Flashcards
1
Q
The process used to acquire inputs, such as people, capital, and material, and transform them into outputs, such as products and services.
A
Operations
2
Q
Who allocates resources?
A
Operations manager
3
Q
Facilities and equipment
A
Capital
4
Q
Developing capabilities that customers value, can be sustained over the long-term, and competitors find difficult to replicate.
A
Competitive Advantage
5
Q
The process of separating production from consumption; cannot be done for services because they are produced and consumed simultaneously.`
A
Inseparability
6
Q
The application of knowledge, tools, processes, and procedures to solve problems.
A
Technology
7
Q
The characteristics, features, and performance of the product; how the product functions; does not fundamentally change the product. Example: changing Coca-Cola’s beverage containers from glass to aluminum.
A
Product Design
8
Q
The application of knowledge to improve the product.
A
Product Technology
9
Q
What is used to accomplish a task?
A
Process
10
Q
When individuals with different expertise work towards a common goal; this is an essential business process.
A
Cross-functionality
11
Q
Completing product design and process design simultaneously.
A
Concurrent Engineering
12
Q
Subsystems within an organization, such as marketing, finance, and accounting, that are linked together by a common organizational goal.
A
Functional Areas
13
Q
Consists of the organizational goals and the methods of implementing the goals; every element of the SWOT analysis should be considered when developing strategies.
A
Strategy
14
Q
Main goals of an organization.
A
Key policies
15
Q
The formal relationships among different functional areas that aids in communication.
A
Organizational structure
16
Q
Where one entity has an advantage over another; will often trade their specialized products for those that they do not produce; are able to produce products at a lower cost than their competitors
A
Relative Advantage
17
Q
A free trade agreement between the United State, Mexico, and Canada to reduce tariffs and other trade restrictions.
A
North American Free Trade Agreement (NAFTA)
18
Q
A trade agreement designed to reduce tariffs and other trade restrictions.
A
General Agreement on Tariffs and Trade (GATT)
19
Q
Balancing the interconnected obligations to economic viability, society, and the environment (the triple bottom line).
A
Sustainability
20
Q
What is the percentage of businesses that operate within the service sector?
A
88%
21
Q
Supplies and equipment that aid in the development of products and services.
A
Supporting Goods
22
Q
The percentage of sales in a particular market.
A
Market Share
23
Q
VIRAL
A
Value, Inimitable, rare, aptitude, and lifespan.
24
Q
Analyzing the internal (strengths and weaknesses) and external (opportunities and threats) environments.
A
SWOT Analysis
25
What is required to developing competitive advantage?
SWOT, business process, competitive capabilities, and customer requirements.
26
Continuously improving a product to make it better and cheaper.
Learning curve
27
Teamwork where the whole is greater than the sum of its parts.
Synergy
28
Strategy development, product development, system development, and order fulfillment.
Key Process
29
The process of producing goods and system.
System
30
Matching strengths to opportunities.
Matching
31
Converting weaknesses or threats into strengths or opportunities.
Converting
32
Output / Input; the goal is achieving more output given the amount of inputs, thus saving money and reducing production costs.
Productivity
33
Starting in the late 1800s, increases in manufacturing productivity reduced the need for physical labor and enabled a shift towards service-based jobs.
The First Revolution
34
Productivity and efficiency improvements in manufacturing freed resources for the rapid expansion of the service industry.
The Second Revolution
35
Also known as the post-industrial era, this revolution began in the 1950s with the development of computers. This technology has allowed fewer people to do more work.
The Third Revolution
36
The ability to perform dependably and accurately.
Reliability
37
Knowledge and courtesy of employees and their ability to convey trust and confidence.
Assurance
38
The complete overhaul of a process to improve performance.
Process Redesign
39
How quality is defined by the business; often measured as the amount of a desired attribute; objective.
Quality (internal)
40
How quality is defined by the customer and the product's fitness for use; meets customer's needs and expectations; subjective.
Quality (external)
41
Ask what they value (not just what they want), how do they work, what makes them happy, and feedback on specific product attributes.
