Session 6-14 Flashcards
What is product/service design?
Product/service design is the process of defining the specification of products and/or serv- ices in order to fulfil a specific market need
What is product/service design?
Product/service design is the process of defining the specification of products and/or serv- ices in order to fulfil a specific market need
With which two variables can the quality of design be judged?
Conformance (no errors in the design)
Specification (the effectiveness of the design in achieving its market requirements)
Name four advantages of fast design processes
Early market launch
Starting design late
Frequent market stimulation
More opportunities for innovation
Design cost factors are split up into three categories - which are they?
The cost of buying the inputs to the process
The cost of providing the labour in the process
The other general overhead costs of running the process
Design concepts are screened according to which three criteria?
Feasibility - doable?
Acceptability - satisfactory?
Vulnerability - risky?
Name four ways of decreasing inherent design variability/complexity
Standardization
Commonality
Modularization
Mass customization
Name the most common method for evaluating and improving preliminary design
Quality function deployment (QFD)
Which diagram can be applied to evaluate design capacity?
The diagram with throughput time and design resource utilization (and variability as curves)
What does CAD stand for?
Computer-aided design
Name four factors that can significantly reduce time-to-market for a product or service
● bringing ‘product/service’ and ‘process’ design together as one integrated process
● overlapping (simultaneous) design of the stages in the combined design process
● early deployment of strategic decision making and resolution of design conflict
● an organizational structure that reflects the nature of the design process
Define supply chain management
Supply chain management is the management of relationships and flows between operations and processes.
What is the difference between lean and agile supply chains?
Lean (or efficient) supply chains are appropriate for stable ‘functional’ products and services
Agile (or responsive) supply chains are more appropriate for less predictable innovative products and services
Which are the three main activities of managing supply side relationships?
Selecting appropriate suppliers
Planning and controlling ongoing supply activity
Supplier development
What does the “bullwhip effect” mean?
It means that relatively small changes at the demand end of the chain increasingly amplify into large disturbances as they move upstream
What does SCM stand for?
Supply chain management
How is quality of a supply chain different from quality of a process?
The supply chain has several links, and so even small problems can be compounded throughout
Which are the two measures for supply chain speed?
Time to serving customers
Time for one unit to pass through the chain
What does SCOR stand for?
Supply Chain Operations Reference
Name some pros and cons of short-term supplier relationships
+ alternatives, flexibility, innovation
- no loyalty/trust, supplier switching costs
Name some pros of long-term supplier relationships
+ predictability, learning, simplicity, expectations, common incentives, transparency
Name four basic capabilities by which to evaluate suppliers
● Technical capability
● Operations capability
● Financial capability
● Managerial capability
What is necessary for SLAs to work?
For service-level agreements to work, they must be treated as working documents that establish the details of ongoing relationships in the light of experience
Name four ways of controlling supply chain dynamics (i.e. mitigating the bullwhip effect)
Share information throughout the supply chain
Align all the channels of information and supply (adjustment of scheduling, material movements, stock lev- els, pricing and other sales strategies)
Increase operational efficiency throughout the chain (increasing predictability)
Improve forecasts
Define capacity management
Capacity management is the activity of coping with mismatches between demand and the ability to supply demand
Capacity are described as being dependent on which three things?
The activity mix
The duration over which output is required
Changes in the actual specification of the output
The level of base capacity depends on which three things?
The relative importance of the operation’s performance objectives
The perishability of the operation’s outputs
The degree of variability in demand or supply
High service levels, high perishability of an operation’s outputs and a high degree of variability in either demand or supply all indicate…
…a relatively high level of base capacity
Describe the three pure methods for capacity adjustment
Level capacity plan:
No change in capacity, requires that the operation absorbs demand–capacity mismatches, usually through under- or over-utilization of its resources, or the use of inventory.
Chase demand plan:
Changing capacity through such methods as overtime, varying the size of the work force, sub-contracting, etc.
Manage demand plan:
Attempts to change demand through pricing or promotion methods, or changing product or service mix to reduce fluctuations in activity levels.
Define capacity
Capacity is the output that an operation can deliver, or its “ability to supply”, in a defined unit of time.
What does OEE stand for?
Overall equipment effectiveness
How is the OEE calculated?
