| Question | Answer |
| One definition of supply chain management is managing the flow of ________ and ________ from the suppliers' supplier to the customers' customer. | Information, Materials |
| Bullwhip Effect | A phenomenon that occurs when demand variations are exaggerated b/c of poor communications up/down supply chain |
| Theory regarding need for strategic thinking on the part of management that conceptualizes the relationship between a changing environment, managerial decision-making, and performance. | Contingency Theory |
| Theory regarding strategic thinking claims that market forces should drive decision-making. | Industrial Organization Theory |
| Theory regarding strategic thinking focuses on building internal organizational skills and processes that enable a company to deliver distinctive products and services. | Resource-Based Theory |
| 3 things management must consider when developing effective supply chain strategies to satisfy its customers | Environment, Feedback & Resources |
| The terms 1st tier, 2nd tier, 3rd tier, in the context of a supply chain refers to _______ | sequence of suppliers/customers that are in the chain but distant from the base/focal company |
| 3 Major Components of a well-performing supply chain feedback system | Good information systems, Frequent information sharing & consistent performance measurement. |
| Before SC processes can be managed effectively up and down the supply chain, they must be ________. | Managed well within the focal firm |
| Assume for a moment you are a SC manager at Dell Computer. One of the commodities you plan and purchase is the microprocessor device from Intel. Intel is therefore considered a (an) ________ member of the value chain. | Upstream |
| Motorola established its 6-sigma quality improvement program more than a decade ago. The numerical value of 6-sigma is ________. | 3.4 PPM |
| (Garvin's 8)Performance refers to the ________. | Primary operating characteristics of the product or service |
| (Garvin's 8)Reliability | A product or service characteristic where it can be counted upon not to fail |
| Four supply chain cost-reduction strategies (Creating Customer Value) | -Productivity Enhancement
-Adoption of advanced process technology
-Locating facilities in countries w/ low cost inputs
-Sourcing from the World's MOST EFFICIENT suppliers |
| 5 most significant business contributors when creating Customer Value: | quality, cost, flexibility, delivery and innovation |
| Core Competency | Something that your company does so well that it provides the business a competitive advantage. |
| Identifying specific customer needs and then matching the company's ________ to those needs is the key to implementing a successful customer fulfillment strategy. | Promises and Capabilities |
| Treatment of 'A Segment' Customers | Frequent communication occurs between the two firms at many levels, including marketing, engineering, logistics, and senior management. |
| Top four causes of customer fulfillment dissatisfaction | Employee training, measurement, empowerment and policies |
| Functional Organization | The grouping of resources into specific departments, such as research and development, purchasing, production, logistics, and marketing. |
| Process | Set of identifiable flows and value added activities. Three distinct flows define each process: an information flow, a physical flow, and a financial flow. |
| "Systems Thinking" regarding process management is the holistic process of considering both: the immediate local outcomes and the longer-term ________ ramifications of decision. | System-Wide |
| "Functional Thinking" regarding process management seeks the local, departmental optimum, often at the expense of the overall ________ performance. | System's |
| Decisions made in one function area of a company often affect performance in other areas of a company. This situation requires business teams to perform a ________ in order to decide what decision is best for a company. | Trade-Offs Analysis |
| Value Proposition | The value a company promises to deliver to customers |
| Process Re-engineering | The radical redesign of business processes made possible by systems think and improved information technology. |
| The primary reason a process map should be created when improving a process is to ________. | Unify the understanding of the activities, the people performing the activities and critical performance dimensions of the process |
| "Total Cost of Ownership" | Sum of the costs of purchasing, transportation, using, warranting and disposing |
| What key element of a business enables the business defines its value propositions and drives competency development? | Customer Focus |
| Process mapping | Graphic representation of how individual processes are currently being conducted; helps lay out new/improved processes. |
| 3 pitfalls of poorly designed supply chains | Long Cycle Times, High Inventory & Communication Issues |
| Process | An activity that transforms or changes inputs into a new output. |
| Value Stream Mapping | A specific application of process mapping; based on lean manufacturing principles including details on process performance characteristics and information flows as well as the physical flow. |
| 3 decisions considered when designing supply chains and following the identification of customers and establishing value propositions | Who will manage the network?
