Key Concepts in Supply Chain Management and Quality Control

Chief objective of supply chain

achieve and sustain competitive advantage in the market

SCOR-DS model

is it a diagram that identifies the organizations upstream and downstream in the supply chain FALSE

Flexibility

reconfiguring systems rapidly to manage change

Supply chain consists of 3 parts

sourcing, operations, logistics

Who developed the value chain model?

MICHAEL PORTER

3 benefits of flexible supply chain

Protection against threats, Ability to adapt quickly, Process simplification

Business process

is a structured set of activities designed to produce a specific output

Business process management steps

Design, execute, optimize, monitor

Benefit of using business process management

Increase value added time

Productivity

is expressed as OUTPUT DIVIDED BY INPUT

Definition of benchmarking

compares with not only competitors and similar organizations but also those in a different business

Benchmarking process

Gathering and comparing qualitative and quantitative information about how a process is conducted

Analyzing performance gaps

Analyzing where and how performance gaps occur

Identifying best practices

Identifying best practices

Providing insights into best practices

Providing insights into how the organization can apply best practices to other areas

Make to stock

offers little or no customization, essentially a push manufacturing strategy, takes advantage of economies of scale and process efficiency, relatively heavy inventory investment on finished goods

Make to order

products are greatly customized, a pull manufacturing strategy inventory concentrates in raw materials not finished products, order lead time tends to be long, production process efficiency tends to be low

Assemble to order

a hybrid between MTS and MTO, attempts to get products into customers' hands quickly while allowing for the product to be customized in creating ways, inventory concentrated in work-in-process inventory

Total quality management (TQM)

is a management philosophy characterized by customer driven quality

Quality guru best known for contributions to the quality of 14 points of management

DEMING

TQM components of customer driven quality

is defined in 2 types - internal, external

Garvin's approaches to defining quality

Transcendent - quality is absolute and universally recognizable through experience but lacking a clear definition, Product-based - quality is precise and measurable and reflect differences in product attributes, User-based - quality is defined by the user based on satisfaction of individual subjective wants and needs, Manufacturing-based - quality is defined by conformance to the product design through a set of specifications, Value-based - quality provides performance at an acceptable price or conformance at an acceptable cost

ISO 9000

Main purpose of developing ISO 9000 - create benchmarks

Pareto diagram

Illustrates frequency of occurrence when multiple product defects are studied

Supply chain and logistics strategy

One of the functional strategies developed by a firm outlining the plan of action

Logistics in supply chain strategy

While logistics is a part of supply chain strategy, it does not seek enhancing value creation to customers? FALSE

Sourcing

Includes a set of business processes that are directly required to manufacturing products or producing services? FALSE

Strategic supply chain management

Seeks using supply chain as a means to gain competitive advantage in the marketplace? TRUE

Reshoring or nearshoring reasons

Common reasons attributed to the emergence include cut transportation and inventory costs, shorten lead times, mitigate supply chain, all of the above

Facility location criteria

Not a criterion for choosing a facility location? Proximity to markets, resource availability, business environment, all of the above

Outsourcing reasons

Reasons companies might outsource - improve efficiency

Value stream mapping advantages

Can be done quickly, only requires one person FALSE

Muda

Japanese word for human activity that utilizes resources and creates no value.

Process mapping steps

3 steps of process mapping - process identification, interviewing and mapping, analysis

Kanban system

Form of inventory control

Lean tool examples

Histogram, control chart, cause and effect diagram

Priority in production

Needs to be thought of as relating to what products are needed, how many are needed, and when they are needed - priority is in essence demand

Sales and operations planning

Aligns forecasted demand, supply, and financial planning

Product structure tree

Another form for product structure tree - bill of material

Product life cycle

The length of time from a product's introduction to the market until its removal from the market, defined by four stages: introduction, growth, maturity, and decline

Product development process

Begins with IDENTIFICATION OF PRODUCT OPPORTUNITIES

Integrative product development

8 steps in product development process are referred to as integrative product development FALSE

Phases of integrated product development

4 phases of integrated product development - design, production planning, manufacture, testing

Forecasting approaches

Companies use only one forecasting approach - FALSE

Seasonality

Always of a fixed and known frequency - FALSE

Cycle

Rise and fall movement that are not of a fixed period, usually over a time span that is more than a year.

Quantitative forecasting during COVID

When covid hit, it is reasonable to assume that companies used quantitative forecasting - not a clue

Project

Temporary endeavor undertaken to create a unique product, service, or result

Project critical path

Computation technique for determining the project duration and the critical activities of the project; may be more than one critical path in a network

Definition phase of a project

Initiates the project, lays out major goals, objectives and specifications for the project, staffing starts, resources are estimated against resource availability, and teams are conceptualized at a high level