Global Supply Chains and Manufacturing Strategy Flashcards
List 5 methods for ‘Design for Logistics’
1) Economic Packaging
- Product and packaging must be designed so it is easy to ship and shelve. Making a product much stronger will increase part cost, but may lower net cost by reducing padding and protection for shipping
- Must be easy to pack, repack and track
- Enables efficient design of supply chain and business model
2) Concurrent and Parallel Processing
- Minimise lead times
- Redesign products so several manufacturing steps can take place in parallel
- Modularity/Decoupling key to implementation
- Enables different inventory levels for different parts
3) Delayed Differentiation
- Re-sequencing
- Commonality
- Modularity
- Standardisation
4) Postponement
- Delay Differentiation of products in same family as late as possible
- Enables use of aggregate forecasts
- Enables delay of detailed forecasts
- Reduces scrapped or obsolete inventory
- Increases customer service
- May require new processes or product design and their associated costs
List 5 Advantages/Disadvantages of ‘Design for Logistics’
1) Implementation of Design for logistics not always cost effective
2) Product may be unsuitable for re-sequencing or modular production
3) Inventory reduced but value per item goes up
4) Delaying customisation can lower import tariffs
5) Delaying customisation can reduce value of stock
List 6 Advantages/Disadvantages of E-Communications
1) Increased productivity for both buyer and seller
2) Improved compliance with preferred suppliers
3) Facts to improve leverage with suppliers
4) Security required for sensitive information
5) Trending and graphical data does not replace face-to-face communication
6) Human jobs may be lost
List 4 E-Communications Technologies
1) Automated workflow and approval routing
2) Automatic Capture of information regarding supplier performance
3) Desktop access to supplier resources
4) Integration with ERP systems
Define Risk Management and Vulnerability
Risk is the level of exposure to the chance of loss which gives rise to an opportunity for profit
Vulnerability is the exposure to the chance of loss which gives rise to an opportunity for profit
List 4 possible causes of risk
1) Power Cuts
2) Natural Disasters
3) Financial Issues
4) Operational Difficulties
List 5 methods to limit risk
1) Risk Acceptance
2) Monitoring
3) Mitigations
4) Avoidance
5) Deferral
List the 5 Competitive Objectives
1) Quality
2) Speed
3) Dependability
4) Flexibility
5) Cost
Define Make, Do or Buy
Choice between making an item in-house or buying it externally/outsourcing.
Usually occurs when a firm with a developed product is having trouble with suppliers or has a diminishing capacity or changing demand
Give 4 Considerations for ‘Make’ (Make, Do or Buy)
1) Is it cheaper than outsourcing it?
2) Is the quantity too small?
3) Is the quality control better?
4) Are there no competent suppliers?
Give 3 Consideration for ‘Outsourcing (Make, Do or Buy)
1) Is there a lack of expertise?
2) Are there limited productions facilities?
3) Is the item non-essential?
Give 4 Disadvantages of ‘Make’ (Make, Do or Buy)
1) Direct labour costs
2) Factory overhead costs
3) Material costs
4) Increased inventory
Give 3 Disadvantages of ‘Outsourcing’ (Make, Do or Buy)
1) Transportation Costs
2) Inspection Costs
3) Good communication required
Define ‘an operation’
• An operation in its simplest form is: - Something comes in - Something happens to it - Something goes out - Sold to customer • Operations can be viewed from the supply network level, operation level or process level
Give 4 methods of Operations Planning Strategy
1) Top-Down Perspective: what the organisation wants operations to do
2) Bottom-Up Perspective: What day-to-day experience suggests the organisation should do
3) Operations Resource Perspective: What operations resources can do
4) Markets Requirements Perspective: What the market position requires the organisation to do
