Topic 9 Quick Check - Forecasting & Integrated Business Planning
Which of the following SKUs corresponds to intermediate value and variety?
B' item
How is days of inventory supply calculated? Dividing average daily use by performance usage Dividing current inventory by average daily usage Dividing current inventory by performance usage Dividing current inventory by inventory ordered
Dividing current inventory by average daily usage
How is days of inventory supply calculated?
Dividing current inventory by inventory ordered
Walmart made RIFD ________. Zara made RFID ________. Famous; fail Fashionable; work Tricky; feasible Speedy; slow
Fashionable; work
High inventory turnover is beneficial because it allows you to do which of the following? Forecast changes in the marketplace Free up cash because of the reduction in length of the cash-to-cash cycle Buy more inventory All the above
Free up cash because of the reduction in length of the cash-to-cash cycle
Which of the following is a cost associated with stockouts? Markdown costs Holding costs Goodwill and reputation Opportunity costs
Goodwill and reputation
IT security typically focuses on preventing three types of malicious behavior, ranging from nuisance to catastrophic. In addition to cyber mischief and cyber theft, we need to be concerned about ______________. Cyber Warfare Cyber Service Cyber blackmail All of the above
Cyber Warfare
Annual Demand
D (units)
Collaborative Planning, Forecasting, and Replenishment
(CPFR)
Which of the following z-scores will you use to meet demand from inventory 95% of the time? 3.00 2.33 1.28 1.96 1.65
1.28
You are a manager at Asda. You have been given the demand data for the past 10 weeks for swim rings for children. You decide to run three different types of forecasting methods on the data to see which gives you best forecast. Using simple linear regression, what is the forecast for week 22? 1336 1281 1284 1269
1269
Which of the following z-scores will you use to be able to meet demand from inventory 90% of the time? 1.28 1.65 1.96 2.33 3.00
128
Given the following forecast and demand information, what is the MAD? 12.54 14.15 4.60 15.05
15.05
What is your standard deviation of demand during lead time if your average lead time = 5 days, standard deviation of demand = 4, average demand = 12, and standard deviation of lead time = 1.2 days. 16.95 14.39 13.57 15.34
16.95
If your cycle service level is 97.5%, your probability of a stockout is? 2.5% 1% 5% .14% 10%
2.5%
Given the following forecast and demand information, what is the MSE?
334.29
Given the following forecast and demand information, what is the MSE? 334.29 335.08 14.15 56.17
334.29
McKinsey Consulting completed a study regarding companies using IT for re-engineering efforts and found that ________ failed to achieve their goals. 70% 30% 5% 100% 40%
70%
Simpler forecasting methods don't require ________. Sophisticated models are ________. Logistics; logistics heavy A lot of data; data intensive Learning management systems; learning intense Lead times; time sensitive
A lot of data; data intensive
Which of the following SKUs corresponds to high value/low variety? 'C' item 'B' item 'A' and 'B" item 'A' item
A' item
Data is gathered through which of the following? Bar codes Mobile devices Social media content RFID All of the above
All of the Above
Which of the following is an assumption of the EOQ model? You know the actual demand You look at just one product and one market Demand is constant Delivery lead time is zero days
All of the Above
Which of the following is/are part of the five monthly review meetings for the S&OP planning process? Product management review Integrated reconciliation Demand review All of the above
All of the Above
How does too much or the wrong inventory hurt your company's efforts to compete? Added costs Fewer SKUs Missed opportunities All of the above
All of the above
Which of the following is a cost associated with overstock situations? Opportunity costs Holding costs Markdown costs Disposal costs All of the above
All of the above
Which of the following is/are part of the five monthly review meetings for the S&OP planning process? Product management review Integrated reconciliation Demand review All of the above
All of the above
Which of the following is NOT an assumption of the EOQ model? You know the actual demand You look at just one product and one market Demand fluctuates Delivery lead time is zero days None of the above they are all assumptions
Demand fluctuates
Within S&OP's Supply Review, you must examine manufacturing capacity, supply chain inventory, transportation, and logistics/DC capacity. You should also develop contingency plans.
True
Which company is piloting self-scan technology that not only lets customers avoid the checkout line but also provides the company insight into both what customers buy and how they shop?
