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;
98 Cards in this Set
- Front
- Back
|
key issues to consider in choosing a manufacturing location |
labor - wages, technical skills, work ethic, culture, language
facility, infrastructure, and utilities - are the site and facilities adequate?
laws - labor, intellectual property, environmental regulations, criminal
resource availability - supplies, raw materials, fuel, energy
local risks - crime, law enforcement, politics
climate - will weather conditions be appropriate for the product, machines, and employees?
transportation and transportation infrastructure
trade agreements, tariffs, and quotas |
|
|
established channels of distribution |
represent the chain of organizations that help bring a product into the hands of the end user; established history of working together; transactions occur regularly and more fluidly; downstream
packaging, delivery, warehouses, DC's, perhaps suppliers |
|
|
established supplier base |
the collection of companies from which an organization presently purchases products/services; transactions occur regularly and more fluidly; upstream |
|
|
hypercompetitive markets |
can refer to an industry, or more specifically an industry that is concentrated ina particular region, where the companies compete fiercely. this intense competition may result in rapid innovation but short cycles of competitive advantage; advantage would be the established channels of dist and suppliers
examples: Detroit, Las Vegas, LA (movies) |
|
|
relationship between design, marketing, and supply chain management |
marketing identifies a target market. Designers and engineers work to develop products that satisfy the needs of the target market. Supply chain must then buy parts, manufacture hundreds or thousands of those end items, and then deliver them into the hands of the customer. Coordination and integration are vital to long-term success. |
|
|
strategic decisions (relationship between design, marketing, and supply chain management) |
Decisions made at the highest levels of the organization; they provide direction for the company by identifying target markets, business models, and potentially product/service categories that the company wants to compete in; provide long-range goals |
|
|
design decisions (relationship between design, marketing, and supply chain management) |
decisions that seek to satisfy a target market in a particular product/service category. Decisions that provide a more specific roadmap to satisfying strategic goals. |
|
|
operating decisions (relationship between design, marketing, and supply chain management) |
Decisions that impact the organization in the short-term. Typically they relate to the daily operations that are performed in a company on a routine basis. Good operating decisions can help companies meet their strategic and design goals. |
|
|
line flow strategy and layout |
works well in producing end items that have high demand and require very little customization; work centers are in a linear path; start on one end and end on the other; each work center performs the exact same task to every unit; can be in S or U shape too
2 types: assembly line and continuous flow systems |
|
|
assembly line (line flow strategy and layout) |
can be stopped at any time without compromising the inventory flowing through;
examples: cars, trucks, digital devices |
|
|
continuous flow systems (line flow strategy and layout) |
these line flow systems must run to completion once the process has been started; must finish their cycle
example: making bread |
|
|
flexible flow strategy and layout |
works well to produce end items/services that have relatively low demand levels and may require a high level of customization; although each work center performs a single function, a large degree of variation is possible at each workstation
example: paint work station - different colors, different types of paint |
|
|
hybrid strategy and layout |
combines elements of line flow and flexible flow layouts; may pass through in a linear fashion, but each workstation would have the ability to allow for some level of customization
example: PC assembly |
|
|
GT Cells |
group technology - a type of hybrid strategy that utilizes a line-flow layout for low-volume processes; multiple end items that can be categorized into product families - couches, tables, and chairs - each product family would get its own GT Cell |
|
|
one worker, multiple machine cells (OWMM) |
typically a line-flow layout that is designed to be operated by a single employee; typically uses a U shaped layout |
|
|
fixed position layout |
used to assemble products that are too large, bulky, or fragile to safely or effectively move to a location for completion; workers go to the product, the product doesn't move through an assembly line |
|
|
assembly line challenges |
-bottlenecks -too many employees and/or workstations -employee inequities -present needs vs future demands |
|
|
bottlenecks (assembly line challenges) |
a section of a supply chain that limits the overall output of the assembly line; slowest/weakest workstation; takes the longest |
|
|
too many employees and/or workstations (assembly line challenges) |
controlling cost and movement is key to long term efficiency of an assembly line; too many workers or more workstations which require more material hand-offs |
|
|
employee inequities (assembly line challenges) |
employees may be agitated by the fact they have a heavier workload than another workstation |
|
|
present needs vs future demands (assembly line challenges) |
assembly line may be perfect for current demand, but what if demand rapidly increases? |
|
|
tasks or work elements (assembly line terminology) |
the smallest units of work that must be accomplished to complete an end item on the assembly line |
|
|
total task time (t) (assembly line terminology) |
the total time to complete all the tasks |
|
|
precedence diagram (assembly line terminology) |
