OM300Final Flashcards
In work sampling- when should observations be taken?
At random time
Kanban is not associated with:
Increased material handling
Looking at vertical integration- when you consider backward integration you are
moving back in time (Apple going back to the orchard)
Throughput measures the time:
that it takes to process one unit at a station.
Which of the following is a visual signal at a machine that notifies support personnel about the machine:
Andon
In lean production- the term poka yoke means:
Fool Proof
Method that is specifically characterized by a focus on continuous improvement- respect for people- and standard work practiced?
Toyota Production System (TPS)
To the operation manager- one beneficial use of inventory is:
to ensure that item cost is maximized.
Ergonomics is the study of:
the human interface with the environment and machines.
What is the cost to prepare a machine or process for production?
Setup Cost
In operations- VMI means:
Vendor Managed Inventory
What does the Japanese word Kanban mean?
Card
The term “3PL” stands for:
Third Party Logistics Company
In lean production- Gemba stands for:
Going to the source
Which labor standard process requires the most training and experience to execute properly?
Time Study
Characterized by continuous and forced problem solving via a focus on throughput and reduced inventory:
Just-in-time (JIT)
In lean production- Kaizen means:
continuous improvement
The objective of supply chain management is to coordinate activities within the S.C. to maximize the S.C.’s ____________ _____________ and benefits to the ultimate consumer.
Competitive Advantage
Never outsource your _________________; instead focus on them.
Core Competencies
Situation in which suppliers compete with one another; greater responsibility:
Many Suppliers
*Situation in which buyer forms strong intimate relationships with suppliers:
Few Suppliers
Examples include Pepsi getting into bottling and Apple acting as a chipmaker but also a retail store owner.
Vertical Integration
Developing the ability to produce goods or services previously purchased:
Vertical Integration
Six Sourcing Strategies:
- Many suppliers 2. Few suppliers 3. Vertical integration 4. Joint ventures 5. Keiretsu networks 6. Virtual Companies
Cooperation without diluting brand or conceding competitive advantage; formal collaboration.
Joint Ventures
A middle ground between few suppliers and vertical integration; members expects long-term relationships and provide technical expertise and stable deliveries.
Keiretsu Networks
Rely on a variety of supplier relationships to provide services on demand; exceptionally lean performance- low capital investment- flexibility- and speed.
Virtual Companies
A risk of a supply chain is having fewer suppliers which _______________.
leads to increased dependence
Companies reduce supply chain risk through risk and mitigation tactics such as:
- Prepared responses for negative events 2. diversified supplier base 3. Innovative Planning
_______________- occurs when orders are relayed through the supply chain increasing at each step.
Bullwhip Effect
One of the main opportunities for managing an integrated supply chain: Accurate _____ data:
Pull
One of the main opportunities for managing an integrated supply chain:
Collaborative Planning Forecasting and Replenishment (CPFR)
The three negotiation methods to build a supply base:
- Competitive bidding 2. Cost-based price model 3. Market-based price model
_________ management is frequently outsourced.
Logisitcs
A warehousing technique that involves breaking up bulk:
Cross-docking
__________ supply chain includes a proactive design of a supply chain that tries to optimize all forward and reverse flows; prepares for return prior to product introduction.
Return or Reverse logistics
% Invested in Inventory =
(Total inventory investment/Total assets) x 100
Formula: Inventory Turnover =
(C.O.G.S./Inventory Investment)
Weeks of Supply =
Inventory Investment/(Annual C.O.G.S./52 Weeks)
Objective of inventory management:
strike a balance between inventory investment and customer service.
ABC Analysis
Class A - high annual dollar volume Class B - medium annual dollar volume Class C - low annual dollar volume
_______________ demand - the demand for item is independent of the demand for any other item in inventory
Independent Demand
__________ - the demand for item is dependent upon the demand for some other item in the inventory
Dependent Demand
_________ Costs - the costs of holding or “carrying” inventory over time.
Holding/Carrying
_________ Costs - the costs of placing an order and receiving goods.
Ordering
_________ costs - cost to prepare a machine or process for manufacturing an order
Setup
*The Optimal Order Quantity is when Ordering Cost = _____________________
Holding Cost
Optimal order quantity occurs when holding cost and ________ are equal.
Setup cost
Q =
Number of pieces ordered
Q* =
Optimal number of pieces per order (EOQ)
D
Annual demand in units for the inventory items
S =
Setup or ordering cost for each order
H =
Holding or carrying cost per unit per year
Formula: Annual Setup Cost =
(D/Q)S
Annual Holding Cost =
(Q/2)H
Q*=
=˚(2DS)/H
d =
demand per day
L =
lead time for a new order in days
Formula: ROP =
d * L
*Good production systems require that managers address three issues that are pervasive and fundamental to operations management:
Eliminate waste- remove variability- and improve throughput
Lean operations are driven by “__________” customer orders.
