TCU Jordan Supply Chain Final Exam

What is 5s? What are the 5s?

-A systematic program for effective housekeeping in operational processes -The 5s are sort, straighten, scrub, standardize, and systematize

What are the basic types of carriers and when are they most likely used?

-Common Carriers=Provide service to the public -Contract Carriers=Have specific contracts with a limited number of shippers -Private Carriers=Own and operate transportation equipment to transport their own products

Drivers of SCM:

-Competition -Consumer Behavior -Visibility -Speed

Who uses forecasting?

Any users who want to see what the future might look like

Primary Difference Between Demand Management and Demand Forecasting?

Demand Management is proactive, while forecasting attempts to predict

Cost to Service Tradeoff in Logistics:

Higher Service=Higher Cost

What is Supply Chain Management?

The design and execution of relationships and flows that connect the parties and processes across a supply chain

The Purpose of Customer Relationship Management (CRM):

Used to collect and analyze customer data from numerous sources for the purpose of developing strategically appropriate relationships with customers

What does transportation cost depend on?

Value and weight of items being shipped

DMAIC (Define, Measure, Analyze, Improve, Control)

-A data-driven quality strategy for improving processes -Define=Set the context and objectives for improvement -Measure=Determine the baseline performance and capability of the process -Analyze=Use data and tools to understand the cause-and-effect relationships of the process -Improve=Develop the modifications that lead to a validated improvement of the process -Control=Establish plans and procedures to ensure that improvements are sustained

What are the 5 Principles of Lean?

-Identify customer values -Focus on processes that create value -Eliminates waste to create "flow" -Produce only according to customer demand -Strive for Perfection -Pull System=Processes are activated by actual, not forecasted demand, customers get what they want, when they want, where they want -Lean System Culture=Places a high value on respect for people, Acceptance, Flexibility, Teams, Employee Empowerment, Manage with Data, Waste as a Symptom, Goals are met, Standardization, and Process Focus

What is ISP and 3PL?

-Integrated Service Providers (ISPs)= Companies that provide a range of logistics services -Third-Party Logistics Service Providers (3PLs)=A common term used in the industry to describe ISPs

Customer Satisfaction Gaps

-Knowledge Gap=The gap between customers real expectations and managers perceptions of those expectations -Standards Gap=The gap that exists when internal performance standards do not adequately or accurately reflect customer expectations -Performance Gap=The gap between standard and actual performance -Communications Gap=The difference between a company's actual performance and what a company communicates about its performance -Perception Gap=The gap that exists when customers perceive performance to be different than what is actually provided -Satisfaction Gap=The difference between perceived performance and the customers expectation regarding performance

Lead Times and What is Important to the Customer:

-Lead Time=The amount of time that passes between the beginning and ending of a set of activities -Most important to the customer is Order to Delivery (OTD), which is the time that passes from the placement of order to the instant the customer receives the product

What is Lean? What is the Ultimate Goal of Lean?

-Lean is a flexible system of operation that uses considerably less resources than a traditional system -Lean systems tend to achieve greater productivity, lower costs, shorter cycle times, and higher quality -The ultimate goal of lean is to achieve a balanced system, or one that achieves a smooth, rapid flow of materials and/or work through the system

Order, Line, and Unit Fill Rate

-Order Fill Rate=Total Complete Orders Delivered/Total Orders -Line Fill Rate=Number of Order Lines Delivered Complete/Total Order Lines -Unit Fill Rate=Total Units Delivered/Total Units Ordered

Factors of Customer Satisfaction:

-Reliability -Responsiveness -Access -Communication -Credibility -Security -Courtesy -Competence -Tangibles -Knowing the Customer

MRP Systems

-Required Inputs:Master Production Schedule (MPS), Bill of Materials (BOM), and Inventory Records -Required Outputs:Primary Reports (planned orders, order releases, change orders), and secondary reports (performance, planning, exceptions) -Benefits:The true benefit of an MRP system is its ability to take the many different forms of data from across the different organizational systems and correlate, aggregate, and provide an enterprise wide view of organizational information -When is it used: To answer what is needed, how much is needed, or when is it needed

How to Determine the Most Logical Mode of Transportation:

-Speed -Availability -Dependability -Capability -Frequency -Cost to Shipper

What are Characteristics of Lean Systems?

