Introduction. Simulation "Distribution" Dkfm. Mag. Walter Broschek Consultant, Vienna

Transcription

1 Introduction Simulation "Distribution" Dkfm. Mag. Walter Broschek Consultant, Vienna

2 Index 0 Preamble 3 1 Goal and program of the simulation 4 2 The company 5 3 The products 6 4 The customers 7 5 The costs 8 6 The planning 9 7 The roles 10 8 Appendix

3 0 Preamble This introduction to the business simulation D i s t r i b u t i o n should guarantee an easy entry to the simulation and serve as a reference book while it is being done. The contents of this introduction should be known by the participants at the beginning of the simulation! - 3 -

4 1 Goal and program of the simulation The aim is that participants should learn and understand the meaning of logistics with special focus on Distribution during the two days of simulation. Three periods of ten turns each will be played. The participants will act in five different roles and will have different views on this part of the supply chain starting at the production and ending at the customer. Each period consists of the parts Introduction to the focus of the period Planning Working according to the job descriptions Analyses Total group result Contribution of each participant to the result Determination of the weak points Potential analyses Development of measures for improvement (group work) Key topics will be Lead time / delivery time for Standard products Special products (Built to order products) Spare parts Delivery from Warehouse Distribution center Factory Market structures and requisites European market Overseas market - 4 -

5 2 The company See app. 1: Places of work The company produces standard and special products in the EU. Customers are not only in the EU but also overseas. All the transportation is done by logistics service providers. The warehouse and the distribution center belong to the company

6 3 The products See app. 2: Products The company produces Standard products BB Black-Black RR Red-Red WW White-White Special (Built to order) products GB - Grey-Black GR - Grey-Red GW - Grey-White RB - Red-Black (dangerous goods) WR - White-Red (not to be transported together with RB Spare parts are B2 - Black 2 R2 - Red 2 W2 - White 2 G2 - Grey 2 B4 - Black 4 R4 - Red 4 W4 - White 4 Products of the series Grey (i.e. GB, GR, GW) have to be installed on site at the customer. For this reason there are special technicians in the EU and overseas who serve this purpose

7 4 The customers The company s customers are situated in Europe and overseas. E1 Near to the factory / warehouse. Can only be reached by truck and the truck will (normally) arrive the next turn. (Starting turn + 1) E2 In the center of the EU. Good traffic connections. Served by plane (+1 turn), truck (+2 turns) and rail (+3 turns). E3 O1 O2 O3 Quite far away form the factory. Traffic connections could be much better. To be reached by plane (+2 turns), truck (+4 turns), rail (+5 turns) and even ship (+7 turns). Overseas, quite near to the distribution center, the main port and airport. To be reached from the distribution center by truck the next turn. Transportation from the factory will last by plane 3 turns and by ship 9 turns (actual turn included). In reasonable distance from the distribution center and with good connection to sea and airport. To be reached from the distribution center by truck within three turns (actual turn included). Transportation from the factory will last by plane 4 turns and by ship 10 turns (actual turn included). Far away from anywhere. From the distribution center it will last 4 turns to reach the customer by truck (actual turn included). Transportation from the factory will last by plane 5 turns and by ship 12 turns (actual turn included)

8 5 The costs See app. 3: Costs The costs in the simulation are not all the costs of the company but only the costs connected with logistics with the impact on distribution. Costs are divided into Costs for warehouse and stock Warehouse (costs connected with the building, means of storage and transportation, personal and equipment for steering) Stock (costs created by goods in the warehouses) Costs for transportation (costs for moving goods) Normal transportation (Truck, rail, plane, ship) Surcharge for express delivery Costs for steering Replenishment orders Order control Transportation management Complaints Late deliveries Investments Costs for improvements during the simulation On the difference between necessary and avoidable costs is laid great impact. Avoidable costs can rise in all areas of costing. During the simulation participants will understand the reasons for avoidable costs and learn about the measures to really avoid them. Costing is an essential part of the simulation and has to be done very carefully. You can either use the forms or a laptop computer. Following forms have to be used: Order control Stock and order control Warehouse Stock and order control Distribution Center Logistics Service Provider A, B, C Customer Costing Period n See app. 4 9: Forms for costing - 8 -

9 6 The planning See app. 10: Planning of sales, app. 11: Stock Planning starts with planning of sales for a period. Derived from this planning is the planning of: Capacities for storage in the warehouse and the distribution center Average stock Capacities for transportation Capacities for production Material for production - 9 -

10 7 The roles See App. 18: Job description One group in the simulation consists of 12 different places of work. If there are more than 12 participants some of the places can be split and handled by two persons

11 8 Appendix 1 Places of work 12 2 Products 13 3 Costs 14 4 Order management 15 5 Stock and order control Warehouse 16 6 Stock and order control Distribution Center 17 7 Logistics Service Provider 18 8 Customer 19 9 Costing Period Planning of sales Stock Customer order Replenishment order Transportation order Storage order Transportation Tracing Production Plan Job descriptions

