Chpt 6 Flashcards
What are process innovation projects typically chartered in response to?
In response to a breakthrough process innovations
What is the common performance improvement range for process innovation projects within 12 months?
50% to 100%
What are important issues in process design?
Types (of processes), planning, analysis and innovation, and technology decisions.
What does process planning determine?
How a product will be produced or a service provided.
What decisions are made during process planning?
- What will be made in-house vs. supplier
- Which processes to use
- Development for specifications of manufacture and delivery
What factors determine the type of production process selected?
Demand volume and degree of product standardization.
What is project production?
Projects are produced one at a time to customer order.
What is batch production used for?
To process a variety of low-volume jobs.
What does mass production produce?
Large volumes of a standard product for a mass market.
What is continuous production used for?
Very high-volume commodity products.
What is break-even analysis?
Examination of cost trade-offs associated with demand volume.
What are the components of break-even analysis?
- Volume (the level of production) 2. Cost (both fixed and variable)
- Revenue (the price at which an item is sold)
- Profit (the difference between total revenue and total cost)
What is process analysis?
Examination of all aspects of a process (to improve it)
What are the basic tools of process analysis?
Process flowcharts, diagrams, and maps.
What does a classic process flowchart examine?
The manufacture of a product or delivery of a service from a broad perspective
How can process flowcharts be used?
To analyze the efficiency of a series of processes and to suggest improvements.
What is a benefit of using process flowcharts?
- A standardized method for documenting the steps in a process
- Can be used as a training tool
What are process maps?
Process maps are named because they map out the activities performed by various people in the process
What additional feature do process maps often include?
A time scale
What is process innovation?
The complete redesign of a process for breakthrough improvements
When are process innovation projects typically chartered?
In response to a breakthrough goal for rapid, dramatic improvement in process performance
What is the first step in the process of process innovation?
Establishing the goals for process performance
What is prepared after the general concept of redesign is agreed on?
A detailed map is prepared for each subprocess or block in the high-level map.
Why are blocks added to the detailed block diagramming map?
If the action contributes to the output goal
What does the detailed map guide?
It guides inputs and work methods.
What is conducted when the team is satisfied with the new design?
A pilot study is conducted.
What happens after a successful pilot study?
Full-scale implementation can begin.
What is digital manufacturing often referred to as?
The next industrial revolution.
What changes does digital manufacturing bring?
Production possibilities to factories, entities, and workers worldwide.
What characterizes the new era in automated manufacturing?
More digital, networked, and collaborative.
What factors should be considered in technology investment decisions?
Additional costs (above the initial investment), operational costs, annual savings, revenue enhancement, replacement costs, and risks.
What are some additional costs associated with technology investments?
Installation, purchasing other required tools, and training.
Why is financial analysis important in capital investment decisions?
It evaluates the cost, speed, quality, and flexibility of operations.
What can be overlooked in financial analysis for technology investments?
Operational costs and risks involved
What is block diagramming?
A visual representation of a production process where different departments or workstations are depicted as “blocks” connected by lines that show the flow of materials between them
What is relationship diagramming?
A visual tool used to illustrate the desired closeness or interaction between different departments or work areas within a facility
