EXAM 1 Flashcards
SCOR STANDS FOR?
SUPPLY CHAIN OPERATIONS REFERENCE
MY ORGANIZATION DEFINITION
FOCAL FIRM
DIRECT SUPPLIER TO FOCAL FIRM DEFINITION
1ST TIER SUPPLIER
DIRECT SUPPLIER TO 1ST TIER SUPPLIER
2ND TIER SUPPLIER
DIRECT CUSTOMER TO FOCAL FIRM
1ST TIER CUSTOMER
DIRECT CUSTOMER OF 1ST TIER CUSTOMER
2ND TIER CUSTOMER
2 ELEMENTS
STRUCTURAL INFRASTRUCTURAL
INFRASTRUCTURAL ELEMENT DEFINITION
CULTURE & OPERATIONAL PRACTICES
4 PART FLOW OF STRATEGY DEVELOPMENT
OPS & SUPPLY CHAIN STRATEGY DEFINITION
SUPPORTS BUSINESS STRATEGY BY DECIDING ACQUISITIONS & DEVELOPMENT
3 OBJECTIVES OF OPS & SUPPLY CHAIN STRATEGIES
- CHOOSE CORRECT ELEMENTS BASED ON CUSTOMERS & TRADE-OFFS
- ENSURE ELEMENTS ALIGNED WITH BUSINESS STRATEGY
- DEVELOP CORE COMPENTENCIES
3 STRUCTURAL DECISIONS & TRADEOFFS
- CAPACITY
- FACILITIES
- TECHNOLOGY
5 INFRASTRUCTURAL DECISIONS & TRADEOFFS
- ORGANIZATION
- SOURCING/PURCHASING
- PLANNING & CONTROL
- BUSINESS PROCESSES & QUALITY MANAGEMENT
- PRODUCT & SERVICE DEVELOPMENT
4 PERFORMANCE DIMENSIONS
- QUALITY
- FLEXIBILITY
- TIME
- COST
3 QUALITY MEASUREMENTS
- PERFROMANCE QUALITY
- CONFORMANCE QUALITY
- RELIABILITY QUALITY
3 FLEXIBILITY MEASUREMENTS
- MIX FLEXIBILITY
- CHANGEOVER FLEXIBILITY
- VOLUME FLEXIBILITY
2 TIME MEASUREMENTS
- DELIVERY SPEED
- DEVILIVERY RELIABILITY
5 COST MEASUREMENTS
- LABOR COSTS
- MATERIAL COSTS
- ENGINEERING COSTS
- QUALITY RELATED COSTS
- OVERHEAD ALLOCATION
STRADDLING DEFINITION
COMPETITION WITHIN ALL PERFORMANCE DIMENSIONS
PERFORMANCE DIMENSIONS PRIORITIZATION CONCEPT
EXCEL IN DIMENSIONS HIGHLY VALUED BY CUSTOMERS
2 PERFORMANCE DIMENSIONS ORDERS
- ORDER WINNERS
- ORDER QUALIFIERS
ORDER WINNERS DEFINITION
MARKET SHARE DRIVER, HIGHLY PREFERRED BY CUSTOMERS OVER COMPETITORS
ORDER QUALIFIERS DEFINITION
MINIMIMUM CUSTOMER EXPECTATIONS
4 ALIGNMENT STAGES
- INTERNALLY NEUTRAL
- ESTERNALLY NEUTRAL
- INTERNALLY SUPPORTIVE
- EXTERNALLY SUPPORTIVE
ALIGNMENT STAGE 1 DEFINITION
NOT LINKED TO BUSINESS STRATEGY
ALIGNMENT STAGE 4 DEFINITION
DEVELOP CHAIN CORE COMPETENCIES
ALIGNMENT STAGE 2 DEFINITION
FOLLOW INDUSTRY BEST PRACTICES
ALIGNMENT STAGE 3 DEFINITION
CHAIN ALIGNS WITH BUSINESS STRATEGY
5 STRATEGIC OPERATING MODELS FRAMEWORK STEPS
- DIVIDE MARKETS INTO ORDER WINNERS/QUALIFIERS
- IDENTIFY SEGMENT/S TO ENTER
- TRANSLATE WINNERS/QUALIFIERS TO PROCESS REQUIREMENTS
- DESIGN PROCESS TO MEET REQUIREMENTS
- DESIGN INFRASTRUCUTURE TO SUPPORT PROCESSES
___ seeks to be the preeminent professional association providing worldwide leadership for the evolving logistics profession through the development, dissemination, and advancement of logistics knowledge
CSCMP
5 AREAS OF SCOR
- PLANNING
- SOURCING
- MAKE/PRODUCTION
- DELIVERY
- RETURN
3 TRENDS
- AGILITY
- INFORMATION TECHNOLOGIES
- PEOPLE
CSCMP STANDS FOR
Council of Supply Chain Management Professionals
___ describes itself as “The Association for Operations Management.” It is a widely recognized professional society for persons interested in operations and supply chain management. ___ currently has more than 67,000 members and 250 chapters throughout the United States and its territories.
