CHAPTER 4 – OPTIMIZING YOUR SUPPLY CHAIN

Question 1

OPTIMIZING YOUR SUPPLY CHAIN

Answer 1

– Mapping your supply network
– Driving process improvements
– Managing supply chain projects

Question 2

– are made up of nodes and links

Answer 2

Networks

Question 3

– stop that a product makes between raw materials and a customer (factory, warehouse, distribution center, retail store)

Answer 3

Node

Question 4

– connects nodes (forms of transportation such as ship, railroad etc.)

Answer 4

Links

Question 5

– making changes in the links and nodes

Answer 5

Network Optimization

Question 6

approach to network optimization
important part of Lean professional’s toolkit

Answer 6

Value Stream Mapping (VSM)

Question 7

Three approaches to process improvement:

Answer 7

Lean – reducing waste
Six Sigma – reducing variability
Theory of Constraints – relieving bottlenecks

Question 8

– an approach to supply chain management that originated with Toyota
– use the least amount of time, effort and resources by maintaining smooth and balanced flow

Answer 8

Lean

Question 9

Lean is referred to as the

Answer 9

Toyota Production System (TPS)

Question 10

Lean (3 things to eliminate:)

Answer 10

Muda: waste
Mura: Unevenness in operations
Muri: Overburdening of people and equipment

Question 11

– the stakeholders form a team and look at how the process is working, come up with ideas for how to make it better, and then implement changes.

Answer 11

Kaizen Event

Question 12

8 KINDS OF MUDA (TIM WOODS)

Answer 12

Transportation
Inventory
Motion
Waiting
Overproduction
Overprocessing
Untapped skills and employee creativity
Defects - wastes and scraps or rework

Question 13

a process improvement method that’s built on statistics. The basic idea is that variation is bad. You need consistency and predictability.

Answer 13

Six Sigma

Question 14

he statistical basis for Six Sigma is to reduce process variability so much that defects occur only at __

Answer 14

the sixth sigma (6σ), or 3.4 times per million.

Question 15

Five Steps to Apply the Six Sigma – as a process improvement methodology, used for improving an existing process

Answer 15

DMAIC
define
measure
analyze
improve
control

Question 16

Five Steps to Apply the Six Sigma– used for designing new processes

Answer 16

DMEDI
define
measure
explore
develop
implement

Question 17

4 Levels for Six Sigma Training and Certification

Answer 17

Yellow belts - basic understanding of concepts and terminologies
Green Belts - solid understanding of Six Sigma
Black Belts - have mastered and can teach other people
Mast Black belts - high level of mastery, train and supervise Black belts.

Question 18

– The basic idea is that every process is limited by some kind of constraint (think of the saying, “A chain is only as strong as its weakest link”).
– about tuning an entire supply chain to run at the same pace as the slowest step in the process.

Answer 18

Theory of Constraints (TOC)

Question 19

Structuring Supply Chain Projects

Answer 19

1. Managing Cross-Functional Project Teams
2. Creating Cross-Functional Project Plans
3. Creating a RACI Matrix
4. Designing Project Scorecards
5. Using the DIRECT Model

Question 20

the way that companies make changes.

Answer 20

Projects

Question 21

Because supply chains need to adapt to changes all the time, __ has become an important part of supply chain management

Answer 21

project management

Question 22

– connects companies and cut across the silos
– might include people from business development, customer services, shipping, receiving and manufacturing
– great way to help develop a broad network

Answer 22

Managing Cross-Functional Project Teams

Question 23

Three of the most common challenges for cross-functional project managers:

Answer 23

authority, communication, and prioritization

Question 24

ability to hire, fire, reward, and correct someone

Answer 24

Authority

Question 25

to be able to provide translation among functions and encourage people to explain what they’re trying to say without using jargon

Answer 25

Communication

Question 26

If one of the other projects requires more time and attention, you must make sure that your project gets enough support

Answer 26

priorities

Question 27

– One of the best ways to deal with the challenge of leading a cross-functional project is to have a___
– gives everyone a chance to provide input and catch interdependencies

Answer 27

Cross-Functional Project Plans/project plans

Question 28

list all the tasks in a project and define the role for each team members in supporting each task.

Answer 28

RACI Matrix

Question 29

RACI Matrix

Answer 29

responsible, accountable, consult, inform

Question 30

team member has no connection to the task.

Answer 30

No role

Question 31

team member needs to be notified that a task is occurring, or that it has been completed.

Answer 31

Inform

Question 32

• team member asked to provide input for a task,isn’t the one doing the task, and making decisions.

Answer 32

Consult

Question 33

• team member is responsible for helping to complete a task

Answer 33

Responsible

Question 34

• the one, and the only, person who is ultimately accountable for getting the task done.

Answer 34

Accountable

Question 35

One of the most effective ways to track a project

Answer 35

Project Scorecards/ scorecards

Question 36

make it easy for anyone to tell at a glance how a project is doing — whether it’s ahead of schedule and under budget or behind schedule and over budget; whether things are going as planned, or whether unplanned risks are putting the project in jeopardy

Answer 36

Project Scorecards

Question 37

built around the six things that a leader needs to focus on in order to help their team complete a project successfully

Answer 37

DIRECT Model

Question 38

DIRECT Model

Answer 38

Define Objectives
Investigate the options
Resolve to a course of action
Execute the plan
Change the System
Transition the people