Pulling
JIT is a philosophy of continuous and forced _______ _____________ via a focus on throughput and reduced inventory
problem solving
Waste is anything that does not add ____ from the customer point of view
Value
Ohno’s 7 Wastes:
- Defective products 2. Overprocessing 3. Motion 4. Inventory 5. Transportation 6. Queues 7. Overproduction
The 5Ss
Sustain/self-discipline - review Work and recognize progress 2. Standardize- remove variations from processes 3. Shine/Sweep- clean daily 4. Simplify/ straighten- methods analysis toold 5. Sort/ segregate- when in doudt- throw it out
The problem with inventory is that it _________ variability
Hides
___________ reduce shipping costs but increase inventory holding and do not reflect actual sales
Lot Sizes
A sequence of kanbans
Pulls
In lean quality- because lead times are shorter- quality problems are _______ ______.
exposed sooner
Build an organizational culture and value system that stresses improvement of all processes- _________.
Kaizen
Stopping the system because of a defect is called __________.
Jidoka
_______________ walks to see work being performed; “where value is created”
Genba
A supply chain ends with
A stisfied customer
What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a? distributor?
Vertical integration
A lawnmower assembly plant uses a variety of? nuts- bolts-? screws- and other fasteners in its operation. Its supplier delivers these items directly to the point of use on the assembly line and ensures that there are always sufficient quantities of fasteners to maintain the production schedule.
Vendor Managed Inventory
Three criteria for designing distribution networks to meet customer expectations? are:
rapid? response- low? cost- and service.
Three common measures of supply chain performance? are:
percentage invested in? inventory- debt/equity? ratio- and weeks of supply.
One use of inventory is
to provide a hedge against inflation.
The objective of inventory management is to
strike a balance between inventory investment and customer service.
Which of the following types of inventory describes inventory that has been purchased but not? processed?
Raw material inventory
Policies based on ABC analysis might include investing
more in supplier development for A items.
Which of the following does NOT belong to ordering costs?
Interest payments
Which of the following does NOT belong to holding costs?
order processing
What is the cost to prepare a machine or process for production?
Setup cost
The difference between the basic EOQ model and the production order quantity model is that
the production order quantity model does not require the assumption of instantaneous delivery.
Extra units that are held in inventory to reduce stockouts are called
Safety stock.
Which of the following is NOT one of Taiichi Ohno’s seven wastes?
energy
What is a concept that results in material being produced only when requested and moved to where it is needed just as it is? needed?
pull system
What is the formula for determining the number of kanban cards or containers?
Demand during lead time + (Safety Stock/ Size of container)
Which of the following is NOT a Lean inventory tactic?
use a push system to move inventory
Which of the following words means continuous improvement in? Japanese?
Kaizen
The Japanese call the practice of stopping production when a defect occurs
Jidoka
JIT has an internal focus while lean production begins with an external focus on
Customers.
Kaizen means
a focus on continuous improvement.
Virtually every restaurant deals with its suppliers on
a JIT basis.
The 4 main functions of Inventory:
- To hedge against inflation 2.To take advantage of quality discounts 3. To decouple or separate various parts of the production process 4. To provide a selection of goods for anticipated demand and To separate the firm from fluctuations in demand
The 4 types of inventory:
- Finished goods 2.Maintenance/repair/operating (MRO) 3. Work-in-progress 4. Raw Materials
1 of the 4 types of Inventory: Purchased but not processed -
Raw Material
1 of the 4 types of Inventory: Undergone some change but not completed -
Work-in-progress
1 of the 4 types of Inventory: Necessary to keep machinery and processes productive -
Maintenance/repair/operating (MRO)
1 of the 4 types of Inventory: Completed product awaiting shipment -
Finished Goods
Items are counted and records updated on a periodic basis; often used with ABC analysis
Cycle Counting
Has several advantages:
Eliminates shutdowns and interruptions
Eliminates annual inventory adjustment
Trained personnel audit inventory accuracy
Allows causes of errors To be identified and corrected
Maintains accurate inventory records
Probabilistic models and Safety Stock are used when __________.
Demand is not constant or certain
Kanban cards provide a ____________- control an limit on the amount of work-in-process between cells.
Direct
Class A
High annual dollar volume
Class B
Medium annual dollar volume
Class C
Low annual dollar volume
