technical exam flashcards
What are the different mental models of sustainability?
- Efficiency
- Inter shift shut down focus: no production no energy use
- Cement can be 20% more efficient with same costs
- 10,000 litres vs 60 for a pair of jeans
- Value
- Fast fashion: use a small interchangeable wardrobe
- Fire hose handbag
- Technology
- System
- AB sugar
- Mallorca
What is eco efficiency?
Simply do more with less
Factories making the same product can show large variation in operational efficiencies.
Outline the factors which may influence variations in resource efficiency.
Suggest ways in which resource efficiencies may be improved. Use specific examples, from module presentations or from your own experience, to illustrate your answer.
Improvement hierarchy:
-
Prevention
- eliminate unnecessary equipment/processes
- switch off equipment when not in use
- e.g. use gravity feeds, standby mode
-
Waste reduction
- good maintenance and repair
- sort/treat waste to optimise its value
- optimise layout
- e.g. fix leaks, insulate, separate waste, keep equipment clean
-
Resource use reduction
- optimise production schedule and start up
- match supply and demand
- e.g. lower compressed air pressure, use highest temp for cold storage
-
Reuse of waste as a resource
- look for compatible waste demand
- understand reuse opportunities
- e.g. reuse cutting fluid, recover waste heat and water
-
Substitution
- replace resource (renewable and non toxic)
- change way function is achieved
- e.g. replace cutting tools, install optimum motors, replace obsolete tech
What is the circular economy?
Describe the waste and energy hierarchy and how these feed into the improvement hierarchy
Waste hierarchy:
- Avoid
- Reduce
- Reuse/recycle
- Treatment
- Energy recover
- Landfill
Energy hierarchy:
- Minimise demand
- Energy efficiency
- Renewable source
- Low carbon technology
- Carbon offsetting
- Conventional energy
Improvement:
- Prevent
- Reduce waste
- Reduce resource use
- Reuse waste as a resource
- Substitute, upgrade, replace
What is sustainable development? Define the methodology.
Development that meets the needs of the present without compromising the ability of future generations to meet their needs.
1a. Define objectives, size, time and geographical scale
1b. Identify key design issues and appropriate metrics
* Metrics: e.g. energy generation per unit mass
2. Identify stakeholders and their concerns/power
3. Fact finding: material efficient design, resource efficient design
4. Synthesis: assess data and analyse against three Ps (planet, profit, people)
5. Reflection: is this sustainable
What is an LCA. What are the issues associated?
LCA: life cycle analysis
Issues
- It is time consuming, expensive and subjective.
- Too late in the design process. Detail only in retrospect.
- Need a simple approach. Choose a single metric e.g. carbon dioxide generated or energy.
How is a CES eco audit carried out?
Choose the life phase which dominates:
- materials, manufacture, transport, use or disposal
Explain the concept of value uncaptured?
Value captured: the benefits delivered to stakeholders either or not related to monetary profit, e.g. improved energy efficiency
Value uncaptured:
-
Value missed: value inadequately captured or lost,
- e.g. not using specialist knowledge, inefficient use of data
-
Value destroyed: negative outcomes of business,
- e.g. pollution, bad working conditions
-
Value surplus: redundant value that is larger than requirements
- e.g. over capacity of labour, excess functionality
-
Value absent: value which is required but has not been created
- e.g. lack of skills, lack of warehouse space, unmet customer needs
Value opportunity: the new opportunities of additional value creation through new activities and relationships, e.g. the opportunity to utilise identified waste
Stakeholders must be considered:
- Investors, environment, society, employees, suppliers, customers
The concept of value uncaptured is used to understand failed value exchanges among multiple stakeholders across a business network to uncover new value opportunities.
Explain the different waste streams that are utilised and sold in AB sugar
- Molasses and Bagasse made into:
- Alcohol
- Biofuel
- Furfural: fungicide/weed killer
- Betaine: used for young salmons
- Pulp and lime made into:
- Salts
- Raffinate and Vinasse: animal feed
- Water, effluent and soil made into:
- Algae and topsoil
- CHP, heat and CO2 made into:
- Power generation
- Tomatoes/marijuana
- Biogas
Explain riversimple’s 7 point strategy
- Network electric car
- Sale of service not cars
- Sale of service upstream
- City by city strategy
- Distributed manufacturing
- Open source designs
- Shared ownership
Could we use a single polymer for cheese production?
Carbon footprint is minimised by using multi-layer film
Best single polymer is PVDC – but it’s difficult to recycle and expensive
Best easily recyclable polymer is PET.
What happens to polymers at end of life?
