Sc Exam 1

Front 1

supply chain management

Back 1

active mgmt of supply chain activities to maximize customer value and achieve a sustainable competitive advantage

Front 2

purchasing

Back 2

activities that ensure that the company has suitable sources for the goods and services it needs (adds value)

Front 3

logistics

Back 3

focuses on the physical movement and storage of goods and materials

Front 4

important trends

Back 4

1. information revolution
2. increased competition and globalization in today's markets
3. relationship mgmt

Front 5

process/business process

Back 5

logical series of related transactions that converts input to results or output

-chain of logical connected repetitive activities that utilizes the enterprise's resources to refine of transform an object for the purpose of achieving specified and measurable results or out put for internal or external customers

Front 6

functional area problems

Back 6

1. allegiance to the function
2. turf wars
3. silo mentality-only focused on their specialisms and functions

Front 7

inputs and outputs of operations

Back 7

inputs-materials, intangible needs, information

outputs-tangible goods, fulfilled needs, satisfied customers

Front 8

three points about transformation processes

Back 8

1. output should be greater than the inputs
2. span boundaries across functional disciplines
3. a value added situation creates value for the customer

Front 9

supply chain transformation process

Back 9

includes all activities associated with the flow and transformation of goods from the raw materials stage, through the end user

Front 10

measures/dimensions of success

Back 10

1. quality
2. delivery speed
3. after-sales support
4. cost
5. flexibility

Front 11

core competencies

Back 11

organizational strengths or abilities, developed over a long period, which customers find valuable and competitors find difficult or even impossible to copy

Front 12

strategies

Back 12

mechanisms by which businesses coordinate their decisions regarding business processes, resources, information systems, and policies and procedures

Front 13

business strategies should:

Back 13

identify targeted customers, set time frames and performance objectives, identify core competencies

Front 14

order winners

Back 14

the performance dimensions that differentiate a company's products and services from tis competitors

Front 15

order qualifiers

Back 15

performance dimensions on which customers expect a minimum level of performance

Front 16

total quality management

Back 16

the philosophical underpinning of an organization's quality efforts

-the mgmt of an entire organization so that it excels in all quality dimensions that are important to customers

Front 17

quality-value perspective

Back 17

based on the idea that quality must be judged on how well the characteristics of a particular product or service align with the needs of specific user

Front 18

dimensions on which users evaluate the quality of a product or service (8)

Back 18

performance, features, reliability, durability, conformance, aesthetics, serviceability, perceived quality

Front 19

conformance perspective

Back 19

interested in whether or not a product was made or a service was performed as intended

Front 20

total cost of quality curve

Back 20

adds failure, prevention, and appraisal costs together

Front 21

tqm principles

Back 21

customer focus, leadership involvement, continuous improvement, employee empowerment, quality assurance, supplier partnerships, strategic quality plan

Front 22

batch manufacturing

Back 22

somewhere between job shops and lines in terms of production volumes and flexibility, most common type of manufacturing process, strikes a balance between the flexibility of a job shop and the efficiency of a line

Front 23

hybrid manufacturing processes

Back 23

seek to combine the characteristics of more than one of the classic types

Front 24

make-to-stock products

Back 24

involve no customizaion, generic products, produced in large enough volumes to justify keeping a finished goods inventory (tools)

Front 25

assemble-to-order products

Back 25

products that are customized only at the very end of the manufacturing process (airbrush t-shirt)

Front 26

make-to-order products

Back 26

use standard components but the final configuration of those components is customer specific (walk-in coolers or refrigerators)

Front 27

engineer-to-order products

Back 27

specially designed and produced from the start to meet unusual customer needs or requirements (hubble telescope)

Front 28

upstream/downstream activities

Back 28

activities taht take place prior/after the customization point

Front 29

law of variability

Back 29

the greater the random variability, either demanded of the process or inherent in the process itself or in the items processed, the less productive the process is

Front 30

on-line

Back 30

activities that can only be completed once the customers' needs are known (ex. cabinets)

Front 31

five major types of manufacturing processes (spectrum)

Back 31

1. the project
2. the continuous flow process
3. the job shop
4. the batch flow process
5. the line flow process

Front 32

capacity

Back 32

the ability to do work or perform a valuble service

Front 33

measures of capacity

Back 33

inputs, outputs, or some combination

Front 34

controllable factors (capacity)

Back 34

the number of shifts or lines that are active at any time

Front 35

lead strategy

Back 35

capacity is added in anticipation of demand, assures that hte organization has adequate capacity to meet all demand, even during periods of high growth, can be riskky if demand is unpredictable

Front 36

lag strategy

Back 36

opp. of lead, organizations add capacity only after demand has materialized, reduced risk of over-building, greater productivity due to higher utilization levels, and the ability to put off large investments as long as possible

Front 37

match strategy

Back 37

strikes a balance between the lead and lag strategies by avoiding periods of high under or over utilization

Front 38

fixed costs

Back 38

the expenses an organization incurs regardless of the level of business activity

Front 39

variable costs

Back 39

directly affected by some specific busienss activity

TC=FC + VC*x

Front 40

theory of contraints

Back 40

focuses on how capacity should be managed when products or services flow along a chain of processes, based on the recognition nearly all products and services are created through a series of linked processes, bottleneck=constraint

Front 41

five step process to improve overall throughput of a process chain

Back 41

1. identify constrain
2. exploit constraint
3. subordinate everything to the constraint
4. elevate the constraint
5. find the nwe constraint and repeat the steps

Front 42

customer driven process requirements

Back 42

established through makign specfici targets in objective measurable terms such as cost, quality, cycle time, customer service and support or other relevent metrics

Front 43

process capability

Back 43

measures provide information on what a process can do and how well it can perform its function, relative to customer requirements

