SCM 421 EXAM 1 – CRAIGHEAD
Procurement - Answer -making purchases with limited budget - this is not just the
purchase price - but all costs that come with the purchase
Supply Chain Management - Answer -the efficient and effective flow of products,
services, information and financials forms he supplier's suppliers through the carious
intermediate organizations out to the customer's customers
Triple Bottom Line - Answer -People - Profit - Planning
"Supply Eco Systems" - Answer -operate in certain environments (raw material
suppliers > manufacturers of intermediates > manufacturers of finished goods >
distributors > customers)
Purchasing/Procurement related to SCM - Answer -SCM --> Supply Mgmt -->
Purchasing and Procurement
Supply Management - Answer -a strategic approach to planning for and acquiring the
organization's current and future needs through effectively managing the supply base,
utilizing a process orientation in conjunction with cross-functional teams to achieve the
organizational mission (internal operations)
Purch/Procure --> sourcing - Answer -buying --> deciding supplier and setting contract
procurement - Answer -functional group (formal entity on the organization chart) as well
as a functional activity (buying G & S)
Activities of procurement - Answer --Supplier identification and selection
-buying
-negotiation and contracting
-supply market research
-supplier measurement and improvement
-purchasing system development
SC Perfect Storm systems - Answer -Industry demands new SC talent --- supply chain
talent gap > potential business faculty shortage > SC profession dynamics (perfect
storm = all 3 come together creating a mega storm)
Business Process - Answer -group of related activities where INPUTS are transformed
into OUTPUTS. There will be resources involved in the transformation process such as
facilities and equipment
Business Process - high level map - Answer -Inputs - transformation activités
(resources) - outputs
, Resources - Answer -when process is done, resources remain
Business process example - Answer -input - students, resources - teacher, classroom,
output - learning experience, knowledge gained, grade
flow unit - Answer -focal point of the process, it progresses from start thought all of the
activities to the end of the process
Types of Purchases - Answer --Raw Materials
-Semi-finished products (components, sub assemblies)
-finished product from a contract manufacturer
-MRO expensed items
-services (utilities, 3rd party logistics providers
-capital (equipment, buildings, vehicles)
-other (travel, office supplies, etc.)
Types of Purchases - Answer -1. Direct Materials (or SPEND) (raw materials)
2. Indirect Materials (or SPEND) (support primary operations, ex. technology)
3. Capital (equipment, buildings)
MRO - Answer -Maintenance, repair and operating items
Manufacturing Lead Times (MLT) - Answer -time between the start and completion of
the manufacturing process
Customer Lead Times (CLT) - Answer -time between order placement and order
request
order placement - Answer -customer comes and wants 10 chairs
order request - Answer -when customer expects to have 10 chairs in his possession
CLT > MLT - Answer -make to order (a lot of customization)
CLT = 0 - Answer -make to stock (custo wants what is on the shelf)
0<CLT<MLT - Answer -Assemble to order (will assemble materials we already have)
Customer Value - Answer -is the difference between what a customer gets from a
product and what he has to give in order to get it. (what customer gets/what it costs the
customer)
examples of values - Answer -lower price, less time, ease of use, handling, convinence,
more for less (BOGO, discount)
Procurement - Answer -making purchases with limited budget - this is not just the
purchase price - but all costs that come with the purchase
Supply Chain Management - Answer -the efficient and effective flow of products,
services, information and financials forms he supplier's suppliers through the carious
intermediate organizations out to the customer's customers
Triple Bottom Line - Answer -People - Profit - Planning
"Supply Eco Systems" - Answer -operate in certain environments (raw material
suppliers > manufacturers of intermediates > manufacturers of finished goods >
distributors > customers)
Purchasing/Procurement related to SCM - Answer -SCM --> Supply Mgmt -->
Purchasing and Procurement
Supply Management - Answer -a strategic approach to planning for and acquiring the
organization's current and future needs through effectively managing the supply base,
utilizing a process orientation in conjunction with cross-functional teams to achieve the
organizational mission (internal operations)
Purch/Procure --> sourcing - Answer -buying --> deciding supplier and setting contract
procurement - Answer -functional group (formal entity on the organization chart) as well
as a functional activity (buying G & S)
Activities of procurement - Answer --Supplier identification and selection
-buying
-negotiation and contracting
-supply market research
-supplier measurement and improvement
-purchasing system development
SC Perfect Storm systems - Answer -Industry demands new SC talent --- supply chain
talent gap > potential business faculty shortage > SC profession dynamics (perfect
storm = all 3 come together creating a mega storm)
Business Process - Answer -group of related activities where INPUTS are transformed
into OUTPUTS. There will be resources involved in the transformation process such as
facilities and equipment
Business Process - high level map - Answer -Inputs - transformation activités
(resources) - outputs
, Resources - Answer -when process is done, resources remain
Business process example - Answer -input - students, resources - teacher, classroom,
output - learning experience, knowledge gained, grade
flow unit - Answer -focal point of the process, it progresses from start thought all of the
activities to the end of the process
Types of Purchases - Answer --Raw Materials
-Semi-finished products (components, sub assemblies)
-finished product from a contract manufacturer
-MRO expensed items
-services (utilities, 3rd party logistics providers
-capital (equipment, buildings, vehicles)
-other (travel, office supplies, etc.)
Types of Purchases - Answer -1. Direct Materials (or SPEND) (raw materials)
2. Indirect Materials (or SPEND) (support primary operations, ex. technology)
3. Capital (equipment, buildings)
MRO - Answer -Maintenance, repair and operating items
Manufacturing Lead Times (MLT) - Answer -time between the start and completion of
the manufacturing process
Customer Lead Times (CLT) - Answer -time between order placement and order
request
order placement - Answer -customer comes and wants 10 chairs
order request - Answer -when customer expects to have 10 chairs in his possession
CLT > MLT - Answer -make to order (a lot of customization)
CLT = 0 - Answer -make to stock (custo wants what is on the shelf)
0<CLT<MLT - Answer -Assemble to order (will assemble materials we already have)
Customer Value - Answer -is the difference between what a customer gets from a
product and what he has to give in order to get it. (what customer gets/what it costs the
customer)
examples of values - Answer -lower price, less time, ease of use, handling, convinence,
more for less (BOGO, discount)