-Wasted Reduction -Continuous Improvement -Use of Teams -Work Cells -Visual Controls -High Quality -Minimal Inventory -Output Only To Match Demand -Quick Changeovers -Small Lot Sizes -Lean Culture

In what situations would you use revenue/yield management?

-Where you want greater revenue with hotel prices -Attempt to match (potentially limited supply) with demand

X-Bar, P, and R Charts (When to Use Them):

-X-Bar Charts=Mean control charts, used to monitor the central tendency of a process (Variables generate data that are measured) -R Charts=Range Control Charts, used to monitor the process dispersion (Variables generate data that are measured) -P Charts=Control Charts used to monitor the proportion of defectives in a process (Attributes generate data that are counted)

Calculate Performance Order (Reliability)

% Orders Shipped Complete x % Orders Delivered On Time x % Orders Delivered Damage Free x % Orders That Have Correct Documentation=Performance Order Reliability

What Is Demand Management?

Demand Management is a proactive approach in which managers attempt to influence the pattern of demand. Usually, demand management involves the use of pricing and promotional activities

What are the balancing objectives of S&OP?

-Finance=High ROI, maximize return, minimize risk, high contribution customers -Operations=Detail planning, fewer products, long, stable production runs, maximize output, minimize cost, reduce variance, maintain "up-time", efficient grouping of supply and demand -Marketing/Sales=Aggregate planning, many product variations, fast response, high service, maximize revenue

Types of Operational Layouts and When they are used:

-Fixed-Position Layout=Used when the product cannot move during production -Functional Layout=Groups together similar resources -Product Layout=Resources are arranged according to a regularly occurring sequence of activities -Cellular Layout=Arranges workstations to form a number of small assembly lines called work cells, product families may have similar shapes, sizes, process flows, or demand, each work cell can be dedicated to make a product family -Line Balancing=Used to assign tasks so that idle time and the number of workstations are minimized

Most Common Quality Improvement Tools:

-Histogram=Used to uncover patterns (range and frequency) in data variability -Cause-and-Effect Analysis=Used to uncover possible contributions to an observed problem; to facilitate group brainstorming -Check Sheets=Used to identify the frequency and location of problem causes -Pareto Analysis=Used to identify the most critical (relatively frequent) causes of problems -Scatter Diagrams=Used to determine if two variables are related to each other (whether the two variables move together in a predictable pattern) -Process Flow Analysis=Used to graphically display and analyze the steps in a process -Process Capability Analysis=Used to predict the conformance quality of a product by comparing its specification range to the range of the process variability -Process Control Charts=Used to monitor outputs and determine whether a process is operating according to normally expected limit -Yaguchi Method/Design of Experiments=Used to evaluate and understand the effects of different factors on process outputs

What is the Purpose of ISO?

-ISO=International Organization for Standardization (1987) -ISO 9000 and 9001=A set of international standards on quality management and quality assurance, critical to international business -ISO 14000 and 14001= A set of international standards for assessing a company's environmental performance

Service Process Matrix (With Examples of Each)

-Mass Service=Banks, Gas Stations -Service Factory=Airlines, Hotels -Professional Service=Lawyers, Doctors -Service Shop=Hospitals, Auto Repair Shops Top Left: Mass Service, high labor intensity, low customer interaction Top Right: Professional Service, high labor intensity, high customer interaction Bottom Left: Service Factory, low labor intensity, low customer interaction Bottom Right: Service Shop, high customer interaction, low labor intensity

Maximum and Effective Capacity

-Maximum (Rated or Design) Capacity=The highest level of output that a process can achieve under ideal conditions in the short term -Effective Capacity=The level of capacity or output that a process can be expected to produce under normal conditions (70-80% of maximum capacity)

Forms of Intermodal Transportation

-Piggyback Services (integrates truck and rail transportation) -Trailer on Flatcar (TOFC) -Container on Flatcar (COFC)

PDCA (Plan, Do, Check, Act)

-Plan=Identify problems and actions for improvement -Do=Implement formulated plan -Check=Monitor Results -Act=Take corrective action insititutionalize changes

What are pooled delivery schedules and scheduled delivery consolidation?

