Supply chain management Flashcards

Terms Definitions
What do walmart, fed ex, fextronics, and SAP have in common
strong commitment to superior operations and supply chain management.
why should every organization be interested in supply chain management?
1.) Every organization must make a product or provide a service someone values.2.)Most organizations function as part of larger supply chains.3.) organizations must carefully manage their operations and supply chains in order to prosper, and, indeed, survive.
What is operations function
also called operations. the collection of people, technology, and systems within an organization that has primary responsibility for providing the organization's product or services.
what is i supply chain
a network of manufacturers and service providers that work together to convert and move goods from the raw materials stage through to the end user. these manufacturers and service providers are linked together through physical flows, information flows, and monetary flows.
How do some firms view operations as a transformation process?
Inputs -> transformation process -> outputs
What is operations management?
the planning, scheduling, and control of the activities that transform inputs into finished goods and services.
what is meant by upstream?
a term used to describe activities or firms that are positioned earlier in the supply chain relative to some other activity or firm of interest. for example, corn harvesting takes place upstream of cereal processing, while cereal processing takes place up stream of cereal packaging.
What is downstream?
a term used to describe activities or firms that are positioned later in the supply chain relative to some other activity or firm of interest. for example, sewing a shirt takes place downstream of weaving the fabric.
what is a first tier supplier?
a supplier that provides products or services directly to a particular firm.
what is a second tier supplier
a supplier that provides products or services to a firm's first tier supplier.
what is supply chain management?
the active management of supply chain activities and relationships in order to maximize customer value and achieve a sustainable competitive advantage. it represents a consious effort by a firm or group of firms to develop and run supply chains in the most effective and efficient ways possible.
what is supply chain operations reference model ( SCOR )
a framework develped and supported by the supply chain council that seeks to provide standard descriptions of the processes, relationships, and metrics that define supply chain management.
what areas do supply chain management cover?
planning activities, sourcing activites, make or production activities, delivery activities, and return activities.
What are three major developements that have brought operations and supply chain management to the forefront of managers attention
electronic commerce, increasing cmpetition and globalization, and relationship management.
What is electronic commerce
also called e commerce the use of info technology ( IT ) solutions to automate business transactions. electronic commerce promises to improve the speed, quality, and cost of business communication.
What are some of the possibilties a supply chain manager can be?
Analyst, commodity manager, customer service manager, international logistics manager, producting manager, etc.
if you decide to pursue a career in supply chain management, what are some of the organizations that will help you?
What are some major operations and supply chain activities?
process selection, forecasting, capacity planning, inventory management, planning and control, purchasing, logistics.
What are some key facts about supply chain management?
- it is pervasive in all business.- organizations do not function independantly, but rather are linked via supply chain.- there are numerous career opportunities.- many professional organizations will help you.
What are structural elements?
One of two major decision categories addressed by a strategy. Includes tangible resources, such as buildings, equipment, and computer systems.
What are infrastructural elements?
one of two major decision categories addressed by a strategy. Includes the policies, people, decision rules, and organizational structure choices made by a firm
What are strategies?
mechanisms by which businesses coordinate their decisions regarding structural and infrastructural elements.
What is a mission statement?
statement that explains why an organization exists. It describes what is important to the organization, called its core values, and identifies the organization's domain.
What is business strategy?
the strategy that identifies the firm's targeted customers and sets time frames and performance objectives for the business.
What are core competencies?
Organizational strengths or abilities, developed over a long period, that customers find valuable and competitors find difficult or even impossible to copy.
What is a functional strategy?
translates a business strategy into specific actions for the functional areas such as marketing, human resources, and finance. Functional strategies should align with the overall business strategy and with each other.
What is operations and supply chain strategy?
A functional strategy that indicates how structural and infrastructural elements within the operations and supply chain areas will be acquired and developed to support the overall business strategy.
What are some of the major structural and infrastructural decisions that must be addressed by an operations and supply chain strategy?
Capacity, facilities, size, location, degree of specialization, organization, sourcing decisions, planning and control, business processes and quality management.
What are three primary objectives of an operations supply chain strategy?
help managers choose the right mix of structural and infrastructural elements.2.) ensure that the firm's structural and infrastructural choices are strategically aligned with the firms business strategy3.) support the development of core competencies in the firm's operations and supply chains.
what are some of the way one can evaluate customer satisfaction?
performance quality, delivery speed, after sales support, cost.
what is a value index?
a measure that uses the performance and importance scores for various dimensions of performance for an item or service to calculate a score that indicates the overall value of an item of service to a customer.
what is the value index formula?
