Industrial Management Flashcards
What is the main focus of Industrial Management?
Optimizing resources and making decisions to improve an organization’s overall performance.
List the five reasons why operations should be scientifically managed.
- Productivity
- Standardization
- Data-Driven Decision Making
- Resource Utilization
- Continuous Improvement
Define Productivity in the context of operations.
A measure of performance that compares the output of a product with the input required to produce it.
What does standardization in scientific management ensure?
Consistency in operations, reduces errors, and enhances product or service quality.
True or False: Scientific management relies on intuition rather than data.
False
What is a feasible solution in Linear Programming?
A solution that satisfies all constraints.
What is the objective function in Linear Programming?
A function to maximize or minimize.
What are decision variables in LP problems?
Variables that affect the objective function.
Describe the steps for model formulation in Linear Programming.
- Understand the problem
- Define decision variables
- Express the objective function
- Write down all constraints
- Ensure non-negativity constraints
What is the graphical solution method for LP?
Plot constraints, identify feasible region, move objective function lines, locate optimal solution at extreme points.
What are slack variables used for in LP?
Added to ‘≤’ constraints to convert them into equalities.
What happens at extreme points in Linear Programming?
Optimal solutions always occur at extreme points.
What are the computational tools used for LP?
- Excel Solver
- MATLAB
- Python
What is the goal of minimization problems in LP?
Reduce the objective function value.
What are alternative optimal solutions in LP?
Occurs when multiple solutions yield the same optimal value.
Define the Simplex Method in the context of LP.
A method to solve larger LP problems by iterating through feasible solutions.
What is the objective of inventory planning?
Minimize total variable costs over a specified period.
List the types of inventory costs.
- Ordering Cost
- Holding Cost
- Backorder Cost
- Purchase Cost
- Other Costs
What does the Economic Order Quantity (EOQ) model determine?
The optimal order quantity that minimizes total variable costs.
What is the difference between EOQ and Economic Production Lot Size?
EOQ assumes inventory is received all at once, while Economic Production Lot Size assumes gradual replenishment.
What additional cost is considered in EOQ with planned shortages?
Backorder Cost (Cb) per unit per year.
What does EOQ with quantity discounts account for?
Bulk purchasing reduces unit cost.
What is the reorder point for inventory?
Order when inventory reaches 3 engines
This ensures stock availability before depletion.
What does EOQ with Quantity Discounts consider?
Applies when bulk purchasing reduces unit cost
Helps optimize the order quantity based on cost savings.
What does EOQ aim to minimize?
Total cost by balancing ordering and holding costs
This is key to effective inventory management.
What is PERT?
Program Evaluation and Review Technique
Developed for managing uncertain activity times.
What does CPM stand for?
Critical Path Method
Used for projects with known activity times.
What does the Critical Path determine?
Project duration
Activities on this path cannot be delayed without affecting the project timeline.
What are the steps in PERT/CPM analysis?
- Construct Project Network
- Calculate ES and EF
- Calculate LS and LF
- Determine Slack Time
These steps help manage project timelines effectively.
What does slack time indicate?
Flexibility in scheduling
Activities with zero slack are critical.
What approach does PERT use for uncertain activity times?
Beta Distribution for activity duration estimation
This allows for more accurate project planning.
What is crashing in project management?
Reducing activity duration by spending extra costs
This helps meet project deadlines.
What is the goal of scheduling?
Assigning start and completion times to jobs
This optimizes efficiency in operations.
What does sequencing determine?
The order in which jobs or tasks are processed
This is crucial for workflow optimization.
What is the First Come, First Served (FCFS) rule?
Jobs are processed in order of arrival
This is fair but may not optimize processing times.
What is the purpose of Gantt Charts?
Visual tracking of schedules
Helps identify delays and project progress.
What does the M/M/1 model analyze?
Single channel, Poisson arrivals, exponential service time
It is a basic model in queuing theory.
What is Little’s Flow Equation?
L = λW
It relates queue length to waiting time.
What is the utilization rate in queuing theory?
λ/μ
It indicates the proportion of the server’s capacity being used.
What is the significance of the Critical Path in project management?
Identifies the longest duration path in the project network
This helps in prioritizing tasks that affect project completion.
