LOGISTCS SYSTEM DESIGN

Planning and
Design Techniques

.-NIOREFBADL|PMTSC6
.,DRMAIETVGOZ|JULY2509

LM
DISCUSSION: Planning and
Design Techniques
 Planning Methodology
 Phase I: Problem
Definition and
Planning
 Phase II: Data
Collection and
Analysis
 Phase III:
Recommendations
and Implementation
 Supply Chain Analysis Met
 Work Application:
 UNIONBANK – Cash
Mobilization System
 Something New!
PLA N N IN G
M E TH O D O LO G Y

RESEARCH
PROCESS
Phase I: Problem Definition
and Planning
Phase I: Problem Definition and
Phase I: Problem Definition and
FEASIBILITY ASSESSMENT
The objective is to
understand the
environment, process and
performance
characteristics of the
current system and to
determine what, if any,
modifications appear
worthy of evaluation.
Situational Analysis
The collection of
performance measures,
characteristics and
information that describes
the current logistics
environment.
1. Internal Operational
Review
2. Market Assessment
3. Technology Assessment
Supporting Logic
The development of a
supporting logic to
integrate the findings of
the internal review, market
assessment and
technology study. This
constitutes the most
difficult part of the
strategic planning process.
Cost/Benefit Estimate
Estimating potential
benefits and risks
associated with performing
a logistics analysis and
implementing the
recommendation.
Project Planning
Any effort to identify and
evaluate strategic or
tactical alternatives must
be planned thoroughly to
provide a sound basis for
implementing change.
Statement of Objective
Documents the cost and
service expectations for
the logistics system
revisions. It is essential that
they be stated specifically
and in terms of measurable
factors. This also defines
market segments, time
frame and performance
expectations.
Statement of Constraints
The expected restrictions
on the scope of permissible
system modifications that
top management places.
Measurement of Standard and A

Identifying cost
assumptions and
performance objectives
essential to evaluate
recommendations.
Project Work Plan
On the basis of feasibility
and defined objectives,
constraints, standards and
analysis techniques, a
project work plan can be
developed.
Phase II: Data Collection and
Analysis
Phase II: Data Collection and An
Assumptions and Data Collection

Once the feasibility

assessment and project
plan are completed, Phase
II of a network design study
focuses on the data
collection and analysis.
This phase requires
assumption definition, data
collection, and analysis of
alternatives.
Defining Analysis Approaches and

Determination of the
appropriate analysis
technique for the planning
situation under
consideration. Options
available are analytical,
simulation and optimization.
Defining and Reviewing Assump

Builds the situation

analysis, project objectives,
constraints. And
measurement of
standards. Assumptions fall
on three classes;
1. Business Assumptions
2. Management
Assumptions
3. Analysis Assumptions
Identifying Data Sources

Detailed data must be

collected and organized to
support the analysis. When
unnecessary data is
difficult to collect,
sensitivity analysis should
be used to the identify data
impact.
Data Collection

Assembly of collected data

and conversion to
appropriate formats for the
analysis tool.
Validation Data

Base case or validation

data must also be collected
to verify that the results
accurately reflect reality.
The objective is to increase
the credibility with the
management with the
analysis process.
Analysis

Analysis involves use of the

technique and data to
evaluate strategic and
tactical logistics
alternatives. Process
includes:
1. Analysis Questions
2. Validating Baseline
Analysis
3. Analyses of Alternatives
4. Sensitivity Analysis
Analysis Questions

Defines specific analysis

questions concerning
alternatives and the
ranged of acceptable
uncertainty. The specific
questions build on research
objectives and constraints
by identifying specific
operating policies and
procedures.
Validating Baseline Analysis

It is the analysis of current

business environment.
Results should be
compared with the
validation data collected
previously to determine
the degree of fit between
historical and analytical
findings.
Analyses of Alternatives

Completing an evaluation
of design alternatives. The
analysis should determine
the relevant performance
characteristics for each
alternative design or
strategy.
Sensitivity Analysis

The best performing

alternatives can be
targeted for further
sensitivity evaluation.
Here, uncontrollable factors
such as demand, factor
costs and competitive
actions can be varied to
assess each alternative’s
ability to operate under a
variety of conditions.
Phase III: Recommendations
and Implementations
Phase III: Recommendations an

High level Implementation

Detailed Implementation
Recommendation

Alternatives and sensitivity

analysis results are reviewed
to finalize managerial
recommendations. This
review process includes four
tasks;
1. Identifying the best
alternatives.
2. Estimating costs and
benefits.
3. Developing a risk appraisal
and,
4. developing a presentation
Identifying Best Alternatives

Identifying the best options to

be considered for
implementation.
Estimating Costs and Benefits

Service improvement, cost

reduction and cost
prevention.
Evaluating Risk

Risk assessment considers

the probability that the
planning environment will
match the assumptions.
Presentation

Final presentation that

identifies, quantifies and
justifies suggested
changes.
Implementation

Actual plan or design

implementation is the final
process activity. An
adequate implementation
plan is critical since putting
the plan or design into
action is the only means to
obtain a return on the
planning process.
Defining the Plan

Defines the implementation

plan in terms of the
individual events, their
sequence and
dependencies.
Scheduling

Schedules the
implementation and time-
phases the assignments
identified previously. The
schedule must allow
adequate time for acquiring
facilities and equipment,
negotiating agreements,
developing procedures and
training.
Acceptance

Acceptance criteria should

focus on the service
improvements, cost
reduction, improved asset
utilization and enhanced
quality.
Plan Implementation

Implementation must
include adequate controls
to ensure that performance
as scheduled and that
acceptance criteria are
carefully monitored.
RESEARCH PROCESS MAP

Feasibilit
y
Assessment
Phase I
Project
Planning

Assumption
s and Data
Collection

Phase II

Analysis

Development of
Recommendation

Phase III

Implementati
on
SUPPLY CHAIN ANALYSIS MET
 Cash Mobilization
System

RECEIVE
CALLS PREPARE
FROM CASH DISPATCH
REQUESTING REQUEST ROVING
CLIENTS TELLERS

RECEIVE E-
MAIL
REQUESTS
FROM
BRANCHES
WORK APPLICATION
Cash Mobilization
System
Cash Mobilization
System
Cash Mobilization
System
Cash Mobilization
System
Cash Mobilization
System
Cash Mobilization
System
SOMETHING NEW
Oracle Logistics
Oracle Logistics
Oracle Logistics
Oracle Logistics
Oracle Logistics
THANK YOU !