om exam Flashcards
cycle time
- measure of efficiency
interval between completion of successive units / customers in a process
bullwhip effect
the further you go upstraem in a supply chain the more customer demand for supplies is perceived.
- occurs when inventories are maintained between
the members of the supply chain and there is slow communication between them
assemble to order supply chain
- consumer has limited # of choices
- pick and choose among various standard components to customize product
- ex. cars and computers
- demand vary with economic cycle
- forecasting done my manufacturer
- standardized compoenents produced in appropraite batch sizes and then assembled
- push and pull elements. pull bc assembled with order arrives
- push because compoennst must be available ahead of time
forward / downstream integration
– Organizations of the distribution (customer) side of the firm’s supply chain
cause - and efffect / fishbone
- basic quality tool
used to
identify the causes that lead to a particular outcome or effect. - major categories of causes are identified then each cause why is asked until root cause 4 category identified
IDENTIFY SOURCES OF ERROR
productivity
measure of efficiency
- how mcuh work is done per period of time by a resource
outputs / inputs
technical quality / defect rate
- measure of effectiveness
- customers cannot correctly aces because tehy do not have technical knowledge to do so
- monitored by professionals who provide the service
employee satisfaction
measure of effectivness
- employee turnover, absenteeism, interviews - indicators
sales volume and market share
measure of customer satisfaction
- market share - percentage of total sales for a service attributed to a particular service org.
product dimensions of quality
PPRADS CF perceived quality performance reliability aesthetics durability serviceability
conformance
features
main measures of efficiency
capacity utilization
cycle time
throughput time
productivity
anaylize - six sigma
perform causal analysis - identify the root cuases of the probs
process flow diagram symbols
tasks - circles/ rectangles
flows - arrows
storages (customer weights) - inverted triangles
decision points - diamons
line of internal interaction
interactions between employees who work directly w customer and those who work in the back of the house
(backstage and onstage)
supply chain management
the way a firm interacts with its suppliers to provide highquality
materials, components, and services that are competitively priced.
yield
measure of effectiveness and efficiency
- number of good outputs / total number of inputs
service : number of sales / number of sales calls)
service levels
- measure of customer satisfaction
how quickly customers are served, phone calls answered, emails responded to)
inbound logistics
the delivery of goods and services that are purchased from suppliers and/or their
distributors.
demand forecast updating
- cause of the bullwhip effect
- When each member of the supply chain develops its forecast based only on the
orders of its immediate customer
ex. retailers overaggerate forecasts to protect against unforeseen surges in demand
competitive priorities list
service delivery flexibility cost quality
responsiveness
dimension of SERVICE quality
- willingness of service providers to help customers and to provide prompt service
process flow charts
- basic quality tool
depict the steps required to produce either a
good or a service
DEFINE THE PROCESS
order batching
cause of the bullwhip effect
- to reduce fixed ordering costs supply chain emmbers order in large batches REGARDLESS OF REAL DEMAND
NPS
- measure of customer satisfaciton
- how likely are you to recommend our company toa friend or relative
- percentage of promoters - percenage of detractors
scatterplots
- basic quality tool
how the relationship between two measured (not counted) variables - ex. understand relatinonship between how long
customers wait to have their orders taken and how satisfied they are with their service.
