Chapter 12

Question 1

efficient frontier

Answer 1

provide the exact service the customer wants at minimal cost

Question 2

activities to plan for in supply chain

Answer 2

purchasing for profitability
reducing inventories
tighter supplier integration
more frequent and smaller customer orders and receipts
faster time from source to stock in the wholesale or retail outlet

Question 3

production process

Answer 3

inputs (raw materials, labor, machinery, facility) –> transformation (materials management, production scheduling, manufacturing, assemble, quality control, packaging) –> output (new products and services)

Question 4

quality management programs

Answer 4

benchmarking
continuous improvement
failure mode and effects analysis
iso9001
total quality improvements
six sigma

Question 5

benchmarking

Answer 5

involves the use of criteria or standards that can be employed to compare one company with another to better understand organizational performance

Question 6

continuous improvement

Answer 6

a program that focusses on undertaking incremental improvements in processes to increase customer satisfaction

Question 7

failure mode and effects analysis

Answer 7

a way to identify and rank potential equipment and process failures

Question 8

ISO9001

Answer 8

an internationally recognized quality set of standards with a certification process

Question 9

total quality improvement

Answer 9

a set of management practices designed to meet customer requirements through process measurement and controls

Question 10

six sigma

Answer 10

a data-driven approach to eliminating defects with a goal of 3.4 defects per million;
relies on statistical tools and specific processes to achieve the measurable goals of fewer defects, increased productivity, reduced waste, and superior products and processes

Question 11

Should you outsource?

Answer 11

have you exhausted all possibilities at home?
are you able to meet with your partner in person?
do you have the time and willingness to do this?
have you done due diligence on potential partners?
do you have connections overseas?
is everyone on board with the plan?

Question 12

supply chain

Answer 12

consists of business activities that move a product through the stages of designing, making, sourcing and delivering to the customer

Question 13

value chain

Answer 13

a cooperative effort among the participants to add value at each point in the chain, creating benefits for all

Question 14

Inventory

Answer 14

stocks of items supporting production, associated activities, customer service

Question 15

Quality control

Answer 15

the process of reconciling product or project output with the standards set for that product or project; best for certain customer requirements

Question 16

Logistics

Answer 16

the management and control of the flow of goods and resources from the source of production to the marketplace

Question 17

cell manufacturing

Answer 17

one unit at a time serially; product moves from raw materials through a series of tasks and processes in a continuous flow to complete the product while remaining inside the manufacturing cell; benefits: reduced lead times, improved costs, quality, and timing in addition to giving employees more involvement in the production of the entire product rather than simply one component

Question 18

product/project focused organizations

Answer 18

highly decentralized or distributed so that they can respond better to market demands; each product or project group acts essentially as a separate company or profit center; well-suited to products and projects that don’t require huge economies of scale or capital-intensive technologies

Question 19

process-focused organizations

Answer 19

common among manufacturers with capital intensive processes (ex: semiconductor industry) and among service companies; highly centralized in order to control all the functions of the organization

Question 20

management processes

Answer 20

source of strategic direction and organizational governance, so they usually affect or shape all the other processes of the business

Question 21

business processes

Answer 21

“mission-critical” processes and generally relate to the core competencies of the company, such as manufacturing, distribution, and product development; critical because they are typically viewed by the customer and include marketing, fulfillment, and service

Question 22

support processes

Answer 22

common functions in any business; include payroll and human resources management and are viewed by the internal stakeholders of the company–employees

Question 23

lean manufacturing

Answer 23

views manufacturing from the customer’s perspective