Disposal:
- Mechanical recycling
- Sort, shred, clean, melt/reprocess (extrusion, pressing)
- Primary Recycling (closed-loop):
- Standard practice in factories e.g. Out-of-spec low-density polythene (LDPE) injection mouldings are pelletised and immediately returned to injection moulder input
- Secondary Recycling (post-consumer):
- Involves downcycling e.g. fleeces and other clothing from PET bottles, (Patagonia) household waste bags from LDPE
- Sorting is important. Commonly used automated methods:
- near-infra-red spectroscopy; optical recognition; electrostatics; X-ray fluorescence; density methods including flotation; melting point
- Composting
- Feedstock/chemical recycling
- Polymers broken down into constituent monomers which can be used in refineries or in petrochemical production
- Plants are very large and costly; processing energy is high
- Useful for specialist applications (e.g. process for recycling tetrapaks)
- Other (grinding for filler)
- Energy recovery
- Landfill
What are the main elements in a business model?
Value proposiiton
Value creation
Value capture
Should you use paper and cardboard or a polymer for packaging?
Paper & card have greater impact than plastic.
Environmental footprint of paper/card is high:
Manufacturing operations very energy-intensive (turning trees into chips, processing; needs 60% more energy than plastics) and generate much more toxic waste than plastics (water pollutants 50x higher; air pollutants 70% higher).
End-of-life: plastics recycling requires only 10% energy of paper/card recycling.
Conclusion: All single-use disposable packaging is environmentally undesirable.
Expectation: Transition to re-usable plastic crates, charging a deposit.
Give examples of sustainable business models
Formula E
Dutjahn Sandalwood Oils
Elvis & Kresse
Explain the steps of the value mapping process
Steps 1, 2 and 3 – Setting the scene
- Decide the unit of analysis (product/service, business unit, company or an industry)
- Add or modify any missing stakeholders
- Identify the purpose of the unit of analysis
Steps 4, 5 and 6 –
- Map the value (follow the spiral, clockwise) current value captured for each stakeholder
- Value uncaptured, i.e. value missed / destroyed / surplus / absence for each stakeholder
- Stakeholder tensions may arise
Step 7 – Generate value opportunities for sustainability
- Eliminate value destroyed and absence - reducing the value uncaptured, turning it into positive value
- Utilise value missed and surplus – reusing the value uncaptured, increasing value in the business network
- Look for value opportunities – extending the value captured, shifting to higher value added
Define microplastics and their issues for marine life
Defined as any piece of plastic less than 5mm in length, but often less than 0.5mm (small enough to evade standard filtration systems)
Origins include:
synthetic fibres (from washing clothing); microbeads from cosmetics and personal care products; partially broken-down waste plastics
Issues:
Larger bits:
- Suffocation, entanglement.
- Sharp edges particularly when ingested
Smaller fragments (sub-millimeter):
- Mistaken for food so can cause starvation
- Unexpected effect: mimic oestrogen, disrupts reproductive ability in fish and causes infertility
Additives from processing and product requirements are released from polymer waste (and during a product’s useful life…)
Additives leach out and contaminate fluids: can mimic oestrogen and disrupt reproductive ability in animals and fish so impacting food supplies. But can also cause hormone-related problems in consumers (including humans)
What are the functions of primary packaging?
- Mechanical protection:
- damage reduction (impact, surface damage from handling)
- Acts as barrier layer:
- keeps oxygen out (vacuum packs); keeps protective atmospheres in (typically nitrogen or carbon dioxide); prevents water loss
- Increases product shelf life:
- reduces food wastage can reduce amount of processing and additives increases acceptable length of supply chain (global food production)
- Hygiene; environmental barrier, keeps smells in
- Tamper evidence:
- Provides assurance that the product is intact and is as produced by the manufacturer (right product, right quality, right quantity)
- Information, advertising and legislation
What is the production footprint like compared to packaging footprint?
Packaging footprint tiny compared with food production footprint. Recycling saves a little energy, but there are other reasons for recycling
Why are polymers so difficult to recycle?
- Quality of input material is critically important to value of output
- Polymers cannot be refined or purified: everything that goes into the mechanical recycling process is incorporated into the output recycled material
- Difficult to analyse polymers to know exactly what is in them
Ideal input:
- single polymer:
- polymers cannot be defined by simple chemical formula: properties depend on chain length, chain configuration (branched or linear chain, position of side groups)
- clean
- Not mixed with other materials (e.g. metal, paper).
- Not contaminated by food, or by anything else (e.g. bottle used for bleach)
- Polymers contain small amounts of many different additives to improve processing to stabilise against environment in service: includes UV, fire resistance
- uncoloured
How can polymer recycling be increased?
- Government subsidies
- Legislation forcing increased recycling – e.g. required minimum recycled content in products
- Oil prices rise, so re-processed polymer becomes more valuable
- Design for recyclability:
- Narrower range of polymers
- Think about joining methods
- Use sub-optimised material (but increases weight of article, uses more material)
- No coloured plastics
- Advances in recycling technology to produce higher-grade higher-value material
- Improved sorting
- Better tolerance of impurities in mechanically recycled plastics
e. g. Using calcium carbonate to react with chlorine from PVC - Processing of mixed plastics
e. g. Research into compatibilising mixed polymers - More chemical recycling
What should we do about plastic packaging?
