BSCM - 1 - Introduction to Supply Chain Management Flashcards Preview

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Flashcards in BSCM - 1 - Introduction to Supply Chain Management Deck (48):
0

Helps customers achieve better business results through:
-Design Assistance (new or existing)
-Customer Needs (assessing customer's business and creating/expanding product offerings.
-Information & Communication - collecting and analyzing customer data to support marketing, sales, and customer service

CRM - CUSTOMER RELATIONSHIP MANAGEMENT

1

Goods are made to forecast and sold from inventory.
USED WHEN:
-Demand is constant and predictable.
-Only a few product options exist.
-Order fulfililment lead time requirements are shorter than manufacturing lead times.

INFO NEEDED FOR PRODUCTION PLAN
-Forecast by time period for planning horizon.
-Opening inventory.
-Desired ending inventory.

MAKE-TO-STOCK PRODUCTION

2

MARKETING MIX (4 Ps)

-PRODUCT - design, quality, etc.
-PRICE
-PROMOTION - advertising, campaigns, public relations
-PLACE - sales channels, distribution channels, inventory policies

3

What is the impact of New Systems & Philosophies in Manufacturing? (TQM, Six Sigma, Lean, TOC)

-REDUCED lead times.
-REDUCED inventory levels.
-REDUCED costs.
-IMPROVED worker productivity.
-IMPROVED product quality.
-INCREASED profitability.

4

-Identifying and eliminating non-value-added activities and resources (WASTE)
-Creating continuous flow in Manufacturing as a result of pull by the customer
-Empowering Employees
-Continuous Improvement

LEAN MANUFACTURING

5

Management approach to long-term success through customer satisfaction.
KEY PRINCIPLES:
-Customer Focus
-Identifying Costs of Quality
-Taking Action to solve problems
-Continuous Improvement

TQM - TOTAL QUALITY MANAGEMENT

6

Approach that focuses on reducing defects by decreasing process and product variation.
IMPORTANT ELEMENTS:
-Variation causes defects.
-Goal is to have no more than 3.4 defects per million opportunities, which constitutes a six sigma-level performance.
-Continuous improvement and problem solving to reduce variation and defects.

SIX SIGMA

7

Holistic management philosophy based on the principle that systems have constraints limiting their ability to meet goals.

Objective is to achieve throughput goals by identifying and managing a few leverage points.

TOC - THEORY OF CONSTRAINTS

8

5 OBJECTIVES OF MANUFACTURING

To produce:
-The right products
-Of the right quality
-In the right quantities
-At the right time
-At minimum cost, or at the right price

9

What are the 4 elements of a manufacturing business model?

1. Defining products and customers.
2. Defining products and processes.
3. Managing material flow.
4. Providing customer service & support.

10

What are the aims of PRODUCT & PROCESS DESIGN?

-Meet customer needs/provide value
-Be cost effective.
-Provide quality.
-Be built/provided efficiently.
-Accommodate planning parameters.

11

Name the different types of manufacturing environments.

Engineer-to-order (ETO)
Make-to-order (MTO)
Assemble-to-order (ATO)
Make-to-stock (MTS)
Mass customization

12

What are the determinants of manufacturing environments?

-Lead time expectations.
-Product design input from customers.
-Product volume and variety.
-Product life cycle.

13

The Global network used to deliver products and services from raw materials to end customers through an engineered flow of information, physical distribution, and cash.

SUPPLY CHAIN

14

The design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand, and measuring performance globally.

SUPPLY CHAIN MANAGEMENT

15

Describe 3 types of KPIs and their uses.

KPI = KEY PERFORMANCE INDICATORS
-STRATEGIC - relate to long-term goals
-TACTICAL - intermediate-term goals
-production plans & budgets
-on-time delivery
-inventory turns
-OPERATIONAL - daily work routines.

16

Organizational tool for assessing performance against KPIs.

Includes metrics and performance from:
- Customer perspective
- Business Process Perspective
- Financial Perspective
- Innovation & Learning Perspective

BALANCED SCORECARD

17

-Voluntary strategic policy initiative for businesses
-Alignment of business operations with principles in four areas:
-Human Rights
-Labor Practices
-Environment
-Anti-Corruption

-Adoption of the UN Global Compact Management Model

UNITED NATIONS GLOBAL COMPACT

19

-COMMIT - Public leadership commitment to mainstream Global Compact Principles
-ASSESS - Assess risks & opportunities and the impact on operations; refine
-DEFINE - develop and refine goals and metrics and create a roadmap
-IMPLEMENT - implements strategies, policies; engage/educate employees; build capacity & resources
-MEASURE - capture, analyze, and monitor metrics; monitor performance vs. goals; adjust to improve
-COMMUNICATE - communicates progress and strategies; engages with stakeholders to identify ways to continuously improve.

