Exam period 2 Flashcards
is the process of thinking through the current mission of the organization and the current environmental conditions facing it, then setting forth a guide for tomorrow’s decisions and results.
Strategic Planning
Production and operations strategic plans are the basis for
1-Operational planning of facilities (design)
2- operational planning for the use of these facilities.
Who suggests three contrasting modes of strategic planning?
Henry Mintzberg
What are the suggests three contrasting modes of strategic planning:
Entrepreneurial
Adaptive
Planning modes
is an approach in which strategy is formulated mainly by a strong visionary chief executive who actively searches for new opportunities,
Entrepreneurial mode
is most likely to be used by managers in established organizations that face a rapidly changing environment and yet have several coalitions,
Adaptive mode
Is an approach to strategy formulation that involves systematic,comprehensive analysis
Planning Mode
Strategic planning regarding quality is a very important part of management. Organizations, either new or already existing, must consider quality during strategic planning. There are several processes for strategy development.
Forced-Choice Model
Manufacturing and service systems are arrangements of ___________,__________, and ________ to produce goods and services under controlled conditions.
Facilities
Equipment
People
Produce standardized products in large volumes. This plant and machinery have a finite capacity and contribute fixed costs that must be borne by the products produced.
Manufacturing Systems
Present more uncertainty with respect to both capacity and costs. Services are produced and consumed in the presence of the customer and there is little or no opportunity to store value, as in a finished goods inventory.
Service Systems
Production systems design involves planning for the _______, _________, and _____of a production operation.
Inputs
Transformation activities
Outputs
of a facility is the planned or engineered rate of output of goods or services under normal or full scale operating conditions.
Design capacity
is the maximum output of the specific product or product mix the system of workers and machines is capable of producing as an integrated whole.
System/Effective capacity
is the ratio of actual output to effective capacity.
Efficiency
is the ratio of actual output to design capacity.
Utilization
Actual output
= ———————-
Effective capacity
Efficiency
Actual output
= ——————-
Design capacity
Utilization
requirements are more difficult to determine because the future demand and technology are uncertain.
Long-term capacity
What are the Following parameters will affect long-range capacity decisions?
Multiple Products
Phasing in Capacity
Phasing out Capacity
Company’s produce more than one product using the same facilities in order to increase the profit.
Multiple Products
In high technology industries, and in industries where technology developments are very fast, the rate of obsolescence is high.
Phasing In Capacity
The outdated manufacturing facilities cause excessive plant closures and down time.
Phasing out capacity
Managers often use forecasts of product demand to estimate the short-term workload the facility must handle.
Short-term Capacity Strategies