Scm And Erp Implementation At Nike Commerce Essay

Scm And Erp Implementation At Nike Commerce Essay Nike, Inc. is an incorporated company which designs, progresses and markets worldwide athletic, footwear, apparel, equipment and accessories. This company is a large publicly traded sportswear and equipment supplier which is based in United States. And it is the worlds leading supplier that supplies athletic shoes and apparel and it is a major manufacturer of sports equipment with revenue over $18.6 billion in year 2008. In that year Nike employed more than 30 000 people worldwide. [1] In 1964 the company started Blue Ribbon Sport which was founded by athlete Phil Knight and his coach Bill Bowerman. PRODUCTS Nike produces a wide range of products, such as shoes and apparel for sport activities like football, tennis, running, basketball, golf, combat sports, and American football for men, women and children. The first product of Nike was track running shoes which ware released by Nike in 1987. Some of the companys shoes reduce weight because they contain Fly wire and Linarite Foam. In 2010 Nike collection were worn by university teams like Miami, Alabama, Florida, Oregon, West Virginia, Pittsburgh etc. NIKES SUPPLY CHAIN MANAGEMENT Supply Chain Management or (SCM) is the management of the entire value-added chain, from the supplier to manufacturer right through to the retailer and the final customer. Three primary goals of SCM are: Reducing inventory, increasing the transaction speed by exchanging data in real-time and increasing sales by implementing customer requirements more efficiently. [3] Shortly, SCM is a business network converting from buying, making, moving, and warehousing to selling. The aim of Nike was to do their products different or unique from other shoe producers thats why the supply chain management of Nike focused on that by maintaining its relationship with its suppliers in order to be able to do its production process better. Nikes supply chain includes all the activities, such as goods and services from the raw material stage, assembly, manufacturers, warehouse, parts suppliers, and distribution to the end-user whose primary goal is to maximize the value and shareholder wealth of the company. Supply chain management brought certain benefits to the company. Costs from outsourcing allowed Nike to focus on its core competencies such as product design, marketing, and Air Sole technology. Relationship of company with its suppliers made it contingent for them to have better quality product with low costs through reduced administrative and payroll costs. Nikes variety of 860 suppliers let them flexibility, also allowed them faster service in cases of emergencies and quality standard. The technologies of Nike like transferring data, orders, communication via internet and databases let them perform and meet the demands of customers in a timely manner and at the same time allowed them to have a good inventory and monitoring control. Nikes supply chain was confronted with many obstacles. One of the reasons was an expensive implementation of technical components; another reason was having too many suppliers which can lead them losing control of inventory and operations management. A fault of some shoe parts suppliers can result delay in its supply chain process; non implementation of suppliers of Nikes can once again dispose of the public perception of the company and also trend forecasts and unstable economy may affect consumers need. I2 SOFTWARE IMPLEMENTATION In 1999, Nike Inc. decided to implement the first part of the supply chain strategy. So they decided for demand and supply chain planning application software from i2 technology. [4] The cost of this strategy was $40 million. The strategy of Nike using i2 software was to help the company to enable them resolve and detect any problems effectively, to perform effective business planning, and help them to match the supply with demand by mapping out the manufacturing of specific products. REASONS FOR I2S SOFTWARE FAILURE The failure was heart  when the company announced that they had profits of $97.4 million and this sum was 48 million below from their earlier forecast for the third quarter ended February 28, 2001.They also mentioned that this revenue short fall was caused from the supply chain software that was  installed form i2s Technologies. By the way this failure affected companys reputation as an innovative user of technology. Some problems that were caused from the i2 software were as follows: Integration: it couldnt integrate with SAP ERP, the integration was required to be with ERP, SCM and CRM but this didnt happen in i2 SCM that was working so isolated. Customization: there was a high customization demand forecast which caused system operations to be very slow. Deployment using legacy system: the complexity for entering input information by the lack of integration in several languages and also subsystems results in crashes, bugs, enormous delays. There was no realistic time of goals: because there was an extreme pressure In timelines , this result in low level of testing before going alive and may be pushing the probability of errors. And the following problems were that the software was giving inadequate information, the market condition begins to change and NCS project complication and as a result of all this review of meetings. After all this problems the Nike and the company that produced software were pointing finger at each other. Software Company said that they had some specific templates and methodology for use and we always recommend to our customers to follow them but Nike instead chose not to do that. Also she added that Nikes problem is isolated incident and the other 1000 companies are not in risk. IMPLEMENTING SAP AFS This time Nike decided to implement  specifically  developed software for  apparel and for footwear industry the software called AFS which was a variant of the SAP R/3. With the single  Instance Strategy, Nike begin using SAP AFS application across all the geographies where Nike is sold and ,on the other hand they also decided to chose to implement the other SAP applications which include  Supply Chain management (SCM) and Business Information warehouse which was considered a pilot test of SAP Net Weaver platform for the near future. The company thinks that the single Instance Strategy would result in better integration  and also  provide  a competitive edge by enabling holistic view of its business. BENEFITS Nike spent six years and $500 million on the project. In 2004 the 80% of the project was completed, and the company gained several benefits from the project. The benefits were dividing: better financial management improved their  Ã‚  revenue of  Ã‚  forecasting decreased the inventory level quick manufacturer and design process Direct Benefits: Better integration between departments Improved level of decision making Better visibility into costumer order transactions Non-quantifilable benefits CONCLUSION As  a conclusion we can say that every company leers by their mistakes even though this mistakes cost a lot.  As we discussed below one of the biggest mistake of the Nike was choosing a poor quality company that had never designed such big software and tried first time on Nike and when the problem occurred they werent able to accept their faults. By the way also we learned the importance of pilot test because of the pressure they couldnt test the software and they faced a problem such that  the lose was felt 9 months in the company. There was a vision gap in the company, where the role of forecasting wasnt clearly defined and it had a hard influence on supply chain management. And finally if there existed any  experienced external consultant, both previous problems would  have been managed.

