SC- Exam 1

Question 1

Supply Chain definition

Answer 1

Flow of products and services from raw material, manufacture, final products, wholesale/ distributor, and retailer to end consumer.

Question 2

Supply chain is connected by:

Answer 2

Transportation and storage activities

Question 3

Supply Chain is integrated through:

Answer 3

information, planning, and integration activities

Question 4

SCOR

Answer 4

Supply Chain Operations References

Question 5

SCOR purpose

Answer 5

model/framework for managers to better understand the supply chain

Question 6

SCOR includes:

Answer 6

• planning
• sourcing
• making
• delivering
  -returning
  (enabling)
  -PROCESS DONE AGAIN & AGAIN ALONG SC

Question 7

Supply Chain Management (SCM)

Answer 7

The planning and managing of all activities involved in creating an efficient and value-added process across the org to meet customer needs

Question 8

SCM work towards…

Answer 8

• easier planning process
• efficient cost savings
• improve quality & service
• reduce bullwhip effect

Question 9

Bullwhip Effect

Answer 9

Small fluctuation in demand in the retail level can cause progressively larger fluctuations in demands at the wholesale, distributor, manufacturer and raw material supplier level

Question 10

Traditional Management vs. SCM

Answer 10

Traditional Mana.- focus on short-term and internal company performance
(Process management IS NOT budget-driven and input-focused operations )

SCM- requires HIGH levels of trust/ honesty, cooperation, collaboration and COMMUNICATION

Question 11

Operations Management (OM)

Answer 11

Designing and controlling the production of goods and services to ensure business are efficient in using resources.
Overall Goal: meet customer needs

Question 12

OM manage entire production system that converts…

Answer 12

Inputs into outputs

Question 13

OM enhances the value of goods and services by:

Answer 13

• improve efficient business process
• efficient use of resource
• transforms inputs into goods/ services
• consistent with the strategic goals of the firm
• is dynamic b/c of changes in customers’ demands resources, competition and tech

Question 14

Key Supply Chain Players

Answer 14

Firm, customers, suppliers and stakeholders

Question 15

Hierarchy of Strategy

Answer 15

Entails the functional units of an organization providing input into the other levels of strategy formulation

Cooperate level- goal and type of business

Business unit level- products/ services

Functional level- department focus (marketing, finance, etc.)

Question 16

SCM must:

Answer 16

• Communicate how OM activities provide value
• Support corporate strategy and success in financial terms

Question 17

Corporate level strategy

Answer 17

defines overall direction of the org and how to move towards high level ideas
- EX: NAICS- North American Industry Classification System

Question 18

Org strategies according to Michael Porter

Answer 18

Cost Leadership- pursue activities enabling low cost production

Differentiation- develop unique products/services valuable to customers

Focus- concentrates effort on defined market to achieve either a cost leadership or differentiation advantage

Question 19

Functional level strategies: Department level

Answer 19

marketing, finance, operations, procurements , and logistics

Question 20

Developing and Operation Strategy:
Key customers, Capabilities, Value Proposition

Answer 20

Key customers- key revenue sources for a business

Capabilities- what a firm does well, defines types of problems a firm can proficiently address

Value proposition- tangible and intangible “benefits” that a business offers (competitive priorities- the strategic emphasis on certain aspects of its operations )

Question 21

Product-Related Competitive Priorities:
Quality, Timeliness, Cost

Answer 21

Quality- meeting customer needs and desires

Timeliness- delivery or availability when customers want

Cost- expenses incurred in acquiring or using the product

Question 22

Process-Related Competitive Priorities:
Innovation, Flexibility, Sustainability

Answer 22

Innovation- radical and incremental changes in products and processes

Flexibility- ability to respond efficiently to changes in products, processes, and competitive environment

Sustainability- maintaining operations that are profitable and nondamaging to society or the environment

Question 23

Operations Strategy Development:
Execution and Feedback/measurement

Answer 23

Execution- to carry out plans and initiatives in order to deliver the realized value to customers

Feedback/Measurement- to assess, communicate, and manage performance to focus attention on areas needing improvement

Question 24

Process

Answer 24

system of structured activities that use resources to turn inputs into valuable outputs

Question 25

Juran's Law (on errors)

Answer 25

Human Error (15%) + Systematic Process Error (85%)= Problems (100%) "To improve operations, we should focus attention on processes first"

Question 26

Design Processes

Answer 26

develop new goods and services

Question 27

Strategic planning processes

Answer 27

determine how the firm should compete (long-term objectives)

Question 28

Production processes

Answer 28

plan and execute the supply, manufacture, and delivery of goods and services to customers

Question 29

Evaluation Processes

Answer 29

measure and report how well they are meeting their goals or using their resources

Question 30

Economies of Scale

Answer 30

As production volumes increase with additions of capacity, the unit cost to produce a product decrease to an optional level (UP production UP capacity = DOWN cost) To a certain extent, do not overproduce or the cost will start to go up!

Question 31

Lead strategy

Answer 31

dominant player and large scale

Question 32

Average strategy

Answer 32

add or remove capacity based on average demand

Question 33

Lag strategy

Answer 33

demand is known

Question 34

Business processes are constantly adjusting to ensure desired results

Answer 34

...

Question 35

Process thinking

Answer 35

views activities in an org as a collection of processes

Question 36

Business Process Improvement (BPI)

Answer 36

Analyze, review and improve of existing business process

Question 37

BPI Tools

Answer 37

- cross-functional teams - flow charts - value stream mapping - current state - future state

Question 38

Max capacity

Answer 38

highest output rate under ideal conditions, in the short term

Question 39

Utilization of max capacity

Answer 39

(Actual orders/ Max)* 100

Question 40

Effective Capacity

Answer 40

Achievable level under normal conditions, for an extended time

Question 41

Yield Rate

Answer 41

percentage of units produced as a percentage of inputs

Question 42

Utilization of max capacity

Answer 42

(Actual order/ Max)*100

Question 43

Utilization of effective capacity

Answer 43

(Actual orders/ effective)* 100

Question 44

Process of structure

Answer 44

determines how inputs, activities, and outputs of a process are organized - each org selects process structure that best fits its unique competitive priorities