Questions for Customers when Improving Products
42
Failure costs, appraisal costs, and prevention costs.
Costs of Quality
43
Costs accrued by the organization or customer as the result of a failure of the product.
Failure Costs
44
Investments in measuring quality and assessing customer satisfaction.
Appraisal Costs
45
Investments designed to prevent defects from occurring.
Prevention Costs
46
Mistake proofing; an approach to prevent defects, such as color-coding parts so that customers assemble the product correctly.
Poka-yoke
47
Products should be designed so that they are simple and inexpensive to produce.
Design for Manufacture and Assembly (DFMA)
48
Services should be simple and inexpensive.
Design for Operation (DFO)
49
The development of products that appeal to the changing wants and needs of customers.
Quality Planning
50
Ensure that the product fits the customer's perception of fitness for use.
Quality Control
51
Leadership ought to lead efforts to eliminate waste and errors.
Quality Improvement
52
A team from all levels who meet to discuss, analyze, and eliminate quality issues using Deming's 14 points; a senior manager overseas their progress and approves their changes.
Quality Circles
53
An organization-wide philosophy that calls for 1) focusing on the customer, 2) quality function deployment, 3) responsibility for quality, 4) team problem-solving, 5) employee training, and 6) fact-based management.
Total Quality Management (TQM)
54
Describes what customers want and what they like and dislike; can get to know customers, hold focus groups, and request improvement suggestions; the business can also use their knowledge of how the customer would benefit from a new technology that they are not familiar with to create a future need on behalf of the customer.
Voice of the Customer
55
Relating customer needs and expectations to specific design characteristics through a series of grids or matrices.
Quality Function Deployment (QFD)
56
The matrix used in Quality Function Deployment (QFD); lists customer needs (WHATs), design characteristics related to these needs (HOWs), the nature of the relationship between each customer's need and design characteristic (WHAT versus HOW), the reasons for WHATs (WHYs), and performance comparisons on design characteristics against competitors (HOW MUCH).
House of Quality
57
Where quality control obligations traditionally fell; now, it is up to everyone to ensure quality.
Quality Control Department
58
Developing a preset procedure
Standardization
59
The act of putting a procedure into writing.
Documentation
60
2000: An international quality standard.
ISO 9000
61
Fishbone diagrams, check sheets, control charts, histograms, Pareto charts, scatter diagrams, and control charts (classified as flow/run charts).
Seven Tools of Statistical Process Control (SPC)
62
Used to record data points in real-time at the site where the data is generated; raw data is collected without interpretation and then depicted using a different statistical tool.
Check Sheets
63
Shows the frequency of data observations within a preset range of values.
Histogram/Box Chart
64
Displays data as a relationship between two variables; correlations can be drawn based upon the data. The controlled variable is the independent variable.
Scatter Plot
65
A bar chart that reflects data values in a descending order.
Pareto Chart
66
A graphical depiction of process outputs where the raw data is plotted in real-time within upper control limits (UCL) and lower control limits (LCL); this allows one to determine if a process is stable or trending towards instability and take corrective action before variations result in non-conforming products.
Control Chart
67
Another form of a control chart for processes that have common features, a common scale, or a central tendency; an optimal line is drawn horizontally across the chart to gauge the central tendency (see Page 30 for example).
Run Chart
68
Relates to the firm's ability to produce error-free products; uses six standard deviations rather than three, which translates to 3.4 defects per 1 million units (99.99966% error-free). Uses the DMAIC (Define, Measure, Analyze, Improve, and Control) process; uses quantitative and qualitative techniques.
Six Sigma
69
Used in the Six Sigma "define" stage to include all aspects of a project to ensure optimal success, including the project scope, problem statement, time frame, boundaries, and team members.
Project Charter
70
The "define, measure, analyze, improve, and control" process of Six Sigma.
DMAIC
71
Provides an overview of an entire process.
Value Stream Mapping
72
Defines the supplier-input-process-output-customer relationships in a process.
