Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
313 Cards in this Set
- Front
- Back
- 3rd side (hint)
|
Escalation p.71
|
Shipment may be damaged, lost incorrect or late. Contact to rectify situation.
|
|
|
|
Corrective action p.71
|
To avoid escalation of claims. Tell goods have been lost and try to get back.
|
|
|
|
Freight Bureaus p.72
|
Organizations that perform freight auditing
|
|
|
|
MRO p.76
|
Maintenance, repair, and operating supplies. Good standardization start.
|
|
|
|
Interchangeable Parts p.77
|
component that can be substituted for items equal to or better than the brand named item
|
|
|
|
Do this before any standardization project
|
Return on Investment analysis and or TCO analysis
|
|
|
|
Sources of Standards p.78
|
Internal Organization
Government International (ISO - international organization of standards) |
|
|
|
ISO 9000
|
fundamentals and vocabulary
|
|
|
|
ISO 9001
|
Quality management systems
|
|
|
|
ISO 9004
|
Guidelines for performance improvements
|
|
|
|
ISO 19011
|
Guidelines for auditing quality
|
|
|
|
ISO 17799
|
Information security management system
|
|
|
|
ISO 28000
|
security issues at all stages of supply process
|
|
|
|
ANSI
|
American National Standards Institute-Facilitates the voluntary setting of consensus standards and oversees their integrity. (example is EDI Standards)
|
|
|
|
UNESCO
|
United Nations Educational Scientific and cultural organization-standards in international setting with different cultures
|
|
|
|
Passive RFID
|
can only be read
|
|
|
|
Active RFID
|
can be read and updated
|
|
|
|
Provides the manifest for shipping containers sealed at the factory
|
RFID Tags
|
|
|
|
Bar Coding
|
Codes are machine readable. Read by scanner. UPC is universal product code.
|
|
|
|
UID / IUID
|
(Item) Unique Identification Device - retrieve data encoded on machine readable media. They encode data on an object with unique item identifier. *Department of Defense
|
|
|
|
Business continuity
|
sustaining of business operations in support of customer needs. Capabilities communication and data must be maintained (disaster recover)
|
|
|
|
Supply continuity
|
continued receipt of supplies in event of a disruption. Multiple facilities, suppliers, quality systems.
|
|
|
|
Key considerations in warehouse management plan
|
1. meeting customer requirements
2. cost 3. technology available |
|
|
|
First step for a WMS change
|
Describe current state of affairs...process flow
|
|
|
|
Special Requirements (warehouse)
|
temperature controlled, high value items, flammable, or sensitive
|
|
|
|
Fixed Storage Locations
|
stores the inventory item in a set physical location. shelf and bin-always there. Lower space utilization and higher accuracy.
|
|
|
|
Random Storage Location
|
Store in any available space. Higher utilization of space and lower accuracy.
|
|
|
|
Customer Requirements based on:
|
Frequency of order
Size of order Variety of items Method of shipment amount of processing special handling packaging requirements security requirements |
|
|
|
Private Ownership (warehouse structure)
|
owning warehouse- fixed cost on income statement and fixed asset on balance sheet. Results in better control and better customer service.
|
|
|
|
Leased or outsourced warehouse (Public Warehousing)
|
short term or long term leases. Hiring a separate org. that specializes in warehousing and transportation. 3PL
|
|
|
|
3PL
|
Fill warehouse needs and perform supplier managed inventory replenishment.
|
|
|
|
Centralized Warehouse System
|
Order replenishment decisions made in one location. Requirements of distribution and warehouse combined. Results in volume purchasing for larger cost savings.
|
|
|
|
Decentralized Warehouse System
|
Each location functions independently from all others in the system. Decisions can be made faster and are more closely matched to the customers' demand from a given site. Higher costs, smaller orders, more inventory.
|
|
|
|
Fixed Items
|
permanent location for that item. Change if obsolete or demand fluctuates. Not best space utilization.
|
|
|
|
Random Floating Locations
|
Stored at multiple locations, high inventory turn. Good space utilization
|
|
|
|
Overflow Location
|
More inventories come into warehouse than expected. This is temporary. Last in, first out to free up space.
|
|
|
|
Point of use locations
|
Managed by visual kanban method. Store close to the consumption area and replaced on a pull signal only when demand is required. Used when warehouse has assembly services.
|
|
|
|
DRP (Dist. Replenishment Systems)
|
Distribution Requirements Planning: Time based demand from dist. center to balance the customer fill rate against inventory investment.
Time phased order points. Links customers, dist. centers, warehouses and manufacturing plans. |
|
|
|
Kanban Replenishment
|
Lean concept to minimize inventory and replace inventory or materials only when there is demand. Means "signal.
|
|
|
|
ABC inventory classification system
|
20% of items held in inventory for resale will generate 80% of the sales revenue.
-Top 20% in sales rev. are A -Next 30% are B (15% of rev) -C 50% generate 5% rev *B and C may be critical |
|
|
|
Cycle Counting
|
Physical stock checking system in which the inventory is divided into groups that are physically counted at predetermined intervals, depending on their ABC classification.
A will be counted with more frequency than B or C |
|
|
|
Perpetual Inventory Review System
|
AKA continuous review system - immediate recording of transactions for each item. Records should agree with actual stock count in warehouse.
This method uses reorder points. |
|
|
|
Periodic inventory review system
|
Records transactions in batches on a scheduled periodic basis. An order is placed at the end of each review. "Order-up-to"
|
|
|
|
Inventory Accuracy and Integrity
|
Know rates of usage and if it is in fit shape to be used.
|
|
|
|
SKU (stock keeping unit)
|
Items kept in inventory at a specific location. Creating SKU's is the first step in identifying and controlling inventory.
|
|
|
|
Physical Inventory
|
Raw Material, finished goods, inventory, repairs and operations items.
|
|
|
|
Record Management
|
Systematically control the records of orders from the creation of the documentation or receipt of the order through production, assembly, distribution, maintenance, and retrieval to disposition.
|
|
|
|
Shrinkage
|
Items lost, stolen or misplaced. Some material naturally lost.
|
|
|
|
Yield Loss
|
Form of shrinkage- usable output to input...in situations where not all output may be perfect or function great. There are some defects, etc.
|
|
|
|
Issue and Return
|
store...inventory going out or coming into the warehouse. There is picking-staging-delivery.
Returns require returning materials authorization (RMA) |
|
|
|
Push environment (issue and return)
|
delivered to next operation regardless of demand for the item
|
|
|
|
Pull environment (issue and return)
|
material not issued until there is a demand requesting the materials
|
|
|
|
Recouping (inventory)
|
strategy in place to recover losses in inventory or other assets when disposal is necessary due to obsolescence or damage.
