Supply Chain Exam 3
According to the article on measuring performance, the "Deadliest Sin" with respect to performance measurement is:
"Provincialism" or organizational "silos"
safety stock
(Buffer stock) Protects against uncertainty in demand, lead time, supply.
what is a process
-"Any activity or group activities that takes an Input, adds value to it, and provides an output, to an internal or external customer. Processes use an organizations Resources to provide definitive results." -A step-by-step breakdown that aids in providing high quality results on a consistent basis utilizing minimal resources.
Capacity Utilization
-A ratio of the amount of product produced by a manufacturing process versus the maximum capacity of that facility. -actual output/design capacity
Common consulting errors
-Assuming things. -Utilizing poor surveys. Poorly managed scope inflation. -Sticking to a dead end scope. -Developing solutions too soon
Requirements and goals of SCM IT systems
-Communicate, Collect and share data. -Aid in planning and analyzis. -Aid in excecution (purchasing, shcedueling, processing). -Support other Functions/parties -Facilitate supply chain compression (create efficiencies)
Primary stages and steps in designing a business process
-Goals, Values, Stakeholders: Establish market and need. -Block diagram: Describe system in which process will lie. -Establish the Scope: Define parameters of process -Define the service: Establish exactly what process needs to accomplish -Measurement& Management Considerations: What will need to be managed in the process? How will inputs and outputs be measured? -Primary steps Detailed: Begin to build the process steps. -Develop a process map: Create a visual representation of the process. -Evaluating, Testing: Evaluate process before rolling out. OR!!!: 1. Objectives: Goals Values, Stakeholders 2. Block Diagram 3. Scope
Important aspects of "intentions and parameters"
-Goals: What needs to be accomplished? Why? How? -Priorities? -Stakeholders: Who's involved? Customer, workers, managers. -Define Value: What are the values of the stakeholder? -System parameters: Considers co-dependent processes. Big Picture. -Define Success: Outcomes in Detail, Measurements, Cost, Capacity. -Efficient and Effective: Maximum output, minimum input, waste.
Three requirements of a good process
-Good Intentions: Goal Oriented, Stakeholders considered, Effective and Efficient, Outputs are desired. -Reproducible Results: Documented and Easily Understood, Adaptability. -Measurable and Manageable: Entire system considered. Accountability, good metrics, easy to identify problems.
3 Parts of Social Responsibility
-Legal/Ethical -Sustainability -Commitment to the Community
Primary steps to consider when selling consulting recommendations
-List Values, Objectives, and Goals: What does the client want? -Basic solutions and Anticipated Benefits: List all Stakeholders, do they all benefit? -Cost-Benefit Analysis: Profits? Savings? Worth the pain of change? -Value to Work Ratio: More Value, Less work? -Does it fit the system: How difficult will the transition be? -Metrics: What is the situation now? Present, Desired State. Define success/progress. How will metrics signal positive or negative? -Implementation: Hold their hand. Step by Step. Technical explanations. Expected hardships defined. Plan to counter hardship.
Relationship between business processes and the supply chain
-Made up of a series of interconnected and interdependent processes -Productivity - Managing Inputs and Outputs at a smaller scale.
How can supply chains be more sustainable
-Procurement -Logistics -manufacturing/operations -Rethink Design
In-class example: Catalog Order Process
-Talks about the Block Diagram and how the different parts all work together. -Scope: Operator answers to operator thankyou/good bye. -Goes through the primary stages of the business process.