Knee-jerk reactions:
- Get rid of plastic packaging
- Ban all single-use plastic
Superficially plausible but problematic:
- Use bio-based, biodegradable polymers
More considered reactions:
- Stop using un-necessary plastics (and packaging)
- Packaging directive: eliminate all ‘avoidable plastics waste’ by 2042
- More packaging re-use
- Returnable bottles, re-fillable containers
- Barriers: logistics, infrastructures
- standardised designs: needs support from marketing people
- safety, hygiene, product assurance and quality control
- consumer preferences
- Materials choices: all packaging should be recyclable
- Increase recycling: build UK recycling capacity
- Stop uncontrolled exports
- More energy from waste but only as a temporary measure
Correctly used and disposed, plastic reduces food waste; carbon footprint of packaging is tiny compared with food production
Define what an LCA might aim to achieve.
LCA is aimed at providing a measure of the total environmental impact of the kettle, from material production, manufacture, use and disposal. It is particularly useful for comparing the impacts of products, as much like-for-like as possible. For a kettle, one might compare different materials or production technologies.
Compare
LCA with Eco Audit for a kettle
LCA (life cycle analysis) provides outputs under headings of
- resource consumption (including materials, energy, water),
- emissions (including various gases, particulates),
- and impact assessment (including ozone depletion, global warming, acidification, human toxicity).
These different factors cannot readily be combined, so are usually left as separate datapoints.
There is currently no single method for conducting an LCA, but ISO14040 is an international standard which sets out a framework.
- It is a systematic way of analysing the impact of an activity or producing a product.
- It considers all phases of the lifecycle.
- It is useful for comparing the impacts of comparable activities (e.g. two ways of making a product).
LCA is expensive, time-consuming, does have subjective elements, and is retrospective (normally too late to influence design).
For the kettle, the outputs will include all those noted above (maybe in subcategories as well). It may be noted that most of the impact comes from the use phase.
Eco-audit provides a single measure of impact, which may be energy or CO2.
This is generated under the headings of
- Material, Manufacture, Transport, Use and Disposal and usually presented as a bar chart.
In addition a summary is generated showing detailed breakdown, life phase energies, life carbon footprints.
- Eco-audit provides a quick and approximate measure of one aspect of environmental impact.
- Does not take full account of other eco factors which are included in full LCA.
The following factors may be noted:
- gaseous emissions (e.g. SOX, NOX), particulates, ozone depletion potential, acidification potential, human toxicity potential.
- Water use is another big factor which may increasingly become a show-stopper.
It identifies the dominant life phase so allowing a targeted approach to reducing environmental impact. It is done early enough in the design process to influence design.
For the kettle, the use phase dominates, so the biggest improvement may be made by improving thermal insulation of the kettle.
Outline the outputs that will be generated from an LCA analysis. What are the difficulties with using these outputs?
Outputs can be generated under nine environmental themes (students were not expected to remember details for these, but they are stated here for completeness):
- Abiotic depletion potential;
- Energy depletion potential;
- Global warming potential;
- Ozone depletion potential;
- aquatic/terrestrial ecotoxicity;
- acidification potential;
- human toxicity;
- photochemical oxidant creation;
- nitrification potential.
All have different metrics, so combining them is not straightforward. Most studies choose only some of the headings, and tend to keep the figures separate under them. Assessment of impact therefore requires some judgment, such as which metrics are most important.
The choice of system boundaries is crucially important in any LCA. There is some flexibility about how this is done, so it is important that similar system boundary choices have been made when making comparisons between different LCAs. Similar care should be taken over allocation and choice of functional unit.
Discuss the impacts on the lifecycle (positive and negative) of including a barrier function in packaging.
Environmental impacts:
- Product life increased by orders of magnitude, so (simplistically) reduces wastage.
- But the lengthening of the supply chain promotes globalisation of food production, with both positive and negative environmental consequences (factors include transport, agricultural policies and impacts).
- The complexity of packaging material may in some cases be increased if a barrier function is included (e.g. as an additional polymer layer in cheese packaging, or with metallised films), reducing recyclability.
- Considering packaged food as a whole, the environmental impact of the food production hugely dominates the total impact.
- So the impact of the packaging itself is normally considerably less than 5% of the total impact, and any end-of-life considerations are (in terms of energy or carbon footprint) negligible.
What is a system boundary? Discuss what factors should be considered when defining a system boundary for environmental analysis of plastic film packaging for cheese produced and consumed in the UK.
- A system boundary is used to define what should be included for a particular environmental analysis. For this case, the following factors should be considered:
Packaging:
- Material production, manufacturing process, transport between different stages. End-of-life disposal.
Supply chain issues:
- The weight and volume of the packaging and how it affects the density with which the product can be packed for transport.
The analysis is of the packaging, so the production of the product being packaged (cheese) is outside the boundary. Nevertheless, the effectiveness of the packaging has implications for the shelf-life (lifetime) of the product.
Briefly describe how an eco-audit of a plastic film packaging for cheese would be carried out.
What are the outputs of such an analysis?
What assumptions might you expect to make in carrying out the assessment?
How would you use the analysis to propose reduction in the environmental impact of the packaging?
