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Semester 2 Exams > Lean Operations and Supply Chain Management > Flashcards

Lean Operations and Supply Chain Management Flashcards

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1
Q

Define supply chain management

A

Supply chain management is the management of the interconnection of organisations that relate to each other through upstream and downstream linkages between processes that produce value to the ultimate consumer in the form of products and services

(Slack et al, 2013)

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2
Q

Differentiate between the planning and control functions in the management of supply chains

A

Planning and control involves scheduling, co-ordinating, and organising operations activities.

Planning involves forecasting the future. Controlling involves realising the planned future.

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3
Q

What are the 5 + Operations Performance Objectives of a supply chain.

6 bullet points

A
  • Quality
  • Speed
  • Dependability
  • Flexibility
  • Cost
  • Contextual

Slack et al 2013

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4
Q

Define what a supply chain is

A

A supply chain consists of all the parties involved, directly or indirectly, in fulfilling a customer request.

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5
Q

What is meant by dependent demand

A

Dependent demand is derived from the demand for something else.

E.g. tires in auto plant

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6
Q

What is meant by independent deamnd

A

Independent demand is random.

E.g. tires in a tire fitter shop

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7
Q

What is the bullwhip or forester effect

A

The bullwhip effect occurs when customer demand shifts at the retail level, leading retailers to overreact and wrongly amplify their forecasting which impacts the whole supply chain.

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8
Q

How can the bullwhip effect be reduced

5 bullet points

A
  • Collaborative planning,
  • communication and supply chain visibility,
  • reduced lead times
  • demand and supply management,
  • software tools.
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9
Q

What is P:D ratio

Describe the ratio and the what P and D are

A

P:D is the ratio of total throughput time to the demand time.

Where P is the total throughput time (i.e. time taken by operations to design, resource, create and deliver product/service)

D is the demand time (i.e. the length of time a customer has to wait from asking for a product to receiving it)

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10
Q

How does P:D relate to product volume and variety?

A

P=D=1 (low) for low volume, high variety goods.

P:D will be high when products have high volume and low variety.

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11
Q

What are Lean Operations

A

Lean operations focus on configuring the strategy of an engineering business to achieve the performance objectives with minimal resources through continuous improvements.

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12
Q

What are agile operations

A

Agile operations focus on configuring the strategy of an engineering business ** to respond to customers’ changing needs** and preferences.

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13
Q

What is meant by logistics

A

Logistics involves the planning, implementation and control over the flow and storage of products from the point of origin to the point of consumption.

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14
Q

What is meant by distribution

A

Distribution is the process of delivering the finished physical products from a manufacturer or supplier to the end customer.

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15
Q

What are the characteristics of a functional product

2 bullet points

A
  • Long product lifecycle
  • Stable demand
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16
Q

What are innovative products

3 bullet points

A
  • Short lifecycle
  • High levels of innovation
  • Unpredictable demand
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17
Q

What is a stable supply process

A
  • A supply process where the manufacturing process and underlying technology are mature and the supply base is well established.
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18
Q

What is an evolving supply process

A

The manufacturing process and underlying technology are still under early development and are rapidly changing.

As a result the supply base may be limited in both size and experience.

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19
Q

What is an efficient supply chain

3 bullet points

A
  • Utilise strategies to create highest cost efficiencies
  • Non-value add activities are considered wastes and are constantly removed
  • Focus on leanness
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20
Q

What are agile supply chains

2 bullet points

A
  • Utilise strategies aimed at being responsive and flexible to customer needs
  • Risks of supply shortages or disruptions are hedged by inventory pooling or other capacity resources.
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21
Q

What are responsive supply chains

A

Utilise strategies aimed at being response and flexible to changing and diverse customer needs.

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22
Q

What are risk hedging supply chains

A

Use strategies of pooling and sharing resources in a supply chain to share risk of disruption.

A single entity in a supply chain can be vulnerable to disruption, the diversification reduces this risk.

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23
Q

What is the marshall fisher supply matrix

A

Matrix for matching supply chain strategies with product type.

Functional products require efficient supply chains. Innovative products require responsive supply chains.

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24
Q

Describe the Hau Lee matrix

A

Aligns supply chain strategies with product uncertainties.

