Chpt 7 Flashcards
What is capacity planning?
The process of establishing the overall level of productive resources for a firm.
It involves long-term strategic activities (acquiring new facilities, technologies, or businesses)
What are the types of capacity expansion?
Is based on demand.
Can lead demand (based on anticipated demand), lag behind demand, or meet average demand.
What is a capacity cushion?
The best operating level for a facility often includes a capacity cushion for unexpected occurrences.
What are economies of scale?
When high levels of output cost less than inputs
What are diseconomies of scale?
When a company’s average cost per unit increases as output increases.
What is the importance of facility layout?
Reflects a firm’s competitive priorities and enables the firm to reach its strategic objectives.
What is a process layout?
Groups similar activities together into work centres according to the process or function they perform.
*Used in most service operations
What is a product layout?
A product layout arranges activities in a line according to the sequence of operations needed to assemble a particular product.
*Assembly Lines
What is a fixed-position layout?
A fixed-position layout is used for projects in which the product cannot be moved.
What is block diagramming?
Block diagramming is used to create a schematic layout that considers and includes space requirements.
*Better with quantitave data (#s!)
*Goal is to minimize non-adjacent loads
What is relationship diagramming?
Relationship diagramming uses subjective input from analysts or managers to address layout problems.
What are service layouts concerned with?
The flow of customers through various processes or departments.
What is the focus of modern layout design?
Minimizing the distance material is moved.
What are hybrid layouts?
A combination of flexibility and efficiency, including cellular layouts, flexible manufacturing systems, and mixed-model assembly lines.
What is a cellular layout?
Grouping of dissimilar machines into work centers that process families of parts with similar shapes or processing requirements.
What is a flexible manufacturing system (FMS)?
-Programmable machine tools
-Automated tool changing
-Automated material handling
-Controlled by computer network
**Can produce an enormous variety of items.
What is mixed-model assembly line?
Processes more than one product model.
What is line balancing?
Equalizing the amount of work at each workstation.
What is Muther’s grid?
A format for displaying manager preferences for department locations.
*Part of relationship diagramming
What is a relationship diagram?
A relationship diagram (qualitative data/from managers) is a schematic diagram that uses weighted lines to denote location preference.
*Muther Diagram
What is CRAFT?
CRAFT stands for Computerized Relative Allocation of Facilities Technique.
What is CORELAP?
CORELAP stands for Computerized Relationship Layout Planning.
What is the purpose of CRAFT and CORELAP?
They are computer packages available for designing process layouts.
What is line balancing?
Line balancing is the process of equalizing the amount of work at each workstation.
Steps include:
1. Draw and label a precedence diagram.
2. Calculate the desired cycle time required for the line.
3. Calculate the theoretical minimum number of workstations.
4. Group elements into workstations, recognizing cycle time and precedence constraints.
5. Calculate the efficiency of the line.
6. Determine if the theoretical minimum number of workstations or an acceptable efficiency level has been reached. If not, go back to Step 4.
What is line balancing delay?
Amount of time that production lines are idle due to uneven distribution of work
What is flow time?
The total time it takes for a unit of work to move through an entire process (only includes time product is being processed)
Process layout vs. Product layout?
Process layout: Groups similar machines together based on function (more flexibility)(low-volume, customized)
Product layout: Arranges equipment in a sequential order based on steps needed (more efficient)(high-volume, standardized)
What is lead time?
The time a product spends in an entire process start to finish (including time in waiting between process steps)
What is cycle time?
The time it takes to complete one single task or operation at a workstation (including wait time at that station)
What is vertical integration?
When a firm extends its operations and ownership within the supply chain
