week 6
Act
Standardize and apply improvement to other parts of the organization.
Which is the correct total cost formula?
TC = RC + RSQ + QKC2
A best buy decision includes
-market conditions. -the products procurability. -all relevant stakeholders buy-in. -technical considerations.
What are the difficulties when acquiring services?
The inability to store for future use Ensuring adequate capacity Ensuring the proper timing of delivery
Basic elements for determining carrying cost include
inventory service costs. storage space costs. capital costs. inventory risk costs.
check
measure and evaluate the results of the countermeasures.
The six eligibility categories for the Malcolm Baldrige National Quality Award are: manufacturing, service,
nonprofit. education. small business. health care.
The supply manager for ABC manufacturing wants to ensure he orders the right components when required by production; he must ensure he includes forecasting, costs, price-volume relationship, availability, and _______ when making decisions
shortages
The three basic MRP inputs are
the master production schedule. the inventory record. the structured bill of materials.
The two types of quality checks on tangible products is
-100 percent inspection. -sampling.
When is "Description by Brand" Desirable?
-Specifications cannot be laid down with sufficient accuracy. -The manufacturing process is secret or the item is covered by a patent. -The quantity bought is so small.
What ordering system that strategically positions inventory to achieve all benefits of modern supply chain management while combining traditional MRP, lean, and theory of constraints?
DDMRP demand driven MRP
Developing standard quality assessment tools is useful with _________ services.
REPETITIVE
Every organization has specific needs, the value of these needs are categorized into three levels, they are:
Strategic, traditional, and additional current.
The supply manager wants to implement some continuous improvement initiatives, one of the key places to examine is
The process that produce: without examining the process, the manager will likely miss critical continuous improvement opportunities.
What is a reason a company may choose insourcing?
Threat to assurance of supply
Supply management is concerned with the _______ proposition of specific needs
VALUE
What type of inventory that is managed by the supplier and at a minimum means the supplier determines when to replenish and how much to replenish?
VMI
Function
When an item purchased meets the performance
When an employee deals with unhappy customers over matters out of their control, the employee can develop
an uncaring attitude.
MRP systems that perform routine clerical tasks allow the supply professional to focus efforts on more __________ and ____________ tasks.
analytical strategic
Capital expenditures are shown as on the balance sheet.
assets
MRP systems require an accurate ____________ ____________ ______________ to determine needs.
bill of materials
Specification by material and method of manufacturing places the risk and responsibility on the _________ organization.
buying
DMAIC is the six sigma philosophy, it stands for
define, measure, analyze, improve, control.
True or false: All make or buy decisions should emphasize the long-term goals for robust and flexible supply chains.
true
True or false: MRP allows for how much and when to order decisions to be made simultaneously.
true
True or false: Nonrepetitive purchases must be handled on a case by case basis, this can be from small value purchasing to capital investment.
true
True or false: Statistical Process Control (SPC) is an industry-standard methodology for measuring and controlling quality during the manufacturing process.
true
True or false: Unusual or infrequent purchases must be dealt with on a case by case basis.
true
Innovation allows suppliers and purchasers to work together continually to improve
value and total cost of ownership.
The types of products or services to offer are strategic ___________ decisions, while what to make or buy are strategic _________ decisions.
entrepreneurial; operational
Sustainable supply chains require supply managers to take both _______and ________________factors into consideration.
environmental and social
One hundred percent inspection means that
every part is checked to tell whether or not it is defective.
Often quality assurance is responsible for inspection of materials at receiving, in-process, and with the ______ product.
finished
Partners who use CPFR benefit from
higher service levels. increased sales. reduced inventories.
do
implement countermeasures.
Raw materials are basic substances in a _____, _____, or _____ state that are used as inputs to a production process.
modified semi-processed natural
The degree of tangibility can be used in strictly service organizations, with no tangible goods, by setting standards for
personnel training. machine qualification.
Continuous improvement follows a
plan-do-check-act cycle
The ninth dimension of quality is "
procurability
Prior to awarding a supplier business, the buying organization should conduct a
quality capability survey. quality assurance survey.
Supplier evaluations include evaluation criteria to assess
quantity. delivery times.
The organization needs to be categorized under the traditional value proposition are evaluated under the criteria of
quantity. service. quality.
A sample in which every element in the population has an equal chance of being selected is a
random sample.
MRP systems give organizations the ability of
rapid replanning. rapid rescheduling.
Fixed-period models place orders only at ___________ times.
review
is used to complete work that has been bid out by prime contractors.
subcontractor
Given the importance of insourcing and outsourcing decisions, the ____________ manager should be heavily involved.
supply
This class of quantitative forecasts uses linear or multiple regression lines from leading indicators.
Causal models * Causal models try to identify leading indicators and use linear or multiple regression lines to forecast.
