Supply Chain Final

Server Factory

A factory set up to take advantage of government incentives, reduce taxes/tariff barriers to meet regional needs Firm uses government incentives Low exchange risk and tariff barriers to reduce taxes and logistics costs. Makes minor improvements to product and processes Set up to serve the local market Example: Coca-Cola bottling. Mix the final ingredients to take advantage of exchange rates, tariff, & taxes.

Black belt

A full-time quality professional that has thorough knowledge of six sigma and possesses the technical and managerial process improvement/innovation skills. Leads the project team and problem solving efforts. Identifies projects and selects team members. Trains and coaches team.

What is 6 Sigma?

A quality management process: Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. The goal of Six Sigma is to attain less than 3.4 Defects Per Million Opportunities (DPMO) Six Sigma is a structured and data-driven approach to drive a near-perfect quality goal, i.e., "Zero Defects"

Brown Belt

A six sigma green belt who has passed the black belt certification exam but has not yet done the project

Private Warehouse

A storage facility that is owned by the company that owns the goods being stored in the facility. Generally established by companies that have a large volume or highly valuable goods, or the need for some type of specialized storage or handling. Can be operated as a separate division within a company. Can be co-located on-site with manufacturing, or off-site.

Efficient Consumer Response (ECR)

A strategy to increase the level of services to consumers through close cooperation among retailers, wholesalers, and manufacturers.

Contract Warehouse

A variation of public warehousing that handles the shipping, receiving, and storage of goods on a contract basis. The contract can be for an entire building, or for a defined portion within a building. Usually requires a client to commit to services for years rather than months The fee structure may be fixed cost, cost-plus, or a combination of both. The company providing the space handles the employees, equipment, and maintenance.

Job Shop: Definition Flexibility Product Variety Volume Fixed Costs Variable Costs Lead Time Manufacturing Strategy

Definition- creates a custom product for each customer (ex. custom cabinets) Flexibility- highly flexible Product Variety- very high Volume- very low Fixed Costs- low Variable Costs- high Lead Time- very long Manufacturing Strategy- ETO/MTO

Line Flow: Definition Flexibility Product Variety Volume Fixed Costs Variable Costs Lead Time Manufacturing Strategy

Definition- process has standard products with limited number of variations moving on an assembly line through stages of production (ex. cars) Flexibility- somewhat inflexible Product Variety- limited Volume- high Fixed Costs- moderate Variable Costs- moderate Lead Time- short Manufacturing Strategy- ATO/MTS

Continuous Flow: Definition Flexibility Product Variety Volume Fixed Costs Variable Costs Lead Time Manufacturing Strategy

Definition- process is used to manufacture such items as gasoline, laundry detergent and chemicals. Inflexible process. High capital investment. Flexibility- highly inflexible Product Variety- very limited Volume- very high Fixed Costs- high Variable Costs- low Lead Time- very short Manufacturing Strategy- MTS

Batch: Definition Flexibility Product Variety Volume Fixed Costs Variable Costs Lead Time Manufacturing Strategy

Definition- process manufactures a small quantity of an item in a single production run (ex. clothing manufacturing) Flexibility- somewhat flexible Product Variety- high Volume- low Fixed Costs- moderate Variable Costs- moderate Lead Time- long Manufacturing Strategy- MTO/ATO

International Trade Management (ITM)

International trade activities is a complex process: A typical cross-border shipment involves: Accurately completing and filing about 35 documents. Compliance with over 600 laws and 500 trade agreements which are constantly changing. Interfacing with about 25 parties, including customs, carriers, freight forwarders, other government agencies, etc.

Keiretsu Relationships

Involves companies both upstream and downstream of a manufacturing process, remaining independent but working closely together for mutual benefit

LEAN Layouts

Move people and materials when and where needed, and as soon as possible Are very visual (lines of visibility are unobstructed) with operators at one processing center able to monitor work at another Manufacturing cells: Process similar parts or components saving duplication of equipment and labor. Are often U-shaped to facilitate easier operator and material movements

Manufacturing Strategies

Must develop a manufacturing strategy that suits the type(s) of products that they produce, their customer's expectations, and their strengths Developing a manufacturing strategy that suits a company's strengths is essential for establishing and maintaining an effective supply chain

Public Warehouses- Advantages

No capital investment or property taxes Flexibility: Can be short or long term contract For seasonal products Add storage capacity even on short notice Lower costs and reduced risk Access to special features and services: Temperature-controlled storage Customer Service, Inventory Ordering, etc. Office space for customer's sales, accounting, etc.

Shippers' Association

Nonprofit cooperatives which arrange for members' shipping

Rail and Water Carriers

Offer point-to-point pickup and delivery service known as Container-on-Flatcar (COFC)

Rail and Motor Carriers

Offer point-to-point pickup and delivery service known as Trailer-on-Flatcar (TOFC)

Global Facility Types

Offshore Factory Source Factory Server Factory Contributor Factory Outpost Factory Lead Factory

Trade Compliance

On March 1st 2003, DHS assumed responsibility for securing our nation's borders and transportation systems which straddle 300+ official ports of entry and connects our homeland to the rest of the world. The Department's first priority is to prevent the entry of terrorists and the instruments of terrorism, while simultaneously ensuring the efficient flow of lawful traffic and commerce. Millions of shipments cross into the US annually providing the U.S. with goods and services: 11.2 million trucks 2.2 million rail cars 7,500 foreign-flag ships making 51,000 calls on U.S. ports On a typical day, 70,334 truck, rail, and sea containers are arriving at 328 ports across the US. Businesses violating trade regulations face fines of up to 40% of the value of the merchandise for "negligence," which can mean simply failing to keep certain necessary records. Have become a vital tool for every major importing and exporting company in the US. Really the only way to keep current with all of the continuously changing laws, regulations and procedures. Trade Compliance Systems can automate the process of checking every transaction For commercial and non-commercial products against every legal regulation before import or export.

Green Warehousing

One of the more sustainable goals for a green warehouse is to make it a net zero energy user.

Global Supply Chain

Operating your supply chain globally can present opportunities: Increased revenue through global business (i.e., more customers) and economic opportunities Increased sourcing options with more potential sources of supply to choose from including potential economic opportunities

Advantages of Cross-Docking Warehouse

Operational Efficiency: Warehouse operations are more efficient as the material does not have to be stored at the warehouse, moving directly from receiving to shipping. Inventory Efficiency: As there is no storage at the warehouses, total inventory in the supply chain can be reduced.

