Supply Chain and Quality Management Lecture Notes

Comprehensive practice flashcards covering Supply Chain Management flows and strategies, Quality Management tools, Organizational theories, and Digitalization concepts derived from the lecture notes.

Physical flow

The downstream movement of goods: Suppliers → Shipping → Production → Distribution → (retailers) → Clients.

Information flow

The 'brain' that operates on the physical flow, involving strategy, logistics providers, databases, business intelligence, performance indicators, and previsions.

Financial flow

The upstream movement linked to procurement strategy, currency management, and trade finance.

The 4 missions of the Supply Chain

Reduce working capital (inventory), provide Customer service, Cost reduction, and make the supply chain green.

Push system

A strategy where production and distribution are based on demand forecasts, with goods produced in advance and stored.

Pull system

A strategy where production is driven by actual customer demand; goods are only produced when an order is received.

Make-to-Stock (MTS)

A production situation where items are produced before an order is received; characterized as a full push system.

Assemble-to-Order (ATO)

A situation where parts are ready but only assembled after the order is received; follows a push then pull dynamic.

Make-to-Order (MTO)

A production situation where items are produced only after an order is received; characterized as a pull system.

Engineer-to-Order / Project

A total pull situation where the product is both designed and produced after the order is received.

The Bullwhip Effect

A phenomenon where a small variation in consumer demand creates increasingly large amplifications of orders upstream in the chain.

Just-in-Time (JIT)

A system based on the equation $\text{Demand} = \text{Production}$, producing only what is needed, when needed, in exact quantity.

Lean Production

A philosophy focused on the elimination of all waste (MUDA), or anything that does not create value for the client.

Pareto Law (80/20)

The rule stating that $20\%$ of causes lead to $80\%$ of effects, such as $20\%$ of items accounting for $80\%$ of stock value.

ABC Method - Category A

Critical items representing about $80\%$ of value and $15\%$ of items; managed daily with strong supplier relationships.

ABC Method - Category B

Moderate priority items representing about $15\%$ of value and $30\%$ of items; managed monthly.

ABC Method - Category C

Low priority items representing about $5\%$ of value and $55\%$ of items; managed yearly.

Standard Trade-off Constraints

The three strategic constraints that must be balanced: Cost, Quality, and Delivery.

FIFO

First In, First Out; a queuing principle where the first customer or item to enter is the first to be served/processed.

Streamlining

The trimming of waste and excess to provide the smoothest flow and least resistance with minimum effort.

Core (operational) processes

Processes that directly create value for the client with immediate impact on performance, such as producing, delivering, or selling.

Support processes

Processes invisible to the client that help core processes run smoothly, such as HR, Finance, IT, and Maintenance.

Management processes

Processes that guide the company long-term and determine strategy, such as budgeting and objective setting.

PDCA (Deming Wheel)

A continuous improvement loop consisting of Plan (define), Do (implement), Check (measure), and Act (correct).

Satisfaction

The gap between expected quality and perceived quality.

Quality Assurance

Pre-established systematic activities implemented to create confidence that quality requirements will be met.

ISO 9001

The international standard for quality management systems, valid for $3$ years.

Sun-type Organization

A personalized organization where a leader is at the center, communication is only between leader and individuals, and there is no autonomy.

Orange Model (Laloux)

An achievement-based model focused on beating competition and maximizing profit through innovation and management by objectives.

Teal Model (Laloux)

An evolutionary model where self-management replaces hierarchy and authority is distributed by roles rather than functions.

Technostructure (Mintzberg)

The component of the organization consisting of planners, analysts, and those responsible for methods and procedures.

Span of control

The optimal number of direct reports for a manager, typically between $5$ and $6$.

Burn-out

A syndrome resulting from chronic workplace stress, characterized by intense fatigue, loss of control, and inability to achieve results.

Mobbing

Repeated and intentional behavior aimed at destroying someone's dignity; distinguished from simple conflict by its repetitive and destructive nature.

AIC Triad

The trio of cybersecurity objectives: Availability (access), Integrity (accuracy), and Confidentiality (authorized access).

Unified Communication (UC)

The combination of multiple communication channels like email, video, and voice into a single streamlined interface.