Exam #1 Flashcards
What are trends in Business Process Frameworks?
Increased use of AI & automation
Greater focus on sustainability
Enhanced data analytics for decision-making
List one of the three types of business processes?
Core Processes – Directly related to delivering value.
What is one of the main phases of Business Process Management (BPM)?
Design – Defining and mapping out the process.
Managing production processes efficiently to meet customer demand.
Manufacturing Flow Management (MFM)
A model integrating key business processes to drive value and operational efficiency.
Business Process Framework
Why is supply chain management for service providers more complex?
Focuses on human resources and support services rather than physical goods.
More compact and less extended than manufacturing supply chains.
How does BPM support scalability in organizations?
By providing structured and automated processes that allow businesses to grow efficiently.
List one of the six primary characteristics of a transformation system
Effectiveness
List of one of the four benefits of process reengineering
Increased agility.
What is one out of the six key goals of Lean Six Sigma?
Identify what creates value for customers
Faster processing times
Higher customer satisfaction
Reduced operational costs
key benefits of Order Fulfillment
How does Artificial Intelligence (AI) enhance BPM?
AI can optimize decision-making, automate complex processes, and provide predictive analytics for process improvements.
What is one of the five stages of the business process management lifestyle?
Monitor – Tracking performance.
A sustainable supply chain that reduces waste, improves efficiency, and minimizes environmental impact.
Green Supply Chain
Why is sustainability important in supply chain management?
It reduces environmental impact, improves brand reputation, and meets regulatory requirements.
What is the Cost of Quality?
Control Costs (Achieving Good Quality)
Failure Costs (Poor Quality)
What is 1 out of the 5 key SCOR performance metrics?
Asset Management – Return on supply chain assets.
List one out of the five main goals of Business Process Optimization (BPO)
Enhance customer satisfaction.
What is one of the common BPM tools and technologies?
Process mapping tools.
Standardizing processes ensures consistency, improves efficiency, and makes it easier to monitor and optimize workflows.
What is Process Standardization
What are failure costs?
Internal Failure Costs – Scrap, rework
External Failure Costs – Warranty claims, lost sales
How does Big Data help in supply chain management?
It enables better demand forecasting, risk management, and operational efficiency through data-driven insights.
List one of the six primary characteristics of a transformation system
Capacity
Aligning product demand with supply through forecasting and inventory optimization.
Demand Management (DM)
How does BPM contribute to digital transformation?
By integrating modern technologies such as AI, cloud computing, and automation to enhance efficiency and decision-making.
How does cloud computing support supply chain management?
It provides real-time data access, enhances collaboration, and improves operational efficiency.
What is one of the four key elements of business processes?
Activities – Tasks performed (e.g., packing, shipping).
What are one out of the six types of transformation processes?
Informational – Communication services
What are common BPM governance challenges?
Lack of executive support.
Resistance to change.
Poor communication.
Insufficient training.
The process of receiving, processing, and delivering customer orders.
Order Fulfillment (OF)?
What is a challenge when implementing BPM?
Complexity of process redesign.
What is Six Sigma?
A process improvement method aimed at reducing defects to 3.4 defects per million opportunities (DPMO).
What are one out of the six types of transformation processes?
Physiological – Healthcare services
Increased use of AI and automation
Greater focus on sustainability
Enhanced data analytics for decision-making
trends in Business Process Frameworks
What is one of the 5 Phases of Six Sigma (DMAIC)?
Measure – Collect process data
List one out of the five characteristics of an effective business process
Measurable goals and outcomes.
What is one of the 5 Phases of Six Sigma (DMAIC)?
Control – Sustain improvements
A systematic approach to improving an organization’s workflows for efficiency, customer satisfaction, and profitability.
Business Process Management (BPM)
Managing relationships with suppliers to ensure cost-effective, reliable supply chains.
Supplier Relationship Management (SRM)
Improved Efficiency – Real-time inventory tracking (H&M).
Cost Reduction – Waste reduction (Procter & Gamble).
Better Customer Satisfaction – Faster deliveries (FedEx).
Increased Agility – Quick response to disruptions (Apple).
benefits of integrating BPM with Supply Chain Management (SCM)
What is one of the three types of business processes?
Management Processes – Oversee and control business operations (e.g., budgeting).
What is one of the three types of business processes?
Core Processes – Directly related to delivering value (e.g., product manufacturing).
What is one out of the four key elements of business processes?
Inputs – Resources required (e.g., inventory data, customer orders).
What is Product Development (PD)?
Developing new ways to satisfy or improve the business relationship with the customer.
What is the benefit of “Designing for Postponement” in supply chains?
Reduces the chance of marketing mistakes by delaying movement or provision until the last moment.
What are common supply chain issues in the service industry?
Inventory visibility problems
Order processing delays
Supplier management challenges
Logistics & distribution inefficiencies
Customer experience management issues
Regulatory compliance concerns
What is Operations Management?
The design, operation, and improvement of productive systems that transform inputs into outputs of greater value.
What is one of the four key elements of business processes?
Outputs – Results of the process (e.g., delivered product).
List one of the six primary characteristics of a transformation system
Response Time
How does BPM improve decision-making?
By providing real-time data, process transparency, and analytics-driven insights.
