week 6

Act

Standardize and apply improvement to other parts of the organization.

Which is the correct total cost formula?

TC = RC + RSQ + QKC2

A best buy decision includes

-market conditions. -the products procurability. -all relevant stakeholders buy-in. -technical considerations.

What are the difficulties when acquiring services?

The inability to store for future use Ensuring adequate capacity Ensuring the proper timing of delivery

Basic elements for determining carrying cost include

inventory service costs. storage space costs. capital costs. inventory risk costs.

check

measure and evaluate the results of the countermeasures.

The six eligibility categories for the Malcolm Baldrige National Quality Award are: manufacturing, service,

nonprofit. education. small business. health care.

The supply manager for ABC manufacturing wants to ensure he orders the right components when required by production; he must ensure he includes forecasting, costs, price-volume relationship, availability, and _______ when making decisions

shortages

The three basic MRP inputs are

the master production schedule. the inventory record. the structured bill of materials.

The two types of quality checks on tangible products is

-100 percent inspection. -sampling.

When is "Description by Brand" Desirable?

-Specifications cannot be laid down with sufficient accuracy. -The manufacturing process is secret or the item is covered by a patent. -The quantity bought is so small.

What ordering system that strategically positions inventory to achieve all benefits of modern supply chain management while combining traditional MRP, lean, and theory of constraints?

DDMRP demand driven MRP

Developing standard quality assessment tools is useful with _________ services.

REPETITIVE

Every organization has specific needs, the value of these needs are categorized into three levels, they are:

Strategic, traditional, and additional current.

The supply manager wants to implement some continuous improvement initiatives, one of the key places to examine is

The process that produce: without examining the process, the manager will likely miss critical continuous improvement opportunities.

What is a reason a company may choose insourcing?

Threat to assurance of supply

Supply management is concerned with the _______ proposition of specific needs

VALUE

What type of inventory that is managed by the supplier and at a minimum means the supplier determines when to replenish and how much to replenish?

VMI

Function

When an item purchased meets the performance

When an employee deals with unhappy customers over matters out of their control, the employee can develop

an uncaring attitude.

MRP systems that perform routine clerical tasks allow the supply professional to focus efforts on more __________ and ____________ tasks.

analytical strategic

Capital expenditures are shown as on the balance sheet.

assets

MRP systems require an accurate ____________ ____________ ______________ to determine needs.

bill of materials

Specification by material and method of manufacturing places the risk and responsibility on the _________ organization.

buying

DMAIC is the six sigma philosophy, it stands for

define, measure, analyze, improve, control.

True or false: All make or buy decisions should emphasize the long-term goals for robust and flexible supply chains.

true

True or false: MRP allows for how much and when to order decisions to be made simultaneously.

true

True or false: Nonrepetitive purchases must be handled on a case by case basis, this can be from small value purchasing to capital investment.

true

True or false: Statistical Process Control (SPC) is an industry-standard methodology for measuring and controlling quality during the manufacturing process.

true

True or false: Unusual or infrequent purchases must be dealt with on a case by case basis.

true

Innovation allows suppliers and purchasers to work together continually to improve

value and total cost of ownership.

The types of products or services to offer are strategic ___________ decisions, while what to make or buy are strategic _________ decisions.

entrepreneurial; operational

Sustainable supply chains require supply managers to take both _______and ________________factors into consideration.

environmental and social

One hundred percent inspection means that

every part is checked to tell whether or not it is defective.

Often quality assurance is responsible for inspection of materials at receiving, in-process, and with the ______ product.

finished

Partners who use CPFR benefit from

higher service levels. increased sales. reduced inventories.

do

implement countermeasures.

Raw materials are basic substances in a _____, _____, or _____ state that are used as inputs to a production process.

modified semi-processed natural

The degree of tangibility can be used in strictly service organizations, with no tangible goods, by setting standards for

personnel training. machine qualification.

Continuous improvement follows a

plan-do-check-act cycle

The ninth dimension of quality is "

procurability

Prior to awarding a supplier business, the buying organization should conduct a

quality capability survey. quality assurance survey.

Supplier evaluations include evaluation criteria to assess

quantity. delivery times.

The organization needs to be categorized under the traditional value proposition are evaluated under the criteria of

quantity. service. quality.

A sample in which every element in the population has an equal chance of being selected is a

random sample.

MRP systems give organizations the ability of

rapid replanning. rapid rescheduling.

Fixed-period models place orders only at ___________ times.

review

is used to complete work that has been bid out by prime contractors.

subcontractor

Given the importance of insourcing and outsourcing decisions, the ____________ manager should be heavily involved.

supply

This class of quantitative forecasts uses linear or multiple regression lines from leading indicators.

Causal models * Causal models try to identify leading indicators and use linear or multiple regression lines to forecast.

