Intended learning outcomes: Identify several problems with regard to the entrepreneurial objectives for an example company that manufactures a single product. Disclose and discuss possible measures in each of the four target areas (quality, costs, delivery, and flexibility).
Review the entrepreneurial objectives in the target areas quality, costs, delivery, and flexibility in Section 1.3.1. Your company manufactures a single product from easily obtainable components in four operations with a batch size of 5. You identify the following problems:
- Your product does not meet the demands for product quality; returns of delivered products are frequent.
- When demand is high, you regularly run into delivery difficulties. In addition to the problem of insufficient quality — which results in frequent rework — delivery difficulties are being caused mainly by poor coordination of the manufacturing departments among themselves and with the sales department. Moreover, production at the first work center is too slow, and in-house transport cannot keep up the pace. In other areas, there tend to be too many employees, particularly in sales and distribution and quality assurance.
- You think that there is a strong fluctuation of demand per period. However, you do not have the figures to back this up. You also do not know whether you can predict future demand reliably from the sales figures of past periods.
Discuss possible measures in each of the four target areas. For each measure, consider the amount of required investments. Decide the order in which the measures will be realized.
Course section 1.7: Subsections and their intended learning outcomes
1.7 Scenarios and Exercises
Intended learning outcomes: Describe improvements in meeting entrepreneurial objectives. Differentiate between entrepreneurial objectives and the ROI. Assessing the Economic Value Added (EVA) of Supply Chain Initiatives. Derive rough-cut business objects from detailed business objects.
1.7.1 Exercise: Improvements in Meeting Entrepreneurial Objectives
Intended learning outcomes: Identify several problems with regard to the entrepreneurial objectives for an example company that manufactures a single product. Disclose and discuss possible measures in each of the four target areas (quality, costs, delivery, and flexibility).
1.7.2 Scenario: Entrepreneurial Objectives and ROI
Intended learning outcomes: Explain, using examples, how to determine exactly whether the increase in revenue will be cancelled out by the increased costs for improvement measures in the four target areas (quality, costs, delivery, and flexibility).
1.7.3 Scenario: Assessing the Economic Value Added (EVA) of Supply Chain Initiatives: The Supply Chain Value Contribution (SCVC)
Intended learning outcomes: Describe the supply chain value contribution (SCVC). Explain selected supply chain events and their relationship to current assets.
1.7.3b Scenario: An Example Representation of the Economic Value Added (EVA) of a Supply Chain Initiative
Intended learning outcomes: Explain an example representation of the value of a supply chain initiative (SCI) in the form of the Economic value added (EVA).
1.7.4 Exercise: Rough-Cut Business Objects
Intended learning outcomes: Explain how to determine the process plan, the rough-cut process plan, and a possible load profile for an example product P.