V= sume of I x Pv= value index for productI = importance dimension nP = performance with regard to dimension n
What are the four generic performance dimensions that are particularly relevant to operations and supply chain activities?
1.) quality2.) time3.) flexibility4.) cost
What is quality?
the characteristic of a product or service that bear on its ability to satisfy stated or implied needs.
what is performance quality?
A sub-dimension of quality, adressing the basic operating characteristics of the product or service.
What is conformance quality?
a sub dimension of quality addressing whether the product was made or the service performed to specifications.
What is reliability quality?
a sub dimension of quality addressing whether a product will work for a long time without failing or requiring maintenance
What is delivery speed
a performance dimension that refers to how quickly the operations or supply chain function can fufill a need, once it has been identified.
What is delivery reliability?
A performance dimension that refers to the ability to deliver products or services when promised.
What is the delivery window?
the acceptable time range in which deliveries can be made.
What is flexibility?
A performance dimension that considers how quickly operations and supply chains can respond to the unique needs of different customers.
What is mix flexibility?
the ability to produce a wide range of products or services.
What is changeover flexibility?
the ability to provide a new product with minimal delay
what is volume flexibility?
the ability to produce whatever volume the customer needs
What are some cost categories?
labor costs, material costs, engineering costs, quality related costs.
What is a trade off?
the decision by a firm to emphasize one performance dimension over another, based on the recognition that superior performance on some dimensions may conflict with superior performance on others.
What are order winners?
performance dimensions that differentiate a company's products and services from its competitors. Firms win the customer's business by providing superior levels of performance on order winners.
What are order qualifiers?
performance dimensions on which customers expect a minimum level of performance. superior performance on an order qualifier will not, by itself, give a company a competitive advantage.
What are the four stages of alignment with the business strategy?
Stage 1- internally neutral. management seeks only to minimize negative potential in the operations and supply chain areas. there is no effort made to link these areas with the business strategy.Stage 2- externally neutral- here industry practice is followed, based on the assumption that what works for competitors will work for the company. no effort to link op and supply chain areas with business strategy.Stage 3- internally supportive- the op and supply chain areas participate in the strategic debate. management realizes supply chain structural and infrastructural elements must be aligned with the business strategy.Stage 4- externally supportive- at this stage, the op and supply areas do more than just support the business strategy- the business strategy actively seeks to exploit the core competencies found within these areas.
what does the flow of business strategy and functional area strategies look like?
mission statement -> business strategy. Business strategy can flow to operations and supply chain strategies or other functional strategies in a strategic alignment. Ops and supply chain strategies can flow back to business strategy,as well as other functional strategies.
What is business process?
A set of logically related tasks or activities performed to achieve a defined business outcome
What is a primary process?
A process that addresses the main value-added activities of an organization
What is a support process?
a process that performs necessary, albeit non value added activities.
What is a developement process?
A process that seeks to improve the performance of primary and support processes.
What are some examples of primary, support, and development processes?
primary- providing a service, educating customers, manufacturing a productsupport- evaluating suppliers, recruiting new workers, developing a sales and ops plan.development- developing new products, training new workers.
what is one difficult part about business processes?
managing functions is not the same as managing what a business does. people are unaware of the impact of their decisions and actions on other functions.
What is the key point about improving business processes?
improving the enrollment processes required the different functional areas to look beyond their own activities and see the process through the customers eyes.
What is mapping?
the process of developing graphic representations of the organizational relationships and/or activities that make up a business process.
What is a process map?
A detailed map that identifies the specific activities that make up the informational, physical, and monetary flows of a process.
what are the purposes of mapping?
it creates a common understanding of the content of the process; its activities, its results, and who performs the various steps. it defines the boundaries of the process. It provides a baseline against which to measure the impact of improvement efforts.
What are some rules for maintaining focus.
1.) identify the entity that will serve as the focal point.2.) Identify clear boundaries and starting and ending points.3.) keep it simple.
What are common mapping symbols?
Rectangle with round corners- start of finishrectangle- step or activity in the processdiamond- decision point typically requires a yes or no.rhombus- input or output typically data or materials.four sided object with curvy bottom- document created.bullet- delaycircle- inspectionarrow- move activity.
What should you do to improve activity process?