Determine if the definition is standardization or simplification. Standardization -> Simplification ->

-Agreement on quality. - Preliminary to standard products

What are the benefits of a supplier certification program for suppliers?

-Suppliers are publicly recognized by buyers. Suppliers receive systematic improvements. Suppliers are considered first for new business.

Managers typically set service coverage levels to ______________ %.

95

The two types of Kanban cards are

C-Kanban P-Kanban

Forecasts provide managers with a way to make decisions before actual requirements are known, which forecasts should be considered when making purchase decisions?

Lead times Prices Demand

The quantity and inventory levels maintained depend on __________ or _____________ and if the inventory is dependent or independent.

demand usage

The quantity and inventory levels maintained depend on ________ or ____________and if the inventory is dependent or independent.

demand usage

a _________ means the different methods by which the buyer communicates to the seller a clear, detailed picture of the required item.

description

ISO 9001:2015 defines the requirements for a quality system, but does not ___________ how they should be be met.

dictate

A subcontract performance summary is beneficial for

evaluation fore future selection. information for subsequent claims. information for renegotiation.

True or false: Forecasting of services is an easier process than that of tangible goods.

false

A die shop has three options during production—make the part from a blank, buy a finished piece, or machine a partial piece from a forging. If the production manager chooses to machine an incomplete part from the purchased forging, this is known as the zone.

gray zone

Quality improvement opportunities are ______ in many organizations who have failed to acknowledge them throughout the years.

great: The opportunity to improve quality is great in many organizations.

Collaborative Planning, Forecasting and Replenishment helps customers enjoy _____________product availability.

increased

Supply chain management requires the evaluation of need under more than just strategic or traditional criteria, these newly added categories include

sustainability. risk management. political factors.

ABC manufacturing has decided to use a custom component to decrease the ability of competitors to copy their design, the disadvantage of this is

the part is not readily available.

True or false: One suppliers finished goods can become the purchaser's raw material.

true

Plan

collect data and set performance target.

The Deming Prize is given annually in areas of

individual contributions to the field of TQM. businesses who have successfully implemented TQM.

CRP is connected to the manufacturing plan

on the shop floor.

The three supply chain risk management categories are

operational. financial. reputational.

Descriptions for supplies can be given using a variety of forms, supply personnels responsibility is to

-order as requested. -verify the description and provide alternatives.

To determine the stability of a process the supplier must determine

-the natural capability of the process. -if the upper and lower capability limits meet customer requirements.

The Deming Prize was established in

1950

Quality function deployment was developed in Japan during the _____.

1960s / During the 1960s QFD was developed in Japan.

The five forms and functions of inventory give supply managers types of inventory to operate with.

25

Annual cost for inventory range from __________ of the total value of the inventory.

25-50%

_____ to _____ percent of total product costs can be associated to poor

30 to 40 %

The purchase price of a capital purchase is between _______ percent of the total cost of ownership.

30 to 50%

Formal evaluations consist of ___________ dimensions.

5

The Pareto curve is often called the ______________ - _____________ rule, or ABC analysis.

80 20

What is Quality Function Deployment (QFD)?

A systematic process to integrate customer requirements into every aspect of the design and delivery of products and services A collection of tools used to translate qualitative customer requirements into quantitative products and services.

___________ ______________ ____________ answers the question, "Do we have the needed capacity to process jobs?"

Capacity Requirements Planning

What major developments does MRP II have from MRP?

Connection with financial systems. Capability for what if scenarios.

Quality assurance is important from which aspects?

Customer Supplier Production

Why is supply chain sustainability important to today's supply chain managers?

Developing products that are safe for consumer use. Global warming/climate change concerns. Developing products that use less scarce resources.

What are the difficulties when acquiring services?

Ensuring adequate capacity The inability to store for future use Ensuring the proper timing of delivery

What software facilitates the flow of information across the functional boundaries of an organization effectively?

Enterprise Resource Planning (ERP)

Which of the following are reasons that previously make or buy decisions can be reversed?

Environmental circumstances Market circumstances Organizational circumstances

What is the purpose of ISO 9001:2015?

Increased emphasis is placed on senior leadership accountability with quality and business strategies. Places a greater emphasis on assessing process inputs and outputs in regards to quality. Provides standardized quality management requirements regardless of industry or size of the organization.

What does the acronym ISO stand for?

International Standards Organization

Which system is designed to have components, materials, and services arrive at work centers exactly as needed?

Just-in-time (JIT) systems are designed to have components, materials, and services arrive at work centers exactly as needed.

Vendor Managed Inventory (VMI) is typically for ___________ value items that are needed in stock for immediate use as required.

LOW

Quality Dimensions

Managers ensure quality goods by balancing performance, features, reliability, durability, conformance, serviceability, aesthetics and perceived quality.

What are the challenges service industries face in adopting quality standards?

