Chapter 2 Flashcards
(47 cards)
What are the five ingredients required for successful change?
- Culture
- Direction
- Evolution
- Fun
- Guidance
These ingredients facilitate a change-oriented culture in organizations.
Why are distribution centers (DC) struggling to make progress?
There is no culture of change.
A culture of change is essential for successful adaptation to evolving operational needs.
What two aspects must people feel for the HCWM ideas to improve the DC?
- Awareness of potential
- Motivation to change
Both aspects are crucial for fostering a willingness to adopt new practices.
What question underlines the need for awareness of potential in DC?
Why should we change?
This question prompts reflection on the necessity of adapting to technological and competitive changes.
What are the reasons why people lack awareness in a DC?
- Familiarity with only their own operation
- Limited view of daily business activities
- Lack of benchmarking and visits to other DCs
- Absence of performance indicators
These factors contribute to a narrow understanding of operational needs.
What has research shown about change initiatives?
Over 70% are unsuccessful.
This statistic highlights the challenges organizations face in implementing effective change.
What impacts motivation to change in a DC?
- Recognition of the need for change
- Completion of change initiatives
- Avoidance of time overruns and costs
Motivation can decline if these factors are not managed effectively.
What should the goals and strategy for the DC derive from?
The company strategy.
Alignment with the overall company strategy ensures coherence in operational goals.
What are the three value disciplines described by Treacy & Wiersema?
- Operational excellence
- Product leadership
- Customer intimacy
Each discipline represents a different approach to achieving competitive advantage.
What does the balance scorecard approach measure?
- Financial
- Customer
- Operational
- Learning and Growth
This approach provides a comprehensive framework for assessing performance across multiple dimensions.
What is the objective of the financial perspective in a warehouse strategy?
To realize the lowest warehousing costs relative to throughput value.
This involves minimizing costs while maximizing the efficiency of operations.
What two ways can a warehouse cut costs?
- Increasing productivity of the warehouse operation
- Improving the cost structure of the warehouse operation
These strategies are essential for maintaining profitability.
What defines the customer value proposition?
How the company wants to be successful with targeted customers and drive financial performance.
A clear value proposition is critical for aligning services with customer needs.
What are the nine elements of the customer value proposition?
- Price
- Quality
- Assortment
- Availability
- Responsiveness
- Product functionality
- Customer relationships
- Service
- Image
Each element contributes to shaping customer perceptions and satisfaction.
What are the four processes in the DC?
- Inbound handling
- Storage
- Outbound handling
- Value added logistics (VAL)
These processes support the overall efficiency and effectiveness of warehouse operations.
What is the purpose of a warehouse action plan?
To organize evolution within the warehouse.
This plan serves as a roadmap for implementing improvements and managing change.
What are the three phases of the warehouse action plan?
- Lay the foundation
- Restore the balance
- Create continuous improvement
Each phase builds upon the previous one to ensure sustainable development.
What is the Deming circle?
A familiar procedure that revolves around four stages: Plan, Do, Check, Act.
This cycle is a cornerstone of continuous improvement practices.
What are the three actions for improving process efficiency?
- Improve activities
- Combine activities
- Eliminate activities
Streamlining processes leads to enhanced performance and reduced waste.
What three actions improve resource utilization?
- Cut excess capacity
- Activate operations
- Postpone activities
These actions optimize the use of available resources in the warehouse.
What are the three actions for aligning services in the DC?
- Rationalize order profiles
- Balance fluctuations in workloads
- Accelerate/decelerate services
Aligning services ensures that logistics operations meet both cost and service level expectations.
What is the primary focus of HCWM?
Aligning service objectives of different departments based on a trade-off between service levels and overall costs.
What are the three actions for aligning services in HCWM?
- Rationalize order profiles to reduce complexity of warehouse activities
- Balance fluctuations in workloads
- Accelerate/decelerate services
What is the benefit of balancing workloads in project management?
Balanced workload.