Ex. Printer loss but ink cartridge gain....Game console loss but games sales gain. |
|
|
|
Inventory Consolidation
|
Reduction of safety stock. Multiple locations to be combined to one with least average lead time.
|
|
|
|
Security (of items in warehouse)
|
Procedures for placing into inventory, receiving, requesting materials, picking and releasing to requestors or factory floor.
|
|
|
|
Push environment (issue and return)
|
delivered to next operation regardless of demand for the item
|
|
|
|
Pull environment (issue and return)
|
material not issued until there is a demand requesting the materials
|
|
|
|
Recouping (inventory)
|
strategy in place to recover losses in inventory or other assets when disposal is necessary due to obsolescence or damage.
Ex. Printer loss but ink cartridge gain....Game console loss but games sales gain. |
|
|
|
Inventory Consolidation
|
Reduction of safety stock. Multiple locations to be combined to one with least average lead time.
|
|
|
|
Security (of items in warehouse)
|
Procedures for placing into inventory, receiving, requesting materials, picking and releasing to requestors or factory floor. C-TPAT
|
|
|
|
When are US importers responsible for goods (security requirement)?
|
From the time container leaves factory where good are produced. RFID is useful in meeting this requirment.
|
|
|
|
manifest
|
itemization of the items included in a shipment
|
|
|
|
Inventory Policies and Procedures
|
Safety and Security - training of personnel, drills, reviews of concepts...rewarding employees
Inventory accuracy in cycle counting - high value items should be checked by supervisory personnel Tolerance adjusting C level items Procurement policies - EOQ, level of spend, minimum buys |
|
|
|
Location of Materials
|
Scented? Hazardous? Flammable? High risk of pilferage...etc.
|
|
|
|
Current Assets
|
Short term resources owned by an organization, including cash, inventory, and accounts receivable. Life of one year or less.
|
|
|
|
Fixed Assets
|
Asset that lasts more than a year with an impact on shareholder value that is worth controlling. Property, plant, equipment. You can depreciate.
|
|
|
|
Intangible Assets
|
Brand name, goodwill, reputation, patents or trademarks and have value but cannot be physically seen or touched. Usually life greater than a year.
|
|
|
|
Investment Assets
|
Use of capital to creater more money, through income producing vehicles or risk oriented ventures.
|
|
|
|
Deferred Cost
|
Incurring an expenditure that has a future benefit in excess of one year that is capitalized to an asset account.
|
|
|
|
Asset Tags
|
Provide a record of the asset and can verify ownership. Bar codes are used with reduction in error/accuracy.
|
|
|
|
Capital Equipment
|
Equipment used by an organization for its production potential that costs more than a predetermined threshold value and whose cost will be depreciated over time...there are financial tracking systems for depreciation
|
|
|
|
Asset Management
|
Process of tracking fixed assets that an organization owns and has listed on its balance sheet. Most use inventory managemeent software, bar coding, or RFID tools.
=accurate financials, prevented theft, managing the movement of an organizations assets. |
|
|
|
Inventory Management
|
business function concerned with planning and controlling inventory.
Fixed assets differ from inventory of expendable goods in a manufacturing process. Expendables are replenished on an ongoing basis. |
|
|
|
Asset Recovery
|
re-employment, reuse, recycling or regeneration of something of value that is no longer needed for its original intent
|
|
|
|
Asset Recovery Action Items
|
-identify asset
-consideration of asset tracking, inventory, accuracy -data security -environ. compliance -logistics, storage, handling -lifecycle completion -value analysis, optimal return |
|
|
|
Investment Recovery p127
|
A systematic, centralized organizational effort to manage the surplus or obsolete equipment, material and scrap recovery/marketing/disposition activities in a manner that recovers as much of the original capital investment as possible.
|
|
|
|
Value Stream Mapping p127
|
Lean manufacturing to track waste in steps where no value add.
|
|
|
|
Flow Process Chart p127
|
identifies value add content in the process documentation stage of the analysis. Half text, half picture method of showing steps in a process.
|
|
|
|
Process mapping, flow charting, flow diagrams, process diagrams, workflow diagrams p128
|
drawing pictorial representation of a process that breaks the process into key activities, transfers, decisions, and approvals. Analyze inputs, outputs, and relationships.
|
|
|
|
RoHS p129
|
"Restriction of Hazardous Substances Directive" -EU
Affects many electronic components that use lead based solder and are being replaced by lead free components. Lead free specs then are verified to match leaded. Item masters change part numbers....Lead, Mercury, Camium, Chromium, PBB, PBDE flame retardants. |
|
|
|
WEE p129
|
"Waste Electrical and Electronic Equipment" -EU
Applies to goods sold in the free market. The rules strive to prevent these products from going to landfill. Preserve, protect, improve environment, human health, natural resources is the policy. |
|
|
|
RoHS and WEE Objective p130
|
Hold business or agency accountable when disposing. Originator is ultimately responsible. Documentation and transfer records are important
|
|
|
|
Buy Back
|
Most effective way to dispose of inventory-sell back to supplier
|
|
|
|
Broker p131
(disposal) |
Specializes in reselling goods on behalf of the seller. Common in spare parts and after market sales items.
|
|
|
|
Dealer p131
(disposal) |
Similar to broker but takes possession of goods and takes commission of the sales. Fees taken as percentage of price. Price is key to the131m.
|
|
|
|
Third party specialist p131
|
Service organization to handle spare parts business.
-may be profit center and operate independent from parent org. Has own financials and no requirement to report back. -may be cost center and operate under direction of parent org. |
|
|
|
Surplus
|
Demand period-forecast 100 units have 175 onhand = 75 excess. Also lot size ordering diff. than consumption.
|
|
|
|
Performance Measurement - What to measure? p135
|
Financial-total cost reduction,comp. advantage, productivity SCM efficiency, payment terms
Operational-supplier delivery, quality, labor utilization rates IT-e-spend, supplier transaction index (invoicing, PO's) Sourcing-leverage spending, diversity, social responsibility, direct and indirect spend Business Control-client satifaction, supplier surveys, report cards Relationship |
|
|
|
Peformance Measurement Steps p136
|
What to Measure
Measurement Creation Results Evaluation KPI's Performance Management Systems Corrective Action Process |
|
|
|
Earned Value Management System p138
|
Management sys. and related sub sys. implemented to establish relationship between cost, schedule, and technical aspects of a project, measure progress, accumulate actual costs, analyze deviations from plans, forecast completion of events and incorporate changes in a timely manner.