common reasons for bad processes
-ambiguity with goals -misalignment with goals and actions -miscommunication
in-class example of ticket brokerage
-buys and sellers -buyers want: tickets at good, reasonable price. easy to find and buy -sellers want: good market of buyers, buyer friendly site, reasonable transaction fee
Attributes of a good consultant
-data collection -creativity -long-term vision -understanding group dynamics -understanding business imperatives
DMAIC
-design -measure -analyze -improve -control
3 key measurement system attributes
-effective -efficient -adaptable
prevention cost
-fix present problems -prevent future problems
Consequences of poor metrics
-goals not met -poor output -waste -bad employee behavior
Reasons organizations use PMs
-help establish and support standards -motivate good behavior -identify trends -manage from afar -managing large number of resources -performance data can facilitate decision making and planning
4 key benchmarking steps
-identify area to benchmark -identify leaders -contact leaders, gather data -analyze, act, follow up
Four costs of quality
-internal failure -external failure -appraisal -prevention
ERP risks
-lack of user buy-in -no clear vision -customization
common measurement pitfalls
-managers fail to use the data -blind belief in institutional metrics -Incomplete measurements -Utilizing too many metrics
why a process that was good has turned bad
-market evolution: customers needs have changed -miscommunication
information
-meaning derived from ordering the available data. -understanding data relationships ex: number of people in age groups, in an area code
Requirements of a good metric
-measure -easily understood -attainable -provides value and guidance
options for purchasing SCM IT systems
-single vendor approach: buys everything from one company -best of breed approach: buy the best parts from the best producers
Define and understand ERP
-software enterprise resource planning -Paper is given to ERP and then everyone else can go into the ERP and take out what they need. Like a big giant bucket available to everyone. It stores our financial, Operations and HR data in Central Database.
SMART metrics
-specific -measurable -attainable -relevant -timely
keys to designing a system of metrics
-stakeholders and goals -good metrics -simplicity -completeness -redundancy
knowledge
-understanding the patterns -knowing the trends, stats, demographics -ability to make decisions based on info derived from data
scoping the project
-which aspects of the issue will be addressed? -establish goals -develop focused projects
The individual reliabilities of those three parts are: Part A: 0.95 Part B: 0.89 Part C: 0.75. Part C has ONE back-up, which means that the product comes with a total of two Part C's. What is the total reliability of the overall product if you include Part A, Part B, and both part Cs?
.793
1st and 2nd tier suppliers
1st is the direct supplier, second is the 1st direct supplier and so on.
The Bigelow Bicycle Company presently has a daily demand of 300 bicycles. Each bicycle is worth $500. Presently they have 2100 units of inventory. Their outstanding accounts receivable total $450,000. Their outstanding accounts payable total is $600,000. Using only this information, what is the cash to cash cycle?
6.0
In order to build a chair, it takes $50 in materials and 75 minutes of labor. It takes 8 hours to complete the chair, though, because glue must dry, paint must dry, and sometimes workers aren't immediately available to work on the chair. The chairs are ultimately sold for $100 each. What is the process velocity?
6.4
general description of nikes supply chain
70% suppliers produce shoes. Controls 36% of athletic shoe market. More than 800 suppliers. Many scandals of poor working conditions and human rights problems.
Deming Prize
A Japanese Quality award given to companies or individuals that have contributed to the field of quality.
Metric
A Single performance measurement used to evaluate, motivate, improve etc
System of Metrics
A collection of measurements used to evaluate a process, person, company, etc from multiple perspectives.
Established supplier base
A company's supplier base is the collection of companies from which an organization presently purchases products and/or services. So, an established supplier base implies that an organization has a group of companies with which they have developed a working relationship.
Freight forwarder
A contractor (company or person) that helps companies organize the efficient and effective shipment of goods from one point in the supply chain to another. Freight forwarders do not actually transport the goods, instead they negotiate and arrange for one or more logistics companies to prepare, secure, store, track, and move the cargo.
3PL
A contractor that performs one or more logistics function for their client to get more effective supply chain. The third party contractor is neither the seller or buyer
Service Blueprint
A detailed flowchart of the process used to deliver a service. It identifies the actions of different parties, those steps that are visible and not-visible to the customer, key steps and outcomes, and related and supporting processes
System of metrics
A group of metrics that collectively attempt to provide a multi-dimensional view of a resource or outcome
Process Velocity
A measure of how long a unit sits in a process versus the amount of work time that is expended on the unit.
cash-to-cash cycle
A measure of the number days between the time a company pays their supplier for inventory and the time that same company is paid for the same inventory by their customer.
shard metrics
A metric that is impacted by two related parties. In supply chain, where buyer-supplier cooperation is vital to supply chain excellence, having metrics that motivate companies to work toward outcomes that favor both sides of a supply chain relationship is vital, but can be hard.
balanced scorecard
A performance management tool that focuses on the strategic activity and strategic outcomes. Most companies utilize scorecards that tracks four areas: Financial Results. Customer-related results. Internal Business process results. Learning and Growth Results.
