Operations Management:Midterm Exam – Flashcards
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supply chain
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global network of organizations and activities involved in designing a set of goods and services and their related processes, transforming inputs into goods and services, consuming there goods and services, and disposing of these goods and services
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supply chain management
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the design and execution of relationships and flows that connect the parties and processes across a supply chain
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core capability
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a set of skills that confers competitive advantages to a firm because rival firms cannot easily duplicate them
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lead time
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the amount of time that passes between the beginning and ending of a set of activites
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process capabilities
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the specific types of outputs and levels of performance that process can generate
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maximum capacity
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the highest level of output that a process can achieve under ideal conditions in the short terms: design capacity highest achievable level under ideal conditions for a limited time
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effective capacity
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the level of capacity or output that the process can be expected to produce under normal conditions; what management plans for under normal conditions achievable level under normal conditions; for extended time
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theory of constraints
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the overall management system that strives to improve system performance by identifying, focusing on and managing constraints
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bottleneck
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an activity or resource that limits or constrains the output of a process
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Little's Law
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a proven relationship that exists between flow time, inventory, and throughput flow time is related to the inventory and throughput rate of a process OR f=I/TH
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flow time
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the time it takes one unit to get through a process
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cycle time
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the time that it takes to process one unit at an operation in the overall process
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Kaizen Even
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short-term approach to enhancing efficiency that focuses on improving an existing process or an activity within a process
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product process matrix
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categorizes processes into structures based on output volume and variety shows 5 process structures along the diagonal based on output volume and variety including project, job shop, batch, repetitive process, and continuous process
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make to order
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products that have similar designs but are customized during production
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fixed postion layout
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the layout used when the product cannot be moved during production
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functional layout
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a layout that groups together similar resources like Macy's with shoe departments, jewelry, and womens clothes
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product layout
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a layout where resources are arranged according to a regularly occurring sequence of activities like an automotive assembly line facility organized around product design minimizes line imbalance
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line balancing
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used to assign tasks so that idle time and the number of workstations are minimized
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takt time
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the maximum allowable cycle time at each workstation Takt= available production time per day/ output needed per day ex: 480 minutes/200 pizzas=2.4 minutes per station
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indifference analysis
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a cost based quantitive decision making tool that identifies the production volume at which the total cost of two processes are equal total cost process 1= total cost process 2 fixedcost + (variable*V)=fixed(variable*V) SOLVE FOR V
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total quality management (TQM)
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a business management strategy aimed at embedding awareness of quality in all organizational processes`
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six sigma
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a management program that seeks to improve the quality of process outputs by identifying and removing the causes of defects and variation in the various processes
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standard deviation
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used in 6 sigma measure of the variability or dispersion of a population, data set, or distribution
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pareto analysis
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a technique for separating the critical few causes of problems from the trivial many. sets priorities for action based on the assumption that roughly 80 percent of problems typically result from 20 percent of the possible causes identifies the most critical causes to problems so that improvements efforts can be focused where the investment of time, effort, and money will yield the largest return
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process capability analysis
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a tool for assessing the ability of a process to consistently meet or exceed a product's design specifications
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Just in time
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LEAN SYSTEMS stockless production, zero inventories operations management that emphasizes the minimization of the amount of all the resources (including time) used in the various activities of the enterprise
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lean systems approach
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jit operations management that emphasizes the minimization of the amount of all the resources (including time) used in the various activities of the enterprise values respect
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pull system
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activities in the operating processes are initiated by actual customer demands, and not by forecasted demands. let the customer pull value from the producer process produces only what customers want, when they want it, where they want it.
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push scheduling
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where the product is sent to the next stage of production or delivery irrespective of whether or not an actual demand for the product exists a system in which activities are initiated and products are moved according to a schedule, irrespective of whether or not the customer demands it
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mixed model scheduling
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the practice of leveling quantities of different products models produced over a period of time with the goal of reducing batch sizes and lead times
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characteristics of goods
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tangible product consistent product separate from consumption can be inventoried low customer interaction
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characteristics of services
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intangible inconsistent product definition produced and consumed at the same time cannot be inventoried high customer interaction
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stakeholders
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employees unions local community governement financial investors
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logistics management include
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transportations and traffic warehousing materials NOT CUSTOMER SERVICE
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Operations Strategy
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competitive priorities- product related critical customer- critical to success value proposition- products and services that customers expect capabilities- what do they do well
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Triple bottom line
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full impact of activities on profit people and planet instead of seeking profits, managers today are developing balanced sustainable strategic visions
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utilization
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how much available capacity is actually used
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yield
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usable output from input
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rated capacity
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expected output maximum useable output given the plant's efficiency RC= (effective capacity)(efficiency)
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Implementing product changes may be a good strategy to manage demand when:
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capacity exceeds demand
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design capacity
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the teoretical maximum output of a system in a given period under ideal conditions
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facility layout
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location or arrangement of everything within and around buildings objectives are to maximize customer satisfaction, utilization of space, equipment and people, efficient flow of information, material and people, employee morale and safety
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the main objective of a functional layout is to
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minimize the cost of material handling
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cellular layout
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consists of different machines brought together to make a product temporary arrangement only
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retail/service layout
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design maximizes product exposure to customers decision variables... store floor space
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the main objective of a retail layout is to
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maximize the profitability per square foot of space
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warehouse layout
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design balances space utilization and handling cost similar to process layout
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cross docking
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transferring goods from incoming trucks at receiving docks to outgoing trucks at shipping docks avoids placing goods into storage
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layouts that address trade-offs between space and material handling are referred to as
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warehouse layouts
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assembly line balancing
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analysis of production lines nearly equally divides work between workstations while meeting required output objectives are to maximize efficiency and minimize number of workstations
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minimum number of workstations
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sum of task times ---------------- takt time
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efficiency
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sum of task times ----------------- (actual work stations)(takt time)
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improved quality has the most impact on
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profits
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importance of quality
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cost and market share companies reputations product liability international implications
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what is the most expensive in the long run
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the cost of doing things wrong
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which costs of quality is hardest to quantify
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external costs
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total quality management
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quality system involving entire organization for supplier to customer meet or exceed customer needs through company wide continuous improvements
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a graphical way of identifying the few critical items as opposed to the many less important one is a
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pareto chart
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a schematic technique to discover possible locations of quality problems is a
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cause and effect diagram
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a philosophy of continuous and forced problem solving that drives out wast is referred to as
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just in time
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a way to eliminate waste through a focus on exactly what the customer wants is referred to as
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lean production
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a concept that results in material being produced only when requested and moved to where it is needed just as it is needed is referred to as
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pull system
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objective of a manufacturing operation layout
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employee safety and health adequate production capacity volume and product flexibility reduced material handling cost
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in functional layouts and fixed postion layouts, it is important to minimize the cost of
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material handling
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demings 14 point principles
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