Logistics Management, Milk Run Logistics, Milk Run System, Logistics Systems, Logistics Company

Why Logistics should be built?


- The shortest and repeatable time for Logistics operation.

- Line side space reduction with high frequentcy and Small lot size supply.

- Flexible Logistics can follow high production volume and cycle time changing.

Example ER Diagram Of Inventory Management System Download

ER Diagram Of Inventory Management System depicts the major concepts and relationships needed for managing inventory resources. It is neither a complete data model depicting every necessary relational database table, nor is it meant to be a proscriptive design for implementations of resource management systems.
Er Diagram Of Inventory Management System

Alternate models may capture the necessary attributes to relationships and represent the schemas or the overall organization of the system. In order to begin constructing the basic model, the modeler must analyze the information gathered during the requirement analysis for the purpose of :
• Classifying data objects as either entities or attributes,
• Identifying and defining relationships between entities,
• Naming and defining identified entities, attributes, and relationships,
• Documenting this information in the data document.
• Finally draw its ER diagram.
Er Diagram Of Inventory Management System

An entity is an object (generally correspond to persons, objects, group, locations, place, events, an activity, etc. Examples are employee, vendor, supplier, materials, warehouse, delivery, etc.) about which data is stored. An occurrence is a single instance of an entity; for example, a particular 19-inch color TV set is a single occurrence of the entity called Inventory.  An attribute is a property of an entity; for example, such attributes as stock number, description, and stock on hand might be associated with Inventory. Generally, the same set of attributes is associated with each occurrence of an entity, so every part in Inventory can be expected to have a stock number, a description, and a stock on hand. The set of attributes associated with an entity can be visualized as a table or a record : It represents a collection of objects or things in the real world whose individual members or instances have the following characteristics :
1. Each can be identified uniquely in some fashion.
2. Each plays a necessary role in the system we are building.
3. Each can be described by one or more data elements (attributes).
Er Diagram Of Inventory Management System

There is one possible source of confusion about the ER Diagram Of Inventory Management System that might need clarification. A specific 19-inch color TV set is an example of a single occurrence of that entity, but Inventory might hold 100 or more virtually identical TV sets. For Inventory control purposes, tracking TV sets (a class of occurrences) is probably good enough. However, a Customer purchases a specific TV set (identified, perhaps, by concatenating the serial number to the stock number). Thus a given Item sold lists one and only one occurrence of Inventory.
Entity keys are used to uniquely identify instances of entities. Attributes having unique values are called candidate keys and one of them is designated as primary key. The domains of the attributes should be pre-defined. If 'name' is an attribute of an entity, then its domain is the set of strings of alphabets of predefined length.
Er Diagram Of Inventory Management System

There are five types of entities for ER Diagram Of Inventory Management System
1. Fundamental entity: It does not depend on any other entity for its existence. For e.g. materials
2. Subordinate entity: It depends on another entity for its existance. For example, in an inventory management system, purchase order can be an entity and it will depend on materials being procured. Similarly invoices will depend on purchase orders.
3. Associative entity: It depends on two or more entities for its existence. For example, student grades will depend on the student and the course.
4. Generalisation entity: It encapsulates common characteristics of many subordinate entities. For example, a four wheeler is a type of vehicle. A truck is a type of four wheeler .
5. Aggregation entity: It consists of or an aggregation of other entities. For example, a car consists of engine, chasis, gear box, etc. A vehicle can also be regarded as an aggregation entity, because a vehicle can be regarded as an aggregation of many parts.
Er Diagram Of Inventory Management System

Logically, the relationship can be stated in the form of a sentence with a verb linking the two entities; for example, Sales transactions are composed of Products or Products make up Sales transactions. The act of creating such sentences is a good test of the relationship’s validity; if you can’t express the link, it might not exist. In most cases where the relationship is unclear, the sentence might be written alongside the relationship line.
*The Entity Relationship (ER) Model, proposed by Peter Chen in 1976, has been proven to be one of the most popular and powerful tools to do enterprise data modeling, serving as the blueprint of the database, shows graphically the business model of the enterprise.

