Chapter 6: Manufacturing Processes

Order of Production Process

Sourcing, making, delivering

Make-to-order

subway, construction process

Which statement is true regarding differences between service and manufacturing organizations

Manufacturing organizations must plan and hold inventory.

assemble-to-order examples

Dell computers, cars

inventory measures

- inventory turn compares cost of good sold to average inventory - days of supply measures how long a firms inventory can support sales

Workcenters with large amounts of interdepartmental traffic are often placed

Adjacent to each other

Firms that combine a number of preassembled modules to meet customers' specifications are called

Assemble-to-order

arranges processes according to the sequence of steps by which the product is

Assembly line

What products would use a project layout

Bridges, Houses

The point in the supply chain where inventory is positioned to allow the preceding processes to operate independently is the

Customer Order decoupling point

A firm that works with the customer to design a product but has less control over materials and steps in manufacturing until the product has been designed is known as

Engineer-to-order

Little's law relates inventory, throughput rate, and flow time as

Inventory = Throughput rate x Flow time

The time required to respond to a customer order is known as

Lead time

The practice of achieving high levels of customer service with a minimal inventory investment is known as

Lean Manufacturing

The long-term relationship between inventory, throughput, and flow time is mathematically related using

Little's Law

Firms whose product is built directly from raw materials and components in response to a customer are known as

Make-to-order

Which type of firm invests in lean manufacturing programs in order to improve customer service levels for a given inventory investment?

Make-to-stock

A map showing the flow of materials through a manufacturing system is known as a

Make-to-stock Process Map

Layout uses dedicated areas for production of similar products.

Manufacturing Cell

Shows when different production process types are used in relation to product volume and standardization.

Product-process Matrix

A framework depicting when the different production process types are typically used depending on volume and standardization is known as the

Product-process-matrix

for large or massive products produced in a specific location, labor, material, and equipment are moved to the product rather than vice versa

Project Layout

Characteristics of a continuous process line?

Shutdowns can be expensive. May operate 24 hours a day. Highly automated machinery is used.

Total average value of inventory

Sum of raw material, work-in-process, and finished goods inventory

A production process map is built by

Tracking the flow of materials through the system

Standardization on the product-process matrix refers to

Variations in the product

machines are grouped according to type or function and parts travel to the appropriate location for processing.

Workcenter layout

Firms invest in lean manufacturing programs in order to

achieve high customer service with minimum levels of inventory investment.

engineer-to-order

airplanes

Customer order decoupling points

can impact inventory investment. Determine lead times.

examples of make-to-stock

clothing, groceries, tv

Lead time can vary based on

customization of the product being produced. Location of the manufacturing facility.

If inventory turn is known, days-of-supply is calculated by

multiplying the inverse of inventory turn by 365 days.

In an assemble-to-order system, the total number of unique combinations possible is calculated by

multiplying the number of options for each choice together.