What is Operational Management

Operations is described as the "heart" of any business. For Ford Motor Company operations is manufacturing automobiles. For Walmart operations is selling retail merchandise. For Rutgers University operations is educating students. Operations Management refers to the design, execution, and control of the operations that convert resources into desired goods and services (value creation), aligned to company's business strategy.

Straighten

Organize and arrange items to promote an efficient workflow

Lean Supply Chain Relationships

Suppliers and customers work to remove waste, reduce cost, and improve quality and customer service. JIT purchasing includes delivering smaller quantities, at right time, delivered to the right location, in the right quantities. Firms develop lean supply chain relationships with key customers. Mutual dependency and benefits occur among these partners.

Utility Availability and Cost

Supply of electricity has not always kept pace with the high speed of development. China (2006) made several factories shut down for 1 day/week In heavy industries the availability and cost of energy are critical considerations. Telecommunication costs have dropped dramatically. Many organizations now have back office operations and call centers internationally to serve the U.S. market

Challenges of Global Supply Chain

Tariffs or duties (i.e., import taxes) Transporting goods across borders Customs, business practices, and regulations vary by country Foreign markets are not homogeneous even within the country

The 5 Why's and 5 How's Technique

The 5 why's and the 5 how's is a questioning technique designed to drill down into the details of a problem or a solution to find the root cause and the best corrective measure. By repeating why five times, the nature of the problem as well as its solution becomes clear. The 5 why's are used getting to the root cause of a problem The 5 how's are used to develop the details of a root solution to a problem. Both are designed to bring clarity and refinement to a problem statement or a potential solution. This technique is typically used in conjunction with the Cause and Effect Diagram.

World Trade Organization (WTO)

The World Trade Organization (WTO) deals with the global rules of trade between nations. Its main goal is to ensure that trade flows as smoothly, predictably and as freely as possible. WTO functions include: Administering agreements Forum for trade negotiations Trade disputes Monitor trade policies Aid for Developing countries International organizations

Benefits of Trade Compliance Systems

The benefits of implementing a Trade Compliance System include: Increased level of compliance compared to a manual process. Decreased number of physical inspections by US Customs & Border Protection Faster release of shipments by US Customs & Border Protection. Avoidance of fines and penalties. Opportunity to interface with other systems.

Terms of Sale

The delivery and payment terms agreed between a buyer and a seller.

Transportation

The function of planning, scheduling, and controlling activities related to the mode, carrier, and movement of inventories into and out of an organization. Get the right product, to the right place, at the right time by ensuring the product is moved as efficiently as possible from point-of-origin to point-of-destination.

Goal of Operations Management

The goal of operations is to manage processes that transform materials and labor into valued goods and services as efficiently and effectively as possible, while also controlling costs in order to maximize profits.

Total Cost of Manufacturing (TCM)

Total Cost of Manufacturing (TCM) is the complete cost of producing and delivering products to your customers. It incorporates both fixed and variable costs used in the manufacturing, storage, and delivery of the product. It includes all costs associated with: 1.) Production and Procurement activities 2.) Inventory and Warehousing activities 3.) Transportation activities TCM is generally expressed as a cost per unit for each product.

Combination Pricing

price is set at a value between cost-of-service minimum and value-of-service maximum. Most carriers use some form of combination pricing. Common in highly volatile markets and changing competitive situations

4 Types of Manufacturing Strategies

1.) Make-to-Stock (MTS) 2.) Assemble-to-Order (ATO) 3.) Make-to-Order (MTO) 4.) Engineer-to-Order (ETO)

Five R's of Reverse Logistics

1. Returns - Customers return products for a number of reasons. An item may be defective, damaged, seasonal, fail to meet expectations, or be excess inventory. 2. Recalls - Recalls are more complex than basic returns because they typically involve a product defect or potential hazard and may be subject to government regulations, liability concerns or reporting requirements. 3. Repairs - Not all products that are returned are disposed. Manufacturers may identify the failure and repair, refurbish or remanufacture the product to like-new condition and return it to stock, or harvest various components for re-use. 4. Repackaging - 95% of returned products are because customers are dissatisfied with them not because there are defective. These products are typically repackaged and returned to inventory for restock or resale in secondary channels. 5. Recycling - When products reach the ends of their useful lives and must be scrapped, companies must find safe, cost-effective and environmentally friendly ways to dispose of them. By salvaging, reclaiming and re-using components, companies can reduce costs and minimize waste.

3 Foundational Aspects of 6 Sigma

1.) Quality is defined by the customer- Customers expect performance, reliability, competitive prices, on-time delivery, good service, clear and correct transaction processing and more. 2.) Use of technical tools- such as statistical quality control, and the seven tools of quality. Six Sigma provides a statistical approach for solving any problem and thereby improves the quality level of the product as well as the company. All employees should be trained to use technical tools. Six Sigma is concerned with the permanent fix to quality problems and seeks to identify and correct the root cause of the problem. 3.) People Involvement- Six Sigma follows a structured methodology, and has defined roles for the participants. A company must involve all its employees in the Six Sigma program, and provide opportunities and incentives for employees to focus their talents and ability to satisfy customers. All employees are responsible to identify quality problems. It is important that all Six Sigma team members have a well-defined role with measurable objectives. The members of an organization are assigned specific Six Sigma "roles"

Primary Functions of a Warehouse

1.) Receiving 2.) Storage 3.) Picking 4.) Packing 5.) Shipping

The 5-S's

1.) Sort 2.) Straighten 3.) Shine 4.) Standardize 5.) Sustain

Modes of Transportation

1.) Truck 2.) Rail 3.) AIr 4.) Pipeline 5.) Water

W. Edwards Deming

14 points to guide companies in quality improvement: 1.) Create constancy of purpose to improve product and service 2.) Adopt the new philosophy 3.) Cease dependence on inspection to improve quality 4.) End the practice of awarding business on the basis of price 5.) Constantly improve the production and service system 6.) Institute training on the job 7.) Institute leadership 8.) Drive out fear 9.) Break down barriers between departments 10.) Eliminate slogans and exhortations 11.) Eliminate quotas 12.) Remove barriers to pride of workmanship 13.) Institute program of self-improvement 14.) Put everyone to work to accomplish the transformation

Right-to-work laws

28 states have laws protecting the right of employees to decide whether or not to join or support a union.

Cross Docking

A LEAN concept because it eliminates the need to store inventory, and reduces some transportation, which are both wastes.

