CIPS Level 6 Supply Network Design (L6M9)
The CIPS Level 6 unit on Supply Network Design (L6M9) focuses on developing a strategic understanding of procurement and supply chain functions. This unit enables learners to analyze how supply networks are structured, how strategic supply chain configurations impact businesses, and the role of operations strategy in enhancing competitive advantage. It also emphasizes resource planning, control mechanisms, and supply chain decision-making strategies.
This unit is essential for procurement professionals aiming to optimize supply networks, integrate strategic planning, and drive business success. Through structured learning, professionals will develop leadership skills to apply best practices in supply network design and operations management.
Unit Objectives
The key objectives of the CIPS Level 6 Supply Network Design (L6M9) unit are:
- To provide a strategic understanding of supply network design and its influence on procurement and supply chain functions.
- To equip learners with the ability to assess and implement supply network strategies for business efficiency and competitiveness.
- To enhance decision-making in procurement and supply chain management by evaluating capacity planning, outsourcing, and operational strategies.
- To develop expertise in resource planning, monitoring, and control methods for effective supply chain performance.
Learning Outcomes
The significant learning outcomes of the unit CIPS Level 6 Supply Network Design (L6M9) are demonstrated below:
LO1: Understand and apply leadership skills and behaviours that are appropriate for strategically improving the procurement and supply chain function
This learning outcome focuses on supply network design and its influence on organisational strategy. Learners will explore supply network structures, terminology, and logistical impacts, including the role of capacity and resources in enhancing competitive advantage. The outcome also covers the configuration of strategic supply chains, addressing key decisions such as make or buy, insourcing vs. outsourcing, and vertical integration. Additionally, learners will examine how capacity planning affects supply chain design, including leading and lagging strategies, inventory smoothing, and break-even analysis for expansion. By mastering this learning outcome, learners will develop strategic leadership skills to optimise supply network design for operational efficiency.
LO2: Understand operations strategy and its contribution to overall business success
Learners will explore the role of operations strategy and its alignment with business objectives, market demands, and resource availability. This learning outcome includes evaluating the 4-stage model of operations strategy and key performance objectives such as quality, speed, dependability, flexibility, and cost. Additionally, learners will assess the role of continuous improvement, focusing on efficiency, effectiveness, and overcoming trade-offs in operations strategy. By attaining this learning outcome, learners will be able to develop and implement operations strategies that drive competitive advantage and long-term business success.
LO3: Assess the strategic value of resource planning and control
This learning outcome focuses on strategic resource planning and control, including customer demand forecasting, capacity management, resource prioritisation, scheduling, and data-driven decision-making. Learners will evaluate the key components of a resource planning system, such as loading, sequencing, scheduling, monitoring, and control mechanisms. Additionally, the outcome covers methods for monitoring and controlling strategic operations, including push and pull systems, Theory of Constraints (TOC), MRP/MRP II, and web-integrated ERP systems. By achieving this outcome, learners will develop the ability to optimise resource allocation and ensure effective supply chain control, leading to enhanced operational efficiency and responsiveness.
Assessment Criteria
The assessment for this unit will be based on the above learning outcomes, ensuring that learners demonstrate their ability to:
- Analyze and apply supply network design principles.
- Evaluate operations strategy and its role in business success.
- Strategically plan and control supply chain resources.
- Compare and assess monitoring and control mechanisms in supply chain operations.
1.0 Understand and apply leadership skills and behaviours that are appropriate for strategically improving the procurement and supply chain function
1.1 Assess the meaning of supply network design and the influence that it has on the organisation
- Definition and significance of supply network design.
- Key supply network terminologies and structures.
- Comparison of supply network vs. supply chain.
- The impact of logistics and operational locations within the supply network.
- The influence of capacity and resources on supply network efficiency.
- Competitive advantage and value-adding processes in supply networks.
1.2 Evaluate how a strategic supply chain network should be configured
- The impact of the internet on supply chains, including ‘disintermediation.’
- Understanding the value net and its four key players: suppliers, customers, competitors, and complementors.
- Key strategic decisions in supply networks, including:
- Make or buy analysis.
- Insource vs. outsource considerations.
- Vertical integration.
- Outsourcing and offshoring strategies.
1.3 Assess the influence of capacity on strategic supply chain design
- Understanding optimum capacity in supply chain operations.
- Comparison of large vs. small capacity and their advantages and disadvantages.
- The importance of timing in capacity changes.
- Capacity increments and their strategic management:
- Capacity leading and lagging strategies.
- Inventory ‘smoothing’ techniques.
- Break-even analysis for capacity expansion.
2.0 Understand operations strategy and its contribution to overall business success
2.1 Assess the meaning of operations strategy and the impact that it has on the organisation
- Definition and importance of operations strategy.
- Identifying whether an organisation has an effective operations strategy.
- Aligning operations strategy with overall business objectives.
- Ensuring alignment of operations strategy with market requirements and available resources.
- The contribution of operations strategy to competitive advantage and value addition.
2.2 Evaluate the key elements of an operations strategy
- Key components of an effective operations strategy:
- Clear vision and objectives.
- The four stages model of operations: internal neutrality, external neutrality, internally supportive, and externally supportive.
- Performance objectives including quality, speed, dependability, flexibility, and cost.
- Aligning strategic decisions with operational goals.
- Balancing capacity and resources with timescales and outputs.
2.3 Assess the role of improvement in operations strategy
- The significance of continuous improvement in operations.
- Key drivers for effectiveness and efficiency in operations.
- Enhancing operations by managing trade-offs between performance objectives.
- Understanding the trade-offs and the efficient frontier.
- Improving operational effectiveness by overcoming trade-offs.
3.0 Assess the strategic value of resource planning and control
3.1 Evaluate the concept of strategic resource planning and control
- Definition and importance of resource planning and control.
- Key influences on resource planning, such as:
- Translating customer needs into operational delivery.
- Customer expectation management.
- Forecasting, capacity planning, resource allocation, scheduling, monitoring, and control.
- Effective information and data gathering for decision-making.
3.2 Assess the key elements of a resource strategic planning and control system
- Core components of resource planning and control:
- Loading, prioritization, and sequencing.
- Scheduling, monitoring, and control.
- Decision-making mechanisms in resource planning:
- Role of planning and control staff.
- Information systems for planning and control.
- Customer and supply chain interface.
- Integration with other business functions.
3.3 Contrast methods of monitoring and controlling the strategic operation
- Challenges in controlling supply chain operations.
- Comparison of control methods, including:
- Push and pull strategies in supply chain management.
- Theory of Constraints (TOC), including bottlenecks, buffer stock, and rope mechanisms.
- Material Requirements Planning (MRP) and Manufacturing Resource Planning (MRP II).
- Web-integrated and supply network ERP systems for real-time monitoring.
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