Managing relationships. Certifying partners. Adapting and applying tools.

Commodity managers must be aware of _________ ,conditions to ensure they meet supply and demand, price movements, and proper acquisition timing.

Market

Which method of description is confined to certain primary materials?

Market Grade

The two-card system for Kanban control has which three rules?

No parts can be made without a production card. There is only one conveyance and one production card per container. Only standard containers may be used.

Service production can be with _____________ or ____________, or a combination of both.

PEOPLE OR EQUIPMENT

Supply need management is important for smaller businesses to maintain ___________ cash flow.

POSITIVE

refers to the ability of a material, good, or service to meet the intended functional use.

Suitability

Performance specification allows the ________ to take advantage of the latest technology to provide the most suitable product.

Supplier

The subcontract cost, schedule, technical control, and configuration control are managed by the

The Subcontract Administrator is responsible for the cost, schedule, and control of the subcontract until completion.

What is a factor that is the key to a business's success that competitors can't easily copy?

The core proficiency is seen as the key to a company's success.

Choose the reasons a firm should purchase goods or services over making them.

The firm has strict on time delivery deadlines and requires a multi-sourcing strategy using an external supplier in addition to an internal source. The firm wishes to take advantage of a supplier's brand image. The supplier can provide the benefit of economies of scale for components that are non-vital to the organization's operations.

Portfolio analysis helps organizations focus more quality attention on

high impact services

To determine the reorder point, the _______ time is necessary.

lead

Reviewing corporate need under a financial examination allows supply managers to help

lift the company's financial ratings. improve return on assets.

Quality assurance responsibilities include

monitor continuous quality improvement programs. establish effective quality controls. supporting quality efforts of suppliers for design. inspecting incoming material.

What is it called when a company contracts with a third party to do some of the company's work?

outsourcing

External failure costs are those that

pass through the system and lead to customer warranties, loss of customers, handling complaints, and product repair.

The quality of the _______, component is the primary concern in services with high labor

people

When ------- stock is not available, the quality of all incoming components, parts, and services must be adequate.

safety

Maintenance, repair, and operating supplies deal with many __________ value purchases.

small

The six eligibility categories for the Malcolm Baldrige National Quality Award are: manufacturing, service,

small business. health care. education. nonprofit.

Specification data can be obtained from

-the buying organization. -private agencies. -government standards.

ABC analysis is an inventory categorization method which consists of dividing items into three categories, A, B, and C: A being the most valuable items, C being the least valuable ones. A items make up about ______ to ___________ percent for an organization.

10 - 20

Organizational need can be divided into broad categories.

7

The Malcolm Baldrige National Quality Award has __________ categories of criteria for organizations to meet.

7

Large fluctuations in demand from the retailer up through the supply chain is known as the ___________ effect.

BULLWHIP

The three stages of sampling, inspection, and testing are

Before the purchase commitment is made to the supplier. During the commitment to the supplier. After a purchase commitment has been made.

How is using description by brand restrictive?

Brand specific requirements can deprive the buyer of using other suppliers.

What are the three steps of a JIT production process?

Build-in quality Worker responsibility Compliance to quality standards

The ________________ refers to the time between purchasing the raw materials used to make a product and collecting the money from selling the product.

CASH CONVERSION CYCLE . Reason: Cash cycle conversion is the measure of time between dispersing cash for investments and accounts payable and collecting accounts receivable.

Insourcing and outsourcing decisions should be evaluated

Continuously

Which of the following is the first step in the acquisition process?

Determine what is needed and why

What are the two steps to the acquisition process when determining commercial equivalents?

Determine what is needed and why. Translate needs into terms suppliers can understand.

True or false: Requirements evaluated under the service criteria are easier to quantify than the remaining traditional criteria.

FALSE :Service components can be harder to quantify.

standards set the regulations that organizations must meet when concerning employee health and safety, environmental factors, or consumer product safety.

Governmental

tQM was developed in ______ by _________.

Japan; W. Edwards Deming

______ __________ forecasts follow patterns over time

Time Series forecasts follow patterns over time

Value proposition describes how _______ will improve customer success and allow the organization to do better.

innovation

Value proposition describes how will improve customer success and allow the organization to do better.

innovation

According to the six sigma philosophy, if you control the ________inputs , ______, you will control the

input, output

Direct spend is likely to be______while indirect spend is normally ________________

insourced / outsourced

The value of materials purchased by market grade is subject to to ascertain the degree of compliance.

inspection

Services are ________ and nonmanufactured.

intangible

The costs associated with defects incurred within the system that can lead to scrap, rework, repair?

internal failure costs

The goal of lean enterprise is to optimize the flow of products and services both ____________ and __________.

internally and externally

ABC automotive does not currently have the necessary technology and expertise to manufacture a mandatory component required for their exhaust systems, the cost of purchasing the machinery, tooling, training, and employees is very costly. ABC automotive should

purchase the part from a third party vendor.