C-TPAT
A program at US Border controls for companies importing goods into the US. Members have to supply a detailed report of where the goods came from and from who. CUSTOMS TRADE PARTNERSHIP AGAINST TERRORISM
six sigma
A quality program that strives for the complete elimination of defects. There are different levels of certification that include: Green belt, black belt, Master Black Belt, and Six Sigma Champion.
Performance metric (PM)
A single performance measurement used to evaluate, motivate, and improve performance.
What are significant points in Nike's "generation 3" compliance strategy?
Acknowledges that policing suppliers is not enough. Supplement monitoring with collaborative initiatives aimed at diffusing workplace and human resource management best practices among its suppliers. Updated various audit tools and grading systems to make them more accurate and transparent to suppliers and to business units. Extensive review of the company's upstream business processes (product development, design and commercialization) to ID potential drivers of excessive overtime among suppliers. Working on promoting greater integration of its labor compliance initiatives with core business processes
Which of the following statements correctly depicts the term "business process"?
An activity or group of activities that takes an input, adds value to it, and provides an output to an internal or external customer
VMI
An arrangement where retailers allow vendors to monitor in-store inventories, initiate orders/shipments to the store when inventories are low, and also bring the items into the store and onto the shelf.
The Malcolm Baldrige National Quality Award (MBNQA)
Awarded to companies based in the US that are deemed to demonstrate the very best in the area of performance excellence.
According to the textbook, which of the following systems is focused on learning more about the needs, wants, and behaviors of customers in an effort to build relationships with customer and improve customer loyalty?
CRM
Rail Transportation
Can handle heavier loads than road, better for long distance than road, cheaper than road. (Strengths) Slow, not very accessible, Loss due to vibrations during transport (weakness)
Bulk:
Cargo that is loose and free, like rice.
Break Bulk:
Cargo that is packaged and/or secured on a pallet. Can then be placed inside a truck.
What should be considered in choosing a supplier?
Consumer needs, Cost, Quality, Speed, Flexibility, Technological capability, Location, Information Technology system, Ability to innovate, Capacity potential, 2nd and 3rd tier suppliers, reliability, service.
What is Cycle Time? What does it dictate? How does it relate to capacity?
Cycle time is the whole workday (8 hours) divided by whatever demand there is. It dictates the lowest time allowed for someone to work on a project. If someone goes over it, reduces capacity overall.
Machine A: 0.96, Machine B: 0.97, Machine C: 0.86, Machine D: 0.8. What is the defect rate of the system in its present state?
Defect rate = .357 1- (.96)(.97)(.86)(.8) =.359
A certain assembly line utilizes 4 separate stations each with its own machine. The four machines have the following listed reliabilities: Machine A: 0.96, Machine B: 0.97, Machine C: 0.86, Machine D: 0.8. What is the defect rate of the system in its present state?
Defect rate = 0.357 (1- Product reliability)
Deming
Demings fourteen points, He developed a list of quality recommendations that are reffered to as Demings Fourteen points
Cross-Docking
Distribution of goods from an upstream supplier to a downstream customer through a distribution center with minimal handling and storage times typically less than 24 hours.
Recommendations on developing solutions
Does this require change? Options to consider. Is the problem that directions were not followed? Is the process poorly designed?
Which of the following attempts to integrate all departments and functions across a company onto a single system that can meet each department's particular needs?
ERP
consulting examples provided in class
Example of Real Estate and Doctor. We are like a doctor to a company, we are there to help. Isolate the problem and create solution.
