Lecture 1 Flashcards
Most organizations function as a part of a larger supply chain.
TRUE or FALSE?
TRUE
Which activities belong to Operations Management (3)
- Planning
- Scheduling
- Control
of activities that transform inputs into finished goods and services
What are the goals of Supply Chain Management?
- maximize customer value
* achieve a sustainable competitive advantage
Supply Chain (definition)
= a network of manufacturers and service providers that work together to create products or services needed by end-users.
Through what are manufacturers and service providers in a supply chain linked? (3)
- physical flows
- information flows
- monetary flows
Upstream
Activities or firms positioned earlier in the supply chain
Downstream
Activities or firms positioned later in the supply chain
First-tier supplier
A supplier that provides products or services directly to a firm
Second-tier supplier
A supplier that provides products or services to firm’s first-tier supplier
What does SCOR stand for?
Supply Chain Operations Reference
Which activities are part of the SCOR model (5)
- planning activities
- sourcing activities
- “make” or production
- delivery activities
- return activities
Planning activities (SCOR) seek to….
…balance demand requirements against resources and communicate these plans to the various participants
Sourcing activities (SCOR) include…
… identifying, developing, and contracting with suppliers and scheduling the delivery of incoming goods and services.
“Make” or production activities (SCOR) cover…
…the actual production of a good or service.
Delivery activities (SCOR) include…
… everything from entering customer orders and determining delivery dates to storing and moving goods to their final destination.
Return activities (SCOR) include…
…the activities necessary to return and process defective or excess products or materials
Logistics
Transport and storage solutions, part of supply chain
Operations
Similar to supply chain, has a sense of immediacy, oftend used in job titles
Mission Statement
A statement that explains why an organization exists. It describes what is important to the organizations, called its core values and identifies the organization’s domain
Strategy
A mechanism by which a business coordinates its decisions regarding structural and infrastructural elements
Different types of strategies (3)
- Business Strategy
- Core Competency
- Functional Strategy
Business Strategy
= the strategy that identifies a firm’s targeted customers and sets time frames and performance objectives for the business
Core Competency
= an organizational strenght or ability, developed over a long period, that customers find valuable and competitors find difficult or even impossible to copy
Functional Strategy
= a strategy that translates a business strategy into specific actions for functional areas such as marketing, human resources and finance
Structural Decision Categories (3)
- Capacity
- Facilities
- Technology
Capacity (Structural Decision Category)
= amount, type, the timing of capacity changes
Facilities (Structural Decision Category)
= services/manufacturing, warehouses, distribution hubs, size, location, degree of specialization
Technology (Structural Decision Category)
= services/manufacturing processes, material handling equipment, transportation equipment, information systems.
Infrastructural Decision Categories (3)
- Organization
- Sourcing decisions and purchasing process
- Planning and control
Organization (Infrastructural Decision Category)
structure, control/reward systems, workforce decisions
Sourcing decisions and purchasing process (Infrastructural Decision Category)
sourcing, strategies, supplier, selection, supplier performance measurement
Planning and control (Infrastructural Decision Category)
Forecasting, tactical planning, inventory management, production planning and control
Performance Dimensions (4)
- Quality
- Time
- Flexibility
- Cost
Different Quality Performance Dimension (3)
- Performance quality
- Conformance quality
- Reliability Quality
Performance quality
addresses the basic operating characteristics of a product or service
Conformance quality
addresses whether a product was made or a service performed to specifications
Reliability quality
addresses whether a product will work for a long time without failing or requiring maintenance
Different Time Performance Dimensions (3)
- Delivery speed
- Delivery reliability
- Lead Time
Delivery Speed
How quickly the operations or supply chain function can fulfull a need once it has been identified
Delivery Reliability
The ability to deliver products or services when promised
Delivery Window
the acceptable time range in which deliveries can be made
Lead Time
The time between the initiation and completion of a production process
Different Flexibility Performance Dimensions (3)
- Mix flexibility
- Changeover flexibility
- Volume flexibility
Mix Flexibility
The ability to produce a wide range of products or services
Changeover Flexibility
The ability to produce a new product with minimal delay
Volume Flexibility
The ability to produce whatever volume the customer needs
Different Cost Performance Dimensions (4)
- Labor costs
- Material costs
- Engineering costs
- Quality-related costs