an illustration that shows the relationships between all the work elements in an assembly line process; shows order of tasks AND if tasks can be done simultaneously |
|
|
workstation (assembly line terminology) |
is the collection of one or more work elements
example: grouping tasks A, B, C in a workstation is the responsibility of one employee |
|
|
cycle time (c) (assembly line terminology) |
the pace at which product must move through the assembly line in order for the assembly line to keep pace with demand; tells a manager the max amount of task time that can be put into a single work station
c = operating time / demand c = OT/D |
|
|
theoretical minimum number of workstations (TM) (assembly line terminology) |
the THEORETICAL least number of workstations; may not actually be possible; if decimal, ALWAYS round up
TM = total task time / cycle time TM = t/c |
|
|
actual number of workstations (n) (assembly line terminology) |
exactly what is sounds like... the actual number of workstations |
|
|
line balancing |
goals are to equitable group precedence diagram tasks into the fewest number of workstations |
|
|
idle time |
the amount of time that is not utilized at each workstation; the total amount of idle time in an assembly line can be calculated using this formula:
total idle time = nc - t |
|
|
efficiency |
the ratio of time worked on the assembly line vs the total time available in the assembly line
efficiency = t / nc |
|
|
effective cycle time |
is the same as the bottleneck workstation |
|
|
logistics management is... |
that part of SCM that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related info between the point of origin and the point of consumption in order to meet customers' requirements |
|
|
geographic extension of supply chains (reasons for highway transport increase) |
as more companies developed supply chain relationships with nonlocal suppliers and customers, highway traffic increased |
|
|
greater emphasis on delivery speed and flexibility (reasons for highway transport increase) |
highway transportation has a clear advantage over both rail and water |
|
|
highway transportation |
71% of the total value of goods moved; 40% of total ton-miles; 67% val growth; 31% ton-mile growth
advantages: flexibility; often best balance of cost, flex, and reliability/speed of delivery
disadvantages: neither fastest or cheapest option |
|
|
water transportation |
advantages: good for bulky items; most effective when linked to multimodal system
disadvantages: limited locations; poor delivery reliability/speed |
|
|
air transportation |
account for about 5% of all ton-miles in US; 10% val growth; -28% ton-miles decline |
|
|
rail transportation |
advantages: cost effective for bulky items; most effective linked to multimodal system
disadvantages: limited location, but more than water; not as fast as highway, but improving over time |
|
|
5 modes of transport |
rail air water highway pipeline |
|
|
direct truck shipment |
a shipment made directly, with no additional stops, changing of trucks, or loading of additional cargo |
|
|
less than truckload (LTL) shipment |
a smaller shipment, often combined with other loads to reduce costs and improve truck efficiencies |
|
|
a roadrailer is... |
a specialized rail car the size of a standard truck trailer that can be quickly switched from rail to ground transportation by changing the wheels |
|
|
warehousing is... |
any operation that stores, repackages, stages, sorts, or centralizes goods or materials. Used to reduce transportation costs, improve operational flexibility, shorten customer lead times, and lower inventory costs |
|
|
consolidation warehousing is... |
a form of warehousing that pulls together shipments from a number of sources (often plants) in the same geographic area and combines them into larger, more economical shipping loads |
|
|
cross-docking is... |
a form of warehousing in which large incoming shipments are received and then broken down into smaller outgoing shipments to demand point in a geographic area. It combines the economies of large incoming shipments with the flexibility of smaller local shipments |
|
|
break-bulk warehousing is... |
a specialized form of cross-docking in which the incoming shipments are from a single source or manufacturer |
|
|
hub-and-spoke system is... |
a form of warehousing in which strategically placed hubs are used as sorting or transfer facilities. The hubs are typically located at convenient, high-traffic location. The "spokes" refer to the routes serving the destinations associated with the hubs. |
|
|
a pup trailer is... |
a type of truck trailer that is half the size of a regular truck trailer |
|
|
postponement warehousing is... |
a form of warehousing that combines classic warehouse operations with light manufacturing and packaging duties to allow firms to put off final assembly or packaging of goods until the last possible moment; improves operation flexibility |
|
|
assortment warehousing is... |
a form of warehousing in which a wide array of goods is held close to the source of demand in order to assure short customer lead times |
|
|
spot stock warehousing is... |
a form of warehousing that attempts to position seasonal goods close to the marketplace. At the end of each season, the goods are either liquidated or moved back to a more centralized location. shortens customer lead times |
|
|
material handling system is... |
a system that includes the equipment and procedures needed to move goods within a facility, between a facility and a transportation mode, and between different transportation modes |
|
|
packaging is... |
from a logistics perspective, the way goods and materials are packed in order to facilitate physical, informational, and monetary flows through the supply chain |
|
|
should we outsource logistics? |
does the firm have the volume needed to justify a private logistics system?
would owning the logistics system limit the firm's ability to respond to changes in the marketplace or supply chain?