SIPC Chart
73
Used to identify potential causes of defects, errors, breakdowns, or failures.
Failure Modes and Effects Analysis (FMEA)
74
Determines the accuracy and repeatability of the measurement methods and devices used to control variation in the process.
Measurement System Analysis
75
Real-time solving of problems within complex systems with many different factors that are difficult to isolate.
Design of Experiments (DOE)
76
A team that can make rapid changes using ideas from those involved in the process.
Kaizen Teams
77
Sort, straighten, shine, standardize, and sustain; used to create visual control of the workplace.
5S Methodology
78
Define, measure, analyze, design, and verify; this method is like Six Sigma, but it is used specifically for new products and processes.
DMADV/Design for Six Sigma (DFSS)
79
When using Six Sigma, these specialists are developed within an organization who are experts in specific methods.
Black Belts/Green Belts
80
A concise verbal statement of the problem, based upon the organization's expectations.
Problem Statement
81
A concise verbal statement of the problem, based upon the organization's expectations.
Problem Statement
82
Products throughout their development cycle, from raw material through the final consumer product.
Supply Chain
83
The organization that directs the flow of information, and has the most influence and control, across the supply chain; Apple doesn't manufacturer, but the product design and marketing-focused firm is focal because it's brand dominants the market; also, the companies that own the oil fields and refineries are the focal firms because they control the key resource in the supply chain.
Focal Firm
84
Owning multiple assets in a supply chain.
Vertical Integration
85
A manufacturer purchases components from tier 1 suppliers. When they produce these components, they may purchase components from tier 2 suppliers, and so on.
Tier # Suppliers
86
Managing the movement of materials, components, and information along the supply chain.
Logistics
87
Taking actions to have all members of the supply chain coordinate their activities and share information.
Supply Chain Management
88
The process of returning defective products and efforts to reuse and recycle materials.
Reverse Logistics
89
When goods are provided from within the organization.
Insourced
90
When goods are obtained from outside suppliers.
Outsourced
91
Owning its suppliers.
Backward Vertical Integration
92
Owning distribution systems and retail outlets.
Forward Vertical Integration
93
Fast and reliable supply chains that can transmit information reliably, accurately, and quickly from the marketplace to supply chain members; can create flexible and responsive production processes that allow product differentiation.
Agile Supply Chains
94
Supply chains that can keep costs down and minimize inventory; perfect for functional items with long life cycles, stable demand, and minimal innovation that produce low profit margins; by keeping inventory low, it increases the chances of bottlenecks related to supply shortages
Lean Supply Chains
95
When the vendor/supplier coordinates its own inventory replenishment by receiving daily point-of-sale (POS) data from retail stores.
Vendor Managed Inventory (VMI)
96
Having outside suppliers work inside the firm and handle all purchases for the business, as they are more knowledgeable of the supplies, inventory levels, and future production plans.
Just-in-Time II (JIT II)
97
A model developed by the Supply Chain Council (SCC) to divide all supply chain activities into five groups: plan, source, make (how a product will be made, in what quantities, and where), deliver (through each supply chain stage), and return (such as warranty costs, repairs, customer satisfaction, disposal, etc.); is used as a framework in development supply chain performance management systems.
Supply Chain Operations Reference (SCOR) Model
98
The time between when a company owes money to suppliers when it receives money from customers.
Cash-to-Cash Cycle
99
Finished Goods Inventory / Average Sales per Day; when there are more sales
Days of Supply (DoS)
100
Companies that exist as an administrative shell that outsources all other functions.
Virtual Company
101
Market (demand), process (throughput), and product (supply).
Primary Constraints in a System
102
When a resource's capacity to less than or equal to demand for that resource.
Contraint
103
The most limiting constraint on the system, whereby requiring the longest time or slowest rate.
Bottleneck
104
Occurs when the production process's capacity, flexibility, or activities is its own biggest limitation.
Process Bottleneck
105
Caused by under-investment, under-utilization, weather, road construction, physical location, or geographical limits.