What is Agile Supply Chain Management?
A flexible supply chain strategy that quickly adapts to changes in demand and market conditions.
What is a challenge when implementing BPM?
Integration with existing systems.
What is 1 out of the 5 key SCOR performance metrics?
Reliability – Perfect order fulfillment.
What are the key facts about Supply Chain Management?
Supply chain costs often represent 50% or more of total operating costs.
Supply chain strategy should align with customer needs, not just cost reduction.
What is a cyber-physical system in supply chain management?
A system that integrates physical supply chain operations with digital technologies for improved monitoring and automation.
What is Reverse Logistics?
The process of managing returns, repairs, recycling, and disposal of products in the supply chain.
What are the inputs and outputs of productivity?
Inputs: Labor hours, equipment investment, materials
Outputs: Products produced, sales made, customers served
What are the characteristics of a Cell Form (Batch Production - Group Layout) system?
Combines job shop flexibility with flow shop efficiency
Uses cross-trained teams and grouped equipment
Example: Samsung’s microchip manufacturing
What is one of the four main components of BPMN?
Artifacts – Data objects, annotations, and groups.
List one of the six primary characteristics of a transformation system
Efficiency
What are the benefits of optimizing Business Processes?
Increased efficiency
Cost savings
Improved quality
Higher customer satisfaction
What is Collaborative Planning, Forecasting, and Replenishment (CPFR
A method where two or more supply chain partners synchronize their demand forecasts into a single plan.
Helps in reducing stockouts and excess inventory.
What are the Dimensions of Quality in Services?
Timeliness, Completeness, Courtesy, Consistency, Accessibility/Convenience, Accuracy, Responsiveness
What are examples of External Failure Costs?
Product returns
Warranty claims
Lost customer trust
What are common types of waste in business processes, according to Lean principles?
Overproduction.
Waiting time.
Unnecessary transportation.
Excess inventory.
Unnecessary motion.
Over-processing.
Defects and errors.
What is the traditional view of a supply chain, and how does it differ from reality?
Traditionally seen as a static, linear structure, but in reality, it is a dynamic network of entities.
List one of the benefits of optimizing business processes
Customer Satisfaction – Ensuring the output meets customer expectations.
What are the main contributors to supply chain uncertainty?
Inaccurate demand forecasting
Long variable lead times
Late deliveries
Incomplete shipments
Product changes
Batch ordering
Price fluctuations & discounts
Customer segmentation
Touchpoints and retention strategies
Customer analytics
Key components of CRM
The use of technology to automate repetitive tasks and streamline business processes.
Workflow Automation in BPM?
What are the advantages Flow Shop?
Bulk purchasing, lower labor costs, low inventories, simplified control
What are common challenges in BPM implementation?
Resistance to change – Employees prefer existing processes.
Lack of visibility – Poor monitoring leads to inefficiencies.
Complexity in integration – New systems may not fit easily.
Resource constraints – Requires investment in tools & training.
What is one of the 5 Phases of Six Sigma (DMAIC)?
Improve – Implement solutions
What is one of the main phases of Business Process Management (BPM)?
Modeling – Creating a visual representation.
What is process mapping, and why is it important?
A visual representation of a business process that helps identify inefficiencies and areas for improvement.
What is a challenge when implementing BPM?
Need for continuous improvement.
List one of the benefits of optimizing business processes
Improved Quality – Aligning processes with customer desires.
What is a swimlane diagram in BPM?
A flowchart that visually separates process steps into different roles or departments for clarity.
What is the difference between lean and agile supply chains?
Lean focuses on efficiency and waste reduction, while agile prioritizes flexibility and responsiveness.
What are the core topics in Operations & Quality Management?
Operations Strategy
Process Design and Improvement
Workforce Management & Productivity
Performance Measurement & Continuous Improvement
Quality Planning & Assurance
Customer Satisfaction & Feedback
Total Quality Management (TQM)
Six Sigma Process Improvement
Lean Six Sigma
ISO Standards & Certifications
How does postponement strategy benefit supply chains?
It allows companies to delay product movement or final assembly to adapt to demand changes, reducing excess inventory and marketing errors.
List one of the key performance indicators (KPI) used in BPM
Cost per process.
Coordinated workflow & operations.
Improved production efficiency.
Faster market penetration.
Adoption of new technologies.
key elements of Supply Chain Integration
What is the Facilitating Good Concept?
It classifies all organizations as service providers, with the tangible part of the service considered the facilitating good.
Managing production processes to meet customer demand efficiently.
Manufacturing Flow Management (MFM)
What is one of the 5 Phases of Six Sigma (DMAIC)?
Analyze – Determine root cause
List one of the key performance indicators (KPI) used in BPM
Productivity levels.
List one of the six primary characteristics of a transformation system
Quality
List one out of the five characteristics of an effective business process
Alignment with business strategy.
List one out of the five main goals of Business Process Optimization (BPO)
Increase profitability.
What are one out of the three main types of Transformation Systems?
Flow Shop (Mass Production - Product Layout)
What is the bullwhip effect in supply chain management?
A phenomenon where small demand fluctuations at the consumer level cause larger fluctuations upstream in the supply chain.
What is an examples of Business Processes?
