N.C.C. Supply chain

8/9/2019 N.C.C. Supply chain

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Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall. 1-1


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Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

N.C.Cs KPIs

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YEAR DAILY

PROD.

MACH

.

NO.

EMPLO

YEES

M:E P/E P/M

N.C.C 1985 30000 1800 3000 1.67 10.00 16.67

E.C.C 1993 15000 440 1400 3.18 10.71 34.09

MAYTEX 1999 24000 1200 4200 3.5 5.71 20

TECHNO.

TEX

2005 10000 900 2200 2.44 4.55 11.11

MAYTEX 2007 1400 350 450 1.29 3.11 4


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N.C.C.s KPIs

Annual Sale L.E. 600,00,00,00

Gross Profit 28%

Net Profit 6%

ROI 40%

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Egypts Competitive Advantage

Egypt has an advantageous Duty Free agreements

with both the USA and Europe, cheap utility prices

and a large cheap labor force. The proximity ofEgypt

to Europe also means we can use the high qualityEuropean fabrics that Europeans are accustomed to,

manufacture it competitively in Egypt and then export

the finished garment to Europe Duty Free in a much

shorter time than from the FarEast.

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Comp

etitive Advantag

e

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Resources

Know-how

Installed costumer base

Reputation of the firmBrand equity

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Capabilities

N.C.C. has the ability to produce and ship products

( fulfill customer orders) faster than competitor.

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Company Mission

Quality

On time

Convenience

Flexibility

Development

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Impact of CustomerNeeds on

Company Mission

Customer Need Company Mission

Range of quantity and variety

required increases

Flexibility

Lead time decreases On Time

Rate of innovation increases Development

Required service level increases Convenience

Quality


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Do You Know

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PANT SHIRT

Production

Time

18 minutes 13 minutes

Operations 45 24

Component

s

30 24


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N.C.C.s Supply Chain Strategy

N.C.C. is a clear garment manufacturer.

N.C.C. is looking for partners not customers.

All the production and warehousing facilities are

located were intensive labor are present all are closed

to each other.

All facilities are designed to deal with big capacities.

N.C.C.s target was increasing supply chain surplusby moving gradually to sell high value garment.

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Supply Chain Planning

Annual production plan.

Facilities expansion.

Fabric and trims sourcing.

Wages plan.

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Supply Chain Operation

Daily production flow up.

Maintenance.

Hiring new operators.

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Cycle View of Supply Chains

Customer order,

Manufacturing,

Procurement Cycle

B2B CUSTOMER

Manufacturer


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Push/Pull View of Supply Chains

Procurement,

Manufacturing and

Customer cycles

PULLPROCESSES


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Comparison ofEfficient and

Responsive Supply Chains

Efficient Responsive

Primary goal Lowest cost Quick response

Product design strategy Min product cost Modularity to allow

postponement

Pricing strategy Lower margins Higher margins

Mfg strategy High utilization Capacity flexibility

Inventory strategy Minimize inventory Buffer inventory

Lead time strategy Reduce but not at expense

of greater cost

Aggressively reduce even if

costs are significant

Supplier selection strategy Cost and low quality Speed, flexibility, quality

Transportation strategy Greater reliance on low cost

modes

Greater reliance on

responsive (fast) modes


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A Framework for

StructuringDrivers

Competitive Strategy

Supply Chain

Strategy

Efficiency Responsiveness

Facilities Inventory Transportation

Information

Supply chain structure

Cross Functional Drivers

Sourcing ricing

Logistical Drivers


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Drivers of supply chain

performance

Facilities

Inventory

Transportation

Information

Sourcing

PricingHR


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Drivers of Supply Chain Performance Facilities

places where inventory is stored, assembled, or fabricated

production sites and storage sites

Inventory

raw materials, WIP, finished goods within a supply chain

inventory policies Transportation

moving inventory from point to point in a supply chain

combinations of transportation modes and routes

Information

data and analysis regarding inventory, transportation, facilities throughout the supplychain

potentially the biggest driver of supply chain performance

Sourcing

functions a firm performs and functions that are outsourced

Pricing

Price associated with goods and services provided by a firm to the supply chain.


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Information System

Enterprise System

ERP Enterprise Resource Planning

RFID

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Achieving Strategic Fit

Understanding the Customer

Lot size

Response time

Service level

Product variety

Price

Innovation

ImpliedDemand

Uncertainty


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Responsiveness Spectrum

(Figure 2.4)

Integrated

steelmill

Dell

Highly

efficient

Highly

responsive

Somewhat

efficient

Somewhat

responsive

Hanes

apparel

Most

automotive

production


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Correlation Between Implied Demand

Uncertainty and Other Attributes (Table 2.2)

Attribute Low Implied

Uncertainty

High Implied

Uncertainty

Product margin Low High

Avg. forecast error 10% 40%-100%

Avg. stockout rate 1%-2% 10%-40%

Avg. forced season-

end markdown

0% 10%-25%


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Good Case Practices From N.C.C

3c Concentration, Consistency and continuously.

KISS Keep It Simple Stupid.

TME Two More Eyes.

Monkeys.

Ice Ball.

Problem Is a Chance.

Keep Pipes Clean.

React not predict

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N.C.C. Supply chain

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