Term
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Definition
| to create the right combination of equipment, work methods, and environment to produce and deliver goods and services that satisfy both internal and external customer requirements |
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Term
| Impact of good/bad process design |
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Definition
| can have a significant impact on cost (and therefore profitability), flexibility (the ability to produce the right types and amounts of products as customer demand or preferences change), and the quality of the output |
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Term
| Six Activities of Process Design |
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Definition
1) Define the purpose and objectives of the process
2) Create a detailed process or value stream map that describes how they process is currently performed (if new process this step is skipped)
3) Evaluate alternative process designs (create process or value stream maps/future state maps)
4) Identify and define appropriate performance measures for the process
5) Select appropriate equipment and technology
6) Develop an implementation plan to introduce the new or revised process design (criteria and standards to monitor and control) |
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Term
| Identifying Process Objectives |
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Definition
| focuses on answer the question: What is the process intended to accomplish? Also, What are the critical customer and organizational requirements that must be achieved? |
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Term
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Definition
A process map described the sequences of all process activities and tasks necessary to create and deliver a desired output or outcome.
Process Symbols- a rectangle- a task or work activity, a triangle- waiting, an oval- the “start” or “end” of the process and defines the process boundaries, an arrow- movement, transfer or flow to the next task or activity, a double-headed arrow- an input or arrival into a process, a diamond- a decision that might result in taking alternative paths. |
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Term
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Definition
| line of customer visibility shows the separation between the back office and the front office with a line of customer visibility. Important because front office services require people with service management skills whereas back office operations rely more on production skills |
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Term
| Value chain, process, task, activity |
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Definition
| a process is a subset of a value chain, an activity is a subset of a process and a task is a subset of an activity. A task is a specific unit of work required to create an output, an activity is a group of tasks needed to create and deliver an intermediate or final output, a workstation is a location where activities are performed |
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Term
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Definition
| Value stream- all value-added activities involved in designing, producing, and delivering goods and services to customers. A value stream map shows the process flows in a manner similar to an ordinary process map; however, the difference lies in that value stream maps highlight value-added versus non-value-added activities and include costs associated with work activities for both value- and non-value added activities. |
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Term
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Definition
| Process design require managers to implement change. No process or functional area is immune to process design changes. Need management and stakeholder support and participation, most important step. Techniques of project management can help in breaking down implementation requirements into manageable pieces. Final step is monitoring performance after implementation. Comparing to other companies is a useful way to monitor performance and look for improvement opportunities. |
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Term
| Rental Cars, AT&T, Bosie Examples |
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Definition
| Rental cars- now testing a new technology to speed up return process for rental cars. Records vehicle’s location, mileage, and amount of fuel in gas tank so customers can just park their vehicles and go. AT&T- instead of having diff. departments for each step in financing for customers, each employee is in charge of making decisions how to handle their customers, cut time and doubled number of processes. Bosie- improve a customer claims processing and tracking system, flowcharted the process and discovered more than 70 steps for each claim, by changing it helped time, efficiency and happiness of team members, as well as cost savings. |
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Term
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Definition
| the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed. |
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Term
| What is a process? Why so important in businesses? What is their tie to supply chain? Characteristics of good process? |
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Definition
Process- “any activity or group of activities that takes an input, adds value to it, and provides an output to an internal or external customer.” It’s a step-by-step breakdown that aids in providing high quality results on a consistent basis utilizing minimal resources. Ties to supply chain- made up of a series of interconnected and interdependent processes and must be planned, executed, measured and improved
Characteristics of good process? Intentions (goals, stakeholders, efficient and effective), reproducible results (documentation, adaptable, easily understood), measurable and manageable (accountability, system, metrics) |
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Term
| Primary considerations that should go into designing a good process and key steps in building a good process |
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Definition
Primary considerations that should go into designing a good process- value- defined by the customer, corporate considerations, operational concerns, additional stakeholders-bigger picture.