|
|
|
|
Corrective Action
|
Bring a process veered off the planned course back on track
|
|
|
|
Supply Management Employee Performance
|
Measures need be aligned with corporate objectives, comprehensive, dynamic and aggressive, transparent, tied to incentive, back with resources, championed by strong leadership
|
|
|
|
Steps in Employee Performance Measurements p142
|
1. Align emplyee objectives to org. goals
2. Determine criteria for success 3. Determine appraisal factors whether quantitative or qualitative 4. Conduct interviews- Provide feedback to the employees. 2 way communication. 5. Sources of feedback 6. Employee accountability-improvement plan |
|
|
|
Sources of Feedback
|
Team or peer input
Self Assessment Internal Customer input Supplier input |
|
|
|
Supply Management Audit p145
|
Comprehensive, systematic, independent, and periodic examination of orgs. supply management environment, objectives, strategies, and activities. Goal to improve performance.
|
|
|
|
Validation Process p146
|
process whereby professional proves a solution or process is correct or compliant with the set of standards or rules.
|
|
|
|
Remediation
|
Deficiency in audit or review. Process improvement plan that usually includes monitoring.
|
|
|
|
Organizational Policies p147
|
Supplier Diversity, Social Responsibility, Ethical Supply Management Policies.
|
|
|
|
Reasons for undergoing an audit
|
1. Prevention of mistakes and problems
2. Guaging system and process efficiency and effectiveness. 3. Regulatory or industry compliance Internal may not be taken seriously based on reputation of auditor, experience; however, ease of scheduling and familiarity. |
|
|
|
ISO Audit p150
|
internal org. for standardization - conducted by external third party auditors. Organization has been certified, then reoccurs on a schedule of once every 6-9 months. Requires internal auditing and CAR program.
|
|
|
|
GAAP audit p150
|
Generally Accepted Accounting Principles - set of rules, conventions, standards and procedures for reporting financial information, as established by FASB. Int. financial rep. standards (IFRS) adopted by int. acc. standards board (IASB)
|
|
|
|
SOX p150
|
Requires internal financial controls to provide assurance of the reliability of financial reporting and prep. of financial statements.
|
|
|
|
Corrective Action Process p152
|
1. Establish time frames for action
2. Prioritize steps in implementation plan 3. Cost benefit analyses- |
|
|
|
MRP p155
|
Materials Resource Planning - determine quantity and timing requirements of dependent demand materials used in a manufacturing operation. Closed loop, does not interfere with other systems.
|
|
|
|
Minimum data requirements to run a basic MRP p156
|
1. Inventory Records
2. Existing orders, both customer orders and PO's 3. Bills of Materials, 4. Lead times |
|
|
|
MRPII p156
|
Manufacturing resource planning - planning of all resources used in a manufacturing organization. It addresses operational planning in units and financial planning in dollars to answer "what if" questions.
|
|
|
|
MRP and MRPII difference
|
MRPI is about planning requirements of materials only: based on Bill of materials, gross requiremnts, lead times and inventory levels, you neeed to explode throgh the BOM the requirements, net it againsts available inventory and define dates and quantities needed to satisfay a planned demand.
MRP II is MRP I PLUS Capacity planning (Rough Cut Capacity planning, capacity requirement planning) , in order to test the faisability of the priority plan . MRPII tells you if the Plan is feasible according to the available resources. |
|
|
|
DRP (distribution requirements planning) p157
|
Time based demand from the distribution center to balance the customer fill rate against inventory investment. Not for production, but combines net requirements from satellite warehouses or dist. centers Tells what is onhand and what needs to be shipped.
|
|
|
|
DRP II (distribution resource planning) p.158
|
Time phased computerized inventory system to replenish inventory in multi echelon warehousing systems. Includes planning for warehouse space, manpower requirements, transportation requirements, transportation, and financial flows.
|
|
|
|
SLDC (additim) (159)
|
Maintain and replace Info systems. Analyse, design, development, integration, testing, implementation, maintenance.
|
|
|
|
Least squares / regression model (p161 both books)
|
linear regression assumes demand has linear relationship with independent variable (perhaps time). Independent causes movement on dependent.
|
Y-a+bX
Y=forecast for period i X=time or quantity variable (independent) a= intercept of Y at X =0 b=slope |
|
|
Box–Jenkins methodology
|
In time series analysis, the Box–Jenkins methodology applies autoregressive moving average ARMA or ARIMA models to find the best fit of a time series to past values of this time series, in order to make forecasts.
|
|
|
|
Winter's Model
|
Extension of basic exponential smoothing. Estimates level, trend and seasonal factors, which means that to use this model, do not first apply seasonal adjustments.
|
|
|
|
Judgement Sampling p162
|
uses specific portions of the population of interest for study.
|
|
|
|
Standard error rates
|
standard deviation of distribution, implying 3 std. dev. on either side of the mean covers majority of range.
|
|
|
|
Mean squared error
|
average of the square of the errors. Error term in the forecasted value subtracted from actual. amplifies large errors.
|
|
|
|
Mean percentage error
|
forecast error divided by the actual value for a given time period.
a forecast error is the difference between the actual or real and the predicted or forecast value of a time series |
|
|
|
Flow Manufacturing p165
|
implies continuous production of a product. Implication that product is made based on customer demand in pull system.
|
|
|
|
Level Scheduling p165
|
level use of capacity for org. 2 basic approaches.
1. use of inventory to absorb demand when it exceeds production allocated to a given product over set period of time. 2. Lean production that allow the org. to economically produce small lots of product using flexible capacity that can accommodate the production of a wide range of products. |
|
|
|
Bullwhip effect
|
Small need downstream causes fluctuations in need upstream. Each level creates safety stock.
|
|
|
|
QFD (quality function deployment) p170
|
structured method for translating user requirements into detailed design specs using "what/how" matrices. QFD is based on teamwork and customer involvement from the conception stage of new product development through final delivery. The approach integrates marketing, design, engineering development, manufacturing, production, and purchasing efforts in a manner that helps manufacturers meet the new and pressing demands
|
|
|
|
House of quality matrix p170
|
It translates customer requirements, based on marketing research and benchmarking
data, into an appropriate number of engineering targets to be met by a new product design. --part of QFD |
|
|
|
Qualified Product Lists QPL p173
|
avoid parts or processes that may impede the smooth flow of the operation....NPD
|
|
|
|
Ramp up
|
Ramp up is a term used in economics and business to describe an increase in firm production ahead of anticipated increases in product demand. Alternatively, ramp up describes the period between product development, and maximum capacity utilization, characterized by product and process experimentation and improvements
|
|
|
|
Keys in Ramp Up
|
Sales projections, staffing, requirements, operations flexibility, labor and equipment needs, logistics capabilities, supplier capability, lead time and inventory planning
|
|
|
|
Tooling p176
|
The process of providing a factory with machinery in preparation for production. Ensure there is enough to meet demand.
