Purchasing and supply - Improvment

Question 1

What are the 4 improvement approaches? And what are emphasis can they be categorized to?

Answer 1

BPR, Six Sigma, Lean and TMQ. Emphasis on rapid or gradual change or on what to do or how to do it.

Question 2

What model depicts the best sequence in which operations performance should be improved?

Answer 2

The sand cone model

Question 3

Describe the Sand cone model.

Answer 3

Outside in we have (in this order) quality, dependability, speed, flexibility, cost.

Question 4

What does the learning/experience curve show?

Answer 4

The curve shows how the more experience is gather with each produced unit the experience will make each unit cost less.

Question 5

What is tacit knowledge?

Answer 5

Its knowledge that is in peoples head rather than in a manual. Similar to riding a bike.

Question 6

What is explicit knowledge?

Answer 6

It is written down and codified knowledge.

Question 7

Knowledge management (KM) has two functions, what are they? And their combination leads to what?

Answer 7

Collect and connect knowledge. Combining them encourages collaboration, which generates an even greater insight.

Question 8

One of the most influential model of knowledge accumulation through learning. What is it called?

Answer 8

The Nonaka and Takeuchi knowledge model.

Question 9

Describe The Nonaka and Takeuchi knowledge model.

Answer 9

Its round with, from the top to the right, Dialogue, linking explicit knowledge, learning by doing and field building as its cornerstones. In the model tacit knowledge becomes explicit knowledge and vice versa. Between dialogue and linking explicit knowledge, tacit knowledge becomes explicit knowledge. And between learn by doing and field building, explicit knowledge becomes tacit knowledge.

Question 10

In the The Nonaka and Takeuchi knowledge model tacit knowledge becomes explicit knowledge and vice versa. What are each of the 4 quadrants processes called for the different types of learning? And what kind of knowledge turns to what?

Answer 10

Socialisation (Tacit-to-tacit knowledge)
Externalisation (Tacit-to-explicit knowledge)
Combination (Explicit -to- explicit knowledge)
Internalisation (Explicit -to- tacit knowledge)

Question 11

What does BPR emphases?

Answer 11

Rapid change and towards what to do.

Question 12

What does TQM emphases?

Answer 12

Gradual change and how to do it.

Question 13

What does Lean emphases?

Answer 13

Gradual change and towards what to do.

Question 14

What does Six Sigma emphases?

Answer 14

How to do it and both gradual and rapid change.

Question 15

Define value-creating supply networks.

Answer 15

A set of interconnected organisations whose different processes and activities together produce value.

Question 16

If you go upstream in the supply network, what way do you go then?

Answer 16

From the focal company you go to the supplier and then their supplier.

Question 17

If you go downstream in the supply network, what way do you go then?

Answer 17

From the focal company you go to your customer and then their customers.

Question 18

Shortly explain dyadic relationship.

Answer 18

The term “dyadic” highlights the one-on-one nature of the relationship. Where the customer and supplier go through the focal operation.

Question 19

Shortly explain triadic relationship.

Answer 19

In triadic interactions the customer, supplier, and focal operations interact and can connect with everybody. There can emerge anything between any two members while also affecting the third.

Question 20

Shortly explain the bullwhip effect.

Answer 20

Small fluctuations in consumer demand led to increasingly larger variations in orders and inventory levels as they move upstream the supply chain.

Question 21

What framework do we use to match the operations resources in the supply chain with market requirements? Describe it.

Answer 21

The Fisher matrix. Market requirements to the left and operations resources on the horizontal axis. Market requirements are on a scale of functional and innovative. Operations resources are on a scale of efficient processes and responsive processes.

Question 22

In the Fisher matrix, what constitutes as a functional market requirements/demand? And what type of processes does it match with?

Answer 22

When demand is functional the demand is predictable, have few changes, low variety, the price is stable, there is long lead-time, and there is low margin. It matches with an efficient process.

Question 23

In the Fisher matrix, what constitutes as a innovative market requirements/demand? And what type of processes does it match with?

Answer 23

When demand is functional the demand is unpredictable, have many changes, high variety, the price mark-downs, there is short lead-time, and there is high margin. It matches with a responsive process.

Question 24

What is an efficient process?

Answer 24

It has low cost, high utilisation, there is min inventory, and their suppliers are low-cost.

Question 25

What is a responsive process?

Answer 25

It has fast response, low T/P time, deployed inventory, and flexible suppliers.

Question 26

What are some factors that govern the speed and extent of adoption of new process technologies?

Answer 26

Technical feasibility
Operations benefits
Social and regulatory acceptability
Labour market dynamics
Enhancement of strategic capabilities

Question 27

There are different way to characterise technology. What are 5 “primary capabilites” that new and emerging technologies can be positioned to? And give 1 example to each.

Answer 27

Thinking/reasoning (AI, big data)
Communicating/connecting (Cloud)
Moving physical objects (Drones)
Material processing (3D printing)
Seeing/Sensing (Face recognition)

Question 28

What are 3 dimensions of process technology? Whether they are respective high or low what performance do they entail?

Answer 28

Scale, automation and coupling. High Scale, automation and coupling means there is a focus on cost performance. Low Scale, automation and coupling means there is a focus on flexibility performance.

Question 29

What does high and low scale of process technology entail?

Answer 29

High: Few, large units of technology.
Low: Many, small units of technology

Question 30

What does high and low automation of process technology entail?

Answer 30

High: Process (technology and humans) has low acuity and judgment.
Low: Process (technology and humans) has high acuity and judgment.

Question 31

What does high and low coupling of process technology entail?

Answer 31

High: Technology is integrated
Low: Technology is separated

Question 32

Describe the product-process matrix.

Answer 32

Flexibility on the left axis and cost on the head axis. High cost and flexibility is in the left corner and low on opposite corners in each direction. Diagonally down we have the best-fit line. Off the diagonal to the right: there is high flexibility, redundant capability and high cost. Off the diagonal to the left: there is low flexibility, insufficient capability and high cost. Market requirements, overhead, show that cost is determined if demand is low volume and high variety or high volume and low variety. To the left you have coupling, automation, and scale that determine the products position, with low pointing downward and high upward. The model shows the cost-flexibility trade-off.

Question 33

What new development in process technology can change the cost-flexibility trade-off? What happens to the diagonal?

Answer 33

Increase in the 3 dimensions of process technology in the form of connectivity, analytical content and scalability can bend the diagonal up and create a curve.

Question 34

What is assessed in the acceptability of proposed process technology?

Answer 34

Operations resource capabilities and market requirements which informs a financial evaluation.

Question 35

The money in your hand today is worth…

Answer 35

more than the same amount of money in a years’ time.

Question 36

NPV stands for?

Answer 36

Net present value

Question 37

The present value of X in n years’ time, at a discount rate of r percent is:

Answer 37

x/(1+r/100)^n

Question 38

What are the three potential ways of achieving organisational ambidexterity?

Answer 38

Structural, sequential and contextual.

Question 39

Organisational ambidexterity refers to?

Answer 39

The combination between radical/exploration improvement and continuous/exploitation improvement.

Question 40

Structural ambidexterity is…

Answer 40

Different parts of the operations, different types of improvement.

Question 41

Sequential ambidexterity is…

Answer 41

Different times, different types of improvement.

Question 42

Contextual ambidexterity is…

Answer 42

Simultaneously adopt both types of improvement within the same business unit/organisational area.