-Pooled Delivery=Combine small shipments from different shippers going to the same area -Scheduled Delivery=Delivery at specific times

The 4 Types of Cost Quality and Examples of Each:

-Prevention Costs=Costs associated with preventing defects and limiting failure and appraisal costs (training, improvement projects, data gathering, analysis) -Appraisal Costs=Costs associated with inspection to assess quality levels (staff, tools, training, etc.) -Internal Failure Costs=Costs from defects before delivery to the customer (rework, scrap, etc.) -External Failure Costs=Costs associated with defects found after delivery to customer (warranty, recall, etc.)

What Is A Process, Juran's Law, and Process Think?

-Process=a system of activities that transforms inputs into valuable outputs -Juran's Law=a key premise of process thinking, says that 15% of operational problems are the result of human error; the other 85% are due to systematic process errors- to improve operations, we should focus our attention on processes first -Process Thinking=a way of viewing activities in an organization as processes rather than as departments or functions

How has technology impacted the supply chain?

Advances in communications, computers, and transportation techniques have enabled extensive connectivity and the growth of supply chain partnerships. With easier information transactions, there is less of a need to include all operations at one location or within one organizational boundary. Constant information sharing between supply chain partners improves efficiencies in planning, material movements, and the transfer of funds. At the same time, growing transportation technologies and infrastructures have made the shipping of goods and the transport of people faster, more reliable, and more economical than in decades past. Transportation infrastructure continues to be built in developing countries.

Bottleneck

An activity or resource that limits or constrains the output of a process

Little's Law

An empirically proven relationship that exists between flow time, inventory, and throughput. Indicates that the flow time for a given unit is dependent on the inventory that is in front of the unit, and the rate at which that inventory is processed. F=I/TH

Product-Process Matrix

Categorizes processes into structures based on output volume and variety

What is Corporate Strategic Planning?

Corporate Strategic Planning determines the overall mission of the firm and the types of business that the firm wants to be in. For a large, multidivisional firm, key decisions in corporate strategy address what businesses to acquire and what businesses to divest. Corporate Strategy typically covers a long time horizon, setting the overall values, direction, and goals of the firm as a whole. It also establishes how business performance will be measured and how risks will be managed. (Broadest in scope and least constrained)

Cost of Various Options of Transportation

Cost=(days/365) x product value x inventory holding cost rate + standard cost

What is the difference between customer satisfaction and perceived customer value?

Customer satisfaction is when you have met or exceeded the customer's expectations or the extent to which a product's perceived performance matches a buyer's expectations. Perceived customer value is the difference between total customer value and total customer cost. Perceived Customer Value= Total Customer Value- Total Customer Cost

What is the Purpose of Safety Stock?

Extra inventory held to guard against uncertainty in demand or supply

Why do companies use warehouses?

For cost and customer service improvements

The Differences Between Goods and Services:

Goods=Tangible, can be inventoried, little customer contact, long lead times, often capital-intensive, quality easily assessed, and material is transformed Services=Intangible, cannot be inventoried, extensive customer contact, short lead times, often labor-intensive, quality more difficult to assess, information or the customer is transformed

Why are companies focusing on the supply chain today?

Organizations are quickly realizing the tremendous value they can gain from having visibility throughout their supply chain

What Brought About The Quality Revolution?

Post WWII Japan, Japan had a widely held reputation for shoddy exports, and their goods were shunned by international markets. Edward Deming and Joseph Juran predicted the quality of Japanese goods would overtake the quality of goods produced in the U.S. by the mid-1970's because of Japan's revolutionary rate of quality improvement

What is Sales and Operation Planning?

Process for integrating marketing and operations plans to develop a tactical plan, attempt to balance supply, demand, and resources

What Are The 3 Ps?

Profit, People, and Planet (The Triple Bottom Line- corporate performance measurement that focuses on a firm's overall impact measured in terms of profit, people, and the planet)

Why do we forecast?

So we can convert data inputs into reliable predictions for future events

Spend Analysis, Make-Buy Analysis, and When They Are Used:

Spend Analysis is a process used to understand what purchases are being made, at what price, and from which specific suppliers. Based on a spend analysis, specifications can be standardized so purchases can be consolidated with fewer suppliers, reducing administrative costs, inventory costs, and often leading to lower prices.

