Journal of Supply Chain Management

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    An improvement of instruments utilization: a case study of global medical device company
    (Bangkok : Assumption University Press, 2023) Piyaporn Charoenmetta
    The objective of this project is to study the as-is process that Global Med Company (Global Med) has performed in the operation on an inbound and outbound basis. The reason for this deep analysis is the delay in serving the instrument of Global Med from July 2020 to December 2020. The delay and unutilized instrument cases have contributed to the loss of the company, both from financial and non-financial views. Especially delay in the supply or delivery of the instrument set will result in the postponement or cancellation of the operation, as well as a case and complaint from the customer. Applying a process map (swim lane) was to see the linkage between the processes and a Cause and Effect diagram (Fishbone) to identify the causes of the problem and prove whether current processes are being performed. To figure out how to improve the operational process, consider transportation routes, reverse logistics, and rescheduling to help improve the lead time from start to return to the distribution warehouse or movement between one drop and another drop. Developed and applied to real operations from January 2021 to December 2021 and maintained to the present. The results from each tool have affected the Global Med Company's service performance by improving by 3% to meet the customer’s requirements for 12 months in 2021 and by a significant 2% in 2022.
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    An improvement of the lead time in collaborative demand planning by applying lean six sigma
    (Bangkok : Assumption University Press, 2022) Shwe, Than Naing ; Wasana Marksin
    This study applied the Lean Six Sigma methodology to improve the lead time of Collaborative Demand Planning (CDP) which is done every month to identify the supply and demand, forecasting, and replenishment in HELP International, which is a humanitarian organization. The CDP is crucial in the organization so that the right items with the right quantities are distributed to the beneficiaries on time. Using the Lean Six Sigma by adopting the Define-Measure-Analyze-Improve-Control (DMAIC) concept, the problem was defined, the collected data was analyzed, the factors affecting the longer CDP process lead time were identified, the action plan was recommended for improvement, and the control plan was proposed to be sustainable. The Value Stream Map (VSM) Lean tool was used to have a better understanding of the current process, and the Fishbone analysis was conducted in the measure phase of DMAIC. As a result, the organization found out that the main causes were the steps of CDP, which are reviewing, finalizing the presentation slides, validation process, and reviewing the MRP messages. To eliminate these factors and improve the lead time, the Failure Mode and Effect Analysis (FMEA) was utilized, and the action plan was recommended for process improvement. Finally, the Lean Six Sigma concept has helped the organization to reduce the CDP lead time from 14 working days to 7 working days, and it enabled to assist the beneficiaries affected by armed conflict and other violence on time.
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    Application of backhaul strategy for powder beverage products
    (Assumption University Press, 2020) Kulanan Imvimol ; Chanita Jiratcho ; Titinan Nakornsri
    The empty slot or space truck can create the underutilization of transportation for trip.This creates the low capacity of road usage, waste time and resources in transportation.In this researchfocused on vehicle route management intransferring the products from Khon Kaen to Bangkok. To reduce the transportation costwithhighroute utilization, the route of transportation needsto redesign to find the opportunity cost-savingwith effects price competitiveness of cost of goods sold.Backhaul strategy is one of the tools to increase route utilization. This strategysupported by using As-Is and To-Be to show before and after redesign route of transportation. The method has proven successful elsewhere for created high utilization in transportation and cost-saving.The expenditure report from February-July 2019(current route)and February-July 2020(new vehicle routing)are used to compare the result of redesign the routeby truck-sharing
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    An application of the savings method to a vehicle routing problem
    (Assumption University Press, 2017) Chatsuree Kamthornsawat ; Athisarn Wayuparb
    This paper presents the authors’ research study of the vehicle routing practices of a transport company. This firm provides the delivery of Printed Circuit Board Assembly (PCBA) and electronics components to customers in the Bangkok Metropolitan Region and neighboring provinces in the Central and East regions of Thailand. Currently, traditional truck management is being practiced: this lacks a systematic approach by using only personal experience information.The inefficient truck management problem in this case study was identified as a Capacitated Vehicle Routing Problem (CVRP). Therefore, the ‘Savings Method’ designed by Clarke and Wright (1964) was applied to solve the CVRP, using Excel worksheets. The method consists of four procedures. Firstly, identify the distance matrix from the depot to all customers. Secondly, identify the savings matrix. Thirdly, assign customers to the vehicles or routes, in which the highest value is the criteria for selection. Lastly, sequence the customers within these routes. The research results show that the Savings method reduces the total number of vehicles usage and total distribution distances by 16.46% and 15.70% respectively, and increases truck utilization of truck capacity by 19.70%. These results create significant cost saving for the company.
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    An application of value stream mapping to improve purchase order process 
    (Assumption University Press, 2018) Phasinee Chuensunk ; Piyawan Puttibarncharoensri ; Yenrudee Tantisiriphaiboon
    This research is about an electricity generating company whose long lead time in its procurement process for spare parts after breakdowns caused internal customer complaints. The focus firm, Allied Generating Company (AGCo), is in a sensitive industry, that of supplying electricity to provincial and national grids in Thailand. Therefore, the procurement problem is a threat to the nation’s economy as well as to the reputation of the AGCo firm. To solve this embarrassing problem, this research applied the Value Stream Mapping (VSM) Lean methodology to identify and remove ‘wastes’ so as to reduce lead time delays and improve the procurement process.It was found that the problem originated in the Procurement Department’spurchase order process. Historical data for a one-year period found that the actual lead time was 26% higher than the standard set time. Of the three bidding methods by which suppliers could tender their bids, the Written Bidding method had the highest number of purchase order delays, 54% of its 151 bids. The average actual processing time of this method was 50.5 days, compared with the set standard of 15 days. The major cause of delays was communication waste in confirming specifications and conditions, and seeking bids from too many suppliers. Work plans were redesigned to eliminate this waste and improve the purchase order process, thus achieving the standard time. Continuous performance monitoring was also begun, with KPI standards.