|
|
|
|
Prototype Qualification p176
|
Building and verifying the product per design prints
|
|
|
|
Project Management p179
|
Application of knowledge, skills, tools and techniques to project activities to meet project requirements
|
|
|
|
5 Project Management Process groups p180
|
1. Initiation
2. Planning 3. Execution 4. Monitoring 5. Controlling and Closing I planned every minute closely |
|
|
|
Project Initiation (project management) p180
|
Needs identification....determine project feasibility, proposing project solution, and obtaining project approval.
|
|
|
|
Root Cause Analysis p.180
|
Define problem the project will solve:
1. SWOT 2. Kepner Tregoe rational analysis 3. Six Sigma 4. Business Care analysis 5. alternative analysis 6. Project feasibility analysis 7. Stakeholder analysis 8. Project Charter |
|
|
|
Kepner Tregoe rational process analysis p180
|
Systematic procedures developed to apply critical thinking to information, data and experience for the purpose of solving problems, making decisions, anticipating future problems and appraising situations.
|
|
|
|
Project Feasibility Analysis p181
|
Feasibility of a proposed project to be approved. Requires financial evaluation, including net present value, internal rate of return, and payback period eval.
|
|
|
|
Net present value p181
|
NPV compares the value of a dollar today to the value of that same dollar in the future, taking inflation and returns into account. If the NPV of a prospective project is positive, it should be accepted. However, if NPV is negative, the project should probably be rejected because cash flows will also be negative.
|
|
|
|
Internal rate of return p181
|
Calculates discount rate that equates the discounted cash flows of the project with the initial investment. Instead of a simple ratio between inflows and outflows (as with ROI), the IRR compares returns to costs by asking: "What is the discount rate that would give the cash flow stream a net present value of 0?"
|
|
|
|
Payback Period p181
|
Period of time needed for project to recover its initial investment
|
|
|
|
Procurement Planning Process p182
|
identifying which business needs can be best met by procuring products or services outside the organization.
1. Solicitation planning and process 2. Scope development 3. Project team roles and responsibilities. 4. Budget development 5. Schedule delevopment 6. Risk management 7. Organizational structures 8. Project plan approval process |
|
|
|
Soliticiation Planning and Process p182
(project planning) |
Preparing documents needed to support solicitation.
- determine contract type - develop IFB, RFQ, or RFP - proposal evaluation criteria and award strategy -structure contract terms and conditions - finalize solicitation: work breakdown structure |
|
|
|
Scope Development (SOW) p183
|
Work to be accomplished: SOW is part of solicitation documents that describes the part of the project to be accomplished by the supplier.
|
|
|
|
Responsibility Assignment Matrix (RAM) p184
|
Tool used to assign project team members with specific roles and responsibilities with respect to the project effort.
|
|
|
|
Functional, Matrix, Projectized Org. Structure p184
|
Functional - Org. structure in which departments are based on functional areas (accounting, finance, SCM, etc.) Functional Managers have most say before Proj. Manager.
Matrix - reflects project roles, responsibilities, and authority shared by functional dept. members and proj. managers. Projectized - greater independence. Project manager has full authority over project members. |
|
|
|
Project Execution p186
|
Source Selection Process - select a supplier
Project team management - ensuring proper communication and project performance reports Change management - Ensure disciplined project change control process |
|
|
|
Project Monitoring and Control Steps p187
|
Contract Administration
1. Peformance Measurement Tools 2. Change Control processes 3. Risk Monitoring process 3. Performance Management Reporting 5. Project Management Software Programs |
|
|
|
EVM, Schedule Analysis, Budget Analysis p187
|
Performance Measurement Tools
EVM-assessing supplier effort in cost, schedule, and performance Schedule Analysis - compares planned schedule with actual. Budget - planned vs. actual |
|
|
|
Project Closure p189
|
Contract Closeout
1. Property Dispositions Process 2. Final product or service acceptance 3. Final payment process 4. Best practice and lessons learned 5. Post project audit procedure |
|
|
|
Benchmarking p191
|
Best practices of best organizations. Establish goals for the organization.
Planning Phase: 1. Identify what to benchmark 2. Identify comparative orgs. 3. Determine data collections methods Analysis Phase 4. Performance gaps 5. Future perf. levels Integration Phase 6. communicate findings 7. Establish goals Action Phase 8. Develop action plan 9. Implement actions and monitor progress 10. Recalibrate benchmarks Maturity Phase... |
|
|
|
Process Costing 193
|
Analyzing the cost of a process in order to find ways to reduce cost.
Value Add Ratio = Total value add activity / Total process cost. High is good. |
|
|
|
Continuous Improvement for Projects p.193
|
Benchmarking, process flow, process costing, maturity models CMMI, CMMM, Process improvement metrics, Supplier workshops
|
|
|
|
CMMI p194
|
CMMI (Capability Maturity Model Integration) is a process improvement approach that provides organizations with the essential elements of effective processes, which will improve their performance. CMMI-based process improvement includes identifying your organization’s process strengths and weaknesses and making process changes to turn weaknesses into strengths.
CMMI applies to teams, work groups, projects, divisions, and entire organizations. Find out why CMMI has been adopted by so many organizations worldwide. The published CMMI appraisal results (PARS) searchable database of appraisal results lists hundreds of organizations that use CMMI. CMMI models are collections of best practices that help organizations to dramatically improve effectiveness, efficiency, and quality. |
|
|
|
CMMM p195
|
Contract Management Maturity Model (CMMM) describes an evolutionary roadmap an
organization would pursue in improving its contract management process capability from an ad hoc (immature) process to a continuously improved, or, optimized (mature) process. Mature contract management processes describe organizational capabilities that can consistently produce successful business results for buyers of products, services, and integrated solutions. The CMMM provides its users with a framework or a guide for improving their respective level of performance. It provides a visual tool to help an organization assess the major steps which they must accomplish when either buying products, services, or integrated solutions, in either the public or private business sectors. The maturity levels reflected in the model allow an organization to assess their level of capability for each of the six major steps in their respective buying process. |
|
|
|
Process Improvement Metrics p196
|
Productivity - outputs / inputs
Efficiency - outputs relative to standard Cycle time - time to complete process |
|
|
|
Lean Production p197
|
Focuses on minimization of all resources including time. Relentless removal of waste.
|
|
|
|
Six Sigma p197
|
Statistical methods of creating products better, faster, less expensive. 12 std. deviations from upper and lower for 3.4 defects per million.
|
|
|
|
Approved Suppliers
|
Suppliers that meet an orgs. selection criteria and have been added to the approved list. Approval process may include submission of samples for testing or other steps to approve the item or service to be purchased. It may also include inspection of the supplier's quality systems.
|
|
|
|
Preferred suppliers
|
A group of suppliers that an org. has determined meet its expectations for quality, delivery, and or price and are able to respond to unexpected changes.
