Logistics & Economics (Theme 7 & 8 L&E)
Minor regulation 2015-2016
1. Name minor: Logistics & Economics (Theme 7 & 8 L&E)
2. English name: Logistics & Economics (Theme 7 & 8 L&E)
3. Minor content
Introduction
As a logistic manager, you lead a team or department, and have an organizational responsibility
for the planning and execution of logistic processes. The minor Logistics & Economics gives you
an in depth perspective on the economical side of logistics. Common thread in this minor is the
integrative logistic function. Until now you have been analyzing production and/or warehouse
activities within a single department. Now we will look at the interdependency and the integration
of these processes.The minor is divided in two central themes: Environmental influences (theme
7), en LEAN (theme 8).
Environmental influences
Management has the responsibility to develop, implement, execute and monitor a (future-proof)
strategy that supports the organization’s right to exist and flourish. Strategy models help a
manager develop an adequate strategy. One well-known model is the ‘7-S model’, developed by
the McKinsey consultancy group. Derived from the organizational strategy and structure, the
logistic manager has to create the logistic strategy and consequently design the logistic
structure.
An important aspect to take into account is the supply and demand side of the organization. On
the demand side, two main ‘buyers’ exist: (1) consumers that actually will use your product; also
indicated as B2C (business to consumer). The second group of ‘buyers’ are representatives of
organizations: business to business (B2B) - people who buy your product for the use in a
(production) process in their company. The most important insight for the organization is that
buyers determine the demand. Depending on the productional structure, (MTS-MTO) customer
demands influence the organization’s products in different ways.
In addition, on the supply side of the organization, the purchasing function is growing in attention.
As a consequence, purchasing contributes increasingly to the organizational turnover. In the
EU, average purchasing costs of 50% are still relatively limited. However, other countries like
Japan, have purchasing costs up to 85% or 90% of the turnover. As a logistic manager, you
have to think about the optimal relationship between purchasing, production and distribution.
Subsequently, planning and allocating resources with desired performance in mind follows.
Budgets give you the possibility to allocate resources. As a manager, you also have to monitor
and control the situation, the supply of goods and the departments or teams in the organization.
Financial KPI’s (key performance indicators) provide insight in the progress of the organization, as
they work with preset criteria, as well as allow comparison to other business units (BU’s).
Every organization is affected by its environment. Identifying environmental factors and
understanding how they influence an organization is a first step in managing consequences or –
preferably- to anticipate on the future. Effective decisionmaking skills will help you do that. In
addition, managing organizational change (whether or not as a result of environmental influences)
FHTenL – Logistics & Economics - Minor regulation 2015-2016
and innovation are important to decrease uncertainties and increase an organization’s chance to
survive.
LEAN
After developing the logistic structure and planning (strategy and tactics), it is time to explore the
operational process: control, support, analysis and improvement. One way of getting insights on
how (and why) actual results differ from planned performance is the use of flexible budgets and
variances. Furthermore, annual reports contain important data about the ‘health’ of the
organization. It is key to be able to read annual reports and assess the importance of the data.
A popular approach to help improve (production) processes is Lean, a derivative from the Toyota
Production System. Lean is a systematic method for the elimination of ‘waste’ in organizational
processes or manufacturing. After all, waste reduction is an effective way to increase the
organization’s profitability.
More and more companies are selling their products online mainly to increase sales and, as a
result, create a (better) competitive position. But is it as simple as it sounds? And is e-business
and/ or e-commerce always the best way to go in terms of (process) improvement? A good
insight in logistical consequenses and implications is a key factor in the choice for online
distribution.
Goals
The student:
 Has a general understanding of (strategical) decicion making in organizations, using adequate
knowledge about environmental factors and factors concerning organizational change and/ or
innovation.
 Is able to design a logistic strategy and related objectives.
 Is able to construct budgets and understand an analyze economical results.
 Knowing and using the most important elements of the demand and supply side that influence
the logistic management in an organization.
 Can apply business theory in practice (business cases).
Summary
As a logistic manager, you lead a team or department, and have an organizational responsibility
for the planning and execution of logistic processes. The minor Logistics & Economics gives you
an in depth perspective on the economical side of logistics. Common thread in this minor is the
integrative logistic function.
4. Overview of the courses in the minor (see article 12, general section TER)
The total workload for this minor is 30 European Credits (1 credit equals 28 study hours), duration
is 1 semester. The following minor parts (courses) have been defined:
Courses
Description
Logistics 7
Until now you’ve been analyzing production and/or warehouse activities within
a single department. Now we will look at the interdependency and the
integration of these processes. Given the strategy and the organizational
structure you have to create the logistic strategy and consequently design the
logistic structure. You learn how to plan and allocate resources to achieve the
desired performance.
Given the logistic structure and planning, we are now going to explore the
operational processes. We are discussing the process control, the process
support, process analysis and process improvements.
Budgets give you the possibility to allocate resources to achieve the
desired performance. Financial KPI’s give you the possibility to manage
your organization on preset criteria and allow you comparison to other
BU’s.
As a logistic manager, you have to think about the optimal relationship
Logistics 8
Economics 7
FHTenL – [Logistics & Economics]- Minor regulation 2015-2016
Studyload
in EC
2
2
2
Economics 8
Demand &
Supply 7
Demand &
Supply 8
Surrounding 7
Organisation 7
between purchasing, production and distribution. Expertise on purchasing is
inevitable.
Get insight on flexible budgets and variances that help managers to gain
insights into why actual results differ from planned performance. In
addition, Reading annual reports with important (financial) data will be
covered in this course.