Identify any additional factors relevant to environmental impact assessment which should be considered that are not included in this analysis.
User inputs include
- Bill of materials,
- shaping processes,
- transport needs,
- duty cycle.
The Eco database is used to generate
- embodied energies,
- process energies,
- CO2 footprints,
- unit transport energies etc.
The eco-audit can be facilitated using CES. Assumptions may typically include details of the materials used.
Outputs include a bar-chart showing impact of the four lifecycle phases: material, manufacture, transport and use, plus end-of-life.
The analysis should be used to identify the phase with the greatest impact, and to focus on this for action.
Additional factors:
- In assessing the wider environmental consequences of food packaging, the domination of the food production aspect should be remembered.
- Not specifically mentioned are the factors associated with the function of food packaging in reducing food wastage, including the barrier function described under (a) (ii).
Briefly outline how LCA and Eco-Audit should be carried out. What information is required?
LCA:
- Define goal and scope of study.
- Define
- the functions of the product system,
- functional unit,
- boundaries and
- product system.
- Define methodology, assumptions and limitations.
- Perform inventory analysis.
- Assign environmental impacts of product system.
- Interpret results.
Eco-audit:
User inputs include
- Bill of materials,
- shaping processes,
- transport needs,
- duty cycle.
The Eco database is used to generate embodied energies, process energies, CO2 footprints, unit transport energies etc.
With reference to the use of LCA for the production of biodiesel, outline the meaning and significance of the terms system boundary and allocation.
The system boundary defines what is included in the LCA. Although the protocol is documented, it is subject to interpretation. For biodiesel, there will be variation in the extent to which growing of the crops is included, and how the agricultural systems are treated.
Allocation: Any process involves many systems, which are not independent. Allocation is the appropriate distribution of responsibility for resource consumption, emissions and wastes from processes.
Explain how you would use an Eco-Audit to make recommendations on how to reduce the environmental impact of a refrigerator. Give a prioritised list of proposals to achieve this, justifying your answer. What assumptions are made in performing the analysis?
- The eco-audit will generate a bar chart in which the dominant phase is the duty cycle, followed by the material.
- Increasing the operating efficiency of the fridge to reduce energy consumption will be the main recommendation.
- This will be achieved primarily by improving thermal insulation, though note that this will also increase the impact of the Materials phase.
- There may be scope within the design of the fridge for reducing the heat transfer when the fridge door is open – e.g. compartments in the fridge to retain the cold.
- Optimising the efficiency of the cooling mechanism is something else to be done – but there may not be much improvement possible there.
- There may be scope for encouraging good behaviour by incorporating alarms that sound if the fridge door is left open.
What is the difference between risk and uncertainty?
Risk
Present when managers know the possible outcomes of a particular course of action and can assign probabilities to them
Uncertainty
The future is unknown, and probabilities cannot be given for outcomes
What is the expected utility theory?
- Actual decisions made depend on the willingness to accept risk
- Expected utility theory allows for different attitudes towards risk-taking in decision making
- Managers are assumed to derive utility from earning profits
- Managers make risky decisions in a way that maximises expected utility of the profit outcomes
- Utility function measures utility associated with a particular level of profit
- Index to measure level of utility received for a given amount of earned profit
- Managers attitude toward risk
- Determined by the manager’s marginal utility of profit
- Marginal utility (slope of utility curve) determines attitude towards risk
How can you tell if someone is risk averse from the utility curve?
You are risk averse with respect to a gamble if you prefer the expected value of the gamble with certainty to the gamble itself.
You are risk averse if the expected value is greater than the certainty equivalent.
Explain the flaws in the utility model by comparing it with the prospect model
Explain the components of a simple queuing system. Give examples
The calling population
- The population which customers/jobs originate
- The size can be finite or infinite (the latter is most common)
- Can be homogeneous (only one type of customer/job) or heterogeneous
The arrival process
- Determines how, when and where customer/jobs arrive to system
- The important characteristic is the customers/jobs inter arrival times
- Correct specification of the arrival process requires data collection of interarrival times and statistical analysis
The queue configuration
- Specifies the number of queues
- Their location
- Effect on customer behaviour (balking or reneging)
- The max size the queue can hold (infinite/finite capacity)
Service mechanism
- Can involve one or several service facilities with one or several parallel service channelsThe service provided by a server is characterised by its service time
- Typically involves data gathering and statistical analysis
- Most analytical queuing models are based on the assumption of exponentially distributed service times
The queue discipline
- Specifies the order by which jobs in the queue are served
- Most common principle is FIFO
- Other rules are: LIFO, SPIT, EDD
- Can entail prioritisation based on customer type
Examples of world queuing systems:
Commercial queuing systems
- Commercial organisations serving external customers
- E.g. dentist, bank, ATM, petrol stations, plumber, garage …
Transportation service systems
- Vehicles are customers or servers
- E.g. vehicles waiting at toll stations and traffic lights, trucks or ships waiting to be loaded, taxi cabs, fire engines, lifts and buses
Business – internal service systems
- Customers receiving service are internal to the organisation providing the service
- E.g. inspection stations, conveyor belts, computer support …
Social service systems
- E.g. ER at a hospital, waiting lists for organ transplants, waiting lists for primary school places
What are the advantages of multiple line queues vs single line queues
Multiple line vs single
Multiple:
- Service provided can be differentiated
- Labour specialisation possible
- Customer has more flexibility
- Balking behaviour may be deterred: several medium length queues are less intimidating
Single
- Guarantees fairness
- No customer anxiety regarding choice of queue
- Most efficient set up for minimising time in the queue
- Jockeying (queue switching) is avoided
Explain the importance of variability in queuing
If there were no variability, there would be no need for queues to occur
Statistically, the usual measure for indicating the spread of a distribution is its standard deviation sigma.
