Supply Chain Management – Final Exam

Development Time
New product development’s span from the concept to high-volume manufacturing.
The ability to build the new product or concept at volume – Consistent production, tolerance to mfg. variations.
The ability to quality check functions, diagnose problems – Non-value added activity, so should be easy and inexpensive.
The ability to take apart and repair the product – Ease or repair, critical for products expected to be repaired.
Product Volume and Cost
This stage in NPD determines process strategies, such as equipment, automation, and staffing, as well as level of customization and after-sales support.
Hidden Costs
Costs concerning the # of Parts in a Product (handling, tracking), Engineering changes, and Transportation Costs (Logistics).
Design Players
-Quality/Reliability Assurance
Design for Manufacturability
DFM – Design Approach
Design for Maintainability
DFMt – Design Approach that focuses on lone-term serviceability of the product.
Design for Six Sigma
DFSS – Design Approach, focuses on achieving a high level of quality.
Design for Sustainability
DFS – Design Approach
Quality Function Deployment
Turns the customer wants into technical specifications – Cross-reference customer wishes
Modular Design
Allows high level of customization, lower-cost advantage of higher volume for core components, easier assembly, facilitates servicing and repairs, and allows for upgrades.
Design for Environment
DFE – Design Approach, focuses on reducing the effects of the product/process and it’s waste.
Unique, goal-oriented ventures with a beginning and end, involving the coordinated undertaking of interrelated activities to meet established goals within parameters of cost, schedule and quality, and are of a finite duration
Project Characteristics
-Building blocks, strategies
-Newest products/processes
-Management of change
-Crossing boundaries
-Traditional MGMT functions
-Satisfaction of customer within constraints
New product or process, one objective, with one shot, systems must be put in place to integrate efforts, outside of line organization.
Repeat product or process, several objectives, ongoing, systems are in place to integrate efforts, part of the line organization.
Stage of Project Life Cycle where the development of the initial goal and technical specifications takes place.
Stage of Project Life Cycle where all detailed specifications, schedules, schematics, and plans are developed.
Stage of Project Life Cycle where the actual “work” of the project is performed.
Stage of Project Life Cycle where the project is transferred to the customer, resources are reassigned, and project is closed out.
Strategic Management
Developing the vision and mission statement, and formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives.
All individuals or groups who have an active stake in the project and can potentially impact, either positively or negatively, its development.
Functional Organization
A group of people performing similar activities, divided by department.
Project Organization
A group of people divided into project teams assigned to temporary assignments.
Matrix Organization
Creates a dual hierarchy in which functions and projects are of equal prominence.
Strengths of Matrix Organizations
-Suited to dynamic environments
-Equal emphasis on project management and functional efficiency
-Promotes coordination across functions
-Maximizes scarce resources
Weaknesses of Matrix Organizations
-Dual hierarchies mean two bosses
-Negotiations required for sharing resources
-Workers caught between project & functional demands
Full Time Project Organization
Fully-dedicated organization to projects where manager’s authority is expanded, functional alignment is abandoned for market opportunism, and focus is on external customer.
Project Management Offices
Centralized units that oversee or improve the management of projects.
Organizational Culture
The unwritten rules of behavior, or norms that are used to shape and guide behavior, that are shared by a subset of organization members and taught to all new members of a company.
Cultural Influences
-Geographic Location
-Rewards Systems
-Rules & Procedures
-Key Organizational Members
-Critical Incidents
Includes the receiving of all Raw Materials, as well as Defective, Excess, and MRO products. Reverse supply chain.
Reverse Supply Chain
MRO (Maintenance, Repair, and Operating Supplies), Defective products, and After-sales service.
Closed Loop Supply Chain
A supply chain that considers the elimination of waste in the production of a good or service, and the reuse/recycle of all or a portion of the product when the user is finished with it – No landfill, garbage.
Form of warehousing that combines classic warehouse operations with light manufacturing and packaging duties to allow firms to put off final assembly or packaging of goods until the last possible moment – Coldstone Creamery.
Finished Goods SKU
A unique identifier used to minimize amount of inventory.
Component Standardization
Flexibility from maximizing the number of standardized products.
Aggregate Risk Pooling
Aggregating demand across several locations to minimize the amount of safety stock needed.
Design for Environment Pre-Firm
Recycled material, less material, replenishable material.
Design for Environment Firm
Less energy to process, renewable resources, eliminate waste, less packaging.
Design for Environment People
Less energy to use, longer life, easy to repair, no by-product, doesn’t harm environment.
