question

Process Design

answer

Designing process that keeps customer happiness while keeping costs low, must decide if customer gets to decide what steps they want or if company is going to regulate it

question

Value Stream Mapping

answer

Shows how long items take in production and how much money/time is wasted to make company better

question

Becton Dickson

answer

Needle manufacturing who redesigned manufacturing process to produce multiple products in high volume

question

Car Rentals

answer

Alamo, National car rental-making car return faster by having device that scans all necessary data, reduces human errors

question

Process Mapping Pay offs

answer

Motorola reduced manufacture time for pagers from 40 days to less than an hour Citi Bank reduced internal callbacks from 80% and credit 50% faster, Boise Timber eliminated 70% of steps to save cost

question

3 major types of goods and services

answer

Custom-One of a kind, small quantities Option Orientated-Configurations of standard pars, subassemblies, or services that customers can choose from in selected sets Standard-are made according to fixed design

question

4 Principle types of Processes

answer

Projects-large scale and customizable Job Shop Processes-organized around particular types that are flexible and capable of customer work for individual customer Low Shop Processes- organized around fixed sequence of activities and process steps Continuous Flow Processes-Create highly standardized goods/services around the clock in high volumes

question

Product Process Matrix

answer

Model that describes alignment of process choice with characteristics of manufactured goods goal to stay on diagonal path so all categories line up; Rolls Royce

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Service Positioning Matrix

answer

Pathway-Unique route through service system Customer Routed Service- Offer customers freedom to select best suited path for immediate needs/wants (shipping options) Provider Routed Service-only gives customers few options to choose from in predefined pathways (ATM)

question

Four Levels of Work

answer

Task- Specific unit of work required to create an output (EX. put circuit bard in Ipod) Activity- Group of tasks needed to create and deliver an intermediate or final output (all steps to produce Ipod) Process- consists of a group of activities Value Chain- is a network of processes (website for iPod)

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Process Map

answer

describes sequence of all process activities and tasks necessary to create and deliver desired output or outcome, documents how work should be accomplished

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Process Boundary

answer

Beginning or end of a process Advantages- makes it easier to obtain senior mgt support

question

Line of Visibility

answer

Flowcharts that include front/back house steps

question

Reengineering

answer

fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed

question

What is a process? Why are processes important to big businesses? What is their tie to the supply chain?

answer

Process- Any activity or group of activities that takes an input, add value to it, and provide an output to an internal or external customer They are important to get the job done and in more creative ways. They are tied to supply chain because everything has steps to get product/service to customer, allows company to scale up $

question

What are some of the primary considerations that should go into designing a good process?

answer

Managers- What do you want to manage? Accountability- Someone accounting for everything Stakeholders-What are they looking for? Develop Metrics- to motivate good behavior Capture, record, and store measurements- Is it possible, easy, how much data, what is the value of data Consequences of Metrics- What happens with successes and failures? What do the buyer and seller want

question

What are some of the key steps important in building a good process?

answer

Objectives, Block Diagram, Scope, Define the service, consider performance metrics, primary steps detailed, develop flow chart, and Test/Evaluate

question

What is the difference between a process map and a block diagram?

answer

Block Diagram- shows step by step process without determent and only with one shape, nothing in layout allows to anything to change, important because can show how many things can go wrong at previous steps that eventually hurts the production Process Map- has different shapes that mean different things, allows process to be customized depending on specific questions from client/order

question

What is Scope and Scope inflations?

answer

Scope-define process requirements and boundaries Scope inflation- trying to tackle entire process instead of focusing on one element only

question

Clothing Catalog example from class

answer

Ho to answer phone: Would you like to place an order, yes continue, no reroute... multiple steps that can repeat if customer wants to order another thing

question

Gantt Chart

answer

It is a type of bar chart, developed by Henry Gantt in the 1910s, that illustrates a project schedule.

question

CPM/PERT

answer

Critical Path Method, Project Evaluation and Review Technique Visually easier to see precedence relationships Ideal for large projects with many activities They consist of a network of branches and nodes.