Third Party Logistics (3PL)

A Third Party Logistics (3PL) company is an outsourced provider that manages all, or a significant part, of an organization's logistics requirements for a fee. 3PL providers charge a fee for their services. They typically generate a 10 to 20% savings in logistics costs. Favored by small businesses Used to a significant degree for international logistics

Public Warehouse

A business that provides storage and related warehouse functions to companies on a short or long-term basis, generally from month-to-month. Own all of their equipment and hire their own staff to manage the facility. Fees are typically a combination of a monthly storage fee plus a pallet-in fee and a pallet-out fee. Fees will vary based on what is being stored and/or based on: Size and weight of the pallets If they can be stacked How fragile the product is Value of goods (risk of theft) Hazards associated with the goods They may also have some document fees and account management fees.

Master Black Belt

A career path. Has successfully led ten or more teams through complex projects. Proven change agent, leader, facilitator, and technical six sigma expert.

Warehouse

A facility used to store purchases, work-in-process (WIP), and finished goods inventory.

Offshore Factory

A factory set up for manufacturing or assembly in a country where labor and/or raw materials are less expensive, for eventual import back into the manufacturer's home country. Manufactures products at low cost with minimal technical and managerial resources Take advantage of low labor costs Import or acquire parts locally, then export to the manufacturer or directly to customers Local management serves in a supervisory roll not in making management decisions. Example: Clothing produced in Bangladesh

Warehouse Network

A warehouse network is simply the number of, and the relationship between, the warehouses that a company has in their organizational structure. The fundamental questions to be answered in establishing a warehouse network are: How many warehouses does the company need? Where should they be located? Trade-offs that will determine how many warehouses the company needs and where they should be located are; (1) the level of customer service the company wants to provide and (2) the amount of inventory the company is willing to invest in

12 Global Location Factors

Access and Proximity to Markets Access to Suppliers and Cost Business Clusters Competitiveness Currency Stability Environmental Issues Labor Availability and Cost Land Availability and Cost Quality of Life Issues Taxes and Incentives Trade Agreements Utility Availability and Cost *These are factors used to compare and contrast one potential location against another when making global location decisions

Just-in-Time (JIT)

An inventory strategy to decrease waste by receiving materials only when and as needed in the production process, thereby reducing inventory costs.

Land Availability and Costs

As land and construction costs in big cities continue to escalate, the trend is to locate in the suburbs and rural areas

Assemble-to-Order (ATO)

Assemble-to-Order (ATO) is a manufacturing strategy where products ordered by customers are produced quickly and are customizable to a certain extent. The ATO strategy requires that the basic parts for the product are already manufactured but not yet assembled. Once an order is received, the parts are assembled quickly and sent to the customer. ATO is a hybrid strategy between a Make-to-Stock strategy where products are fully produced in advance, and the Make-to-Order strategy where products are manufactured once the order has been received. The ATO strategy attempts to combine the benefits of both strategies - getting products into customers' hands quickly while allowing for the product to be customized.

Yellow Belt

Basic understanding of 6 Sigma and tools in the DMAIC problem solving process A team member that reviews processes and process improvements in support of 6 sigma process improvement project A person who has passed Green Belt Certification exam but has not yet completed project

Load or Transportation Broker

Bring shippers and carriers together

Reduced Lot Sizes and Shipping Quantities

By reducing lot sizes and shipping quantities, a company can increase velocity in the warehouse, and get shipments out faster. Faster throughput is a LEAN concept.

Green Reverse Logistics Programs

Can have a positive impact on the environment though activities such as recycling, reusing materials and products, or refurbishing unused products. These programs can reduce environmental impact on landfills and deal with dangerous contaminants. Example: Unused pharmaceutical product returned to the pharmacy rather than "flushing it down the toilet" which ultimately causes the drug to end up in the water supply.

Water

Carries heavy, bulky, low value materials like coal, grain, sand, and petroleum. However, because transport by water is so cheap almost any item may be shipped by water including: automobiles, produce, containerized cargo, etc. Inexpensive Very slow and inflexible Competes with rail and pipeline Includes inland waterway, coastal and intercostal, and deep-sea cargo shipments. Primarily used for very heavy, very bulky, and very low-value materials (e.g., coal, grain, sand) Often paired with trucks for door-to-door delivery.

Air

Carries items with a high cost to weight ratio. Very light, high-value goods that need to travel long distances quickly including jewelry, fine wines, pharmaceuticals, racehorses, etc. Most expensive mode of transportation Generally the fastest mode of transportation. Transports about 5% of U.S. freight. Cannot carry extremely heavy or bulky cargo. Mostly for light, high value goods, over long distances, quickly. Half of the goods transported by air are carried by freight-only airlines, e.g., FedEx. Other half in passenger planes with luggage. Often are paired with trucks for door-to-door delivery.

Pipeline

Carries materials in a liquid or gaseous state including: petroleum, natural gas, drinking water, gasoline Lowest per unit cost for transportation. Limited in the variety of commodities they can carry. Most reliable form of transportation. Little maintenance needed once the pipeline is running. Materials are transported in a liquid or gaseous state.

Seven Tools of Quality Control

Check Sheets Cause and Effect Diagrams (aka, "Ishikawa" or "fishbone" diagram) Control Charts Histograms Pareto Analysis Scatter Diagrams Stratification (aka, Flow Diagrams)

Classical View of Quality vs. Six Sigma View of Quality

Classical: 99% Good or 3.8 standard deviations Six Sigma: 99.99966% Good or 6 deviations

Shine

Clean the work area so it is neat and tidy

Market Positioned Strategy

Close to customers to maximize distribution services and improve delivery.

Product Positioned Strategy

Close to supply source to collect goods and consolidate before shipping products out to customers.

Increased Automation

Companies are using automated systems like pick to light, voice picking, conveyor systems, automatized guided vehicles (AGV's), and robotics to improve efficiencies and throughput times in the warehouse.

Global Locations

Companies can locate anywhere in the world due to increased globalization, technology, transportation, and open markets. Facility location must be part of the firm's supply chain strategy. Decisions involve: Defining each facility's strategic role (i.e., what type of facility) Determining the location for each facility (i.e., where in the world) Identifying the market(s) that each facility serves

Hybrid Approach

Companies may choose to do some type of a hybrid approach to balance costs and inventory against customer service. One hybrid network is a "hub-and-spoke" where there is a centralized warehouse (i.e., the "hub") which holds most of the inventory linked to a series of smaller geographically dispersed warehouses (i.e., the "spokes") which hold only a small amount of inventory to support their local area in the immediate time frame The hub warehouse feeds the spoke warehouses with inventory as necessary on a regular basis. Operating costs are lower because the spoke warehouses are smaller than in a decentralized model. Inventory is also lower as all of the safety stock is held centrally, which generally means that less total safety stock is required because all of the risk and uncertainty is managed centrally. Customer service is generally better than in a purely centralized model since some of the inventory is maintained closer to the customer.

