Book Ch 11: Push-Pull Boundary, Supplier Integration, Mass Customization

Question 1

What are production decision based on in push and pull systems?

Answer 1

Push: Long-term forecasts

Pull: Demand driven

Question 2

What’s the conclusion when comparing push and pull systems?

Answer 2

Compared to push, pull-based systems typically lead to reduced:

• Lead time
• Inventory levels
• System costs

Question 3

What part of the supply chain is usually the push and the pull?

Answer 3

Push: Portion of supply chain prior to product differentiation (based on long term forecasts)

Pull: Portion of supply chain after differentiation (response to market demand)

Question 4

What are the benefits of including the supplier in product design process?

Answer 4

1. Decline in material costs
2. Increased material quality
3. Decline in development time
4. Decline in manufacturing cost

Question 5

What two forces motivate managers to work with suppliers?

Answer 5

1. Focus on their core competencies

2. Continually reducing length of products ife cycle

Question 6

What is the spectrum of supplier integration?

Answer 6

1. None
2. White box: Buyer consults with supplier informally when designing, but no formal collaboration
3. Grey box: Formal supplier integration. Collaboration teams formed and joint development occurs
4. Black box: Buyer gives supplier set of interface requirements and supplier independently design required components

Question 7

What are 3 steps to determining level of supplier integration?

Answer 7

1. Determine internal core competencies
2. Determine current and future new product developments
3. Identify external development and manufacturing needs

Question 8

What is the “bookshelf” concept for supplier integration?

Answer 8

1. Buyer monitors development of relevant new technologies and follows supplier that demonstrates expertise
2. When appropriate, buyer firm can quickly introduce these technologies into new products by integrating supplier design team
3. No need to used technology immediately to gain experience with it
4. Danger of being slow to introduce cutting-edge technology is lessened

Question 9

What is mass production?

Answer 9

The efficient production of a large quantity of a small variety of goods

Question 10

What is craft production?

Answer 10

Production involving highly skilled and flexible workers. Produces highly differentiated and specialized goods

Question 11

What is mass customization?

Answer 11

Production of a wide variety of customized goods or services quickly and efficiently at low cost

Question 12

What is the key for mass customization to work?

Answer 12

1. Highly skilled and autonomous workers processes
2. Modular units
3. Managers can focus on configuring units to meet customer requests

Question 13

What are 4 attributes that the system which link different modules must have?

Answer 13

1. Instantaneousness: Modules must be linked together quickly
2. Costless: Linkage must add little cost to process
3. Seamless: Linkage should be invisible to customer
4. Frictionless: Networks must be formed with little overhead