Study Guide BLM401

Business Logistics and Management

FACULTY OF ENGINEERING AND INFORMATION TECHNOLOGY

Department of Civil Engineering ADV.DIP: LOGISTICS AND TRANSPORTATION MANAGEMENT

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BLM401 BUSINESS LOGISTICS AND MANAGEMENT

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LEARNING GUIDE

Study Guide BLM401

Business Logistics and Management

TABLE OF CONTENTS COURSE DETAILS

2

LEARNING ASSUMED TO BE IN PLACE

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LEARNING OUTCOMES FOR THE COURSE

2

BRIEF DESCRIPTION OF CONTENT

4

CRITICAL OUTCOMES

4

LECTURES

5

ASSESSMENT CRITERIA

5

ASSESSMENT METHODS

6

IMPORTANT NOTICE

7

STATEMENT ON ACADEMIC INTEGRITY

9

PRESCRIBED TEXTBOOKS (COMPULSORY READING LIST)

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IMPORTANT DATES AND ACTIVITIES

10

SYLLABUS

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LEARNING UNIT 1: Overview of the Supply Chain Management Process

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LEARNING UNIT 2: Transportation and Assignment Problems

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LEARNING UNIT 3: Introduction to Business Logistics

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LEARNING UNIT 4: Competitive Advantage Created by Logistics

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LEARNING UNIT 5: Logistics and Supply Chain Strategy Planning

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LEARNING UNIT 6: Forecasting Supply Chain Requirements

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LEARNING UNIT 7: Procurement Management

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LEARNING UNIT 8: Inventory Management

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LEARNING UNIT 9: The Design of Storage and Handling Facilities LEARNING UNIT 10: The Transport System LEARNING UNIT 11: Controlling Logistics Performance

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23 Page

WORK PLAN

Study Guide BLM401

Course Name

Business Logistics and Management

COURSE DETAILS Business Logistics and Management

Course Code

BLM401

NQF Level

7

Programme Credits

Advanced Diploma: Logistics and Transportation Management 24

Notional Hours

240 Hours

Contact Hours

3.33 Hours per week

CLASS ATTENDANCE IS COMPULSORY LEARNING ASSUMED TO BE IN PLACE A. A formal qualification at NQF level 6 or RPL B. Computer literacy – ability to: 1. Use Microsoft Word and Excel 2. Search for information on the internet C. Basic numeric literacy skills in: 1. Statistics; and 2. Mathematics

LEARNING OUTCOMES FOR THE COURSE Explain the basic concepts underlying Business Logistics and Management



Contribute effectively in a Business Logistics and Management exercise within a business context



Support the implementation of a Business Logistics and Management exercise

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

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After completing this course learners will be able to:

Study Guide BLM401

Business Logistics and Management

CLASS ATTENDANCE IS COMPULSORY

CLASS ATTENDANCE IS COMPULSORY --------------------------------------CLASS ATTENDANCE REGISTER WILL BE KEPT ---------------------------------------

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IT IS EVERY STUDENT’S RESPONSIBILITY TO SIGN THE CLASS ATTENDANCE REGISTER

Study Guide BLM401

Business Logistics and Management

BRIEF DESCRIPTION OF CONTENT The module covers current issues in business logistics and focuses on co-ordinating logistics across supply chains. Logistics form a core part of operations management which includes the deployment and management of people and information. Therefore, the module also covers issues surrounding people and information insofar as they relate to logistics management. Mathematical tools are employed to bring precision to decision-making in this respect. The techniques we will study in this course have been applied successfully to an increasingly wide variety of complex problems in business, government, healthcare, education, and many other areas. Many such successful uses are discussed throughout this course. It is not enough, though, just to know the mathematics of how a particular quantitative technique works in Business Logistics and Management. You must also be familiar with the limitations, assumptions, and specific applicability of the technique. The successful use of quantitative techniques usually results in a solution that is timely, accurate, flexible, economical, reliable and easy to understand and use.

CRITICAL OUTCOMES After completing this course learners will be able to: 

Demonstrate integrated knowledge to manage logistical activities with a supply chain management perspective.



