Operations Management Mix Flashcards
Muri causes?
Overburdening and unnecessary stress to employees/resources
Muda is?
Anything that doesn’t add value
7 WASTES:
Transport Inventory Motion Waiting Over production Over processing Defects
What are trade offs?
The way we’re willing to sacrifice one performance objective to achieve excellence in another
What is the triple bottom line?
Social - measured by impact of operation’s on peoples lives
Environmental - measured by impact on environment
Economic - measured by profitability
What are the 5 performance objectives?
Quality
Speed
Cost
Flexibility
Dependability
What does the bullwhip effect describe?
How small disturbances at the DOWNSTREAM end of the supply chain can cause INCREASINGLY LARGE disturbances, errors, inaccuracies and volatility as it works its way UPSTREAM
Name 3 transformed resources
Materials
Information
Customers
Name 2 transforming resources
Facilities
Staff
Order winners…
make the product or service more attractive e.g longer battery life etc
Order qualifiers…
consumers won’t even consider us without these e.g dirty restaurants etc
Process hierarchy: flow between operations is at which level?
Supply network
Process hierarchy: flow between processes is at which level?
Operation
Process hierarchy: flow between resources is at which level?
Process
What are the 4 perspectives on Operations Strategy?
Top Down
Operations Resources
Bottom Up
Market Requirements
Mura is?
Lack of consistency!
Putting unfair demand and/or pressure on people and resources
Mura = Muri = MUDA!!
Why consder the whole supply network?
Helps understanding of COMPETITIVENESS
Helps identify SIGNIFICANT LINES in the NETWORK
Helps FOCUS on LONG TERM ISSUES
Helps FOCUS on COSTS
What are the 5s?
Sort
Straighten
Shine
Standardise
Sustain
What does SORT mean?
Get rid of what’s not needed
What does STRAIGHTEN mean?
Position stuff so it’s easily reached
What does SHINE mean?
Keep stuff nice and tidy. No refuse in work area
What does STANDARDISE mean?
Maintain cleanliness and order
What does SUSTAIN mean?
Develop commitment and pride in keeping standards
What does KAIZEN mean?
Continuous Improvement
Kaizen involves…
Everyone involved in improving quality
Empowering employees to spot opportunities and reward them for improvement
Ensure flexible, multi skilled employees who can do more than one thing
What are the continuous improvement techniques?
Bench marking - use others expertise for solutions
Scatter diagrams - identify relationships and influences
Flow charts - describe info flow and decision making
Cause effect - brainstorming = reveals root cause
Pareto diagrams - sort out important few from trivial many
Why-why analysis - formal questioning to find root causes of problems
What is Total Quality Management good for?
Finding and correcting causes of poor quality
continuing to make improvements
What does Total Quality Management include?
All parts of the organisation
All staff
Consideration of all costs
Every opportunity to get things right
All systems that affect quality
Name the 2 Improvement Cycles..
DMAIC
Deming
What are Deming and DMAIC a part of?
Six Sigma Approach
What does DMAIC stand for?
Define Measure Analyse Improve Control
What are the 7 inventory costs? (COOPSWC)
Costs of placing an order Obsolesce costs Operating inefficiencies Price discounts Storage costs Working capital Consignment cost
What are the inventory classifications and measures?
CLASS A: never let it run out, 20%, high value
CLASS B: keep an eye on it, 30%, medium value
CLASS C: not too bothered, 50%, low value
Name the 2 lean visual tools…
Kanban
Poka Yoke
What is Kanban?
cards that give visual signals to communicate progress of work
can be used to pull work from previous process and indicate when inventory should be bought
kanban board gives overview of work and scheduling
What is Poka Yoke?
means error proof
quality defects usually result from human error
uses physical or visual methods to make common errors impossible to make
Gap Model Of Quality: Gap 1 is where…
customers - operations specifications gap
consistency: internal quality spec to from expectiations of customers
Gap Model Of Quality: Gap 2 is where…
Concept - specification gap
internal spec meets intended concept of design
Gap Model Of Quality: Gap 3 is where…
Quality specification - actual quality gap
actual product/service conforms to internally spec quality level
Gap Model Of Quality: Gap 4 is where…
Image - customer specification gap
promises made to customers can really be delivered
Explain: Inventory SINGLE stage
supplier > stock > sales
e.g local Tesco
Explain: Inventory TWO stage
supplier > stock > distribution > stock > sales
e.g. car parts distributor: central depot puts parts together then distributes to local distribution centres
Explain: Inventory MULTI stage
supplier > stock > stage 1 > WIP > stage 2 > WIP > stage 3 > finished good for sale
e.g. HP puts different parts together to assemble laptops then sells
What are the 5 types of inventory? (BADPC)
Buffer - created to satisfy demand in case of surge
Anticipation - seasonal e.g. high demand in summer
Decoupling - different processes in multi inventory
Pipeline - period of time between order being placed and time its fulfilled
Cycle - different processes not done simultaneously
Supply factors that influence cost in an operation?
Labour costs Land costs Energy costs Transportation costs Community factors
Demand factors that influence customer service and revenue in an operation?
Labour skills
Suitability of site
Image
Convenience for customers
What does a polar diagram show?
Relative importance of each performance objective
Can indicate difference between products and services produced by operation
Name the process types…
Project Jobbing Batch Mass Service shop Mass service Continuous Professional
Name the 4V’s…
Volume
Visibility
Variability
Variety
Name the 4 basic layout types…
Cell - department store
Fixed position - heart surgery
Functional - library
Line - production line
What 3 things should be balanced when choosing the location of operation?
Spatially variable costs
Service we’re able to provide to customers
Revenue potential
Hayes and Wheelwright 4 stage model:
Stage 4 Externally supportive
Looks to long term, develops operations based capabilities required to compete in future markets. Innovative, creative and proactive
Hayes and Wheelwright 4 stage model:
Stage 1 Internal neutrality
Poorest level, inward looking and reactive. goal is to be overlooked and not hold company back
Hayes and Wheelwright 4 stage model:
Stage 2 External neutrality
compares itself with similar companies in outside market, tries to implement best practice by measuring self against competitors performance
Hayes and Wheelwright 4 stage model:
Stage 3 Internally supportive
amongst the best in their market, gain a clear view of company’s competitive or strategic goals and support them by developing appropriate operations resources