However, variation does not only depend on standard deviation.
To normalise standard deviation, it is divided by the mean of its distribution. The measure it called the variation of the distribution.
Explain Little’s Law
What is the probability that there is n jobs in the system in a queue in the M/M/1 model.
In the M/M/1 model what is:
Expected number of customers in the system
Expected time a job spends in the system
Expected number of customers in queue
Expected time a job spends in the queue
What are the different shortage cost situations and how do you analyse design costs trade offs?
- External customers arrive to the system
- Profit organizations
- The shortage cost is primarily related to lost revenues “Bad Will”
- Non profit
- The shortage cost is related to a societal cost
- Internal customers arrive to the system
* The shortage cost is related to productivity loss and associated profit loss
Usually it is easier to estimate the shortage costs in situation 2 than in situation 1.
What is the common terminology for linear programming?
What are the assumptions in linear programming?
- Proportionality
- contribution of each activity Xj to the value of the objective function Z is proportional to the level of the activity Xj as represented by the CjXj term in the objective function. Similarly, the contribution of each activity to the left-hand side of each functional constraint is proportional to the level of the activity Xj, as represented by the AijXj term in the constraint.
- Additivity
- Every function in a linear programming model (whether the objective function or the function on the left-hand side of a functional constraint) is the sum of the individual contributions of the respective activities.
- Divisibility
- Decision variables in a linear programming model are allowed to take any values, including non-integer values, that satisfy the functional and non-negativity constraints.
- Since each decision variable represents the level of some activity, it is assumed that the activities can be run at fractional levels.
- Certainty
- The value assigned to each parameter of a linear programming model is assumed to be a known constant.
Explain how to carry out project planning and control
Project planning and control
Stage 1: Understand the project environment
- Geo-social environment
- Geography and national culture
- Econo-political environment
- Economy and government
- Business environment
- Customers, competitors and suppliers
- Internal environment
- Company strategy, resources and other projects
Stage 2: Project definition
- Aim, strategy and scope
Stage 3: Project planning
- Objectives: what is the goal and estimate of cost/ time
- Project scope: how to approach, feasibility, major tasks
- Contract requirements: reporting and performance, responsibilities
- Schedules: activities, tasks, timelines, milestones
- Resources: budget and budget control
- Personnel
- Control: monitoring and evaluating progress and performance
- Risk analysis
- Identify activities
- Estimate the times and resources for activities
- Identify relationship and dependencies between activities
- Identify time and resource schedule constraints
- Fix the schedule for time and resources
Stage 4: Technical execution
Stage 5: Project control
- Earned value analysis
- Probabilistic analysis: program evaluation and review technique
- Most likely time (m), optimistic time (a), pessimistic time (b)
- Mean = a + 4m + b / 6
- Variance = (b – a / 6) ^2
- Use expected times to identify critical path, and compute slack and project time
- Total project variance = Sum of variance of critical path activities
- Project variance is a measure of the risk involved in the project
- Crashing project networks
- Process of reducing time spans on activities so that the project is completed in less time.
- Focus must be on critical path activities
- In order to decide which activity to crash, the ‘crash cost slope’ of each is calculated (crash cost per time period).
- Crash the activity on the critical path which has the lowest crash cost slope.
Explain the max-flow min-cut theorem
Max-flow min-cut theorem
The theorem states that, for any network with a single source and sink, the maximum feasible flow from the source to the sink equals the minimum cut value over all cuts of the network.
Equivalently, optimality has been attained whenever there exists a cut in the residual network whose value is zero.
What are the examples of some logical constraints?
Describe the different between steady and transient state
Steady state condition
- Enough time has passed for the system state to be independent of the initial state as well as the elapsed time
- The probability distribution of the state of the system remains the same over time (is stationary).
Transient condition
- Prevalent when a queuing system has recently begun operations
- The state of the system is greatly affected by the initial state and by the time elapsed since operations startedas
What is procurement, explain the difference between direct and indirect procurement
Means purchasing inputs used in the firm’s value chain
- Raw material
- Supplies
- Consumable items
- Assets such as machinery, lab equipment, office equipment, buildings
Direct purchasing: buying for primary activities
Indirect purchasing: providing supplies and services for support activities
What are the different procurement strategies?
