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ProKit Exam 1 > Supply Chain Management > Flashcards

Supply Chain Management Flashcards

1
Q

What areas are a part of SCM?

A 
Inbound Logistics
Inplant Logistics 
Outbound Logistics
Customer Management
Supplier Management
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2
Q

SCM is…

A

Supply Chain Management is the process of planning, implementing and controlling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible.

Supply Chain Management spans all movement and storage of raw materials, work-in-progress inventory and finished goods from the point-of-origin to the point-of-consumption.

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3
Q

What does flow focus SCM include?

A

Material flow, information flow, money flow

Supply Chain Management is integrated process orientated planning and control of material, information and money flows along the whole value chain from the customer to the raw material supplier.

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4
Q

The automotive industry is divided into what three SCM areas?

A

inbound logistics
intra logistics
outbound logistics

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5
Q

What are the 7 R’s of Logistics?

A 
Right Place
Right Price
Right Product
Right Time
Right Condition
Right Amount
Right Customer
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6
Q

What is the logistics structure?

A

Sales logistics, procurement logistics, production logistics, distribution logistics, reverse logistics

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7
Q

What are the holistic optimization approaches for Operations and Supply Chain?

A

TOS+ and E2E

Reduction of waste throughout the entire Supply Chain.
The holistic optimization approach for operations and supply chain is crucial!

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8
Q

Line-back principle is…

A

At the point where added value is created, in this case at the assembly line.
All processes in the supply chain upstream to the supplier are analyzed line back.
The common target from production and logistics is to avoid or reduce non-value added activities and reducing variance in cycle times at the point where the value is added.
The sum of all changes throughout the entire supply chain must result in greater efficiency.

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9
Q

Inbound logistics focus on…

A

incoming material flows and the associated information flows

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10
Q

What does minimal order-to-delivery time & cost mean?

A

–Early production sequence planning & adherence (Vision: String of pearls quality of >98%)

–Stable scheduling & order release in frozen zone

–Optimized global production network steering

–Quick reaction and steering options by holistic transparency on demands, stocks & costs

–Optimization of Total Landed Costs

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11
Q

Which weak points can be detected within the supply chain from the supplier to the manufacturer?

A
  • -High variation in demand
  • -Unlevelled truck arrivals
  • -Unknown status Inbound transport (ETA, Quantity)
  • -No transparent Supply Chain Costs
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12
Q

The target for the Inbound logistics processes is…

A

to achieve maximum efficiency, but at the same time allowing flexibility and reactiveness.

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13
Q

What are some activities of inbound logistics?

A

Order placements at the suppliers
Order allocation between supplier and manufactory
Choice of delivery and transportation concept for the receipt and storage or immediate use of the materials

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14
Q

What are inbound logistics KPIs?

A

Transportation costs
Handling costs
Inventory costs
Service level Agreements

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15
Q

What are the four main areas that need to be considered with inbound logistics?

A

Focus on trucks
Sort it and consolidate deliveries
Select the best framework and cost-efficient transport
Avoid flights and vans

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16
Q

What do you have to consider to achieve the maximum efficiency for logistics?

A

I need to consider the whole Supply Chain.

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17
Q

What does the transportation concept tell me?

A

The transportation concept describes the way in which parts are transported from the supplier to the assembly plant.

Direct delivery
Milkrun
Area Contract Freight Forwarder / Groupage freight

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18
Q

What are the 4 main delivery concepts?

A

Direct delivery to incoming goods area
Delivery via trailer yard
Warehouse on wheels
Automatic unloading

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19
Q

Delivery management is best/preferable at fixed volume or fixed time?

A

Fixed time

Support of line-back principle in general
Constant utilization of goods receipt zone
Possibility to implement JIT / JIS deliveries
etc.

preferable for continuous implementation of the lean approach.

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20
Q

Just-in-time (JIT) is the most efficient supply form, due to?

A 
minimum material inventory
short lead times
high flexibility and ability to react
deployment of resources with minimal costs
consistent customer orientation

Consistent implementation of JIT enables to achieve lean management also in the supply of material.

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21
Q

What does Just-in-sequence (JIS) supply do?

A

combines the JIT philosophy with the necessity of controlling high variance

  • -supply of part families with a very high variance
  • -minimum material inventory
  • -short lead times

JIS is ideally a process without inventory, which is characterized by sequenced delivery of parts, modules and systems.

JIS is particularly suitable for high-variant part supplies with high volumes such as bumpers, main cable harnesses and door panels.

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22
Q

What is Logistic center supply form?