Physical Bottleneck
106
When there are insufficient materials to make a product.
Product Bottleneck
107
The rate of flow; the process that allows the supply chain to flow.
Throughout
108
The practice of helping suppliers improve their production capabilities.
Supplier Development
109
A partnership with mutual benefits that can be realized through supply chain collaboration so that there is more time to focus on core competencies.
Strategic Alliances
110
The logistical practice of unloading materials from one truck and loading them into another vehicle with minimal storage in between.
Cross-Docking
111
Outsourcing logistics to third-parties.
Third-Party Logistics (3PL)
112
Using electromagnetic fields to identify and track tags attached to objects.
Radio-Frequency Identification
113
A measure of an organization's ability to provide customers with goods in the amount requested and in a timely manner, given current resources; the maximum sustainable rate of production.
Capacity
114
Planning an organization's ability to deliver at capacity; significant capital is usually involved to build facilities and purchase equipment; require careful consideration of long-term objectives, current demand, and long-term demand.
Capacity Planning
115
Different products produced on the same equipment.
Product Mix
116
The ability of an organization to produce a sufficient number of goods to meet customer demands.
System Capacity
117
A portion of the production system.
Department
118
A process that is characterized by high demand for the same or similar products; for example, the process of continuously producing paper along the supply chain; this system often measures output as the number of items produced per day.
Product Layout
119
A process that is characterized by the production of many different products with the same equipment and low volume for each product; an example is a car repair shop that offer a variety of services; this system often measures output as completed orders per day.
Process Layout
120
The maximum achievable output of a process under ideal conditions for a short period of time.
Design Capacity
121
The maximum achievable output given the product mix, equipment changeovers, and downtime.
Effective Capacity
122
Actual Output / Design Capacity; used to measure how much capacity is actually being used on an average basis.
Capacity Utilization
123
The effective capacity minus additional factors that reduce production, such as a fuel stop.
Actual Output
124
Actual Output / Effective Capacity; used to measure how much effective capacity is being used to achieve output.
Efficiency
125
The state where output is as close to the system capacity as possible.
Throughput
126
The placement of a facility with regards to a company's customers, suppliers, and other facilities; should be a long-term, strategic investment.
Facility Location
127
Requires that each production facility has a defined marketing area that produces a complete line of products for that area; used when customer convenience is important, or when transportation costs are high.
Regional Facility Strategy
128
One facility is responsible for producing one product or product line and shipping it throughout the world; good for expensive, small, specialized products that require many resources to produce.
Product Facility Strategy
129
Costs which change and can be adjusted as business conditions change.
Variable Cost
130
One dollar received today is worth more than one dollar received at some future point, such as through investment.
Time Value of Money
131
Determining the most appropriate method of completing a task; volume, cost, and profit are three critical elements when selecting a process.
Process Selection
132
Applying the appropriate mix of technology to leverage the organization's workforce.
Volume
133
Making a workforce more productive using better tools.
Leverage
134
Low variety operations; have high fixed costs and low variable costs.
Line Flow Process
135
Where low-variety units are mixed and flow together in a high-volume continuous stream, such as oil refining or processing checks; the main scheduling dilemma stems from knowing the best time to switch from making one product to another.
Continuous Flow
136
The assembly of low-variety discrete products, such as washing machines, at high volume; each output is trackable.
Assembly Line
137
A process that aggregates similar products together to generate sufficient volume for efficient use; transition/changeover time is required between batches;
Batch Flow
138
A general and flexible facility that has much higher unit costs but cater to individual customer demands; produces low quantities of any given item, but large amounts of quantity overall; low fixed costs and high unit-variable costs.
Job Shop
139
All costs are variable; often a "fixed position", such as a building or computer hardware; flexible and require expert teams to implement.
Project
140
Allow the production of low-cost products that need varying customer requirements; relies upon group technology to build a family of parts.
Flexible Manufacturing Systems (FMS)
141
A set of methods that allow firms to classify parts based on size, shape, use, material, and production method.