Make/Buy Analysis

The choice between making a product internally or purchasing it from a supplier

Utilization

The percent of a process that is actually used, Can be calculated as the ratio of the actual output rate to the capacity. Is sometimes calculated as the percentage of available resource time that is actually used. Very low utilization rates suggest that equipment or employees are being underused, while extremely high utilization rates suggest overuse and a corresponding danger that problems may occur if demand continues to exceed available capacity

Digital Darwinism

The phenomenon when technology and society evolve faster than an organization can adapt, implies that organizations which cannot adapt to the new demands placed on them for surviving in the information age are doomed to extinction

Quality At The Source

The practice of eliminating defects at their root cause origination points

What is Total Landed Cost?

The sum of all product and logistics related costs

Customer Value and The Value Proposition

Value Proposition=Tangible and intangibles that customers expect from a firm/firm's offerings that are valued by customers and different from competitors, Set of benefits or values that a company promises to deliver to customers to satisfy their needs

What Is Revenue/Yield Management?

Yield Management is adjusting prices in response to demand levels and modifying prices to encourage customers to purchase for service at supplier desired times. It is the science of maximizing profits through market demand forecasting and the mathematical optimization of pricing inventory. It helps to predict consumer demand to optimize inventory and price availability in order to maximize growth

Different Types of Supplier Relationships:

-Adversarial Relationship=Represents the traditional way that buyers and suppliers have approached each other, these relationships are typified by distrust, limited communications, and short-term business transactions, can be serious obstacles -Arm's-Length Relationship=Tend to be limited to simple purchasing transactions, but they lack the high levels of distrust and antagonism often associated with adversarial relationships, sufficient for some -Acceptance of Mutual Goals=Represents a major step toward collaboration, but it lacks the commitment of resources associated with full partnership. -Full Partnerships=Have close working relations, trust, mutual respect, and highly integrated operations; full partners acknowledge their interdependencies and work together to reduce total costs so both parties benefit, partners exchange information and buyers allow suppliers direct access to their information systems, better results are expected

Why do we use S&OP?

-Alignment -Decision Making -Visibility -Financial Integration -New Product Introduction

The Difference Between Attributes and Variables:

-Attribute (discrete) data=Measure qualitative characteristics of process output (pass/fail, go/no go, good/bad) -Variable (continuous) data=Measure quantifiable conditions such as speed, length, weight, temperature, density, and so forth -all variable data can be transformed into attributes, however it is not possible to transform data into variable data

Factors Effecting Reorder Point Calculations:

-Average Demand per Time Period -Average Supplier Lead Time

What are the various forms of warehousing and why are they used?

-Break-Bulk=Splitting a large shipment into individual orders and arranging for local delivery to customers -Warehouse Consolidation=Combining shipments from a number of sources into one larger shipment going to a single location -Cross-Docking=Combines break-bulk and warehouse consolidation activities -Reverse-Logistics Support=Material moves upstream in the supply chain, especially important in online retail -Value-Added Services=Providing additional value to the customer, such as postponement

2 Types of Inventory Cost (Order and Carrying) And What Makes Up These Costs:

-Carrying Cost is the cost incurred due to the fact that inventory is held -Order Costs is the cost incurred in placing and receiving orders from suppliers, Order cost is a transaction cost associated with replenishing inventories, it includes the expenses incurred in order preparation, order transmittal, order receiving, and accounts payable processing

What are the principles of TQM?

-Continuous improvement -Competitive benchmarking -Employee empowerment -Team approach -Decision based on fact, not opinion -Knowledge of tools -Supplier quality -Champion -Quality at the source -Suppliers are partners in the process

How can you create value for a customer and capture value for your organization?

-Create features that a company will pay for -Create a difficult to imitate source of differentiation -Satisfy financial and strategic firm objectives -Use the firm's capabilities and supply chain -Know how to solve customer problems -Profit Margin is the Value created by a company minus the Cost of Creating that value Value Created-Cost of Creating Value=Profit Margin

Critical Customer and The Order Needs Assessment of Order Winners, Losers, and Qualifiers

-Critical Customer=critical to a firm's success and receives a firm's focus -Order Winner=why customers choose your firm (flexibility and customization) -Order Loser=why customers avoid your firm -Order Qualifier=Minimum standards to be met (affordable price and high quality)

The Difference Between Customer Success, Customer Satisfaction, and Basic Services

-Customer Success=Helping customers to meet their real business requirements -Customer Satisfaction=Meeting or exceeding customer expectations -Basic Services=A supplier's ability to provide product availability, lead time performance, and service reliability