Road Transportation
Fast, cheaper than air, high flexibility (Strengths) Weather, traffic, crime (weakness) If shipment needs to happen quickly, at a reasonable cost, and directly into the hands of the customer you use ROAD.
Air Transportation
Fastest mode of transport, minimal expose to cargo. Can work well with road transportation. (Strength) Extremely expensive, not easily linked with rail / ocean, requires special containers. (weakness) Use when items have a high "value/weight" ratio. Valued when short lead times and low inventory levels are valued.
What's the difference between flat curves and tall curves?
Flat is a lot of varience, tall is very little variance
Distribution Centers (DC)
Focus on getting items to retail or wholesale outlets. DCs try to quickly get large shipments of a single good of a single truck and then get those goods ready for distribution to dozens of downstream stores.
Importance of getting feedback
Goals and priorities can change. Are you preparing for resistance at final presentation?
According to lecture, which of the following statements related to process improvement is true?
Good solutions need to address the Value to Work ratio, and whether or not the recommendation fits a corporate system
How IT impacts big picture supply chain and also business processes
Helps keep track of process, makes sure each step is done right way, also helps communicate information to people and receive information.
Benefits of High and Low Inventory Levels/Purchases.
High Inventory: Helps address immediate Demand, Quantity discounts available. Fewer orders needed to be placed. Low Inventory: Less storage space required. Lower chance of damage/loss. Less money invested in inventory, so more money for other things.
What are the primary differences between low sigma curves and high sigma curves?
High sigma curves, most of your product is identical, lower curves there are more variance
What does it mean if AHC > AOC? AHC <AOC? Should you increase or decrease Q in each case?
IF AHC > AOC Decrease Q to reach EOQ. IF AHC < AOC Increase Q to reach EOQ
EOQ's relationship to Holding Costs and Ordering costs?
IF EOQ is HIGH then Holding cost will Increase. IF EOQ is HIGH then Ordering cost will decrease.
According to lecture, flow charts can be used to help identify all of the following except:
Identify the number of customer complaints received during a specific period of time
Last Mile
In supply chain the last mile typically refers to the portion of the supply chain between the final inventory holding facility and the end consumer
Queuing systems - Goals and Trade-offs
Infinite population of customers: The number of possible customers that may come into the store is very high. When one enters, the chances of another one entering doesn't change. Finite population of customers: The number of customers is limited, when one enters. The odds of a second person entering declines.
ERP benefits
Integrate Financial data, and inventory data. Everyone get can all the data
Which of the following statements in coupled with the correct Cost of Quality?
Internal Failure Costs- Cost of materials used in reworking the damaged item
ISO 9000
International quality certification that helps organizations to understand the basics of quality management, to measure their present state of quality.
Pipeline inventory
Inventory in Transit
The information flow profile:
Is a toll used to graph relative performance of an information flow along a set of performance dimensions
Which of the following statements is not an advantage of business process mapping?
It enables customization of business offerings
Free Trade Zone?
Items coming in are not under control of customs authorities. Goods can be imported into the country, stored, and be exported without any inspection.
The Cow Path Theory illustrates which of the following?
Just because a process is effective in providing expected results, it does not mean the process is efficient
Which of the following is NOT a challenge in sourcing technology from Asia?
Lack of suppliers
Neo Bulk:
Large items that do not fit either category. Like a car or a cow.
What is an ERP system?
Large, integrated, computer-based business transaction processing and reporting system
Flexible flow:
Like a U-shape assembly line. Works well to produce end items that have low demand but high customization.
Line flow
Like an assembly line, pausing it wont do much, but it must be run to completion once its started.
According to the textbook, which of the following is used to show the separation between the back office and the front office tasks or activities?
Line of customer visibility
Ocean/Water Transportation
Low cost per mile for large heavy shipments. Can transport almost anything (Strengths) Very slow, Reliability of shipment can be low, lengthy shipment more exposure to thieves and hazardous weather. (weakness) Excellent for large and bulky international shipments that require low transportation cost, and do not require quick shipment.