Group Technology
142
A collection of parts with similar characteristics.
Family of Parts
143
Producing products at low cost, high volumes, and high flexibility; meets the various needs of customers.
Mass Customization
144
Reducing costs from increasing production for a single product type using existing resources.
Economies of Scale
145
An attempt to predict the future by using past experience to gain insights into the future with mathematical models.
Forecasting
146
The difference between what actually happens and what is predicted.
Forecasting Error
147
Consists of determining forecast objectives, developing a model using historical data, applying the model, consider real-world constraints on the model, and revising and evaluating the forecast using human judgement.
Forecasting Process
148
Demand that is not controlled by the company, such as finished products.
Independent Demand
149
Demand generated by a company's production process, such as components for a computer that a company is producing.
Dependent Demand
150
Indicates which items and how many of each item to produce.
Master Schedule
151
Lists the needed materials and quantities of materials; it also provides information on how the materials come together; like a recipe.
Bill of Materials (BOM)
152
Deciding based upon input from a panel of experts who deliver their input via surveys.
Delphi Technique
153
Adding together estimates from each element from an organization, from the bottom to the top;
Build-up method
154
When a new product in placed in an area that is representative of the overall market to measure its success; an expensive approach that usually reports accurate findings.
Test Market
155
used to predict both cross-sectional and time series data.
Regression Analysis
156
Collected by observing many subjects at the same point in time or without regard to differences in time.
Cross-Sectional Data
157
A series of values of a quantity obtained at successive times, often with equal intervals between them.
Time Series Data
158
An average that smooths out peaks in the data to provide a more reasonable prediction; calculated by taking the sum of each of the data points and dividing them by the number of data points; used to forecast future data.
Simple Moving Average
159
An average that assigns different weights to each period; calculated by taking each value, multiplying them by their respective weights, and then summing each result.
Weighted Moving Average
160
A procedure for continually revising an estimate to include more recent data. Each data point is calculated separately, and each low and high weight is also shown separately. The overall formula is F = A(X) + [(1 - A) * (X)], where the "A" represents the low and high weights and "X" represents the previous data point. This calculation is performed twice for each period, once for the low and once for the high weight.
Exponential Smoothing
161
How much error is inherent in a model? Calculated by using the mean squared error (MSE) or mean absolute deviation (MAD).
Propensity for Error
162
The average of all the squared errors; square each of the error rates (the difference between the actual and the predicted results), add them together, and divide by the number of periods.
Mean Squared Error (MSE)
163
Similar to mean squared error (MSE), excepted instead of squaring each of the error rates, one should simply drop the minus signs from the negative values, add them all together, and then divide by the number of periods.
Mean Absolutely Deviation (MAD)
164
Forecasts that range from six to 18 months; used in the aggregate plan.
Medium-Range Forecasts
165
A plan that usually lasts for around five years that addresses facilities, resources, and building.
Long-Range Operations Planning
166
A plan that develops ways to utilizes resources to meet demand; usually span from six to 18 months.
Medium-Range Operations Planning
167
The combination of individual end items into groups or families of parts for planning purposes; for example, an appliance manufacturer may begin medium-range planning by determining production rates for each product family, such as fridges, stoves, and dishwashers.
Aggregate Planning
168
Based on the aggregate plan, this schedule provides more detail, such as identifying the cubic feet, energy efficiency, and layout of a fridge model; determines the exact product mix that a company will use; disaggregates the aggregate plan; for example, whereas the iPod may be the basis for the aggregate plan, the 5th Generation iPod Touch in Gray and Silver is reflected in the master production schedule.
Master Production Schedule
169
The length of time a company uses as the basis for developing a plan, forecast, or schedule. Should be long enough to account for lead times of all products and their component parts, plus additional buffer time.
Planning Horizon
170
A short period of time in which demand and requirements are grouped for master scheduling and material requirements planning.
Time Bucket
171
Revision/improvement
Iteration
172
Inventory that has not yet been sold. Take the on-hand inventory and subtract it from the customer orders booked.
