Term
| What are the basic responsibilities of a supply chain? |
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Definition
| Meet customer demand, contribute to profitability, continuous improvement |
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Term
| Define: front-end, back-end, upstream, downstream |
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Definition
| Front-end: visible to the user. Back-end: out of sight. Upstream: towards the suppliers. Downstream: towards the customers |
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Term
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Definition
| A process when items are assembled and shipped to retailers, then sold. |
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Term
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Definition
| When separate parts are brought together and assembled after a customer orders it. |
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Term
| What are the cons in using a push system? |
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Definition
| CONS: high inventories, low flexibility, forecasting miscalculations can be costly |
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Term
| What are the pros of using a push system? |
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Definition
| High inventories, shorter lead times, mistakes and defects are tolerable |
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Term
| What are the pros of using a pull system? |
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Definition
| Low inventories (low holding costs), make only what is required (demand driven system), flexible manufacturing, closer supplier ties are developed |
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Term
| What are the cons of using a pull system? |
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Definition
| Low inventories (high ordering costs), risky customer service rates (vulnerable to spikes in demand and errors), tougher sell (customization requires customers to be educated), forecasting miscalculations can be costly |
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Term
| Difference between "old-school/American" manufacturing and Lean manufacturing? |
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Definition
American: push; Lean: pull
American: inventory necessary, high; Lean: evil, minimize
American: Quality Control: defects inspected out; Lean: Quality at the source
America: Suppliers are adversaries; Lean: Suppliers are partners
American: Company dictates what market will offer; Lean: Customer dictates what supply chain must produce
American: Best is always best; Lean: Best today won't be best tomorrow |
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Term
| Difference between "old-school/American" manufacturing and Lean manufacturing? |
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Definition
American: push; Lean: pull
American: inventory necessary, high; Lean: evil, minimize
American: Quality Control: defects inspected out; Lean: Quality at the source
America: Suppliers are adversaries; Lean: Suppliers are partners
American: Company dictates what market will offer; Lean: Customer dictates what supply chain must produce
American: Best is always best; Lean: Best today won't be best tomorrow |
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Term
| What are the primary goals of JIT systems? |
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Definition
| The philosophy is that inventory is evil (must reduce it), eliminate all kinds of waste (quality comes from the source, minimize inventory & overproduction, minimize waiting time), continuous improvement (we can always improve), intelligent and flexible human resources required. Tends to be pull-oriented. |
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Term
| Why is JIT system more of a philosophy than a checklist? |
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Definition
| Because not everything in a JIT system will apply to everyone. Just use what can work for your company. |
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Term
| Why is Japanese JIT different than American? |
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Definition
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Term
| What are the essential elements of a JIT system? |
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Definition
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Term
| How do the pictures in the slides represent a push system vs. a pull system? |
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Definition
| They provide a way to visually see how items are produced and assembled in a supply chain and in what order, depending on the system used. |
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Term
| How are time, quality, flexibility, and cost traded off in the two different systems? |
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Definition
| Time (amount of automation, maximum output/capacity required, line balancing, bottlenecks, lead times), flexibility (volume flexibility vs. customization flexibility, automation and/or workforce capabilities - postponement), quality (consistency and high performance - training, automation, jidoka - everyone is responsible for quality), cost (inventory, defects, loss, damage, labor, facilities, packaging, product, service, support system) |
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Term
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Definition
| It is the delaying of the final assembly of an end item. Often used for customization of the item. You push the standardized portions of the manufacturing, and pull the customization options. |
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Term
| How do shrinkage and shortcomings cause inefficiencies? |
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Definition
| They require more products to be made, making it more costly to produce items to make up for shrinkage and shortcomings. ALWAYS START FROM THE FRONT END OF THE SUPPLY CHAIN AND WORK BACKWARDS. |
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Term
| What are the pros and cons of centralizing warehouses? |
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Definition
Pros: Lower required stock levels. Less likely to stock out. Warehouse operating cost decrease.
Cons: Distance/responsiveness, Transportation costs |
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Term
| What is the bullwhip effect? |
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Definition
| Very high and very low supply levels despite fairly constant demand levels. |
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