Front 44

determinants of process capability

Back 44

1. people-skills, experience, training
2. inputs-information, materials
3. methods-work flow, decision making
4. technology-equipment, IS/IT

Front 45

process capacity

Back 45

the volume of work or product that can be performed by a process during a specified time period

Front 46

determinants of process capacity

Back 46

quantity and type of resources available, product/service mix required, planned down time, unplanned down time

Front 47

design (theoretical) capacity

Back 47

the maximum output that can possibly be attained under perfect conditions

Front 48

effective capacity

Back 48

the maximum output from a process given that you estimate how much planned and unplanned downtime, estimate product/service mix levels, estimated quality problems, etc

Front 49

demonstrated (actual) capacity

Back 49

the rate of output actually acheived from a process based on historical data

Front 50

sales and operations planning (aggregate)

Back 50

a business process that helps firms plan and coordinate near-term operations and supply chain decisions with other functional areas and the firm's supply chain partners

Front 51

strategic capacity planning

Back 51

takes place at the highest levels of the firm, addresses capacity needs that might not arise for years into the future (bricks and mortar, major process choice, planning done at very high level, high risk)

Front 52

tactical planning

Back 52

covers a shorter period (six months-year), more detailed than strategic but constrained by the longer-term decisions, (workforce, inventory, subcontracting, logistics, planning numbers, moderate risk)

Front 53

detailed planning and control

Back 53

covers short time periods(weeks-hours), usually few options,(limited ability to adjust capacity, detailed planning, lowest risk)

Front 54

successful SOP characteristics:

Back 54

-indicates how the organization will use its tactical capacity resources to meet expected customer demand
-strikes a balance between the various needs and constraints of the supply chain partners
-serves as a coordinating mechanism for the various supply chain partners
-expresses the business' plans in terms that everyone can understand

Front 55

top-down planning (SOP)

Back 55

simplest approach, uses a single set of planning values to estimate tactical capacity requirements for all products or service offered, requires service mix to stay the same and the individual services to have similar resource requirements, allows managers to see the relationship between overall demand, production and inventory levels

Front 56

level production strategy

Back 56

production is held steady and inventory is used to absorb the differences betwen production and demand

Front 57

chase production strategy

Back 57

will vary production each month in an effort to match production levels to demand levels

Front 58

mixed production strategy

Back 58

varies both inventory levels and capacity resources in an effort to develop the best plan

Front 59

inventory

Back 59

those stocks or items used to support production, supporting activities, and customer service

Front 60

cycle stock

Back 60

components or products that are receivedi n bulk by a downstream partner, gradually used up, and then replenished again in bulk by the upstream partner

Front 61

safety stock

Back 61

extra inventory that comapnies hold to protect themselves against uncertainties in either demand or replenishment time

Front 62

anticipation inventory

Back 62

inventory that is held in anticipation of custoemr demand

Front 63

hedge inventory

Back 63

form of inventory buildup to buffer against some event that may not happen (strikes, price increases, unsettled governments)

Front 64

transportation inventory

Back 64

"in the pipeline", moving from one link in the supply chain to another

Front 65

smoothing inventories

Back 65

used to smooth out difference between upstream production levels and downstream demand, allow individual links in the supply chain to stabilize theri production at the msot efficient level, and to avoid the costs and headaches associated with constantly changing workforce levels and/or production rates

Front 66

inventory drivers

Back 66

business conditions that force companies to hold inventory
-uncertainty in supply or demand
-mismatch between downstream partner's demand and most efficient production or shipment volumes for upstream partner
-mismatch between downstream demand levels and upstream production capacity
-mismatch between timing of customer demand and supply chain lead times

Front 67

independent demand inventory

Back 67

refers to inventory items with unpredictable demand levels that are beyond an organization's complete control (kitchen table)

Front 68

dependent demand inventory

Back 68

refers to inventory items whose demand levels are tied directly to the production or another item (components of tables)

Front 69

periodic inventory review systems

Back 69

comapnies hcheck the inventory levels of an item at regular intervals and restock it at some predetermined level

Front 70

perpetual inventory review systems

Back 70

inventory levels are monitored constantly, reorder point is reached, size of replensihment order is typically based on the tradeoff between holding costs and ordering costs, reorder point based on demand and supply considerations and safety stock

Front 71

economic order quantity

Back 71

particular order quantity that strikes the best balance between holding cost and ordering cost, found by setting yearly holding cost equal to yearly ordering cost and solving for Q

Front 72

master scheduling

Back 72

first step in planning and control, the overall resource levels established by SOP begin to be fleshed out with specifics, states exactly when and in what quantities specfic products will be made, links production with specific customer orders, informs the operations manager which products or production capacities are still available to meet new demand

Front 73

material requirements planning

Back 73

translates the master schedule for final products into detailed material requirements

Front 74

projected ending inventory

Back 74

= BI + MPS - the greater of forecasted demand or booked orders

Front 75

available-to-promise

Back 75

indicates the number of units taht are available for sale each week, given those that have already been promised to customers

=BI + MPS - Booked orders

Front 76

three concepts of MRP

Back 76

bill of material, backward scheduling, and explosion of the bill of material

Front 77

advantages of MRP

Back 77

indicates the exact timing and quanitty or oders for all components, lowers inventory levels and helps firms to meet their master schedule commitments, allows managers to trace every order for lower-level items through all the levels of the BOM, up to the master schedule, tells the firm and its suppliers precisely what needs to be made when

Front 78

considerations in MRP

Back 78

accurate information, accommodate uncertainty, MRP nervousness

Front 79

root cause analysis

Back 79

process by which organizations brainstorm about possible causes of problems and then through structured analyses and data gathering efforts, gradually narrow the focus to a few, root causes