idea of coordinating or integrating a number of product-related activities among supply chain participants to improve operating efficiencies, quality, and customer service in order to gain a sustainable competitive advantage for all of the collaborating organizations.
design, operation, and improvement of production systems that efficiently transform inputs into finished good and services, while maximizing productivity.
coordinated planning and execution of product distribution, transport, warehousing
process of obtaining services, supplies, and equipment in conformance with corporate regulations
Vertical integrated firm
a firm whose business boundaries include one-time suppliers and/or customers
taking over the role of your supplier
taking over the role of companies closer to the customer
general or packaged cargo, typically containerized.
characteristics of both bulk and breakbulk cargo (cars, logs, steel)
use of more than one mode of transport during a single shipment
seamless multimodal shipment - no need to unload container or repackage products
used to fill empty space inside boxes, tubes, etc (packing peanuts, styrofoam)
in contact with the end item (plastic bag, can, bottle, shrink wrap)
contains end item and primary packaging (box, case, drum)
contains several items which are in secondary packaging (crate, pallet, metal straps)
third party logistics company
travel agents for exports
customs house brokers
help items clear foreign customs
What is VMI?
Vendor Managed Inventory - inventory system where supplier accepts negotiated responsibilities that typically include monitoring and restocking
Offshoring and Outsourcing quadrants
customs-trade partnership against terrorism
What is a process?
Any activity or group of activities that takes an input, adds value to it, and provides an output to an internal or external customer. Processes use an organization’s resources to provide definitive results.
What are the characteristics of a good process?
Intentions and parameters were considered
strives for reproducible results
process is measurable and manageable
What are some of the primary considerations that should go into designing a good process?
defined by customers
What are some of the key steps important in building a good process?
create block diagram of system
define the service
consider performance metrics
detail primary process steps
develop process maps
What is the difference between a process map and a block diagram?
Process map only shows what goes on in the process
Block diagram shows what goes on before and after the process happens
What is a scope?
Where the processes begin and end
What is scope inflation?
as you learn more about the process, the scope gets larger - it becomes too much.
How are functional flowcharts different from basic flow charts?
Shows which stakeholder is responsible for each step
What are the different reasons poor processes exist?
Cow path theory - Development of poor processes
Lack of appropriate tools
Why is an understanding of business process improvement important to professional careers?
Resume builder: little stories about your career
Corporate politics - leverage and capital
What are things GOOD consultants do?
Give good advice
Understand group/team dynamics (culture)
Understand business imperatives
What are some of the keys to Business Process Improvement?
Desired state (objectives, goals, metrics)
Present state (data collection)
Develop project scope
Collection and analysis
Develop solutions and recommendations
Develop an implementation plan
What is the seven step process for selling your recommendations?
What does the client want?
Do all stakeholders benefit?
How difficult will the transition be?
More value, less work?
Worth the pain of change?
What is the situation now vs desired?
Step by step hand holding
What are the primary reasons people utilize metrics?
What is a performance metric?
Single measurement used to evaluate, motivate, improve
What’s the difference between a single metric and a system of metrics?
Collection of measurements used to evaluate a process, person, company from multiple perspectives
What are some of the consequences of utilizing a poor system of metrics?
What are the required characteristics of a good metric?
What does a good system of metrics measure?
What are some keys to developing a good system of metrics?
Have a plan
Remember the basics
Keep it simple
Why is leadership important in rolling out a new system of metrics?
If leaders aren’t interested, no one else will be
What does it mean if you have a redundant system of metrics?
Certain things are double counted
What is an Executive dashboard?
Gives executives a “snap shot” of key organizational process and system metrics
Why are executive dashboards useful tools in today’s business environment?
Manage performance measurement data and allow users to “drill down” to see more details
Help isolate problem areas and causes
What are the 4 perspectives of the balanced scorecard?
day-to-day operations management
What is the SCOR model?
Links sourcing needs of buyer with delivery operations of the seller
What are the 5 categories of the SCOR model?
What are some of the potential ingredients in a customer’s quality definition?
What are some key difference between product industries and service industries?
Tangible vs intangible
Services cannot be inventoried
Location and hours of operation can be very important
Services are usually produced and received simultaneously
Services are highly visible
Some services have very low barriers to entry/exit
What are the benefits of ISO 9000 certification?
How does a company become ISO 9000 certified?
Requires that you document your processes and employees
Malcolm Baldrige award
National quality award in America
Quality award in Japan
What is TQM?
Total quality management
management approach for an organization, centered on quality, aiming at long-term success through customer satisfaction