The 8 Forms of Waste:

-Excess Inventory -Overproduction -Waiting Time -Unnecessary Transportation -Processing Waste -Inefficient Work Methods -Product Defects -Underused People

Lean Tools and Techniques:

-Facilities and Resources=Total Productive Maintenance (TPM): prevention of breakdowns, group technology brings together resources to process a family of items, and focused factories are processes designed to satisfy specific customer segments -Scheduling and Control=Takt Time, Kanban (Pull), Mixed Model Scheduling, Setup Reduction, Statistical Process Control, and Visual Control -Continuous Improvement=Quality at the Source, Kaizen Events, Process Analysis/Value Stream Mapping, Poka-Yoke, 5-S, and Simplification/Standardization

Types of Processes:

-Project=A one-time or infrequently occurring set of activities that creates outputs within pre-specified time and costs schedules (custom home, designing a video game), some characteristics are: unique sequencing, high complexity, employees and equipment must be flexible, activities are often outsourced to specialists -Job Shop=A flexible process structure for products that require different inputs and have different flows through the process (Auto Repair, Beauty Salon), some characteristics are: high variety of inputs and process flows, job sequencing is challenging, highly work-in-process inventory, highly skilled and flexible workers, and general purpose equipment -Batch=Goods or services are produced in groups and not in a continuous stream (Bakery, Automative Parts, and Cinema), some characteristics are: dominant flow patterns, some common inputs, high setup times, and moderately flexible employees and equipment -Repetitive=Discrete products flow through the same sequence of activities (Standard products such as appliances, cars, buffet restaurants) some characteristics are: all products flow through the same sequence, standard methods and materials are used, and low-skilled workers specialize in completing a limited number of activities -Continuous=A single flow process used for highly volume, non-discrete, standardized products (commodities with high volume like aluminum cans, laundry detergent, and gasoline) some characteristics are: products follow the same sequence, operations often run 24/7, line stoppages are costly, highly specialized equipment, and low-skill operators -Mass Customization=Uses advanced technologies to customize products quickly at a low cost -Cellular Manufacturing=The production of products with similar process characteristics on small assembly lines called cells

According to ISM, what is the operational importance of SCM?

-Provide an uninterrupted flow of material and services to the operating systems -Keep inventory investment at the minimum -Maximize quality -Find and develop competent sources of supply -Standardize requirements for product and services -Purchase materials and services at the lowest total cost of ownership -Foster cross-functional relationships

Types of Forecasting and When To Us (Qualitative and Quantitative):

-Qualitative: Subjective (based on people's opinions), can incorporate expertise that is hard to codify, opinions can dominate or bias the forecast -Quantitative: Objective (based on numeric data and equations), consistency, can consider large amounts of data, must have data, have historical data of same or very similar product until similar external conditions

What Is Six Sigma?

-Quality improvement through elimination of defects and variation-a business process for improving quality, reducing costs, and increasing customer satisfaction. -Statistically, it means have no more than 3.4 defects out of a million products -Conceptually, the program requires the use of certain tools and techniques

What are the benefits of S&OP?

-Quantitative Benefits=Improved forecast accuracy, higher customer service, more stable supply, better new product introduction -Qualitative Benefits=Better Organizational teamwork, faster and better aligned decision making, greater accountability for performance, better business visibility

What are the various types of inventory found in the supply chain?

-Raw Materials and Component Parts are items that are bought from suppliers to use in the production of a product, once they enter the production process, they become classified as work-in-process, and when they are finished they become finished goods -MRO inventory is short for Maintenance, Repair, and Operating Supplies (office supplies, cleaning supplies, tools and machines)

Return on Assets, Net Profit Margin, Asset Turnover, Net Profit, and Total Assets

-Return on Assets= Net Profit/Total Assets -Net Profit Margin= Net Profit/Net Sales -Asset Turnover= Net Sales/Total Assets -Net Profit= gross margin (sales - cost of goods sold) - total expenses (variable expenses + fixed expenses) -Total Assets= current assets + fixed assets

SWOT, SCOR, Balanced Scorecard, and Strategic Profit Models (and when to apply them)