Quality Tools
Managers have a series of quality tools that they can utilize to test the health of a system, monitor its consistency, or to find root causes of apparent quality problems.
Costs of Quality
Managing cost of quality requires commitment to monitoring quality, identifying problems and devoting resources to fix the problem
According to lecture, each individual metric must be:
Measurable, attainable, and easily understood
What were some of the challenges of capturing data (audit limitations
Need to spend a lot of time in the factories (but limitations to time, resources, and knowledge. So use factory records),
Requirements to roll-out an RFID program? Infrastructure, investment, etc.
Needs to put a tag on every item, and set up all these scanners, and then have all that info work with the system you have now
According to lecture: Is 99% reliability good? Can anything be 100% reliable?
Nothing is 100% reliable. 99% isn't always good, cause if there are more components it falls fast..
Which of the following is a bar-chart that would be used to track and categorize customer complaints (Examples: Damaged during shipment, wrong item shipped, item shipped to wrong address) so companies could see which types of complaints were most common?
Pareto Chart
Value of Process improvement and Project Management on Careers - In-class examples
People who are hiring you will look at what kind of jobs you have done that uses project management. To get experience and see how you did. Stories on your resume, what did you do at your job and how did you do it?
Dimensions of quality (product)
Performance Reliability Durability Features Aesthetics
bullwhip
Phenomenon where Fairly Stable demand results in a profiliterian in the amount of inventory that is carried as one travles upstream in the supply chain.
What are the key differences between the two plants?
Plant A: central Mexico near Mexico City, family owned, higher salaries, encourage team productivity through bonuses, more satisfied because in teams and responsibility and variability of work, participate in decisions and suggestions, allows employees to apply for overtime and it's voluntary. Plant B: western Mexican state far from Mexico City, part of Taiwanese plants, bonuses individual productivity, fixed individual stations so no motivation for new skills, no participation or input in decisions because top to bottom, forced over time because they are chosen to stay longer, work more than 60 hours per week
internal failure cost
Problems found and fixed within the supply chain - Quality costs that were identified within the supply chain before reaching the customer
external failure cost
Problems that reach the customer. These are costs related to "repairing" damage caused from delivering substandard items or services.
Juran
Quality Trilogy. Quality planning, Quality improvement and Quality control
Crosby
Quality is Free. He argued that a lack of quality may have lower cost but eliminates value. The more invested in quality, the greater value of product
What is RFID?
Radio Frequency Identification. Same as a barcode, but each one is unique.
shortage gaming
Rationing can often lead to shortage gaming. In rationing, customers only receive a fraction of their placed order. This leaves the customer short of their desired inventory level. If customers feel that this rationing may occur again, customers may try to "game" the system by placing an order larger than their expected demand.
Established channels of distribution
Represent the chain of organizations that help bring a product into the hands of the end user. This might include packaging companies, delivery companies, warehouses, distribution centers, perhaps even suppliers
Nike has a code of conduct for their suppliers. What are the requirements of their suppliers?
Required them to observe some basic labor, environmental and health and safety standards. Must go through basic environmental audit, safety and health audit, and periodic inspections by Fair Labor Association
Procurement
Responsible for acquiring materials, equipment, products, and services.
Logistics
Responsible for developing the transportation initerary and finding appropriate transportation and storage partners to successfully navigate the flow of materials.
Scope and scope inflation
Scope inflation is related to external issues, like stock rooms, delivery trucks, IT etc. You now better understand what the circumstances are of the problem. Start with the small problems and work your way up to the bigger problems.
What was found by Frenkel and Scott at Adidas' suppliers?
Similar to Nike. Brands develop two distinct types of compliance relationships with their suppliers: a hands-on, cooperative relationship with some suppliers and an arm's-length, more distrustful, "compliance" relationships with others. Shape style and substance of compliance programs within factories
Internal Benchmarking
Some organizations are so big that they can benchmark one department versus another.
