Exam 2 Flashcards
What is most important for purchasing
The right supplier
What might interrupt the flow of supply
Natural disasters, supplier quality issues, logistics interruptions, financial issues
What 4 area are supply managers experts in?
L-resources: they have to know everything about product suppliers = category analysis
2. Suppliers- can they meet buying needs and location
3. Processes - the buying, manufacturing, t logistics process
4. Technologies available
Why supply management is important
Keeps mechanisms of supply demand operating smoothly so people have aces s to goods/services
Why is procureremst important
Plays a critical role in controlling costs, minimizing financial risky and improving financial performance
Ensures organization obtains the right goods and services at the right price and quality
How can purchasing help top of the line
Helping with innovation, using capabilities of its supply base in a way that brings in the best ideas
What is wish mitigation?
Uninterrupted flow of goods
What must a procurement function first do
Understand what it is buying in order to develop appropriate strategies for each category
Where is the supply function in the supply chain
Upstream
Why is supply management important
Strategic approaches in order to make relevant value
What makes up spend analysis
Purpose, categories
How does procurement affect supply chain rush
Fire, storm, breakdown, power out
What are the strategic souring process steps
- market research
- Spend analysis 3. Portfolio analysis 4. Contract negotiation 5. Supplier relationship management
Supply portfolio analysis non critical
Focus on low cost
Spa botthenech
Ensure supply continuity
Spa strategic
Form partnership wi suppliers
Spa leverage
Maximize commercial advantage
Kragilic matrix
Variables used to segment commodities into quads of matrix
Based on purchasing Strats- contract length, importance of cost,
What is the purpose of a scorecard
To rank and monitor suppliers
Operations in supply chain
Conversion of materials and operational capacity into a product
Center of supply chain
What criteria forces trade-offs in operational design
Price, quality variety, timeliness
Order winners
Focal point of now a firm designs its operation and supply chain
Order qualifiers
Minimum criteria that must be met for costumers to consider purchasing
What should the production and inventory strategy be based on
Competitive priorities
Make to order
Chef makes tacos, construction projects, weddings
Assemble to order
Chipotle
Male to stock
Retail stores, cars from lot
Product characteristics that guide the choice of process type
Customization, output volume
Process characteristics that guide process type
Equip flexibility, employee skill level, automation
Project
Large, customized, specialized employee
Job shop
Flexible equip that can manufacture customized ex shirt shop
Batch
Bakery
Assembly line
Canned goody
Continuous
Investment capital ex: oil
Design capacity
Output with no down time
Effective capacity
Output with maintenance breaks, change over
Demonstrated capacity
Actual output. Less than effective capacity
Operational efficiency
Demonstrated capacity / effective captaincy
Capacity utilization
Dem capacity/ design capacity
Theory of constraints
Bottleneck is slowest
Littles law
Inventory = rate x time
Wip= throuput x lead time
How does volume affect transportation costs
Decreases cost
Tampering principle
