Juliet Bodley Melissa McLymont Darian Richards Supply Chain Management Overview Attributes of Supply Chain Management Constraints of Supply Chain Management Military Supply Chain Management Jamaica Defence Force Utility Supply Chain Management Jamaica Public Service Company Supply Chain is the movement of materials as they flow from their source to the end customer. Supply Chain includes: Purchasing, Manufacturing, Warehousing, Transportation, Customer Service Demand Planning Supply Planning Supply Chain Management Reference: http://www.supplychaindefinitions.com/ Supply Chain Management (SCM) is a process used by companies to ensure that their supply chain is efficient and cost-effective. Typically, supply chain management is comprised of five stages: plan, develop, make, deliver, and return. Supply chain management (SCM) is the combination of art and science that goes into improving the way your company finds the raw components it needs to make a product or service and deliver it to customers. Five Basic Components of Supply Chain Management Plan—This is the strategic portion of SCM. Companies need a strategy for managing all the resources that go toward meeting customer demand for their product or service. Source— Companies must choose suppliers to deliver the goods and services they need to create their product. Make—This is the manufacturing step. Supply chain managers schedule the activities necessary for production, testing, packaging and preparation for delivery. Deliver—This is part is referred to as logistics, where companies coordinate the receipt of orders from customers, develop a network of warehouses, pick carriers to get products to customers and set up an invoicing system to receive payments. Return—This can be a problematic part of the supply chain for many companies. Supply chain planners have to create a responsive and flexible network for receiving defective and excess products back from their customers and supporting customers who have problems with delivered products. Reference: http://www.cio.com/article/40940/Supply_Chain_Management_Definition_and_Solutions#scm_abc Customer Power Long-Term Orientation Leveraging Technology Enhanced Communication across Organizations Inventory Control Inter-organizational Collaboration Regulatory and Political Considerations Lack of Top Management Commitment Reluctance to Share, or Use, Relevant Information Incompatible Information Systems Incompatible Corporate Cultures Globalization Jamaica Defence Force This segment focuses on Military Supply Chain Management with respect to the Jamaica Defence Force The Jamaica Defence Force is the military arm of the Jamaican Government This segment will demonstrate how the basic elements of supply chain is involved in the product creation and its delivery to the customer How do we utilise the supply chain management concept? Is the supply chain concept pure theory? Or is it practical and applicable? The logistics company is the supply arm of the Jamaica Defence force. It fits into the complex supply chain as illustrated Supplier Transportation 8 regiments Manufacturer JDF Logs coy Individual Soldiers Ministry of National Security for funding (Customer) 1st battalion Jamaica regiment (Organization) JDF Logs coy 2nd battalion Jamaica regiment 3rd battalion Jamaica regiment Engineer regiment Support and services battalion Combat support battalion JDF air wing JDF coast guard Ultimate Customer Army Ration, MRE, meats, veggies Uniforms and accoutrements Office supplies and furniture Ammunition and Small arms Combat EQ. Construction EQ. These include. Medical Supplies Communication Equipment Vehicles (earth, air and sea) and their maintenance equipment Mostly: SUPPLY CHAIN OPERATIONS REFERENCE MODEL. PLAN *Demand pull VS Supply push* mandatory in some cases Diets-Ration (dp-sp) Location of soldiers (Spanish Town VS on camp)(dp) Kind of training, or activities (dp) Amount of uniforms needed (dp-sp) Number of soldiers (dp) Length on time they would need certain supplies for (dp) Government procurement guidelines, NCC, TCC *Price! and seldom quality!* Third party logistics: Delivery Companies, construction equipment repair companies Uniforms locally made Logs coy supplies raw materials Source tailors Food prepared at the Force Catering Center Logs coy supplies raw food Food is prepared at each base and distributed Items from overseas delivered to Kingston will harvest Logs Coy All locations island wide by means of military transportation Room for Improvement No return procedures on Uniforms nor combat equipment: bullwhip effect kept and recycled locally Soldiers returning a product to the Logs Coy??! Construction equipment: Returns are handled by the Engineer regiment and returned physically to the supplier if defective. (post delivery costumer support) Foods: If spoiled or infected are thrown away but never returned Contrary to what you may believe, though the customer is just a soldier, customer power does exist. Lamb, not a very popular dish though cheap and easy to prepare. Though Pork is popular not every one eats it BOOTS Uncomfortable Comfortable Will soldiers continue to purchase or accept issued boots from the JDF if there is a better alternative? JDF Logs coy agile, and fast! E.G.: Deployment in the garden parish rapid increase in the supply of : Bullet Proof Vests SCOR……….. -----Bull whip not so bad------- Chinese Government: relational Exchange US Canadian Grace Local Government Kennedy Hardware stores Obvious - Internet : orders , visualise, communicate Ships Air that are more reliable lift Room for Improvement! No system in place to alert JDF logs coy that and item will soon be needed. Use of supply chain software Update it to the logs coy FOOD! Wastage Payday vs, middle of the month Uniforms! Specialised uniforms- dry rot Severe stock outs- uniforms only supplied once per year, one set does not last the entire year. However!...disasters, bullwhip might be a good thing, Logs coy to strike a balance Not a competitive organization Demand Chain: Transactional: Invoices Product specifications Top management commitment