Material supply, products, production layouts Flashcards
What could be the consequences of having a large number of suppliers?
- Lack of consistent supplier strategy
- Lack of standardized articles & low community
- Secure future material supply
What are the traditional strategies regarding the number of suppliers?
- Multiple sourcing
- Large number of suppliers
What could be the consequences of having reduced number of suppliers?
- The importance of partnership relationships is increasing
- Use of system vendors
- Standardization of the article range
- Increase in the degree of communality
How does companies decide how many suppliers they need?
The 2 main strategies are:
- Multiple sourcing: having many suppliers
- Single sourcing: only having 1 supplier per component
Other strategies:
- Sole sourcing: If just 1 supplier “exists” (critical component),
you don’t have any other options
- Hybrid sourcing: The supplier have 1 main/primary
component it supplies, but it can supply other parts aswell
What are the different supplier distances? And what factors to keep in mind?
- Geographical distance (Spatial dimension):
- Transport costs
- Delivery times
- Quantity & frequency of deliveries
- Delivery flexibility
- Partnership cooperation
- Distance in timezone
- Working hours
- Holidays
- Vacations
- Cultural distance
- Language
- Behaviour
- Information exchange
What are the steps of the 3M Flow strategy? (What categories is the inbound material divided into?)
- Batch supplies: Parts are delivered from local suppliers or pick-up points
- Modules & Sequenced supplies: from a nearby facility
- Small parts supplies operated by one supplier
What are the two types of supplier relation types? Explain these
Arm’s length:
- Competitive
- Win/Lose
- Power struggle
Partnership:
- Collaborative
- Win/Win
- Supply chain competitiveness
Describe the suppliers pyramid. Explain the different types of suppliers.
(From bottom to top)
Conventional suppliers:
- One-off
- Frequent
- No evaluation
Associated suppliers:
- Periodic review
- Collaboration
Partnership suppliers:
- Periodic review
- Collaboration
- Information sharing
- Joint ventures
Traditional supplier relationship
- Large batches (EOQ)
- Arrival check
- Occasional contacts in connection with ordering. Only buyers & sellers
- Supplier receives information about future demand via order
Partner relationship
- Smaller batches & more frequent
- Quality assured
- Frequent contacts, joint meetings. Not just buyers & sellers
- Supplier receives continuous information about future
demand - Uses the supplier’s expertise in development work
Define
a) Item/Article
b) Products
c) Product groups
d) Product range
a) Raw materials, components, manufactured parts, semi-finished products
b) Phenomenon that is sold & delivered to the customer (Physical products, Services)
c) Product similar from a manufacturing point of view
d) The company’s total range of products
What are the consequences of having a reduced number of products?
- Fewer articles
- Easier to forecast
- Easier control
- Lower capital tied up
- Economies of scale
How could a company reduce its number of products?
- Liquidate products that are no longer reason to market
- ABC analysis, declining gross margin
What is a Bill Of Material (BOM)? And when is it used?
- Specification of how products & articles are structured and/or manufactured
- Basis for product calculation
- Prerequisite for certain material planning methods
Used when reserving materials when ordering
What could be the consequences of reducing the number of articles (article number)?
- Less complexity, better overview
- Less work effort
- Better delivery ability
- Lower capital tied up
