International Logistics/Frank Adams/Exam 1
Facility Location
Where should you make things? A design decision that emphasizes where you want to locate your operations in places that give you access to either factor inputs (ex; low cost labor or materials) or consumer markets. EX: located in china for both^^
value creation
Why do you need to know how your customers define value? Customers make purchase decisions based on the value they expect to obtain. The question in their mind is, "Does the value justify the cost?" If your goal is to drive revenue growth—that is, obtain and retain customers—you need to deeply understand what customers value.
Inventory Control
Will you have enough materials--when you need them? A control decision that helps you decide HOW MUCH and when to make specific products. "How much to produce" is calculated by economic order quantity and "when to produce is calculated by reorder point.
Forecasting
Will you have the right materials--when you need them? A control decision that helps you estimate what products you need to produce and when you need to produce them. Tool for guessing what products are going to sell. Almost always wrong, so you want to build flexible operations.
Quality Control
Will your products meet customer expectations? A control decision that helps you design, build, and inspect quality into both the transformation process and the product. Ultimately quality is nothing more or less than meeting customer expectations
Order Loser
a product characteristic that disqualifies your product from purchase consideration
Order Qualifier
a product characteristic that is required for a customer to consider your product
Order Winner
a product characteristic that makes your product attractive; that is, it differentiates your product in a way that leads a customer to want to buy it.
Aesthetics
are perceptions of fit and finish (also, artistic value)
Return on investment (ROI)
critical measure of financial success
Reliability
defines the user's ability to count on the product to not fail
Time utility
emerges from the effective management of all value-added processes that influence when a product is available for purchase
Possession utility
falls within marketing's domain and consists of efforts to communicate (promote) a product's value and then facilitate the exchange process
Conformance
how well a product conforms to design specifications
Place utility
is primarily the charge of supply chain managers who assure that products and services are where customers expect to find them--when they are needed
Return on assets (ROA)
measures profitability generated by managing operational assets
Utilization touch points
occur as you travel; that is, as you check in, board the flight, and pick up your luggage on arrival. Good in-flight service leads to positive perceptions. Lost luggage leaves you frustrated and dissatisfied
Acquisition touch point
occurs as a customer learns about and make a purchase decision. Ex: you are planning a vacation--you experience these touch points as you compare competing flight schedules and fares as well as when you book your flight
Form utility
primary responsibility of purchasing and operations managers who acquire inputs and transform them into products or services of greater customer value
Perceived quality
refers to a product or brand's quality reputation
Durability
refers to a product's life expectancy (also-- mean time between failure)
Resource orchestration
refers to the skills that enables companies to bring the resources of the entire supply network together. Consists of 3 steps: 1) Select Team Members 2)Assign team roles 3) Build team cohesion
Strategic Profit Models
shows relationship of income and balance sheet to return on assets (ROA)
Serviceability
the speed and ease of repair when problems occur
Features
the unique characteristics that distinguish a product from rivals products
Who spoke at the supply chain career panel?
-C.H. Robinson -DHL Supply Chain -International Paper
Difference in product and service supply chains
-Customer contact--customers don't ever touch the assembly line--but play key role in service delivery -Tangibility of offering- you can't hold service operation in your hand. -services are consumed as they're produced -services cannot be inventoried -because customers are involved, each instance of service delivery is unique
Control Decisions
-Forecasting -Inventory control -Scheduling -Quality control are all types of?
Evolution of operations management
-Henry Ford didn't invent the assembly line. -As early as 15th century, Venetian shipbuilders used a large-scale assembly line and labor specialization to equip their fighting galleys. By towing the galleys through a water channel, they could completely outfit a ship every 36 min. -Venetians also employed parts standardization making rudders on warships interchangeable. -Following the Industrial Revolution--when machine power substituted for human power, enabling huge improvements in productivity--operations practice has advanced dramatically
Design Decisions
-Product Design -Process Design -Facility Layout -Facility Location
Mrs. Woodall's Career Fair Lecture
-Research the companies coming -Dress professional -Have copies of your resume
utility types
1) Form 2) Possession 3) Time 4) Place
8 quality assessment factors
1) Performance 2) Features 3)Reliability 4) Conformance 5) Durability 6) Serviceability 7) Aesthetics 8)Perceived quality
Agility Capabilities
A cross functional capability that relies on effective information systems, well-designed processes, and the adaptability of your firm's people. -Enables your company to deal with the risk inherent in lean, global operations. -Enables you to recover from the unexpected more quickly and resume operations faster than rivals.
