Process Design Flashcards
What is a Process?
Any part of an organization that takes INPUTS and TRANSFORMS them into OUTPUTS.
What is the Cycle Time?
The average time between completed units emerging from the process
What is Utilization?
The percentage of time a resource is ACTIVELY USED versus available time.
What is a Single-Stage Process?
All activities are combined and analyzed with a SINGLE CYCLE TIME
What is a Multiple-Stage Process?
Process consists of MULTIPLE ACTIVITY GROUPS linked together
What is a Buffer?
A storage area where items WAIT before moving to the next stage
What is Blocking?
Work must STOP because there’s NO SPACE to move items forward
What is Starving?
Work STOPS because NO MATERIALS are available from the previous stage
What is a Bottleneck?
The slowest stage, which LIMITS OVERALL CAPACITY
What is Make-to-Stock?
Produces in advance based on demand forecasts
What are the pros and cons of Make-to-Stock?
Fast response, but risk of overproduction
What is Make-to-Order?
Only starts production after receiving an order
What are the pros and cons of Make-to-Order?
Reduces inventory, but has slower response times
What is Hybrid?
Combines elements of both approaches (make-to-stock & make-to-order)
What are the pros and cons of Hybrid?
Balances inventory levels with customer responsiveness
What is pacing?
having a fixed time for the movement of items through the process
How do you calculate the required cycle time for a process?
net production time / number of units produced
What is Benchmarking?
Comparing process metrics against other companies
What is Productivity?
Output/Input ratio
What is Efficiency?
Actual output compared to a standard
What is Run Time?
Time required to produce a batch of parts
What is Setup Time?
Time required to prepare a machine for a specific job
What is Operation Time?
Run time + Setup time for a batch
What is Flow Time?
Total time a unit spends in process, including waiting time
What is Value-Added Time?
Time spent performing useful work on a unit
What is Process Velocity (Throughput Ratio)?
Ratio of value-added time to flow time
What is Total Average Inventory Value?
Sum of raw materials, work-in-process, and finished goods
What is Inventory Turns?
COGS ÷ Average Inventory Value (measures how often inventory is sold)
What is Days-of-Supply?
The inverse of inventory turns, scaled to days
What is Little’s Law (Inventory Relationship)?
Inventory = Throughput Rate × Flow Time
What is Job Design?
Specifies the work activities of individuals or teams
What does Specialization of Labor do?
Increases efficiency and productivity.
Can lead to worker dissatisfaction.
What are the two types of Job Enrichment?
Horizontal Enrichment: Workers perform a variety of tasks.
Vertical Enrichment: Workers participate in planning and decision-making.
What can reduce Process Flow Time?
Perform activities in parallel (instead of sequentially).
Change the sequence of activities.
Reduce interruptions and delays
What is Work Measurement & Standards?
Analyzing jobs to set time standards for tasks
What are the two types of Work Measurement Techniques?
Direct and Indirect
What are the two direct methods of measurement techniques?
Time Study: Uses a stopwatch to time work.
Work Sampling: Observes work at random intervals.
What are the two indirect methods of measurement techniques?
Predetermined Motion-Time Data System (PMTS): Uses lab-tested movement times to estimate job duration.
Elemental Data: Uses a database of past job times to estimate new job times.
