Operations Management 303 Test 1

Minimum # of Stations

# = (Sum/Cycle Time)

Efficiency of the Line (% of bus time of a line)

% = (100% - Balance Delay)

Balance Delay (% of idle time on a line)

% = (Idle time per cycle)/(N^actual*Cycle Time) *** N^actual = # of stations

Reverse Engineering

Buying the competitors project and dismantling is to put it back together to find improvements.

Cycle Time Equation

CT = (Operating time per day/Desired output rate)

Order Winners

Characteristics of an organization's G/S that cause it to be perceived as better than the rest.

Order Qualifiers

Characteristics that customers perceive as minimum standards of acceptability for a G/S to be considered for purchase.

Effective Capacity

Design capacity - allowances such as personal time, maintenance and scrap.

Goods-Service Continuum

Enables marketers to see the relative G/S composition of total product's position on the continuum.

Why is product or service design strategically important?

Every aspect of the organization is structured around the G/S it offers.

Capacity Cushion

Extra capacity used to offset demand uncertainty. CC = 100% - Utilization

What is the basic objective of layout design?

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

Manufactured Goods

Goods-oriented

Programmable Automation

High-cost equipment controlled by a computer program.

Process Flexibility

How easy can you change your system

Trade-off decisions

When a company gives up one aspect to obtain more of another aspect.

What is meant by the term value added?

When companies provide potential customers w/ a feature or add-on that gives it a greater sense of value.

Ethical responsibilities

w. Financial statements x. Worker safety y. Product safety z. Quality aa. The environment bb. The community cc. Hiring and firing workers dd. Closing facilities ee. Workers rights

Concurrent Engineering

Bringing engineering design and manufacturing personnel together early in the design phase.

What is Operations Management?

The management of systems or processes that create or provide a G/S

Tactics

The methods and actions taken to accomplish strategies. "How To" part.

Bottleneck Operation

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

Advantages of a Process Layout

- Can handle a variety of processing requirements - Not vulnerable to equipment failures

Two Key aspects of process strategy that influence process selection

- Capital Intensity - Process Flexibility

Challenges of Service Design

- Degree of variation in service requirements - Degree of customer contact and involvement

Disadvantages of a product layout

- Dull, repetitive jobs - Highly susceptible to shutdowns - Poorly skilled workers may not maintain equipment - Fairly inflexible to changes

Standardization

- Extent to which there is an absence of variety in a product, service or product. - Large #s of identical items.

Advantages of a product layout

- High rate of output - Low unit cost - Specialization - Low material handling cost per unit

Capital Intensity

- How much labor are you going to put into your company - The mix of equipment & labor that will be used by the organization

Fixed Automation

- Same thing over and over - ex. Assembly Line

Flexible Manufacturing System (FMS)

-A group of machines designed to produce similar products -Supervisory computer control -Automatic material handling

Computer Integrated Manufacturing (CIM)

-A system for linking a broad range of manufacturing activities through an integrated computer system -Link various parts of an organization

Main sources of design ideas

-Customers -Suppliers -Distributors -Employees -Maintenance and repair personnel -By studying the competitor -Reverse Engineering -Research Development

Project

-Customized G/S -Complex, subject to change -Very high cost per unit

Job Shop

-Customized G/S -Wide variety of work -Slow, high cost per unit

Continuous

-Highly standardized -Very efficient, high volume -Lack of variety/costly to change, high cost of downtime

Product Layout

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

Disadvantages of a Process Layout

-Material handling is slow and inefficient -Reduced spans of supervision -Routing poses challenges

Batch

-Semi-standardized -Flexibility to change/add to products

Repetitive/Assembly

-Standardized G/S -Low unit cost/efficient -Low flexibility, high cost of downtime

Line Balancing

-The process of assigning tasks to workstations in such a way that the workstations have approximately equal time requirements -To group work items together to minimize idle time

Why is Productivity important in OPM?

-Tracks performance overtime -Judge performance of an industry or country -High productivity linked w/ higher S.O.L.

Reliability

Ability of a product to perform under a prescribed set of conditions.

Service Goods

Act-oriented

5 Process Types

1) Job Shop 2) Batch 3) repetitive/assembly 4) Continuous 5) Project

What are the 3 basic functions in business organizations?

1) Marketing 2) Operations 3) Finance

What general items make up a supply chain?

1) Suppliers suppliers 2) Direct suppliers 3) Producer 4) Distributor 5) Final Customers

3 important challenges in planning service capacity

1) The need to be near customers 2) Inability to store services 3) Degree of demand volatility

Main questions on process selection

1) Variety 2) Equipment Flexibility 3) Volume

3 Key questions in Capacity Planning

1) What kind of capacity is needed? 2) How much is needed to match demand? 3) When is it needed?

Utilization

= (Actual Output/Design Capacity)

Efficiency

= (Actual Output/Effective Capacity)

Precedence Diagram

A diagram that shows basic tasks and their precedence requirements

Modular Design

A form of standardization in which component parts are grouped into modules that can be interchanged or replaced.

Productivity

A measure of the effective use of resources, usually expressed as the ratio of output to input.

Strategies

A plan for achieving organizational goals.

Strategy

A plan for achieving organizational goals.

Life Cycle Assessment (LCA)

A technique for assessing the potential environmental aspects and potential aspects associated with a product

Constraint Management

A tool used by supervisors and other management personnel to help employees maintain task focus.

Who

Is going to be using it

What?

Is needed

Why is Operations Strategy important?

It is the approach which is used to guide the operations function.

What is the transformation process that managers oversee?

It is where inputs are transformed into outputs.

Why is Strategy important in OPM?

It serves as the roadmap for reaching the organizational destinations.

Fixed Position Layout

Layout which the product remains stationary and workers, materials and equipment are moved as needed.

Process Layout

Layouts that can handle varied processing requirements (Job Shop or Batch)

Automation

Machinery that has sensing and control devices that enable it to operate alone.

Numerically Controlled Machines (N/C)

Machines that perform operations by following mathematical processing instructions.

Cycle Time

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

Design Capacity

Maximum output rate or service capacity an operation, process or facility is designed for.

Flexible Automation

More customized equipment, less changeover time.

Output Rate Equation

OR = (Operating time per day/Cycle Time)

Mass Customization

Producing basically standardized goods but incorporating some degree of customization.

End of Life Programs (EOL)

Products that have reached the ends of their useful lives.

Goals

Provide detail and the scope of the mission.

The 3 R's

Reduction of costs Re-Using parts Recycling

Remanufacturing

Refurbishing used products by replacing worn-out defective components.

Economies of Scale

The greater the quantity of a good produced, the lower the per-unit fixed cost because these costs are shared over a larger number of goods

Mission

The reason for an organization's existence.

Core Competencies

The special attributes or abilities that give an organization a competitive edge.

Capacity

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

Computer Aided Manufacturing (CAM)

The use of computers in process control.

Break-Even point

The volume of output at which the total cost and revenue are equal.

Goal of Strategic Capacity Planning?

To achieve a match between long-term supply capabilities of an org. and the predicted level of long-term demand.

When?

Will it be needed

How?

Will it be used

Where?

Will it be used

List some ways that manufacturing systems and service systems differ.

f. Degree of customer contact g. Uniformity of input h. Labor content of jobs i. Uniformity of output j. Measurement of productivity k. Production and delivery l. Quality assurance m. Amount of inventory n. Evaluation of work o. Ability to patent design