SUPPLY CHAIN ANALYST:
LESSON PLAN OVERVIEW
Career: A Supply Chain Analyst analyzes and coordinates an organization’s supply chain the system that moves a product from supplier to consumer. They manage the entire life cycle of a product, which includes how a product is acquired, allocated, and delivered.
Lesson: This lesson plan provides activities for students to learn about a supply chain analyst by learning how they manage the life cycle of a product. Students will analyze and select new suppliers for an automobile assembly line. Students will learn about lean manufacturing and will apply that knowledge to improving an existing process.
Grade Level: High School
Learning Objectives:
〉 Students will be introduced to the career of a supply chain analyst by learning how they analyze the factors involved in the production of a product.
〉 Students will analyze and select new suppliers for an automobile assembly line.
〉 Students will learn about lean manufacturing and will apply that knowledge to improving an existing process
Materials Needed:
Activity #1: Analyzing Suppliers
〉 Student worksheet
〉 Calculator Activity #2: Lean Manufacturing
〉 Student worksheet
computer
TEACHER GUIDE
Lesson Instructions: The following activities will help you introduce students to the supply chain analyst career and what they do. Begin the lesson by reading the Class Message below to your students, then have them watch the recommended career video. Afterwards, facilitate discussion using the Class Questions listed below.
After the discussion, students will work on two activities. Each activity has a printable worksheet with student instructions and areas to record their work. Have students read their worksheets before beginning each activity.
You should also familiarize yourself with the student worksheets to provide assistance when needed, help demonstrate any procedures, and help in facilitating the discussion that ends each activity.
Class Message: Today, we are going to learn about the career of a supply chain analyst. Have you ever thought about all of the factors involved in making a product? It takes a lot of researching and planning to supply the items that customers want and need like selecting the materials, processes, equipment, employees, packaging, and delivery to name a few.
In this lesson, you will roleplay being a supply chain analyst by analyzing and selecting new suppliers for an automobile assembly line. You will also learn about lean manufacturing and will apply what you learned to improve an existing process.
Now let’s watch this short video to learn more about a supply chain analyst
Class Discussion Questions:
〉 What do you think a supply chain analyst does? - Response Suggestions: they research and recommend materials needed to make products, research items to find the lowest price, research for best quality for the cost, maintain the supply inventory, etc.
〉 Why do you think it is important for a supply chain analyst to continually research materials and supplies? - Response Suggestions: to find the best materials available at the lowest cost, to ensure materials needed are available, etc.
〉 Why do you think it is important for a supply chain analyst to study the demand and trends for products? - Response Suggestions: to ensure continued customer need, to prevent wasting money on making products no one wants or needs, to avoid over producing, etc.
Activities Overview: This lesson plan includes two student activities. In Activity #1, students will roleplay being a supply chain analyst by analyzing and selecting new suppliers for an automobile assembly line. In Activity #2, students will learn about lean manufacturing and will apply that knowledge to improving an existing process.
Read and familiarize yourself with the student worksheet for each activity.
Activity #1: Analyzing Suppliers
Students will pretend being a supply chain analyst by analyzing and selecting two new suppliers for an automobile assembly line.
Activity Instructions:
〉 Hand out the student worksheet.
〉 Provide access to a calculator.
〉 Introduce the activity and guide students as needed.
〉 After completion, facilitate a discussion using the questions for the activity
Activity Description: You are a supply chain analyst for an automobile manufacturer. You are responsible for ordering the materials needed to assemble the automobiles. Recently, you have had an issue with two of your suppliers and must now research to replace these suppliers. Your aluminum supplier has significantly increased their cost forcing you to find another supplier. Your polypropylene supplier changed the quality of their product forcing you to find a new suppler.
Activity Procedure: Calculate the information below, and then select the most costeffective supplier for the aluminum and polypropylene.
Activity Results: Students calculated and analyzed the information provided and selected the best suppliers and materials to replace the existing aluminum used to make the automobile frame and polypropylene used to make the plastic bumpers.
