...A CONCEPTUAL VALUE CHAIN MODEL FOR ORIGIN ENERGY 13 Table of Contents EXECUTIVE SUMMARY _____________________________________________________________ c 1 Introduction __________________________________________________________________ 1 2 Background __________________________________________________________________ 2 2.1 Background of Origin Energy ___________________________________________________ 2 3 Literature Review________________________________________________________________ 3 3.1 Supply Chain Management _____________________________________________________ 3 3.2 Quality Improvement Models and Gap Analysis ____________________________________ 4 3.3 Lean and Six Sigma Technology ________________________________________________ 5 4 Discussion & Analysis ____________________________________________________________ 6 4.1 Supply Chain of Origin Energy _________________________________________________ 6 4.2 SWOT Analysis for Origin Energy _______________________________________________ 7 4.3 Supply Chain Operations Reference (SCOR) Model _________________________________ 9 4.4 Conceptual Improvement Model for Supply Chain Management ______________________ 12 4.4.1 Introduction ____________________________________________________________ 12 4.2.2 Assumptions: ___________________________________________________________ 13 4.3.3 Supply Chain Conceptual Improvement Model (SCCIM) _________________________ 13 4.2.4 Key Benefits of the model _________________________________________________...
Words: 6785 - Pages: 28
...Engineer in the Value Chain 49680: Value Chain Engineering Systems Assignment 1 LE Ngoc Thang 11187604 Table of Contents 1. Summary 5 2. Introduction 6 3. Value Chain 7 4. Engineering in Value Chain 9 4.1 Inbound Criterions 10 4.2 Warehouse management Criterions 11 4.3 Logistics Operation Specifications Criterions 11 5. Conclusion 14 6. Reference 15 Table of Figures Figure 1 Supply chain of a Router 7 Figure 2 Engineering Value Chain model 9 Summary This report focuses on the key component of a business, which is Value Chain. Value Chain, as Michael Porter's definition is those activities that add value to the products and/or service provided by the company. Additionally, to achieve advantages over competitors, those activities should be run at an optimized level with careful research and strict supervision. In the first part, Supply Chain and Demand Chain are researched and in the second part, a particular industry sector will be taken into consideration to shed light on the role of engineering and by that reveal the importance of engineering in the management of Value Chain. (Porter 1985) Introduction Nowadays enterprises are facing a number of issues to maintain and expand their business. With those that manufacture goods or provide services should be aware of the importance of Value Chain in order to deeply know the flow of raw material from suppliers to end-users for example. This report gives a brief view over Value Chain system and Engineering roles. Value...
Words: 1541 - Pages: 7
...This paper described the methods of SWOT analysis and Value Chain Analysis. SWOT analysis was presented as a technique for assessing the fit of a business within its operational environment by looking at the strengths, weaknesses, opportunities and threats. Comparing a competitor’s SWOT analysis with one’s own can reveal insight into where competitors are stronger and weaker and guide strategic decisions. The Value Chain Analysis was presented as a technique to identify which activities can create or improve economic advantage for a company. Using the value chain analysis within a competitive intelligence framework, a company can get insight into competitors’ cost structure and differentiation strategy as well as changes to these strategies. One can then compare the competitor’s value chain analysis with its own to discover opportunities for acquisition or where improvements within the value chain can be completed. Finally, both methods were used within an intelligence project to analyze RIM and provide recommendations to Alpha. Add real value Dedication, determination and attention to detail are hallmarks of RIM Global Manufacturing. It is comprised of a number of teams, ultimately responsible for the effective and timely manufacture, assembly, repair and delivery of the company’s products, supporting our customers around the world. Using cutting-edge technology and equipment, our state-of-the-art manufacturing facility is located in Waterloo, Canada, and is fully carpeted and...
Words: 411 - Pages: 2
...The Role of the Engineer in the Value Chain Executive Summary In the recent past, value chain management has undergone radical transformation through various stages of automation, optimization and integration. This is based on a variety of reasons such as shortened technology and product development lifecycles, globalization, and pressures of competitive forces. This has forced organizations to review their value chain systems in order to survive and grow in such dynamic economic environments. In the field of engineering, value chains have become vital aspects of operations management when it comes to the application of engineering systems to the industrial and commercial processes. The main purpose of this paper is to disentangle the role of the engineer in the value chain. In this context, it will go further in analyzing the key elements of value chain and any accrued benefits that come with use of engineers in the value chain management. Value Chain Analysis The inception of Value Chain is associated with Michael Porter. He gives his understanding to this concept using a model he referred to as; “Porter’s value chain model” (Sekhar, 2009: 115). This model evaluates the strategically vital activities in a firm that boost its competitive advantage. Such competitive advantage is usually achieved through the core competencies of the firm. According to Porter, a firm is defined by a set of processes and functions which he classified into five main activities; the inbound...
