Supply Chain - Exam 1

Front 1

What is a supply chain?
All stages involved, directly or indirectly, in fulfilling a ______ ______.
Includes _______, retailers, suppliers, transporters, _______and _______.
In a company, the supply chain would include all _____ areas like _____ and ______.

Back 1

customer request
manufacturers
warehouses
customers
functional
finance
marketing

Front 2

What is the difference between first, second and third tier suppliers?

Back 2

First tier includes producers and packagers.

Second tier includes chemical manufacturers.

Third tier includes the timber industry (for a paper example); the bottom line; RAW MATERIALS

Front 3

What are the 3 types of flows in a supply chain?

Back 3

Information
Product
Funds

Front 4

What is the objective of a supply chain?

Back 4

to maximize overall value created.

Front 5

What is value in a supply chain?

Back 5

Value is profitability; it is the gap between benefit of delivering and cost of delivering

Front 6

What are the sources of supply chain revenue?
What are the sources of supply chain costs?

Back 6

the customer; all other perceived revenues are just transfers

flows of information, products, or funds between stages of the supply chain; the costs come from managing these flows

Front 7

Supply chain management is the management of _____ between and among supply chain stages to _____________________________.

Back 7

flows

to maximize total supply chain profitability.

Front 8

What are the decision phases of a supply chain?
What are the time phases for each one?

Back 8

Supply chain strategy or design: long-term impact requiring management approval and investment in capital of 5-10 years or more
Supply chain planning: medium-term range of 2 months to 18 months which affect the annual or bi-annual
Supply chain operation: the day-to-day, wk-to-wk, mo-to-mo that requires direct line management

Front 9

Strategic supply chain decisions include (4)

Back 9

1. Locations and capacities of facilities
2. Products to be made or stored at various locations
3. Modes of transportation
4. Information Systems

Front 10

Supply chain planning is also referred to as _____.

These decisions include: (6)

Back 10

Tactical

1. Which markets will be supplied from which locations
2. Planned build-up of inventories
3. Subcontracting, backup, locations
4. Inventory policies
5. Timing and size of market promotions
6. Must consider in planning decisions demand uncertainty, exchange rates, competition over the time horizon

Front 11

Supply chain operation time horizon is ______ or _______.

Decisions regard individual ______ ______.

Allocate orders to ____ or ______.
Set order ____ _____.
Generate _____ lists at a warehouse.
Allocate an order to a particular _____.
Set _____ schedules.
Place ______ orders.

Back 11

weekly or daily
customer orders
inventory or production
due dates
pick
shipment
delivery
replenishment

Front 12

What are the 3 process views of the supply chain?

Back 12

Cycle view
Push/pull view
Response vs. anticipation

Front 13

What is the cycle view of supply chains?

Back 13

A view that includes the customer at the top, followed by retailer, distributor, manufacturer and finally supplier.

Between each stage is a cycle.

Front 14

CYCLE VIEW OF SUPPLY CHAIN

Cycle between retailer and customer:
Cycle between distributor and retailer:
Cycle between manufacturer and distributor:
Cycle between supplier and manufacturer:

Back 14

Customer order cycle
Replenishment cycle
Manufacturing cycle
Procurement cycle

Front 15

What does the push/pull view of supply chains entail?

What is the push/pull boundary?

Back 15

Some companies have a push cycle and some have a pull cycle. Some switch between the 2.

Push processes include the procurement, manufacturing and replenishment cycles. Push is in EXPECTATION of demand (eg Kellogs)

Pull process is the customer order cycle. Pull when process is TRIGGERED by ACTUAL DEMAND (eg Amazon or Dell)
Sometimes the materials are not even bought until actual demand (eg Boeing)

Push/pull boundary is the point at which we begin to pull in the supply chain.

Front 16

What is the SCOR model?

Back 16

The Supply Chain operations reference model is a process reference model that has been developed by the supply chain council (SCC) as the cross-industry standard for supply-chain management; says you should be able to compare results/supply chains across industries

Front 17

What is the structure of the SCOR model?

Back 17

When the supply chain runs from the suppliers to the customers, plan is at the top, beneath it source, then make, and then deliver (all on the same level).
When the supply chain runs from the customers to the suppliers, it starts with return deliver and then return source.

