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
What are the short term strategies?
Inventories
Backlog
Employment Level(Hiring or Firing)
Employee Training
Subcontracting
Process design
Stock finished goods during slack periods to meet the demand during peak period
Inventories
During peak periods, the willing customers are requested to wait and their orders are fulfilled after a peak demand period.
Backlog
Hire additional employees during peak demand period and lay off employees as demand decreases.
Employment Level (Hiring or Firing)
Develop multi skilled employees through training so that they can be rotated among different jobs.
Employee Training
During peak periods, hire the capacity of other firms temporarily to make the component parts or products.
Subcontracting
Change job contents by redesigning the job.
Process design
Need for Selecting a
Suitable Location
When starting a new organization,
In case of existing organization
In case of Global Location
When starting a new organization,
•Identification of regions
• Choice of a site within a region
In case of existing organization
• Plant manufacturing distinct products.
•Manufacturing plant supplying to specific market area.
•Plant divided on the basis of the process or stages in manufacturing.
• Plants emphasizing flexibility
In case of Global Location
• Virtual Proximity
• Virtual Factory
The organizational objectives along with the various long-term considerations
Identification of region
Once the suitable region is identified, the next step is choosing the best site from an available set.
Choice of a site within a region
Each plant services the entire market area for the organization.
Plant manufacturing distinct products
Here, each plant manufactures almost all of the company’s products.
Manufacturing plant supplying to specific market area.
Each production process or stage of manufacturing may require distinctively different equipment capabilities, labour skills, technologies, and managerial policies and emphasis.
Plant divided on the basis of the process or stages in manufacturing.
This requires much coordination between plants to meet the changing needs and at the same time ensure efficient use of the facilities and resources.
Plants emphasizing flexibility.
With the advance in telecommunications technology, a firm can be in virtual proximity to its customers.
Virtual Proximity
Many firms based abroad in the service sector and in the manufacturing sector often out sources part of their business processes to foreign locations such as the Philippines.
Virtual Factory
Refers to the physical arrangement of the production facilities
Plant layout
It refers to the configuration of departments, work centers, and equipment,
LAYOUT
to facilitate a smooth flow of work, material, and information through the system
LAYOUT DESIGNS
It is a layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow.
PRODUCT LAYOUTS
These are layouts that can handle varied processing requirements.
PROCESS LAYOUTS
These are occasionally called as
Functional layouts