Available-to-Promise
173
Multiple versions of the master production schedule (MPS).
Trials
174
The process of continuously updating master production schedules.
Rolling Through Time
175
Preventing changes to the master product schedule (MPS) to avoid disruption.
Freezing the Master Schedule
176
Act as boundaries between periods in the planning horizon; corresponds to the cumulative lead time to make a product; events outside of this are not captured in the master schedule.
Time Fences
177
The process of managing inventory for dependent demand items; the three most important data requirements are the master production schedule (MPS), the bill of materials (BOM), and inventory records.
Material Requirements Planning (MRP)
178
A way to reconcile inventory records and correct errors; a physical count of the inventory is made at least once per replenishment cycle.
Cycle Counting
179
The period between orders to replenish inventory.
Replenishment cycle
180
Producing a material requirements planning (MRP) table for each item in a bill of materials (BOM); the BOM is exploded each time a company runs an MRP table.
Exploding the BOM
181
The quantity that should be ordered, based upon an insufficient quantity reported in the master production planning (MRP) table.
Planned Order Release
182
Authorizes production to make certain components.
Shop Order
183
Authorization for a vendor to supply materials.
Purchase Order
184
Gives the order of priority for jobs to be completed.
Daily Dispatch List
185
Has a broader focus on the tools of production planning and tracking; improves MRP such as introducing automating planning/tracking with digital tools; extends the value stream beyond when the material is received so that it covers the entire manufacturing and shipping processes; includes finance, human resources, and shipping.
Material Requirements Planning (MRP) II
186
An enterprise-wide view of data-driven productivity; it began with material requirements planning (MRP) to focus on materials, followed by the entire manufacturing system (MRP II), and then, finally, an enterprise-wide scope (ERP).
Enterprise Resource Planning (ERP)
187
Guidelines for the order in which of a set of procedures should take place.
Sequencing Rules
188
Occurs as the result of a planned event, such as a release date; a pro of planning for peak demand is that one can guarantee that capacity is available during peak demand, but a con is that capacity is often underutilized during non-peak times, whereby wasting money; sufficient capacity is available at all time to ensure that capacity is available during peak demand.
Peak Demand
189
The process of varying the workforce and using overtime to adjust production rates to match demand; this strategy requires a flexible workforce.
Chase Demand
190
When demand is not even throughout the day.
Uneven Demand
191
Allows organization to determine advance demand while also limiting access to this service.
Reservation Strategy
192
Requiring customers to exert effort during transactions, such as pumping one's own gas or serving themselves at a buffet; this process saves money.
Consumer Participation
193
The ability the use a portion of facilities or employees at any given time, such as closing off a section of a restaurant when demand is low so that some wait staff can prepare for peak demand.
Adjustable Capacity
194
Used to determine capacity.
Capacity Requirement Planning (CRP)
195
A company that only provides goods that are ordered.
Make-to-Order Company
196
A company that produces for inventory and future demand.
Made-to-Stock Company
197
Having the optimal number of appropriate workstations and the appropriate amount of work per station so that idle time is low, preferably zero.
Assembly-Line Balancing
198
Current Inventory / Usage Rate; used to calculate how long it will take for a company to run out of a product at current usage rates.
Run-Out Time
199
A level of inventory to protect against unexpected demand or supplier delays as to keep overall production levels constant.
Safety Stock
200
Partly-finished parts or components.
Work-in-process (WIP)
201
Inventory from the time it leaves the warehouse until it is delivered to the customer.
Pipeline Inventory
202
An inventory system that continuously monitors inventory levels, An advantage is that the company will always have a good inventory count. The disadvantage is the cost to maintain such a system.
Perpetual Inventory System
203
The least-acceptable level of inventory; orders are often performed automatically based upon this data point.
Order Point
204
Used when a company does not know their inventory level or if the supplier will only deliver at a specific interval during their order window. Adn advantage is that this system is low-cost. The downside is the inability to determine exact inventory balances without a physical count, whereby necessitating safety stocks.
