Operations, Strategies

Question 1

Supply Chain Management

Answer 1

Integrating and managing the flow of supplies throughout the inputs, transformation process and outputs in order to best meet the needs of the customers.

Question 2

Flow of material inputs through the value stream (SCM)

Answer 2

Suppliers (purchasing supplies and locating inputs)
Internal processes (transformation stage)
distribution to customer (transporting and organising products to customers)

Question 3

Three aspects to supply chain management

Answer 3

Logistics, E-commerce, Global Sourcing

Question 4

Logistics definition (SCM)

Answer 4

The transport, storage and handling of physical raw inputs and the distribution of physical outputs to markets.

Question 5

Goal of logistics (SCM)

Answer 5

To achieve an efficient steady flow of material throughout the supply chain.

Question 6

Role of logistics (SCM)

Answer 6

To have ‘the right quantity at the right time at the right place for the right price in the right condition to the right customer’.

Question 7

Distribution (SCM)

Answer 7

Different types of transportation such as ships, train, plane, van, etc.

Question 8

Warehousing (SCM)

Answer 8

The use of warehouses for the storage, protection and later distribution of stock

Question 9

Storage (SCM)

Answer 9

Finding a secure place to hold stock until it is required and meets the demands of the business. May be short term or long term.

Question 10

Distribution Centres (SCM)

Answer 10

Not for long term storage but are designed to minimise the time it takes to supply stock to the retail outlets.

Question 11

Lead Time (SCM)

Answer 11

The time it takes for an order to be fulfilled from the moment it is made.

Question 12

Costs associated with Logistics

Answer 12

The premises, insurance and security, moving stock, carrying excess stock if not sold, shrinkage costs and losses, stock subject to damage.

Question 13

E-Commerce (SCM)

Answer 13

The buying and selling of goods and services via the internet.

Question 14

E-procurement (SCM)

Answer 14

The use of online systems to manage supply and allows suppliers direct access to the business’s level of supplies.

Question 15

B2B (SCM)

Answer 15

Direct access from one business (supplier) to another (the buyer), allowing the supplier to assess the needs of the buyer and meet them in a timely manner.

Question 16

B2C (SCM)

Answer 16

The selling of goods and services to consumers over the internet, with payment usually by credit card.

Question 17

Global Sourcing (SCM)

Answer 17

Buying or sourcing from wherever the suppliers are that best meets the sourcing requirements.

Question 18

Factors influencing the choice of supplier (SCM)

Answer 18

Consumer demand, quality of inputs required, flexibility and timeliness of supply, cost of supplier.

Question 19

Outsourcing

Answer 19

the use if specialised external providers to perform non-core business activities.

Question 20

Advantages of outsourcing

Answer 20

Allows the business to focus on its core business, tasks are performed at a higher level, efficiency gains and cost reductions.

Question 21

Disadvantages of outsourcing

Answer 21

Less control over the quality, more expensive in some cases, communication and language barriers, loss of information/critical patents/financial details, and organisational change and resistance.

Question 22

Globalisation and outsourcing

Answer 22

• Market conditions can change which may cause a change in the cost of materials and other inputs.
• Opportunity to outsource to an overseas supplier, known as offshoring.

Question 23

Factors that must be considered (Outsourcing)

Answer 23

Whether outsourcing is cheaper and more efficient, which geographical location is preferred, which vendors to use, management of the outsourcing contract.

Question 24

Co-sourcing (Outsourcing)

Answer 24

Two parties are fully involved in managing the success of the particular aspect of the business. Work is not done by an external party but an external expert who works as a contractor.

Question 25

Quality Management

Answer 25

The systematic continuous approach to the monitoring of consistency, dependability and quality of an operations output.

Question 26

Quality Control (QM)

Answer 26

The use of inspections of various points in the production process to check for problems and defects. Reactive Approach!

Question 27

Quality Assurance (QM)

Answer 27

Use of a system to ensure that set standards are achieved in production. Proactive Approach!!

Question 28

Quality Improvement or TQM (QM)

Answer 28

An ongoing commitment to improving a business’s goods or services.

Question 29

3 Stages of Quality control (QM)

Answer 29

Feed-forward; careful planning before the production begins to prevent problems.
Concurrent controls; During work in progress, during the manufacturing process.
Feedback; checking the final product after production or delivery is of the service is complete.

Question 30

Continuous Improvement (QM)

Answer 30

The belief that over time processes will be made more efficient and effective.

Question 31

Total quality management (QM)

Answer 31

Relies on continuous improvement in all functional areas not just operations. Often referred to as ‘kaizen’. Controls are put in place to ensure poor-quality goods never reach the consumer.