Key Steps in building a good process- planning- define process objectives, scope- define process requirements and boundaries, block diagram of system, define the service, consider process metrics. Design the process and Evaluation and testing. |
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Term
| Difference between process map and block diagram |
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Definition
| Process map- a depiction of the flow of materials through a process, including any rework or repair operations. Block diagram- a pictorial model of a process or system, less detailed aimed at understanding overall concepts. Block diagram can be useful in understanding interdependencies between business processes because it is a picture of how everything is related and so you can see what information to fill in where. |
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Term
| Why are metrics important when establishing hierarchy of process goals? How should metrics be defined? Why are numbers so important? |
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Definition
| How do we define success? What needs to be measured? Customer satisfaction, employee output, profits, resource utilization.. what are our goals? Metrics should be defined through numbers so they are easily compared and progress can be recorded and tracked. |
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Term
| What is a scope? What is scope inflation? Why are boundaries and state assumptions important to establish before designing a process? |
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Definition
| Scope is everything from when the operator answers to when the operator says thank you/goodbye. Scope inflation- when the scope grows out of control. Boundaries and state assumptions are important so scope doesn’t get out of hand and you can control size of project/scope. |
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Term
| How are flow charts useful in: seeing ties to SCM, identifying quality problems, identifying important operational information, communicating with different business and IT functions, and identifying the resources needed to execute the problem? |
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Definition
| Ties to SCM- it shows what needs to be done and what areas in the chain need to be worked on, quality problems- repeating may give a better quality and shows problems that can be corrected to make a better quality product/service. Important operational info- testing to find potential problems, system capacity, waiting line management, avg service time, variability concerns. Communicating- teach, catalog, demonstrate, analyze. IT- help build system you want, improve technology in system, plan for technology system. Identifying required resources- it’s a plan so you see what you will need. |
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Term
| Functional Flow charts vs Basic Flow charts? Benefits to consultants, designers, etc. |
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Definition
| when the page is divided into different “lanes” describing the control of different organizational units, helps when processes begin to get very big. Helps understand what you did, how it was and how it affects everything. It allows analyst to locate the responsibility for performing an action or making a decision correctly. |
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Term
| How do poor processes develop? What does cow path theory demonstrate about how processes develop and bad processes became accepted? |
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Definition
Misalignment, ambiguity, market evolution, cow path theory (development of poor processes)
What does Cow Path theory demonstrate about how processes develop and bad processes became accepted? The cow path shows a path that is made and is continued to be used, when it gets so busy there is no time for improvements even when the necessary improvements are known/obvious. When that cow dies and a new cow gets hired they have them just do the path of the previous cow even if it makes no sense to them, they still do it to fit in and make sure they’re doing what is asked of them. |
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Term
A list of things GOOD consultants should and shouldn’t do- examples about doctors and psychologists
Keys to Business Process Improvement? Why related to how a psychologist treats a patient and how a medical doctor treats a patient? |
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Definition
good consultants should collect data/take lots of ntoes, understand group/team dynamics, understand business imperatives; can’t change over night, change slowly, changes mindset. Good consultants should not use bad surveys, develop solutions too soon, allow scope to get too big to make an impact, listen to pre-fabricated solutions and trying to maintain happiness
Key to business process improvements- Desired State- the interview (identifying objectives, goals and metrics) and Present State- data collection and observations. It’s like a psychologist because you are really there just to get them to say things out loud and help realize what they are doing wrong through talking about things. |
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Term
| Primary steps in BPI- know in detail |
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Definition
| Step one- desired state, step two- present state, step 3- gap analysis, step 4- develop project scope, step 5- collection and analysis, step 6- develop solutions and recommendations, step 7- develop an implementation plan |
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Term
| Tips in relation to developing good recommendations |
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Definition
Get feedback early and often, best solutions considered are built for client and takes many things into account, phasing in change and give options of changing nothing or eliminating process, alternative solutions and further study.