APICS
APICS STANDS FOR
Association for Operations Management
___ provides national and international leadership in purchasing and materials management, particularly in the areas of education, research, and standards of excellence
ISM
ISM STANDS FOR
Institute for Supply Management
___ is the planning, scheduling, and control of the activities that transform inputs into finished goods and services
OPERATIONS MANAGEMENT
CUSTOMER VALUE INDEX DEFINITION
OVERALL VALUE OF PRODUCT TO CUSTOMERS
3 STRUCTURAL ELEMENTS
- BUILDINGS
- EQUIPMENT
- COMPUTER SYSTEMS
4 INFRASTRUCTURAL ELEMENTS
- POLICIES
- PEOPLE
- DECISION RULES
- ORGANIZATIONAL STRUCTURE
4 Performance Dimensions
- Quality
- Time
- Flexibility
- Cost
mix flexibility DEFINITION
the ability to produce a wide range of products or services
the ability to provide a new product with minimal delay
changeover flexibility DEFINITON
volume flexibility DEFINITION
the ability to produce whatever volume the customer needs
4 Stages of Alignment with the Business Strategy
- INTERNALLY NEUTRAL
- EXTERNALLY NEUTRAL
- INTERNALLY SUPPORTIVE
- EXTERNALLY SUPPORTIVE
performance quality DEFINITION
What are the basic operating characteristics of the product or service?
conformance quality DEFINITION
Was the product made or the service performed to specifications?
reliability quality DEFINITION
Will a product work for a long time without failing or requiring maintenance? Does a service operation perform its tasks consistently over time?
4 FORECAST TYPES
- DEMAND
- SUPPLY
- PRICE
- ECONOMIC
4 LAWS OF FORECASTING
§Law 1: Forecasts are almost always wrong (but still useful)
§Law 2: Short term forecasts tend to be more accurate than longer term forecasts.
§Law 3: Forecasts for Groups (categories) of Products or Services tend to be more accurate than forecasts for specific products or services.
§Law 4: Forecasts are not a substitute for Calculated Values. Only use forecasting when a more reliable method is not available.
8 STEPS IN FORECASTING
- Determine how the forecast will be used
- Select the values to forecast
- Determine the planning time horizon of the forecast
- Select potential forecasting model(s)
- Gather historical data from which to forecast
- Calculate forecasts using forecasting model(s)
- Evaluate forecast accuracy & choose a forecasting model
- Make future predictions based upon the forecasting model
3 FORECAST PLANNING TIME HORIZONS
- LONG RANGE FORECAST (ASSET ACQUISITION)
- MEDIUM RANGE FORECAST (ASSET UTILIZATION)
- SHORT RANGE FORECAST (ASSET EXECUTION)
3 ASPECTS OF LONG RANGE FORECASTING
§Yearly planning bucket
§3-10 years planning horizon
§New product planning, facility construction, technology
3 ASPECTS OF MEDIUM RANGE FORECASTING
§Monthly/Quarterly planning bucket
§3 months to 2 years planning horizon
§Seasonal production, inventory, employment, budgeting
3 ASPECTS OF SHORT RANGE FORECASTING
§Weekly/Monthly planning bucket
§1-26 week planning horizon
§Job scheduling, worker assignments, inventory stocking
5 QUALITATIVE FORECASTING METHODS
- MARKET SURVEYS
- PANEL CONSENSUS FORECASTING
- DELPHI METHOD
- LIFE CYCLE ANALOGY METHOD
- BUILD UP FORECASTS
MARKET SURVEYS DEFINITION
§Structured questionnaires or market research panels
§Experts meet together to develop forecasts
PANEL CONCENSUS FORECASTING DEFINITION
DELPHI METHOD DEFINITION
Experts develop forecasts separately & then revise
§Modeling growth and decline based upon similar products
a qualitative forecasting technique that attempts to identify the time frames and demand levels for the introduction, growth, maturity, and decline life cycle stages of a new product or service
LIFE CYCLE ANALOGY METHOD DEFINITION
BUILD UP FORECASTS DEFINITION
§Market Segment experts develop forecasts that are added together
6 TIME SERIES MODEL QUANTITATIVE FORECASTING APPROACHES
§Last Period or Naïve Forecast
§Moving Average
§Weighted Moving Average
§Exponential Smoothing
§Adjusted Exponential Smoothing*
§Linear Regression*
2 CASUAL MODEL QUANTITATIVE FORECASTING APPROACHES
§Linear Regression*
§Multiple Regression*
THIS REPRESENTS WHAT TYPE OF FORECASTING?
