Midterm Flashcards
Value is an interplay between ___ & ___
price & quality
You must be on the same side as ___, or your supply chain doesn’t exist.
Government/ regulators
NGO stands for
non-governmental organization
Helping set the strategy for how demand will be met (long term/ product categories) is called
Strategic forecasting
Estimating demand in the short term (weeks or months/ product lines) is called
Tactical forecasting
Dependent demand is
Demand for a product or service caused by the demand for other products or services. (Smores- package deals)
Capacity is
the ability to hold, receive, store or accommodate
To minimize costs, you should utilize ___% capacity
100%
Every project begins with
a statement of work ( a written description of objectives)
The 4 things that make up a statement of work are
Specific start/ end dates. Specifications of outcomes. Budget. Milestones
Project creep is
extra funds just in case we need to crash a project
BCWS stands for
Budgeted cost of work scheduled
BCWP stands for
Budgeted cost of work performed
Schedule variance: If BCWP-BCWS is negative, that means
the project is behind schedule
Schedule variance: If BCWP-BCWS is positive, that means
the project is ahead of schedule
The schedule performance index=
% of work completed
If cost variance is negative, that means
the project is over budget
If cost variance is positive, that means
the project is under budget
If (cost performance index) BCWP/ AC is < 1, that means
the cost of completing the work is higher than planned
If BCWP/ AC is = 1, that means
the cost of completing the work is as planned
If (cost performance index) BCWP/ AC is > 1, that means
the cost of completing the work is lower than planned
What is the most important tool for project management?
EVM- earned value management
EVM is a tool that manages
the time and money of a project
Lead time is
the time needed to respond to a customer order
Lead time is dependent on
raw materials & customization
Producing a certain quantity based on a forecasted production plan is called
Push
Producing a certain quantity based on orders from a customer is called
Pull
Most companies are moving away from (push/pull) and toward (push/pull)
Because:
away from push
to pull
Because: it creates more value in customization, produces less waste, and minimizes downtime, etc.
Little’s Law says there is a relationship between
inventory, throughput, and flow time
Little’s Law is
Inventory= Throughput rate X flow time
What are some things you can do to lower task times?
Split the task. Share the task. Parallel workstations. Hire more skilled workers. Work overtime. Redesign.
Service organizations are classifies according to
who is the customer
Service-System Design Matrix Chart
High customer contact= high sales opportunity but low efficiency.
Low customer contact= low sales opportunity but high efficiency
Poka Yokes are
Procedures that block the inevitable mistake from becoming a service defect.
What are the 3 Ts of Poka Yokes?
- Task to be done
- Treatment accorded to the customer
- Tangible features of the service facility
λ=
Arrival time
μ=
service rate
Average utilization of the teller=
p which = ratio of total arrival rate to service rate
Average number=
L
Average wait=
W
What is Operations and Supply Management?
Operations and supply management (OSM): the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services
Efficiency is
Doing something at the lowest possible cost or using the smallest input of resources
Effectiveness is
Doing the right things to create the most value for the company
Value is
Quality and Price…the attractiveness of a product relative to price.
What is Operations and supply strategy?
: setting broad policies and plans for using the resources of a firm and must be integrated with corporate strategy.
What are the 7 competitive dimensions?
Price: make the product or deliver the service cheap
Quality: make a great product or deliver a great service (design and process)
Delivery Speed: make the product or deliver the service quickly
Delivery Reliability: deliver it when promised
Coping with Changes in Demand: change its volume
Flexibility and New Product Introduction Speed: change it
Other Product Specific Criteria: support it (tech support, meeting a launch date, customizable etc.)
What is straddling?
When a company tries to match benefits of one successful position while maintaining its existing position. This often creates a problem if trade-offs need to be made.
What is Independent demand?
the demand for a product or service that cannot be derived directly from that of other products
What are the 6 components of demand?
Average demand for a period of time Trend Seasonal element Cyclical elements- elections, wars, economic conditions Random variation Autocorrelation
What are the Three basic types of forecasts?
Qualitative
Time series analysis
Causal relationships
Time series analysis is based on the idea that
data relating to past demand can be used to predict future demand
Strategic capacity planning is
an approach for determining the overall capacity level of capital intensive resources, including facilities, equipment, and overall labor force size
The basic notion of economies of scale is
that as a plant gets larger and volume increases, the average cost per unit of output drops.
