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Chapter 3
Logistics and Operations of Supply Chain Management Ch 3
77
Business
Graduate
01/01/2015

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Term
company internal push system / push logistics
Definition
push the order based on given schedule planned in advance in the direction of the added value, without need of customer influence or a definite customer order.
Term
Company internal pull logistics
Definition
Sales acts as an internal client and pulls the logistics in such a way that the logistics produce the goods ordered for delivery
Term
company-internal layout
Definition
shows the "geography" of resources involved in manufacturing or service process. The course of the order can then be drawn into the layout
Term
mapping
Definition
efficient way of observing the layout of a manufacturing or service process to intuitively find ways to add value to the supply chain (efficiency)
Term
Service blueprinting
Definition
analyzing service processes. Separates customer and plant, and service provider actions that occur backstage. Lines of interaction show form of customer involvement and points of contact. Symbols help identify fail points and important contact points.
Term
Basic process analysis
Definition
detailed analysis of the process plan on-site that, operation by operation, explains the exact percentages of total lead time
Term
Value stream mapping
Definition
illustrates flow of material and information as a product or service moving sequentially through value-adding and non-value adding process steps.
Term
Benefit of value stream mapping
Definition
Helps spot where non-value adding process steps are so that they can possibly be eliminated. Sometimes however those non-value adding steps are there for a reason so don't always remove them.
Term
Logistics analysis
Definition
works our a characteristic for planning & control for each product, product family, or within a company
Term
depth of product structure
Definition
Feature that defines the number of structure levels within the total supply chain for the product, company-internal or transcorporate
Term
Orientation of product structure
Definition
feature that indicates whether product structure is convergent (upward facing triangle), or 'D'ivergent ('D'ownward facing triangle)
Term
convergent product structure (A)
Definition
discrete manufacturing, creation of a product from many acomponents
Term
divergent product structure (V)
Definition
various byproducts coming from processing of a basic material
Term
Convergent / divergent structure mix (<>)
Definition
divergent product structure at lower levels, convergent at higher levels (example: different chemical byproducts diverge, and are recombined again to form unique products)
Term
Frequency of Customer Demand
Definition
feature that shows the number of times within defined observable time periods that customers (int or ext) demand a product
Term
continuous demand (value within the frequency of demand feature)
Definition
relatively constant amount of demand along time
Term
discontinuous or lumpy demand (value within the frequency of demand feature)
Definition
demand that is not consistent along the time scale
Term
regular demand (value within the frequency of demand feature)
Definition
demand that has seasonal fluctuation with linear trend
Term
unique demand (value within the frequency of demand feature)
Definition
demand that occurs only once every now and then
Term
Product Variety Concept
Definition
Feature that determines the strategy for developing product variants and offering it to the customer. Where applicable, there may also be a product variety concept for semi-finished goods.
Term
individual or standard product (value within the product variety concept feature)
Definition
"off the rack" products that have their own complete product structure (no T, just an |)
Term
standard product with options (value within the product variety concept feature)
Definition
small number of variants. Possibly the variants are just an additional feature of the standard product (narrow T)
Term
product family (value within the product variety concept feature)
Definition
Group of products derived from a common product platform. These goods or services use similar or same production processes, have similar physical characteristics (T)
Term
Product family with many variants (value within the product variety concept feature)
Definition
Take the elevator example. A well-defined product or product family that incorporates many variants. Can be in the thousands and millions! Think of a T with a wide line
Term
Product according to changing customer specification (value within the product variety concept feature)
Definition
more like made-to-order. Very wide T.
Term
unit cost of an item (high or low)
Definition
feature that is defined as the total cost for producing or purchasing one unit of measure of the time (one pound, one part)
Term
Transportability
Definition
Feature that is a statement on the size and weight per unit of measurement.
Term
Transportable, nontransportable, portable, digitally transmittable
Definition
values for the transportability feature
Term
Depth of product structure, orientation of product structure, frequency of demand, product variety concept, item unit cost, transportability
Definition
The first group of features referring to the products being made
Term
production environment, depth of product structure in the company, facility layout, flexible capability of capacity, quantitatively flexible capacity
Definition
The second group of features referring to the resources going into production
Term
Characteristic in planning & control
Definition
Representation of all values within the main features of a product or product structure
Term
Production environment or manufacturing environment
Definition
feature referring to where the order penetration point is, and what general process occurs after customer order
Term
Engineer to order
Definition
value of the production environment feature that means that parts have to be designed before production
Term
make-to-stock
Definition
value of the production environment feature that means products are finished, and customer orders are fulfilled with direct delivery
Term
assemble-to-order
Definition
value of the production environment feature that finished parts or assemblies are stocked, and upon receipt of order they are assembled together for a final product
Term
make-to-order
Definition
value of the production environment feature means that raw materials are stored, and upon receipt the customers product is produced to their requirement (stocking at level of product and process design)
Term
Depth of product structure In The Company
Definition
feature referring to how many structure levels are within the company
Term
0
Definition
how many structure levels are in a trading company (including external production)
Term
1
Definition
how many structure levels are in a pure assembly company
Term
Facility layout
Definition
Feature in reference to production resources that describes what the physical organization of the plant looks like / what kind of production it is mapped out for
Term
fixed-position layout for site, project, or island production
Definition
value within the facility layout feature that describes one work center carrying out all the the operations to produce autonomously
Term
process layout / job shop layout / functional layout
Definition
value within the facility layout feature that describes the existence of 'job shops' that cluster a specific task in that location, where production tasks move between the job shops according to the process plan
Term
single-item-oriented line production
Definition
value within the facility layout feature that describes that production equipment is organized sequentially to produce equipment
Term
high-volume line production
Definition
value within the facility layout feature that describes line production being performed rhythmically at strict time schedules, and work stations being connected efficiently either through conveyors or pipes.
