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Summary Supply chain 2, Y1
- Instelling
- Avans Hogeschool (Avans)
All weeks and concepts in
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Summary of Supply Chain 2-All weeks and concepts in-
,w1: Elements of business
structural element: are tangible resources, like buildings, equipment, information technology.
require large capital investments that are di cult to reverse, high cost and in exible, elements are
changed infrequently.
Infraestructural elements: is people, policies, decision rules, organisational structure, choices
made by the rm. One of two major decision categories addressed by a strategy.
Strategies are the mechanisms by which businesses coordinate their decisions regarding their
structural and infrastructural elements. integrating among them
Mission statement: explains why an organization exists. It describes what is important to the
organization, called its core values, and identi es the organization’s domain.
Business strategy: The strategy that clearly identi es a rm’s targeted customers and sets time
frames and performance objectives for the business.
core competency: An organizational strength or ability, developed over a long period, that
customers nd valuable and competitors nd di cult or even impossible to copy.
Functional strategy: A strategy that translates a business strategy into speci c actions for
functional areas such as marketing, human resources, and nance. Functional strategies should
align with the overall business strategy and with each other.
Operations and supply chain strategy: A functional strategy that indicates how structural and
infrastructural elements within the operations and supply chain areas will be acquired and
developed to support the overall business strategy.
strategic alignment: When the di erent levels of the strategic planning process t together well, an
organization is said to have good strategic alignment. A rm’s strategies should also be aligned
across the functional areas.
Operations and supply chain decision categories:
structural decision categories: capacity, facilities, technology
infraestructural decision categories: organization, sourcing decision and purchasing process,
planning and control, business proceses and quality management, and product and service
development.
—————————————-
Customer value: The organization that provides the best mix of these dimensions will be seen as
providing the highest value.
Value index: A measure that uses the performance and importance scores for various dimensions
of performance for an item or a service to calculate a score that indicates the overall value of an
item or a service to a customer.
Four performance dimensions, for trade o :
1 quality , 2 time, 3 exibility, 4 cost
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, 1 Quality: characteristics of a product or service that bear on its ability to satisfy stated or implied
needs.
A. performance quality: the basic operating characteristics of the product or service
B. conformance quality: addresses whether a product was made or a service performed to
speci cations.
C. reliability quality: addresses whether a product will work for a long time without failing or
requiring maintenance.
2 Time: two basic characteristics: speed and reliability
A. delivery speed: how quickly the operations or supply chain function can ful ll a need once
it has been identi ed.
B. delivery reliability: the ability to deliver products or services when promised. A rm can
have long lead times yet still maintain a high degree of delivery reliability. Typical measures
of delivery reliability include the percentage of orders that are delivered by the promised
time and the average tardiness of late orders.
C. delivery window: the acceptable time range in which deliveries can be made
3 Flexibility: A performance dimension that considers how quickly operations and supply chains
can respond to the unique needs of customers. It can compete by responding to the unique
needs of di erent customers. Both manufacturing and service rms can demonstrate exibility.
Flexibility has become particularly valuable in new product development.
A. mix exibility: the ability to produce a wide range of products or services
B. changeover exibility: the ability to provide a new product with minimal delay
C. volume exibility: the ability to produce whatever volume the customer needs
4 Cost: “cost” covers such a wide range of activities that companies commonly cate- gorize costs
in order to focus their cost management e orts as: labour cost, material cost, engineering cost,
quality related costs (including failure costs, appraisal costs, and prevention costs)
——————————————-
Trade o s: decisions to emphasize some dimensions at the expense of others, To make logical
and consistent decisions, operations and supply chain managers must understand which
performance dimensions are most valued by the rm’s targeted customers and act accordingly.
Order winner: performance dimensions that di erentiate a company’s products and services from
those of its competitors, providing superior levels of performance.
Order quali ers: performance dimensions on which customers expect a minimum level of
performance. Superior performance on an order quali er will not, by itself, give a company a
competitive advantage.
W2 W3 - CHAPTER 8
logistics management: that part of supply chain management that plans, implements, and
controls the e cient, e ective forward and reverse ow and storage of goods, services and
related information between the point of origin and the point of consumption in order to meet
customers’ requirements. Companies depend on their logistics systems to move goods and
materials among supply chain partners and to manage the information ows necessary to carry
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