SCM 301: Final Exam Study Guide

Match with Existing Capabilities

- A new product or service that allows a manufacturer to use existing parts and manufacturing facilities is usually easier to support than one that requires new ones. - Service that exploit existing capabilities are especially attractive. - Companies should consider such factors as production volumes and existing capabilities when designing new products or services. (80% of cost for typical products is locked in at the design stage)

Project Management Software

- All can be done automatically - Enter info from Gantt Chart and Network Diagram into Microsoft Project - offers recourse utilization reports and exception reports on activities in danger of falling behind - management responsible to make sure it stays updated

Slack Time Calculation Rules for The Activity Network Diagram (4)

- EST = The largest EFT of any Previous Connected Operations. - EFT = EST plus (+) the Time to Complete the Operation. - LST = LFT minus (-) the Time to Complete the Operation. - LFT = The smallest LST of Any Connected Following Operation.

The Supply Chain Process: SCOR

- Return all defective product steps from authorization to disposition; replacement or credit - Return of raw materials to supplier and receipt of returns of finished goods from customer including defective products, excess products and MRO products

Trend: Business Process Modeling Tools

- Software tools that aid business teams in the analysis, modeling, and redesign of business processes. - Graphically design processes, simulate the performance of new processes, help develop cost estimates.

Trend: Business Process Management Systems (BPMS) products

- Software tools that allow analysts to model processes and then automate the execution of the process at run time. - Develop process maps, define business rules, carry out future business activity.

PMI - Project Management Institute

- Sponsors education and certification - Sponsors conferences, research, special interest groups - Publishes Guide to the Project Management Body of Knowledge (PMBOK®)

The Development Process (What are the 5 phases? in order)

1. Concept Development Phase 2. Planning Phase 3. Design and Development Phase 4. Commercial Preparation Phase 5. Launch Phase

The Development Process - Engineering

1. Concept Development Phase- propose new technologies; develop product ideas 2. Planning Phase- identify general performance characteristics for the product or service; identify underlying technologies 3. Design and Development Phase- develop detailed product specifications; build and test prototypes 4. Commercial Preparation Phase- resolve remaining technical problems 5. Launch Phase- evaluate field experience with product or service

The Development Process - Marketing

1. Concept Development Phase- provide market-based input; propose and investigate product or service concepts 2. Planning Phase- define target customers' needs; estimate sales and margins; include customers in development effort 3. Design and Development Phase- conduct customer tests; evaluate prototypes; plan marketing rollout 4. Commercial Preparation Phase- train sales force; prepare sales procedures; select distribution channels 5. Launch Phase- fill downstream supply chain; sell and promote

The Development Process - Operations and Supply Chain Functions

1. Concept Development Phase- scan suppliers for promising technologies/capabilities 2. Planning Phase- develop initial cost estimates; identify key supply chain partners 3. Design and Development Phase- develop detailed process maps of the operations and supply chain flows; test ew processes 4. Commercial Preparation Phase- build pilot units using new operations; train personnel; verify that supply chain flows work as expected 5. Launch Phase- ramp up volumes; meet targets for quality, cost and other performance goals

Project Phases (5)

1. Concept Phase 2. Project Phase 3. Planning Phase 4. Performance Phase 5. Post-completion Phase - between 2 & 3 is where project is declined or approved - project manager leads all 5 steps (combo of various functions)

Process of The Activity Network Diagram (7)

1. Define the project. 2. Identify all of the tasks needed to complete the project 3. Determine the initial tasks and build a sequence of additional tasks dependent on the first tasks as well as the tasks that can be performed simultaneously with the initial tasks. 4. Determine the time it takes to complete a task. 5. Determine if any slack time in a task sequence. 6. Identify the path or paths that have no slack time. This is the critical path. 7. Software such as Microsoft's "Project" is available to simplify the construction of this PERT chart.

Major Barriers of products for the environment

1. Design of product does not facilitate recycling or reuse 2. Economics and feasibility of... - Product acquisition - Reverse logistics - Reprocessing - Selling/distribution/disposal

Aspects of ERP Systems (3)

1. ERP systems pull together all of the classic business functions such as accounting, finance, sales, and operations into a single, tightly integrated package that uses a common database. 2. ERP's traditional strengths are in routine decision making and in execution and transaction processing. 3. ERP systems capture much of the raw data needed to support higher-level decision support systems (DSS).