Free download DFD Diagram for Inventory Management System

DFD Diagram for Inventory Management System

The  DFD Diagram for Inventory Management System is a data flow diagram of graphical representation and commonly used also for the visualization of structured design data processing through an information system, it’s an important technique for modeling process aspects with a system’s high-level detail by showing what kinds of data will be/how to input and output from the system, where the data will come from and go to by sequentially, and where the data result will be stored through functional transformations. But It doesn’t show the timing information or the information of whether processes can be operated in sequence or in parallel (show on flowchart). Often they are a preliminary step used to create an overview of the system which can later be elaborated.
DFD Diagram for Inventory Management System

Why DFD are useful?
A data flow diagrams is one of the three essential perspectives of Structured Systems Analysis and Design Method (SSADM). It is common practice to draw the DFD Diagram for Inventory Management by Designer typically drawing interaction between the system and the outside entities which act as data sources and data sinks. In this method, both the project sponsors and the end users need to collaborate closely throughout the whole stages of the evolution of the system.
DFD Diagram for Inventory Management System

Then this context level DFD will then be exploded in order to further show the details of system being modeled. Data flow diagrams are the method of choice over technical descriptions for three principle reasons.
1. Are easier to understand by technical and non-technical audiences
2. Can provide a high level system overview, complete with boundaries and connections to other systems
3. Can provide a detailed representation of system components.
A data flow diagram represents the following:
3.1 External devices sending and receiving data
3.2 Processes that change that data
3.3 Data flows themselves
3.4 Data storage locations
DFD Diagram for Inventory Management System

Diagram for Inventory Management System reveal relationships among the business processes within an organization to external systems, external organizations, customers, other business processes and between the various components in a program. consists of four major components: External Entities/Terminators, processes, data stores and data flows.
- External Entities / Terminators - These refer or points to the outside parts of the system being developed or modeled. Terminators, depending on whether data flows into or from the system, are often called sinks or sources. They represent the information as wherever it comes from or where it goes.
- Processes – The Processes component modifies the inputs and corresponding outputs.
- Data Stores – refers to any place or area or storage where data will be placed whether temporarily or permanently.
- Data Flows – refers to the way data will be transferred from one terminator to another, or through processes and data stores.
DFD Diagram for Inventory Management System

Data flow diagrams have replaced flowcharts and pseudo code as the tool of choice for showing program design. A DFD illustrates those functions that must be performed in a program as well as the data that the function will need. In spite of its strength, the beauty of Data flow diagram lies on its dependence upon just four symbols to express program design. As a general rules, every page in a DFD should not contain more than 10 components. So, if there are more than 10 components in one processes, one or more components should have to be combined and then make another DFD to detail the combination in another page.

Toyota Logistics Milk Run System

MILK RUN SYSTEM is the external logistics improvement "Method supply of local parts from many suppliers to toyota" as the concept of TPS(Toyota production system) law
1.Cyclic Rotation
2.Short Lead Time
3.High cubic efficiency
4.Flexible to changes

merit are ;
1.Able to high delivery frequently > Low inventory level
2.Short lead time
3.High cubic efficiency
4.Flexible to change logistics route according with volume changing

Role and Responsibility ;
Toyota Logistics Milk Run SystemToyota (User)
1) Parts volume procurement
2) Parts list confirmation
3) Usage per day calculation
4) Kanban ordering
5) To design route diagram
Logistics partner/third party logistics (Transporter)
1) Cross check part list data
2) Truck & driver preparation
3) Driver check sheet print out
4) Control transportation problem by follow Toyota
Supplier (Part maker)
1) Produce parts follow Toyota’s order (with kanban system)
2) Part arranging

When will route change?
1) Production volume (Normally in monthly basis)-Especially during Takt time change, Minor change, Model change,etc.
2) Additional new suppliers
3) Cutting suppliers
4) Overtime happening
5) Abnormal case-More extra truck, Over weight on truck, Traffic way changing,etc.
How to confirm route data?
1) Supplier Meeting --> Cycle time and Pick up time are mainly issue to discuss
2) Letter and call to confirm
    -->Attachment the route data paper as follow
       -Part pick up time confirmation
       -Operation Kaizen

Conclusion merit of TOYOTA MILK RUN SYSTEM ;
1) TO INCREASE DELIVERY FREQUENCY
2) TO REDUCE PARTS UNLOADING LEAD TIME
3) TO MAXIMIZE TRUCK SPACE UTILIZATION
4) TO BALANCE SUPPLIERS’S DELIVERY  TIME
5) TO REDUCE TRANSPORTATION COST

"Toyota Logistics Milk Run System"

Logistics Definition

The purpose of  Logistics management is to produce the finish goods as customer required at the shortest time,at the lowest cost and the highest quality. From Logistics point of view "Stable & Flexible" Logistics can follow Real market damand basis production.In other words, Cyclic, Small lot, Flexible for Manpower supply (to compact production line), so this content will explain the Logistics Definition

Logistics Definition,Global LogisticsWhy logistics should be built?
- The shortest and repeatable time logistics operation.
- Line side space reduction with High frequentcy and Small size lot supply.
- Flexible logistics can follow high production volume and cycle time changing.

