Ch 6-8 Flashcards
Assembly line balancing
assign tasks to series of workstations so that the required cycle time is met, idle time minimized
What are the three main steps in production processes?
- Source the parts needed
- Make the product
- Deliver the product
Define lead time in production processes.
The time needed to respond to a customer order
What is the customer order decoupling point?
Inventory is positioned to allow entities in the supply chain to operate independently (the transition from producing goods based on forecasts to producing based on actual customer demand)
What is lean manufacturing?
A means of achieving high levels of customer service with minimal inventory investment
Describe a Make-to-Stock production environment.
A production environment where the customer is served ‘on-demand’ from finished goods inventory
What is the primary task in an Assemble-to-Order production environment?
Defining a customer’s order in terms of alternative components carried in inventory
What does Make-to-Order production entail?
The product is built directly from raw materials and components in response to a specific customer order
What characterizes Engineer-to-Order production?
The firm works with the customer to design and then make the product
What is the essential issue in Make-to-Stock environments?
Balancing the level of inventory against the level of customer service
What is production process mapping?
Developing a high-level map of a supply chain process to understand material flows and inventory holding
What are the components of total average value of inventory?
- Raw materials
- Work-in-process
- Finished goods
What does Little’s Law state?
Inventory = Throughput rate × Flow time
“project” layout in production system design?
product remains in a fixed location; equipment is moved to the product
Define a work center layout.
Arranging work centers in a way that optimizes the movement of material
What is an assembly line design characterized by?
A fixed sequence of workstations designed to achieve a specific production rate
What is workstation cycle time?
A uniform time interval in which a moving conveyor passes a series of workstations
List the five features of a service package.
- Supporting facility
- Facilitating goods
- Information
- Explicit services
- Implicit services
What is the significance of service blueprinting?
It distinguishes between high customer contact aspects and unseen activities
What are poka-yokes?
Procedures that block inevitable mistakes from becoming service defects
What is the central problem in many service settings?
Management of waiting time
What are the factors affecting waiting lines?
- Number of arrivals
- Customers demand varying amounts of service
- Control over arrivals
- Service time
What is the purpose of segmenting customers in queue management?
To optimize service delivery and customer satisfaction
Define the aggregate operation plan.
A plan for labor and production for the intermediate term to minimize the cost of resources needed to meet demand
What is the main goal of sales and operations planning?
To help firms provide better customer service, lower inventory, and stabilize production rates
What is long-range planning?
Planning focusing on a horizon greater than one year, usually performed annually
What does the chase strategy in production planning entail?
Hiring and laying off employees as the order rate fluctuates
What is the formula for production?
Production = Production rate × Workforce level
What is the intermediate-range planning period for production planning?
3 to 18 months
What are the key trade-offs involved in production planning strategies?
- Workforce size
- Work hours
- Inventory
- Backlogs
Define the chase strategy in production planning.
Hire and lay off employees as the order rate varies
What characterizes a stable workforce strategy?
Variable work hours
What is the level strategy in production planning?
Maintain a stable workforce working at a constant output rate
What is a pure strategy in production planning?
Uses just one of the planning approaches
What is a mixed strategy in production planning?
Uses two or more planning approaches
What are relevant cost types in production planning?
- Basic production costs
- Costs associated with changes in production rate
- Inventory holding costs
- Backorder costs
What do operations managers need to submit to receive funding?
Annual or quarterly budget requests
What does an aggregate plan provide?
Justification for the requested budget amount
What does accurate medium-range planning increase the likelihood of?
- Receiving the requested budget
- Operating within the limits of the budget
What is the cut-and-try approach in aggregate planning?
Costing out various production planning alternatives and selecting the best one
What is linear programming in aggregate planning?
Use of mathematical analysis to determine an optimal plan
What is simulation in aggregate planning?
What-if analysis using simulated demand to evaluate effectiveness of alternative plans
Define yield management.
Allocating the right type of capacity to the right type of customer at the right price and time to maximize revenue(hotels, airlines)
What are characteristics of demand in yield management?
- Demand can be segmented by customer
- Fixed costs are high and variable costs are low
- Inventory is perishable
- Product can be sold in advance
- Demand is highly variable
What is a key requirement for pricing structures in yield management?
Must appear logical to the customer and justify different prices
What are some management strategies for operating yield management systems?
- Scheduling additional personnel to meet peak demand
- Increasing customer self-service
- Creating adjustable capacity
- Utilizing idle capacity for complementary services
- Cross-training employees to create reserves for peak periods
Project (Org of Production Processes)
remains in fixed location, equipment is moved to the product
Work Centre “Job Shop” (Org of Production Processes)
Similar equipment or functions grouped together
Manufacturing Cell (Org of Production Processes)
dedicated area where products w similar processing requirements are produced
Assembly line (Org of Production Processes)
work process arranged according to progressive steps which the product is made
Continuous Process (Org of Production Processes)
flow is continuous, like liquids
