Test 1 Flashcards
Process Continuum (5)
Project: One time creation of new product Example: Yangtze River Dam Construction Job Shop: Low volume batch processing of similar products Example: Copy center, special orders but somewhat standardized
Batch: Set up production line, produce quantity required, reconfigure production line Example: Appliance manufacturer
Assembly Line: High volume, high standardization Example: Automobile assembly factory Continuous: Process flows from one place to another with little human interaction. Example: Flour mill
Order Winner / Order Qualifier
- Quality, Dependability, Flexibility, Speed/Cost
1) Order winner: The attributes that differentiate a company’s products. 2) Order qualifier: Necessary attributes that allow a firm to enter into and compete in a market; a firm’s strategy must account for these necessities.
Forecasting
assertion of the future
Usually wrong. Just have to do best guess. Increase alpha if do not trust forecaster. Decrease alpha if do. Middle alpha = 0.5
3 Methods: 1.Simple Moving Average 2.Weighted Moving Average 3.Expontial Smoothing (see pic below)
Types of Relationships with suppliers (3)
Transactional - arm’s length transactions with supply chain partners that is managed by scripted interactions.
Complementary - companies understand their core competency and understand they need the competency of another firm to maintain world class service.
Synergistic - two companies are committed to work together and are better together than they would be alone.
Sustainability Management (3ps)
Improvement-based environmental management systems. Total cost of ownership. People + Planet + Profits
Offerings and Experience (examples and how to make experience better)
Waiting in line (theme park)
Entertain customers, keep them occupied
Let waiting customers be productive
Enforce not cutting or budging
Like to see line is moving, see people being waited on
Tell customers how long the wait will be
Problems with Predicting Service Capacity Service demand is variable and uncertain Customer do not arrive at a uniform rate Customers may not come at all How much work are customers willing to do themselves? Self-service cash registers How long will customers wait for their service? Almost all services require the customer and the producer to work together to create the process. A haircut requires some information from the customer on their desired outcome for the haircut. It also requires that the customer provide the head of hair to be cut. So, a service is an interactive process where the customer and the producer work together to develop the final offering
Apple
Key themes of audit
Worker empowerment Protection of worker rights,Worker health and safety, Environmental impact, Ethics Management System - self and supplier accountability
Why spend $$$ monitoring supplier? Leverage Stewards for change Securing the future w/ suppliers Are they making a difference? Could be simply for marketing but are forcing industry in right direction Setting High Precedence
Service Failure
Systematic occurrences that result in dissatisfied customers.
Globalization & Complexities
Increasing global presence by establishing business entities in other parts of the world. Complexities: language, culture, time, mode barriers, coordination, regulation, exchange rates, bribery. Interconnectedness between businesses and governments- \communication, culture, and time as barriers.
Supplier Management definition
the processes of forging strong links by identifying what is needed by the firm and then selecting, developing, and actively managing the supply base.
Line Balancing Analysis (6 steps)
The process of allocating tasks to process workstations in an efficient manner. 1. Determine precedence relationships (Which task must come before other tasks) 2. Calculate required cycle time 3. Determine theoretical minimum number of workstations. 4. Select primary rule and secondary rule (Primary assigns tasks to stations, Secondary rule breaks ties) 5. Assign tasks to workstations 6. Determine your process efficiency
Naïve Forecasting Methods
Simple moving average (SMA)- where prior demand is averaged
Weighted moving average (WMA)- previous period data have different weights; the heavier weight is on the most recent data
Simple exponential smoothing- averages prior demand with prior forecast
Product Design (2 types)
A process of applying imagination to invent new products / services. Continuous - Enhancing existing products / services. Discontinuous - Creating new products / services.
Newsvendor Analysis – Critical Fractile
A method for making capacity decisions in services. Measures tradeoffs cost of understocking vs. cost of overstocking. CF - The optimal capacity level in the Newsvendor Analysis
Service Operations
- Production processes wherein each customer is a supplier of process inputs (accounting: financial records (inputs) financial statements (outputs)), co-production
Supply Chain Operational Reference (SCOR) Model - (5 things)
Plan (supply and demand) Source (procuring goods and services) Make (transforming products into finished state) Deliver (finished goods to meet demand, order-transportation-distribution) Return (returning products for any reason)
Strategy Execution (3)
Aligning Strategic Levels - The long-term strategy that defines how the company will win customers, create game-winning capabilities, fit into the competitive environment, and develop relationships.
Functional Tactics - Short-term steps used to implement strategy and achieve strategic goals.
Operations - The daily activities that a firm must perform to achieve success.
Postponement
Mass production of only the base product - don’t add value until you acquire a customer order (Harley-Davidson, Nike custom made shoes)
Queuing Theory
Used to determine customer system performance and wait times. **Shows relationship between capacity levels and expected wait costs
PCN – Dr. Sampson’s Presentation
Categorizes flowchart steps according to whether or not they involve interaction between entities such as providers and customers
Category Segmentation (4 categories of procuring goods)
Leverage Item - has the potential to affect profit, typically because it is associated with a high level of expenditures while also having many qualified sources of supply (buying tomatoes for Heinz ketchup, reverse auction)
Critical Item - can have a big effect on profitability but only has a few qualified suppliers (form alliances through trust-based relationships)
Routine Item - is typically something of low value, purchased in small volumes, through individual transactions (lots of substitutions and requires little purchasing expertise)
Bottleneck Item - there are few alternate sources of supply, typically due to complex specifications requiring complex manufacturing or service processes, new technologies, or untested processes
Product Layout
Usually either linear or U-shaped and are laid out according to the requirements of a product. Engineers figure out the best production order for a completed product.
Demand Management (7 Tools)
a proactive balancing of scarce business resources with demand
Demand Management Tools-
Advertising and promotion
Pricing (Disney)
Designing counterseasonal products (Snowboards/skateboards)
Channel Management
Outsourcing
Product Phasing (introducing new products in a sequence that allows for effective use of capacity)
Supply chain management
Strategic Sourcing
The process of planning, evaluating, implementing, and controlling both highly important and routine sourcing decisions.
Designing for Reliability (2 things)
2 Dimensions of Reliability: 1.Failure Rate 2.Time Reliability Dimensions apply to: -Component reliability (likelihood of a certain part not failing) -System reliability (likelihood a system of components not failing)
Value Chain
Inbound logistics, transformation processes, and outbound logistics: the core of what a firm does.
Process Mapping (3 steps)
Schematic picture of a process using symbols - Arcs between symbols represent progression from one step to the next 1. Develop general process map 2. Interview those who perform each step of the work 3. Determine which steps add value. Eliminate those that do not.
Quality Function Deployment – House of Quality
Method for translating customer requirements into functional design. House used to implement customer requirements into a design. Left side: Customer Requirements. Roof: Technical Requirements.
Weighted Factor Analysis
a multi-criteria decision making method using weights
Identify the key selection factors
Determine the relative importance or weight of each factor (should add up to 1)
Evaluate each supplier on each of the key selection factors
Forecasting Bullwhips
increasing upstream supply chain variation resulting from forecasts in a supply chain or distribution channel collaborative planning, forecasting, and replenishment (CPFR) can help us moderate the impact of the bullwhip effect
ex. Toyota is good at minimizing the bullwhip effect because they work well with supplier
Effect of Strategic Sourcing on the Firm -
purchased goods make up to 50-90% of a firm’s COGS sourcing can affect the purchase cost, quality, and development & design cost