Words: 1567 - Pages: 7
...TOWARDS REAL-TIME CUSTOMIZED MANAGEMENT OF SUPPLY AND DEMAND CHAINS James M. TIEN Ananth KRISHNAMURTHY Ali YASAR Department of Decision Sciences and Engineering Systems Rensselaer Polytechnic Institute, 110 Eighth St. Troy, New York 12180 USA Abstract Our focus herein is on developing an effective taxonomy for the simultaneous and real-time management of supply and demand chains. More specifically, the taxonomy is developed in terms of its underpinning components and its research foci. From a components perspective, we first consider the value chain of supplier, manufacturer, assembler, retailer, and customer, and then develop a consistent set of definitions for supply and demand chains based on the location of the customer order penetration point. From a research perspective, we classify the methods that are employed in the management of these chains, based on whether supply and/or demand are flexible or fixed. Interestingly, our taxonomy highlights a very critical research area at which both supply and demand are flexible, thus manageable. Simultaneous management of supply and demand chains sets the stage for mass customization which is concerned with meeting the needs of an individualized customer market. Simultaneous and real-time management of supply and demand chains set the stage for real-time mass customization (e.g., wherein a tailor first laser scans an individual’s upper torso and then delivers a uniquely fitted jacket within a reasonable...
Words: 10304 - Pages: 42
...strategic alliances – both with traditional supply chain partners as well as with long-time competitors. As well, it has proved its worth at companies far removed from the relatively slow-clockspeed, manufacturing-intensive automotive industry. This paper describes the analysis process, the decision model, and the resulting improved process for value chain strategy at GMPT. The value analysis process emphasizes the need to balance quantitative financial considerations with less-easily quantifiable strategic issues. This model not only provided key decision support for value chain strategy, but also formed the foundation of a fast-response capability to emergent and disruptive strategic challenges. We describe why such a capability is of critical importance not only to companies such as General Motors, buy also to companies in very fast clockspeed industries such as on-line music and entertainment. Arvin Mueller, Group Vice-President of GM Powertrain from 1997 through 2001, comments on the Value Chain Strategy and its role in the strategic governance of GM’s global powertrain operations: Without a structured process for value chain strategy and formation, dealing with a rapidly changing business model in a huge, complex, and global industry provides only a hit-or-miss destiny. A systems approach to value chain strategy led to a partitioning of “Knowledge Assets” and “Supply Capabilities” within the vast business of engineering and manufacturing engines, transmissions, and...
Words: 6946 - Pages: 28
...by job losses, lower earnings for U.S. workers, and a potential loss of technology to foreign rivals. To shed light on the jobs issue, we analyze the iPod, which is manufactured offshore using mostly foreign-made components. In terms of headcount, we estimate that, in 2006, the iPod supported nearly twice as many jobs offshore as in the United States. Yet the total wages paid in the United States amounted to more than twice as much as those paid overseas. Driving this result is the fact that Apple keeps most of its research and development (R&D) and corporate support functions in the United States, providing thousands of high-paid professional and engineering jobs that can be attributed to the success of the iPod. This case provides evidence that innovation by a U.S. company at the head of a global value chain can benefit both the company and U.S. workers. 1 This article represents solely the views of the authors and not the views of the U.S. International Trade Commission or any of its individual Commissioners. This paper should be cited as the work of the authors only, and not as an official Commission document. All of the authors are associated with the Personal Computing Industry Center (PCIC) of the University of California, Irvine. PCIC is one of the Sloan Foundation Industry Studies Centers. This research has been supported by grants from the Alfred P. Sloan Foundation. The authors are grateful to Clair Brown and Tim Sturgeon for their comments on earlier...
