SCM 300 Exam 1 Davila
Supply chain management- - CORRECT ANSWER-Efficient integration of:
-Suppliers and manufacturers
-transporters, distribution centers, warehouses
-Retailers and all other parties associated tasked with the successful devivery of
final product/service
Primary goals of Corporation - CORRECT ANSWER--Sustain Long-term profits
-Maximize Return on Investment (ROI)
How to do it? make money, avoid waste
Profit formula - CORRECT ANSWER-Revenue - Cost
(SC costs: materials, labor, energy, transportation, packaging, storage, defects,
insurance)
ROI formula - CORRECT ANSWER-Profit / Investment
Aspects, formula of Value (customer perspective) - CORRECT ANSWER-What
do I get (Quantity, quality)
------------------------------------
What is the price? (money, time)
-Trust, quality, way company presents self
Aspects, formula of Productivity (Organizational Perspective) - CORRECT
ANSWER-What did I make? (Outputs)
-------------------------------
What was the cost (Inputs)
-Dont want to waste things.
The 4 Competitive Priorities - CORRECT ANSWER-1. Cost
2. Quality
3. Speed/time
4. Flexibility
, Aspects of COST (competitive priorities) - CORRECT ANSWER--Material Cost
-Production Cost
-Packaging
-Quality Costs (returns repairs)
-Customer service cost
-Other (marketing, finance, waste disposal, rent, insurance, legal etc)
Aspects of QUALITY (competitive priorities) - CORRECT ANSWER--Design
Quality
-Material and production quality
-Quality level delivered (how it looks when delivered)
-Consistent quality (builds trust)
-Service quality (sales, support, repairs)
Aspects of TIME (competitive priorities) - CORRECT ANSWER--Delivery time,
Lead Time (pizza industry)
From order placement to order fulfillment... includes supplier delivery times,
manufacturing time, transport times, waiting time...
-On Time Delivery (Airline industry)
Reliability vs. Speed... Percentage of time delivered when promised, staying on
schedule
-Fast, accurate, or both? Whats important in your industry
Types of FLEXIBILITY (competitive priorities)
-Companies offer large quantities OR large range of customizable features
(forms of flexibility) - CORRECT ANSWER-1. Product or Customization flexibility
2. Volume Flexibility (coping w demand changes, large and/or small orders)
3. Mass customization (both customization and volume flexibility)
Aspects of FLEXIBILITY (competitive priorities) - CORRECT ANSWER--DESIGN
FLEXIBILITY
-MATERIALS/ PARTS FLEX (can material be used for number of different end
items?)
-FACILITY FLEXIBILITY (producing multiple items in 1 factory)
Supply chain management- - CORRECT ANSWER-Efficient integration of:
-Suppliers and manufacturers
-transporters, distribution centers, warehouses
-Retailers and all other parties associated tasked with the successful devivery of
final product/service
Primary goals of Corporation - CORRECT ANSWER--Sustain Long-term profits
-Maximize Return on Investment (ROI)
How to do it? make money, avoid waste
Profit formula - CORRECT ANSWER-Revenue - Cost
(SC costs: materials, labor, energy, transportation, packaging, storage, defects,
insurance)
ROI formula - CORRECT ANSWER-Profit / Investment
Aspects, formula of Value (customer perspective) - CORRECT ANSWER-What
do I get (Quantity, quality)
------------------------------------
What is the price? (money, time)
-Trust, quality, way company presents self
Aspects, formula of Productivity (Organizational Perspective) - CORRECT
ANSWER-What did I make? (Outputs)
-------------------------------
What was the cost (Inputs)
-Dont want to waste things.
The 4 Competitive Priorities - CORRECT ANSWER-1. Cost
2. Quality
3. Speed/time
4. Flexibility
, Aspects of COST (competitive priorities) - CORRECT ANSWER--Material Cost
-Production Cost
-Packaging
-Quality Costs (returns repairs)
-Customer service cost
-Other (marketing, finance, waste disposal, rent, insurance, legal etc)
Aspects of QUALITY (competitive priorities) - CORRECT ANSWER--Design
Quality
-Material and production quality
-Quality level delivered (how it looks when delivered)
-Consistent quality (builds trust)
-Service quality (sales, support, repairs)
Aspects of TIME (competitive priorities) - CORRECT ANSWER--Delivery time,
Lead Time (pizza industry)
From order placement to order fulfillment... includes supplier delivery times,
manufacturing time, transport times, waiting time...
-On Time Delivery (Airline industry)
Reliability vs. Speed... Percentage of time delivered when promised, staying on
schedule
-Fast, accurate, or both? Whats important in your industry
Types of FLEXIBILITY (competitive priorities)
-Companies offer large quantities OR large range of customizable features
(forms of flexibility) - CORRECT ANSWER-1. Product or Customization flexibility
2. Volume Flexibility (coping w demand changes, large and/or small orders)
3. Mass customization (both customization and volume flexibility)
Aspects of FLEXIBILITY (competitive priorities) - CORRECT ANSWER--DESIGN
FLEXIBILITY
-MATERIALS/ PARTS FLEX (can material be used for number of different end
items?)
-FACILITY FLEXIBILITY (producing multiple items in 1 factory)