List values, objectives and goals, basic solutions and anticipated benefits, cost-benefit analysis, value to work ratio, does it fit the system, metrics, implementation. Include words that make them happy and solutions must address all of their values, personalize for them. Least work possible to get where you want (8 minute abs)
Good consultants will take your hand and start walking with you down the path, if it is a solution someone will utilize.
Final presentations and documents are important because the more physically appealing and interesting they are the easier they are to read and take value from. A presentation is what you show them visually and business documents are to cover your butt, like emails, reports, written materials, etc. |
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Term
| Design and Development Story |
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Definition
| were told they were taking too long to develop and get new products and designs out to the market. Now incentive bonuses tied to how quickly they can roll out new products. A year later- doing much better but not quite at goal yet. Another year later- company’s stock price has declined and shareholders ready to revolt. Customers hated new designs, took a big hit in revenue and losing customers left and right. |
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Term
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Definition
| CEO of Amazon. Decisions made from analysis are the best kinds of decisions (fact-based, overrule hierarchy.) Unfortunately, there are other decisions that can’t be boiled down to a math problem. Operations managers must rely on good judgment as well as data driven analysis |
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Term
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Definition
| saying at Ebay “if it moves, measure it” and they measure tons of things on their website. Measurement is the sign of a system that is process oriented. The more stats, the more early warning and the more levers to pull to make things work. But careful not too measure too much. |
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Term
| Quality and Dimensions of Quality for Goods and Services |
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Definition
| - Quality measures the degree to which the output of a process meets customer requirements. Dimensions by which customers evaluate goods: performance (a good’s primary operating characteristics), features (the “bells and whistles” of a good), reliability (probability of surviving over a specified period of time under stated conditions of use), conformance (degree which it matches to pre-established standards), durability (the amount of use one gets from a good), serviceability (the speed, courtesy, and competence of repair work) and aesthetics (how a good looks, feels sounds tastes or smells.) Dimensions to assess service quality- tangibles, reliability, responsiveness, assurance, empathy. (pg 114 in Yoga for definitions) |
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Term
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Definition
| defects per million opportunities. Nonconformities per unit are often reported as rates per thousand or million. |
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Term
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Definition
| plant is recognized as a world-class factory with great safety awareness. Manufactures frames for automobile companies. They have very intense training for employees and all are cross-trained on other team jobs. Safety is important in their continuous quality improvement initiatives. Employees can give ideas and suggestions that are used most of the time, when an accident happens entire facility is shut down. 5 minute safety talk is given to all employees at beginning of each shift. Supervisors have 2 hour safety meetings every week. Many formal safety programs for employees. |
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Term
| Defect Categories and Examples |
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Definition
| Critical Defect (one that judgment and experience indicate will surely result in hazardous or unsafe conditions for individuals using or experiencing the good or service, exp- meat not cooked properly), Major Defect (one that is not critical but likely to materially reduce the usability of the good or service for intended purpose (delivering the wrong meal to the wrong customer), Minor Defect (one that is not likely to materially reduce the usability of the good or service for its intended purpose, exp- a pizza that is poorly sliced) |
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Term
| Two types of Time measurements |
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Definition
| the speed of doing something (like the time to process a customer’s mortgage application) and the reliability of doing something (like meeting promised delivery dates for electronic component parts) |
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Term
| Efficiency and Effectiveness |
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Definition
| Efficiency- the degree to which a process generates outputs with the minimal consumption of inputs or generates a maximum amount of outputs for a given amount of inputs. Effectiveness- achieving the organization’s objective, mission, or goal through the eyes of the customer; that is, doing the right things efficiently. |
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Term
| Differences between total productivity and partial factor productivity- Total productivity- |
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Definition
| the ratio of total output to total input. Partial factor productivity- the ratio of total output to a single input. |
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Term
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Definition
| Balanced scorecard purpose is to translate strategy into measures that uniquely communicate your vision to the organization/drive performance. Consists of 4 performance perspectives: financial perspectives, customer perspective, innovation and learning perspective and internal perspective. |
