- Everything we do in a supply chain is a process.
Automation can improve supply chain processes
by replacing people with machines.
Let's break down some of the common ways
to analyze supply chain processes
and find the best opportunities for automation.
Many companies use a tool called
the Supply Chain Operations Reference Model
to organize their supply chain processes
into six categories: plan, source, make,
deliver, return, and enable.
Every process is made up of tasks.
Identifying what those tasks are
is called process mapping or process modeling.
The simplest approach to process mapping
is to simply list the steps that we follow.
In a business environment,
you may hear these called standard operating procedures,
or SOPs for short.
In organizations that use Lean,
they're called standard work.
For more complex processes,
we often use a graphical tool called a flowchart.
The shapes in a flowchart
illustrate what happens in each step.
For example, an oval means the beginning
or the end of a process,
a rectangle represents a task or an operation,
and a diamond means a choice or a decision point.
There are several different kinds of flowcharts
that can be useful in supply chains.
For showing the processes inside of computer software,
we often use a type of flowchart
called an activity diagram.
Activity diagrams are based on a modeling technique
called unified modeling language, or UML.
Sometimes, we need to describe cross-functional processes
and show where handoffs occur
between different people, teams, and systems.
To illustrate these, we use a cross-functional flowchart,
or a swim lane diagram.
With these diagrams, the columns or rows
show who needs to complete each step.
Companies that use Lean often map their processes
using a technique called value stream mapping.
A VSM is similar to a flowchart,
but it also includes information
about the volume of material flowing through a process
and the time required for each step.
To learn how to create a VSM with Excel,
check out out Curt Frye's course.
Now that we've covered process mapping,
let's talk about automation.
Within a supply chain process,
there are basically two kinds of tasks,
physical tasks and information tasks.
Both kinds of tasks can be automated.
Physical tasks are activities
like a assembling, packaging, and transporting products.
Information tasks are things like entering data,
extracting data, and making decisions.
We automate physical tasks using machinery and robots.
Stationary robots perform a task in a fixed location.
Mobile robots do tasks that involve moving around.
Some robots are designed to work autonomously on their own.
For example, many distribution centers
now use autonomous mobile robots to move boxes,
but some robots are designed to work
in collaboration with humans.
These are called cobots.
We automate information tasks using artificial intelligence.
A good example of this
is software that can be trained to do data entry tasks
often just by observing humans doing those tasks.
This is called robotic process automation, or RPA.
Dr. Deming said that, "If you can't describe
"what you're doing as a process,
"you don't know what you're doing."
Understanding process flows and process mapping
is critical to leading digital transformation.
Once we can clearly describe a process,
it's much easier to choose the right automation tools
to perform the physical and the information tasks
that are key to making improvements in our supply chain.