Introduction to Supply Chain Management - Lecture 9 Review

These flashcards cover key concepts from the lecture on supply chain management, focusing on processes, capacity planning, and associated principles.

Process

A system of structured activities that use resources to turn inputs into valuable outputs.

Process Thinking

Views activities in an organization as a collection of processes.

Juran’s Law

States that 15% of operational problems are due to human errors and 85% are due to systemic process errors.

Components of a Process

Includes activities, inputs, outputs, flows, structures, and management policies.

Capacity Planning

The process of planning for the capacity needed to meet changing demands.

Economies of Scale

As production volumes increase, the unit cost to produce decreases to an optimal level.

Utilization

Measurement of throughput compared to maximum possible output.

Performance Measures

Crucial metrics for assessing the success of processes.

Continuous Improvement

An ongoing effort to improve products, services, or processes.

Examples of Business Processes

Include strategic planning, innovation, customer service, resource management, and supply management.