Apply basic qualitative and quantitative analysis techniques in logistic management processes.



Understand the importance of logistic systems in value creation.



Understand the need for quality supplier-customer relationship.



Make a critical evaluation of what logistic management techniques could be used in the business and when to call in a specialist and how the business could benefit from a quantitative analysis application.

LECTURES Lectures will not refer exclusively to the textbook material. Rather, they may cover similar concepts and approaches to logistics management using examples from the broader Operations Management/Operational Research literature. It is assumed that students have read the assigned readings before class therefore learners should always come to class prepared. Some examination questions will be drawn from the textbooks that will not be discussed at lectures.

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Success is only possible if learners approach their studies with commitment and diligence and should they not understand any part of the work, they should not be afraid to ask the facilitator for help. Learners should always bring the prescribed textbook and learning guide and workbook to class.

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In order to attain success in the subject, the learner’s own contribution is of vital importance. It is important that s/he realizes that it is their responsibility to prepare for classes and to initiate class discussions.

Study Guide BLM401

Business Logistics and Management

It is important learners attend lectures at all times. It is during this time that: 

The facilitator will highlight the key aspects of the work



Learner can ask relevant questions regarding the work.

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Learner can gain practical knowledge through the hands-on experience of the facilitator.

It is the responsibility of the learner to obtain relevant information from fellow learners about the work that was done in class should the learner fail to attend class. The learner is requested to be punctual to class. Cell phones must be switched off at all times. If any learner has particular issues regarding the lecturer or lectures, s/he should please discuss them with the lecturer in question first before bringing them to the Programme Head. The student can leave a message with the departmental secretary, if the facilitator cannot be reached immediately. Visits/telephone calls to the private home of the facilitator will NOT be tolerated. Consulting hours will be announced in class. The facilitator will not repeat lectures during consultation hours or lend notes or transparencies/slides to learners.

ASSESSMENT CRITERIA Students display knowledge and understanding of basic quantitative and qualitative analysis techniques and demonstrate the capability to effectively contribute in a logistic management exercise in a business context.

ASSESSMENT METHODS Assessment will be conducted according to any assessment method as approved by the department and the obtained marks may form part of the final mark. Assessment results will be made up of tests, assignments and practical. Evaluation criteria for assignments will be given to the learner in class The learner is required to study all the work as set out in the learning guide as well as additional material.

i. Tests Preliminary test dates and venues have been stated in the learning guide, but they are subject to change. Please pay attention in class to all the information that will be provided with regard to changes.

No excuse will be accepted for a class evaluation that was missed due to poor class attendance unless the learner can present a valid written reason within one week.

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The learner should ensure that the facilitator receives the valid reason on time. The facilitator will then advise the learner on what course of action to take.

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Should the learner miss a test it is his/her responsibility to inform the facilitator and bring a valid reason in writing within one week of writing the test.

Study Guide BLM401

Business Logistics and Management

ii. Assignments Assignments must be submitted on time, on the due date, at the arranged venue, unless the facilitator makes other arrangements. The facilitator accepts no responsibility for lost assignments. The learner must always keep a copy of every assignment that is submitted.

iii. Class activities and homework Class activities will be done during class times and the facilitator may take in the activity or part of the activity at the end of the session, for marking. Homework will be given to students and the facilitator may take in the homework at the beginning of the class session. The above is done to monitor the learner’s progress.

iv. Assessment Guidelines Evaluation tests and assignments will be set on a regular basis. Most assignments are done in Group Context: it is vital that you also focus on the assignments. Past experience has shown that well functioning groups achieve all round success, as they encourage and support the individual. v. Assessment Terminology Assessment will take two forms (a) Formative and (b) Summative. Formative assessment Formative assessment will be achieved as follows: 

Regular graded group assignments

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Class discussion and feedback on particular relevant topics

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Case studies

Summative assessment  Quarterly tests, covering the work done to date – see the work schedule for test dates and requirements 

Semester evaluation covering all the work for the semester.