Determine if the definition is standardization or simplification. Standardization -> Simplification ->
-Agreement on quality. - Preliminary to standard products
What are the benefits of a supplier certification program for suppliers?
-Suppliers are publicly recognized by buyers. Suppliers receive systematic improvements. Suppliers are considered first for new business.
Managers typically set service coverage levels to ______________ %.
95
The two types of Kanban cards are
C-Kanban P-Kanban
Forecasts provide managers with a way to make decisions before actual requirements are known, which forecasts should be considered when making purchase decisions?
Lead times Prices Demand
The quantity and inventory levels maintained depend on __________ or _____________ and if the inventory is dependent or independent.
demand usage
The quantity and inventory levels maintained depend on ________ or ____________and if the inventory is dependent or independent.
demand usage
a _________ means the different methods by which the buyer communicates to the seller a clear, detailed picture of the required item.
description
ISO 9001:2015 defines the requirements for a quality system, but does not ___________ how they should be be met.
dictate
A subcontract performance summary is beneficial for
evaluation fore future selection. information for subsequent claims. information for renegotiation.
True or false: Forecasting of services is an easier process than that of tangible goods.
false
A die shop has three options during production—make the part from a blank, buy a finished piece, or machine a partial piece from a forging. If the production manager chooses to machine an incomplete part from the purchased forging, this is known as the zone.
gray zone
Quality improvement opportunities are ______ in many organizations who have failed to acknowledge them throughout the years.
great: The opportunity to improve quality is great in many organizations.
Collaborative Planning, Forecasting and Replenishment helps customers enjoy _____________product availability.
increased
Supply chain management requires the evaluation of need under more than just strategic or traditional criteria, these newly added categories include
sustainability. risk management. political factors.
ABC manufacturing has decided to use a custom component to decrease the ability of competitors to copy their design, the disadvantage of this is
the part is not readily available.
True or false: One suppliers finished goods can become the purchaser's raw material.
true
Plan
collect data and set performance target.
The Deming Prize is given annually in areas of
individual contributions to the field of TQM. businesses who have successfully implemented TQM.
CRP is connected to the manufacturing plan
on the shop floor.
The three supply chain risk management categories are
operational. financial. reputational.
Descriptions for supplies can be given using a variety of forms, supply personnels responsibility is to
-order as requested. -verify the description and provide alternatives.
To determine the stability of a process the supplier must determine
-the natural capability of the process. -if the upper and lower capability limits meet customer requirements.
The Deming Prize was established in
1950
Quality function deployment was developed in Japan during the _____.
1960s / During the 1960s QFD was developed in Japan.
The five forms and functions of inventory give supply managers types of inventory to operate with.
25
Annual cost for inventory range from __________ of the total value of the inventory.
25-50%
_____ to _____ percent of total product costs can be associated to poor
30 to 40 %
The purchase price of a capital purchase is between _______ percent of the total cost of ownership.
30 to 50%
Formal evaluations consist of ___________ dimensions.
5
The Pareto curve is often called the ______________ - _____________ rule, or ABC analysis.
80 20
What is Quality Function Deployment (QFD)?
A systematic process to integrate customer requirements into every aspect of the design and delivery of products and services A collection of tools used to translate qualitative customer requirements into quantitative products and services.
___________ ______________ ____________ answers the question, "Do we have the needed capacity to process jobs?"
Capacity Requirements Planning
What major developments does MRP II have from MRP?
Connection with financial systems. Capability for what if scenarios.
Quality assurance is important from which aspects?
Customer Supplier Production
Why is supply chain sustainability important to today's supply chain managers?
Developing products that are safe for consumer use. Global warming/climate change concerns. Developing products that use less scarce resources.
What are the difficulties when acquiring services?
Ensuring adequate capacity The inability to store for future use Ensuring the proper timing of delivery
What software facilitates the flow of information across the functional boundaries of an organization effectively?
Enterprise Resource Planning (ERP)
Which of the following are reasons that previously make or buy decisions can be reversed?
Environmental circumstances Market circumstances Organizational circumstances
What is the purpose of ISO 9001:2015?
Increased emphasis is placed on senior leadership accountability with quality and business strategies. Places a greater emphasis on assessing process inputs and outputs in regards to quality. Provides standardized quality management requirements regardless of industry or size of the organization.
What does the acronym ISO stand for?
International Standards Organization
Which system is designed to have components, materials, and services arrive at work centers exactly as needed?
Just-in-time (JIT) systems are designed to have components, materials, and services arrive at work centers exactly as needed.
Vendor Managed Inventory (VMI) is typically for ___________ value items that are needed in stock for immediate use as required.
LOW
Quality Dimensions
Managers ensure quality goods by balancing performance, features, reliability, durability, conformance, serviceability, aesthetics and perceived quality.
What are the challenges service industries face in adopting quality standards?
