Summary: Production And Logistics

Read the summary and the most important questions on Production and logistics

• General studying

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• What are the five major external forces that are driving the rate of change and thereby influencing the supply chain in all organisations?

  Globalisation 
  Technology 
  Empowered consumer 
  Organisational consolidation 
  Government's policy and regulations 

• Production /Ops management/ Transformation area

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• What is the difference between the value chain and production model? 

  • Production model: Focuses only on how a company produces a service or a good. 
  • Value chain: Includes all activities in a company that creates value for the end product. 

• What three parts does the production model consist of?

  • Input 
    
  • Transformation area 
  • Production 
  • Added value 
  • Output 

• What does the production model show us? And what does it not show us?

  • Consisting of 3 columns 
  • Input, transformation, output 
  • Helps us understand how a company is working -> Producing goods and services 
  • Does not show us how they run their daily business 

• Purchasing/ Buying

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• Why is the quality in purchasing important? 

  • A good product cannot be produced from bad quality parts. 
  • Direct link between the things we buy and our end product. 

• What influence does a slight decrease in the costs in the DuPont model have on RONA?

  • Slight decrease in costs result in a significant impact on RONA 
  • Or: A reduction in the overall spend can be seen directly on the bottom line.  

• What is the conflict in the following picture?

  • Working in the procurement department is a conflict between costs and service. 
  • The higher the service, the higher the costs 
  • We are trying to find optimum position 
  • If we increase the service level the readiness to deliver cost increase 
  • Costs should decrease and service should increase 
  • We are trying to serve our internal customers 
  • Sometimes it makes sense to buy more when you get a quantity discount -> But the stock costs increases 

• Logistics / SCM

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• What are the four types of flows that flow from supplier through manufacturers, distributors to retailers and customers?

  • Product and service flow
    
  • Product and services are sold and delivered to customers. 
  • Reverse supply chain: Customers return the goods purchased. 

  • Information: 
    
  • Identification:
  • Product number
  • Expirering date
  • Materials

  • Finance: 
  • Customers pay for goods, distributors paying for they supplier etc. 
  • Customers are also getting their money back when they return an item 
  • Opposite flow as product and service flow 
  • Demand: 

  • Too many goods: Oversupply - Goods not getting sold
  • Not enough goods : Under supply - Customers are not getting satisfied

• What are the five contributing factors for global flows and trade? What advantages and problems may some of them cause for the supply chain?

  • Population size and distribution 
    
  • Where to find labor 
  • Where to sell the goods 
  • Urbanisation 
    
  • Good 
  • People living closer to each other 
  • Problem for supply chain 
  • Pollution - Pedestrian areas, not allowed to stay in the city for longer times 
  • Land and resources 
    
  • Sustainability - Take care of the environment

  • Scarcity: Not available everywhere (Ex. Water and electricity) 
  • Technology and information 
    
  • Globalised economy 
    

• What impact does Brexit have on a supply chain?

  • Long waiting time at the borders 
  • Customs (Payment at the border) 
  • Not allowed to enter the country -> 
    
  • High-cost impact 
  • Goods not delivered on time 
  • Unsatisfying consumer experience 
  • Complication of trades 
  • Administrative documents, visas