Lecture 13 - 🌟Mockup-Exam Flashcards
What are three advantages and three disadvantages of digital shop floor meetings?
What are the advantages and disadvantages between chase and level? (4)
Production planning strategies used to match production with demand.
chase
- Uneven workload
- Reduced inventory in case of wrong forecast
level
- High inventory,
- but even workload
List Ishikawa’s 7 tools of quality control
(Basic Quality Tools)! ⛵️
S catter Diagram
C heck Sheets
H istogram
F ishbone Diagram
F low Charts
P areto Analysis / Chart
C ontrol Chart
What is the bullwhip effect? (3)
Increasing variability of demand and orders in a supply chain.
Leads to higher costs and inefficiencies. Caused by factors like
- forecasting errors,
- order batching,
- inventory practices,
- lead time variability.
What is Andon?
- System which notifies of a process Problem
- managerial, maintenance, and other workers
Imagine you order a BigMac but without pickles at McDonald’s. Where is the customer-order decoupling point (CODP) for your order in the McDonald’s store?
Raw material inventory
Which formula would you use to calculate waiting times in front of a ticket office?
Little’s law
___
L=λ⋅W
Where:
- L - is the average number of items in the queue,
- λ - is the average arrival rate of items to the queue, and
- W - is the average time an item spends in the queue.
Find the design capacity when ..
- utilization = 72%
- actual output = 36 trucks per day.
U=C/E
Where:
- U - utilization (Nutzung)
- C - design capacity
-
E - effective capacity
___
50 trucks per day
In planning and control we differentiate demand ..
- dependent
- independent
Which statements is false?
Once the dependent demand is known, the independent demand can be determined.
Which problems in a factory would you address first?
Overburdened processes
Key principles of Just-in-Time (JIT) (3)
One-piece-flow
Moving a product through every step of the process without grouping it into a batch
Takt Time
The rate at which goods need to be produced to meet customer demand
Pull System
Products are pulled into production as they are needed or requested by customers (no overproduction)
Describe four critical operational hurdles/challenges regarding creating a profitable remanufacturing business?
- Quality Assurance and Standardization
- Supply Chain Management (sourcing used products, acquiring replacement parts)
- Regulatory Compliance and Environmental Standards
- Reverse Logistics and products (cores) Acquisition
Would you recommend implementing a JIT strategy based on consumption-driven production? (4)
Yes, implementing a JIT (Just-In-Time) strategy based on consumption-driven production (pull system) would be advisable. This approach helps, ..
- minimize excess inventory (no overproduction),
- reduces waste, (One-piece-flow: Moving a product through every step of the process)
- ensures products are delivered to consumers at their peak freshness.
cross-country ski - What kind of forecast component is this? Provide an idea of how you would forecast the demand one month after the Olympics? (2x2)
Saisonal Peaks Components
Olypmics can be classified as an foreseen event or external factor, this is often referred to as a “spike” or “shock” to demand.
To forecast demand, you can use a combination of quantitative and qualitative forecasting methods:
- Analyze historical sales data,
- apply statistical methods,
- gather insights from sales and marketing teams,
- consult with key stakeholders.
What demand pattern does exist, within forcasting? (4)
- Cyclical components
- Seasonal peaks components
- Trend components
- Random variation (or residual variation)
Give 3 Quantitative forecasting methods (examples)
🐽🚤🟰
- Näive approach
- Moving averages
(weighted moving average) - Exponential smoothing
__ - Trend projection
- Causality model – linear regression
- Hybrid forecasting methods with fuzzy, probabilistic, and neural network methods.
Give me 3 Qualitative forecasting methods complement quantitative techniques.
- Market Surveys,
- Input from sales and customer service,
- Delphi Method,
- Intuition of forecasters
- Scenario Planning,
One of the 7 wastes in Lean is “inventory”. Should inventory always be sought eliminated? (2)
The key is to strike a balance between having enough inventory to meet customer demand and avoiding excess or unnecessary stockpiles.
Two basic inventory reorder systems:
- Reorder Level System
- Cyclical Review system
Why do we carry inventory? (5)
- To meet demand
- Protection against stock-outs
- Financial reasons
(e.g., bulk discounts or seasonal price variation) - Flexibility
- Process constraints
(e.g., minimum order or shipment levels, minimum processing levels)
Problems related to holding inventory (5)
Covers up errors in the system
- Ties up working capital
- Needs space
- Must be managed
- Is prone to damage, theft, and obsolescence
A factory has problems with throughput times and bottlenecks.
Could Process Mining be a viable technique to solve the problem? Why/why not? (5)
Process Mining can bring, ..
