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.