How will the membership's relationships be structured?
Who will be chosen as members of the supply network? |
| Supply-Chain Operations Reference-model (SCOR)
(3 Crucial Factors) | Process modeling factor, Performance measurement and Best practices sharing. |
| |
| Approach to supply chain design proposed by Marshall Fisher is to design the supply chain based upon whether the product or service you sell is ________ or functional. | Innovative |
| 4 stages of Product Life Cycle (PLC) | Introduction->Growth->Maturity->Decline |
| A supply chain is made up of a series of processes that involve an input, a ________, and an output. | Transformation |
| 2 fundamental decisions made by the management of supply chains and supply networks | Make or Buy?
Which Supplier to use? |
| West Texas cotton is spun into yarn at _____. | Shanghai Number 36 Cotton Yarn Factor |
| ____ accounts for more than half of the value added in the production of apparel, such as t-shirts. | Labor |
| The world's first factories were _______ factories. | Cotton Textile |
| 3 main risks faced by Cotton Farmers | Financial, Labor & Weather |
| Spinning jenny | Invention that dramatically increased the amount of yarn that an individual worker could produce; gave rise to the factory system. |
| When did cotton farmers in West Texas first adopt mule farming? | NEVER |
| For cotton farmers, the _____ labor system replaced slavery after the Civil War. | Sharecropper |
| China's demand for cotton is largely driven by ________. | US demand for cheap clothing |
| Cotton Gin | Invented in 1790's by Eli Whitney; solved the problem of removing seeds from cotton bolls. |
| Cotton farmers use module builders to build giant bricks of cotton that hold about _______ pounds. | 22,000 |
| World's First Factory Type | Cotton Textile |
| APS | Advanced Planning and Scheduling;PS system simultaneously plans and schedules production by tracking available materials, labor and plant capacity, optimizing a firm’s ability to meet demand. |
| 3PL | Third Party Logistics; using an OUTSOURCED supplier to provide some combination of logistics activities such as transportation, warehousing, procurement, manufacturing, inventory management, and customer service. |
| FTZ | Foreign/Free Trade Zone;DUTY FREE general/special purpose areas inside United States that the government excuses from Customs jurisdiction |
| EDI | Electronic Data Interchange; Computer-to-computer exchange of business documents between companies. EDI takes the place of exchanging paper documents. |
| ERP | Enterprise Resource Planning; single database surrounded by application programs that take data and conduct analysis/collect additional data for firm. SCOR model to break it down into four processes; Plan, Source, Make, and Deliver/ Return. |
| SCOR MODEL (4 processes) | Plan, Source, Make and Deliver |
| MRP | Materials Requirement Planning;info system developed in the 1960’s to help plan when companies will need new materials by keeping realistic 'master schedule', MPR II improved on original MRP in 1980's. |
| Internal Process Integration | Increase collaboration among the company's functional groups. |
| Backward Process Integration | Collaboration w/ 1st & 2nd tier SUPPLIERS |
| Forward Process Integration | Collaboration w/ 1st tier CUSTOMERS |
| Complete Integration | Collaboration from: "the suppliers supplier to the customer's customer" |
| Strategy | Basis from which a consistent allocation of resources is made to achieve some objective. |
| What is the 'key' to success with the Contingency Theory? | Situational Awareness Key |
| What is the key to success with the Industrial Organization Theory? | Where does MARKET POWER exist, and what are the sources of said power? |
| What is the key to success with the Resource-based Theory? | Unique Skills/Processes (Core Competency)-> Competitive Advantage->Added Value in eyes of Customer |
| Example of Target's unique SCM strategy | Outsource the hanging and price tagging of garments before they are delivered. |
| Internal Environment | Company Culture, Functional Relationships & Reward/Measurement Systems |
