SCM 300 DAVILA ASU FINAL

3PL

Third Party Logistics Contractor that performs one or more logistics functions for their client in an effort to facilitate effective and efficient movement in the supply chain. This third party contractor can neither be the buyer nor the seller of the items being moved.

Reverse Logistics

The process of planning, implementing, and controlling the efficient, cost effective flow of raw 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.

Productivity

The ratio of outputs to inputs. From a manufacturing perspective companies seek to maximize the amount of outputs that can be produced and delivered to market while minimizing the required inputs.

1st tier suppliers

company's direct suppliers. firm that directly provides goods and or services to a company.

Push systems

consumer demand is known and expected. supply chain will preemptively buy materials, manufacture finished goods, and even deliver them to a store or a picking and packing facility where consumers can buy them at later date. Inventory is "pushed" toward the consumer in anticipation of consumer demand

What are the competitive priorities?

cost, quality, speed, flexibility

CRM

customer relationship management. On the buyer end of the ERP system.

Omni-channel retailing

retailers that are fully committed to engaging customers via catalogs, phone calls, websites, email, internet chatrooms, social media sites, or mobile apps and in store.

Postponement - relationship to push and pull

A system that combines push and pull - pushing product elements that are considered standard and then allowing customers to pull product elements that can be customized.

Condom Reliability Example

50 condoms, what's the probability that one will be unreliable? (0.98)^50 = 36.4% all 50 are reliable. so that means that 63.6% of the time one of the 50 will be unreliable

Customs House Broker

A contractor (company or person) that helps a client's goods clear customs in a foreign country.

Freight forwarder

A contractor (company or person) that helps companies organize the efficient and effective shipment of goods from one point in the supply chain to another. Freight forwarders do not actually transport the goods, instead they negotiate and arrange for one or more logistics companies to prepare, secure, store, track, and move the cargo.

Process Maps (Flowcharts)

A diagram made up of a series of symbols that maps a process. Each symbol represents a different step or activity in the process. The chart aids in building a quality process and identifying points of concern in terms of managing and delivering quality.

2nd tier suppliers

A firm that provides goods and or services to a company's first tier supplier.

System of Metrics

A group of metrics that collectively attempt to provide a multi-dimensional view of a resource or outcome.

Process Velocity

A measure of how long a unit sits in a process versus the amount of work time that is expended on the unit. optimal time is when it doesn't sit in inventory. 1.0 process velocity

Cash to Cash Cycle

A measure of the number days between the time a company pays their supplier for inventory and the time that same company is paid for the same inventory by their customer.

Capacity Utilization

A ratio of the amount of product produced by a manufacturing process versus the maximum capacity of that facility. what they're producing/what they can produce

Benchmarking

Benchmarking is a process whereby companies compare their practices and performance measurements to those of other companies. Has 4 steps: Identify area to benchmark Identify Leaders Contact Leaders, Gather Data Analyze, Act, Follow-up

major cargo classifications with examples

Bulk - cargo that is loose and free flowing. typically loaded and unloaded by being pumped, scooped, shoveled. Ex. gravel Break Bulk - Cargo that is packaged (box, bottle, can, etc) and or secured on a pallet. this type of cargo can then be placed inside a container or truck trailer. Ex. cereal, pop Neo-Bulk - Typically don't fit into either bulk or break bulk categories. Ex. vehicles, logs, livestock. Typically not moved in containers.

Different types of benchmarking. Provide examples.

Competitive Benchmarking: This type of benchmarking is used when companies want to measure their processes, programs, and outcomes versus those of their direct competitors. (Honda benchmarking Toyota, Dell benchmarking Apple) Functional Benchmarking: When a company benchmarks an organization that is successful in an area where their processes reflect similar inputs, outputs, or values. (Boeing benchmarking quality control techniques at Toyota) Internal Benchmarking: Some organizations are so big that they can benchmark one department versus another. In reality, even smaller organizations can do some kinds of internal benchmarking. (General Electric's energy group hiring practices)

Reefer

Controlled Atmosphere (CA) they are refrigerated modern ones can control humidity, air pressure

C-TPAT

Customs Trade Partnership Against Terrorism A voluntary program developed by US Customs and Border Protection for companies importing goods into the US. The program requires member organizations to report a significant level of detail related to supply chain partners and actions for each imported shipment. In exchange for providing this information to US Customs, member companies are allowed opportunities for speedier and more hassle-free customs clearance.

Basics of the Six Sigma program. DMAIC, DMADV, Black Belt Program, etc.

