improving supply chain operations,

V Assessment Questions

1. Where do opportunities reside in improving supply chain operations, and how has VSM helped to reveal these? 75 words in length.

There may be some significant opportunities to reduce cost in this supply chain. Pro Fishing could analyze the total cost of the network, not just the cost of parts quoted by Manufacturing, Inc. They should also look at the efficiency (cost) of the 2 tier suppliers in the network.
“Value stream mapping is a special type of flowcharting tool that is valuable for
the development of lean processes” (Jacobs & Chase, 2010). VSMs provide easier
“identification of wasted processes” that allows for opportunities for process
improvement (Jacobs & Chase, 2010). These opportunities for improving the supply
chain generally lie in the non-value adding activities and thus makes it important to
identify these activities and make them as lean as possible (Jacobs & Chase, 2010).

2. As a supplier, which factors about a buyer (your potential al customers) would you consider to be important in setting up a long-term relationship? 75 words in length.

The financial stability and credit worthiness of the company is of primary importance. The
reputation of the company visavis their supplier is also very important. For example, is this a
company that is fair with its suppliers and honors its payables in a timely fashion? Is the
technological match between supplier and customer sufficient? Will delivery schedules and
quantities be stable, facilitating smooth operations?

3. Describe the differences between functional and innovative products. Your response should be at least 75 words in length.

Functional products are staples that people buy in a wide range of retail outlets. Typically, they do not change much over time, have low profit margins, stable predictable demand and long life cycles. Innovative products, on the other hand, give customers additional reasons to buy. Fashionable clothes and personal computers are examples of innovative products. Innovative products have short life cycles, high profit margins, and volatile demand. Another point is the stability allows for competition, and in some cases leads to lower profit margins.

4. List the types of stakeholders that would be considered in a payoff analysis. What are benefits of using balanced scorecard, and process dashboards? 75 words in length?

The five types of stakeholders that are impacted by payoff analysis are customers,
stockholders, employees, suppliers, and the community (Jacobs & Chase, 2010). Thus it
is important that all stakeholders be taken into account during payoff analysis. Balanced
scorecards provide a performance measurement for each stakeholder group that “is
tailored to what senior management and branch-level management can control” (Jacobs
& Chase, 2010). “Process dashboards are designed to provide summary performance
updates for specific processes” (Jacobs & Chase, 2010).
5. What motivations typically cause firms to initiate a facilities location or relocation project? 200 words in length.

There are a variety of reasons; both positive and negative. Firms may wish to move closer to
markets or sources of supply. Cost reduction is another major reason. A company might
need an educated work force, thereby moving near a major university. For most firms the based approach to implementing a location strategy is to find a location that answers the various department needs of a company and it’s long range objective, and searching for locations with offerings that are compatible with the needs of its customers. In most case a organization attempts to maximize opportunity while minimizing costs and risks. A organization location strategy is often conform with, and be part of its overall corporate strategy to move the company forward in order to remain competitive. Generally, this means the firm will attempt to maximize opportunity while minimizing costs and risks.
A company’s location strategy should conform with, and be part of, its overall corporate strategy. Hence, if a company strives to become a global leader in telecommunications equipment, for example, it must consider establishing plants and warehouses in regions that are consistent with its strategy and that are optimally located to serve its global customers. A company’s executives and managers often develop location strategies, but they may select consultants (or economic development groups) to undertake the task of developing a location strategy, or at least to assist in the process, especially if they have little experience in selecting locations. A company must determine what size property or facility it needs which considering what their infrastructure requirements will be , including with the new facility.

6. How do facility location decisions differ for service facilities and manufacturing plants?

In many ways, the decisions are similar. The type of facility is a major determinant of its location. The factors that are important for determining the location of a manufacturing plant are usually different from those that are important in locating a service facility or a warehouse. However, since the customer is often involved in the production of the service, proximity to the customer is of greater importance. Services often utilize multiple sites to remain close to the customer. Market needs impact services location decisions. Alternatively, resource considerations have much more impact on manufacturing.

In addition, the cost of establishing a service facility is relatively low when compared to
manufacturing. Manufacturing decisions are often based on cost minimization while service
decisions are based on profit maximization. The type of facility is a major determinant of its location. The factors that are important for determining the location of a manufacturing plant are usually different from those that are important in locating a service facility or a warehouse. In this section we discuss the major categories of facilities and the different factors that are important in the location decision. Factors in the location decision for plants include construction costs, land costs, modes of transportation for shipping heavy manufactured items and receiving bulk shipments of raw materials, proximity to raw materials, utilities, means of waste disposal, and labor availability. Sites for manufacturing plants are normally selected where construction and land costs can be kept at a minimum and raw material sources are nearby in order to reduce transportation costs. Access to railroads is frequently a factor in locating a plant. Environmental issues have increasingly become a factor in plant location decisions. Plants can create pollution, including raw material wastes, burning and air pollution, noise pollution, and traffic pollution. These plants must be located where the harm to the environment is minimized. Although proximity to customers is a factor for some facility types, it is less so for manufacturing plants.

Reference
Jacobs, F. R., & Chase, R. B. (2010). Operations and supply chain management (13th
ed.). New York, NY: McGraw-Hill.
Unit V Case Study Pro Fishing Boats – A Value Stream Mapping Exercise 3 Questions
The case study for Unit V is “Pro Fishing Boats – A Value Stream Mapping Exercise.” The case is presented on page 444 of the textbook. Respond to the questions at the end of the case on page 444. Your responses should be complete but succinct.
1. Create a value stream map (VSM) of this supply chain. What other information is
needed?
The other essential information that is needed includes:

Key additional information that may be required is the details of strict qualification required for the Pro Fishing’s Supplier. Also, knowledge about the primary source of raw material is needed. Transportation cost should be known. Details about usage of the raw material are also very important. Last but not the least, cost of the labor should also be known. Value stream map is meant to reduce the level of wastage of resources and the best solution to this is the proper accounting of the individual costs.

2. Where is there risk for supply chain disruptions or stoppages to the flow of materials?
There are many potential risks for stoppages in the supply chain. The potential risk of stoppage is due to environmental issues that can affect trucking to the Shanghai port, shipping to the USA, train to Chicago, and trucking to the Pro Fishing warehouse. Another issue is the supply of raw materials. If they become low or run out they can cause a delay in the supply chain. They could run out due to use by the company or if a competitor purchases and uses the materials themselves. Another potential transportation delay is with the transfer of goods from one mode of transportation to another due to labor issues.
3. Where do opportunities reside in improving supply chain operations and how has value stream mapping (VSM) help to reveal these?
Perhaps the biggest opportunity that I see in the supply chain is the amount of time that it takes for goods to go from Manufacturing Inc to the Pro Fishing Plants. Many of the inventory buffers should be reduced and the transfer times of goods from one mode of transportation to another can be sped up. The decrease in time will help increase the number of products able to produce and increase the income. It is also important that the firm develop more reliable sources of raw material especially closer to the plants as this will allow for less transportation time of components. When it comes to opportunities they can be found in and by increasing the visibility of the current status of a well run plant. It can also reduce the time frame and buffer inventory of manufacturing organization can be reduced holding and shipping times especially in a Fishing Plant.

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