Diagnosing supply chain complications using the CSCMP standard (case study: Iran Daruk Pharmaceutical Company)

Number of pages: 191 File Format: Not Specified File Code: 29562
Year: Not Specified University Degree: Not Specified Category: Industrial Engineering
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  • Summary of Diagnosing supply chain complications using the CSCMP standard (case study: Iran Daruk Pharmaceutical Company)

    Master's Thesis in Industrial Engineering, System Management and Productivity

    March 2013

     

    Due to the extensive reorganization of business processes and structures as well as the changing world of the industry, the concept of supply chain and its management has gained special importance. In this approach, instead of having to have the best performance in all fields, organizations can take advantage of the core capabilities of other organizations in order to optimize their capabilities and increase their effectiveness and improve the level of customer satisfaction. Based on this, one of the challenges faced by officials related to logistics and supply chain in companies is how to identify problems in the field of logistics and supply chain. By identifying these gaps and providing improvement projects, the company's supply chain can be strengthened and improved. In this treatise, a new approach based on the activities of the APQC model is presented to identify the complications in the supply chain. By using the minimum supply chain requirements standard (CSCMP) for each of these activities to identify complications and using the MMOG/LE self-evaluation model to prioritize them, these gaps can be analyzed and improvement projects can be provided based on the ranking obtained. Finally, a case study in a pharmaceutical company has been used to implement the proposed model.

    Keywords: Problem solving, supply chain, APQC process classification model, supply chain minimum requirements standard. 1-1 Introduction Due to the extensive reorganization of business processes and structures as well as the changing world of the industry, the concept of supply chain and its management has gained special importance. In this approach, instead of having to have the best performance in all fields, organizations can take advantage of the core capabilities of other organizations in order to optimize their capabilities and increase their effectiveness and improve the level of customer satisfaction. This partnership requires a careful and systematic supervision, which in case of neglect, the organization will deteriorate and as a result, it will give its competitive share to competitors. Therefore, achieving optimal performance of the supply chain in order to have a competitive advantage has become a strategic weapon for success in all aspects of industries.

    The concept of supply chain emerged in the late 1980s and was widely used in the 1990s. Before that, terms such as logistics and performance management were used instead of supply chain management.

    So far, different definitions and writings have been provided about supply chain. According to one of these definitions, the supply chain includes all the direct and indirect steps involved in completing the customer's order request. The supply chain is not only related to the manufacturer and supplier, but also includes transportation, warehouses, retailers and even the customers themselves. In general, the supply chain is a chain that includes all activities related to the flow of goods and the transformation of materials from the stage of raw material to the stage of delivery of the final product to the consumer. About the flow of goods, there are two other flows, one is the flow of information and the other is the flow of financial resources and credits.

    Accordingly, supply chain management is responsible for integrating organizational units along the supply chain and coordinating the flow of materials and information in order to meet customer demand and with the aim of improving the competitiveness of a complete supply chain. In other words, supply chain management is a set of approaches that are effectively used in the integration of suppliers, manufacturers, storekeepers and distributors in order to produce and distribute goods in the required quantity and at the right place and at the right time to minimize system costs in order to provide the required level of service. The course of rapid developments and changes has prompted organizations to research logistics and supply chain in order to overcome their uncertain environment.In this approach, all problems are important and effective action must be taken to solve them.

    Accordingly, one of the challenges faced by officials related to logistics and supply chain in companies is how to identify existing problems in the field of logistics and supply chain. The diversity and the high number of topics raised in the philosophy of supply chain management complicate the task of choosing the best corrective measures to improve supply chain performance. Therefore, considering that the first step in the revision and improvement of the supply chain is problem detection, therefore identifying the methods of problem detection and analyzing the supply chain situation are among the important things that people active in this field should be familiar with. As a result, while providing an overview of the supply chain situation of Iran Daruk, identify, prioritize and analyze the various existing problems and complications.

    1-2 Importance of the research topic

    In today's world, supply chain management is a key and strategic factor in increasing the effectiveness and realizing the goals of the organization. Based on this, supply chain management should be considered one of the critical areas of organization management. This field of management, like other fields, requires monitoring, supervision, problem solving, improvement, and ultimately leading to excellence in order to gain and strengthen competitive advantages, performance measurement, continuous improvement, and efficient and effective management.

    According to the surveys carried out in Iran Daruk Company, during the past years, a systematic and organized effort to study, measure or Complications of the company's supply chain have not been done. Of course, various troubleshooting and improvement projects have been defined and implemented in an isolated and unitary form, but unfortunately, different units are not aware of each other's status, and these projects have not been implemented at the organization level with an overall view of the organization's supply chain. This is while considering the need to solve supply chain problems and create a competitive advantage in this area, it is necessary to define a basic project as soon as possible in order to implement problems and measure the performance of Iran Daruk's supply chain at the organization level. According to the mentioned requirements, the upcoming thesis seeks to implement a method to identify and extract the complications of the company's supply chain. 1-3 Research Assumptions and Objectives The projects of finding the complications of the supply chain, including heavy and complex projects in the field of supply chain management, are considered to be implemented accurately. In addition to the fact that they should be done in the form of multi-person teams, they require significant expenses from the organization. As a result, this research is associated with assumptions to reduce the scale of analysis as a student project. The most important assumption in the implementation of this research is not considering all aspects of the company's supply chain. This research has tried to focus on the scope of inbound supply chain [1]. In other words, the scope of planning for supply and production of products, requesting and ordering raw materials and receiving materials, and finally placing the required raw materials at the foot of the production line, is the area of ??study in this research. Also, in the field of supply, generally, the relationship of the organization with first-level suppliers has been analyzed, while if the industrial implementation of the mentioned project is required, it is necessary for lower-level suppliers to be seen in the analysis as well.