Performance based partnership
- High dependence on one supplier
- Used for strategic products
Competitive bidding
- In general, no long-term supply contract, rather multiple sourcing
- Used for interchangeable products
Securing continuity of supply
- Securing supply of bottleneck products, if necessary, at additional cost
- Reducing dependence on supplier by developing alternative products and looking for alternative suppliers
Category management and e-procurement solutions
- MRO (maintenance, repair, operating supplies) products require a purchasing strategy which is aimed at reducing administrative and logistic complexity
- Electronic catalogues
- Article catalogue (standardisation of product assortment)
Plot purchasing’s impact on financial results vs supply risk
What is Operations Research? Give examples of the different types
OR professionals aim to provide a rational basis for decision making by seeking to understand and structure complex situations and to use this understanding to predict system behaviour and improve system performance.
Done using analytic and numeric techniques to develop and manipulate models of organisational systems.
Types of OR models
- Linear programming: objective function and constraints are all linear functions of the decision variables
- Network flow programming: special case of linear program where situation can be modelled as a network
- Integer programming: variables are required to take integer values
- Non-linear
- Dynamic programming: process described in terms of states, decisions, transitions and returns. Problem is to find sequence that maximises total return.
- Stochastic programming: Uses random variables for some aspects of the problem. Expression can be written for the expected value of the objective.
Explain the centre of gravity approach
What are the benefits of supplier collaboration and government?
Organisation benefits
Increased performance:
- Access to innovation
- Improved customer satisfaction
- Better quality
- Improved on time delivery
- Increased responsiveness
Lower risk:
- Less SC disruption
- Less reputational damage
- Less product scarcity
- Fewer delayed responses to crises
Supplier benefits
- Lower operational cost
- Motivation to innovate
- Increased efficiency
- Better planning
Mutual benefits
- Product development time shortening
- Quality improvements
- Cost reduction
- Smooth release of new product
- Value co creation
What are the different types of supplier relationships?
What are the different collaboration techniques?
Just in time
- When products are delivered when they are needed.
Vendor managed inventory
- When suppliers take responsibility for a range of contracts to manage the buyer’s inventory. A method introduced to cope with bull-whip effects.
Collaborative planning, forecasting and replenishment
- When supply chains become integrated. CPFR seeks cooperative mgmt. of inventory through joint visibility and replenishment of products throughout the supply chain.
How do you categorise and evaluate supply partners? What are the challenges for partnership building in terms of collaboration, government and sustainability
Categorise existing and potential suppliers as:
Strategic
Suppliers important for the buying firm in the sense that they provide the buying firm with essential material and capabilities that cannot be substituted
Preferred
Suppliers that could be replaced, with some effort, in the long-term.
Transactional
Suppliers that can be easily replaced in the short-term
Evaluation criteria: price, delivery, quality, production capability, localisation etc.
What is procurement?
Procurement is an auction:
- Requirements for the next performance period
- Communicate to suppliers (bidders)
- Suppliers submit a bid (first price, sealed bids)
- The procurement team chooses the winning bidder
Procurement, logistics, inventory mgmt. and production control are tightly linked
In some markets, 80% of product revenues is directed to suppliers for labour, material and equipment
Explain the importance of supplier evaluation in procurement and draw the procurement iceberg
- Market requires product and service quality at reasonable prices. Depends highly on production and suppliers.
- Suppliers are being selected based on their value-added capabilities.
- The buying firm has to determine
- Product/service attributes
- Expected requirements and
- Right quality at reasonable price
the process:
- Identify key purchasing
- Determine puchasing strategy
- Identify potential sources
- Limit supplier in pool
- Determine method of evaluation
- Make selection
Explain the different methods of supplier evaluation (procurement)
- Process-based evaluation
- Evaluation based on suppliers’ production or service processes.
- Performance-based evaluation
- Evaluation based on (objective) performance measures
- Examples:
- Categorical
- Cost Ratio
- Weighted point (linear averaging)
- Value based sourcing:
- Can the supplier decrease our risk (e.g., reducing bottlenecks/critical parts purchasing; disruption response; exchange rates)?
- Can the supplier provide some other competitive advantage (e.g., differentiating factor; new product variant)?
- Can the supplier help expand the portfolio to address new customer needs?
Categorical method
- Categorization of every supplier, in specific areas, based on a pre-defined list of performance variables.
- Categorical assessment, e.g. ‘good’, ‘neutral’, ‘unsatisfactory’.
- Easy to implement, minimal data required, low-cost
- Lacks reliability, subjective, manual process
Cost ratio method
- Categorization of every supplier by standard cost analysis.
- Rating performance at each performance factor.
- Specific underperformance areas are identified, objective supplier ranking, long-term improvement potential, comprehensive assessment
- Cost-accounting required, complex process, information technology resources required
Weighted-point method
- Categorization of every supplier by weights on a list of performance variables.