Availability rate * Performance rate * Quality rate
I.e: (total/available) * (net/total) * (valuable*net)
These reflect three nested levels of operating time
Name the two fundamental options in capacity management
Increasing market knowledge (i.e. predictability)
Increasing operations flexibility
How can capacity planning be optimized over time?
The learning from managing capacity in practice should be captured and used to refine both demand forecasting and capacity planning.
How can capacity planning be optimized over time?
The learning from managing capacity in practice should be captured and used to refine both demand forecasting and capacity planning.
With which two variables can the quality of design be judged?
Conformance (no errors in the design)
Specification (the effectiveness of the design in achieving its market requirements)
Name four advantages of fast design processes
Early market launch
Starting design late
Frequent market stimulation
More opportunities for innovation
Design cost factors are split up into three categories - which are they?
The cost of buying the inputs to the process
The cost of providing the labour in the process
The other general overhead costs of running the process
Design concepts are screened according to which three criteria?
Feasibility - doable?
Acceptability - satisfactory?
Vulnerability - risky?
Name four ways of decreasing inherent design variability/complexity
Standardization
Commonality
Modularization
Mass customization
Name the most common method for evaluating and improving preliminary design
Quality function deployment (QFD)
Which diagram can be applied to evaluate design capacity?
The diagram with throughput time and design resource utilization (and variability as curves)
What does CAD stand for?
Computer-aided design
Name four factors that can significantly reduce time-to-market for a product or service
● bringing ‘product/service’ and ‘process’ design together as one integrated process
● overlapping (simultaneous) design of the stages in the combined design process
● early deployment of strategic decision making and resolution of design conflict
● an organizational structure that reflects the nature of the design process
Define supply chain management
Supply chain management is the management of relationships and flows between operations and processes.
What is the difference between lean and agile supply chains?
Lean (or efficient) supply chains are appropriate for stable ‘functional’ products and services
Agile (or responsive) supply chains are more appropriate for less predictable innovative products and services
Which are the three main activities of managing supply side relationships?
Selecting appropriate suppliers
Planning and controlling ongoing supply activity
Supplier development
What does the “bullwhip effect” mean?
It means that relatively small changes at the demand end of the chain increasingly amplify into large disturbances as they move upstream
What does SCM stand for?
Supply chain management
How is quality of a supply chain different from quality of a process?
The supply chain has several links, and so even small problems can be compounded throughout
Which are the two measures for supply chain speed?
Time to serving customers
Time for one unit to pass through the chain
Name four questions that identify the degree of difficulty in controlling operations
● Is there consensus over what the operation’s objectives should be?
● How well can the output from the operation be measured?
● Are the effects of interventions into the operation predictable?
● Are the operation’s activities largely repetitive?
Name some pros and cons of short-term supplier relationships
+ alternatives, flexibility, innovation
- no loyalty/trust, supplier switching costs
Name some pros of long-term supplier relationships
+ predictability, learning, simplicity, expectations, common incentives, transparency
Name four basic capabilities by which to evaluate suppliers
● Technical capability
● Operations capability
● Financial capability
● Managerial capability
What is necessary for SLAs to work?
For service-level agreements to work, they must be treated as working documents that establish the details of ongoing relationships in the light of experience
Name four ways of controlling supply chain dynamics (i.e. mitigating the bullwhip effect)
Share information throughout the supply chain
Align all the channels of information and supply (adjustment of scheduling, material movements, stock lev- els, pricing and other sales strategies)
Increase operational efficiency throughout the chain (increasing predictability)
Improve forecasts
Define capacity management
Capacity management is the activity of coping with mismatches between demand and the ability to supply demand
Capacity are described as being dependent on which three things?
The activity mix
The duration over which output is required
Changes in the actual specification of the output
The level of base capacity depends on which three things?
The relative importance of the operation’s performance objectives
The perishability of the operation’s outputs
The degree of variability in demand or supply
High service levels, high perishability of an operation’s outputs and a high degree of variability in either demand or supply all indicate…
…a relatively high level of base capacity
Describe the three pure methods for capacity adjustment
Level capacity plan:
No change in capacity, requires that the operation absorbs demand–capacity mismatches, usually through under- or over-utilization of its resources, or the use of inventory.
Chase demand plan:
Changing capacity through such methods as overtime, varying the size of the work force, sub-contracting, etc.
Manage demand plan:
Attempts to change demand through pricing or promotion methods, or changing product or service mix to reduce fluctuations in activity levels.
