Step 1 - 0 MANUAL FOR INSTRUCTORS The Fresh Connection.docx

MANUAL FOR INSTRUCTORS

THE FRESH CONNECTIO CONNECTION N

Manual for for instructors instructors

Involvation Interactive B.V. Prinsenlaan 3 3732 GN De Bilt Te Neterlan!s Tel "3# 3$ 22# 77 %% Fa& "3# 3$ 22# 7' %% (((.te)resconnection.*i+ in)o,te)resconnection.*i+

Content of this Manual Summary Introduction: this manual

3

 T!" FR"S! CONN"CTION

#

Content of The Fresh Connection

#

$innin% The Fresh Connection

&

Le'e Le'els ls and and e(t e(ten ensi sion ons s of of The The Fre Fresh sh Conn Connec ecti tion on

)

Learnin% dynamics and the learnin% cycle

*

Ind Indi'id i'idua uall Lea Learn rnin in% % +at +aths hs:: ",l ",lea earn rnin in% % mo module dules s

-

-

T O . I C S

/ I C "

. R " S I 0 " N T

. U R C ! A S I N 1

.urchasin%2s sco+e of decision main%

3

Rele'ant theoretical frame4ors

#

Rele'ant literature and references

5

3

T O . I C S

/ I C "

. R " S I 0 " N T

S U . . L 6

Su++ly Chain2s sco+e of decision main%

&

Rele'ant theoretical frame4ors

)

Rele'ant literature and references

7

#

T O . I C S

/ I C "

. R " S I 0 " N T

S A L " S

Sales2 sco+e of decision main%

8

Rele'ant theoretical frame4ors

-*

Rele'ant literature and references

-

5

T O . I C S

/ I C "

. R " S I 0 " N T

C ! A I N

O . " R A T I O N S

O+erations2 sco+e of decision main%

--

Rele'ant theory and frame4ors

-3

Rele'ant literature and references

-3

Summary Te Fres Connection is a (e*- *ase! Vale Cain /ana0e1ent learnin0 environ1ent *ilt aron! a cross )nctional *siness si1lation. Particiants are 1ain0 strate0ic an! tactical !ecisions in te vale cain o) Te Fres Connection4 a virtal ro!cer o) )rit 5ices.  6s tis virtal co1an is s8erin0 severe losses4 a ne( 1ana0e1ent tea1 as *een aointe!. For articiants tae  a role in tis ne( 1ana0e1ent tea1 as eiter Vice Presi!ent Prcasin04 Vice Presi!ent Sales4 Vice Presi!ent Oerations or Vice Presi!ent Sl Cain. Te tea1 as te tas to realise te i0est ossi*le Retrn on Invest1ent 9ROI: )or te Fres Connection. Te Fres Connection taes te )ll scoe o) te vale cain into accont an! covers 1a5or vale cain toics an! tra!e-o8s. Per role te )ollo(in0 toics are incl!e! in te scoe o) !ecision 1ain0;  Vice Presi!ent Prcasin0; Supplier Management and Total Cost of Ownership  Vice Presi!ent Sales; Demand and Portfolio Management  Vice Presi!ent Oerations; Capacity and Production Management  Vice Presi!ent Sl Cain; Inventory Management and Planning -

-

Particiant tae !ecisions in teir )nctional area onl4 so a!erence to te cosen vale cain strate04 cooeration an! ali0nin0 !ecisions are e )actors to sccess)ll la Te Fres Connection. Besi!es te internal colla*oration4 e&ternal colla*oration (it sliers an! csto1ers is an i1ortant ele1ent o) Te Fres Connection. Te learnin0 iloso o) Te Fres Connection is learnin0 * e&erience as articiants are i1le1entin0 teir vale cain strate0 in te si1late! environ1ent o) Te Fres Connection. /ain o*servations an! e&eriences are; •

The Fresh Connection is an active and inspiring way of teaching and learning;