Walmart
Forecasts are based on what two things? Specifications and sourcing strategy Performance measurement and program management What has happened in the past and knowledge regarding how a system works Fulfilling orders and creating a production plan
What has happened in the past and knowledge regarding how a system works
How can you mitigate uncertainty on the demand side? Develop the right suppliers Work more closely with your marketing colleagues Make more frequent store deliveries Request regular updates on your customer's new product development team
Work more closely with your marketing colleagues
Which of the following is an assumption of the EOQ model? You have an estimated demand Demand fluctuates You look at just one product and one market Delivery lead time is between five to seven days
You look at just one product and one market
________ and ________ are two categories of negative, but common outcomes when companies get caught in the danger zone of IT adoption? Implementation challenges; High costs High costs; Delayed implementations Implementation challenges; Me-too capabilities High costs; Me-too capabilities
Implementation challenges; Me-too capabilities
'h' (%) represents which of the following? Unit Value Order Quality Annual Demand Inventory Holding Cost Order Cost
Inventory Holding Cost
Order Cost
K ($)
Which of the following is one of the four levels of the IT-enablement hierarchy?
Knowledge
PlastiPharm customizes medical device bags for 350-400 clients. Customer demand for bags, which range from eight inches to four feet in length, is excellent. The company has embraced lean manufacturing practices. What reason best explains why PlastiPharm would pursue a lean journey?
Lean practices help the company do more with less, be more flexible, and meet their clients' demands.
What information do you need to know how much safety stock you should hold? Level of demand variability during lead time Only order cost Demand during lead time Service level policy and order cost
Level of demand variability during lead time
If your EOQ is 60 and the associated total cost is G(Q)=$4,200. What will be the total cost if you use an order quantity of 40 (rather than the EOQ)? Less than $2,800 $2,800 $4,200 More than $4,200
More than $4,200
According to the book, data has value when it becomes information that ________. Is used to create industry standards that are agreed upon. You can use to delay making decisions. Supplies and buyers can use to justify entering into unending negotiations. None of the above
None of the above
Which of the following is one of the 3Ps of successful technology implementation? Projects Planning Preparation Performance Measurement
Performance Measurement
Modern IT enables you to ship product around the world more efficiently and quickly by enabling you to ________? Pre-clear customs Load containers quickly in port Know what your customers are going to order before they actually place the order All of the above
Pre-clear customs
Although blind trust in data can be dangerous when dealing with customers, a well-designed CRM system can help you turn every customer contact into an opportunity to create a ______________ customer.
Profitable
Order Quantity
Q (units)
Which of the following is the most effective and productive way to reduce the optimal order quantity (Q)? Increase the unit price Reduce the cost of carrying inventory Reduce order or set-up costs Reduce total demand
Reduce order or set-up costs
How do you most productively get to lean's ideal of small batch size? Reduce productivity Reduce set up/order costs Reduce holding costs Reduce total demand
Reduce set up/order costs
What is the last route marker managers should follow on the proven path to IT enablement in order to help their company maximize their return on IT investments? Stay balanced over the long haul Keep eye on capabilities-technology map Drive innovation in everywhere Be guided by the 3Ps of IT adoption None of the above
Stay balanced over the long haul
What are the benefits of autonomous vehicles in a commercial setting? Savings, gas, freedom, carpooling Safety, alleviating shortages, shifting, saving gas Sustainability, savings, safety, alleviating shortages Sleeping, reading, texting, phone calls
Sustainability, savings, safety, alleviating shortages
3M employed a knowledge management system (KMS) to help employees find the right talent to help them develop product ideas. This is an example of :
Tapping into the experience and insight of your entire organization.
Which of the following is a way retailers are changing the way they do business by analyzing data on consumer buying behavior they have captured using a loyalty program? Brand focus Sales Store location Targeted promotions Return policies
Targeted promotions
Your company decides that it is easier to buy IT than to fix your company's culture or re-design underperforming processes. What technology trap has your company fallen into? Technology dependence illness Island of automation Technology as the silver bullet Follow-the-competition mentality
Technology as the silver bullet
Your company decides that it is easier to buy IT than to fix your company's culture or re-design underperforming processes. What technology trap has your company fallen into? Technology as the silver bullet Technology dependence illness Island of automation Follow-the-competition mentality
Technology as the silver bullet
Unit Value:
c ($)
Quantity
how much to order
Timing
when to order
Which of the following SKUs corresponds to intermediate value and variety? C' item 'B' and 'C" item 'B' item 'A' item
'B' item
Annual Order Cost
=DQ×K
After successfully following all of the route markers on the path to IT enablement your company has reached the hardest part: establishing a culture that stays balanced. What do you need to keep investing in to ensure your IT success lasts? Trust Open and honest communication An infrastructure of aligned goals, measurement, and training All of the above
All of the Above
What is your standard deviation of demand during lead time if your average lead times = 2 weeks, standard deviation of demand = 6, average demand is 24, and standard deviation of lead time is 1 week.
