International Logistics Exam 1 (Mississippi State)

Control Decisions

-Day-to-day decisions you make that define how you make things.

-Have the materials that you need, move them through the production process, and ensure that your transformation processes deliver exceptional quality

-Forecasting, inventory, scheduling, quality control

Design decisions

-Determine where and how you deploy your assets (plant and equipment) to create over the long haul

-These are resource-intensive, hard to change in the short term, and have a long-term impact on your firm's competitiveness

-Carefully make these decisions

-Product and process design, facility layout, facility location

Product operations

create tangible, storable goods (inventory), and consumption typically follows production.

Service operations

create intangible outputs, often involve direct customer interaction, and are consumed simultaneously with production.

Model of operations

A conceptual model where various inputs (materials, labor, capital, information) are transformed through a process (operations) into desired outputs (goods or services).

Internet of Things

A network of physical objects ("things") embedded with sensors, software, and other technologies for the purpose of connecting and exchanging data with other devices and systems over the internet.

Open systems models

A view of an organization or operation that emphasizes its continuous interaction with its external environment (suppliers, customers, competitors, government, etc.). It is constantly receiving feedback and adapting.

SCOR Model

(Supply Chain Operations Reference Model)

-a tool that benchmarks best practices across a company's core added value activities, which includes sources, operations, logistics, and product return

The 4 utilities

1. Form

2. possession

3. time

4. place

Supply chain tiers

A method of classifying a company's suppliers based on their proximity to the final manufacturing or assembly process.

A Tier 1 Supplier provides directly to the manufacturer (e.g., an engine builder for a car company).

Tier 2 Supplier provides materials or components to the Tier 1 Supplier (e.g., a producer of pistons to the engine builder).

Customer service

meet/exceed industry standards (inward looking)

Customer satisfaction

meet/exceed customer expectations (outward looking)

Customer success

Helps meet customer needs (forward-looking)

5 dimensions of value

Cost (or Price)

Quality

Delivery (or Time)

Agility (or Flexibility)

Innovation.

8 Factors of Quality

Perfomance

Features

Reliablity

Conformance

Durability

Serviceablility

Aesthetics

Perceived quality

Performance

product's primary operating characteristics

Features

characteristics that distinguish a product from a rival's product

Reliability

ability to count on the product not to fail

Conformance

how well a product conforms to design specifications

Durability

Life expectancy- also means the time between failures

Serviceability

the speed and ease of repair when problems occur

Aesthetics

perceptions of fit and finish, also artistic value

Perceived quality

product or brand's quality reputation

Offshoring

moving production from a domestic location to another country, either your own or a supplier's

Outsourcing

moving from make to buy, asking a supply chain partner to perform a specific task that the company itself used to do

order winner

characteristic that makes your product attractive, it differentiates your product in a way that leads a customer to want to buy it

order qualifier

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

order disqualifier

A product characteristic that disqualifies your product from purchase consideration

pareto analyses

A technique stating that roughly 80% of effects come from 20% of the causes. Used to prioritize efforts in quality management, inventory, and sales.

-EX: Identifying the 20% of customers who generate 80% of sales to focus resources on retaining them.

The balanced scorecard

developed to help companies avoid the counterproductive decisions that emerged from too much emphasis on short-term and financially oriented measures

A well-designed scorecard should consist of

20-25 distinctive measures

Fundamental questions of the balanced scorecard

What are our goals?

What skills do we need?

What metrics do we need?

Key benefits of the balanced scorecard

-communicates the top manager's vision

-promotes future capability development

-imposes discipline

-links behavior to strategy

Critical Success Factors (CSFs)

are the few key areas where a company must perform well to achieve its mission.

Key Success Indicators (KSIs)

are the metrics used to measure the achievement of the CSFs

Benchmarking

formal process of comparing the practices of one organization to those of another

Types- competitive, non-competitive, internal

Benchmarking process

- define your goal

- document BIC Practice

- develop an Implementation Strategy

Benchmarking pitfalls to avoid

-don't live in the past

-ignorance isn't bliss

-2nd place shouldn't be the goal

total costing

The total cost of a product once it has arrived at the buyer's or final destination, including: the original purchase price, transportation fees, customs duties, insurance, and other charges.

Bottlenecks

constraints that affect your operations

physical bottlenecks

The number of loading doors in a distribution center constrains how many trucks can be unloaded in a day

policy bottlenecks

Company policies may limit how quickly customer complaints can be resolved.

partner bottlenecks

The amount of raw material available at suppliers may hinder your ability to increase production.

Process mapping

each symbol denotes that something has changed

Basic steps of process mapping

1. define the process

2. identify the trigger

3. identify key activities

4. show flows

5. define the ending point

You need process maps for decision-making

-to give everyone a better understanding of the process

-to ask questions

-to share ideas that help solve problems

-to get a better solution

double arrow

arrival into process

single arrow

process direction flow

oval

Input to start/output at the end

triangle

indicates waiting

rectangle

activity performed in process

diamond

yes and no questions

asked/decision required

Project Types (The Product Process Matrix)

A framework that links the volume and variety of products a firm produces to the type of process it uses.

Key types include:

Job Shop (high variety, low volume)

Batch (moderate variety/volume)

Assembly Line (low variety, high volume)

Continuous Flow (very low variety, very high volume).

The Barefoot wine example

The importance of building a brand and distribution strategy that focuses on simplicity and velocity through the supply chain. Barefoot's success came from focusing on a low-cost, high-volume model with limited product complexity and wide distribution.

Types of warehouses

warehouse- a generic term for a facility where product is stored

distribution center (DC)- combine inventory from multiple locations to mix and match to fulfill customers orders

cross-dock- receive incoming products and unload and reload on a waiting trailer , mixed with other products for shipment

breakbulk- warehouse receives large-volume truckload (TL) shipments that are destined for several customers.

What do supply chains do?

balance accessibility and affordability

throughput accounting

rate at which the entire organization generates money through sales for a product or service

Accessibility

The ability to easily obtain a service or reach a facility, often relating to geographical location or ease of use (e.g., website accessibility).

Theory of constraints--5 steps

identify

exploit

subordinate

elevate

repeat

logistics defined

the part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption to meet customer requirements.

Types of warehouses

Distribution center

Crossdock

Breakbulk

Customs warehouse

transportation types

milk supply chains