Planning service capacity is different from Manufacturing capacity because: (3)
Time: goods can not be stored for later use and capacity must be available to provide a service when it is needed
Location: service goods must be at the customer demand point and capacity must be located near the customer
Volatility of demand: much greater than in manufacturing
What are the key themes of the audit in the Apple supplier responsibility report?
Worker empowerment Protection of worker rights Worker health and safety Environmental impact Ethics Management Systems (self and supplier accountability)
What are the 4 perspectives on the balanced scorecard?
Financial: encourages the identification of a few relevant high-level financial measures. In particular, designers were encouraged to choose measures that helped inform the answer to the question “How do we look to shareholders?”
Customer: encourages the identification of measures that answer the question “How do customers see us?”
Internal business processes: encourages the identification of measures that answer the question “What must we excel at?”
Learning and growth: encourages the identification of measures that answer the question “How can we continue to improve, create value and innovate?”.
What is project management?
Planning, directing, and controlling resources to meet the technical, cost, and time constraints of the project.
What are the 4 steps to CPM?
Identify each activity to be done and estimate how long it will take
Determine the required sequences and construct a network diagram
Determine the critical path
Determine the early start/finish and late start/finish schedule
What is a Customer order decoupling point?
where inventory is positioned to allow entities in the supply chain to operate independently
What are the 4 types of firms? describe them
Make-to-stock firms: Firms that serve customers from finished goods inventory
Assemble-to-order firms: firms that combine a number of preassembled modules to meet a customer’s specifications
Make-to-order firms: that make the customer’s product from raw materials, parts, and components
Engineer-to-order firm: firm that will work with the customer to design and then make the product
What are the 5 differences between a good and a service?
Tangible vs intangible
Service requires Interaction with the customer
Services are inherently heterogeneous- they vary from day to day and even hour by hour as a function of the attitudes of the customers and the servers.
Services as a process are perishable and time dependent, and can’t be stored.
Services must comply with the package of features that affect the five senses.
What is sustainability?
The ability to meet current resource needs without compromising the ability of future generations to meet their needs.
What is the triple bottom line?
Evaluating a firm against social, economic, and environmental criteria p. 26
What is project layout?
Where products are made p. 180
What is a work center?
a job site where functions are grouped together p. 180
What is a manufacturing cell?
a dedicated area where products that are similar in processing requirements are produced. p.180
What is a continuous process?
Similar to an assembly line in that production follows a predetermined sequence of steps, but the flow is continuous such as with liquids, rather than discrete. p. 180
What is a product-process matrix?
A framework depicting when the different production process types are typically used depending on product volume and how standardized the product is p. 181
What is the difference between a functional project and a matrix project?
Functional- each department works on a few projects.
Matrix- each department works on all projects.
What is the greatest challenge of a pure project?
Organizational goals and policies ignored, removed from headquarters
What is the greatest limitation of a functional project?
Little to no cross utilization of resources
What is the greatest challenge of a matrix project?
Agreement on the strength of the relationship or who owns the human resource
What are the 4 samples of qualitative forecasting techniques? p.75
Market research.
Panel Consensus
Historical Analogy
Delphi Method- Conceals the identity of the individuals participating in the study. Everyone has the same weight.
What is Workstation cycle time?
a uniform time interval in which a moving conveyor passes a series of workstations
What is Assembly-line balancing?
assigning all tasks to a series of workstations so that each workstation has no more than can be done in the work station cycle time
What decides if something is co-productive? (and therefore a service)
Involvement of customer in interaction
An entity’s Process Domain includes
all processes that are directly performed, directed, controlled by the entity.
PCN stands for
Process Chain Networks
Suggestions for managing queues include:
Segment the customer
Train your servers to be friendly
Inform your customers of what to expect
Try to divert the customer’s attention when waiting
Encourage customers to come during slack periods
An example of a single channel, multiphase is
A car wash
An example of a multichannel, single phase is
Waiting to buy football tickets.
What is the main difference between single channel, multiphase / and multichannel, single phase?
Multichannel, single phase- some customers could be served before others who arrived earlier.
Formula for exponential smoothing is
Interpret: Ft-1 + alpha (A- Ft-1)
last forecast + alpha (actual quantity demanded- last forecast)