1.) examine each delay symbol- what could reduce it?2.) Examine each activity- is it redundant?3.) examine each decision symbol- does it require an actual decision?4.) look for any loops.
What is a swim lane process map?
A process map that graphically arranges the process steps so that the user can see who is responsible for each step.
What are some specific measures that are frequently used to evaluate process performance?
productivity, efficiency, and cycle time.
What is productivity?
A measure of process performance; the ratio of outputs to inputs.
what is the formula for productivity?
productivit= outputs/ inputs
What is single factor productivity?
A productivity score that measures output levels relative to a single input.
What is multifactor productivity?
A productivity score that measures output levels relative to more than one input.
What is efficiency?
A measure of process performance; the ratio of actual outputs to standard outputs. Usually expressed in percentage terms.
What is standard output?
An estimate f what should be produced, given a certain level of resources.
What is the formula for efficiency?
100% ( actual outputs/ standard outputs)
what is cycle time?
the total elapsed time needed to complete a business process. Also called throughput time.
What is percent value added time?
A measure of process performance; the percentage of total cycle time that is spent on activities that actually provide value.
What is the formula for percent value added time?
100% ( value added time / total cycle time)
What is benchmarking
the process of identifying, understanding, and adapting outstanding practices from within the same organization or from other business to help improve performance.
What is competitive bench marking?
the comparison of an organizations processes with those of competing organizations.
what is process benchmarking?
the comparison of an organization's processes with those of noncompetitors that have been identified as superior processes.
What is the six sigma methodology?
A business improvement methodology that focuses an organization on understanding and managing customer requirements, aligning key business processes to achieve those requirements,utilizing rigorous data analysis to understand and ultimately minimize variation in those processes, and driving rapid and sustainable improvement to business processes.
What are champions?
senior level executives who own six sigma projects and have the authority and resources needed to carry them out.
What are master black belts?
full time six sigma experts who are responsible for six sigma strategy, training, mentoring, deployment and results.
What are black belts?
fully trained six sigma experts with up to 160 hours of training who perform much of the technical analyses required of six sigma projects, usually on a full time basis.
what are green belts?
individuals who have some basic training in six sigma methodologies and tools and are assigned to projects on a part time basis.
What are team members?
individuals who are not trained in six sigma, but are included on a six sigma project team due to their knowledge or direct interest in a process.
What is the DMAIC?
stands for define-measure-analyze-improve-control) - A six sigma process that outlines steps that should be followed to improve existing business processes.
What is DMADV?
stands for define-measure-analyze-design-verify. A six sigma process that outlines the steps needed to create completely new business processes or products.
What is continuous improvement?
the philosophy that small, incremental improvements can add up to significant performance improvements over time
What is root cause analysis?
a process by which organizations brainstorm about possible causes of problems. referred to as effects, and then, through structured analyses and data gathering efforts, gradually narrow the focus to a few root causes.
What is the open phase?
the first phase of root cause analysis, devoted to brainstorming.
What is the cause and effect diagram?
a graphical tool used to categorize the possible causes for a particular result.
What are the five M's
the main five branches of a typical cause and effect diagram; manpower, methods, materials, machines, and measurements.
What are the five whys?
An approach used during the narrow phase of the root cause analysis, in which teams brainstorm successive answers to the question,"why is this a cause of the original problem?" the name comes from the general observation that the questioning process can require up to five rounds.
What is the scatter plot?
a graphical representation of the relationship between two variables.
What is a check sheet?
a sheet used to record how frequently a certain event occurs.
What is a pareto chart?
a special form of bar chart that shows frequency counts from highest to lowest.
What is a bar graph?
a graphical representation of data that places observations into specific categories.
What is a histogram?
a special form of bar chart that tracks the number of observations that fall within a certain time interval
What is a run chart?
a graphical representation that tracks changes in a key measure over time.
What is business process reengineering? BPR
a procedure that involves the fundamental rethinking and radical redesign of business processes to achieve dramatic organizational improvements in such critical measures of performance as cost, quality, service, and speed.
What is the SCOR model?
a supply chain operations reference model. A comprehensive model. A comprehensive model of the core management processes and individual process types that together define the domain of supply chain management
What are the five core management processes SCOR model is focused around in level 1?
1.) source2.) make3.) deliver4.) return5.) plan
What is level 2 of the SCOR model?
planning, execution, and enable.
What is level 3 of the SCOR model?
contains generic process maps for the individual process types
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