Brainscape's Knowledge GenomeTM

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


See full index

Tech & Ops > Exam Study > Flashcards

Exam Study Flashcards

1
Q

What are the 2 types of decisions that are key to fitting an operations strategy to the firm’s overall competitive position and strategic goals?

A

Structural (decisions regarding a firm’s physical attributes)

Infrastructural (the policies and systems underlying operations, which in turn have implications for structural and other infrastructural operational decisions)

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

Structural Decisions (4)

A
  • Facilities (size, location, specialization)
  • Capacity (amount to produce, type, timing)
  • Sourcing and vertical integration (how much will be done internally and how much will be outsourced)
  • Information process and technology (what equipment should be chosen, and how should they be located, connected and used)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Infrastructural Decisions (7)

A
  • Resource allocation and capital budgeting
  • HR systems
  • Work planning and control systems
  • Quality systems
  • Measurement and reward systems
  • Product and process development systems
  • Organization
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

4 Components of Focus

A
  • Product
  • Process stages/technologies
  • Geography
  • Market and customer group
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Operations Strategy

A

set of goals, policies and restrictions that guide organizations in optimizing their operations to fulfill its organizational mission

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

3 Tiers of Operations Strategy

A

Corporate Strategy - high-level decisions regarding how the firm will approach the industry and how it allocates resources to various activities, based on company values

Strategic Business Units (SBUs)/Business Strategy - Corporate strategies, but at a business subsidiary level – scope of that business and position in its respective industry

Functional Strategy - Support the type of competitive advantage being pursued. Includes strategies in operations, marketing/sales, financial control, research/development

***Value that a company embodies runs through all the tiers and inform, constrain, and unify strategies across the tiers.

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

4 Types in Service Industry Matrix

A 
Professional Services (financial advisor)
Service Shop (general hospital)
Service Factory (one-type hospital like Shouldice)
Mass Services (flying experience)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

5 Types in Product Process Matrix

A 
Project (shipyard)
Job Shop (Airbus)
Batch/Cell (H&M, textiles in general)
Line (Tesla)
Continuous flow product (refinery)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Product Process Matrix characteristics at top end and low end (ALF)

A

ASSETS (General to Dedicated)
LABOR (High skill to Low skill)
FLOW (Intermittent to Continuous)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Kaizen

A

Continuous Improvement

Combination of incremental improvement and radical/step improvement (incremental in workplace, eventually hit ceiling, then move to radical improvement)

How to implement -

  1. Measurement to know baseline
  2. Create SOPs to prevent backslide
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Process failure symptoms (4)

A
  • Poor Morale (staff turnover, sick days)
  • Schedule Adherence (fire fighting)
  • Buffers (inventory, capacity, time)
  • Workarounds
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Backsliding

A

Danger of just doing radical improvement

Reasons for failure/backsliding

  1. External consultants - no buy in
  2. Key personnel leave
  3. Wrong metrics
  4. Competing initiatives
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Root Cause Analysis Tool

A

Fishbone diagram / Ishikawa diagram / 5 whys

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Sandcone model (4 manufacturing capabilities)

A

CE - cost efficiency
S - speed
D - dependable (stable)
Q - quality

CAN ELIZABETH STAY a DEPENDABLE QUEEN?

Although in the short term you can trade off capabilities against one another, there is actually a hierarchy amongst the four capabilities.

Processes are improved by reductions in undesired variation and time. By improving one, you generally also improved the other.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Quality

A

To consistently produce to customer specification

Need to be in control and capable (independent)

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

Common Cause Variation (Stewart/Deming/Jwan)

A

Noise

Predictable from past-data

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

Assignable Cause Variation (Stewart/Deming/Jwan)

A

Non-random

Not predicatable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Process in control

A

Monitoring repeatability and consistency of the process

“early warning system”

Look for process walk (variation may be by shift, switching of machine) vs. random differences

A process is in control only if it exhibits common cause variation

As your process becomes better, more samples become necessary

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

Where do control/specification limits come from?

