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Trends in Supply Chain Management
When supply management costs become more ________, their control becomes more _______
_________ purchasing results in lower costs because of the availability of purchase quantity discounts.
Six sigma suppliers focus on three things. Which of the following is not one of those?
Supplier lead time affects a firm s flexibility and service to its own customers. Firms that compete in ________ markets and face rapidly changing ________________ require greater flexibility than firms competing in _______ markets
The buyer must ensure that the ___________ of material is purchased to satisfy the demand; otherwise, ___________ may occur, resulting in _______ customer service.
Right quantity / shortages / poor
The managers of integrated materials systems have two objectives:
______ suggests the unexpected, which means the need to patch up or replace equipment components that we don t expect to fail. Usually the parts are not carried as inventory by the equipment manufacturer.
(TF)Depending on the performance and strength of the dollar, goods can cost American firms different amounts from what’s expected.
change attitudes / nurture long-term
E-Procurement benefits by category are: Indirect, Direct, and __________
the total cost of implementing these systems
the difficulty of realizing savings during the development and deployment phases of the transition
the cost of training employees
computer compatibility between the sender and receiver
subscription to a common network
scope of contract
top management support, commitment to the project, influence, and institutionalization.
keep a valued trading partner or customer
gain new customers or trading partners
the cost savings
to be known as a leading-edge company
Radio frequency identification, or RFID
multiple-sources / single-source
specifying product attributes
forecasting expected requirements
ensuring the right quality at a reasonable price
The second group of methods used to reduce the number of suppliers a firm uses is what the textbook refers to as the _________ methods.
core competency concept
people, facilities, equipment, technology,
Two factors driven by power and critical to the partnership dyad are commitment and trust. Commitment may be defined as the perception of being emotionally impelled.
emulate these supplier alliances
incompatibility of actual or desired responses
planning and mutuality
operational information exchange
A final point on the effects of power concerns the ultimate ______________ of the supply chain members as well as the supply chain itself.
performance and subsequent profitability
Performance may be defined as the ability to ________________.
execute intentions and goals
supply chain partnerships
Also termed a __________, a supply chain partnership is a relationship formed between two independent entities in supply channels to achieve specific objectives and benefits, and it is these partnerships that form the essential building blocks of _______________ management.
strategic alliance / supply chain
Within the win-win partnership dyad, buyer and supplier share goals as well as inherent risks through joint planning and control, seeking to create a supply chain with increased information flow and enhanced loyalty. Like the overall goal of supply chain management, such coordination allows for ________________________.
product design with decreased cost
partnering / partnership
Although many firms engage in partnering activities, the specific interpretation of a ___________ or partnership is at best vague.
Supply chain partnerships bridge the barrier between buyer and seller, leading manufacturers to ________________.
ally with a reduced supplier base
Some supply managers argue that implementation of many new manufacturing techniques necessitates _______________________.
a reduction in the number of suppliers
Despite the differences in opinions about the size of the supplier base, the major issue remains that a closer relationship with suppliers facilitates
a reduced number of suppliers
The objective of a drastically ____________ base precludes an acceptance of supplier partnerships because a firm must accept dependence upon _____________ before they can internalize legitimate forms of supply chain management and supplier partnerships.
reduced supplier / fewer suppliers
A Harvard Business School study concluded that a key driver in the decline of U.S. competitiveness in the international marketplace has originated from investing _______________, such as supplier relations.
less in intangible benefits
Over recent decades, firms within the supply chain have begun to realize the advantages enjoyed from sharing of technology, information, and planning with other firms. Even competitors, and many modern business thinkers will claim that not only is a more open and relational attitude advantageous, but actually essential and inevitable in maintaining ___________________.
a competitive advantage
While many firms have sought ___________ through acquisition to harness supplier expertise, some argue that _____________ can provide similar benefits without the necessity of ownership and arduous exit barriers.
vertical integration / partnerships
With its many benefits, supply chain partnerships retain several inherent risks that can be potentially damaging to participants. First and foremost, heavy reliance on one partner can be disastrous if the partner _____________.
does not meet expectations
Guides to the implementation process are summarized below, with one exception. Which one is not one of the steps?
Reward partner for superb quality and service
A healthy long-term relationship between suppliers and manufacturers is becoming more and more important and can result in ___________________.
reduced transaction costs
Although the basic ideas of TM are simple, the ___________ procedures are complex and can be difficult to __________.
statistical / implement
Customer expectations include 1) fabrication, 2) appearance, 3) maintainability, and 4) reliability.
Each buying firm must specify in detail the agreed-upon quality targets. As an example, at a minimum, the following four issues should be addressed in any purchasing contract: PPM target agreement, Field failure and reliability requirements, Warranty agreement, Urgency to solve problems
Effective _____ requires the integration of production planning, marketing, engineering distribution, and field service.