Expectancy disconfirmation theory
A theory that seeks to explain post-purchase satisfaction as a function of expectations, perceived performance, and disconfirmation of beliefs
SCOR Model
A tool used by leading companies around the world to improve operations and enhance value creation Plan, Source, Make, Deliver, Return
2 Types of Moments of Truth
Acquisition touch point Utilization touch point
Services as part of the economy
Amount for 80% of both GDP and employment in the US. As economies mature, they evolve from agrarian to industrial to service societies.
Reorder Points
Answers the question of "when to produce"--which compares the amount of inventory currently available to the rate of demand
Facility location decisions
As you evaluate potential locations, you will probably focus extensively on labor costs or resource proximity. Almost every company does. However, you really need to take a broader, total-cost focus and consider all of the following: The cost of land, construction, and energy Tax rates Transportation rates and availability Labor availability and productivity Materials cost The location of customers and competitors Lifestyle considerations.
Cost reduction
Companies pursue a combination of four strategies: 1) Process Involvement 2) Automation 3)Offshoring 4)Outsourcing
Control Decisions
Day-to-day decisions you make that define how you create things.
Design Decisions
Determine where and how you deploy your assets--especially plant and equipment (your infrastructure) to create value over the long haul
Moments of truth
Each touch point between a customer and the firm. A moment that may forever define how a customer views your firm
The Scientific Method
Frederick Taylor brought an early form of continuous improvement to the factory floor. His approach of observing, training, monitoring, and improving led to standardized operations practices.
Scheduling
How will you use your resources? A control decision that helps you prioritize what you will produce. Occurs at 2 different levels: 1) aggregate planning- decide what needs to be produced and more or less when you need to produce it. 2) schedule the work to be done at any point in time. assign different priorities to each job/product/project
Offshoring
Improved logistics have reduced the total landed costs and delivery reliability of products made in distant lands. You can take advantage by locating manufacturing facilities in far-flung countries with low-cost inputs
Customer Value gaps
In most situations disappointment and dissatisfaction result from an undesired value gap. They undermine satisfaction and repeat business. Gap 1: Knowledge Gap Gap 2: Translation or Specification Gaps Gap 3: Performance Gaps Gap 4: Communication Gaps Gap 5: Perception Gaps Gap 6: Satisfaction or Service Quality Gaps
Process Involvement
Key to improving productivity is to promote learning. By minimizing work rules, increasing training, you can empower workers to find better ways to do things.
Look at Powerpoint on Strategic Profit Models & Study it
Look at Powerpoint on Strategic Profit Models & Study it
Customer Segmentation
Not all customers are created equal. Customers need to be segmented--classifying them based on importance. ABC Classification is an easy way to do this: -A Customers- Strategic key accounts--most important. Do everything possible to make sure their experience is remarkable -B Customers- Other key accounts that receive high levels of service -C Customers- Remaining 80% of customers. High levels of standardized service.
Environmental Scanning
Occurs when you acquire and use information about events, trends, and relationships in your company's internal and external environments. GOAL: Consider both internal and external forces to identify your firm's strengths and weaknesses and know how well your company stacks up against rivals' capabilities and customer expectations. Can be proactive or passive scanning
Process Design
Part 1: How should you make things? A design decision that focuses on the technology and work design you use to make thing. May emphasize job enlargement, job enrichment, and employee involvement programs. EX: kitchen when time to cook something--you can bake, broil, boil, fry, or microwave
Facility Layout
Part II: How should you make things? A design decision that focuses on how you will use your plant and equipment to make things efficiently. EX: your kitchen--when you cook, where you place everything determines how easy and efficient it is to prepare your food.
Customer expectation parity
Quality is often defined as conformance to specs. A customer focus means that quality is nothing more or less than meeting customer expectations -Performance -Features -Reliability -Conformance -Durability -Serviceability -Aesthetics -Perceived quality
Performance
Refers to product's operating characteristics
Outsourcing
Sometimes another member of the supply chain can do a specific activity better than you. When this happens, you can move from make to buy, outsourcing that activity to a supply chain partner so that your firm can focus on what it does best.
Automation
Technology makes process redesign possible. Many manual tasks have been automated. You must constantly ask "Can technology help us do this job in a better way?"
Delivery capabilities
The ability to be fast consistently. By synchronizing operations, materials flow into and through production like water through a hose. Finished products move with equal fluidity to dealers around the world
value propositions
The promises you make to customers about how your firm will meet their needs. Serve 2 purposes: 1) They shape customer's business 2) They communicate what your company must do to earn a customer's business
Design for manufacturability (DFM)
To produce products at a competitive cost, you need to consider product and process design so that they can be easily and inexpensively made.
Difference between value and value propositions
Value propositions are promises you make to customers about how your firm will meet their needs. Values are just the importance, worth, or usefulness of something.
Product Design
What should you make? A design decision that emphasizes that you need to identify and develop products that meet customer's unmet needs.
