SCM Exam 1
The 4 common techniques in qualitative forecasting
"Grass Roots" Market Research Historical Analogy Expert Panels
Statistical Process Control (SPC) detects
"Special cause/abnormal" variation such that corrective action can be taken.
In NPS Detractors are
0-6 on the scale.
In ABC Classification what customers are most important?
1. A 2. B 3. C
In-control process
1. All points within control limits 2. Normal variation 3. No action is required
In ABC Classification what customers would be the best target to grow?
1. B 2. A 3. C
The forecasting process
1. Decide what to forecast 2. Analyze the appropriate data 3. Select the forecasting model 4. Generate the forecast 5. Monitor Accuracy
Out of control processes
1. One (or more) point outside of control limits 2. Abnormal variation 3. Action required
The purpose of customer commitments or value propositions is all of the following except:
1. The shape customer expectations. 2. The communicate what you must do to win the customer's business. 3. They can change over time. 4. They set the baseline to measure meeting customer needs. They can change over time.
Which of the following is considered a current trend in supply chain mangement?
1. Using Big data + supply chain analytics 2. Increasing supply chain visibility 3. Sustainability
SPC allows firms to
1. Visually monitor process performance 2. Compare the performance to desired levels or standards 3. Take corrective action as quickly as possible
Six Sigma is achieved when defects per million opportunities is
3.4
In NPS promoters are
9-10 on the scale.
What is supply chain management?
A collaborative process management to meet the needs of the customer profitability.
Customer Relationship Management (CRM)
A software system that enables a company to accurately profile customers by tracking the customers' wants and buying habits. The software is a sophisticated form of customer segmentation.
Six sigma
A systematic, data driven approach to making significant quality improvements in value-added processes. Outputs are determined by inputs.
According to the textbook, what are the major drivers of globalization?
Access to resources Access to markets
Why is forecasting important?
All businesses operate under uncertainty Decisions must be made that affect the future Forecasting provides an 'educated guess' about the future
ABC classification
An application of the Pareto Principle to identify and group items—e.g., customers, suppliers, SKUs—in terms of how important they are. Most decision makers use three categories: A items are extremely important; B items are moderately important; and C items are relatively unimportant.
The smoothing constant for exponential smoothing must be
Between 1-0
Milan, Wall Street, and Detroit are examples of
Business clusters
A control chart that measures variables measures what?
Characteristic that has a discrete value and can be counted
Which of the following are steps in ABC classification?
Classify companies by sales Modify classifications based on strategic issues
Quality
Conformance to the requirements of users or customers and the satisfaction of their needs and expectations. (Defined by the customer)
Dimensions of Service Quality
Convenience Reliability Responsiveness Time Assurance Courtesy Tangibles Consistency Expectancy
Conditions which must be present for successful supply chain management include:
Cooperation among firms
The NPS is used to assess all of the following except:
Customer Satisfaction Customer loyalty Predicting Growth All of the above Correct answer: Customer Satisfaction
ISO's core principles of Total Quality Management
Customer focused Leadership Involvement of people Process approach System approach to management Continuous improvement Fact based decision making Mutually beneficial supplier relationships
Why is quality so important to consumer choice and competitive success? (Check)
Customers dont just value quality, they expect it.
Key elements of a CRM system
Data capture technology, data storage, data analytics, and information display systems.
Bullwhip Effect
Erratic demand forecasts which amplify as they move upstream in the supply chain • Causes excess safety stocks and production planning problems
Which of the following can happen as a result of the bullwhip effect?
Excess costs for each firm in a supply chain.
Which of the following is not a critical control decision?
Facility Location
As long as all data points are above the LCL and below the UCL the process is in control
False
Currently, if Apple assembled iPhones in the U.S., using local suppliers for all its parts, the price customers pay for the final product would likely decrease.
False
Managers need to consider multiple aspects and trade-offs holistically in network design decisions.
False
Many large firms are moving towards vertical integration to have more control over the entire supply chain. T/F?
False
T/F: SPC analysis reveals the root cause of the issue such that corrective action can be taken.
False
A customer has a need in an area that we do not have a distinctive core competency. What should we do?
Find other customers or build new capability
A NPS above 0 is considered
Good, 50+ is excellent, and 70+ is considered world class
Today large firms are moving away from vertically integrated to partnership due to
High cost and difficulty managing diverse units
The first step in the weighted-factor rating technique is to:
Identify all factors important to the facility location
Integrated business planning results in all of the following improvements except:
Increased inventory
A customer's experience met their expectation. What is the expected level of loyalty?
Indifferent
Which one of the following is not a type of qualitative forecasting?
Linear Regression
Which of the following are general drivers for global operations?
Market access Resource access
Which of the following approaches can help you mitigate the challenges of poor forecasts?
Obtain and use the best, most recent information available. Build flexible operations
Which Six Sigma tool is used to present data in an organized fashion from most to least severe?