QFD Matrices (4)

1. First matrix: Customer requirements to Product characteristics 2. Second matrix: Product characteristics to Product specifications 3. Third matrix:Product specifications to Process characteristics 4. Fourth matrix:Process characteristics to Process specifications

Project Management Tools (3)

1. Gantt Charts 2. Network Diagrams 3. Crashing a Project

Typical Questions Asked by Value Analysis Team (11)

1. Is the cost of the final product proportionate to its usefulness? 2. Does the product need all its features or internal parts? 3. Is there a better production method to produce the item or product? 4. Can a lower-cost standard part replace a customized part? 5. Are we using the proper tooling, considering the quantities required? 6. Will another dependable supplier provide material, components, or subassemblies for less? 7. Are there equally effective but lower-cost materials available? 8. Are packaging cost reductions possible? 9. Is an item properly classified for shipping purposes to receive the lowest transportation rates? 10. Are design or quality specifications too tight, given customer requirements? 11. If we are making an item now, can we buy it for less (and vice versa)?

Parts of the House of Quality (4)

1. Left side - Lists customer requirements and their relative importance to target customers. 2. Along the top - Lists specific product characteristics. 3. Main body - Shows how each of the product characteristics does or does not support the customer requirements. 4. Roof - Shows synergies between some of the features.

Reasons for Developing New Products and Services (4)

1. New products or services can give firms a competitive advantage in the marketplace. 2. New products or services provide benefits to the firm. 3. Companies develop new products or services to exploit existing capabilities. 4. Companies can use new product development to block out competitors. (to sustain profitability need to update product and improve)

Product Costs (2 types)

1. Obvious costs - Costs that are the easiest to see and manage. 2. Hidden costs - Costs that are not easy to track but can have a major impact. (can be surprises) - The number of parts in a product - Engineering changes - Transportation costs (more parts = more $, oddly shaped packages = more $ to transport) (associated with overhead and support activities driven by some aspect of design)

Product and Design Supply Chains to improve performance (4)

1. Postponement 2. Finished goods SKU rationalization 3. Component standardization 4. Aggregate Risk Pooling

Understanding Supply Chain Information Needs - Strategic Decision Making

1. Purpose- develop long range strategic plans for meeting the organizations mission Characteristics- focus on L.T. decisions, least structured of all, info needs can change dramatically from one effort to the next 3. Key Performance Dimensions for Info Flows- Flexibility (long-term)

Understanding Supply Chain Information Needs - Tactical Planning

1. Purpose- develop plans that coordinate the actions of key supply chain areas, customers and suppliers across the tactical time horizon 2. Characteristics- focus on tactical decisions such as inventory or work force, plans but does not carry out, physical flows, greater user discretion 3. Key Performance Dimensions for Info Flows- Form, Flexibility

Understanding Supply Chain Information Needs - execution and transaction processing

1. Purpose- record and retrieve data and execute and control physical and monetary flows 2. Characteristics- very short time frames, very high volumes, highly automated, standardized business practices, ideally no user intervention 3. Key Performance Dimensions for Info Flows- Accuracy, Timeliness (day to day)

Understanding Supply Chain Information Needs - Routine decision making

1. Purpose- support tule-based decision making 2. Characteristics- fairly short time frames, user discretion 3. Key Performance Dimensions for Info Flows- Accuracy, Timeliness, limited flexibility

What are Supply Chain Return Processes? (2)

1. Reverse Supply Chains 2. Closed Loop Supply Chains

Cloud Computing Benefits for Operations and Supply Chain Management

1. makes it much easier for firms to outsource key portions of business process information flows to outside firms 2. allows individual or computer systems to upload and retrieve information through a wide range of devices virtually anywhere 3. makes supply chain information faster, more flexible and cheaper than ever.