UN GLOBAL COMPACT MANAGEMENT MODEL

20

What are the Labor Practice Princples set forth by the United Nations Global Compact?

-UPHOLD freedom of association and right to collective bargaining.
-ELIMINATE forced and compulsory labor.
-ABOLISH child labor.
-ELIMINATE discrimination in employment and occupation.

21

What are the Human Rights Principles set forth by the United Nations Global Compact?

-SUPPORT AND PROTECT internationally proclaimed human rights.
-ENSURE non-complicity in human rights abuses.

22

What is the Anti-Corruption Goal of the United Nations Global Compact?

Work against corruption in all of its forms, including extortion and bribery.

23

What are the Environmental Principles set forth by the United Nations Global Compact?

-SUPPORT a cautionary approach to environmental challenges.
-PROMOTE greater environmental responsibility.
-ENCOURAGE the development and diffusion of environmentally friendly technologies.

24

What are the 4 major external environmental factors encountered while operating a business?

-Global competition
-Economic, government, and regulatory influences
-Customer expectations
-Corporate responsibility

25

What are the phases of the product life cycle?

-INTRO
-GROWTH
-MATURITY
-DECLINE
-PHASE-OUT

26

-Used for large, complex projects
-Project remains in one location for assembly
-Avoids the costs of moving the product.
-Often used for ships, buildings, and some aircrafts

PROJECT MANUFACTURING

27

LOWER Capital cost
HIGHER Flexibility
HIGHER Annual Set Up Cost
HIGHER RunCost
HIGHER WIP Inventory
HIGHER Production & Inventory control costs

LONGER Lead Times

PROCESS MANUFACTURING LAYOUT

28

HIGHER Capital Cost
LOWER Flexibility
LOWER Annual Setup Cost
LOWER Run Cost
LOWER WIP Inventory
LOWER Production & Inventory Control Costs

SHORTER Lead Times

PRODUCT MANUFACTURING LAYOUT

29

MPC PROCESS
stands for...

MANUFACTURING PLANNING & CONTROL PROCESS

30

Name 5 questions of a good Planning & Control System.

1. What are we going to make?
2. What does it take to make it?
3. What do we already have?
4. What must we get and when?
5. What is the penalty/cost of NOT making it?

31

What are the basic elements of the EXTERNAL Supply Chain?

-Suppliers
-Producers or Manufacturers
-Distributors
-Retailers
-Consumers
-Flow of info, cash, and goods & services.

32

-Balances the conflicting objectives of marketing, production, and finance by managing the flow of materials.

-Involved in TWO Major Areas
1. MPC - coordination and facilitation of MPC.
2. Physical supply & distribution.

-Job titles include:
-Supply Chain Manager
-Logistics Manager

MATERIALS MANAGEMENT

33

Describe the different aspects of MANAGING MATERIAL FLOW.

-Acquisition

-Manufacturing Operations
-Scheduling - as JIT as possible to reduce unnecessary inventory/lost sales.
-Production - Efficiency to reduce waste of time and materials.

-Distribution - flow to and from customers
-Green Reverse Logistics - batteries, glass bottles
-Refurbishment

34

CUSTOMER EXPECTATIONS / Characteristics that provide value to the customer:

-Cost (price)
-Quality
-Speed (order lead time)
-Dependability
-Flexibility

35

Name the three manufacturing process options.

-INTERMITTANT (lot or batch)
-FLOW
-REPETITIVE or LINE
-CONTINUOUS
-PROJECT (fixed position)

36

Name the characteristics of an INTERMITTANT MANUFACTURING PROCESS LAYOUT.

-also called PROCESS, JOB SHOP, or FUNCTIONAL Layout.
-Jobs pass through functional departments in lots or batches.
-Workstations are not dedicated to one type of product.
-Volume is not high enough to justify an assembly line.
-High WIP inventory; longer lead times.

37

Name the characteristics of a REPETITIVE FLOW MANUFACTURING PROCESS.

-Dedicated line with workstations in sequence.
-High volume
-Product layout
-Batch specific
-Short Manufacturing lead time.
-low WIP inventory
-low unit costs
-HIGHER capital investment
-limited range of similar products
-produces discrete units (ex. cell phones, trucks)

38

Describe the characteristics of a CONTINUOUS FLOW MANUFACTURING PROCESS.

-dedicated machinery & fixed routing.
-High volume
-Product layout
-Non-discrete products, such as liquids
-low WIP inventory
-Higher capital investment
**Often raw materials into products, such as gas or steel by the use of mixing, chemicals, heating, cooling or pressure

39

Describe the role of Manufacturing.

