SCM 300 Davilla Exam 3 ASU

THINGS WE TALKED ABOUT IN CLASS

- pizza

- cow path

- silicon wafers

- ticket broker

- your resume (little stories)

- "don't be a jerk"

- real estate, show them what is available

- Health, physician's advice

- GPA, he doesn't like it

- Basketball

- how should we create grades

- anesthesiology

- motorola six sigma

- whirlpool it upgrade

Business Process

- any activity that takes an input, adds value, and provides an output

- a cell of the supply chain

- "recipe"

- make it as detailed as possible so there is nothing that can be unclear

Things to think about with changing business processes

- who will it affect

- how will it affect them

- will the customers dislike the change?

Good intentions

- goal oriented

- stakeholders considered

- outputs are desired

Reproducible Results

- Documented and easily understood; adaptable

Measurable and manageable

- Entire system considered

- easy to identify problems

- accountability, good metrics

Bad Business Processes

- ambiguity

- Misalignment

- misscommunication

Ambiguity

- goals are not clearly understood

- laziness, hubris, lack of info

Misalignment

- goals and actions not in alignment

Miscommunication

- employees do not understood goals, processes

Operational Considerations

- Testing

- potential failure points in process

- server capacity

Departmental Concerns

Marketing - Customer, suppliers, product line, forecasting

Finance - prj feasibility, ROI

Accounting & IT - cost and Data mgt

Automation benefits

- lower cycle time

- checks and balances

- anonymity

Being a good consultant

- Data collection/Analysis

- Be Creative

- Have a long-term view

- Understand group/team dynamics

- Understand Business Imperatives

- Develop solutions and reccomendations

Embrace the repugnant

Try the most horrible thing first

Recommendations: prepare to Sell

1. List value

2. Basic Solutions and anticipated benefits

3. Cost-Benefit Analysis

4. Value to work Ratio (to achieve)

5. Does it fit the system

Performance measurement

- Measure employee performance for the purpose of motivation, improvement, stat reference, promo, termination

Metric

- A single performance measurement

KPI

Key performance Indicator - the metrics thought to be most important indicators of success.

Types of behaviors

- what types of outcomes are desired

Prescriptive metrics

- how do you fix the problem

creating opportunities for failure

- helps people do risky things to get better

Good metrics must be

- Measurable

- Easily understood

- Attainable

Measurable

- ability to measure outcome using a sound numeric metric

Easily understood

- Do stakeholders see the connection between the metric, outcome, desired behaviors

Attainable

- Do the stakeholders feel they can achieve the goals or be successful as defined./measured by the metric

Good metrics logistics

- strategically oriented - align wiht goals

- Ease of measurement - not hard to implement

System of metrics must measure

- effectiveness - right output at right price and place

- efficiency

- adaptability

Best metrics

1. Make the list of goals

2. list your metrics

2.5 ...

3. Identify redundancies

SCOR Model

Supply Chain Operations Reference Model - Plan, source, make, deliver

- method for integrating SC and measuring trade partner performance

Dimensions of Quality: Product

- Serviceability

- Service Response

- Performance

-Reliability

-durability

-features

-aesthetics

-brand reputation

Dimension of quality: Service

- time

- timely

- complete

- accurate

- responsive

- courtesy

- consistent

- accessible

- convenient

ISO 9000

- "qualtiy certification"

- International standards organization cert

-

Malcolm Baldridge National Quality Award

- US Quality Award

- Lots of criteria

- Leadership strategy, customer service, IT, etc

- TQM

Deming Prize

- Japanese Quality Award

TQM

- Total Quality Management

1. Customer is always important

2. Involvement: Internal/External Employees

3. Continuous Improvement Culture

Types of benchmarking

- Competitive

- Functional

- Internal

Six sigma

- the elimination of defects

1. defect elimination

2. program basics

3. key methodologies

- DMAIC - used for existing processes

- DMADV - design NEW process

5 Step Sigma Process

•Define problem

•Measure the performance of the process

•Analyze the data measured in an effort to find a root cause

•Control the process. Monitor progress and measure levels of improvement

Single vendor approach

- buy everything from one supplier (Oracle)

Best of Breed Approach

- get the best from each place - tons of consultants, doesn't work together well

SCM IT Cosiderations

Purchase - from who, buy/lease,

Implementation - System, people, business proc, testing

Future - upgrades, changes, evolvment

"So what did I buy?"

top = no

bottom = yes

RFID

Radio Frequency ID

Dimensions of service quality

•Time

•TImely

•Compete

•Accurate

•Responsive

•Courtesy

•Consistent

•Accessible

•Convenient

Dimensions of product quality

•Performance

•Reliability

•Durability

•Aesthetics

•Features

•Reputation/Brand

•Service Response

•Serviceability

•Maintenance and Repair

Costs of Quality

•Internal failure costs

•External failure costs

•Appraisal Costs

•Prevention Costs

Internal failure costs

•A cost of quality

•Problem found and fixed within the supply chain

•The customer never sees the problem

External failure costs

•A cost of quality

•Problems that reached the customer

•Have the highest potential for loss

Appraisal Costs

•A cost of quality

•Costs associated with monitoring quality in stable systems or the costs of researching when systems are producing sub-standard quality

Prevention Costs

•A cost of quality

•Costs associated with fixing present problems and preventing future problems.

Quality Gurus

•W. Edwards Deming

•Joseph Juran

•Phillip Crosby

W. Edwards Deming

- continuous improvement

- 14 points

Joseph Juran

Phillip Crosby

- Quality trilogy

- planing

- improvement

- control

Calculating reliability

(Reliability of component 1) (Reliability of component 2) (Reliability of component 3)*...(Reliability of component n)

Reliability (Product) = r(1) r(2) r(3) *...r(n)

Quality tools

•Cause-and Effect Diagrams (Fishbone Charts)

•Scatter Diagrams

•Pareto Charts

•Histograms

•Flowcharts (Process Maps)

•Control charts

3 Types of Bench Marking

•Competitive

•Functional

•Internal

SMART Metrics

A metric that is

Specific

Measurable

Attainable

Relevant

Timely

Executive Dashboard

- computer representation of data to info

- A computer-generated visual representation of a company's performance that is often available to executives on nearly any of their digital devices

Managerial paralysis

A situation where managers are inundated with data. This overflow of data actually slows decision-making and may even result in managers stalling or avoiding decision-making

Cash to Cash Cycle

- Number of days between firm paying supplier, and customer paying firm

Capacity Utilization

amount of product produced by a manufacturing process:the maximum capacity of that facility.

Process Velocity

how long a unit sits in a process:the amount of work time spent on the unit.

Perfect Order Fulfillment

The percentage of orders that are full, arrive on time, and are damage free.

Supply chain compression

- Indication and elimination of non-value-added steps in SC

Outcomes: better SC / savings

Internal SCM

A term that refers to the information flows between higher and lower levels of planning and control systems within an organization

SRM

Supplier Relationship Managment