question

NC painter business

answer

Needed processes for all elements to try and franchise stores but found difficult to document how to find customers and writing up jobs

question

Hewlett-Packard (HP) Example

answer

They began outsourcing manufacturing facilities, in order to make sure the products quality met requirements was by defining the metrics for measurements

question

Office Depot Example

answer

Chain has array of programs in place related to green buying and selling objectives from buying paper from certified well managed forests and buying greener office products for internal use to selling green products to contract and retail customers And some other shit

question

Hilton Example

answer

Changed the way they track performance metrics so they could have instant access Also more shit that i didnt feel like typing

question

What makes for a good performance measurement system? Why is performance measurement so complicated in a supply chain? What are some of the challenges?

answer

Clearly defines what the metrics are for Suppliers or people being graded understand how success is defined Complicated because of the size and scope that it entail, tough to identify performance measurements that will work for an entire supply chain Challenges: Gaining compliance among multiple entities, coming up with metrics that are not just designed to make the firm look good, metrics that measure the right things

question

How is understanding the customers and supply chain partner's needs important?

answer

One size does not fit all, you must consider: Variety of products required, quantity delivery frequency needed, service level required, desired product quality, and pricing of products.

question

What are some problems associated with traditional metrics like cost, profit, and revenues?

answer

Establishing specific production goals may drive managers and employees to do whatever it takes to reach their goals and avoid trouble, even if it means shoddy work or going below standards Also once goals are reached there is no further incentive, they may choose to save things for the next time frame so they don't have to work as hard

question

Problems associated with performance standards and performance variances.

answer

One less quality check on a vehicle inspection line to ensure that they get done on time and once the goals are reached there is not further incentive.

question

Seven specific supply chain performance measures

answer

-Total Supply Chain Management Costs -Supply Chain Cash-to-chase cycle time -Supply chain production flexibility -Supply chain delivery performance -Supply chain perfect order fulfillment performance -Supply chain E-business performance -Supply Chain environmental performance

question

SCOR model, 5 process categories, and the 3 levels of process detail

answer

Supply-Chain Operations Reference-model is a method for integrating supply chains and measure trading partner performance. Used as a supply chain management diagnostic, benchmarking and process improvement tool by manufacturing and service firms. 5 categories:Plan, Source, Make, Deliver, and Return 3 levels of process detail: Supply chain management diagnostic, benchmarking, and process improvement tool

question

7 sins: 1. Vanity

answer

Using a measure that will inevitably make the organization, its people, and especially its managers look good. EX. company measuring themselves on the promised date, which is when they promise to send the package which is a very low bar.

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7 sins: 2. Provincialism

answer

Letty organization boundaries or concerns dictate perform metrics which could lead to contradicting metrics across departments. EX. In insurance the sales department is measured by sales so they will try to sell to anyone who is willing, but Underwriting is measured in quality of risk, so they only want to except the very best

question

7 sins: 3. Narcissism

answer

This is the unpardonable offense of measuring from ones own point of view not the customers point of view.

question

7 sins: 4. Laziness

answer

This is a trap that even those who avoid narcissism often fall into, assuming one knows what is important to measure without giving adequate thought or effort

question

7 sins: 5. Pettiness

answer

Too often, companies measure only a small component of what matters

question

7 sins: 6. Inanity

answer

Many companies seem to implement metrics without giving any though to consequences of these metrics on human behavior and ultimately on enterprise performance

question

7 sins: 7. Frivolty

answer

This may be the most serious sin of all, it is the sin of not being serious about measurement in the first place. It is manifested by arguing about metrics instead of taking them to heart, by finding excuses for poor performance instead of tracking root causes.

question

4 steps to measurement redemption

answer

-Select the right things to measure -Measure #1 things in right way -Embed these metrics in a disciplined process for performance improvement -Create organizational culture and value system that encourages the disciplined use of metrics for ongoing performance improvement rather than regard them

question

How do you create/foster a measurement friendly culture?