Organic Nomenclature and Functional Groups Essay

Learning how to name and draw the structure of the various compounds is the first step in learning to speak the language of organic chemistry. Chapter 1 presented organic chemistry as the chemistry of the carbon atom. However, many organic compounds contain other atoms besides carbon that contribute significantly to the physical and chemical properties of the compound. Chemists call these atoms heteroatoms, and the groups they form, functional groups. This chapter provides an overview of the rules for naming organic www. ochem4free. com 5 July 2005 Organic Chemistry – Ch 2 73 Daley & Daley compounds. It also introduces the major functional groups that you will encounter as you study organic chemistry along with the rules of how to name them and draw their structures. The presence of heteroatoms radically changes the physical and chemical properties of the compounds to which they are bonded. In fact, the carbon— heteroatom bonds and the carbon—carbon multiple bonds are the main sites where chemical reactions take place. Organic compounds are arranged into classes according to the particular functional groups that they contain. Members of each class of compounds share common chemical and physical characteristics. The names of organic compounds are assigned according to the class of the compound as determined by the functional groups. This chapter also shows how to draw the structural representations of these compounds. 2. 1 Drawing Organic Structures A two-dimensional structural formula of a hydrocarbon shows all of the atoms with all of their bonds in the plane of the page. Molecules are actual, three-dimensional entities. Their structure is a major factor that determines their physical properties and the way one molecule interacts with another molecule. These bonds are combinations of single bonds with hydrogen atoms and single or multiple bonds with other carbon atoms. For molecules that contain a large number of atoms or complex structures, drawing every bond and every atom is time and space consuming. A common notation developed to abbreviate the drawing without sacrificing the clarity of the structure is the condensed structural formula shown below for heptane: CH3 CH2 CH2 CH2 CH2 CH2 CH3 Heptane www. ochem4free. com 5 July 2005 Organic Chemistry – Ch 2 74 Daley & Daley Taking out the lines representing the carbon—carbon bonds condenses this formula still more: CH3CH2CH2CH2CH2CH2CH3 Heptane Heptane has five repeating —CH2— groups, called methylene groups. Because many organic molecules have such repetitive groups, an even more condensed notation shows these repeating units. Using this notation, the formula for heptane is as follows: CH3(CH2)5CH3 Heptane Bond-line formulas represent the carbon atoms as the intersection of lines and as line ends. You assume all the hydrogens needed to complete carbon’s valences. The bond-line structural formula is the notation that most organic chemists prefer to use. Bond-line formulas are easy to draw and quickly convey the essential structure of a molecule. Both the ends and the angles of the structure represent the carbon atoms. C—H bonds are not shown, but you should assume that the appropriate number of hydrogen atoms is present to complete the four bonds required by carbon to have its octet of electrons. The bond-line formula for heptane looks like this: Heptane Not all hydrocarbons are straight chains; many are rings. Chemists use the same structural formulas for them. Because the illustration of the two-dimensional structural formula of methylcyclopentane is so cluttered, it does not clearly show the ring. H H H C C H C C C H H CH HH H HH Methylcyclopentane The condensed structural formula is clearer. www. ochem4free. com 5 July 2005 Organic Chemistry – Ch 2 75 Daley & Daley CH2 CH2 CH CH2 CH3 CH2 Methylcyclopentane The bond-line structural formula is even clearer. Thus, chemists use it most frequently. Methylcyclopentane Often, chemists combine the bond-line and condensed notations to clarify a structure or emphasize specific features. This formula also represents methylcyclopentane. CH3 Methylcyclopentane Exercise 2. 1 Redraw each of the following condensed structural formulas using the bond-line notation.