Design for Environment Disposition
Easy to disassemble, recyclable, less energy to dispose, doesn’t harm environment.
Candidate Products
Complex products that can be re-manufactured and/or that can be broken into components that can be reused – Technology diffusion.
Barriers to Green Supply Chains
-Product Design doesn’t facilitate recycling or reuse
-Economics/Feasibility of Product Acquisition, Reverse Logistics, Reprocessing, and Selling/Distribution/Disposal
Characteristics of Supply Chain Information Systems
-Integrates Transportation, Warehousing, and Ordering & Manufacturing Systems
-Customer fulfillment systems trigger adjustments to Production, Transportation and Warehousing plans
-Enables coordination of Transportation resources
-Global Integration
-Information access cross organizational
Enterprise Resource Planning
Large, integrated, computer-based business transaction processing and reporting system that pulls 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.
Goals of ERP
-Automate & Integrate Majority of Business Processes
-Share Common Data & Practices across the Enterprise
-Produce & Access Information Real-Time
ERP Advantages
-Integrate Processes
-Eliminate Fragmentation of “Legacy” systems
-Globalization and expansion of Communication
-Delivers Strategic Advantage
-Streamlines Flow & Provides Real-Time Operating Information
ERP Disadvantages
-Expensive to Purchase/Implement
-Requires Process Modification to Adopt Software
-Difficult & Costly to Customize
-Never “Complete”
-Limited Expertise
E-Business Advantages
-Supplier and Customer Understanding SC Status
-Reduction of Delivery time
-Compression of SC
-Smoothing of Operations
-Low Entry Costs
-Global: Timeless and Spaceless
-Pay Before Shipment
E-Business Disadvantages
-Speed: moderate but improving
-Transaction integrity
-Actual Delivery
-Lack of Sensory Experience
Cycle Reduction Time
Cash-to-Cash cycle, Cross-docking, JIT, SKU, RFID – “Faster is Usually Better” & “Reliability Even Better.”
Demand Pull Distribution System
Changing culture in companies from long manufacturing runs and forecasting systems that push inventory out in advance to flexible, demand responsive systems that reduce pipeline inventory.
Push System
Traditional approach of manufacturing inventory in advance, long production runs, lower unit production costs, high finished product inventories – appropriate for batch and significantly varying demand.
Pull System
Demand responsive approach to inventory manufacturing, flexible and quick, short production runs, postponement, can be implemented when schedule varies no more than 10%.
Supply Chain Strategies
-Cycle Time Reduction
-Demand Pull Distribution System
-Supply Chain Compression
-Asset Productivity
-Supply Chain Metrics
-Organizational Relationships
-Organizational Service/Satisfaction/Value
Asset Productivity
-Inventory Reduction
-Facility/Equipment/People Utilization
Organizational Relationships
Changing culture of traditional organizations with integrated control of many intermediate activities and levels to lean, flat, and responsive organizations, BY PROCESS and NOT BY FUNCTION.
Rationale for Partnerships
-Reduce Uncertainty
-Reduce Asset Investment
-Market Access
-Reduce Complexity
-Improved Customer Service
Customer Service and Satisfaction
-Empowered Customer: interest in the voice and desire of customers
-Service: Post-Sales
Concept Development
Stage of Development process including:
-Proposing new technologies
-Provide market input, propose product concepts
-Scan suppliers for tech. capabilities
Stage of Development process including:
-Identify performance characteristics/technologies
-Define customer needs, estimate sales, include customer
-Develop cost estimates, identify SC partners
Design and Development
Stage of Development process including:
-Develop detailed specs, build/test prototypes, Alpha test
-Customer tests, evaluate prototypes, plan marketing rollout
-Develop detailed process map, test processes
Commercial Preparation
Stage of Development process including:
-Resolve technical problems
-Train sales force, prepare sales procedures, select distribution channels
-Build pilot units using new operations, Train personnel
Stage of Development process including:
-Evaluate field experience, Beta test
-Fill downstream supply chain, sell/promote
-Ramp up volumes, meet cost targets, meet performance goals
Robust Design
The design of products to be less sensitive to variations, including manufacturing, variation and misuse, increasing the probability that they will perform as intended.
Importance of Projects
1. Shortened product life cycles
2. Narrow Product launch
3. Increasingly complex and technical products
4. Emergence of global markets
5. Economic period marked by low inflation
Information System
Set of interrelated components that collect, or retrieve, process, store, and distribute information to support decision making, coordination, and control in an organization.
Cash to Cash Cycle
The time that it takes from when a firm spends money to receive raw materials and resources until when they finish making the goods, sell them, and receive payment.

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