-SWOT=Stands for strengths, weaknesses, opportunities, and threats. A strategic planning technique that helps firms identify opportunities where they can develop a sustainable competitive advantage and areas where the firm is significantly at risk, also helps managers match strategies with strengths and opportunities while also reducing risks associated with weaknesses and threats. SWOT can be used in various ways-to kick off strategic thinking or as a serious detailed strategic assessment/planning tool -SCOR=Stands for Supply Chain Operational Reference Model. A model for assessing, charting, and describing, supply chain processes and their performance. Addresses 5 dimensions of performance -Strategic Profit Model=A model that shows how operational changes affect the overall performance of a business unit

Steps for Determining Insourcing versus Outsourcing

-Step 1: Assess fit with the Firm's Core Competencies -Step 2: Evaluate the Suitability for Outsourcing -Step 3: Evaluate the Reasons for Outsourcing -Step 4: Assess all Relevant Quantitative Costs -Step 5: Assess all Qualitative Factors -Step 6: Review the Capabilities of Suppliers -Step 7: Make and Implement a Decision

Levels of Planning in Supply Chain and the type of decision to apply to each:

-Strategic Planning=A type of planning that addresses long-term decisions that define the operations objectives and capabilities for the firm and its partners, includes high-level product and resource design decisions that define the overall operations objectives and capabilities for the firm and its partners (what products to develop, where to locate plants) -Tactical Planning=A type of planning that addresses intermediate-term decisions to target aggregate product demands and establish how operational capacities will be used to meet them, seeks to identify and target customer demands for aggregate product families and to establish inventory and capacity plans needed to satisfy these demands (Spans Months) -Operational Planning=A type of planning that establishes short-term priorities and schedules to guide operational resource allocations, inventory and requirements planning activities address demands, materials, and capacities at the individual product level (Spans weeks or days)

Different Types of Sourcing (And Why They Are Used):

-Strategic Purchases=Represent a high spend level and are high risk, these purchases are typically unique and core to the firm's performance (Use 1 or 2 suppliers and build partnerships with them to foster collaboration and innovation) -Bottleneck Purchases=High risk and low spend and typically are not core to the firm's performance, but lack of availability can cause delays (use at least 2 suppliers to assure supply, develop new suppliers, and explore using new materials) -Leverage Purchases=Low risk but represent a high level of spend, they typically involve standard goods or services where many possible suppliers are available (standardize purchases across the company, use competition to select suppliers, and consolidate purchases with 1 or a few suppliers to get discounts) -Noncritical Items=Typically are a low percentage of overall spend and have little impact on performance (use vendor-managed inventory, and allow users to make their own purchases using online catalogs or corporate credit cards to lower the transaction costs)

Theory of Constraints

-The overall management system that strives to improve system performance by identifying, focusing on, and managing constraints -The 5 principles of the Theory of Constraints are: 1. Every process has a constraint 2. Every process contains variance that consumes capacity 3. Every process must be managed as a system 4. Performance measures are crucial to the process's structure 5. Every process must continually improve

The Important Aspects of Forecasting:

-Timely -Accurate -Reliable -Expressed in meaningful units -In writing -Technique is simple to understand and use -Cost effective

The Goal of Trade Agreements:

-To reduce the barrier of U.S. exports -Protect U.S. interests competing abroad -Enhance the rule of law in the FTA partner country or countries

Operating Service Characteristics of Each Transportation Mode:

-Truck= 2 speed, 1 availability, 2 dependability, 3 capability, 2 frequency, 2 cost to shippers, typically used by medium and light manufacturing, wholesale and retail distribution -Rail= 3 speed, 2 availability, 3 dependability, 2 capability, 4 frequency, 3 cost to shippers, typically used by heavy bulk commodities -Water= 4 speed, 4 availability, 4 dependability, 1 capability, 5 frequency, 4 cost to shippers, typically used by bulk commodities, cement, and agricultural products -Pipe= 5 speed, 5 availability, 1 dependability. 5 capability, 1 frequency, 5 cost to shippers, typically used for petroleum, natural gas, slurry -Air= 1 speed, 3 availability, 5 dependability, 4 capability, 3 frequency, 1 cost to shippers, typically used for small shipments and emergency shipments

Types of Demand Management:

-Use pricing, promotions, or incentives to influence timing or quantity of demand -Manage timing of order fulfillment -Encourage shifting to alternate products -Revenue/Yield Management

Line Balancing

-Used to assign tasks so that idle time and the number of workstations are minimized -Takt Time=The maximum allowable cycle time at each workstation based on customer demand -Takt Time= (Available Production Time in a time period)/(Output needed in that time period to meet customer demand) -Precedence Diagrams=Present the order in which tasks must be completed

What makes a forecast more/less accurate?

