Supplychain Flashcards
(78 cards)
1
Q
Triple bottom line
A
People planet profit
2
Q
Competitieve dimensions
A
- Cost/price
2.product/service quality - delivery speed
- Delivery reliability
- Coping with changes in demand
- Flexibility and new product introdution speed
3
Q
Risk management OSCM
A
SUPPLYCHAIN COORDINATION RISKS
Day to day management
Safetystocks
DISRUPTION RISK
Disasters
4
Q
Other product specific criteria
A
Technical liaison & support
* Ability to meet a launch date
* Supplier after-sales support
* Environmental impact
* Other dimensions
5
Q
Risk management framework steps
A
- Indentify source of potential disruption (identify)
- Assess the potential impact of the risk (impact)
- Develop plans to mitigate the risk (plan)
6
Q
Strategic sourcing
A
The development and management of supplier relationships to acquire goods and services in a way that aids achieving the immediate needs of the business
7
Q
Strategic sourcing: specificity
A
refers to how common the item is and, in a
relative sense, how many substitutes might be available
8
Q
Strategic sourcing: request proposal (RFP)
A
used for purchasing complex or expensive
items; number of potential vendors; vendor responds with proposal
9
Q
Strategic sourcing: Request for bid/serverce auction
A
Same as RFP, but vendors bid in real
time
10
Q
Strategic sourcing: Vendor managed inventory
A
when a customer actually
allows the supplier to manage the inventory policy for an
item or group of items
Strategic Sourcing
11
Q
Supplychain uncertainty framework
A
12
Q
Functional products
A
- Porduct live cycle more than two years
- Conctrobution margin of 5 to 20 percent
- Only 10 tot 20 product variation
- An average forecast error of only 10 percent
- Lead time six months to one year
13
Q
Supply proces: Stable process
A
manufacturing process and underlying
technology are mature and supply base is well established.
13
Q
Evolving supply process:
A
manufacturing process and underlying
technology are still under early development and are rapidly changing.
Supply base is limited in both size and experience.
14
Q
Supplycahin strategies (framework): efficient
A
- Utilize strategies aimed at creating the highest cost efficiency
- Non-value-added activities should be eliminated
- Scale economies are aimed
- Optimization techniques are employed
- Efficient, accurate and cost effective transmission of information is
required
15
Q
Supplychain strategies (framework): risk hediging
A
- Utilize strategies aimed at pooling and sharing resources in a supply
chain to share risk - Common in retailing
- Real-time information sharing allows most cost-effective management
of goods between partners sharing the inventory
16
Q
Supplychain strategies (framework): Responsive
A
- Utilize strategies aimed at being responsive and flexible
- Build-to-order and mass customization processes are used
16
Q
Supplychain strategies (framework): Agile
A
- Utilize strategies aimed at being responsive and flexible to customer
needs - Risks of supply shortages or disruptions are hedged by pooling
inventory and other capacity resources - Combine the strength of “hedged” and “responsive” chains.
17
Q
Green sourcing steps
A
- Asses opperttunity
- Engage sourcing agents
- Asses the supply base
- Develop sourcing strategie
- Implement sourcing stragy
- Institunalize the sourcing strategy
18
Q
Rainforest alliance certifed
A
Companies that have green sourcing
19
Q
Acquisiton cost
A
Purchase planning costs
Quality costs
Taxes
Purchase price
Financing costs
19
Q
Ownership costs:
A
Energy costs
Maintenance and repair
Financing
Supply chain/network cost
20
Q
Post ownership costs
A
Disposal
Environment cost
Warranty cost
Product liability cost
Customer dissatisfaction
cost
20
Q
Production proces
A
- Source
- Make
- Deliver
21
Little's law
Inventory = throughput rate x flow time
21
Production process matrix
22
Production process design: Project layout
- The product remains in a fixed location
* Labor, material, and equipment are moved to the product
* A project layout may be developed by arranging materials according to their assembly
priority
23
Production process design: workcenter layout
Bepaalde apparatuur staat op dezelfde plek
- - Most common approach to developing this type of layout is to arrange workcenters in
a way that optimizes the movement of material
* Optimal placement often means placing workcenters with high levels of
interdepartmental traffic adjacent to each other
* Sometimes is referred to as a job shop and is focused on a particular type of
operation
* Competes on quality, speed of delivery, customization, innovation, not economies of
scale
24
Production process design: Manufacturing cell layout
* A dedicated area where products that are similar in process requirements are
produced
* Cells are designed to perform a specific set of processes
* Dedicated to a limited range of products, typically at lower volumes
25
Production process design: assembly line
* Work processes are arranged according to the progressive steps by which the product is made
* Area where an item is produced through a fixed sequence of workstations, designed to achieve
a specific production rate
26
Production process design: Continuos process
* Similar to assembly line, follows a pre-determined sequence of steps, but flow is
continuous.
