A supply manager is responsible for the raw material supply to a manufacturing operation. After three months of successfully meeting key performance indicators (KPIs), the supply manager conducts a meeting with stakeholders---including engineers, manufacturing technicians, supply chain personnel, and finance team members---to solicit their feedback regarding the raw material supply chain. Which of the following quality management principles is the supply manager executing?
The supply manager's actions align with the principle of continuous improvement, a key component of quality management. By gathering feedback from various stakeholders, the manager seeks to enhance the supply chain's performance, addressing issues and optimizing processes. This approach fosters a culture of ongoing enhancement, supported by Total Quality Management (TQM) principles.
Over the past 90 days, a buying company's manufacturing engineers have reported an increase in the number of defective parts received from a key supplier. The engineers report that there are three different types of defects occurring, and that they are all being discovered during production. The supplier states that it does not have enough resources to assess the root cause of the three types of defects all at one time. Which of the following should the buying firm do in this instance?
Working with engineering to assess the impact of each defect type on customers helps prioritize corrective actions effectively. Addressing the defect with the highest customer impact first ensures that resources are focused on the most critical issues, improving product quality and customer satisfaction.
A large retailer and one of its suppliers establish a process to combine intelligence from both organizations in order to improve product availability while reducing inventory, transportation, and logistics costs. This process is known as which of the following?
The process described is Collaborative Planning, Forecasting and Replenishment (CPFR), which involves both the retailer and supplier working together to improve product availability and reduce costs associated with inventory, transportation, and logistics. Reference: CPFR is a widely adopted strategy in supply chain management to enhance collaboration and optimize the supply chain.
Through cycle counting, a supply manager learns that inventory inaccuracies are being caused by errors made when received goods are entered into the company's enterprise business system. Which of the following is the FIRST course of action the supply manager should take to reduce these inaccuracies?
Forming a process improvement team using quality management techniques is the first course of action. This team can analyze the root causes of errors in data entry, using systematic methods to identify and eliminate inaccuracies, thereby improving the accuracy of inventory records.
Which of the following refers to the practice of buying a commodity on the open market for immediate delivery?
Spot buying refers to the purchase of commodities on the open market for immediate delivery. This practice is typically used to meet urgent needs or take advantage of favorable market conditions. It contrasts with forward buying, which involves purchasing for future delivery to lock in prices or quantities.
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