•

•

•

Participants eperience what it is li!e to deal with con"icting interests and trade o#s that eist within the value chain area in a comple situation with many varia$les; The eperience creates a steep learning curve% Participants learn from decisions made as the simulation shows the impact of decisions ta!en% The Fresh Connection is very suita$le for team $uilding and for getting insight into group processes%

Introduction

i Introduction: this manual This introduction explains the goal, the usage and the content of this manual. Tis 1anal as *een !eveloe! to 0ive insi0t into te vale cain toics an! learnin0 !na1ics o) Te Fres Connection. Tis !oc1ent (ill *e !istri*te! to instrctors (o are active in te area o) Hi0er an! 6ca!e1ic E!cation inten!in0 to se Te Fres Connection in teir crricl1. In tis 1anal relevant teoretical )ra1e(ors an! literatre s00estions are resente!. In co1*ination (it te e&ercises an! 1aterials o) te Stan!ar! Scrit E!cation (ic as *een !eveloe! )or Te Fres Connection4 instrctors can inte0rate Te Fres Connection in an e&istin0 corse or !esi0n a ne( corse *ase! on Te Fres Connection. Structure of this manual:

Cater # resents te content o) te Fres Connection. 6 secial e1asis is 0iven to te !i8erent levels an! e&tensions o) Te Fres Connection In tis cater also te learnin0 ccle (ic as *een !esi0ne! )or sin0 Te Fres Connection (ill *e resente! in co1*ination (it te availa*le learnin0 1aterials an! e&ercises (ic can *e se! to enance te n!erstan!in0 an! learnin0 e&erience. In caters 2 to <4 te relevant vale cain toics an! 1ain teoretical )ra1e(ors (ill *e resente! )or eac )nctional area.

Cha+ter 

 The Fresh Connection This chapter deals with the content and structure of The  Fresh Connection and the dierent functional roles in The Fresh Connection. Also the dierent levels and extensions of The Fresh Connection will be discussed. This chapter concludes with the learning cycle which has been designed for The Fresh Connection and the learning dynamics.

Content of The Fresh Connection Te Fres Connection is an (e*- *ase! Vale Cain /ana0e1ent e&erience *ilt aron! a cross- )nctional *siness si1lation. Tea1s o) )or articiants reresentin0 te )nctional roles o) Vice Presi!ent Prcasin04 Vice Presi!ent Sales4 Vice Presi!ent Oerations an! Vice Presi!ent Sl Cain 0o tro0 a n1*er o) ron!s o) Te Fres Connection. Te 0oal o) te tea1 is to acieve te i0est Retrn on Invest1ent * 1ain0 tactical an! strate0ic can0es in te vale cain o) Te Fres Connection4 a  virtal ro!cer o) )rit 5ices. Te Fres Connection taes te )ll scoe o) te vale cain into accont an! covers 1a5or vale cain toics an! tra!e-o8s. Per )nctional role4 te )ollo(in0 toics are incl!e! in te scoe o) !ecision 1ain0; -

-

 VP  VP  VP  VP

Prcasin0; Supplier Management and Total Cost of Ownership Sales; Demand and Portfolio Management Oerations; Capacity and Production Management Sl Cain; Inventory Management and Planning

Particiant tae !ecisions in teir )nctional area onl4 so a!erence to te cosen  vale cain strate04 cooeration an! ali0nin0 !ecisions are e )actors to sccess)ll la Te Fres Connection. Te =0re *elo( so(s te !ecision 1ain0 scoe er )nction;

In caters 2 to < te scoe o) !ecision 1ain0 o) eac in!ivi!al area (ill *e !iscsse! in )rter !etail.

