MSU Logistics Final (Frank Adams)

Internet of Things

Controls devices and monitors demand forecasting.

SCOR Model

Plan - Source - Make - Deliver - Return; Describes company actions and their linkages.

Service Operations

Characterized by services that can't be shipped or inventoried and have hard-to-control delivery.

Supply Chain Tiers

Upstream, Focal Firm, Downstream; Imply multiple firms cooperating for efficiency and quality.

Value Chains

Linked sets of value chains between cooperating companies.

Four Utilities

Form, Possession, Time, and Place utilities in the value creation process.

Pareto Principle

States that not all customers are equal, and roughly 80% of effects come from 20% of causes.

Offshoring vs. Outsourcing

Distinct concepts in business operations.

Techniques for Understanding Customers

Surveys, focus groups, expert panels, in-depth interviews, shadowing, and ethnographic studies.

Balanced Scorecard

Translates vision into actionable behavior, communicates vision, and imposes discipline.

Theory of Constraints

Involves identifying, exploiting, subordinating, elevating, and repeating steps to improve processes.

Process Bottlenecks

Slowest steps in a process that reduce throughput.

Lean

Focuses on creating value for the customer while eliminating waste.

Muda

Refers to any activity that consumes resources without creating value.

Mura

Wasteful inconsistency, occurring when processes are not standardized.

Poka-yoke

'Mistake-proofing' designed to prevent errors.

Economic Order Quantity (EOQ)

Formula in inventory management to determine the optimal order quantity that minimizes total inventory cost.

Fixed Order Quantity

An inventory management technique where a set quantity of items is ordered each time.

Master Production Schedule (MPS)

A detailed plan outlining what a company plans to produce and when.

Lot for Lot

An inventory ordering technique where the exact quantity required for each period is ordered.

Continuous Flow

The highest volume and lowest variety production method.

Quality Dimensions of Service

Factors influencing customer perceptions of service quality: reliability, responsiveness, assurance, empathy, tangibles.

The Square Root Rule

Suggests the number of inventory locations should increase by the square root of the increase in demand.

Backwards Scheduling

Planning when to start tasks to meet a specific delivery date.

Changeover Time

The time it takes to switch production from one product to another.

Kanban

A visual signal used to communicate production needs between stages in a system.

Poka-yoke

Technique for designing processes or tools to prevent errors.

Chase Strategy

Adjusting production rate to meet changes in customer demand.

Level Strategy

Producing the same amount of goods consistently, regardless of demand fluctuations.

Random Demand

Unpredictable spikes or drops caused by unforeseen factors.

Benchmarking

A method for comparing business processes and performance metrics to industry bests.

Six Sigma

A data-driven methodology aimed at improving processes and reducing defects.

DMAIC Approach

Define, Measure, Analyze, Improve, Control; structured problem-solving in Six Sigma.

Coordination

Aligning and integrating activities across all participants in the supply chain.

Resource Chasers

Supply chains that prioritize proximity to critical resources over market proximity.

Market Chasers

Supply chains designed to be close to consumer markets to respond quickly to demand changes.