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Fig. 3 Goal hierarchy:
the user organization
Provide material
as needed
Obtain at good
price
Ensure quality
material
Ensure timely
delivery
Manage
Inventory
and faithfully. Assume that the system is to be developed from scratch and as such
there is no serious interoperability problem.
Now consider a supplier organization that supplies fully assembled systems like
computers. It keeps an inventory of system components and whenever it needs addi-
tional components, it places an order with component suppliers. The broad goal
of this supplier organization is to Maximize profits . To achieve this goal there are a
number of sub goals as shown in Fig. 4. The supplier organization strives to Capture
a large market share , Deliver quality systems , and Maintain profitability .Again,
the operationalizable goals shall be reached and the system developed. As before,
assume good alignment and no interoperability issue.
Finally consider the component supplier. This organization stocks a range of
components that are used as parts. It receives orders, mainly as a retail shop, and
supplies against these. The quality of parts ranges from the best to the inferior and
the price is commensurate with the quality. A given kind of part is available in many
specifications. This organization has its own goal of being an effective retailer. Its
sub goals (see Fig. 5) are to Stock parts in their different specifications as well as
Stock parts of different quality and Do delivery at customer site . As before let an
aligned system be built and let there be no interoperability issues.
Now, when these three organizations work independently then they face certain
difficulties. The first needs assured supplies of material and just in time inventory.
The second needs an assured market and price realizations, and assured supply of
components. The third being a retailer would like to have an assured market. In
short, all can come together to form a supply chain.
The supply chain has its own goals as shown in Fig. 6 which is produced fol-
lowing step (a) of the development method outlined earlier. Globally, the supply
Maximize
profits
Capture large
market share
Deliver quality
systems
Maintain
profitability
Obtain quality
parts
Fig. 4 Goal hierarchy:
the supplier organization
 
 
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