|
|
|
|
Partnered Suppliers
|
The term partnership or partnered supplier refers to a close relationship with a supplier. Long term, large volume, joint product. Work best when there is a mutual benefit in forming a relationship. It is a strategic alliance.
|
|
|
|
Certified Supplier
|
supplier whose enterprise-wide quality control system is integrated with the supply management professional's quality control system. Standards defined by Supply management org.
|
|
|
|
Prequalified Suppliers
|
add to approved supplier list because they passed preliminary screening. Passed financial, facilities, location, size, technology, labor status.
|
|
|
|
Certifiable suppliers
|
one not currently certified by the supply management org but in the process of becoming certified, may already be certified by another division of same org.
|
|
|
|
Disqualified suppliers
|
fail to meet standards and are barred from competing
|
|
|
|
Acceptance Testing
|
Test procedures that lead to formal acceptance of a new or changed product, process, or system.
|
|
|
|
Certification Requirements
|
Quality standards that, when met, allow supplier to be certified.
|
|
|
|
ISO 9000:2000
|
Quality Management Systems - Fundamentals and vocabulary
|
|
|
|
ISO 9001:2000
|
Quality Management Systems - Requirements. These are used for internal implementation, contractual purposes or 3rd party registrations.
|
|
|
|
ISO 9004:2000
|
Quality managment - Guidelines for performance improvement. This broader document provides guidelines for objectives that are no included in ISO 9001:2000
|
|
|
|
ISO Registration p206
|
1. Inquiry terms for registration. Select registrar.
2. Contact registrar; price negotiated. 3. Phase one audit. Onsite audit by registrar. 4. Certification audit. 5. Process audits. Org. may choose processes for auditing to the applicable standard. 6. Final certification audit. Registrar will audit systems effective implementation. 7. Rolling Cert. audits. |
|
|
|
ISO TS 16949
|
Applies only to automotive organizations. Aligns existing automotive quality system requirements within the global automotive industry. Written by IATF (international auto. task force)
|
|
|
|
Buyer / Supplier quality consistency p208
|
Acceptance and rejection rates of supplier, Testing capability of quality (both workers and machine capabilities),Process control, Quality systems, procedures, System certification / validation.
|
|
|
|
Additonal requirements for certification p210
|
Management responsibility, quality system, contract review, design control, doc and data control, Procurement procedures, control of customer supplied product, product ident. and traceability, process control, Inspection and testing, testing equipment, nonconforming product, corrective and prev. action, handling and storage, control of quality rocrds, internal audits, training, servicing.
|
|
|
|
Quality Assurance p215
|
Management function that includes establishing specifications that can be met by suppliers. Need capability to provide adequate quality within those specs while applying control processes. Means of measuring also.
|
|
|
|
Quality p215
|
"innate excellence" precise and measurable variable that is ineherently present in the characteristics of the product or service, defined by the user, and therefore products and services must have clusters of attributes that users want right the first time.Conformance, no waste, performance at good price.
|
|
|
|
Garvins 8 quality dimensions p216
|
Performance
Features Reliability Conformance Durability Serviceability Aesthetics Perceived Quality |
|
|
|
Garvins 8 quality dimensions explained
|
The eight dimensions of product quality according to Garvin:
1. Performance or the primary operating characteristics of a product or service. Example: for a car: it is speed and acceleration. For a restaurant: it is good food. 2. Features or the secondary characteristics of a product or service. Example: for a restaurant: it is linen tablecloths and napkins. 3. Conformance or the match with specifications or pre established standards. Example: for a part: it is whether this part is the right size. For a restaurant: it is whether the meat is cooked according to your request (e.g. "medium rare"). 4. Durability or product life. Example: for a light bulb: it is how long it works before the filament burns out. 5. Reliability or the frequency with which a product or service fails. Example: for a car: it is how often it needs repair. For an airline: it is how often flights depart on schedule. 6. Serviceability or the speed, courtesy and competence of repair. Example: for a car: it is how quickly and easily it can be repaired and how long it stays repaired. For a mail order house: it is the speed and courtesy with which an overcharge is corrected. 7. Appearance / aesthetics or fits and finishes. Example: for a product or service: it is its look, feel, sound, taste or smell. 8. Image / perceived quality or reputation. Example: for a product or service: it is the positive or negative feelings people attach to any new offerings, based on their past experiences with the company. |
|
|
|
Dimensions of service quality p216
|
TANGIBLES-Appearance of physical facilities, equipment, personnel, and communication materials
RELIABILITY-Ability to perform the promised service dependably and accurately RESPONSIVENESS-Willingness to help customers and provide prompt service ASSURANCE-Knowledge and courtesy of employees and their ability to convey trust and confidence EMPATHY-Caring, individualized attention the firm provides its customers |
|
|
|
Acceptance Testing (quality assurance) p217
|
Test procedures that lead to formal acceptance of a new or changed product, process or system. May include samples.
|
|
|
|
Acceptance Sampling p218
|
Statistical quality control technique used in deciding to accept or reject a shipment of input or output.
Might be need when: -new or unproved suppliers -start ups or new products -product can be damanged; sensitive -Product can spoil |
|
|
|
Producer's Risk p219
|
As Producer.....Customer rejecting lot of material of good quality. The prod. is judged inaccurately
|
|
|
|
Consumer's Risk p219
|
As Consumer...shipment of poor quality has been received and the product is observed to have good quality.
|
|
|
|
Acceptable quality level p219
|
A statistical measurement of the maximum number of defective goods considered acceptable in a particular sample size. If the acceptable quality level (AQL) is not reached for a particular sampling of goods, manufacturers will review the various parameters in the production process to determine the areas causing the defects.
|
|
|
|
Lot Tolerance Percent Defective (LTPD) p219
|
LTPD of a sampling plan is a level of quality routinely rejected by the sampling plan. It is generally defined as that level of quality (percent defective, defects per hundred units, etc.) that the sampling plan will accept 10% of the time. This means lots at or worse than the LTPD are accepted at most 10% of the time. Beta !0% or less.
|
|
|
|
Type 1 error
|
when one rejects the null hypothesis when it is true. The probability of a type I error is the level of significance of the test of hypothesis, and is denoted by *alpha*
|
|
|
|
Type 2 error
|
A type II error occurs when one rejects the alternative hypothesis (fails to reject the null hypothesis) when the alternative hypothesis is true. The probability of a type II error is denoted by *beta*
|
|
|
|
n and c p220
|
n = sample size
c = max number of defective pieces for sample to be rejected |
|
|
|
Multiple Sampling Plan p220
|
Advantages of smaller average sample size with same protection. Many n, c, and r.
|
|
|
|
Initiator Organization p221
|
Initiates contract and studies another organization
|
|
|
|
Target Organization p221
|
Organization that is being studied (benchmarking partner). Often enters reciprocal agreement to observe the the initiator organization.
