Supply Chain Management Chapter 1 & Chapter 2

Supply Chain Operations Reference (SCOR) model

a framework and supported by the Supply Chain Council that seeks to provide standard descriptions of the processes, relationships, and metrics that define supply chain management

Operations and Supply Chain Strategy

a functional strategy that indicates how structural and infrastructural elements within the operations and supply chain areas will be acquired and developed to support the overall business strategy

Value Index

a measure that uses the performance and importance sores for various dimensions of performance for an item or a service to calculate a score that indicates the overall value of an item or a service to a customer

Supply Chain

a network of manufacturers and service providers that work together to create products or services needed by end users. A network of manufacturers and service providers are linked together through physical flows, information flows, and monetary flows

Performance quality

a subdimension of quality that addresses the basic operating characteristics of a product or service

First-tier supplier

a supplier that provides products or services directly to a firm

Strategies

mechanisms by which businesses coordinate their decisions regarding their structural and infrastructural elements

Infrastructural elements

people, policies, decisions rules, and organizational structure choices made by the firm

Order winners

performance dimension that differentiate a company's products and service from those of its competitors

Delivery speed

refers to how quickly the operations or supply chain functions can fulfill a need once it has been identified

Second-tier supplier

supplier that provides products or services to a firm's first-tier supplier

Structural Elements

tangible resources, such as buildings, equipment, and information technology. Usually requires large capital investments that are difficult to reverse.

Mix flexibility

the ability to produce a wide range of products or services

Volume flexibility

the ability to produce whatever volume the customer needs

Changeover flexibility

the ability to provide a new product with minimal delay

Delivery window

the acceptable time range in which deliveries can be made

Supply chain management

the active management of supply chain activities and relationships in order to maximize customer value and achieve a sustainable competitive advantage

Supply management

the broad set of activities carried out by organizations to analyze sourcing opportunities, develop sourcing strategies and carry out all the activities required to produce goods and services

Operations management

the planning, scheduling, and control of the activities that transform inputs into finished goods and services

Cost of goods sold (COGS)

the purchased cost of goods from outside suppliers, tells us how much a company has paid for the goods that it sold to its cusotmers

Electronic Commerce

the use of computer and telecommunications technologies to conduct business via electronic transfer of data and documents

Functional Strategies

translate a business strategy into specific actions for functional areas, such as marketing, human resources, and finance. Functional strategies should align with the overall business strategy and with each other

Downstream

used to describe activities or firms that are positioned later in the supply chain relative to some other activity or firm of interest

Profit leverage effect

when much of a firm's revenue is spent on materials and services, supply management represents a major opportunity to increase profitability

What are the three primary objectives of an operations and supply chain strategy?

1. Help management choose the right max of structural and infrastructural elements 2. Ensure that the firm's structural and infrastructural choices strategically aligned with the firm's business strategy 3. Support the development of core competencies in the firm's operations and supply chains

According to the SCOR model, what are the five broad areas that supply chain management covers?

1. Planning activities 2. Sourcing activities 3. Production activities 4. Delivery activities 5. Return activities

Conformance quality

A subdimesnion of quality that addresses whether a product was made of a service performed to specifications

What are the four performance dimensions of business performance?

1. quality (satisfy stated or implied needs) 2. Time (speed and reliability) 3. Flexibility 4. Cost

Reliability quality

Addresses whether a product will work a long time without failing or requiring maintenance

Core Competencies

An organizational strength or ability, developed over a long period, that customers find valuable and competitors find difficult or even impossible to copy

Upstream

Firms that are positioned earlier in the supply chain relative to some other activity or firm of interest

Order qualifiers

Performance dimensions on which customers expect a minimum level of performance

How are organizations in the supply chain linked together?

Physical flows, information flows, and monetary flows

Delivery reliability

Refers to the ability to deliver products or services when promised

Transformation process

Takes a set of inputs (materials, intangible needs, and information) and transforms them in some way to create outputs- either goods or services- that a customer values

Business Strategy

Targeted customers/markets Areas of sustainable competitive advantage/ core competency Role of supply chain partners Time frames and performance objectives

ASQ

The American Society for Quality is the leader in eduation and all aspects of quality improvement

CSCMP

The Council of Supply Chain Management Professionals seeks to be the preeminent professional association providing worldwide leadership for the evolving logistics progression

APICS

The association for operations management is widely recognized for their professional society for persons interested in supply chain management

ISM

The institute for supply chain management provides national and international leadership in purchasing and materials management

Operations functions

collection of people, technology, and systems within an organization that has primary responsibility for providing the organization's products and services.

Trade-offs

decisions to emphasize some dimensions at the expense of others

Mission statement

explains why an organization exists. Describes what is important to the organization, and identifies the organization's domain