assurance
dimension of SERVICE quality
- knowledge and courtesy of employees, ability to convey trust and confidence
ex. accountant knowing what he’s doing
bar charts
- basic quality tool
nominal data. can be categorized and counted, not measured
DISPLAY DATA
5 main dimensions of SERVICE quality
RRATE responsiveness reliability assurance tangibles empathy
checksheets
- basic quality tool
tool used for collecting data on some process by counting event occurrences. - categories should be mutually exclusive and collectively exhaustive
COLLECT DATA
structural operations decisions
location
capacity
vertical integration
process technology
BUILD to stock supply chain
- end consumer has no inidvidual input into configuration fo the product
- high volume, low profit margin, commodity type
- demand is stable. forecast accurately
- push product
- supply chain driven by forecast for end product
capacity utilization
- measure of efficiency
- how much of available capacity is being used
- capacity required / capacity available
customer satisfaction
measure of effectiveness - customer retention / lost - new customers - service levels - sales volume + market share, NPS Complaints
rationing and shoratge gaming
cause of bullwhip effect
When there is a supply shortage, retailers and distributors often tend to
exaggerate their orders to ensure that they will receive at least some merchandise from the manufacturer
- leads to multiple problems, because the manufacturer experiences unrealistic demand volumes and
must decide how to ration its limited supply of products among its customers. may even invest in unnedded capacity to meet fake demand
outbound logistics
the delivery of goods and services that are sold to a firm’s customers and/or their
distributors.
quality management (operational decision)
decide how quality will be defined, measured, and monitored.
pareto charts
- basic quality tool
specialized bar charts that show the frequency of occurrence of items sorted in descending
order - ex useful for establishing priorities for action, focusing attention on the categories of variables
that occur most frequently
PRIORITIZE ERRORS.
line of visibility
separates the front of the house from the back of the house
structural decisions definition
relate to brick and mortar issues
customer satisfaction equation
perception - expectations
quality
effectiveness of the operation that satisfies customer’s needs
define - six sigma
select the process to imrpove
build to order supply chain
- consumers have opportunity to have at least some part fo teh product uniquely built to their specifications
- consumers have no input into overall design or prod.
- raw materials on hand. production doesnt begin until order recieved
- forecasting done for raw materials and standardized components by manufacturer
perceieved customer value equation
total beenfits / total costs
infrastructural operations decisions
workforce, quality management, policies and procedures, organizational structrue
supply chain
the steps and the firms that perform these steps in the transformation of raw material into
finished products bought by customers.
tangibles
dimension of SERVICE quality
- physical aspects of a service
ex. appearance of physical facilities, equipment, staff, communications materials
4 major causes of the bullwhip effect
demand forecast updating
rationing and shortage gaming
order batching
price fluctuations
forward integration
purchasing or controlling customers
design to order supply chain
customer has greatest amount of input
- custom designed homes
- supply chain contorolled by sdesigner and builder
throughput time
- measure of efficiency
time required for a unit of output (pass through an operating unit including waiting time between operations)
reliability
dimension of SERVICE quality
- ability to perform promised service dependably and accurately
vertical integration
how much of the supply chain is controlled by the organization
value
the worth of a service as determined by what the customer is willing to pay for it
imrove - six sigma
plan and implement solutions. evaluate effects.
measure - six sigma
collect and analyze data
what does DMAIC stand for in six sigma and what is it
it is the six sigma improvement cycle define measure analyze imrpove control
run charts
- basic quality tool
show the behavior of a specific variable over time
ex. show how much variability there is over the
course of an evening in the length of time customers have to wait before being seated
EVALUATE THE PROCESS
control - six sigma
standardize and reflect on process
backward integration
purchasing or controlling spupliers
serviceability
dimension of product quality
-ease of repair of a prorduct and speed, courtesy, competence of service providers
histograms
- basic quality tool
display continous data - data that can be measured
ex. how long it takes a resto to take order
DISPLAY DATA
measures of efficiency list
Capacity Utilization
Cycle Time
Throughput Time
Productivity
backwards / upstream integration
Organizations on the supply side of the firm’s supply chain
organizational structure (operational decision)
who reports to who
competitive priorities definition
the dimensions along which a firm chooses to compete:
line of interaction
defines specific interactions that take place between the customer and the service provider
- customer, physical evidence
vertical integration
the amount of its supply chain that a firm owns.
price fluctuations
cause of bullwhip effect
- Manufacturers that occasionally offer price discounts to distributors encourage a
“forward buy” behavior
- implies that distributors order in larger volumes that do not correspond to the “real” end customer
demand, thus again creating the bullwhip effect.
