electrvity and dat Flashcards
What is Operations Management? 5 marks.
Operations management:
the design, operation, and
improvement of productive
systems // Operations management (OM) is the administration of business practices to create the highest level of efficiency possible within an organization. It is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit and prductivity of an organization
Explain the input-transformation-output process model using an example
from your everyday to help your explanation.
Input- suppliers input things such as people, information and physical goods, these things are transformed into outputs such as goods and services which can be used in return for capital,
A car manufacturer like Chrysler can use different input materials such as steel, paint, plastic, aluminum, rubber, fiberglass, glass, copper, magnesium, lead, and copper sourced from suppliers. It then uses different machinery, technology, and workers to transform the input into outputs
Discuss the Product - Process Matrix. 10 marks.
As we move from projects to
continuous production, demand volume increases; products become more standardized; systems become more capital-intensive, more automated, and less flexible; and customers become less involved. Figure 6.2 shows a product-process matrix that
matches product characteristics with process choice.
The best process strategy is found on the diagonal of the matrix. Companies or products that
are off the diagonal have either made poor process choices or have found a means to execute a
competitive advantage. For example, technological advancements in flexible automation allow
Motorola to mass produce customized pagers. Volvo and Rolls Royce occupy a special market
niche by producing cars in a crafted, customized fashion. Examples of poor process choice include
Texas Instruments’ attempt to produce consumer products for mass markets by the same process
that had been successful in the production of scientific products for specialized markets, and Corning’s production of low-volume consumer items, such as range covers, with the same continuous
process used for other items formed from glass.
Identify three of the five performance objectives and explain how each
contributes toward customer satisfaction? 5 marks.
- cost (value for money, cost efficient)
- quality (high quality leads to customer retention)
- speed (faster service at same quality is better)
- dependability (reliable service)
- flexibility (suits consumers changing lifestyle)
Explain the Lean philosophy of production. Make references to the 8 wastes
of Lean using the TIMWOODS acronym. 8 marks.
Lean is a philosophical way of working that emphasizes the removal of waste within a process. At its core is the principle that expenditure of resources for any goal other than the creation of value for the end customer is wasteful and therefore should be a target for elimination. TIMWOODS is an acronym that stands for Transportation, Inventory, Motion, Waiting, Overproduction, Overprocessing, Defects, and Skills. These are the 8 wastes of Lean. TIMWOODS drives efficiencies in business processes by identifying and eliminating these wastes.
Briefly describe the Lean 5s technique based on a tool-shed, a kitchen or a
venue of your choice. 5 marks.
5S is defined as a methodology that results in a workplace that is clean, uncluttered, safe, and well organized to help reduce waste and optimize productivity.
5S stand for: Sort, Straighten, Shine, Standardize, and Sustain
Sort : Eliminate that which is not needed.
Straighten : Organize what remains after sorting.
Shine : Clean and inspect the work area.
Standardize : Write standards for 5S.
Sustain : Consistently apply the 5S standards.
Describe the style of layout you would typically associate with the Lean/JIT
type of process? Sketch a typical layout. 5 marks.
Design: The JIT process starts with a review of the essential manufacturing building blocks: item design, process design, staff and manufacturing arranging. At that point plans are established to eliminate disruption, minimize waste and build an adaptable framework.
Manage: A Total Quality Management (TQM) review guarantees there is nonstop improvement all through the process. A management review defines laborers’ jobs and responsibilities, defines and measures statistical quality control, stabilizes timetables, and looks at burden and limit timetables and levels.
Pull: Educate the team on production and withdrawal strategies utilizing signaling techniques like Kanban. Review part size policies and reduce parcel sizes.
Establish: Vendor relationships are fundamental to the accomplishment of JIT. Review vendor records. Choose preferred providers, negotiate contracts, examine lead times, conveyance assumptions and utilization metrics and measures. Figure out how to take advantage of them in the store network.
Fine-tune: Determine inventory needs/usage, policies and reduce inventory movements.
Build: Inform your team about the abilities and capabilities it needs to finish its work and lead team education and empowerment meetings to instruct them.
Refine: Reduce the quantity of parts and steps in production by refining, standardizing and reviewing the whole process.
Review: Define and implement quality measures and metrics and lead an underlying driver analysis of any issues. Emphasize improvements and track patterns to improve each part of JIT.
Clearly but briefly explain how the PUSH (MRP) and PULL (JIT) systems work. Identify the main performance differences expected between the JIT Pull system and the MRP based Push system. 7 marks.
Push systems:
rely on a predetermined schedule. Pull systems:
rely on customer requests
Push systems prioritize efficiency and cost savings by producing large goods in advance. In contrast, pull systems prioritize responsiveness to customer demand and flexibility by producing goods based on confirmed customer orders. Another key difference is the production planning process. In a push system, businesses stock up on inventory in anticipation of consumer demand. This can lead to excess inventory and wasted resources. Conversely, businesses only stock up on inventory in a pull system when consumer demand is detected. This can lead to shortages if demand is higher than expected.
Outline the importance of good forecasts in a production management
system.
Proper forecasting can: Improve efficiency at every stage of the supply chain. Prevent stockout situations and subsequently lost sales. Achieve optimal order quantities that save your brand money. Helps you maintain optimal inventory levels to keep the overall profitability high and boost customer satisfaction, optimized transport logistics
Explain the qualitative approach to forecasting using the Delphi method.
5 marks.
The Delphi method is a forecasting process framework based on the results of several rounds of questionnaires sent to a panel of experts, Qualitative forecast methods:
subjective methods. Delphi method:
involves soliciting forecasts about
technological advances from
experts
How to calculate a 3-month and a 5-month moving average
literally just avg some numbers
Distinguish between a Periodic Inventory review system and a Continuous
Inventory review system. 5 marks.
Continuous review systems generally order the same quantity of items in each order. The order frequency varies in continuous systems because the inventory is monitored and orders are placed when items reach a particular level. With periodic review systems, products are ordered at the same time each period.
What are the benefits of ABC inventory control? 5 marks.
ABC Analysis is a useful tool in inventory management that can help businesses better manage their inventory levels and make better decisions about which items to stock and how to manage them. It helps businesses save money by focusing on the A items and avoiding unnecessary stocking and managing of unimportant items. Ranks items in terms of importance. ABC system:
an inventory classification system
in which a small percentage of (A)
items account for most of the
inventory value.
Explain the concept of an economic order quantity (EOQ) using a diagram
to help explain your answer. 5 marks
Economic order quantity
(EOQ): the optimal order quantity that will
minimize total inventory costs. (formula and diagram)
How is the level of safety stock determined? 5 marks.
Safety stock is the excess product you keep on hand in case of an emergency or supply chain failure that causes less than average inventory to be available. To calculate safety stock, work out your average daily use for a product and multiply it by its average lead time. how long it takes, in days, to arrive once you place an order. Then subtract this number from your maximum daily use times your maximum lead time. The result is the safety stock number for that product.
