Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

MGT 302 > Exam 2 > Flashcards

Exam 2 Flashcards

1
Q

the objective of sales and operating plan is to:

A

reach consensus on a single operating plan that allocates the critical resource of people, capacity, materials, time, and money to most effectively meet the market place in a profitable way

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

draw the sales and operating process in terms of the customer pyramid

A 
customer
strategic plan
business plan
sales and operating planning
(the combining of manufacturing, lab, finance, HR, acc, and sales and marketing)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

the objective shortened:

A

to reach a consensus on a single operating plan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

sales and operating planning with the combining of mfg, lab, finance, HR, acc, and sales and marketing) is ______ planning level

A

medium to intermediate planning level

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

name the three types of processes and give their lengths.

A
  1. detailed (days, weeks out: short term)
  2. tactical = SOP!! (months out)
  3. strategic (years out) long range planning
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

detailed planning examples

A

limited ability to adjust capacity; day to day, hour by hour; lowest risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

tactical planning examples

A

workforce, inventory, subcontracting, and logistical decision; planning number somewhat; “aggregated” (month by month); lowest risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

strategic planning examples

A

brick and mortar and major process choice decision; planning done at a very high level; high risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

timelines for the different processes

A

rolling horizon:

  • long range varies by industry, usually updated annually
  • intermediate (SOP) plans updated updated monthly
  • short-term plans updated daily/weekly
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

inputs to the production planning system:

A

external to firm:

  • external capacity (like subcontractors)
  • competitor’s behavior
  • raw material availability
  • market demand
  • economic conditions

internal to firm

  • current physical capacity
  • current workforce
  • inventory levels
  • activities required for production
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what are aggregate operations plans?

A

~ product group or broad category
~ specifies the optimal combination of:
- production rate (units completed per unit of time)
- workforce level (number of workers needed in a period)
- inventory on hand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

why use aggregate operation plans?

A

forecasting is always wrong by some amount, but it is more accurate if we forecast by groups of families = aggregate the demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

why do companies use S&OP?

A
  • many companies have a hard time establishing a solid game place for everything and as a result performance suffers
  • S&OP is an essential management tool in the age of rapid changes and increasing customer demand and supply chains around the world
  • it is called “top management’s handle on the business”
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Relevant costs: the 4 cost tyeps

A
  1. basic production costs
  2. inventory holding costs
  3. costs associated with changes in the production rate
  4. backorder costs
    remember: it’s okay to plan for any of these depending on the firm’s competitive strategy
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what are production planning strategies?

A

plans for meeting demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what are some tradeoffs involved in choosing a production planning strategy?

A

workers employed, work hours, inventory, and shortages

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what are the three types of planning production strategies?

A
  1. chase strategy
  2. mixed strategy
  3. level strategy
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

chase strategy

A

match the production rate by hiring and laying off employees; must have a pool of easily trained applicants to draw on; produce to exact monthly production requirements by varying workforce size

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

mixed strategy

A

stable workforce, and vary the number of hours worked through flexible work schedules or overtime or subcontracting

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

level strategy

A

demand changes are absorbed by fluctuating inventory levels orders backlogs, and lost sales; product to meet expected average demand by maintaining a constant workforce

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

what is a pure strategy?

A

when a firm uses just one of these approaches…either level or chase

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

usually firms use a _____ strategy

A

mixed strategy: mostly level but you go a little higher or lower when you know you need to

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

what are the two types of mixed strategies:

A
  1. product to meet the mimimim expected demand using a constant workforce and subcontract to meet additional requirements
  2. product to meet expected demand for all but the first two months using a constant workforce and use overtime to meet additional output requirements
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

peak demand strategy

A

variables used: undertime or excess capacity, subcontracting
competitive priorities: delivery speed, conformance, flexibility
environments where most common: emergency services, easily obtainable substitutes, cost of back orders high

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

level production strategy

A

variables used: inventory (both carrying and backlogs)
competitive priorities: low cost, design quality, delivery speed
environments where common: repetitive manufacturing, continuous processes, highly skilled professionals, cost of capacity changes high

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

chase demand strategy

A

variables used: workforce size, overtime/undertime, subcontracting
competitive priorities: flexibility, design quality, delivery speed
environments where commmon: pure service, job shops, batch manufacturing, cost of inventory high

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

when does level scheduling work best?

