Chapter 6 - Manufacturing Processes Flashcards
The time needed to respond to a customer order.
Lead Time
Where inventory is position in the supply chain
Customer order decoupling point
A production environment where the customer is served “on-demand” from finished goods inventory.
Make-to-stock
A means of achieving a high level of customer service with minimum levels of inventory investment.
Lean Manufacturing
A production environment where preassembled components, subassemblies, and modules are put together
Assemble-to-order
A production environment where the products is built directly from raw materials and components in response to a specific customer order.
Make-to-order
Firms works with the customer to design and make the product.
Engineer-to-order
Total investment in inventory at the firm, which includes raw material, work-in-process, and finished goods.
Total Average Value of Inventory
An efficiency measure where the COGS is divided by the total average value of inventory.
Inventory turn
A measure of the number of days of supply of an item.
Days-of-supply
Mathematically relates inventory, throughput, and flowtime.
Little’s law
Material held by firm for future use
Inventory
Average rate (e.g. units/day) that items flow through process.
Throughput
The time it takes one unit to completely flow through a process
Flow Time
the strategic decision of selecting which kind of production processes to use to produce a product or provide a service.
Process selection
