CPIM Part 1, Module 1 - Supply chain overview Flashcards
What is a strategic plan?
The plan for how to marshal and determine actions to support mission, goals and objectives of an organization
What is product differentiation?
A strategy for making a product distinct from the competition on a nonprice basis
The specific way that goods move depends on many factors, including which four?
- The type and quantity of distribution channel available for use
- Market characteristics
- Product characteristics
- Available modes of transportation
What is the goal of production planning?
To set the production rates that will achieve managements objectives
When do you use a chase production method?
If it is not possible to carry stock or for perishable goods. Is used in lean to only produce what is needed
When do you use a level production method?
Often with highly seasonal products, because the cost of carrying inventory is less than to vary production levels
What are the three inputs of a production plan?
- Forecast demand including backorders by time bucket
- Opening inventory (backlog) if level production
- Targeted ending inventory (backlog) if level production
What is a bill-of-resources?
A listing of the required capacity and key resources needed to manufacture one unit of a selected item or family
What are the six goals of an pre-S&OP meeting?
- Make decisions regarding demand and supply levels
- Reconcile differing recommendations to generate a single action
- Identify issues that cannot be reconciled
- Generate alternate action plans for consideration
- Set the agenda for the executive meeting
What is advanced planning and scheduling?
Techniques that deal with analysis and planning of logistics and manufacturing during short, intermediate and long term time periods
What are the five parts of a APS system?
- Demand planning
- Production planning
- Production scheduling
- Distribution planning
- Transportation planning
What is delivery lead time?
The time from the receipt of a customer order to the delivery of the product
What is supplier lead time?
The amount of time that normally elapses between the time an order is received by a supplier and the time the order is shipped
What is procurement lead time?
The time required to design a product, modify or design equipment, conduct market research and obtain all needed materials
What is purchasing lead time?
The total lead time required to obtain a purchased item
What is manufacturing lead time?
The total time required to manufacture an item, exclusive of lower-level purchasing lead time
What are the two flow process types?
- Continuous
- Line
What are the two intermitted process types?
- Work center
- Batch
What are the five manufacturing process types?
- Continuous
- Line
- Batch
- Work center
- Project
What are the four manufacturing process layouts?
- Product - based
- Cellular
- Functional
- Fixed position
What is the difference between work center and batch?
Batch is for higher production volumes. Lots or batches are larger, and the flow between the chain of activities is optimized
What is the balanced scorecard and what are the four domains?
It is a list of financial and operational measurements used to evaluate organizational or supply chain performance. The dimensions are: Customer perspective, business process, financial perspective, innovation and learning perspective
What is the united nations global compact?
It is a voluntary certification kind of thing that provides principles regarding:
- Human rights
- Labor
- Environment protection
- Anti-corruption
What are the six steps of the UN global compact model?
- Commit
- Assess
- Define
- Implement
- Measure
- Communicate
What are the four types of legal / regulatory risks?
- Compliance risk
- Contract risk
- Trademark / patent infringement
- Bribery and corruption
What are the four steps in a CPFR planning cycle?
- Review and analyze past plans and performance
- Work with partners on forecasts and resolve conflicts for future
- Review plans with regard to expected demand
- Commit to the supply plan and order forecast
What is a service?
Sometimes used to describe those activities that support the production or distribution functions in any organization, such as customer service and field service
What are the five sources of independent demand?
- Forecasts
- End customers
- Replenishment orders
- Interplant demand
- Internal use
What are the four patterns in demand?
- Seasonality: A predictable repetitive pattern of demand measured within a year where demand grows and declines
- Trend: General upward or downward movement over time
- Cycle: Patterns observed in the growth and recession of economies over years
- Random variation: Any variation left after the seasonality and trend has been accounted for
What are the ten steps of creating a forecast?
- Determine purpose
- Set level of aggregation and units to measure
- Select horizon and planning bucket
- Gather and visualize the data
- Choose forecasting technique
- prepare the data for the technique
- Test the forecast using historical data
- Forecast
- Achieve consensus on forecast
- Continuously improve
What is a backorder?
An unfilled customer order or commitment. A backorder is an immediate demand against an item whose inventory is insufficient to satisfy the demand
What are the four principles of data collection?
- The data should be collected in the format in which it will be used
- Record any circumstances or events related to the data
- Separate demand by customer segment
- Remove seasonality from data, and add back later
What are the steps for deseasonalization, forecasting and adding back seasonality?
- Calculate the period average demand
- Calculate the average demand for all periods
- Calculate seasonal index for all periods
- Calculate deseasonalized demand
- Forecast with deseasonalized demand
- Apply the proper seasonal index to the forecast
What is a panel consensus forecasting technique?
A judgmental forecasting technique by which a committee, sales or group of experts arrive at a sales estimate
What is the delphi method?
A qualitative forecasting technique where the opinions of experts are combined in a series of iterations
What is an extrinsic forecasting technique?
A forecasting method using a correlated leading indicator; for example, estimating furniture sales based on housing starts
What is a leading indicator?
A specific business activity that indicates future trends
What is an intrinsic (time-series) forecasting technique?
A forecast based on internal factors, such as an average of past sales
What is naive forecasting?
Thinking that the prior periods will simply repeat
What is exponential smoothing?
A forecasting method where more weight is given to the most recent demand
What is bias?
A consistent deviation from the mean in one direction
What does a positive forecast deviation entail? And what about a negative?
Positive means there was a shortfall in production and negative means overproduction
What is mean average deviation?
The average of absolute values of the deviations of observed values from some expected value. Alternative: calculate absolute deviation from actual sales minus forecast data
What is a tracking signal and what is it used for?
The ratio of cumulative algebraic sum of deviations between the forecast and the actual values of the mean absolute deviation. Used to signal when the validity of the forecasting method might be in doubt
