SCMN Exam 2 Study Questions

What are the goals of assembly line balancing?

1. Quality objective - do things right 2. Speed objective - do things fast, productivity 3. Dependability objective - do things on time 4. Flexibility objective - develop ability to change 5. Cost objective -perform at minimum cost.You'll achieve this goal if you perform well on the other objectives.In addition, we need to reduce waste and maintain a smooth flow of output.

Match the key functions of logistics to its' corresponding definition

1. We need to be very effective. 2. We need to be very efficient. 3. We need logistics operations to be productive. 4. Everything has to revolve around quality.

What is Lean Production?

A business model that emphasizes eliminating "waste" while delivering quality products at the least cost to the manufacturer and customers.

What are the primary purposes of holding inventory? What is the Inventory Balancing Act and the primary goal of Inventory Management

Allows companies to• Receive, hold and process required level of inventory tomeet customer needs in a cost efficient, timely manner• Receive in bulk & create assortment

What is post sales customer service?

Customer Service includes activities intended to enhance buyer satisfaction.• Goals:• Save $$$• Reduce cost of activities• Build customer loyalty

What is the Procurement Process? How do you use it? What is the most important step for Strategic procurement?

Goal- At the right price• From the right source• At the right specification• In the right quantity• For delivery at the righttime• To the right internalcustomer. process- identify material and service needs, evaulate supplier options, select supplies, realsease orders and receive products, and measure and manage performace.

Module 6 Key Readings

Industry 1.0 - late 18th century Powered by water and steam. Industry 2.0 - early 20th centuryElectric energy. Industry 3.0 - late 20th centurySpurred by advances in electronics and software development. Industry 4.0 - late 1990s to todayLed by the Boom in the Internet and telecommunications industry. The technology curve becomes steeper everyday and more rapid technology disruptions will lead to lower costs and revolutionize industry. Using smart technology to improve existing manufacturing processes (this includes machine learning). 1. Lowering Energy Use2. The Internet of Things (IoT)3. New Developments in 3D Printing4. Increased Efficiency with 5G5. Tools to Connect Employees to the Process6. More use of Cloud Technology7. Transformation in Product Design8. Technology Maintenance9. Artificial Intelligence (AI)10.More Connected Consumers

What are logistics and fulfillment? Why has it grown in importance

Logistics is that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption in order to meet customers' requirements.• Order fulfillment is the complete process from point of order inquiry to delivery of a product to the customer. 4

Why is transportation a critical logistics function? Where does it fit intoTotal Cost?

Logistics process links individual firms and their internal departments throughtransportation, inventory management, warehousing and fulfillment. Incontrast, supply chains connect multiple firms.Evolution of Logistics

What are the different types of "Pull" and "Push" Production?

PUSH-Mass Production•"Push" product to customers• Make to stock strategy• One-size fits all• Rigid, inflexible• Slow, static, PULL- TPS & Lean• Products "pulled" by demand• Build to order methods• Customization capabilities• Flexible; scalable• Fast flows

Module 6 Key Take aways

Principle 4: Differentiate product closer to the customer and speed conversion across the supply chain• Need to establish transformation strategies and methods that are fast, flexible and productive.• Apply the production methods best suited to your products• Adopt innovative production strategies,• Become demand-pull focused,• Focus on lean principles to eliminate waste, and• Establish the appropriate process layout for your products.

Module 7 key take aways

Principle 4: Differentiate product closer to the customer and speed conversion across the supply chain• Need to establish transformation strategies and methods that are fast, flexible and productive.• Apply the production methods best suited to your products• Adopt innovative production strategies,• Become demand-pull focused,• Focus on lean principles to eliminate waste, and• Establish the appropriate process layout for your products. Logistics• Is a major spending area that we have to control• Provides opportunities for supply chain coordination, collaboration, and innovation• Consists of key functions -inventory management, warehousing transportation management, fulfillment operations that ensure products are in-stock and ready to be delivered or picked up when you want them."The line between disorder and order lies in logistics..."

Module 5 Key Take aways

Principle 5: manage sources of supply strategically to reduce the total cost of owning materials and services.• Three focal points• The growing importance of purchasing has shifted the role from a tactical process to a strategic one.• Use an efficient and consistent processes that are appropriate for the given situation - match the value and volume of the purchase to the process that you use.• Don't take outsourcing lightly. Done right, it'll help you take advantage of exceptional supplier capability.15

What are the definitions of Production and Manufacturing?

Production is the process by which inputs are combined, transformed, and turned into outputs.We can produce both goods and services.