Cost Volume Profit Essay

Some things we know: The objective of every business is to make money (profit) for the owners Profit = Revenues – Expenses Revenues = Sales = Quantity sold x price per unit Expenses = the costs related to: the specific revenue (COGS) or the specific accounting period Matching Principle Role of Management is: Planning, control and performance measurement, and decision-making Decision-making relates to future events and involves risk Full costing (full-absorption costing) is a good historical tool but may not Be the best indicator of future activity because it is based on past events. Cost Behavior Variable Costs – total dollars change with volume, Cost per unit is constant Fixed Costs – total dollars are constant, cost per unit changes with volume Mixed Costs – include some variable costs and some fixed costs Total Cost = Fixed Costs + Volume(variable cost per unit) Fixed Component Variable Component Purely Fixed $25,000$ 0 Purely Variable 0 5.00 per unit Mixed Costs 10,000 2.00 per unit Total Costs $35,000$7.00 per unit Graphing Total Costs X axis (horizontal/across) = volume Y axis (vertical/up & down) = dollars Estimating the Composition of Mixed Costs Account Analysis Scattergraph – Visual inspection of plotted points High-Low Estimation Theory: The change in total costs between the high volume point and The low volume point, must be purely variable costs Linear Regression (computer assisted scattergraph) Contribution Margin Income Statement Ignores the function of the expenses Focus is on cost behavior (fixed and variable) Used extensively in forecasting future potential outcomes (planning & decision making) Because Profit = Revenue – Expenses(Costs) Where: Revenue = Volume x price per unit AndTotal Costs = Fixed Cost + (Volume x Variable cost per unit) Therefore: Volume x price per unit Less Volume x variable cost per unit Less Fixed costs Profit Revenue Less Variable Costs CONTRIBUTION MARGIN Less Fixed Costs Pretax Profit KNOW THIS FORMULA FRONTWARDS AND BACKWARDS Margin of Safety = the difference between the expected level of volume and the break-even point (normally using sales dollars but could also use units sold). When comparing two or more alternatives it may be helpful to look at the Margin of Safety as a percentage of sales. Contribution Margin Ratio = CM per unit / Selling Price per unit OrContribution Margin / Sales Operating Leverage = Fixed Costs / Contribution Margin Or Contribution Margin/Pretax Profit Cost-Volume-Profit (CVP) Analysis Break-Even Point = the point at which profit = zero (i.e. we break even) = The point at which Contribution Margin = Fixed Costs Once we know the break-even point, we can begin to plan for target profit Target Pre Tax Profit versus Target After Tax Profit Pretax Profit$100 Less Tax Expense 40 After Tax or Net Profit$ 60 Effective Tax Rate = Tax Expense / Pretax Profit(40% above) Tax Expense = Pretax Profit x Effective Tax Rate Net Income = Pretax Profit x (1- effective tax rate) Pretax Profit = Net Profit / (1- effective tax rate) Multiple Product CVP Analysis Weighted-Average Contribution Margin (also referred to as blended average) PRODUCT MIX IS CRITICAL Product 1Product 2Total Units Sold10020 Selling Price$10.00$50.00 Variable Costs 5.00$30.00 Sales$1,000$1,000$2,000 Contribution Margin 500$ 400 900 CM Ratio 50% 40% 45% SO LONG AS THE PRODUCT MIX REMAINS AT 5:1 THE PROJECTED CM RATIO WILL STAY AT 45%. Therefore if sales are expected to be $20,000, AND WE SELL 5 of Product 1 for every 1 unit of Product 2, Contribution Margin should be $9,000 ($20,000 x 45%) However if sales of Product 1 are only $1,000 and the remaining $19,000 are sales of Product 2 the Contribution margin is only $8,100 and the CM Ratio drops to 40.5%. $ 1,000 x 50% = $ 500 plus$19,000 x 40% = $7,600 $20,000 $8,100 = 40.5% of sales or (1/20 x .50) + (19/20 x .40) .025 + .38 = 40.5% When computing the Weighted-Average Contribution Margin USE SALES DOLLARS as the weighing factor (NOT UNITS). Constraint = a limitation of resources To maximize profits given a limited resource, produce the product that generates the highest contribution margin per limited resource. This may not be the product with the highest contribution margin ratio. Illustration: A company manufactured two types of beer, premium and regular. Both types of beer are brewed in the same kettles. A regular batch brews for 15 days and yields 12,000 bottles. A premium batch brews for 30 days and yields 12,000 bottles. Regular beer sells for $1.00 per bottle and has variable costs of $0.40 per bottle. The premium sell for $1.50 per bottle and has variable costs of $0.50 per bottle. Assuming unlimited demand of both products, which product should the company brew? PremiumRegular Per Batch: Sales$15,000$12,000 CM$12,000$ 7,200 CM % 66.67% 60.00% CM per Limited Resource (Days) CM$12,000$ 7,200 Divided by days 30 15 CM per day of limited Resource use $400 $480 Regular beer has a higher CM per limited resource. Therefore, given unlimited demand of both types, produce only regular. Proof: In 30 days we can make one batch of premium, which will yield $12,000 in CM. In the same 30 days we can make 2 batches of regular, which will yield $14,400 in CM. We are in business to make money for the owners, not percentages. You can’t deposit percentages in the bank!