Aluminum Supplier
Aluminum is used for many parts of an automobile. The total aluminum assembly process uses 332 lbs. of aluminum per vehicle. The company produces 500 vehicles per day and operates 24/7.
Determine the most cost-efficient aluminum supplier for the month of April by calculating the following:
How many vehicles are produced in the month of April? 15,000 vehicles
500 vehicles per day X 30 days = 15,000 vehicles
How much aluminum in metric tons is needed to produce the vehicles for the month of April? 2,259 metric tons
1 metric ton = 2,204.62 lbs.
332 lbs. aluminum per vehicle X 15,000 vehicles = 4,980,000 lbs.
4,980,000 lbs. ÷ 2,204.62 lbs./ton = 2,259 metric tons
Calculate the Total Aluminum Price per Supplier (Landed Cost) to determine Total Cost per Supplier:
United Aluminum (USA)
Huang Aluminum (China)
$1,950
$1,700
$4,405,050 (2,259 metric tons X $1,950)
Devonport Aluminum (Australia) $1,850
$100 per metric ton $4,630,950 ($100 X 2,259 = $225,900 + $4,405,050)
$3,840,300 (2,259 metric tons X $1,700) 15% of Total Aluminum Price (Note: Takes 2 weeks longer to receive) $4,416,345 (15% X $3,840,300 = $576,045 + $3,840,300)
$4,179,150 (2,259 metric tons X $1,850) 10% of Total Aluminum Price (Note: Takes 2 weeks longer to receive) $4,597,065 (10% X $4,179,150 = $417,915 + $4,179,150)
*Landed cost refers to the total cost of a product (materials plus shipping) one needs to pay, from the seller’s warehouse/manufacturer to the buyer’s warehouse/facility.
Calculate a defect rate of .1% for the aluminum: should assume that 2.259 metric tons will be defective
2,259 metric tons X .1% defects = 2.259 metric tons
How many total vehicles will the defect rate affect? 14 vehicles
2.259 metric tons X 2,000 lbs. = 4,518 lbs.
4,518 lbs. ÷ 332 lbs. = 14 vehicles
Which supplier is the most cost-effective, and why? Huang Aluminum (China) is the cheapest, but will have to order two weeks before needing the supplies to arrive in time. It is a savings of $180,720 per order compared to the next-best option.
How much will the aluminum cost per vehicle? $294.42 per vehicle
Huang Aluminum (China) $4,416,345 ÷ 15,000 vehicles = $294.42 per vehicle
Polypropylene
Polypropylene is a thermoplastic made from the combination of propylene monomers. It is used in a variety of applications to include packaging for consumer products, plastic parts for various industries including the automotive industry, where it is used to make molded front and back bumpers. The total polypropylene molding process uses 70 lbs. of polypropylene per vehicle. The company produces 500 vehicles per day and operates 24/7.
Using your previous calculations from the aluminum above, how much polypropylene in pounds is needed to produce the vehicles for the month of April?
1,050,000 lbs.
70 lbs. polypropylene per vehicle X 15,000 vehicles = 1,050,000 lbs.
Calculate the Total Polypropylene Price per Supplier (Landed Cost) to determine Total Cost per Supplier: Supplier
Poly Products (USA)
12 cents per lb.
Poly Pro (South Korea)
9 cents per lb.
$126,000 (1,050,000 lbs. X 12 cents)
1% of Total Polypropylene Price
(Delivered in 2 days)
$94,500 (1,050,000 lbs. X 9 cents)
MÜLLER Industries (Germany)
10 cents per lb.
$105,000 (1,050,000 lbs. X 10 cents)
$127,260 (1% X $126,000 = $1,260 + $126,000)
15% of Total Polypropylene Price
(Note: Takes 2 weeks longer to receive) $108,675 (15% X $94,500 = $14,175 + $94,500)
20% of Total Aluminum Price
(Note: Takes 2 weeks longer to receive) $126,000 (20% X $105,000 = $21,000 + $105,000)
*Landed cost refers to the total cost of a product (materials plus shipping) one needs to pay, from the seller’s warehouse/manufacturer to the buyer’s warehouse/facility.
