final exam Flashcards
capacity
the maximum rate of output of a process or a system
utilization
The degree to which equipment, space, or the workforce is currently being used
utilization calculation
(average output rate/maximum capacity) * 100%
capacity cushions
the amount of “reserve capacity” a process maintains
economies of scale
reduce cost by increasing output rate
diseconomies of scale
cost increases as the facility’s size increases
capacity cushion calculation
100% - average utilization rate
setup times
The time required to change a process or an operation from making one service or product to making another.
bottleneck
limits the organization’s ability to meet the product volume, product mix, or demand fluctuation
theory of constraints
focuses on managing constraints that delay a firm’s progress toward its goal
throughput time
Total elapsed time from the start to the finish of a job
TOC steps
- identify system bottlenecks
- exploit/improve the bottlenecks
- subordinate all other bottlenecks to step 2
- elevate the bottlenecks
- do not be complacent
identifying bottlenecks
large setup times and cost leads to larger runs being made
immediate predecessors
Work elements that must be done before the next element can begin
mixed model lines
A production line that produces several items belonging to the same family
lean system
maximize the value by removing waste and delays from activities
type of waste in lean
- overproduction
- inappropriate processing
- waiting
- transportation
- motion
- inventory
- defects
- underutilization of employees
jidoka
immediately stopping the process when something is wrong and then fixing the problems
muda
waste
poka-yoke
methods aimed at designing fail-safe systems that minimize human error
heijunka
The leveling of production load by both volume and product mix.
kaizen
The philosophy of continually seeking ways to improve processes
takt time
Cycle time needed to match the rate of production to the rate of sales or consumption
pull method
customer demand activates the production
push method
production begins in advance of customer needs
the 5 S’s
- sort
- straighten
- shine
- standardize
- sustain
takt time calculations
working time available/ customer demand
Kanban
keeping records of what you have, what you are using, and what needs to be reordered to control flow
just in time
The belief that waste can be eliminated by cutting unnecessary capacity or inventory and removing activities that don’t add value
JIT system
rearranging the organization to make a firm realize the benefits of JIT principles.
project objectives
statement of scope, time frame, and resources
critical path
The sequence of activities that takes the longest time to complete; determines earliest possible completion date
gantt chart
helps team allocate resources and plan for project
earliest finish time
earliest start + estimated duration
latest start
latest finish - duration
activity slack
latest start - earliest start or latest finish - earliest finish
risk management plan
identifies risks finds ways to overcome them
risk categories
- strategic fit
- service/product attributes
- product team capability
- operations
PERT
(optimistic time + 4*most likely time + longest amount of time) / 6
project life cycle
monitor status, monitor resources
inventory management
The planning and controlling of inventories to meet the competitive priorities
average cycle inventory
lot size/2
3 types of inventory
raw material, work in process, finished goods
SKU
stock keeping unit
ABC analysis
dividing SKUs into three classes, according to their dollar usage, so that managers can focus on items that have the highest dollar value
economic order quanitity
square root of (2 * annual demand * ordering or setup costs)/holding cost per unit
inventory position calculations
on hand + in transit – demand = x
periodic
ordering inventory to replenish
component
goes through processes to become part of one or more parents
parent
manufactured from components
dependent demand
demand occurs because the quantity varies due to production plans for other items
ATP procedures
available to promise; The quantity of end items that marketing can promise to deliver on specified dates.
bill of materials
A record of all the components of an item, the parent-component relationships, and the usage quantities
MRP inputs
bill of materials and info in inventory records
scheduled receipts
orders that have been placed but not yet completed
planned receipts
Orders that are not yet released to the shop or the supplier
lead time
when you place the order until receipt
MRP explosion
inventory record for a material; shows items lot size policy, vendor, price, lead time
MRP explosion calculation
on hand = beginning balance + receipts - sales
enterprise process
companywide process that cuts across functional areas, business units, geographical regions, product lines, suppliers, and customers
bill of resources
same as BOM but for service firms
