Scm 310 Exam 3

Front 1

an important operational decision that affects the cost of operations, customer service, and sustainability

Back 1

process design

Front 2

the 3 major types of goods and services

Back 2

Custom or make to order (MTO), Option or assemble to order (ATO), and standard or make to stock (MTS)

Front 3

goods and services are generally produced and delivered as one of a kind or in small quantities and are designed to meet specific customers' specifications

Back 3

make to order goods and services

Front 4

these are configurations of standard parts, subassemblies, or services that can be selected by customers from a limited set

Back 4

assemble to order (ATO)

Front 5

these are goods and services that are made according to a fixed design, and the customer has no options from which to choose

Back 5

make to stock (MTS)

Front 6

strategic choice to separate "push" (forecast driven) and "pull" (demand driven) operations by utilizing an inventory buffer

Back 6

decoupling point

Front 7

four principal types of processes that are used to produce goods and services

Back 7

projects, job shop processes, flow shop processes, continuous flow processes

Front 8

large scale, customized initiatives that consist of many smaller tasks and activities that must be coordinated and completed to finish on time and within budget

Back 8

projects

Front 9

organized around particular types of general purpose equipment that are flexible and capable of customizing work for individual customers

Back 9

job shop processes

Front 10

______ produce a wide variety of goods and services, often in small quantities, customer orders are generally processed in batches, very flexible

Back 10

job shop processes

Front 11

organized around a fixed sequence of activities and process steps, such as an assembly line, to produce a limited variety of similar goods or services, usually not flexible

Back 11

flow shop processes

Front 12

many large volume option oriented and standard goods and services are produced in _______ ______ ___________

Back 12

flow shop settings

Front 13

creates highly standardized goods or services, usually around the clock in very high volumes

Back 13

continuous flow processes

Front 14

a characterization of product growth, maturity, and decline over time

Back 14

product life cycle

Front 15

four phases of the product life cycle

Back 15

introduction, growth, maturity, decline

Front 16

a model that describes the alignment of process choice with the characteristics of the manufactured good

Back 16

product-process matrix

Front 17

selectively and consciously positioning a business off the diagonal of the product process matrix, differentiating the company from competitors

Back 17

positioning strategy

Front 18

model that suggests that the nature of the customer's desired service encounter activity sequence should lead to the most appropriate service system design and that superior performance results by generally staying along the diagonal of the matrix

Back 18

service positioning matrix

Front 19

a unique route through a service system

Back 19

pathway

Front 20

consists of all the process steps and associated service encounters necessary to complete a service transaction and fulfill customer's wants and needs

Back 20

service encounter activity sequence

Front 21

those that offer customers broad freedom to select the pathways that are best suited for their immediate needs and wants from many possible pathways through the service delivery system

Back 21

customer-routed services

Front 22

constrain customers to follow a very small number of possible and predefined pathways through the service system

Back 22

provider routed services

Front 23

focus on the service encounter level and helps management design a service system that best meets the technical and behavioral needs of customers

Back 23

service positioning matrix

Front 24

the service encounter activity sequence consists of two things:

Back 24

1. degree of customer discretion, freedom, and decision making power 2. degree of repeatability

Front 25

four levels of work

Back 25

task, activity, process, and value chain

Front 26

a specific unit go work required to create an output

Back 26

task

Front 27

a group of tasks needed to create and deliver an intermediate or final output

Back 27

activity

Front 28

a group of activities

Back 28

process

Front 29

a network of processes

Back 29

value chain

Front 30

describes the sequence of all process activities and tasks necessary to create and deliver output or outcome

Back 30

process map (flowchart)

Front 31

the beginning or end of a process

Back 31

process boundary

Front 32

refers to all value added activities involved in designing, producing, and delivering goods and services to customers

Back 32

value stream

Front 33

shows the process flows in a manner similar to an ordinary process map; the difference lies in that this one highlights value added vs non value added activities and includes cost associated with work activities for both value and non value added activities

Back 33

value stream map

Front 34

examples of non value added activities

Back 34

overproducing, waiting for service or to do work, not doing work correctly the first time, transferring materials between 2 nonadjacent workstations

Front 35

the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed

Back 35

reengineering

Front 36

the two basic questions for reengineering

Back 36

1. why do we do it? 2. why is it done this way?