DMAIC stands for Define, Measure, Analyze, Improve, Control. Define the problem, Measure the performance of the process, Analyze the data measured in an effort to find a root cause, Improve the process, Develop and implement solutions, control the process. Monitor progress and levels of improvement.

What is EOQ? EOQ's relationship to holding costs and ordering costs?

Economic Order Quantity is the lot size (Q) that will minimize the total annual inventory cost (TC). It's seen as the optimal lot size. The lot size is where holding costs = ordering costs.

queuing systems - goals and trade offs

Find the proper balance between long lines/unhappy customers and idle staff/high cost. Companies that have shorter lines are perceived to have better service, but shorter lines typically means employees with less work

bad metric

GPA - plague on education can cause poor outcomes lower morale processes not being manageable high costs and low efficiency when employees push for perfection

Define and identify planogram

How they organize shelves in stores

Safety stock

Inventory kept to account for variation/uncertainty of demand. (Example: 100 shovels are sold per week Sunday to Saturday.

VMI (vendor Managed Inventory)

Inventory planning and replenishment system where supplier(vendor) accepts negotiated responsibilities that typically include monitoring and restocking. Value to retailer: fewer responsibilities, decrease cost. Value to vendor: better understanding of demand rates, fewer retailer errors, responsive.

3 parts of social responsibility

Legal and Ethical Behavior Sustainability Commitment to the Community

LTL

Less than Truck Load Shippers reasonable amount of goods going to single location, but not enough to fill an entire truck or container, they'll have an LTL shipment. Also referred to as LCL (less than container load)

What are the key differences between line flow, flexible flow and hybrid systems?

Line Flow: two types, assembly line and continuous flow system. Assembly Line can typically be stopped at anytime without compromising inventory flowing through the system. Continuous Flow Systems must run to completion once it's been started. (making bread) Flexible Flow: typically works well for producing end times (or services) that have relatively low demand levels and that may require a high level of customization. Work centers focus on a particular function (drilling, sanding, welding, etc)

Reasons orgs use PMs

Metrics can help identify strengths, weaknesses, areas of improvement, and areas of decline. Can create a platform for unbiased recognition and or promotion of people, groups, and companies. Can sometimes point to corrective actions.

Pros and cons of Road Transport

Pros: Fast (2nd fastest), Cheaper than air, high flexibility, competitive market so costs are reasonable and shippers need to be reliable to survive. Cons: weather, traffic, and crime. Lots of licensed and reliable drivers. Fuel costs flux. Rules and regulations may quickly change from one region to the next.

Pros and cons of Ocean/Water Transport

Pros: Low cost per mile for large, bulky, or heavy shipments. Almost anything can be shipped by ocean. Works well in conjunction with intermodal rail and or road transport. Cons: Very slow. Reliability of shipment can be low. Due to lengthy shipments more exposure to the elements, thieves, and hazardous conditions. Getting products to customer using only ocean shipment is very difficult.

Lean manufacturing

Production philosophy that strives to meet consumer demand and desires but with minimal inventory levels and minimal supply chain waste.

Benefits of High and Low inventory Levels/purchases

Pros of high inventory: • Higher levels of customer service - Having inventory will help a company address their immediate demand for product • Quantity discounts may be possible - Lower per unit costs • Fewer orders will need to be placed - Possibly lower ordering costs and transportation costs • Greater security against unexpected demand variability Pros of low inventory: • Less storage space required - Costs of holding inventory may be lower • Lower chance of inventory obsolescence and shrinkage • Less inventory typically means less materials handling requirements • Less money invested in inventory means more money available for other investment opportunities

Pros and cons of Rail Transport

Pros: can handle heavier loads than the road. Better for longer distances than road. Cheaper than road transport. Works well with intermodal ocean and road transport. Cons: slow. Rails aren't easily accessible and available as roads are. Loss can be higher. Reliability can be low. Getting product to customer using only rail is difficult.

Pros and cons of Air Transport

Pros: fastest mode of transport, minimal exposure to elements, theft, and hazardous conditions. Can work well with road transport in getting items into hands of customer. Cons: Extremely expensive, not easily linked with rail and ocean, cannot accommodate standardized containers. Requires accommodating airports on both ends of the shipment.