33.94
Sales and Operations Planning
(S&OP)
If demand is normally distributed with mean demand = 25 units/day, your average lead time is 5 days, and your standard deviation of demand = 3 units/week, what is your reorder point? Assume your desired CSL is 95% 136 140 130 115
136
Days of Inventory Supply
= Current Inventory Average Daily Usage
Forecast (Periods=2)
=40+45 =42.5 2
Which of the following is a good reason to carry inventory? Meet customer demand quickly Manage supply/demand uncertainty Effectively utilize organizational resources Prepare for demand growth All of the above
All of the Above
Which of the following is a key role of a transportation management system? Create a plan for an optimal vehicle load Help select the right carrier for an order Identify the optimal route All of the above
All of the Above
After successfully following all of the route markers on the path to IT enablement your company has reached the hardest part: establishing a culture that stays balanced. What do you need to keep investing in to ensure your IT success lasts? Trust Open and honest communication An infrastructure of aligned goals, measurement, and training All of the above
All of the above
Which of the following are benefits of a capabilities-technology map? They help managers make disciplined technology investment decisions. They show which technologies support desired strategic capabilities, and which do not. They reduce technophobia All of the above
All of the above
Which of the following are common ways students interact with technology everyday to enable better decision-making? Check the school's learning management system (e.g., Canvas or Blackboard) Use an e-calendar notification Log a workout on MapMyRun All of the above
All of the above
Which of the following is a cost of carrying too much or the wrong inventory? High costs Obsolescence—i.e., loss of inventory value A loss of flexibility—i.e., capital is used for inventory and isn't available elsewhere
All of the above
Which of the following is a documented benefit of CPFR? Improved forecast accuracy Increased margin rate Increased sales revenue All of the above
All of the above
Which of the following is a goal of S&OP? Get everyone to agree to the nature of the business environment Get everyone to agree to their specific roles in supporting the corporate strategy. Get everyone to agree to how to work together to synchronize the firm's value-added activities. Get everyone to agree to a single forecast; i.e., one-forecast planning. All of the above
All of the above
Which of the following is a good reason to carry inventory? Meet customer demand quickly Manage supply/demand uncertainty Effectively utilize organizational resources Prepare for demand growth All of the above
All of the above
Which of the following is a technology trap associated with IT investments? Technology as a silver bullet Shiny-hardware syndrome Island of automation All of the above
All of the above
Which of the following is an example given for what transportation management systems (TMS) can do for your company? Identify optimal transportation routes. Provide comparative data to select the right carrier. Track shipments in real-time. Create a plan for an optimal vehicle load. All of the above
All of the above
Which of the following is an intangible benefit of a well-orchestrated IBP program? Higher levels of trust Stepping stone for new opportunities More time for strategic planning All of the above
All of the above
Which of the following is one of the technology traps associated with IT investments? Technology as a silver bullet Follow-the-competition mentality Shiny-hardware syndrome Island of automation All of the above
All of the above
Which of the following is part of the CPFR process? Strategy & Planning Demand & supply management Execution All of the above
All of the above
Which of the following is part of the forecasting process? Evaluate your data Create the forecast Decide what to forecast Select the forecasting method All of the above
All of the above
Which of the following is something IT-enabled information sharing enables you to do? Build lean operations Increase agility Create distinctive customer value Cultivate learning All of the above
All of the above
Which of the following is something IT-enabled information sharing enables you to do? Build lean operations Increase agility Create distinctive customer value Cultivate learning All of the above
All of the above
Why should you track days of inventory supply? To make sure your production stays in line with demand To watch for a build-up of supply so that you can find out why your product isn't selling To watch for shrinking supply so that you can increase production All of the above
All of the above
'D' (units) represents which of the following? Annual Demand Inventory Holding Cost Order Cost Unit Value Order Quantity
Annual Demand
A Walmart associate observes that Hispanic customers are asking for a specific kind of cookware known as a caldero. She shares this insight during the morning meeting. Calderos are soon on the shelf. Walmart has learned the "secret" formula of ________. Selective location of various items Creating an element of manufacturing strategy Shipping a part or product from one plant to another plant Building a wisdom capability; that is, becoming a learning organization
Building a wisdom capability; that is, becoming a learning organization
Which of the following is a common module found in an ERP system?