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    Applying activity-based costing and activity-based management methods to estimate manufacturing costs and activities
    (Assumption University Press, 2018) Kanokporn Kleosakul ; Srobol Smutkupt
    At present, the intense competition in many industries has made many companies aware of the costs and resources utilization within the organization. The key issue that all companies take into account is cost reduction while maintaining and building business process improvement in order to satisfy customers’ requirements.
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    Applying an EOQ model to reduce an inventory cost
    (Assumption University Press, 2017) Russarin Jiraruttrakul ; Srobol Smutkupt ; Wasana Marksin ; Liang, Liu ; Chanasit Thanathawee ; Assumption University. Martin de Tours School of Management and Economics
    This research study applies an EOQ model (Economic Order Quantity) to reduce an inventory cost. The focus ABC Company is a Beer Importer in Thailand. It faced the problem of high inventory cost and lackluster inventory management. The root cause was that the Company had no standardized ordering process, which meant a high cost of carrying excess inventory, or having too little to meet demand. It also meant paying a high storage charge. The EOQ Model was proposed, to make substantial improvements. Historical inventory stock data for years 2014 and 2015 shows that the ABC Company had low stock at the end of 2014, which meant the company was not able to fulfill customer demand. Conversely, it had excess stock at the end of 2015 which increased the carrying cost until the product moved from the warehouse (the internal supply chain) on to customers in the external supply chain. The researchers collected historical data from June 2015 to May 2016 (twelve months) to compute and simulate in the EOQ model, thus identifying the re-order point and safety stock, in order to find the optimal order quantity for inventory. This enabled the identification of appropriate inventory levels and buffer stock until arrival of the next shipment. The driving objective of this research was to gain cost savings through an efficient inventory management system. After simulation with the EOQ model, the result indicates that the ABC Company can accomplish cost savings amounting to 50% of the old annual inventory cost. Therefore, the ABC Company should implement the tested EOQ model and its re-order points, to achieve the ultimate aim of improving customer satisfaction, through buying the optimal order quantity, achieving appropriate inventory levels, and minimizing inventory cost.
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    Battery transport optimization by a Vehicle Manufacturer in Thailand
    (Assumption University Press, 2016) Suphanida Leekijwiridhpol ; Srobol Smutkupt ; Vilasinee Srisarkun ; Chuthin Thanasarnaksorn
    This study is about battery transportation by a Vehicle Manufacturer that was found to have inefficient space utilization in the truck container. This problem negatively affected the company's profit and opportunity. Therefore, the use of GRASP (Greedy Randomized Adaptive Search Procedure) is proposed to minimize the problem substantially. In this research, a Vehicle Manufacturer focuses on its battery exports, which are transported by commercial vehicles. Data was collected by interviewing personnel, observing actual operations, and analyzing historical data. The result showed that a container truck utilized only 68% of its space. This impacted two areas: a high number of transportation trips, and high transportation cost. The conceptual framework of the research is to find the causes of the battery transportation problem as well as to implement GRASP methodology as a solution. GRASP methodology is a heuristics approach to allocating the right space. This methodology is widely applied in vessel container businesses, and can be useful in related fields such as truck containers. The objective of this research is to build a significant tool to enhance space utilization for loading batteries. The result indicates that the proposed solution can be accomplished and solve space utilization. According to this research, the company should implement a tower rack to stack batteries on pallets, and change the truck size from six wheels to ten wheels. These changes will provide cost saving, customer satisfaction, and collaboration, which increases the focus firm's competitiveness in the industry.
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    Business process improvement of customer service for an eBay jewelry company
    (Assumption University Press, 2017) Woraphol Aummontha ; Srobol Smutkupt
    Increasingly buyers shun retail shops in favor of online sellers. The focus firm in this research is a gemstone wholesale company which sells its jewelry on eBay. It had an inefficient operation process that was causing the company’s late delivery rate to exceed 4.00%, which was the new standard eBay requirement. The research objective of this project is to identify the root cause of this major problem, find solutions and implement improvement action. The Business Process Improvement model (BPI) was chosen to improve the internal process to align with the dispatch time agreement with eBay. Primary data was collected through interviews of relevant workers and secondary date from the investigation of company documents. Process Mapping, Fishbone Diagram, and Pareto Analysis were used to analyze and improve the process. The research identified two major causes of the late delivery rate, namely poor invoice management and insufficient shipment dates, so that the operation process lead time took over 7 days against the eBay requirement of only 2 days. The research methodology then developed a to-be business process for improving the delivery rate. This led to a significantly reduced rate, which although not achieving the eBay requirement would soon achieve this.
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    Costing a freight forwarder's outsourcing decision
    (Assumption University Press, 2016) Kasaem Limkarnjanachote ; Srobol Smutkupt ; Wasana Marksin ; Sutta Sornmayura ; Liang, Liu
    Any international Freight Forwarder in Thailand faces tough competition. Airfreight is needed for some goods. The cost is high, but can be offset by low inventory cost. FF Company, the focus firm, provides airfreight services to manufacturers. To keep prices competitive, FF's total airfreight operation cost has to be contained. This research examined whether to outsource part of its airfreight operation or retain it in-house. The total cost of ownership (TCO) concept is used to evaluate this decision. Service quality had to be maintained, outsourced or not. Three TCO models, one for insourcing and two for outsourcing, compared costs per kilogram, service quality, and pros and cons. The finding were that the operation should be retained in-house, not outsourced.