answer

modeling, reward, implementation, commitment, and articulation

question

Nike's supply chain

answer

They have many suppliers and outsource most of their goods to low cost manufacturers. These countries have different culture that don't necessaryily fit or are approved by American Standards

question

Nike's requirements of their suppliers

answer

Observe basic labor, environmental, and health and safety standards

question

Frenkel and Scott's findings at Adida's suppliers

answer

They argued that brands develop two distinct types of compliance relationships with their suppliers: a hands on, cooperative relationship with some suppliers and at arm's length, ore distrustful, compliance relationship with others. these differences can shape the style and substance of compliance programs

question

Nike's generation 3 compliance strategey

answer

The company is seeking to supplement monitoring with collaborative initiatives aimed at diffusing workplace and human resource management best practices among its suppliers. It has also updated various audit tools and grading systems in order to make them more accurate and transparent to suppliers an to its own business units

question

Difference between a single metric and a system of metrics

answer

One vs. multiple data collections System of metrics cannot be captured with only one metric

question

Balanced Scorecard

answer

-Aligns organizations performance measures with its strategic plans/goals while allowing firm to rely less on mere financial measures, thus improving managerial decision making

question

4 perspectives of the balanced scorecard

answer

Financial Perspective- measures of revenue, profitability growth, product mix, cost reduction, and productivity. It is based on traditional financial measures. Internal Business Process Perspective- focusses on performance of most critical internal business process Customer Perspective- measurements focused on customer requirements, satisfaction, and profitability. Learning and Growth Perspective- concentrates on organizations people, system, external environment, and including retaining and training employees, enhancing information technology and systems employee safety and health, and environmental sustainability issues.

question

GPA bad for education

answer

Because of Scheduling, attitudes, lack of alignment, easily identifies strength/weaknesses, corrective actions Difference between a 3.6 and 4.0 does company want, robots, parrots and yes men, or fun, creative, and well rounded people

question

College Ratings

answer

Dumb

question

TQM Total Quality Management

answer

Is a philosophy that stresses 3 principles for achieving high levels of processes performance and quality: customer satisfaction, employee involvement, and continuous improvement in performance

question

Verizon Wireless Example

answer

dropped calls can occur because of the phone, not just because of the signal So they have people drive around to test network performance of their network and extensively test phones

question

Costs of Quality

answer

When a process fails to satisfy a customer, the failure is considered a defect There are prevention, appraisal, internal failure, and external failure costs

question

Prevention

answer

Costs associated with preventing defects before they happen

question

Appraisal

answer

Costs incurred when the firm assesses the performance level of its processes

question

Internal failure

answer

Costs resulting from defects that are discovered during the production of a service or product

question

External failure

answer

Arise when a defects that are discovered during the production of a service of product

question

Warranty

answer

A written guarantee that the producer will replace or repair defective parts or perform the service to the customers satisfaction

question

Employee Involvement

answer

A program in employee involvement includes changing organizational culture and encouraging teamwork

question

Continuous improvement and Plan-do-check-act cycle

answer

Continuous= Philosophy of continually seeking ways to improve processes based on a Japanese concept called kaizen Plan= A cycle, also called the Deming Wheel, used by firms actively engaged in continuos improvement to train their work teams in problem solving

question

Six Sigma- Motorola and GE

answer

A comprehensive and flexible system for achieving, sustaining, and maximizing business success by minimizing defects and variability in processes

question

Define, Measure, Analyze, Improve and Control (DMAIC)

answer

Define-determining the characteristics of a process's output that are critical to customer satisfaction and reducing any gaps between current state and desired state Measure-Self explanatory Analyze-Use the data on measures to perform process analysis; apply tools such as Pareto charts, scatter diagrams, or other tools Improve- Modify or redesign methods to achieve new goal Control- Monitor the process to make sure high performance levels are maintained

question

Quality at the Source

answer

Philosophy whereby defects are caught where they were created

question

ISO 9000

answer

A set of standards governing documentation of a quality program

question

ISO 14000

answer

Documentation standards that require participating companies to keep track of their raw materials use and their generation, treatment, and disposal of hazardous waste

question

Benefits of ISO certification

answer

Offers sales advantages and generates increased profits internally by reducing wastes which cut costs

question

Malcom Baldrige National Quality Award

answer

The award promotes, recognizes, and publicizes quality strategies and achievements. It is Based on leadership, strategic planning, customer and market focus, measurement, analysis, knowledge management, workforce focus, process management, and Results

question

Potential ingredients in a customer's quality definition

answer

Performance, reliability, durability, features, and aesthetics

question

How does the number of components in a product affect our ability to control the reliability?