Business analytics and intelligence
The production area at PlastiPharm is divided into three areas: assembly, 2D, and 3D. Each area has its own machines, between nine to fifteen. When new employees are hired in an area, they are required to cross train on all machines within that area. This takes more training time, but the company is committed to having cross-functional workers. Which statement best explains how cross training is beneficial to the company?
Cross training helps the employees understand the entire process and empowers them to look for ways to improve.
________ is technology that manages company's interactions with customers to organize automate, and synchronize sales, marketing, customer service, and technical support.
Customer relationship management
CPFR helps trading partners work together to build a single, agreed-upon forecast. CPFR argues that someone already knows what your company's sales will be. Who is that someone? Suppliers Customers Company forecasters Upper management
Customers
CPFR helps trading partners work together to build a single, agreed-upon forecast. CPFR argues that someone already knows what your company's sales will be. Who is that someone? Upper management Suppliers Customers Company forecasters
Customers
If you see a repeating pattern, but it doesn't recur regularly, you are probably observing the effects of a ________ pattern. Level Seasonal Trend Cyclical
Cyclical
During a production audit at PlastiPharm, a client noted that the number of medical device bags produced during his hour of observation was higher than what was reported for the eight-hour shift (multiplying the hourly output by eight). Which of these explanations best explains why there is a difference?
Differing conditions in the clean room can create variances in the process, which results in lost production and reduces overall shift outputs.
How do you achieve a balance between the costs of carrying inventory and the risk of running out? Establish a Cycle Service Level (CSL) Calculate safety stock Determine the reorder point (ROP) Understand the difference between lead time demand and variability of demand
Establish a Cycle Service Level (CSL)
New product types are continually being introduced at PlastiPharm as new clients, with their diverse needs, are added to the company's portfolio. The new products are designed by the R&D team and prototyped, often on one of the company's 3D printers. However, when the products are first produced on the production line, a lot of product is scrapped. In a lean environment, which PlastiPharm espouses, why is it important to eliminate the waste?
Eliminating waste requires that quality improves, which increases the company's ability to compete.
In PlastiPharm's Tier 3 weekly report out, it was noted that several product shipments were late. The team brainstormed using a fishbone diagram - looking at people, methods, machines, materials, measurements, and environment. The process helped them determine that there were several factors that played into the shipment delays: a key piece of equipment was down for a day and a half, an illness reduced the number of employees in a department, and defective materials took a day to replace. Which of the following statement best explains why it was a good idea to systematically brainstorm rather than just quickly blame the most likely culprit?
Getting people to provide different insights and knowledge helped identify all the root causes so they could all be addressed.
The kaizen bursts at PlastiPharm involve personnel from production, planning, purchasing, R&D, and engineering - and sometimes others. Which statement explains one of the best results from this team approach?
Involving different departments allows for different ideas and perspectives to be presented as well as a deeper commitment to the outcome from everyone.
PlastiPharm has been on its lean journey for five years, and senior management has fully embraced the lean business methodology. Management requires a minimum number of monthly kaizen bursts, which are to involve all personnel involved in the improvement process. Why is it necessary to have everyone participate in these continuous improvement efforts?
Involving people from all levels of the company helps them to buy into the improvements and aids them in developing a lean mindset.
Items filled divided by total items ordered is a/an ________. Line fill rate Order fill rate Item fill rate Divided fill rate
Item fill rate
When measuring forecast error, which forecasting error expresses the forecast as a percentage from the mean? MAPE MAD MSE ME
MAPE
'Q' (units) represents which of the following? Inventory Holding Cost Unit Value Order Cost Annual Demand Order Quantity
Order Quantity
'Q' (units) represents which of the following? Order Cost Annual Demand Order Quantity Inventory Holding Cost Unit Value
Order Quantity
________ involves the wireless non-contact use of radio-frequency fields to transfer data for the purpose of automatically identifying and tracking tags attached to objects. Bar codes Point of sales systems RFID All of the above
RFID
A warehouse management system (WMS) helps keep track of the movement and storage of the materials in a DC system. Which of the following is one of the specific aspects of DC systems that a WMS will help track?
Receiving
In the PlastiPharm clean room, where production of the medical device bags occurs, one of the floor technicians questioned a step in the process and suggested another approach that she said would shave off some production time. The shift supervisor organized a process review with all personnel involved and reviewed the process map. Which of the following statements best explains why expending so much effort was worthwhile?
