SCM 301: FINAL EXAM
51 Cards in this Set
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lean production
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waste reduction and value enhancement
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waste reduction
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eliminate waste in operations from
overproduction
waiting time
transportation
excess inventory
overprocessing
excess motion
defects/rework
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5 S's of waste reduction
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sort
set in order
shine (cleaning)
standardize
sustain
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Kanban system
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"pull" production system that is composed of cards and containers
authorizes production and controls materials movement
work centers generate production orders for previous work center
as parts are used - empty containers with production authorization are returned to the work center
p…
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workforce commitment
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managers must support lean production by providing subordinates with the skills, tools, time, and other necessary resources to identify problems and implement solutions
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continuous improvement
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continuous approach to reduce process, delivery, and quality problems
machine breakdown problems
setup problems
internal quality problems
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process management
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application of knowledge, skills, tools, techniques, and systems to define, visualize, measure, control, report, and improve processes with the goal to meet customer requirements efficiently
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ISO
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international organization for standardization
4000 - governs environmental management standards
9000 - 5 international quality management standards for production
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assignable causes
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factors that can be clearly identified and possibly managed
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natural causes
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inherent to the production process
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statistical process control
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visually monitor process performance
compare the performance to desired levels or standards
take corrective action
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project management
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management activities of planning, directing, and controlling resources (people, equipment, material) to meet the technical, cost, and time constraints of a project
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critical path method prerequisites
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well defined activities
independent
follow a given sequence
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time cost models
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relationship between activity completion time and project cost
time cost models - determine the optimum point in time-cost tradeoffs
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x bar
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shows sample means over time
monitors process average
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structuring projects pure project advantages
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project manager has full authority over the project
team members report to one boss
shortened communication lines
team pride, motivation, and commitment are high
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structuring projects pure project disadvantages
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duplication of resources
organizational goals and policies are ignored
lack of technology transfer
team members have no functional area home
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functional project advantages
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team member can work on several projects
technical expertise is maintained within the functional area
functional area is "home" after the project is completed
critical mass of specialized knowledge
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functional project disadvantages
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aspects of the project that are not directly related to the functional area get short changed
motivation of team members is often weak
needs of the client are secondary and are responded to slowly
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matrix advantages
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enhanced communications between functional areas
pinpointed responsibility
duplication of resources is minimized
functional "home" for team members
policies of the parent organization are followed
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matrix disadvantages
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too many bosses
depends on negotiation skills
potential for sub-optimization
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r bar
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shows sample ranges over time
monitors variability in process
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costs of quality
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appraisal costs - inspections, audits
prevention costs - quality planning, supplier capability, quality improvement
internal failure costs - scrap and rework, re-inspection and re-testing, defects before delivery
external failure costs - warranty costs, returns, customer complaints, re…
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DMAIC Cycle
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Define
Measure
Analyze
Improve
Control
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lean six sigma
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describes the melding of lean production and six sigma quality practices
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different performance measures
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outcome controls
behavior controls
qualitative measures
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bullwhip effect
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ineffective communication between buyers and suppliers and infrequent delivery of materials
combined with production based on poor forecasts along a supply chain that results in either too little or too much inventory
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backward integration
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retailer owns some or all of its supplier
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forward integration
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producer who owns the intermediary at the next channel
production center also owns retailer
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purchasing
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obtaining merchandise or capital equipment
raw materials, services, or maintenance, repair, and operating supplies in exchange for money or its equivalent
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supply management
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encompasses all acquisition activities
identification
acquisition
access
positioning
management of resources
an organization needs or potentially needs in the attainment of its strategic objectives
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supplier selection
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buying center creates a list of desired supplier attributes and negotiates with preferred suppliers for favorable terms and conditions
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total cost of ownership costs
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total cost
tooling cost
transportation cost
ordering cost
carrying cost - cost to hold inventory
quality cost
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supply base
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list of suppliers that a firm uses to acquires its materials, services, supplies, and equipment
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aggregate production planning
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balances production, inventory, resources, and demand by creating a high-level production plan
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why do you use an x bar chart?
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monitors the mean performance of a process
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DPMO
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defects per million outputs
(6 Sigma)
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6 Sigma
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quality at the source - person who does the work takes responsibility for making sure that the output meets specifications
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total quality management
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managing the entire organization so that it excels on all dimensions of products and services that are important to the customer
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design quality
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inherent value of the product in the marketplace
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conformance quality
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degree to which the product/service design specifications are met
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continuous improvement
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tries to make never-ending improvements to the process of converting inputs into outputs
Kaizen system
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supply chain integration
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effective coordination of supply chain processes through the seamless flow of information up and down the supply chain
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warehousing
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allows firms to store purchases, WIP, and finished goods and perform break bulk and assessment services
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relationship between lean production and inventory management
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inventory management wants fewest inventory possible
lean production wants low inventory
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pure project
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self-contained team that works full time on one project
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competitive weapon
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compete based on supply chain strategy if they can
understand the end customer
leverage partner requirements and trade-offs
adjust SC member capabilities
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understanding end customers
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supply chains need to look at each market segment and determine the needs of those customers
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understanding supply chain partner requirements
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supply chain strategies must consider the potential trade-offs existing between
cost
quality
quantity
service
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adjusting supply chain member capabilities
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supply chain members audit their capabilities
firms and their partners must continually reassess performance with respect to requirements
best SC performers
responsive to customer needs
anticipate changes
control costs
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obstacles to supply chain integration
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silo mentality
lack of supply chain visibility
lack of trust
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SCM 301: FINAL EXAM