Performance Cycle

In TYB we have 7. 5 Logistic and Supply Chain Management topics, let'start and understand what is Logistical Performance Cycle. Let's change the ink. So Logistical Performance Cycle is actually, it comprises of set of activities, okay, that means set of the activities or series of the activities that need to be carried out to receive order from customer, customer to receive order, to process it and to the final delivery of customer, whatever process or activities carried out we do, collectively we are called Logistical Performance Cycle. So all the activities that are carried out, based on the activities being carried out, there exist 3 Logistical Performance Cycles. So 3 Logistical Performance Cycles, as I said if we want to receive order from customer, process it and deliver it to customer, all the series of activities are called Logistical Performance Cycles. But if we classify these activities, we can say that there are 3 Logistical Performance Cycles, first is Procurement Performance Cycle, w So remember that it is called Inbound Logistic or Procurement Performance Cycle. Then Manufacturing Support Performance Cycle what is written in your syllabus? In Process Logistic. So remember that it is called In Process Logistic or Manufacturing Support Performance Cycle both are same. Then Physical Distribution Performance Cycle, it is called Outbound Logistic. So Outbound Logistic is called Physical Distribution Performance Cycle, both are same. So let's understand each one of these t So Procurement means buying or procuring. So t What to buy? To buy raw material. From vendor or supplier, the vendor of raw material or supplier, what to buy? To buy raw material and make them available for processing, what to do for production? To make them available. T It is also called as Inbound Logistic. And very important, remember that it is called Upstream Logistic. You can be asked in MCQ, where is Upstream Logistic? You can be asked in True or False, in Mass the following, or in MCQ, what is the name of Inbound Logistic and Alternative? So what is Alternative Name? Upstream Logistic. Let's talk about t Pre-production means before processing, all the work, activities, where is it all? Procurement Performance Cycle. All the activities, all the activities, pre-production activities, are all in Procurement Performance Cycle. So it is a base of the Logistical Performance Cycle. Now let's talk about the elements of the Inbound Logistic. T So the first t When it comes to Resource Planning, remember two t If I have to set up a factory, then I will have to land, plant structure, then I will have to put up mac So what are the physical needs? What will be our physical planning? Whatever we will do for them, we will have physical resources. And for these physical resources, what will be the planning? What will be our physical planning? Physical Resource Planning. Then Financial Resource Planning. Means where will you get the fund? Where will you get the capital? So that is the Financial Resource Planning. That is Supply Sourcing. Supply Sourcing means whatever you have to do for production, whether you are doing furniture production or iron steel production, then whatever raw material will be used for that, you will buy it from a vendor or supplier. So Supply Sourcing is your vendor. It is your supplier. There are many vendors and suppliers available in the market, so what you have to do is select it. That is the Supply Sourcing. The supply of raw material, where will it be from? Then Order Placement. Order Placement means once you finalize the vendor, among all the vendor lists, you finalize it from the supplier list or vendor list. T What will we do with t We will buy raw material. Then what you have to do is you have to go for the Order Placement. What you have to do is give order. In then comes inbound transportation. What is inbound transportation? That is why it is called inbound logistic. What is inbound transportation? Supplier. Whose supplier? The supplier of raw material or vendor. From that place, our warehouse or our company, for example, your warehouse is in the company. Our factory warehouse or factory. Or I can use another alternative word, plant. What to do with our factory or plant? Transportation of raw material. From the supplier place to our warehouse, where we are storing raw material or factory, what to do with the plant? Carry the goods or carry raw material. What was t Inbound transportation. Then receiving and inspection. Once you receive raw material on your warehouse or factory, it is your duty to receive and along with the receiving, what you have to do? You have to do inspection. What is inspection? Inspection, you have to match with invoice. The order I gave, whether the order has come or not, whether all products have come in good condition or not, the raw material ordered by the company, whether it has come or not, what to do with the invoice? Cross check. That is the inspection. Is then storage and handling. Storage and handling. Raw material is not We have put raw material in the factory as soon as it comes. We have put it on processing. No. What you have to do? You have to keep those raw materials in warehouses. These storage houses, wherever in the store room. If there is a small store room, a warehouse, a big warehouse, wherever you are keeping, that is you have to keep the storage and handling. You have to handle it. If it is an agricultural product, you will have to install cold storage facilities. If it is a fragile product, how do you handle it? All these products have a mechanism for handling. How do you handle it? So, the issues related to storage and handling, are seen here. So, what are these? Collective activities, w Then we talk about manufacturing support performance cycle. It is also called in process logistics. Remember, I will write here, remember, it is also called in process logistics. Remember, it is called in process logistics. So, what is t It accesses the interface or linkages between the procurement, performance cycle and physical distribution cycle. Physical distribution cycle is called procurement life cycle or sorry, performance cycle. What is the middle one? It is called interface. It is also called as a production logistics. It is also called production logistics. Remember, the activities under t Manufacturing is not related to activities. Manufacturing is about supporting. The activities that support the manufacturing process, what are the activities? Receiving material from stores. Material from stores means, now, what is happening in the procurement life cycle? Our inbound transportation, what we did was, raw material in warehouse, in storage, we stored it after inspection and received it. Now, from those stores or warehouses, we have to remove raw material from the warehouse to the plant, where the production unit is there, to the warehouse, that is the receiving material from the stores. Then receiving component. Component means, when you are producing, then you are using a mac If you have it, then what to do with it? Bring it somewhere. So, that is the receiving component. That inventory of WIP. WIP is a work in process product. Work in process means, it is not always necessary, that you take it to the production unit, and you have processed it, and you have got the final goods. Sometimes, in the production unit, partially finished goods, or partially finished goods are produced. So, we have to take the goods to the other unit, carry it to the other unit, and then it is finished. It can be in 2-3 layers, 2-5 layers, so your work in process, or partially finished goods, or partially finished goods, are all ready. What to do with them? You have to store them. It is not If there is a mac There is no problem. You do not have to worry about the inventory. But one unit to another unit, w So, what you have to do first, work in process, or the same finished goods, what you have to do, store them, then what you have to do as a, carry them. If we do not carry them by storing, then our transportation cost will increase. Then transfer of the finished goods, okay. Now look here, whatever finished goods have been done, suppose support activities, what you have done, inventory of WIP, and taken to another unit, what is your goods there, finished. So, after finis It is not So, this can be in a small business, but the organized businesses, it will not be Okay, so what you have to do, what you have to do in warehouse, you have to transfer, finished goods. Then we will talk about physical distribution performance cycle, okay. So, it is also called as outbound or downstream, t It includes all the steps to distribute the goods from manufacturers warehouse, manufacturer warehouse, I mean, see, we talked about manufacturing support performance cycle, the last step was transfer of finished goods. We transferred finished goods to warehouse, that was manufacturer's warehouse, to customers warehouse, okay, transfer to customer warehouse. What is t Now, what is actually, first order placement by the customer, what does customer do, order, place, then, where does that order go, order transmission to distribution center, distribution center, where the house is, where the distribution center is, okay, what happens from there, what happens to the customer, order, then order selection, what happens to customer, 2, 3, 3, 5, 6, order, 1, 7, or 1, order, it gives different varieties, okay, so, what does order selection do, what is customer customization, what is customer, whatever order they give, what do they do, select, okay, they mark it, that t