12 App. 1 Places of work Production Transport.- mgmt. Ordermgmt. Productioncontrol Service Controlling Warehouse 8 Distrib.- center Logistics Serv. A Logistics Serv. B Logistics Serv. C 12 Customer WB Room-Layout Distribution

13 App. 2 Parts Products B2 R2 W2 G2 B4 R2 W4 Products (Standard) BB RR WW Products (Built to Order) GB GR GW RB WR Installation necessary Dangerous goods NO transport together with RB WB Products

14 App. 3 Costs Period Costs for warehouse and stock Warehouse 2 Additional storage place in warehouse 4 Special Products 3 Spare parts 2 Distribution Center 3 Additional storage place in distribution center 6 Poduct 20 Spare part 12 Stock out 20 Products at logistics service provider 4 Spare parts at logistics service provider 3 Costs for Transportation Products by truck 10 Spare parts by truck 6 Products by rail 7 Spare parts by rail 4 Products by plane 25 Spare parts by plane 15 Products by ship 3 Spare parts by ship 2 Express delivery products 5 Express delivery spare parts 3 Costs for steering Replenishment orders 5 Order control 3 Transportation management 2 Installation control 2 Complaints 20 Late delivery 10 Investments

15 App. 4 Order management Turn 1 Orders confirmed with inst. without inst Σ Costs per order 5 3 Costs

16 App. 5 Stock and order control Warehouse BB RR WW BTO SP Turn Repl. Repl. order order No. quantity Planned stock Actual stock Stock out Repl. Repl. order order No. quantity Planned stock Actual stock Stock out Repl. order No Σ Σ / 10 Repl. order quantity Planned stock Actual stock Stock out Places Actual stock Places Actual stock Costs per unit Costs

17 App. 6 Stock and order control Distribution Center BB RR WW Turn Repl. order Repl. order No. quantity Planned stock Actual stock Stock out Repl. order Repl. order No. quantity Planned stock Actual stock Stock out Repl. order Repl. order No. quantity Planned stock Actual stock Stock out Σ Σ / 10 Costs per unit Costs

18 App. 7 Logistics Service Provider A Turn Products Truck Rail Plane Ship Spare parts Products Spare parts Products Spare parts Products Spare parts Products Express Spare parts Warehousing Products Spare parts Σ Costs for transportation / warehousing per unit Costs Σ / 10 Costs for stock per unit Costs

19 App. 8 Customer Turn No of orders received Number of goods delayed 1 turn 2 turns 3 turns 4 turns 5 turns No of complaints Σ Costs per unit Costs

20 App. 9 Costing Period 1 Costs Storage Additional Storage at Logistics Provider Stock Additional Stock at Logistics Provider Stock out Total storage and stock Truck Rail Plane Ship Express delivery Total transportation Replenishment orders Order control Transportation management Late delivery Complaints Total steering Total investments Total

21 App. 10 Planning of sales Period E/O Products Spare parts BB RR WW Σ GB GR GW RB WR Σ B2 R2 W2 G2 B4 R4 W4 Σ E O Σ E 2 O Σ E 3 O Σ

22 App. 11 Stock Warehouse Period Product Planned inventory Min. demand Max. demand Av. Demand BB ,5 RR ,0 WW ,0 BB RR WW BB RR WW Stock Distribution Center Period Product Planned inventory Min. demand Max. demand Av. Demand BB ,0 RR ,5 WW ,0 BB RR WW BB RR WW

23 App. 12 Customer Order Customer Product E2 Turn of issue -6 Quantity 1 Turn ex works -2 Turn GW requested: 2 Packing confirmed: 2 SET 2 received:

24 App. 13 Replenishment order Express processing o Receiving point DC Turn of issue Express transportation o Turn ex works -1 Product RR Received: Quantity 4 Turn requested

25 App. 14 Transportation Order Customer Freight carrier: E2 A Turn ex works: Main course: Truck: Rail: x Ship: Plane: Product: G2 Quantity: Packing: SET 2 Express delivery: 1 Turn of issue o

26 App. 15 Storage Order 9 Logistics Service Provider Turn of issue Product: Quantity:

27 App. 16 Transportation Tracing Order No Turn Turn Device / Store Product Quantity

28 App. 17 Production plan Turn Standard / Built to order S 1 B 2 S B RO 702 BB 9 CO 25 RB 1 RO 703 WW 7 > > > > > > > > CO 30 WR 1 CO 32 WR 3 > > CO 34 WR 2 > > > > > > > CO 37 GB 1 RO 504 RR 4 > > > 3 S B CO 39 RB 2 > 4 S B 5 S B CO 40 GR 2 > 6 S B 7 S B 8 S B 9 S B 10 S B 11 S B 12 S B

29 App. 18 PR Production I am responsible for producing the products according to the production plan In Customer orders (for Built-to-order products) and Replenishment orders (for Standard products) Process Produce the products according to the orders Out Products (to warehouse) Information (to production control) about lack of material, capacity problems and resulting backlogs Notes