Demand uncertainty (low for functional products, high for innovative products) and supply uncertainty (Low for stable processes and high for evolving processes)

Demand - Supply
Low - Low = Efficient SC
High - Low = Responsive SC
Low - High = Risk-Hedging Sc
High - High = Agile SC

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25
What is the Customer Order Decoupling Point (CODP)
The point at which the goods flow is sperated from forecast driven production to customer order driven production.
26
What is postponement of CODP and how can it help?
Postponement involves organising the production and distribution of products in a way that the unique customisation is made when the demand becomes known. This can be achieved through modularisation.
27
What are 8 benefits of modularising products? | 8 bullet points
* Reduced product variety * Utilise standard parts * Standardised interfaces between parts * Similar parts can be used in many products (interchangeability) * Reduces waste and achieves lean systems * Simplified and generalised Bills of Materials * Promotes agility, flexibility and effiiciency * Promotes customer self-service in final assembly of products
28
What are the four categories of uncertainty
* Process * Supply * Demand * Control
29
Name 7 risk identification techniques
* Geomapping/Supply chain mapping * Looking at historical problems * Researching industry trends * Experts brainstorming * Assessment surveys * Site visits * Information audits
30
Name 5 risk identification tools
Risk checklists Cause and effect diagrams Gantt charts Failure Mode Effect Analysis (FMEA) Questelligence Framework
31
What is Value Stream Mapping (VSM)
Mapping all actions/activities that are required to create and deliver a product at the highest possible level of efficiency
32
Why is VSM important | 6 bullet points
* Visualises individual and entire value streams * Uses tools to systematically review a value stream * Required cross functional involvement and decision making * Reveals what and where waste exists along the value chain * Enables the development of improvement plans * Shows the links between material and information flows.
33
What is Kaizen
The idea of continous positive change/improvement
34
What are the benefits of Kaizen | 5 bullet points
* Low cost solutions based on data and common sense * Results measured against quality, cost, delivery (QCD) indicators * Improvements are continous * Employees are involved * Immediate ROI
35
Name 5 techniques to improve flows in manufacturing
* Single Minute Exchange of Dies (SMED) * Kanban system * One piece flow * Takt Time * Heijunka
36
What is single minute exchange of die (SMED) and its benefits | 4 benefits
SMED is a lean technique that aims to reduce the equipment changeover time. Benefits: * Its needed to respond to changing demand * Can reduce time used for production by 50% * Redices changeovers and increases productivity * Increases the free flow of inventory
37
What is the difference between a push and pull (kanban) control system
Push systems make to the plan/schedule Pull/Kanban systems make to the customer demand.
38
What is a one piece flow and its benefits? | 7 benefits
One Piece Flow aims to produce one piece at a time by designing cells in a U shape and working from one end to another. Benefits: * Products created one by one * Product lead-time is shortened * Responsiveness to customers is enhanced * WIP can be eliminated * Defects spotted quickly * Multi-process working is more productive and satisfying for workers * Better team work.
39
What is Takt Time? | How to calculate and what it provides
Takt time is the found by taking the time available (hours) and dividing it by the customer demand (units) It provides the rythm to which the production should run in order to match production with demand.
40
What is Heijunka | What is does and how. What principles does it use
Heijunka is the smoothing/levelling of production. Aims to absorb sudden fluctuations in demand by producing several different models in small batches on the same line. Uses one-piece flow principles and standardises time uses Takt time
41
What are the 5S of Lean manufacturing
* Sort * Stabilise * Sweep * Standardise * Sustain
42
What are the 5 discrete steps in the lean methodology?
1. Identify customers and quantify value from their perspective 2. Value stream mapping 3. Create flow by eliminating waste 4. Respond to customer pull (switch from large batches to single units) 5. See perfection, there is always more to be done.
43
What is the focus of 6 sigma | General and defects ppm
Seek to improve processes by reducing defects and variation. Aims to only produce 3.4 defects per million opportunities DPMO
44
What is the 6 Sigma DMAIC
Define the problem Measure process performance Analyse the process to determine root cause of variation Improve the process Control the improved process performance
45