- Visibility into Processes
- Identifying Bottlenecks
- Root Cause Analysis
- Optimizing Workflows
However it is not a standalone solution, it should be
- complemented by a broader change management strategy,
- involving collaboration etween different stakeholders.
Competitive Capabilities in Manufacturing (4)
Operational Efficiency
- Supply Chain Management
- Cost Efficiency
Product Excellence
- Customization and Personalization
- Quality Control
Innovation and Adaptability
- Speed to Market
- Flexibility and Agility
- Innovation
Sustainable Growth
- Global Presence
- Compliance and Regulation Management
- Strategic Partnerships
Manufacturing Layouts (4)
Process Layout (Functional Layout)
- Description: Similar machines or operations are grouped together.
- Use Case: Ideal for job shops or facilities with diverse product types.
Product Layout (Line Layout)
- Description: Production process organized in a linear fashion with sequential workstations.
- Use Case: Suitable for high-volume production of standardized goods in assembly lines.
Cellular Layout (Cellular Manufacturing)
- Description: Machines and workstations grouped into cells based on similar tasks or processes.
- Use Case: Promotes efficiency, particularly for small-batch production.
Fixed-Position Layout
- Suitable for large products that cannot be moved during manufacturing.
- Use Case: Common in shipbuilding, construction, and aerospace manufacturing.
___________ ___________ ___________ ___
Hybrid Layout
- Description: Combines elements of different layouts for optimized efficiency.
- Use Case: Provides flexibility and efficiency by adapting to varying production needs.
Functional Layout with Assembly Lines:
- Description: Functional areas organized in a process layout, with assembly lines for final assembly.
- Use Case: Balances flexibility in component manufacturing with efficiency in final assembly.
Flexible Manufacturing System (FMS)
- Description: Involves computer-controlled machines and automated material handling for small-batch production.
- Use Case: Combines aspects of cellular manufacturing and automation for flexibility.
Meeting a doubling of demand in a short timeframe requires strategic planning and efficient execution. Suggest concrete and realistic ways to increase capacity to meet the demand surge. (3)
Operational Efficiency and Capacity Optimization
- Capacity Analysis
- Invest in Technology and Automation
- Expand Production Lines
- Extended Operating Hours
___ - Inventory Management
- Lean Manufacturing Practices
- Facility Expansion
- Collaborate with Third-Party Manufacturers
Workforce Development and Expansion
- Cross-Train Employees
- Workforce Expansion
- Investment in Training and Development
Supply Chain Collaboration
- Supplier Collaboration
How, to calculate an approximate Takt Time (~ SOLL) for a factory? (3)
Takt Time = Available Production Time / Customer Demand
-
Define Available Production Time
Determine the total available production time in a given period (usually expressed in hours or minutes). This is the time during which the factory is operational and can produce products. -
Determine Customer Demand
Understand the customer demand for the same period. This could be the number of units required, sales forecasts, or customer orders. It’s crucial to consider the demand in the same time unit as the available production time (e.g., per hour or per day). -
Calculate Takt Time
Use the formula mentioned above to calculate the Takt Time. Divide the available production time by the customer demand.
__
The result will be the time available for producing each unit to meet customer demand.
How, to calculate an approximate Line Speed (~ IST) for a factory? (3)
Line Speed = Number of Units Produced / Time Taken to Produce Them
-
Count the Number of Units Produced
Count the total number of units produced during the defined time period. -
Determine the Time Taken
Record the time it took to produce the counted units. Ensure consistency in time units (e.g., minutes, hours). -
Calculate Line Speed
Use the formula mentioned above to calculate line speed.
__
The result will be the rate at which units are produced per unit of time, representing the line speed.
Recommended Strategy: Chase and Level Combination
Combining Both Strategies
-
Balance Short-Term and Long-Term Goals:
Achieve a balance between responsiveness to short-term demand changes and long-term production stability. -
Regular Assessment:
Continuously assess demand patterns to adjust the production strategy based on industry dynamics.
_____________________________________
Chase Strategy for Short-Term Demand
-
Adjust Production Levels:
Respond to short-term fluctuations in demand, especially during high-demand seasons. -
Flexible Workforce:
Utilize a flexible workforce to accommodate changes in production requirements.
Level Strategy for Long-Term Stability
-
Maintain Baseline Production:
Keep a steady baseline production level for a stable and efficient assembly line. -
Strategic Inventory Use:
Use inventory strategically to absorb variations in demand and meet average order lead-time.
Customer Order Decoupling Point (CODP) in each production strategy
Engineer-to-Order (ETO)
- CODP Location: End of production process.