Logistics management necessary to be built for control the flow of  material, goods, information and other resources with cyclic between the source of production and the source of consumption in order to respond the requirements of customers. Logistics include the compost of inventory control, information flow, transportation cost reduction,  warehouse management, material handling, and package design, and involve security. Logistics is a channel of the supply chain that adds the value of time and place utility. The main point of Logistics management should be modeled, analyzed, visualized and optimized by company/factory simulation.

Logistics is everything to do with how to manage, control and transport goods, information, and services starting from the very beginning of the supply chain right through to the very end in order to serves consumers’ demand. The management of Logistics consists of the combination of information flow, transportation, warehousing, keeping inventory, packaging and the handling of materials. Presently, Logistics has been embedded into every type of businesses, from the largest corporations down to the smallest corner shops on your street. One can easily assume that no business can run without some use of Logistics.

However, the cost of the operation of Logistics and supply chain management has been the foremost issue for many. The question remains, how can one keep the cost of Logistics as low as possible in order to make the products and services more affordable and to increase one’s profit margin? To solve this dilemma, one needs to be careful at planning, controlling, managing and organizing one’s Logistics and supply chain department. It is common nowadays for many companies to outsource many of the tasks traditionally preformed by this department due to the fact that it is more cost effective and efficient. If we talk about the flow of goods with in Thailand, there are 3 types of Logistics that we focus on; import, export and inland Logistics. Many would argue that the most important type of business that should be encouraged is the export business. However, the flow of goods and services coming into Thailand, especially from the U.S.A. and Europe are moving in the opposite direction. Thai Exports are becoming more expensive while imports are becoming much cheaper nowadays. It is encouraging importing goods and services and discouraging export businesses.
I hope this content can make you more understanding in Logistics Definition

Analysis The Value Chain Porter Model Example

The Value Chain Porter is a methodology of separating a business system into a series of value generating activities that develop competitive advantage, and it can analysis describes the activities the organization performs and links them to the organizations competitive position.
The Value Chain Porter
What is the Value Chain Porter merit :
1. Helps an organization identify how it creates value for customers and locate where its sources of competitive advantage lie.
2. Can be created in both qualitative and quantitative forms.
3. Many organizations do not consciously make decisions to optimize the sources of advantage resident in their value chain and in so doing, risk losing competitive advantage.
Michael Porter introduced a generic value chain model that comprises a sequence of activities found to be common to a wide range of firms. (Developed in the early 1985 by Harvard Business School Professor Michael Porter in his book "Competitive Advantage: Creating and Sustaining superior Performance")
The Value Chain Porter

Most mangers know that their organization’s value chain represents the sequence of activities necessary to create a product or service, produce or deliver it, market and sell it to customers, distribute or provide it to those customers while ensuring necessary post sales service is completed. They also know that internal firm infrastructure activities such as human capital development or procurement support the main stages in the value chain. What managers sometimes aren’t as knowledgeable of is the fact that the value chain within a firm or industry is actually comprised of a very specific model of performance that depicts the discrete stages of organizational value creation.  Further, they don’t always use the model to compare and contract activities across firms for the purpose of determining where competitive advantages lie.

Profit Margin:
Depends on the Effectiveness in performing these Supporting Activities “Efficiently"
- Revenues (customer is willing to pay for the products) must exceed the cost of the activities in the value chain.
Generate Superior Value: A competitive advantage may be achieved by reconfiguring the value chain to provide lower cost or better differentiation.