Periodic Review System
205
When the inventory runs out.
Stock-out
206
Used to determine which inventory items should receive the highest level of control, through multiplying the dollar value of each item by its annual usage. Items are ranked by dollar usage, from highest to lowest. Following the Pareto Principle, the first 20% of the items are assigned to Class A, characterized as having close control and monitoring through a perpetual inventory system. Class B items comprise the next 30%, and they deserve less attention. Class C items are the last 50% of stocked items, characterized by lowest dollar usage and can be monitored loosely through a periodic review system.
ABC Analysis
207
The principle that only 20% of all items account for 80% of total dollar usage.
Pareto Principle
208
A model that determines the per-order quantity at which annual variable costs for holding and ordering inventory are minimized; whenever ordering costs go up, holding costs go down, and vice-versa, selects the point where both intersect on a graph; the model calculates whole inventory items that arrive complete.
Economic Order Quantity (EOQ)
209
The cost of ordering components or changing over equipment to produce it in-house (set-up costs).
Ordering Cost
210
The costs of holding inventory; includes costs for storage space and losses incurred due to damage or obsolescence.
Holding/Carrying Cost
211
1) Constant known demand, 2) Cost per unit is not dependent on order quantity, 3) Entire order delivered at once, and 4) ordering and carrying costs are known and independent.
Economic Order Quantity (EOQ) Assumptions
212
The time it takes for an order to reach a supplier's office, to fill the order, and to ship the order.
Lead Time
213
The percentage of replenishment orders that are received before a stock-out occurs; considers the probability of a stock-out vs the costs of inventory to find the right percentage.
Service Level
214
Measures how far numbers spread apart. For example, if the average inventory is 10 units, and the inventory tends to run between six and 14 units, the measurement is four.
Standard Deviation
215
A model that helps companies control the cost of ordering, receiving, and holding inventory; this model allows for incomplete inventory to arrive, thus proving useful for businesses that produce their own parts; also known as Production Order Quantity.
Economic Production Quantity (EPQ)
216
Characterized by maximizing efficiency and eliminating waste; encompasses standardized processes with single-piece flow, allowing variety; focus on a smooth, even flow of high-volume production; often used synonymously with "lean systems"; minimizes work-in-process (WIP) inventory; transition to general-use machines; move workers closer together so they can hand-off material throughout the process; make blanket purchases; uses a pull system; often has shorter planning horizons with small batch sizes and less scheduling; low inventories help spot inefficiencies.
Just-in-Time (JIT)
217
Toyota's version of Just-in-Time (JIT) and lean systems.
Toyota Production System (TPS)
218
Moves materials through the process based upon a schedule.
Push System
219
Moves materials through the process as needed.
Pull System
220
The Japanese word for "card" that is used to signal the need for more materials or parts at downstream operations; developed by Toyota; used in pull systems.
Kanban
221
An authorization to move a container of parts or materials; nothing can move without it.
Conveyance Kanban (C-Kanban)
222
Inventory at a work center can only be replenished when a container is emptied, whereby preventing the hoarding of extra parts.
Single-Card Kanban System
223
Used to authorize the production of parts.
Production Kanban (P-Kanban)
224
Combines Conveyance Kanban (C-Kanban) and Production Kanban (P-Kanban); allows greater control over production and inventory.
Dual-Card Kanban System
225
Preventing defecting parks or equipment failure in the process; also known as total productive maintenance; relies on preventive maintenance, the allocation of time for maintenance, and operator responsibility for maintenance (as opposed to departmental responsibility).
Total Preventive Maintenance (TPM)
226
The number of units of each end product produced at a time is as small as possible, and the total production of each matches average demand during the scheduling horizon. For example, if the scheduling horizon is 20 days, and the demand during that period is expected to be 300 units, a level schedule work require 15 units (300/20) be produced per day. Makes demand for each part fairly uniform throughout the day.
Level Assembly Schedule
227
Work Time per Day / Units Required per Day; a measure of how often a product is made.
Cycle Time