Weighted-Factor Rating Model

Compares the attractiveness of several locations along a number of quantitative and qualitative dimensions. Identify the factors Assign weights to each factor. The weights sum to 100%. Determine a score for each factor. Multiply the factor score by the weight, then sum the weighted scores The location with the highest total weighted score is the recommended location.

Rail

Competes for transportation when the distance is long and the shipments are heavy or bulky. Carries very heavy shipments including heavy building materials, construction equipment, coal, etc. Rail is slow and inflexible but it has the most capability Rail carriers have begun purchasing motor carriers and can now offer point-to-point pickup and delivery service. Rail companies use each other's rail cars. Keeping track of rail cars and getting them where needed can be problematic. Railroad infrastructure and aging equipment are also problems for the railroads. Often are paired with trucks for door-to-door delivery.

Freight Forwarder

Consolidates LTL shipments into FTL shipments. They take small shipments from multiple companies and consolidate them into larger shipments.

Functional

Consolidation Break-Bulk Cross-docking

Continuous Improvement

Continuous approach to reduce process, delivery, and quality problems, such as machine breakdown problems, setup problems, and internal quality problems.

Transportation Company Classifications

Contract Carriers Private Carriers Common Carriers Exempt Carriers

Disadvantages of Using a 3PL

Control: A company will not have direct control over the logistics operation. Dependency: Outsourcing logistics creates a dependency on the 3PL. Pricing: The company is locked into the pricing model specified in the contract

Private Warehouse Advantages

Control: Offers greater flexibility in designing the warehouse and gives users significant control over operations. Visibility: inventory, material flow, handling, supervision, and associated costs. Cost: Operating cost can be 15% - 25% lower if the company achieves at least 75% utilization.

Advantages of Using a 3PL

Cost: Eliminates the need for a company to invest in warehouse space, technology, and staff to execute the logistics process. Logistics Expertise: Knowledgeable of industry best practices and the latest developments in technology. Efficiency: 3PL's can leverage relationships and volume discounts, which result in lower overhead and the fastest possible service.

Benefits of LEAN

Implementing LEAN to reduce the waste (non-value added) Reducing wastes consequently results in: Reduced cycle times Greater throughput Better productivity Improved quality Reduced costs All of these improve customer satisfaction and provide competitive advantage

Role of Management

Create cultural change needed for LEAN to succeed: Provide atmosphere of cooperation. Empower workers to take action based on their ideas. Develop incentive system for lean behaviors.

Penalties for Violations

Criminal Penalties Substantial Fines (and/or) 10+ years imprisonment Civil Penalties Substantial fines per occurrence Individual and/or company sanctions Statutory Sanctions Seizure and forfeiture of items in violation, including the vessels and aircraft carrying the items. Loss of import and/or export privileges for a business unit, division, or for the entire company. Detailed inspections of every single shipment, and delayed release by US Customs & Border Protection.

LEAN Warehousing

Cross Docking Reduced Lot Sizes and Shipping Quantities Increased Automation Green Warehousing

Global Logistics Intermediaries

Customs Brokers International Freight Forwarders Trading Companies Non-Vessel-Operating Common Carriers (NVOCC)

US Department of Homeland Security (DHS)

DHS is the government agency whose mission is to: Prevent terrorist attacks within the United States Reduce America's vulnerability to terrorism Minimize the damage from potential attacks and natural disasters On March 1st 2003, DHS assumed responsibility for securing our nation's borders and transportation systems which straddle 300+ official ports of entry and connects our homeland to the rest of the world. The Department's first priority is to prevent the entry of terrorists and the instruments of terrorism, while simultaneously ensuring the efficient flow of lawful traffic and commerce.

2 Key Methodologies of Six Sigma

DMADV Methodology: Define --> Measure --> Analyze --> Design -->Verify: which is a data-driven quality strategy for designing products & processes. This methodology is used when the company wants to create a new product design or process that is more predictable and defect free. DMAIC Methodology: Define --> Measure --> Analyze --> Improve -->Control: which is a data-driven quality strategy for improving products & processes. This methodology is used when the company wants to improve an existing business process. DMAIC is the most widely adopted and recognized Six Sigma methodology in use. It defines the steps a Six Sigma practitioner typically follows during a project.

The 8 Wastes (DOWN TIME)

Defects Overproduction Waiting Non-Utilized Talent Transportation Inventory Motion Extra-processing

Technology and Trends in Transportation

Driver Monitoring Traffic Coordination Safety Technology Platooning New Concept Trucking Vertically Folding Shipping Containers Driverless Trucks Drone Delivery

Contract Warehouse Disdavanteges

Duration: The client company is expected to enter into a contract for a specific period of time; generally three years.

Human Relations Managment

Elton Mayo Lighting experiment and effects on productivity Human factor in management

Engineer to Order (ETO)

Engineer-to-Order (ETO) is a manufacturing process in which the component is designed, engineered, and built to specifications only after the order has been received. It is a more dramatic evolution of a Make-to-Order supply chain. The essence of ETO is building a unique product every time. There may be components that are common from one product to another, but not in the same quantity as in repetitive manufacturing. In the ETO world, the cost of poor quality can be very high. The warranty costs and the cost of rework to replace an item in a complex assembly can have a serious negative effect on profit margins. Quality must be part of the entire process, and not just part of purchasing and manufacturing—the typical focus of a repetitive manufacturer.

Net-rate Pricing

Established discounts and accessorial charges are rolled into one all-inclusive price. Pricing is tailored to the individual customer's needs

Inventory, Setup Time, and Changeover Time Reduction

Excess inventory takes up space, and costs money to hold, maintain, protect, secure, and insure. It ties up financial capital which could be used for other aspects of the business. Reducing inventory levels can free up capital and reduce holding costs. There is less likelihood of waste being created by obsolescence, expiry, spoilage, or damage with lower inventory levels.

Outpost Factory

Factory set up in an area with an abundance of advance supplier, competitors, research facilities, etc. Setup in a location within proximity to: Advance suppliers. Competitors. Research facilities & universities for materials, components and products. Example: Silicon Valley, California

Make-to-Stock Lead Times

Features economies of scale, large volumes, long production runs, low variety, and multiple distribution channels. Customer Delivery Lead Time

Waste (Muda) Reduction

Firms reduce costs and add value by eliminating waste from the production system. Waste encompasses wait times, inventories, material and people movement, processing steps, variability, any other non-value-adding activity. Before Waste is removed, processes are often scattered, which can negatively affect your customers After Waste is removed, processes are more streamlined, resulting in more satisfied customers. You'll also save your organization time and money

Statistical Tools- Control Charts

Firms: Gather process performance data. Create control charts to monitor process variability. Then collect sample measurements of the process over time and plot on charts. Allows firms to: Visually monitor process performance. Compare the performance to desired levels or standards. Take corrective action as necessary. Natural Variations Expected and random (can't control) Assignable Variations Have a specific cause (can control) Variable Data Continuous (e.g., weight) Attribute Data Indicate some attribute such as color and satisfaction, or beauty.

