MGT295 Exam 1

Supply Chain Management (SCM)

A set of three or more entities (organizations or individuals) directly involved the upstream and downstream flows of products, services, finances, and/or information from a source to a customer

bullwhip effect

the distortion of demand due to poor information flow

Heterogeneity

each unit of service is difference based on the input of the customer

Simultaneity

the production and consumption of the service happen at the same time

Perishability

the time-sensitivity of service capacity, in that the value of the service refers to the “value in use”

Customer Involvement

customers provide significant input to the production of the service

Intangibility

the service may or may not be perceived by the senses

Operations management

“the black box” activities you do to turn inputs into outputs

Inputs

tangible or intangible materials used to create an output (paints, ingredients, tools, time)

Outputs

products or services (dog house, dinner)

Consumer Society and Scale Economies

Industrial Revolution ~300 years ago, not very efficient, anything prior was even more limited

The Scientific Method

~early 1900s, assembly line was built using the scientific method by Ford, Major problem- producing for the sake of producing, not listening to demands

Lean six sigma

started with Toyota, waste reduction, quality improvement

The Service Economy

~early 2000s, renting, uber, reliance on service

Supply Chain Operations Reference (SCOR) Model

benchmarks key value activities to implement a plan

Supply Chain

a set of 3 or more entities (orgs or individuals) directly involved in the upstream and downstream flows of products, services, finances, and/or information from a source to a customer

Supply chain management

collaborative process management to meet the needs of the end customer profitability

Internal Value Chain

includes all the value creating activities within that specific firm

Linked Value Chains

Collaborating across entities & their function to provide value for all entities involved

Environmental scanning

seeking, acquitting, using information

Passive Scanning

take stock of the available information, used to identify internal strengths and weaknesses

Proactive Scanning

research customer data surveys, info in which your company operates

Customer value

A multidimensional phenomenon considered as the trade-off between benefits and sacrifices that stem from a provider’s product and service offerings

Form utility

acquire inputs and transform them into productions

Possessions Utility

communicate product’s value and facilitate the exchange process (where you can find the product AKA distribution channels)

Time utility

influence when a product is available for purchase (customers can find a product when they want it)

Place utility

make sure products and services are where customers expect to find them

Innovation

a new product or process

delivery

providing the product/service fast and consistently

Quality

meeting customers’ expectations or standards

Cost

total landed cost for the customer (the price of the product or service)

Agility

respond quickly to customer requests

Process improvement

the practice of finding better ways to add value

Automation

the practice of substituting capital equipment for labor to improve process efficiency and effectiveness

Offshoring

the practice of moving domestic operations such as manufacturing to another country

Outsourcing

the practice of utilizing a third party to perform a noncore service previously performed in-house

Noncore service

not the goal of the business

Order qualifier

a product characteristic that is required for a customer to consider your product

Order winner

a product characteristic that makes your product attractive

Order loser

a product characteristic that disqualifies your product from purchase consideration

Customer expectations

an individual’s expectations correspond to the subjective probability or beliefs relative to the attributes of service before the experience

Customer service

focus on what the firm can do

Customer satisfaction

focus on understanding what the customer views as important

Customer success

focus is on helping customers succeed

Scorecards

A strategic planning and management system that takes a holistic approach to measurement and create a complete picture of how the supply chain is performing

Competitive benchmarking

benchmarking evaluating compared to other companies within your industry

Non-competitive benchmarking

benchmarking (ikea vs car manufacturers)

Internal benchmarking

benchmarking (coca cola US vs Coca cola Germany)

Total cost of ownership

Acquisition cost + NPV (Ownership costs + Disposal / Scrap Costs)