Logistics and Supply Chain Management, Exams of Business Economics

Download Logistics and Supply Chain Management and more Exams Business Economics in PDF only on Docsity! Davila SCM 300 Final exam Competitive Prioritiescorrect answer1. Cost 2. Quality 3. Speed/Time 4. Flexibility Productivity and Valuecorrect answerOrganization vs. Customer What is SCMcorrect answerIs the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Operations Managementcorrect answerDesign, operations, and improvement of product systems that efficiently transform inputs into finished goods and services which leads to maximizing productivity. Logisticscorrect answerIs the COORDINATED Planning and Execution of product distribution, preparation of packaged product, transport and warehousing. Procurementcorrect answerThe process of obtaining services, supplies, and equipment in conformance with corporate regulations. Upstreamcorrect answerStage of the production process involves searching for and extracting raw materials. Downstreamcorrect answerStage in the production process involves processing the materials collected during the upstream stage into a finished product Reverse Logisticscorrect answerThe process of planning, implementing, and controlling the efficient, cost effective flow of raw 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. 1st Tier Suppliercorrect answerCompanies direct supplier 2nd Tier Suppliercorrect answerProvide tier 1 with supplies Safety Stockcorrect answerInsurance inventory Pipeline Inventorycorrect answerInventory in transit Vertical Integrationcorrect answerA company taking on additional supply chain responsibilities that used to be done by outside parties Benefits of High Inventory Levelscorrect answer>>Higher levels of customer service >>Quantity discounts >>Fewer orders placed >>Greater security for demand variability Benefits of Low Inventory Levelscorrect answer>>Less storage space >>Lower change of obsolesence >>Less materials handling requirments >>More money available for investment opportunities What is the EOQ?correct answer>>Is the optimal order size. >>Using it, you will get the lowest total cost for the given cost structure and demand forecast. What does it mean if AHC > AOC? Increase or decrease Q?correct answerAbove the EOQ. What does it mean if AHC < AOC? Increase or decrease Q?correct answerBelow the EOQ. Pros of 4 Modes of Transportationcorrect answerTruck: reliable/ cheap Airplane: fastest Railroad: cheaper than trucks Vessels: ship a lot of product Cons of 4 Modes of Transportationcorrect answerTruck: traffic/weather Airplane: expensive Railroad: cargo damaged easily Vessels: slowest Warehousecorrect answerProvides storage Distributing Centercorrect answerFacilitates movement Crossdockingcorrect answerFast mixing centers, more inventory quickly, zero inventory in distribution center. Queuing System - Goals and Trade-offscorrect answer>>Find the proper balance between long lines/unhappy customers and idle staff/high cost. >>Companies that have shorter lines are perceived to have better service, but shorter lines typically means employees with less work. Balkingcorrect answerWhen people fail to enter the line because of the number of people already present. Renegingcorrect answerWhen people enter the line but then leave because of the wait time. Last Milecorrect answerPortion of the supply chain between the final inventory holding facility and the end consumer. Vendor Managed Inventorycorrect answerInventory planning and replenishment system where supplier(vendor) accepts negotiated responsibilities that typically include monitoring and restocking. >>Value to retailer: fewer responsibilities, decrease cost. >>Value to vendor: better understanding of demand rates, fewer retailer errors, responsive. Omni-Channel Retailingcorrect answerRetailers fully committed to engaging customers via catalogs, phone calls, web, email, and social media Push Systemcorrect answer>>Buy Goods, push through supply chain. >>Make things without you asking for them. >>Send to a store for you to buy. >>Purchase→ Production→ Distribution→ Retail Sales. EX: Fast Food Pull Systemcorrect answerWhen someone asks for a computer, then they buy the parts & put them together. (ex. Dell) Basic Characteristics of Lean Manufacturingcorrect answerStrives to meet consumer demand and desires but with minimal inventory levels and minimal supply chain waste, Toyota production system Postponementcorrect answerWhen you delay the final assembly of the end item. Postponement relationship to Push Systemcorrect answerPUSH through the standardized portions of manufacturing. Postponement relationship to Pull Systemcorrect answerPULL only the customization options offered to customers. Bullwhip Effectcorrect answerSupply chain phenomenon where fairly stable demand results in a proliferation in the amount of inventory that is carried as one travels upstream in the supply chain. Possible Causes of Bullwhip Effectcorrect answer1. Order Batching 2. Forward Buying 3. Rationing 4. Short Gaming Outsourcingcorrect answerWhen a company contracts an outside firm to perform services, operations, or business processes that could be or were previously performed in-house. Offshoringcorrect answerStrategy where a company moves manufacturing out of its "home" country to another country. Business Process Outsourcingcorrect answerOutsourcing of office activities like accounting, human resources, and customer service activities. Contract Manufacturerscorrect answerCompany that produces goods on behalf of another organization. Near Sourcingcorrect answerTypically refers to a shift in strategy where a company used to manufacture goods very far away from the home market, but then shifts to manufacturing in a country that is much closer to the home market. Third-Party Logistics Company (3PL)correct answerContractor that performs one or more logistics functions for their client in order to facilitate effective and efficient movement in the supply chain. >>can neither be a buyer or seller of the items being moved. Freight Forwardercorrect answerContractor (person or company) that helps companies organize the efficient and effective shipment of goods from one point in the supply chain to the other. Customs House Brokercorrect answerContractor (person or company) that helps a clients goods clear customs in a foreign country. Block Diagramscorrect answerShows step by step process without determent and only with one shape. Nothing in layout allows anything to change, important because it can show how many things can go wrong at previous steps that eventually hurts the production. Difference Between Block Diagram and Business Process Flow Chartcorrect answer>>Shows step by step process without determent and only with one shape. Nothing in layout allows anything to change, important because it can show how many things can go wrong at previous steps that eventually hurts the production. >>Has different shapes that mean different things. Allows process to be customized depending on specific questions from client/order. Scopecorrect answerDefine process requirements and boundries Scope Inflationcorrect answerTrying to tackle entire process instead of focusing on one element only. Value of Flowcharts for the Organizationcorrect answer>>Build a detailed process plan >>Find areas of weakness, opportunity, and ambiguity Swimlane Flowchartscorrect answerTakes a basic flowchart and breaks it up into different people and departments Service Blueprintscorrect answerA detailed flowchart of the process used to deliver a service. It identifies the actions of different parties, those steps that are visible and not-visible to the customer, key steps and outcomes, and related and supporting processes In-Class Example: Catalog Order Processcorrect answerUses a Catalog Call Center to demonstrate; >>Designing a good business process >>Creating an accurate flow chart In-Class Examples: Value of Process Improvement and Project Management on Careerscorrect answer>>Vital to corporate careers, no matter the major >>Resume Builder >>Corporate careers - Politics, Leverage, Capital Attribute of a Good Consultantcorrect answer1. Data collection, Data analysis 2. Be creative 3. Have long-term vision 4. Understand group/team dynamics 5. Understand business imperatives Common Consulting Errorscorrect answer>>Assuming things >>Utilizing poor surveys >>Poorly managed scope inflation >>Sticking to a dead end scope >>Listening to the clients pre-fabricated solutions >>Trying to maintain happiness In-Class Consulting Examplescorrect answer>>Real Estate Agent >>Doctor >>Life Coach Desired Statecorrect answer(Step One) Interview - identify objectives, goals and metrics >>Repeat until everyone agrees Present Statecorrect answer(Step Two) Data collection, interviews, and observations GAP Analysiscorrect answer1. Gap between Desired State and Present State? >Utilize key metrics and goals to identify size of GAP. 2. Analyze why gap exists 3. Share and discuss with clients DO NOT DEVELOP SOLUTIONS Recommendations on Developing Solutionscorrect answer>>Does this require change? Options to consider >>Get feedback early and often - throughout project >>Solutions client will buy >>Implement plan and phasing in change Importance of getting feedbackcorrect answer>>Make sure you're actually doing something the client likes, wants and is comfortable with >>Goals and priorities change >>Prepare for resistance at final presentation Primary steps to consider when selling consulting recommendationscorrect answer1. List values, objectives, and goals 2. Basic solutions and anticipated benefits 3. Cost-benefit analysis 4. Value to work Ratio 5. Does is it fit the system? 6. Metrics 7. Implementation Performance Metric (PM)correct answerA single performance measurement used to evaluate, motivate, and improve performance Metriccorrect answerA single performance measurement used to evaluate, motivate, improve, etc. EX: >>Basketball example: points per game >>Academic example: GPA >>Utilizing too many metrics >>Driving toward perfection may waste resources >>What do those numbers really mean? Shared Metricscorrect answerA metric that is impacted by two related parties. Balanced Scorecardcorrect answerA performance management tool that focuses on strategic activity and strategic outcomes 4 Elements of a Balanced Scorecardcorrect answer1. Financial results 2. Customer-related results 3. Internal business process results 4. Learning and growth results SCOR Modelcorrect answerA measurement tool that enables supply chain partners to track performance, communicate progress, and develop opportunities for improvement 5 Primary Supply Chain Processescorrect answer1. Plan 2. Source 3. Make 4. Deliver 5. Return Total SCM Costscorrect answerThe cost of every process, material, fee, defect, etc. that runs through the supply chain Cash-to-Cash Cyclecorrect answerA measure of the number days between the time a company pays their supplier for inventory and the time that same company is paid for the same inventory by their customer Is having a low or high cash cycle ideal?correct answerLow Capacity Utilizationcorrect answerA ratio of the amount of product produced by a manufacturing process versus the maximum capacity of that facility Process Velocitycorrect answerA measure of how long a unit sits in a process versus the amount of work time that is expended on the unit What is the ideal velocity?correct answer1.0 Perfect Order Fulfillmentcorrect answerThe percentage of orders that are full, arrive on time, and are damage free Primary Performance Measurement Terminologycorrect answer>>Performance Measurement >>Metric >>Key Performance Indicator (KPI) >>System of Metrics Difference between a Single Metric and a system of Metricscorrect answer1. Done by itself 2. Done by a group Results of Utilizing Poor Metricscorrect answer>>Primary business concerns not manageable >>Poor outcomes >>Lower moral >>Need for increased external regulation >>The costs of pushing for perfection Other Considerations in Developing/Using Metricscorrect answer>>Compulsory vs Definitive Metrics >>Nudging vs Programming People >>Short-run vs Long-run use of Metrics - Improvement? Evolution? >>What types of improvement might be experienced? >>Perfect scores Calculate: Capacity Utilizationcorrect answer(Actual factory output)/ (Factory design capacity) Calculate: Cash-to-Cash Cyclecorrect answer(Days of Inventory on Hand) + (Days of Accounts Receivable owed to your company by your customers) - (Days of AP your company owes to suppliers) *Negative number is possible Calculate: Process Velocitycorrect answer(Throughput time) / (Value Added Time) Qualitycorrect answerThe ability of a product or service to meet a consumer's expectations Dimensions of Quality: Productcorrect answer>>Performance >>Reliability >>Durability >>Features >>Aesthetics >>Reputation/Brand >>Service Response >>Serviceability >>Maintenance and Repair Dimensions of Quality: Servicecorrect answer>>Time >>Timely >>Complete >>Accurate >>Responsive >>Courtesy Shortcomings of ISO 9000 certificationcorrect answer>>Certification only, Compliance does not insure high quality >>May take up to 18 months to get certified (quality audit) Deming Prizecorrect answerJapanese quality award given to companies or individuals that have contributed to the field of quality Malcolm Baldrige National Quality Award (MBNQA)correct answerAwarded to companies based in the U.S that are deemed to demonstrate the very best in the area of performance excellence Compare and contrast ISO 9000 and the MBNQAcorrect answer1. >>international >>measure present state of quality >>certification vs award What is Total Quality Management? (TQM)correct answerSeeks to address the management of quality at all levels of an organization and/or supply chain 3 TQM Principlescorrect answer1. Involvement 2. Continuous improvement 3. Customer focus Similarities of TQM and JITcorrect answerJIT seeks improvement through reduction of waste; similarly TQM also works towards making continuous improvements by ensuring that improvements are fundamental and not superficial Quality at the Sourcecorrect answerThe philosophy whereby defects are caught and corrected in where they are created Keys to successful Benchmarkingcorrect answer1. Identify area to benchmark 2. Identify Leaders 3. Contact Leaders and gather data 4. Analyze, Act, Follow-up. Different Types of Benchmarking. Examples.correct answer>>Competitive - comparing those to in your own industry EX: Pepsi vs. Coke >>Functional - comparing to a different industry, similar process EX: Southwest Airlines comparing itself to NASCAR pit crew Davilia looks at stand out comedians >>Internal - some organizations are so big they can benchmark one department vs. the other Basics of the Six Sigmacorrect answer>>Strives for complete elimination of defects >>Black Belt Program - Green, Black, Master Black belt. Firms awards percentage of savings based on level of belt. E.g. Green gets 0.5%, Black get 1%, Master 1.5%. Training - Methodologies, Statistics, Quality Tools Incentives DMAICcorrect answerDefine, Measure, Analyze, Improve, Control Is Motorola Six Sigma a true Six Sigma?correct answerNo, it's more like a 4.5 sigma with allowed drift What are the primary differences between low sigma curves and high sigma curvescorrect answerA low curve may mean that it has more spaces at the edges that are out of the defect - free zone? A high is vice versa What's the difference between flat curves and tall curves?correct answerThe main difference between a flat curve and a tall curve is variability. A flat curve means that the curve has high variability. A tall curve is has low variability. What's the difference between centered curves and un-centered curves?correct answerA centered curve means that the majority of the curve falls in the boundaries of the defect free zone. Vice versa, a off- centered curve means that the majority of it is not within boundary of the defect free zone (could be left of right). In simple words, is it on target? How IT impacts big picture supply chain and also business processescorrect answerCollected data from everyone, making it accessible to everyone, and turned that data into information >>Used within and between businesses. Aids in planning, execution, support, and creating an efficient supply chain Requirements and goals of Business IT Systemscorrect answer>>Collect data from everyone >>Make data accessible to everyone >>Turn your data into information Difference between data, information, and knowledgecorrect answerDATA: >>Collection of raw details with no meaning by itself INFORMATION: >>Meaning derived from ordering the available data >>Discovering data relationships KNOWLEDGE: >>Ability to make decisions based on information derived from data >>Understanding the patterns Requirements and goals of SCM IT systemscorrect answerCollect and store data, aid in planning and analysis, aid in execution, communication, support other functions/parties, facilitate supply chain compression Supply Chain Compressioncorrect answerUsing IT to remap processes to find more efficient methods, which leads to faster processing and possible cuts to costs Compression relationship to Mapping your Processcorrect answerIn order to compress supply chain need to map out processes to identify areas that need improvement Potential positive outcomes of Supply Chain Compressioncorrect answerMapping it out helps find cow paths