RFID

Radio Frequency Identification

Value

Ratio of "output purchased" divided by "inputs used to purchase" the product or service. Value can be increased by giving the customer more for the same price or by giving them the same amount at a lower price.

recipe for pizza example

Recipe = business process manage from afar guiding someone to success

Process Maps symbols

Rectangle: task or operation (what size pizza) Diamond: decision point (pickup or delivery) answer takes us in one direction or the other skinny Arrow: which direction things go Oval: Terminator, entry or exit point Rectangle within rectangle: process within it's own (hand order to people making pizza, and then have to wait until its done to be boxed up.) Box Arrow: transportation Circle: inspection Box D: delay Connector: move parts to different pages.

how can supply chains be more sustainable?

Reduce toxic emissions, chemicals dispose toxic materials during production dispose of end products - recycle, landfill, compost, refurbish, and repurpose reuse packaging high fill rates on trucks and in containers reduce fuel consumption elimination of use of certain types of fuels and materials safety programs that include fewer toxins in materials measure the sustainability throughout supply chain

Reliability and Reliability with Backups

Reliability is a measure of the percentage of time a system or product operates successfully. Reliability with a back-up Sometimes a product can utilize a back-up component when the primary component is in an unreliable state.

4 main modes of transportation

Road Rail Ocean/Water Air

Six Sigma

Six Sigma is a quality program that was developed by Motorola in the 1980' s and has been used widely around the world since the 1990' s. This program strives for the complete elimination of defects. The program uses different techniques and quality tools to assess and improve business processes. The Six Sigma program requires integrated efforts where teams from different parts of a company work to identify root causes and then develop solutions. One of the keys to maintaining such strict quality standards is that Six Sigma demands processes that are extremely consistent, thus they have very little variation.

Awards and Certifications

Some organizations utilize certifications and awards to self-assess and also to motivate employees to focus on quality within the organization ISO 9000 - international quality certification that helps orgs to understand the basics of quality management.

SRM

Supplier Relationship Management.

Pull systems

System that is activated by consumer demand. As a result a supply chain will not make and store finished goods inventory. Supply chain waits for consumer to place order and then will buy raw materials and or parts and then deliver them. Inventory is "pulled" by the consumer by communicating a specific desire to those in the supply chain.

Quality

The ability of a product or service to meet a consumer's expectations. products vs services

vertical integration

The act of a company taking on additional supply chain responsibilities that were formerly done by outside parties. There are two classes of vertical integration: forward integration: taking over SC responsibilities formerly performed by downstream supply chain partners. backward integration: taking over SC responsibilities formerly performed by upstream supply chain partners.

Procurement

The branch of an organization responsible for acquiring materials, equipment, products, and services. This would entail finding suppliers, choosing the supplier that offers the best value, negotiating the terms of the purchase, placing orders, and developing long-term relationships with suppliers

Logistics

The branch of the supply chain responsible for developing the transportation itinerary and finding the appropriate transportation and storage partners to successfully navigate the flow of materials from the point of origin to the final destination.

Operations

The branch of the supply chain responsible for making business processes effective and efficient. In essence, operations seeks to help the organization create high quality products and/or services using the fewest resources possible.

What is the bullwhip effect? What are some causes?

The bullwhip effect is a supply chain phenomenon where fairly stable demand results in a proliferation in the amount of inventory that is carried as one travels upstream in the supply chain. Causes: Order batching - when companies place large and infrequent orders from their suppliers Forward Buying - suppliers offering sales. Buyers are motivated to buy in large quantities to take advantage of low prices. Buyers are not buying based on demand but price. Rationing - suppliers don't have enough inventory to satisfy demand Shortage Gaming - customers only receive fraction of placed order.

SCM

The effective and efficient integration of the suppliers, manufacturers, transportation organizations as well as the other parties responsible for collectively bringing products and services to market.

Importance of goals and stakeholders

The key to developing metrics that meet stakeholder goals is first recognizing all the stakeholders and then understanding their individual goals.

Business process outsourcing

The outsourcing of office activities like accounting, human resources, customer service activities (like call centers and customer chat). Sometimes these types of outsourced activities are referred to as back office activities.

TQM

Total Quality Management one of the oldest As the name would suggest, Total Quality Management seeks to address the management of quality at all levels of an organization and/ or supply chain.

TL

Truck Load Shippers specialize in moving large amounts of goods, enough to fill an entire truck. if you're dealing with 20 or 40 foot containers instead of a truck the term CL shipper can be used (container-load)

What's the difference between TL and LTL?

Truck load, less than truck load

TEU

Twenty foot Equivalent Unit this is how containerized cargo is measured. One 20 foot container is equal to 1 TEU.

near sourcing

Typically, it refers to a shift in strategy, where a company used to manufacture goods very far away (example: 8,000 miles away) from the home market, but then shifts to manufacturing in a country that is much closer (example: 750 miles away) to the home market.

