Supply Chain Systems Flashcards
What causes supply chain dynamics
Forecast variations, poor communications, inappropriate decisions and limited response capabilities
What are the different forms of supplier relationships
Commodity supplier: no SRM activity, infrequent one-off goods
Performance supplier: focus is placed upon cost and service levels, not strategically important
Development supplier: focus on continuous improvement to service levels and cost, some strategic value
Partner: managed to secure supply and drive collaborate engagement with shared benefits
What is Vendor Managed Inventory (VMI)
Supplier embedded in customer operations, supplier decides on inventory levels and manages inventory at customer site
What is Collaborative Planning Forecasting and Replenishment (CPFR)
Combines the intelligence of multiple partners across the supply chain in the planning and fulfiment of customer demand
What are pros and cons of tighter collaboration
Pros: greater efficiency, reduced variability, mutual learning, greater stability
Cons: cost of communication, risk of opportunism, information leakages
What are the five Lean Principles
1) Specify what creates value from the customers perspective
2) Identify all steps across the whole value stream
3) Make those actions that create value flow
4) Only make what is pulled by the customer just-in-time
5) Strive for perfection by continually removing successive layers of waste
What is waste in Lean focus
Waste is anything which does not add value to a product or service
What are the seven deadly wastes
Transportation, inventory, motion, waiting, overproduction, over-processing, defects
What are the features of a lean organisation
Learning organisation, empowerment, multi-skilling, teamwork, continuous improvement
What are the dimensions of product quality
Performance, features, conformance, reliability, durability, serviceability, aesthetics
What is Six Sigma
Focuses on eliminating defects through reducing variation
Describe the normal distribution
68% within 1 s.d, 95% within 2 s.d, 99.8% within 3 s.d
What is the Six Sigma DMAIC framework
Define - the goals of the improvement activity
Measure - the existing system
Analyse - the system to eliminate the gap between current and desired performance
Improve - the system
Control - the new system