* Usually highly automated structures
* May constitute an “integrated” machine operating 24 hours a day
27
Assemblyline balancing
1. Specify the sequential relationships among tasks
using a precedence diagram.
2. Determine the required workstation cycle time (C).
3. Determine the theoretical minimum number of
workstations ().
4. Select a primary rule to assign tasks to workstations
and a secondary rule to break ties.
Assembly-Line Balancing
5. Assign tasks (one at a time) to the first workstation
until no more tasks can be added (due to cycle time
or sequencing constraints). Repeat for all subsequent
workstations until all tasks are assigned.
6. Evaluate the efficiency of the balance
7. If efficiency is unsatisfactory, rebalance using a
different rule.
28
Type forecasting
1. qualtitative
2. Quantitative
29
Soorten trends
30
Components of demand
Average
Trend
Seasonal element
Random variation
Cyclical inlfuence = impact form political, war etc
Autocorrelation
31
Simple moving average
* Forecast is based on average demand over the most recent periods
* Useful when demand is not growing or declining rapidly, and no seasonality is present.
* Removes some of the random fluctuations from the data.
* Selecting the period length is important.
* Longer periods provide more smoothing.
* Shorter periods react to trends more quickly.
32
Simple moving average
33
Weighted moving average
33
Weighted moving average
The simple moving average formula implies all periods are equally important.
* The weighted moving average allows unequal weighting of prior periods.
* The sum of the weights must be equal to one.
* More recent data (periods) are given more significance (higher weights) than
older data.
34
Choosing weights (forecast)
* Experience and trial & error are the simplest approaches.
* The most recent past is the most important indicator of what to expect in the future, so
weights are generally higher for more recent data.
* If the data are seasonal, weights should be established appropriately.
* The weighted moving average has an advantage over the simple moving average.
35
Lineair regression analysis
Regression - the functional relationship between two or
more correlated variables, usually from observed data.
* One variable (the dependent variable) is predicted for
given values of the other variable (the independent
variable).
* Linear regression is a special case which assumes the
relationship between the variables can be explained with
a straight line.
35
Time series
* Time series - chronologically ordered data.
* A time series may contain one or many elements.
* Trend, seasonal, cyclical, autocorrelation, and random
36
Decompostion
Decomposition – the process of identifying and separating time series
data into fundamental components:
* Trend.
* Seasonality.
37
Addictive seasonal variation
Trend + seasonal factor
38
Multiplicative seasonal variantion
trend x seasonal index
39
Choosing forecast model
1. Time horizon to forecast.
2. Data availability.
3. Accuracy required.
4. Size of forecasting budget.
5. Availability of qualified personnel.
40
Forecast error
the difference between the forecast value and what actually occurred.
* All forecasts contain some level of error.
* Sources of error:
* Bias – when a consistent mistake is made.
* Random – errors that are not explained by the model being used.
40
MAD
Meaurments of error
* Ideally, MAD will be zero (no forecasting error).
* Larger values of MAD indicate a less accurate model.
41
Moet absolute waarde zijn
42
MAPE
Mean absolute percent error (M A P E) scales the forecast error to the magnitude of demand.
43
43
TS
Measurement of error: Tracking signal indicates whether forecast errors accumulate over time (either positive or negative).
44
RSFE = The running sum of forecast errors, considering the nature of errors (verschil tussen forecast en actual bij elkaar optellen) (e.g., negative errors cancel positive errors and vice versa).
MAD = The mean absolute deviation
45
Qualitative forecasting techniques
* Generally used to take advantage of expert knowledge.
* Useful when judgment is required, when products are new, or if the firm has little experience in a
new market.