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Term
| Pearl River School District story |
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Definition
| School administrators initiated a process to continuously improve student performance and deliver value for the entire community, including teachers, families, taxpayers and businesses. They have a balanced scorecard- a scannable composite of leading and lagging indicators of progress toward meeting goals and underpinning strategic objectives- provides continuous tracking of performance. Also restructured so the job of designing and delivering instructional programs belongs primarily to the teachers. |
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Term
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Definition
| identifies cash flows from the time costs are incurred to when it is paid. Computed as inventory days’ supply plus accounts receivable days’ supply minus accounts payable days’ supply. Negative value means company receives customer payments __ days on average before they have to pay their suppliers. Negative cash-to-cash conversion cycle generates an amount of liquidity or free cash flow that funds growth and limits need for external debt. |
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Term
| What makes a good performance measurement system |
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Definition
| achieving cost performance together with acceptable levels of quality and customer service performance and then continually improving on these measures. Use an adequate system of performance measures. Performance measures are complicated in supply chains because the system is much larger with a range of relationships and interactions. It’s hard to see everything and therefore measure performance. |
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Term
Problems associated with traditional metrics like cost, profit and revenues
Problems with performance standards |
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Definition
•Problems associated with traditional metrics like cost, profit and revenues- There can be things outside of the firm’s control that changes cost, profits and/or revenues. Changes in these statistics may not accurately reflect the true capabilities of the firm. Also, in many firms it is hard to correctly distribute the costs, revenues and profits between departments/areas of the company.
•Problems with performance standards- It can encourage myopic behavior so managers can reach their goals, once goals are reached there is no further incentive to improve or produce any further. The problem with performance variances. Managers can be pressured to find ways to make up these variances, resulting in decisions that may not be good long term for the firm. |
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Term
| *Six Specific Supply Chain Performance Measures* |
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Definition
| Total supply chain management costs, supply chain cash-to-cash cycle time, supply chain production flexibility, supply chain delivery performance, supply chain perfect order fulfillment performance, supply chain e-business performance. *KNOW THESE* page 92 in Yoga |
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Term
| What are the SCOR Model, 5 process categories, 3 levels of process detail |
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Definition
| Supply Chain Operations Reference- a method for integrating supply chains and measuring their members’ performance. Five process categories are plan, source, make, deliver and return. The 3 levels of process detail are Level 1- users select appropriate process categories from the SCOR configuration toolkit, Level 2- SCOR processes are further described by process type, Level 3- process flow diagrams are defined with process elements or specific tasks for each of the process categories established in level 2. |
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Term
| What is a performance metric? What is the difference between a single metric and a system of metrics? |
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Definition
Measuring employee performance for the purpose of motivation, improvement, statistical reference, promotion, termination, etc. Metric- a single measurement used to evaluate, motivate, improve, etc. System of metrics- a collection of measurements used to evaluate a process, person, company, etc. from multiple perspectives.
• How do metrics affect human behavior? Numbers are human weakness. They often cause humans to change what they’re doing to go off of the numbers. People are terrible at making decisions and one number won’t help you make your decisions. |
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Term
| Required characteristics of a good metric? Why? What can happen if poor metrics are utilized? |
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Definition
| Requirements of good metrics- measurable, easily understood and attainable. If poor metrics are utilized may try to cheat, may create waste and ineffectiveness, motivates victims to start doing the wrong thing. Primary business concerns not understood, poor outcomes, lower morale, need for increased external regulation (ie the government). Example- at work judged based on attempting to dunk basketball, can tell failed so it is measurable, not easily understood, not attainable. |
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Term
| A good system of metrics takes into account |
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Definition
a process, person, company, etc. from multiple perspectives. Effectiveness, efficiency and adaptability.
• Key steps in developing a good system of metrics- Remember basics, complete picture, continuous improvement, keep it simple, redundancy, leadership
•Leadership important in new system of metrics- people follow their leaders, if leaders think goal is not possible, followers will not think possible. (teacher dislikes book = students dislike book.