Calculate a defect rate of .1% for the polypropylene: should assume that 1,050 lbs. will be defective
1,050,000 lbs. X .1% defects = 1,050 lbs.
How many total vehicles will the defect rate affect? 15 vehicles
1,050 lbs. ÷ 70 lbs. = 15 vehicles
Which supplier is the most cost-effective, and why? Poly Pro (South Korea) is the cheapest, but will have to order two weeks before needing the supplies to arrive in time. It is a savings of $17,325 per order compared to the next-best option.
How much will the polypropylene cost per vehicle? $7.25 per vehicle
Poly Pro (South Korea) $108,675 / 15,000 vehicles = $7.25 per vehicle
Activity Discussion:
〉 What other variables do you think could affect the cost of aluminum and polypropylene? - Sample answers may include: availability of product, shipping conditions, trade agreements for exports and imports between countries, unrest in a foreign country, etc.
〉 What are some of the things you can do to negotiate a lower price for the materials? - Sample answers may include: purchase materials in bulk or larger quantities, play one supplier against the other to negotiate a lower price per unit, etc.
〉 What would you do if there were defects in any of the supplies? - Sample answers may include: notify the supplier to replace the defective items, special order additional supplies, make less of the product until additional supplies are delivered, etc.
Activity #2: Lean Manufacturing
Students will learn about lean manufacturing and how it applies to supply chain management. Students will then apply that knowledge to improving an existing process.
Activity Instructions:
〉 Hand out the student worksheet.
〉 Provide access to a computer.
〉 Introduce the activity and guide students as needed.
〉 After completion, facilitate a discussion using the questions for the activity.
Activity Results: Students learned about lean manufacturing and how it applies to supply chain management. Students then used lean manufacturing principles to improve an existing process.
Activity Discussion:
〉 Why do you think it is important to regularly review and update processes?Sample answers may include: to ensure the company is reducing waste, to reduce waste and maximize profits, check and balance to ensure the company is operating as efficiently as possible, etc.
〉 Why do you think most companies implement lean manufacturing and management policies? - Sample answers may include: to ensure the company stays relevant, provide the products customers want and need in a timely fashion, to fully utilize all resources, etc.
〉 How do you think a supply chain analyst plays a role in implementing lean manufacturing? - Sample answers may include: they analyze the cost and quality of raw materials needed to make a product, they source suppliers for most competitive pricing, they calculate the amount of materials needed to make a product, etc.
CAREER INSIGHT
Career Highlight: This lesson plan highlights some of the duties of a supply chain analyst and how they research and plan a product life cycle. See the Employers in My Area section to contact businesses and organizations in your area about classroom demonstrations, on-site visits, or other additional career exposure opportunities.
Featured Career:
Supply Chain Analyst
Career Descriptions: Supply chain analysts analyze and coordinate an organization’s supply chain the system that moves a product from supplier to consumer. They manage the entire life cycle of a product, which includes how a product is acquired or produced, allocated, and delivered.
Supply chain analyst typically do the following:
〉 Manage a product’s life cycle from design to disposal
〉 Direct the allocation of materials, supplies, and products based on principles of supply and demand
〉 Develop business relationships with suppliers and clients
〉 Understand clients’ needs and how to meet them
〉 Review logistical functions and identify areas for improvement
〉 Propose strategies to minimize the cost or time required to transport goods
Supply Chain Analysts oversee activities that include purchasing, transportation, inventory, and warehousing. They may direct the movement of a range of goods, people, or supplies, from common consumer goods to military supplies and personnel.
Logisticians use software systems to plan and track the movement of products. They operate software programs designed specifically to manage logistical functions, such as procurement, inventory management, and other supply chain planning and management systems.
