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•Customer service studies should be used as the basis for identifying key service requirements on which to design suitable logistics processes.
•Relationship mapping. This is used at an early stage of logistics process design to identify the main departments within a company (or across the broader supply chain if this is possible) that are specifically involved in a particular process. As well as identifying these key departments, so that they can be brought into the design process, this will help to pinpoint the major relationships and will highlight the complexity within any particular process, thus indicating its need for redesign.
•Process charts. These can be represented in a variety of different guises, whether by straightforward flowcharts or by a matrix. The flowchart approach can be based on traditional flowcharting techniques. This is useful because standard shapes are used to represent different types of activity (storage, movement, action, etc), and the importance of flows can be highlighted in terms of the number of movements along a flow. The matrix chart provides a more systematic way of representation and can be beneficial where time is to be represented.
•Value/time analysis. This type of analysis can be used to identify where in a process value is actually added to the product. The aim is to highlight those parts of the operation that provide a cost but add no value. Traditionally, for most manufactured products, value is added when a process changes the nature of the product (such as production, which alters the physical attributes, or transport, which alters the physical location). Value is not added, but waste occurs through the passing of time, when the product is stored (as work-in progress or as finished goods stock in a depot).
•Time-based process mapping. This is another method of identifying and eliminating wasted time in a process. The idea is to understand and record a process in detail and to be able to identify what is active or useful time and what is wasted time. The output from such an exercise is the opportunity to engineer the wasted time out of the process so that service is improved and cost is reduced through a reduction in the overall time taken to complete the process.
The simple steps are:
1. Map the process by 'walking' through the actual operation and recording the key steps and the associated time taken.
2. Identify and differentiate between what is value adding (e.g. necessary) and what is non-value adding (e.g. unnecessary) and record this.
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3. Calculate the relative time spent on the different activities and identify the most appropriate for improvement.
1. Match the words or phrases on the left with the definitions on the right.
1) to adopt requirements |
a) evaluate (something) by comparison |
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2) to align |
b) to send an invoice to (someone) for |
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3) to ally |
c) assess the importance, effect, or value |
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of (something) |
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4) to benchmark |
d) of great importance |
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5) to collate |
e) to maintain regular surveillance over |
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6) contingencies |
f) the way a thing turns out |
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7) crucial |
g) something that has become out of |
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dated |
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8) demarcation |
h) goal, target |
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9) depot |
i) |
to increase |
by a |
fixed |
amount or |
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degree, and to seem unlikely to decrease |
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again |
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10) disposal |
j) choose (someone or something) from |
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a number of alternatives |
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11) feasible |
k) succeed in dealing with (a problem or |
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difficulty) |
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12) flowchart |
l) to set aside before a need arises for a |
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purpose |
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13) guise |
m) a provision for a possible event or |
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circumstance |
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14) imperative |
n) |
give |
support |
to |
(a person, |
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organization, or cause) |
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15) inextricably |
o) to plan a route or course of action in |
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detail |
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16) to invoice |
p) unnecessary, especially through being |
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more than enough |
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17) to map out |
q) |
a number |
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or string of |
alpha and |
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numeric characters that uniquely identify |
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a product |
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18) to measure |
r) of vital importance; crucial |
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19) to monitor |
s) a balance achieved between two |
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desirable but incompatible features; a |
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compromise |
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20) objective |
t) the action of fixing the boundary or |
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limits of something |
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21) obsolescence |
u) put (thoughts, speech, or data) into |
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written or printed form |
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22) an outcome |
v) to join someone and support them |
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23) to overcome |
w) enough; adequate |
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24) partial |
x) a place for the storage of large |
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quantities of equipment, food, or goods |
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25) peripheral |
y) smooth and continuous, with no |
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apparent gaps or spaces between one |
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part and the next |
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26) to pick |
z) the arrangement of something |
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27) to pre-allocate |
aa) to accept requirements |
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28) to ratchet up |
bb) impossible to escape from |
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29) to scrap |
cc) incomplete |
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30) seamless |
dd) of secondary or minor importance; |
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marginal |
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31) stock keeping units |
ee) possible and practical to do easily or |
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conveniently |
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32) sufficient |
ff) an external form, appearance, or |
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manner of |
presentation, |
typically |
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concealing the true nature of something |
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33) superfluous |
gg) discard or remove from service (a |
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redundant, old, or inoperative vehicle, |
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vessel, or machine) |
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34) а trade-off |
hh) compare and analyse |
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35) to transcribe |
ii) a diagram of the sequence of |
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movements or |
actions of |
people or |
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things involved in a complex system or activity
2. Give opposites to the following words from the text:
Sufficient, ability, availability, dependent, advantage, possible, effective, suitable, understand, appropriate.
3. Define whether the sentences are True or False.
1.Benchmark processes are seen to be important to the supplier and must be of at least an acceptable standard even to begin to compete satisfactorily in a given market.
2.Only excellence in competitive processes provides a competitive edge and ensures that the company is active and successful.
3.It is an easy process for a company to develop a suitable process to cover all possible contingencies.
4.There are six typical differentiating factors that are fundamental to most logistics.
5.The first step is detailed flow mapping exercise for design or redesign.
6.Once the detailed flow mapping has been completed and opportunities for improvement have been identified, it is useful to set up a specific team to undertake the remaining stages of the process redevelopment.
7.The implementation of any changes to logistics processes is undertaken on a regularly basis.
8.By identifying the major elements of any business or operation it is scarcely to ensure that any assessment is based specifically on the key aspects and is not taken up with the peripheral detail.
9.Process charts can be represented in a variety of different guises, whether by straightforward flowcharts or by a matrix.
10.The idea of time-based process mapping is to understand and record a process in detail and to be able to identify what is active or useful time and what is wasted time.
4.Comprehension/interpretation:
1.What are the three essential elements of key logistics processes redesigning?
2.What are the typical differentiating factors?
3.What are the five steps to design/redesign the logistics processes?
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4.Name other tools and techniques that can be used to help with logistics processes redesign.
5.What is Pareto analysis concept?
6.Why is market or customer segmentation necessary for the design of suitable sogistics processes?
7.When is relationship mapping used?
8.Where can process charts be represented? What is their use?
9.What is the aim of value/time analysis?
10.What is the idea of time-based process mapping?
5.Give explanations to the following processes.
Order fulfillment
New product introduction New product development Product returns
The provision of spares Information management
6.Fill in the gaps with missing prepositions.
1.One of the main problems with logistics processes is that they are very often tied
___ _____ a number of different functional elements of the business.
2.Stock may appear to be available but is actually pre-allocated ___ another customer.
3.Different goods may be picked because the original requirement is ___ ___ stock so the 'next best' is selected.
4.The customer may not be informed _____ this.
5.For some 'make-to-order' manufacturing operations, this will also have an impact
___ the production process itself.
6.There are many logistics issues related ____ the introduction of new products into the marketplace.
7.Standard processes are designed to deal _____known products.
8.The first is that the product takes ____ very quickly and very well and there is insufficient ability ___ the supply chain to ratchet ___ supply ____ the required levels.