SCMN 3150-001 Test 2: Ch. 5-8
Terms in this set (69)
_____ is the identification, acquisition, access, positioning and management of resources and related capabilities the organization needs or potentially needs in the attainment of its strategic objectives.
The tactical activity of purchasing of merchandise or services at the optimum possible total cost in the correct amount and quality is called ________________.
What is the sequence of the five-step procurement process
1. Identify need for materials and services
2. Evaluate supplier options
3.Select best suppliers
4. Release orders and receive products
5. Measure and manage supplier performance
What is the final step in the procurement process?
Evaluate supplier performance
According to this week's reading (How Organizations Can Reinvent Procurement), the new procurement paradigm requires companies to:
Facilitate and enable suppliers
According to this week's reading, what will drive the next wave of sourcing value?
Deeper collaboration and supplier commitment
Because companies spend more than half their revenue on purchases of goods and services, they should strategically manage key sources of supply to reduce the total cost of materials and services.
If production of goods is a core competency of your organization, you should:
Keep manufacturing in-house
Why would a company choose to keep production in-house instead of buying them from an external supplier?
It has competitive secrets to protect
Strategic sourcing is an institutional procurement process
that continuously improves and re-evaluates the purchasing
activities of a company.
Used in production processes and affects product value
Used outside production processes
Includes total cost of ownership and supplier performance analysis
Date-driven decision making
Make or Buy analysis
The process of determining the most attractive alternative involves comparing the costs avoided to costs of outsourcing
The growing importance of purchasing has shifted the
role from a tactical process to a _________ one.
Which manufacturing objective focuses achieving production schedule goals and deadlines so that the supply chain flows are maintained?
What are transforming resources?
Supporting tools to execute production
Materials, labor, and processes that support the transformation process are called ________.
What is the strategy behind the mass production system?
Make good to stock
Which manufacturing strategy relies upon multi-purpose machinery, cross-trained workers, and factory floor routing flexibility?
When a company adopts the Toyota "House of Lean" concept, what are they focusing on?
Leveling workloads to minimize delays
According to this week's reading (An Epiphany of Disruption: GE Additive Chief Explains
How 3D Printing Will Upend Manufacturing), an agile manufacturing process needs all of the following except: Modular product design, Strong corporate partners, Zero defects and delivery delays, or Customer of knowledge development?
Zero defects and delivery delays
According to this week's reading (An Epiphany of Disruption: GE Additive Chief Explains
How 3D Printing Will Upend Manufacturing), what company is spending $1 billion on its manufacturing facility in Alabama to produce large batteries?
This process provides high flexibility to produce a variety of products in limited volumes. Customization tends to be high, while volume is low. Similar equipment or functions are grouped together and parts travel thru a sequence of processes.
Custom made furniture and aircraft engines are example outputs for this process.
Assembly Line Layout
This process uses interchangeable parts which are added to a product in a sequential manner to create a large number of uniform finished products. The product is carried on a mechanized conveyor among stations at which the various operations are performed.
Automobiles and television are examples of this output.
The production process takes place in the fixed location of the product. Equipment labor move around product to complete a wide scope of activities. High customer involvement is common in these processes.
Ship building and road construction are example outputs for this process.
Continuous Flow Layout
The process follows a predetermined sequence of activities with limited human intervention to produce high volumes of standardized products. Product flows never stop unless there is a problem with the production system.
Corrugated cardboard and chemicals are examples of this process.
__________ is the process by which inputs are combined, transformed, and turned into outputs.
Primary Types of Production
Job Production, Batch Production, Continuous Production
Describe Job Production
Involves creating one-off or custom products fdor specific clients.
Project oriented option where an entire product may be created before the next project is initiated.
Benefits: high quality, customization, flexibility.
Drawbacks: high production cost
Ex: Building a house
Describe Batch Production
Manufacturing method used to produce product in groups or batches.
All components are completed at a workstation before they move on to the next one.
Benefits: production line flexibility, small volume flexibility
Drawbacks: changeover downtime
Ex: Baking bread
Describe Continuous Production
Manufacturing method used to produce product without interruption.
There is no discrete rate at which goods at produced as a steady flow of goods move through the process.
Benefits: automation= high volume, fewer errors=lower cost
Drawbacks: expensive to initiate
Ex: Refining oil
Primary Production Performance Objectives
1. Quality Objective (do things right)
2. Speed Objective (do things fast, productivity)
3. Dependability Objective (do things on time)
4. Flexibility Objective (develop ability to change)
5. Cost Objective (perform at minimum cost, you'll achieve this goal if you perform well on the other objectives)
Production and __________ strategy involves developing a plan regarding production's role, activities, and objectives. Strategies must: support the company's business strategy, focus on future needs and demand, be linked to customers and the other parts of the organization.
Describe the Primary Strategy Options.
