SCM 301 #3

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Author:
belanger
ID:
271330
Filename:
SCM 301 #3
Updated:
2014-05-07 13:43:11
Tags:
Supply Chain
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Description:
scm
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  1. Ultimate goal of SC
    create value for end customers & firms in the SC

    • 1. measure & improve their SC coordination efforts
    • 2. Successfully integrate processes within and between firms
  2. To compete based on SC strategy a firm must:
    • understand the end user
    • leverage partner requirements & trade-offs
    • adjust SC member capabilities
  3. Understanding End Customer
    • variety of products
    • quantity & deliver frequency needed
    • service level desired
    • product quality desired
    • price of the product
  4. Understanding SC Partner Requirements
    • Cost
    • Quality
    • Quantity
    • Service
  5. Adjusting SC Member Capabilities
    • Responsive to customer needs
    • Anticipate changes in mkt
    • Control costs
  6. Total SCM cost
    • cost to process orders
    • purchase and mangage inventories
    • information systems
  7. SC cash-to-cash cycle time
    ave # of days between paying for materials and getting paid by SC partners
  8. SC production flexibility
    ave. time required to provide an unplanned 20% increase in production
  9. SC delivery performance
    Ave % of orders filled by requested delivery date
  10. SC perfect order fulfillment performance
    ave. % of orders that arrive on time, complete, and undamaged
  11. SC e-business performance
    Ave % of electronic orders received for all SC members
  12. SC Environmental performance
    • % of SC w/ ISO 14000 partners
    • Ave % of environmental goals met
  13. ISO Standards
    • ISO 14000: environmental management
    • ISO 9000: 5 international quality management standards of production
  14. GSCM
    Green supply chain management
    • addressing the need for protecting the environment
    • sharing of environmental responsibility
    • satisfy business & consumer needs
    • Sound environmental practices predominate
    • Adverse global environmental effects are minimized
  15. Carbon Footprint
    • Reducing greenhouse gas emissions
    • SC evaluate design configurations and various options for reducing total carbon emissions
  16. SC Operations References Model (SCOR)
    • Plan
    • Source
    • Make
    • Deliver
    • Return

    used for SCM diagnostic benchmarking & process improvement
  17. SCOR- Reliability
    • Delivery Performance
    • Fill rates
    • Perfect order fulfillment
  18. SCOR- Responsiveness
    Order fulfillment lead times
  19. SCOR- Flexibility
    • SC response time
    • Production flexibility
  20. SCOR- Cost
    • SCM cost
    • Cost of goods sold
    • Value-added productivity
    • Warranty cost or returns processing cost
  21. SCOR- Assets
    • Cash-to-cash cycle time
    • Inventory days of supply
    • Asset turns
  22. Process integration requires:
    • training
    • willing & competent partners
    • trust
    • organizational culture change
  23. SC Integration Model Activities
    • 1. Identif critical SC trading partners
    • 2. Review & establish SC Development Strategies
    • 3. Align SC Strategies with Key SC Process Objectives
    • 4. Internal Performance Measures
    • 5. Assess & Improve Internal
    • 6. SC Performance Measures
    • 7. Asses & Improve External
    • 8. Extent process to 2nd-tier
    • 9. reevaluate integration model annually
  24. Review & Establish SC Strategies for:
    • Parts purchased & suppliers
    • Shop layout & manufacturing processes
    • Design of the products
    • Mode of transport
    • Warranty & return services
    • Employee training methods
    • Types of info technologies used
  25. Align SC Strategies: 8 key SC processes
    • 1. CRM
    • 2. Customer service mgmt
    • 3. Demand mgmt
    • 4. Order fulfillment
    • 5. Manufacturing flow mgmt
    • 6. Supplier relationship mgmt
    • 7. Product development & commercialization
    • 8. Returns mgmt
  26. Silo Mentality
    • I win, you lose
    • cheapest suppliers
    • ignoring customers
    • assigning few resources to new product & service design

    • Solutions:
    • align SC goals with firm & incentives
    • performance reviews of mgrs. must include their ability to integrate processes internally & externally
  27. Obstacles to SC Integration
    • Silo Mentality
    • Lack of SC Visibility
    • Lack of Knowledge
    • Lack of Trust
    • Too much Variability
  28. Managing SC Risk
    • Increase SS (stockpiling/ forward buying)
    • Identify backup suppliers & logistics services
    • Diversify the supply base
    • Utilize a SC IT system
    • Develop a formal risk mgmt. program
  29. Managing SC Security
    • Reducing the risk of intentionally created disruption in SC operations
    • SC is only as secure as its weakest link
    • Security mgmt. collaboration should include contractual requirements for secure systems
  30. Lean Manufacturing
    • JIT +
    • philosophy using tools to economically optimize time, HR, assets, and productivity, while improving product and service quality
  31. Channel Integration
    Extending strategic alliances to suppliers' suppliers and customers' customers
  32. SCM Evolution
    • 1. Internally focused
    • 2. Functional integration
    • 3. Internal integration
    • 4. External integration
  33. Lean SC relationships
    Work with buyer & consumers with mutual goal of eliminating waste
  34. Lean Layouts
    WIP inventories close to each process
  35. Small batch scheduling
    • frequent small batches of product
    • frequent product changes
  36. Inventory and setup time reduction
    reduced inventory by reducing batch sizes, setup times, and SS
  37. Continuous Improvements
    Continual attention to problem sovling and process improvement
  38. Workforce Empowerment
    • cross-trained employees
    • Trained to perform quality inspections
  39. Lean Production Elements
    • Waste reduction
    • Lean SC relationships
    • Lean Layouts
    • Inventory & setup time reduction
    • Small batch scheduling
    • Continuous improvement
    • Workforce empowerment
  40. Six Sigma
    • Broad improvement strategy
    • Total quality management
    • focus on the customer
    • performance measurement
    • formal training in quality control methods
  41. DPMO
    number of defects / (Opportunities For Defect per unit)(# of units) * 1,000,000
  42. DMAIC Improvement Cycle
    • Define- CTQ
    • Measure- check sheets
    • Analyze- fishbone diagrams
    • Improve
    • Control
  43. Variable Data control charts
    • Xbar-chart
    • R-chart
  44. Xbar Chart
    track the central tendency of the sample means
  45. R-Chart
    track sample ranges, or the variation of the measurements within each sample
  46. Acceptance Sampling
    used with new or nonalliance suppliers furnish products

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