The Blank Slate - Schm

1. Compare Basic Service to Customer Success

Availability/Lead Time/Service Reliability expectations vs. Whatever Customer needs to win in the marketplace

2. What are the 3 key dimensions of Basic Service

Availability/Lead Time/Service Reliability

3. How does a supplier learn what constitutes Customer Success?

Ask/work closely with customer

4. Provide an example of a product in each of the following categories:

a. Engineer to order Custom House

b. Make to order 787

c. Assemble to order Subway sandwich

d. Make to stock Toyota Camry

5. What of the above product categories has the longest lead time?

Engineer to Order

6. Bob’s bicycles had the following monthly performance:

a. 98% orders shipped complete

b. 97% of orders shipped on time

c. 99% of orders shipped damage free

d. 96% of orders shipped with correct paperwork

e. What % of orders were “perfect”?

i. .98x.97x.99x.96=.903\

7. Name 2 ways that the level of customer expectations change.

Another supplier ups the standard offering

Another customer demands/compels better supplier offering

8. Define “performance gap” in regards to customer satisfaction

Shortfall to performance standard

9. What is the best way to know if a customer is satisfied?

Ask

10. Which market orientation would you consider for a standard product that has infrequent demand? Why?

If critical for a critical customer, make to order. If not critical, consider dropping SKU

11. Define 4 dimensions of product quality?

a. Performance/Features/Reliability/Durability

b. Extra credit—define 2 more Conformance/Aethetics/After Sales support

12. Define Total Quality Management

a. Integrated business management strategy to embed quality in all processes

13. Provide an example of 4 quality cost categories

Appraisal/Prevention/Internal Failure/External Failure

14. TQM is focused on problem prevention rather than fixing problems from customers. Agree or Disagree? Support in 2 sentences or less

a. Yes-more effort on prevention/conformance

15. Six Sigma equals approximately ____ parts per million defects

3.4

16. What is the operational objective of Six Sigma? (Better quality is not specific enough)

Reduce variability

17. What is a downside often experienced with the implementation of Six Sigma?

Stifles innovation

18. Describe a logistics cost-to-service trade-off?

Transportation cost vs. Scheduled delivery

Expedited freight

19. Define Total Landed Cost

Sum of all product and logistics related costs, including inventory carrying costs

20. What trends have made logistics management more important in recent years?

Globalization/JIT/Amazon Effect/Ecommerce/Outsourcing

21. What is meant by the phrase “information replaces inventory”?

Timely info on inventory in multiple tiers

Transparency

22. List 4 common modes of transportation

RR/Truck/Water/Pipeline/Air

23. What is the “economy of distance”?

Per mile costs drop with longer distances as you leverage fixed costs of loading and unloading

24. List 2 cost categories that contribute to the economy of distance

Load and Unload

Intercity Congestion

25. What is logistics consolidation?

Combining loads to reduce transport costs

Market area/Pooled/Scheduled Delivery

26. Define pooled delivery consolidation

Use of third party(e.g., UPS) to consolidate shipments from different shippers going to the

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