Managing relationships. Certifying partners. Adapting and applying tools.
Commodity managers must be aware of _________ ,conditions to ensure they meet supply and demand, price movements, and proper acquisition timing.
Market
Which method of description is confined to certain primary materials?
Market Grade
The two-card system for Kanban control has which three rules?
No parts can be made without a production card. There is only one conveyance and one production card per container. Only standard containers may be used.
Service production can be with _____________ or ____________, or a combination of both.
PEOPLE OR EQUIPMENT
Supply need management is important for smaller businesses to maintain ___________ cash flow.
POSITIVE
refers to the ability of a material, good, or service to meet the intended functional use.
Suitability
Performance specification allows the ________ to take advantage of the latest technology to provide the most suitable product.
Supplier
The subcontract cost, schedule, technical control, and configuration control are managed by the
The Subcontract Administrator is responsible for the cost, schedule, and control of the subcontract until completion.
What is a factor that is the key to a business's success that competitors can't easily copy?
The core proficiency is seen as the key to a company's success.
Choose the reasons a firm should purchase goods or services over making them.
The firm has strict on time delivery deadlines and requires a multi-sourcing strategy using an external supplier in addition to an internal source. The firm wishes to take advantage of a supplier's brand image. The supplier can provide the benefit of economies of scale for components that are non-vital to the organization's operations.
Portfolio analysis helps organizations focus more quality attention on
high impact services
To determine the reorder point, the _______ time is necessary.
lead
Reviewing corporate need under a financial examination allows supply managers to help
lift the company's financial ratings. improve return on assets.
Quality assurance responsibilities include
monitor continuous quality improvement programs. establish effective quality controls. supporting quality efforts of suppliers for design. inspecting incoming material.
What is it called when a company contracts with a third party to do some of the company's work?
outsourcing
External failure costs are those that
pass through the system and lead to customer warranties, loss of customers, handling complaints, and product repair.
The quality of the _______, component is the primary concern in services with high labor
people
When ------- stock is not available, the quality of all incoming components, parts, and services must be adequate.
safety
Maintenance, repair, and operating supplies deal with many __________ value purchases.
small
The six eligibility categories for the Malcolm Baldrige National Quality Award are: manufacturing, service,
small business. health care. education. nonprofit.
Specification data can be obtained from
-the buying organization. -private agencies. -government standards.
ABC analysis is an inventory categorization method which consists of dividing items into three categories, A, B, and C: A being the most valuable items, C being the least valuable ones. A items make up about ______ to ___________ percent for an organization.
10 - 20
Organizational need can be divided into broad categories.
7
The Malcolm Baldrige National Quality Award has __________ categories of criteria for organizations to meet.
7
Large fluctuations in demand from the retailer up through the supply chain is known as the ___________ effect.
BULLWHIP
The three stages of sampling, inspection, and testing are
Before the purchase commitment is made to the supplier. During the commitment to the supplier. After a purchase commitment has been made.
How is using description by brand restrictive?
Brand specific requirements can deprive the buyer of using other suppliers.
What are the three steps of a JIT production process?
Build-in quality Worker responsibility Compliance to quality standards
The ________________ refers to the time between purchasing the raw materials used to make a product and collecting the money from selling the product.
CASH CONVERSION CYCLE . Reason: Cash cycle conversion is the measure of time between dispersing cash for investments and accounts payable and collecting accounts receivable.
Insourcing and outsourcing decisions should be evaluated
Continuously
Which of the following is the first step in the acquisition process?
Determine what is needed and why
What are the two steps to the acquisition process when determining commercial equivalents?
Determine what is needed and why. Translate needs into terms suppliers can understand.
True or false: Requirements evaluated under the service criteria are easier to quantify than the remaining traditional criteria.
FALSE :Service components can be harder to quantify.
standards set the regulations that organizations must meet when concerning employee health and safety, environmental factors, or consumer product safety.
Governmental
tQM was developed in ______ by _________.
Japan; W. Edwards Deming
______ __________ forecasts follow patterns over time
Time Series forecasts follow patterns over time
Value proposition describes how _______ will improve customer success and allow the organization to do better.
innovation
Value proposition describes how will improve customer success and allow the organization to do better.
innovation
According to the six sigma philosophy, if you control the ________inputs , ______, you will control the
input, output
Direct spend is likely to be______while indirect spend is normally ________________
insourced / outsourced
The value of materials purchased by market grade is subject to to ascertain the degree of compliance.
inspection
Services are ________ and nonmanufactured.
intangible
The costs associated with defects incurred within the system that can lead to scrap, rework, repair?
internal failure costs
The goal of lean enterprise is to optimize the flow of products and services both ____________ and __________.
internally and externally
ABC automotive does not currently have the necessary technology and expertise to manufacture a mandatory component required for their exhaust systems, the cost of purchasing the machinery, tooling, training, and employees is very costly. ABC automotive should
purchase the part from a third party vendor.
