OM Flashcards
A System in which works are moved by upstream workstations pushing
outputs to downstream workstations when they are completed
Push system
A System in which works are moved by downstream workstation pulling output from upstream workstations as needed
Pull system
It means ongoing improvement involving everyone, from top management, middle managers to worker
Kaizen
The 8 Wastes
DOWNTIME. Overproduction, Waiting Time, Transportation, Excess Processing, Too much Inventory, Unnecessary Motion, Defects, Unutilized Talent
5S
正理、整頓、清掃、清潔、躾
A proactive approach: Prevents mistakes from occurring during the production, delivery or service that allows mistakes to be identified easily, often at a glance.
Poka Yoke
Example of Poka Yoke
Ex.
Level production to create uniform load. Produce the right quantity each day—no more and no less.
Heijunka
The average time between the start of production of one unit and the start of production of the next unit. Need to produce 1 car every hour for 1 month.
Takt time
Formula for Takt Time
= 1 / Throughphut
Formula for Turnover
= 1 / Time
Formula for ideal number of Kanbans
N = DT / C
Demand rate, Lead Time, Capacity
N of Kanbans x Capacity =
Inventory
is a function that responsible for supplying the product or service
of the organization. It is the engine that
creates profit for a company.
Operations
The management of systems or processes that create goods and/or provide
services, within an organization.
operations management
two of the most important factors that affect GDP growth, firm output, and firm profitability
new product innovation and
productivity improvement,
are physical items that include raw materials, parts, subassemblies, and final products.
Goods
are activities that provide some combination of time, location, form or psychological value.
Services
a sequence of activities and organizations involved in producing and delivering a good or service
Supply Chain
The three primary functions in an organization
Operations, Marketing, Finance
Four major OM decisions
QPICS
1. Process
2. Quality
3. Capacity
4. Inventory
Supply Chain
The system that converts inputs into
outputs. OM deals with planning and controlling the transformation process and its interfaces.
Process
decisions that decide i) the physical process or facility used to produce and deliver the products and/or services and ii) the
associated workforce policies and practices.
Process Decision
Management where the individual’s
contribution is valued only based on its
concrete results. No matter how hard a
person works, lack of results will result in a
poor personal rating, lower income etc.
A sales person’s sales value (how many products sold, how much money as revenue, how many apartments sold, etc).
Result-Oriented Mgt
The attitudinal factors, the efforts, time, morale, participation, of an individual, are used to evaluate a person’s performance.
A sales person: The amount of time spent calling on new customers, the percentage of new inquiries successfully closed, time spent on outside customer calls versus time devoted to clerical work at office, etc.
Process-Oriented Mgt
is the direction and scope of an organization
over the long-term
Strategy
The overall purpose and scope of the
business to meet stakeholder expectations. It acts to guide strategic
decision-making throughout the
business. Often found in mission
statement.
Corporate Strategy
Defines how each particular business
will compete. Large corporations may have several different business, each competing in different market segments.
Business Strategy
restatement of the mission in quantitative
and measurable terms.
Operations objectives
The four common operations objectives
Cost, Quality, Delivery, and Flexibility
Something an organization does better than any competing organization that adds value for thecustomer.
Operations Distinctive
Competence
The statement of goals, tasks, and
purposes of the operations function, guided by business strategy
Operations Missions
consists of direction, goals, plans, and decisions for the operations function that are linked to the business strategy and other functional strategies, leading to a competitive advantage for the firm. Is developed by a team of managers from across the entire business.
Operations Strategy
Four generic business strategies in order to gain competitive advantage.
Differentiation Focus, Differentiation, Cost Focus, Cost Leadership
a product made up from components whose functionalities are tightly related
Integral product
a product made up from components whose functionalities are interchangeable and independent of each other
Modular product
The objective that wins
orders from customers
Order winners
Other objectives that should
maintain at acceptable level
Order qualifiers
What kind of process flow for highly standardized and automated products like steel, oil, beer, sake, paper, sugar, electricity,
Continuous Process
What kind of process flow that consists of linear sequence of operations. Products
move from one step to the next in sequence. autos, computers
Assembly Line
What kind of process flow for many different types of products in low volume
Batch Flow
Enumerate product flow characteristics
Continuous Process, Assembly Line, Batch Flow, Job Shop, Project
Layout of flow where production cost is cheaper but inflexible. equipment are specialized
Product layout
Layout of flow where production cost is higher but more flexible. equipment is general purpose
Process layout
What kind of process that’s usually used to make custom parts manufacturing for other businesses. Many manufacturers/services (entrepreneurs) began as this and grew
into the other manufacturing processes.
Job Shop
What kind of process for unique or creative products with a defined beginning
and end
Project
classifications by order fulfillment
MTS, MTO, ATO
The actual length of time takes to design, make and deliver the product to customer.
Lead time or cycle time
is the personalization of products and services for individual customers with high production level at competitive price
Mass Customization
How is mass customization possible?
Modular production, Fast changeover, and Postponement
is a design approach that creates things out of independent parts with standard interfaces. This allows designs to be customized, upgraded, repaired, and for parts to be reused.
Modular design
is any design that is difficult to customize or repair. For example, many electronics are intentionally designed so that they must be repaired by the manufacturer.
Non-modular design