Words: 4893 - Pages: 20
...QUESTIONS What Is Quality? 1. Which of the following is not one of Garvin’s “definitions” of quality? a. transcendent b. value-based c. manufacturing-based d. user-based e. cost-based ANSWER: e; DIFFICULTY: moderate 2. According to Garvin’s __________ definition of quality, quality is conformance to the design specifications. a. transcendent b. manufacturing-based c. user-based d. product-based e. value-based ANSWER: b; DIFFICULTY: moderate 3. According to Garvin’s __________ definition of quality, quality is found in the components and attributes of a product. a. manufacturing-based b. value-based c. user-based d. transcendent e. product-based ANSWER: e; DIFFICULTY: moderate 4. Garvin’s __________ definition of quality states that if the customer is satisfied, the product has good quality. a. product-based b. user-based c. value-based d. manufacturing-based e. transcendent ANSWER: b; DIFFICULTY: moderate 5. Which of the following choices correctly matches one of Garvin’s definitions of quality with its explanation? a. manufacturing-based definition— quality is found in the components and attributes of a product b. value-based definition— if the product is perceived as providing good value for the price, it has good quality c. user-based definition— if the product conforms to design specifications, it has good quality ...
Words: 4418 - Pages: 18
... * Inbound versus outbound * Consumer demand versus derived demand All demand is derived from consumers * Demand originates from consumers (individual wants and needs) * It propagates as derived demand along the supply chain through retailers, wholesalers, manufacturers, raw materials suppliers. * If your customers can’t sell you can’t sell! * Why care about customers’ customers, etc? 2. Quality of distribution channel * Who has bought a product from Coca Cola? * The quality of a firm’s distribution channel can significantly impact its sales performance (revenue, profits, etc.) * Sales agreements, business relationships, competitors * Geographical coverage 3. Market orientation * Gathering, analyzing and disseminating customer information * Channel members provide important information about customers, markets, trends, changes, opportunities and challenges 4. Reverse logistics * Returns, repairs, unsold merchandize, etc. * Important for customer satisfaction, major concern for customers * Improve customer satisfaction, reduce unnecessary costs 5. Supply chain evolution * Supply chains are in constant evolution * New customers, markets, suppliers * Identify, evaluate, implement opportunities * Why their suppliers’ suppliers, etc? 1. Your suppliers’ costs are your costs * Suppliers pass on their costs...
Words: 2054 - Pages: 9
...Computers and Chemical Engineering 28 (2004) 929–941 Pharmaceutical supply chains: key issues and strategies for optimisation Nilay Shah∗ Centre for Process Systems Engineering, Department of Chemical Engineering, Imperial College of Science, Technology and Medicine, London SW7 2BY, UK Abstract Supply chain optimisation is now a major research theme in process operations and management. A great deal of research has been undertaken on facility location and design, inventory and distribution planning, capacity and production planning and detailed scheduling. Only a small proportion of this work directly addresses the issues faced in the pharmaceutical sector. On the other hand, this sector is very much ready for and in need of sophisticated supply chain optimisation techniques. At the supply chain design stage, a particular problem faced by this industry is the need to balance future capacity with anticipated demands in the face of the very significant uncertainty that arises out of clinical trials and competitor activity. Efficient capacity utilisation plans and robust infrastructure investment decisions will be important as regulatory pressures increase and margins are eroded. The ability to locate nodes of the supply chain in tax havens and optimise trading and transfer price structures results in interesting degrees of freedom in the supply chain design problem. Prior even to capacity planning comes the problem of pipeline and testing planning, where the selection of products...
Words: 10158 - Pages: 41
...1.0 Barriers to entry Porter's five forces model is often used to access an industry's attractiveness. pg 59. The degree of the barriers to entry lead outcomes at variance. Following are the barriers to entry and also the crucial factors that new entrant not to be overlooked. The large economies of scale is the major barrier to entry for entrant. With the incumbents controlling the productions, quantity of cars that produced are overwhelmed; in results, low production costs. However, new entrant will be required to produce similar amount of cars to reduce the production costs. It might be difficult for the new entrant as the demand might be not as positive than incumbents. Following by the absolute cost advantage, in comparison to incumbents, new entrant could be losing at the beginning stage because the inexperienced factor could be lead to higher production costs. For new entrant that performs exceptionally brilliant, they would need to face expected retaliation as the incumbents will not be intimidated and will be follow up with forms of full force revenge to protect their positions in the automotive industry. Price war would occurs whereby the incumbents that have lower unit costs per car, able to slash the price to the minimum margin. Reality hits new entrant when they need to possess the higher capital requirements in order to compete or in the attempt of matching up with the incumbents. The consequence if new entrant failed to do so, will be facing strategic drift...
