Test 2 Flashcards

1
Q

Capacity

A

The upper limit on the load an operating unit can handle.

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2
Q

What affects capacity needs?

A

Equipment
Space
Employee skills

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3
Q

What is the goal of strategic capacity planning?

A

To match long-term supply capabilities and predicted levels of long-term demand.

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4
Q

Overcapacity

A

Operating costs that are too high.

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5
Q

Undercapacity

A

Strained resources and possible loss of customers.

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6
Q

Key questions for capacity planning

A

What kind of capacity is needed?
How much is needed to match demand?
When is it needed?

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7
Q

Three capacity strategies

A

Leading
Following
Tracking

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8
Q

Leading capacity strategy

A

Build capacity for future demand increases

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9
Q

Following capacity strategy

A

Build capacity when demand exceeds current capacity

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10
Q

Tracking capacity strategy

A

Similar to following but in smaller increments.

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11
Q

Design (Theoretical) Capacity

A

Maximum output rate or service capacity an operation is designed for

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12
Q

Effective Capacity

A

Design capacity minus inefficiencies.

Cannot exceed design capacity.

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13
Q

Actual output

A

rate of output actually achieved - cannot exceed effective capacity

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14
Q

Efficiency equation

A

Actual output/effective capacity x 100%

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15
Q

Utilization equation

A

Actual output/design capacity x 100%

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16
Q

Determinants of effective capacity

A
Facilities (size, layout, transportation)
Product and service factors (non-uniformity of output, product mix)
Process Factors (productivity, quality)
Human factors (Tasks, skills, turnover)
Policy (Overtime)
Operational (Materials, Breakdowns)
Supply chain (Distributors)
External (Regulations)
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17
Q

Bottleneck operation

A

an operation whose capacity is lower than other operations in a sequence.

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18
Q

What determines service capacity?

A

The need to be near customers
Degree of demand volatility
The inability to store services

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19
Q

Capacity cushion/ safety capacity

A

Extra capacity used to offset demand uncertainty

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20
Q

Capacity cushion equation

A

Capacity - expected demand

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21
Q

Demand Management Strategies

A

Strategies to shift demand from peak periods to slower periods.

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22
Q

How to calculate processing requirements

A

Add up total processing time for each product.

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23
Q

Economies of scale

A

If output rate is less than optimal level, increasing the output rate results in decrease average unit costs.

24
Q

Diseconomies of scale

A

If output rate is more than optimal level, increasing the output rate results in increasing average unit costs.

25
Q

What problems might diseconomies of scale cause?

A

Congestion (transportation)
Complexity
Inflexibility
Additional levels of management

26
Q

Break Even Point

A

Fixed Costs/(Rev-Variable cost)

27
Q

Indifference point

A

The quantity at which two competing alternatives would be the same.

28
Q

Process Selection

A

decides the way production of goods or services will be organized

29
Q

What drives Process Choice?

A

demand:

  • variety (how much)
  • volume (expected output)
  • flexibility
30
Q

Implications of Process Selection

A

Capacity planning
Layout of facilities
Equipment
Design of work systems

31
Q

Job Shop

A

small scale, highly customized

ie. eye glasses

32
Q

Batch Processing

A

Moderate volume, high flexibility

ie. bakery

33
Q

Assembly Line

A

high volume, high standardization

34
Q

Continuous

A

high volume of non-discrete goods (gasoline)

35
Q

Product-Process Matrix

A

variety (x) v volume (y)
diagonal represents ideal match
above diagonal –> opportunity costs
below diagonal –> out of pocket costs

36
Q

Project

A

used for work that is none routine with a unique set of objective to be accomplished in a limited time frame
ie. plays, movies

37
Q

Product/Service Profiling

A

Linking key product/service requirements to process capabilities

38
Q

Layout

A

the configuration of departments, work centers, and equipment, with particular emphasis on movement of work (customers or materials) through the system

39
Q

Layout Design Objectives

A

Facilitate a smooth flow of work, material, and information through the system

40
Q

Product Layout

A

Layout that uses standardized processing operations to achieve smooth, rapid, high-volume flow

41
Q

Process Layout

A

Layout that can handle varied processing requirements

-intermittent processing, job shop, batch

42
Q

Fixed Position Layout

A

Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed

43
Q

Designing process layouts

A
  • -A list of work stations (departments) to be arranged and their dimensions
  • -A projection of future work flows between the pairs of work centers
  • -The distance between locations - and the cost per unit of distance to move loads between them
  • -The amount of money to be invested in the layout
  • -A list of any special considerations
  • -The location of key utilities, access and exit points
44
Q

Heuristic for process layout

A

Assign departments with the greatest interdepartmental work flow first -> to locations that are closet to each other

45
Q

Muther’s Grid

A
  • considers multiple qualitative criteria

- Indicates the relative importance of each combination of department pairs.

46
Q

Computerized Layout Solutions

A

CRAFT, CORELAP, PROMODEL and EXTEND, THREE-D MODELING and CAD

47
Q

Process Layout Advantages

A
  • Can handle a variety of processing requirements
  • Not vulnerable to equipment failures
  • General-purpose equipment is cheaper
48
Q

Process Layout Disadvantages

A
  • routing and scheduling
  • equipment utilization is low
  • material handling is slow
  • complicates supervision
  • special attention needed for each product
  • accounting, inventory control, and purchasing more complex
49
Q

Bottleneck Operation

A

An operation in a sequence of operations whose capacity is lower than that of the other operations

50
Q

Line Balancing

A

The process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements

51
Q

Precedence Diagram

A

A diagram that shows elemental tasks and their precedence requirements

52
Q

Cycle Time

A

The maximum time allowed at each workstation to complete its set of tasks on a unit

Minimum Cycle Time = longest task time
Maximum Cycle time = Σt = sum of task time

53
Q

Heuristics to assigning tasks to workstations

A
  • Assign tasks in order of most following tasks

- Assign tasks in order of greatest positional weight

54
Q

Balance Delay

A

% of idle time of a line

55
Q

Efficiency

A

% of busy time of a line