answer

The larger the amount of components the greater the chance of defects. If a product has many components, there are many more opportunities for failure

question

TQM principles

answer

Customer satisfaction- Needs of today, desires for tomorrow, dimensions of quality Involvement: external/internal- communication, learning, teams, training, mentoring, rewards, and incentives Continuous improvement culture- across the supply chain, quality tools, improvement programs, knowledge management, benchmarking

question

External failure occurs when:

answer

Customers are exposed to poor quality

question

The cost of quality concept refers to:

answer

Internal failure, external failure, prevention, and appraisal costs

question

Control chart

answer

is a specific type of run chart used to ploy measurements or test outcomes against time and distinguish between variability caused by random fluctuation and variability that has an assigned cause

question

Three distinctive flows of the supply chain

answer

Information, goods, and financial

question

Customer Relationship Management (CRM)

answer

Identifying key customer segments, tailoring product and service agreements to meet their needs, measuring customer profitability and firms impact on customers, customer satisfaction levels SRM

question

Decision Support Systems (DSS)

answer

computer based information systems that allow users to analyze, manipulate, and present data in a manner that aids higher level decision making

question

Network design aplications

answer

Logistics information systems that address such long term strategic questions as facility location and sizing, as well as transportation network

question

SAP AG

answer

German Company The single largest player in the SCM software arena, with an install base of more than 60,000 sites and a market share of more than 50%

question

i2

answer

Dallas based software provider that got its start offering applications that allowed manufacturers to develop production schedules that optimized some variable of interest

question

SAS

answer

offers a set of applications that use sophisticated statistical tools and techniques to support higher-level planning and decision making

question

Mirroring

answer

Seeks to replace certain physical processes with virtual ones

question

What is supply chain compression?

answer

Being able to look at a process and seeing how it can be developed better to make faster for customer and save money for company

question

Enterprise Resource Planning (ERP)

answer

primary reason- integrate financial data, integrate inventory data, standardize human resource data, manufacturing and business process data, integrate customer order information Negatives= single computer that runs entier system, if computer crashes, whole system is at risk

question

Oracle Example

answer

Buys single vendor ERP because everything compatible, price bundle, one IT system for all problems

question

wal-mart example

answer

Told all suppliers they had to upgrade their systems otherwise they would discontinue using them

question

According to the textbook, why is it important to reward managers for using metrics?

answer

It helps create a measurement friendly culture

question

According to the NIKE case, what is currently the principle way that both global corporations and labor rights organizations address poor working conditions in global supply chain factories?

answer

Monitoring for compliance with codes of conduct

question

According to the PCH case, where did PCH locate its postponement processing facilities, to take advantage of their relatively low labor costs and the availability of favorable tax-free trade zones?

answer

Singapore and the southern Chinese city of Shenzhen

question

What are the three distinctive flows that PCH tries to help customers' supply chain with

answer

Information, goods and financial

question

According to the PCH case, PCH was a...

answer

Service provider

question

According to the PCH case, what was the source of the downside to the EMS business model?

answer

Reliance on economies of scale to reduce costs

question

According to the PCH case, for many technology companies, finding adequate component suppliers in Shenzen (southern China) could be cumbersome because:

answer

Procurement officers had to filter through numerous vendors to find ones that optimized cost, speed to market, and quality

question

According to the PCH case, what was one of the challenges facing the supply chain in the electronics industry in the 90's?

answer

The supply chain was new and needed further development

question

According to the PCH case, PCH International Limited was designed to:

answer

Address the needs of a complex global technology landscape for its client companies

question

Competitive Priorities

answer

Cost Quality Speed/time Flexibility

question

Operations management

answer

Design, operations and improvement of product systems that efficiently transform inputs into finished goods and services, maximizing productivity

question

EOQ

answer

The optimal order size Using eoq you will get the lowest total cost for the given cost structure and demand forecast

question

What does it mean if AHC>AOC? AOC<AHC? In each case are you above or below the EOQ?

