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Systems Improvement > Test 1 > Flashcards

Test 1 Flashcards

1
Q

The goal cannot conflict with:

A

The employees and customers which have necessary conditions

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2
Q

Customer and Employees

A

Customer: product must be competetive
Employee: Need to be engaged

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3
Q

Measuring the Goal -CEO

A

Net Profit

Return on Investment

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4
Q

Measuring the goal: middle management level, departments

A

Production, sales, Purchasing, Logistics, Quality

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5
Q

Systems view: high level

A

Supply->Production->market

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6
Q

What would happen if we pushed each station to work at its maximum rate?

A

Huge buildup of inventory or work in progress while still outputting same amount -suboptimised system.

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7
Q

Performance measure

A

Cost/unit

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8
Q

Goal is impacted by

A

Inventory, Revenue, Costs:
Revenue down = bad
Costs up = bad
Inventory up = bad

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9
Q

Throughput accounting -alternative measure

A

Allows us to know if production improvements will support the goal

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10
Q

Throughput

A

Sales - Raw Materials (Truly Variable costs)

The rate at which the system generates money (eg sales)

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11
Q

Inventory/Investment

A

The money the system invests in things the system intends to sell (stock and equipment)

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12
Q

Operating Expense

A

Money the system spends in turning investment into throughput dollars (lighting, Labour)

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13
Q

How do we decide if a change within the production system is good

A

Change that causes
Throughput to increase
Inventory to decrease
Operating Expense to decrease

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14
Q

Suboptimisation

A

Any improvement in the a in the chain is an improvement on the whole system -AVOID

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15
Q

Constraints

A

People, process, policy, equipment, storage, market

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16
Q

Constraints:

A 
Physical:
-capacity
-market
-supply
Policy:
-formal
-informal
-behavioural
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17
Q

A 5 step process of on-going improvement for physical constraints

A

Identify -identify constraint
Exploit -make the most of what we have. squeeze as much of the theoretical capacity that is available from constraint
Subordinate: need support from rest or organisation
Elevate: seeks to obtain more
Inertia: If constraint changes -go back

18
Q

A 3 step process of on going improvment for policy constraints

A

What to change
What to change to
How to cause the change

19
Q

Lead time

A

The time it takes to produce an order for a customer is the lead time and can be divided into Setup Time, Process time, Queue time and Wait time.

20
Q

Set up time

A

When a part is waiting for a process, such as a machine being prepared to work on that part, this is called Setup Time.

21
Q

Process Time.

A

The time that a part spends being worked on by that machine is Process Time.

22
Q

Queue Time

A

The time that a part spends in front of a machine or process that is currently working on another part, is called Queue Time.

23
Q

Wait time

A

And finally when a part is waiting on another part to be completed in an assembly is called Wait Time.

24
Q

Subordination

A

protect the systems constraints -buffer. Protect constraint ftom shortages

25
Q

Time buffer

A

Time interval by which we predate the release of work, relative to the date at which the corresponding constraints consumption is schedules

26
Q

Rope

A

Rope acts as a schedule. It ties the release of jobs through the gate to the constraint schedule. Provides the max gap infront of the constraint.

27
Q

A plant

A

Convergent points
Component parts unique to specific end items
machines and tools are general purpose

28
Q

A plant problems

A

Assembly complains of shortages
machine setups are seen as cause of reduced efficiency
there is competition by different components for time on machine

29
Q

V Plant

A

Divergent points
End items large compared to raw inputs
Equipment is intensive and specialised

30
Q

V Plant Problems

A

Stealing common intermediate products
Machine setups are seen as cause of reduced efficiency
Planning horizons

31
Q

T plants

A

Divergent assembly
compnent parts are common to many different end-products
The production routings for the component parts do not contain divergent or convergent points

32
Q

T part problems

A

Stealing at assembly
Poor due date performance
No synchronised effort

33
Q

Capiral

A 
"pool of money used by the business which arises initially from:
-shareholder funds
-bank and other long term loans
once trading begins, from:
retained profits/reserves
34
Q

Working Capital

A

Money you put into your operating cycle

Inventories + Accounts recievable-accounts payable

35
Q

Financial Accounting

A

Goal: to accurately report the financial picture and performance of a business.
involves: Classification, Recording, and Interpretation of money transactions
Interest to Shareholders, Potential Investors, or the Inland Revenue Department
Financial or General accounting is concerned with the classification, the recording and the interpreting of cash transactions so that periodically summary statements can be prepared i.e.: a) The Balance Sheet attempts to measure the financial condition of the firm at the end of a fiscal period. b) The Profit & Loss Statement (or Income Statement) presents the results of past operations.

36
Q

Cost Accounting (Managerial Accounting)

A

Classification, Recording, and Interpretation of Costs and Projected Costs – i.e. the use of “Costing Systems” to:
-Assist managers in forward planning
-Assist in price determination and pricing policy
-Facilitate the control of operations  
-Value inventory as an essential element of profit determination
Interest to our Production Managers and Improvement Engineers.
Cost Accounting is concerned with providing day to day control over the business

37
Q

Budgets have 3 elements

A
  1. Construct - these have an objective i.e Target Earnings. The budget will be constructed based on limiting factors.
  2. Coordinate - adjust each departmental expenditure budget in light of the other limiting factors through consultation
  3. Control - comparing the budget with the actual. This is called Variance.
38
Q

Historical Costing Systems

A

are concerned with the classification and accumulation of actual cost data.
takes no account of the cost of replacing the resources used up in the process.

39
Q

Standard Costing Systems

A

incorporate the use of planned, “standard” costs for products or processes, as well as the actual costs and highlight the variances between actual and standard.

40
Q

Net Profit

A

Change in throughput - change in OE

=sales - raw materials - OE

Systems Improvement (1 decks)

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