Intro to SCM Flashcards
Supply Chain
Global network used to deliver products and services from raw materials to end customers through a flow of info, physical distribution, and cash
Service Industry
An organization that provides an intangible product
Supply Chain Management (SCM)
The design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, competitiveness, leveraging logistics, balancing supply and demand, and measuring global performance.
Upstream
Movement in the direction of the raw material supplier
Downstream
Movement in the direction of the end customer
3 Primary Flows in SC
- Flow of info
- Flow of cash
- Flow of materials/services
Value Chain Analysis
Examination of all links companies use to produce and deliver its products and services (End to End process)
Logistics
Subset of SC that controls the forwards and reverse movement, handling, and storage of goods between origin and distribution points
Risk Management
Identification, assessment, and prioritization of risks followed by application of resources to minimize, monitor, and control probability/impact of events
Bullwhip Effect
An extreme change in the supply position upstream generated by a small change in demand downstream
What causes the bullwhip effect?
Nature of communicating orders up the chain with the inherent transportation delays of moving product down the chain
Value
Something which customers are willing to pay for
Operations Management
Planning, scheduling, and control of activities that transform inputs into finished goods/services
Materials Management
Supports the complete cycle of material flow, from the purchase and internal control of materials to warehousing, shipping, and distribution
Customer Service
The ability of a company to address the needs, inquiries, and requests of customers
Demand Lead Time
The amount of time potential customers are willing to wait for the delivery of a good or service
Manufacturing Planning and Control (MPC)
Encompasses high-level planning, master scheduling, MRP, and execution control along with checks on available capacity.
Logistics
Responsible for incoming physical supply and outgoing physical distribution
Order Qualifiers
Competitive characteristics that a firm must exhibit to be a viable competitor in the marketplace
Order Winner
Competitive characteristics that cause a firm’s customers to choose that firm’s goods and services over those of its competitors
Corporate Social Responsibility
Voluntary efforts by a firm to balance the needs of the organization against those of society
Reason why product life cycles are shrinking
Order winners quickly become order qualifiers as competitors adopt them
Sustainability
Organizational focus on activities that provide present benefit without compromising the needs of future generations
UN Global Impact
Voluntary initiative whereby companies embrace, support, and enact a set core of values in the areas of human rights, labor standards, the environment, and anticorruption
HEAL
Human rights, environment, anti-corruption, labor
Strategic Plan
How to determine and enact the actions required to support the mission, goals, and objectives of an organization. Focus is on the long-term
Product Differentiation
Making a product distinct from the competition on a nonprice basis
Business Plan
Statement of long-range strategy and revenue, cost, and profit objectives accompanied by evidence.
Categories of Functional Area Performance Objectives
Speed, Dependability, Flexibility, Quality, Cost
SMART Objectives
Goals that are specific, measurable, attainable, realistic, and timely
What-If Analysis
Evaluating alternate strategies by answering the consequences of changes to forecasts, manufacturing plans, inventory levels, etc.
Tactical Plans
Set of functional plans that synchronize activities across functions that aid in achieving the intermediate goals and objectives to support the organizations strategic plan
Performance Standard
The accepted, targeted, or expected value for the criterion
Key Performance Indicator (KPI)
A Measure that is used to define and assess progress toward specific goals and is tied to an organization’s strategy and business stakeholders
Supply Chain Operations Reference model (SCOR)
Describes the business activities associated with satisfying a customer’s demand
Balanced Scorecard
List of financial and operational measurements used to evaluate organizational or supply chain performance
3 Important balanced scorecard perspectives
- Customer - ensures focus stays on customer
- Business process - helps measure cost/efficiencies and boast CI
- Innovation/Learning - helps spur investment in future growth
Participative Design/Engineering
The simultaneous participation of all the functional areas in the firm in the product design activity. Often includes suppliers/customers
Fixed Cost
Expenditure that does not vary with the production volume (ie rent)
Variable Cost
Operating cost that varies directly with a change of one unit in the production volume
Make-or-Buy Decision
Deciding whether to produce an item internally or buy it from an outside supplier
Outsourcing
Having suppliers provide the goods/services that were previously provided internally
Subcontracting
Sending production work outside to another manufacturer
Scrap
Material outside of specifications and possessing characteristics that make rework impractical
Customer Relationship Management (CRM)
Software utilized to aid in account and order management so that anyone who has contact w/ the customer can be brought up to speed quickly