A

A defined area in which all activities related to transportation, logistics, and distribution of goods are carried out

material stock belongs to supplier
one-stage storage process
stock close to the assembly point
supplier responsible for stock
supplier pays storage costs

** is not a “lean” supply form for the production

The principle of establishing a supplier logistics center approach is acceptable, BUT the implementation is anything but “lean”.

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23
Q

Intra logistics is also called

A

in-plant logistics

It focusses on all logistic processes within the plant.

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24
Q

What are the different possibilities where incoming goods can be stored within our plant?

A

in a storage directly in the plant
in a Warehouse on Wheels (WoW)
in a Plant Consolidation Center (PCC)
in an “industrial” i-Park

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25
Q

How is the inventory controlled?

A

consumption controlled

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26
Q

Why do we see buffer in production?

A

To decouple two succeeding process steps with different cycle times.
To decouple production, transportation and consumption.

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27
Q

What are the two floor storage types?

A

Block storage- goods are placed so closely together that it is not possible to access each individual container
Line storage- An aisle is kept free between goods which enables the stacking vehicles to access every bay individually

28
Q

What are the three types of shelf racking?

A

Pallet rack- standardized for pallet size
Flow/push-back pallet rack- individual compartments sorted by product
Compartment shelving- shelves are stocked with different items that can be picked individually

29
Q

What are the two types of high bay storage?

A

Automated small parts warehouse

Pallet high bay store

30
Q

What is a Plant Consolidation Center (PCC)?

A

A PCC is a logistics area upstream of the assembly plant that can contain several different logistical functions:
Supplier Logistics Center (LLZ )
Sorting of goods deliveries according to unloading point (cross-docking)
Load carrier management (empties processing)
Picking of individual vehicle components to assembly sets (SetKom )
forming the production sequence of finished vehicle parts (sequencing)
Final assembly of vehicle components in production sequence (industrial park)
Buffering (Local parts < 1 working day stock)
Storage (Overseas < 3 working days stock)
upstream to a PCC: Traileryard (> 3 working days stock)

31
Q

Which forms of storage space organization exist and what are the main differences?

A

Chaotic storage location management requires an increased IT effort (in comparison to a fixed space allocation) and assigns empty storage locations to random goods

Fixed space allocation: Fixed storage locations are assigned to every product

32
Q

What is the objective of the supermarket?

A

To reduce replenishment time and therefore

Reduction of lead time

33
Q

Which indicators will be reduced as a result of the supermarket?

A
  • needed floor space at the assembly line
  • number of different parts at the assembly line
  • stock range at the assembly line
34
Q

What happens to stock levels when a supermarket is introduced?

A

Stock level goes down at the assembly line

35
Q

What processes have to be followed prior to the implementation of a supermarket?

A

The processes for empty and full containers must be considered.
• The design principles in supermarket planning must be considered.

36
Q

How would you implement a supermarket?

A
  1. Analyse the parts matrix
  2. Calculate floor space requirements based on parts matrix
  3. Identify driving paths
  4. Check and design repacking area
  5. Consider best location for supermarket in overall hall layout
37
Q

What are the advantages of building a set?

A
  • optimal parts presentation even with increased number of variants
  • no variability in parts-picking and enable parallel picking
  • it is possible to find an ideal picking position for the value-adding process in order to reduce waste, variability and space-utilization

Picking: Separating parts presented in bulk into portions for individual vehicles

Set formation: Grouping parts (for one process step) for an individual vehicle

Prerequisites
• High degree of variation
• Other containers not possible/ too expensive
• Check Top-up as an alternative

38
Q

What are the prerequisites for implementing a minomi process?

A
  • other containers are not possible or too expensive

* parts with high degree of variations

39
Q

What are the three main different types of towing vehicles?

A

forklifts
route trains
horizontal order pickers

40
Q

What are the necessary elements of a large container cycled tugger route?

A
  • Unload empty containers at station
  • Load full containers at station
  • Load full containers – remove kanban; remove empty containers at assembly point
  • Supply according to a fixed takt
41
Q

What are the stages of improvement for a lean large container route?

A
  1. Large container route
  2. Takted large container route
  3. Lean large container route
42
Q

What influences the choice of the towing vehicle and trailer?

A
  • Turnover

* Transport capacity

43
Q

What are the necessary elements of a small container cycled tugger route from the supermarket?

A
  • Load tugger route in the supermarket incl. KANBAN card
  • Supply according to a fixed takt
  • Load full containers - remove KANBAN & remove empties
  • Drop off empty containers & orders in the form of KANBAN
44
Q

Why could an improvement of the small container route be necessary?