A
  • entire system can be banned to minimize inventory and WIP
  • product modifications are up-to-date because of low amount of WIP
  • smooth flow through production system
  • purchased items from vendors can be delivered when needed often directly to the production line
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

requirements for a level scheduling

A
  • production needs to be repetitive
  • system must obtain excess capacity
  • output must be fixed for a period of time
  • smooth relationship among purchasing, marketing and production
  • the cost of carrying inventory must be high
  • equipment costs must be low
  • workforce must be multi-skilled
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

“hard benefits” of S&OP

A
  • higher customer services
  • lower finished goods inventories
  • more stable production/service rates
  • faster and more controlled new product instructions
  • reduced obsolescence
  • shorter customer lead times
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

“soft benefits” of S&OP

A
  • enhanced teamwork in executive and mid-management groups
  • better decision with less effort
  • one set of numbers, in both units and dollars, to run the business
  • a tight linkage between strategic plans and day-to-day activities
  • a window into the future for the organization
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

why must sufficient supply be available at all times for the demand occurs in service environments?

A

because services typically cannot be inventoried

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

what is the key to satisfying customer demand in service environments?

A

planning sufficient capacity!!

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

yield management

A

the process of allocating the right type of capacity to the right type of customer at the right price and time to maximize revenue or yield; has existed as long as there has been limited capacity for servicing customers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

what is the main question with yield management:

A

what can we do to take the demand spikes and dips and make them smoother? i.e. get customers to come when we want them to come and are prepared for them?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

examples of yield management

A
  • started with: American airlines computerized reservation system (SABRE)
  • airlines making flights on tuesdays, wednesdays and saturdays cheaper
  • happy hours at bars and restaurants
  • hotels: one set of rates during the week and another set during the weekend
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

what are the 5 yield management success factors?

A
  1. demand can be segmented by customer
  2. fixed costs are high and variable costs are low
  3. inventory is perishable
  4. product can be sold in advance
  5. demand is highly variable
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

yield management is most common when:

A

price is variable and duration is predictable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

the essence of yield management is:

A

the ability to manage demand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

the 4 types of firms:

A
  1. make to stock firms
  2. assemble to order firms
  3. make to order firms
  4. engineer to order firms
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

make to stock

A

firms that serve customers from finished goods inventory; most common; examples include TV, clothing, packaged food products; essential issue in satisfying customers it balancing level of inventory against level of customer experience–> trade off between costs of inventory and level of customer service must be made

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

assemble to order

A

make it up to a certain point and then stop and wait for a customer order to finish; an example is a Dell computer; one capacity required is a design that enables as much flexibility as possible in combining components; there are sig advantages from moving the customer order decoupling point from finished goods to components

42
Q

make to order

A

assemble, but don’t put anything together; a really simple example would be subway; make the customer’s product from raw materials, parts and components

43
Q

engineering to order

A

firms that will work with the customer to design and then make the product; the most rare

44
Q

make to order and engineer to order

A
  • boeings process for making commercial aircraft is an example
  • customer order decoupling point could be in either raw material at the manufacturing site or the supplier
  • depending on how similar the products are it might not even be possible to preorder parts
45
Q

lead time

A

time needed to respond to a customer order

46
Q

customer order decoupling point

A

where inventory is positioned to allow entities in the supply chain to operate independently; where you stop and wait for customer order

47
Q

what are buffer stocks

A

extra materials; can help deal with any variations in either supply or demand;

48
Q

what type of firm will most likely benefit fro buffer stocks?

