Test 3 Flashcards
What s a process strategy?
An organizations approach to transforming resources into goods and services
What are the four types of process strategies?
Process, Repetitive, Product, Mass customization
What is process focus?
low-volume, high-variety; job shop; high variable costs; intermittent processes
What is repetitive process?
classic assemble line; used for automobiles, less flexible than process, use of modules
What is product focus?
High-volume, low-variety; continuous processes; high fixed costs
What is mass customization?
Rapid, low-cost production that caters to constantly changing customer demands; high volume and variety;
What are some challenges to mass customization?
- Imaginative product design
- Flexible process design (postponement)
- Tight control of inventory
- Tight schedules
- Responsive supply changes
What is the crossover point?
The point where the fixed and variable costs for two different processes are equal
What are some key questions for process analysis and design?
Is the process designed to achieve competitive advantage?
Does the process eliminate steps that do not add value
Does the process maximize customer value as perceived by the customer?
Will the process win orders
What are the types of tools used to understand process deisng and analysis?
Flowchart, Time-function mapping, Value-stream mapping, Process Charts, and Srvice blueprinting.
What do flowcharts show?
movement of people and material
What is time-function/process mapping
A flowchart with time added to the horizontal axis
How does value-stream mapping differ from time-function mapping?
Value-stream mapping shows where value is added, including the supply chain
What are process charts?
Charts that use symbols to analyze the movement of people or material
What does service blueprinting focus on?
customer and provider’s interaction with the customer
What are the matrix of customer interaction?
Degree of customization vs degree of labor
What is CNC
computer numberical control; machinery with its own computer and memory
What are automatic identification systems?
A system for transforming data into electronic form, for example, bar codes
What is RFID
Radio frequency identification–a wireless system in which circuits with antennas send radio waves
What is process control?
The use of IT to control a physical process (Turning collected data into physical outputs)
What are vision systems?
Systems that use video cameras and computer technology in inspection roles
Robot
a flexible machine with the ability to accuately do boring or dangerous tasks
Automated storage and trieval systems
Computer-controll warehouses that provide for the automatic placement of parts into and from designated places in a warehouse
Automated guided vehicles
Electronically guided and controll cart used to move people or materials
Flexible manufacturing system
A system that uses electronic signals from a centralized computer to automate production and material flow
Computer-integrated manufacturin
A manufacturng system in which CAD, FMS, inventory control, warehousing, and shipping are integrated.
What is the breakeven point?
The point at which fixed and variable costs = total revenue
What three things are required for the break-even point analysis?
Fixed cost, Variable cost, revenue
What is contribution?
Diff between selling price and variable cost
What is capacity?
The throughput, or the number of units a facility can hold, receive, store, or produce in a period of time
What is process redesign?
The fundamental rethinking of business processes to bring about dramatic improvements in performance
What is design capacity?
The theoretical maximum output of a system in a given period under ideal conditions
What is effective capacity?
The capacity a firm can expect to achieve given its product mix, methods of scheduling, etc
What is utilization?
Actual output/design capacity
What is efficiency?
Actual output/Effective capcity
What is actual or expeted output (also known as rated capacity)
Effective capacity*efficiency
Utilization will always be _____ than efficiency?
Lower
What to do if demand exceeds capacity
Raise prices and make longer lead time,
Raise capcity
What to do if capacity exceeds demand?
Stimulate market (Advert/promo) Product changes
How to react to seasonal demand?
Make products with complementary demand patterns (ie, make snowmobiles and jet skis)
What are tactics for matching capcity to demand?
- Making staffing changes (increase or decrease shift employment)
- Adjusting equipment (buy/sell/lease machinery)
- Improve processes to increase throughput
- Redisning prodcts for more throughput
- Adding process flexibility to better meet changing product preferences
- Closing facilities
How is demand managed in service sector?
Appointments, reservations, FCFS
How can capcity be managed in the service sector?
changes in full-time, temp, or part-time staff
What are the four apporaches to capacity expansion?
Leading demand with incremental expansion
Leading demand with one-step expansion
Lagging demand with incremental expansion
Average
What are some true statements about “straddling” demand?
- Increases incrementally, sometimes lags sometimes leads, delays capital expenditure, and expects “average” demand
Which capacity management strategy is riskies?
Leading demand with one-step expansion
A body of knowledge about waiting lines?
Queuing theory
What is another name for a line
a queue
What are the three parts of a queuing system
- Arrivals or inputs
- Queue Discipline/Line itself
- The service facility
What are the three major characteristics of arrival?
Size of pop
Behavior of arrivals
Pattern of arrivals (Poisson)
A queue in which a virtually unlimited number of people or items could request the services, or in which the number of customers or arrivals on hand at any given movent is a very small portion of potential arrivals
Unlimited population
A queue in which there are only a limited number of potential users of the service (Copy manchines)
limited pop
Refusing to join a queye
balk
Those who enter the queue and then leave
reneging
A service system with one line and one server
single-server queuing system
A service system with one waiting line but with several servers
multiple-server queuing system
A system in which the customer receives service from only one station and then exits the system
single-phase system
A system in which the customer receives services from several station before exiting the system
multiphase system
A continuous probability distribution often used to describe the service time in a queuing system
negative exponential probability distribution