Cloud Model's Five Essential Characteristics

1. on demand self service 2. broad network access 3. resource pooling 4. rapid elasticity 5. measured service

Network Diagram

A graphical tool that shows the logical linkages between activities in a project. 1. Critical Path method 2. PERT - Both use same steps to construct a Network Diagram

Quality Function Deployment (QFD)

A graphical tool used to help organizations move from vague notions of what customers want to specific engineering and operational requirements. Also called the House of Quality

Gantt Chart

A graphical tool used to show expected start and end times for project activities and to track actual progress against these time targets. - *used to UPDATE upper level management because it addresses info upper management cares about - great info for general people - used to plan, measure, track a projects progress, what needs to be completed (time & cost) - WEAKNESS: fails to show precedence relationships which is a limitation for longer projects

Constructing a Network Diagram - Network Path

A logically linked sequence of activities in a network diagram.

Trend: Cloud Computing

A model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing recourses that can be rapidly provisioned and released with minimal management effort or service provider integration ( faster, flexible, cheaper)

Constructing a Network Diagram - Critical Path

A network path that has the longest, or is tied for the longest, linked sequence of activities. - duration of a project = duration of critical path(s)

Network Diagram - Critical Path Method

A network-based technique in which there is a single time estimate for each activity. - EST = LFT & EFT = LFT - greatest times = longest period of time (need max time because short times may not give enough time for all tasks)

Sequencial Development

A process in which a product or service idea must clear specific hurdles before it can go on to the next development phase.

Information System

A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making, coordination, and control in an organization.

Concurrent Engineering

An alternative to sequential development in which activities in different development stages are allowed to overlap with one another, shortening the total development time. (requires consistent communication between participants at various stages in development effort, teams to agree on critical product and process characteristics early in developmental process)(design and development phase)

Design for the Environment (DFE)

An approach to new product design that addresses environmental, safety, and health issues over the product's projected life cycle during the design and development process. (becoming increasingly important)

Design for Six Sigma (DFSS)

An approach to product and process design which seeks to ensure that the organization is capable of providing products or services that meet Six Sigma quality levels. (same as DMADV) **In general, no more than 3.4 Defects Per Million Opportunities (DPMO)

Computer-aided design/computer-aided manufacturing System (CAD/CAM)

An extension of CAD where CAD-based designs are translated into machine instructions, which are then fed automatically into computer-controlled manufacturing equipment. (rapid prototyping, able to design complex product from multiple places in the world)

Computer-aided Design System (CAD)

An information system that allows engineers to develop, modify, share, and even test designs in a virtual world. (transform the development process, avoid time expense, paper/practical prototype)

Organizational Roles in Product and Service Development - Suppliers

Bring opportunities for improvement, reduce financial risks, help in the development process. (bring fresh perspective to the tables, divide development effort which saves time + financial risks, important suppliers should be introduced early)

Candidate Products for Environment

Complex products that can be remanufactured and/or that can be broken into components that can be re-used Products that have different degrees of technology diffusion Refillable containers

Decision Support Systems (DSS)

Computer-based information systems that allow users to analyze, manipulate, and present data in a manner that aids higher-level decision making (VS. SRM & CRM)

Design for the Environment (4)

Cycle 1. Supply: Recycled material, less material, replenishable material 2. Production: less energy to process, renewable resources, eliminate waste, less packaging 3. Customer use: less energy use, longer life, easy to repair, no by-product, doesn't harm the environment 4. End of life: easy to disassemble, recyclable, less energy to dispose, doesn't harm the environment

DMADV

Define, Measure, Analyze, Design, Verify -Define the project goals and customer deliverables. -Measure and determine customer needs and specifications. -Analyze the product or process options to meet the customer needs. -Design the product or process. -Verify the new product or process.

The Activity Network Diagram

Extensively used in project management to plan the most appropriate schedule for the completion of any complex task and all of its sub-tasks. This tool is also referred to as the PERT chart. (Program Evaluation and Review Technique)

Organizational Roles in Product and Service Development - Designers

Handle product design and create "identities" for companies, environments, and service experiences. (can come from many backgrounds and are the least understood) (logos, design, environment, improve products)

Organizational Roles in Product and Service Development - Purchasing

Identify the best suppliers and sign them up early in the process and act as a consultant for material supply markets. (important for product development, they are consultant of special knowledge of material markets)

Production Volumes

Increased volumes due to developing a new product or service can be handled by expanding a firm's own operations by building new facilities, hiring additional workers, buying new equipment, or joint planning with key suppliers. (products may be successful in terms of design but cannot be massed produced at profitable level)

Internal Supply Chain Management

Information flows between higher and lower levels of planning and control systems within an organization.

