Logistics & Supply Chain Management short only questions

Which statements regarding the Customer Decoupling Point are true, and which are false?

1. With "Assemble-to-Order," the first manufacturing steps begin after receipt of customer orders.: False
2. The order-anonymous pre-production of individual parts and assemblies enables "Assemble-to-Order.": True
3. With "Make-to-Stock," product development only begins with customer inquiries.: False
4. The Customer Decoupling Point represents the start of the sales order related activities.: True

Which statements regarding the SCOR Model are true, and which are false?

1. By way of the SCOR model, the partners involved in integrated supply chains can be analyzed, and, if necessary, optimized based upon the analysis.: True
2. The SCOR identifier "R2" indicates an enabler process.: False
3. Transport processes for Returns can be found under the letter D (Delivery).: False
4. The SCOR identifier "M1" indicates a make process.: True

Which statements regarding a Transformation Process are true, and which are false?

1. In the transformation process "emergency room of a hospital" patients are an input.: True
2. "Operations" describes the transformation process from inputs and production factors to outputs.: True
3. Information is combined with expert knowledge in "Operations" and thus gains substance.: True
4. Production factors are exclusively raw materials, goods and knowledge.: False

Which statements regarding Operations Management, respectively "Operations," are true, and which are false?

1. "Operations" does not belong to the entrepreneurial core processes.: False
2. Operations Management is the planning and operation of the order fulfillment process (operations process) for the production of goods and services.: True
3. The task of "Operations" is to provide services to the customer on time and in the expected quality.: True
4. "Operations" creates the sales plans for production planning.: False

Which statements regarding the Funnel Model in production are true, and which are false?

1. The funnel model views the transformation process as a "black box.": True
2. Inventory can be derived from entries and exits.: True
3. Performance (Lm) describes the average inventory in the system.: False
4. The funnel model represents a waiting system.: True

Which statements regarding the Customer Decoupling Point are true, and which are false?

1. In Retail trade, the customer decoupling point is particularly close to the customer.: True
2. The customer decoupling point represents the start of the sales order related activities.: True
3. In banking there is no customer decoupling point.: False
4. The customer decoupling point is determined by market requirements and product structure.: True

Which statements regarding the magic pentagon are true, and which are false?

1. Quality is measured against the customer expectations.: True
2. Reliability is measured as delivery reliability resp. delivery dependability.: True
3. Flexibility means to deviate from standards, if necessary (for the fulfilment of the customer request).: False
4. Speed is very subjective and, therefore, not representable with scales.: False

Which statements regarding Manufacturing Execution Systems (MES) are true, and which are false?

1. An MES is characterized by by the uniform management of the various corporate areas.: False
2. An MES connects an ERP system with the various process automation systems.: True
3. An MES requires the continuous acquisition of production data (PDA), machine data (MDA) and personnel data: True
4. An MES works with real-time information exchange.: True

Which statements regarding the Funnel Model are true, and which are false?

1. Using the funnel formula, any work system can be interpreted as a warehouse in which the range of coverage is the quotient of inventory and consumption.: True
2. Incoming orders, together with the already waiting orders, form the inventroy before the work system.: True
3. If inventory increases, the lead time decreases (with constant order receipt).: False
4. If inventory increases, throughput time increases as well (with constant entry into stock).: True

Which statements regarding Operations Strategies are true, and which are false?

1. Series production contains a basic product with a higher product variety (e.g. car)).: False
2. Mass production means highly automated production processes and no, or only a few, product variants.: True
3. As a general rule, the number of variants usually decreases with increasing quantities.: True
4. Series production is characterized by more variants than variant production.: False

Which statements regarding the SCOR Model are true, and which are false?

1. The SCOR model (Supply Chain Operation Reference Model) was developed with the aim to standardize the processes within a supply chain.: True
2. The SCOR model is only a recommendation for action.: False
3. The fourth level contains the process types: Planning, Execution and Infrastructure: False
4. The SCOR model is divided into the levels "Top-Level", "Configuration-Level", "Process- Element Level" and "Implementation Level".: True

Which statements regarding the SCOR model are true, and which are false?

 

1. The return flow of defective products or surplus articles is not depicted in the SCOR model.: False
2. On the configuration level, the process areas of the first level are broken down into process categories.: True
3. An example for the process area "Enable" is risk management.: True
4. On the design level, the process categories are broken down into process elements.: True

Gross demands + additional demands + (reservations) - (stock on hand + open quantities) = net demand

There is Gross demand

And Net demand.