- Flexible system, supplier ranking, moderate capital costs, combines qualitative and quantitative factors
- Tendency to focus on price, information technology resources required
Describe the algorithm for shortest path problem
Objective of the nth iteration:
- Find the nth nearest node to the origin
Input to the nth iteration:
- n-1 nearest nodes to the origin, including their shortest path and distance from the origin. (These nodes, plus the origin, will be called solved nodes)
Candidates for the nth nearest node:
- Each solved node that is directly connected by a link to one or more unsolved nodes provides one candidate – the unsolved node with the shortest connecting link to this solved node. (Ties provide additional candidates).
Calculation of the nth nearest node
- For each such solved node and its candidate, add the distance between them and the distance of the shortest path from the origin to this solved node. The candidate with the smallest such total distance is the nth nearest node (ties provide additional solved nodes), and its shortest path is the one generating this distance.
Applications
- Minimising the distance travelled
- Minimising the total cost of a sequence of activities
- Minimising the total time of a sequence of activities
Explain why a changing world creates supply chain risks? Give examples of supply chain risks
OEM:
- Vertical integration vs specialisation
- Integral products vs modular assembly
- Centralised vs dispersed
Unpredictable environment
Changing technology landscape
Increasing dependence on suppliers and subcontractors
Implications for future
- Value chains are increasingly fragmented and complex
- Competition between global supply chains
- Managing uncertainty is a key requirement
- Emergence of new business models
What are the different types of supply chain risks?
- R&D risk
- Management
- Product /process design and technology
- Skill set
- Procurement risk
- Supplier relationship
- Raw material
- Location
- Production risk
- Management
- Product, process technology
- Location
- Distribution risk
- Management
- Product
- Location
- Sales and marketing risk
- Management
- Demand projection
- Location
What are the two approaches for supply chain risk evaluation and management?
Two approaches for supply chain risk evaluation and management
1. Traditional
- Identify supply chain characteristics
- Identify risks linked to these
- Evaluate risks (impact and probability)
- Choose mitigations
- Evaluate impact of mitigations
- Plan mitigations
- Monitor risks and risk mitigation
Risk:
- Identification
- Assessment
- Mitigation
- Monitoring
2. Configuration approach
Mapping SC:
- Network structure
- Process flow
- Value structure
- Product characteristics
Event:
- Characteristics
- Database
Identifying risks
- Overlaying event data on SC map
- Identification of vulnerability led risk
Mitigations
- Change in network structure
- Alternative process flow
- Adjusting value structure
- Product redesign
Draw the supply chain resilience framework
What are the different supply chain risk mitigation strategies?
Risk mitigation strategies:
- Increase capacity
- Acquire redundant suppliers
- Increase responsiveness
- Increase inventory
- Increase flexibility
- Pool or aggregate demand
- Increase capability
How do you calculate population and sample:
Mean
Standard deviation
How do you find the outliers when cleaning data?
What are the assumptions of the mean square linear regression model?
Model assumptions:
Mean of zero: at any given value of x, the population of the error term values has a mean equal to zero
Constant variance assumption: at any value of x the population of the potential error term values has a variance that does not depend on the value of x
Normality assumption: At any given value of x, the population of potential error term values has a normal distribution. If this assumption holds, a histogram of residuals should look bell and symmetric
Independence assumption:Any one value of the error term is statistically independent of another.
Describe the mimimum spanning tree algorithm and its applications in the real world
Algorithm to solve the MST problem
- Select any node arbitrarily, and then connect it to the nearest distinct node
- Identify the unconnected node that is closest to a connected node, and the connect these two nodes. Repeat this step until all nodes have been connected.
- Tie breaking: Ties for the nearest distinct node (step 1) or the closest unconnected node (step 2) may be broken arbitrarily, and the algorithm must still yield an optimal solution. However, such ties are a signal that there may be (but need not be) multiple optimal solutions. All such optimal solutions can be identified by pursuing all ways of breaking ties to their conclusion.
Applications of the MST problem
- Design of telecommunication networks
- Design of a lightly used transportation network to minimise the total cost of providing the links
- Design of a network of high voltage electrical power transmission lines
- Design of a network of wiring on electrical equipment
- Design of a network of pipelines to connect a number of locations
Explain the augmenting path algorithm
An augmenting path is a directed path from the source to the sink in the residual network such that every arc on this path has strictly positive residual capacity. The minimum of these residual capacities is called the residual capacity of the augmenting path because it represents the amount of flow that can feasibly be added to the entire path.
- Identify an augmenting path by finding some directed path from source to sink in the residual network such that every arc on this path has strictly positive residual capacity. (if no augmenting path exists, the net flows already assigned constitute an optimal flow pattern)
- Identify the residual capacity c* of this augmenting path by finding the minimum of the residual capacities of the arcs on this path. Increase the flow in this path by c*.
- Decrease by c* the residual capacity of each arc on this augmenting path. Increase by c* the residual capacity of each arc in the opposite direction on this augmenting path. Return to step 1.
