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business
total quality management
Logistics Management And Strategy Competing Through The Supply Chain 3rd Edition Alan Harrison , Remko I. Van Hoek - Solutions
Call-off requirements: does the customer (for example) alter schedules with no notice, require JIT delivery against specified time windows, or require synchronised deliveries of major subassemblies to the point of use?
The attitude to capacity planning: is this seen as the supplier’s problem, as a problem for the buyer (tactical make/buy/additional sources), or as a shared strategic issue?
The nature of electronic collaboration: is it transactional, information sharing or collaborative?
How sourcing decisions are made: is it, for example, competitive tender, auctions, supplier accreditation, and sole source?
What the order winners are: for example, price, product range, technology advantage, superior product quality.
Would there be any benefits to the manufacturer?
Do you consider that the reasons given for not scaling up the pilot are valid?
Suppose that the retailer’s total sales were €20 bn, and that the ten skus together accounted for 0.4 per cent of these sales. Calculate the approximate savings in inventory to the retailer.
per cent of the US market in the last five years. Clearly, this is a major issue within P&G. What are the logistics pros and cons of sku proliferation?
to
Procter & Gamble’s major laundry brand in the US is Tide. This is marketed in some 60 pack presentations, some of which have less than 0.1 per cent share. The proliferation of these pack presentations is considered to have been instrumental in increasing Tide’s market share from
Cutting down on range, new items and promotions is presumably going to lead to‘everyday low prices’. Does this mean ECR is lean thinking by another name?
Identify potential barriers to executing the proposed apparel ‘supply chain of the future’.
Summarise the ‘current state’ problems that are typical of the apparel industry, and their implications for supply chain integration.
key aspects of managing the supply chain.
ways to improve responsiveness to the end-customer;
the benefits of collaboration within supply chains;
develop a framework for managing the supply chain.
identify methods for implementing collaborative planning between supply chain members;
show how the management of supply chains can be leveraged by improving new product introductions, promotions, product ranges and replenishment;
explain the need to coordinate processes, and the opportunities for collaboration between partners within supply chains;
per cent of the titles,’ the operations director argues. ‘We could chop our costs in half and only lose 5–7 per cent of the business. Think of the effect on margin!’Sales, on the other hand, are reluctant to give up any of the titles, arguing that it is customer choice that drives the
per cent of our business comes from just
Refer back to Figure 2.1 in Chapter 2: it shows a Pareto curve for the sales per sku of a book stockist. A small number of ‘hot sellers’ constitute most of the sales, while there is a lengthy tail of slow-selling lines and new introductions. The operations people are pressing for the ‘tail’
Explain the difference between surge and base demands. Multi Electronique SA (ME)produces a range of electrical connectors for the automotive industry. Currently, the six production lines at its factory in Toulouse are fully loaded, operating a three-shift system for five days per week. One of
Figure 7.9 shows a demand series for a high-volume grocery product with a comparatively stable demand. The vertical lines mark the end of each trading week, which is Sunday midnight.Suggest key features of this trading pattern. The retailer now wishes to implement two stock-replenishment
series.To what extent would lean and agile mindsets contribute to the support of such products in the marketplace?
Suggest order winning and order qualifying criteria for the following product environments:a reprocessing nuclear fuel;b upstream petroleum refining;c downstream manufacture of petroleum products;d premium automotive products such as Land Rover Discovery or BMW
A lack of clear implications for service (what does a 3.75 mean in comparison to a 3.95 score?)
What is the value of individual responses averaged out? (innovators, key accounts, marginal accounts?)
Who is speaking? There are many different voices within the customer organisation.
What opinions and strategies are behind subjective measures?
Averages scores hide extremes at the end (problems and excellence).
Are the people ordering shipments aware of the cost of rush orders and are they asked to organise shipment around real and explicit customer requests?
Are there hard revenue forecasts related to promotion requests that can be evaluated?
Does the organisation have a process for reviewing the product portfolio at least annually?
Has the organisation conducted an analysis of revenue contribution by sku?
Are promotions and resulting short-term peaks in demand a way to boost short-term revenue, or a way to raise long-term sustainable revenue growth?
Does every shipment really need to be a rush shipment or can some shipments be allowed a bit more time and consolidation with other shipments in cheaper modes of transportation?
What customer need does it address to have warehouses with products and materials from old promotions collecting dust?
Where is the value in this complexity to begin with?
Did we offset added warehousing and distribution costs – even when just directionally right – against added revenue potential?Heineken, the brewer, offers a powerful example of the last
Is there a limit to the number of product variations that the market can recognise and absorb?
Do we need product proliferation for short-term gain, or because we add sustainable revenue to the business?
Do customers really want delivery whenever they ask for it, or could a shared forecasting effort resolve fire-drill situations?
Do customers really want fast delivery, or is reliable delivery more important even when slower?
Map the Xerox segments and market response (Figures 7.4 and 7.5) onto demand influences and supply capabilities in Figures 7.2 and 7.3 as far as you can, making assumptions where necessary. How closely does the ‘actual’ match the ‘theoretical’?