Organizational Roles in Product and Service Development - Finance

Judge the financial impact and determine how to acquire the needed capital.

Enterprise Resource Planning (ERP) Systems

Large, integrated, computer-based business transaction processing and reporting systems. - cross functional aspects of supply chain ie. marketing finance sales operation purchasing all share a centralized database

Network Design Applications

Logistics information systems that address such long-term strategic questions as facility location and sizing and transportation networks. - Often using simulation and optimization modeling

Warehouse and transportation planning systems

Logistics information systems that allocate "fixed" logistics capacity in the best possible way given business requirements. (use optimization and stimulating model)

Warehouse management and transportation execution systems

Logistics information systems that initiate and control the movement of materials between supply chain partners.

Reverse Supply Chains

MRO or Maintenance, Repair and Operating Supplies, Defective products, after sales service

Closed Loop Supply Chains

One that considers the elimination of waste in the production of a good or service, and the reuse and/or recycling of all or a portion of the product when a user is finished with it.

The Supply Chain Model: Return Process

Plan (down) Source, Make, Deliver (down) Return (up) (Info technologies go both ways)

Supplier Relationship Management (SRM)

Planning and control activities and information systems that link a firm with is upstream suppliers. Examples: Design collaboration, sourcing decisions, negotiations, buy process, supply collaboration

Customer Relationship Management (CRM)

Planning and control activities and information systems that link a firm with its downstream customers. Examples: Market analysis, sell process, order management, call/service center management

Organizational Roles in Product and Service Development - Accounting

Play the role of "scorekeeper."

Network Diagram - PERT

Program evaluation and review technique (PERT) - A network-based technique in which there are multiple time estimates for each activity. - allow to monitor progress over a period of time while managing cost

Constructing a Network Diagram - Critical Activity

Project activity for which the earliest start time and latest start time are equal. A critical activity cannot be delayed without lengthening the overall project duration - EST = LST

Organizational Roles in Product and Service Development - Engineering

Provide the expertise. (many different types of engineers)

Purpose of The Activity Network Diagram

Purpose: Permits a team to find both the most efficient path and realistic schedule for the completion of any project by graphically showing total completion time, the necessary sequence of tasks and task dependencies and the critical tasks to manage (critical path).

Crashing a Project

Shortening the overall duration of a project by reducing the time it takes to perform critical path activities. - Focus on the critical path or paths. Working one period at a time, choose the activity or activities that will shorten all critical paths at the least cost. - The one rule is this: Never crash an activity that is not on a critical path, regardless of the cost. Doing so will not shorten the project; it will only add costs. - *** FOCUS ONLY ON CRITICAL PATH (reduce & recalculate) - costs will not always be impacted by crashing, may be resources as well

Slack

Slack= LS - ES (Slack= lastest start time - earliest start time)

PMBOK - Project Management Body of Knowledge

Study for certification, provides common language for discussing project management issues - Part I: Various business processes that organizations follow in carrying out projects. - Part II: Nine knowledge areas applicable to nearly all projects.

Critical Path

The Critical Path is Defined by Operations That Have EST = LST and EFT = LFT. There is no Slack Time or Schedule Flexibility in These Operations.

Project Management

The application of of knowledge, skills, tools and techniques to project activities to meet project requirements. It is gaining importance as a management discipline because...... - companies accept the fact that complex projects can be managed well - professional organizations such as Project Management Institute have emerged - pace of strategic change has quickened - advanced technology replaced the traditional role of middle management. (faster pace of strategic change = fight off competition) (more accurate + lower cost)

Product Design

The characteristics or features of a product or service that determine its ability to to meet the needs of the user. (intangible and physical products)

Repeatability

The design of products to be less sensitive to variations, including manufacturing variation and misuse, increasing the probability that they will perform as intended. (high tech struggle with mass production. robust designs are better b/c reproduce in high volume)

Forward Pass

The determination of the earliest start and finish times for each project activity.

Backward Pass

The determination of the latest finish and start times for each project activity.

