Exam3

Public warehouses

owned by for profit orgs & contracted out

Private warehouses

owned by the firm storing goods

Negotiated pricing:

prices fall somewhere between above two levels

Cost-of-service pricing:

process based on fixed & variable costs of transportation

Logistics:

process of planning, implementing & controlling procedures for the efficient & effective transportation & storage of goods including services

Value-of-service pricing:

services priced at market bearing competitive levels

DMAIC Improvement Cycle

(define, measure, analyze, improve, control)

4 competitiveness factors:

- Economic performance -Government efficiency - Business efficiency - Infrastructure

Trends In CRM

-Ease of Use -Personal value creation -Continuous connectivity -Small data

12 pillars of competitiveness:

1. Institutions 2. Infrastructure 3. Health & primary education 4. Higher education & training 5. Goods market efficiency 6. Labor market efficiency 7. Financial market sophistication 8. Technological readiness 9. Market size 10. Business sophistication 11. innovation

Lean emphasizes:

1. Reduction of waste2. Continuous improvement3. Synchronization of general flows within the organization4. Channel integration- extending partnerships in the supply chain

The 5S program (The Five-S's):

ENGLISH TRANSLATION Sort Set in order sweep standardize Self-discipline

Types of carriers:

Motor carriers, rail carriers, air carriers, water carriers, pipeline carriers, intermodel

Logistics is necessary to:

Move goods from suppliers to buyers , Move finished goods to the customer, Move work-in-process materials within a firm, Return or recycle goods, Store items along the way in supply chains

Inventory & setup time reduction: excess inventory is a waste

Small batch production scheduling drives down costs by: - Reducing purchased, WIP, & finished goods inventories; makes the firm more flexible to meet customer demand - Small production batches are accomplished with the use of kanbans - Kanbans generate demand for parts at all stages of production creating a "pull" system (final assembly line -> cell b -> cell A -> suppliers)

Customer Relationship Management: (CRM)

This means focusing on customer requirements, then delivering products & services in a manner resulting in high levels of customer satisfaction

Target marketing efforts:

addressing specific customer segments avoids becoming a nuisance to other customers

Rail carriers

aka trains, compete when the distance is long & the shipments are heavy & bulky- Slow & inflexible - New- purchasing motor carriers offer pint-to-point pickup & delivery service known as trailer-on-flatcar (TOFC) service - One trend is use of high-speed trains which range in the U.S. from 85-120 mph

Motor carriers

aka trucks, are most flexible mode of transportation- They account for 70% of all freight tonnage moved in the U.S.- Competes w/ rail & air for short-to-medium hauls- Less-than-truckload (LTL) aka UPS or FedEx & truck-load (TL) carriers move small shipments & fees are higher- LTL is much more expensive- General freight carries the majority of goods shipped & include common carriers- Specialized carriers transport liquid petroleum, agricultural commodities, building materials, & other specialized items

Consolidated warehouses

collect LTL shipments

"Lean" Manufacturing

combines a number of different improvement programs; an operating philosophy of waste reduction

Types of transportation:

common carriers- offer transportation services to all shippers at published rates between designated locations w/o discrimination contract carriers- not bound to serve the general public; contract carriers serve specific customers under contractual agreements

Air carriers

expensive relative to other modes but fast- Account for a small portion of total freight hauled- Cannot carry extremely heavy or bulky cargo- For light, high value goods over long distances quickly- Limited in terms of geographic coverage (ex: must have an airport)- Half of the goods transported by air are carried by freight-only airlines, like FedEx

Segmenting customers:

grouping customers to create specialized communications about products

Water carriers

inexpensive, slow & inflexible; includes inland waterway, coastal & intercoastal, & deep-sea. Inland water transportation is used for heavy, bulky, low-value materials (ex: coal)Development in deep-sea transportation & use of supertankers & containerships have made water transportation cheaper & more desirable Competes w/ rail & pipeline

Pipeline Carriers

limited in variety they can carry Little maintenance once pipeline is runningMaterials hauled in a liquid or gaseous stateTransported items include water, oil, gasoline, natural gas, & coal slurry (pulverize coal suspended in water)

Lean Layouts

move people & materials where needed ASAP

Elements of lean:

o Firms reduce costs & add value by eliminating waste from productive systems o Waste encompasses wait times, inventories, material & people movement, processing steps, variability, any other non-value-adding activity

Lean supply chain relationships

o Suppliers & customers work to remove waste, reduce cost, & improve quality & customer serviceo Lean thinking includes delivering smaller quantities, more frequently to point of useo Firms develop lean supply chain relationships with key customers; mutual dependency & benefits occur among these partners

Intermodal

the use of multiple modes of transportation - Most common trailer-on-flatcar (TOFC) service, container-on-flatcar. (COFC), or piggy-back service - Same containers can be placed on board containerships & freight airlines - Water & motor offer point to point service for overseas manufacturers - RO-ROs or roll-on roll-off containerships (went too damn fast)

Acceptance Sampling:

when shipments are received from suppliers, samples are taken & measured against the quality acceptance standard. The shipment is assumed to have the same quality

"The seven wastes"

§ Overproducing- unnecessary production to maintain high utilizations § Waiting- excess idle machine & operator & inventory wait time§ Transportation- excess movement of materials & multiple handling§ Overprocessing- non-value adding manufacturing & other activities § Excess inventory- storage of excess inventory § Excess movement- unnecessary movement of employees § Scrap & rework- scrap material & rework due to poor quality