Chapter 12 Flashcards
efficient frontier
provide the exact service the customer wants at minimal cost
activities to plan for in supply chain
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
production process
inputs (raw materials, labor, machinery, facility) –> transformation (materials management, production scheduling, manufacturing, assemble, quality control, packaging) –> output (new products and services)
quality management programs
benchmarking continuous improvement failure mode and effects analysis iso9001 total quality improvements six sigma
benchmarking
involves the use of criteria or standards that can be employed to compare one company with another to better understand organizational performance
continuous improvement
a program that focusses on undertaking incremental improvements in processes to increase customer satisfaction
failure mode and effects analysis
a way to identify and rank potential equipment and process failures
ISO9001
an internationally recognized quality set of standards with a certification process
total quality improvement
a set of management practices designed to meet customer requirements through process measurement and controls
six sigma
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
Should you outsource?
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?
supply chain
consists of business activities that move a product through the stages of designing, making, sourcing and delivering to the customer
value chain
a cooperative effort among the participants to add value at each point in the chain, creating benefits for all
Inventory
stocks of items supporting production, associated activities, customer service
Quality control
the process of reconciling product or project output with the standards set for that product or project; best for certain customer requirements
Logistics
the management and control of the flow of goods and resources from the source of production to the marketplace
cell manufacturing
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
product/project focused organizations
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
process-focused organizations
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
management processes
source of strategic direction and organizational governance, so they usually affect or shape all the other processes of the business
business processes
“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
support processes
common functions in any business; include payroll and human resources management and are viewed by the internal stakeholders of the company–employees
lean manufacturing
views manufacturing from the customer’s perspective