Supply chain for most organizations can be classified into seven categories of resale, MRO, services, other, _______, ________, and ______.

raw components capital assets

Organizations often increases in their competitive advantages due to

reduced cycle time. using a just-in-time delivery system.

ABC manufacturing wants to understand their business needs better, to do this they must first know who

requires

Match the risk management type to the definition for supply terminology. Operational Risk - Financial Risk - Reputational Risk-

-Interruption of goods and services. -Significant change in price of goods/services. -Adverse supplier behavior that affects the purchaser.

Which of the following are reasons that a company may choose to make over buy?

-No existing supplier in the market and not enough time to spend developing one before the product is required. -The ability to produce the material or product at a lower cost and avoid paying a 3rd party's profit margin. To have more control of the quality of the material/product than a supplier.

Standard specifications offer advantages of

-being widely known. -being commonly recognized. -being readily available.

Corporations who use standardization and simplifications can see achievements in

-lower inventories. -improved quality. -lower costs.

Forecasts are typically _________ continuous improvement methods can help increase

wrong

Which items influence the decision of an organization for what needs are required to operate the business?

The size of the organization. The location of the organization. The industry the organization is involved in.

What five areas can supply manager focus on for reduced complexity and exploitation of economies of scale?

Product design Procurement Planning Order fulfillment Manufacturing

____________ refers to the ability of a material, good, or service to meet the intended functional use.

Suitability

True or false: The human element is critical in many services.

TRUE

Reliability

The ability of a product to meet requirements over a specified period of time.

A process that is in a state of statistical control with only common cause variation is considered

capable

What involves all costs attributable to the production of a good or service that is not 100% perfect?

cost of quality

For repetitive purchases contract length is influenced by

design stability. product or life cycle.

When supply chain managers consider logistic needs, the packaging can affect

disposal needs. environmental concerns. transportation requirements.

True or false: Additional criteria that have been added for supply chain managers to evaluate corporate need from has made supply management easier.

false . Reason: Supply management has become more difficult with additional criteria.

True or false: Closure requirements for all subcontracts are universal.

false: Each subcontract closure requirements will vary in complexity, but the performance summary should be included.

True or false: Employees who directly deal with upset customers due to substandard goods or services, always become more prideful in their work.

false: Employees often lose pride in their work or the incentive for continuous improvement.

There are five forms of inventory that include raw materials, work-in-process, _______________goods, ________ items, and resale items.

finished goods MRO

What are the two main pillars of a lean enterprise?

jidoka just in time

Compressed cycle times and proper coordination of material can result in materials arriving ______________ _________ ________

just on time

The Japanese name for continuous improvement is

kaizen

A challenge with MRO purchases is

keeping acquisition costs low. " MRO is a very diverse category that generally deals with small value purchases so keeping acquisition costs low is a challenge.

A company that needs to protect intellectual property, even with a confidentiality agreement, may choose to ___ over ____

make / buy

Fixed-period models attempt to determine the ________ order period.

optimal

A car manufacturer has ________ the installing of windows in all their models to a third party vendor.

outsourced

ABC lunch box is an American eatery, since the customer is directly affected by the food provided, the wait staff should

pay extra attention to any special needs.

The distribution channel between buyers and sellers is represented by .

resellers

Buffer inventory level can be established by using the ______________ coverage.

service

A flaw that results in loss of consumers or a lower customer satisfaction level is a

service defect

When acquiring goods or services, the purchaser must determine

the best buy circumstances.

An informal evaluation of service suppliers should include questions on

the difference between the cost of the service and the perceived value. the ability of the provider to meet quality expectations. the level of customer satisfaction.

The range between 100% insourcing and 100% outsourcing. that is useful for testing and learning both sides of supply without fully committing is known as

the green zone

MRP planning is typically mapped out over

the next year.

The most significant cost for resellers is

the price they pay for goods they resell.

Suitability

the product is a good fit and meets the intended use requirements

Reduced cycle times and more responsive acquisition methods are the direct efforts of

the reengineering work of supply processes.

Besides the dollar value, items are considered strategic if

they allow access to new markets. they improve the reputation of the organization.

Inventories are maintained by organizations

to obtain a reasonable utilization of people and equipment. to smooth the flow of goods through the production process. to provide protection against the uncertainties of supply and demand. to provide and maintain good customer service.

Total quality management, lean thinking, and statistical process control are _____________ and techniques to assure quality.

tools

An integrated effort designed to improve quality performance at every level of the organization.

total quality Management - In TQM all members of an organization participate in process improvement.

True or false: In some instances, 100 percent inspection can significantly increase the cost of producting a part.

true. Depending on the severity of a mistake, 100 percent inspection may be necessary, other times it can increase the cost of a part significantly.