1. Logistics Management
Group 3: Aaron Michelson, Nabil Akanli, Tarek Alsulami, Pegah Fakhar, Taoran Li, James Nakamura
Aaron Michelson

2. Logistics Defined Definition:
Management's influence on the transfer of resources between source and the person or entity that needs the resource.
Aaron Michelson

3. MSE 401, Group 3- Data Collection
Transformation:
Production Logistics
Input:
Procurement
Output:
Warehousing
Handling Systems
Characteristics:
Emergency
Sustainability
Aaron Michelson

4. Procurement
The purchase of goods or services of the correct quality, at the appropriate quantity, at the required time, and from the best supplier.
Pegah Fakhar

5. The Procurement Process
Need Recognition by Management
Supplier research and selection of best alternative
Price Negotiation
Inventory Control
Pegah Fakhar

6. Management Need Recognition and Purchase Planning
Recognition that there is a need for a particular product or service
Maybe a new item or a product that needs to be reordered.
Pegah Fakhar

7. Supplier Research and Selection
A process used to evaluate the performance of current suppliers for the purposes of reducing costs, risk and for continuous improvement.
The first step is research
Evaluate the list of potential suppliers, and select the one that best satisfies the needs of the company.
Pegah Fakhar

8. Price Negotiation
Helps companies reduce their expenses while increasing their purchasing power.
Negotiate for better rates while maintaining or increasing quality and service.
Have clear and precise objectives
Pegah Fakhar

9. Inventory Control Uninterrupted availability of supplies
Addresses when to order and the quantity to order
Based on usage, delivery time, quantity, packaging, available storage space
Ensures cost effectiveness
Pegah Fakhar

10. Inventory Control Challenges
Not having enough product in stock to meet customer demand
Excessive inventory in stock and unable to move it quickly enough
Temporary quality problems
Pegah Fakhar

11. Production Logistics Speed(implementation time)
Scheduling and Project Timeline
the process capability and reliability
Quality
Flexibility
Costs
Tariq Alsulami

12. Production Logistics
 It connects procurement to distribution logistics.
Production logistics activities are related to organizational concepts, layout planning, production planning, and control.
THE VALUE OF PRODUCTION LOGISTICS:
Production logistics increase the efficiency in new and existing production systems, enhancing the ability to produce the right products in time, minimize waste and safeguard quality assurance.
Tariq Alsulami

13. Value Chain
A value chain is a chain of activities that a firm operating in a specific industry performs in order to deliver something valuable (product or service
The value chain categorizes the generic value-adding activities of an organization. The activities considered under this product/service enhancement process can be broadly categorized under two major activity sets:
1-Physical/Traditional Value Change
2-Virtual Value Chain
Tariq Alsulami

14. Flow control in production logistic networks
Controlling network flow aims in most cases at maximizing the output, minimizing waiting or idle times at bottleneck systems, or maintaining some kind of system stability.
Tariq Alsulami

15. WAREHOUSING LOGISTICS
Warehouse Tasks
Keep the products safe
Easy access when need specific product
Shipping to the store
Warehouse Resources
Labor
Space
Equipment
Nabil Akanli

16. Warehouse Operations Goal is to Improve Warehouse Logistics
Nabil Akanli

17. Warehouse Operations Order Picking Utilizing Cross-docking
Increase Productivity
Utilizing Spaces
Increasing Services
Nabil Akanli

18. Functions must be done on daily bases to assure product quality and costumer satisfaction
Nabil Akanli

19. Receiving
Inspection
Repackaging
Put away
Sorting
Nabil Akanli

20. Location Near airport Close to seaport Next to the highway
Nabil Akanli

21. Processing and Quality Assurance (QA)
(Quality Assurance): This referring to the auditing of the shipping companies before the product is moved such that the processes are up to their specification.
(Processing): Products are processed to ensure safe arrival and safe delivery to the customer or vendor.
James Nakamura

22. Shipping & Handling Choosing is about reducing overhead cost.
Acquire quotes from multiple companies to choose best option.
Also can put up a bid and settle on a contract for a better deal as well.
James Nakamura

23. (CASE STUDY) FedEx Secure Shipping
Government used FedEd Custom Critical Service to ship “sensitive” materials across the US instead of the US Armed Forces
Service chosen over the use of Armed Forces due to cost effectiveness.
James Nakamura