Use the value chain model to define a firm's core competencies and the activities in which it can pursue a competitive advantage:
• Cost advantage: Better understanding and reducing costs
• Differentiation: Focus on those activities associated with core competencies and capabilities
Cost Advantage and the Value Chain Porter
1- reduce the cost of individual value chain activities
2- reconfigure the value chain.
A- Define the value chain is define via a cost analysis, by assigning costs to the value chain activities.
B- Accounting reports are studied in order to modify or reallocate costs and produce value creating activities.
The Value Chain Porter
1- Reduce the cost of individual value chain activities
Porter identified 10 cost drivers related to value chain activities:
• Economies of scale
• Learning
• Capacity utilization
• Linkages among activities
• Interrelationships among business units
• Degree of vertical integration
• Timing of market entry
• Firm's policy of cost or differentiation
• Geographic location
• Institutional factors (regulation, union activity, taxes, etc.)
NOTE:
1- A firm develops a cost advantage by controlling these drivers better than do the competitors.
2- Reconfigure the value chain.
Structural changes - such a new production process, new distribution channels, or a different sales approach.

*Goal : offer the customer a level of value that exceeds the cost of the activities, resulting in a profit margin. The term “Margin” implies that organizations realize a profit margin that depends on their ability to manage the linkages between all activities in the value chain Porter. In other words, the organization is able to deliver a product / service for which the customer is willing to pay more than the sum of the costs of all activities in the value chain.
The Value Chain Porter

The model can and should be reconfigured to account for activities specific to the industry in which the firm competes. For example, in a service industry - such as professional services - inbound logistics might be replaced with methodology development or client acquisition. Regardless of industry however, the value chain Porter is a powerful framework for analyzing both industry and firm specific activities.

Main Components of a Business Plan

What is a Business Plan?
Main Components of a Business Plan Businesses have to make future plans in order to develop a strong and efficient business structure to cope with changes and market groups that can fluctuate any time. Gathering information and data with the help of useful resources and past collections of customer information will help businesses plan further their next step of process. Businesses need business plans to make sure everything will be done correctly and accurately on time. Since time is money for businesses, they have to make sure everything will be done on time, not exceeding the time limit. For new businesses or start ups, they have to make and create a good business plan that contains all information that are needed and are true. Businesses make business plans to remind themselves of goals they have to achieve and the amount of expenses they will have to use to make or create something. With a business hand, neatly made in hand, businesses can allocate resources and predict future plans and actions that can be beneficial to a business. Also, with a business plan, a business can predict actions and alternatives that might be harmful to a business. In order to prevent harmful defections, a business has to write and add essential information into a business plan to ensure safety both to itself, workers, and customers. People might believe business plans are only for startups; however, business plans are very healthy and helpful for running businesses. Whether or not a business needs investment or loans, it is vital and critical for businesses to prepare a business plan, always. According to priorities, businesses can grow and develop themselves through optimized plans. Major questions are “Is there a standard business plan?” Well, the real answer is “It depends.” Plans must have basic components that will later be provided below. However, situations of different businesses can result in different plans.

Main Components of a Business Plan
Main Components of a Business Plan

Main Components of a Business Plan
A business plan has standards and main components. The main components of a business plan are executive summary, business overview, operation overview, market analysis, products and services, sales and marketing, management team, competitive analysis, financial plans, and projections. All of the components make up a good business plan which will further project and predict a business’s future progress. There are two types of business plans, brick and mortar business plan and home-based business plan. The two have different uses and objectives. From their names, it is obvious that brick and mortar business plans are generally for businesses that operate in places and locations while home-based business plans are for businesses done at home that usually needs detailed information and data analysis.

Main Components of a Business Plan An executive summary contains an overview look of a business. Its products, aims, objectives, features, and other essential information like staffs can also be included. However, an executive should not be too long to make things boring. For an overview of a business, it is important to focus products and services as well as their features. First, describe mainly what a business is about, what it is selling, and what the objectives are. Operation overview is simply just an overview of how things are done in a business. Production plans and operation plans can be included in this section. Market analysis is very important in a business plan as well. Market analysis includes expected target groups and market groups in the market. In this section, it is important to jot down and point out all data and information about customers and buyers. The market size, growth rate, market profitability, industry cost structure, market trends, and distribution channels are main components of a market analysis. Products and services have to be explained in detail in a business plan. Since products and services are what businesses sell, they have to make sure what they write down is true and that the information entered should be persuasive and beneficial. Sales and marketing is also an important section in a business plan. This section has to include information about expected or predicted sales and real amount of sales in a yearly basis. Management team refers to staffs, employees, and administrators. In a business, it is important to give credits to those who are responsible in working different jobs. Employees, managers, workers, and administrators are important and all businesses need them to be successful. Human resources are one of the most important factors in business. Without human resources, operations and progresses would not be made. Machinery cannot work unless humans control them and tell them what to do. Competitive analysis includes brief information about competitors in a current market. Financial plans include information about expected sales and money needed to go to the expenses list. Projections are of course predictions of actions and plans that will lead a business to success.
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Advertising Methods in e-Business / e-Commerce

