Page 295 - DMGT523_LOGISTICS_AND_SUPPLY_CHAIN_MANAGEMENT

Logistics and Supply Chain Management

Notes Project Work Plan

On the basis of feasibility assessment, objectives, constraints, and analysis technique, a project
work plan must be determined and the resources and time required for completion identified.
The alternatives and opportunities specified during the feasibility assessment provide the basis
for determining the scope of the study. In turn, the scope determines the completion time.
Project management is responsible for the achievement of expected results within time and
budget constraints. One of the most common errors in strategic planning is to underestimate the
time required to complete a specific assignment. Overruns require greater financial expenditures
and reduce project credibility. Fortunately, there are a number of PC-based software packages
available to structure projects, guide resource allocation, and measure progress. Such
methodologies identify deliverables and the interrelationship between tasks.

13.1.2 Phase II: Data Collection and Analysis

Once the feasibility assessment and project plan are completed, Phase II focuses on data collection
and analysis. This includes activities to define assumptions and collect data and to analyze
alternatives.

Assumptions and Data Collection

This activity builds on the feasibility assessment and project plan to develop detailed planning
assumptions and identify data collection requirements by (1) defining analysis approaches and
techniques, (2) defining and reviewing assumptions, (3) identifying data sources, (4) collecting
data, and (5) collecting validation data.

Defining Analysis Approaches and Techniques
Although it is not necessarily first, an early task is the determination of the appropriate analysis
approach and the acquisition of necessary analysis techniques. While a wide number of options
are available, the most common techniques are analytical, simulation, and optimization. The
analytical approach uses standard numerical methods such as those available through
spreadsheets to evaluate each logistics alternative. Spreadsheet availability and capability have
increased the application of analytical tools for distribution applications.
A simulation approach can be likened to a laboratory for testing supply chain alternatives.
Simulation is widely used, particularly when significant uncertainty is involved. The testing
environment can be physical, such as a model materials handling system that physically illustrates
product flow in a scaled-down environment, or numerical, such as a computer model of a
materials handling environment that illustrates product flow on a computer screen. Current
software makes simulation one of the most cost-effective approaches for evaluating dynamic
logistics alternatives.

Example: A PC-based simulation can model the flows, activity levels, and performance
characteristics.
Many simulations can also illustrate system characteristics graphically.

Example: Supply chain dynamic simulation can be used to illustrate the trade-off between
inventory allocation strategy and supply chain performance.

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