A

Control limits come from own data

Specification limits come from customers

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

SPC requirements

A

quantifiable, measurable, repetitive, actionable (implicit)

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

p-chart

A

binary. often a lower limit of zero. “attribute” - defective yes/no

p = number of defective unites/total units inspected

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

Just in Time (JIT)

A

Make only what is needed when it is needed in the right quantity
Reduce the seven wastes

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

3Ms - Muda

A

WASTE - everything the customer is not willing to pay for (internal or external)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

3Ms - Mura

A

UNEVENESS - level scheduling (heijunka)

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

3Ms - Muri

A

OVERBURDEN - safe and productive workplace

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

Heijunka

A

level scheduling to eliminate mura

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

7 Wastes (TIMWOODt)

A 
Transportaion
Inventory (excess)
Motion (on the shop floor - spaghetti map)
Waiting
Overproduction (worst)
Overprocessing (wrong machine for the job)
Defect
(t)alent
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

DEMING CYCLE / Ball and Wedge diagram of Continuous Improvement (PDCA)

A

Part of House of Lean base

Ball that rotates:
Plan
Do it (on a trial basis)
Check (outcomes/risks)
Act (implement)

Wedge:
Standardization - hold the gains, no backslide

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Jidoka

A

Intelligent automation - principle of designing equipment to stop automatically and to detect and call attention to problems immediately whenever they occur.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Bullwhip effect (definition)

A

Order variance increases over time due to bad demand signals (from customer, retailer, distributor, factory)

Time is x-axis, Demand is y-axis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Bullwhip effect (formula)

A

Cov2/Cov1 = 2 – order variance doubles in every cycle

Cov (Coefficient of variation) = standard deviation/mean (sigma over mu)

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

Root causes of bullwhip effect

A
  1. System’s effect/demand signal processing (time delays, tiers/decision points, variation/trigger [uncertainty])
  2. Order batching (volume discounts, full truck loads) (aka Burbidge effect)
  3. Rationing game (aka flywheel effect) and inflated orders (supply chain partners try to anticipate rationing by distributing by increasing order size/safety stock, not communicating this results in distributor causes them to think its an increase in customer demand)
  4. Price fluctuations/promotions (end users buy what the need by stocking up, EDLP is effective in eliminating this)
    (5. Lead times - safety stocks and order quantities are calculated from lead time and variability)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Causes of Supply Chain Distortion

A

Uncertainty (from down and up stream)

  • Demand uncertainty
  • Conversion or throughput uncertainty
  • Supply uncertainty
  • Actual and self-created uncertainty
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Main objective of supply chain management

A

Achieving stable and reliable flows in the system. The more volatile the demand and delivery patterns, the more inventory and sub-optimally utilized capacity you can expect.

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

Demand uncertainty

A

weather, seasonality, general trend, sales promotions, new product introductions or new technologies, competitor actions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Conversion or throughput uncertainty

A

producing defects, machine stoppages/breakdowns, long change-overs, unpredictable lead times

These can be eliminated through use of lean production/six sigma tools.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Supply uncertainty

A

variable quality, poor on-time delivery performance, variable lead times

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

Actual and self-created uncertainty

A

Self-created uncertainty is created by poor coordination in the supply chain (sales promotions lead to self-created slump in demand).

Actual uncertainty is uncertainty created by the end customer.

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

Ways to mitigate supply chain distortion

A 
Vendor Managed Inventory (VMI)
Electronic Point of Sale data (EPOS)
Collaborative Forecasting (CF)
Collaborative Planning, Forecasting and Replenishment (CPFR)

Information sharing and collaboration

Solution to bullwhip problem (think of the tiers of water and the floating balls as ordering decisions)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

Vendor Managed Inventory (VMI)

A

Reduces supply chain distortion by removing decision making points. Reduces uncertainty and lead time (visibility and reduction of demand signals)

Customer passes inventory information to the supplier instead of orders.

Must agree on reorder point (ROP) and order-up-to point (OUP)

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

CPFR

A

Collaborative Planning, Forecasting and Replenishment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

Which case study had an efficient supply chain and which had a responsive supply chain?

A

Efficient (stable demand) = Barilla

Responsive = Zara

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

Kingman Formula

A

Think airport security - can’t afford to load system to high degree if you want fast turnover and high variability

x-axis is capacity utilization (percentage), y-axis is wait time (queue) – line moves up and left as variability increases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

Total Supply Chain Cost Model

A

Static (unit costs)
Dynamic
Hidden

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

Static Costs

A

Material
Labor
Transportation (customs and duties)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

Dynamic Costs

A

Labor cost inflation
Safety stock
Potential obsolescence
Pipeline inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

Hidden Costs

A 
Political unrest
Labor unrest
Labor cost that remains in home country (quality)
Natural disasters
Tax/Currency movement
Corruption
IP loss
Governance
Quotas
Reputational risk
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

Rock the boat analogy

A

Inventory masks problems

Safety stock is water
Rocks are damage, poor quality, shortages, equipment breakdowns, defects, DOWNTIME, QUALITY, LONG S/C

