L6M8 LO2

Question 1

Types of data analytics

Answer 1

Descriptive analytics describes what happened. Used to provide reports that give historical insights into, for example, sales & finances, using visual tools (graphs, tables & pie charts)
*Used to answer:
*‘Have we spent more on a purchased item this month than last month?’ or
*‘Has the performance of a particular supplier improved or declined this quarter?’

Diagnostic analytics gives insights into why something happened, for example, why a machine broke down, or why spending exceeded the planned budget.
*It is used to identify anomalies, drill down through the data, or determine relationships between cause and effect.

Predictive analytics forecasts what will happen next. For example, it can be used to create credit ratings or forecast inventory levels.
*It uses analytical tools & techniques to find patterns in data and identify relationships between multiple factors, then provides estimates about the probability of a future event.

Prescriptive analytics improves decisions about what should be done next by helping to find the best course of action to take, based on a prediction.
For example, a GPS device can suggest the best route to take based on traffic conditions.
*This produces a number of choices together with the probability of their occurrence. By improving decision-making in this way, actions are made more effective.

Question 2

Worldwide trends & forces that are driving supply chains toward increased integration, including:

Answer 2

*Increased cost competitiveness
*Diminishing returns
*Shorter product life cycles
*Faster product development cycles
*Globalisation & customisation of product offerings
*Higher overall quality

Question 3

Benefits of integrating systems integration within supply chains

Answer 3

*Better understanding of customers & requirements of specific segments of customer base, allowing products & services to be tailored more closely to what individual customers to increase sales
* A more efficient & streamlined way of working, leading to reduced costs & increased profits
*Greater flexibility to react to changes in customer demand & timing of that demand
*Reduction in waste (and therefore costs) in both materials & time as only what is needed is sourced and used
*Vertically integrated supply chains have better quality control, lower costs to the end user and raised barriers to entry for new competitors, who would need to build the same level of integration to match the incumbents’ costs

Question 4

Cost of implementing integrating systems

Answer 4

*Time involved in training, managing & supporting employees in each of supply chain links
*Cost of software to enable integration with multiple and often incompatible systems in different links of the supply chain
*Opportunity costs from moving available investment money to supply chain integration from other business opportunities
*Risk of stoppages in production as integration gets embedded
*Risk of stoppages from unforeseen events such as power failures, storms, disruption in communications and even terrorism & computer hackers

Question 5

Quality inspection

Answer 5

physical inspection of products/ services against specification using a pre-defined checklist.

Question 6

3 Stages of Quality inspection

Answer 6

Stages.
1.Pre-production. Raw materials & components used to make are inspected. Defects now prevents more costly errors being found after production when the finished product is inspected.
2.In-production. This takes place during production stage but before manufacture has been completed. Typically, occurs once 20–60% of product has been completed.
3.Post-production or final inspection. Most common type of inspection. Takes place after product completed & before shipped to customer. Defects here are most costly to rectify & may lead to product being scrapped & new one being made.