A diagram of how to calculate your mark is as follows: Semester 1 Practical/Individual Assignments

Approx 50%

Approx 20%

Approx 30%

40%

Examinations

60%

7

Group Assignments

Page

Tests

Study Guide BLM401

Business Logistics and Management

Note 1: The percentage division between Tests and Assignments and Practical, may differ somewhat from the above, taking into cognisance some input/feedback from the learners, and interaction with the facilitator. A course of this nature should also be dynamic in its outcomes, presentation and business relevance Note 2: A learner must achieve a minimum of 50% in order to successfully complete the course.

IMPORTANT NOTICE As the Advanced Diploma in Logistics and Transport Management programme is a fourth year university level course students will be expected to produce work that reflects academic maturity. Therefore the following should be noted well:

1. Language usage, logic, academic maturity of arguments, insight, and technical outlay of work all count towards the mark you get.

2. It is a student’s responsibility to make assignments, tests and examinations scripts readable. Hand written assignments/projects will not be accepted. 3. Assignments not complying with criteria on assignment layouts will be

penalized up to 10 marks. (The criteria will be given to the learner during the course of the year). 4. Forged assignments will receive will receive zero mark. In the same vein plagiarized work will be penalized. 5. Faxed assignments will not be accepted. 6. Group work means just that. For that reason a minimum of three and a maximum of five makes a group. No deviations will be accepted. 7. Distance, work commitment or any other reason is unacceptable. 8. There is a clear institutional regulation regarding absence from class, examinations, and tests. No deviations from the established regulations will be granted. 9. Absence from class or test due to work commitment is undertaken at your own peril and no arrangements will be entertained because of it. 10. Application for extension must be done in writing before the assignments due

date. 11. The application must be accompanied by documentation of illness or other

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exceptional circumstances.

Study Guide BLM401

Business Logistics and Management

12. Granted extensions are only valid once the facilitator confirms it and the

learner has received notification thereof. 13. Make sure you acquaint yourself with the necessary University regulations to avoid inconveniencing yourself. 14. The Advanced Diploma in Logistics and Transportation Management programme at the CUT is a part-time contact programme and not distance learning programme (or correspondence course). Attendance therefore is compulsory. 15. It is your responsibility to ensure that your employer is aware of your schedules. 16. Late submission means no submission. You will be provided with assignment and test schedules. You must make your employers adhere to this and not the University adhering to your work schedule! 17. Due to the large class size, tests and assignments (both individual and group) may be entirely multiple-choice.

STATEMENT ON ACADEMIC INTEGRITY Academic dishonesty is a serious offence and any violation will not be tolerated in this course. The following examples are not exhaustive but describe CUT’s policies for what constitutes academic dishonesty and penalties thereof. It is your responsibility to know what constitutes a violation of academic integrity. Academic dishonesty as far as CUT is concerned includes, but is not limited to: signing an attendance sheet using somebody else’s name, allowing somebody to sign an attendance sheet in your name, cheating in examinations, plagiarizing, handing in papers that were downloaded from the internet, fabricating information or citations, facilitating acts of academic dishonesty by others, etc. The usual punishment for academic dishonesty ranges from deduction of marks to total expulsion from CUT.

PRESCRIBED TEXTBOOKS 1. Business Logistics Management: A Value Chain Perspective, 4th Edition by Pienaar W.J. and Vogt J.J.; ISBN 9780199057139, Oxford University Press Southern Africa 2. Quantitative Analysis for Management; 12th Edition: Render, B; Stair, M.R.; Hanna, M.E. - ISBN 9780137129904 Prentice Hall

Operations Management; 2nd Edition: Kruger, D; Ramphal, R – ISBN 9780195984474.