Reviewing the process gave everyone a chance to understand the process better, ask questions, and share ideas for improvement.
If you employ ________ or ________, you will share your forecast on a regular cadence with key decision makers inside your firm and with supply chain partners. Last in last out (LIFO), First in first out (FIFO) Just in time (JIT), Just in time II (JIT II) Knowledge management systems (KMS), Key performance indicator (KPI) Sales & operations planning (S&OP), Collaborative planning, forecasting, & replenishment (CPFR)
Sales & operations planning (S&OP), Collaborative planning, forecasting, & replenishment (CPFR)
What does S&OP stand for? Sales and Operations Planning Sales and Oligopoly Planning Services and Operations Planning Sales and Operations Procedures
Sales and Operations Planning
Your company realizes that it needs to invest in IT to help fix some problems. While researching the needed IT, senior managers decide to play it safe and buy the most state-of-the-art IT available. What technology trap did they fall prey to?
Shiny-hardware syndrome
When the cost of excess inventory or stockouts is low, you can probably use a ________ forecasting method.
Simple
Integrated Business Planning (IBP) helps you align ________ and ________. Safety stock; inventory Price; location Suppliers; customers Cause; effect Supply; demand
Supply; demand
What are the benefits of autonomous vehicles in a commercial setting? Sleeping, reading, texting, phone calls Sustainability, savings, safety, alleviating shortages Safety, alleviating shortages, shifting, saving gas Savings, gas, freedom, carpooling
Sustainability, savings, safety, alleviating shortages
If annual demand is 24,000 units, and the order quantity is 3,000 units, which of the following accurately describes the decision-making environment? The annual number of order placements will be 24, and average inventory levels will be 12,000. The annual number of order placements will be 8, and average inventory levels will be 1,500. The annual number of order placements will be 8, and average inventory levels will be 3,000. The annual number of order placements will be 12, and average inventory levels will be 12,000.
The annual number of order placements will be 8, and average inventory levels will be 1,500
A client ordered 1,000 2D medical device bags from PlastiPharm. Unfortunately, delivery was delayed by two days, and the client was not pleased. A bottleneck analysis was conducted to determine where the problems were in the process. Target times in all steps of the process were compared to actual times. Interestingly, the analysis showed that the client did not respond to questions for two days (someone was out sick, and no one covered for them). While the two-day delay was explained, PlastiPharm determined that improvements could be made to avoid such a delay in the future and took steps to ensure there would be multiple people in the client organization with whom they could ask questions. The client was satisfied with the analysis results and appreciated the effort. Why was it important for the company to perform a bottleneck analysis and then take action?
The bottleneck analysis allowed the company to identify the problem, determine a solution so it would not happen in the future, and maintain client satisfaction.
The economic order quantity minimizes ________.
The combined costs of ordering and holding inventory
If you look at a plot of your data and see an upward or downward pattern, your data is revealing a ________. Level Seasonal Cyclical Trend
Trend
Which of the following are types of quantitative forecasting models? Expert panels and Delphi technique Delphi Technique and correlational models Correlational models and expert panels Time series models and correlational models
Time series models and correlational models
Business was booming at PlastiPharm, and the swing shift supervisor needed to hire 60 new employees on his shift alone to meet production demands. His first hires were two trainers, a deviation from how the two other shift supervisors were hiring. Which statement best explains how hiring trainers might lead to an improvement in the process-management culture on the swing shift?
Training new employees on customer needs and doing the job right the first time promotes an attitude of continuous improvement that leads to successful production processes.
'c' ($) represents which of the following? Unit Value Order Quantity Order Cost Annual Demand Inventory Holding Cost
Unit Value
Which of the following is an assumption of the EOQ model? Demand fluctuates You look at just one product and one market You have an estimated demand Delivery lead time is between five to seven days
You look at just one product and one market
Lot for Lot
You order enough inventory to meet the current period's demand
Period Order Quantity
You order enough inventory to meet the demand for a specific number of periods.
If you are using a simple-moving average and you want your forecast to ignore occasional noise in the data, which of the following is true?
You want a stable forecast You use more periods of data
When assessing whether product release deadlines were met during the first three months of the year, the quality assurance (QA) team noted that they were late 23 percent of the time. During that time, the team had hired two new specialists. The team immediately assessed their processes, including that of approving lot records, a required step to ensure that each lot met product requirements, which then triggered a product release. They found that the new QA reviewers were slow to make decisions because of lack of experience and knowledge. Which statement best explains why analyzing the lot record process and identifying the major constraint for product release was helpful to the QA director so she could take action to improve?
dentifying the constraint informed the QA director of the need for increased training for the new specialists.