A

make to stock - bc based on forecast which we know is wrong so this type of firm will most benefit from buffer stocks

49
Q

little’s law (important)

A

the flow of items through a production process

inventory = throughput rate x flow time

50
Q

throughput

A

long term average RATE of flow through the process; ONE clicker is finished every 1/2 hour

51
Q

flow time

A

time to make one item; a single unit to traverse the entire process; 5 min for 1 clicker

52
Q

inventory

A

inventory on floor; held by firm for future use

53
Q

inventory turns (important)

A

the cost of goods sold divided by the average inventory value

54
Q

production layout strategy based on the type of ______

A

firm (depends on the firm’s target market)

55
Q

the two things that go into a product process matrix / decide what kind of process to use

A
  1. sales volume

2. variety of products / customization

56
Q

from a product process matrix point of view, a continuous process is:

A

high volume and low customization / low variety

57
Q

continuous processes details:

A
  • liquid, gas, slurry (not individual items)
  • very few product types and high volume
  • individual products can’t be distinguished until packaging (1 QT, 2 QT, etc)
  • not very common
  • example: gas
58
Q

name the levels of production layouts from least detailed to most complex:

A
  1. continuous - gas
  2. assembly line - cars
  3. manufacturing cell (overlaps its before and after)
  4. workcenter
  5. project
59
Q

assembly line details:

A
  • a single path through the process
  • all products follow the same path
  • workflow is sometimes paced with a conveyor belt
  • example: cars
60
Q

work center layout details

A
  • focused on a particular type of operation
  • machines that perform the same type of operation are grouped together (for example, all the lathes are in one area)
  • different location for different physical things
  • this way is more flexible if a machine goes down or worker can’t show up, but also takes quite a bit of time to go from place to place
61
Q

manufacturing cells details:

A
  • dissimilar machines are grouped together…for example one lathe, one mill and one drill press
  • objective of this grouping is to product products requiring similar production sequences and steps in the most efficient manner
  • typically quicker because multiple machines that you need are all in one place
  • however, it is hard when the cell is designed to manufacture a specific type of x, but now they need to product y but cell isn’t designed for that
62
Q

what is the most popular type of flexible line layout and why?

A

the U-shaped cell - gives better operator access to the equipment and may reduce need for operators

63
Q

product layout strategy details:

A
  • most rare
  • most customization and least volume
  • material brought to the product
64
Q

the three aspects of assembly line design

A
  1. workstation cycle time
  2. assembly-line balancing
  3. precedence relationship
65
Q

workstation cycle time

A
  • a uniform time interval in which a moving conveyor passes a series of workstations (also the time between successive units coming off the line)
  • the time to complete a task
  • example: the time to attach the hood of a car takes 2.5 min
  • so for every car moving on the assembly line, the worker attaching the hood has 2.5 minutes of work
66
Q

assembly-line balancing

A

assigning tasks to a series of workstations so that the required cycle time is met and idle time is minimized…..it may be easier to think of workstations as people, although they can be machines or combination of persons/machines

67
Q

precedence relationship

A

the order in which tasks must be performed in an assembly process

68
Q

when you minimize the idle time, you will be able to:

A

accomplish the tasks with the fewest workers

69
Q

assembly line balancing steps:

A
  1. specify the sequential relationships among tasks
  2. determine the required workstation cycle time
  3. determine theoretical minimum number of workstations
  4. assign tasks one at a time until the sum of tasks is equal to the workstation cycle time
  5. evaluate efficiency of the balance
  6. rebalance if needed
70
Q

assembly line balancing: selecting the assignment rule

A
  • prioritize tasks in order of largest number of following tasks
  • break ties with secondary rule (longest task time)
71
Q

ways to improve the cycle time

A
  1. split tasks into smaller tasks
  2. use parallel workstations
  3. use a more proficient worker
  4. work overtime in affected workstation
  5. redesign the process
72
Q

service package

A

bundle of goods and services that is offered:

  • supporting facility
  • facilitating goods
  • information
  • explicit services
  • implicit services
73
Q

supporting facility

A

the physical resources such as buildings, equipment, etc.

74
Q

facilitating goods

A

materials purchased by the consumer or provided by the customer

75
Q

information

A

data that is provided by the customer to enable efficient and customized service

76
Q

explicit services

A

the benefits that are readily observable and which make up the essential features of the service

77
Q

implicit services

A

psychological benefits or other extrinsic features of the service (prestige, privacy, etc.)