The main learning of The Fresh Connection for participants are&

•

•

•

•

•

 'alue and Supply Chain Management is not only the responsi$ility of  one functional area or manager( it is teamwor!; Coordinated decision ma!ing is critical; functional silos need to $e $ro!en down )  * strategy is necessary to have a common direction;  * structured process +S,OP- is necessary to translate strategy into action The .uality of the value chain has a $ig impact on the company/s pro0ta$ility;

•

The right management information is very important;

•

Internal and eternal colla$oration is !ey to success%

$innin% The Fresh Connection

T

e (innin0 tea1 is te tea1 tat creates te 1ost ro=ta*le vale cain. Pro=ta*ilit is 1easre! * 1eans o) te Retrn on Invest1ent 9ROI:. Te =0re *elo( so(s te )actors se! in calclatin0 te ROI;

> Csto1er satis)action is calclate! )ro1 ?e&i*ilit4 relia*ilit4 1o@As4 lea!ti1es4 o8ere! sel) li)e4

Le'els and e(tensions of The Fresh Connection

Te Fres Connection is a vale cain learnin0 environ1ent (ic can *e con=0re! to seci=c learnin0 nee!s4 !een!in0 on te learnin0 o*5ectives4 te level o) te a!ience an! te availa*le ti1e. Te 1ain learnin0s o) Te Fres Connection are te nee! to *rea !o(n )nctional silos an! to coerentl translate te cosen Vale Cain Strate0 into a set o) tactical !ecisions4 i.e. Strate0 into 6ction. Deen!in0 on te learnin0 o*5ectives4 !i8erent te1es can *e a!!e! on to o) tese 1ain ele1ents as reresente! *elo(;

In te =0res on te ne&t a0e4 te !ecisions er level an! er te1e are !islae!. It is ossi*le to increase te level o) co1le&it er ron! * a!!in0 ne( !ecisions an! e&tensions. Bt it is also ossi*le to la t(o or 1ore levels on te sa1e level *e)ore a!!in0 ne( !ecisions an! te1es.

1ased on our eperience with many In Company trainings and the use of  The Fresh Connection $y many universities( $usiness schools and universities of applied sciences worldwide2( we would li!e to advise to follow the following principles in designing a course 3 wor!shop 3 training& •

•

•

1uildup compleity gradually to ena$le the participants to manage compleity $efore increasing compleity $y adding new decisions; The minimum num$er of rounds that is needed to get the participants in a good learning curve and to create a good understanding of the interrelationship $etween decisions is three rounds; 1efore adding themes( we advise that participants 0rst play three rounds in the 0rst three levels of The Fresh Connection to eperience the need to $rea!down functional silos and to translate their strategy into action%

For re)erences; (((.te)resconnection.*i+

Learnin% dynamics and the learnin% cycle Te Fres Connection o8ers a vale cain learnin0 e&erience *ase! on te iloso o) learnin0 * e&eriencin0 as !eicte! in te =0re *elo(. B *lisin0 te reslts er ron!4 articiatin0 tea1s can co1are teir reslts an! PIAs to co1etin0 tea1s (ic enances te co1etitive ele1ent o) Te Fres Connection.

To enance te learnin0 e&erience it is i1ortant tat te learnin0 ccle is co1lete! an! articiants also re?ect on teir !ecisions an! !ecision 1ain0 rocess4 ne&t to te instrctor o8erin0 sortin0 literatre an! lectres to t te !ecisions an! te1es (itin te relevant teoretical )ra1e(or. In tis (a te articiants can lin teoretical )ra1e(ors to ractice an! al teir insi0t in te vale cain learnin0 environ1ent o) Te Fres Connection accor!in0 to te 1o!el resente! *elo(;

To )rter enance te learnin0 e8ect an! create a !eeer n!erstan!in0 o)  Vale Cain /ana0e1ent an! te vale cain concets in Te Fres Connection4 (e ave !esi0ne! a Stan!ar! Scrit E!cation..