The entire model is underlined by Enable which is not supply chain processes, but is necessary to the supply chain to function like creating demand, following GAAP, payroll/HR...etc)

Front 18

What's included in Plan in the SCOR model?

Back 18

Plan is forecasts, projections, schedules. Since you must plan first in order to execute, planning spans the whole model.

Front 19

What's included in Source, Make and Deliver in the SCOR model?

What's important to note about Make?

Back 19

Source: raw material
Make: production
Deliver: to customer

Different Makes show either push or pull cycles (like if it's made to order, made to stock, or replenishment to order)

Front 20

What are the applications of the SCOR model?
1.)Describe, measure and ______ supply chain ________.
2.) Rapidly ____ a company's own supply chain.
3.) ______ for a standard of comparison.
4.) Identify SCM _________ opportunities.
5.) Determine required ______ systems capabilities
6.) Influence creation of desired ______ products.
7.) Implement supply chain _______ improvements.

Back 20

1.)evaluate; configurations
2.) map
3.) benchmarking
4.) improvement
5.) information
6.) software
7.) process

Front 21

What is the methodolgy for the SCOR model?

What's included in each part of the methodology?

Back 21

Plan -> Analyze -> Improve

Plan: choose goals and assign responsibilities; standards
Analyze: take standards and measure performance; get an idea of where you are; find explanations in deficiencies
Improve: implement plans to improve areas of poor performance; measure again to evaluate changes

Front 22

What are the 6 drivers of supply chain performance?

Why is *one* of them especially important?

Back 22

Facilities
Inventory
Transportation
Information*
Sourcing
Pricing

*Info is highlighted among all drivers; there will be no decision-making without information

Front 23

1.) In the balancing act of supply chain drivers, what is the competitive strategy and where is it located?
2.) What is the supply chain strategy and where is it located?
3.)Is efficiency or responsiveness on the left?
4.)What are the logistical drivers?
5.)What are the cross-functional drivers?
6.)What is important to note about the cross-functional and logistical drivers?
7.) Why are the logistical drivers called logistical?
8.) Which is the most cross-functional driver?

Back 23

1.)Competitive strategy is the reason for the company to exist.
2.)The supply chain strategy is how the supply chain enables competitive strategy.
3.)Efficiency is on the left and responsiveness on the right
4.)The logistical drivers are facilities, inventory and transportation
5.)The cross-functional drivers are information, sourcing and pricing.
6.) There is an interaction between all of them
7.) The logistical drivers are logistical because they are connected to physical movement of goods
8.) Pricing because it is tied to brand and brand equity

Front 24

Why is there a need to balance efficiency and responsiveness?

Why is there are balancing act among the supply chain drivers?

Back 24

Efficiency is keeping cost of unit low while responsiveness is adaptability, quick reactivity and ability to change. Responsiveness is more expensive and thus decreases efficiency so you need to find a balance between the two when it comes to the supply chain drivers.

Front 25

What is the role of facilities in the supply chain?

Back 25

It's the "where" of supply chain.
Can be either manufacturing or storage (warehouses)

Front 26

Why does inventory exist?
Inventory is found throughout the supply chain in the form of what?

Back 26

-Exists because of a mismatch between supply and demand; volume and timing create the mismatch
-Raw materials, work in process (WIP), and finished goods

Front 27

What does transportation do? Why/How does it affect the inventory and facilities?

Back 27

-moves the products between stages in the supply chain
-affects inventory and facilities by location, method of transport (for timing), space in transportation, size of facilities (if there is a smaller space, then you need more frequent deliveries)

Front 28

What is information in the supply chain? What is it crucial to?

Back 28

Information is the connection between the various stages in the supply chain which allows coordination between stages.
-It is crucial to daily operation of each stage in a supply chain - eg production, scheduling, inventory levels because without info, we can't make decisions.

Front 29

What is sourcing in the supply chain? What are the questions to be asked?

Back 29

-Sourcing is a set of business processes required to purchase goods and services in a supply chain.
-The people in sourcing must select a supplier, must decide on a single supplier versus multiple suppliers, and must decide on contract negotiation

Front 30

What is pricing/what does it do in the supply chain?
What can pricing strategies be used to do?
What's important to note about pricing?