Contributor Factory

Focused on product development and engineering for products that they manufacturer Basically, a Server Factory which also includes: Product development. Production planning. Procurement decisions. Supplier development. Example: 1973 Sony built a Server factory in Wales and then 15 years later got involved in development, planning, etc. and now is a Contributor factory

Statistical Tools- Pareto Analysis

For presenting data in an organized fashion, indication process problems from most to least severe

Repackaging

For specific customer orders

Scientific Management

Fredrick Taylor- steel mill Efficiency Henry Ford Assembly line

Warehousing

Function that allows a company to receive, store, breakdown, repackage, and distribute items to a manufacturing location, or finished products to a customer Decisions driving warehouse management include: Site selection Number of warehouse facilities in the network Layout of the warehouse(s) Methods of receiving, storing, retrieving, and distributing products and materials.

Business Clusters

Geographic concentrations of interconnected companies and institutions. Research parks and special economic / industrial zones serve as magnets for business. Reasons for success: Innovation and competition can be geographically concentrated. Close cooperation, coordination, and trust among clustered companies Fierce competition among rival companies Companies recruit from local skilled workers

Environmental Issues

Global warming, air pollution, and acid rain are debated as being the price of industrialization. Trade liberalization creates the need for environmental cooperation

Private Warehouse Disadvantages

High Start-up Cost: Capital to build or buy a warehouse. Long, risky investment. Cost of hiring and training employees. Purchase of material handling equipment. Fixed Location: Not easy to move to another location if the market changes. Fixed Size and Costs: When volume is low, the company still assumes the fixed costs.

Currency Stability

Impacts business costs and consequently location decisions. A few years back, Brazil had 1000% annual inflation rate. Not so easy to set prices in that currency environment.

Return of Unsold Goods

In some industries, goods are distributed to downstream members in the supply chain with the understanding that the goods may be returned for credit if they are not sold e.g., newspapers, magazines, even pharmaceuticals. This acts as an incentive for downstream members to carry more stock, because the risk of obsolescence is borne by the upstream supply chain partner. The risk is that the downstream member in the supply chain might exploit the situation by ordering more stock than is required and returning large volumes.

Problems with Poor Reverse Logistics

Inability of information systems to handle returns Lack of worker training in reverse logistics procedures Little or no identification on returned packages Need for adequate inspection and testing of returns Danger of placing returned products back into sales stocks Can have a large impact on how a consumer views a product or brand, potentially impacting future sales. Retail returns = 6% to 10% of sales

Typical services offered by 3PL's include

Inbound Transportation Outbound Transportation Warehousing Pick and Pack Freight Forwarding Customs Brokerage Customs Clearance Order Taking Billing and Invoicing Inventory Auditing Freight Bill Auditing and Payment

Quality Inspections

Incoming and outgoing

History of Operations Management

Industrial Revolution Scientific Management Human Relations Operations Research Quality Research Internet Revolution Globalization

12 Pillars of Cometitiveness

Institutions Infrastructure Macroeconomic stability Health and primary education Higher education and training Goods market efficiency Labor market efficiency Financial market sophistication Technological readiness Market size Business sophistication Innovation

Inter modal Transportation

Intermodal is sometimes referred to as the sixth mode of transportation, but it is really the use of multiple modes of transportation to execute a single transport shipment. Intermodal is growing substantially because it is fairly cost-efficient and cost-effective. The most common forms of intermodal transportation involve: Rail and Motor Carriers Rail and Water Carriers Roll-on/Roll-off Ships

Manufacturing Processes

Job shop Batch Line Flow Continuous Flow

Sort

Keep only necessary items in the workplace, eliminate the rest

Lean and Six Sigma

LEAN - is an operating philosophy of waste reduction and value enhancement and was originally created as the Toyota Production System (TPS) by key Toyota executives. Six Sigma - is an enterprise and supply chain-wide philosophy that emphasizes a commitment toward excellence, encompassing suppliers, employees, and customers LEAN and Six Sigma complement one another; LEAN focuses on eliminating wastes and improving efficiency Six Sigma focuses on reducing defects and variations Lean + Six Sigma = Faster speed and better accuracy

Role of Supplier

LEAN builds long-term supplier relationships: Partner with suppliers Improve process quality Information sharing Goal to build relationships with fewer suppliers

Labor Availability and Cost

Labor availability, productivity, and skill. Unemployment / underemployment rates Wage rates; turnover rates; labor force competitors.

Small Batch Scheduling

Lean Manufacturing attempts to reverse this though small batch scheduling. Smaller batches will facilitate producing at the same rate as customer demand. Production in small batches creates a smooth workload as production can be synchronized with customer demand, facilitating a pull system. It increases flexibility allowing the company to respond to changes in customer demands more quickly. Throughput times in manufacturing go down, and Work-in-Process inventory goes down, reduce costs and eliminating or minimizing waste in the system. The company can also get the product to the customer more quickly. Shortens manufacturing lead time and the actual time it takes to produce a product, however, setup time must be low so that it is easy to switch from producing one type of product to another. Small batch scheduling can be facilitated through the use of Kanbans: "Signal" or "Card" in Japanese used for communication (e.g., visual signal) between workstations Contains information passed between stations. Authorizes production or the movement of materials to the next workstation. Could be conducted through the use of a computer software program, i.e., ERP system.

Make-to-Stock (MTS)

Make-to-Stock (MTS) - literally means to manufacture products for stock based on demand forecasts, which is a "push" system. Since accuracy of the forecasts is expected to prevent excess inventory and opportunity loss due to stockouts, the critical issue is how to forecast demands accurately. MTS is like a train schedule (supply schedule) for which the number of passengers (forecast demand) for each time period is primarily determined from historical data. Most daily necessities such as processed foods, sundries, and textiles are MTS-type products. One issue of MTS is to avoid having excess inventory. Companies today that operate with an MTS model struggle to make the correct product at the correct time in the correct quantities.

