Production Management Flashcards
What is the primary goal of Lean Operations?
To eliminate non-value-added activities from the supply chain, reducing waste and improving efficiency.
Who pioneered the Just-in-Time (JIT) philosophy?
Taiichi Ohno at Toyota, as part of the Toyota Production System.
What are the three core principles of JIT philosophy according to Harrison (1992)?
- Eliminate waste, 2. Involve everyone, 3. Continuous improvement.
Name the seven types of waste identified by Ohno (1988).
Overproduction, Waiting time, Transport, Process, Inventory, Motion, Defective goods.
What does “Kaizen” refer to in Lean Management?
A philosophy of continuous improvement through small, incremental changes over time.
What is a ‘Kanban’ system?
A pull-based production system where signals (like cards) manage inventory and production flow.
How does JIT supplier networks support Lean Management?
By forming close, long-term relationships with a small number of suppliers to ensure frequent, small-batch deliveries.
Define Total Preventative Maintenance (TPM).
A proactive approach combining maintenance with quality and employee involvement to reduce equipment downtime and improve reliability.
What is the purpose of Setup Reduction (SUR) in JIT?
To drastically reduce machine setup times to accommodate small-batch production.
What is the difference between push and pull production systems?
Push systems schedule production based on forecasts; pull systems produce based on actual demand.
How does cellular manufacturing align with JIT principles?
It reduces transportation and material handling costs by grouping different types of equipment into a U-shaped cell for specific product production.
What does the ‘Chase Strategy’ in production management aim to do?
Adjust workforce levels (hiring and firing) to match fluctuating demand without building inventory.
What is a key trade-off of the ‘Level Strategy’ in production management?
It keeps workforce constant, avoiding hiring/firing costs but may incur higher inventory costs.
What is Linear Programming (LP) used for in production management?
To optimize resource allocation and decision-making within constraints for objectives like cost minimization.
Production management definition
have the right product, in the right amount, in the right place, in the right quality
2 core concepts of production management
- Manufacturing resource planning: a top-down approach
–> if I have a business plan, how do I come ultimately to machines and machine scheduling: very broad understanding of what I want to produce to a detailed execution - bottom-up concept: lean management and just-in-time production
MRP II (Manufacturing Resource Planning) : top down approach
is a method for efficient planning of all resources of manufacturing companies
Difference between MRP I and MRP II
MRP II must be distinguished from MRP I (Material Requirement Planning), which is part of MRP II. Although MRP II can help to select suitable suppliers, this does not reflect the core of MRP II.
Steps of MRP II (Manufacturing Resource Planning):
- Business Planning
- Aggregated Planning
- Master Production Schedulting (MPS)
- Material Requirements Planning (MRP)
- Scheduling
Business planning
sales planning and demand planning (how many products will we sell in which region, which, which month, which quarter)
Aggregated Planning
about the resources: assure that we can delivery
–> make sure we can fulfil expected demand
Master Production Scheduling (MPS)
product level : planning on a product level
Material Requirements Planning (MRP)
we are talking about parts (parts of product)
—> complexity increases because we are not talking about one car but a thousand Parts that have to be available to manufacture
Why are Chase and Level Strategies often associated with large costs?
Both strategies rely entirely on in-house production, leading to significant costs related to workforce or inventory management.
What do both Chase and Level Strategies aim to achieve?
They aim to meet aggregate staffing requirements for production management.
Why is the “hire & fire” principle of the Chase Strategy considered morally reprehensible?
It involves frequent hiring and firing, raising ethical and social concerns despite its alignment with demand fluctuations.
What is Linear Programming (LP)?
A mathematical model used for resource allocation and decision-making by maximizing or minimizing an objective function subject to constraints.
What fields commonly use LP?
Manufacturing, finance, marketing, and transportation
What are the three steps to develop an LP model?
- Formulation (defining variables, constraints, and objective function), 2. Solution (solving graphically or via software), 3. Interpretation (analyzing and applying results).
What does the feasible region represent in an LP problem?
The overlapping area where all constraints are satisfied simultaneously.
Where does the optimal solution to an LP problem occur?
At a corner point of the feasible region
What is an unbounded solution in LP?
A condition where the objective function value becomes infinitely large, indicating an improperly formulated problem.
What are special cases in LP?
Redundancy, infeasibility, unboundedness, and alternate optimal solutions.
How is the objective function represented in LP?
As a linear equation or inequality to be maximized or minimized (e.g., profit or cost).
What is the Corner Point Method in LP?
A technique that identifies optimal solutions at corner points of the feasible region, preferred for its simplicity
What tool in Excel is used for solving LP problems?
The Solver add-in, used to optimize decision variables under constraints.
What are the key steps for setting up an LP problem in Excel?
- Enable Solver, 2. Set up spreadsheet with decision variables, constraints, and objective function, 3. Define constraints, 4. Configure Solver, 5. Solve and review results.
What are non-negativity constraints in LP?
Constraints that ensure decision variables cannot be negative
What does the SUMPRODUCT function do in LP setups?
It helps calculate the left-hand side (LHS) of constraints and the objective function efficiently in Excel
What is a Bill of Material (BOM)?
A document that captures the structure of a product, detailing all components, subassemblies, and materials needed for manufacturing.
What is a Multi-Level BOM?
A detailed BOM that shows the full structure of a product, including all subassemblies and components at multiple levels
What is a Single-Level BOM?
A BOM that only lists the components or materials at the first level of the product structure, focusing on immediate assemblies
What is a Flattened BOM?
A BOM that lists all parts and components in a single view, multiplying subassemblies with their components to show the overall need