•Redundant system of metrics- smart player looks for redundancy and tries to pick the option that can improve all areas. Example- baseball player will try to improve home runs out of home runs, RBI’s and batting average b/c it will help all three. |
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Term
| Common mistakes when implementing system of metrics |
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Definition
using metrics that will make company look good, focusing on measures important only to your department, measuring from company’s point of view instead of customer’s, not bothering to investigate validity of metric, incomplete measurements, not considering consequence of metric, not being serious about measuring, too many metrics, thinking metrics are more important than people (look on back page of section 2 notes for examples)
• Primary considerations in developing the metrics- Different companies and industries means you need to know how you are doing in your industry. Airline metrics, restaurant metrics, healthcare metrics. If you can come up with small amount of numbers two watch consistently you would be a good manager |
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Term
| Supply Chain Metrics discussed in lecture |
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Definition
| Cash to cash cycle- amount of days money related to inventory is out of pocket. Days of inventory- good to be somewhat short, days of accounts receivable- better to be short, days of payables outstanding- good to be short. Capacity utilization- (actual output/design capacity) want to be below 1 because otherwise no room for growth and if defect no time to catch up. Process velocity- (throughput time/value added time) want high number, but not too high. |
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Term
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Definition
| a tool used by executives to get a snap shot look of key organizational process and system metrics. Should help isolate problem areas and potentially help isolate problem causes. |
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Term
| Crown Plaza Christchurch Story |
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Definition
| luxury hotel in New Zealand, where they have complex operations but service performance and quality are a top priority. Reservation staff collects info about likes and dislikes of customer before arrival, which is distributed to appropriate hotel functions and used to customize service. Guests are greeted when arrive, escorted to receptionist who registers and assigns room. When guest goes to dinner, servers and cooks also live up to high standard of quality. Empowers employees to take preventive and corrective actions without management’s approval. Management and employees use line charts, histograms, etc. to track performance and identify improvement areas. |
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Term
| Prevention Costs, Appraisal Costs, Internal Failure Costs, External Failure Costs |
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Definition
• Prevention Costs- costs associated with preventing defects before they happen
• Appraisal costs- costs incurred when the firm assesses the performance level of its processes.
• Internal Failure costs- costs resulting from defects that are discovered during the production of a service or product.
• External Failure costs- costs that arise when a defect is discovered after the customer receives the service or product.
• Provide definitions for each of the 4 COQ and identify examples of each. Internal Failure Costs- problems addressed before reaching customer, not ideal but at least customer not affected, examples- defects: items beyond repair, those that can be repaired, wasted work, time, material, scrap. External Failure Costs- Worst case scenario- highest potential for losses, costs associated with “repairing” damage caused from delivering substandard items or services, all other costs resulting from sale, examples- returns, loss of business, loss of goodwill, warranties, fines and penalties. Appraisal Costs- before you fix problem you need to identify root of causes. Examples- system/process inspections, inspectors and consultants, system interruptions. Prevention Costs- attempts to eliminate quality related problems, costs related to reducing potential for quality problems, examples- design efforts, human resource efforts, materials related efforts, machines, etc. |
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Term
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Definition
a philosophy that stressed three principles for achieving high levels of process performance and quality: customer satisfaction, employee involvement and continuous improvement in performance.
