SCM300 Final

  1. Supply chain management
    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.
  2. Operations Management
    design, operation, and improvement of production systems that efficiently transform inputs into finished good and services, while maximizing productivity.
  3. Logistics
    coordinated planning and execution of product distribution, transport, warehousing
  4. Procurement
    process of obtaining services, supplies, and equipment in conformance with corporate regulations
  5. Vertical integrated firm
    a firm whose business boundaries include one-time suppliers and/or customers
  6. Backward integration
    taking over the role of your supplier
  7. Forward integration
    taking over the role of companies closer to the customer
  8. bulk cargo
    free flowing, stored loose (coal, grain, rice, oil)
  9. breakbulk cargo
    general or packaged cargo, typically containerized.
  10. neo-bulk cargo
    characteristics of both bulk and breakbulk cargo (cars, logs, steel)
  11. mulitmodal
    use of more than one mode of transport during a single shipment
  12. intermodal
    seamless multimodal shipment - no need to unload container or repackage products
  13. dunnage
    used to fill empty space inside boxes, tubes, etc (packing peanuts, styrofoam)
  14. primary packaging
    in contact with the end item (plastic bag, can, bottle, shrink wrap)
  15. secondary packaging
    contains end item and primary packaging (box, case, drum)
  16. tertiary packaging
    contains several items which are in secondary packaging (crate, pallet, metal straps)
  17. 3PLs
    third party logistics company
  18. freight forwarders
    travel agents for exports
  19. customs house brokers
    help items clear foreign customs
  20. What is VMI?
    Vendor Managed Inventory - inventory system where supplier accepts negotiated responsibilities that typically include monitoring and restocking
  21. Offshoring and Outsourcing quadrants
    Image Upload 1
  22. C-TPAT
    customs-trade partnership against terrorism
  23. 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.
  24. What are the characteristics of a good process?
    • Intentions and parameters were considered
    • strives for reproducible results
    • process is measurable and manageable
  25. What are some of the primary considerations that should go into designing a good process?
    • Value
    • defined by customers
    • corporate considerations
    • operational concerns
  26. What are some of the key steps important in building a good process?
    • Identify objectives
    • create block diagram of system
    • define scope
    • define the service
    • consider performance metrics
    • detail primary process steps
    • develop process maps
    • evaluate
  27. 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
  28. What is a scope?
    Where the processes begin and end
  29. What is scope inflation?
    as you learn more about the process, the scope gets larger - it becomes too much.
  30. How are functional flowcharts different from basic flow charts?
    Shows which stakeholder is responsible for each step
  31. What are the different reasons poor processes exist?
    • Misalignment
    • Ambiguity
    • Market evolution
    • Cow path theory - Development of poor processes
    • Miscommunication
    • Lack of appropriate tools
  32. Why is an understanding of business process improvement important to professional careers?
    • Resume builder: little stories about your career
    • Corporate politics - leverage and capital
  33. What are things GOOD consultants do?
    • Get feedback
    • Give good advice
    • Collect data
    • Understand group/team dynamics (culture)
    • Understand business imperatives
  34. What are some of the keys to Business Process Improvement?
    • Desired state (objectives, goals, metrics)
    • Present state (data collection)