This course focuses on the salesprocess from the perspective of customers’
demands.
What products do you buy online? Shoes, insurances, music?. In this course,
you learn about e-business and e-commerce. More and more companies are
selling their products online. Mainly to increase sales and, as a result, create a
(better) competitive position. It looks easy: start a web shop, sit back and relax
… Or not? An important topic to uncover: what are the main logistical
consequences if a company sells products online in comparison to ‘traditional
stores’?
The supply part of this course continues where Supply 7 has ended.
You will be able to identify the various environmental factors (e.g.
technological, social, and political) and stakeholders (e.g. buyers, suppliers,
and employees) that can have influence on the organization and you will
understand how these influences affect individual organizations (e.g. Apple
and GM).
Crucial in this course is the organization and the changes that it is
undergoing. We will pay attention to aspects of organisational culture and
working in teams. We will examine the process of change within the
organisation, growth models, restructuring, and the learning organisation. We
will also pay attention to organizational consultancy and research.
2
2
2
2
2
In this cycle of lectures you will learn how to describe and analyze an
organization. We use the 7-S model (McKinsey consultancy group) as a
stepping stone. What is the vision and strategy of an organization and
how do you develop a strategy? How do you develop an effective
logistic strategy? Using the 7-S-model and SWOT-analysis, you will
develop strategic questions. These strategic questions are the
fundament for the company strategy. The last few lessons we will pay
attention to connect the logistic strategy to the company strategy
(Tracey & Wiersema).
LEAN 8
Change
Management 8
Skills 7 and 8
Project 7
Project 8
In this part of this course you will deal with the importance of decisionmaking. Five kinds of decision-making processes and various aspects of
decision-making will be discussed en brought to practice
In this course we look at the lean (production) philosophy. We will discuss the
lean philosophy as an approach to improve processes. We will focus on the
general lean philosophy and lean tools that are available. We will discuss the
applicability of a lean project and the lean tools in detail.
This course is about how to create change.
During skills you are going to work on the preparation for your internship. This
means you develop your project plan according to the expected level. The
project plan is your most important planning tool during your internship. Also
you will learn the importance of defining the scope of your project and the role
of writing skills. In addition to the developmentof the project plan you develop
your personal competence plan. The project plan focusses on the needs for
your logistic skills (competence 1); the personal competence plan focusses
on your personal development concerning competence 2 - 5. A literature
study is a part of this plan.
You and your collegues are hired as a consultant group to advice The Fresh
Connection (TFC) – a minor player on the fruit juice market – on how to save
the company from going bankrupt.
You are asked to to convert a S&OP – within the scope of business
strategy - created as a management team into sustainable
management decisions making, while running a middle
management department in the area of Purchasing, Production,
SCM, and Sales in a simulated company environment.
FHTenL – [Logistics & Economics]- Minor regulation 2015-2016
2
2
2
3
3
5. Procedure for enrolment for the courses of the minor
Minor enrolment follows regular procedure, as stated on the Fontys website. External students
can contact Peter Heiden (p.heiden@fontys.nl).
6. Tests and procedure for enrolment for the tests (see article 18 & 22, general section TER)
Students don’t have to enrol themselves for the tests.
Modules
Assessment
individual / group
Logistics 7
Written exam
Logistics 8
Written exam
individual
individual
Economics 7
Assessment
scale
O,6…10
O,6…10
Written exam
individual
O,6…10
Economics 8
Written exam
individual
O,6…10
Demand & Supply 7
Written exam
individual
O,6…10
Demand & Supply 8
Written exam
individual
O,6…10
Surrounding 7
Written exam
individual
O,6…10
Organisation 7
Written exam
individual
O,6…10
LEAN 8
Written exam
individual
O,6…10
O,6…10
Skills 7 and 8
Written exam
Report
individual
Individual
O/V
Project 7
Report
Group
O,6…10
Oral exam
Individual
O/V
Report
Group
O,6…10
Oral exam
Individual
O/V
Change Management 8
Project 8
7. Examination of the minor (see article 19, paragraph 3, general section TER)
Each part of the minor will be rated. To pass this minor the student has to satisfy following
requirements: grades >=5.5 or V (sufficient). A student will only get credits assigned as soon as
he brings all above mentioned (part 4) modules to an end successfully, so either 30 EC or no
credits at all (0 EC’s) are assigned. Students get the chance to do a re-examination within the
Minor period.
8. Examencommissie (article 38, general section TER)
The examination board for this minor is represented by the examination board Techniek of Fontys
Hogeschool Techniek en Logistiek Venlo (fhtenl-excie@fontys.nl).
9. Validity period
This information remains valid for the duration of the 2015-2016 Academic Year.
10. Entry Level minor
Students must have successfully completed their propaedeutic year. If the propadeutic year is not
(yet) completed, students have to get permission by the examination board to enrol in the minor.
11. Accessability
The Minor is accessible for all FHTenL students. Students from other institutes with comparable
qualifications can be admitted after an intake talk. External students have to explicitely ask for
admission. This is given by the contact person.
Criterium is:
 A level of knowledge and skills that corresponds to at least the propedeutic stage of the
courses at FHTenL.
FHTenL – [Logistics & Economics]- Minor regulation 2015-2016
12. Contact
This minor is offered by Fontys Hogeschool Techniek en Logistiek Venlo. For further information
please contact: Peter Heiden (p.heiden@fontys.nl).
In terms of participation and completion of their minors, students will not be required to
satisfy any other requirements than those as hereby determined in these Minor
Regulations.
FHTenL – [Logistics & Economics]- Minor regulation 2015-2016