction to Supply Chain Management in 1999 by Robert B. Handfield and Ernest L. Nichols, Jr., which published over 25,000 copies and was translated into Japanese, Korean, Chinese, and Russian. This era of supply chain management studies was highlighted with the development of electronic data interchange (EDI) systems in

12519-406: The time required to ship the parts from the supplier. Shipping time is included because the manufacturing company needs to know when the parts will be available for material requirements planning purposes. It is also possible to include within lead time the time it takes for a company to process and have the part ready for manufacturing once it has been received. The time it takes a company to unload

12636-574: The time." Project management methods can be applied to any project. It is often tailored to a specific type of project based on project size, nature, industry or sector. For example, the construction industry, which focuses on the delivery of things like buildings, roads, and bridges, has developed its own specialized form of project management that it refers to as construction project management and in which project managers can become trained and certified. The information technology industry has also evolved to develop its own form of project management that

12753-550: The value chain. Supply chain management is a cross-functional approach that includes managing the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and the movement of finished goods out of the organization and toward the end consumer. As organizations strive to focus on core competencies and become more flexible, they reduce ownership of raw materials sources and distribution channels. These functions are increasingly being outsourced to other firms that can perform

12870-454: The value chain. Formal and informal governance mechanisms are central elements in the management of supply chain. Particular combinations of governance mechanisms may impact the relational dynamics within the supply chain. The need for interdisciplinarity in SCM research has been pointed out by academics in the field. In the study of supply chain management, the concept of centroids has become

12987-403: The waiter decides to stand outside the kitchen, by the door, waiting for the dish to be prepared and begins calculating Manufacturing Lead Time. Meanwhile, the chef finishes what he was doing, takes the order from the queue, starts his clock as a mark for the start of Production Lead Time and begins cooking. The chef chops the vegetables, fries the meat and boils the pasta. When the dish is ready,

13104-581: The way business is being conducted—may be the accelerated growth of relationships based not on ownership, but on partnership." This approach allows companies to leverage the strengths and capabilities of various partners to achieve greater efficiency and innovation, ultimately enhancing overall business performance. In recent decades, globalization, outsourcing, and information technology have enabled many organizations, such as Dell and Hewlett-Packard , to successfully operate collaborative supply networks in which each specialized business partner focuses on only

13221-564: The world. During the pandemic period, governments in countries which had in place effective domestic supply chain management had enough medical supplies to support their needs and enough to donate their surplus to front-line health workers in other jurisdictions. The devastating COVID-19 crisis in US has turned many sectors of the local economy upside down, including the country's storied logistics industry. Some organizations were able to quickly develop foreign supply chains in order to import much needed medical supplies. Supply chain management

13338-535: Was developed by the U.S. Navy Special Projects Office in conjunction with the Lockheed Corporation and Booz Allen Hamilton as part of the Polaris missile submarine program. PERT and CPM are very similar in their approach but still present some differences. CPM is used for projects that assume deterministic activity times; the times at which each activity will be carried out are known. PERT, on

13455-803: Was distributed across specialized supply chain partnerships. This transition also refocused the fundamental perspectives of each organization. Original equipment manufacturers (OEMs) became brand owners that required visibility deep into their supply base. They had to control the entire supply chain from above, instead of from within. Contract manufacturers had to manage bills of material with different part-numbering schemes from multiple OEMs and support customer requests for work-in-process visibility and vendor-managed inventory (VMI). The specialization model creates manufacturing and distribution networks composed of several individual supply chains specific to producers, suppliers, and customers that work together to design, manufacture, distribute, market, sell, and service

13572-601: Was evolving, with pioneering work by Hans Lang and others. In 1956, the American Association of Cost Engineers (now AACE International ; the Association for the Advancement of Cost Engineering ) was formed by early practitioners of project management and the associated specialties of planning and scheduling , cost estimating, and project control. AACE continued its pioneering work and in 2006, released

13689-446: Was first coined by Keith Oliver in 1982. However, the concept of a supply chain in management was of great importance long before, in the early 20th century, especially with the creation of the assembly line . The characteristics of this era of supply chain management include the need for large-scale changes, re-engineering, downsizing driven by cost reduction programs, and widespread attention to Japanese management practices. However,

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