Implementing TQM also requires the following: Negotiating __________ requirements. Developing a supplier specification that details ___________ requirements and expectations. Determining the necessary activities required to fulfill those requirements and ____________.
customer / customer / expectations
Implementing TQM requires the following: Defining the _______. Identifying systems ________. Identifying systems ________.
mission / output / customers
In order to qualify for the (Malcolm Baldridge) Award, applicants must address the following categories: 1. Leadership 2. Information and analysis 3. Strategic quality planning 4. Human resource development and management 5. Management of process quality 6. Quality and operational results 7. Customer focus and satisfaction
In order to successfully achieve a __________, buying and supplying organizations must continuously improve their processes.
zero defect target
Intensive price competition and information technology have led to the implementation of a ______________ procurement approach for commodity components.
(T/F)MBO is an innovative way of thinking that affects the culture, the strategy, and the technology of a company.
SPC uses two control charts to ensure quality in manufacturing: the sample mean (X-bar) chart and the sample range (R) chart. The control chart limits are established for X-bar and R charts based upon tolerances set during the design stage of the product. In most cases, problems are ________________ before any ___________ parts are produced, thus reducing scrap and rework
diagnosed and resolved / substandard
Setting the ___________ criteria is usually based on either predetermined standards or basic statistics.
Six-sigma suppliers focus on all of the items listed below with one exception. Which one is the exception?
Improvement of profit margins
The ______ suppliers usually get the long-run demand forecast and are involved in the manufacturer s product development.
The ________ method (TM) addresses design and engineering (offline) as well as manufacturing (online) quality. This fundamentally differentiates TM from SPC, which is purely an online quality control method.
The _________ suppliers usually get a small volume of business and do not have a close working relationship with the manufacturer.
The __________ method (TM) nicely complements many of the advantages of SPC.
The ___________ evaluation is an assessment of the supplier s actual performance on a variety of criteria, such as delivery reliability, cost, quality defect rate, etc.
The ____________ approach to manufacturing process control is to select production samples and compare the attributes of the sample to the specifications.
The ____________ is actually the average distance a normal point is from the mean. Thus, the ____________ represents a more tractable measure of the variance.
The ability to identify errors before they occur recycles scrap material, improves downstream inspections, and will promote profitability.
The buyer s evaluation of the supplier s performance is a catalyst for the supplier development activities. There are two main categories for the supplier evaluation. Identify the two correct evaluations.
process-based evaluations and performance-based evaluations
The most severe penalty for poor quality expectations is (are) ____________. If the quality of the inputs to the productive system is inferior, the final product will be inferior.
the loss of sales
The new or modified part agreement between the buying and the selling firm is usually complete after ________________________ has been _____________.
an acceptable final test sample / generated and verified
a description of the required output / consumer
The suppliers ___________ systems must be consistent with the in-house quality requirements of the __________.
There are major quality awards that ensure that suppliers are TQM effective. The most universally known quality awards are the ____________ and the ________________ National Quality Award.
Deming Award / Malcolm Baldridge
Without high-quality raw materials or component parts from suppliers, a (n) _____________ program will not be successful.
______ reaches much wider than the traditional quality view of incoming inspection and process control it means that the entire organization is working as a team, including top management and each and every employee.
________ is a way to measure supplier quality. Supplying firms that follow the core philosophy of _________ will make excellent strategic partners.
Six sigma / six sigma
_________ is a set of standards that document the implementation of a quality program. In order to be certified, suppliers need to provide documentation to an external examiner that they meet the ________ requirements. Once a firm is certified, it will be listed in a directory so that all of its potential customers can know which firms have been certified and to what level.
ISO 9001 / ISO 9001
_________ standards can be applied to both manufacturing and service firms using the same methodology. SPC provides input to the _________ approach.
Six-sigma / six-sigma
___________ components are those components not defined as strategic components.
_____________ must be developed to determine the disposition of a lot of raw materials on component parts. If a batch of parts is inferior, it should be rejected and returned to the supplier.
______________ (QFD) focuses on how businesses develop high quality products for (their) customers. QFD is driven by cross functional market research. This is the process of understanding customer expectations, and how well providers of products address these expectations
Quality Function Deployment
______________ is a methodology used to determine whether to accept or reject a batch of non-strategic components or items.
_______________ (QFD) is a methodology for collecting customer information to drive product development.
Quality Function Deployment
________________ is still one of the hottest topics in the business world today.
Total quality management (TQM)
_____________________ is known as the father of the Japanese post-war industrial revival and was regarded by many as the leading quality guru in the United States.
Dr. W. Edwards Deming