DATA TO IMPROVE OPERATIONS
LESSON PLAN OVERVIEW
Career: A supply chain analyst plans, examines and reports on the production of a product to include buying, storing, and supplying materials to reduce costs and improve quality
Lesson: This lesson plan provides activities for students to learn about a supply chain analyst by learning how they evaluate the factors involved in the production of a product. Students will research lean manufacturing and how it applies to supply chain management. Students will apply what they learned about lean supply chain management to research and analyze the ingredients for and production processes of a snack cake manufacturer.
Grade Level: Middle Grades
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 learn about lean manufacturing and how it applies to supply chain management.
〉 Students will pretend to be a supply chain analyst and will apply lean supply chain management principles in analyzing and selecting the ingredients for a snack cake manufacturer.
Materials Needed:
Activity
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 research lean manufacturing and how it applies to supply chain management. You will also pretend being a supply chain analyst by applying lean supply chain management principles to research and analyze the ingredients for a snack cake manufacturer.
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, they maintain the inventory of supplies, they continually order supplies needed to make a product, etc.
〉 What do you think are some other things a supply chain analyst might do?Response Suggestions: research items or components to find lowest price, research for best quality for the cost, assess trends to prevent over ordering inventory, etc.
〉 Why do you think it is important to always have materials available to make a product? - Response Suggestions: to continue to make the product, to prevent down time in production, to ensure that the assembly line does not shut down, etc?
Activities Overview: This lesson plan includes two student activities. In Activity #1, students will learn about lean manufacturing and how it applies to supply chain management. In Activity #2, students will pretend to be a supply chain analyst and will apply lean supply chain management principles in analyzing and selecting the ingredients for and production processes of a snack cake manufacturer.
Read and familiarize yourself with the student worksheet for each activity.
Activity #1: What is Lean Manufact?
Students will research online to learn about lean manufacturing and how it applies to supply chain management.
Activity Instructions:
〉 Hand out the student worksheet.
〉 Provide students access to a computer or other internet-capable device.
〉 Introduce the activity and guide students as needed.
〉 After completion, facilitate a discussion using the questions for the activity.
Beginning the Simulation: Students will research lean manufacturing online to better understand how it applies to supply chain management.
What are the 5 main principles of lean manufacturing?
1. Value - From the customer's perspective. Companies need to understand the value the customer places on their products and services which 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 its business processes so that the customer's optimal price can be achieved at the highest profit to the company.
2. 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 lifecycle for waste. Anything that does not add value must be eliminated. Lean thinking recommends supply chain improvements as part of this effort.
3. Flow. Eliminate functional 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 on p reventing interruptions in the production process and enabling a harmonized and integrated set of processes in which activities move in a constant stream.
4. Pull. This means you 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) processes, 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.
5. Perfection with 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.
What are some of the wastes of lean production?
〉 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
〉 waste of unused talent and ingenuity
Which of these wastes can a Supply Chain Analyst control?
〉 Unnecessary Transportation
〉 Excess Inventory
〉 Over-production of a product
〉 Defects.
Activity Discussion:
〉 How do you think a Supply Chain Analyst can control unnecessary transportation?Sample answers may include: research and analyze all forms of transportation and transportation routes to find the most cost-effective and efficient method possible, etc.
〉 How do you think a Supply Chain Analyst can control excess inventory? - Sample answers may include: analyze customer demand and order only enough materials to fill the customer orders, monitor inventory and initiate processes to alert staff on low and high inventory levels, define appropriate responses to dialing back or ramping up production to stabilize inventory, etc.
〉 How do you think a Supply Chain Analyst can control over-production of a product?Sample answers may include: coordinate the ordering of materials with the customer orders received (i.e. demand) to reduce over-production (i.e. supply), do not order more materials then what it needed for production, do not stock pile materials, etc.
〉 How do you think a Supply Chain Analyst can control defects? - Sample answers may include: account for possible defects when ordering materials, inspect the materials for defects before using them to make the products, etc.
Activity #2: Analyzing the Supply Chain
Students will pretend being a supply chain analyst and will apply lean supply chain management principles in analyzing and selecting the ingredients for a snack cake manufacturer. They are responsible for ordering the ingredients for the brownie line. The brownie recipe calls for wheat flour, corn syrup, cocoa, palm oil, and walnuts.