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

Little’s Law

A

How much inventory do I have in a pipeline? MINIMUM WIP IS NEEDED TO RUN A FACTORY

Little’s Law states that the minimum average WIP inventory (W) in a process is determined by the product of the average lead time (L) and average output rate (O) (inverse of cycle time)

Minimum WIP = lead time x throughput rate

Throughput rate is also cycle time

??? Lean production = reduce inventory by reducing lead time, little’s law deals with reducing the inventory?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

The 5 S’s (of Lean Production House Keeping)

A 
Sort
Straighten
Sweep
Standardize
Sustain/self-discipline

a methodical way to organize your workplace and your working practices, as well as being an overall philosophy and way of working.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

Operating process

A

A process is a set of tasks to be performed in a defined sequence and uses inputs (such as labor, capital, knowledge, raw materials, purchased components, and energy) to create outputs that are of great value to customers and therefore to the organization itself

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

Two goals of the operating process

A
  1. Deliver the customer promise - strategic positioning, achieve effectiveness
  2. Create value for stakeholders - achieve efficiency
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

Sequential process

A

A set of tasks that must be performed in sequence, one after another

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

Parallel process

A

Tasks that can be performed at the same time. Outputs from parallel processes are typically integrated into one product at some point later in the process flow.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

Work in Progress (WIP)

A

The number of units or partially completed units in the process at any point in time. WIP includes units currently being worked on, as well as those in WIP inventory.

WIP is separate from raw materials inventory (RMI) and finished goods inventory (FGI).

In a service, WIP can be customers, either receiving service or waiting to be served.

DOWNWARD POINTING TRIANGLE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

Decision nodes

A

At this point in the process, the flow (of either customers or materials) can move in different directions.

DIAMOND WITH A QUESTION MARK

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

Information flow

A

The customer’s order informs the decision as to which employee will serve that customer.

Indicated with a dotted line and an arrow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

Measuring Task Time

A

Usually standard times, which can be defined as the average time that an employee (or customer in many service processes) with average skills will take to complete a task, under ordinary circumstances, and working at a sustainable pace.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

Consideration of batch processes

A

It takes time to change a machine from processing one kind of part or product to another, so processing multiple units of the same product together will save changeover (or setup time).

In order to account for a batch process, we need to consider setup time and run time.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

Setup time

A

Time taken to perform a task that is independent of the number of products or customers being processed

61
Q

Run time

A

The time it takes to process each unit

62
Q

Capacity

A

The number of units of product that a process can produce (denoted in unites of product per time period) or, for service processes, the number of customers who can be served (again, customers over a time period).

Capacity is an ideal, assuming nothing goes wrong to slow the process to shut it down.

63
Q

Bottleneck analysis

A

The key to assessing the capacity of a process.

A bottleneck constrains product flow, decreasing the potential revenue and curing potential profits.

The bottleneck of a any process is the task that causes all other tasks to have idle time (could be more than one).

Creates blocked tasks and starved tasks.

64
Q

Cycle time

A

The average time between the completion of successive units of product or, in the case of a service process, the average time between the departures of successive customers.

SYSTEM CYCLE TIME IS EQUAL TO THE TASK TIME OF THE BOTTLENECK TASK. All other tasks are either blocked or starved and have some idle time.

65
Q

Cycle time (with multiple workers doing same task)

A

As the number of workers at the task increases, cycle time drops. Task time remains the same.

66
Q

Capacity is the inverse of…

A

Cycle time

67
Q

Cycle time is the inverse of…

A

Capacity

68
Q

Capacity utilization

A

Output rate/capacity

69
Q

How do you adjust cycle time and capacity utilization to make a process more efficient?

A

Balance the process – make cycle times at each task as equal as possible and make the capacity utilization at each task as high as possible.

70
Q

Labor utilization

A

Productive time spent by workers as a percentage of total time for which they are available. Time worked/time available for work.

71
Q

Labor utilization per cycle

A

labor content per unit/(process cycle time*number of workers)

72
Q

Caution for increasing labor utilization

A

For non-bottleneck tasks, increasing workers creates more inventory, not salable product.

73
Q

Process effectiveness

A

Quality - ability of a product or services to meet or exceed customer expectations
Speed - how quickly and reliably they can produce and deliver a product to customers (or how quickly a customer can be served)
Flexibility - the ability to change or react with little penalty in time, effort, cost of performance.
Safety – ?

74
Q

Performance quality

A

A firm that competes on performance quality produces goods and services that deliver a high level of some set of performance dimensions.