Module 8 Key Readings

Reverse Logistics Post COVID-191. Age of returns - returns out of season causeincongruent inventory.2. Customer service contacts - each contactwith customers averages $5 per contact.3. Return volume - decreases sales andincreases expenses.4. Delivery and processing - challenges supplychains with inefficiencies.5. Merchandise disposition - can exceed thecost of goods. Items bought online are now three (3) times morelikely to be returned, compared with in-storepurchases Lessons from the pandemic for spare parts mangament communicate early and often for the win, put parts closer to customers, retire the spreadsheets, plan now or pay later

Module 5 Key Readings

Strategic sourcing differs from convential purchasing because it places emphasis beyond price to Total Cost of Ownership. Strategic sourcing is a formalized procurement program that partners company's with their Suppliers. Strategic sourcing involves measuring performance and continual process improvement. Strategic sourcing initiatives fail primarily due to legacy issues of: 1) Lack of measures or KPIs 2) Unwillingness to change by people 3) Lack of Executive Support 73% of Supply chain managers from a recent poll said they are planning large-scale changes:Expand their supply base (38%)Shrink their global supply chain (34%)Increase inventory levels (21%)Increase financing for key suppliers (9%)

Module 7 Key Readings

The effects of the pandemic on the differentmodes and nodes has been variable andunpredictable.Motor Freight - Profitability was alreadysuffering. Small carriers hit hardest.Parcel - "Shot of adrenaline"Rail - Hit hard. Down 25%Air - Volumes down creating "spot" rates tosoarOcean - Cancelled sailings, reducedcapacity and raised rates.Warehousing - Rising e-commerce salescaused a "run" on warehousing space. The Way Forward 1. Move away from single sourcing, JIT andLean inventories. 2. Increased flexibility in warehousing. 3. Risk and resiliency in supply chain design. 4. Increased reliance on technology. 1. Historically, warehousing and distribution were considered a cost center bybusiness executives - a function that need to be economized. That viewis changing after COVID. 2. The pendulum is swinging back to decentralized supply chainstructures - supply chain executives are making investments in distributionnetworks, technology and third-party logistics partners

How are warehouses used to support operations?

The part of a firm's logistics system that stores and handles inventory between the point-of-origin and point-of-consumption. Roles• Buffer against fluctuatingdemand• Promote efficient fulfillment• Supports innovative strategies• Allows logistics trade-offs.

What is reverse logistics? What are its key challenges?

The process of planning, implementing and controlling the efficient, cost-effective flow of materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal.;

Module 8 key take aways

The supply chain does not end with product delivery to the customer.• Companies must support products throughout their lifecycle.• Companies must segment customers based on individual service needs and tailor the supply chain to profitably meet those needs.• Effective post-sale service includes:• Customer support• Service parts logistics• Reverse logistics

What metrics or KPIs are used in selecting suppliers and evaluating Supplier Performance?

a measure of achievement that can be attributed to an individual, team, or department; acheive quality, timelines, lower cost

What are the strategies for managing reverse flows?

avoidance of returns, gatekeeping to limit flows, generate visibility, establish centralized facility

What are the different types of procurement goods?

direct materials - used in production processes and affects product value, indirect materials - used outsideproduction processes

What are the 3 types of inventory ordering models and be able toidentify each?

fixed- order quantity, fixed-time period, continuous replenishment

What is Total Cost of Ownership?

hidden cost/ storange etc

What is Customer Relationship Management (CRM) ?

is a system for managing a company's interactions with current and future customers. It involves the use of technology to organize, automate and synchronize sales, marketing, customer service, and technical support.

What is strategic sourcing?

is an institutional procurement process that continuously improves and re-evaluates the purchasing activities of a company; focuses on improving procurement; 1. quality, 2. timslines, 3. lower cost

What are the 4 Primary Production Strategy Options?

job productions- custom specific products , batch production-product in groups or batches, continuous production-produce product without interruption

What instance/instances do you use a formal step-by-step process.

major purchases

What issues and factors drive the production layout decision?

product characteristics, business strategy, constraints of physical structure

What production processes are available for companies to use and some example products that use each?

project, work center, cell, assembly line, continous flow

What do call centers do?

provide customers with accessto important information and services in the manner that ismost convenient - by phone, via text message, or onlinewith FAQs and live chat sessions

What is the purpose of a break-even analysis? Calculate it.

results in 0 net income/ when your cost equals your money from sales Break Even = Fixed Cost / (Unit Price - Variable Unit Cost)

What is service parts logistics? How does it differ from traditional logistics?

the overall repair and maintenance of high value products across their llifecycles;

What is a Make or Buy analysis? When do you use each? What is outsourcing?

the process of determining themost attractive alternative involves comparing the costsavoided to costs of outsourcing/ when to make or buy; WHY BUY; price, capacity, cost reduction, mangagment focus, WHY NOT/MAKE; Cost, Knowledge protection, Leverage, Lack of external knowledge, Core competency; outsourcing- from an outside supplier

What is procurement? How has it shifted from the Tactical level?

the purchase of merchandise or services at the optimum possible total cost in the correct amount and quality ; tactical to strategic sourcing throigh the grwoing impoetance of purchasing. importance- Ability to generate asustainable advantagethrough lower costs,higher quality, andbetter service fromour global supply baseof trading partners.