Chapter 5- Projects

Question 1

Process

Answer 1

Any set of activities performed by an organization that takes inputs and transforms them into outputs ideally of greater value to the organization than the original inputs.

Question 2

Cycle time

Answer 2

The average time between completions of successive units in a process (this is the definition used in this book). The term is sometimes used to mean the elapsed time between starting and completing a job.

Question 3

Utilization

Answer 3

The ratio of the time that a resource is actually activated relative to the time that it is available for use.

Question 4

Buffering

Answer 4

A storage area between stages where the output of a stage is placed prior to being used in a downstream stage. Buffering allows the stages to operate independently.

Question 5

Blocking

Answer 5

The activities in the stage must stop because there is no place to deposit the item just completed.

Question 6

Starving

Answer 6

The activities in a stage must stop because there is no work.

Question 7

Bottleneck

Answer 7

A resource that limits the capacity or maximum output of the process.

Question 8

Make-to-order

Answer 8

A process that is activated only in response to an actual order.

Question 9

Make-to-stock

Answer 9

A process that produces standard products that are stored in finished goods inventory. The product is delivered quickly to the customer from the finished goods inventory.

Question 10

Hybrid

Answer 10

Combines the features of both make-to-order and make-to-stock. Typically, a generic product is made and stocked at some point in the process. These generic units are customized in a final process to meet actual orders.

Question 11

Pacing

Answer 11

Movement of items through a process is coordinated through a timing mechanism. Most processes are not paced, but assembly lines usually are paced.

Question 12

Productivity

Answer 12

The ratio of output to input. Taking the dollar value of the output and dividing by the dollar value of the inputs usually measures total factor productivity. Alternatively, partial factor productivity is measured based on an individual input and often is not calculated using dollar values (an example would be units/person).

Question 13

Efficiency

Answer 13

A ratio of the actual output of a process relative to some standard.

Question 14

Run time

Answer 14

The time required to produce a batch of parts.

Question 15

Setup time

Answer 15

The time required to prepare a machine to make a particular item.

Question 16

Operation time

Answer 16

The sum of the setup time and run time for a batch of parts that are run on a machine.

Question 17

Flow time

Answer 17

The average time that it takes a unit to move through an entire process. Usually the term lead time is used to refer to the total time that it takes a customer to receive an order (includes time to process the order, throughput time, and delivery time).

Question 18

Throughput rate

Answer 18

The output rate that the process is expected to produce over a period of time.

Question 19

Process velocity or throughput ratio

Answer 19

The ratio of the total flow time to the value-added time.

Question 20

Value-added time

Answer 20

The time in which useful work is actually being done on the unit.

Question 21

Total average value of inventory

Answer 21

The total average investment in raw material, work-in-process, and finished goods inventory. This is valued at the cost to the firm.

Question 22

Inventory turn

Answer 22

The cost of goods sold divided by the total average value of inventory.

Question 23

Days-of-supply

Answer 23

The number of days of inventory of an item. If an item were not replenished, this would be the numbers of days until the firm would run out of the item (on average). Also, the inverse of inventory turn expressed in days.

Question 24

Little’s law

Answer 24

States a mathematical relationship between throughput rate, flow time, and the amount of work-in-process inventory. Flow time is equal to work-in-process divided by the throughput rate.

Question 25

5A) Job design

Answer 25

The function of specifying the work activities of an individual or group in an organizational setting.

Question 26

5A) Sustainable workplace

Answer 26

A workplace that fully supports the organization without compromising future generations.

Question 27

5A) Specialization of labor

Answer 27

Simple, repetitive jobs are assigned to each worker.

Question 28

5A) Job enrichment

Answer 28

Specialized work is made more interesting by giving the worker a greater variety of tasks or by getting a worker involved in planning, organization, and inspection.

Question 29

5A) Sociotechnical systems

Answer 29

A philosophy that focuses on the interaction between technology and the work group. The approach attempts to develop jobs that adjust the production process technology to the needs of the worker and work group.

Question 30

5A) Work measurement

Answer 30

Job analysis for the purpose of setting time standards.

Question 31

5A) Time study

Answer 31

Separation of a job into measurable parts, with each element timed individually. The individual times are then combined, and allowances are added to calculate a standard time.

Question 32

5A) Work sampling

Answer 32

Analyzing a work activity by observing an activity at random times. Statements about how time is spent during the activity are made from these observations.

Question 33

5A) Predetermined motion-time data systems (PMTS)

Answer 33

Systems for deriving a time for a job by summing data from tables of generic movement times developed in the laboratory.

Question 34

5A) Elemental data

Answer 34

Used to derive a job time by summing times from a database of similar combinations of movements.

Question 35

5A) Normal time

Answer 35

The time that a normal operator would be expected to take to complete a job without the consideration of allowances.

Question 36

5A) Standard time

Answer 36

Calculated by taking the normal time and adding allowances for personal needs, unavoidable work delays, and worker fatigue.