Supply Chain Systems

Question 1

What causes supply chain dynamics

Answer 1

Forecast variations, poor communications, inappropriate decisions and limited response capabilities

Question 2

What are the different forms of supplier relationships

Answer 2

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

Question 3

What is Vendor Managed Inventory (VMI)

Answer 3

Supplier embedded in customer operations, supplier decides on inventory levels and manages inventory at customer site

Question 4

What is Collaborative Planning Forecasting and Replenishment (CPFR)

Answer 4

Combines the intelligence of multiple partners across the supply chain in the planning and fulfiment of customer demand

Question 5

What are pros and cons of tighter collaboration

Answer 5

Pros: greater efficiency, reduced variability, mutual learning, greater stability

Cons: cost of communication, risk of opportunism, information leakages

Question 6

What are the five Lean Principles

Answer 6

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

Question 7

What is waste in Lean focus

Answer 7

Waste is anything which does not add value to a product or service

Question 8

What are the seven deadly wastes

Answer 8

Transportation, inventory, motion, waiting, overproduction, over-processing, defects

Question 9

What are the features of a lean organisation

Answer 9

Learning organisation, empowerment, multi-skilling, teamwork, continuous improvement

Question 10

What are the dimensions of product quality

Answer 10

Performance, features, conformance, reliability, durability, serviceability, aesthetics

Question 11

What is Six Sigma

Answer 11

Focuses on eliminating defects through reducing variation

Question 12

Describe the normal distribution

Answer 12

68% within 1 s.d, 95% within 2 s.d, 99.8% within 3 s.d

Question 13

What is the Six Sigma DMAIC framework

Answer 13

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