TQM- management approach for an organization centered on quality, based on participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society. The three principles are customer, involvement: internal/external, and continuous improvement culture. |
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Term
| Culture, defining the customer |
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Definition
| in general customers are internal or external. External are those who buy the service or product. Internal customers are employees who rely on the output of other employees. All employees must do a good job of serving their internal customers if external customers ultimately are to be satisfied. |
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Term
| Teams, Empowerment, Quality Circles |
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Definition
- Teams are small groups of people who have a common purpose, set their own performance goals and approaches, and hold themselves accountable for success. Employee empowerment is an approach to teamwork that moves responsibility for decisions further down the organizational chart- to the level of the employee actually doing the job. Quality circles- another name for problem-solving teams; small groups of supervisors and employees who meet to identify, analyze, and solve process and quality problems
Quality at the source- a philosophy whereby defects are caught and corrected where they were created |
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Term
| Continuous Improvement and Plan-do-check-act cycle |
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Definition
| Continuous improvement is the philosophy of continually seeking way to improve processes based on a Japanese concept called kaizen. Plan-to-do-check-act cycle is a cycle also called the Deming Wheel, used by firms actively engaged in continuous improvement to train their work teams problem solving. Has the following steps: plan, do, check and act |
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Term
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Definition
| - RWJ Hamilton received the Malcolm Baldrige National Quality Award for Health Care. Relies on leadership, focus on service, finance, quality, people and growth as well as strategic planning process and measurement systems. Cannot manage what you cannot measure so use Organizational Performance Measurement System to track daily performance and operations. (Market share, occupancy rates, delivery speed, customer satisfaction of services, patient mortality rates, percentage of patients receiving the wrong medication, employee retention rates) |
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Term
Six Sigma
Motorola's contributions, General Electric's views |
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Definition
a comprehensive and flexible system for achieving, sustaining, and maximizing business success by minimizing defects and variability in processes.
Motorola is credited with developing six sigma more than 20 years ago to improve manufacturing capability in an increasingly competitive market. Began soliciting new ideas from employees and benchmarking its competitors, results were impressive. General Electric views six sigma as a strategy (focuses on what customer wants), a discipline (has formal sequence of steps to accomplish gap’s between competitive priorities and capabilities) and a set of tools (makes use of powerful tools to detect if performance has gone astray).
For Products versus for Services- More difficult to apply to services because “work product” is much more difficult to see because usually more difficult to document/track, services processes can be changed quickly, and hard facts on service process performance are often hard to come by.
Implementing a successful Six Sigma program- begins with an understanding that Six Sigma is not a program you can buy-it requires time and commitment. Includes Top-Down Commitment, Measurement Systems to Track Progress, Tough Goal Setting, Education, Communication and Customer Priorities. (page 31 in Marble to read more) |
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Term
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Definition
| five-step procedure that leads to improvements in process performance. Includes define, measure, analyze, improve and control. |
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Term
| Scottsdale Healthcare Example |
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Definition
| snowbirds in Arizona create a huge demand for emergency services. Having troubles because so many people need to figure out a way not to turn down customers or will lose a lot of money every year. Six Sigma consultants first mapped Osborn’s ED process to identify potential problem areas. Three nested processes presented possible bottlenecks so big they could increase probability of need to divert patients. Data collected and improvements were identified and studied. Identified key process variables with Six Sigma enabled hospital administrators to redesign process |
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Term
| ISO 9000 and ISO 14000, Benefits of ISO certification |
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Definition
| ISO9000- a set of standards governing documentation of a quality program. ISO 14000- Documentation standards that require participating companies to keep track of their raw materials use and their generation, treatment and disposal of hazardous waste. Potential sales advantage companies in compliance have, companies looking for a supplier will likely choose those certified (competitive advantage). Internal benefits- increase in profitability and improvement in marketing, reduction of costs because of quality improvement. Provide companies with a jump start in pursuing TQM programs. |
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Term
| Malcolm Baldrige National Quality Award |
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Definition
An award named for the late secretary of commerce, who was a strong proponent of enhancing quality as a means of reducing the trade deficit; the award promotes, recognizes, and publicizes quality strategies and achievements.
• What is Deming Prize? Malcolm Baldrige Award? How are they compared to one another? Malcolm Baldrige is based on core TQM values, expensive process for competitors, motivates you to focus on quality, given to US companies in diff categories. Deming Prize is available to Japanese and now non-Japanese firms and individuals. |
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Term
| How does number of components in a product affect our ability to control reliability? |
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Definition
the more complex/different items in the system the more each number will bring down/affect the reliability. (Condom, pool cleaner, left handed children)
• Is 99% quality good? Can anything be 100% reliable? 99% is only good if the system if not very complex, otherwise it is crap. |
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Term
| What are some of the keys to successful benchmarking? |
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Definition
Identify process, identify leader(s), contact leaders or plan internally, analyze, act and follow-up.
