Notes from 3M speaker common platform science technology company does well that creates and cares about improving homes and lives everyday help customers tackle challenges and enable progress right to left approach 3M Supply Chain can reciprocate quickly when they have a success story or product Inventory Management 3M best practice lean 6 sigma lean speed and focusing on relationships between steps 6 sigma seeks to improve quality by identifying and removing errors minimizing variability lean 6 sigma focus on eliminating 8 kinds of waste by focusing on process improvement defects overproduction waiting non utilized talent transportation inventory motion and over processing operate faster and more efficiently by removing MUDA in turn enable growth DuPoint speaker DuPoint core competencies materials that they can make better than others then outsource them to other companies changes occur all the time Purchasing decisions get purchase order to suppliers Insourcing do it yourself Outsourcing buy from someone else partner Insourcing Advantages vs Disadvantages Advantages high degree of control ability to oversee program economies of scale and or scope Outsourcing Advantages vs Disadvantages Advantages high strategic flexibility low investment risk improved cash flow access to state of art products Disadvantages required strategic flexibility required high investment loss of access to superior products and services offered by potential suppliers Disadvantages choosing a bad supplier loss of control over the process and core technologies communication and coordination and services challenges hollowing out of the corporation Sourcing Strategies and Risk a subcontractor that produces key raw materials is purchased by a competitor A key supplier informs you of a significant outage at their facility What do you do decrease safety stock use it contact management Planned Events impacting supply outages turnarounds many of their units have annual bi annual outage 4 6 weeks duration hundreds of hours of work inspections equipment upgrades need to build inventory to accommodate demand during outage You get a call that there s been an incident at key manufacturer facility Not sure how long the unit will be down What do you do first contact managements You discover that a number of rail cars are stuck in traffic due to rail delays What can you do to avid a shutdown arrange for truck shipments to fill gap arrange for special train if long term hire additional trucks increase safety stock drivers for backup 1 Experts say that competition is not a race between companies but it is a race between a the leading competitor b the stock market c the supply chain d only the companies in your market 2 What is the sum of costs incurred before during and after a purchase a total cost of ownership b total cost c doorstep costs d quality cost of ownership 3 is the use of resources within the firm to provide products or services a outsourcing b employment c control d insourcing 4 The three types of global sourcing are supply chain disruptions supply chain capacity and transportation costs a true b false 5 What established the performance categories that are weighed by importance a weighted model system b weighted point model c weighted factors model d model of weights 6 The ratings that suppliers receive are always going to tell a a what decision companies should make b what supplier to choose c a story d a joke 7 Logistics are focused on the of products a physical flow b continuous flow c product flow d supply chain flow 8 Customer returns are usually a result of warranty failures and incorrect or damaged products a true b false 9 Logistics is the same thing as the supply chain a true b false 10 are products from one single plant broken up in warehouse into multiple smaller shipments a consolidation b cross docking c multiple loads d break bulk 11 Warehousing mainly focuses on a storage b flow c efficiency d pricing benefits 12 focuses on a quick turnaround a warehouses b distribution centers c storage units d retail stores 13 What is not a component of material handling and warehousing a storage requirements b unitization c ease of handling d careful employees e container recycling 14 Many came about post World War II a efficient supply chains b lean philosophy c inventions d usage of people rather than machines 15 After WWII Japan has a lot of capital a true b false 16 When dealing with Pre JIT the focus is on a PUSHING materials to the next stage b PULLING materials to the next stage c small purchase shipments d high per unit costs 17 When dealing with JIT the focus is on a PUSHING materials to the next stage b PULLING materials to the next stage 18 JIT really wants to focus on smaller shipments a true b false 19 A is the failure to satisfy a customer s needs a ongoing cycle b product efficiency c defect d failure 20 What type of costs are associated with defects after the delivery to the customer a prevention costs b appraisal costs c internal failure costs d external failure costs 21 PDCA stand for plan do check a acquire b act c adverse solutions d appraise 22 An advantage of insourcing is a degree of control a low b high c sensitive d flexible 23 A disadvantage of insourcing is communication improvement a true b false 24 What type of costs are associated with stopping defects before they happen a prevention costs b appraisal costs c internal failure costs d external failure costs 25 is using two suppliers for the same purchased service a multiple sourcing b dos usage c dual sourcing d dual strategy 26 Cross sourcing is using a supplier for a certain part and another supplier for a similar part a true b false 27 sourcing depends on a single company a single b uni c uno d cross 28 What is not a major transportation mode a highway b rail c air d cloud e pipeline 29 What is the most visible part of logistics a warehousing b packaging c inventory management d transportation 30 What is not a reason for an increasing interest in logistics a packaging encounters b deregulation c globalization d performance impact 31 A company must first decide if outsourcing is effective a research b think c ask questions d provide statistics 32 Contract carriers are bad for the company that wants to handle the distribution center a true b false 33 includes nondiscriminatory pricing a contract carriers b third party logistic provides c common careers d warehouse providers 34 What company had a war ravaged workforce after WWI