Rationing
Sometimes, despite their best efforts, suppliers do not have enough inventory to satisfy the demand of all of their customers. If this is the case, suppliers may ration their inventory and send each of their customers only a fraction of the inventory that was ordered.
Which of the following is NOT part of the balanced score card framework?
Supply Chain
What does SCOR stand for?
Supply Chain Operations Reference
SCOR model
Supply Chain Operations Refrence Model A measurement tool that enables supply chain partners to track performance, communicate progress, and develop opportunities for improvement. According to SCOR, the 5 primary supply chain processes are - Plan: Demand and supply chain planning -Source: Purchasing process -Make: Manufacturing Process -Deliver: Logistics and Transportation -Return: Reverse Logistics.
According to the textbook, which of the following is a measure of the average percentage of orders that are filled on or before the requested delivery date?
Supply chain delivery performance
Swimlane flowcharts (functional)
Takes a basic flowchart and breaks it up into groups related to each step. So each person will see what they are responsible for.
SCM
The Efficient Integration of suppliers, transporters, manufacturers, warehouses, retailers and all other parties associated with the delivery of the final product.
Quality
The ability of a product or service to meet a customers expectations
Vertical integration
The act of a company taking on additional supply chain responsibilities that were formerly done by outside parties. Forward Integration: Taking over responsibilities downstream. Backward: Taking over responsibilities Upstream.
Operations Management
The branch of the supply chain responsible for making business processes effective and efficient.
cow path theory with example
The cow path shows a path that is made and is continued to be used, when it gets so busy there is no time for improvements even when the necessary improvements are known/obvious. When that cow dies and a new cow gets hired they have them just do the path of the previous cow even if it makes no sense to them, they still do it to fit in and make sure they're doing what is asked of them. Ex: cow going to drink water ex of computer silicon wafers: Student helps with container, switches it out to be more productive
Downstream
The direction from Suppliers to customers
Upstream
The direction from customers to suppliers
Reverse Logistics
The management of products and packing that flow backwards in the supply chain.
Importance of business processes
The more processes utilized by a company the more important it is to have managers that understand the importance of properly designing, effectively managing, and improving processes.
Perfect Order fulfillment
The percentage of orders that are full, arrive on time, and are damage free.
What is a bottleneck and how does it relate to capacity?
The slowest workstation. The weakest link. It slows everything down.
What was one of the challenges facing the supply chain in the electronics industry in the 90's?
The supply chain was new and needed further development
According to the lecture, which of the following is a technical term for the symbol that represents the beginning of a process
The terminator node (oval)
Importance of Goals and Stakeholders
They key to developing metrics that meet stakeholders goals is first recognizing all the stakeholders and then understanding their individual goals.
Forward Buying
This is the result of suppliers offering sales. Buyers are motivated to buy in large quantities to take advantage of low prices. Buyers are not buying based on demand, but rather on price.
Dimensions of quality (service)
Timely Complete Accurate Responsive Courtesy Consistent
TEU
Twenty-foot equivalent Unit 1 TEU is 1 20 foot container
Warehouses
Typically used to store inventory for long periods of time. Storage is the primary function. Items need to be kept safe and preserved for future use.
Hybrid
Uses some of both methods. Layout might be linear fashion, but each workstation allow for some customization.
value
What do i get? What is the price?
Functional Benchmarking
When a company benchmarks an organization that is successful in an area where their processes reflect similar input, outputs or values.
outsourcing
When a company contracts an outside firm to perform services, operations, or business processes that were previously performed in-house
offshoring
When a company moves manufacturing out of its "home" country to another country.
Reneging
When a customer joins the line, gets frustrated and leaves the line.
Balking
When a potential customer sees the line, but never joins the line because they think it looks too long and/or too slow
Order batching
When companies place large and infrequent orders from their suppliers. Typically this is done to take advantage of quantity discounts and economies of scale in purchasing and delivery.
Near sourcing
When you outsource near to your market
appraisal cost
Where are the problems? Costs associated with monitoring quality in stable systems.
Centered curves and un-centered curves?