Term
continuous production or continuous flow production
Definition
value within the facility layout feature that describes line production where material flow is continuous and the process is designed to produce as long as possible.
Term
Flexible Capability of Capacity
Definition
feature referring to whether capacity can be implemented for various or for particular processes. This depends on flexibility of employees and other production factors (applicable for many/few/only one process)
Term
(Quantitatively) Flexible Capacity
Definition
feature that refers to flexible capability in terms of time (not flexible / hardly flexible / flexible in terms of time)
Term
production or manufacturing environment
Definition
refers to how a company, product, or service is structured in relation to OPP. This depends on customer tolerance time and cumulative lead times
Term
decreases components purchased from suppliers / increases production structure to product structure ratio
Definition
Increasing number of structure levels does the following...
Term
Optimal capability of capacity
Definition
If capacity flexibility can follow load curve
Term
Seven Features that describe the actual Production or Procurement Order
Definition
Reason for order release / frequency of order repetition / flexibility of order due date / type of long-term orders / order batch size / lot traceability / loops in the order structure
Term
Reason for order release (type of order)
Definition
A feature in reference to the order types that describes why production is necessitated --or-- what type of demand exists. (procurement order / forecast / stock replenishment)
Term
Frequency of order repetition
Definition
A feature in reference to the order types that tells us how often within a certain time period an order is repeated
Term
production without order repetition / with infrequent order repetition / with frequent order repetition
Definition
Values within the frequency of order repetition value that states a specific order will practically never be placed again / will be placed again / will be frequently placed
Term
Flexibility of order due date
Definition
A feature in reference to the order type that indicates whether customers are flexible in regard to delivery (no flexibility / not very flexible / very flexible)
Term
Type of long-term orders
Definition
A feature in reference to the order types that describes the manner in which long-term planning is done in the supply chain (none / blanket order at capacity / blanket order for a set amount of goods )
Term
Order lot or batch size
Definition
A feature in reference to the order types that describes the order quantity (1 single item / small batch production / large batch production / lotless production )
Term
Lot traceability
Definition
A feature in reference to the order types that describes the information on production of a product
Term
lot / batch / charge
Definition
describes that the lot traceability is such that it can convey information on what lot, batch, or charge it comes from
Term
Charge
Definition
initial loading of ingredients into a processor such that all products are considered 'identical'
Term
Loops in the order structure
Definition
A feature in reference to the order types that describes whether loops exist in the production structure. This means whether product components are reused upstream (product structure with loops), or whether sequences need to be repeated (undirected network of operations)
Term
Examples would be anticipated production like with Lindt bunnies... production is such that there is frequent order repetition but customer demand is unique. Another example is with batch production of pharmaceuticals, where drugs are produced en masse at irregular intervals but customer demand is steady.
Definition
An example to show that frequency of order repetition and frequency of consumer demand
Term
A 'branch' of industry
Definition
the sector or segment of business a company engages in
Term
A 'branch model' of planning and control
Definition
groups together concepts appropriate to specific branches, including suitable types of business processes and business methods.
Term
Shows that facility layout and product variety are correlated
Definition
As product variety moves from many variants to few variants AND facility layout moves from island production to continuous production
Term
Production types
Definition
Separated into 5 groups that have their own distinct set of characteristics in terms of planning and control and logistics management.
Term
One-of-a-kind production
Definition
Production type encompassing engineered-to-order of made-to-order products, sometimes configured out of a product family with large # of variants
Term
Mass customization
Definition
Production type that encompasses the production of customized product families that have high volumes and low production costs "high value repetitive manufacturing with high variety"
Term
Batch production
Definition
Production type involving production of generally wide variety of standard products or variants of a product family manufactured in batches either to order or to stock
Term
Repetitive manufacturing
Definition
Production type that uses production lines, assembly lines, or cells. Work orders are not necessary and production scheduling is based on production rates (flow control)
Term
Mass production
Definition
Production type with hiqh-quantity production characterized by specialization of equipment and labor
Term
4 Concepts of Planning & Control
Definition
Make sure to study image! Concepts are made of particular types of business processes and mehtods for order planning and fulfillment. Know difference between this and production types!
Term
MRP II concept (manufacturing resource planning)
Definition
Concept of planning & control created in the USA in the 60s. Deals with clearly convergent product structures. Consists of 3 ranges of planning & control
Term
Lean / Just-in-time concept
Definition
Concept of planning & control developed in Japan in the 70s. Similar to MRP concept focused on delivery as a priority
Term
Variant-oriented concepts
Definition
Concepts of planning and control originating in Europe in the 70s that deals with product families, one-of-a-kind production, and mass customization.
Term
Processor-oriented concepts
Definition
Concepts of planning & control originating in USA in the 80s for processor industries. "Process flow scheduling" that considers divergent product structures, concepts for continuous production and campaign planning.
Term
Choosing the right branch model, production type, and concept of planning & control
Definition
Challenge in logistics management of an Enterprise
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