78
Q

operational classification of services

A
  • service organizations are classified according to the customers they service and the service they provided to those customers
  • customer contact
  • creation of the service
  • the physical presence of the customer in the system
  • service systems with a high degree of customer contact are more difficult to control
  • the work process involved in providing the service itself
79
Q

service organization design

A
  • services cannot be stored in inventory
  • in services, capacity becomes the dominant issue…too much capacity leads to excessive costs but insufficient capacity leads to lost customers
  • waiting line models provide a powerful mathematical tool for analyzing many common service situations
  • services can be physical or virtual
80
Q

service-system design matrix:

A

the lower the sales opportunity, the higher the product efficiency…and lower sales opportunity the lower degree customer/service contact:

  1. mail contact
  2. internet and on-site technology
  3. phone contact
  4. face-to-face tight specs
  5. face to face loose specs
  6. face to face total customization
81
Q

service blueprinting

A
  • the standard tool for service process design is the flowchart
  • distinction b/w high customer contact and those that the custom does not see..”line of visibility”
82
Q

fail-safing

A

using the service blueprint to the identity opportunities for failure and then establishing procedures to prevent mistakes from becoming defects (poke-yokes)

83
Q

poka-yokes

A

procedures that block the inevitable mistake from becoming a service defect (avoid mistakes)

84
Q

types of poka-yokes

A
  • warning methods (steps that lead to mistakes trigger a reminder)
  • physical or visual contact methods (parts can only fit together in the correct way)
  • the three t’s (task to be done, treatment accorded to the customer, tangible features of the service facility)
85
Q

a central problem in many service settings is the management of _____

A

waiting time: reducing waiting time costs money, but raises customer satisfaction and throughput

86
Q

when the people waiting are employees:

A

it is easy to evaluate and value their time

87
Q

when the people waiting are customers:

A

it is more difficult to value their time (sales lost is one value)

88
Q

arrivals often vary greatly over a time period, but service capacity is usually :

A

fixed

89
Q

waiting line factors

A
  • number of arrivals over the hours that the service system is open
  • we can control arrivals through short lines, specific hours for specific customers, and specials
  • customers demand varying amounts of service, often exceeding normal capacity
  • we can affect service time by using faster or slower servers
90
Q

managing queues

A
  • segment the customers
  • train your servers to be friendly
  • inform your customers of what to expect
  • try to divert the customs attention when waiting
  • encourage customers to come during slack periods
91
Q

queuing system analysis

A

the source population - who are your customers?

  • population size - finite or infinite
  • customer arrival rates are random
  • customer arrival characteristics
  • arrival patterns - steady or seasonal
  • size or arrival rates - individuals or groups
  • degree of patience (will they wait)
92
Q

queuing system factors

A
  1. length
  2. number of lines
  3. queue discipline - priority rule or set of rules that determine the order of service for customers who are waiting in line
93
Q

length

A

how much waiting room is available

94
Q

number of lines

A

how many servers are working

95
Q

queue discipline

A

how do new arrivals enter the line? How do you decide which custom to serve next?

96
Q

service time distribution

A

what is the service rate and how much does it vary?

97
Q

line structure

A

what does the process look like?

  • single channel, single phase
  • single channel, multiphase
  • multichannel, single phase
  • multichannel, multiphase
  • mixed
98
Q

service time distribution

A
  1. constant - service is automated and not customized to individual customers
  2. variable - service is provided by humans, can be customized to individual customers, we calculate this service rate
99
Q

computer simulation of waiting lines

A
  • some waiting lines problems are very complex
  • equations assume that waiting lines are independent
  • some problems have conditions do not meet the requirements of the equations
100
Q

some waiting line problems are very complex

A
  • servers with different capabilities, multiple customer types
101
Q

equations assume that waiting lines are independnet

A

when one service is the input to the next, we can no longer use the simple formulas

102
Q

some problems have conditions do not meet the requirements of the equations

A

variable or finite populations, specific arrival/service distributions

MGT 302 (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions