CIPs L4M7 Chapter 1 Flashcards
What is a Stores?
Small local storage facility for immediate use items
What is a Warehouse?
Large scale storage facility - there is a stand alone warehouse which is not connected to manufacturing assembly and integrated which is attached to the assembly line or at least on the same site
What are Distribution Centres and Hubs?
Warehouses which are a focal point for a specific activity or geographic area.
What is a Stock Yard?
An open area which can have a canopy used to store bulky items and vehicles
What is the purpose of Stores, Warehouses etc?
Make stock available in alignment with stock management
Maintain a safe environment for material handling
A secure environment to avoid stock loss
A secure environment to minimise stock loss from damage or deterioration
What Warehousing options exist?
Centralised warehouse - a single location used to supply whole country
Regional warehouse - used to supply a specific area of a country
Local warehouse or stores - multiple locations situated close to the users
Warehouse in another country - obvious
Outsourced warehousing - specialist organisation manage stock movement
Partnering - sharing warehousing cost and facilities with other companies
Can you explain Porters Diamond Model?
Firm strategy, structure and rivalry - rivalry/ competition in the market place encourages innovation and differentiation to drive competitive advantage. It is therefore critical for strategy and structure to inhibit behavior that drive competitive advantage. This can also include the structure/ strategy of government i.e. funding of engineering degrees, high rate of graduate programme encouraging uptake of higher education. In return, this can reduce competition as other companies and nations cannot compete
Demand conditions- whole market demand for product or service. A nations increasing demand for a product or service drive companies to need to push product develop and technology to avoid market saturation, thus giving that nations and companies the push to innovate and create competitive advantage
Related supporting industries - success of one industry impacting another. Related industry under the same pressure to reduce costs and innovate can benefit to the top tier supplier thus nation for greater access to cheaper and more innovative product, thus creating competitive advantage
Factor conditions - Resources. Resources are split into 2 categories i) basic i.e natural resource ii) advanced i.e. specialist skills labour force. Note, competitive advantage can only be created by advance resources!
Government & Chance 2 other determinants which are obvious
The term “Home Base” is where a nation becomes famous for being the best at producing something i.e. Germany for car manufacturing
What are Docks?
A feature of a warehouse design used for unloading and loading of vehicles also known as loading/ unloading bays
What is Zoning?
Clearly marked/ designated area of a warehouse mapped by different requirements for different stock, equipment, access ETC
What is Cross Docking?
When a delivery is unloaded but immediately prepared for dispatch without being stored. In some cases a vehicle may delivery goods and sit there for an immediate reload to delivery something else elsewhere
What is a Tote Box?
Reusable storage boxes
What is Picking?
Activity of retrieving stock from storage
How does CIPS describe the flow of a warehouse?
The ability for stock to move around a facility in the quickest and safest manor. A poor flow reduces efficiency.
What are Aisles?
Areas between racking and or pallets for access
What % of of retailer deliveries are made from October to December?
80% with requirement to manufacture and store stock for the rest of the year
What is a Mezzanine floor?
Elevated additional working storage space. Most importantly it enables storage underneath so a work station can be created without loosing storage space per sq ft
What is a quarantine area?
Area set aside for items which are awaiting inspection, including other faulty goods which are due to be returned to supplier. it is important that defective goods do not make it past this point as they risk being mixed with other good stock
What is kitting?
Activity in warehouse or stores of assembling groups of items that are to be used together for a specific task or build
What is Return Logistics, otherwise known as Reverse Logistics?
The movement of material is the opposite direction of supply to facilitate return of defective goods, warranty claims, surplus goods etc . This can also involve recycling or scrapping
What is a Bottleneck?
A restriction inside a warehouse, store etc which holds up or slows down activity.
What is Flexible Warehousing?
Technique which allows short term ability to increase or decrease storage space
What is Consignment Stock?
A facility offered by supplier to deliver stock to buyer and only charged once used or sold on
Do you know the size of UK and euro pallets?
UK - 1200mm x 1000mm
Europe - 1200mm x 800mm - must conform to European pallet association UCI435-2
The largest international size is 1200 squares
What types of product codes exist?
Own product code
Manufacturers product code
Customer product code
Industry standard product code
Multiple product codes
Then…
Numerical - all number, no letters
Alphanumerical - all letters, no numbers
Random generated or created - system randomly generated code, less chance of keying wrong pattern in caused my human error
Sequential - New item added take the next letter or number in the sequence i.e. 1000 –> 1001 or abc –> abd or 459/1000 –> 459/1001
Structured - when numbers signify characteristic of the product i.e 121769 –>121 means it is paint and 769 means the colour, thus if you were searching for paint you would start by searching 121
