Continuous improvement being lean means being devoted

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Strategic Management: Theory & Cases: An Integrated Approach
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Chapter 11 / Exercise 1
Strategic Management: Theory & Cases: An Integrated Approach
Hill/Schilling
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Continuous Improvement - Being lean means being devoted to the consumer. keep old customers, find new customers, improve quality, increase speed, offer more flexibility, and control costs. Poka-yoke – Mistake-proofing. Lean companies will find ways to completely eliminate certain types of errors. Close supplier ties – Good relationships, trust, and information sharing reduce uncertainty and thus will result in fewer unwanted supply chain surprises. Small lot sizes scale? When companies can produce small batches in a profitable manner they can control inventory levels and still meet consumer demand quickly. Standardized components and work method Dedication to the Workforce – Lean systems require finding errors, fixing errors, identifying opportunities for improvement, and relationship management with supply chain partners.” Using Automation when Appropriate tool. On the other hand, when too much automation is used flexibility and quality improvements can be more difficult to achieve. Short Set-up/Change-over – Set-up time is the amount of time it takes to change a system from producing one product to producing a different item. Keeping short set- up times allows systems to run “leaner”. o Consider the EOQ formula for manufacturing: EOQ = Sqrt [(2*Demand* Set-up Costs) / Holding cost]” When set-up times (and thus set-up costs) are low it will drive down EOQ. Obj101
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Strategic Management: Theory & Cases: An Integrated Approach
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Chapter 11 / Exercise 1
Strategic Management: Theory & Cases: An Integrated Approach
Hill/Schilling
Expert Verified
SCM 300 – MODULE 06 Study Packet Order size required= actual demand/proportion of acceptable product per order
SCM 300 – MODULE 06 Study Packet 13
SCM 300 – MODULE 07 Study Packet Also, be sure to read all introductory sections: Jazz, Cascading Injuries, etc. Below is a list of the items most likely to be tested from the lectures. This list is not necessarily complete, but it is a helpful guide. SCM Basics slide 2-3 Basic responsibilities of a supply chain Meet customer demand: 1 right items, right place, right time 2 reasonable prices 3 Quality- High performance, consistency 4 Flexibility: Customization and/or volume Contribute to profitability: 1 Support revenue streams: cost, quality, speed, flexibility offerings 2 Control costs: minimize waste and inventory Continuous improvement: 1 Capture data, measure performance, analyze data 2 Responsive to changes in market demand Understand the following terms - front-end, back-end, upstream, downstream Push vs. Pull Understand the basics of Push and Pull systems and when each is appropriate Push(apple): push product through without customization Pull(Dell): customize product and pull on “strings” during manufacturing o Push system - items are made before demand. Pull system - Items made as result OF demand. Strengths and weaknesses of Push and Pull, Push system PROS and CONS Pros - high inventories, low ordering costs, less likely to run out of product, shorter lead times, mistakes and defects tolerable Cons - High holding costs, low customization flexibility, mistakes and defects tolerable, forecasting miscalculations can be costly Pull system PROS and CONS

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