UGBA Ops & Sustainability Exam

centralized placement (L6)

keeping all the inventory of a product at a single location such as a firm's manufacturing plant or a warehouse and shipping directly to each of its customers

forward placement (L6)

locating stock closer to customers at a warehouse, distribution center, wholesaler, or retailer

bullwhip effect (L6)

occurs when distorted product-demand information ripples from one partner to the next throughout the supply chain - Refers to increasing swings in inventory in response to shifts in customer demand as you move further up supply chain

Sustainability (L1)

"Green" strategy toward the natural environment and taking into consideration every dimension of how a business operates in the social, cultural and economic environment

mass customization (L6)

the strategy that uses highly divergent processes to generate a wide variety of customized products at reasonably low costs -assemble to order -custom ink

average aggregate inventory value (L5)

the total average value of all items held in inventory for a firm - (number of units A on hand)(value of each unit A)+(number of units B on hand)(value of each unit B)

Financial measure (L5)

- total revenue - cost of goods sold - operating expenses - cash flow - working capital - return on assists (ROA)

Automation in manufacturing (L4)

-flexible automation -fixed

Inventory measures (L5)

1. Average aggregate inventory value 2. Weeks of supply 3. Inventory turnover

Two categories of supply chain view (L1)

1. Core processes- set of activities that delivers value to external customer 2. Support processes- provides vital resources and inputs to the core processes

5 stages of CSR/sustainability learning (L7)

1. Defensive (to deny responsibility) 2. Compliance (to do the minimum required) 3. Managerial (to begin integrating CSR into management practices) 4. Strategic (to embed CSR within the strategy planning process) 5. Civil (to promote CSR practices industry-wide)

What are the 2 distinct types of supply chain designs? (L5)

1. Efficient supply chains 2. Responsive supply chains

What are the four considerations of developing corporate strategy? (L2)

1. Environmental scanning 2. Developing core competencies 3. Developing core processes 4. Developing global strategies

Five Major Supply Chain Drivers (L6)

1. Facilities 2. Inventory 3. Transportation 4. Information 5. Sourcing

There are four components that are essential to defining strategic CSR (L7)

1. First , that firms incorporate a CSR perspective within their strategic planning process 2. Second , that any actions they take are directly related to core operations 3. Third , that they incorporate a stakeholder perspective ; and , 4. Fourth , that they shift from a short - term perspective to managing the firm's resources and relations with key stakeholders over the medium- to long term .

What is driving interest for supply chain? (L5)

1. Global competition 2. Shorter product life cycle

5 important divers to adopt CSR/sustainability (L7)

1. Growing affluence 2. Ecological sustainability 3. Globalization 4. Media 5. Brands

What are the two common types of measure of supply chain performance (L5)?

1. Inventory measures 2. Financial measures

3 decision factors for supply chain designs (L6)

1. Inventory placement 2. Mass customization 3. Outsourcing

3 approaches to inventory (L3)

1. Make-to-order 2. Assemble-to-order 3. Make-to-stock

What are the 4 common decisions in process strategy? (L3)

1. Process structure 2. Customer involvement 3. Resource flexibility 4. Capital intensity

What are the 3 trends in OPs management? (L2)

1. Productivity improvement (outputs/inputs) 2. Global competition 3. Ethical, workforce diversity, and environmental issues

5 principals for sustainable innovation (L8)

1. Start with what's sacred 2. Design holistically 3. Create collaboratively 4. Be playful 5. Disrupt and delight

What are the 3 principles of process strategy? (L3)

1. The key to successful process decisions is to make choices that have a strategic fit 2. Individual processes are building blocks that create the firm's entire supply chain 3. Management must pay attention to the interface between processes

What is circular a economy ?

A circular economy is a systemic approach to economic development designed to benefit businesses , society , and the environment

Flexible automation (L4)

A manufacturing process that can be changed (programmed) easily to handle various products

What is a process view? (Processes) (L1)

An activity that takes inputs and transforms them into outputs.

What is corporate social responsibility (CSR)?

An obligation, beyond that required by law and economics, for a firm to pursue long term goals that are good for society. -can add value to your brand

Inventory Turnover (L5)

Annual sales (COGS)/Average aggregate Inventory

What are the two types of inventory placements? (L6)

Centralized placement and forward placement

What is shorter product life cycles? (L5)

Companies developing new products faster.

Responsive CSR (L7)

Comprises two elements: acting as a good corporate citizen and mitigating existing or anticipated adverse effects from business activities

What is supply chain management? (L5)

Concerned with the efficient integration of suppliers, factories, warehouse and stores so that merchandise is produced and distributed in the right quantities, locations, time and so to minimize total costs.

Media (L7)

Consumers have access to media. Harder the hide things from them.

What are competitive priorities? (L2)

Critical dimensions that a process or supply chain must posses to satisfy its internal or external customers. (What you want to deliver) - cost - quality - time - flexibility

5. Disrupt and delight (L8)

Design products and services that work better, cost less, and deliver ways for all of us to create a better world

What is supply chain design? (L5)

Designing a firms supply chain seeks to meet the competitive priorities of the firm's operations strategy.

