Supply Chain Management

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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
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