1.1 Introduction

Question 1

Whats the Order Penetration Point?

Give three examples

Answer 1

OPP
seperates customer neutral from customer specific processes

1. Make to stock: a lot customer neutral, standardized product and only buy whats produced
2. Assemble to order or Make to order: more customer specific (make to order even more); can select from components
3. engineer to order: only specific

The more customer specific, the longer it takes (waiting for production)

Question 2

Definition Throughput Time

1.
2.

Answer 2

TPT= total period of time that elapses for an input to be transformed into an output

The lower, the leaner the process

Question 3

1. How do the OPP and the Operating Model of a company depend on another?
2. Why is it important for a company to control its OPP and what may happen if this is not done?

Answer 3

1. they define each other
2. TIME: choice of OPP sates how much time we have to serve customers and how flexible you are to respond to customer requirements

Question 4

How do the OPP, the material throughput time and the order lead time affect each other?

1.
2.

Answer 4

• material TPT indirectly affected by OPP; how lean you manage your production
• by placing OPP you define how long your lead time is

Question 5

Difference between…

1. Engineer to order
2. make to stock production

Answer 5

1. customer is involved and can affect; first sell, then produce
2. product created and stocked in warehouse; produced before sold

Question 6

Order Lead Time Definition

1.
2.

Answer 6

the time from accepting the order to delivery to the customer

a measure for reactivity towards the customer

Question 7

Whats the formula of Littles Law and its components?

What are its conditions?

1.
2.
3.

Answer 7

• average TPT = average Inventory / average throughput T (pcs/t)

1. process is in steady state: new pieces enter the same as they are leaving
2. all pieces finish the process
3. over a long period observed

Question 8

Definition Bottleneck

Answer 8

the process step with the longest cycle, because its thoroughput determines the throughput of the entire process

Question 8

What are the following parameters

1. Reach of Stock
2. Share of value added time

Answer 8

1. how long an inventory will hold to keep a process running (often in days measured)
   average inventory / throughput
2. process time (h)/ TPT * 100%

Question 9

Definition and Characteristics of Services + FOCUS

1.
2.
3.
4.

Answer 9

• intangible
• includes an external factor
• consumption at the same time
• focus on capacity utilization and resource availability (!)

Question 10

Definition and Cahracteristics of Goods + FOCUS

1.
2.
3.
4.

Answer 10

• material good
• quality can be tested beforehand
• timely distant consumption
• Focus on purchasing costs, production costs