Front 37

the fraction of time a workstation or individual is busy over the long run

Back 37

utilization

Front 38

the average number of entities completed per unit time from a process is called ______

Back 38

throughput

Front 39

the work activity that effectively limits throughput of the entire process

Back 39

bottleneck

Front 40

the average time it takes to complete one cycle of a process

Back 40

flow time/cycle time

Front 41

a simple formula that explains the relationship among flow time (T) throughput ® and work in process (WIP)

Back 41

Littles Law

Front 42

T or F? in service operations, significant volume increases can and frequently are made without changes in the service process, as would be expected in manufacturing

Back 42

TRUE

Front 43

a manufacturing firm that produces a standardized product, not made of discrete parts, with little to no customization, with high demand is most likely to use this type of process

Back 43

flow shop

Front 44

during which phase of a product's life cycle does low unit cost become a top competitive priority

Back 44

maturity

Front 45

which of the following is not a major activity in designing a goods producing or service producing process?

Back 45

utilize reengineering

Front 46

_______ can be one of the most expensive assets of an organization

Back 46

inventory

Front 47

inventory management models can be classified as these 2 groups

Back 47

dependent demand and independent demand

Front 48

describes the internal demand for parts based on the demand of the final product in which the parts are used

Back 48

dependent demand

Front 49

the demand for final products and has a demand pattern affected by trends, seasonal patterns, and general market conditions

Back 49

independent demand

Front 50

the primary functions of inventory are to:

Back 50

buffer from uncertainty in the marketplace and decouple dependencies in the supply chain (safety stock)

Front 51

the 4 broad categories of inventories

Back 51

raw materials, work in process, finished goods, maintenance, repair and operating

Front 52

unprocessed purchase inputs

Back 52

raw materials

Front 53

partially processed materials not yet ready for sales

Back 53

work in process

Front 54

products ready for shipment

Back 54

finished goods

Front 55

materials used in production

Back 55

maintenance, repair, and operating

Front 56

directly traceable to unit produced

Back 56

direct costs

Front 57

cannot be traced directly to the unit produced

Back 57

indirect costs

Front 58

independent of the output quantity

Back 58

fixed costs

Front 59

vary with output level

Back 59

variable costs

Front 60

direct variable costs for making an order, in manufacturing setup costs are related to machine set ups

Back 60

order costs

Front 61

incurred for holding inventory in storage

Back 61

holding or carrying costs

Front 62

4 types of inventory carrying costs

Back 62

capital, storage space, inventory service, inventory risk

Front 63

opportunity cost associated with investing in inventory, or any asset, over other investment choices, generally the largest component of ICC

Back 63

capital

Front 64

minimum rate of return for any investment

Back 64

hurdle rate

Front 65

variable costs of moving product in and out of storage

Back 65

storage space

Front 66

public space is mostly what kind of cost?

Back 66

variable

Front 67

private space is primarily what kind of cost?

Back 67

fixed

Front 68

insurance and taxes on stored goods, varies according to the value of goods

Back 68

inventory service

Front 69

factors beyond the control of the firm

Back 69

inventory risk

Front 70

types of inventory risk

Back 70

obsolescence, damage, theft, employee pilferage

Front 71

determines which inventories should be counted and managed more closely than others

Back 71

ABC inventory control system

Front 72

ABC Classes

Back 72

revenue, profit, and volume

Front 73

used to reduce inventory at multiple locations, states that total safety stock can be approximated by multiplying the total inventory by the square root of the number of future facilities divided by the current number of facilities

Back 73

square root law

Front 74

successor to the bar code for tracking individual unit of goods, does not require direct line of sight to read a tag and information on the tag is updateable

