Exam 3 Flashcards
the management of the interconnection of organizations that relate to each other through upstream and downstream linkages between the processes that produce value to the ultimate consumer in the form of products and services
supply chain management
how do information and products flow in a supply chain?
information flows upstream (LT plans and requirements, market research info., payment, etc)
Products flow downstream (products, services, new P/S, delivery information, etc.
physical shipment of products/services (NOT the same as Supply Chain Management)
logistics
What are the factors for rating alternative suppliers in the short term
range of products/services provided quality of P/S responsiveness dependability of supply total cost of being supplied ability to supply in the required quantity
What are the factors for rating alternative suppliers in the long term
potential for innovation ease of doing business willingness to share risk LT commitment to supply technical/operations/financial/managerial capability
the use of the internet to organize purchasing
e-procurement
what are the advantages to e-procurement
promotes efficiency improvements in purchasing processes
improves commercial relationships with suppliers
reduces transaction costs for suppliers
opens up the marketplace for increase competition so prices are competitive
improves ability to manage supply chain more efficiently
sourcing across national borders
global sourcing
what should you consider when using global sourcing
purchase price, transportation costs, inventory carrying costs, taxes, supply performance, risk/fines (Total cost of ownership)
type of supply relationship with many suppliers, outsource everything
virtual spot trading
type of supply relationship with a contract where you can take them to court and has an adversarial relationship
Trading market supply
type of supply relationship based on trust and has no contracts, alliances
Partnership supply relationships
type of supply relationship where you make everything themselves (oil companies)
vertical integration
if you have the need for a lean supply chain management what should be your supply chain objectives
low cost
high utilization
minimum inventory
low cost to suppliers
if you have the need for a lean supply chain management what should be your nature of demand
predictable few changes low variety stable prices long lead times low margins
if you have the need for a agile supply chain what should be your supply chain objectives
low throughput times
low utilization
deployed inventory
flexible suppliers
if you have the need for an agile supply chain what should your nature of demand look like
unpredictable many changes high variety price markdowns short lead times high margins
when no communication occurs in a supply chain so that there are huge changes between inventory and demand
the bullwhip effect
What are some strategies to mitigate the bullwhip effect
implementing visibility
reducing load times
computing inventories properly
targets for each position
brings together different functions and makes sure they’re working together for a common goal
ERP
use of computers to drive basic planning and control mathematics
- insures materials are available for production
- maintains lowest possible material and product levels
- plans manufacturing activities, delivery schedules, and purchasing activities
MRP
a list of the component parts required to make up the total package
BOM
the important schedule that forms the main input to material requirements planning, it contains a statement of the volume and timing of the end products to be made
- takes information and forecasts demand, and says when to release materials and controls flow
MPS
What is the process of MRP1
- explode the master productions schedule
- Identify what parts and assemblies are required
- Check whether the required parts and assemblies are available
- for every part/assembly required but not available by its due date
- generate that appropriate internal works and external purchase orders
- repeat the process for the next level of the BOM
the integration of all significant resource planning systems in an organization that integrates planning and control with the other function of business
ERP
What are he benefits of an ERP system
complete integration
makes changes easier to integrate
management by exception: purchase orders are automatic, unless problem
when product is scanned it goes up the entire supply chain
moving towards the elimination of all waste inorder to develop an operation that is faster, more dependable, produces higher quality products/services, and operates at low cost
Lean operations
What is the philosophy of Lean synchronization
eliminate waste, involve everyone, continuous improvement
wasteful because they do not add value to the operation or customer
Muda
What does Muda do?
consume time, resources, space and do not contribute to satisfying customer needs over production waiting time transport process inventory motion defectiveness
lack of consistency, results in periodic overloading of staff or equipment
Mura
unecessary or unreasonable requirements put on a process will have poor outcomes
Muri
What are the 5 s’s in lean operations
sort, straighten, shine, standardize, sustain
eliminate what is not needed and keep what is needed, eliminate unnecessary items = things that are not needed for current work
Sort
position things in such a way that they an be found quickly
Straighten
keep thins clean and tidy, no refuse or dirt in the work area
shine
maintain cleanliness and order perpetual neatness
standardize
develop a commitment and pride in keeping to standards
sustain
focuses on the value adding activities and distinguishes between value adding and non-value adding activities
value stream mapping
What are the components of value stream mapping
wast is a large part of most processes
delivering smaller quantities more often can reduce inventory levels
large machines can have long/complex setup times make big batches which creates waste
several small machines allows simultaneous processing and more robust and flexible production
example of typical batch processing
traffic lights
single piece flow
roundabout
a field that uses computers, stats, and math to solve business problems
Management Science
a set of math relationships and logical assumptions implemented in a computer as an abstract representation of a real world object of phenomenon
Computer modeling
what is the most convenient way for business people to build computer models
spreadsheets
what are the benefits to computer modeling
Economy, timeliness, and feasibility
arise when trivial factors influence initial thinking about a problem
anchoring effects
refers to ho decision makers view a problem from a win loss perspective
framing effects