Implementing Lean and Six Sigma

Lean and Six Sigma are complementary principles providing the customer with the best possible quality, cost, and delivery. There is significant overlap, but the two initiatives approach their common purpose from somewhat different angles: Lean focuses on waste reduction, whereas Six Sigma emphasizes variation reduction and the elimination of defects. Lean achieves its goals by using less technical tools such as Lean Layouts, Continuous Improvement, and Respect for People, whereas Six Sigma uses technical tools such as Root Cause Analysis, Statistical Process Control, and DMAIC. The most common and successful implementations begin with Lean, reducing waste, and using value stream mapping to make the workplace as efficient and effective as possible. Typically this is followed by implementing the more technical Six Sigma statistical tools to resolve process problems. Both Lean and Six Sigma require strong management support to incorporate these principles into the standard way of doing business.

Lean

Lean is not a tool box of methods, ideas, or methodologies. Lean is a culture. LEAN provides value for customers through the use of the most efficient resources possible LEAN is standard in many industries LEAN often results in: Large cost reductions Improved quality Increased customer service

Elements of Lean

Lean manufacturing Total Quality Management Respect for people

Logistics

Logistics- "...that part of supply chain management that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information, from point of origin to point of consumption, in order to meet customer requirements." A simpler definition of Logistics is: "the management of inventory in motion and at rest." Logistics is necessary to: Move goods and materials from suppliers to buyers Move goods and materials between sites (internal and external) Move finished goods to the customer Products have little value to the customer until they are moved to the customer's point of consumption Delivered at the right time. Delivered to the desired location.

Make-to-Order (MTO)

Make-to-Order (MTO) is a manufacturing strategy that typically allows customers to purchase products that are customized to their specifications. The MTO strategy only manufactures the end product once the customer places the order, creating additional wait time for the consumer to receive the product but allowing for more flexible customization. MTO strategy is like an elevator because it starts by receiving a customer order just as an elevator starts by the pressing of a button. The MTO strategy relieves the problems of excessive inventory that is common with the traditional Make-to-Stock strategy. MTO is not appropriate for all types of products. It is appropriate for highly configured products such as computer servers, aircraft, ocean vessels, bridges, automobiles, or products that are very expensive to keep in inventory.

Intermediately Positioned Strategy

Midway between supply source and customers, when distribution requirements are high and product comes from various locations

Truck

Most flexible mode of transportation. Carries > 80% of U.S. Freight. Competes with Rail and Air for short-to-medium hauls. Short haul = 0 - 200 miles of the driver's home terminal Long haul = over 200 miles from the driver's home terminal Because of interaction with other transportation modes to and from ports & warehouses Carries nearly anything from packaged household goods, to building materials, to gasoline, etc.

Workforce Empowerment

Managers must support LEAN Manufacturing by providing subordinates with the skills, tools, time, and other necessary resources to identify problems and implement solutions.

Sources Factory

Manufactures products at low cost but with skilled workers and significant managerial resources Basically, an offshore factory that includes: Plant management involvement in supplier selection Plant management involvement in production planning More developed local infrastructure Access to skilled workforce Low production costs Example: Hewlett-Packard Singapore factory produced calculators and keyboards

Warehouse Network Strategy

Market Positioned Strategy Product Positioned Strategy Intermediately Positioned Strategy

US Customs and Border Protection (CBP)

Originally established in 1789, U.S. Customs and Border Protection (CBP) controls the import process It is the gateway agency for more than 20 other government agencies each of which has some control over various aspects of international trade. Its mission is to safeguard America's borders thereby protecting the public from dangerous people and materials while enhancing the nation's global economic competitiveness by enabling legitimate trade and travel. CBP works to secure and facilitate imports arriving in the U.S., accommodating the increasing volume and complexities of international trade. CBP protects U.S. through active inspections at ports of entry. CBP has a strong base of industry partnerships and technology to safeguard the American public and promote legitimate international commerce.

Shipping

Outgoing shipment of parts, components, and products. Includes packaging, marking, weighing, and loading for shipment.

Types of Warehouses

Ownership Functional

Exempt Carriers

Person or company specializing in services or transporting commodities exempt from regulation by the Interstate Commerce Act.

Private Carriers

Person or company that transports its own cargo as a part of a business that produces, uses, sells or buys the cargo that is being hauled.

Common Carriers

Person or company who transports freight for a fee that can be hired by anyone to transport goods.

Contract Carriers

Person or company who transports freight under contract to one or a limited number of shippers.

Foreign Trade Zones (FTZ's)

Physical areas inside the US supervised by U.S. Customs and Border Protection that are considered to be outside of the U.S. territory. Usually located at or near a port of entry. Foreign and domestic merchandise may be moved into FTZs for operations, not otherwise prohibited by law, including storage, exhibition, assembly, manufacturing, and processing. While in the FTZ, merchandise is not subject to U.S. duty or excise tax. U.S. duty and excise tax, if applicable, are only payable when the material is moved outside the FTZ for consumption. Foreign-trade zone sites are subject to the laws and regulations of the United States as well as those of the states and communities in which they are located. There is no limit on the time material may remain in the zone. Internationally, similar areas are called free trade zones.

Receiving

Physical receipt of material, identification, inspection for conformance with the purchase order (quantity and damage), put-away, and preparation of receiving reports

Packing

Placing one or more items of an order into an appropriate container for safe shipping , and marking and labeling the container with customer shipping destination data, and other information that may be required.

Multiple Warehouses

Positives: Potentially faster delivery to customers from a decentralized network that is geographically dispersed throughout the market, assuming adequate inventory in each warehouse. Negatives: More complicated Operating costs and inventory will be higher as each warehouse costs money to staff and operate. Duplication of equipment, warehouse staff, and managers Network will be decentralized and the company will have to spread its best people, equipment and inventory systems across a larger network.

Public Warehouse- Disadvantages

Potential for incompatible computer systems Specialized services may not be what is required/needed Space may not be available when/where needed

Pros and Cons

Pro - Regulation tends to assure adequate transportation service throughout the country. Protects consumers from monopoly pricing, safety, and liability. Con - Regulation discourages competition and does not allow prices to adjust based on demand or by negotiation. Deregulation encourages competition and allows prices to adjust as demand and negotiations dictate. U.S. transportation industry remains mostly deregulated

Uniform Plant Loading

Problem: Demand exceeds capacity at points in the planning horizon. Matching the production plan to follow demand exactly can contribute to inefficiency and waste. Uniform Plant Loading: Planning up to capacity in earlier time periods to meet demand in later time periods. Also called "front-loading" the plan or "leveling" the plan. Production schedule is frozen in the up-front time period (i.e., month) Helps suppliers better plan production.

