Module 6-8 Flashcards
Capacity
Organizations, ability to sustainably provide customers with demand services/goods in amount requested, and in a timely manner
Operations
A combination of different machines, equipment, and processes that make final product
Capacity planning strategies
Lag
Match
Adjustment
Lag
Adding capacity only after an organization is running at full capacity
Match
Adds capacity in small amounts, moderate
Adjustment
Add or reduce capacity in small/large amounts
Product layout
Characterized by high demand for the same/similar products
Process layout
Production of any different products with same equipment and low volume of any individual product
To determine the capacity of the product/process layouts, we need to analyze the capacity of individual departments
True
Determine system capacity…
Understand design, capacity, and effective capacity
Design capacity
Max achievable output of a process system
Effective capacity
Max capacity given the product mix, equipment, changeovers, and scheduled downtime of production schedule
Capacity utilization
Capacity, utilization = actual output/design capacity
Theory of constraints
Identify system constraints
Exploit
Subordinate
Elevate
Repeat
Operation begins with…
Designing a product
Where/how products will be created
Setting capacity of the organization
Regional facility strategy
Used when a customer convenience, and access are important or when outbound transportation costs are high
Product facility strategy
When production process is complex and hard to control, or when a firm does not want to duplicate expensive equipment, so they produce in one facility
Total cost equation
TC=(VC)x+FC
Relationship between process selection, and critical elements in business
Volume
Cost
Profit 
Leverage
Making workforce more productive through using better tools
As more sophisticated tools are applied to the production process, productivity and capacity increase and labor cost per unit declines
Process layout
When similar equipment is grouped together
Project oriented operation
Very flexible
Allows extensive customization
Flexible manufacturing systems FMS
Relies on group tech to build families of parts
Low cost products with high variety
Manufacturing cells
In this way product oriented layout can be designed that will reduce material handling costs
Rely on group text to Build family of parts
Group tech
I set of methods that enables firms to classify parts based on size, shape, use, material, method of production
When pursuing flexibility, think about three attributes
Range/variety
Mobility/responsiveness
Uniformity (ability to attain similar performance across the entire range of outputs)
Economies of scale
Ability to produce more goods at a lower cost by utilizing fixed cost
Economies of scope
Economies of scale through product line diversification.