Budgeting Process: Allocating funds across company departments.
What is a Business Process (BP)?
A set of structured activities or tasks that produce a specific service or product for a customer or market, aimed at achieving organizational goals.
What are one out of the three main types of Transformation Systems?
Cell Form (Batch Production - Group Layout)
List of one of the four benefits of process reengineering
Enhanced customer satisfaction.
List one of the six primary characteristics of a transformation system
Flexibility
Customer segmentation
Retention strategies
Personalized customer experiences
key components of customer relationship management
Process Mapping – Identifying inefficiencies.
Automation – Using software to improve efficiency.
Continuous Improvement – Applying Lean principles.
Employee Training – Improving skills for faster operations.
common ways to improve Business Processes
What role does coordination play in supply chain management?
It ensures that various entities (suppliers, manufacturers, distributors, and retailers) work together efficiently to optimize performance.
Managing customer relationships to enhance satisfaction and loyalty.
Customer Relationship Management (CRM)
List one out of the five characteristics of an effective business process
Efficient resource allocation.
List one of the key performance indicators (KPI) used in BPM
Customer satisfaction score.
What are the core topics in Business Process Management (BPM)?
Process Mapping and Documentation
Process Improvement and Optimization
Business Process Modeling (BPM)
Process Automation
Process Performance Measurement
Risk Management in Business Processes
Supply Chain and Operations Processes
Process Governance and Compliance
Cross-Functional Integration
Business Process Reengineering (BPR)
A model that integrates key business processes across an organization to improve efficiency and value creation.
Business Process Framework
What is a challenge when implementing BPM?
High implementation costs.
What are smart contracts, and how do they impact supply chains?
Digital contracts that automate transactions and improve transparency using blockchain technology.
Return policies and procedures
Reverse logistics and restocking
Customer communication
key components of Returns Management
What is the difference between structured and unstructured business processes?
Structured Processes – Predefined, repetitive workflows with clear steps (e.g., order processing).
Unstructured Processes – Dynamic, unpredictable workflows that require human intervention (e.g., crisis management).
How does BPM improve employee engagement?
By streamlining tasks, reducing manual work, and providing clearer role definitions.
Production planning
Resource allocation
Quality control
key components of MFM
What is one out of the six key goals of Lean Six Sigma?
Map the value stream
List 1 out of the 4 major trends in Supply Chain Management
Improved Information Flow – Enhanced data sharing across the supply chain.
What is one of the five stages of the business process management lifestyle?
Optimize – Making further improvements.
Improved operational efficiency
Enhanced customer satisfaction
Increased profitability
Better decision-making
Key benefits of business process management
Why is technology integration important in modern supply chains?
It enhances visibility, automation, and decision-making, leading to better efficiency and cost reduction.
What is one of the 5 Phases of Six Sigma (DMAIC)?
Define – Identify the problem
What is one of the four key elements of business processes?
Stakeholders – People involved (e.g., customers, staff).
What are the key components of MFM?
Production planning
Resource allocation
Quality control
What is Customer Service Management (CSM)?
The set of activities needed to maintain and properly operate the business relationship with the customer.
What is one out of the five stages of the BPM lifecycle?
Design – Mapping out the process.
Competitive advantage
Revenue growth
Better alignment with customer needs
benefits of Product Development
What are the key flows in a supply chain?
Material flow, information flow, and financial (cash) flow.
List 1 out of the 4 major trends in Supply Chain Management
Outsourcing Manufacturing – Companies shifting production to external firms.
What is the role of automation in BPM?
Automation helps streamline tasks, reduce human error, improve speed, and enhance accuracy in business processes.
What is “Design for Logistics” in SCM?
Making the movement or provision of a product/service easier to enhance delivery efficiency.
What are some examples of supply chain entities?
Suppliers, manufacturers, distributors, retailers, and customers.
What is one of the common BPM tools and technologies?
Workflow automation software.
What is the significance of “flow” in supply chain management?
It ensures the smooth movement of raw materials, products, information, and financial transactions across the supply chain.
List one out of the five main goals of Business Process Optimization (BPO)
Improve productivity.
What is Design for Logistics?
Postponement and delayed differentiation.
Economic packaging & transportation strategies.
Standardization and modularity in product design.
What is a Business Process (BP)?
A set of structured activities or tasks, logically linked and sequenced, performed to achieve a specific goal.
What is one of the main phases of Business Process Management (BPM)?
Monitoring – Tracking process performance.
List one of the three types of business processes?
Management Processes – Oversee both core and support processes.
What is one out of the four key elements of business processes?
Stakeholders – People impacted (e.g., customers, warehouse staff).
What is workflow automation?
The use of technology to automatically execute business processes with minimal human intervention.
The process of receiving, processing, and delivering customer orders.
Order Fulfillment (OF)
What is Omnichannel Supply Chain Management?
A strategy that integrates multiple sales and distribution channels to provide a seamless customer experience.
List one of the key trends in Supply Chain Management?
Industry 4.0 – IT-driven technologies like Big Data, AI, Cyber-Physical Systems, and Cloud-based applications.
What is an example of Postponement Strategy in supply chains
Benetton – Producing “grey stock” that is dyed later.
HP – Postponing printer configuration.
