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