What is your standard deviation of demand during lead time if your average lead times = 2 weeks, standard deviation of demand = 6, average demand is 24, and standard deviation of lead time is 1 week. 45.33 33.94 37.89 29.45
33.94
Inventory Turnover
=Annual Cost of Goods SoldAverage Value of Inventory
Inventory Turnover
=Annual Cost of Goods Sold = $12,000,000 Average Value of Inventory $2,400,000 =5 turns
Annual Order Cost
=Annual Number of Orders× Cost per Order
Total Annual Inventory Costs
=Average Holding Cost + Annual Order Cost
What are some ways that inventory enables winning strategies for companies? Through every-day low prices Through creating the treasure hunt Through service at any cost Through deep discounting All of the above
All of the Above
Which is a source of uncertainty on the supply side? Unreliable suppliers Poorly managed processes Poor quality
All of the Above
Which of the following is a documented benefit of S&OP? Reduced safety stock Improved on-time delivery Increased sales revenued All of the above
All of the Above
If you are using exponential smoothing, which of the following is true? Your smoothing factor helps you balance stability and responsiveness A large alpha helps you chase trends more aggressively A small alpha helps you take a wait-and-see approach All of the above
All of the above
What are some ways that inventory enables winning strategies for companies? Through every-day low prices Through creating the treasure hunt Through service at any cost Through deep discounting All of the above
All of the above
K' ($) represents which of the following? Order Cost Unit Value Inventory Holding Cost Order Quantity Annual Demand
Order Cost
At PlastiPharm, the extruded film, from which all the medical device bags are created, was purchased from one supplier for many years. The quality of the film was not consistent, with burnt areas or bubbles being the most common defects. Because of a patent, it was not possible to change suppliers. However, the patent recently expired, and PlastiPharm has contracted with a second supplier that has set up cameras to visually inspect the process and identify any defects prior to shipment. Which of the following statements best explains how PlastiPharm solved its variability problem with poor quality raw materials?
Outsourcing to a different supplier that was willing to provide better quality raw materials allowed PlastiPharm to consistently make quality products.
Average inventory is calculated by ________. K/Q D/2 Q/2 i*c
Q/2
As PlastiPharm's business has expanded, the company has built a new addition and added new equipment. Each machine has the capacity to monitor the heat of the raw materials as they go through the machine - maintaining a temperate of 370 degrees, plus or minus ten degrees. If the temperate fluctuates beyond those parameters, the machine shuts down, and floor technicians address the issue and adjust ensure quality is maintained in the product. In addition, 100 percent of all products are visually inspected for defects. Why does PlastiPharm take such great efforts to ensure its products meet industry standards and customers' needs?
Quality products make the most important contribution to the company's long-term profitability and success.
A warehouse management system (WMS) helps keep track of the movement and storage of the materials in a DC system. Which of the following is one of the specific aspects of DC systems that a WMS will help track? Receiving Ordering Excess Moving Stocking
Receiving
Value-stream mapping at PlastiPharm is a once-a-year effort that is conducted by senior management at a high level. Because PlastiPharm produces more than 150 products, the value-stream maps are often obsolete before they are posted on the shop floor. The 3D production area has proposed to management that they analyze and create their own value-stream maps for the different products they make. Why is it a good idea for the 3D area to take over this task?
The 3D area understands better than management how they make the products, can best describe the process, and can then identify ways to improve.
While training is often the first thing to go in tough economic times (and sometimes is never addressed at some companies), training employees at PlastiPharm always receives high priority. Training focuses on safety, quality, expert equipment operation, and accurately following processes to ensure things are done right the first time. How does the company benefit because of this training approach?
The company benefits from lower costs, higher quality, and less waste.
A new business analyst at PlastiPharm, a company that produces medical device plastic bags for safe storage, handling, and transportation of scientific products, was tasked with developing a process design document for a company that needed a new bag for their cell culture process for a new vaccine. The business analyst, being new, looked at the inputs, the outputs, the process flow, the resources, and the structure of the process. Why was it important for the business analyst to thoroughly understand each aspect of the process?
Understanding the process and documenting it accurately created a foundation for the process and made it more likely to be successful.
Fixed Order Quantity
You order a fixed quantity based on administrative convenience or other criteria.
Inventory Holding Cost
i (%)