Dell – Assemble-to-order model instead of pre-assembling stock.
What is Demand-Driven Supply Chain Management?
A strategy that aligns supply chain operations based on real-time customer demand signals.
Supply Chain Operations Reference (SCOR) Model is a standardized framework for supply chain management, maintained by the Supply Chain Council.
SCOR model
What is Lean Supply Chain Management?
A strategy focused on minimizing waste and improving efficiency in the supply chain.
Resistance to change
Lack of process visibility
Complexity in integration
Resource constraints
common challenges in the business process management
What is a Business Process (BP)?
A set of structured activities or tasks that produce a specific service or product for a particular customer or market, aimed at achieving organizational goals.
List one out of the five characteristics of an effective business process
Clearly defined steps and responsibilities.
What is Lean Six Sigma?
A combination of Lean principles (waste reduction) and Six Sigma (process optimization) to improve efficiency.
What is the purpose of Business Process Modeling Notation (BPMN)?
To provide a standardized way to visually document and analyze business processes.
What is Supplier Relationship Management (SRM)?
The set of activities needed to support the business relationship established with the customer.
What are the key benefits of Order Fulfillment?
Faster processing times
Higher customer satisfaction
Reduced operational costs
What are the characteristics of a Flow Shop (Mass Production) system?
High volume, low variety
Uses automated, special-purpose equipment
Sequential production layout
Example: Toyota, Ford
How does Quality Management impact productivity?
Fewer defects = Increased output
Quality improvement = Reduced input costs
What is one out of the six key goals of Lean Six Sigma?
Continuously improve efficiency
What are internal failure costs?
Costs from defects before delivery
What is one of the five stages of the business process management lifestyle?
Model – Simulating bottlenecks.
Why is inventory important in supply chain management?
It protects against negative consequences of unplanned events.
List one of the three types of business processes?
Support Processes – Indirectly support core processes.
What is Returns Management (RM)?
Handling all issues related to a dissatisfied customer.
List one of the four key components of supply chain management
Logistics – Movement & storage of goods (e.g., Amazon).
What are the benefits of SRM?
Reduced supply chain risks
Improved supplier performance
Cost savings & innovation
A phenomenon where small demand fluctuations at the customer level cause amplified demand variations upstream in the supply chain.
Bullwhip Effect in SCM
What are one out of the six types of transformation processes?
Exchange – Retail operations
List one of the benefits of optimizing business processes
Increased Efficiency – Doing things better.
What are one out of the six types of transformation processes?
Physical – Manufacturing operations
What is one out of the six key goals of Lean Six Sigma?
Remove waste from the process
What are the core topics in Supply Chain Management (SCM)?
Supply Chain Strategy
Demand Forecasting/Planning
Inventory Management
Procurement/Sourcing
Logistics/Distribution Management
Manufacturing/Operations
Supply Chain Technology
Risk Management
Sustainability & Ethics
Performance Measurement & Improvement
What is one of the four main components of BPMN?
Swimlanes – Pools and lanes for different participants.
A point in a process where the flow of work is slowed down due to limited capacity or inefficiency.
What is a bottleneck in BPM
List one of the key performance indicators (KPI) used in BPM
Process cycle time.
Reducing waste through quality programs.
Improving fuel efficiency in transportation.
Using eco-friendly packaging.
Implementing energy-efficient facilities.
key strategies for a Green Supply Chain
Process Mapping – Identifying inefficiencies.
Automation – Using software for efficiency.
Continuous Improvement – Lean principles.
Employee Training – Increasing productivity.
Common methods fro improving business processes
What are the disadvantages Flow Shop?
Difficult to change output rate, worker boredom, vulnerable to breakdowns
List one of the key trends in Supply Chain Management?
Sustainability – Economic, Environmental, and Social aspects.
The process of designing and launching new products based on market demand.
Product Development (PD)
What is Robotic Process Automation (RPA) in BPM?
The use of software robots to automate repetitive and rule-based business tasks.
List one of the benefits of optimizing business processes
Cost Savings – Reducing expenses.
What is one of the three types of business processes?
Core Processes – Directly deliver value (e.g., Product Manufacturing).
What are challenges of integrating BPM with SCM?
Managing multi-tier global supply chains (e.g., Zara).
Poor communication between departments (e.g., Unilever).
Demand forecasting risks (e.g., Target).
Supplier quality & delivery issues (e.g., Intel).
What is one of the main phases of Business Process Management (BPM)?
Optimization – Improving efficiency based on data analysis.
What is supply chain visibility, and why is it important?
The ability to track materials, products, and information throughout the supply chain to improve responsiveness and efficiency.
What is a challenge when implementing BPM?
Resistance to change.
What are one out of the six types of transformation processes?
Psychological – Entertainment industry
What is the role of cloud computing in BPM?
It enables remote access, scalability, and real-time collaboration in business process management.
What is one of the three types of business processes?
Support Processes – Indirectly support core processes (e.g., IT Support).
What is the main risk of Just-In-Time (JIT) inventory systems?
Supply chain disruptions can cause stockouts and production delays due to minimal buffer inventory.
Delaying final product configuration until the latest possible point in the supply chain to cut costs and improve service.
Postponement Strategy in supply chains
What is one of the common BPM tools and technologies?
