Flashcards in Lecture 3 Deck (12)
What is the top-down perspective on strategy?
Top tier (corporate strategy)
Intermediate tier (business unit strategy)
Bottom tier (functional strategy)
Encompasses entire business strategy/functions
What is lean strategy?
Eliminating waste in a pull based value stream of activities with level production (I.e even production runs with neither idle time nor surges in demand) and JIT inventory management
Efficiency or flow emphasised
Low levels of inventory
Pull system (JIT)
Reduced/ eliminate waste
What is agile strategy?
Designed to cope with volatility
Acts as a demand chain
Promotes mass customisation
Often incorporates postponed production
What are the principles of lean consumption?
Solve the customers problem completely, don’t waste the customers time, provide exactly what the customer wants, where and when it’s wanted, continually aggregate solutions to reduce the customers time and hassle
What are the seven wastes?
Overproduction, waiting, transportation, inappropriate processing, unnecessary inventory, unnecessary motion, defects
What is managed inventory?
Fits JIT strategy
Supplier takes responsibility for inventory management, data sharing is key, several suppliers(1st tier) may work collaboratively to achieve inventory requirements, JIT is dominantly predictable
Doesn’t work for banks (data sharing)
What is mass customisation?
Different product configurations contain a majority of shared components and features to accommodate volume and variety
Enabled by postponement:
-Allow postponement of the final product customisation as far downstream as possible
-Not only applied to manufacturing
Which supply model to adopt?
Is there predictable demand?
What’s the lead time?
What’s the market characteristics?
What is the product life cycle?
Is there product variety?
Timing of demand?
What is the Pareto principle?
80% of margin produced by 20% of product
What is craft production?
Bespoke production of product and service according to customer demand
What is the decoupling point?
It’s after standardisation, delaying finalisation of products