CHAPTER 2 – UNDERSTANDING SUPPLY CHAINS FROM DIFFERENT PERSPECTIVES

Question 1

UNDERSTANDING SUPPLY CHAINS FROM DIFFERENT PERSPECTIVES (5)

Answer 1

MSCDM
– Managing Supply Chain Flows
– Synchronizing Supply Chain Functions
– Connecting Supply Chain Communities
– Designing Supply Chain Systems
– Measuring Supply Chain Processes

Question 2

think of it as three rivers that flow from a customer all the way back to the source of raw materials.

Answer 2

Managing Supply Chain Flows

Question 3

Three Rivers/Flows:

Answer 3

MATERIALS
MONEY
INFORMATION

Question 4

Flow downstream, start with the raw materials, flowing through value-added steps until a product finally ends up in the hands of customers.

Answer 4

Materials

Question 5

flows upstream from the customer through all the supply chain partners

Answer 5

Money

Question 6

flows both upstream and downstream as customers place orders and suppliers provide information about the products and when they will be delivered

Answer 6

Information

Question 7

Supply chain management can also be described as integrating three of the functions inside an organization

Answer 7

Synchronizing Supply Chain Functions

Question 8

three of the functions inside an organization:

Answer 8

Purchasing
Logistics
Operations

Question 9

– the function that buys the materials and services that a company uses to produce its own products and services.

Answer 9

Purchasing (or procurement)

Question 10

always looking for ways to get a better deal from suppliers.

Answer 10

purchasing department

Question 11

The basic goal of the__ is to get the stuff that the company needs at the lowest cost possible

Answer 11

purchasing function

Question 12

Cost reduction strategies for purchasing managers:

Answer 12

-Negotiating with suppliers to reduce the supplier’s profit margin
-Buying in large quantities to get volume discount
-Switching to a supplier that charges less for the same product
-Switching to a lower quality product that’s less expensive

Question 13

? covers everything related to moving and storing products.
– different names: (4)

Answer 13

Logistics
- physical distribution, warehousing, transportation or traffic

Question 14

– refers to the products and services that are being shipped to the company by the suppliers

Answer 14

Inbound logistics

Question 15

products that you ship to your customers.

Answer 15

Outbound logistics

Question 16

– The goals of the logistics function are to move things faster, reduce transportation costs, and decrease inventory.
– Following are some ways that a logistics department might try to achieve these goals:

Answer 16

-Consolidating many small shipments into one large shipment to lower shipping costs
-Breaking large shipments into smaller ones to increase velocity
-Switching from one mode of transportation to another, either to lower costs or increase velocity
-Increasing or decreasing the number of distribution centers to increase velocity or lower costs
-Outsourcing logistics services to a third-party logistics (3PL) company

Question 17

– in charge of the process that your company focuses on to create value

Answer 17

Operations

Question 18

Operations managers usually focus on __, which means asking “How much can we do with the resources we have?”

Answer 18

capacity utilization

Question 19

Types of resources:

Answer 19

Resources can be human resources (people) or land and equipment (capital)

Question 20

Some common goals for operations teams include:

Answer 20

-Reducing the amount of capacity wasted due to changeovers and maintenance
-Reducing shutdowns for any reason, including those caused by running out of raw materials
-Aligning production schedules and orders for raw materials with forecasts received from customers

Question 21

The impact of culture can also apply to the functions within your
organization. Different departments — such as purchasing, logistics, and
operations — often develop cultures of their own.

Answer 21

Connecting Supply Chain Communities

Question 22

related to the style of a group’s leader and the norms for a particular industry

Answer 22

Four major Behavioral forces that Influence Culture

Question 23

Developed the Four major Behavioral forces that Influence Culture

Answer 23

Dr. John Gattorna

Question 24

Four major Behavioral forces that Influence Culture

Answer 24

integrator, developer, administrator, producer

Question 25

force of cohesion, cooperation and relationships.

Answer 25

Integrator

Question 26

Teams that are driven by the Integrator force tend to have a__culture, where everyone on the team is encouraged to develop personal relationships and informal communications (part of a family/exclusive)

Answer 26

“group”

Question 27

Force of creativity, change and flexibility

Answer 27

Developer

Question 28

Teams that are driven by the Developer force form an __ culture, where everyone is focused on achieving a common vision.

Answer 28

“entrepreneurial”

Question 29

force of analysis, systems and control

Answer 29

Administrator

Question 30

Teams that are driven by the Administrator force create a __ culture, where communication is formal and shared through official channels

Answer 30

“hierarchical”

Question 31

force of energy, action and results

Answer 31

Producer

Question 32

Teams that are driven by the Producer force develop a __culture, where communications are concise and fast.

Answer 32

“rational”

Question 33

– The most complicated way to look at a supply chain is to look at it as a system
– supply chains are made up of many interconnected components that can behave in unpredictable ways.
– Managing your supply chain as a system may require a different approach to measuring success than what functional teams normally use.

Answer 33

Designing Supply Chain Systems

Question 34

components that make up supply chains:

Answer 34

People
Processes
Technologies

Question 35

it helps to build a model of your supply chain to show how the parts of the system interact. These models can show cause and effect relationships:
(3)

Answer 35

Reinforcing loops - series of events repeats over and over, getting stronger each time
Balancing loops - opposite effect in which series of events gets weaker
Causal loops - common tools for modeling the dynamics of a system

Question 36

in order to manage a supply chain, you need to be able to measure what’s happening.

Answer 36

Measuring Supply Chain Processes

Question 37

every process in a supply chain can be measured with:

Answer 37

Quantitative metrics
Qualitative metrics

Question 38

objective, numerical indicators

Answer 38

Quantitative metrics

Question 39

describe intangible characteristics

Answer 39

Qualitative metrics

Question 40

metrics that will give u insights (identify the steps in each supply chain process that will be most useful in understanding how things are working and what decisions you need to)

Answer 40

Key Performance Indicators (KPI)

Question 41

Comparing KPIs between facilities and between companies

Answer 41

Benchmarking

Question 42

three ways that you can change the system that can reduce and even
eliminate the Bullwhip Effect

Answer 42

-make batches smaller
-improve forecasting
-improve communications

Question 43

in which
inventory peaks and valleys are amplified as they move upstream from one
step to the next in a supply chain.

Answer 43

Bullwhip Effect