Chapter 11 Process design and analysis Flashcards
any set of activites performed by an organization that takes inputs and transforms them into outputs ideally of greater value to the organization than the original inputs
process
the average time between completions of successive units in a process
cycle time
the ratio of the time that a resource is actually activated relative to the time that it is available for use
utilization
a measure of how well resources are used. according to Goldratts definition, all the actions that bring a company closer to its goals
productivity
a ratio of the actual output of a process relative to some standard. also, being this means doing something at the lowest possible cost
efficiency
the time required to produce a batch of parts
run time
the time required to prepare a machine to make a particular item
setup time
the ouput rate that the process is expected to produce over a period of time
throughput rate/time
the time in which useful work is actually being done on the unit
value added time
the total average investment in raw material, work in process, and finished goods inventory
total average value of inventory
the cost of goods sold divided by the total average of inventory. a measure of the expected number of times that inventory is replaced each year
inventory turn
the number of days of inventory of an item
days of supply
a production environment where the product is built directly from raw materiuals and components in response to a specific customer order
make to order
a production environment where the customer is served “on demand” from finished goods inventory
make to stock