Enterprise Resource Planning (ERP) software.
Enterprise Resource Planning (ERP) software integrates all supply chain components and facilitates information sharing across the organization.
SCM Software and its role
What is Resilient Supply Chain Management?
A supply chain strategy designed to handle disruptions and recover quickly from unexpected events.
How can companies reduce the bullwhip effect?
By improving demand forecasting, sharing real-time data, reducing lead times, and using inventory management strategies.
What are the disadvantages of Job Shop?
Slower production, higher costs, difficult management
What are appraisal costs?
Costs related to inspection & testing
What are the three main concepts of Supply Chain Management (SCM)?
Flow of raw materials, information, and cash; Coordination of entities; Delivery of a product or service.
What are one out of the six types of transformation processes?
Locational – Transportation & warehousing
How does integrating BPM with Supply Chain Management (SCM) benefit businesses?
Improved Efficiency – Real-time inventory tracking (e.g., H&M).
Cost Reduction – Less packaging waste (e.g., Procter & Gamble).
Better Customer Satisfaction – Faster deliveries (e.g., FedEx).
Increased Agility – Adaptability to disruptions (e.g., Apple).
How does “Industry 4.0” impact Supply Chain Management?
It integrates advanced technologies like Big Data, AI, and cloud computing to improve efficiency, automation, and decision-making.
What is the role of data analytics in BPM?
It provides insights into process performance, identifies inefficiencies, and supports decision-making.
List one of the four key components of supply chain management
Production – Manufacturing goods in multiple locations (e.g., Toyota).
What industries benefit the most from BPM?
Healthcare.
Finance.
Retail.
Manufacturing.
Logistics.
What is 1 out of the 5 key SCOR performance metrics?
Agility – Flexibility to meet demand changes.
List one of the four key components of supply chain management
Procurement – Sourcing raw materials & components (e.g., Apple).
What is one of the five stages of the business process management lifestyle?
Design – Mapping out the process.
What are the two perspectives of Quality?
Customer’s Perspective – Fitness for use, price
Producer’s Perspective – Production process efficiency, cost
List one of the key elements of a business process
Outputs: The result of the process.
What is one of the common BPM tools and technologies?
Customer Relationship Management (CRM) systems.
What is 1 out of the 5 key SCOR performance metrics?
Responsiveness – Order fulfillment cycle time.
What is Product Development (PD)?
The process of designing and launching new products based on market demand.
What is Manufacturing Flow Management (MFM)?
Managing the technical aspects of delivering the “promises” made to the customer.
What is Business Process Management (BPM)?
A systematic approach to automating the sequenced tasks that compose a business process, primarily in terms of transactions.
List one of the four key components of supply chain management
Distribution – Delivering products to customers (e.g., Nike).
What are the key components of Returns Management?
Return policies & procedures
Reverse logistics & restocking
Customer communication
List one out of the five main goals of Business Process Optimization (BPO)
Streamline operations.
What are the characteristics of a Job Shop (Batch Production) system?
Low volume, high variety
Uses general-purpose equipment
Process layout based on function
Example: Custom furniture (Ethan Allen)
What is the difference between BPM and Business Process Reengineering (BPR)?
BPM focuses on continuous process improvement.
BPR involves completely redesigning processes for radical improvement.
What are examples of Business Processes?
Order Fulfillment: Customer places an order → system checks availability → warehouse picks & packs → shipping → customer receives product.
What are the benefits of Product Development?
Competitive advantage
Revenue growth
Better alignment with customer needs
Managing customer interactions to enhance satisfaction, loyalty, and sales growth.
Customer Relationship Management (CRM)
Dynamic, unpredictable workflows that require human intervention (e.g., crisis management).
More flexible and depend on human decision-making.
Unstructured Processes
What are common supply chain issues in the manufacturing industry?
Inventory shortages
Order fulfillment delays
Supplier reliability issues
Poor demand forecasting
Logistics & transportation inefficiencies
Overstocking inventory
Supply chain disruptions
What is one of the five stages of the business process management lifestyle?
Execute – Implementing changes.
What are examples of Internal Failure Costs?
Scrap materials
Rework labor costs
Process failure analysis
List one of the key performance indicators (KPI) used in BPM
Error rate.
How does BPM impact employee productivity?
By reducing repetitive tasks, streamlining workflows, and allowing employees to focus on higher-value activities.
What is Productivity in operations?
Productivity = Output / Input
What are external failure costs?
Costs from defects after delivery
What are some strategies to manage supply chain risks?
Diversifying suppliers, maintaining buffer inventory, improving demand forecasting, and using technology for real-time tracking.
What are the advantages of Job Shop?
High flexibility, easier maintenance, less vulnerability to breakdowns
What is the impact of supply chain uncertainty?
It can cause delays, increase costs, and lead to inefficiencies, making inventory management crucial for mitigating risks.
Why is supply chain design crucial for businesses?
A well-designed supply chain improves efficiency, reduces costs, and enhances customer satisfaction.
Reduced supply chain risks
Better supplier performance
Cost reductions and innovation
benefits of supplier relationship management
List of one of the four benefits of process reengineering
Reduced costs.
What is Demand Management (DM)?
Understanding the qualitative and quantitative needs of the customer.
