Operation Management Flashcards
Two Operation Fuctions
(1) deploying resources to convert input into goods or services;
(2) matching supply with demand.
Business strategy concerns with
strategic product positioning to create competitive advantages in price, quality,
time and variety.
3 factors impact on the bottom-line
Flow rate, flow time and inventory
four key process capabilities
cost, quality, lead time and
flexibility
Little’s law formula
Inventory = flow rate * flow time
Little’s law is a useful diagnosis tool for evaluating what?
A flow process
Inventory turn formula
= 1/(flow time)
Process capacity determines what?
the maximum
flow rate sustainable by a process.
What does a process
flow diagram shows?
Operations,
flows, and inventories
What is the bottleneck?
The resource that has the highest utilization.
Use what to measure demand and capacity when there are multiple job types?
时间单位（Time Unit）：指用某种时间尺度（如每小时、每天）来表示工作量或产能。它可以帮助你标准化不同工作类型的衡量标准。
Two ways to improve customer waiting experience:
managing perception
and reducing waiting time.
What leads to longer waiting time?
larger arrival and service variability and higher utilization
How does capacity pooling reduce waiting time?
making resources more
flexible so that their
short-term workloads can be balanced.
Important principles for waiting time management
- capacity pooling,
- specialization,
- the exponential relationship between waiting time and utilization,
- service priority
Pros of Specialization
allows a resource to complete a task
faster and with more consistency
How does Service priority improves overall waiting time performance?
reducing the waiting
time of some customers at the expense of longer waiting time of other customers.
Newsvendor Model.The optimal capacity level Q * formula
Service level = Prob(demand <= Q*) = Cu / (Cu+Co)
The quantity Q* optimally balances what between what?
balances the costs of mismatch (i.e., overage and underage costs)
between capacity and random demand.