Other Names for this Career: Global Supply Chain Vice President, Material Requirements Planning Manager, Solution Design and Analysis Manager, Supply Chain Director, Global Consumer Sector Vice President, Supply Chain Manager, Global Supply Chain Director, Supply Chain Vice President, Logistician, Demand Planner
EDUCATOR RUBRIC
ITEM Does Not Meet Expectations Meets Expectations Exceeds Expectations
Analyze Current Process and Identify areas of waste
Creating a New Process
Students did not adequately document their work. They failed to record the areas of waste they identified and opportunities for improvement
Students did not rely on their previous research. Students did not consider the various elements of LEAN manufacturing.
Presentation
Activity Discussions
Students presentation was unorganized and did not follow a sequence of information. Students lacked a detailed grasp of the information.
Student did not participate in the activity discussion
Students did adequately document their work, recording both areas of waste they identified and opportunities for improvement
Students did rely on their previous research. Students considered many but not all of the various elements of LEAN manufacturing.
Students presentation was organized and followed a sequence of information. Students used adequate details to display their grasp of the information.
Student actively participated in the activity discussions
Students document their work with a high level of detail, recording both areas of waste they identified and opportunities for improvement
Students did rely on their previous research. Students considered and addressed all of the various elements of LEAN manufacturing.
Students presentation was incredibly well organized and followed a clear sequence of information. Students used specific and purposeful details to display their grasp of the information.
Student actively participated in the activity discussion and referenced the digital videos and the written text in providing detailed answers.
ACTIVITY #1: ANALYZING SUPPLIERS
Introduction: You are a supply chain analyst for an automobile manufacturer. You are responsible for ordering the materials needed to assemble the automobiles.
Activity Description: Recently, you have had an issue with two of your suppliers and must now research to replace these suppliers. Your aluminum supplier has significantly increased their cost forcing you to find another supplier. Your polypropylene supplier changed the quality of their product forcing you to find a new suppler.
Activity Procedure: Calculate the information below, and then select the most costeffective supplier for the aluminum and polypropylene.
Aluminum Supplier
Aluminum is used for many parts of an automobile. The total aluminum assembly process uses 332 lbs. of aluminum per vehicle. The company produces 500 vehicles per day and operates 24/7.
Determine the most cost-efficient aluminum supplier for the month of April by calculating the following:
How many vehicles are produced in the month of April?
How much aluminum in metric tons is needed to produce the vehicles for the month of April?
Calculate the Total Aluminum Price per Supplier (Landed Cost) to determine Total Cost per Supplier:
(Note: Takes 2 weeks longer to
(Note: Takes 2 weeks longer to
*Landed cost refers to the total cost of a product (materials plus shipping) one needs to pay, from the seller’s warehouse/manufacturer to the buyer’s warehouse/facility.
Calculate a defect rate of .1% for the aluminum:
How many total vehicles will the defect rate affect?
Which supplier is the most cost-effective, and why?
How much will the aluminum cost per vehicle?
Polypropylene
Polypropylene is a thermoplastic made from the combination of propylene monomers. It is used in a variety of applications to include packaging for consumer products, plastic parts for various industries including the automotive industry, where it is used to make molded front and back bumpers. The total polypropylene molding process uses 70 lbs. of polypropylene per vehicle. The company produces 500 vehicles per day and operates 24/7.
Using your previous calculations from the aluminum above, how much polypropylene in pounds is needed to produce the vehicles for the month of April?
Calculate the Total Polypropylene Price per Supplier (Landed Cost) to determine Total Cost per Supplier:
in
Takes 2 weeks longer
Takes 2 weeks longer
*Landed cost refers to the total cost of a product (materials plus shipping) one needs to pay, from the seller’s warehouse/manufacturer to the buyer’s warehouse/facility.
Calculate a defect rate of .1% for the Polypropylene:
How many total vehicles will the defect rate affect?
Which supplier is the most cost-effective, and why?
How much will the polypropylene cost per vehicle?