The Effects Of Homeless Conditions, Drug Abuse, And Mental...

A study of the Impact a Correlation of Homeless conditions, Drug Abuse, and Mental illness has on the Health and Wellbeing of Individuals Robin Mullineaux Salt Lake Community College Abstract This paper utilizes five peer reviewed articles for the purpose of identifying the interconnections between psychiatric conditions, self-medication and Homelessness. Depending on the severity of the psychiatric disorder, circumstances can lead to a homeless situation or nomadic lifestyle. It will also cover issues like how these influences affect societal issues such as crime violence, abuse, health troubles and communication difficulties with others due to the problems that these individuals have with their thinking process. Key†¦show more content†¦They could be homeless because of many different reasons. There are those who have lost their homes, are rejected by family members, or have problems with drug addiction, mental illness, and other reasons. There are many variables when it comes to talking about substance abuse and addiction. According to (L. Lagoni, 2010), links are present between mental illness and self-medication referred to as the self-medication hypotheses. The research in this peer reviewed article was comprehensive and viewed psychiatric disorders from many different angles. They looked at illicit drug and alcohol users and found that many mental health disorders such as Thought, Depression, Anxiety, Bipolar, PTSD, ADHD, and APD are connected to many societal issues which include homelessness, health issues, unemployment crime, and early deaths. The same study also associated the self-medication hypotheses (SMH) to Gender, Race, Previous Diagnosis, and Sexual trauma. It continued to look at people that are non-compliant to Psychiatric drug treatment and it showed how individuals present with different mental disorders but do not seek treatment for their psychiatric condition. 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