A
  • reduction of LOG costs
  • changing takt time of the assembly line
  • increased product variants
45
Q

How does container type and parts presentation influence the three losses (waste, variability and inflexibility)?

A
  • fluctuating cycle times due to different presentation of the parts
  • waste caused by material handling
  • high stock and long lead times
  • inflexibility caused by large container
46
Q

What different container types do you know?

A
  • small containers
  • large containers
  • special containers
47
Q

What are the advantages of the First in First Out (FIFO) principle?

A
  • avoids assembling old parts

* enables early identification and reporting of faults (in the event of quality issues or model change

48
Q

Why is a constant picking point important?

A
  • You have less variability in the work cycle.

* The material handling effort is low.

49
Q

Why is visual management an important principle?

A
  • reducing the risk of mixing up different parts

* You have the possibility to identify missing material on time

50
Q

What is a saving and what is a counter-effect of small containers?

A 
Saving 
• reduced stock 
• improved ergonomics 
• reduced floor space 
• reduced walking distances 
Counter-effect 
• increased container handling 
• container handling at the station 
• KANBAN card handling 
• supermarket supervision effort
51
Q

Why is it important to question general paradigms?

A

It is important to question general paradigms because incorrect assumptions and insufficient process knowledge often lead to incorrect assessments and decisions in the interaction of production and logistics.

52
Q

What is outbound logistics?

A

Outbound logistics focuses on the outgoing material flows and the associated information (and financial) flows.

The outbound logistics aims to provide the products to the customer of a value chain with the desired quantity, quality and type of products specified in a customer order.

The outbound logistics additionally is a function of the strategic marketing concept, as it is related to the customer satisfaction. Customers themselves can be different entities, from internal corporate customers to external corporate customers.

In the outbound training we have a look at the management of resources and processes used to deliver our product from the manufacturer to the point-of-sale, including storage at warehousing locations, delivery to retail distribution points or customer sites or homes.

53
Q

What are the 4 prerequisites that must be filled for efficient E2E outbound processes?

A

High stability in the pearl chain
Ensuring an on time delivery within the production
Ensuring the right quality of the products
Financial release for the orders before scheduling production timeline

54
Q

Strategy focus steps are?

A
  1. Service level management
  2. Order and demand management
  3. Production managmenet
  4. Supply management
  5. Distribution management
  6. Overarching elements
55
Q

Network focus SCM is?

A

Supply Chain Management is the common design, planning, execution and control of supply processes within supply networks with more than one partner on at least one tier.

56
Q

TOS+ and E2E ensure a holistic optimization approach for?

A

Operations and SCM
Reduction of waste throughout the entire Supply Chain.
The holistic optimization approach for operations and supply chain is crucial!

57
Q

Just-in-ssequence (JIS) is what?

A

manufacturing and supply of high-variant parts synchronized with production

58
Q

What are the characteristic features of JIT?

A

Minimum material inventory

Short lead times

Deployment of resources with minimal costs

59
Q

What are the characteristic features of JIS?

A

Minimum material inventory

Short lead times

Supply of part families with a very high variance

60
Q

What are the characteristic features of a supplier logistics center?

A

Supplier responsible for stock

Supplier pays storage costs
Material stock belongs to supplier

61
Q

What will happen if you have JIS implemented and the actual production sequence will change after the production sequence was frozen in?

A

Re-sequencing is necessary

Re-consider JIS, maby JIT is the better option if the sequencing quality (pearl chain) turns out to be not high enough

62
Q

JIT is suitable for?

A

The JIT process is suitable for parts with a low level of variance and a high transport volume that are produced at short notice and can be supplied without storage.

63
Q

JIS should only be used when?

A

There are greater demands on JIS supply than on JIT supply which is why JIS supply should only be used where parts variance demands for supply in assembly sequence.
JIS supply should only be used where parts variance demands for supply in assembly sequence.

64
Q

Under which circumstances is a logistics center suitable?

A

The supply form logistics center is suitable for all deliveries (sorted by part number) that cannot be handled via JIT.

65
Q

What is Minomi?

A

Minomi:
•Material presentation without container/ carrier (Minomi ≈ without carriers)
•Always in special racks or frames
•Filling by upstream process (Subassembly, supplier)
•Three-stage gravity-driven sliding system
•Unmixed or sequenced deliveries

Prerequisites:
•High degree of variation
•Other containers not possible/ too expensive
•Check Top-up as an alternative

ProKit Exam 1 (7 decks)

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