Activity Description: You will act as supply chain analysts and determine which suppliers can provide you with the ingredients you need to make your product keeping the cost as low as possible without affecting the quality of the product.
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 Results: Students will complete a series of problems to determine the best suppliers and materials to manufacture snack cakes using lean manufacturing principles.
Activity Procedure: Calculate the information below, and then select the most costeffective supplier for the wheat flour and walnuts.
Scenario: Recently, you have had an issue with two of your suppliers and must now research to replace the suppliers. The wheat flour supplier has significantly increased their cost forcing you to find another supplier. The walnut supplier lost their crop from a disease in their trees and can no longer supply the walnuts needed to make the brownies.
Wheat Flour
Note: All suppliers sell wheat flour in 50 bag pallets.
Walnuts
You need to order enough supplies to make 500 batches of brownies per month. Each batch requires 1-50 lb. bag of wheat flour and 1-5 lb. bag of walnuts.
How many pallets of wheat flour do you need to order? 10 pallets per month
500 batches X 50 lb/batch = 25,000 lbs
50 bags/pallet x 50 lb/bag = 2,500 lbs/pallet
25,000 lb ÷ 2,500 lb/pallet = 10 pallets per month
How many boxes of walnuts do you need to order? 100 boxes per month
500 batches X 5 lb/batch = 2,500 lbs
5 bags/box x 5 lb/bag = 25 lbs/box (known, based on chart)
2,500 lb ÷ 25 lb/box = 100 boxes per month
Which wheat flour suppler would be the most cost-effective? Flour Milling Company
Smythe Milling Company - $1,299.50 per pallet X 10 pallets = $12,995 per month
Baker’s Supply - $1,287.50 per pallet X 10 pallets = $12,875 per month
Flour Milling Company - $1,200.00 per pallet X 10 pallets = $12,000 per month
How much will wheat flour cost per month? $12,000
Which walnut supplier would be the most cost-effective? Real Nuts
Peter’s Nuts - $137.50 per box X 100 boxes = $13,750 per month
Real Nuts - $130.35 per box X 100 boxes = $13,035 per month
The Nut Case - $130.80 per box X 100 boxes = $13,080 per month
How much will wheat flour cost per month? $13,035
Activity Discussion:
〉 What other variables do you think could affect the cost of the raw materials needed to make the brownies? - Sample answers may include: bad crop for the materials needed, increased gas prices could affect delivery cost, etc.
〉 Why do you think it is important to only order enough supplies to make the brownies per month? - Sample answers may include: lack of storage space, expiration of perishable goods, do not want to exceed the consumer demand, etc.
〉 What would you do if there were defects in any of the supplies? - Sample answers may include: would notify the supplier to replace the defective items, would special order additional supplies, would have to make less of the product until additional supplies were delivered, would pull from reserves and/or last month’s excess inventory, 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 analysts 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, Logisticians, Demand Planner
STANDARDS ALIGNMENT
Activity #1: What is Lean Manufacturing?
English Language Arts Standards
〉 Conduct research to answer a question (including a self-generated question), drawing on multiple sources and generating additional related, focused questions that allow for multiple avenues of exploration.
〉 Support interpretations, analyses, reflections, or research with evidence found in literature or informational texts, applying grade level standards for reading; assess whether the reasoning is sound and the evidence is relevant and sufficient to support the claims and recognize when irrelevant evidence is introduced.
〉 Read and comprehend a variety of literary nonfiction at the high end of the grades 68 text complexity band independently and proficiently
〉 Write arguments to support claims with clear reasons and relevant evidence
〉 Write informative/explanatory texts to examine a topic and convey ideas, concepts, and information through the selection, organization, and analysis of relevant content.
Activity #2: Analyzing the Supply Chain
Mathematics Standards
〉 Write, read, and evaluate expressions in which variables stand for numbers.
〉 Use variables to represent numbers and write expressions when solving a real-world or mathematical problem; understand that a variable can represent an unknown number, or, depending on the purpose at hand, any number in a specified set.
〉 Solve real-world and mathematical problems by writing and solving one step equations of the form x + p = q and px = q for cases in which p, q, and x are all nonnegative rational numbers.
