chapter 5 logistics
Constrains
interact with volume and variety to create realistic manufacturing plans
Just-in-time (JIT) Interfaces
just at the time they are required
Product Layout
-Resources are arranged in sequence to enable efficient production of the product. -Used to achieve a smooth and rapid flow of large volumes of goods and customer orders
Logistical Interfaces with Manufacturing
-Resources must be producred, positioned, and coordinated as needed to support the manufacturing strategy selected
ISO Certified Suppliers
-They are usually more open to sharing supply chain information -They welcome building relationships with their customers -They are easier for procurement to initially qualify and periodically audit -Firms have to be re-certified every three years
Fixed Position Layout
-Used when a product cannot be moved during production. Instead, processes are moved to the product.
Lean Systems
-Defining principle is the elimination of "waste". Waste is anything that does not add value for the customer
Facility Layout Strategy
-Facility layout has a significant impact on performance, especially production costs, time, and flexibility.
Cellular Layout
-Group products based on similar processing characteristics and arrange workstations to form a number of small assembly called work cells.
Continuous Flow Production
-Involves a series of processes which raw materials flow through. These processes are very inflexible. -Generally highly automated, and workers act as monitors rather than as active participants.
Mass Customization
-Mass customization produces a unique product quickly and at a low cost using a high volume produciton process
Materials Requirements Planning (MRP) Interfaces
-Particularly for more complex manufacturing (i.e., MTO, ETO) where large numbers of components or subassemblies are used to produce a final product
Process Layout
-Product is moved between groupings based on need.
Engineer to Order (ETO)
-designed, engineered, and built to specifications only after the order has been received -In the ETO world, the cost of poor quality can be very high.
Make-to-Order (MTO)
-is a manufacturing strategy that typically allows customers to purchase products that are customized to their specificiations. This is a pull system. -The MTO strategy relieves the problems of excessive inventory that is common with the traditional Make-to-Stock strategy.
Assemble-to-Order (ATO)
-is a manufacturing strategy where products ordered by customers are produced quickly and are customizable to a certain extent. -ATO is a hybrid strategy between a Make-to-Stock strategy where products are fully produced in advance, and the Make-to-Orderstrategy where products are manufactured once the order has been received.
Make-to-Stock (MTS)
-literally means to manufacture products for stock based on demand forecasts. This is a push system. -One issue of MTS is to avoid having excess inventory.
Total Cost of Manufacturing
1.Manufacturing and Procurement activities 2.Inventory and Warehousing activities 3.Transportation activities
Which manufacturing strategy is described as a manufacturing process in which the product is designed, engineered, and built to specifications only after the order has been received? A. Engineer to Order B. Make to Order C. Assemble to Order D. Make to Stock
A.
The production plan for any business must consider which of the following: (A) Processes (B) People (C) Packages (D) Programs
A. A, B, and C only B. B, C, and D only C. A, B, and D only D. All of the above C.
TCM -vs- Strategic Alternatives
As volume goes up . . . A.Manufacturing and Procurement costs per unit go down due to economies of scale. B.Inventory and Warehousing costs per unit go up. C.Transportation costs per unit go down, but level off at high volumes
In which Facility Layout are resources grouped by process, and then the product is moved between groupings based on need? A. Fixed Position Layout B. Process Layout C. Product Layout D. Cellular Layout
B.
Which of the following is NOT one of the Eight Wastes described in Lean Production? A. Transportation B. Excess Inventory C. Small Batch Scheduling D. Over Procesing
C.
Manufacturing - Strategies
Companies must develop a manufacturing strategy that suits the type(s) of products that they produce, their customer's expectations, and their strengths.
Job Shop Production
Creates a custom product for each customer
A steel manufacturing plant never allows its blast furnaces to stop or cool down. What type of manufacturing process is being used? A. Job Shop Production B. Batch Production C. Line Flow Production D. Continuous Flow Production
D
Which of the following is NOT one of the 8 dimensions of product quality? Constraints A. Performance B. Conformance C. Features D. Constraints
D. Constraints
Six Sigma Methodology
DMAIC Define Measure Analyze Improve Control DMADV Define Measure Analyze Design Verify
Eight Wastes (DOWNTIME)
Defects Overproduction Waiting Non-Utilized Talent Transportation Inventory Motion Extra-Processing
ISO 9000
International Quality Standard benefits: brand reputation customer satisfaction effective quality management system
In the context of Total Cost of Manufacturing; in general terms, the manufacturing, procurement, and transportation costs per unit all go down as volume goes down.
False
Job Shop Production is an inflexible manufacturing process that requires high capital investment
False
Design for Logistics Concept
Incorporates the requirements and framework for logistical support of the product in the early phases of product development
Manufacturing Strategy -vs- Performance Cycle
MTS Strategy - Customer Delivery Cycle ATO Strategy - Manufacturing Cycle MTO Strategy - Procurement Cycle ETO Strategy - Product Design Cycle
Batch Production
Manufacturing of a small fixed quantity of an item in a single production run.
What are the Key Dimensions of Product Quality?
Performance Reliability Durability Conformance Features Aesthetics Serviceability Perceived Quality
Line-flow production
Product moves on an assembly line throughvarious stages of production
The plan for production has to be developed considering the following:
Product(s) Plants Processes Programs People
Mass Customization - Benefits
Profits- option to charge a premium Lower Costs- competitive pricing Inventory- only required inventory is ordered Market Exploitation- rich source of new ideas Process- flexible, only some attributes can be customized
Manufacturing
The process of making a raw material into a finished product; especially in large quantities.
Manufacturing processes that are designed to facilitate the rapid switch in production from one product to another while retaining efficiency, are said to provide economies of scope.
True
The objective of Mass Customization is to increase variety for customers while also realizing the cost advantages of high volume continuous and line flow processes?
True
Six sigma
get to the root cause
Volume
is traditionally treated according to the principle of economies of scale
ISO 14000
international environmental standard -manage the environmental effect of their business practices --how a company manages the environment inside it's facilities and the immediate outside environment -analysis of the entire life cycle of a product -They do not mandate a particular level of pollution -does not release a company from any national or local regulations
Variety
involves frequent product runs and high repetition of small lot sizes
Total Quality Management
is a philosophy focused on meeting customer expectations with respect to all needs, across all company functions, and recognizing all customers, both internal and external It is a total, organization-wide activity versus a technical task
Product Quality
is the conformance to requirements (defined by the absence of defects) or fitness for use (measured by the degree of customer satisfaction with a product's characteristics and features).
Lead time
is the measure of elapsed time between release of a work order to the shop floor and completion of all work on the product to achieve ready-to-ship status
intermittent processes
used to produce a large variety of products with different processing requirements in lower volumes
Repetitive processes
used to produce one, or a few, standardized products in high volumes
Mass Customization: Where Does It Work?
─Sufficiently large customer segment that values "translatable variety" ─Modular or adjustable product building blocks