Final Material Flashcards
how effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services
competitiveness
The reason for an organization’s existence; it answers the question: “What business are we in?”
Mission statement
What serves as the basis for organizational goals?
Mission statement
special attributes or abilities that give an organization a competitive edge?
core competencies
What does a swot analysis stand for? What are external/internal factors?
S: strengths (internal)
W: weaknesses (internal)
O: opportunities (external)
T: threats (external)
What are key external factors?
- economic conditions
- political conditions
- legal environment
- technology
- competition
- markets
What are key internal factors?
- Human resources
- facilities and equipment
- financial resources
- customers
- products and services
- technology
- suppliers
Strategies that focus on the reduction of time needed to accomplish tasks
time-based strategies
characteristics that customers perceive as minimum standards of acceptability for a product or service to be considered as a potential for purchase
order qualifiers
characteristics of an organization’s goods or services that cause it to be perceived as better than the competition
order winners
customized goods/services that are able to handle a wide variety of work but has a slow, high cost per volume because of the complex planning/scheduling
job shop
semi-standardized goods/services that have flexibility and have a moderate cost per unit/schedule complexity
batch
highly standardized with high efficiency/volume, costly to change, low variety
continuous
layout that uses standardize processing operations to achieve smooth, rapid, high volume flow; used for continuous processing
product layout
layouts that can handle varied processing requirements, used for job shop and batch processing
process layouts
layout in which the product or project remains stationary and workers, materials, and equipment are moved as needed (hospitals, supermarket, shipyards)
fixed postion layouts
emphasizes a systematic, logical approach to job design, refinement of Frederick Winslow Taylor’s scientific management concepts
Efficiency School
emphasizes satisfaction of needs and wants of employees
behavioral school
giving a worker a larger portion of the total task by horiza
job enlargemen
workers periodically exchange jobs
job rotation
increasing responsibility for planning and coordination task, by vertical loading
job enrichment
compensation based on time an employee has worked during the pay period
time-based system
compensation based on amount of output an employee produced during the pay period
output-based (incentive) system
worker’s pay is a direct linear function of his or her output
straight piecework
workers is guaranteed a base rate, tied tot an output standard that serves as a minimum
base rate + bonus
a pay system used by organizations to reward workers who undergo training that increases their skills
knowledge-based pay
Disadvantages of locating globally (5)
- transportation costs
- security costs
- unskilled labor
- import restrictions
- criticism for locating out of country
Potential risks when locating globally (6)
- political instability/unrest
- terrorism
- economic instability
- legal regulation
- ethical considerations
- cultural differences
Benefits for locating globally
- markets
- cost savings
- financial
a statement about the future value of a variable of interest
forecast
___________ techniques permit the inclusion of soft information such as human factors, personal opinions, hunches
Qualitative Forecasting
_______ techniques rely on hard evidence
Quantitative Forecasting
What are human factors involved in forecasting?
- Executive opinions
- sales force opinions
- consumer survey’s
a time-ordered sequence of observations taken at regular time intervals
time-series forecast
a long-term upward or downward movement in data
Trend
short-term, fairly regular variations related to the calendar or time of day
seasonal
wavelike variations lasting more than one year
cycle
due to unusual circumstances that do not reflect typica behavior
irregular variation
residual variation that remains after all other behaviors have been accounted for
random variation
using a single previous value of a time series as the basis for a forecast
naive
technique that averages a number of the most recent actual values in generating a forecast
moving average
the most recent values in a time series are given more weight in computing a forecast
weighted moving average
a weighted averaging method that is based on the previous forecast plus a percentage of the forecast error
exponential smoothing
The upper limit or ceiling on the load that an operating unit can handle
capacity
what is the goal of strategic capacity planning
to achieve a match between the long-term supply capabilities of an organization and the predicted level of long term demand
the maximum output rate or service capacity an operation, process, or facility is designed for
design capaicty
design capacity minus allowances such as personal time and maintenance
effective capacity
actual output/effective capacity
efficiency
actual output/design capcity
utilization
determinants of effective capacity
- facilities
- product and service factors
- process factors
- human factors
- policy factors
- operational factors
- supply chain factors
build capacity in anticipation of future demand increases
leading
build capacity when demand exceeds current capacity
following
adds capacity in relatively small increments to keep pace with increasing demand
tracking
Problems with service planning (3)
- need to be near people
- inability to store services
- degree of demand volatility
How do you effect demand?