Back 30

Pricing determines the amount to charge customers in a supply chain.
Pricing strategies can be used to match demand and supply.
**Pricing is one of the most difficult drivers to manage because of things like inflation and how COGS is affect pricing and sourcing which affects profit margin. If you use it effectively, you can force demand to match supply.

Front 31

What are the obstacles to achieving strategic fit?

Back 31

1. Increasing variety of products
2. Decreasing product life cycles
3. Increasingly demanding customers
4. Fragmentation of supply chain ownership
5. Globalization
6. Difficulty executing new strategies

Front 32

What does shaken, not stirred remind us of?

Back 32

Extremely demanding customers

Front 33

Why bother with product development?

Back 33

1. External benefits
2. Internal benefits
3. Exploit strengths/core competencies
4. Block competitors

Front 34

What would be external benefits of product development?

Back 34

New customers, increased market share, percentage of people who buy product that choose your band

Front 35

What would be internal benefits of product development?

Back 35

Easier to manufacture, cheaper and increased profit

Front 36

What would be the benefits of exploiting strengths/core competencies of product development?

Back 36

Break through into new products

Front 37

What would be the benefits of blocking competitors of product development?

Back 37

Can't be quickly replicated, like patents

Front 38

What are the operations and supply chain functional areas? And what is included in each area?

Back 38

1. Concept development: scan suppliers for promising technologies and capabilities
2. Planning - develop initial cost estimates and identify key supply chain partners
3. Design and Development - develop detailed process maps of operations and supply chain flows and test new processes
4. Commercial preparation - build pilot units using new operations; train personnel, and verify supply chain flows
5. Launch - ramp up volumes, meet cost targets, and meet quality and other performance target goals

Front 39

What are the perspectives of operations and supply chain?

Back 39

1. Repeatability, testability and serviceability of the design
2. Product volumes
3. Product costs
4. Match with existing capabilities

Front 40

What is repeatability? Testability? Serviceability?

Back 40

Repeatability: consistent production, tolerance to manufacturing variations (robustness)
Testability: non-value added activity (as in doesn't add value in eye of consumer, though there are exceptions, like parachutes), so should be easy and inexpensive to do; should also be quick because it takes time away from product.
Serviceability: ease of repair, critical for products expected to be serviced or repaired (autos)

Front 41

What are the obstacles to achieving strategic fit?

Back 41

1. Increasing variety of products
2. Decreasing product life cycles
3. Increasingly demanding customers
4. Fragmentation of supply chain ownership
5. Globalization
6. Difficulty executing new strategies

Front 42

What does shaken, not stirred remind us of?

Back 42

Extremely demanding customers

Front 43

Why bother with product development?

Back 43

1. External benefits
2. Internal benefits
3. Exploit strengths/core competencies
4. Block competitors

Front 44

What would be external benefits of product development?

Back 44

New customers, increased market share, percentage of people who buy product that choose your band

Front 45

What would be internal benefits of product development?

Back 45

Easier to manufacture, cheaper and increased profit

Front 46

What would be the benefits of exploiting strengths/core competencies of product development?

Back 46

Break through into new products

Front 47

What would be the benefits of blocking competitors of product development?

Back 47

Can't be quickly replicated, like patents

Front 48

What are the operations and supply chain functional areas? And what is included in each area?

Back 48

1. Concept development: scan suppliers for promising technologies and capabilities
2. Planning - develop initial cost estimates and identify key supply chain partners
3. Design and Development - develop detailed process maps of operations and supply chain flows and test new processes
4. Commercial preparation - build pilot units using new operations; train personnel, and verify supply chain flows
5. Launch - ramp up volumes, meet cost targets, and meet quality and other performance target goals

Front 49

What are the perspectives of operations and supply chain?

Back 49

1. Repeatability, testability and serviceability of the design
2. Product volumes
3. Product costs
4. Match with existing capabilities

Front 50

What is repeatability? Testability? Serviceability?

Back 50

Repeatability: consistent production, tolerance to manufacturing variations (robustness)
Testability: non-value added activity (as in doesn't add value in eye of consumer, though there are exceptions, like parachutes), so should be easy and inexpensive to do; should also be quick because it takes time away from product.
Serviceability: ease of repair, critical for products expected to be serviced or repaired (autos)

Front 51

What do product volumes and cost do?

