Intended learning outcomes: Produce an overview on company performance, or supply chain performance. Identify entrepreneurial objectives affected by logistics, operations, and supply chain management in the target areas of quality, costs, delivery, and flexibility (QCDF). Describe target areas in supply chain performance across companies.
Company performance, or supply chain performance, comprises the achievement of entrepreneurial objectives in the target areas of quality, costs, delivery, and flexibility. [note 109].
In part, logistics, operations, and supply chain management have a significant influence on entrepreneurial objectives in all the four areas. Figure 1.3.1.1 identifies, both main and partial entrepreneurial objectives in the four areas.
Fig. 1.3.1.1 Entrepreneurial objectives affected by logistics, operations, and supply chain management.
QCDF objectives are objectives in the four target areas quality, costs, delivery and flexibility.
Objectives in the target area flexibility aim to enable performance excellence in the other three target areas. They are called enablers or enabler objectives; they lay the foundation for achieving results or results objectives in the target areas of quality and delivery (that is, effectiveness) as well as costs (that is, efficiency) in later business periods. In the ongoing business period, they represent investments and thus cost money and tie up capacities; for this reason, the number of measures to achieve flexibility objectives is limited.
Following [Hieb02], supply chain performance across companies includes, in addition, the achievement of entrepreneurial objectives in the three target areas of supply chain collaboration, coordination, and changeability. Figure 1.3.1.2 lists the objectives within each target area that can all be assigned to the target area of flexibility, as follows:
Fig. 1.3.1.2 Additional target areas in supply chain performance across companies (according to [Hieb02]).
Course section 1.3: Subsections and their intended learning outcomes
1.3 Logistics, Operations and Supply Chain Management Strategies in the Entrepreneurial Context
Intended learning outcomes: Differentiate between various entrepreneurial objectives in a company and in a supply chain. Explain resolving conflicting entrepreneurial objectives. Describe the customer order penetration point (OPP) and the coordination with product and process design. Produce an overview on the target area flexibility: investments in enabling organizations, processes, basic technologies, and technologies toward personalized production.
1.3.1 Company Performance, Supply Chain Performance: QCDF Objectives — Entrepreneurial Objectives in a Company and in a Supply Chain
Intended learning outcomes: Produce an overview on company performance, or supply chain performance. Identify entrepreneurial objectives affected by logistics, operations, and supply chain management in the target areas of quality, costs, delivery, and flexibility (QCDF). Describe target areas in supply chain performance across companies.
1.3.2 Supply Chain Strategy, Opportunity and Opportunity Cost
Intended learning outcomes: Produce an overview on the supply chain strategy and the business plan. Describe opportunity and opportunity cost.
1.3.2b Return on Net Assets (RONA), Net Working Capital and Supply Chain Initivative (SCI) — Resolving Conflicting QCDF Objectives
Intended learning outcomes: Explain the potential for conflicting QCDF objectives. Present terms such as return on net assets, net income, profit after tax, net working capital (RONA), and primary entrepreneurial objective. Disclose the objective of a supply chain initiative (SCI).
1.3.3 Customer Order Penetration Point (OPP), or Customer Order Decoupling Point (CODP), and Approaches such as Modular Product Concept, (Late) Customization, Postponement
Intended learning outcomes: Explain the determination of the (customer) order penetration point, or customer order decoupling point, and the stocking level. Describe the modular product concept, the concepts of customization and late customization as well as the postponement approach.
1.3.4 Target Area Flexibility: Investments in Enabling Organizations, Processes, and Basic Technologies
Intended learning outcomes: Present flexibility, agility and different aspects thereof. Differentiate between short, medium and long-term potentials developed by agile companies. Describe various enabling information technologies allowing worldwide running order coordination.
1.3.5 The Intelligent Supply Chain — Cyber-Physical System, Industry 4.0, Smart Sensor, Internet of Things (IoT), Digital Twin, Big Data, Additive Manufacturing, 3D printing: Enabling Technologies Toward Personalized Production
Intended learning outcomes: Produce an overview on terms such as intelligent supply chain, cyber-physical system, Industry 4.0, smart sensor, internet of things (IoT), digital twin, big data. Disclose the potentials of additive manufacturing (3D printing) and personalized medication.