- pricing
- promotions
- discounts
- back orders
an operation in a sequence of operations whose capacity is lower than that of other operations
bottleneck
if output rate is less than optimal level, increasing the output rate results in decreasing average per unit costs
economies of scale
if the output rate is more than the optimal level, increasing the output rate results in increasing average per unit costs
diseconomies of scale
something that limits the performance of a processor system in achieving its goals
constraint
the volume of output at which total cost and total revenue are equal
Break-even Point (BEP)
intermediate-range capacity planning that typically covers a time horizon of 2-18 months
aggregate planning
Aggregate planning inputs
- resources
- demand forecasts
- policies
- costs ( inventory carrying, back order, hiring/firing, overtime)
Aggregate planning outputs
- inventory
- output
- employment
- subcontracting
- backordering
alter demand to match capcity
proactive
alter capacity to match demand
reactive
Ways to alter capacity
- subcontracting
- hire/layoff workers
- overtime/slack time
- part-time workers
- inventories
maintaining a steady rate of regular-time output while meeting variations in demand by a combination of options
level capacity
matching capacity to demand; the planned output for a period is set at the expected demand for that period
chase demand
an approach to maximizing revenue by using a strategy of variable pricing; prices are set relative to capacity available (manufacturing doesn’t typically use)
yield management
unique, one-time operations designed to accomplish a specific set of objectives in a limited time frame
projects
5 steps to a project life cycle
- initiating
- planning
- executing
- monitoring and controlling
- closing
What are the two sides and base titles for the project management triangle:
sides: costs and schedule
base: performance objectives
center: qualitites
a person who promotes and supports a project
project champion
the length of time required under optimal conditions
optimistic time
the length of time required under the worst conditions
pessimistic time
the most probably length of time required
most likely time
project duration may be shortened by increasing direct expenses thereby realizing savings in indirect project costs
crashing
the longest path, indicated by the activities with zero slack
critical path
a flexible system of operation that uses considerably less resources than a traditional system
lean operation
a highly coordinated processing system in which goods move through a system, and services are performed, just as they are needed
just-in-time
DOWNTIME Acronym
D-defects O- overtime W- waiting N- not utilizing talent T-transportation I- inventory M-motion E- excess process
philosophy for attacking waste
Kaizen
a system for reducing change over time
single-minute exchange of die (SMED)
automatic detection of defects during production (automation)
jidoka
the cycle time needed to match customer demand for final product
Takt Time
building safeguards into a process to reduce or eliminate the potential for errors during a process (fail-safing)
poka-yoke
5 building blocks of lean systems
- workers as assets
- cross-train workers
- continuous improvement
- cost accounting
- leadership/project mangement
allocation of overhead to specific jobs based on their percentage of activities
activity-based costing
work is pushed to the next station as it is completed
push system
a workstation pulls output form the preceding workstation as it is needed
pull system
What system does a lean system use?
pull system
visible signal, device tat communicates demand for work or materials from the preceding station
kanban
What are the 5 S’s
- set
- sort
- shine
- standardize
- sustain
- (safety)
a visual tool to systematically examine the flows of material and information
value stream mapping
seeks to eliminate process variation
Six sigma
Types of inventory
- raw material/purchased parts
- work-in-process (WIP)
- finished goods
- tools/supplies
- maintenance and repairs
- goods in transits
systems that keeps track of removals from inventory continuously, thus monitoring current levels of each item
perpetual inventory system
cost to carry an item in inventory for a length of time
holding costs
classifying inventory according to some measure of importance, and allocating control efforts accordingly
ABC approach
a- importnat
b- moderately important
c- least important
when the quantity on hand of an item drops to this amount, the item is recordered
reorder point
stock that is held in excess of expected demand due to variable demand and /or lead time
safety stock
using resources in ways that do not harm ecological systems that support human existence
sustainability
the capability of an organization to produce an item at an acceptable profit
manufacturability
the capability of an organization to provide a service at an acceptable cost or profit
serviceablity
Motivations behind designing a project
- economic
- social/demographic
- policial/legal
- competitive
- cost
- technological
Where do ideas come from?
- customers
- suppliers
- distributors
- employees
- maintenance and repair personnel
dismantling and inspecting a competitor’s product to discover product improvements
reverse engineering
has the objective of advancing the state of knowledge about a subject without any near-term expectations of commercial applications
basic research
has the objective of achieving commercial applciations
applied research
converts the results of applied research into useful commercial applications
development
the responsibility a manufacturer has for any injuries or damages caused by a faulty product
product liablity
examination of the function of parts and materials in an effort to reduce the cost and/or improve the performance of a product
value analysis
refurbishing used products by replacing worn-out or defective components
remanufacturing
recovering materials for future use
recycling
product life cycle path
introduction, growth, maturity, decline
extent to which there is an absence of variety in a product, service, or process
standardization
a strategy of producing basically standardized goods or services, but incorporating some degree of customization in the final product or service
mass customization
the ability of a product, part, or system to perform its intended function under a prescribe set of condtions
reliablity
a design that results in products or services that can function over a broad range of conditions
robust design
bringing engineering design and manufacturing personnel together early in the design phase
concurrent engineering
Differences between service and product design
products= tangible
service create/deliver at same time
services can’t be inventoried
measurements taken at various points in the transformation process
feedback
comparison of feedback against previously established standards to determine if corrective action is needed
control
3 main functions of an organization
- Marketing
- Finance
- Operations
