Supply Chain Ch. 1-5

How would you define customer service? Customer satisfaction? Customer success?

-Customer Service: focus is on what the firm can do and measures internal service levels -Customer Satisfaction: Focus is on understanding what customer views as important and measures of customer satisfaction are externally oriented -Customer Success: Focus is on helping customers succeed and firm helps customers meet their needs and company becomes indispensable

What is supply chain management? How would you go about defining SCM?

-SCM is collaborative process and project management to meet the real needs of the end customer profitably -your goal is to use inputs—e.g., labor, plant and equipment, component parts, and services—to "make" something customers want and are willing to pay for

What is a Break-Even Analysis?

Are likely sales sufficient enough to cover costs of making product? Qbe = FC / P - VC

What does the team transformation process look like? What can you do to bring it about?

Build the individual - requires interest and investment in the "ONE" - carried out by Coach Yoast and Boone Time - "Chemistry" requiring people to spend quality time working together - Boone making players get to know each other and having multiple practices a day until that is done Lever Points: Key individuals are "invited" to build momentum "aha Moment" - SEEs break in inertia and enables transformation - when Coach Boone takes team to battle of Gettysburg and gives them speech Sacrifice - Effective teams cooperate even when someone must sacrifice - players recognizing not good enough in certain position and asking coaches to be taken out and substituted for better suited player

What are the strengths and weaknesses of Customer Relationship Management programs?

CRM programs help a company to learn more about its' customers, like their wants and their buying habits. -Date Capture: track customer behavior, making it easier for companies to understand customers buying habits -Data Storage: -Data Analytics: helping companies to learn how to increase customer satisfaction and profits Are changing the way companies do business by instilling: targeted promotions, product selection, new product development, pricing -Information Display: need to be able to make sense of the data and be able to make hidden relationships visible to decision maker Weaknesses: Companies know just how good of a customer someone is and if they're not a high roller, they'd rather lose you than spend the money to win you over. Companies have to avoid relying too much on past data to predict the future, as customer trends might change. They also have to remember that someone's low shopping activity could be reflective of a company having bad quality of service, not the customer being of bad quality

Why do companies exist? Why does the answer to this question really matter?

Companies exist to create a customer and customers are the only ones putting money into a supply chain and without them a company would not exist or go bankrupt.

What is the Internal Rate of Return?

Compares returns to costs by finding where the interest rate produces a zero NPV for the investment cash flow stream - IF NPV IS NEGATIVE THEN IRR NEEDS TO BE LOWER, IF NPV IS POSITIVE IRR NEEDS TO BE HIGHER, IF NPV IS 0 THEN IRR STAYS

What issues should you consider in designing a team?

Each individual work style and identify and assemble ingredients then understand and execute the process

What is the principal idea behind the concept of Total Order Performance?

Efforts to create value in one area influence the other areas. Many interactions exist within and among the value dimensions. For instance, focusing strictly on the eight quality factors, efforts to add cutting-edge features may hinder reliability. By contrast, efforts to design-in servicability may improve reliability and durability. Your challenge is accurately assess these tradeoffs so you can make good decisions.

How does the cycle of satisfaction work? How can the firm improve the design and fit of products?

Element 1: Get deep insight into customer needs Element 2: Conceptualize and develop product Element 3: Verify financial viability Element 4: Invest in next generation of customer - pleasing products

The key to becoming a credible cross-experienced manager is to participate in a formal rotation program as a young supply chain professional. Once you have this initial broad-based experience, you can start to focus exclusively on building deep functional skills.

False

The primary purpose of a Gantt Chart is to decomposes work into specific deliverables that the project team will focus on.

False

Why is customer segmentation important? How does it guide infrastructure development?

Not all customers are created equally and some do deserve better service than others. Use ABC Classification based on 80/20 rule which states that 80% sales are from 20% of most important customers. CAN EVOLVE OVER TIME

Why are cost and quality the foundation for customer satisfaction & competitive success?

Order qualifiers and need to offer products with high quality and low costs

What are the steps in building a culture & systems that yield delivery, agility, and innovation?

Order winners and these will help to differentiate your company from competitors.

Why is project management so important?