Advertising Methods e-Business e-Commerce
Businesses and people change as the world we live in changes. Just like climate changes and weather forecasts, businesses have to cope with vast cultural differences of market and target groups as well as meet the wants and needs of people and their target. To promote themselves and make themselves known to the real world, businesses need to advertise themselves through many ways.  As the world changes, more generations seem to appear and make more changes to our beloved earth. As more changes come in, people have to adapt to several changes, otherwise things will tend to be old-fashioned, they say. Businesses have to adapt to many changes; they must have a great ability to fluctuate and they must be very flexible so that adaptation and movement will be easy. In our real world today, media has played a very important role and has become supremely essential for daily lives. Advertisement methods and styles changed as people and their lifestyles change. There are several types of advertisement methods that are well-known and are in use today. With the use of computers, the internet explorer, television, and radios people can enjoy themselves and businesses can use this great medium and opportunity as their way to communicate to billions of people all at the same time.
Advertising Methods e-Business e-Commerce There are many types of modern advertisement methods used by many businesses. The following are the main types:
1. Web banner advertising
2. Bandwagon advertising
3. Promotional advertising
4. Testimonials and endorsements
5. Surrogate Pixel Contextual Keyword
6. Blog advertising
7. Bathroom advertising
8. Mobile advertising
9. Public Relations advertising
Advertising Methods e-Business e-Commerce With the use of computers and the internet, people find great opportunities to shop and do businesses online. More banks operate online and offer various types commercial accounts to support online shopping and e-commerce. With this great opportunity, businesses use the internet and websites as a good medium of advertisement. We banners are usually pasted on websites. They are advertising strips that are designed by graphic web designers and usually come in vertical or horizontal strips. The bandwagon advertising technique is simply in need of propaganda skills. Bandwagon advertising generally focuses on groups or target and manages to bring them all to be obsessed with a single brand. Whatever the product comes out to be like, a brand will bring customers no matter what. Promotional advertising is a technique and a style of advertisement that may costs a lot. This advertisement style uses promotions, freebies, giveaways, and test products to bring customers in. This way, customers can make sure they like the products before purchasing one. Testimonials and endorsements play major roles in advertising and in media as well. Choosing hot celebrities and famous known actors, actresses, and singers can increase the will to purchase products. Popularity plays major roles in businesses today. For instance, a business tries to sell soft drinks. Choosing David Backham, a great football player would be fine choices to draw many customers that are fans of Beckham in. However, in order to select a matching celebrity with a specific product, it is important to observe similarities between them or personalities that will be related to a specific product.  Surrogate advertising is another way of advertising products that are not environmentally healthy. Products like cigarettes, alcohol, and vodkas are not promoted publicly. Instead, businesses have decided to make their brand popular and well-known through big posters and symbols of their product without naming or describing their products. Just by looking at their symbol, everyone knows what they’re selling. Pixel advertising is a modern type of advertisement method that takes up space in websites. Unlike banner ads, their costs are usually higher because the amount of space and pixels they occupy will be calculated and charged. Usually, starting rate is about $1 per pixel, which is considered extremely small when it is placed in a webpage.
Advertising Methods e-Business e-Commerce
Contextual advertising is an advertising venture that allows businesses to advertise their products through the internet. At sides of the screen of websites, it is often seen that many advertisements were placed. Often, these advertisements pay money to a business that hosts up this advertising venture to allow businesses to post their ad words and advertisements. In search engines, these advertisements usually appear on the right hand side of the page. Pay per click or keyword advertising is also a good advertising style that brings customer in through clicking or searching up keyword that matches a product. Blog advertising is the use of blogs to sell or advertise products or services. Mobile advertising or cell phone advertising is the use of messages and inboxes to advertise products or services that will reach customers directly. The last but the most common type of advertising method is public relations advertising. With uses of new technology and a mixture of media, public relations can communicate directly to customers within seconds.
Advertising Methods e-Business e-Commerce