Words: 2196 - Pages: 9
...1. 2. The overall management of the way resources are obtained, stored and moved to the locations where they are required. Logistics management entails identifying potential suppliers and distributors; evaluating how accessible and effective they are and establishing relationships and signing contracts with the companies who offer the best combination of price and service. 3. Materials management as a definition is the process which integrates the flow of supplies into, through and out of an organization to achieve a level of service which ensures that the right materials are available at the right place at the time in the right quantity and quality and at the right cost. * Material Management is responsible for purchasing the highest quality equipment and products at the lowest possible cost for the organization. 4. supply management describes the methods and processes of modern corporate or institutional buying. This may be for the purchasing of supplies for internal use referred to as indirect goods and services, purchasing raw materials for the consumption during the manufacturing process, or for the purchasing of goods for inventory to be resold as products in the distribution and retail process. * Supply management deals primarily with the oversight and management of materials and services inputs, management of the suppliers who provide those inputs, and support of the process of acquiring those inputs. The performance of supply management departments...
Words: 2103 - Pages: 9
...“Energy Chain”, A New Concept in Evaluating Future Energy Conservation and Greenhouse Abatement Alternatives and Effectiveness Background The energy demand and supply system consists of many kinds of energy subsystems, for example, grid network, fuel (city gas, LPG, kerosene and so on) networks, prospective fuel (hydrogen) networks and demand-side equipments such as heat pump and cogeneration. In recent years, many evaluation methods and factors have been proposed and discussions of energy policy about innovative technology are becoming more multifaceted. In addition, as a result of specialization and segmentation of engineering science, too much discussion has been centered on particular details of efficiency, rather than on the overall needs of the energy supply and demand system. Integration of these evaluations and discussions is necessary for criteria for judgment. Critical review is always necessary to ensure that prospective technologies are really energy saving and contribute to greenhouse abatement over the whole spectrum from producing energy to end-use. Objectives To introduce a new concept of “Energy Chain” from producing energy through transmission, utilization and end-use, and to propose engineering methodology and evaluation method with examples. Principal Results 1.Proposing a New Concept of Energy Chain and Evaluation Method What the energy end-user needs is “energy benefit”. This include all kinds of benefit 1 that end-users enjoy. The energy chain (EC)...
Words: 1413 - Pages: 6
...504 IEEE TRANSACTIONS ON AUTOMATION SCIENCE AND ENGINEERING, VOL. 5, NO. 3, JULY 2008 Stochastic Modeling of an Automated Guided Vehicle System With One Vehicle and a Closed-Loop Path Aykut F. Kahraman, Abhijit Gosavi, Member, IEEE, and Karla J. Oty Abstract—The use of automated guided vehicles (AGVs) in material-handling processes of manufacturing facilities and warehouses is becoming increasingly common. A critical drawback of an AGV is its prohibitively high cost. Cost considerations dictate an economic design of AGV systems. This paper presents an analytical model that uses a Markov chain approximation approach to evaluate the performance of the system with respect to costs and the risk associated with it. This model also allows the analytic optimization of the capacity of an AGV in a closed-loop multimachine stochastic system. We present numerical results with the Markov chain model which indicate that our model produces results comparable to a simulation model, but does so in a fraction of the computational time needed by the latter. This advantage of the analytical model becomes more pronounced in the context of optimization of the AGV’s capacity which without an analytical approach would require numerous simulation runs at each point in the capacity space. Note to Practitioners—This paper presents a model for determining the optimal capacity of an automated guided vehicle (AGV) to be purchased by a manufacturer. This paper was motivated by work...
Words: 8654 - Pages: 35
...transportation and logistics services. It made in 1968 to become integrated maritime, offshore floating solution, heavy engineering and logistics service provider. This made misc become a subsidiary of PETRONAS in 1988, a move that produced synergistic benefits especially in the field of oil and gas transportation. Misc also is the world leading LNG owner operator with over two decades of proven experience for safely, reliability. They are forging partnerships in technologies advancement to offer LNG technology solution and new offshore applications. The company misc is a currently third largest shipping conglomerate in the world by market capitalism. The company is specialist in Energy Transportation and leading maritime corporation in Malaysia. The companies consists of ship owning, operating of offshore floating facilities as well as marine repair, marine conversion and engineering and construction works. The company MISC also delivers freighting solutions for Vegoil and Chemical products to various corners of the globe, leveraging on its extensive experience in bulk trading .Misc is currently growing the fleet of chemical tankers, establishing itself as transporter of chemicals and vegetable oils on the global platform. MISC is also a growing player in the offshore industry, offering floating facility solutions mainly FPSOs/FSOs with our ability to add value combined with world-class technology and know-how. We deliver safe, predictable project execution excellence throughout...
Words: 1023 - Pages: 5