Methods to plan are

• stochastic (consumption driven)
• Deterministic (demand control)
• Heuristic (estimation and approximation)

• Gross demand: Period-related total requirements for raw materials and parts
  •  for the production of all finished products in one period –
  • Quantity determination using Bill of Materials (BOM, components and raw materials)
• Net demand: Quantity of components to be procured (purchasing and in-house production of parts)
  • Consideration of additional requirements, reservations and stock on hand
    •  Add: Additional requirements based upon experience regarding possible rejections and scrap
    • Add: Reservations (pre-bookings): secure availability for expected future orders
    • Subtract: Existing stocks and safety stocks
    • Subtract: Quantities from open purchase orders

Advanced planning and scheduling refers to a manufacturing management process by which raw materials and production capacity are optimally allocated to meet demand. APS is especially well-suited to environments where simpler planning methods cannot adequately address complex trade-offs between competing priorities

Information systems that support the APS approach are referred to as APS systems.

• In addition to the functionality of PPS systems, APS systems contain functions for integrating business partners.
• APS systems are often offered as function modules for ERP systems. In some cases, APS systems also consist of several individual ERP modules, which can be put together as required

Quality includes functions, sevices, perceived values and benefits to the customer.
Quality can be assessed with 5 different views.
 

1. Transcedent view: quality is abosute and universally recognizable: "Made in Switzerland"
2. Product-related view: percise and measurable: life of a battery
3. User view: eye of the beholder: customer requirements are met
4. Process view: is adherence to specifications: compliance with defined process requirements: batch traceability
5. Price/benefit view: expressed by costs and prices: accepted price-performance ratio: reflected by ratings and reviews.

Total quality management consist of organization-wide efforts to install and make permanent climate where employees continuously improve their ability to provide on demand products and services that customers will find of particular value.

For the implementation of TQM, a company must implement the following activities:

• Manifestation of clear principles and evaluation criteria to increase quality
• Introduction of a continuous improvement process
• Implementation of a quality management system
• Determination of organizational responsibilities

Kaizen is often considered to be the "building block" of all lean production methods. Kaizen focuses on eliminating waste, improving productivity, and achieving sustained continual improvement in targeted activities and processes of an organization.

Kaizen means the good change and is a continuous improvement approch. Good processes bring good results, speak with data, manage by facts, take action to contain and correct root causes of problems.

Lean is focused on eliminating waste. Without kaizen there is no lean transformation.

1. Affinity diagram
2. Relations diagram
3. Tree diagram
4. Matrix diagram
5. Portfolio diagram
6. Problem-decision-plan
7. Network diagram

1. Error list
2. Histogram
3. Quality control chart
4. Pareto-Diagram
5. Correlations
6. Cause-Effect-Diagram
7. Brainstorming

For functional production planning, materials are divided into demand (requirements) types.

• Primary demand: finished (and saleable) products
  • Sales planning and forecasts for customer orders
  • Forecasts for spare parts
• Secondary demand: assemblies, components and raw materials
  • Bill of materials (BOM) derived from the primary demand, see the following slides
• Tertiary demand: lower value materials (indirect goods: consumables and supplies, cf. Block 2)
  • Planning on the basis of experience or estimates
    • No logical or direct dependence upon the finished product necessary

• Gross demand: Period-related total requirements for raw materials and parts
  • Quantity determination using Bill of Materials (BOM, components and raw materials) 
• Deterministic methods (demand control)
  • Secondary (dependent) requirements are planned on the basis of quantities, throughput-times and delivery dates
  • The BOM (Bill of Materials, containing primary requirements) provides concrete requirements for assemblies, parts and raw materials

Lean methodology:

1. Deliver value from your customer's perspective
2. Eliminate waste ( whatever isn't bringing value to the end product)
3. Continuous improvement.

Lean management means that you need to have respect for people and continuous improvements.

