finals Flashcards
refers to the arrangement of departments, work centres, equipment, and resources within a facility to ensure an efficient flow of materials, workers, or customers through the system.
Layout
This approach, aims for a smooth flow of work, material, and information, with supporting
objectives such as product/service quality, efficient use of space and workers, avoiding bottlenecks,
minimising material handling costs, reducing unnecessary movement, minimising production or service time, and safety consideration
Layout Planning
aims for a smooth flow of work, material, and information, with supporting objectives such as product/service quality, efficient use of space and workers, avoiding bottlenecks, minimising material handling costs, reducing unnecessary movement, minimising production or service time, and safety consideration
Product layout
A process where the product remains stationary, and workers, materials, and equipment are
moved as needed.
Fixed Position Layout
This is a blend of process, product, and fixed-position layouts, also called
“hybrid layouts”
Combinations Layout
A group of machines designed to handle intermittent processing requirements and produce a variety of similar products, offering routing and machine flexibility
Flexible Manufacutring System
This involves using computer, controlled machinery and automation systems in manufacturing products. It combines technologies like
computer-aided design (CAD) and computer-aided manufacturing (CAM).
Computer Integrated Manufacturing
Involves organising the
service environment to meet customer needs and
ensure smooth operations
Service layout
This refers to the unique qualities of employees that set them
apart from a company’s systems and procedures
Competitive Advantage in HR
involves determining staffing policies that deal with employment stability, work
schedules and work rules.
Labour Planning
the process of organising responsibilities and duties to help the company reach its objectives while enhancing employee satisfaction and motivation.
Job Design
The study of how people interact with other components of systems. It is derived from the
Greek words “ergo” (work) and “nomos” (law), thus meaning “The Laws of Work”
Ergonomics
A _________uses technologies to share information about organisational processes visually,
making human and machine performance safer, more precise, and reliable
Visual Workplace
The sets rules for hiring and firing, working hours, employee benefits, and labour union
membership. It includes regulations that protect workers and set the conditions of their employment, or measurements of how long it takes a worker to complete a task
Labour Standards
The process of estimating the time needed to complete a task at a defined level of proficiency.
Work Measurements
a network of organisations involved in producing and delivering a product or service, sometimes called a value chain. It includes facilities like warehouses, factories, processing and distribution
centres, retail outlets and office
Supply Chain
purchasing department obtains materials, supplies, and services.
Procurement
plans, implements, and controls the efficient flow and storage of goods.
Logistics Management
designs and analyses a supply chain to identify potential improvements
Supply Chain Modeling
means keeping the right amount of goods to meet demand. Inventory location
(centralized vs. decentralized) affects costs and efficiency. Inventory velocity refers to how fast goods move
through the supply chain
Inventory Management
Described as the effect is when small changes in customer demand cause bigger changes in inventory levels further
up the supply chain.
The Bullwhip Effect
involves defining criteria, assessing suppliers, building relationships, diversifying the supplier
base, negotiating contracts, monitoring performance, and establishing feedback mechanisms
Supplier Selection
the stock of goods a business holds to meet future demand
Inventory
Inventory Tracking Systems
- Periodic System: Physical counts of inventory are made at set intervals.
- Perpetual System: Continuously tracks removals from inventory, monitoring current levels.
- Two-bin System: Reordering occurs when the first of two containers is empty
Inventory Counting Technologies
- Universal Product Code (UPC): Bar codes with item information.
- Radio Frequency Identification (RFID): Uses radio waves to identify objects.
- Point-of-Sale (POS) Systems: Electronically records sales, useful for forecasting and inventory
management. - Demand Forecast: An estimate of future demand for a product or service.
- Lead Time: The time it takes to complete a process from order to delivery
Inventory Management Techniques
- ABC Classification System: Categorizes products by value to prioritise management efforts. ‘A’ items are high-value and require the most attention, ‘B’ items are medium-value and require moderate attention
and ‘C’ items are low-value. - Cycle Counting: Counting a small amount of inventory at specific times to ensure accuracy. It is
performed more frequently than full physical counts. It is typically done by inventory managers, warehouse
supervisors and staff
The ideal order quantity to minimise inventory costs. It aims to prevent financial obstruction and excessive storage costs
Economic Order Quantity
A method for creating a production schedule that matches supply and demand. It is concerned with matching supply and demand over a medium time range, up to approximately 12 months into
the future.
Aggregate Planning
Inputs for Aggregate Planning
- Resources: workforce, production rates, facilities, and equipment.
- Demand forecast.
- Policies: workforce changes, subcontracting, overtime, inventory levels, back orders.
- Costs: inventory carrying, back orders, hiring/firing, overtime, subcontracting
Adjusting capacities to match demand
requirements
Chase Approach
A pricing strategy used by businesses, especially
in hotels and airlines, to maximise revenue.
Involves selling the right product to the right
customer at the right time for the right price.
Yield Management
General Procedure for Aggregate
Planning
- Determine Demand: Use forecasting to estimate
demand for each period. - Determine Capacities: Assess available resources.
- Identify Policies: Consider restrictions such as
inventory limits and budget constraints. - Determine Unit Costs: Break down costs into
categories. - Develop Alternative Plans: Create multiple
production schedules using various strategies. - Select the Best Plan: Compare alternatives against
organisational objectives
Techniques for Aggregate Planning
- Trial-and-error approaches: Using simple tables or graphs to compare projected demand with capacity.
- Mathematical techniques: Linear programming and simulation models.
A detailed plan that guides day-to-day operations and specifies what needs to be produced each day, what materials need to be ordered, how many workers are needed each
day, and how machinery will be used to meet targets.
Master Schedule
A computer system for managing production by translating the master schedule into
time-phased requirements for materials. It answers: what is needed, how much, and when.
Material Requirements Planning (MRP)
Used to manage resources like materials, equipment, and staff. For example, a dental
clinic can manage supplies based on scheduled procedures.
MRP in Services
Guidelines to manage changes in production plans, dividing the planning horizon into zones.
Time Fences
A tool for comparing department or work center capacity with workload, to identify bottlenecks
Load Reports
A software system to manage core operations, integrating processes and data. Includes finance,
manufacturing, HR, sales, and supply chain
Enterprise Resource Planning (ERP)
involves planning, organising, and allocating resources to tasks to meet customer demands while
minimising costs and delays.
Sceduling
a long-term approach focused on continuous improvement to achieve small changes
regularly.
* It aims to provide greater customer satisfaction while using as few resources as possible
Lean Operations
Key Elements of Lean Systems
- Product Design: Using standard parts, modular design, and concurrent engineering.
- Process Design: Using small lot sizes, reducing setup time, manufacturing cells, quality improvement and
production flexibility. - Takt time: The cycle time needed to match customer demand, often set for a work shift. It is calculated by
dividing the net available time by demand
