Sec 1 - intro to Supply Chain Management Flashcards
What is a Supply Chain & what does it do (2 things)
A network of retailers, distributors, storage facilities and suppliers.
Participate in production, delivery, and sale of product or service to the consumer.
Also includes moving items from consumer back to the producer
What does the UN Global Compact do? (4 things)
Addresses corporate sustainability in the world economy.
Asks companies to embrace, support, and enact a set of core values.
Human rights, labor standards, environment, and anticorruption.
Balances current resource consumption without compromising well-being of future generations
What things does the business environment (aka operating environment) consist of?
External factors that influence how a company develops their manufacturing environments and production process choices.
Global competition
Economic/government/regulatory influences
Customer expectations
Social responsibility.
What are the financial reporting fundamentals (4 things)
Basic financial statements with underlying costs and analysis terms
Basis for management decisions
Balance sheets, income statement, and cash flow statements are standard reporting tools
Accounts for cost of goods sold, general/administrative costs, and fixed vs variable costs
What is Enterprise Resource Planning (ERP)?
Framework for organizing, defining, and standardizing business processes
Necessary to effectively plan and control and organization so it can use internal knowledge to get external advantage
An integrated knowledge and decision making tool.
Allows for cross-functional alignment, closed loop (feedback) mechanism, what-if simulation, integrated financial data, and performance measurement
What is Lean? What are the key characteristics?
Philosophy emphasizing minimization of resources (including time) used in various activities of the business
Elimination of waste, proving value from customer’s perspective, continuous improvement
Key characteristics- flow manufacturing, process flexibility, quality at the source, supplier partnerships, employee involvement
Total productive maintenance, pull systems, and work cells
What are the 5 basic manufacturing environments?
ETO - engineer to order MTO Manufacture to order ATO Assemble to order MTS Made to stock Mass customization
ETO manufacturing — volume vs variety. Definition.
Low volume with high variety
Products whose customer specifications require unique engineering design, significant customization, or new purchased materials
MTO manufacturing — volume vs variety. Definition.
Low-medium volume with high-medium variety
A production environment where a good or service can be MADE after the receipt of a customer’s order
ATO manufacturing — volume vs variety. Definition
Medium-high volume with low-medium variety.
Product is made from standard components or sub-assemblies held in inventory. Wait for customer order before final assembly.
MTS manufacturing — volume vs variety. Definition
High volume with low variety
A production environment where products can be and usually are finished before receipt of a customer order
Mas customization — volume vs variety. Definition.
High volume with high variety.
The creation of a high-volume product with large variety so that a customer may specify an exact model out of a large volume of possible end items, while manufacturing cost is low due to large volume
What are the 5 stages of the product life cycle
Introduction, growth, maturity, decline, phase-out
What is intermittent manufacturing?
aka process layout, job shop layout, functional layout
A form of manufacturing in which jobs pass through the functional departments in lots. Each lot may have a different routing.
What is flow manufacturing?
Work flows through each work station’s dedicated equipment at a nearly constant rate. 2 types = repetitive (line) & continuous.
What is repetitive flow manufacturing?
Assembly line that assembles discrete units (ie automobiles) at a constant rate without delays.
Machinery is dedicated to limited range of products. Capital intensive. Require high volumes of production
What is continuous flow manufacturing?
Production system in which the productive equipment is organized and sequenced according to the steps involved in production. Material flow is continuous during the production process. Routing of jobs is fixed and setups seldom change.
What are 3 types of Key Performance Indicators (KPIs)
Strategic, Tactical, Operational
Define Key Performance Indicators (KPIs)
A financial or nonfinancial measure that is used to define and assess progress toward specific organizational goals.
What are strategic KPIs?
Relate to the long-term goals of a business.
i.e. profitability, market share, growth, productivity
What are tactical KPIs?
Relate to intermediate-term goals of a business.
i.e. adherence to production plans or budgets, percentage of on-time delivery, inventory turns
What are operational KPIs?
Relate to daily work routines.
i.e. work-center cycle times, utilization, efficiency
What are the 2 major areas of material management?
1) MPC - manufacturing planning and control.
2) Physical supply & distribution
What is MPC?
Manufacturing planning and control– integrated planning system that serves as a template for MPR II (manufacturing resource planning) and ERP systems
Used to recognize the demand for products, plan the resources needed, and then execute/control production.
What is priority? Capacity?
Priority refers to demand
Capacity refers to supply
What is MRP
material requirements planning – based on the due dates for end items the MRP system establishes the priority plan for the due dates and the order quantities for the components needed
What is closed-loop MRP?
System built around MRP that also includes production planning, master production scheduling, and capacity requirements planning. Also includes the feedback that is provided by the execution processes so that planning can be kept valid at all times.
What is MRP II?
Manufacturing resource planning.
Method for the effective planning of all resources of a manufacturing company. Includes business planning, production planning, master production scheduling, material requirements planning, capacity requirements planning, and execution support systems for capacity & material.
What is ERP?
Enterprise resource planning.
Framework for organizing, defining and standardizing the business processes.
Necessary to effectively plan and control an organization so the organization can use its internal knowledge to seek external advantage.
Provides extensive databanks of information on historical and current transactional data.
What is TQM?
Total Quality Management –
Participation of all members of an organization in improving processes, goods, services, and the culture in which they work
What is TOC?
Theory of Constraints –
A holistic management philosophy developed by Goldratt that is based on the principle that complex systems exhibit inherent simplicity.
What is lean production?
Philosophy of production that emphasizes the minimization of the amount of all the resources (including time) used in the various activities of the enterprise. Focuses on continuous improvement and employee involvement
What is six sigma?
Methodology the furnishes tools for improvement of business processes. Intent is to decrease process variation and improve product quality.