Activity Discussion:
〉 What other variables do you think could affect the cost of aluminum and polypropylene?
〉 What are some of the things you can do to negotiate a lower price for the materials?
〉 What would you do if there were defects in any of the supplies?
ACTIVITY #2: LEAN MANUFACTURING
Introduction: Lean manufacturing is a process that focuses on minimizing waste within manufacturing systems while maximizing productivity. Also known as “lean production,” or just “lean,” this concept was first developed and implemented by Toyota Lean manufacturing focuses on reducing lead times, operating costs, and improving product quality.
Lean principles have influenced manufacturing concepts throughout the world, as well as industries outside of manufacturing to include healthcare, software development, and service industries.
The 5 Main Principles of Lean Manufacturing
〉 Value - From the customer's perspective. Companies need to understand the value the customer places on their products and services. This can help them determine how much money the customer is willing to pay for the product or service. The company must strive to eliminate waste and cost from all business processes to provide the lowest cost for their customer while achieving the highest profit for the company.
〉 The Value Stream. This principle involves recording and analyzing the flow of information or materials required to produce a specific product or service with the intent of identifying waste and methods of improvement. The value stream encompasses the product's entire cradle-to-grave lifecycle, from raw materials to disposal. Companies must examine each stage of the cycle for waste. Anything that does not add value must be eliminated. Lean thinking recommends supply chain improvements as part of this effort.
〉 Flow. Eliminate barriers and identify ways to improve lead time to ensure the processes are smooth from the time an order is received through to delivery. Efficient flow is critical to the elimination of waste. Lean manufacturing relies heavily on preventing interruptions in the production process and maintaining a consistent set of processes in which they move in a constant flow stream.
〉 Pull. Only start new work when there is demand for it. Lean manufacturing uses a pull system instead of a push system. A push system uses a manufacturing resource planning (MRP) process, where inventory needs are determined in advance and products are manufactured to meet a forecast. However, forecasts can be inaccurate, which leads companies to create either too much or too little product and disrupts production schedules and possibly profits. In a pull system, nothing is bought or made until there is an exhibited demand.
〉 Continual Process Improvement. Lean manufacturing relies on the concept of continually striving for perfection, which entails targeting the root causes of quality issues, correcting these issues, and eliminating waste across the value stream.
Some of the Wastes of Lean Production include:
〉 unnecessary transportation,
〉 excess inventory,
〉 unnecessary motion of people, equipment or machinery,
〉 waiting, whether it is people waiting or idle equipment,
〉 over-production of a product,
〉 over-processing or putting more time into a product than a customer needs, such as designs that require high-tech machinery for unnecessary features,
〉 defects, which require effort and cost for corrections, and
〉 waste of unused talent and ingenuity.
Activity Description: You are a supply chain analyst and are tasked with reviewing and streamlining an existing process. Apply lean manufacturing principles to improving the existing process.
Activity Procedure: Select one of the processes listed below or another process of your choosing that you are familiar with. Consider the amount of physical waste, efficiency of labor usage, costs versus profitability, defects, and overall quality of the product. Research processes online if needed.
Here are some suggested processes:
〉 Reducing waste in the school cafeteria
〉 Distributing breakfast cereal or another food product more efficiently
〉 Producing a new product like a bottle of water
Defining the current process
List step-by-step the current process for the process you selected:
Analyzing the current process
Analyze the current process and identify areas of waste or opportunities for improvement:
Creating a new process
Using the previous information and research, revise the current process or create a new process. Remember to consider the amount of physical waste, efficiency of labor usage, costs versus profitability, defects, and overall quality.
Document revised or new process:
Create a presentation
Create a presentation of your process to present to the class. Include either a demonstration of the process, a poster display, PowerPoint slides, or other form of presentation.
Activity Discussion
:
〉 Why do you think it is important to regularly review and update processes?
〉 Why do you think most companies implement lean manufacturing and management policies?
〉 How do you think a supply chain analyst plays a role in implementing lean manufacturing?