Supply chain for most organizations can be classified into seven categories of resale, MRO, services, other, _______, ________, and ______.
raw components capital assets
Organizations often increases in their competitive advantages due to
reduced cycle time. using a just-in-time delivery system.
ABC manufacturing wants to understand their business needs better, to do this they must first know who
requires
Match the risk management type to the definition for supply terminology. Operational Risk - Financial Risk - Reputational Risk-
-Interruption of goods and services. -Significant change in price of goods/services. -Adverse supplier behavior that affects the purchaser.
Which of the following are reasons that a company may choose to make over buy?
-No existing supplier in the market and not enough time to spend developing one before the product is required. -The ability to produce the material or product at a lower cost and avoid paying a 3rd party's profit margin. To have more control of the quality of the material/product than a supplier.
Standard specifications offer advantages of
-being widely known. -being commonly recognized. -being readily available.
Corporations who use standardization and simplifications can see achievements in
-lower inventories. -improved quality. -lower costs.
Forecasts are typically _________ continuous improvement methods can help increase
wrong
Which items influence the decision of an organization for what needs are required to operate the business?
The size of the organization. The location of the organization. The industry the organization is involved in.
What five areas can supply manager focus on for reduced complexity and exploitation of economies of scale?
Product design Procurement Planning Order fulfillment Manufacturing
____________ refers to the ability of a material, good, or service to meet the intended functional use.
Suitability
True or false: The human element is critical in many services.
TRUE
Reliability
The ability of a product to meet requirements over a specified period of time.
A process that is in a state of statistical control with only common cause variation is considered
capable
What involves all costs attributable to the production of a good or service that is not 100% perfect?
cost of quality
For repetitive purchases contract length is influenced by
design stability. product or life cycle.
When supply chain managers consider logistic needs, the packaging can affect
disposal needs. environmental concerns. transportation requirements.
True or false: Additional criteria that have been added for supply chain managers to evaluate corporate need from has made supply management easier.
false . Reason: Supply management has become more difficult with additional criteria.
True or false: Closure requirements for all subcontracts are universal.
false: Each subcontract closure requirements will vary in complexity, but the performance summary should be included.
True or false: Employees who directly deal with upset customers due to substandard goods or services, always become more prideful in their work.
false: Employees often lose pride in their work or the incentive for continuous improvement.
There are five forms of inventory that include raw materials, work-in-process, _______________goods, ________ items, and resale items.
finished goods MRO
What are the two main pillars of a lean enterprise?
jidoka just in time
Compressed cycle times and proper coordination of material can result in materials arriving ______________ _________ ________
just on time
The Japanese name for continuous improvement is
kaizen
A challenge with MRO purchases is
keeping acquisition costs low. " MRO is a very diverse category that generally deals with small value purchases so keeping acquisition costs low is a challenge.
A company that needs to protect intellectual property, even with a confidentiality agreement, may choose to ___ over ____
make / buy
Fixed-period models attempt to determine the ________ order period.
optimal
A car manufacturer has ________ the installing of windows in all their models to a third party vendor.
outsourced
ABC lunch box is an American eatery, since the customer is directly affected by the food provided, the wait staff should
pay extra attention to any special needs.
The distribution channel between buyers and sellers is represented by .
resellers
Buffer inventory level can be established by using the ______________ coverage.
service
A flaw that results in loss of consumers or a lower customer satisfaction level is a
service defect
When acquiring goods or services, the purchaser must determine
the best buy circumstances.
An informal evaluation of service suppliers should include questions on
the difference between the cost of the service and the perceived value. the ability of the provider to meet quality expectations. the level of customer satisfaction.
The range between 100% insourcing and 100% outsourcing. that is useful for testing and learning both sides of supply without fully committing is known as
the green zone
MRP planning is typically mapped out over
the next year.
The most significant cost for resellers is
the price they pay for goods they resell.
Suitability
the product is a good fit and meets the intended use requirements
Reduced cycle times and more responsive acquisition methods are the direct efforts of
the reengineering work of supply processes.
Besides the dollar value, items are considered strategic if
they allow access to new markets. they improve the reputation of the organization.
Inventories are maintained by organizations
to obtain a reasonable utilization of people and equipment. to smooth the flow of goods through the production process. to provide protection against the uncertainties of supply and demand. to provide and maintain good customer service.
Total quality management, lean thinking, and statistical process control are _____________ and techniques to assure quality.
tools
An integrated effort designed to improve quality performance at every level of the organization.
total quality Management - In TQM all members of an organization participate in process improvement.
True or false: In some instances, 100 percent inspection can significantly increase the cost of producting a part.
true. Depending on the severity of a mistake, 100 percent inspection may be necessary, other times it can increase the cost of a part significantly.