Lecture 3 Flashcards
What is the top down perspective on strategy?
Corporate, business Unit and Functional strategy
What is the lean supply strategy?
low levels of inventory
faster process
A pull system referred to as JIT
reduces/eliminates waste
Level production (neither idle time or surges in demand)
What is the agile supply strategy?
Designed to cope with volatility (designed for max flexibility)
Demand chain
Promotes Mass customisation
postponement production
What are the seven wastes?
Overproduction, waiting, transportation, inappropriate processing, unnecessary inventory, unnecessary motion, defects
What is managed inventory?
supplier takes responsibility for inventory management
Data sharing is key
fits JIT strategy
What is mass customisation?
Enabled by postponement
different product configurations contain a majority of shared components and features to accommodate volume and variety
Whats the best strategy for long lead time and predictable demand?
Lean (plan and execute)
predictable demand
Whats the best strategy for Long lead time and unpredictable demand?
Leagile (postponement)
lean up to decoupling point then agile
Whats the best strategy for short lead time and predictable demand?
Lean (continuous replenishment)
supplier takes responsibility for stock replenishment
steady demand patterns become more apparent
Whats the best strategy for short lead time and unpredictable demand?
Agile (Quick response)
postponed production
supply needs to respond quickly to changes in demand
What is the Pareto principle?
80% of margin produced by 20% of product
What are the critical factors to consider in SC planning?
Living SC: they evolve with learning
Focus on processes and flows: info and commodity
Focus on high level obj: what outcome is required
The importance of people: SC cannot be mechanised
How to decide which model to adopt?
Predictable demand?, lead time, market characteristics, etc
