Lecture 2

Question 1

What’s the value chain?

Answer 1

It’s about understanding a firms competitive advantage, competitive advantage is the ability to outperform rivals on the primary performance goal, porters framework distinguished between primary and support activities

Value chain analysis operates by disaggregate great the firms functions at board level and finer levels

Question 2

What is porters framework?

Answer 2

Distinguishes between primary and support activities, improving each part to improve product for customer

Question 3

What are the support activities of porters value chain?

Answer 3

Firm infrastructure, human resource management, technology development, procurement

Question 4

What is firm infrastructure?

Answer 4

Includes general management, planning, finance, accounting, legal, government affairs and quality management.

Question 5

What is human resource management?

Answer 5

Activities involved in the recruitment, hiring, training development and compensation of all types of personnel.

Affects competitive advantage in every firm through determining skills and motivation

Question 6

What is technology development?

Answer 6

Every activity embodies technology

Technology may be involved in the product, or in the production and management of the product and associated processes

Question 7

What is procurement?

Answer 7

Refers to the function of purchasing inputs used in the firms value chain, applies to raw materials and capital purchases

Question 8

What are cost drivers associated with?

Answer 8

Improving value to the ultimate user

Question 9

What are drivers of uniqueness associated with?

Answer 9

Making them fit the needs of the customer better

Question 10

What is supply chain integration?

Answer 10

Alignment and interlinking of business processes

Embodies various communication channels and linkages within a supply network.

Integration is possible without collaboration

Integration is an enabler of collaboration

Question 11

What is collaboration?

Answer 11

A relationship between supply chain partners developed over a period of time

Is dependant on the provision of mutual benefit, in supply chains mutual benefit between suppliers is difficult to achieve
Trust becomes an issue

Question 12

What is a functional organisation?

Answer 12

All activities working along side each other

Question 13

What is a matrix organisation?

Answer 13

All activities working along side each other, all concerned with different products

Question 14

What is a product/process oriented organisation?

Answer 14

People involved in each product specifically associated with each activity

Question 15

What is mode 1 of integration?

Answer 15

(internal integration). Within one organisation, trying to get activities to work better together

To integrate communications and informed systems to optimise there effectiveness and efficiency

Can be achieved by structuring the org and the implementation of information systems for improved communication and information sharing

Non-value adding activity are minimised, costs are reduced, lead times are reduced, service quality improved, functional silos are reduced

Question 16

What is external integration?

Answer 16

EDI (electronic data interchange) is a key enabler of supply chain integration

It streamlines information sharing and processing

Effective and efficient organisational design is a prerequisite

Keiretsu : original equipment manufacturers work closely with their first tier suppliers to integrate manufacturing, logistics and information processes, which is passed upstream

Enables JIT
LEAN supply chain created

Question 17

What is the prisoners dilemma?

Answer 17

Do you trust your partner to make the same decision as you?

Question 18

What are the two dimensions of collaboration applied to transport management?

Answer 18

Learn diagram

Question 19

What are the 3 supply chain collaboration methods and why do we need collaboration?

Answer 19

Supply base rationalisation, supply chain collaboration, aggregated procurement

Suppliers competing for the same order creates supply chain inefficiencies, this will drive down prices, unrealistic promises, lose their focus on service and quality

Question 20

What is supply base rationalisation?

Answer 20

A response to market pressures

Suppliers who are not directly competing against each other for individual orders are more likely to collaborate

Easier for OEM to work with few selected suppliers

Question 21

What is supplier development?

Answer 21

Can improve integration and collaboration (keiretsu)

Shift from thinking competitively to collaboratively

Enables integrated order processing application for aggregated procurement

Question 22

What is aggregated procurement?

Answer 22

Specific suppliers selected based on capabilities

Each supplier gains a share of the total orders based on their ability to deliver on time and to specification

Overall supply base improves, reducing the likelihood of future rationalisation

Question 23

What is CPFR?

Answer 23

Collaborative planning, forecasting and replenishment

Three modes: basic, developed and advanced

Question 24

What is basic CPFR?

Answer 24

Limited number of business processes integrated between a limited number of supply chain partners

Question 25

What is developed CPFR?

Answer 25

Involve a greater number of data exchanges between two partners, and may extend to suppliers taking responsibility for replenishment on behalf of the customer

Question 26

What is advanced CPFR?

Answer 26

Goes beyond data exchanges to synchronise forecasting information systems and coordinate planning and replenishment process

Question 27

What’s VMI?

Answer 27

Vendor managed inventory

An holistic view of inventory levels taken throughout the supply chain

A single point of control for all inventory management

A vendor manages stock replenishment at their facility

Enables supply to more accurately and precisely meet demand

Question 28

What is inbound logistics?

Answer 28

Activity associated with receiving, storing and disseminating inputs to the product, such as material handling, warehousing, inventory control, vehicle scheduling and return to supplier