Back 74

radio frequency identification (RFID)

Front 75

to design an inventory control system you need to know 2 things:

Back 75

how much to order (EOQ) and when to order (ROP)

Front 76

relaxes the constant price assumption by allowing purchase quantity discounts

Back 76

quantity discount model

Front 77

considers the tradeoff between purchasing in large quantity to take advantage of the price discount and issuing fewer orders, against holding higher inventory

Back 77

quantity discount model or price break model

Front 78

the lowest inventory level at which a new order must be placed to avoid a stockout, demand and delivery lead time are never certain and require safety stock

Back 78

statistical reorder point (ROP)

Front 79

necessary to cover variations in demand or supply

Back 79

safety stock

Front 80

the average daily demand during lead time plus the safety stock

Back 80

reorder point

Front 81

involves ordering at fixed intervals and varying Q depending upon the remaining stock at the time the order is placed

Back 81

fixed order interval approach/ Periodic review

Front 82

refers to the assignment of start and completion times to particular jobs, people, or equipment

Back 82

scheduling

Front 83

refers to determining the order in which jobs or tasks are processed

Back 83

sequencing

Front 84

attempts to match available personnel with the needs of the organization

Back 84

staff scheduling

Front 85

4 decisions for appointment systems

Back 85

1. determine the appointment time interval 2. determine the length of each workday and time off duty 3. decide how to handle overbooking 4. develop customer appointment rules that maximize customer satisfaction

Front 86

sequencing criteria (3)

Back 86

process-focued performance criteria, customer focused due date criteria, cost based criteria

Front 87

the amount of time a job spent in the shop or factory

Back 87

flow time

Front 88

the time needed to process a given set of jobs

Back 88

makespan

Front 89

the difference between the completion time and the due date

Back 89

lateness

Front 90

the amount of time which the completion time exceeds the due date

Back 90

tardiness

Front 91

maximizes resource utilization and minimizes average flow time and work in process inventory

Back 91

shortest processing time (SPT)

Front 92

minimizes the maximum job tardiness and lateness

Back 92

earliest due date (EDD)

Front 93

FCFS

Back 93

first come first serve

Front 94

FNO

Back 94

fewest number of operations remaining

Front 95

LWR

Back 95

least work remaining- the sum of all processing times for operations not yet performed

Front 96

LWNQ

Back 96

least amount of work at the next process queue- amount of work awaiting the next process in a job's sequence

Front 97

useful tools for monitoring schedules, helps track jobs that are behind, on, or ahead of schedulel

Back 97

gantt charts

Front 98

decisions regarding the types of parts purchased, suppliers used, and the manufacturing process employed, should be decided in which phase of the supply chain integration model?

Back 98

review and establish supply chain strategies

Front 99

a primary goal in supply chain management is to create value for end customers and Tier 1 suppliers. creating value for these members of a supply chain will in turn benefit the partners in between such as manufacturers and distributors that rely heavily on end customers and Tier 1 suppliers to be successful T to F?

Back 99

FALSE

Front 100

the phase of the supply chain integration model concerned with identifying the important processes linking each of the supply chain partners is

Back 100

align supply chain strategies with key supply chain process objectives

Front 101

which of the following is considered an obstacle to supply chain integration?

Back 101

price and discounting which can create a bullwhip effect and lack of supply chain visibility

Front 102

which of the following is a vital element in developing a strong supply chain through the practice of process integration?

Back 102

a. partner collaborations that share knowledge management solutions

b. developing and implementing a stung information technology system that allows for fast and easy information exchanges

c. partnerships that are built on trust

d. all the above

ITS D!!!!!!!!!!!!