Principles of lean management: all around customer needs

1. Identify value
2. Map the value stream: map workflow of company
3. Create flow: ensure that team's workflow remains smooth.
4. Establish pull: work is only pulled if there is a demand for it.
5. Continuous improvement

Benefits of lean management:

1. Focus on activities that bring value
2. Improving productivity & efficiency, when focused then employee will be more productive and effecting cause there are less distractions
3. Smarter process (pull system). Be able to deliver work only if there is an actual demand
4. Better use of resources

• Instead of just maintaining (process) innovations, we continuously develop them further until the next innovation leap.
• Improvement of processes through continuous problem identification.
  • Management and employees have a common interest in the success of the company.
  • Management and employees look for and solve problems together.
  • Management and employees decide together on mostly smaller preventative measures.

Kaizen requires a consistent methodical approach PDCA cycle (also Deming cycle):

• P-Plan: Identify problem (error), analyse and seek improvements.
• D-Do: Implement and test improvement suggestions.
• C-Check: Check and compare the performance of improvement suggestions.
• A-Act: Implement best proposal and document as standard.

Standard becomes binding specification for all employees involved in the process. Deviations from a standard are only permitted if all employees have agreed on a new standard

A cause-and-effect diagram is a tool that helps identify, sort, and display possible causes of a specific problem or quality characteristic. It graphically illustrates the relationship between a given outcome and all the factors that influence the outcome.

To create one:
write down the main issues and describe how they are created.

 

Which statements regarding Lean Management are true, and which are false?

1. From a Lean Management perspective, wasteful activities waste time, effort or need space, but do not increase the value of the product.
2. From a Lean Management point of view, employee's vacation is waste.
3. From a lean management perspective, overproduction is waste.
4. Unnecessary movements are, from a Lean Management point of view, waste.

Which statements regarding "Total Quality Management" (TQM) are true, and which are false?

1. TQM can be seen in three levels; on the top level is the "process effectiveness".
2. TQM also means the development away from traditional quality control to a true quality management
3. TQM can be viewed on three levels, on the top level is the "process efficiency".
4. TQM also means the development away from traditional quality management to a real quality control

Which statements regarding «Advanced Planning and Scheduling» (APS) are true, and which are false

1. Sales planning is a topic for marketing and not for APS.: False
2. The Availability check is a topic for procurement and not for APS.: False
3. APS covers the entire supply chain (from procurement to sales) and involves suppliers and business partners.: True
4. "Material Requirement Planning" and "Production Planning and Scheduling" are functionality that can also be covered by APS.: True

Which statements regarding Requirements Planning are true, and which are false?

1. Gross requirements are determined on the basis of demand planning: True
2. Net requirements result from gross requirements plus inventories: false
3. Net requirements are determined on the basis of demand planning: false
4. Net requirements result from gross requirements plus additional requirements and reservation minus existing inventory and open order quantities: true

Which statements regarding the term Quality are true, and which are false?

1. Transcendental perspective on quality means that it is precise and measurable.: False
2. The process-oriented perspective of quality means complying with specifications.: True
3. User-oriented perspective means that quality is in the eye of the beholder and to a lesser extent determined by product properties.: True
4. There are exactly three perspectives on quality.: False

Which statements regarding Requirement Types are true, and which are false?

1. Sales plans and forecasts for customer orders are used to determine tertiary requirements.: False
2. Under tertiary requirements are understood to be low-value materials (indirect goods: auxiliary materials and operating materials).: True
3. Estimates are often used to determine tertiary needs.: True
4. Parts lists (bills of material) are used to determine tertiary requirements.: False

Which statements regarding Demand Planning are true, and which are false?

1. Suitable planning methods are determined based upon the value of the products and the uniformity of consumption.: True
2. Suitable planning methods are determined based upon the durability of the products and the price level.: False
3. Suitable planning methods are determined on the basis of the size of the products and the price level.: False
4. Suitable planning methods are determined based upon the durability of the products and the level of consumption.: False

Which statements regarding Requirement Types are true, and which are false?

1. For the determination of dependent requirements, Bills of Material (BoMs) are used.: True
2. To determine dependent requirements, the system often uses estimated values.: False
3. For the determination of dependent requirements, sales planning and forecasts for customer orders are used.: False
4. Among dependent requirements are assemblies, components and raw materials.: True

Which statements regarding the term Quality are true, and which are false?

1. The understanding of quality does not need to be differentiated for products and services.: False
2. For services, customers often do not know in advance whether the quality meets their requirements.: True
3. Quality is understood differently for products and services.: True
4. The quality of products can often be assessed objectively and directly from the outset.: True