Supply Chain Management:

From Vision to Implementation

Chapter 7: Supply Chain Mapping

Presented by Prof Adel Al-Alawi

27 April 2023
After Eid

https://vimeo.com/129083584
Chapter 7: Learning Objectives
1. Discuss the concept of SC design and its
importance.
2. Explain process mapping and describe
mapping’s role in SC design.
3. Map out a supply chain. Describe key
insights a manager can gain from a SC map.

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Video Time
◼ https://vimeo.com/129083584

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Supply Chain Management
SCM is the design of seamless value added processes
across organization boundaries to meet the real needs of
the end customer. SC design and improvement is
assisted by:
1. Process Mapping - creates visibility of current and
improved processes.
2. Value Stream Mapping - depicts flow of information
and materials (more information, i.e. who does what?)
3. SC Mapping - displays the dynamics that govern how a
supply chain works (analysis and reengineering)

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Failure to be Proactive in Design
Failure to proactively design a SC results in:
◼ Poor coordination of effort
◼ Incompatible information systems
◼ Long cycle times
◼ Communication problems
◼ Customer service issues
◼ Excessive waste and environmental degradation
◼ Relatively high inventories for the level of customer
service achieved
◼ Lower the optimal profit

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Process Mapping
◼ A process is defined as a set activities that
transforms or changes input into new output.
◼ A process map is a graphic/visual
representation of the system and contains a
sequence of steps that are performed to
produce some desired output.
◼ The primary goal behind process mapping is
to make complex systems visible.

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Process Mapping

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Developing a Process Map
◼ Determine the purpose of the process map
◼ Establish level of detail
◼ Establish system boundaries
◼ Determine who has the required information or experience.
◼ Analyze the process through observation and interviews,
document each step.
◼ Draw the map
◼ Have the people who are involved in the mapping process as
well as others (including those who actually perform the
process) review the map for clarity and completeness

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Process Map – Bake a Cake

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Process Analysis
Process analysis is used to identify non-value
added or redundant activities.
1. Begin process analysis by examining the time,
cost, resources, and people involved in each
step.
◼ Identify the steps that consume the most time or resources.
◼ Identify processes that take too long or vary greatly in time.
◼ Identify points of delay.
◼ Estimate the value added by each step and judge the value
against the cost.
◼ Consider the reasons for problems and how to improve
specific activities or processes.
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Process Analysis
2. Re-examine each decision symbol.
◼ Determine if the decision is necessary and adds value?
◼ Consider combining decisions or moving them to another point in the
process to create more value.
3. Check each rework loop. A rework loop involves iterative
processes, like repeatedly checking a cake until it is done
baking. Here, consider how rework can be reduced,
eliminated, or combined with another step.
4. Finally, look at each process step again. Sometimes a process
is done out of habit without verifying its value.
◼ Verify that the step adds more value than its cost.
◼ Judge if the step is redundant.
◼ Consider how steps could be recombined for greater efficiency.

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Initial Process Map

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Improved Process Map

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Value Stream Process Mapping
◼ Specific application of process mapping based on
lean Manufacturing principles.
◼ System boundaries typically defined at the macro
level.
◼ Generally contains more information than typical
process maps:
◼ Process time/cost/people involved
◼ Process performance characteristics
◼ Information flows
◼ Physical flows

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SC Mapping/Design Generic Steps
◼ SC mapping/design generic steps:
◼ Analyze the basis for competition: what do you need to
do well in order to succeed? How can you measure and
monitor your progress in these key areas?
◼ Configure the supply chain as it is and as you would like
it to be. Include geographic locations and flows.
◼ Align performance levels, practices and systems across
information and work flows.
◼ Implement SC processes and systems, including people,
processes, technology and organization

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SC Mapping/Design Detailed Steps
Supply chain design is a proactive approach to serving the
customer rather than chasing after customer needs.
1. Identify the chain’s end customer
2. Determine the Supply Chain’s value proposition
◼ Identify the key players at each level and the value they add
◼ Determine where your company is and value it adds
3. Analyze who possesses the power in the supply chain:
manufacturer, distributor, retailer, or other party
◼ Determine who has the best linkages with the end customer
◼ Establish the key technologies that drive SC success
◼ Assess the core competencies that drive SC success
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4. Isolate the major processes required to support the
supply chain’s value proposition
◼ Determine where there is a significant amount of time
and variability
5. Establish a new supply chain design
◼ Ascertain the as-is value-added roles of the various
supply chain members
◼ Analyze how much control over supply chain activity
we want or need
◼ Clarify the should-be value-added roles of the various
supply chain members

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Design for Supply Chain Initiatives

◼ Designers work with other key players internally or

externally to insure critical issues are considered
and integrated into design of products and
processes.
◼ Design for manufacturability
◼ Design for distribution
◼ Design for disassembly
◼ Design for environment
◼ Design for supply
◼ Design for the customer

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SC Pipeline Mapping- Manuf. Example

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 SC Pipeline Mapping Steps
◼ Draw the SC pipeline map from raw material to end user as a
series of horizontal and vertical lines.
◼ Begin with a high level map to identify major linkages and bottleneck areas.
▪ Determine who performs each process in the chain.
▪ Determine how long (Time) the process takes; how much inventory is present; how
much inventory is in transit and transit times for materials.
▪ Inventory would include raw materials, components, and output
▪ Begin by drawing a horizontal line from the commodity market to the end user.
▪ The length of the horizontal line represents the total process and relevant
transportation time (Total pipeline length=76 days). (15+10+7+5+18+19+2=76)
▪ Starting with the earliest process, write the name of the processes in order above. After
the name of the process, indicate the time the process takes.
▪ Draw vertical lines at the beginning (materials) and end (goods) of each process to
indicate the average amount of inventory that each party has on hand in terms of both
input and output. These represent the average inventory that any party in the supply
chain is holding. If the product is not physically transformed by the process, only one
inventory level is shown. Adding total inventory in the pipeline identifies the amount of
“non-value added” supply days or buffer stock (Total supply days=115 days).
(20+10+5+15+5+10+5+20+15+10=115)
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◼ Analyze the supply chain for opportunities.
◼ Consider means to reduce the pipeline length.
◼ Map relevant SC processes. Look for unnecessary processes and delays
to identify potential improvement opportunities.
◼ Consider means to reduce the level of buffer inventory. This represents
assets that SC members have tied up increasing cost and risk while
lowering the agility of the chain. Analyze where inventories are too high
by focusing on areas with the highest levels and longest delays.
◼ Design a new supply chain
◼ Implement, manage, and monitor changes by working with the team,
suppliers, customers and other affected parties to. Don’t limit yourself to the
first tier suppliers or customers, as the supplier’s suppliers and customer’s
customers may also provide excellent ideas or opportunities for SC
improvement.

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https://vimeo.com/402945199

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 A Return to the Opening Story
Based on what you have now read and discussed:
1. Does “drawing a picture” of Olympus’ core process seem like
a good way to seem like a good way to identify improvement
opportunities? Why or why not?
2. Does extending the idea of process mapping to the supply
chain make sense? In what ways would you expect SC
mapping to differ from process mapping?
3. Where would you begin in drawing the SC map? Who should
be involved?
4. SC mapping answers the questions, “How do we fit?” and
“How should we fit?” Why begin with a map of your current
process before drawing a map of how you would like things to
be?

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