Back 51

Determine the process strategies, levels of customization and level of after-sales support

Front 52

1.What is involved in determining process strategies?
2.Level of customization?
3.Level of after-sales support?

Back 52

1. Types of equipment, level of automation and staffing required (volume is determined by these 3)
2. Made-to-order; specifications; harder to customize with more volume because you have to tweak more things
3. You can't provide it to just 5% of your volume so you have to make sure you have enough but not too much

Front 53

What are some of the hidden costs in the supply chain?

Back 53

Number of parts in a product
Engineering Changes
Transportation Costs

Front 54

What are the hidden costs in the number of parts in a product?
Engineering changes?
Transportation costs?

Back 54

1. Increased handling, tracking and other inventory costs; more procedures required
2. affects entire supply chain; requires you to correct something in manufacturing
3. logistics becoming a significant cost; shape, size, weight and packaging are concerns

Front 55

What is product design flexibility? Process flexibility? How are they matched with existing capabilities?

Back 55

-Product design flexibility: easy to add features? easy to upgrade?; WHAT to give; ex: Microsoft Biz Talk allows flexibility to add new features
-Process flexibility: share processes/parts? Will upgrades make current operations obsolete? Ex: care with same frame allow you to manufacture them on the same line making them cheaper.

When you make an upgrade on a product, you have to make sure the new product can still function with technology of old product.

Front 56

1. Modular design allows for a higher level of ______.
2. Retains _________ advantage of higher volumes for ____ components.
3. Easier ______.
4. Facilitates servicing and _______.
5. Allows for _____.

Back 56

1. customization
2. lower-cost; core
3. assembly
4. repairs
5. upgrades

Front 57

The Product Life Cycle is representative of ...

What's important to note about the diagram for the PLC?

Back 57

what we wish would happen

the stages in the cycle aren't all necessarily the same length

Front 58

What are the 6 stages in the Product Life Cycle?

Back 58

1. Development
2. Introduction
3. Growth
4. Maturity
5. Saturation
6. Decline

Front 59

What's included in each stage of the Product Life Cycle?

Back 59

1. Development: conceptualizing
2. Introduction: release into market; advertise a lot
3. Growth: rapid growth; inventory stockouts here are really bad; focus is on responsiveness because demand is extremely uncertain
4. Maturity: Product has made entrance; rate of growth has declined; unless you re-introduce as new and improved, (iPod); demand is more predictable; can focus more on efficiency than responsiveness
5. Saturation: zero growth or declining growth; negative prospects
6. Decline: product will not make you any more money (ex: VHS) until obsolescence.

Front 60

What's important to note about the Product Life Cycle?

Back 60

There are products that go straight from introduction to decline without ever reaching maturity; it's a dud

Front 61

What are the three supply chain macro processes and what do they do?

Back 61

Customer Relationship Management (CRM)
Internal Supply Chain Management (ISCM)
Supplier Relationship Management (SRM)

They manage the flow of information, product and funds required to generate, receive and fulfill a customer request. They aim to generate customer demand and facilitate the placement and tracking of orders.

Front 62

What is CRM? What does it do?

Back 62

CRM is all processes that focus on the interface between the firm and its customers like dealing with the market, price, sell, call centers, and order management

Front 63

What is ISCM? What does it do?

Back 63

All processes that are internal to the firm like dealing with strategic planning, demand planning, supply planning, fulfillment and field service

Front 64

What is SRM? What does it do?

Back 64

All processes that focus on the interface between the firm and its suppliers like dealing with sourcing, negotiating, buying, design collaboration, and supply collaboration

Front 65

Within a firm, all supply chain activities belong to one of three _____ processes: CRM, ISCM, SRM. _____ among these 3 processes is crucial for supply chain management.

Back 65

macro
integration

Front 66

Why do we use the SCOR model?

Back 66

to be able to compare results and supply chains across industries.

Front 67

What are the 3 customer facing attributes in SCOR?

Back 67

1. Supply chain delivery
2. Supply chain responsiveness
3. Supply chain flexibility

Front 68

What are the 2 internal facing attributes in SCOR?

