Deck 1 Flashcards
Formula for activity rate
o Activity Rate = Work steps completed / time
What is LD
Measure attraction between 2 workstations
Formula For LD score
Load x Distance
What is the Value Chain Model
Primary
Inbound Logistics
Operations
Outbound Logistics
Marketing and Sales
Services
Secondary
Firm Infrastructure
HR
Technology Support
Procurement
Pros of IS
- Increase in efficiency and effectiveness
- Empowers employees
- Allows for strategic advantage as you are up-to-date enabling use of future tech
Cons of IS (3)
- Deskilling
-Loss of Authority - Monotonous Work Environment
Little’s Formula
WIP = Throughput x CT
Turnover Ratio
1/CT
Formula for Rework assuming rework happens once
CT = T(1+r)
Formula for rework assuming the reworked job is no different to a normal job
CT = 1/(1-r)
Formula for CT of an alternate Path
CT = p(Path A)(r) + p(Path B)(r) + rest
Ways of eliminating CTs (6)
- Eliminate Rework
-Eliminate Activities - Enable parallel where suitable
- reducing waiting times and processing times
-Move processing times to non-essential activities
-enable batch production
Outsourcing Challenges (3)
-Contractual obligations (contract length, unsure of future needs, problems reaffirming IT after contract finish)
-Loss of confidentiality
-Loss of competitive advantage
Reasons for Outsourcing (3)
Financial
-More cost-effective, improved efficiency
Strategic
-Able to focus on core competencies and deliver better products
Technical
-Access too the latest technology and avoid technological obsolescence
What id Governance
Governance refers to “a set of processes, rules, customs, policies, and traditions that determine how to direct and control management activities”
Why do companies need governance (3)
-To mitigate the risk of potential loss or harm in the future
-To ensure goals by business processes can be achieved
-To assure the company is in compliance with legal and regulatory compliances
What id IT Governance
IT governance describes the selection and use of organisational processes to make DECISIONS about IT matters.
TIM WOOD
is the forms of waste :
Transport
Inventory
Movement
Wating
Overproduction
Overprocessing
Defects
5 Lean Principles
1)Identify value to the customer
2) Identify value adding and non-value adding activities
3) Cut waste (TIM WOOD)
4)Smooth Flow (streamline)
5)Pull and react to customer requests (JIT)
6)Iterate
How do you reduce variability
1)remove non-random variation
2)reduce the dispersion of the predictable process
3)Proceed aligning mean with target value