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Quantitative Methods for Business; 12th Edition: Anderson DR, Sweeney DJ, Williams TA, Camm JD & Martin K – ISBN 9781133584469, South-Western Cengage Learning

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Additional Textbooks: Theory

Study Guide BLM401

Business Logistics and Management

WHILE THE UTMOST CARE WAS TAKEN WHILE PLANNING AND COMPILING THIS LEARNING GUIDE, IT REMAINS SUBJECT TO CHANGE

IMPORTANT DATES AND ACTIVITIES Due dates

Assessment Type

Form of Assessment

Mark Allocation

21 – 24/03

Test 1

Class Test

25% of course mark

10% of final mark

18/04

Test 2

Class Test

25% of course mark

10% of final mark

29/08

Test 3

Class Test

25% of course mark

10% of final mark

26/09

Test 4

Class Test

25% of course mark

10% of final mark

22/05 – 04/06

1st Semester Exam

A formal 3-hour examination

100% of exam mark

60% of final mark

06/06 – 17/06

Sickness, Special and Supplementary Exams

A formal 3-hour examination

100% of exam mark

60% of final mark

As and when necessary

Group Assignments

Class and home work

24/03/2016

First quarter test marks entered into ITS system by faculties

13/05/2016

Second quarter test marks entered into ITS system by faculties

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PLEASE REFER TO TIME TABLE FOR LECTURE VENUES, TIMES, AND DAYS!!

Study Guide BLM401

Business Logistics and Management

SYLLABUS EXPECTED OUTCOMES

HOW DO YOU KNOW IF YOU HAVE ACHIEVED THE EXPECTED OUTCOME?

Practical Application

To understand:

The ability to:

Individual Practice

1. 2.

1.

Pages 183-184

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2.

3.

Learning Unit 1 Overview of the Supply Chain Management Process

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Explain what a supply chain is. Describe the role and importance of the supply chain. Understand what the management of the supply chain entails. Understand customer expectations in the SCM process

Reference: Operations nd Management, 2 Edition by Kruger D & Ramphal R – Oxford University of Press

See end of Chapter 7 of Kruger & Ramphal (2009) Individual Assessment None Group Assignment: Case study: To be confirmed in class

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3. 4.

Types of chain Various elements of supply chain management The need to manage supply chains Performance management of supply chains Customer needs in supply chain management

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TOPIC

Study Guide BLM401

Business Logistics and Management

CLASS ATTENDANCE IS COMPULSORY --------------------------------------CLASS ATTENDANCE REGISTER WILL BE KEPT ---------------------------------------

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IT IS EVERY STUDENT’S RESPONSIBILITY TO SIGN THE CLASS ATTENDANCE REGISTER

EXPECTED OUT-COMES

HOW DO YOU KNOW IF YOU HAVE ACHIEVED THE EXPECTED OUTCOME?

To have an understanding of the steps involved in using assignment and transportation models to solve Linear Programming (LP) problems.

Be able to describe: 1. Structure special LP problems using the transportation and assignment models 2. Use the northwest corner, VAM, MODI, and steppingstone methods 3. Solve facility location and other application problems with transportation models

Practical Application

Individual Practice P474 No’ 11 -14 Individual Assessment None

Group Assignment: To be decided

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Learning Unit 2 Transportation and Assignment Problems

TOPIC

Business Logistics and Management

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Study Guide BLM401

1. 2.

3. 4. 5.

Learning Unit 3 Introduction to Business Logistics

6.

7.

8.

Describe why there is need for logistics as a business system Explain the need for logistics management as a teaching discipline Describe the evolution of the concept of logistics Explain how logistics emerged in the context of business Describe the concepts of supply chain management, logistics management, the systems – or total-cost approach – and systems analysis Understand the difference between a logistics approach and a logistics system Describe what is meant by strategic, tactical and operational logistics management Give a brief account of the various activities of business logistics

Individual Practice P17 of Pienaar and Vogt (2014) End of Chapter Questions no. 1-8

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To understand what business logistics entails and distinguishes it from supply chain management.

Business Logistics and Management

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Study Guide BLM401

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2. 3.

Learning Unit 4 Competitive Advantage Created by Logistics

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TOPIC

5. 6.

EXPECTED OUT-COMES

Identify the ultimate goal and immediate objectives of the business logistics process Describe how value is created by logistics Understand the concepts of customer service, and consumer and user satisfaction Describe the most pertinent logistics performance determinants in the area of customer services Outline what competitive advantage means and how it can be achieved Describe logistics can help to create wealth within a business

HOW DO YOU KNOW IF YOU HAVE ACHIEVED THE EXPECTED OUTCOME?

Practice questions on pp. 32- 33 of Pienaar & Vogt (2014).

Practical Application

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Gain an understanding of how to logistics can be a tool for wealth creation in an organisation.

Business Logistics and Management

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Study Guide BLM401

1. 2. 3. 4.

5.

6. 7.

8. 9.

Learning Unit 6 Forecasting

Understand how to employ various models and tools to predict the outcomes of decisions.

1. 2.

3. 4. 5.

Understand what strategy means and how it applies to an organization Understand the importance and nature of strategic management Understand the cascading levels of strategies in an organization Understand how a logistics and supply chain strategy is derived from a business strategy Describe the major elements and processes involved in developing a logistics and supply chain strategy Identify logistics and supply chain strategic focus areas Know what the content of a supply chain strategy document should comprise and how to summarise it in a strategy map Understand the importance of correct strategy implementation Know how to use scorecard and action plans to drive implementation. Understand and know when to use various families of forecasting models. Compare moving averages, exponential smoothing, and other time-series models. Seasonally adjust data. Understand Delphi and other qualitative decision-making approaches. Compute a variety of error measures.

See end-of-chapter exercises on pp. 52-54 of Pienaar & Vogt (2014).

Students should practise questions on pp. 204 – 210 of Render et al (2012) and pp. 134-137 of Pienaar & Vogt (2014).

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Understand the steps involved in logistics and supply chain strategy planning

Business Logistics and Management

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Learning Unit 5 Logistics and Supply Chain Strategy Planning

Study Guide BLM401

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2.

Learning Unit 7 Procurement Management

3.

4. 5.

6.

7.

8.

Learning Unit 8 Inventory Management

9.

Appreciate what inventory management entails in order to be able to effectively plan, organise and control inventory systems

1. 2. 3. 4. 5. 6. 7. 8.

Explain the difference between purchasing in the narrow sense and procurement as a holistic process to support the operations of a business Define and describe the objectives of procurement management Discuss the strategic, tactical and operational roles of procurement in an inter-organisational and intraorganisational sense Describe the five principal steps of the procurement process Discuss the nature and classification of goods and services that businesses procure Give an account of the dimensions of the quality of physical products service delivery Discuss the procurement-related activities that can enhance supply chain success Outline the methods used to curb procurement expenditure Give an account of electronic procurement tools and supply a classification of electronic business-tobusiness marketplaces. Provide reasons why it is necessary to hold inventory Differentiate between the various types of inventory Explain some basic inventory concepts Identify inventory-ordering costs and inventory-carrying costs Determine a suitable carrying-cost percentage Set optimum inventory levels Describe contemporary inventory replenishment systems Perform effective inventory control.

Practice questions on pp. 215- 216 of Pienaar & Vogt (2014).

Practice questions on pp. 252- 255 of Pienaar & Vogt (2014).

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Understand procurement as a holistic process compared to purchasing.

Business Logistics and Management

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Study Guide BLM401

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2.

3. 4.

5. 6.

Understand the role of transport system and logistics management.

1. 2.

Learning Unit 10

The Transport System

3.

4.

5.

6.

7.

Learning Unit 11

Controlling Logistics Performance

Understand the processes involved in controlling logistics performance

1.

2. 3.

4. 5. 6.

