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National Research University Higher School of Economics Programme of the course «Supply Chain diagnostics» for master degree students (educational direction 38.04.02, master program «Strategic management of logistics») Government of the Russian Federation Federal State Autonomous Educational Institution of the Higher Professional Education "National Research University "Higher School of Economics" Faculty of Logistics Programme of the course SUPPLY CHAIN DIAGNOSTICS For the direction 38.04.02 «Management» of the master degree students education, Master program “Strategic management of logistics” Author of the programme: Pavel A. Sverchkov, lecturer, chair of logistics [email protected] Moscow, 2014 National Research University Higher School of Economics Programme of the course «Supply Chain diagnostics» for master degree students (educational direction 38.04.02, master program «Strategic management of logistics») Course name: “Supply Chain Diagnostics” 1. Abstract: The most interesting and challenging part of logisticians' work include analysis of current logistic business processes and finding reserves to improve operational efficiency. Successful supply chain optimization and achieved savings always assume the previous step of clearly structured and well-managed diagnostics. Supply Chain diagnostics is a course about structural approach for analysis and investigation of operational efficiency in a number of areas within supply chain management. Classes will cover the following key SCM areas: • • • • Procurement Warehousing Transportation Inventory management Approach for diagnostics within each area will include general sequence of steps, key aspects of SC efficiency to investigate, list of questions to address, examples of benchmarks and good practices to consider when comparing the current and the target states of supply chain and defining major deviations. Students also will be introduced to existent tools and methods for collection, processing and visualization of raw data and final results / conclusions of diagnostics. Course will help students to build up professional look on supply chain functional areas, develop skills for express analysis and problem identification, improve overall supply chain competence. 2. Training objectives Having taken the course a student must: understand goals, approach and tools of supply chain diagnostics; be able to use and adopt general framework for SC diagnostics under concrete tasks know key performance indicators, major points of analysis and approaches for express diagnostics for main functional areas: “Procurement”, “Transportation”, “Warehousing”, “Inventory management” know sources and ways to collect information for SC benchmarking and good practice analysis 3. Syllabus Theme Classes (h) Independent work (h) “Introduction” 4 2 “Diagnostics in procurement management” 5 2 “Diagnostics in transportation” 5 2 “Diagnostics in warehousing” 5 2 “Diagnostics in inventory management” 5 2 National Research University Higher School of Economics Programme of the course «Supply Chain diagnostics» for master degree students (educational direction 38.04.02, master program «Strategic management of logistics») Course control 2 Total 26 10 4. Theme description Theme 1: “Introduction” Theme content Part 1: Definition Goals and projected results 5-step approach to SC diagnostics Standard tools of SC diagnostics Part 2: General framework (directions and levels of analysis) for corporate SC diagnostics based on Supply Chain operations reference model (SCOR) Example of using the framework Lessons learned Case: Site logistics in agricultural manufacturing: bottlenecks identification Theme 2: “Diagnostics in procurement management” Theme content: Key procurement efficiency indicators Spend analysis and cost savings opportunities Procurement centralization and FTE benchmarks Procurement business processes maturity assessment: key tips Procurement data availability and IT support Case: Swiss food producer: express procurement diagnostics Theme 3: “Diagnostics in transportation” Theme content: Key transportation efficiency indicators 10-ways diagnostics for cost savings on transportation Transportation management outsourcing opportunity assessment Transportation business processes maturity assessment: key tips Contractual work on transport Case: 3PL provider (sea and railway transportation): analysis of management reporting National Research University Higher School of Economics Programme of the course «Supply Chain diagnostics» for master degree students (educational direction 38.04.02, master program «Strategic management of logistics») Theme 4: “Diagnostics in warehousing” Theme content: Warehouse key performance indicators SC network audit: 6-step approach Individual facility performance: approach for diagnostics Warehousing business processes maturity assessment: key tips Case: FMCG producer: “How good are current 13 DC locations?” Theme 5: “Diagnostics in inventory management” Theme content: Supply Chain KPI’s in inventory management Inventory performance diagnostics Production & Inventory planning optimization: key tips Organizational design of inventory control activities Case: Metallurgy: spare parts inventory management Cases for Themes can be changed. 5. Course assessment Final grade formula: FG = 0.6 * ((C1+C2+C3+C4+C5)/5) + 0.4 * T, where C1, C2, C3, C4, C5 – marks for case work in groups T – mark for control test Control test (T) includes closed questions with multiple choice and open ended questions (practical mini-tasks). Open ended questions have higher weight in the test mark. Evaluation criterion: From To Result 0 3 Fail 4 10 Credit 6. Recommended literature Literature (№№ of themes applied): 1. Ronald H. Ballou. Business Logistics / Supply Chain Management // Pearson Prentice Hall, 2003 (1-5) National Research University Higher School of Economics Programme of the course «Supply Chain diagnostics» for master degree students (educational direction 38.04.02, master program «Strategic management of logistics») 2. David Blanchard. Supply Chain Management. Best practices // John Wiley and Sons, Inc., 2010 (1-5) 3. Jonathan O’Brien. Category management in purchasing: a strategic approach to maximize business profitability // Kogan Page, 2009 (2) 4. John J. Coyle, Robert A. Novak, Brian Gibson, Edward J. Bardi. Transportation: A Supply Chain Perspective // Cengage Learning, 7 edition, 2010 (3) 5. Edward Frazelle. World-Class Warehousing and Material Handling // McGraw-Hill, 2013 (4) 6. David Simchi-Levi, Philip Kaminsky, Edith Simchi-Levi. Designing and Managing the Supply Chain // McGraw-Hill; 4 edition, 2012 (1, 4) 7. Tony Wild. Best practices in inventory management // John Wiley and Sons, Inc., 1997 (5) 8. Darryl V. Landvater. World Class Production and Inventory Management // John Wiley and Sons, Inc., 2 edition, 1997 (1, 5) Literature on Russian language (№№ of themes applied): 1. В.В.Дыбская, Е.И.Зайцев, В.И.Сергеев, А.Н.Стерлигова. Логистика: интеграция и оптимизация логистических бизнес процессов в цепях поставок. Учебник (Полный курс МВА) // Изд. «ЭКСМО», Москва, 2009 г. (1-5) 2. В.И.Сергеев, И.П.Эльяшевич. Логистика снабжения // Изд. «Рид-Групп», Москва, 2011 г. (2) 3. В.В.Дыбская. Управление складированием в цепях поставок. // Изд. «АльфаПресс», Москва, 2009 г. (3) 4. А.М.Афонин, В.Е.Афонина, А.М.Петрова, Ю.Н.Царегородцев. Транспортная логистика: организация перевозки грузов // Изд. «Форум», Москва, 2014 г. (4) 5. Г.Л.Бродецкий. Управление запасами. Высшее экономическое образование. Учебное пособие // Изд-во «ЭКСМО», Москва, 2007 (5) 6. Ю.Е.Мауэргауз. Продвинутое" планирование и расписания (AP&S) в производстве и цепочках поставок // Изд. «Экономика», Москва, 2012 г. (5)