The primary goal of manufacturing is to take raw materials and create value for producers and customers. By doing this, wealth is created for society as a whole.

40

-Voluntary strategic policy initiative for businesses interested in social justice and sustainable development.
-More than 8000 memebers
-Alignment of business operations with principles in four key areas:
-human rights
-labor practices
-environment
-anti-corruption
-Adoption of UN Global Compact Management Model
-The management model provides detailed guidelines for incorporating the ten principles in business strategies and operations.

The UN Global Compact

41

What are the components of the manufacturing business model.

-DEFINING PRODUCTS
-product positioning (quality vs. price)
-breadth of product line
-price, quality, and design
-brand name vs. generic
-packaging
-returns allowed
DEFINING CUSTOMERS/MARKETS:
-types of customers; for example, industrial, consumer, institutional, and government
-market segments
-sales and distribution channels
-market share and profitability
THESE DECISIONS WILL HAVE A MAJOR INFLUENCE ON PRODUCTION DEFINITIONS, SUCH AS:
-choice of manufacturing environments
-choice of manufacturing process

42

-Understanding and meeting customer wants and needs
-Two-way communication
-Working with customers to solve problems.

PROVIDING CUSTOMER SERVICE AND SUPPORT

43

Describe the impact of four significant aspects of the global business environment on manufacturing.

-GLOBAL COMPETITION - business now have to compete with companies from all over the world. Many companies now have global markets. How does these companies differentiate their products and services from the competition.
-ECONOMIC, GOVERNMENT, AND REGULATORY INFLUENCES - the world economy affects the global supply chain - from availability of resources to consumer sales. Also, government and regulatory agencies can enact rules and regulations that influence the global supply chain in many ways.
-CUSTOMER EXPECTATIONS - customers buy a solution to a need or problem. Demand is usually market driven and the supplier must determine characteristics that provide value to the customer and fulfill the customer's needs.
-CORPORATE SOCIAL RESPONSIBILITY AND SUSTAINABILITY - growing international consensus for businesses and their supply chains to exercise corporate responsibility in areas like HUMAN RIGHTS, LABOR PRACTICES, ENVIRONMENT, and ANTI-CORRUPTION to promote responsible economic growth to equally benefit all segments of society.

44

-Each area has compartmentalized operations in response to conflicting or uncoordinated critical success factors & performance measures
-Raw Materials->
PURCHASING->PRODUCTION->DISTRIBUTION->Customers
-lowest purchase -High utilization -FTL
price percent -best shipping rates
-Inventory -long runs (fewer -safety stocks
buffers changeovers)
-low unit costs
-safety stocks

TRADITIONAL INTERNAL SUPPLY CHAIN STRUCTURE

45

-Supply Chain is a subset of the VALUE CHAIN.
-Support processes are important but not considered primary value chain processes.
-Based on the efficiency of manufacturing operations, but not at the expense of other corporate goals (ex. cost reduction, revenue growth, market growth, shorter lead times, better quality, customer satisfaction and value.
-Can better balance the interests of manufacturing and other functions such as marketing and finance.

CROSS-FUNCTIONAL SUPPLY CHAIN

46

-Important concept...consists of processes that directly add value to the products and services that a company sells. Can consist of procurement, production, and distribution...as well as customer order management and reverse logistics aspects of customer service.
-also includes processes other than those directly involved in handling and transforming materials (ex. marketing, sales, product development).
-there are also support services that are also very important (ex. HR, finance)

VALUE CHAIN

47

Give examples of common supply chain conflicts.

-INHERENT CONFLICTS OF INTEREST AMONG VARIOUS FUNCTIONS
-production efficiency in manufacturing and finance
-high levels of customer service in marketing and finance
-low inventory investment within finance
-MARKETING GOAL TO INCREASE REVENUE will require:
-high customer service
-low production efficiency, or interrupting production schedules, short runs, etc.
-high inventories in order for products to always be in stock
-PRODUCTION GOAL TO REDUCE MANUFACTURING COSTS will require:
-high production efficiency (long runs, few products, fewer setups, less flexibility, lower customer service)
-high inventory of raw materials and finished goods to eliminate production interruptions.
-FINANCE SETS A GOAL TO INCREASE PROFIT, INCREASE CASH FLOW, AND REDUCE INVESTMENT...will require:
-high customer service to maximize profit
-high production efficiency to minimize costs
-low inventory to minimize investment.

48

Explain ways to resolve common supply chain conflicts.

-Use sales and operations planing to balance inventory, customer service, and production efficiency during the production planning process.
-Clearly define responsibility for the materials management function that facilitates planning and manages the day-to-day tradeoffs that are sometimes necessary.
-applying productivity systems such as lean, quality systems, and theory of constraints to speed up processes and reduce waste to offset the effects of the conflicts.