SCM 405 Exam 1 Flashcards
Corporate strategy
- select the market in which to compete in
- acquire and allocate resources to the business unit
Levels of strategy
corporate strategy
business unit strategy
functional (manufacturing) strategy
Business unit strategy
- identify the boundaries of the markets served
- select the desired competitive advantage
Functional (Manufacturing) Strategy
- determine how best to support the competitive advantage
- integrate and communicate with other functions
Supporting the competitive advantage (measure of manufacturing success)
- cost
- conformance quality (reliability)
- time to market (speed)
- flexibility
- delivery dependability
work station (station)
a collection of one or more identical machines
parts (jobs)
a component, sub-assembly, or an assembly that moves through the work stations
production line (line)
sequence of workstations needed to make a part
Performance measures
Throughput (TH)
Cycle Time (CT)
Work in progress (WIP)
Throughput (TH)
average quantity of good (non-defective) parts produced per unit time
Cycle Time (TH)
average time it takes for a part to travel between the start and endpoint of a production line (has no unit of time)
Work in Progress (WIP)
average inventory between the start and endpoint of production line
Line Parameters
represent the optimal performance of a production line. this is the best the production line can perform
Types of line parameters
Bottle Neck Rate
Raw processing time
Critical WIP
Bottle neck rate
- Average processing rate (part/time) of the slowest work station
- On a line with multiple parts, Rb, will depend on the product mix
- TH is always less than or equal to bottle neck
Raw process time
- sum of the average process times of each workstation in the production line
- this doesn’t include wait time
- Cycle time d greater than or equal to raw process time
Critical WIP
- WIP level in which a line with no variability would achieve both maximum TH and minimum CT
- TH = bottle neck rate
- Cycle time = raw process time
Little’s law
- Fundamental relationship between WIP, TH, and CT over the long-term
- WIP = TH * CT (rate * time)
- those performance measures are long term average
What is variability?
any departure from uniformity
Classes: common cause and assignable cause
What is variability?
any departure from uniformity
Classes: common cause and assignable cause
Common cause (random)
artifact of incomplete knowledge
variability that we don’t understand what is causing it
management implication: robustness is key
Assignable cause (controllable)
variability that we know what is causing it
Sources of variability
machine failure set up material shotages yield loss rework operator unavailiabilty