Quiz 1 Sessions 1,2,3 Flashcards
production
creation of goods and services
operations management
the set of activities that creates goods and services by transforming inputs into outputs
objective of operations management
- provide the goods and services needed to meet requirements effectively
- create and maintain transformation processes that are efficient and ethical
- continuously improve the outputs and the system’s efficiency
(ie, provide goods and services effectively, create/maintain processes that are efficient, improve the outputs/efficiency)
productivity
ratio of outputs divided by one or more inputs
productivity=outputs produced/inputs used
single factor productivity
indicates the ratio of one resource to the goods and services produced
eg, output/labour
multifactor productivity
output / (labour + material + energy + capital + miscellaneous)
task time
time from start of work on a unit to the completion of that unit at a given task
cycle time
time from completion of one unit to the completion of the next unit
(cycle time = bottleneck time)
throughput time
time from start of work on a unit at task 1 to the completion of work on that unit at task 5; includes wait time
(sum of all processing times of all tasks + any wait time)
WIP (work in process)
inventory that is no longer raw material but has yet to become a finished product
why/when does WIP occur
due to line imbalances (eg, bottleneck) so it builds up before the bottleneck task
bottleneck
limits production and contsrains output rate; sets ceiling on rate at which units move through process so it then determines the cycle time
the most highly used resource
output rate
number of units that can be produced per unit of time
can be calculated with cycle time (ie, process capacity)
output rate = 1 / cycle time
capacity
another term used for output rate for a process stage or the overall process (ie, it is a measure of output per unit of time)
process capaity
a measure of the output rate for the process and is determined by the bottleneck
depends on the level of resources deployed at process stages and the effectiveness of the resources utilized