Question:
What is Material Management?
Answer
Material management is the process of planning, programming, organizing, directing, controlling and co-ordinating activities involving materials that are directly or indirectly used in producing a good or service.
Explanation
Material management begins with the raw materials or resources, and progresses with all the activities that convert raw materials to end products. The five R's principles of material management are to procure the right materials, in right quantity, of right quality, at right time, from right sources, at right prices.
Question:
What are possible ways to overcome the bullwhip effect" for companies?
Answer
Among the possible ways to overcome bullwhip effect include:
- Streamlining the supply chain by reducing the number of suppliers and tiers in the supply chain to facilitate better communication across teams. With better communication, it is easier to decrease fluctuations that may create bullwhip effect. This may be achieved by using technology like automation of the supply chain.
- Optimizing inventory management which involves keeping track of the stock levels, demand and orders using software's to manage inventory. This ensures there is accurate ordering from the suppliers which decreases bullwhip effect.
- Minimizing sales and discounts which helps to maintain a steady price point even at times when there is market fluctuations.
- Maintaining a consistent and small order sizes which can be achieved by encouraging orders according to customer needs rather than offering bulk discounts to attract customers.
Question:
A process may still be out of control even though no defective product or service is produced.
True or False
Answer
TRUE
Explanation
A process may produce marginally acceptable items while still out of control, Tritsch (P. 331). One explanation for this is that even the best inspection process screens out only a portion of the defective goods, which means some goods may be defective but not detected by the process.
Reference
Statistical Quality Control: A Loss Minimization Approach
By Dan Trietsch Page 331
Question:
What is the difference between a dream and a goal?
A. a dream is fantasy based and a goal is reality based
B. none of these correct
C. a dream is reality based and a goal is fantasy based
D. a dream has arms and a goal has legs
Answer
A. a dream is fantasy based and a goal is reality based
Explanation
An organization goal is strategically set objective which outlines the expected results and which is used to guide the efforts of all employees. A goal can be tactical, strategic, or operational. On the other hand, a dream is a fantasy result expected after a given period of time or which is used to motivate employees. A goal can be easily identified if met, but it is difficult to determine when a dream is achieved.
