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Logistics and Supply Chain Management
Notes then quantitatively justify the changes in terms of service, expense, asset utilization, and
productivity improvements. The presentation should incorporate extensive use of graphs, maps,
and flowcharts to illustrate changes in logistics operating practices, flows, and distribution
network.
Implementation
The 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.
Did u know? While actual implementation may require a number of events, there are four
broad tasks: defining the implementation plan, scheduling implementation, defining
acceptance criteria, and implementing the plan.
Defining the Implementation Plan
The first task defines the implementation plan in terms of the individual events, their sequence,
and dependencies. While the initial plan may be macro level, it must ultimately be refined to
provide individual assignment responsibility and accountability. Plan dependencies identify
the interrelationships between events and, thus, define the completion sequence.
Scheduling Implementation
The second task schedules the implementation and time phases the assignments identified
previously. The schedule must allow adequate time for acquiring facilities and equipment,
negotiating agreements, developing procedure, and training. Implementation scheduling should
employ one of the software scheduling aids.
Defining Acceptance Criteria
The third task defines the acceptance criteria for evaluating the success of the plan. Acceptance
criteria should focus on service improvements, cost reduction, improved asset utilization, and
enhanced quality. If the primary focus is service, acceptance criteria must identify detailed
components such as improved product availability or reduced performance cycle time. If the
primary focus is cost, the acceptance criteria must define the expected positive and negative
changes in all affected cost categories. It is important that the acceptance criteria take a broad
perspective so that motivation focuses on total logistics system performance rather than
performance of an individual function. It is also important that the acceptance criteria incorporate
broad organizational input.
Implementing the Plan
The final task is actual implementation of the plan or design. Implementation must include
adequate controls to ensure that performance occurs on schedule and that acceptance criteria are
carefully monitored.
It is critical that a formalized process be used to guide logistics system design and refinement
projects to ensure that the objectives are documented and understood and the analyses are
completed appropriately. While the preceding methodology supports logistics planning and
design analysis, it can also be adapted to guide logistics information system design. For a
system design application, the situation analysis focuses on the characteristics and capabilities
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