What are the five steps for ToC (Theory of Constraints)
1. Identify constraints 2. Decide how to exploit the constraint 3. Subordinate other steps 4. Elevate constraints 5. Repeat and correct the entire process
46
What is ROPE in the ToC
Roping is placing limitations on the production in the upstream operations. Necessary to prevent flooding on the constraint
47
What is buffer in ToC
A buffer is a stockpile of WIP in front of the constraint. Always keeps the constraint running if upstream operations are interrupted.
48
What is DRUM in ToC
Output of the constraint is the drumbeat and sets the tempo for all activities. Tells upstream what to produce, tells downstream what to expect.
49
What are the 8 wastes in manufacturing
- Defects - Overproduction - Waiting - Non-utilised Talent - Transportation - Inventory - Motion - Excess Processing
50
Describe **defects** as a manufacturing waste, causes and elimination strategies. | 3 causes, 4 elimination strategies
Products that deviate from quality standards. Causes: poor quality control systems Poor operator training Lack of standardisation Elimination strategies: Poke Yoke, Root cause analysis, Jidoka, standardised work
51
Describe **overproduction** as a manufacturing waste, causes and elimination strategies. | 3 causes, 6 elimination strategies
Excess finished goods beyond customer demands. Causes: speculation of high demand poor demand forecasting suboptimal systems automation Elimination strategies: Accurate demand and supply forecasting, JIT, Takt Time, cycle time, lead time, SMED
52
Describe **waiting** as a manufacturing waste, causes and elimination strategies. | 4 causes, 3 elimination strategies
Waiting to take the next sequential action/task in a process Causes: Unplanned machine downtime, mismatched workloads, Long setups, Insufficient workforce in upstream tasks. Elimination strategies: One piece flow, standardisation, VSM
53
Describe **non-utilised talent **as a manufacturing waste, causes and elimination strategies. | 5 causes, 3 elimination strategies
Unutilised skills of staff Causes: Poor communication, No teamwork, No motivation, Lack of creativity and ideas, No training and working in silos Elimination strategies: Training and staff motivation, enabling environment for creativity and innovation, job enrichment
54
Describe **transportation** as a manufacturing waste, causes and elimination strategies. | 4 causes, 4 elimination strategies
Movements of raw materials, WIP or finished goods that add no value Causes: Misaligned process flow, Non-sequential plant layout, Non-value adding steps in the process, location of the facility. Elimination strategies: VSM, continuous flow, ToC, Supply network design.
55
Describe **inventory** as a manufacturing waste, causes and elimination strategies. | 4 causes, 6 elimination strategies
Excess raw materials, WIP or finished goods needed to meet demand. Causes: Supply network inefficiencies, overproduction, long set-ups, ineffective inventory monitoring systems. Elimination strategies: JIT, kanban, SEMD, Takt time, One piece flow, supply chain planning/control
56
Describe **motion** as a manufacturing waste, causes and elimination strategies. | 3 causes, 4 elimination strategies
Non-value adding movement of people. Causes: Non-sequential plant layout, congestion of workstations, unstandardised processes. Elimination strategies: 5S, optimal layout design, one piece flow, value stream mapping.
57
Describe **excess processing** as a manufacturing waste, causes and elimination strategies. | 3 causes, 3 elimination strategies
Steps or features that add no value to the customer. Causes: Overengineering, Duplications of functions or processes, Lack of standardisation Elimination strategies: Optimal designs, VSM, efficient processes
58
What are the 5 steps for global supply chain risk management and mitigation
1. Risk Identification 2. Risk assessment and evaluation 3. Selection of appropriate risk management strategy 4. Implementation of Supply Chain Risk Management Strategy 5. Mitigation of supply chain risks
59
What are the 4 risk management strategies. From top left to bottom right on the probability/consequence matrix
1. Accept and reduce 2. Share and transfer 3. Retain and mitigate 4. Avoid and consider alternatives
60
What are the 5 risk management strategy implementations?
1. Avoidance -exit market or delay entering 2. Postponement - delay differentiation 3. Speculation - accepting the level of risk 4. Hedging - geographic dispersal of supply network and stock 5. Control - level of vertical/horizontal integration
61
What are 4 benefits of quantifying risk in supply chain risk management.
1. Risk prioritisation 2. Data-driven decision making 3. Performance measuring and monitoring 4. Financial alignment (i.e. by expressing risk in monetary terms, it aligns with broader enterprise and financial management)
62

Semester 2 Exams (2 decks)

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