Project management is important because it ensures proper expectations are set around what can be delivered, by when, and for how much Four phases: Initiation, Planning, Delivery, and Closure

What are the basic trade-offs when planning a project and what influences priorities between the different dimensions?

Project plan: Describes how and when you'll achieve your project's objectives 4-Step Process: Decompose: Want to break down project down to make it more doable - tasks easier to manage Delegate: What can someone else do better? Schedule: What activities need to be done before other activities can begin? Evaluate: Defining dependencies and estimating durations

What are the pros and cons of teams? What factors determine the success of a team?

Pros: diversity of talents and expertise, enhance communication and cooperation, more rapid and thorough decision execution Cons: never ending debate - can never reach consensus, groupthink - go along to get along, social loafing - "free riders" leads to frustration, peer pressure

What is a salvage value and when does it matter in the calculation?

Salvage Value is what you will get for the piece of equipment, machinery, etc. at the end of its' "life" and you add it on to the last years' cash flow

What are the tools project managers can use? Can you explain how they work?

Scope: Defines Value, what must be delivered? Budget: How much will it cost? Schedule: When project will be completed? Work Breakdown Structure (WBS): Makes project visible, breaking it down into key components (deliverables and sub-deliverables) shows all major tasks needed to accomplish and how they relate to one another Target costing: Setting initial price and then having product created in a way that will be equal to target cost

Why are teams so commonly employed in current business practice?

Teams are mechanism to design and execute strategy Teaming reduces tensions, shifting thinking from silo to holistic Teams are used to make complex and difficult decisions

What is the Net Present Value? Can you calculate it?

The current value of all cash flows (current and future) related to the product. The three types of cash flows are: Initial outlays, annual costs/revenues, and end-of-life costs/revenues.

As a SC manager, why do we care so much about teams?

They are responsible for difficult implementation initiatives

Review the SCM^2 case. What helped make Sony de Mexico competitive again?

They decreased their lead time from 8 to 2 weeks and also decreased their internal and delivery inventory. Their main advantage is being so close to the United States so being able to ship their products to the US in 2 weeks is HUGE

What are the phases of the product development process?

Top to bottom of funnel: Screening/Scoping: Does product fit your product strategy? Business Case Analysis: (BCA) assess product market's potential Development: Move from digital modeling to physical prototype Test and Validate: Test in market (go/ no-go) Launch: Generate and fill demand

A work breakdown structure is a deliverable-oriented, hierarchical decomposition of the work to be completed by a project team.

True

As your cost competitiveness improves, a company can capture market share, increase scale economies, improve profitability, and invest in future capabilities.

True

Empowerment programs/strategies emphasize personal accountability. Not everyone is willing to accept the demands of personal accountability. These individuals self-select out of companies that cultivate real empowerment.

True

How well you schedule production will determine your costs as well as your ability to deliver what your customers want—when they want it!

True

One of the important lessons of the efficient consumer response initiative was that companies really didn't know how to work cohesively together to create value.

True

Self-scan technology like Scan & Go helps Walmart gain insight into both what customers buy as well as how they buy it.

True

Tangibility refers to the fact that you can't hold a service in your hand—i.e., you can only experience it as you consume it.

True

The Internet of Things is making the factory of the future—i.e., the factory that runs itself with little or no human intervention--possible.

True

The six sigma goal is to use the DMAIC methodology and statistical tools to remove the sources of defects and improve quality to less than one percent defective parts.

True

Which of the following is not a process in the SCOR model/methodology? a. Ideate b. Source c. Make d. Deliver e. Return

a) Ideate

Lord Kelvin said, "When you can measure what you are speaking about, and express it in numbers, you know something about it; but when you cannot measure it, when you cannot express it in numbers, your knowledge is _____________________." a. Of a meager and unsatisfactory kind. b. Adequate but could be improved. c. Only sufficient for the simple questions. d. Good enough to debate but not to win. e. Still better than most.