24. Digital Storm Customized Systems:
Packaging
Depends on location, product, and customer.
Must be appropriate to the application.
(CASE STUDY) Digital Storm Computers Packaging:
Digital Storm Customized Systems:
Sell upper tier work stations and gaming computers.
Advanced Packaging used to protect the thousand dollar plus investment.
Use FedEx or UPS based on shipping cost.
James Nakamura

25. EMERGENCY LOGISTICS Definition
Emergency logistics is a term used by the logistics, supply chain and manufacturing industries to denote specific time critical modes of transport used to move goods or object rapidly in the event of an emergency
Taoran Li

26. CAUSES 1. Disasters (natural). 2. Decision making error.
3. Consumer return
4. Internationl environment
5. Laws
Taoran Li

27. Characteristics of Emergency Logistics
Sudden and unpredictability
Randomness
Timing constraint
Uncoventionality
Taoran Li

28. Tool AHP (Analytical Hierarchy Process) method
is a structured technique for organizing and analyzing complex decisions. Based on mathematics and psychology
Taoran Li

29. AHP Method
Taoran Li

30. Emergency Logistics Plan&Management
Draft a logistics plan covering the supply chain and other relevant aspects based on the operation
Time (rapidity)- As the commodities are in most instances urgently needed save time.
Dynamic (flexibility)- Because circumstances change and there frequently in an urgent need to adapt to a changed situation
Security- To reduce hazards for staff and so as to reduce theft and looting.
Taoran Li

31. Example 2003 SARS(Severe Acute Respiratory Syndromes)
The hospitals control of SARS materials transportation, storage, packaging and management cost wasted 3 billion dollars
Taoran Li

32. Sustainable Logistics
Definition:
"An approach to progress which meets the needs of the present without compromising the ability of future generations to meet their own needs"
-Bruntland Report to UN World
Commision on Environmental Development
Socially Responsible Supply Chains
Sustainable Transport
Planning Tools
Aaron Michelson

33. Sustainable Supply Chains
NOT only Green, But Sustainable!
Key To Success
1. Strategic Planning
-Explore Options
2. Controlling
-Policies and Quality
(World)
Ecologic
Economic
(Profit)
(People)
Social
Aaron Michelson

34. Setting Goals to Accomplish Sustainable Transport
1. Establish Benchmarks
Collect Data, Planning, Forecasting
Alternative Solutions
2. Establish Policies
Controlling- Review
Motivation
3. Plan to deal with Potential Challenges
Planning, Forecasting
Challenges to Integration
Aaron Michelson

35. Management Organizing Systems
Set Policies and Standards
Requires Proactive management
Case Example:
"Life Magazine Report in 1996: Child Labor in Pakistan"
CEO took Defensive Stance
Factors
Code Of Conduct- Insufficient
Large Corporation Size- Activists Setting Bar
Aaron Michelson

36. Sustainable Transport
At What Stage Does The Manager Consider Sustainability?
Analyze
Collect Data
Assess Alternatives
Evaluate
Integrate
Review
Aaron Michelson

37. Case Example: Analysis
Social-
Passenger activity rise 51%
Freight up 82%
Ecological Impact-
CO2 emissions 31% Higher than levels
Cost-
20 Billion Euro in Maintenance,
60 Euro Billion in External Accident costs.
Congestion cost: 50% rise to 200 billion Euro Annually
Aaron Michelson

38. Planning Tools Objectives: Eco-Efficiency: Reduce Resource Inputs
Design for Environment:
Considers Environment and Health impact
Aaron Michelson

39. Eco Efficiency Value Stream Mapping
Analysis of utilization of resource in existing or proposed process
Process
Milling
Welding
Part Washing
Surface Coating
Total Water Savings
Water Used
10kgal
15kgal
45kgal
5kgal
75kgal
Actual Needed
30kgal
Wasted
35kgal
Aaron Michelson

40. Design For Environment
Life Cycle Assessment
Used to Assess the Social or Environmental effects of a product holistically
Extracting & Processing Raw Materials
Manufacturing and Packaging
Transportation
Useful Life
Recycling and End of Life
Aaron Michelson

41. Conclusions- Logistics
Managerial Logistics Tasks
Procurement - Creating reliable information to Evaluate and Select Suppliers
Production- Optimization of Resources and Deliverance of Valuables
Shipping and handling- Minimizing Cost while Delivering Safe Quality Products
Warehousing- Utilization and Allocation of Space to Facilitate Flow of Products
Emergency - Managing Risk to Protect People and Profit
Sustainability - Focus on World, People, and Profit
Sources for Images and Material Provided in Final Paper
Aaron Michelson