PUSH: mass production
-"push" product to customers
-make to stock strategy
-one-size fits all
PULL: TPS & Lean
-products "pulled" by demand
-vuild to order methods
What is Lean Production? What are the Goals, Objectives, and Wastes?
A business model that emphasizes eliminating "waste" while delivering quality products at the least cost to the manufacturer.
Objectives: reduce production resource, increase manufacturing velocity and flexibility, improve quality and eliminate defects
Goal: the elimination of waste in production effort
Waste= anything that the customer is not willing to pay for
Which organization was the first to gain value from logistics activities and processes?
In the logistics process, we're trying to manage a variety of activities to improve product availability and flow. It requires the integration of multiple functions that many companies previously managed independently.
As the number of warehouses increase, inventory costs rise.
Which inventory model is based on customer purchase activities, collects checkout scans at the store, and places an order with the distribution center if the reorder trigger point is reached?
What type of logistics operation allows companies to receive, hold and process required level of inventory to meet customer needs in a cost efficient, timely manner?
What is the goal of the transportation purchasing process?
Use carriers that provide consistent service and capacity
While there are five modes of transportation, there are typically fewer logical options due to shipment size, origin and destination points, and product characteristics.
Which transportation option improves global access, provides flexibility, and increases security through the use of transferable containers?
According to the State of Logistics Report article, which transportation carriers were able to raise transportation rates and generate greater revenues in 2016?
According to the article (The Supply Chain Link Both Walmart & Amazon Are
Missing -The 'Perfect Order'), why have business logistics costs fallen to 7.5% of gross domestic product?
Excess transportation capacity
_________ is that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption in order to meet customers' requirements.
__________________ is the complete process from point of order inquiry to delivery of a product to the customer.
Primary Objectives of Logistics Concepts
1. Be effective
2. Be efficient
3. Be productive
4. Revolve around quality
What is Inventory Management?
Determine and maintain the lowest inventory levels possible while meeting required customer service levels.
• Key activities/decisions:
-Forecasting demand and order quantity
-Inventory replenishment - how to reorder
-Inventory deployment - where to hold goods
• Goal: service level optimization
Inventory- Deployment Options
Centralization: inventory is placed in fewer, more centrally located facilities
-Lower inventory carrying costs due to less safety stock
-Better control over inventory
-Economies of scale and lower overhead
-Reduced inbound transport costs
Decentralization - inventory is placed in many,
-Faster response to customers
-Lower outbound delivery costs
__________ transportation (the use of two or more carriers of different modes in the
origin to destination movement of freight) provides a number of benefits:
• Offsets accessibility problems
• Uses inherent strengths of multiple modes to create efficiencies
• Improves global access
What technology makes intermodal transportation a flexible, competitive option, especially for international freight movement?
Effective post sale service processes combined with appropriate technology creates what benefit?
Greater flexibility to handle problems
Which software tool helps a company align its resources with its customers in a manner that increases loyalty, streamlines interactions, and reduces frustration?
Customer relationship management
The purpose of customer relationship management software is to synchronize customer engagement in an effort to collect appropriate data, improve interactions, and understand customer needs.
What is the goal of a service parts logistics operation?
Improve service quality to reduce prodcut downtime
The challenge of managing a service parts logistics network is that initial demand is low but lasts much longer than the product's normal commercial life.
__________supports the overall repair and maintenance of equipment as it moves through its post-sales lifecycle.
Service parts logistics
The supply chain does not end with product delivery to the customer. Companies must develop effective reverse logistics processes to properly manage the flow of returns and recapture product value.
How does a company adopt the returns avoidance strategy?
Build high quality products and protect them
According to the article (Improving Reverse Logistics with a Returns Management Strategy), the percentage of customers that have returned or exchanged a product from an online purchase is ____%.
According to the reading (Improving Reverse Logistics with a Returns Management Strategy), most retailers and manufacturers have strong policies, processes, or infrastructure in place to manage returns.
Customer service includes activities intended to enhance buyer satisfaction. What are the goals of customer service?
Save money, reduce cost of activities, and build customer loyalty
______________________ provide customers with access
to important information and services in the manner that is
most convenient - by phone, via text message, or online
with FAQs and live chat sessions.
Call Center Operations
What is the goal of Call Center Operations?
Answer questions and solve problems remotely so returns, service calls, and customer dissatisfaction are avoided.
Key Concepts of Service Parts Logistics (SPL)?
Supports the overall repair and maintenance of high valuer products across their lifecycles. Includes: parts management, distribution and return, and parts repair and refurbishment
___________________ is the process of planning, implementing and
controlling the efficient, cost-effective flow of
materials, in-process inventory, finished goods and
related information from the point of consumption to
the point of origin for the purpose of recapturing value
or proper disposal.
Reverse Logistics Practices strategies
Avoidance of returns, gate-keeping to limit flows, generate visibility, establish centralized facility
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