What is “set-up time”?
The time taken to change the process over from one activity to the next.
What does OEE stand for?
Overall equipment effectiveness
How is the OEE calculated?
Availability rate * Performance rate * Quality rate
I.e: (total/available) * (net/total) * (valuable*net)
These reflect three nested levels of operating time
Name the two fundamental options in capacity management
Increasing market knowledge (i.e. predictability)
Increasing operations flexibility
What is yield management?
A collection of methods, exemplified in its use by the airline industry, that can be used to ensure that an operation maximizes its potential to generate profit
How can capacity planning be optimized over time?
The learning from managing capacity in practice should be captured and used to refine both demand forecasting and capacity planning.
Define inventory management
Inventory management is the activity of planning and controlling accumulations of transformed resources as they move through supply networks, operations and processes
What is the underlying objective of inventory management?
To minimize inventory while maintaining acceptable customer service
In managing the system, three types of decision are needed. Which are they?
● How much to order
● When to order
● How to control the system
What is the ISO 9000
The ISO 9000 series is a set of international standards that establishes requirements for companies’ quality management systems. It is being used worldwide to provide a framework for quality assurance.
What does EBQ stand for?
Economic batch quantity (model)
How is expected profit be calculated, when ordering inventory?
Profit at a given level of sales * probability of the level of profits
How is periodic review method different from the continuous method?
Rather than ordering at a predetermined reorder level, the periodic approach orders at a fixed and regular time interval.
What is resource planning and control?
Resource planning and control is concerned with managing the ongoing allocation of resources and activities to ensure that the operation’s processes are both efficient and reflect customer demand for products and services
What is the difference between planning and control?
Formally, planning determines what is intended to happen at some time in the future, while control is the process of coping when things do not happen as intended.
When is it most important to manage the customers expectations?
The managing of customer expectations is particularly important in the early stages of the experience
What does ERP stand for?
Enterprise Resource Planning
Name five generally accepted benefits of ERP
● Greater visibility of what is happening in all parts of the business.
● Forcing the business process-based changes that potentially make all parts of the business more efficient.
● Improved control of operations that encourages continuous improvement (albeit
within the confines of the common process structures).
● More sophisticated communication with customers, suppliers and other business partners, often giving more accurate and timely information.
● Integrating whole supply chains including suppliers’ suppliers and customers’ customers.
What is “loading”?
Loading is the amount of work that is allocated to a process stage or the whole process
Which three techniques are mentioned for facilitating improvement?
- Pareto diagrams
- Cause-effect diagrams
- Why-why analysis
What is “sequencing”?
Determining the order or sequence in which things will be worked on
Give six examples of variables to base sequencing on
Customer priority
Due date (DD)
Last in first out (LIFO)
First in first out (FIFO)
Longest operation time first (LOT)
Shortest operation time first (SOT)
What is the Theory of Constraints?
A method that focuses scheduling effort on the bottleneck parts of the operation
Name four questions that identify the degree of difficulty in controlling operations
● Is there consensus over what the operation’s objectives should be?
● How well can the output from the operation be measured?
● Are the effects of interventions into the operation predictable?
● Are the operation’s activities largely repetitive?
What is lean synchronization?
Lean synchronization is the aim of achieving a flow of products and services that always delivers exactly what customers want, in exact quantities, exactly when needed, exactly where required, and at the lowest possible cost.
What is the central idea of lean synchronization?
If items flow smoothly, uninterrupted by delays in inventories, not only is throughput time reduced, but the negative effects of in-process inventory are avoided
Name three barriers to lean synchronization
Failure to eliminate waste in all parts of the operation
Failure to involve all the people within the operation in the shared task of smoothing flow and eliminating waste
Failure to adopt continuous improvement principles
Why, according to lean methodology, can “system exposure” be good?
Exposure of the system to problems can both make them more evident and change the ‘motivation structure’ of the whole sys- tem towards solving the problems
How can inventory be seen as “obscuring”?
It insulates divisions and masks inefficiencies by acting as a buffer
Name four sources of waste
Irregular flow
Inexact supply
Inflexible response
Variability
How can a flow be streamlined, from a process design perspective?
By moving it down the “natural diagonal, i.e. from fixed position layout towards a product layout
Name three measures one can take to streamline flow
Examine the process flow shape
Ensure visibility
Use small-scale simple process technology
Is lean typically associated with “push” or “pull” control?
Pull control
What is a kanban?
A tool for operationalizing “pull” control. Kanban is the Japanese for card or signal, and it controls the transfer of items between the stages of an operation.
What is “set-up time”?
The time taken to change the process over from one activity to the next.
What is leveled scheduling?
Leveled scheduling (or heijunka) means keeping the mix and volume of flow between stages even over time. For example, instead of producing 500 parts in one batch, which would cover the needs for the next three months, leveled scheduling would require the process to make only one piece per hour regularly.
Name three ways of applying leveled scheduling
- Level regular internal schedules
- Level delivery schedules (reduces inventory)
- Adopt mixed modeling (maximum batch granularity)
On which levels can lean synchronization be applied?
On all three levels - process, operation and supply network
What is the difference between lean and agile?
Lean equals synchronized, regular flow and low inventory, and agile equals responsiveness, flexibility and fast delivery.
This is a simplification, but it more or less captures the distinction between the two.
What is quality?
Quality is consistent conformance to customers’ expectations
What does TQM stand for?
Total quality management
TQM can be viewed as a logical extension of the way in which quality-related practice has progressed
What is the “internal customer” concept?
The idea that errors in the service provided within an organization will eventually affect the product or service that reaches the external customer and that, therefore, one of the best ways of satisfying external customers is to satisfy internal customers
Name the four quality gaps
Gap 1: The customer’s specification–operation’s specification gap
Gap 2: The concept–specification gap
Gap 3: The quality specification–actual quality gap
Gap 4: The actual quality–communicated image gap
What is the ISO 9000
The ISO 9000 series is a set of international standards that establishes requirements for companies’ quality management systems. It is being used worldwide to provide a framework for quality assurance.
Define improvement
Improvement is the activity of closing the gap between the current and the desired performance of an operation or process.
Which are the two steps in assessing the gap between actual and desired performance?
- assessing the operation’s and each process’s current performance
- deciding on an appropriate level of target performance
Which are the “two improvement paths”?
Breakthrough improvement
Continuous improvement
What is “the ultimate objective of operations and process management”?
Performance improvement
Which are the three generic issues of performance measurement?
● What factors to include as performance measures?
● Which are the most important performance measures?
● What detailed measures to use?
Name four types of performance targets
● Historically based targets
● Strategic targets
● External performance-based targets
● Absolute performance targets
Name six types of benchmarking
● Internal benchmarking ● External benchmarking ● Non-competitive benchmarking ● Competitive benchmarking ● Performance benchmarking ● Practice benchmarking
What is another name for “breakthrough improvement”?
Innovation-based improvement
What is the core principle of six sigma?
Process variability aversion
Which three techniques are mentioned for facilitating improvement?
- Pareto diagrams
- Cause-effect diagrams
- Why-why analysis
Define improvement
Improvement is the activity of closing the gap between the current and the desired performance of an operation or process.
Which are the two steps in assessing the gap between actual and desired performance?
- assessing the operation’s and each process’s current performance
- deciding on an appropriate level of target performance
Which are the “two improvement paths”?
Breakthrough improvement
Continuous improvement
What is “the ultimate objective of operations and process management”?
Performance improvement
Which are the three generic issues of performance measurement?
● What factors to include as performance measures?
● Which are the most important performance measures?
● What detailed measures to use?
Name four types of performance targets
● Historically based targets
● Strategic targets
● External performance-based targets
● Absolute performance targets
Name six types of benchmarking
● Internal benchmarking ● External benchmarking ● Non-competitive benchmarking ● Competitive benchmarking ● Performance benchmarking ● Practice benchmarking
What is another name for “breakthrough improvement”?
Innovation-based improvement
What is the core principle of six sigma?
Process variability aversion
Which three techniques are mentioned for facilitating improvement?
- Pareto diagrams
- Cause-effect diagrams
- Why-why analysis
Define risk
Risk is the potential for unwanted negative consequences from events.
Define resilience
Resilience is the ability to prevent, withstand and recover from those events
Name four ways of preventing failures
Designing out fail points
Redundancy
Fail-safeing (poka-yokes)
Maintenance
Name five ways of mitigating failure
- Mitigation planning (standard procedures)
- Economic mitigation (insurance)
- Containment (spatial and temporal)
- Loss reduction
- Substitution