- Description: Unique and customized products assembled/configured based on specific customer requirements.
Make-to-Order (MTO)
- CODP Location: After order processing, before manufacturing.
- Description: Production initiated based on customer order specifications.
Assemble-to-Order (ATO)
- CODP Location: Before final assembly.
- Description: Basic components or sub-assemblies produced and stocked; final assembly/customization after order.
Make-to-Stock (MTS)
- CODP Location: Beginning of the production process.
- Description: Products produced and stocked based on forecasts and historical demand; available for immediate shipment upon customer order.
takt time, lead time, and the proportional value add
Takt Time:
- Definition: The rate at which a product must be produced to meet customer demand.
- Formula: Takt Time = Available Production Time / Customer Demand
- Purpose: Synchronizes production with demand, prevents over/underproduction.
Lead Time:
- Definition: Total time for a product to move through the entire production process.
- Components: Includes processing time, waiting time, and transportation time.
- Purpose: Essential for managing production schedules, meeting customer expectations.
Proportional Value Add:
- Definition: Measures the value-added time as a proportion of the total lead time.
- Formula: Proportional Value Add = (Value-Added Time / Total Lead Time) * 100
- Purpose: Identifies efficiency by assessing the proportion of time spent on value-adding activities.
productivity potential in new fabrication vs. repair
manufacturing
- advantages
- challenges
New Fabrication Manufacturing
Advantages
- Efficiency Planning
- Optimized Layout
- Innovation
Challenges
- Initial Investment
- Market Uncertainty
Repair Manufacturing
Advantages
- Existing Infrastructure
- Steady Demand
- Skill Utilization
Challenges
- Aging Equipment
- Limited Innovation
- Market Dependency
Explain, ..
a. Kanban
b. Shadow board
c. Karakuri kaizen
d. Two-bin system
e. Milk run
f. Floor markings for safety
g. In-line quality control
h. Standard operating procedures
i. Self-built racks
j. Poka yoke
a. Kanban:
Visual scheduling system using cards or signals to control material flow, optimize inventory, and improve efficiency.
b. Shadow Board:
Visual management tool outlining designated locations for tools or materials, promoting organization.
c. Karakuri Kaizen:
Use of mechanical devices or simple automation for continuous improvement, reducing manual labor.
d. Two-Bin System:
Inventory management method with two containers; signals replenishment when the first bin is empty.
e. Milk Run:
Logistics concept where a vehicle follows a scheduled route for efficient delivery or collection from multiple locations.
f. Floor Markings for Safety:
Visual cues on the floor indicating areas, pathways, or safety zones, improving safety and organization.
g. In-Line Quality Control:
Inspection and testing of products at various production stages to identify and address quality issues early.
h. Standard Operating Procedures (SOP):
Detailed instructions outlining standardized steps and guidelines for specific tasks or processes.
i. Self-Built Racks:
Customized or DIY racks and storage solutions built by the workforce to improve organization.
j. Poka Yoke:
Japanese term for “mistake-proofing”; designing processes to prevent errors and reduce defects.
What Manufacturing Strategy including CODP (Customer Order Decoupling Point) applies for a fabrication facility and an assembly facility?
fabrication facility
needs to apply Make-to-Stock (MTS) strategy
- Bill of Materials (BOM) Complexity.
- Spare Part Usage
- Managing Phase-Out Products
assembly facility needs to use Assemble-to-Order (ATO) strategy
- Demand-driven Production through S&OP
EOQ (Economic Order Quantity) (2)
Economic Order Quantity is a calculation used in inventory management to determine the optimal order quantity that minimizes total inventory costs. It helps strike a balance between ordering costs and holding costs.
EOQ = √ 2D Cs/Ch
D = Demand for the product (in units)
Cs = Ordering cost per order
Ch = Holding cost per unit per year
To use the EOQ model, we need to satisfy the following assumptions, .. (6)
- Known and constant demand.
- No stock-out.
__ - Known and constant lead time.
- Instantaneous receipt of materials.
__ - No quantity discounts.
- Order setup cost and inventory holding cost.
What strategic decision involves determining whether to produce components or services in-house or purchase them from external suppliers? (3)
| → | Make-or-Buy Decision
Key Factors to Consider:
-
Costs
Compare production costs and economies of scale. -
Core Competencies
Assess focus on core business capabilities. -
Capacity and Capability
Evaluate internal capacity and supplier capabilities.
___ -
Risk Management
Consider supply chain and dependency risks. -
Flexibility and Responsiveness
Evaluate adaptability to market changes. -
Quality Control
Assess the ability to meet and maintain quality standards.