answer

AHC>AOC = above the EOQ AHC<AOC= below the EOQ

question

Forward and Backward integration (types of vertical integration)

answer

Backward Integration - Taking over the role of your supplier. Example: We're not going to buy bread for our sandwiches, we'll make the bread ourselves from now on. Forward Integration - Taking over the role of companies closer to the customer. Example: We will no longer sell Coca-Cola through our distributors, from now on, we'll only sell Coke out of Coca-Cola stores.

question

Line Flow

answer

Low per unit Cost(long-term) Consistent Quality Fast Production Rates Minimal Customization Opportunities, Product Lines very consistent Make-to-Stock Start -up costs may be very high

question

Flexible Flow

answer

High per unit cost High performance and design Slow production rates Customization opportunities likely, difference between products may be great Make-to-order Start-up costs relatively low

question

Hybrid systems

answer

Assemble-to-order Start-up costs moderate Labor, machines, tools: mix Lead times dictated by both processing rates and delivery Changeovers - depends Inventory - depends

question

Cycle time

answer

Define: maximum time allowed for work on one uint at each station - time it takes for one unit to come off assembly line What does it dictate? What is effective cycle time? How fast could we go? You are only as strong as your weakest link

question

Bottleneck

answer

One station taking more time required than the rest of the stations and creating a back up in unfinished goods

question

Cargo classifications

answer

Bulk Cargo, which is free flowing cargo stored loose and is usually loaded by shovel. EX: coal, rice Break-bulk Cargo which is general or packaged cargo often containerized. Neo-bulk Cargo, which is cargo with characteristics of both bulk and break-bulk cargo. EX: cars, logs

question

Cargo ship classifications

answer

Bulk Carriers- oil tankers, ore carriers Container ships- break-bulk cargo, container vessals, barges Neo-bulk Ships- roll on roll off carriers, log carriers

question

Planogram

answer

Planogram: a drawing that illustrates product placement. Used by retail stores chains to make all stores identical and to maximize the utilization of shelf space. A Planogram affects the entire supply chain because companies have to package their product in a way that they will be able to get it on the shelves of stores.

question

Basic terminology that goes with Containerization.

answer

TL- full truckload CL- full container load LTL- Less than a truck lad LCL- Less than a container load

question

Pro's and Con's associated with four modes of transport?

answer

Road: Pros- accessibility, flexibility, versatility, reliability, 2nd fastest mode of transport, much cheaper than air, vital to intermodalism Cons- long trips, excessive regulations when you cross state borders, vulnerable to gas prices tolls taxes, driver and truck insurance, sometimes have to make many stops Railcar: Pros- ability to carry heavier loads than trucks, fewer in transit regulations, better for long distance, not susceptible to energy/fuel costs, more affordable than road transport, capable in poor weather conditions Cons- susceptible to lass/damage due to vibrations, poor on time reliability, average trip speed is less than 30 mph, access to infrastructure required Ocean/Waterway: Pros- low costs compared to air transport, high cube cargo, high weight cargo, can transport any form of cargo, large shipments, easier to lad and move bulk shipments, accessible to odd shaped shipments Cons- much slower than air, must have port capabilities, channel depth challenges Air: Pros- speed fastest growing transport mode, becoming more affordable, overnight capabilities, can be used for items with short shelf life Cons- extremely expensive, incompatible containers for intermodal transportation

question

Cross Docking

answer

- fast mixing centers, more inventory quickly, zero invertory in distribution center

question

3PL

answer

3rd Party Logistics Company • an organization that executes a particular logistics function using its own resources

question

Freight Forwarders

answer

US side of exports, get the product out of the country, find most cost effective itinerary

question

Customs House Brokers

answer

lawyer in other country to help clear foreign customs, arrange local itinerary

question

Goals and trade-offs for a queuing system

answer

Goals: Find the proper balance between long lines/unhappy customers and idle staff/high cost. Companies that have shorter lines are perceived to have better service, but shorter lines typically means employees with less work.

question

What do managers have control over in a queuing system?

