QUESTIONS & ANSWERS(RATED A+)
What is a process? - ANSWERmini supply chain within an organization.
tiny cells in the bones
Any activity or group of activities that takes an input, adds value to it, and provides an
output to an internal or external customer.
recipe for pizza example - ANSWERRecipe = business process
manage from afar
guiding someone to success
Process Maps (Flowcharts) - ANSWERA diagram made up of a series of symbols that
maps a process. Each symbol represents a different step or activity in the process. The
chart aids in building a quality process and identifying points of concern in terms of
managing and delivering quality.
Critical Paths - ANSWERlongest path out of all options
Crashing - ANSWERwhen you lower the length of your critical path
Process Maps symbols - ANSWERRectangle: task or operation (what size pizza)
Diamond: decision point (pickup or delivery) answer takes us in one direction or the
other
skinny Arrow: which direction things go
Oval: Terminator, entry or exit point
Rectangle within rectangle: process within it's own (hand order to people making pizza,
and then have to wait until its done to be boxed up.)
Box Arrow: transportation
Circle: inspection
Box D: delay
Connector: move parts to different pages.
Series vs. Parallel - ANSWERUse Series for pizza example, there's only one way to go.
Parallel there's lots of ways to go
Why do we measure? - ANSWERcan motivate good behavior
help us manage from afar
help us manage large numbers of resources, outcomes
makes decisions
help identify/establish standards - design and performance
Whats a good metric? - ANSWERmetrics that motivate companies to work toward
outcomes that favor both sides of a supply chain relationship is vital.
,measurable
easily understood
attainable
types of metrics - ANSWERdescriptive - what happened?
predictive - what could happen?
prescriptive - what should we do?
discovery - things we don't know, weren't looking for. questions and answers we didn't
know existed.
bad metric - ANSWERGPA - plague on education
can cause poor outcomes
lower morale
processes not being manageable
high costs and low efficiency when employees push for perfection
Process Velocity - ANSWERA measure of how long a unit sits in a process versus the
amount of work time that is expended on the unit. optimal time is when it doesn't sit in
inventory. 1.0 process velocity
Capacity Utilization - ANSWERA ratio of the amount of product produced by a
manufacturing process versus the maximum capacity of that facility.
what they're producing/what they can produce
Cash to Cash Cycle - 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.
Quality - ANSWERThe ability of a product or service to meet a consumer's
expectations.
products vs services
Dimensions of Quality (cars, phones, clothing, tv) - ANSWERperformance
reliability
durability
features
aesthetics
reputation/brand
serviceability
service response
Dimensions of quality: service - ANSWERtime
timely
complete
accurate
responsive
, courtesy
consistent
accessible
convenient
Awards and Certifications - ANSWERSome organizations utilize certifications and
awards to self-assess and also to motivate employees to focus on quality within the
organization
ISO 9000 - international quality certification that helps orgs to understand the basics of
quality management.
TQM - ANSWERTotal Quality Management
one of the oldest
As the name would suggest, Total Quality Management seeks to address the
management of quality at all levels of an organization and/ or supply chain.
Benchmarking - ANSWERBenchmarking is a process whereby companies compare
their practices and performance measurements to those of other companies.
Has 4 steps:
Identify area to benchmark
Identify Leaders
Contact Leaders, Gather Data
Analyze, Act, Follow-up
Procurement - ANSWERThe branch of an organization responsible for acquiring
materials, equipment, products, and services. This would entail finding suppliers,
choosing the supplier that offers the best value, negotiating the terms of the purchase,
placing orders, and developing long-term relationships with suppliers
Upstream - ANSWERthe direction that points toward the supplier in a supply chain.
Downstream - ANSWERthe direction that points toward the end consumer in a supply
chain
Reverse Logistics - 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 suppliers - ANSWERcompany's direct suppliers. firm that directly provides goods
and or services to a company.
2nd tier suppliers - ANSWERA firm that provides goods and or services to a company's
first tier supplier.