•What are the diff types of benchmarking/examples? Competitive- comparing to those in your industry, Functional- different industry, similar, exp- airlines going to Nascar to improve filling up processes, Internal Benchmarking- share info, like GE business groups compete throughout organization. |
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Term
What are the basics of the Six Sigma program?
Difference between true six sigma and Motorola Six Sigma? |
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Definition
Defect elimination. Black Belt Program- pass test, useful tool (green, black, master black), training- methodologies, statistics, quality tools, incentives. DMAIC used for existing processes- Design, Measure, Analyze, Improve, Control. DMADV is used in designing new processes- Design, Measure, Analyze, Design, Verify.
Motorola 6 sigma is modified and more like a 4.5 sigma with an allowed drift. |
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Term
| Check sheets, Flow Charts, Pareto Charts/Analysis |
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Definition
| Flow charts/process maps- identify problems, improve designs (Visio) important for developing quality, Pareto charts- like histogram, categorize data (non-numerical, qualitative data ranges instead) |
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Term
| Scatter diagram, Histograms, Cause and Effect Diagrams |
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Definition
| Scatter Diagrams correlation between defects and hours of training, just because it seems to be correlation doesn’t mean there is. Histograms- categorization with numerical data, Cause and Effect Diagrams (Fishbone)- focus on what you have most control over and can make biggest improvement, big brainstorming tool. |
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Term
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Definition
Enterprise resource planning systems- large integrated, computer-based business transaction processing and reporting systems. They pull together all of the classic business functions such as accounting, finance, sales, and operations into a single, tightly integrated package that uses a common database.
• ERP Systems- integrate all aspects of a business- accounting, customer relationship management, supply chain management, manufacturing, sales, human resource- into a unified information system and provide more timely analysis and reporting of sales, customer, inventory, manufacturing, human resource and accounting data. |
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Term
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Definition
| Decision support systems- computer-based information systems that allow users to analyze, manipulate, and present data in a manner that aids higher-level decision making. |
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Term
| Network Design Applications |
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Definition
| Logistics information systems that address such long-term strategic questions as facility location and sizing, as well as transportation networks. These applications often make use of stimulation and optimization modeling. |
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Term
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Definition
| SAP AG is headquartered in Germany and is the single largest player in the SCM software arena, greatest strength is that it has developed integrated solutions tailored to many types of industries. I2- Dallas based software provider offers applications addressing both SRM and CRM including spend optimization, fulfillment optimization, logistics optimization, revenue and profit optimization, production optimization. SAS is based in Cary, NC offers a set of applications that use sophisticated statistical tools and techniques to support higher-level planning and decision making. Look for trends and relationships. Like i2, not traditional ERP system |
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Term
Mirroring
Creation of new Customer Relationships |
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Definition
seeks to replace certain physical processes with virtual ones.