a) of a meager and unsatisfactory kind

To use productivity measurement well, you need to ________________, ________________, and ________________. a. Recognize performance has changed; Find out why; Take action b. Define productivity, Recognize a change; Take action c. Measure inputs; Measure outputs; Make decisions d. Take action; Measure results; Reevaluate e. Plan; Do; Check and Act

a) recognize performance has changed; find out why; take action

Which of the following approaches to gathering information about customers is quick and relatively easy, but only provides basic, perhaps superficial, insight into customer needs? a. Surveys b. Focus Groups c. Expert Panels d. In-depth Interviews e. Ethnographic Studies

a) surveys

Which of the following is true regarding the reorder point? a. The reorder point compares the amount of inventory currently available with the rate of demand. b. The reorder point tells you how much to order. c. The reorder point is defined by the difference between the set-up and carrying costs. d. The reorder point is derived from the demand forecast. e. All of the above f. B & C only

a) the reorder point compares the amount of inventory currently available with the rate of demand

Logisticians help determine how changes in product design will impact packaging and shipping costs. a. True b. False

a) true

Imagine you want to start up a company to manufacture and sell Wildcat sunglasses. You've done your homework and estimate design and launch costs to be $120,000. You expect to sell 500 pairs in the first year, 2,000 pairs in second year, and 5,000 pairs in the following three years. The sales price will be $99 and each pair will cost $75 to produce and market. If your required return is 25%, what is your NPV? (Round your answer to the nearest cent; e.g., $100,000.01) a. $89,543.89 b. $70,233.60 c. $59,564.90 d. $68,746.61 e. None of the above

b) $70,233.60

Most managers are engaged in passive scanning; however, they fail to turn their scanning activities into meaningful organizational ________________. a. Scale b. Learning c. Dynamism d. Inertia e. Structures

b) Learning

What are the two axes on the risk prioritization matrix? a. Probability; Propinquity b. Probability; Impact c. Propinquity; Impact d. Impact; Incidence e. Incidence; Contingency

b) Probability; Impact

Which of the following describes form utility? a. Efforts to communicate (i.e., promote) a product's value and then facilitate the exchange process. b. Acquiring inputs and transforming them into products or services of greater customer value. c. Effectively managing all value-added processes that influence when a product is available for purchase. d. Assuring that products and services are where customers expect to find them—when they are needed. e. All of the above

b) acquiring inputs and transforming them into products or services of greater customer value

Stage gates are simply another product review. a. True b. False

b) false

_________ bring a number of customers (usually 4 to 14) together with a moderator to discuss their experiences, needs, and expectations regarding a new product concept. a. Customer surveys b. Focus groups c. Expert panels d. In-depth interviews e. All of the above f. None of the above

b) focus groups

Customer success strategies are unique because they focus on ____________________. a. Providing outstanding service vis-à-vis industry standards. b. Helping customers solve problems and achieve success in the marketplace. c. Meeting and exceeding customer expectations. d. All of the above e. A & C only

b) helping customers solve problems and achieve success in the marketplace

Which of the following is NOT a key role of a supplier scorecard? a. They communicate expectations. b. They are very hard to use. c. They let suppliers know how well they are performing and where they stand. d. They are a source of benchmarking data. e. None of the above; that is, they are all key roles.

b) they are very hard to use

Which of the following is not a service statement found on L.L. Bean's customer service mantra? a. A customer is not dependent on us . . . we are dependent on him. b. A customer is a person who brings us his wants. c. A customer represents a moment of truth. d. A customer is not someone to argue or match wits with. Nobody ever won an argument with a customer. e. A customer is not an interruption of our work. He is the purpose for it.

c) a customer represents a moment of truth

Which of the following is not a phase of project management? a. Initiation b. Planning c. Budgeting d. Delivery e. None of the above

c) budgeting

_____________ rely on a group of experts to gain insight into product characteristics and viability. Usually used when specialized or technical insight/ opinion is needed. a. Customer profiling b. Crowdsourcing c. Expert Panels d. Simulation e. None of the above

c) expert panels

A(n) ____________________ involves temporary activities designed to produce a unique product, service, or result. a. Assignment b. Operation c. Project d. Mission e. Process

c) project

Which NPD phase includes your final opportunity to make a go/no-go decision? a. Screening/scoping b. Development c. Test and validate d. Launch e. Business case analysis

c) test and validate

You must invest _________________ percent of your time to avoid obsolescence in ________________ years . a. 10; 5 b. 5; 10 c. 3; 3 d. 20; 3 e. 10; 3

d) 20; 3

Which part of project planning addresses sub-deliverables? a. Delegate b. Evaluate c. Schedule d. Decompose e. Remediate f. Deliver