| External Environment | Competitive, Economic, Legal and Political landscapes w/in market |
| Resources | All Assets a firm can BRING TO BEAR, including: people, technology, infrastructure, raw materials & money |
| Objectives | Unify decision making throughout a company; Key to a winning business strategy |
| Feedback | Input to the control mechanism; assists in alignment of company strategy & changing competitive environment |
| 4 'Decision Areas' for SCM Strategy | Environment, Resources, Objectives & Feedback |
| End Customer | The ONLY ONE who puts money into the supply chain (Should be FOCUS of all activities) |
| Ways customers perceive VALUE (5) | Quality, Cost, Flexibility, Delivery & Innovation |
| With improved Cost Performance comes: (4) | Increased Market Share,
Increased Economics of Scale,
Increased Profitability &
Investment in future capabilities |
| 3 Strategies for Cost Reduction | 1.)Global Manufacturing Rationalization
2.)Outsourcing
3.)Downsizing |
| 3 Characteristics of "flexible" organizations | Short Lead Times, Responsiveness to special requests, Automated Production/Logistics Technologies |
| ESI | Early Supplier Involvement; Key element of innovation strategies. Products introduced on-time but 50% over-bugdget only experienced 4% profit loss while products introduced 6 months late within budget constraints lost an average of 33%!!! |
| 3 Focuses of 'Traditional Customer Service' | 1.)% of defective products
2.)% of on time delivery
3.)Fill Rate |
| Top 4 reasons that 80% of dissatisfied customers cited as the cause for their bad experience | 1.)Poor Training of Employees
2.)Measures available to employee d/n reinforce appropriate attitudes/behavior
3.)Inadequate Empowerment of Employees
4.)Company Policies are inflexible/run counter to real service & satisfaction |
| 3 Types of analysis needed to effective tailor supply chain service levels to SPECIFIC CUSTOMERS | 1.)Customer Analysis
2.)Supply Chain Analysis
3.)Competency Analysis |
| Customer Segmentation | Identification of UNIQUE GROUPS of customers who possess SIMILAR NEEDS |
| Core Competencies are almost always ______ ______ | Cross-Functional |
| "A" Customers | "Customer's of Choice"; Receive the highest level of service (Dedicated Account Teams) |
| "B" Customers | Managed Carefully; Potential to become "A" customers |
| "C" Customers | Transactional Relationships, Little Personal attention |
| Characteristic of "in control" charts | No point exceeds the 'control limits' |
| 3 Characteristics of "out of control" charts | 1.)Downward/Upward Sloping Trend
2.)Widening gaps between observed values
3.)Several Values in a row that are above/below the mean |
| 5 Requirements of "Systems Thinking" | 1.) Holistic View
2.) Availibility/Accuracy of Info
3.) X-Functional & Inter organizationalized team
4.) Measurement
5.) Systems Analysis |
| Value Proposition & Competencies | Promised Value and the skills and processes that collectively deliver it |
| Differentiation | ability to deliver some unique value which REDUCES PRICE SENSITIVITY |
| Economies of Scale | Size creates unparalleled buying power (Wal-Mart) |
| Uniquely Productive Processes | SW Airlines; 15-minute 'turnaround' between landing and next flight departure |
| Low-Cost Factor Inputs | McDonald's; Global sourcing network accesses low-cost resources around the world/ |
| Advanced PRODUCT Technology Differentiation | Airbus; Pioneered the "fly-by-wire" technology |
| Advanced PROCESS Technology | Victoria's Secret; Brings new products to market in 1000 hrs. (it takes longer to build a wonder bra than it does to assemble a Chrysler car.) |
| 7 Resources Every Company must manage | Human, Physical, Financial, Legal, Informational, Organizational & Relational |
| Primary Goal behind Process Mapping | Make complex systems VISIBLE |
| Why is Process Analysis used? | To identify non-value added/redundant activities |
| SCOR Model (4 Steps) | Analyze, Configure, Align, Implement |
| First objective of supply chain mapping | Identify major linkages and bottleneck areas |