|
|
|
|
Process Benchmarking p222
|
Performance comparison of business processes against an internal or external standard of recognized leaders. Process flow, op. systems, technology.
|
|
|
|
Financial Benchmarking p222
|
Using financial databases.
|
|
|
|
Performance Benchmarking p222
|
Allows initiator organizations to assess competitive position by comparing products and services with target organizations. Speed, quality, productivity.
|
|
|
|
Product Benchmarking p222
|
Often includes reverse engineering or dismantling competitors products to understand strength and weaknesses
|
|
|
|
Strategic Benchmarking p222
|
Observing how others compete.
|
|
|
|
Functional Benchmarking p222
|
Functional Benchmarking Businesses look to benchmark with partners drawn from different business sectors or areas of activity to find ways of improving similar functions or work processes. This sort of benchmarking can lead to innovation and dramatic improvements.
|
|
|
|
Quality Management p223
|
The function of planning, organizing, controlling, and improving the quality of products and processes.
|
|
|
|
Who invented the seven basic tools of quality?
|
Kaoru Ishikawa
|
|
|
|
Histogram p224
|
Diagram of values measured versus frequency for which they occur. Bell shaped means running normally.
|
|
|
|
Pareto Chart p224
|
Graphs showing the frequency with which events occur, arranged in order of descending frequency. Order rank by largest potential return. 80% of problems caused by 20% of causes.
|
|
|
|
Cause and effect diagrams p224
|
Lower levels of abstraction. Looks like the skeleton of a fish with head being problem, major causes being the ribs, sub are smaller issues. 5 whys.
|
|
|
|
Check Sheets p224
|
Tabular or Schematic for forming a histogram.
|
|
|
|
Scatter Diagram p224
|
Graph used to analyze relationship of 2 variables.
|
|
|
|
Process map or flow chart p224
|
Steps or processes
|
|
|
|
Control Charts p224
|
SPC to record, measure and analyze variations in processes to determine whether or not outside influences are causing a process to go out of control.
|
|
|
|
List 7 basic tools of management
|
Histogram, pareto, cause and effect, check sheets, scatter diagram, flow chart, control chart
|
|
|
|
New 7 Tools for Management
|
developed by research effort enacted by committee of the Japanese Society for QC Technique Development
|
|
|
|
Affinity Diagram p224
|
Surface all issues associated with the problem. Members of a team sit in silence and then shares.
|
|
|
|
Interrelationship digraph p224
|
expanding affinity diagram to find causal relationships
|
|
|
|
Tree diagrams p224
|
Steps needed to address the given problem
|
|
|
|
Matrix diagram p224
|
Show relationships of 2, 3, or 4 groups of information. It can give information about the relationship, such as its strength, roles played, or measurements.
|
|
|
|
Prioritization Matrix p224
|
Weighted matrices are used to prioritize which variables or topic should be emphasized.
|
|
|
|
Process decision program chart p224
|
Helps brainstorm possible contingencies or problems associated with the implementation of some program or improvement.
|
|
|
|
Activity Network Diagram p224
|
PERT used in controlling projects. Known as an Activity on Node Chart.
|
|
|
|
Statistical Process Control p228
|
Define the process using tools and reduce the variation.
|
|
|
|
Service Level Agreements (SLAs) p229
|
Defines scope of work, sets expectations and defines relationship of the buyer and service provider. Most common elements are introduction, scope of work, performance measurement, Conflict mgmt, reumeration, customer role, warranties and remedies, intellectual property rights, termination, signatures.
|
|
|
|
SLA Components p230
|
Service, cost performance, quality, (periodic inspections, customer requirements, statistical methods, testing methods, level of inspection).
|
|
|
|
Customer Survey (4 steps) p232
|
Identify customer requirements, develop and validate the instrument, implement the instrument, analyze results.
|
|
|
|
Measurement systems analysis (MSA) p.233
|
Tool for determining whether variation is a result of actual process variation or simply measurement error.
|
|
|
|
Categorical p233
|
Evaluation criteria rates according to categories as plus, neutral, and minus
|
|
|
|
Total Acquisition Cost (TAC) p233
|
Product and other hidden costs...design, setup, freight forwarding, shipping costs.
|
|
|
|
Core Six Sigma equation p234
|
Y = f(X)
Y = Y is function of X- output (key objectives and measures) f = function (interrelationships to be controlled and managed) X = controllable and non-controllable factors that affect Y |
|
|
|
Software Engineering Institute (SEI) p235
|
federally funded research and development that publishes software engineering stuff.
|
|
|
|
Process Capability p235
|
Cp and Cpk
2 purposes: 1. Determine if process consistently results in products that meet specification. 2. Determine if process is in need of monitoring through the use of permanent process charts. Are they common (inherent) or random causes. |
|
|
|
5 Steps in performing process capability study
|
1. Select critical operation
2. Take k samples of size n, where x is an individual observation. 3. Compare natural tolerance limits with spec limits 4. upper, lower, and capability index. 5. Make decision of capability. |
|
|
|
Closed economy p1
|
limits trade with outside world
|
|
|
|
Mixed economy p1
|
mix of state owned and private industries
|
|
|
|
Protectionism p2
|
gov't interference with the free flow of goods and services that is considered harmful to the domestic economy
|
|
|
|
Dumping p2
|
in international trade, practice of selling goods abroad below cost or at a price below that charged in the domestic market in order to eliminate a surplus or to gain an edge on foreign competition, or when goods are unacceptable for the domestic market.
|
|
|
|
Business Cycle p3
|
highest point, recession, lowest point, recovery, expansion
|
|
|
|
Economic Indicators p5
|
Identify market forces that will affect the supply and demand for a particular commodity.
|
|
|
|
Purchasing Managers Index (PMI)
|
Purchasing Managers Index (PMI), which is the headline indicator in the monthly ISM Report on Business.
|
|
|
|
Fair Trade p6
|
usually implies protectionism through tarrifs and quotas.
|
|
|
|
Porters 5 Forces
|
Direct comp, threats of entrants, threat of subs, power of buyers, power of suppliers.
|
|
|
|
Two by Two portfolio matrix p7
|
based on profit impact and supply risk. Items are strategic, routine, bottleneck and leverage.
Profit=Y Supply Risk =X SBRL Top left are leverage items Top right are strategic items Lower left non critical items Lower right bottleneck |
|
|
|
What can you forecast? p12
|
Quantity, Industry Capacity, Cost/price, Tech, Plannning and assuring supply
|
|
|
|
GDP p213
|
Gross Domestic Product (Implicit Price Deflator) used by US Department of Commerce. "Deflator" is a value that allows data to be measured over time in terms of some base period.