〉 Solve multi-step real-world and mathematical problems posed with positive and negative rational numbers presented in any form (whole numbers, fractions, and decimals).
〉 Use variables to represent quantities in a real-world or mathematical problem, and construct simple equations and inequalities to solve problems by reasoning about the quantities
School Counseling Standards
〉 Develop and practice effective technology skills
〉 Work effectively in diverse groups by developing and employing leadership and teamwork skills
EDUCATOR RUBRIC
ITEM
Does Not Meet Expectations
Research Lean Manufacturing Group did not record their research on the cost of ingredients and shipping
Meets Expectations Exceeds Expectations
Group recorded most their research on the cost of ingredients
Group recorded all their research on cost of ingredients and shipping
Computations Group did not properly show their work on the cost of materials needed
Group showed most of their work on the cost of materials needed
Group showed in detail all their work on the cost of materials needed
Cost Effective Supplier Group did not explain or show work how they arrived at their decision for the most cost-effective supplier
Group showed their work for arriving at their decision for the most costeffective supplier
Group had excellent detail on how they arrived at their decision for the most costeffective supplier
Discussion Questions Did not participate in the activity discussions. Participated in the activity discussions. Participated in the activity discussions and made connections to real world experiences and the profession of farming.
ACTIVITY #1: WHAT IS 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.
Activity Description: Research project to learn more about lean manufacturing and how it affects the role of a supply chain analyst.
You can research this on the Internet. Here are a couple of sample articles about lean manufacturing:
〉 Lean Manufacturing (http://tn-caps.com/r/68SC1)
〉 9 Lean Manufacturing Principles (http://tn-caps.com/r/68SC2)
Activity Procedure: Research online to learn more about lean manufacturing. What are the 5 main principles of lean manufacturing?
What are some of the wastes of lean production?
What are some of the wastes a Supply Chain Analyst can control?
Activity Discussion:
〉 How do you think a Supply Chain Analyst can control unnecessary transportation?
〉 How do you think a Supply Chain Analyst can control excess inventory?
〉 How do you think a Supply Chain Analyst can control over-production of a product?
〉 How do you think a Supply Chain Analyst can control defects?
ACTIVITY #2: ANALYZING THE SUPPLY CHAIN
Introduction: You are a supply chain analyst for a snack cake manufacturer. You are responsible for ordering the ingredients for the brownie line. The brownie recipe calls for wheat flour, corn syrup, cocoa, palm oil, and walnuts.
Recently, you have had an issue with two of your suppliers and must now research to replace the suppliers. The wheat flour supplier has significantly increased their cost forcing you to find another supplier. The walnut supplier lost their crop from a disease in their trees and can no longer supply the walnuts needed to make the brownies.
Activity Description: You will act as supply chain analysts and determine which suppliers can provide you with the ingredients you need to make your product keeping the cost as low as possible without affecting the quality of the product.
Activity Procedure: Calculate the information below and then select the most costeffective supplier for the wheat flour and walnuts.
Wheat Flour
Note: All suppliers sell wheat flour in 50 bag pallets.
Milling Company
ea. How much does a pallet cost?
Flour Milling Company $19.50 ea. How much does a pallet cost?
Walnuts
Supplier 5
Peter’s Nuts
$22.50
Real Nuts $25.77
How much is a 25 lb. box?
Flat rate = $25
The Nut Case $26.16
How much is a 25 lb. box?
$1.50 per box
How much is a 25 lb. box?
You need to order enough supplies to make 500 batches of brownies per month. Each batch requires 1-50 lb. bag of wheat flour and 1-5 lb. bag of walnuts. How many pallets of wheat flour do you need to order? ____________
How many boxes of walnuts do you need to order? __________
Which wheat flour suppler would be the most cost-effective? __________
How much will wheat flour cost per month? __________
Which walnut supplier would be the most cost-effective? __________
How much will wheat flour cost per month? __________
Activity Discussion:
〉 What other variables do you think could affect the cost of the raw materials needed to make the brownies?
〉 Why do you think it is important to only order enough supplies to make the brownies per month?
〉 What would you do if there were defects in any of the supp?
