(4, 1) - Collaborative Improvement & Innovation Flashcards
Cross functional teams can bring benefits to the procurement cycle. What benefits would each of the following bring? (Marketing, Procurement, Manufacturing, Engineering)
Marketing – will consider the likelihood of customer acceptance
Procurement – will consider the commercial issues and incorporate supply market ideas
Manufacturing – will evaluate the production and manufacturing issues
Engineering – will consider the technical and design requirements, potentially supported by end users.
What role should procurement play in the specification stage?
Try to encourage standardisation
Try to launch value engineering
Try to simplify the specification
Use of early supplier involvement (ESI)
What are the benefits of early supplier involvement (ESI)?
Allows the procurement function earlier overall involvement in procurement process Reduce product development times Improve designs Utilising new ideas Accessing new technologies Reduce product development cost
What are the disadvantages of early supplier involvement (ESI)?
The organisation may feel locked into the supplier
The two sides may have different objectives
May be a conflict of interest if the supplier works with competitors
The risk of dependency and products designed around suppliers strengths
What is simultaneous engineering?
An approach where many functions integrate to reduce the time required to bring a new product to market. This allows the various stages to overlap or even run in parallel reducing the time taken to get the product to market. This is in contrast to the standard approach where the stages occur sequentially.
How can supply chain innovation occur?
- Changing the process by which something is done e.g. using different manufacturing
- Improving the product or service being procured e.g. buying sustainable paper
- Finding new uses for existing products or services e.g. buying supplier research
- Developing new products or services to satisfy previously unmet market needs e.g. heated front windscreen
What is meant by, Innovation can be either incremental or breakthrough?
Incremental innovation is step by step resulting from continuous improvement initiatives. Breakthrough innovation in contrast is something which leads to radical change and adds substantial value.
What is Forward Commitment Procurement (FCP)?
FCP is an approach to get round the issue that suppliers won’t develop an innovative new product until they know there’s a demand for it and buyers won’t specify the product because they don’t yet exist. FCP involves providing the market with advance information of future needs in terms of the outcome required, engages suppliers early in the process and provides a forward commitment i.e. a commitment to purchase should the product meet agreed performance levels.
What is ‘Kyoryoku Kai’?
It is an example of an innovation forum. It involves identifying the most important suppliers and bringing them together on a regular basis in order to:
- Devolve strategy and policy throughout the chain
- Strengthen trust and the relationships of the members
- Share knowledge and expertise
- Facilitate joint development and learning
- Jointly identify ways of minimising waste
What is Technology Transfer?
It is the process of transferring skills, knowledge, technological solutions, methods of manufacturing, samples of manufacturing and facilities from one organisation to another for the development or further commercialisation.
When might Technology Transfer be used? Why is it high risk?
TT may be used when an advanced company outsources some of its operations to a low-cost country where the technology is less advanced. Another example might be a university transferring its research to the private sector in order to commercialise it. It is high risk as the organisation supplying the info may lose its competitive advantage.