d) Decompose

In which step does target-costing take place at the component level? a. Step 2: Establish target sales price b. Step 3: Compute target cost c. Step 4: Perform cost breakdown d. Step 5: Engage in target costing process

d) Step 5: Engage in target costing process

Which of he following is an appropriate step you should take to implement a balanced scorecard measurement system? a. Run a pilot test b. Provide proper training c. Make sure information systems can collect and analyze all required information d. All of the above e. A & B only

d) all of the above

Which of the following is not a common definition of quality? a. Fitness for use b. Conformance to specifications c. Meeting customer expectations d. The short-term versus long-term cost balance e. All of the above f. A, B, & C only

d) the short-term versus long-term cost balance

Which of the following is not one of the value gaps that can undermine customer experiences and can damage relationships? a. Knowledge Gaps b. Translation Gaps c. Performance Gaps d. Tube Gaps e. Perception Gaps f. Service Quality Gaps

d) tube gaps

What percent of project-planning experts identified the work breakdown structure as the most important single tool to help project managers succeed? a. 33% b. 50% c. 65% d. 80% e. 90% f. 100%

e) 90%

The Cycle of Satisfaction includes which of the following elements? a. Verify financial viability b. Get deep insight into customer needs c. Conceptualize and develop a product d. Invest in next generation of customer-pleasing products e. All of the above

e) all of the above

Which of the following are appropriate projects for a pet project program? a. Supplier performance measurement. b. Supply-base rationalization. c. Alliance implementation. d. Almost anything where improvement is needed. e. All of the above f. B, C, and D only

e) all of the above

Which of the following are key steps in creating a Gantt Chart? a. Make a list of activities for a work package. b. Create an activity schedule. c. Sequence activities according to their dependencies. d. Display activities in a bar chart format. e. All of the above f. A, C, & D only

e) all of the above

Whose job is it to innovate—that is, to bring the new products to market that customers want to buy? a. Marketing b. Research and Development (aka, R&D) c. Operations management d. Finance e. All of the above; that is, everyone is responsible for innovation f. A and B only

e) all of the above; that is, everyone is responsible for innovation

Which of the following is not a data-collection tool commonly used in scanning initiatives? a. Literature searches b. Key-informant surveys c. Focus groups d. In-depth interviews e. Horoscopes f. None of the above; that is, they are all commonly used tools.

e) horoscopes

When it comes to achieving corporate goals, which of the following is more important than measurement? a. Setting the right strategy b. Hiring the right people c. Providing the right training d. All of the above e. None of the above

e) none of the above

Which value gap refers to a company's failure to capture/measure actual performance? That is, the company thinks it is performing better than it actually is. a. Knowledge Gap b. Translation Gap c. Performance Gap d. Communication Gap e. Perception Gap f. Service Quality Gap

e) perception gap

Which of the following are the two characteristics that distinguish service operations? a. Capital intensity b. Customer contact c. Inevitability d. Tangibility e. A & B f. B & D g. A & C

f) B & D

Which of the following is one of the three fundamental steps in resource orchestration? a. Scan the environment b. Select team members c. Assign team roles d. Build team cohesion e. All of the above f. B, C, & D only

f) B, C, & D only

At Toyota, workers are accountable for which of the following? a. Maintaining their own equipment b. Keeping the surrounding work area clean c. Help each other when difficulties arise d. Continually improving product quality e. Continually improving the production process. f. All of the above g. A, B, C, and D only

f) all of the above

Which of the following is not part of the Product Life Cycle? a. Growth b. Maturity c. Introduction d. Decline e. Product extension f. None of the above, they are all part of the Product Life Cycle

f) none of the above, they are all part of the product life cycle

Project delivery includes which of the following? a. Monitoring b. Doing c. Controlling d. Actioning e. Communication f. All of the above g. A, C, & E only

g) A, C, & E only

Which of the following is not one of the 5Ws of project initiation? a. Why b. When c. Where d. Who e. What f. Whoops g. Both B & C

g) Both B & C

How do the business models at successful SCM leaders differ from firms?

•Right Players. Members of the supply chain team are very good at what they do. •Right Relationships. Members of the team work together to effectively eliminate waste and increase value co-creation.