Supply Chain Management Test Notes

Topics: Supply chain management, Management, Supply chain Pages: 17 (4243 words) Published: October 28, 2012
*1) SCM Core Processes
Supply chain management (SCM) – Planning and control of all activities across the supply chain—a network of companies that buy, produce, move, store and transform materials into finished products and services for eventual consumption by the end-user (customer).

**Supply Chain Core Processes** Five Core processes
Plan – The strategic design (production process selection, location, staffing). Source – Select suppliers (quantity, quality, cost, and delivery). Make – Transformation process optimization (resources, throughput, and schedule). Deliver – Logistics optimization (transportation, distribution, and customer service). Return – Reverse logistics/closed-loop supply chains (3R’s – recycle, remanufacture, & retire) *2) Competitive Strategies

Differentiation – business focuses on achieving superior performance in one of the dimensions listed in previous section. // it can try to be the service leader, the quality leader or the leader in other dimensions such as reliability or performance, but it is not possible to be all of these things.// Many companies believe in concentrating on only one central benefit. Increasing number of claims for a brand may result in disbelief in the marketplace.

Positioning – is defining a point in the consumers’ mind about what you do and who you are. Positioning is a very important tool in determining competitive strategies. Every aspect of product, price, place, & promotion must support the chosen positioning strategy. Examples, Mercedes promotes great engineering, Crest toothpaste constantly promotes its anti-cavity protection. – If two or more companies position themselves as the best o the same benefit, then double benefit positioning may be necessary. Supply Chain Strategy – Consists of developing a long-term plan for determining how to best utilize the resources of the organization to implement and support the firm’s long-term business or corporate strategy. Should be consistent with the overall organization’s strategy and the firm’s competitive priorities. Business or Corporate strategy – Provides vision, establishes future goals, and keeps the organization moving in the right direction consistent with the company’s mission. Defines how the company is going to get there.

*3) Three paragraphs on ERP- what we are trying to accomplish Enterprise Resource Planning (ERP) systems – A key motivation for implementing an ERP system is the ability it provides an organization to synchronize and automate the flows of material, process, information, & cash throughout the supply chain. /seen as enabling technology to achieve better supply chain integration, which often results in improved financial performance/ became well known after German company SAP introduced it/

*4) CPM & PERT- Differences between
Critical Path Method (CPM) – Two independent techniques for project management were developed, in mid50’s one by DuPont for their chemical plant maintenance project. / is a mathematically based algorithm for scheduling a set of project activities. It is an important tool for effective project management. / Program Evaluation & Review Technique (PERT) - is a network model that allows for randomness in activity completion times. PERT was developed in the late 1950's for the U.S. Navy's Polaris project having thousands of contractors. It has the potential to reduce both the time and cost required to complete a project. - Critical Path Method (CPM) The length of time each activity in the project will take is known with certainty. Therefore, the completion time of the entire project can be calculated with certainty (Deterministic).

- Program Evaluation & Review Technique (PERT) – The length of time each activity will take is not known with certainty, but is instead estimated. Therefore, the project completion time cannot be calculated with certainty. Completion time is expressed with probability distribution (Probabilistic or Stochastic)

*5) Section on outsourcing-know...
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