SCMN 2150: test #2
3 main steps of supply chain. - ANS-1. supply chain
2. strategic sourcing
3. procurement
goal of supply management. - ANS-buy products and services; at the right price; from
the right source; at the right specification; in the right quantity; for delivery at the right
time; to the right internal customer
importance of supply management. - ANS-ability to generate a sustainable advantage
through lower costs, higher quality, and better service from our global supply base of
trading partners
products and priorities of supply management. - ANS-1. production purchases
2. services
3. capital equipment
4. finished goods
two types of production purchases. - ANS-1. direct materials
2. indirect materials
direct materials - ANS-used in production processes and affects product value
indirect materials - ANS-used outside production processes
distinctive goods - ANS-limited number of suppliers and unique items; high risks and
low spending levels
critical goods - ANS-strategic suppliers and key components; high risk and high
spending levels
generic goods - ANS-readily available, not production; low risk and low spending levels
commodity goods - ANS-multiple suppliers; basic production items; high risk and high
spending
5 steps of procurement process. - ANS-1. identify material & service needs
, 2. evaluate supplier options
3. select supplier
4. release orders and receive products
5. measure and manage performance
strategic sourcing uses what kind of decision making? how? - ANS-data-driven; total
cost of ownership and supplier performance analysis
strategic sourcing focuses on improving what? - ANS-supplier relationships- reduced
number of suppliers and awards; more communication, face-to-face meetings on how to
make the process better, product better, overall efficiency
principle 5 - ANS-manage sources of supply strategically
to reduce the total cost of owning materials and
services
MAKE fundamentals - ANS-production is the process by which
inputs are combined, transformed, and
turned into outputs; we can produce both
goods and services; ask: how much to make?; which transformation processes to use?;
what quantities of
inputs are required?
3 types of production. - ANS-1. job production
2. batch production
3. continuous production
job production - ANS-involves creating one-off or custom products for specific clients;
project oriented option where an entire product may be created before the next project
is initiated; benefits: high quality, customization, flexibility; drawbacks: high production
cost; example: BUILDING COST
batch production - ANS-manufacturing method used to produce product in groups or
batches; all components are completed at a workstation before they move to the next
one; benefits: production line flexibility, small volume flexibility; drawbacks: changeover
down time; example: BAKING BREAD
continuous production - ANS-manufacturing method used to produce product without
interruption; no discrete rate at which goods are produced as a steady flow of goods
3 main steps of supply chain. - ANS-1. supply chain
2. strategic sourcing
3. procurement
goal of supply management. - ANS-buy products and services; at the right price; from
the right source; at the right specification; in the right quantity; for delivery at the right
time; to the right internal customer
importance of supply management. - ANS-ability to generate a sustainable advantage
through lower costs, higher quality, and better service from our global supply base of
trading partners
products and priorities of supply management. - ANS-1. production purchases
2. services
3. capital equipment
4. finished goods
two types of production purchases. - ANS-1. direct materials
2. indirect materials
direct materials - ANS-used in production processes and affects product value
indirect materials - ANS-used outside production processes
distinctive goods - ANS-limited number of suppliers and unique items; high risks and
low spending levels
critical goods - ANS-strategic suppliers and key components; high risk and high
spending levels
generic goods - ANS-readily available, not production; low risk and low spending levels
commodity goods - ANS-multiple suppliers; basic production items; high risk and high
spending
5 steps of procurement process. - ANS-1. identify material & service needs
, 2. evaluate supplier options
3. select supplier
4. release orders and receive products
5. measure and manage performance
strategic sourcing uses what kind of decision making? how? - ANS-data-driven; total
cost of ownership and supplier performance analysis
strategic sourcing focuses on improving what? - ANS-supplier relationships- reduced
number of suppliers and awards; more communication, face-to-face meetings on how to
make the process better, product better, overall efficiency
principle 5 - ANS-manage sources of supply strategically
to reduce the total cost of owning materials and
services
MAKE fundamentals - ANS-production is the process by which
inputs are combined, transformed, and
turned into outputs; we can produce both
goods and services; ask: how much to make?; which transformation processes to use?;
what quantities of
inputs are required?
3 types of production. - ANS-1. job production
2. batch production
3. continuous production
job production - ANS-involves creating one-off or custom products for specific clients;
project oriented option where an entire product may be created before the next project
is initiated; benefits: high quality, customization, flexibility; drawbacks: high production
cost; example: BUILDING COST
batch production - ANS-manufacturing method used to produce product in groups or
batches; all components are completed at a workstation before they move to the next
one; benefits: production line flexibility, small volume flexibility; drawbacks: changeover
down time; example: BAKING BREAD
continuous production - ANS-manufacturing method used to produce product without
interruption; no discrete rate at which goods are produced as a steady flow of goods