Implicit Price Deflator = Current Dollar GDP (Nominal) / Real GDP |
|
|
|
Custom Indexing p13
|
A professional tool that organizations use to measure, investigate and control price and cost changes within their own organization.
|
|
|
|
Producer Price Index (PPI) p13
|
Measures the average change over time in the prices received by domestic producers of goods and services. Based on the selling price not the actual cost to produce. Supply management can use this to predict price inflation and negotiate escalation clauses.
|
|
|
|
Consumer Price Index (CPI) p14
|
One of the most popular measures of price inflation for retail goods and services. Linked closely to labor rates. Represents consumer purchases and is a lagging indicator.
|
|
|
|
Real GDP
|
Real GDP = (nominal GDP/GDP price index)*100.
Refers to a GDP that has been adjusted for inflation or deflation to accurately show the increase or decrease in production for comparison of economic growth from year to year. Measured in relation to the price index of a given year. |
|
|
|
Nominal GDP
|
unadjusted for inflation): Refers to GDP based on the prices of a product in the year it was produced. Not inflated or deflated.
|
|
|
|
US Beareau of Economic Analysis (BEA)
|
Collects 20 indicators of leading, lagging, and coincident and develops each into an index
|
|
|
|
Leading Indicator p16
|
Measure of economic activity that changes before the business cycle does and thus indicates its future direction. i.e. where are we headed?
Ex. Inventory level changes, weekly hours of production, unemployment insurance claims, stock price |
|
|
|
Lagging Indicator p16
|
Changes after the state of the general economy has changed.
Ex.unemployment rate, labor costs, business spending, prime interest rates, bank loans. |
|
|
|
Coincident Indicator p16
|
Changes concurrently with a change in the business cycle.
Ex. Income, industrial production. |
|
|
|
Capacity Index p17
|
Fed. Reserve Board - extent to which an org. industry, or nation uses its installed facilities.
|
|
|
|
Index Calculation Formula p18
|
Current period value - prior value / prior value.........x 100
|
|
|
|
Merchandize Trade Balance p18
|
"visible trade" like cars and electronics
|
|
|
|
Trade Surplus p18
|
Exports > Imports
|
|
|
|
Trade Deficit p18
|
Imports > Exports
|
|
|
|
Balance of Payments p18
|
Difference of funds in and out of a nations boundaries. Summary of nations transactions with the rest of the world during a year. It is the balance of trade plus a capital account (inflow and outflow of investments and loans)
|
|
|
|
Exchange Rates p19
|
Want dollar to be strong but not too strong so that goods will not be attractive to weaker currency countries. This will also reduce domestic investment b/c dollar goes further elsewhere.
|
|
|
|
Floating Exchange Rate p19
|
Determined by market forces as opposed to government as seen with fixed exchange rates.
|
|
|
|
ISM Manufacturing and Non Manufacturing Report p20
|
350 orgs in 18 manufacturing and 18 non manufacturing industries. Asked ti compare vs. prior month. 50 + is good. It is a leading indicator.
|
|
|
|
GPO p21
|
Governmental Printing Office, a source or many popular federal publications.
|
|
|
|
Department of Commerce and state commerce offer statistical info, useful for forecasts. They include:p21
|
-Survey of Current Business (BEA)
-Federal Reserve Bulletin -Private Publications (ISM) -Commercial Forecasts (banks, industry groups, charge) -Regional Surveys -Internal Historical Data -Industry Sources (AMM, Iron and Steel Institute) |
|
|
|
Short Term Forecasts p23
|
Used as an aid in the development and execution of short term purchase plans and operational or tactical activity. (usually up to one year)
|
|
|
|
Long term forecasts p23
|
evolution and development of strategic plans and typically include in depth commodity and industry studies.
|
|
|
|
Macro/Micro Forecasts p24
|
Macro on a national scale while micro is org specific or limited to small segments of larger issues
|
|
|
|
Delphi Method p24
|
Experts kept apart and unknown to eachother. Written response 3 or 4 times until consensus is reached.
|
|
|
|
Correlation p25
|
Correlation and regression analysis are related in the sense that both deal with relationships among variables. The correlation coefficient is a measure of linear association between two variables. Values of the correlation coefficient are always between -1 and +1. A correlation coefficient of +1 indicates that two variables are perfectly related in a positive linear sense, a correlation coefficient of -1 indicates that two variables are perfectly related in a negative linear sense, and a correlation coefficient of 0 indicates that there is no linear relationship between the two variables.
Positive = both move together Negative = move opposite |
|
|
|
Regression p25
|
In simple linear regression, the model used to describe the relationship between a single dependent variable y and a single independent variable x is y = a0 + a1x + k. a0and a1 are referred to as the model parameters, and is a probabilistic error term that accounts for the variability in y that cannot be explained by the linear relationship with x. If the error term were not present, the model would be deterministic; in that case, knowledge of the value of x would be sufficient to determine the value of y.
|
|
|
|
Time series analysis p25
|
examining the factors that influence changes in data series over time. Reasons for variation must be examined. They may be seasonal, economic, errors.
|
|
|
|
Variability p26
|
Range - largest value minus smallest
Variance - Squared sum of differences of the individual values of a set from the mean, divided by the number of values in the set. Ex. 4 dogs and one of them is 500 in, other 200, other 200, other 300. 1200/4=300 mean. Square the variance from the mean and divide by 4. Standard Deviation - Square root of variance |
|
|
|
Cycle p26
|
longer than a season, often multi year and is tied to economic fluctuations like recession or inflation. Data often seasonally adjusted to uncover the underlying trend in data.
|
|
|
|
Trend p27
|
long term component that underlies change in a series of data.
|
|
|
|
Winter's Model p27
|
seasonal exponential smoothing form trends. see book 2.
|
|
|
|
Box Jenkins p27
|
Heuristic whose goal is to find a math formula that will generate historical demands in a time series. See book 2.
|
|
|
|
Fluctuating lead times affect forecast p28
|
caused by production problems, demand increases, and constrictions on supply chain.
|
|
|
|
Changing Labor Conditions affect forecast p28
|
Potential supply disruption. Professional must take protective action.
|
|
|
|
Money Markets affect forecast p29
|
Federal Reserve Board:
↑$ ↓IR ↑inflation ↓$ ↑IR ↓inflation |
|
|
|
ESI Manufacturing p33
|
-take on some of the customers operations as supplier
-suppliers suggest equipment |
|
|
|
ESI Product/service development and design p34
|
Prototypes, models, pre-production samples
|
|
|
|
ESI on Cost p334
|
Suppliers provide insight into cost, prevent expensive errors
|
|
|
|
ESI on Quality, Availability
|
you get the picture
|
|
|
|
Parameters for Disclosure p37
|
Product Development model - Do not allow access to trade secrets or other proprietary info
Production Plan - confidentiality or non disclosure agreement that includes a section describing the supply management professional's commitment to the schedule. |
|
|
|
Legal implications for NDA p37
|
1. proprietary info clearly defined: not too broad and not too narrow (lose opportunity to have important data).