What is one out of the five stages of the BPM lifecycle?
Optimize – Making further improvements.
How do Lean and Six Sigma methodologies relate to BPM?
Lean focuses on reducing waste and improving efficiency.
Six Sigma focuses on reducing process variation and improving quality.
Managing global/multi-tier supply chains
Poor communication between departments
Demand variability and supply chain risks
Supplier delays and quality issues
challenges of integrating SCM with BPM
What are one out of the three main types of Transformation Systems?
Job Shop (Batch Production - Process Layout)
What is one of the four main components of BPMN?
Flow Objects – Events, tasks, and gateways.
What is one out of the five stages of the BPM lifecycle?
Monitor – Tracking performance.
What is the relationship between BPM and customer experience?
A well-optimized process leads to faster service delivery, fewer errors, and higher customer satisfaction.
What is the role of Artificial Intelligence (AI) in supply chain management?
AI enhances demand forecasting, automation, and decision-making in supply chain operations.
What is a Business Process Framework?
A reference model that facilitates the implementation of a business process approach.
What are control costs?
Prevention Costs – Design improvements
Appraisal Costs – Inspection & testing
List one of the key elements of a business process
Inputs: What is going to be transformed.
What are the two types of issues in supply chain management?
Hard/technical-related issues and soft/human-related issues.
What does “sustainability” mean in supply chain management?
Addressing economic, environmental, and social concerns while maintaining efficient operations.
How do supply chain issues differ between the manufacturing and service industries?
They involve the same issues but with different degrees of complexity.
The process of handling product returns efficiently to maintain customer satisfaction.
Returns Management (RM)
What is one of the four key elements of business processes?
Inputs – Required resources (e.g., customer orders, inventory).
What is one of the three types of business processes?
Support Processes – Indirectly support core processes (e.g., IT support).
List 1 out of the 4 major trends in Supply Chain Management
Outsourcing Logistics – Third-party logistics providers managing transportation & storage.
What is Customer Service Management (CSM)?
Ensuring high-quality customer service to improve loyalty and retention.
What is process standardization in BPM?
The practice of creating uniform procedures across the organization to improve consistency and efficiency.
What is one out of the five stages of the BPM lifecycle?
Model – Simulating bottlenecks.
What are examples of Appraisal Costs?
Operator testing time
Equipment for quality checks
Final product inspections
What is one out of the five stages of the BPM lifecycle?
Execute – Implementing changes.
Ensuring quality customer service to build loyalty and satisfaction.
Customer Service Management (CSM)
What is one out of the four key elements of business processes?
Outputs – Results of the process (e.g., shipped products).
What is one of the main phases of Business Process Management (BPM)?
Execution – Implementing the process.
What is the difference between Business Process Improvement (BPI) and BPM?
BPI focuses on incremental enhancements to existing processes.
BPM involves a broader, systematic approach to managing and automating processes.
List 1 out of the 4 major trends in Supply Chain Management
Web-Based Transactions – Increasing reliance on digital commerce.
What are the benefits of optimizing business processes?
Increased Efficiency
Cost Savings
Improved Quality
Higher Customer Satisfaction
What is Order Fulfillment (OF)?
The act of delivering the “promises” made to the customer.
What are key components of Demand Management?
Forecasting & planning
Inventory optimization
Collaboration with sales/marketing
A visual representation of the steps, activities, and decision points in a business process.
What is a Business Process Model
How does integrating SCM with Business Processes benefit organizations?
It enhances efficiency, cost savings, quality, and customer satisfaction, similar to optimizing business processes.
Handling product returns efficiently to maintain customer satisfaction.
Returns Management (RM)
A systematic approach to making an organization’s workflow more efficient and effective.
Business Process Management (BPM)
What company successfully implemented BPM?
Nike – Streamlined order processing and inventory management to reduce lead times and improve on-time deliveries.
What are the core topics in Business Process Management (BPM)?
Process Mapping and Documentation
Process Improvement and Optimization
Business Process Modeling (BPM)
Process Automation
Process Performance Measurement
Risk Management in Business Processes
Supply Chain and Operations Processes
Process Governance and Compliance
Cross-Functional Integration
Business Process Reengineering (BPR)
What are the Dimensions of Quality in Manufacturing?
Performance, Features, Reliability , Conformance, Durability, Serviceability , Aesthetics, Safety, Perceptions
What is Vendor-Managed Inventory (VMI)?
A system where suppliers manage inventory levels for their customers to optimize stock availability.
Forecasting product demand and optimizing inventory to meet customer expectations.
Demand Management (DM)?
List of one of the four benefits of process reengineering
Improved efficiency.
What is process mining in BPM?
A technique that uses data analytics to discover, monitor, and improve real business processes.
What are the key objectives of Business Process Management (BPM)?
Improve efficiency.
Reduce costs.
Enhance quality.
Increase customer satisfaction.
Ensure compliance with regulations.
What is Just-In-Time (JIT) inventory management?
A strategy that minimizes inventory levels by receiving goods only as they are needed for production or sales.
What are examples of prevention costs?
Quality planning
Training programs
Process improvements
What are prevention costs?
Costs incurred before production
How can organizations ensure continuous improvement in BPM?