Sketch out what the basic structure of the new logistics and supplier network might look like. From a lean and an agile supplier’s perspective, what would be the order winners and qualifiers in dealing with Aristocrat?
we consider another key aspect of the agile supply chain – the virtual supply chain.
practices that can help develop agile capabilities.In Chapter
the type of market conditions under which agile strategies are appropriate and how they can be operationalised;
the distinctions between lean and agile mindsets, and how the two can work together;
that different strategies are needed for different volume/variety conditions in the supply chain;
explain how capabilities can be developed and specifically targeted at thriving in conditions of market turbulence.
explore the challenges and difficulties of coping with uncertain demand situations;
introduce the concept of the agile supply chain as a broad-based approach to developing responsiveness advantages;
Explain the difference between pull scheduling and push scheduling. Under what circumstances might push scheduling be appropriate?
What is meant by the term overproduction? Why do you think this has been described as the biggest waste of all?
in formulating your response. How does this question impact on the philosophy of lean thinking?
What matters more: value to the customer or value to the shareholder? Refer to section 3.4 of Chapter
Dealers have criticised the way auto assemblers use JIT as an excuse for buying parts from the inbound supply network ‘so that their costs are kept down’. They then dump finished vehicles onto the dealer by matching ‘their perceptions of a marketplace demand with their constraints as a
What actions are needed to address the problems of inter-firm planning and control listed in section 6.1.3? How would you go about orchestrating material movements (for example cheeses, shown on Figure 1.1) across a grocery supply chain?
Demand changes from independent to dependent at the customer order decoupling point (CODP, Figure 5.3). What actually happened to demand, and why is this change so important in managing material flow?
Evaluate the impact of international supply chains on the challenges to MPC systems in practice. Does increasing the physical distance between processes mean that they are more difficult to plan and control?
Apply the MPC framework in Figure 6.1 to a restaurant. Pay special attention to identifying the front end, engine and back end components.
what changes would you propose to both TPS and to FPS in order to cope with customer demands for increasing product variety and more rapid model changes?
Use the ‘Pyramid of key factors that underpin JIT’ to describe the factors that caused these actions to affect the company’s ability to respond to the demands being placed on it by customers.
List the actions that Smog Co. took to respond to the new demands being placed on it by customers. Group your responses under the headings of stock levels, level of expediting, and storage space. Briefly describe the effects that these actions had on production performance.
Explain what Victoria SA has achieved in terms of P-time and D-time (see section 5.4).
develop a sensitivity for the enemies of flow in the supply chain.
understand how lean thinking can be used to improve performance of the supply chain in meeting end-customer demand by cutting out waste;
appreciate the sophistication that lies behind an integrated model of material flow in a supply chain, and why this model is so easily corrupted;
explain how lean thinking can be used to avoid the build-up of waste within and between supply chain processes.
explain the methods by which material flow is planned and executed within a focal firm and between partners in a supply chain;
Sections 5.3, 5.4 and 5.5 all contain step-by-step models for reducing waste and implementing improved logistics processes. Explain why such models are useful in implementing logistics strategy
Explain the significance of P:D ratios. How can the production lead time be reduced?
Why is time important to competitive advantage? Identify and explain six key contributions that speed can make to logistics strategy.
What are the potential negatives of WDT’s new JIT system in terms of limiting customer choice and short-circuiting the design process?
Sketch out the main processes between a customer placing an enquiry and receiving delivery of a WDT transformer. Where has WDT really scored in terms of reducing this time?
how to apply a methodology for implementing these solutions.
different solutions to reduce P-times;
P-times and D-times and the consequence when they do not match;
how time can be used as a performance measure;
how organisations compete through managing lead time;
explain how organisations compete through responsiveness.
show how the lead time needs to be managed to serve customer expectations;
introduce time-based competition definitions and concepts;
Identify six potential sources and causes of risk in global supply chains. Use the reference to Peck (2003) below to propose counter measures.
Tiering of the supply network is referred to in section 4.4.1 above, and also in Chapter 1, section 1.1, and in the Global Lighting case study at the end of Chapter 2. Describe the advantages of tiering in terms of globalisation, touching on areas such as outsourcing and the focused factory.
What are the benefits and limitations of international logistics? Illustrate your response by referring to the sourcing of standard shirts and fashion blouses (shown in Table 1.1 in Chapter 1) from manufacturers in the Far East.
What further changes are needed for there to be a sustainable change in the incidence of child labour in developing countries like Pakistan?
Which trade-offs must be made when setting up a global SCM network for the apparel industry? Also discuss the trade-offs regarding sourcing countries versus quality.
Why is time-to-market so important in the apparel industry? How does it impact supply chain processes?
What are the strategic drivers that are forcing focal firms in the apparel industry to change their supply strategy?
What are the pros and cons for a company such as Nike to take on these materials handling services as opposed to leaving them to retail customers?
What are the pros and cons of locating materials handling operations such as labelling and packing in a distribution centre, as opposed to in the factory?
What are the reasons to start satellite centres when a company such as Nike has a centralised distribution centre?
What are the reasons for a company, such as Nike, with a centralised distribution centre to ship some products directly to customers, not through the distribution centre?
What are the pros and cons of sourcing commodity items in low wage economies?
Suggest how global and regional supply chain groups work together.
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