Though essential to its performance, it is not the number one function of the JDF Jamaica Public Service Company All utility companies market their product. Their objective is to achieve customer satisfaction so that the company can remain viable. The product is electrical energy that the customer receives for Domestic or Commercial purposes. This segment focuses on Utility Supply Chain Management with respect to the Jamaica Public Service Company The Jamaica Public Service Company is the sole distributor of energy in Jamaica This segment will demonstrate how the basic elements of supply chain is involved in the product creation and its delivery to the customer Call Center Material Management Power Stations Petrojam (Oil Refinery) 3PLs Maintenance & Protection System Control Private Contractor Dispatch Center Generation System Transmission System Distribution System The sources of the product begins at the generating power station. Ships(4PLs) Petrojam Power Plant Contractual agreements between JPS and 3PLs (Petrojam) to supply fuel. Petrojam supplies two(2) basic types of fuel HFO and ADO. Fuel is usually transported via pipeline or trucks. Hunts Bay B6 is a 68.5MW oil fired power plant (unit) consumes 12-14 ft of HFO per day. The Unit day tank stores in one tank 28ft fuel. (Total volume164,739 US GAL) B6’s fuel consumption and storage is monitored by the plant engineers with the help of Power Plant Monitoring System(PPMS) which triggers an alarms prompting the engineer to reorder fuel to prevent stock-out scenarios. $190 Price Fuel Prices $/BBL $170 $150 $130 Fuel A $110 Fuel B $90 $70 $50 $30 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 The fuel is burned in furnaces to heat pure water into superheated dry steam at 950 °F and 1250psi. The steam is then used to turn a prime mover(turbine shaft) which cuts a magnetic field to produce an induce E.M.F.(current). This is then transported to the transmission network. 24 kV 13.8 kV 12 kV 138 KV 69 KV LOAD CENTRE GENERATION STATIONS Engineers manage the reliability of Power supplied to the various customer while maintain the integrity of the power grid using various power flow tools. Ensure the safety during operation of there internal and external customer. Contract 3PLs for the equipment. Eg trucks testing equipment and consultants Tools Used to simulate various possibilities to correct and prevent system incidents. CYME PSAF OSI Monarch If their is damage to an electrical equipment on the network affecting customers. Example reclosers, PTs,CTs or conductors a formal request is made for equipment. Using oracle data base management tool. This tool is used to reorder, track and locate inventory whenever they fall below the reorder level. Tools used - Oracle Data based Power (I,V) is stepped down to the distribution levels via transformers and transported to customers through conductors and other equipment along the lenght of the line. Engineers, journey linesmen, and other 3PLs (contractor, ameco,security) help to ensure custome have continues supply on a 24hrs basis. Tools used: Synergee (Advantica Inc.) JPS GIS Tools •Currently Call log based operation •Moving to a GIS based Outage Management System (GeNome) Core Functions •Minimize the duration of outages or faults •Ensure completeness of remedial actions and accuracy of records for OUR reporting •Maintain effective communication with customers and staff when resolving trouble call issues Core functions - Customer queries and bill payment. - Reconnections (3PLs contractors) - Fault Reports. Tools Used: - CIS Banner - CMS The System Control Center , also referred to as the “nerve center” of the Company’s technical operations, monitors and controls the Supply Chain. Anticipate customer electrical demand to ensure customer satisfaction Weekend 600.0 500.0 500.0 300.0 200.0 400.0 300.0 200.0 Steam GT Time Daily demand predictable with evening peak from 6:30pm to 9:30pm driven by residential demand requiring the use of expensive GT generation Day Peak up to 50MW less than evening peak. Equal some times of the year. Drop in demand between 4:30pm and 6:00pm as commercial load reduces Weekend (Sat & Sun) demand profile similar to weekday except for a significantly curtailed day peak and a reduced evening peak AM Hydro 2: 00 12 :3 0 M 11 :0 0 AM 12 :3 0 PM 2: 00 PM 3: 30 PM 5: 00 PM 6: 30 PM 8: 00 PM 9: 30 P 11 M :0 0 PM A M Private Power 9: 30 M A 8: 00 A 6: 30 A 5: 00 A A 3: 30 2: 00 12 :3 0 Hydro M 0.0 M 100.0 0.0 M 100.0 3: M 30 A M 5: 00 A 6: M 30 A M 8: 00 A 9: M 30 A M 11 :0 0 AM 12 :3 0 PM 2: 00 PM 3: 30 PM 5: 00 PM 6: 30 PM 8: 00 PM 9: 30 PM 11 :0 0 PM 400.0 A Load (MW) 600.0 AM Load (MW) Weekday Steam Private Power GT Time JPS single largest customer is the Caribbean Cement Company with a demand of 18MW (Exp to 28MW 2011). Largest aggregate customer is the National Water Commission Some other large customers in the 3MW to 5MW range Port Authority slated to increase demand to (15MW) when expansion is complete The actual demand is obtain by extensive load research utilizing different techniques. End use data Econometrics Historical information Electrical demand is forecasted using Neural Networks.(growth rate of 5% per year) RTU RTU MASTER STATION Data Acquisition - A fault occurs. The signal is sent to the master station. Supervisory Control - To counter the fault, a control is sent to the RTU to open the breaker. 49 PETROJAM Taxes & Mark-up Local Storage US GULF MEAN PRICE Power Plants Payments $/BTU Payments $/BBL. Electricity kWh JPS & IPPs SHIP FUEL -Quantity (BBLS.) - Calorific Value (BTU/BBL) To Customers kWh 50 Coordinate activities of all the links in the Supply Chain. Manages the Power System Grid from the beginning of the product until the end which is customer consumption. Tools used - OSI Monarch - Cyme - Synergee - PSAF http://www.wisegeek.com/ http://www.supplychaindefinitions.com/ http://www.axtin.com/ www.cio.com http://www.almc.army.mil http://logistics.about.com/b/2009/05/14/gr een-supply-chain-best-practices-forutilities.htm Contemporary Logistics, 9th Edition, Paul R Murphey, Jr. Donald F. Wood