2. How info can be used. 3. Prevent disclosure of info to 3rd parties. |
|
|
|
CPFR p38
|
Collaborative Planning, Forecasting and Replenishment (CPFR) is a concept that aims to enhance supply chain integration by supporting and assisting joint practices. CPFR seeks cooperative management of inventory through joint visibility and replenishment of products throughout the supply chain. Information shared between suppliers and retailers aids in planning and satisfying customer demands through a supportive system of shared information. This allows for continuous updating of inventory and upcoming requirements, making the end-to-end supply chain process more efficient. Efficiency is created through the decrease expenditures for merchandising, inventory, logistics, and transportation across all trading partners.
|
|
|
|
PLC Product Lifecycle
|
1. Market introduction stage
costs are very high slow sales volumes to start little or no competition demand has to be created customers have to be prompted to try the product makes no money at this stage 2. Growth stage costs reduced due to economies of scale sales volume increases significantly profitability begins to rise public awareness increases competition begins to increase with a few new players in establishing market increased competition leads to price decreases 3. Maturity stage costs are lowered as a result of production volumes increasing and experience curve effects sales volume peaks and market saturation is reached increase in competitors entering the market prices tend to drop due to the proliferation of competing products brand differentiation and feature diversification is emphasized to maintain or increase market share Industrial profits go down 4. Saturation and decline stage costs become counter-optimal sales volume decline prices, profitability diminish profit becomes more a challenge of production/distribution efficiency than increased sales |
|
|
|
Considerations for geographical location p43
|
Labor considerations, Transportation availability considerations, Governmental issues, environmental, delivery time, out vs. up build, safety, security, sanitation, etc.
|
|
|
|
ASN p48
|
Advanced shipping notice - electronic data interchange or extensible markup language (XML) format sent ahead of a shipment listing its contents and shipping information.
|
|
|
|
Order picking p48
|
outbound flow of materials from an orgs warehouse to its customer
|
|
|
|
(AS/RS) Automated storage and retrieval systems p49
|
Frees up large amounts of floor space, permitting major expansions in production volume without need for additional space. AGVS is automated guided vehicle system.
|
|
|
|
picker to part method
|
picker to part method: the order picker(s) move(s) to collect the products necessary for one order. different than part to picker
|
|
|
|
Virtual Warehouse
|
A virtual warehouse provides the opportunity for retailers to advertise a whole new line of items online that they would not otherwise have room for on their own shelves. Through the distributor’s virtual warehouse services, customers can order products from the retailer’s website. The order is sent to the distributor’s warehouse, where it is picked, packed and shipped directly to the customer.
|
|
|
|
Four basic types of budgets for logistics controllership p51
|
Fixed dollar, flexible, zero level and capital
|
|
|
|
Sales / logistics expense p51
|
amount spent on logistics for one dollar sales
|
|
|
|
Sales / Inventory and COGS / Inventory p51
|
amount spent on inventory for one dollar sales and so forth for COGS
|
|
|
|
5S p52
|
Sort (Seiri)
Set in Order or arrange (Seiton) Shine (Seiso) Standardize (Seiketsu) Sustain (Shitsuke) |
|
|
|
Sort (Seiri)
|
Keep only what you need to make place free of clutter
|
|
|
|
Set in order or arrange (Seiton)
|
Orderly workplace items to be kept where used
|
|
|
|
Shine (Seiso)
|
Workplace clean and neat
|
|
|
|
Standardize (Seiketsu)
|
Standardize work practices
|
|
|
|
Sustain (Shitsuke)
|
Continuously improve
|
|
|
|
Transportation Pol. / Procedures p56
|
Restrictions on weight, volume, materials
Audits to review freight bills Carrier performance audits Classification rates for points no in the same local pick up and delivery area Available Technology such as transportation analysis, traffic routing, freight maintenance and auditing, vehicle maintenance |
|
|
|
LTL
|
Less than truckload....collect smaller shipments and consolidate them into full truckloads
|
|
|
|
TL
|
Truckload....many small carriers who own one or two trucks. Not the fastest or the cheapest.
|
|
|
|
Freight Forwarder p60
|
Makes transportation arrangements and fills out forms under power of attorney. They combine small shipments from multiple shippers into full loads.
|
|
|
|
Bill of lading
|
A legal document between the shipper of a particular good and the carrier detailing the type, quantity and destination of the good being carried. The bill of lading also serves as a receipt of shipment when the good is delivered to the predetermined destination. This document must accompany the shipped goods, no matter the form of transportation, and must be signed by an authorized representative from the carrier, shipper and receiver.
Equivalent docs are the air waybill, sea waybill and multi modal bill of lading. |
|
|
|
Transmittal letter
|
Record of all documents that will accompany the shipment and their final disposition, along with any special instructions.
|
|
|
|
Letter of credit
|
document that assures the seller that payment will be made by the bank issuing the letter of credit upon fulfillment of the terms of the sales agreement.
|
|
|
|
Certificate of origin
|
A statement of precisely where the goods were produced
|
|
|
|
Commercial invoice
|
Bill for the goods to the buyer
|
|
|
|
Dock Receipt
|
Transfers the responsibility for the cargo between the international and domestic carrier
|
|
|
|
Delivery instructions
|
Directives to an inland carrier for delivery
|
|
|
|
Insurance certificate
|
proof of insurance for the goods while in transit
|
|
|
|
Export declaration
|
Required government form to track exports for statistical purposes
|
|
|
|
Consular invoice
|
A control document to track and identify goods shipped to other countries
|
|
|
|
Arrival notice
|
declares a shipments expected arrival time and relevant shipment details
|
|
|
|
Delivery order
|
Authority from the consignee to the ocean carrier to release the cargo to a specified inland carrier
|
|
|
|
Customs entries
|
Multiple documents that describe the shipped merchandise, origin of shipment and applicable duties
|
|
|
|
Freight Release
|
Statement that all freight charges have been paid
|
|
|
|
Carriers certificate and release order
|
certification of ownership of the cargo provided to customs
|
|
|
|
Special customs invoice
|
official government form used to declare the value of shipment
|
|
|
|
Ex Works
|
Price quoted only applies at point of origin. Buyer takes possession at point of origin and bears costs and risks. It is the most open ended.
|
|
|
|
FCA Free Carrier (named place) p63
|
Seller delivers goods cleared for export to the buyer designated carrier at a named location. When the goods arrive at a carriers dock they are unloaded from the exporters vehicle by the carrier and at the carriers expense.
|
|