is logistics a core competency for the firm? |
|
|
common carrier is... |
AKA a public carriers, a transportation service provider that handles shipments on a case-by-case basis, without the need for long-term agreements or contracts |
|
|
contract carrier is... |
a transportation service provider that handles shipments for other firms based on long-term agreements or contracts |
|
|
third-party logistics provider (3PL) is... |
a service firm that handles all of the logistics requirements for other companies |
|
|
bulk cargo is... |
free flowing cargo, stored loose loaded by shovel, pump, bucket, or scoop coal, rice, grain, raw sugar, oil, sulfur |
|
|
breakbulk cargo is... |
general or packaged cargo often containerized and measured in TEU's CL, LCL, TL, LTL |
|
|
neo-bulk cargo is... |
characteristics of both bulk and break bulk
automobiles, logs, steel, cattle |
|
|
cube (logistics terminology) |
amount of space in a container (or package) available for cargo; also described as cubic capacity |
|
|
cubing out (logistics terminology) |
when all of the space in the container has been filled |
|
|
weighing out (logistics terminology) |
when the container has been filled with product, such that additional cargo will exceed the container's weight limit |
|
|
intermodal (transportation terminology) |
seamless multimodal shipment; no need to unload container or repackage products; one container for entire trip |
|
|
reasons for packaging |
-marketing and promotion -product info - weight, volume -legal considerations -provides protection from light, thieves, dust, moisture, impact -provides support for other products or boxes -preservation of perishable products -facilitates movement/handling - easy for carrying and storage |
|
|
types of packaging |
industrial consumer reusable |
|
|
industrial (types of packaging) |
pallets, slip sheets, supplier to manufacturer, interplant handling |
|
|
consumer (types of packaging) |
cans, bottles, shrink wrap, boxes |
|
|
reusable packaging (types of packaging) |
industrial and consumer varieties - pallets, bottles, fast food cups, commercial or industrial packaging |
|
|
dunnage is... |
used to fill empty space inside boxes, tubes, etc
examples: loose fill (popcorn), bubble wrap, inflatable plastic bags |
|
|
primary packaging is... |
in contact with the end item (plastic bag, can, bottle, shrink wrap); most heavily regulated; how it will react with product in certain conditions? |
|
|
secondary packaging |
contains end item and primary packaging |
|
|
tertiary packaging |
contains several items which are in secondary packaging; need reach trucks to handle
crate, pallet, metal straps, shrink wrap |
|
|
pallet dimensions |
4x4x4 feet |
|
|
TL and CL (containerization terminology) |
full truckload and full container load |
|
|
LTL and LCL (containerization terminology) |
less than a truck/container load
example: UPS or FEDEX |
|
|
standard container sizes |
8x8.5x20 = 20 footers 8x8.5x40 = 40 footers 9x9.5x(20/40) = high cubes |
|
|
TEU |
twenty-foot equivalent unit |
|
|
reefers are... |
controlled atmosphere (CA) containers |
|
|
TOFC (railcar transport) |
trailer on a flat car (aka piggyback service) |
|
|
COFC (railcar transport) |
container on a flat car |
|
|
product mixing (distribution options) |
slow mixing centers; traditional distribution model |
|
|
outbound consolidation (distribution options) |
assembly and/or packing of end item |
|
|
letter of credit |
doc issued/written by the buyer's bank and addressed to the seller
parties involved: buyer, seller, issuing bank, paying bank, advising bank, confirming bank |
|
|
commercial invoice |
summation of entire transaction terms of sale, quantities, prices, currency, dates, references |
|
|
packing list |
placed in each container of assorted merchandise by packer; more detailed than invoice |
|
|
shipper's letter of instructions |
provides info on handling, payment, etc to an intermediary |
|
|
certificate of orgin |
states origin of cargo; important to Customs in collecting tariffs
tariffs can be based on: -origins of materials and components -labor/assembly sites of each component -final labor/assembly sites |
|
|
bill of Lading |
3 purposes: 1. contract of carriage between seller/shipper and the carrier 2. states ownership of cargo; acts as title 3. receipt of goods for shipper - shows carrier received goods and in what shape/quality
same as airway bill for air transport |
|
|
shippers export declaration (SED) (exporting documentation) |
used by customs in recording export types and quantities; required if cargo greater than $2500 in value OR if validated export license is required OR if destined for countries prohibited by Export Administration Regulations |
|
|
validated export license (exporting documentation) |
US gov't authorization for controlled of policed items/services -potential dual purpose technologies -defense, weapons, ammo, nuclear, watercraft -drugs, narcotics, processing equipment -financial assets, patent sensitive items -agricultural plants and products |
|
|
3 rules of exporting (customs rules) |
1. assume EVERYTHING is controlled (even intangible things) 2. these rules apply everywhere - customs agencies are responsible for upholding domestic and other countries laws 3. authorizatio is required before export - license must be in hand, not just application |
|
|
US customs penalties and fines |
-loss of US export privileges 3-10 years -debarment as US government contractor -no transfer of technology to any foreigner (non-US citizen) -fines - $250k/person, $1m/co, or 5x export value -prison sentence for each individual involved 5-10 years; no corporate shields allowed |
|
|
duty drawback |
when an item is imported and then re-exported you can get almost all of your money back
NASA lens |
|
|
free trade zones (FTZs) |
area where items can enter country duty free for storage, display, manufacturing, transformation, assembly, re-packaging, etc
items are then usually re-exported; alternative to duty drawbacks; items can remain permanantly if duties levied |
|
|
freight forwarders |
US side of exports, "travel agents"; find most efficient and cost effective itinerary |
|
|
customs house brokers |
help items clear foreign customs before arrival; foreign side of exports - arrange local itinerary |