Series vs. Parallel

Use Series for pizza example, there's only one way to go. Parallel there's lots of ways to go

Difference between warehouse and a DC.

Warehouses and Distribution Centers tend to be large buildings that contain inventory that will hopefully one day be used and or sold there are differences between the two. Warehouses are used to store things for long periods of times (weeks, months, years) and they need to be kept safe and preserved. In Distribution Centers they are focused on getting items into retail and wholesale outlets.

Reliability Example Pool Cleaner

What are the odds that all 35 parts will be working 99% of the time? (.99)^35 = 70.3% reliable

Intermodal

When cargo is moved from one vehicle or vessel to another without directly handling the cargo. typically cargo would be stored in a standard container and then it can be moved to ship, rail car, truck etc.

contract manufacturers

a company that produces goods on behalf of another org.

Performance Metric (PM)

a single performance measurement used to evaluate, motivate, and improve performance.

Offshoring

a strategy where a company moves manufacturing out of its "home" country to another country.

offshoring and outsourcing

a strategy where a company utilizes a contractor in another country to perform services and or operations

Free Trade Zone

authorities. As such, goods can be imported into a country, brought into an FTZ and then stored, displayed, and/or manipulated before being re-exported without ever being inspected or taxed by customs officials. (In some countries these types of areas go under different names - free economic zone, free zone, export processing zone, special economic zone)

Define and identify dunnage

bubble wrap, styrofoam popcorn, small inflated air bags.

Why do we measure?

can motivate good behavior help us manage from afar help us manage large numbers of resources, outcomes makes decisions help identify/establish standards - design and performance

established channels of distribution

certain chain of organizations have an established history of working together and perhaps coordinating supply chain actions. Might imply that transactions occur regularly and perhaps more fluidly.

types of metrics

descriptive - what happened? predictive - what could happen? prescriptive - what should we do? discovery - things we don't know, weren't looking for. questions and answers we didn't know existed.

What is cross docking?

distribution of goods from an upstream supplier to a downstream customer through a distribution center with minimal handling and storage times typically less than 24 hours.

Reasons orgs utilize performance metrics

helps to establish and support standards motivates good behavior identify trends manage from afar managing large numbers of resources performance data can facilitate decision making and planning

What does it mean if AHC > AOC? AHC < AOC? Should you increase or decrease Q in each case?

if AHC is higher then the holding costs are too high if AHC is lower then your holding costs are too low

pipeline inventory

inventory in transit between two points. the two points establish the pipeline so the inventory doesn't necessarily need to be in a truck or van. The pipeline can be defined as the time raw materials arrive until they are available for sale at the store.

what is a bottleneck and how does it relate to capacity?

limits the overall output of the assembly line. The bottleneck is the slowest or weakest workstation in the assembly line. If you help the bottleneck it can increase the capacity.

Critical Paths

longest path out of all options

established supplier base

means that accepted business practices between you and upstream supply chain partners allow for a certain level of comfort and familiarity in day to day operations.

Whats a good metric?

metrics that motivate companies to work toward outcomes that favor both sides of a supply chain relationship is vital. measurable easily understood attainable

What is a process?

mini supply chain within an organization. tiny cells in the bones Any activity or group of activities that takes an input, adds value to it, and provides an output to an internal or external customer.

Dimensions of Quality (cars, phones, clothing, tv)

performance reliability durability features aesthetics reputation/brand serviceability service response

Last Mile

refers to the portion of the supply chain between the final inventory holding facility and the end consumer.

What should be considered in choosing a supplier

short times and flexible lot sizes. (lead time and lot size)

consequences of poor metrics

supply chain goals are not met poor output waste undesirable employee behaviors managers may make poor decisions employee victimization undeserved winners lack of contentment

Downstream

the direction that points toward the end consumer in a supply chain

Upstream

the direction that points toward the supplier in a supply chain.

What is cycle time? what does it dictate? how does it relate to capacity?

the pace at which product must move through the assembly line in order for it to keep up with demand.

Dimensions of quality: service

time timely complete accurate responsive courtesy consistent accessible convenient

Outsourcing

when a company contracts an outside firm to perform services, operations, or business processes that could be or were previously performed in house

Reneging

when a customer joins the line, gets frustrated and leaves the line

Balking

when a potential customer sees the line but never joins because they think it looks too long or too slow

Crashing

when you lower the length of your critical path