By regularly monitoring processes, analyzing data, implementing feedback, and using automation where applicable.
What is Customer Relationship Management (CRM)?
The set of activities needed to establish a business relationship with a customer.
How does BPM help with regulatory compliance?
By ensuring processes are well-documented, transparent, and standardized to meet industry regulations.
What is one out of the four key elements of business processes?
Activities – Tasks performed (e.g., picking and packing items).
List one out of the five characteristics of an effective business process
Adaptability to change.
The coordination and integration of materials, information, and financial flows across a network of suppliers, manufacturers, and distributors to efficiently manage production and delivery of products.
Supply Chain Management (SCM)
How do service supply chains differ from manufacturing supply chains?
Service supply chains deal more with intangible elements, making coordination and timing even more critical.
List one out of the five main goals of Business Process Optimization (BPO)
Reduce waste and inefficiencies.
What is one of the three types of business processes?
Management Processes – Oversee business operations (e.g., Budgeting).
What is a Business Process Model and Notation (BPMN)?
A standardized graphical notation used to visualize business processes in a clear and structured manner.
List one of the key elements of a business process
Stakeholders: Whoever is impacted by the process.
What are the benefits of an effective Returns Management process
Improved customer trust
Cost-effective returns processing
Enhanced brand loyalty
What is one of the four main components of BPMN?
Connecting Objects – Sequence flows, message flows, and associations.
What is one out of the six key goals of Lean Six Sigma?
Align process with customer needs
What is 1 out of the 5 key SCOR performance metrics?
Costs – Supply chain management costs.
Predefined, repetitive workflows with clear steps (e.g., order processing).
Follow a predefined, repeatable sequence of steps.
Structured Processes
What is one of the common BPM tools and technologies?
Data analytics platforms.
Managing supplier relationships to ensure efficiency, cost-effectiveness, and reliability.
Supplier relationship management (SRM)
Demand forecasting
Inventory optimization
Collaboration with sales and marketing
key components of Demand Management
What are the benefits of Supply Chain Integration?
Reduced Bullwhip Effect – More accurate demand forecasting.
Lower Costs – Reduced logistics, material, and operational expenses.
Faster Response – Early problem detection.
Improved Customer Service – Higher on-time delivery rates.
What are the core topics of product/service design?
Product/Service Conceptualization
Customer Needs and Requirements Analysis
Design and Development Process
Design for Manufacturability (DFM) & Serviceability (DFS)
Sustainability and Environmental Design
Quality Function Deployment (QFD)
Design for Cost (DFC)
Prototyping and Simulation
Innovation and Technology Integration
Life Cycle Management and Product Evolution
List one of the classifications of a product
Consumer Product
What are consumer products?
Convenience (frequent purchase)
Shopping (compare options)
Specialty (unique, brand preference)
List one of the two classifications of products
Industrial Products
What is an industrial product?
Used by organizations to produce goods/services
What are the stages of the product life cycle
Introduction
Growth
Maturity
Decline
What is the difference between order qualifiers and order winners?
Order Qualifiers: Minimum characteristics needed to enter a market.
Order Winners: Characteristics that lead to a customer purchase.
What is order qualifiers?
Minimum characteristics needed to enter a market.
What is order winners?
Characteristics that lead to a customer purchase.
List one of the three key product life cycle strategies
First-to-Market Strategy:
Launch before competitors
Requires strong research capability
List one of the three key product life cycle strategies
Second-to-Market Strategy:
Quick imitation of first movers
Focus on development over research
List one of the three key product life cycle strategies
Cost Minimization/Late-to-Market Strategy:
Wait for market standardization
Compete on cost, not features
What are the elements of product design?
Form Design (Appearance)
Functional Design (Performance)
What is functional design?
Reliability
Maintainability
Usability
List one of the key strategies in production design?
Simplification: Reduce parts, assemblies, options
List one of the key strategies in production design?
Standardization: Use common, interchangeable parts
List one of the key strategies in production design?
Modular Design: Use standardized modules for customization
List one of the key strategies in production design?
Design for Manufacture (DFM): Ensure easy and economic production
What is Value Analysis (VA)?
Eliminates unnecessary features/functions
Conducted by multifunctional design teams
Goal: Increase Value/Cost ratio
What is Quality Function Deployment (QFD)?
A structured method translating customer needs into engineering characteristics
Ensures customer satisfaction by aligning design with demand
What are the key components of the House of Quality (HoQ)?
Customer Needs (“Whats”)
Technical Requirements (“Hows”)
Relationship Matrix
Importance Ratings
Competitive Assessment
What are key characteristics of services?
Inseparable from delivery
Decentralized and dispersed
Consumed frequently
Easily copied
Intangible
Variable output
High customer contact
Perishable
What is service design?
A multidisciplinary approach to improving services with a focus on user experience and efficiency.
Why is service design important?