30 App. 18 PC Production control I am responsible for planning the sequence of production and the capacities In Customer orders (for Built-to-order products) and Replenishment orders (for Standard products) Process Plan the sequence of production for Built-to-order products and Standard products considering Urgency Capacities Available material Backlogs Out Orders in sequence for Production Production plan updated Information (to order Processing, warehouse or distribution center) about backlogs Notes

31 App. 18 TM Transportation Management I am responsible for transportation of products from production to customer and for storing goods at the logistics service providers In Customer orders and Replenishment orders (from DC) Demand of additional storage places Process Select adequate freight carrier and complete Transportation order Attention: Standard products (BB, RR, WW) are delivered for O -Customers (overseas customers) from DC! The Turn ex work has to be marked with DC! If transportation can t be done by the date (turn) confirmed, discuss the problem with Order Management and find a solution together Find adequate logistics service provider to store products and/or spare parts Out Customer orders for Standard products to Warehouse ore Distribution Center, Customer orders for Built-to-order products, Spare parts and Replenishment orders to Production control Transportation orders to corresponding Logistics service provider Storage orders to corresponding Logistics service provider Notes

32 App. 18 OM Order Management I am responsible for confirming the customer orders In Customer orders Process Confirm quantity and date (turn) the customer will receive the ordered product(s) considering Transportation time Installation Production time and capacity Backlogs Installation can be started up to two turns before the requested turn! Customer orders for products GB, GR, GW have to be sent first to Service for reservation of installation staff Out Customer orders to Transportation Management Customer orders for products GB, GR, GW to Service Notes

33 App. 18 W-W Warehouse-Warehousing I am responsible for storing and reordering the standard products In Finished products from production together with Customer orders (for Built-to-order products) and Replenishment orders (for Standard products) Customer orders (for Standard products) Process Store standard products Reorder standard products concerning actual stock situation, planned inventory, actual demand, and replenishment time Fill in the form Stock and order control Warehouse Inform transportation management about the demand of additional storage place Out Finished products from production together with Customer orders (for Built-to-order products) and Customer orders (for Standard products) to Shipping Replenishment orders to Production control Notes

34 App. 18 W-S Warehouse-Shipping I am responsible for getting the products ready to be taken by the freight carrier In Finished products from production together with Customer orders (for Built-to-order products) and Replenishment orders (for Standard products) Customer orders (for Standard products) Process Pick Standard products from warehouse according to Customer orders and make all orders ready for shipping Out Give orders with products to freight carrier according to Transportation orders Inform Warehousing if Standard products are out of stock Notes

35 App. 18 D-W Distribution Center-Warehousing I am responsible for storing and reordering the standard products In Finished products from production together with Replenishment orders (for Standard products) Customer orders (for Standard products) Process Store standard products Reorder standard products concerning actual stock situation, planned inventory, actual demand, and replenishment time Fill in the form Stock and order control Distribution Center Out Customer orders (for Standard products) to Shipping Replenishment orders to Transportation Management Notes

36 App. 18 D-S Distribution Center-Shipping I am responsible for getting the products ready to be taken by the freight carrier In Customer orders (for Standard products) Process Pick Standard products from warehouse according to Customer orders and make them ready for shipping Out Give orders with products to freight carrier according to Transportation orders Inform Warehousing if Standard products are out of stock Notes

37 App. 18 SV Service I am responsible for installing the products at the customer s site In Customer orders for products GB, GR, GW Process Adjoin stickers (= reservation of installation staff) with E to E -customer orders and with O to O -customer orders Installation can be started up to two turns before the requested turn! Out Customer orders with stickers Inform Order management, if installation can t be done by the requested date (turn) Notes

38 App. 18 CO Controlling I am responsible for defining new targets and metering the deviations In Collected data from customer, warehouse, production Process Compare actual figures with targets and find out causes for deviations Delivery ability (%) = Number of orders with (date requested = date confirmed) * 100 / Number of all orders processed Delivery reliability (%) = Number of orders with (date confirmed = date received) * 100 / Number of all orders processed Capacity utilization (%) of production = Number of products produced * 100 / Number of capacity units Out Surplus stock (average / turn) = Stock out rate = Total number of products exceeding planned inventory (each turn) / Number of turns Total number of products missing for picking (each turn) / Number of turns New targets (e.g. delivery ability, delivery reliability, capacity utilization, surplus stock, lack of stock) Notes

39 App. 18 LS Logistics Service Provider I am responsible for activities connected with storage and transportation of products In Transportation orders Storage orders Process Collect products with Customer orders or Replenishment orders according to Transportation orders and fill in the form Transportation Tracing Cast dice to find out if there are any problems Deliver the products to the customers. Products should arrive at the date (turn) confirmed Transport the goods by truck, rail, ship or airplane Store goods Count the number of products / spare parts in each transportation device and fill in the form Logistics service provider Out Inform Order management if there are any delays Notes

40 App. 18 C Customer I am responsible for placing orders and checking the deliveries In Deliveries with customer and transportation orders Process Check deliveries Product Quantity Date requested confirmed - received Installation and write out complaints if necessary Installation can be started up to two turns before the requested turn! Prepare orders for sending Out Customer orders Complains Notes