Exam 1 Flashcards
A network of manufacturers and service providers that work together to convert and move goods from the raw materials stage through to the end user
Supply Chain
Types of flows that move up and down the supply chain
Information, physical, monetary
Inputs to the operations function can be ____
Tangible and intangible
Core Competency
Organizational strengths or abilities, developed over a long time period, that customers find valuable and competitors find difficult or even impossible to copy.
Order Qualifier
Performance dimensions for which customers expect a minimum level of performance, but do not provide a competitive advantage.
Conformance Quality
Whether the product was made or service performed to specifications.
Project
A temporary endeavor undertaken to create a unique product, service, or result.
Project Management
The application of knowledge, skills, tools, and techniques to project activities to meet project requirements.
Gantt Chart
A graphical tool used to show expected start and end times for project activities and to track actual progress against these time targets.
Rated Capacity
The long-term, expected output capability of a resource or system.
Lead Strategy
A capacity strategy in which capacity is added in anticipation of (before) demand.
Lag Strategy
A capacity strategy in which capacity is added after demand.
Indifference Point
The output level at which two capacity alternatives generate equal cost.
Decision tree analysis
Can be used to compare capacity alternatives based on the expected value of each alternative.
Theory of Constraints
An approach to visualizing and managing capacity that recognizes that nearly all products and services are created through a series of linked process, and in every case, there is at least one process step that limits throughput for the entire chain.
Operations Management
The planning, scheduling, and control of
the activities that transform inputs into finished goods and services.
Supply Chain
A network of manufacturers & service providers that work together to create products or services needed by end users. These manufacturers are linked together through physical flows
information flows and monetary flows.
Supply Chain Management
The active management of supply
chain activities and relationships in order to maximize customer value
and achieve a sustainable competitive advantage.
Upstream
activities or firms positioned earlier in the supply chain
Downstream
activities or firms positioned later in the supply chain
First tier supplier
provides products/services directly to a firm
Second tier supplier
Provides products/services to first-tier supplies
Strategy
Mechanism that helps an organization make decisions
Functional strategy
specific strategy to each department
Value Index
A measure that uses the performance and importance scores for various dimensions of performance for an item or a service to calculate a score that
indicates the overall value of an item or a service to a customer
Performance Dimensions
Quality, time, flexibility, cost
Performance Quality
The item’s operating characteristics
Conformance Quality
how well something meets specifications
Reliability Quality
Does it do what it’s supposed to when I need it to?
Delivery components
Delivery speed, delivery reliability
Mix Flexibility
can they offer a wide range of products
Changeover Flexibility
can they offer new products/versions quickly
Volume Flexibility
Can they provide whatever
quantity the customer needs
Labor Costs
Paying workers
Material costs
what it’s made of
Engineering costs
Cost to put together
Quality-related costs
Cost to check for quality assurance
Order Winner
Performance dimensions that differentiate a company’s products or services from a competitor’s (beating out others)
Order Qualifier
Performance dimensions on which customers expect a MINIMUM level of performance (a standard you set)
Core Competencies
Strengths or abilities that customers find valuable; rare among competitors
Capacity
The capability of something to produce
output per time period
Theoretical Capacity
Maximum output capability (if everything functions perfectly within the workforce); most they can possibly do
Rated Capacity
Long-term, expected output capability (account for factors like time off, parts fluctuation, machine breakage)
Factors that affect capacity
Number of lines
Number of Shifts operating
Number of temporary workers used
Number of public storage facilities used
product variations on line
conformance quality
Quality Improvement
Lead Strategy
Leading demand with
incremental expansion (pro- prepared, con- overestimating & extra inventory)
Lag Strategy
Capacity lags demand with incremental
expansion (pro- high utilization for machines, con- risky/competitors could take)
Match Strategy
Attempts to have an average
incremental expansion
capacity with incremental
expansion
One-Step Expansion Lead Strategy
Pro- easy to delay if needed; con- risk not having demand & wasting $$
Total Cost Formula
TC = FC + VC(x)
Break-even analysis
volume level for a business at which
total revenue covers total cost
Steps to manage a constraint
- Identify the constraint
- Explain the constraint
- Subordinate everything else to the constraint (focus only on it)
- Elevate the constraint (fix it)
- Find the new constraints & repeat the steps
Work Breakdown Schedule (WBS)
Defines the hierarchy of project tasks
subtasks and work packages
Network Diagram
Graphical tools that show the logical linkages between activities in a project
PERT
Program evaluation and review technique (multiple time estimates)
CPM
Critical Path Method (single time estimates)
6 Basic Steps for PERT and CPM
Identify each unique activity in a project by a capital letter that
corresponds only to that activity.
Represent each activity in the project by a node that shows the
estimated length. This style of network diagram is know as an activity
on node (AON) diagram.
If an activity has an immediate predecessor(s), show the relationship
by connecting the two activities with an arrow.
Critical Path
The longest path in the network
Forward Pass
Start at beginning of network and work to end. Earliest Start= 0 for first activity (activities); latest of earliest
finishes for predecessors for all other activities Earliest finish = earliest start duration of activity
Backward Pass
Start at end of network and work to beginning, latest finish= longest earliest finish for last activity ; earliest latest
start for all immediate successors ; latest time by which all immediate successors must be started in order to finish projecton time; Latest start : latest finish-duration of activity
Slack Time
difference between the latest start time and the earliest start time (or between the latest finish time and the earliest
finish time)
Slack is the amount of leeway
(allowable delay) you have for
startingan activity
Slack Time
difference between the latest start time and the earliest start time (or between the latest finish time and the earliest
finish time)
Slack is the amount of leeway
(allowable delay) you have for
startingan activity
How much slack time does a critical activity have ?
0
Crash Time
Shortening the overall duration of a project by reducing the time it takes to
perform certain activities