• Creation of new customer relationships- involves taking raw information and organizing, selecting, synthesizing and distributing it in a manner that creates whole new sources of value. |
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Term
| Info Technology in Healthcare- Benefits |
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Definition
| Cost reduction (electronic submission of documents vs. photocopying/printing costs), Revenue Enhancement (EMR systems remind docs, nurses, pharmacists and patients to renew medication, schedule office visits, etc.), Improved Administrative and Support Process Efficiency (speed with filing patients, etc and more likely to pass medical audits), Improved Clinical Efficiency and Patient Care (helps standardize chart quality across board and templates can help guide medical staff and make sure they follow all medical protocols.) |
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Term
| Technology at UPS- After 1993, DIAD, UPSnet, UPS.com |
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Definition
| had first conveyor belt system for handling packages. First to provide air service by private airlines, UPS Airline was fastest growing in FAA history, features some of the most advanced info systems in the world. By 1993 UPS was delivering 11.5 million packages and documents a day for more than 1 million regular customers. Developed handheld Delivery Information Acquisition Device carried by every UPS driver, even includes digital pictures of recipient’s signature, also allow drivers to stay in constant contact with headquarters. UPSnet is a global electronic data communications network provides information-processing pipeline for international package process and delivery. UPS.com allows customers to track packages in transport. UPS became expert in global distribution, led to UPS Supply Chains Solutions that help consult and give supply chain advice to customers businesses. |
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Term
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Definition
| were challenged to become the “GE of the insurance industry” by integrating processes and systems with the goal of creating a “single customer view” so when customer contacts company service provider can see all of customer’s accounts. Reengineered all of its processes starting with accounting processes. Had to redefine how to do business processes. Sped up all processes and greatly reduced costs. |
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Definition
Supply chain focuses mainly on material flows from suppliers through production process. SCM focuses on producing the right product, in the right quantity, at the right time, in the right location, to the right customer, at the right price. Effective coordination of physical and information flows requires a seamless integration of both hard and soft technology
• Requirements/Goals of Business/SCM IT systems? How does this fit into big picture? How does this filter down to the business process level? Collect and store data, aid in planning and analysis, aid in execution, communication, support other functions/parties, facilitate supply chain compression. IT systems need to connect everything together (buy, make, move, sell, service it, etc) IT systems help create business processes (Visio assignments)
Single point of contact, aids in strategic execution, promotes competitiveness, promotes compression of supply chain, ticket to play the game. Like before you had a drill, now you have an electric drill. Gives you a chance to be better. |
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Definition
| a business strategy designed to learn more about customers’ wants, needs, and behaviors in order to build customer relationships and loyalty and ultimately enhance revenues and profits. |
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| What is supply chain compression, why is it an IT phenomenon? Why is it related to mapping processes? What are positive outcomes of supply chain compression? |
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Definition
Single point of contact, compresses everything into one point to make it more controllable, flexible, cheaper (like the Whirlpool washing machine example) In order to compress supply chain need to map out processes to identify areas that need improvement, mapping it out helps find cow paths.
• What is a single-point of contact system? What are some issues related to it? Everything is connected now to one area, the internet, collects and store data and is accessible, helps with analysis. Expensive, harder to switch over, possibility of it breaking down. |
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| Primary goals of Business IT? Difference between data, info and knowledge? |
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Definition
| Primary goals- collect data from EVERYONE, make data accessible to EVERYONE, turn your data into information. Data is collection of raw details with no meaning by itself. Information is meaning derived from order the available data and understanding data relationships. Knowledge- understanding the patterns, knowing the trends, the statistics, the demographics, ability to make decisions based on info derived from data. |
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| • What is the role of software? What can they do that ERP can’t? Examples of software can be purchased to aid in supply chain planning/execution? |
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Definition
| Turn your data into info, aid in knowledge creation, dependent on data (placing orders, plan and schedule, collect, analyze, collaborate, sell, track shipment, track performance and efficiency, aid in decision making, communicate). There are inventory/procurement related modules, logistics related modules, operations related modules, marketing related modules, supply chain suites. |
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| What are your options in terms of Who do we buy from? |
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Definition
| Single vendor approach- buy them all from one maker, best of the breed- try to get the best ones even though from different companies. In House System, ERP Companies, Module and Suite Companies, Standard or Customized System, Modules, Support, Upkeep, Upgrades |
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| What is RFID? Potential benefits/obstacles of RFID? |
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Definition
Radio Frequency Identification. Coming, but still a problem, very expensive large project, can give too much information to the store, compatibility, security. Benefits- planning, scheduling, execution, inventory and materials management, security issues, retail checkouts, advertising and marketing possibilities. Obstacles- market standardization, getting SC partners on board, justifying RFID costs with meaningful ROIs, hardware range, managing numerous signals, middeware development.
• What is required from SC to roll-out an RFID program? Procurement, Manufacturing, Distribution, Transportation, Retail, Beyond Retail. Utilizing the right software, managing data, security and privacy issues |
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