Earliest Finish Time (EF)

The earliest an activity can be finished, calculated by adding the activity's duration to its earliest start time. - EF = ES + activity's duration

Earliest Start Time (ES)

The earliest an activity can be started, as determined by the earliest finish time for all immediate predecessors - ES = Latest EF for all immediate predecessors

Testability

The ease with which critical components or functions can be tested during production. (waste for LEAN)

Serviceability

The ease with which parts can be replaced, serviced, or evaluated.

Post completion Phase (5)

The fifth of five phases of a project where the project manager or team confirms the final outcome, conducts a postimplementation meeting to critique the project and personnel, and reassigns project personnel. - project ends "wrap up"

Launch Phase

The final phase of a product development effort. For products, this means "filling up" the supply chain with products. For services, it can mean making the services broadly available to the target marketplace. (management must monitor quality, cost, delivery, and that all targets are being met)

Concept Phase (1)

The first of five stages of a project where project planners develop a broad definition of what the project is and what its scope will be. - Outputs: initial budget estimates (usually accurate), estimates of personnel needed, and required completion dates - asks the question "Is the project feasible?"

Concept Development Phase

The first phase of a product development effort where a company identifies ideas for new or revised products and services. (comes from a variety of sources not just customers and not all products make it to the next step, planning)

Performance Phase (4)

The fourth of five phases of a project where the organization actually starts to execute the plan. - value becomes apparent (may be the longest phase)

Commercial Preparation Phase

The fourth phase of a product development effort where firms start to invest heavily in the operations and supply chain resources needed to support the new product or service. (may mean new facilities, warehouses, personal, information systems. if new supply chain partners are needed can also cost $ and be very difficult)

Latest Finish Time (LF)

The latest an activity can be finished and still finish the project on time, as determined by the latest start time for all immediate successors. - LF = Earliest LS for all immediate successors

Latest Start Time (LS)

The latest an activity can be started and still finish the project on time, calculated by subtracting the activity's duration from its latest finish time. - LS = LF - activity's duration

Product Development Process

The overall process of strategy, organization, concept generation, product and marketing plan creation and evaluation, and commercialization of a new product. (contrast of product design - cross functional effort affecting operations and supply chain activities, marketing, HR, Finance ect.)

Target Costing

The process of designing a product to meet a specific cost objective. - Setting the planned selling price and subtracting the desired profit as well as marketing and distribution costs, thus leaving the required target cost (design to cost)

Value Analysis (What is the formula?)

The process that involves examining all elements of a component, an assembly, an end product, or a service to make sure it fulfills its intended function at the lowest total cost. **Value = function/cost (objective is to increase value at lowest cost without sacrificing quality)

Project Definition Phase (2)

The second of five phases of a project where project planners identify how to accomplish the work, how to organize for the project, the key personnel and resources required to support the project, tentative schedules, and tentative budget requirements. - estimates become more exact

Planning Phase

The second phase of a product development effort company where a company begins to address the feasibility of a product or service. (after concept approval, customers brought in to evaluate ideas)

Design for Maintainability (DFMt)

The systematic consideration of maintainability issues over the product's projected life cycle in the design and development process. (goal: improve serviceability, focus on how easy it is to maintain and service a product after it has reached a customer)

Design for Manufacturability (DFM) (What are the two parts?)

The systematic consideration of manufacturing issues in the design and development process, facilitating the fabrication of the product's components and their assembly into the overall product. 1. Parts Standardization (components, design parts with symmetry, goal: consistently process high quality levels at lowest cost if possible with existing processes) 2. Modular Architecture (each functional element maps in to its own physical chunk and different chunks have different functions. Interactions with chunks are minimal and well defined

Planning Phase (3)

The third of five phases of a project where project planners prepare detailed plans that identify activities, time and budgets targets, and the resources needed to complete each task, while also putting into place the organization that will carry out the project. - critical creation of project teams - MILESTONES: develop performance times and targets (narrow down)

Design and Development Phase

The third phase of a product development effort where the company starts to invest heavily in the development effort and builds and evaluates prototypes.

Organizational Roles in Product and Service Development - Marketing

Understand the marketplace. (apply knowledge to development process, select distribution channels, research techniques)

Project

a temporary endeavor undertaken to create a unique product, service or result. - clear starting and ending point - people/resources reassigned at ending point - non-routine, large or small, may be difficult to manage - require significant cross-functional and inter organizational coordination - vital to survival of a company