D.3 Supply Chain Mgmt

Question 1

Describe JIT Systems

Answer 1

1 work cells

2. multi-skilled workers
3. reduced set up time
4. reduced mfg lead times
5. strategic supplier relationships

Question 2

JIT

Answer 2

production based on need basis

sales occur first and the production is pulled through supply chain

small lot sizes, balanced worklods

Question 3

What are the benefits of JIT?

Answer 3

eliminates excess production
reduces set up time
maintains strong supplier relationships
lost inventory carrying cost

Question 4

What are the cons of JIT?

Answer 4

1. risk of running low on inventory
2. super dept on suppliers
3. costly to implement/transition to

Question 5

What are the key benefits of outsourcing?

Answer 5

1. lets firm focus on core competencies
2. capital now used for something else besides production
3. cost effective
4. increases quality and timeliness of products and services

Question 6

What are the key challenges in outsourcing?

Answer 6

1. expensive
2. risk of losing expertise
3. risk of loss of confidentiality

Question 7

Theory of Constraints steps

Answer 7

1. ID constraint
2. exploit
3. subordinate & synchronize to constraint
4. expand the constrint
5. repeat process

Question 8

Throughput costing

Answer 8

all product costs EXCEPT DM costs are expensed as period costs

in other words: only DM are product costs!!

Question 9

Define throughput contribution

Answer 9

sales revenue - DM cost

Question 10

How is inventory defined in throughput costing

Answer 10

material cost in material, wip & FG + RD costs + costs of building & equipment

Question 11

What’s the formula for operating expenses in throughput costing?

Answer 11

all operating cost EXCEPT DM cost

Question 12

What’s capacity mgmt?

Answer 12

mgmt of a firm’s costs of unused capacity such as production facilities, distribution channels, etc

Question 13

What’s theoretical capacity?

Answer 13

NO PTO, weekends allowed for production

Question 14

What’s practical capacity?

Answer 14

Max level of capacity that the plant can efficiently operate at

Question 15

What’s lean manufacturing?

Answer 15

optimizing processes to eliminate waste and reduce inventory levels

Question 16

what’s lean resource mgmt?

Answer 16

offshoot of lean mfg that includes human capital

Question 17

List the advantages of lean method?

Answer 17

avoid machine downtime
reduce inventory costs
simplify complex goods
increased ROI
reduced space for operations
enhance customer satisfaction
improve supplier relationships

Question 18

List three measurements that TOC uses?

Answer 18

throughput contribution,
investments
operating costs

Question 19

What does supply chain mgmt involve?

Answer 19

1. manages internal & external activities related to product flow to end users
2. maximizing product value to gain competitive advantage
3. includes mgmt of R&D in products, purchasing, production, warehousing, distribution, & any other activities that affect product flow

Question 20

What are the goals of supply chain mgmt?

Answer 20

align
manage risk
add value
measure success via KPIs

Question 21

How to get units sold

Answer 21

Begn inven + completed & transfer- end = units sold