Exam 2 Flashcards
technology we use to make a product/services, it is evaluated on cost, and must be implemented very carefully
Process Technology
name 4 examples of Process technology
computer numerical control CNC
Industrial Robot
Automated Guided Vehicle
Computer integrated manufacturing
Explain how customer interaction and high technology use relates to lower cost
if you have high customer interaction like branch banking this is more expensive because you have to hire people to be there. Whereas if you have internet banking this is more expensive on the front end but you can process significantly more transactions which means you get more done and unit cost goes down.
type of customer processing technology where the customer has control over the technology Examples include email cash machines, internet based ordering
Active customer interaction
type of customer processing technology where the technology has control over the customer examples would include transportation systems, theme park rides, automatic car washes
passive interaction
type of customer processing technology where the technology monitors the customer and the customer may not know what is going on Examples would include security cameras retail scanners credit card tracking and the government
Hidden interaction
What are the three dimensions in which we can categorize process technologies
- Extent to which they vary in their degree of automation
- extent to which they vary in their scale
- extent to which they vary in their degree of integration
Anything that could go wrong will
Murphy’s Law
formalization of what you intend in the future
Planning (long term)
coping with changes that affect the plan
- understand what is actually happening
- Evaluate what is actually happening
Control (short term)
Planning is
- What activities should take place in the operation
- When they should take place
- What resources should be allocated to them
Control is
understanding what is actually happening in the operation
Deciding whether their is a significant deviation from what should be happening
Changing resources in order to affect the operations activities
Demand that is governed by some other known factor
based on known factors
Ex demand for tires is dependent on number of cars planned to be made
Dependent demand
No idea when it will have demand for a product
Based on random factors
independent demand
get demand then buy materials examples would include wedding flowers or construction of a house
Resource to order
have all the materials but don’t put together until demand is there
Examples would be a wedding cake, Taylor made dress, subway sandwich
Create to order
produce the product prior to the demand
Ex. bottled coke or comic con
activities of planning and control include in what order should things happen ex. customer priority, due date, LIFO, FIFO, Longest operation time LOT or shortest operatin time
Sequencing
activities of planning and control include when we should do things ex. time tables of when things should be done, when and where should it be done
scheduling
activities of planning and control include loading work onto centers a s soon as it is practical
Forward
activities of planning and control include starting jobs at a time when they should be finished exactly when they’re due
backward
most common method of scheduling represented as a bar on a chart and is a visual representation of a schedule
Gantt Charts
how much should we do and the reduction of time a available for the valuable operating time used productively
loading
are the activities going to plan
monitoring and control
demand on a control system instructs when work is started one stage pushes to the next which builds up of inventories and moves to the next stage as soon as it has been processed
push control
based on real time demand or request reduces inventory and material is moved only when the next stage wants it
Pull control
scale of a operation incorporated with a time dimension
capacity
appropriateness of capacity planning is judged by its effect on
costs revenue working capital service level
What happens if you have excess capacity
costs go up revenue has potential to go up working capital goes up service level goes up
What are causes of seasonality
climatic, festive, behavioral, political, financial, social
Why are good forecast essential for effective capacity planning
understanding of demand uncertainty because it allows you to judge the risks to service level
Percent of the time using machine for productive work
overall equipment effectiveness OEE
what is the formula for OEE
APQ
What is the formula for available losses
setup + breakdowns
what is the formula for speed losses
idling +((total op.time-idle time)*1-rate speed
What is the formula for net operating time
total operating time - speed loss
formula for total operating time
loading-available losses
Formula for quality losses
net operating time * defective rate
valuable operating time
net operating time - quality losses
Availibility rate
total operating time/loading time
Performance rate
net operating time/total operating time
Quality ration
valuable operating time/ net operating time
The capacit of a process or facility as it was designed to be often greater than effective capacity
design capacity
the usefule capacity of a process/operation after maintenance changeover and other stoppages and loading averages have been accounted for
Effective Capacity
the ration of the actual output form a process or facility to its design capacity
utilization
alternative capacity plans keep capacity level no matter what demand is absorb demand (make a customer wait, keep output level
level capacity demand
alternative capacity plans change capacity to match demand and cope with fluctuations in demand by adjusting output to match demand (more hiring and firing)
Chase demand plan
change demand to match capacity by developing alternitive products and services ie happy hour or ski and dirt bike resort
Demand management
the stored accumulation of transformed resources from a process
inventory
Why do we have inventory
compensate for differences in time between supply and demand ex. gas blood water tower
Why should we avoid inventory in regards to cost
ties up working capital wastes customers time cost or set up
Why should we avoid inventory in regards to space
requires storage space waiting rooms memory capacity
Why should we avoid inventory in regards to quality
deteriorate over time damages opsolete long lines data may become corrupted or lost
Why should we avoid inventory in regards to operations/organizational
may hide problems pressure on staff database management
How can you reduce inventory due to insurance against uncertainty
unpredictable demand, reduce by improving demand forecasting
How can you reduce inventory due to counter act lack of flexibility
cycle stock to maintain supply reduce by lowering changeover time
How can you reduce inventory due to take advantage of short term opportunities
discounts/sales reduce by persuading suppliers to offer every day low prices
How can you reduce inventory due to anticipate future demands
build up stock for future high demand reduce by using chase demand strategy
How can you reduce inventory due to reduce overall costs
purchasing batch can be cheaper reduce by looking at alternative methods
How can you reduce inventory due to fill the processing pipeline
items being delivered to customers reduce by lowering process time
inventory that compensates for unexpected fluctuations in supply and demand
buffer inventory
inventory that occurs when one stage in a process can’t supply all the items simultaneously so has to build up inventory of one item while it processes the other s
cycle inventory
inventory that is used to allow work centers to operate relatively independently
decoupling
inventory that is accumulated to cope with expected future demand
anticipation inventory
inventory that exists because material cannot be transported simultaneously Chinese shipping
pipeline inventory
What are the 4 positions of inventory
raw materials, component inventories, work in progress inventories finished goods
how does inventory affect ROA
inventory goes up so do costs
what is the formula for EOQ
square root of 2order costsdemand/holding costs
what is the formula for total cost
holding costs times EOQ/2 +Ordering costs times demand/ EOQ
What is the formula for order frequency
EOQ/D then take 365/Number you got
an approach to inventory control that classes inventory by its usage value and varies the approach to managing it accordingly
ABC inventory control
20% of something causes 80% of something else
20% of products produced cause 80% of the problems
Pareto law
the 20% of high value items which account for 80% of total stock
Class A items
30% of medium value itmes which account for 10% of inventory
Class B items
50% or so of low value items which account for around the last 10% of inventory
Class C items
bins of items being used and reorder level + safety inventory
Two bin system
bins of items being used, reorder level, and safety stock
3 bin system