    • Gap analysis
    • Develop project scope
    • Collection and analysis
    • Develop solutions and recommendations
    • Develop an implementation plan
  35. 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
  36. What are the primary reasons people utilize metrics?
    • Motivation
    • improvement
    • statistical reference
    • promotion
    • termination
  37. What is a performance metric?
    Single measurement used to evaluate, motivate, improve
  38. 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
  39. What are some of the consequences of utilizing a poor system of metrics?
    • Waste
    • defects
    • inefficient systems
    • Poor outcomes
    • Low morale
  40. What are the required characteristics of a good metric?
    • Measurable
    • Easily understood
    • Attainable
  41. What does a good system of metrics measure?
    • Effectiveness
    • Efficiency
    • Adaptability
  42. What are some keys to developing a good system of metrics?
    • Have a plan
    • Remember the basics
    • Complete picture
    • Continuous improvement
    • Keep it simple
    • Redundancy
    • Leadership
  43. Why is leadership important in rolling out a new system of metrics?
    If leaders aren’t interested, no one else will be
  44. What does it mean if you have a redundant system of metrics?
    Certain things are double counted
  45. What is an Executive dashboard?
    Gives executives a “snap shot” of key organizational process and system metrics
  46. 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
  47. What are the 4 perspectives of the balanced scorecard?
    • Aligns vision
    • mission
    • customer expectations
    • day-to-day operations management
  48. What is the SCOR model?
    Links sourcing needs of buyer with delivery operations of the seller
  49. What are the 5 categories of the SCOR model?
    • Plan
    • source
    • make
    • deliver
    • return
  50. What are some of the potential ingredients in a customer’s quality definition?
    • Performance
    • Reliability
    • Durability
    • Features
    • Aesthetics
    • Serviceability
    • Service Response
  51. 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
  52. What are the benefits of ISO 9000 certification?
    • International certification
    • recognized world-wide
  53. How does a company become ISO 9000 certified?
    Requires that you document your processes and employees
  54. Malcolm Baldrige award
    National quality award in America
  55. Deming prize
    Quality award in Japan
  56. What is TQM?
    • Total quality management
    • management approach for an organization, centered on quality, aiming at long-term success through customer satisfaction
  57. What are the three TQM principles?
    • Customer (needs of today, desires for tomorrow)
    • Involvement (communication, learning, teams, training)
    • Continuous improvement culture
  58. What are some of the keys to successful benchmarking?
    • Identify process
    • Identify leaders
    • Contact leaders or plan internally
    • Analyze, act, follow-up
  59. What are the different types of benchmarking?
    • Competitive
    • Functional
    • Internal
  60. What are the basics of the Six Sigma program?
    • Defect elimination
    • Black belt program
    • Training
    • Incentives
  61. DMAIC
    • (used for existing processes)
    • Design
    • measure
    • analyze
    • improve
    • control
  62. DMADV
    • (used in designing NEW processes)
    • Design
    • measure
    • analyze
    • design
    • verify
  63. What’s the difference between true six sigma and Motorola Six Sigma?
    • Doesn’t have the curve of a true 6 sigma - they just want the curve of a 6 sigma
    • Motorola is more like 4.5 sigma
  64. Cause and effect diagram
    brainstorming tool
  65. Scatter diagram
    establishes correlation between two sets of data
  66. Pareto charts
    Qualitative bar graphs
  67. Histograms
    Quantitative bar graphs
  68. Flow charts
    tools for designing and documenting processes
  69. What are the 4 costs of quality? (COQ)
    • internal failure costs
    • external failure costs
    • appraisal costs
    • prevention costs
  70. Internal failure costs
    costs related to fixing or throwing out defects
  71. external failure costs
    costs associated with “repairing” damage caused from delivering substandard items or services
  72. appraisal costs
    Costs associated with finding causes of quality deficiencies
  73. prevention costs
    Costs related to reducing potential for quality problems
  74. What are the requirements and goals of Business IT systems?
    • Collect data from everyone
    • Make data accessible to everyone
    • Turn your data into information
  75. What are the requirements and goals of SCM IT systems?
    • Collect and store data
    • Communication
    • Aid in planning and analysis
    • Aid in execution
    • Support other functions
    • Facilitate supply chain compression
  76. Supply chain compression
    decreasing the length of the supply chain pipeline
  77. What is ERP and what does it do
    • collects and stores data for analysis, forecasts
    • ALL business functions see/share same data - fast, immediate
  78. What is the role of software?
    • Turn your data into information
    • Aid in knowledge creation
  79. What are your options in terms of “Who do we buy from?”
    • Single vendor approach
    • Best of breed
  80. What are some important things to consider before purchasing a new IT system?
    • Standard or customized system
    • Modules, support, upkeep, upgrades
  81. What is included in the total cost of an IT system and implementation?
    • Legacy systems
    • Data conversion
    • Integration and connectivity
    • Implementation (Culture, learning, productivity concerns, relationships, testing)
  82. What are some important things that must be considered before implementing a new IT system?
    • Who do I buy from
    • buy or lease
    • off the shelf or customized
  83. RFID benefits
    • data
    • tracking
    • analysis
  84. RFID issues
    • cost
    • compatibility
    • security
  85. What is required from a supply chain to roll-out an RFID program?
    • Integration tools (ERP)
    • Local infrastructure (servers and software)
    • RF readers (handheld scanners, portable readers, shelf-based readers)
    • RF tags (Individual products, boxes, pallets, trucks)
  86. What is RFA? What do they hope RFA will do?
    • Radio Frequency Activation
    • Retail applications - registers, shelves, replenishment
    • Inventory tracking
    • Theft management
Card Set
SCM300 Final
SCM300 FInal