  • Contents & References of Diagnosing supply chain complications using the CSCMP standard (case study: Iran Daruk Pharmaceutical Company)

    Chapter 1 research overview‌ 1

    1-1 Introduction. 2

    1-2 The importance of the research topic. 3

    1-3 Assumptions and objectives of the research. 4

    1-4 stages of research. 5

    1-5 thesis structure. 6

    Chapter 2 review of research literature. 8

    2-1 Introduction. 9

    2-2 supply chain. 9

    2-3 supply chain management. 10

    2-3-1 The main components of supply chain management. 11

    2-3-2 Measuring and evaluating the supply chain. 12

    2-3-3 The necessity of performance measurement in a supply chain. 14

    2-3-3-1 Absence of a balanced method. 14

    2-3-3-2 lack of clear distinction between criteria at strategic, tactical and operational levels. 14

    2-4 supply chain complications. 15

    2-4-1 History of supply chain complications. 17

    2-5 performance indicators and measures in a supply chain. 19

    2-5-1 Articles measuring and evaluating supply chain performance. 21

    2-5-2 management models and performance evaluation. 29

    2-5-2-1 supply chain operations reference model (SCOR) 31

    2-5-2-2 GSCF model. 36

    2-5-2-3 CPFR model. 37

    2-5-2-4 Balanced Scorecard (BSC) model. 39

    2-5-2-5 APQC model. 42

    2-5-3 methods of finding complications in the supply chain. 44

    2-5-3-1 quick search method. 47

    2-5-3-2 method of determining customer value. 53

    2-5-3-3 MMOG/LE method. 56

    2-5-3-4 Lambert method. 63

    2-5-3-5 CSCMP method. 66

    2-5-4 Summary of proposed complication detection methods. 69

    Chapter 3 Introduction of the company under investigation (Iran Daruk Pharmaceutical Company). 71

    3-1 Introduction. 72

    3-2 General principles of the company. 73

    3-3 brief introduction of the company. 75

    3-3-1 quality control section. 76

    3-3-2 quality assurance. 78

    3-3-3 Research and development laboratory. 80

    3-3-4 planning and storage. 81

    3-3-5 Technology and information. 82

    3-3-6 technical and engineering. 83

    3-3-7 production. 83

    3-3-8 Administrative affairs and human resources. 84

    3-3-9 Business and support. 85

    3-3-10 Marketing and sales. 85

    3-4 Identification of processes related to the supply chain. 86

    3-5 material and information flow. 89

    3-6 Summary. 90

    Chapter 4 introducing the proposed method for finding supply chain complications and improving it. 91

    4-1 Choosing the core of the proposed model. 92

    4-2 extraction of requirements 94

    4-3 design of questionnaire. 96

    4-4 Conducting interviews 101

    4-5 Interview results 103

    4-6 Complications analysis text 120

    4-7 Improvement projects. 124

    4-8 Prioritization of improvement projects. 133

    4-8-1 Priority criteria. 133

    4-8-2 Prometheus. 134

    4-8-3 Prioritization results. 141

    4-9 summary. 145

    Chapter 5 summary and suggestion for future research. 147

    5-1 The obtained results. 148

    5-2 Research fields. 151

    Resources. 152

    Appendix A: The results of the questionnaire. 157

    Appendix B: You are from Promati software environment. 181


    List of tables

    Page title

    Table ‏2?1: Classification of performance evaluation methods from three perspectives 30

    Table 2-2: Level 2 processes of the SCOR model. 34

    Table ‏2?3: The 9-step process of CPFR. 38

    Table ‏2?4: Quantitative information required from databases in the Quick Scan method. 51

    Table ‏2?5: Chapters and topics presented in each chapter related to the MMOG/LE model. 59

    Table ‏2?6: An example of the standard clauses of the minimum requirements of the CSCMP. 69

    Table ‏2?7: A comparison between the proposed supply chain problem detection methods. 70

    Table ‏3?1: The duration of the first type of interview to identify different departments of the company. 76

    Table ‏3?2: Micro-processes related to the supply chain in Iran Daruk Company. 88

    Table ‏4?1: The number of requirements extracted for each of the studied groups. 95

    Table ‏4?2: Classification of requirements based on the severity of criticality. 99

    Table ‏4?3: The novel of conducting interviews for each of the studied groups. 101

    Table ‏4?4: Extracted complications 103

    Table ‏4?5: The frequency of all types of complications identified in the company. 117

    Table ‏4?6: The criticality level of the studied groups. 118

    Table ‏4?7: Two examples of concept-based text mining for extracted complications 122

    Table ‏4?8: Improvement projects introduced to eliminate complications 124

    Table ‏ 4-9: Normalized version of the criteria for prioritization. 142

    Table ‏4?10: Ranking 31 proposed designs that address more than one problem. 142

Diagnosing supply chain complications using the CSCMP standard (case study: Iran Daruk Pharmaceutical Company)