Strategic SCM Flashcards
Nature of Products
Product Life Cycle
Demand Predicatablilty
Product Variety
Lead Time
Functional Products
Stable and predictable demand
Long life cycles
Low profit margins
Innovative Products
High profit margins
Unpredictable demand
Short life cycles
High market mediation costs
Types of SC Strategies
Efficient
Responsive
Efficient SC
Suppy predictable demand at the lowest possible cost.
Supply to Stock.
Responsive SC
Respond quickley to minimize market mediation costs.
Supply to Order.
Matching SC with Products
Functional Products and Efficient SC
Innovative Products and Responsive SC
JIT
Just-In-Time; highly coordinated processing system in which goods move through the system, and services are performed, just as they are needed.
Pull (demand) system
System for repetitve production operations
Ultimate goal of JIT
Balanced System
Achives a smooth, rapid flow aof materials and/or work through the system.
Sources of Waste
Inventory Overproduction Waiting Time Unnecessary Transportation Processing Waste Ineficient work methods Product Defects
Pull system
system for moving work where a workstation pulls output from the preceding stationas needed.
Push System
System for moving work where output is pushed to the next stationas it is completed.
VMI
Vendor Managed Inventory
Supplier makes tthe main inventory replenishment decisions for the consuming organization.
Distributors role in VMI
Consignment without Visibility
Consignment with Visiblity
Distributor-driven replenishment without visibility
Distributor-driven replenishment with visiblity
Distributor-driven replenishment with the customer owning the inventory
Consignment without Visibility
Distributor owns inventory, customer determines what should be on shelf, distributor has no visiblity.
Consignment with Visibility
Same as consignment without visibility, but distributor has real time visiblity fo inventory.
Distributor-driven replenishment without visibility
Distributor owns inventory and determines what should be on the shelf.
Distributor-driven replenishment with visiblity
Distributor owns inventory and determines what should be on the shelf and has real time visibility.
Delayed Differentiation
A postponement tactic.
Producing but not quite completing a product or service until customer preferences or specifications are known.
Key concept of DD
Products in the same family as late as possible. Enables use of aggregate forecasts Enables delay of detailed forecasts Reduces scrapped inventory Increases customer service.
DD Strategies
Standardization
Resequencing
Standardization
Related items in a family start out being manuf. form distinct initial subassemblies and components.
Achieved by substituting these by common ones.
Resequencing
Modifying the order of product manufacturing steps so that the operation resultin in differentiation of specific items are delayed as much as possible.
SMED
Single Minute Exchange of Die
Turn and Earn
Car dealerships use this, sell more, get more.