75
Q

Conformance quality

A

A product or service with high conformance quality delivers on its specifications, whether this means a high level of performance or not.

76
Q

Lead time

A

The elapsed time between when an order is placed and when it is delivered. For physical product, this involves many players in the supply chain.

77
Q

Throughput time (TPT)

A

The time it takes for one unit to compete a process from beginning to end.

Minimum TPT - only achieved by firms that produce rush orders. Not really a possible or useful metric.
Average TPT - Critical for organizations because it influences promised delivery time, a critical part of the customer promise.

78
Q

Andon

A

Stop all work if there’s a problem

79
Q

Statistical Process Control and 3 steps

A

SPC - not a one-off check, but continuous monitoring.

  1. Pick specification range (UTL and LTL)
  2. Collect sample and calculate standard deviation
  3. Cp = UTL - LTL/???
80
Q

3 Types of Buffers

A

Inventory
Capacity
Time

81
Q

Total Quality Management (TQM)

A

Quality DEVELOPMENT, MAINTENANCE, and IMPROVEMENT.

Most ECONOMICAL while serving customer

Customer Centric

Philosophy all buy in ‘internal customers’

External operation only as good as internal operation

82
Q

4 Costs of TQM

A

Prevention
Analysis
Internal failure costs
External failure costs

Graph: x-axis is amount of quality effort, y-axis is cost (Total cost is top line in crescent shape, cost of effort goes up to right, cost of error goes down to right. Optimum point is where latter to lines cross.)

83
Q

Taylorism (scientific model)

A

Division of labor, work measurement, productivity

Managers manage, workers work

84
Q

2 Delivery Models

A
  1. Periodic delivery model (peaks and lows, saves money on transport)
  2. Supplier-led delivery model (helps variability, decreases waste - profit for all?)
85
Q

4 Vs of Characteristics (VaVaVoomVis)

A

VOLUME of their output
VARIETY of their output
VARIATION in demand for output
Degree of VISIBILITY which customers have on the production of output

4 Vs lead to 5 Performance Objectives

86
Q

5 Performance Objectives (Quebec Delivers Snow For Canada)

A 
Quality
Dependability
Speed
Flexibility
Cost

Cumulative and dynamic process, there must be adjustment, improvement in all layers
Constantly building
Alignment

87
Q

Strategy & Factors

A

Order Winning factors
Qualifying factors
Less Important factors

88
Q

Operations Hierarchy (Low to High)

A

Sub-process level
Process Level
Operations Level
Supply Network Level

89
Q

Just in Time Production Key Characteristics

A
  • Moving from push to pull
  • links all processes together (stops insulation of processes)
  • short term may be slow, but long term better solution
  • reduces levels of inventory, thus highlights problems (rock boat analogy)
  • short term utilisation may decrease
  • resolves issues and squeezes out waste
90
Q

SPC Analysis (above or below 1)

A

If result = 1+, process is capable

If result = 1-, process is not capable

91
Q

2 errors in SPC

A

Type 1 - stop process when in control

Type 2 - don’t stop when out of control

92
Q

2 criticisms of SPC

A

No push for improvement
Either in control or not - no differentiation of “in control”

Answer - Taguchi loss function (cost of variability)

93
Q

House of Lean

A

Policy deployment (roof) is built on columns of JIDOKA and JIT and base of teams, kanban, removing waste, PDCA, 5s of Housekeeping

94
Q

Process-focused organization

A

Organizes similar kinds of skills, activities and technologies into (usually physically) separate departments, with products (often in batches) moved by material handlers from one department to another.

JOB OR MACHINE SHOP

95
Q

Product-focused organization

A

Work is organized by the product family (a grouping of products that are manufactured in a similar way) or by customer type. Each product type would have a dedicated production line.

96
Q

Machine- vs. worker-paced lines

A

Machine-paced line can never build up inventory since the line keeps moving. However, reworks would pile up in the end so the manager needs to take measure at some point.

97
Q

Job Shop CHALLENGE

A

Keep products moving to meet delivery dates.

98
Q

Worker-paced lines CHALLENGE

A

Designing tasks to minimize delays, idle time, WIP inventories caused by bottlenecks.

99
Q

Machine-paced lines CHALLENGE

A

Task design - finding the right division of labor to minimize idle time and to run the line fast enough to meed demand.

Ongoing - improve productivity, monitor staffing levels, and occasionally rebalance line.

100
Q

Continuous-flow process CHALLENGE

A

Keeping the line running.

