Class 3 Flashcards
Define: Manufacturability
an ease of fabrication and/or assembly and an important determinator of cost, productivity, and qaulity
Define: Standardization
the extent to which there is an absence of variety in a product or service
Define: Reliability
The ability of a product, part, or system to perform its intended function under a prescribed set of conditions
Define: Capacity
The upper limit or ceiling on the load that an operating unit can handle
Define: Robust Design
Design that results in products or services that can function over a broad range of conditions
Describe Quality Function Deployment (QFD)
A design approach intended to integrate the “voice of the customer” into the product and service development process
Describe the product life cycle
- changing demand
- changing support requirements
- incubation ->growth ->maturity ->saturation -> decline
Define: Mass Customization
A strategy of producing standardized goods or services, but incorporating some degree of customization
Define: Delayed Differentiation
Producing but not quite completing a product or service until customer preferences or specifications are known
Define: Modular design. What does it allow?
component parts are subdivided into modules that are easily replaced or interchanged. It allows:
- easier diagnosis and remedy of failures
- easier repair and replacement
- simplification or manufacturing and assembly
- some degree of post-manufacture customization
Describe payoff tables
payoff tables list estimated payoff associated with each decision alternative and each possible future outcome
What’s a decision tree?
A schematic representation of decision variables, random variables, and their payoffs
Define Expected Value of PErfect Information (EVPI)
the difference between the expected payoff with perfect information and the expected payoff under risk
What is the EVPI equation?
EVPI= (expected payoff under certainty) - (Expected payoff under risk)
Define: Sensitivity analysis
A process for determining the range of probability for which an alternative has the best expected payoff
What is the difference between “design capacity”, “effective capacity”, and “actual output”?
Design capacity- the maximum output rate or service capacity an operation, process, or facility is designed for
Effective Capacity- Design capacity minus allowances such as personal time, maintenance, and scrap
Actual Output- rate of output actually achieved
list 6 phases in product/service design
1) idea generation
2) build a business case
3) identify and apply
4) design the product
5) launch
6) follow up
list 4 key issues for design
1) responsive
2) customer-focused
3) forward-looking
4) time to market
list 4 sources for design ideas with examples
1) Employees ex R&D, marketing
2) Customers ex focus groups
3) Competitors ex reverse engineering
4) Suppliers ex supply chain process partners
list 6 major design issues with examples
1) Manufacturability- the ease of fabrication and/or assembly. An important determinator of cost, productivity, quality
ex. design for manufacturing, design for operations
2) Design Guidelines - products should be consistent with the goals and image of the company, give value, address/avoid health and safety concerns, avoid potential harm to the environment
3) Legal, Ethical, and Environmental
4) Product/service life cycles
5) Standardization - the extent to which there is an absence of variety in a product or service
6) Reliability - the ability of a product, part or system to preform its intended function under a prescribed set of conditions
5 major advantages of standardization
- improved availability, more orders filled from inventory
- decreased inventory and manufacturing
- simplified forecasting and scheduling
- opportunities for long production runs and automation
- reduced design, training, handling costs
3 major disadvantages of standardization
- designs may be frozen with too many imperfections remaining
- high cost of design changes increases resistance to improvements
- decreased variety results in less consumer appeal
5 alternatives to capacity expansion in addressing capacity limitations
1) Make vs Buy
2) Design growth/flexibility into initial system design
3) For seasonal products consider development of complementary product or market vs simple growth of original product
4) Balance product mix by life cycle
5) Consider demand management
What is the equation for: Efficiency?
Efficiency = Actual output/Effective capacity
What is the equation for Utilization?
Utilization = Actual output/Design capacity
What is the equation for Break Even Point?
RQ = Fixed costs + variable costs Qbep = Fixed Cost/(Revenue - Variable Cost)
What is the equation for quantity required for profit p?
quantity required for profit p = (profit + fixed cost)/ (Revenue - Variable cost)
What is the equation for Expected Value of Perfect Information? EVPI
EVPI = (Expected payoff under certainty) - (Expected payoff under risk)
Car wash open 10hr/day, 6 days/week and can theoretically was an avg of 10car/hr but loses 4hr/week to equipment maintenance and an avg of 1hr/day due to employee absenteeism. Calculate Efficiency and utilization.
Design capacity = 10car/hr X 6days/week = 600cars/week
Effective capacity = 600 cars/week - (4hr/week X 10cars/hr) = 600 - 40 = 500cars/week
Actual output = 560 cars/week - (1hr/day X 6days/week X 10cars/hr) = 560 - 60 = 500cars/week
Efficiency = Actual/effective = 500/560 = 89.3%
Utilization = Actual/design = 500/600 = 83.3%
For an item with FC=$100,000 R=$25 V=$15, what is the BEP and what is the required output for a profit of $1000?
BEP = fixed costs/revenue-variable costs
=100,000/(25-15) = 10,000
Required Output = (profit + fixed costs)/(Revenue - Variable costs) = (1000+100,000)/(25-15) = 10,100
Decsion analysis
look at last page of class 3 review