answer

1. Number of lines- single line/multiple lines 2. Priority Discipline- first come first serve, shortest processing time, reservations, emergencies 3. Psychological Variables- uncooperative customers, alternative systems such as take a number, give away free stuff

question

Balking

answer

When people fail to enter the line because of hte number of people already present

question

Reneging

answer

When people enter the line but then leave because of the wait time

question

Jockeying

answer

occurs in a multiple server model where people battle between the different lines, Line jumping

question

VMI Vendor Managed Inventory

answer

Inventory planning and replenishment system where supplier(vendor) accepts negotiated responsibilities that typically include monitoring and restocking. Value to retailer: fewer responsibilities, decrease cost Value to vendor: better understanding of demand rates, fewer retailer errors, responsive A better understanding of partner & their needs End customer should be the focus

question

Retail Layout

answer

Customer Flow - How do customers typically navigate their way through a retail store? Why? Consider enter/exit points Product Location - Profit Motivated? Customer Convenience? Planograms - Perimeter vs. Center, Aisles Target: put most profitable (typically clothing) items in the center b/c don't shop same as you do @ grocery store - you will "cut across the middle" to get to the items you want & at some point will see the clothing Ikea: pretty much tell you you have to see every item in the store to get to the end, walk out with things you "didn't know" you wanted Amazon: Tell you what people also bought when you check out the item, have to work a little hard b/c constantly need to be changing what is on the front webpage, easy to use/navigate?, need to generate new content (often generated by customers with reviews!)

question

Push System

answer

Ex: Sony Buy Goods, push through supply chain Send to a store for you to buy Make things without you asking for them Purchase→ Production→ Distribution→ Retail Sales Customer never asks for the product - they just make it

question

Pull system

answer

Ex: Dell When someone asks for a computer, then they buy the parts & put them together

question

Just in Time (JIT)

answer

Quality at the source- assure quality is built in at every stage of the process instead of waiting for final inspection High performance quality: must outperform push-competitor offerings in order to remain competitive Consistent quality: perfection in every facet in order to reduce errors, which create huge problems and delays Preventative maintenance: reduces downtime. JIT cannot tolerate unplanned downtime. May be scheduled during down times. Continuous improvement: required to maintain competitive edge

question

PostPonement

answer

: when you delay the final assembly of the end item Relationship to push and pull systems: - PUSH through the standardized portions of manufacturing - PULL only the customization options offered to customers - Inventories: WIP (Push Elements) + Components (Pull Elements)

question

Bullwhip effect

answer

Define: very high and very low supply levels despite fairly constant demand levels. CAUSES: - Poor forecasting, poor analysis, poor communication - Order batching- trying to place large orders - Price fluctuations-promotions, quantity discounts, special pricing/payment options... can cause batching - Rationing-demand higher than supply. Promotes rationing on part of "distributor". "Retailers" may get less tan ordered. - Shortage gaming- retailers inflate order sizes to counteract rationing.

question

Outsourcing

answer

using different companies to produce items Business process outsourcing: outsourcing of business functions to independent suppliers (Payroll, IT, Customer Service)

question

Offshoring

answer

Relocation of business process or entire manufacturing facility to foreign country

question

Contract Manufacturing

answer

focal firm contracts with independent supplier to manufacture products to specific specifications

question

Electronic Manufacturing Services (EMS)

answer

- companies that take on numerous primary supply chains associated with making electronic components assembled end-items Can hire company that already has knowledge to make product without having to build out and incur costs

question

Mattel

answer

Lead paint occurred when product wasn't tested before it was used to paint, used reliable factory they had used before, but just didn't safety test. Primary Parties: Mattel, Lee Der (manufacture)

question

Zara

answer

Design, product and deliver new garment and put it on display in 15 days Close communication loop, stick to a rhythm across entire chain, leverage your capital assets to increase supply chain flexibility

question

Customs- Trade Partnership against terrorism (C-TAP)

answer

Companies work with Customs at ports to have their items be approved to come into the country

question

Starbucks: CAFE practices

answer

Coffee and Farmer Equity Practices- ensure sustainable supply of high quality coffee beans, benefit because built relationships with coffee farms and communities, stopped low quality coffee from being produced and sold because suppressed price of good beans

question

Social Responsibility

answer

According to SCM 300 a social responsibility program might include: Legal, ethical, and environmentally friendly/sustainable

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