101
Q

Process Knowledge

A

The degree to which we understand, and can specify, the conditions under which a process does what we’ve designed it to do, with limited variation in output. Process Knowledge implies explicit knowledge of the variables that are critical to scuccess and an ability to control them (Scale is 0 to 8)

102
Q

Pull scheduling

A

driven by the replenishment signal that acts as trigger in the system. Needs a minimum amount of inventory to pull from.

103
Q

Push scheduling (MRP)

A

production is driven by a central schedule (often based on forecast demand)

104
Q

Push and pull envelope

A

customer pull operations are supported by forecast-push systems for those cases where the lead-time to provide the goods exceeds the willingness to wait of the customer.

105
Q

Order Fulfillment Strategies (MAYBE)

A

Balancing production lead time and demand lead time

Make-to-stock
Assemble-to-order
Build-to-order
Engineer-to-order

106
Q

Make-to-stock

A

goods made to be placed in stock prior to receiving an order

efficient production, but risk of obsolescence/high stock cost

107
Q

Assemble-to-order

A

Dell Model

Producers hold components in stock to assemble an order as required by the customer.

Responsive to customization but cost of holding components remains.

108
Q

Build-to-order

A

Material ordered and product made only after the buyer’s order is received. No cost of holding goods or components, but may be less efficient.

109
Q

Engineer-to-order

A

Product designed and built to customer order (consulting project)

110
Q

Types of inventory

A

Raw materials, WIP, Finished Goods, Safety/Cycle stock

“Inventory is a substitute for information” - Hammer

111
Q

Safety stock

A

a non-active component to protect against fluctuations of demand, production and supply.

112
Q

Cycle stock

A

an active component that depletes over time and is replenished cyclically. (Inventory sawtooth)

113
Q

Materials Requirements Planning (MRP)

A

Computer system that calculates the exact requirements of components and materials for a given product, or more accurately, for a complete schedule of products.

114
Q

MRP inputs (3)

A
  1. Master Production Schedule (MPS) - schedule of what should be produced at end item. Effectively a mixture of actual customer orders and forecast demand.
  2. Bill of materials (BOM) - file that identifies which materials are needed to produce the item at the end of service.
  3. Inventory master file - database that captures all relevant information for each SKU, including how many items are currently on order and held in inventory
115
Q

MRP outputs (3)

A
  1. Work orders - telling the respective processes what to work on
  2. Purchase orders - telling the respective suppliers what materials are needed and when
  3. Rescheduling notices - whenever there is a problem with previous schedule, it will recalculate
116
Q

Problems with MRP system

A
  1. MRP system works on fixed batches and fixed lead times (lengthens lead times, increasing WIP inventory….MRP holds more WIP than JIT)
  2. MRP system plan end item levels - does not synchronize between items that may be sharing parts can cause uneven order for suppliers, giving rise to bullwhip effect)
  3. Weakness in production scheduling (JIT consistently outperforms here)
117
Q

Kanban

A

Used in JIT

Signals the authorization of movement and the production of material.

WIP is limited to what is authorized by the aggregation of production specified in Kanbans.

WITHDRAWAL and PRODUCTION

118
Q

Withdrawal Kanban

A

allows for material to be removed from the kanban supermarket

119
Q

Production Kanban

A

allows a process to produce a replenishment batch once inventory is withdrawn from the kanban supermarket

120
Q

3 advantages of JIT system

A
  1. Prevents overproduction
  2. Limits the total WIP
  3. Beats MRP on both lead time and inventory levels
121
Q

Weaknesses of JIT system

A

The system itself is more fragile.

Schedule variability needs to be kept below 5-10% around planned levels.

System is tightly controlled and thus unable to cope with large swings in volume or product mix.

122
Q

When do we forecast?

A

When production lead time exceeds demand lead time.

123
Q

3 golden rules of forecasting

A
  1. Forecast is always wrong
  2. The longer the forecast horizon, the worse the forecast becomes
  3. The less aggregated, the worse the forecast becomes
124
Q

Performance Measures (+MMS)

A

Management
Morale
Stability

125
Q

Pareto Analysis

A

Ranks problems, issues or causes from most to least important. The operating concept is the Pareto rule, which states that approximately 8-% of the issues can be attributed to 20% of the possible causes. Helps identify fixes that will have the most impact.

126
Q

Process Improvement Tools

A 
Deming Cycle
Fishbone Diagram (root cause analysis)
Pareto analysis
Trade-off model
Sand cone model
Six Sigma System
127
Q

Trade-off model

A

Unless there is some slack in the system, improving any one of the four basic manufacturing capabilities (sand cone), must necessarily be at the expense of one or more of the other three.

