Supply Chain Management

Identify the benefits of a functional/departmental layout

- A problem occurring at a single workstation does not usually stop production. - It offers many different routes for a given job.

Identify the drawbacks of a functional layout

- A significant amount of time is usually needed to clean & setup workstations. - Materials handling costs are high when jobs are moved from department to department. - Processing times & work-in-process inventory tend to be high.

Identify the differences between the DFSS (design for Six Sigma) and the DMAIC (define, measure, analyze, improve, control) processes.

- DFSS makes use of design engineering tools, whereas DMAIC ideally works with actual products & operational data. - DFSS takes places in the developmental phase, whereas DMAIC takes place after a new product has been launched.

Identify the characteristics of 3D printing when comparted to traditional manufacturing processes

- It can be made close to the customer, reducing inventory and transportation. - It is highly flexible. - It eliminates the need for producing parts and assembly by printing products in one piece. - It uses relatively low-cost equipment.

Regarding standard deviation:

- It is an indicator of process variability. - A low standard deviation indicates that the data points tend to be very close to the same value, typically the mean. - A high standard deviation indicated that the data are spread out over a large range of values.

Identify the process characteristics of a job shop type of process

- Job sequencing is challenging. - High work-in-process inventory in necessary. - High variety of inputs & process flows are necessary.

Regarding Kaizen Improvement:

- Kaizen is also known as continuous improvement. - Pursuit of small improvements keeps people thinking about the process & its current operation. - It states that the long-term success of an organization occurs only when everyone in the firm identifies & implements improvements daily.

Identify the decisions and activities made by a manufacturing and service operations manager that have potential impact on the product quality

- Management of facilities & equipment - Scheduling of work - Design of work policies - Design & e

Identify the characteristics of a repetitive process

- Operations managers tend to focus on developing standard methods & procedures to continuously improve quality & reduce costs. - Products made using a repetitive process are typically made to stock. - Discrete products flow through the same sequence of activities, & equipment can be specialize to each specific task.

Identify the true statements about cellular manufacturing

- Processing time, inventory, material flow distance, & setup times are reduced. It can increase the flexibility of repetitive processes. - Cells can make job shops or batch processes more efficient.

Regarding quality problems that arise in Total Quality Management (TQM):

- Quality problems are often only solvable through the involvement of suppliers. Problem prevention is emphasized in TQM, rather than fixing problems after they occur. Problem solving is most effective when decisions are based on the analysis of actual data.

Regarding a product layout:

- Repetitive & Continuous process usually use a product layout. - Lack of flexibility & low variety for employees are drawbacks. - The flow of products or customers is visible & easy to trace.

Identify the characteristics of a batch process

- Some common inputs - Dominant flow patterns - High setup time

Identify the variations in repeated activities that are often the major sources of problems in operations processes.

- Variations in a purchased material characteristic. - Variations in marketing promotions. - Variability in the time taken to complete a task.

Identify the values that characterize Total Quality Management (TQM)

- employee empowerment - extended process view of operations - emphasis of customer requirements

The different expenses that a carrying cost encompasses are:

- insurance - taxes - cost of owning & maintaining storage space - cost of materials handling, tracking, & management - cost of obsolescence, loss, & disposal - opportunity cost

Identify the categories of inventory performance metrics that address the issues of asset productivity

- inventory turnover - days of supply

Outcomes of the bullwhip effect

- it results in increased costs. - it incites excessive expediting. - it introduces uneven levels of capacity utilization. - it causes increased levels of inventory.

Advantages a company enjoys due to high inventory turnover rate

- less risk of obsolescence - decreased expenses - lower asset investment - increased sales volume

Regarding cycle stocks:

- the primary driver of cycle stock is the order quantity. - one way to reduce the total average inventory is to reduce the order quantity. offering the lowest possible price per unit regardless of order quantity would result in smaller order quantities.

Factors that often affect the success of TQM

- trust between labor & management - strong, charismatic leadership - crisis situation or compelling reason for change

Rank the members of a TQM (Total quality management) organizational view in order of support each level receives, where the level receiving the most support is placed on top and the level receiving the least support is placed at the bottom.

-Employees -Lower-level management & frontline supervisors -Middle management -Top management

Define a job shop

A flexible process structure for products that require different inputs & have different flows through the process

Define a repetitive process

A process in which discrete products flow through the same sequence of activities.

The ranking of all items of an inventory according to a specific criterion of importance

ABC analysis

A small disturbance generated by a customer that produces successively larger disturbances at each upstream stage in a supply chain

Bullwhip Effect

Inventory Turnover =

COGS / Average Inventory or Net Sales / Avg. Inventory @ Selling Price or Unit Sales / Avg. Inventory in Units

A measure of whether or not a delivered product meets its design specifications

Conformance Quality

A single-flow process that is used for high-volume, non-discrete, standardized products.

Continuous Process

Is the presence of the customer in the service process

Customer Contact

Process where each item in inventory is physically counted on a routine schedule

Cycle Counting

Match the types of technologies in a supply chain operation with their respective capabilities

Decision Support System --> Provide computing power & data management to make higher-quality decisions faster. Processing Technologies --> Automate material & data processing to provide 24/7 resource availability, faster processing, greater consistency, & lower cost. Communications Technologies --> Create greater connectivity & speed flow of richer forms of information. Integrative Technologies --> Combine data management, communications, decision support, & processing capabilities.

Identify the steps involved in the Six Sigma approach

Define Measure Analyze Improve Control

Define 'Improve' in DMAIC (Six Sigma)

Design & implement process changes that reduce variability.