Back 68

1. Supply Chain costs
2. Supply chain asset management efficiency (like how well is supply chain turning asset into money)

Front 69

What is cycle inventory?

Back 69

Cycle inventory is the average amount of inventory used to satisfy demand between receipts of supplier shipments.

Front 70

What is material flow time?

Back 70

the time that elapses between the point at which material enters the supply chain to the point at which it exits

Front 71

What is throughput?

What is Little's Law?

Back 71

the rate at which sales occurs.

I = DT

Front 72

What is safety inventory?

Back 72

inventory held in case demand exceeds expectation; it is held to counter uncertainty

Front 73

What is the level of product availabilty?

Back 73

the fraction of demand that is served on time from product held in inventory.

Front 74

What is material requirements planning?

Back 74

MRPs take the master production schedule and roll it back, creating schedules with suppliers with part types, quantities and delivery dates.

Front 75

What is supply chain coordination?

Back 75

Occurs when all stages of a supply chain work toward the objective of maximizing roral supply chain profitability based on shared information.

Front 76

What is forecasting?

Back 76

the art and science of making projections about what future demand and conditions will be

Front 77

What is aggregate planning?

Back 77

transforms forecasts into plans of activity to satisfy the projected demands. A key decision managers make is how to collaborate on aggregate planning.

Front 78

What is product design?

Back 78

the characteristics or features of a product or service that determine its ability to meet the needs of the user

Front 79

What is the product development process?

Back 79

the overall process of strategy, organization, concept generation, product and marketing plan creation and evaluation and commercialization of a new product.

Front 80

New products or services can give firms a __________ ________ in the marketplace.

Back 80

Competitive advantage

Front 81

The operations and supply chain perspective on product design will usually center on 6 dimensions which are...

Back 81

1. Repeatability
2. Testability
3. Serviceability
4. Product volumes
5. Product costs
6. Match between the design and existing capabilities

Front 82

What is the sequential development process?

Back 82

a process in which the product or service idea must clear specific hurdles before it can go on to the next development phase.

Front 83

What is concurrent engineering?

Back 83

An alternative to sequential development in which activities in different development stages are allowed to overlap with one another, thereby shortening the total development time

Front 84

What is computer aided design (CAD) systems?

Back 84

Information systems that allow engineers to develop, modify, share, and even test designs in a virtual world. CAD systems helps organizations avoid the time and expense of paper-based drawings and physical prototypes

Front 85

What is computer-aided design/computer-aided manufacturing systems (CAD/CAM)?

Back 85

an extension of CAD. Here, CAD-based designs are translated into machine instructions, which are then fed automatically into computer controlled manufacturing equipment.

Front 86

What is Design for manufacturability?

Back 86

The systematic consideration of manufacturing issues in the design and development process, facilitating the fabrication of the product's components and their assembly into the overall product.

Front 87

What is parts standardization?

Back 87

the planned elimination of superficial, accidental, and deliberate differences between similar parts in the interest of reducing the part and supplier proliferation

Front 88

What is modular architecture?

Back 88

a product architecture in which each functional element maps into its own physical chunk. Different chunks perform different functionsl the interactions between the chunks are minimal, and they are generally well-defined.

Front 89

What is design for maintainability? (DFMt)

Back 89

the systematic consideration of maintainabilty issues over the product's projected life cycle in the design and development process

Front 90

What is design for Six Sigma? (DFSS)

Back 90

an approach to product and process design that seeks to ensure the organization is capable of providing products or services that meet Six Sigma quality levels - in general, no more than 3.4 defects per million opportunities

Front 91

What is design for the environment? (DFE)

Back 91

an approach to a new product design that addresses environmental, safety, and health issues over the product's projected like cycle in the design and development process

Front 92

What is target costing?

Back 92

The process of designing a product to meet a specific cost objective. Target costing involves setting the planned seeling price and subtracting the desired profit, as well as marketing and distribution costs, thus leaving the required target cost.

Front 93

What is design to cost?

Back 93

same as target costing

Front 94

What is value analysis (VA)?

Back 94

a process that involves examining all elements of a component, assembly, end product or service to make sure it fulfills its intended function at the lowest total cost. Value = function/cost