Explain why it may become necessary to amend the design of an existing logistics facility Define the purpose of the facility and explain why understanding the initial requirements of the facility is important Realise the importance of planning for growth Realise the importance of operations and warehouse management systems in facility design Understand the factors affecting the size of a facility Explain how to use vertical space (height) to achieve cost-effective storage Explain the role of transport in the business logistics process Discuss the service characteristics of the basic modes of transport Identify the various components of the transport system and discuss the role(s) of each component Discuss the characteristics of goods, and explain the way in which each characteristic influences the transport cost of different groups of goods Identify the four types of service providers and discuss the functions of each Discuss the ways in which freight forwarders and freight transport brokers can add value in the logistics channel Discuss the various reasons why governments involve themselves in transport Understand why the planning and control of logistics activities is a cyclical process and not a once-off event Identify the ISO standards that are of importance in logistics management Differentiate between the different types of performance measures, and provide examples of performance measures that can be used to track processes in various functional areas of logistics Describe the steps involved in a benchmarking exercise Identify the supply chain operations reference involved in supply chains Understand the important role that business intelligence can play in supply chain management

Practice questions on pp. 271- 272 of Pienaar & Vogt (2014)

Practice questions on pp. 349- 350 of Pienaar & Vogt (2014)

Practice questions on pp. 484- 485 of Pienaar & Vogt (2014)

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Appreciate the important role that storage and handling facilities play in logistics management and understand what is involved in designing such facilities.

Business Logistics and Management

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Learning Unit 9

The Design of Storage and Handling Facilities

Study Guide BLM401

EXPECTED OUTCOMES

HOW DO YOU KNOW IF YOU HAVE ACHIEVED THE EXPECTED OUTCOME?

Practical Application

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TOPIC

Business Logistics and Management

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Study Guide BLM401

Study Guide BLM401

Business Logistics and Management

Work plan for the year SEMESTERS 1 & 2 – 2016

FACULTY OF MANAGEMENT SCIENCES PLANNING - 2016 WEEK

MONTH

DATE

DAYS

REMARKS

Introduction

1

Feb

01-05

5 days

2

Feb

0812

5 days

Learning unit 1

3

FEB

15 19

5 days

Learning unit 1

4

FEB

22 26

5 days

Learning unit 2

FEB/MAR

29 04

5 days

Learning unit 2

MAR

07 11

5 days

Learning unit 2

5

6

Study Guide BLM401

Business Logistics and Management

7

MARCH

14 18

5 days

Learning unit 2

8

MARCH

21 25

3 days

CLASS TEST (Test 1) 30 March - 06 April: Holidays

APRIL

04 08

4 days

Learning unit 3

10

APRIL

11 15

5 days

Learning unit 3

11

APRIL

18 22

5 days

CLASS TEST 2

12

APR/MAY

25 29

4 days

Learning unit 4

13

MAY

02 06

4 days

Learning unit 4

14

MAY

09 13

5 days

Learning Unit 4

15

May

16 20

5 days

REVISION

MAY/JUNE

22/05 – 04/06

3 weeks

Main Exam

JUNE

06 17

2 weeks

Sick/Special/Supplementary Exam

9

16

17

Study Guide BLM401

Business Logistics and Management 26 June - 17 July: Holidays

18

JULY

18 22

5 days

Learning Unit 5

19

JULY

25 29

5 days

Learning Unit 5

AUG

01 05

5 days

Learning Unit 6

AUG

08 12

4 days

22

AUG

15 19

5 days

Learning Unit 7

23

AUG

22 26

5 days

Learning Unit 8

24

AUG/SEP

29 02

5 days

CLASS TEST 3

25

SEP

05 09

5 days

Learning Unit 9

SEP

12 16

5 days

Learning Unit 10

SEP

19 23

5 days

SEP

26 30

5 days

20

21

26

27

28

Tuesday 9 August: Women’s Day Learning Unit 7

Learning Unit 10 SAT. 24 SEPT: HERITAGE DAY

CLASS TEST 4

Study Guide BLM401

Business Logistics and Management 3rd to 9th October: Third Term Recess

29

OCT

10 14

5 days

Learning Unit 11

30

OCT

17 21

5 days

REVISION

31

OCT/NOV

24

3 weeks

MAIN EXAM (OCT 24 to NOV 12)

NOV

14 25

2 weeks

SICKNESS, SPECIAL, AND REASSESSMENT

DEC

05 09

5 days

FOURTH QUARTER CONCLUDES