Relationship of TCM and Manufacturing Strategy

Procurement and Production costs per unit go down as volume goes up (generally, a step function applies as more capital will be required to produce more as volume grows) Inventory and Warehousing costs per unit go up as volume goes up (must hold more inventory and pay for more storage space, insurance, taxes, etc.) Transportation costs per unit go down as volume goes up, but level off at high volumes (economies of scale in transportation until the container/conveyance is filled up)

Main reasons for implementing cross docking

Provide a central site for products to be sorted and combined for delivery to multiple destinations in the most productive and fastest method possible. Consolidate: Combine smaller product loads into one method of transport to save on transportation costs. Break-Bulk: Break down large product loads into smaller loads for transportation for an easier delivery process to the customer.

Ownership

Public Warehouses Contract Warehouses Private Warehouses

Intermodal Marketing Company

Purchase blocks of rail capacity and sell it to shippers

Secondary Functions of Warehouse

Quality Inspections Repackaging Assembly Operation

Carrier

Refers to the company that transports the goods

Mode

Refers to the way in which goods are transported

Make to Order Lead Times

Relies on relatively small quantities, but more complexity

Respect for People

Respect for all people must exist for an organization to be at its best Flatter hierarchy than traditional organizations. Ordinary workers given great responsibility. Supply chain members work together in cross functional teams. The goal is NOT to reduce the number of people in an organization, it is to use people resources more wisely.

Reverse Service Logistics

Reverse logistics cost 4 - 5 times as much as forward logistics and requires on average 12 times as many processing steps. Often viewed as: An "unwanted" supply chain activity. Many companies outsource this activity to a 3PL A cost of doing business A quality or regulatory compliance issue

Reverse Logistics

Reverse logistics involves the process of moving a product from the point of customer receipt back to the point of origin to recapture value or ensure proper disposal. Backwards flow of goods from customers in the supply chain "Reverse logistics is all about damage control and making the process as customer-friendly as possible"

Standardize

Schedule regular cleaning and maintenance

Free on Board (FOB) Destination

Seller arranges for transportation and adds charges to the sales invoice. Seller assumes the risk for in-transit loss or damage. Title does not pass to the buyer until delivery is completed.

Free on Board (FOB) Origin

Seller states price at point of origin and agrees to load a carrier Buyer selects the carrier and pays for the transportation Title passes to the buyer when the shipment originates. Buyer assumes the risk for in-transit loss or damage

Contract Warehouse Advantages

Services: client can obtain specialized services tailor-made to suit their needs. Cost: can be bundled in the contract and negotiated at a lower cost. Control: contract warehousing offers a degree of control at a reasonable price

Setup Time and Changeover Reduction

Setup Time and Changeover Time are both considered a waste as they are times when the equipment is not performing its intended function; producing product. Setup time is the time taken to prepare and format the manufacturing equipment and systems for production. Changeover time is the time taken to adapt and modify the manufacturing equipment and systems to produce a different product or a new batch of the same product. While setting up the equipment is a necessary function, if the set up time can be minimized, the difference will be more time available to produce. Both setup and changeover are non-value added operations and should be minimized as much as possible.

Taxes and Incentives

Several levels of government must be considered when evaluating potential locations. Tariffs are federal taxes that are designed to protect local businesses. Countries with high tariffs discourage importing goods into the country and encourage multinational corporations to produce locally.

Single Warehouse

Single Warehouse (versus multiple warehouses) Positives: Less complicated Operating costs and inventory will be lower No duplication of equipment, warehouse staff, and managers Network will be centralized and the company will have its best people, equipment and inventory systems concentrated in one place. Warehouse can more actively focus on the needs of its customers. Negatives: However, the centralized network may take longer to deliver product to some customers who are remote from the central location.

Green Belt

Six Sigma trained individual that can work as a team member on a more complex project and also can lead small, carefully designed six sigma projects On complex projects, can work closely with the black belt team leader to assist with data collection and analysis, and to keep the team functioning through all phases of the project

Lead Factory

Source of product and process innovation and competitive advantage across the entire organization (world-class) Source of innovation. Competitive advantage of the organization Example: Intel factory in Penang, Malaysia opened in mid- 1970's, now is a lead factory. This is your "Go-To" factory.

Statistical Tools- Stratification

Start - Customer enters theater - Customer enters ticket line - Waits - Customer buys ticket - Customer enters concession line - Waits - Customer buys concessions - Customer enters theater - Customer looks for seat - Wait - Customer watches movie - Customer leaves movie theater - Customer walks to car - Customer exits parking lot - End

Lean History

Starting 1910's, Henry Ford's mass production line was a first breakthrough by using continuous assembly and flow systems that made parts find their way into finished products. In the 1940's and 1950's, Taichii Ohno and Shigeo Shingo created the Toyota Production System (TPS), which incorporated Ford's production system and other techniques to form the basis of what is now known as LEAN. The term LEAN was first coined by John Krafcik in 1988 and the definition was expanded in the 1990 book, The Machine that Changed the World.

Industrial Revolution

Steam engine Eli Whitney- cotton gin and interchangeable parts

Sustain

Stick to the rules Maintain and review the standards

Access to Suppliers and Cost

Supplier proximity influences the delivery of materials and the effectiveness of the supply chain.

Small Batch Scheduling and Uniform Plant Loading

The ideal schedule is to produce every product as quickly as possible and at the same rate as customer demand. In the real world, material availability, labor availability, and setup or changeover time influences the scheduling of large batches Large batches can exacerbate the Bullwhip Effect as production in large batches creates an uneven workload Production is not synchronized with customer demand making a pull system impossible. Throughput times in manufacturing go up and work-in-process inventory goes up, creating more waste in the system.

Staying up-to-date on trade regulations is a major challenge because:

The information changes frequently It's often made available only in a foreign language It's not always produced in an electronic form

Cross-Docking Warehouse

The logistics practice of unloading materials from an incoming truck or railcar and loading these materials directly onto outbound trucks or railcars, with little or no storage in between to reduce inventory investment and storage space requirements.

Six Sigma History

The modern day concept of Six Sigma was originated by Motorola in 1980. In the early to mid-1980's, Motorola developed the new standard, created the methodology, and copyrighted it as well. Motorola documented > $16 Billion in savings as a result of Six Sigma. Thousands of companies around the world have adopted Six Sigma as a way of doing business. This is a direct result of many of America's leaders openly praising the benefits of Six Sigma. Six Sigma became famous when Jack Welch made it central to his successful business strategy at General Electric in 1995 Reported $200MM in savings in the first year of implementation (1996)

Quick response

The rapid replenishment of a customer's stock by a supplier with direct access to data from the customer's point of sale.

Storage

The safe and secure retention of parts or products for future use or shipment.

Access and Proximity to Markets

The trend in manufacturing is to be within delivery proximity of your customers. Logistics timelines and costs are the concerns, so that reinforces a clustering effect of suppliers and producers to places that offer lower cost labor and lower real estate prices. In the service industry, proximity to customers is even more critical. You can't service a washing machine if your technician is 3000 miles away.

Water analogy for Pull System

The water represents inventory. When the water level is high, you don't see the rocks beneath the water, so you may not know that they are there. The rocks represent hidden obstacles, problems, and issues. Inventory can hide the underlying problems, but they are still there and can potentially create major issues in the supply chain. Lowering inventory will help to expose the hidden problems. Once the problems are detected, they can be solved. The end result will be a smoother running supply chain with less inventory investment.

Objectives of Transportation

To maximize the value to the company through price negotiations To make sure service is provided effectively To satisfy customers' needs

Total Quality Management

Total Quality Management (TQM) is a management philosophy based on the principle that every employee must be committed to maintaining high standards of work in every aspect of a company's operations, focused on meeting customer needs and organizational objectives. TQM is a combination of quality and management tools designed to increase business and reduce losses resulting from wasteful practices. When implemented, Six Sigma is an integral part of Total Quality Management. The key principles of TQM are: Management Commitment Employee Empowerment Fact Based Decision Making Continuous Improvement Customer Focus

Warehouse Management Systems (WMS)

Track and control the flow of goods from receiving dock to outbound shipment. New technologies, such as RFID tags, facilitate tracking.

Traditional Approach vs. Pull System

Traditional Approach- Supply chains work as "push systems and inventory carried to cover up problems Pull Approach: Each stage in the supply chain requests quantities needed from the previous stage. No excess inventory generated. Reducing inventory levels can also uncover production problems.

Statistical tools- Cause and Effect Diagrams

Used to aid in brainstorming and isolating the causes of a problem

Check Sheets

Used to determine frequencies for specific problems

Transportation Management Systems (TMS)

Used to select the best mix of transportation services and pricing

Engineer to Order Lead Times

Used when products are unique and extensively customized for the specific needs of individual customers Procurement Lead Time + Manufacturing Lead Time + Customer Delivery Lead Time

Total Quality Management experts

W. Edwards Deming - is widely considered the father of TQM. He is the creator of the Plan-Do-Check-Act model. Philip Crosby - coined the phrase "quality is free" (which is also the title of his book) as defects are costly. He introduced the concepts of zero defects, and focus on prevention and not inspection. Joseph Juran - defined quality as "fitness for use". He developed the concept of the cost of quality. Kaoru Ishikawa - developed one the first tools in the quality management process, the cause and effect diagram, which is also called the "Ishikawa" or "fishbone" diagram.

Break-Bulk Warehouse

Warehouse operation that divides full truckloads of items from a single source or manufacturer into smaller, more appropriate quantities for use or further distribution.

Assembly Operation

Warehouse operation that puts products together with other items/components before shipping them out to the final customer Publishing Spare Parts Equipment

Consolidation Warehouse

Warehouse operation that receives products from different plants or suppliers, sorts them, and then combines them with similar shipments from other plants or suppliers for further distribution.

7 Elements of Lean Manufacturing

Waste Reduction LEAN Layouts Inventory, Setup Time, & Changeover Time Reduction Small Batch Scheduling and Uniform Plant Loading LEAN Supply Chain Relationships Workforce Empowerment Continuous Improvement

Export Process

When a shipment is ready to be exported, the shipper will file export documents for the goods at the port of departure. Shipments must conform to Export Administration Regulations. The shipper must: Know the product or technology being exported Know where it is being produced Know where and to whom it is being sent Know who will use the product Know whether there are any legal restrictions in the order or other documents Complete and submit a Shippers Export Declaration (SED) Submit a Commercial Invoice for the product.

Import Process

When a shipment reaches the US, the Importer of Record (i.e., the owner, or purchaser) must file entry documents at the port of entry. Goods are not legally entered into US commerce until: The shipment has arrived within the port of entry Delivery to the shipping destination has been authorized by CBP (following submission and review of required documentation) Estimated duties have been paid. CBP is also concerned with revenue collection (i.e. tariffs and duties). Revenue is determined by item such as: Correct valuation (price paid or payable) Correct classification Country of Origin (COO) Correct identification of merchandise Correct identification of buyer and seller and whether or not they are related

Assemble-to-Order Lead Times

When base components are made, stocked to forecast, but products not assembled until customer order received Manufacturing Lead Time + Customer Delivery Lead Time

Picking

Withdrawing components from stock to make assemblies or finished goods, or to ship to a customer.

Role of Workers

Workers performing different tasks and actively pursuing company goals: Worker duties Improve production process Correct quality problems Monitor quality Work in Teams Quality circles

Six Sigma Training and Certification Levels

Yellow Belt Green Belt Brown Belt Black Belt Master Black Belt

Quality of Life Issues

You will need people to work at these locations - so consider the following Quality of Life issues in terms of maturity, sophistication, robustness, etc., in each location, and do a comparison/evaluation: Education Economy Natural Environment Social Environment Culture Healthcare Government / Politics Mobility Public Safety Recreation

European Union (EU)

[1950] following WWII, consists of 26 (Brexit) members countries in Europe

Association of Southeast Asian Nations (ASEAN)

[1967] among 10 member countries in in SE Asia

Southern Common Market (MERCOSUR)

[1991] among Argentina, Brazil, Paraguay, and Uruguay

Common Market of Eastern and Southern Africa (COMESA)

[1993] among 19 member countries in Eastern and Southern Africa

North American Free Trade Agreement (NAFTA)

[1994] Removed most barriers to trade and investment among U.S., Canada and Mexico.

Full-truckload (FTL)

carriers are used when you have enough to fill the truck, or you don't want other suppliers cargo on your truck (security, faster delivery)

Less-than-truckload (LTL)

carriers move small shipments, when you don't have enough to fill a truck. Stop at depots and transfer locations to match load to the final location.

General freight carriers

carry the majority of goods shipped. Includes common carriers.

Value of Service Pricing

is a pricing strategy which sets prices based on the value perceived by the customer, i.e., "priced at what the market will bear."

Cost of Service Pricing

is the setting of a price for a service based on the costs incurred in providing it.

Roll-On/Roll-Off Ship

specifically designed to allow trucks to be driven directly on and off the ship without the use of cranes. Provides flexibility and speed

Specialized Carriers

transport commodities like liquids, petroleum, household goods, building materials, and other types of specialized items.

Specialized carriers

transport commodities like liquids, petroleum, household goods, building materials, and other types of specialized items.