In tis Stan!ar! Scrit E!cation (e ave create! a stan!ar!ise! scrit )or te se o) Te Fres Connection in a corse. In*et(een te ron!s (e ave !esi0ne! a n1*er o) e&ercises an! learnin0 1aterials to enance te n!erstan!in0 an! learnin0 e&erience )or te articiants. Tese e&ercises an! learnin0 1aterials ave a 1o!lar strctre4 (ic 1eans tat te or!er o) toics an! e&ercises can *e can0e!4 tat certain ite1s can *e le)t ot an! tat 1aterials can *e a!!e! at (ill. Te *il!in0 *locs o) te Stan!ar! Scrit E!cation can tere)ore *e se! as a *asis )or !esi0nin0 a corse. e also a!!e! an esti1ation o) te ti1e sen! )or st!ents er e&ercise 9tis ti1e sen! e&cl!es rea!in0 relevant literatre an! )rter sortin0 lectres on Vale an! Sl Cain /ana0e1ent:. Belo( te set o) te Stan!ar! Scrit E!cation is 0iven4 incl!in0 te toics an! e&ercises in*et(een. Te n!erlin0 =les an! 1aterials (ill *e sen! over searatel er or re@est.

Indi'idual learnin% +aths: the ",learnin% modules  6s !escri*e! *e)ore Te Fres Connection is lae! in tea1s o) )or articiants. To also allo( in!ivi!al learnin0 ats an!  or allo( articiants to alrea! ractice te )n!a1entals o) Vale an! Sl Cain /ana0e1ent in rearation o) te tea1 e&erience4 (e also !eveloe! E-learnin0 1o!les aron! Te Fres Connection. Eac o) te E-learnin0 1o!les is line! to a )nctional role in Te Fres Connection. Tere)ore tere are )or E-learnin0 1o!les o) Te Fres Connection; -

-

Supplier Management 9Vice Presi!ent Prcasin0: Demand Management 9Vice Presi!ent Sales: Capacity Management 9Vice Presi!ent Oerations: Inventory Management 9Vice Presi!ent Sl Cain:

In te E-learnin0 1o!les o) Te Fres Connection4 te relevant concets an! tools )or eac )nctional area are e&laine! )ollo(e! * a n1*er o) e&ercises an! @estions relate! to te concets an! tools. Ne&t to tat4 also e&ercises in te vale cain learnin0 environ1ent o) Te Fres Connection ave *een a!!e!. So articiants are taen tro0 te learnin0 environ1ent o) Te Fres Connection * 1eans o) @estions an! in)or1ation te ave to loo . Tese e&ercises are )ollo(e! * an inte0ration assi0n1ent (ere te articiants ave to !e1onstrate te ave 0aine! te nee!e! insi0ts an! no(le!0e. 6)ter assin0 tis inte0ration assi0n1ent4 te articiant las tree ron!s o) Te Fres Connection in te seci=c )nctional role o) te 1o!le taen as so( in te =0re *elo(;

Cha+ter

To+ics /ice .resident .urchasin%  In this chapter a number of topics will be presented that are in the ice !resident !urchasing"s scope of decision ma#ing. The ice !resident !urchasing needs to ma#e decisions in relation to these topics. These topics are supported by the main relevant theoretical framewor#s and a number of literature suggestions and references.

/ice .resident .urchasin%2s sco+e of decision main% In te =0re *elo( te area in (ic te Vice Presi!ent Prcasin0 nee!s to 1ae !ecisions is resente!. Te Vice Presi!ent Prcasin0 is resonsi*le )or tain0 !ecisions in te area in!icate! *elo( in *le;

Relevant teor an! teoretical )ra1e(ors (itin Te Fres Connection in relation to te )nction Vice Presi!ent Prcasin0 are te )ollo(in0; •

Slier Relationsi /ana0e1ent4 Slier Selection an! Slier Colla*oration

•

Total Cost o) O(nersi

•

Ne0otiatin0 Slier Relia*ilit4 Tra!e nits an! Pa1ent ter1s

•

Sin0le verss /ltile Sorcin0

•

BerAs vie( verss sliersAs vie(

Rele'ant theoretical frame4ors for the /. .urchasin% •

•

Fra1e(or 6. van Goor4 /. Ploos van 61stel en . Ploos van 61stel; Vale Densit an! Paca0in0 Densit