Front 103

the ultimate goal of supply chain management is to

Back 103

create value for end customers and firms in the supply chain

Front 104

process integration requires:

Back 104

training, willing and competent partners, trust, organizational culture change

Front 105

8 key SC processes

Back 105

1.customer relationship management

2. customer service management

3. demand management

4. order fulfillment

5. manufacturing and flow management

6. supplier relationship management

7. product development and commercialization

8. returns management

Front 106

"i win you lose", using the cheapest suppliers, ignoring customers, assigning few resources to new product and service design

Back 106

the silo mentality

Front 107

forecasts and their corresponding orders along the supply chain can become amplified and accumulate, causing:

Back 107

the bullwhip effect

Front 108

when demand exceeds availability, supplier provides partial supply to customers who also tend to inflate orders

Back 108

rationing

Front 109

when production capacity equals demand, demand then drops, as the buyers try to unload excess inventories

Back 109

shortage gaming

Front 110

created this to align an organization's performance measures with its strategic plan and goals

Back 110

balanced scorecard

Front 111

BSC consists of 4 perspectives

Back 111

financial, internal business process, customer, learning and growth

Front 112

supply chains that are flexible enough to quickly respond to changes in the marketplace are called demand driven supply networks T or F?

Back 112

TRUE

Front 113

traditional performance measures include

Back 113

cost and revenue

Front 114

supply chain cash to cash cycle time is a performance measure that provides the average number of days between selling the end product to the customer and receiving full payment for the goods. T or F?

Back 114

FALSE

Front 115

which of the following supply chain performance metrics measures the average percentage of orders that arrive on time, complete, and damage free?

Back 115

perfect order fulfillment

Front 116

the initial step in creating an effective performance measurement system is

Back 116

establishing objectives

Front 117

provide managers a way to see real time progress toward organizational milestones and help to ensure that decisions remain in sync with the firms overall strategies

Back 117

dashboards

Front 118

what you want, what external people asses you on

Back 118

output

Front 119

key internal measures required to deliver output

Back 119

in process

Front 120

separates supply chain operations into 5 process categories

Back 120

SCOR model

Front 121

5 process categories of the SCOR model

Back 121

plan, source, make, deliver, return

Front 122

defines the customer part of the SC as the integration of plan, relate, sell, contract, service, and enable processes

Back 122

customer chain operations reference model

Front 123

defines the design portion of the SC as the integration of plan, research, design, integrate, amend, and enable processes

Back 123

design chain operations reference model

Front 124

why are supply chains more global than ever?

Back 124

competitive advantage

Front 125

two components of risk:

Back 125

1. potential losses

2. probability or likelihood of an event leading to those losses

Front 126

the expected outcome of an uncertain event

Back 126

risk

Front 127

risk =

Back 127

probability X consequences

Front 128

supplier failure, inbound product quality, transit time variability, supplier opportunism

Back 128

supply risk

Front 129

demand variability, forecast errors, competitor moves

Back 129

demand risk

Front 130

inventory ownership, asset and tools ownership, product quality and safety

Back 130

operational risk

Front 131

currency, sercurity

Back 131

other risk

Front 132

most significant SC Risk

Back 132

1. quality problems

2. long supply chain- increased inventory

3. natural disasters

Front 133

SC risk of least concern

Back 133

1. terrorism and piracy

2. customs delays

Front 134

top SC risk mitigation strategies

Back 134

1. world class supplier capability

2. working to reduce SC time (cycle time)

3. visibility tools

Front 135

the most popular technique for SC risk mitigation is

Back 135

failure mode and effect analysis (FMEA)

Front 136

looks at seriousness, probability of occurrence, and probability to detect defect

Back 136

FMEA

Front 137

supply chains are _____________ _______________ to disruption due to macro trends and supply chain design

Back 137

increasingly vulnerable

Front 138

the costs of disruption are

Back 138

significant and long term

Front 139

supply chain risk management can be used to

Back 139

identify sources of risk, prioritize identified risks, develop mitigation strategies to reduce, transfer, and or avoid risk

Front 140

this is a core element of supply chain risk mitigation

Back 140

visibility

Front 141

these are the key to early discovery

Back 141

predictive measures

Front 142

this is needed but difficult to perform

Back 142

SC risk management

Front 143

you are done

Back 143

:)