Enhances customer satisfaction and loyalty
Increases efficiency and reduces costs
Creates competitive advantage
List one of the four key principles of service design
User-Centered: Focus on user needs/experience
List one of the four key principles of service design
Holistic: Consider the entire service ecosystem
List one of the four key principles of service design
Co-Creation: Involve stakeholders in the process
List one of the four key principles of service design
Iterative: Continuously improve based on feedback
List one of the five stages of the service design process
Research: Understand user needs, market trends
List one of the five stages of the service design process
Ideation: Brainstorm and refine solutions
List one of the five stages of the service design process
Prototyping: Develop and test service concepts
List one of the five stages of the service design process
Implementation: Launch the final service
List one of the five stages of the service design process
Evaluation: Gather feedback and iterate
List one of the four key tools and techniques in service design
Service Blueprinting: Mapping customer touchpoints and back-end processes
List one of the four key tools and techniques in service design
Personas: Creating user profiles for decision-making
List one of the four key tools and techniques in service design
Journey Mapping: Visualizing the entire customer experience
List one of the four key tools and techniques in service design
Prototyping: Testing concepts with real users
List one of the four key stakeholders in service design
Customers (Drive design through their needs)
List one of the four key stakeholders in service design
Partners (Suppliers, tech providers, collaborators)
List one of the four key stakeholders in service design
Management (Aligns service design with business goals)
List one of the four key stakeholders in service design
Service Providers (Employees delivering the service)
What is one of the four major challenges in service design?
Complexity: Managing multiple touchpoints
What is one of the four major challenges in service design?
Alignment: Keeping stakeholders on the same page
What is one of the four major challenges in service design?
Resource Constraints: Time, budget, personnel limitations
What is one of the four major challenges in service design?
Consistency: Ensuring quality across all touchpoints
What is one of the three main types of consumer products?
Convenience Products – Frequently purchased, minimal effort (e.g., groceries).
What is one of the three main types of consumer products?
Shopping Products – Compared based on price/quality (e.g., electronics, clothing).
What is one of the three main types of consumer products?
Specialty Products – Unique, brand loyalty (e.g., luxury watches, high-end cars).
What is the Sand Cone Model in operations management?
A theory that suggests companies should develop capabilities in a sequential order:
- Quality → 2. Dependability → 3. Speed → 4. Cost Efficiency
List one of the four competitive priorities in operations strategy?
Cost – Lean production, cost structure optimization.
List one of the four competitive priorities in operations strategy?
Speed – Time-based competition, quick delivery.
List one of the four competitive priorities in operations strategy?
Quality – Conformance to specifications, minimizing defects.
List one of the four competitive priorities in operations strategy?
Flexibility – Ability to adapt to changing needs, customization.
What is the difference between form and functional design?
Form Design: Focuses on appearance and aesthetics.
Functional Design: Ensures product performance, including reliability, maintainability, and usability.
List one of three key aspects of production design
Simplification – Reducing number of parts and assemblies.
List one of three key aspects of production design
Standardization – Using interchangeable parts.
List one of three key aspects of production design
Modular Design – Using standard modules for unique combinations.
A method of designing products for easy and cost-effective manufacturing.
Design for Manufacture (DFM)
A structured process for translating customer needs into technical design specifications.
Quality Function Deployment (QFD)
What is the purpose of Value Analysis (VA)?
Identify and eliminate unnecessary features.
Improve product value while reducing costs.
What are the key steps in the QFD process?
Identify customer needs (Whats).
Identify technical requirements (Hows).
Prioritize needs and technical requirements.
Develop and test the product.
What are the benefits of using QFD?
Improves product quality.
Reduces time to market.
Enhances cross-functional collaboration.
Increases customer satisfaction.
A matrix used in QFD to map customer needs to engineering specifications.
House of Quality (HoQ)
What are the four key components of the House of Quality?
Customer Needs (“Whats”)
Technical Requirements (“Hows”)
Relationship Matrix
Competitive Assessment
What are the main characteristics of services?
Inseparable from delivery.
Intangible.
High customer contact.
Perishable.
Easily replicated.
List one of the four main principles of service design
User-Centered – Focus on user experience.
List one of the four main principles of service design
Holistic – Consider the full service journey.
List one of the four main principles of service design
Co-Creation – Involve multiple stakeholders.
List one of the four main principles of service design
Iterative – Continuously refine based on feedback.
List one of the five stages of the service design process
Research – Understand user needs.
List one of the five stages of the service design process
Ideation – Brainstorm solutions.
List one of the five stages of the service design process
Prototyping – Test new ideas.
List one of the five stages of the service design process
Implementation – Deploy the service.
List one of the five stages of the service design process
Evaluation – Gather feedback and improve.
A technique for mapping customer touchpoints and back-end processes in service delivery.
Service blueprinting
A tool to visualize the complete customer experience and identify pain points.
journey mapping
What are personas in service design?
Fictional customer profiles that help tailor service offerings.
What is one of the four main stakeholders in service design?
Customers – Their needs drive design.
What is one of the four main stakeholders in service design?
Partners – Suppliers, tech providers, etc.
What is one of the four main stakeholders in service design?
Management – Aligns service with strategy.
What is one of the four main stakeholders in service design?
Service Providers – Employees delivering the service.
What is an example of a company using service design well?
Amazon: Focuses on a fast, personalized shopping experience.
Uber: Reimagined transportation with an intuitive app and predictable pricing.
What is an example of co-creation in service design?
Airbnb: Involves both hosts and guests in shaping policies and features.
What is an example of holistic service design?
Zappos: Easy website navigation + 365-day return policy.