You want your curve to be centered, the further to one side it is, the more defects there are
Planogram
a model / picture that shows where each item has its spot on the shelf.
Which symbol: the act of customer's orders being shipped to their home.
arrow
The act of the customer's orders being shipped to their home
arrow = movement/transportation
According to lecture, which of the following is helpful in the early stages of process design and process improvement? It establishes how a series of steps and processes are all interconnected.
block design
Which of the following is helpful in the early stages of process design and process improvement? It establishes how a series of steps and processes are all interconnected.
block diagram
drawing an accurate flow chart
can be hard and may require multiple pages
Omni-channel retailing
chatrooms, social media sites or mobile apps, and of course also in stores. Ex. Nordstorm
when to use each flow chart symbol
check notes
data
collection of raw materials with no meaning by itself. - names, dates, addresses
executive dashboards
computer-generated visual representation of a company performance
Reefer
container with AC
customs house broker
contractor that helps a client's goods clear customs in a foreign country
competitive priorities
cost, speed, quality, flexibility
Supply chain compression...
creates efficiencies
Ask the customer if the order will be picked-up OR if the order will require delivery?
decision = diamond
Which of the following is a valid step in designing a process?
define the service
Which symbol: ask the customer if the order will be picked-up OR if the order will require delivery.
diamond
value of flowcharts for the org
easier to predict outcomes of business processes
According to the book, which of the following is not one of the five dimensions that are regularly included in the information flow profile analysis?
effectiveness
Gap analysis
how big is the gap from where you want to be and where you are now? consider potential causes
According to lecture, implementation of a supply chain system will typically result in supply chain compression. Which definition below best describes supply chain compression?
identification and elimination of non-value added steps in supply chain process
Competitive Benchmarking
is used when companies want to measure their processes, programs and outcomes versus those of their competitors.
KPI
key performance indicators
LTL
less than a truck loard
What is the EOQ?
lot size that will minimize total annual inventory cost
reliability
measure of the percentage of a time a system or product operates successfully. In order for a system to operate successfully, all parts of the system must be reliable.
calculating basic reliability for a product
multiply the reliabilities by the components RS = r1*r2*
With all of these issues, what are the benefits associated with modern SCM IT systems?
o Aids in strategic decision making o Promotes compression of supply chain o Promotes competitiveness -Ticket to play the game: while its hard to use and implement, it makes your work a lot faster but you have to work
What are the potential benefits and obstacles of RFID?
o Benefit is that we can constantly be updated with the items and know exactly what happened to each and every one. o Obstacle is that it is very expensive and hard.
Briefly describe the basics of some of the ERP support systems
o CRM - Customer Relationship management o SRM - Supplier Relationship management o Decision support systems o Supply chain suites.
Requirements and goals of Business IT systems
o Collect data from everyone o Make data accessible to everyone o Turn you data into information
Important considerations before purchasing a new IT system?
o The purchase: What to buy? What to lease? From who? Knowing your company and your supply chain. Knowing your needs. Legacy system is when you take the old harddrive info into the new system o The Implementation: Technical considerations (old system vs new). Consider the people (customers, employees). Consider the business process. Testing the system. Dealing with all the consultants o The future: Upgrades. Constant changes in upgrades in technology. Evolving supply chain, merging, Acquisitions, partnerships.
The phone call enters the system/process?
oval = depicts start/end or entrance/exit process
benchmarking
process whereby companies compare their practices and performance measurements to those of other companies.
productivity
ratio of outputs to inputs
Which symbol: The process would likely be in the middle of another process map.
rectangle with lines on both ends
Block diagram
simply trying to show you where your business process is
managerial paralysis
situation where managers are overflowed with data
Dunnage
small pieces of wood or such to keep cargo in position when its placed in the truck.
postponement system
system that combines push and pull
TQM
total quality management -customer focus -involvement -continuous improvement
TL
truck load
According to lecture, which of the following is NOT one of the three primary goals of supply chain IT systems?
turn your info into knowledge
Intermodal
when cargo is moved from one vechicle to another without handling directly the cargo.