Examples of techniques:
* Market research
* Historical analogy
* Panel consensus
* Delphi method
46
Delphi method
47
Sales and operations planning (S&OP)
* Sales and operations planning is a process to resolve this struggle between those selling the product,
those supplying the product, and those keeping track of the money that goes on month after month.
* The process is designed to balance supply, demand, and money! And of course, keep them in balance over
time.
IMPORTANT: This must occur at an aggregate level and also
at the detailed individual product level.
48
Aggregate operation plan
Aggregate operation plan – a plan for labor and production for the intermediate term with the objective to
minimize the cost of resources needed to meet the demand.
49
Why is S&OP important
* better customer service,
* lower inventory,
* shorten customer lead times,
* stabilize production rates
50
Types of planning
Long-range planning (Strategic)
* Planning focusing on a horizon greater than one year,
usually performed annually.
Intermediate-range planning (Tactical)
* Planning focusing on a period from 3 to 18 months,
time increments are weekly, monthly, or quarterly.
Short-range planning (Operational)
* Planning covering a period from one day to six months
with daily or weekly time increments.
7
51
Inputs to the production planning system
52
Aggregate operation plan
Specifies the optimal combination of
* Production rate (number of units completed per unit of time – such as per hour/day).
* Workforce level (number of workers needed in a period).
* Inventory on hand (unused inventory carried from previous period).
* Production = Production rate × Workforce level.
* It is common to set the production rates by product group or broad category (aggregation).
53
Production planning chase strategie
Chase strategy - Match the production rate by hiring and laying off employees!
When applicable: When having a pool of easily trained applicants
Downside: When order backlogs are low, employees may
feel compelled to slow down out of fear of being laid off as soon as orders are
completed (Motivation impact).
Subcontracting is a similar strategy!
Benefit: captures the fluctuation in demand
Downside: Lose control over schedule and quality
54
Production planning strategies: Stable workforce
Stable workforce (variable work hours) - Vary the number of hours worked
through flexible work schedules or overtime.
Benefit: provides workforce continuity and avoids many of the emotional and
tangible costs of hiring compared to the Chase strategy.
Downside: not always applicable!
55
Production planning strategies: Level strategie
Level strategy - Maintain a stable workforce working at a constant output rate.
Benefit: stable working hours.
Downside : potentially decreased customer service level, increased inventory costs, inventories might become obsolete, and lost sales!
56
Relevant costs
* Basic production costs: fixed and variable
* Direct and indirect labor costs including overtime compensations
* Costs associated with changes in production rate
* Hiring, training, and laying off personnel
* Inventory holding costs
* Storing, insurance, taxes, spoilage, and obsolescence
* Backordering costs
* Costs of expediting, loss of customer goodwill, loss of revenue due to backordering
57
Cut and try approach
* Involves costing out various production planning alternatives and selecting the one that is best.
* Elaborate spreadsheets are developed to facilitate the decision process.
58
Lineair programming
* Use of mathematical analysis to determine an optimal plan.
59
Simulation
* What-if analysis using simulated demand to evaluate the effectiveness of alternative plans.
60
Exact production workforce
Produce to exact monthly production requirements by varying workforce size.
61
Constant workforce
Produce to meet expected average demand by maintaining a constant workforce
62
Constant low workforce
Produce to meet the minimum expected demand using a constant workforce and
subcontract to meet additional requirements.
63
Constant workforce
Produce to meet expected demand for all but the first two months using a constant
workforce and use overtime to meet additional output requirements.
64
Material requirement planning
The logic that ties production functions together from a material planning and control view.
A logic to easily understand the approach to the problem of managing the parts, components, and materials
needed to produce end items.
* How much of each part to obtain?
* When to order or produce the parts?
65
When use MRP
65
MRP system structure
* Master schedule.
* Bill-of-materials file.
* Inventory records file.
* Output reports.
66
Yield management
The process of allocating the right type of capacity to the right type of customer at the right price and time to
maximize revenue or yield.
* Can be a powerful approach to making demand more predictable
* Increase sales in low sales seasons
* It is important for aggregate planning
67
When use yield management
Most effective when:
* Demand can be segmented by customer.
* Fixed costs are high and variable costs are low.
* Inventory is perishable.
* Product can be sold in advance.
* Demand is highly variable.
68
Operating yield management
* Pricing structures must appear logical to the customer and justify the different prices.
* Must handle variability in arrival or starting times, duration, and time between customers.
