CH 6 - Manufacturing Processes Flashcards
What are the three steps required to make something?
- Sourcing the parts
- Making the item
- Sending item to customer
Time needed to respond to a customer order is called?
Lead Time
Determines where inventory is positioned to allow processes or entities to operate independently is called?
Customer Ordering Decoupling Point
What’s the potential trade off when responding quickly to customer demands?
Can come at the expense of greater inventory due to finished goods being more expensive than raw material
Firms that serve customers from finished goods inventory
Make-To-Stock
Firms that combine a number of preassembled modules to meet customer’s specifications
Assemble-To-Order
Firms that make customer’s products from raw materials, parts, and components
Make-To-Order
Firm that works with customer to design a product and then make it from purchased materials, parts, and components
Engineer-To-Order
Make-To-Stock firms invest in __________ programs in order to achieve higher service levels for a given inventory investment
Lean Manufacturing
What two states can a material in process be in?
First state is where the material is moving or “in transit”
Second state is where the material is sitting in inventory and acting as a “buffer” waiting to be used
Material that is in a manufacturing process in a factory can also be called?
Work In Process Inventory
Sum of the value (at cost) of raw material, work in process, and finished goods inventory
Total Average Value of Inventory
What is the essential issue in satisfying customers in the Make-to-Stock environment?
To balance the level of finished inventory against level of service to the customer
What measure should you use if you want to evaluate the performance of a process?
Inventory Turn
Long term average rate that items are flowing through the process
Throughput