What is process type? (L3)

Determines the process type relative to the kinds of resources needed

Economies of scope (L4)

Economies that reflect the ability to produce multiple products more cheaply in combination than separately

Three Process Steps to Sustainable Brand Innovation (L8)

Embed sustainability, Inspire co-creativity, Unleash shared value

Internal customer (L1)

Employees in the firm whose process inputs are outputs of an earlier process

Internal supplier (L1)

Employees or processes that supply important info or materials

External customer (L1)

End users buying the firms finished service or products

Strategic fit (L4)

Expresses the degree to which an organization is matching its resources and capabilities with the opportunities in the external environment

Outsourcing processes (L6)

Having a third party perform some of your process

Special-purpose equipment (L4)

If you're producing high volumes and low customization

General purpose equipment (L4)

If you're producing low volumes and high customization

Globalization (L7)

Increasingly corporations operate in a global business environment

3. Create collaboratively (L8)

Inside research isn't enough. Creative collection recognizes that wisdom lies not so much in the crowd but from beyond your own walls

Tesla customer participation example (L4)

Let you control your options on where you want your solar panels. Don't need a salesperson to call u.

What are the two types of process? (L1)

Manufacturing and service. The 2 key difference between them is (1) the nature of their output and (2) the degree of customer contact.

Fixed automation (L4)

Manufacturing process that produces one type of part or product in a fixed sequence of simple operations

Layouts (L3)

May be revised to accommodate customer involvement

Growing affluence (L7)

More ppl moving from low income to middle class. Ppl earning more money tend to start caring more about CSR

Strategic CSR (L7)

Moves beyond good corporate citizenship and mitigating harmful value chain impacts to mount a smaller number of initiatives whose social and business benefits are large and distinctive

Operations Management (L1)

OM is in charge of supplying products and services in the right amount, at the right place, at the right time and at the right quality

3 functional areas of an organization (L1)

Operations—> marketing—> finance—>

Example of Volkswagen (L1)

Ops allowed for an aggressive growth strategy. However they had a case of ethical misconduct (lying about toxic emissions)

Example of Apple (L1)

Ops allowed them to nearly double its production capacity every year and create a low carbon footprint

External supplier (L1)

Other business who provides resources/materials for the firms need

1. Start with what's sacred (L8)

Our approach to innovation must start with the values, hopes and aspirations of our shared humanity

Four key motivators drive interest in sustainability (L8)

Personal Protection, Cost, Altruism, Status

4. Be playful (L8)

Play fosters creativity, flexibility, and learning. Helps generate big ideas. For consumers play is an integral way we engage brands and connect

What are the two strategies for change? (L4)

Process improvement and process re-engineering

Product-Process Matrix (L3)

Process structure in manufacturing. Brings together volume, product customization, and process characteristics.

Customer-Contact Matrix (L3)

Process structure in service. It brings together degree of customer contact, customization, and process characteristics

What should be outsourced? (L6)

Products that have high quantitative requirements and low demand volatility

What is corporate strategy? (L2)

Provides overall direction that serves as the framework for carrying out all the organizations functions

Automation (L4)

Replacing human operations and control of machinery and equipment with some form of programmed control

How to create an effective supply chain? (L5)

Requires a good focus and understanding of our products/services and the best way they can align to processes, customers, and suppliers

What is market analysis? (L2)

Segmenting a firm's customers based on clear characteristics and then identifying the needs of each segment

supply chain efficiency curve (L5)

Shows trade offs between costs and performance for a given supply chain

Sustainable supply chains (L6)

Supply Chain Sustainability is the management of environmental social and economic impacts , and the encouragement of good governance practices , throughout the lifecycles of goods and services

Supply Chain View (L1)

Supply chains reinforce the link between processes and performance

2. Design holistically (L8)

Sustainable brand innovation requires a holistic approach across business, product, and service design within an ecosystem that reinforces the health, sustainability, and success of each part over time -also involves embedding the principles of the circular economy

Greenwashing (L7)

The act of misleading consumers regarding the environment practices of a company or the environmental benefits of a product or service

What are competitive capabilities? (L2)

The cost, quality, time and flexibility dimensions that a process or supply chain actually possesses and is able to deliver

Order Winners (L2)

The criterion customers use to differentiate the services or products of one firm from those of another

Resource flexibility (L4)

The ease with which employees and equipment can handle a wide variety of products, output levels, future and functions.

Ecological sustainability (L7)

The ecological footprint associated to your activities is now a common indicator of an organization's sustainability

Order Qualifiers (L2)

The minimum level required from a set of criteria for a firm to do business in a particular market segment.

Capital intensity (L4)

The mix of equipment and human skills in a process

What is process strategy? (L3)

The pattern of decisions made in managing processes, in order to strength their competitive priorities.

Customer involvement (L4)

The way in which customers become part of the process and the extend of participation.

Southwest example (L2)

Their competitive priority was to have low coast, timely and frequent flights. They accomplished this by linking it to their product planning (minimize costs, simplify ops) and process planning (no "fluff")

Vertical Integration

When a company acquires companies from their suppliers

Brands (L7)

Your reputation brings value to the brand. Do good or bad and ppl will act correspondingly

weeks of supply (L5)

an inventory measure obtained by dividing the average aggregate inventory value by sales per week at cost