SCM Test 1

Web-Based Scorecards or Performance Dashboards

-Web-based software applications used to design scorecards, which also link via the Web to a firm's enterprise software system. -Provide managers a way to see real-time progress toward organizational milestones & help to ensure that decisions remain in sync with the firm's overall strategies.

Supply Chain Operations Reference (SCOR)

-plan, source, make, deliver, return -categories of operation (created by the association for supply chain management (APICS)

Quality

1. No. of defects per unit produced and per unitpurchased 2. No. of product returns per units sold 3. No. of warranty claims per units sold 4. No. of suppliers used 5. Lead time from defect detection to correction 6. No. of work centers using statistical process control 7. No. of suppliers who are quality certified 8. No. of quality awards applied for; No. awards won

Cost

1. Scrap or spoilage losses per work center 2. Average inventory turnover 3. Average setup time 4. Employee turnover 5. Avg. safety stock levels 6. No. of rush orders required for meeting delivery dates 7. Downtime due to machine breakdowns

Chase Strategy

Adjusts capacity to match demand

Long-range

Aggregate Production Plan (APP) usually covers a year or more, involves the construction of facilities & major equipment purchase

Integration

Barriers to integration, risk and security management, performance measurement, green supply chains

Qualitative forecasting methods

Based on opinions and intuition Generally used when data is limited, unavailable, or not currently relevant.

Level 0 - Final Product

Called Independent Demand item is affected by trends, seasonal patterns, & general market conditions

CPFR

Collaborative Planning, Forecasting, and Replenishment

Supply chain strategies must consider potential trade-offs existing between

Cost Quality Sustainability Service requirements Companies along supply chain must become more responsive

The framework consists of four perspectives

Financial perspective Internal business process perspective Customer perspective Learning and growth perspective

Customer Service

Flexibility1. Average number of labor skills 2. Average production lot size3 . No. of customized services available 4. No. of days to process special or rush orders Dependability 1. Average service response time or product lead time 2. % of delivery promises kept 3. Avg. no. of days late per shipment 4. No. of stockouts per product 5. No. of days to process a warranty claim 6. Avg. number of hours spent with customers by engineers Innovation 1. Annual investment in R&D 2. % of automated processes 3. No. of new product or service introductions 4. No. of process steps required per product

Quantitative forecasting methods

Forecasts based on mathematical models and relevant historical data.

Benefits include

Increase data storage and data analysis capabilities New capabilities without extensive training Reduction in IT costs Improvement in forecast accuracy Reduction in stockout and inventory carrying costs Improvement in employee productivity

Types

Jury of Executive Opinion Delphi Method Sales Force Composite Customer Surveys

Increasing Supply Chain Visibility

Knowing exactly where products are, at any point in the supply chain Inventory visibility is made easier by technology Sophisticated software applications for tracking orders, inventories, deliveries, returned goods, and even employee attendance

Performance measurement systems for SCs must

Link SC trading partners to achieve breakthrough performance in satisfying end users Overlay the entire supply chain jointly agree on appropriate SC performance measures value creation for end customers, since customer satisfaction drives sales for all of the SC members.

Logistics

Logistics management, customer relationship management, network design, RFID, global supply chains, sustainability, service response logistics

Mixed Production Strategy

Maintains stable core workforce using overtime, subcontracting & part-time workers to manage short-term demand

The TBL 3 P's

Planet, People, Profit

Performance Categories

Reliability, Responsiveness, Agility, Cost, Asset Management

Level Strategy

Relies on constant output rate varying inventory & backlog according to fluctuating demand

Carbon footprint

SCs evaluate design configurations and various options for reducing total carbon emissions (can be done using software).

Supply

Supply base reduction, supplier alliances, SRM, global sourcing, ethical and sustainable sourcing

enviormental sustainability

a management approach that involves developing strategies that both sustain the environment and produce profits for the company

Machine Learning (ML)

a type of AI that uses algorithms to better predict data

Balanced Scorecard (BSC)

align an organization's performance measures with its strategic plans and goals

Level 1 - Called Dependent Demand item

all components and subassemblies required for the final assembly of one unit

Good forecasting benefits

are lower inventories, reduced stock outs, smootherproduction plans, reduced costs, and improved customer service.

rtificial Intelligence (AI)

basically, is self-learning machines

Performance measures must

be visible and communicated to all SC members while managers collaborate to achieve results that allow firms toplan ahead, create value, and realize benefits

Matching or adjusting SC member

capabilities with end customer requirements

Triple bottom line (TBL):

combines several important performance measures in a framework incorporating social, environmental, and financial dimensions, includes environmental and social measures

MRP (Materials Requirement Plan)

computer-based materials management system that calculates exact quantities need dates, & and planned order releases for subassemblies & materials required to manufacture a final product

functional silos

departments only concerned with what is going on in their department), instead of optimizing the firm or supply chain performance.

Master Production Schedule (MPS)

detailed disaggregation of the aggregate production plan, listing the exact end items to be produced by a specific period

Bill of Materials (BOM)

document shows an inclusive listing of all componentparts & assemblies making up the final product - shown in various levels

The SCOR model is designed to

enable effective communication, performance measurement, and integration of processes between SC members.

Supply Chain Analytics

examining raw supply chain data and reaching conclusions or making predictions with the information Growth being pushed by the rise in computing capabilities and big data Huge volumes of data generated in business organizations including retail, healthcare, manufacturing, and electronics (BIG DATA)

Enterprise Resource Planning Systems (ERP)

integrates internal operations with a common software platform & centralized database system

Performance measurement

is the process of quantifying the efficiency and effectiveness of various activities

Capacity

maximum workload that an organization is capable of completing in a given period of time

Overall total productivity measure

output/ cost of (labor+capital+energy+material)

Short-range

plan covers few days to few weeks. Detailed planning process forcomponents & parts to support the master production schedule (i.e. materialsrequirement planning - MRP)

Intermediate

plan spans six to eighteen months. Shows the quantity & timing of end items (i.e. master production schedule - MPS)

Resource planning

process of determining the production capacity required to meet the demand

Aggregate Production Plan (APP)

process that translates annual business plans & demand forecasts into a production plan for a product family • Product family - different products sharing similar characteristics, components, or manufacturing processes

The MPS

production quantity to meet demand from all sources & used for computing the requirements of all time-phased end items

Capacity

refers to a firm's labor and machine resources

Cloud-based forecasting

supplier-hosted or software-as-a-service (SaaS) advanced forecasting applications that is provided on a subscription basis

Material Requirements Plan (MRP)

system of converting end items from the master production schedule into a set of time-phased component part requirements

Performance variance

the difference between standard and actual performance

Forecast error:

the difference between the actual quantity and the forecast

Supply Chain definition

the flow of goods and/or services, money, and information, from the point/moment of need identification to the point of value for the final customer.

Simple Moving Average Forecast

uses historical data to generate aforecast. Works well when demand is stable over time.