Slier Relationsi /ana0e1ent * ral5ic

•

BerAs vie( verss sliersA vie(

Rele'ant literature for the /. .urchasin% •

•

•

ral5ic4 P.4 !urchasing must become $upply %anagement, Harvar! Bsiness Revie(4 Sete1*er- Octo*er #'3 ier4 .. an! Coi4 T.. 4  &uilding 'eep $upplier (elationships, Harvar! Bsiness Revie(4 Dece1*er 2$$J Ectelt4 F.E.6. van4 nstra4 F.4 eele4 6.. van4 Dsters4 G4  %anaging supplier involvement in new product development, a multiple)case study,  * ornal o) Pro!ct Innovation /ana0e1ent 2< 92$$':; #'$-2$#

•

•

•

Bail4 P. 4 Far1er4 D. 4 esso4 D. 4 ones4 D. 4  !urchasing !rinciples and  %anagement, Prentice Hall4 nint e!ition4 2$$< Carr4 . an! Ittner4 C. 4  %easuring the Cost of +wnership, Cost /ana0e1ent4 #2 De0reave4 K. an! Roo!oo)t4 F. 4 ectively selecting suppliers using Total Cost of +wnership, ornal o) Sl Cain /ana0e1ent; a 0lo*al revie( o)  rcasin0 an! sl4 #

Cha+ter

3 To+ics /ice .resident Su++ly Chain  In this chapter a number of topics will be presented that are in the ice !resident $upply Chain"s scope of decision ma#ing. The ice !resident $upply Chain needs to ma#e decisions in relation to these topics. These topics are supported by the main relevant theoretical  framewor#s and a number of literature suggestions.

/ice .resident Su++ly Chain2s sco+e of decision main% In te =0re *elo( te area in (ic te Vice Presi!ent Sl Cain nee!s to 1ae !ecisions is resente!. Te Vice Presi!ent Sl Cain is resonsi*le )or 1ain0 !ecisions in te area in!icate! *elo( in *le;

Relevant teor an! teoretical )ra1e(ors (itin Te Fres Connection in relation to te )nction Vice Presi!ent Sl Cain are te )ollo(in0; •

Inventor /ana0e1ent4 sa)et stoc settin0s )or co1onents an! =nise! ro!cts

•

Pro!ction 1ana0e1ent; =&e! erio! an! ro!ction intervals

•

Deter1inin0 lotsi+es )or Prcasin0

Rele'ant theoretical frame4ors for the /. Su++ly Chain •

Te Sl Cain Strate0ie4 /..Fiser

Characteristics for di#erent supply chains Cost e8icient sl cain; )ocs on costs O*5ective Relia*ilit a0ainst lo(est cost Caacit /a&i11 tili+ation; s !riven Inventor levels /ini1al inventories (itin te cain ea! ti1es Re!ce (en lea!in0 to lo(er costs Cooeration Base! on costs4 relia*ilit an! @alit Pro!ct an! cain Desi0n at 1ini1al cost !esi0n Or0ani+ation Centrali+e!

/aret-resonsive sl cain; )ocs o resonsiveness Resonsiveness; @ic resonse B8er caacit in te cain; ll !riven S1art inventories in te cainL s*stitte inventor )or in)or1ation  600ressivel re!ce lea! ti1es Base! on velocit4 ?e&i*ilit an! costs /o!lar !esi0n  ostone1ent Decentrali+e! ICT !riven

Sorce; .Ploos van 61stel4 *ase! on /.. Fiser Mat is te ri0t sl cain )or or ro!ct  •

•

Otco1e Driven Sl Cains4 S./eln

Colla*orative Plannin04 Forecastin0  Relenis1ent 9CPFR4 sorce (((.vics.or0:

•

Te laer 1o!el * 6. van Goor

•

SCOR 1o!el4 Sl Cain Concil

Rele'ant literature for the /. Su++ly Chain •

•

•

•

Fiser4 /.. 4 -hat is the right supply chain for your product  4 Harvar! Bsiness Revie(4 /arc-6ril #7 /eln4 S. et al4 +utcome)driven supply chains, /ITSloan /ana0e1ent Revie(4 2$#$ Cristoer4 /. 4 /ogistics and $upply Chain %anagement, creating value) added networ#s, Prentice Hall4 2$$< Cora4 S. an! /ein!l4 $upply Chain %anagement, Pearson E!cation4 tir! e!ition4 2$$7

Cha+ter

# To+ics /ice .resident Sales  In this chapter a number of topics will be presented that are in the ice !resident $ales" scope of decision ma#ing. The ice !resident $ales needs to ma#e decisions in relation to these topics. These topics are supported by the main relevant theoretical framewor#s and a number of literature suggestions.

/ice .resident Sales2 sco+e of decision main% In te =0re *elo( te area in (ic te Vice Presi!ent Sales nee!s to 1ae !ecisions is resente!. Te VP Sales is resonsi*le )or 1ain0 !ecisions in te area in!icate! *elo( in *le;

Relevant teor an! teoretical )ra1e(ors (itin Te Fres Connection in relation to te )nction Vice Presi!ent Sales are te )ollo(in0; •

Ne0otiatin0 service level a0ree1ents 9service level4 sel) li)e a0ree1ent4 or!er !ea!line4 tra!e nits:6llocation olic in case o) sorta0e  sorta0e rle

•

•

•

Pareto  6BC analses as *asis )or csto1er !i8erentiation /ana0in0 !e1an! varia*ilit * ne0otiatin0 ro1otional ressre an! ro1otion ori+on Colla*oration (it csto1ers; V/I4 colla*orative )orecastin04 on-sel)availa*ilit

Rele'ant theoretical frame4ors for the /. Sales •

•

Csto1er riorit settin0  6BC analses 9on trnover4 vol1e4 1ar0in4 et cetera:

Co1etitive strate0ies 9Porter:

•

/aret 0ro(t strate0ies 96nso8:

Rele'ant literature su%%estions for the /ice .resident Sales •

•

•

allace4 To1as4 F. 4 $ales 0 +perations !lanning4 allace  Co4 tir! e!ition4 2$$' Glo*al Co11erce Initiative an! Ca0e1ini4  1234 Future $upply Chain, 2$$7 ralin0en4 R. van en ansen4 /. 4 The end of traditional mass brands, *ran!cannel.co1

Cha+ter

5 To+ics /ice .resident O+erations  In this chapter a number of topics will be presented which are in the ice !resident +perations" scope of decision ma#ing. The ice !resident +perations needs to ma#e decisions in relation to these topics. These topics are supported by relevant theoretical framewor#s and a number of literature suggestions.

/ice .resident O+erations2 sco+e of decision main% In te =0re *elo( te area in (ic te Vice Presi!ent Oerations nee!s to 1ae !ecisions is resente!. Te VP Oerations is resonsi*le )or 1ain0 !ecisions in te area in!icate! *elo( in *le;

Relevant teor an! teoretical )ra1e(ors (itin Te Fres Connection in relation to te )nction VP Oerations are te )ollo(in0; •

Set ti1es an! Sin0le /inte E&can0e o) Die 9S/ED: tecni@es

•

ean /an)actrin0  ai+en  < S 1o!el  T/  TOC

•

Caacit 1ana0e1ent an! Pro!ct9ion: Plannin0

•

aot o) ro!ction rocesses 9line ro!ction vs )nctional set vs 1ltile sille! (orers:

•

M/ae or *A in te area o) (areosin0

•

Conventional verss a )ll ato1ate! (areose

Rele'ant theoretical frame4ors for the /. O+erations

•

Balloon 1o!el4 Tee(es en 6!riaansen