More accurate forecasts have close periods of time and demand for groups, Less accurate forecasts look further into the future and count demand for individuals

The Components of SCOR and SWOT:

5 components of SCOR: -Delivery Reliability=The performance of the supply chain in delivering the correct product, to the correct place, at the correct time, in the correct condition and packaging, in the correct quantity, with the correct documentation, to the correct customer -Responsiveness=The velocity at which a supply chain provides products to the customer -Flexibility=The agility of a supply chain in responding to marketplace changes to gain or maintain competitive advantage -Costs=The costs associated with operating the supply chain -Asset Management Efficiency=The effectiveness of an organization in managing assets to support demand satisfaction, this includes the management of all assets: fixed and working capital 4 Components of SWOT: -Strengths -Weaknesses -Opportunities -Threats

What is a supply chain and its components? (Upstream, Downstream, tier suppliers)

A Supply Chain is the global network of organizations and activities involved in (1) designing a set of goods and services and their related processes, (2) transforming inputs into goods and services, (3) consuming these goods and services, and (4) disposing of these goods and services -Upstream product suppliers typically provide raw materials, components, and services directly related to manufacturing or service production processes -Downstream product suppliers typically provide enhancements to finished goods such as assembly, packaging, storage, and transportation services -Resource and Technology suppliers provide equipment, labor, product, and process designs, and other resources needed to support a firm's processes -Aftermarket Suppliers provide product service and support such as maintenance, repair, disposal, or recycling

Calculating Supplier Weighted Scores:

A weighted point model links the supplier's performance rating to the firm's competitive priorities. Working with members from key functions, each performance category is weighted so the total sum of the weights equals 100%. The weights should reflect the compancommy's performance priorities. As business needs change, the weights are adjusted to reflect new priorities. The higher scores indicate better performance.

What is the Purpose of Inventory?

Inventory balances supply and demand, and its 3 functions are to buffer uncertainty, enable economies of buying, and enable geographic specialization

On a moving average forecast, what happens when you increase the number of periods?

It reduces the impact of random or atypical demands in isolated time periods, but it also reduces the sensitivity of the moving average to actual shifts in demand

What is Logistics Management?

Logistics is the management of the flow and storage of inventory such that total costs are minimized and customer service targets are achieved

What are Benefits of Setup Reduction (single minute exchange of dies)?

Lowers changeover times and costs and makes it possible to produce outputs in smaller batch sizes more efficiently

What is Supplier Management and Why is it Important?

Supplier Relationship Management (SRM) is a comprehensive system facilitated by software that manages the firm's interactions with its supply base. The goal of SRM is to streamline the processes and interactions that exist between the firm and its various suppliers so they are more efficient and transparent. SRM helps the firm identify critical suppliers and comes up with ways to improve how the firm works with those suppliers on such activities as reducing costs, introducing new products, creating cash mitigating supply and regulatory risks, and ensuring a secure supply of scarce materials. SRM deals with all stages of the supply management process (identifying suppliers, working with suppliers, placing orders, and postorder contract activities, which include inventory management and warranty recoveries)

What is a Supplier Scorecard and What is its Purpose?

Suppliers receive regular feedback, typically monthly or quarterly, in a supplier scorecard. It is used to report a supplier's performance on key performance indicators (KPI). Supplier Scorecards are used in several ways. Some firms categorize suppliers based on overall score. Firms give preferred suppliers the opportunity to participate in product development and to win new business. Acceptable suppliers must develop a plan for improving their performance to the preferred level. Developmental suppliers must improve performance, or they are targeted to be replaced. Rather than replacing suppliers, companies such as Honda and Toyota work with suppliers to help them improve their performance and capabilities. Once they have received the business, buyers expect their suppliers to continually improve, especially by reducing costs

What is the Bullwhip Effect?

The Bullwhip Effect occurs when a small disturbance in the flow of orders generated by a customer produces successively larger disturbances at each upstream stage in the supply chain. They incite excessive expediting (moving certain orders ahead of others), increased levels of inventory, uneven levels of capacity utilization (where plants go from being idle to working overtime), and ultimately increased costs