Operational Planning and Control in .NET

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One of the difficult steps in effective PSCM is planning the flow of materials and other resources across the project s development to avoid bottlenecks and other problems that can choke down development and increase schedule times Project schedules are developed with several suppositions, one of which is that resources necessary for the project will be available when they are needed To ensure that these resources are in place, careful resource planning is key Many examples exist of organizations that failed to adequately plan for resources to be available when they were required The problem is exacerbated by the inclusion of multiple external suppliers A simple rule of thumb suggests that the more complex and integrated the supply chain, the greater the potential for problems to occur, if the process is left unmanaged Further, because most projects are developed sequentially, errors in supply at one
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Page 124 stage have a ripple effect downstream, leading to increased costs caused by accelerations and changes in the planned work sequence, and in the worst case, delay of the whole delivery The key is accurate and systematic planning and control Indeed, an entire academic discipline has arisen around the processes for planning the supply chain, from procurement of materials and resources through to fabrication and distribution Firms that work to plan and control resource flows derive great benefits from supply chain management while companies that are still in the learning mode are likely to continually experience new and greater difficulties
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What-If Analysis
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Supply chain management is the management of a series of complex, interrelated linkages between one firm and potentially numerous suppliers To make this process work, we must recognize that there is no point at which the process works optimally Project supply chain management is not a summit we reach, it is a slope we continually climb We get better at it so does our competition We lock in reliable suppliers one of them goes bankrupt And so the process goes Continuous fine-tuning, asking What if questions, and tweaking the system are all evidence of effective companies and their approach to the supply chain methodology Among the sorts of What if questions that we should continuously consider are the following10
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Changes in market demand for our products due to competitive pressure or mature product lines Changes in the design of the supply chain network (What happens when our old chain is disrupted ) Changes in technology make old suppliers inadequate or recommend new options
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Page 125
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Improvements to shipping and other logistics costs expand the pool of potential suppliers and customers The continuous desire to make and ship our projects faster, cheaper, and with greater flexibility
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CONCLUSION
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Project supply chain management is not an easy process, nor should it be approached without sufficient understanding of the steps involved and the organizationwide commitment to the methodology that is required for it to work Its benefits, however, are obvious: integrated, logical supplier networks, clear links to customers, a coordinated efficiency to the flow of materials (raw, financial, and human) to the project as needed for development Supply chain management takes the old discipline of project planning and expands it significantly Whereas in the old days, project planning often meant simply scheduling, with a bit of risk analysis or work breakdown structure thrown in, PSCM means that planning takes on a whole new level of complexity Planning begins outside of the project and even the project organization; it begins with suppliers It analyzes their potential contributions, selects those that will best benefit the project organization, and coordinates their deliveries Further, PSCM creates a new set of linkages directly with customers, at the end of the supply chain In the new system, project planning is no longer an internal process involved simply in project development, it is a totally coordinated exercise with explicit links to the rest of the organization, vendors and customers Properly established and continually monitored and upgraded, PSCM offers firms a new and powerful way of maintaining project workflow The initial time spent up-front establishing the supply chain will more then pay for itself downstream, as projects come to market cheaper and with more direct customer feedback and acceptance
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