Pareto Charts
Dimensions of Product Quality
Performance Aesthetics Special Features Conformance Relatability Durability Perceived Quality Serviceability Consistency
Manufacturing in china to sell to china customers would be which location decision type?
Proximity to markets
Qualitative forecasting
Qualitative approaches rely on experts' opinions.
The first rule of customer service is
Satisfaction = Perception - Expectation
What component of a time series has variations that consistently repeat over months, years, etc?
Seasonal variations
Which forecasting approach uses historical data to generate a forecast + works well with stable demand?
Simple moving average
4 focus areas of Supply chain
Supply (SRM, Sustainable sourcing, Supplier management) Operations (Demand Management, ERP, SIX SIGMA) Logistics Integration (Risk and secruity management)
What is supply chain
Supply Chain: Flow of products and services from: • Raw materials manufacturers • Component and intermediate manufacturers • Final product manufacturers • Wholesalers and distributors • Retailers Connected by transportation and storage activities, integrated through information, planning, and integration activities
The 4 important elements of the supply chain are:
Supply, operations, logistics, and integration
Describe the two dimensions of an overall global operations system
The Resource Chaser: The Market Chaser:
Which of the following accurately describe the bullwhip effect?
The bullwhip effect argues that small changes in retail-level demand get magnified as they ripple upstream toward suppliers. The bullwhip effect also argues that sharing point-of-sales information immediately with upstream members of the supply chain can reduce costs and improve service. Lastly The bullwhip effect argues that collaborative forecasting with supply chain partners can reduce costs and improve service.
Why does SCM and Operations strategy begin with customer's real needs?
The customer is the only person who puts money into a supply chain. Everyone else merely recycles it.
A process's output can be measured by attribute data. The correct SPC chart to use for this process is
The p and c chart
Customer satisfaction depends on:
The service itself and the way it was delivered.
The SPC Chart used to analyze variable type data is:
The x-bar and r-chart
A forecast is good when the deviation between actual and forecasted demand is minimized
True
As an operations manager, you need to remember Darwin's Law: Only the adaptable survive. After all, Constant adaptation is the only way to establish and maintain world-class operations.
True
Nowadays, access to global talent, labor, and markets is cheaper and easier than it was in the past.
True
T/F: Global location should optimize SCM performance and be consistent with the firm's strategy
True
The economic order quantity (Q) balances the costs of setting up production with the costs of storing goods.
True
The key to successful supply chain management include trust, cooperation, collaboration and transparency. T/F?
True
Which of the following are reasons to set up global operations
Unique resources Closeness to the most important markets New sources of revenue
Special Cause (Assignable) Variation
Variation that is abnormal and caused by factors that can be identified and can (Possibly) controlled.
Common Cause/Random Variation
Variation that is expected and natural in the process itself and can't be controlled
Which quality guru is responsible for the four step—Plan, Do, Check, Act (PDCA)—cycle that is used by almost every global manufacturer today?
W. Edward Deming
What is guardbanding?
When engineers set product specifications tighter than they need to be
Which of the following is not one of the Six Sigma guiding principles?
You must balance the risk of too much and too little inventory.
SCOR Model
a framework that focuses on a basic supply chain of plan, source, make, deliver, and return processes, repeated again and again along the supply chain
Pareto Charts
a graphic way of classifying problems by their level of importance often referred to as the 80-20 rule
Which of the following should you consider as part of the facility-location decision?
a. Labor Costs b. Access to Customers c. Tax Rates d. Materials Costs e. Transportation Rates
Environmental scanning
collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan
When companies design their networks following a global strategy, they can achieve competitive advantage by...
concentrating the configuration of its supply chain activities coordinating the dispersed activities concentrating the configuration of activities and coordinating the dispersed activities
Once a decision on locating a facility is made, it is ______ to move or shut down that facility
costly
In the SCOR model, competitive requirements such as reliability, responsiveness, and agility are all related to what dimension of a vendor's performance?
effectiveness
Customer segmentation
figuring out which customers are likely to be the most valuable to a firm
In a loosely coordinated network...
firms allow each site on the network to operate with full autonomy
SPC analysis
number of different techniques designed to evaluate process output from a conformance view and determine if a process is in-control or out-of-control
SWOT analysis
strengths, weaknesses, opportunities (external), threats (external)
Business Forecasting
the process of using analytics, data, insights, and experience to make predictions and respond to various business needs.
Which of the following is a potential logistical factor that can reduce the appeal for exporting?
transportation costs to serve a global region from the home facility desired customer service level for a given region desired level of customer responsiveness for a given region
Net Promoter Score (NPS)
used primarily to assess customer loyalty, and is a strong predictor of growth.
Define Total Quality Management (TQM)
way of managing in which everyone is committed to continuous improvement of hir or her part of the operation
Identify the five customer value dimensions
• Agility • Innovation • Delivery • Quality • Cost
The four types of control charts
• X bar chart • R chart • P chart • C chart
