First slide:

- A substantial number of firms in the supply chain are involved in manufacturing prod- ucts
- Whereas almost all business firms are engaged in procurement and market distri- bution
operations, manufacturers add value by converting raw materials into consumer or industrial
products.
- They create value by producing and marketing product/service bundles to either end customers
or intermediate members of the supply chain

Example:

Retailers purchase a wide range of product from varied manufacturers to create an appealing assortment
for consumers.

Well known Manufaturers local and international:

1.) Car production – Toyota

2.) Dairy – Nestle
3.) Alcohol – Empereador
4.) Fastfood like Jollibee, chowking = Zenith
5.) Wafer in semiconductor industry – TSMC

Slide 2: Manufacturing Perspective

The range of products a firm manufactures evolves from its technological capability and marketing
strategy

- This two determines most of companie’s competitiveness to market

Manufacturing Firm should have 2 qualities:

1.) Innovative Risk – Companies should always promote innovative risk.

Sample : Nokia phone. What will happen if companies like Apple is hndi nag innovate ? We will stuck
with yesterday technology

2.) Market Opportunity – Market opportunity. There’s a lot of market opportunity now kasi
mdaming bagong tuklas na mga technology
accdg to Charles Darwin It is not the strongest of the species that survive but those that are
adaptable to change

While the products pro- duced are clearly different, the real differentiator between firms is found in
competen- cies related to knowledge, technology, process, and strategy
Slide 3: In terms of supply chain participation, the combination of products, services, capabilities, and
competen- cies represents a firm's value proposition and provides dimension to its supply chain
opportunities. A firm's manufacturing competency is based on brand power, volume, variety,
constraints, and leadtime requirements.

Slide 4:

How company can create brand awareness??

1.) Social Media

a. Linkedin
b. Facebook
c. Twitter
d. Instagram
2.) CSR
a. Companies are also focusing on giving back to communities
3.) Exposure to Tradefair
4.) Exquisite Website
a. Companies are now level up their game sa website.

Slide 5: Volume

Manufacturing processes can be classified in terms of the relationship of cost per unit to volume of
output _ Economy of Scale

Sample:

XYZ company costs $ 1,000,000 to produce 1 Million widget.

Or $1.00/widget

On 1M cost includes $500,000 cost for Fixed cost (Admin, marketing , $5.00/widget)

$500,000 for VC ($5.00/widget)

After a year, gusto ni company mag produce ng 2M widgets

Yung VC mo maiiba

(2M widgets x VC(0.5) = $1,000,000.00)

While Fix cost will remain the same

= 500,000 + 1,000

= $1,500,000 Cost / 2M

2M= 0.75/Widget
 - Economy of scale is extremely important in manufacturing situations involving high fixed cost
machinery to convert raw material into finished products

Slide 5:

Scope means that a manufacturing process can use varied combinations of ma- terials, equipment, and
labor to produce a variety of different products.

Sample:

An easy way to illustrate economy of scope is with rail transportation. A single train can carry both
passengers and freight more cheaply than having separate trains, one for passengers and another for
freight. In this case, joint production reduces total input costs

Slide 6:

- All manufacturing processes reflect a balance between economy of scale and economy of scope.
- Volume and variety drive logistical support requirements. Constraints inter- act with volume and
variety to create manufacturing plans

Capacity, as the name implies, is a measure of how much product can be pro- duced per unit of time

- It is a demonstrated capacity of quality production.

- Some companies—especially those that don't have supply chain optimization as a core business
strategy—ignore the measurement of capacity, assuming that their facilities have enough
capacity. But, oftentimes, they don't.

Theoretical Capacity – mostly inaanalyze ng mga engrs ang limits or maintenance level ng isang tool.

Halimbawa, ilang output lang ang marerelease ng tool na to before mag down time. Or Ilang hours
before need ng maintenance.

While Rated- are for long term analysis

Equipment Capacity – Sa production area, narinig nyo na ba ung term na bottlenecks?

Most of the time, its contributor is Equipment capacity. IE or engineers needed to evaluate the
equipment first:

1.) Can the automatic equipment can support the planned cycle time?
2.) How close are we to our current machine capacity?
Basic point should be: kaylangan mag function ang equipment even may gngwang iba ang operator. And
once the operator comes back for next process, dapat hindi na sya maghhintay sa matapos ang process
ni machine.

Set-up and changeover – these are two different constraints.

Set up amount of time you prepare the production for manufacturing process.

Changeover, the amount of time you have to modify the production line for new variety of product.

Both these are non added value to manufacturing and should be minimized.

Leadtime – The actual time the customer requested the product up to the delivery

Operational Time – The am

Strategic Alternatives

1.) Make to Stock- products are created before the order

- This goes with companies na may written contract na to customers.

Eg. Previous company

API, nagsstock na kme ng mga gaskets na ganito size kasi Repeat order lang sya this particular month. In
that way, hindi natetengga din ang production ng client and kapag oras na ng replenishment sa planta
ready to deliver na sya.

Companies tend to stock goods if its fast moving,

May kagayang product sa ibang customers.

But if customize, mahirap magstcok kasi may tendency hindi sya mabenta. So make to stock is very risky
to manufacturers.

2.) Assemble to Order

The key components in the assembly or finishing process are planned and stocked in
anticipation of a customer order. It is customized most of the time.

Kung walang PO, walang assemble ng items or products.

-Delivery will take a more time compared to Make to stock

 3.) Make to Order

Ggawin lang ang product depende sa customer requirements

Company naming, design powerhouse kame so ang product naming hnd pare pareho depende sya sa
requirements ni customer.

Sample Tool CBC>

Customer requirements is : ganyan ganyan

Tapos gusto nya leadtime ganito kasi competition.