128
Q

Six sigma system

A

A managerial approach which uses a variety of statistical and problem-solving tools to process problems and reduce defects. In contrast to the conventional 3-sigma test, six sigma is more rigorous with goal of 3.4 defects per million.

129
Q

What makes up quality for products?

A

functionality/performance, ease of use, reliability, aesthetics, durability, reputation, conformance (consistency)

You can only control conformance at production stage

130
Q

What makes up quality for services?

A

responsiveness, adherence to specification, access, assurance, empathy

131
Q

Objective of Process Control

A

Detect variability, reduce variability

132
Q

Mean chart

A

the mean chart captures averages from a series of samples. it is a sequential (time-ordered) plot of the sample means.

reflects “central tendency” and shows any changes in the averages across the samples.

133
Q

Range chart

A

A time-ordered plot of the difference between the highest and lowest value in a series of samples.

Measures dispersion or “spread” within each sample

134
Q

Process Capability Ratio

A

Cp = USL-LSL/2zo

Compares the full allowable range to process variability

+1 or below 1

135
Q

Process Capability Index

A

similar to process capability ratio, but accounts for the possibility that the process mean is not centered between the specification limits. It measures the distance between the process mean and the nearest specification limit.

Cpk = minimum of [Upper specification limit-x/3o, x-lower specification limit/3o]

136
Q

poka yoke

A

failsafe devices in the production process (sensors, templates, etc.) that automatically stop the line when an abnormality occurs

137
Q

Drivers of Globalization

A

Arbitraging labor conditions/cost
Utilization of time difference
Efficient transportation
Access to local market

138
Q

Supply Chain Risk Management

A

Location pooling - inventory from multiple territories and locations is combined into a central or regional facility, which minimizes the risks of stock-outs or overstocking

Product pooling or postponement - product configuration is delayed using a modular design, which can serve overall product demand with fewer components (HP)

Capacity pooling - each production facility produces several models, in order to counter an peaks or troughs for individual models.

139
Q

3 Supply Chain Enemies

A

Inventory and delays - worsens and ‘swings’ of amplification. the longer the response time to a change, the worse the swing upstream. particular problem for global supply chains

Unreliability and uncertainty - any kind of uncertainty needs to be covered with inventory

Hand-offs or decision points - every tier in the system bears the danger of distorting the demand signal, as planners tend to have “misperceptions” of the actual demand. problem of double guessing by forecasting based on someone else’s forecast.

140
Q

3 Ts of highly effective supply chains

A

Time - lead-time results in bullwhip and inventory
Transparency - lack of forward visibility creates uncertainty and stock or unused capacity
Trust - long-term collaborative supplier relationships outperform short-term adversarial ones

141
Q

Triple-A supply chain

A

Agility - respond to changing customer needs
Adaptability - adapt to long-term changes in markets and technology
Alignment - align incentives to enable cooperation and coordination across tiers in the chain

142
Q

fallacy of the “one best way”

A

emulation of the best practices often don’t work, since all operations have different characteristics

143
Q

Legacy of mass production

A

alternative approach to mass production sought – long running time, matching capacities of equipment, ample inventory bugger to deal with erratic demand

remains underlying premise due to simplicity and clarity

144
Q

Contingency approach (Skinner)

A

different companies have different strengths and weaknesses, hence different yardsticks of success

different ways of operation functions result in different operating characteristics, making it easier/harder to copy one another

rather than adopting “one best way”, task for an operations organization is to seek “fit” between business unites chosen approach to competition and the way operation is designed.

  • lean production not necessarily holy grail
  • not appropriate in all situations
  • applying lean production does not create enduring strategic advantage
145
Q

Age of Lean

A 
Japanese system achieving reliability, speed and flexibility
achieved the elimination of waste
generalist approach to hr
horizontal communication
cellular production
146
Q

Mind Map of Operations Management

A 
Interchangeable parts
Mass Production
TPS
TQM
Lean and Six Sigma (develop around the same time)
Lean/Six Sigma
147
Q

Process performance (internal)

A

Efficiency (relative term) - benchmarking, in relation to standard or time
Productivity (absolute term) - sum of outputs over sum of inputs

148
Q

Process performance (external)

A

QCD

Quality
Cost
Time (delivery)

Service
Flexibility
Management
Morale
Safety
Sustainability

Tech & Ops (1 decks)

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