Design approach that balances customer requirements with the constraints & capabilities of the supporting manufacturing & services processes

Design for Six Sigma

Match the process structure with the respective definitions.

Engineer to Order --> Products that are unique & customized. Make to Order --> Products that have similar designs but are customized during production. Assemble to Order --> Products that are produced from standard components & modules. Make to Stock --> Finished goods that are held in inventory in advance of customer orders.

In a firm, the demand for inventory will come only from an external customer

False

A product-process matric can be used to address the fact that customers often participate in service processes.

False Although the product-process matrix can be used to describe services, it does not address the face that customers often participate in services processes.

Even small improvements often need large investment capital

False. Small improvements are often gained without needing large investments of capital. In many cases, these improvements can be gained with litter or no required investment.

Layout that groups together similar resources

Functional

Define 'Measure' in DMAIC (Six Sigma)

Identify specific processes that create or influence critical-to-quality characteristics of a product & evaluate current levels of quality of each critical-to-quality characteristics.

Used to assign tasks so that idle time & the number of workstations are minimized

Line Balancing

Match the functional personnel with their respective decisions that impact the product quality

Marketing Managers --> Development of new product testing programs Sales Manages --> interactions with customers Product Engineers --> design of product prototyping procedures Human Resources Managers --> setting of compensation schemes & incentives

Uses advanced technologies to customize products quickly & at a low cost

Mass Customization

Rule stating that a small percentage of items account for a large percentage of sales, profit, or importance to a company

Pareto's Law

Define 'Analyze' in DMAIC (Six Sigma)

Perform data based study to uncover root caused of process variations that lead to critical-to-quality defects.

_____ is a process for improving quality that describes the sequence used to solve problems and improve quality continuously over time.

Plan-Do-Check-Act Cycle / Deming Wheel

Present the order in which tasks must be completed

Precedence Relationships

Costs associated with efforts to prevent product defects & associated failure & appraisal costs

Prevention

Amount paid to suppliers for products that are purchased

Product Cost

A one-time or infrequently occurring set of activities that create outputs within prespecified time & cost scedules

Project

Match the process types of a process-process matric with their respective examples

Project --> Custom Home Job Shop --> An auto repair Batch --> A cinema Repetitive Process --> A laundry detergent Continuous Process --> A buffet restaurant

Identify the process type of a product-process matrix in which all product follow sequence, operations often run 24/7, line stoppages are very costly, & highly specialized equipment & low-skilled operators are used

Repetitive Process

Match the sections of ISO 9001: 2015 certification structure with their respective description.

Section 4, Context of the organization --> Understanding the needs & expectations of interested parties, determining the scope of the quality management system, & the quality management system & its processes. Section 5, leadership --> policy & organizational roles, responsibilities, & authorities. Section 6, planning --> actions to address risk & opportunities, quality objectives & planning to achieve them, & planning of changes. Section 7, support --> resources, competence, awareness, communication, & documented information. Section 8, operation --> requirements for products & services, design & development of products & services, control of externally product processes, products, & services, & products & services provision.

Management program that seeks to improve the quality of process outputs by identifying & removing the cause of defects & variations in various processes

Six Sigma

Measure of the variability or dispersion of a population, data set, or distribution

Standard Deviation

The maximum allowable cycle time at each workstation based on customer demand

Takt Time

Sum of all relevant inventory costs incurred each year

Total Acquisition Cost

integrated management business strategy aimed at embedding awareness of quality in all organizational processes

Total Quality Management (TQM)

Sum of the inventory held across all the locations in a company

Total System Inventory

True or false: It is common to measure stock-outs in terms of the number or percentage of inventory items for which there is no inventory on hand at the time of demand.

True

Total Quality Management (TQM) has a heavy emphasis on decision making in cross-functional teams

True.

Two-bin systems are often used to manage inventory of low-value but necessary items & high-volume parts.

True.

Define 'Define' in DMAIC (Six Sigma)

Use inputs describing customer's needs & product functionality requirements to define critical-to-quality characteristics of a product.

Define 'Control' in DMAIC (Six Sigma)

Use monitoring & adjustment systems to ensure that process variations remain minimized.

A combined automated machines, robots, & materials handling systems that is controlled by a single computer

a flexible manufacturing system

Product-Process Matrix

categorizes processes into structures based on output volumes & variety.

Which of the following best illustrates a dependent demand inventory system?

demand for the binding of a book at store

The functions of a ________ are to select transport providers, develop tracking & other information systems, design packaging, storage, & material handling processes, & manage interactions with transportation providers

logistics manager

Fixed time period that passed between inventory reviews

order interval

The degree to which the product meets or exceeds certain operating characteristics

performance

In a __________ layout, resources are arranged according to a regularly occurring sequence of activities

product

The minimum level of inventory that triggers the need to order more

reorder point

Additional inventory produced in advance of seasonal peak demands

seasonal stock

Category of inventory performance metrics that addresses effectiveness in terms of meeting demand requirements

service level

specifies the amount of risk of incurring a stockout that a firm is willing to incur

service level policy

ISO 9000

set of internationally accepted standards for business quality management systems.

Used to determine the order size for a one-time purchase

single period inventory model

Occurs when no inventory is available

stockout

In a _______________ the vendor is responsible for managing the inventory located at a customer's facility.

supplier-managed inventory

organizational structure in which employees are at the bottom & top management is on the top

traditional / conventional organizational structure

Items that are in the production process are classified as

work in process inventory