Moving Average FORECASTING
THIS REPRESENTS WHAT TYPE OF FORECASTING?
Weighted Moving Average FORECASTING
2 FORECAST ERROR BIASES
- POSITIVE BIAS
- NEGATIVE BIAS
POSITIVE FORECAST BIAS DEFINITION
Positive RSFE indicates that demand exceeded the forecast over time. Forecasts with positive bias will eventually cause stockouts
NEGATIVE FORECAST BIAS DEFINITION
Negative RSFE indicates that demand was less than the forecast over time. Forecasts with negative bias will eventually cause excessive inventory.
FORMULA FOR ___?
FORECAST ERROR
FORMULA FOR ___?
RUNNING SUM OF FORECAST ERROR
MEAN ABSOLUTE % ERROR FORMULA
RSFE STANDS FOR
RUNNING SUM OF FORECAST ERRORS
CPFR STANDS FOR
Collaborative Planning,
Forecasting, and Replenishment
S&OP STANDS FOR
SALES AND OPERATIONS PLANNING
S&OP DEFINITION
INTEGRATING MARKETING PLANS FOR PRODUCTS WITH MANAGEMENT OF SUPPLY CHAIN
S&OP TOP DOWN PLANNING DEFINITION
S&OP in which a single, aggregated sales forecast drives the planning process
S&OP Bottom-up planning DEFINITION
An approach to S&OP that is used in which forecasts for each set of products or services combine to drive the planning process
Planning values DEFINITION
Values that decision makers use to translate a sales forecast into resource requirements and to determine the feasibility and costs of alternative sales and operations plans
S&OP Level production plan DEFINITION
A S&OP plan in which production is held constant and inventory is used to absorb differences between production and the sales forecast
S&OP Chase production plan DEFINITION
A S&OP plan in which production is changed in each time period to match the sales forecast
S&OP Mixed production plan DEFINITION
A S&OP plan that varies both production and inventory levels in an effort to develop the most effective plan
S&OP Rolling planning horizon DEFINITION
A planning approach
in which an organization updates its sales and
operations plan regularly, such as on a monthly
or quarterly basis
Yield management DEFINITION
An approach that services commonly use with highly perishable “products” in which prices are regularly adjusted to maximize total profit
Tiered workforce DEFINITION
A strategy used to vary workforce levels, in which additional full-time or part-time employees are hired during peak demand periods, while a smaller permanent staff is maintained year-round
Offloading DEFINITION
A strategy for reducing and smoothing out workforce requirements that involves having customers perform part of the work themselves
__________ tracks the average size of the errors, regardless of direction.
mean absolute deviation (MAD)
MFE MEASURES ___?
the bias of a forecast model, or the propensity of a model to under- or overforecast
Causal Models DO WHAT?
demand is predicted by observing environmental factors such as economic indicators
MAD STANDS FOR
MEAN ABSOLUTE DEVIATION
MSE STANDS FOR
MEAN SQUARED ERROR
MAPE STANDS FOR
mean absolute percentage error
DETAILED PLANNING AND CONTROL DEFINITION
planning that covers time periods ranging from weeks down to just a few hours out
3 PHASES OF S&OP