Some applications of the maximum flow problem
- Maximise the flow through a company’s distribution network from its factory to its customers
- Maximise the flow through a company’s supply network from its vendors to its factories
- Maximise the flow of oil through a system of pipelines
- Maximise the flow of water through a system of aqueducts
- Maximise the flow of vehicles through a transportation network
What are the different types of machine learning?
Machine learning
- Supervised learning
- Here is the data set where the right answers are given for each example. Please produce more right answers.
- Classification
- Unsupervised learning
- Here is the unlabelled data. Please find peculiarities, similarities or structures (clusters) in the data yourself
- Association rule learning
- Clustering
- Reinforcement learning
- Learn to do something by maximising your reward
Explain classification: give examples
- Aim: to label data
- Create a model that predicts what class label new data should have
- Model must first be trained by providing examples
- Examples: classify suppliers, predict condition of engineered parts, classify customers purchasing habits
Various different algorithms for classification:
- Tree induction
- Bayesian
- Rule based
What does a neural network look like?
How do you calculate weights in a neural network?
What is the activation function?
How do we assess the performance of a neural network and how do we improve that performance for each iteration
- Evaluation: How do we assess how well the network performs?
- Initialise with random weights and biases
- Show the network a training example
- Network calculates the activations of all neurons of all layers (using initial weights and biases)
- And then we can compare the value of each output neuron with the value we actually wanted and compute the squared error for each neuron
- This is done for all neurons in the output layer and sum up the squared errors
- So far this was the error for a single image. So, we do the whole process for ALL thousands of training examples
- Then we take the average error for each training example
- Optimisation: How do we tell the network how it can improve its performance?
- We know how to find the minimum
- We calculate the derivative, set it to zero
- Then we get the point and check if it is a global minimum or not
Gradient descent
- You start anywhere on the (multi-dimensional) cost function: random initialisation
- You “look” into all directions from the point of where you are and determine the direction with the steepest descent: you calculate the negative Gradient (the direction of steepest descent)
- You then move one step into that direction
- The step size (or “learning rate”) matters
- The negative gradient of the cost function tells us how to adjust our weights to take the next step
How do you develop a simulation model?
- Understand model goals
- System analysis
- Model and simulation specification
- Model verification and validation
- Design and run experiments
- Draw inferences
Why is manufacturing servitising?
Economic rationale:
- Manufacturing firms in developed countries cannot compete on cost
- Installed base argument
- for every new car sold there are already 13 in operation, 15 to 1 for civil aircraft and 22 to 1 for trains
- Stability of revenues – service vs products
Strategic rationale:
- Lock in customers
- Lock out competitors
- Increase the level of differentiation
- Customers demand it
- Service as a pre-sale activity
Environmental rationale:
- Environmental rationale
What are the seven principles of service design?
What are the phases of service design thinking?
What are the seven principles of service design?
- Bias toward action
- Embrace experimentation
- Radical collaboration: bring together innovators from varied backgrounds
- Show don’t tell: communicate by creating experiences
- Focus on human values: understand the people you are designing for and get feedback
- Craft clarity: produce a coherent vision
- Be mindful of process: know where you are in the process and what your goals are
The phases of service design thinking
Empathize
- Observe, engage, immerse
Define
- Define your point of view
- Provides focus, reference for evaluating ideas, fuels brainstorming
Ideate
- Ideate to step beyond the obvious solutions and drive creativity
Prototype
Test
Show the examples of servitisation for Zoelis, GEA and Pearson and compare them
Explain the key facts about the service journey
Findings show that the service journey occurs:
- Small, careful and incremental changes
- At different organisational levels
- The 4th year is crucial. Two concurrent steams of service development:
- Continue to build up on current basic and intermediate services
- Exploration and piloting of more complex services
What are the seven critical success factors for service transistion?
Seven critical success factors:
Assess market and internal readiness
Creating the strategic and cultural context:
- Design service vision
- Define customer mindset and engage partners
- Develop service culture
Structures and governance
- Define leadership, set organisational structure
Resources
- Define company and individual resources
Engagement and trust
- Engage customer mindset, partners
- Enable change
Service processes
- Design and plan service model
- Pilot and model
- Portfolio mgmt.
- Commercial execution
Optimise and communicate best practices
What is a supply network?
Supply Network: A set of connected but geographically dispersed firms involved in making and delivery of product/service to end customers
What are the different supply network decisions?
Strategic
- investment in plants: numbers, locations
- introduction of new products: BOMs used
- manufacturing technology
- creation of logistics network
- make vs buy, supplier selection
Tactical
- manufacturing system
- inventory policy
- procurement policy
- IT system and information flow
- customer strategies, demand planning, forecasting
Scheduling of resources (labour, machine, vehicles)
Routing of raw materials and finished products
Solicitations of bids/quotations, order processing
What technologies are impacting Digital Manufacturing today?
What technologies are impacting DM today?
Sensing: non industrial sensing, network many devices, vision, AR, VR, crowd sourced data
Analysis: cloud computing, mobile computer, clustering algos
Decision: Machine learning, smart products, optimisation, low cost computing
Actuation: Cobots, customers in the loop, AM, FPGAs