Industrial Production & Supply Chain Management: A Student Guide
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20 cards
Question: What does Alan Goodfellow describe as “one of the main goals of any company”?
Answer: To reduce costs and obtain best value when purchasing goods and services.
Question: What advantage does being part of a larger group of companies (like Danaher) give Leica Microsystems?
Answer: Access to better purchasing power and resources through the larger group.
Question: How does a reverse auction work in purchasing?
Answer: Suppliers bid against each other to lower their prices, with the buyer awarding the contract to the lowest (or best) bid.
Question: Why is a reverse auction called “reverse”?
Answer: Because suppliers compete by lowering prices, the usual buyer-driven pricing process is reversed.
Question: What does Alan mean by “price isn’t everything” in supplier selection?
Answer: Other factors—such as quality, reliability and overall value—matter, not just the lowest price.
Question: What consequence follows from recognizing that “price isn’t everything”?
Answer: Companies may avoid choosing the absolute cheapest supplier if doing so compromises quality or other important factors.
Question: What advantages does having factories in Singapore and China provide?
Answer: Access to manufacturing capacity in Asia, closer proximity to regional markets, and potential cost advantages.
Question: Why does Alan say operating factories in China and Singapore is not outsourcing?
Answer: Because the company owns and operates those factories rather than contracting external suppliers.
Question: What initial problem did Leica face with staff in China?
Answer: High staff turnover: after training, employees were attracted away by other companies, making retention difficult.
Question: Fill the gap: What were the main problems when first setting up in China?
Answer: Problems mainly to do with recruiting local staff, particularly staff retention, because the economy was expanding so much.